Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 08, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-26121 | ||
Entity Registrant Name | LCNB Corp. | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 31-1626393 | ||
Entity Address, Address Line One | 2 North Broadway | ||
Entity Address, City or Town | Lebanon | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45036 | ||
City Area Code | 513 | ||
Local Phone Number | 932-1414 | ||
Title of 12(b) Security | Common Stock, No Par Value | ||
Trading Symbol | LCNB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 196,713,412 | ||
Entity Common Stock, Shares Outstanding | 11,396,323 | ||
Entity Central Index Key | 0001074902 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | BKD, LLP |
Auditor Location | Cincinnati, Ohio |
Auditor Firm ID | 686 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS: | ||
Cash and due from banks | $ 16,810,000 | $ 17,383,000 |
Interest-bearing demand deposits | 1,326,000 | 14,347,000 |
Total cash and cash equivalents | 18,136,000 | 31,730,000 |
Investment securities: | ||
Equity securities with a readily determinable fair value, at fair value | 2,546,000 | 2,389,000 |
Equity securities without a readily determinable fair value, at cost | 2,099,000 | 2,099,000 |
Debt securities, available-for-sale, at fair value | 308,177,000 | 209,471,000 |
Debt securities, held-to-maturity, at cost | 22,972,000 | 24,810,000 |
Federal Reserve Bank stock, at cost | 4,652,000 | 4,652,000 |
Federal Home Loan Bank stock, at cost | 5,203,000 | 5,203,000 |
Loans, net | 1,363,939,000 | 1,293,693,000 |
Premises and equipment, net | 35,385,000 | 35,376,000 |
Operating Lease, Right-of-Use Asset | 6,357,000 | 6,274,000 |
Goodwill | 59,221,000 | 59,221,000 |
Core deposit and other intangibles, net | 2,473,000 | 3,453,000 |
Bank owned life insurance | 43,224,000 | 42,149,000 |
Accrued interest receivable | 7,999,000 | 8,337,000 |
Other assets, net | 21,246,000 | 17,027,000 |
TOTAL ASSETS | 1,903,629,000 | 1,745,884,000 |
Deposits: | ||
Non-interest-bearing | 501,531,000 | 455,073,000 |
Interest-bearing | 1,127,288,000 | 1,000,350,000 |
Total deposits | 1,628,819,000 | 1,455,423,000 |
Long-term debt | 10,000,000 | 22,000,000 |
Operating Lease, Liability | 6,473,000 | 6,371,000 |
Accrued interest and other liabilities | 19,733,000 | 21,265,000 |
TOTAL LIABILITIES | 1,665,025,000 | 1,505,059,000 |
COMMITMENTS AND CONTINGENT LIABILITIES | $ 0 | $ 0 |
Preferred Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
SHAREHOLDERS' EQUITY: | ||
Preferred shares - no par value, authorized 1,000,000 shares, none outstanding | $ 0 | $ 0 |
Common Stock, Value, Issued | 143,130,000 | 142,443,000 |
Retained earnings | $ 126,312,000 | $ 115,058,000 |
Treasury Stock, Shares | 1,798,836 | 1,305,579 |
Treasury Stock, Value | $ (29,029,000) | $ (20,719,000) |
Accumulated other comprehensive income (loss), net of taxes | (1,809,000) | 4,043,000 |
TOTAL SHAREHOLDERS' EQUITY | 238,604,000 | 240,825,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,903,629,000 | $ 1,745,884,000 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common stock, shares, outstanding (in shares) | 12,414,956 | 12,858,325 |
Common Stock, Shares, Issued | 14,213,792 | 14,163,904 |
Common Stock, Shares Authorized | 19,000,000 | 19,000,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
SHAREHOLDERS' EQUITY: | ||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Shares Authorized | 19,000,000 | 19,000,000 |
Common Stock, Shares, Issued | 14,213,792 | 14,163,904 |
Treasury Stock, Shares | 1,798,836 | 1,305,579 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INTEREST INCOME: | |||
Interest and fees on loans | $ 56,142 | $ 59,267 | $ 59,009 |
Dividend Income, Equity Securities, Operating | 51 | 54 | 62 |
Dividend Income, Operating | 21 | 37 | 65 |
Interest on debt securities: | |||
Taxable | 3,668 | 2,916 | 3,601 |
Non-taxable | 864 | 1,027 | 1,677 |
Interest Income, Deposits with Financial Institutions | 0 | 0 | 11 |
Other investments | 431 | 479 | 769 |
TOTAL INTEREST INCOME | 61,177 | 63,780 | 65,194 |
INTEREST EXPENSE: | |||
Interest on deposits | 3,578 | 6,634 | 9,526 |
Interest on short-term borrowings | 6 | 7 | 227 |
Interest on long-term debt | 469 | 921 | 1,035 |
TOTAL INTEREST EXPENSE | 4,053 | 7,562 | 10,788 |
NET INTEREST INCOME | 57,124 | 56,218 | 54,406 |
PROVISION (CREDIT) FOR LOAN LOSSES | (269) | 2,014 | 207 |
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES | 57,393 | 54,204 | 54,199 |
NON-INTEREST INCOME: | |||
Net gains (losses) on sales of debt securities | 303 | 221 | (41) |
Bank owned life insurance income | 1,074 | 1,441 | 943 |
Net gains from sales of loans | 852 | 2,297 | 328 |
Other operating income | 1,293 | 1,291 | 889 |
TOTAL NON-INTEREST INCOME | 16,232 | 15,741 | 12,348 |
NON-INTEREST EXPENSE: | |||
Salaries and employee benefits | 27,616 | 27,178 | 25,320 |
Equipment expenses | 1,678 | 1,377 | 1,209 |
Occupancy expense, net | 2,949 | 2,875 | 2,961 |
State financial institutions tax | 1,758 | 1,708 | 1,669 |
Marketing | 1,239 | 1,254 | 1,319 |
Amortization of intangibles | 1,043 | 1,046 | 1,043 |
FDIC insurance premiums, net | 492 | 256 | 225 |
ATM expense | 1,416 | 1,028 | 580 |
Computer maintenance and supplies | 1,213 | 1,107 | 1,094 |
Telephone expense | 420 | 706 | 707 |
Contracted services | 2,430 | 1,821 | 1,865 |
Merger-related expenses | 0 | 0 | 114 |
Other non-interest expense | 5,786 | 5,429 | 5,416 |
TOTAL NON-INTEREST EXPENSE | 48,040 | 45,785 | 43,522 |
INCOME BEFORE INCOME TAXES | 25,585 | 24,160 | 23,025 |
PROVISION FOR INCOME TAXES | 4,611 | 4,085 | 4,113 |
NET INCOME | $ 20,974 | $ 20,075 | $ 18,912 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 1.66 | $ 1.55 | $ 1.44 |
Diluted (in dollars per share) | $ 1.66 | $ 1.55 | $ 1.44 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 12,589,605 | 12,914,277 | 13,078,920 |
Diluted (in shares) | 12,589,613 | 12,914,584 | 13,082,893 |
Fiduciary and Trust | |||
Weighted average common shares outstanding: | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 6,674 | $ 5,009 | $ 4,354 |
Revenue from Contract with Customer, Excluding Assessed Tax | 6,674 | 5,009 | 4,354 |
Deposit Account | |||
Weighted average common shares outstanding: | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,036 | 5,482 | 5,875 |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 6,036 | $ 5,482 | $ 5,875 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 20,974 | $ 20,075 | $ 18,912 |
Other comprehensive income (loss): | |||
Net unrealized gain (loss) on available-for-sale securities (net of taxes of $(1,501), $975, and $1,450 for 2021, 2020, and 2019, respectively) | (5,645) | 3,666 | 5,456 |
Reclassification adjustment for net realized (gain) loss on sale of available-for-sale securities included in net income (net of taxes of $64, $46, and $(9) for 2021, 2020 and 2019, respectively) | (239) | (175) | 32 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | 32 | (121) | (96) |
Other comprehensive income (loss) | (5,852) | 3,370 | 5,392 |
TOTAL COMPREHENSIVE INCOME | 15,122 | 23,445 | 24,304 |
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX, AS OF YEAR-END: | |||
Net unrealized gain (loss) on securities available-for-sale | (1,536) | 4,348 | 857 |
Net unfunded liability for nonqualified pension plan | (273) | (305) | (184) |
Balance at year-end | $ (1,809) | $ 4,043 | $ 673 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other comprehensive income (loss): | |||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, Tax | $ (1,501) | $ 975 | $ 1,450 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 64 | 46 | (9) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | $ 9 | $ (33) | $ (26) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Shares | Retained Earnings | Treasury Shares | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Dec. 31, 2018 | 13,295,276 | ||||
Balance at beginning of year at Dec. 31, 2018 | $ 218,985 | $ 141,170 | $ 94,547 | $ (12,013) | $ (4,719) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 18,912 | 0 | 18,912 | 0 | 0 |
Other comprehensive income, net of taxes | 5,392 | $ 0 | 0 | 0 | 5,392 |
Dividend Reinvestment and Stock Purchase Plan (in shares) | 25,629 | ||||
Dividend Reinvestment and Stock Purchase Plan | 446 | $ 446 | 0 | 0 | 0 |
Exercise of stock options (in shares) | 3,374 | ||||
Exercise of stock options | 41 | $ 41 | 0 | 0 | 0 |
Treasury Stock, Shares, Acquired | 400,000 | ||||
Payments for Repurchase of Common Stock | 6,834 | $ 0 | 0 | 6,834 | 0 |
Compensation expense relating to restricted stock (in shares) | 12,504 | ||||
Compensation expense relating to restricted stock | 134 | $ 134 | 0 | 0 | 0 |
Dividends, Common Stock, Stock | 0 | ||||
Dividends, Common Stock, Cash | (9,028) | $ 0 | (9,028) | 0 | 0 |
Balance (in shares) at Dec. 31, 2019 | 12,936,783 | ||||
Balance at end of year at Dec. 31, 2019 | 228,048 | $ 141,791 | 104,431 | (18,847) | 673 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 20,075 | 0 | 20,075 | 0 | 0 |
Other comprehensive income, net of taxes | 3,370 | $ 0 | 0 | 0 | 3,370 |
Dividend Reinvestment and Stock Purchase Plan (in shares) | 26,840 | ||||
Dividend Reinvestment and Stock Purchase Plan | 401 | $ 401 | 0 | 0 | 0 |
Exercise of stock options (in shares) | 9,593 | ||||
Exercise of stock options | 114 | $ 114 | 0 | 0 | 0 |
Treasury Stock, Shares, Acquired | 130,552 | ||||
Payments for Repurchase of Common Stock | 1,872 | $ 0 | 0 | 1,872 | 0 |
Compensation expense relating to restricted stock (in shares) | 15,661 | ||||
Compensation expense relating to restricted stock | 137 | $ 137 | 0 | 0 | 0 |
Dividends, Common Stock, Stock | 0 | ||||
Dividends, Common Stock, Cash | $ (9,448) | $ 0 | (9,448) | 0 | 0 |
Balance (in shares) at Dec. 31, 2020 | 12,858,325 | 12,858,325 | |||
Balance at end of year at Dec. 31, 2020 | $ 240,825 | $ 142,443 | 115,058 | (20,719) | 4,043 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 20,974 | 0 | 20,974 | 0 | 0 |
Other comprehensive income, net of taxes | (5,852) | $ 0 | 0 | 0 | (5,852) |
Dividend Reinvestment and Stock Purchase Plan (in shares) | 24,012 | ||||
Dividend Reinvestment and Stock Purchase Plan | 434 | $ 434 | 0 | 0 | 0 |
Exercise of stock options (in shares) | 311 | ||||
Exercise of stock options | 4 | $ 4 | 0 | 0 | 0 |
Treasury Stock, Shares, Acquired | 493,257 | ||||
Payments for Repurchase of Common Stock | 8,310 | $ 0 | 0 | 8,310 | 0 |
Compensation expense relating to restricted stock (in shares) | 25,565 | ||||
Compensation expense relating to restricted stock | 249 | $ 249 | 0 | 0 | 0 |
Dividends, Common Stock, Stock | 0 | ||||
Dividends, Common Stock, Cash | $ (9,720) | $ 0 | (9,720) | 0 | 0 |
Balance (in shares) at Dec. 31, 2021 | 12,414,956 | 12,414,956 | |||
Balance at end of year at Dec. 31, 2021 | $ 238,604 | $ 143,130 | $ 126,312 | $ (29,029) | $ (1,809) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.77 | $ 0.73 | $ 0.69 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 20,974 | $ 20,075 | $ 18,912 |
Adjustments to reconcile net income to net cash flows from operating activities- | |||
Depreciation, amortization and accretion | 2,612 | 2,234 | 3,244 |
Provision (credit) for loan losses | (269) | 2,014 | 207 |
Deferred income tax provision | 294 | 134 | 419 |
Increase in cash surrender value of bank owned life insurance | (1,074) | (1,124) | (943) |
Bank owned life insurance death benefits in excess of cash surrender value | 0 | (317) | 0 |
Equity Securities, FV-NI, Gain (Loss) | (141) | (675) | (264) |
Net gain on sales of securities | (303) | (221) | 41 |
Realized gain from sales of premises and equipment, net | (6) | (53) | (1) |
Realized (gain) loss from sale and impairment of other real estate owned and repossessed assets | 0 | (11) | 44 |
Origination of mortgage loans for sale | (33,824) | (65,890) | (16,418) |
Realized gains from sales of loans | (852) | (2,297) | (328) |
Proceeds from sales of loans | 34,268 | 67,467 | 16,590 |
Compensation expense related to restricted stock | 249 | 137 | 134 |
Changes in: | |||
Accrued income receivable | 338 | (4,573) | 230 |
Other assets | (4,208) | (6,795) | (1,373) |
Other liabilities | (237) | 3,573 | 1,474 |
TOTAL ADJUSTMENTS | (3,153) | (6,397) | 3,056 |
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | 17,821 | 13,678 | 21,968 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from sales of equity securities | 0 | 967 | 398 |
Proceeds from sales of debt securities, available-for-sale | 21,235 | 8,786 | 84,521 |
Proceeds from maturities and calls of debt securities: | |||
Available-for-sale | 33,093 | 66,170 | 28,942 |
Held-to-maturity | 4,285 | 5,297 | 10,766 |
Purchases of equity securities | (16) | (369) | (367) |
Purchases of debt securities: | |||
Available-for-sale | (161,786) | (102,920) | (47,270) |
Held-to-maturity | (2,447) | (2,582) | (8,570) |
Increase (Decrease) in Time Deposits | 0 | 0 | 996 |
Proceeds from Sale of Federal Reserve Bank Stock | 0 | 0 | 1 |
Net increase in loans | (67,649) | (54,196) | (44,093) |
Purchase of bank owned life insurance | 0 | 0 | (12,000) |
Proceeds from bank owned life insurance mortality benefits | 0 | 958 | 0 |
Proceeds from sales of other real estate owned and repossessed assets | 0 | 208 | 19 |
Purchases of premises and equipment | (1,940) | (2,791) | (3,934) |
Proceeds from sales of premises and equipment | 6 | 421 | 5 |
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES | (175,219) | (80,051) | 9,056 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase in deposits | 173,396 | 107,143 | 47,361 |
Net decrease in short-term borrowings | 0 | 0 | (56,230) |
Principal payments on long-term debt | (12,000) | (19,000) | (6,055) |
Proceeds from issuance of common stock | 434 | 401 | 446 |
Payments for Repurchase of Common Stock | 8,310 | 1,872 | 6,834 |
Proceeds from exercise of stock options | 4 | 114 | 41 |
Cash dividends paid on common stock | (9,720) | (9,448) | (9,028) |
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES | 143,804 | 77,338 | (30,299) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (13,594) | 10,965 | 725 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 31,730 | 20,765 | 20,040 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 18,136 | 31,730 | 20,765 |
CASH PAID DURING THE YEAR FOR: | |||
Interest | 4,228 | 7,809 | 10,480 |
Income taxes | 3,665 | 3,811 | 3,471 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING ACTIVITY: | |||
Transfer from loans to other real estate owned and repossessed assets | 0 | 0 | 17 |
Payments to Acquire Federal Home Loan Bank Stock | $ 0 | $ 0 | $ (358) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES LCNB Corp. (the "Company" or “LCNB”), an Ohio corporation formed in December 1998, is a financial holding company whose principal activity is the ownership of LCNB National Bank (the "Bank"). The Bank was founded in 1877 and provides full banking services, including Wealth Management and Investment services, to customers primarily in Southwestern Ohio and Franklin County Ohio and contiguous areas. BASIS OF PRESENTATION The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions are eliminated in consolidation. The accounting and reporting policies of the Company conform with U.S. generally accepted accounting principles and with general practices in the banking industry. Certain prior period data presented in the consolidated financial statements have been reclassified to conform with the current year presentation. These reclassifications had no effect on net income or shareholders' equity. USE OF ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles 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. Actual results could differ from those estimates. Estimates that management has determined to be critical accounting estimates are more fully described in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Form 10-K. CASH AND CASH EQUIVALENTS For purposes of reporting cash flows, cash and cash equivalents include cash, balances due from banks, federal funds sold, and interest-bearing demand deposits with original maturities of twelve months or less. Deposits with other banks routinely have balances greater than FDIC insured limits. Management considers the risk of loss to be very low with respect to such deposits. INVESTMENT SECURITIES Certain municipal debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Debt securities not classified as held-to-maturity are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income, a separate component of shareholders’ equity. Amortization of premiums and accretion of discounts are recognized as adjustments to interest income using the level-yield method. Realized gains or losses from the sale of securities are recorded on the trade date and are computed using the specific identification method. Declines in the fair value of debt securities below their cost that are deemed to be other-than-temporarily impaired, and for which the Company does not intend to sell the securities and it is not more likely than not that the securities will be sold before the anticipated recovery of the impairment, are separated into losses related to credit factors and losses related to other factors. The losses related to credit factors are recognized in earnings and losses related to other factors are recognized in other comprehensive income. In estimating other than temporary impairment losses, management considers the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Management determined that no such impairment adjustment was required to be made in the Company's Consolidated Statements of Income as of December 31, 2021, 2020, and 2019. Equity securities with a readily determinable fair value are measured at fair value with changes in fair value recognized in net income. Federal Home Loan Bank ("FHLB") stock is an equity interest in the Federal Home Loan Bank of Cincinnati. It can be sold only at its par value of $100 per share and only to the FHLB or to another member institution. In addition, the equity ownership rights are more limited than would be the case for a public company because of the oversight role exercised by the Federal Housing Finance Agency in the process of budgeting and approving dividends. Federal Reserve Bank stock is similarly restricted in marketability and value. Both investments are carried at cost, which is their par value. FHLB and Federal Reserve Bank stock are both subject to minimum ownership requirements by member banks. The required investments in common stock are based on predetermined formulas. LOANS The Company’s loan portfolio includes most types of commercial and industrial loans, commercial loans secured by real estate, residential real estate loans, consumer loans, agricultural loans and other types of loans. Most of the properties collateralizing the loan portfolio are located within the Company’s market area. Loans are stated at the principal amount outstanding, net of unearned income, deferred origination fees and costs, and the allowance for loan losses. Interest income is accrued on the unpaid principal balance. The delinquency status of a loan is based on contractual terms and not on how recently payments have been received. Generally, a loan is placed on non-accrual status when it is classified as impaired or there is an indication that the borrower’s cash flow may not be sufficient to make payments as they come due, unless the loan is well secured and in the process of collection. Subsequent cash receipts on non-accrual loans are recorded as a reduction of principal and interest income is recorded once principal recovery is reasonably assured. The current year's accrued interest on loans placed on non-accrual status is charged against earnings. Previous years' accrued interest is charged against the allowance for loan losses. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer a reasonable doubt as to the timely collection of interest or principal. Loan origination fees and certain direct loan origination costs are deferred and the net amount amortized as an adjustment of loan yields. These amounts are being amortized over the lives of the related loans. In the ordinary course of business, the Company enters into off-balance sheet financial instruments consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. Loans acquired from mergers are recorded at fair value with no carryover of the acquired entity's previously established allowance for loan losses. The excess of expected cash flows over the estimated fair value of acquired loans is recognized as interest income over the remaining contractual lives of the loans using the level yield method. Subsequent decreases in expected cash flows will require additions to the allowance for loan losses. Subsequent improvements in expected cash flows result in the recognition of additional interest income over the then-remaining contractual lives of the loans. Management estimates the cash flows expected to be collected at acquisition using a third-party risk model, which incorporates the estimate of key assumptions, such as default rates, severity, and prepayment speeds. Impaired loans acquired are accounted for under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") No. 310-30. Factors considered in evaluating whether an acquired loan was impaired include delinquency status and history, updated borrower credit status, collateral information, and current loan-to-value information. The difference between contractually required payments at the time of acquisition and the cash flows expected to be collected is referred to as the nonaccretable difference. The interest component of the cash flows expected to be collected is referred to as the accretable yield and is recognized as interest income over the remaining contractual life of the loan using the level yield method. Subsequent decreases in expected cash flows will require additions to the allowance for loan losses. Subsequent improvements in expected cash flows will result in a reclassification from the nonaccretable difference to the accretable yield. ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Consumer loans are charged off when they reach 120 days past due. Subsequent recoveries, if any, are credited to the allowance. The provision for loan losses is determined by management based upon its evaluation of the amount needed to maintain the allowance for loan losses at a level considered appropriate in relation to the estimated risk of losses inherent in the portfolio. Current methodology used by management to estimate the allowance takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, historic categorical trends, current delinquency levels as related to historical levels, portfolio growth rates, changes in composition of the portfolio, the current economic environment, as well as current allowance adequacy in relation to the portfolio. Management is cognizant that reliance on historical information coupled with the cyclical nature of the economy, including credit cycles, affects the allowance. Management considers all of these factors prior to making any adjustments to the allowance due to the subjectivity and imprecision involved in allocation methodology. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are specifically reviewed for impairment. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers loans not specifically reviewed for impairment and homogeneous loan pools, such as residential real estate and consumer loans. The general component is measured for each loan category separately based on each category’s average of historical loss experience over a trailing sixty month period, adjusted for qualitative factors. Such qualitative factors may include current economic conditions if different from the five-year historical loss period, trends in underperforming loans, trends in volume and terms of loan categories, concentrations of credit, and trends in loan quality. A loan is considered impaired when management believes, based on current information and events, it is probable that the Bank will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. An impaired loan is measured by the present value of expected future cash flows using the loan's effective interest rate. An impaired collateral-dependent loan may be measured based on collateral value. Smaller-balance homogeneous loans, including residential mortgage and consumer installment loans, which are not evaluated individually are collectively evaluated for impairment. PREMISES AND EQUIPMENT Premises and equipment are stated at cost less accumulated depreciation. Land is stated at cost. Depreciation is computed on both the straight-line and accelerated methods over the estimated useful lives of the assets, generally 15 to 40 years for premises and 3 to 10 years for equipment. Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Costs incurred for maintenance and repairs are expensed as incurred. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable. LEASES FASB Accounting Standards Update ("ASU") No. 2016-02, "Leases (Topic 842)," requires a lessee to recognize in the statement of financial position a liability to make lease payments ("the lease liability") and a right-of-use asset representing its right to use the underlying asset for the lease term, initially measured at the present value of the lease payments. When measuring assets and liabilities arising from a lease, the lessee should include payments to be made in optional periods only if the lessee is reasonably certain, as defined, to exercise an option to the lease or not to exercise an option to terminate the lease. Optional payments to purchase the underlying asset should be included if the lessee is reasonably certain it will exercise the purchase option. Most variable lease payments should be excluded except for those that depend on an index or a rate or are in substance fixed payments. A lessee shall classify a lease as a finance lease if it meets any of five designated criteria. If the lease does not meet any of the five criteria, the lessee shall classify it as an operating lease. All leases entered into by LCNB through December 31, 2021 and 2020 are classified as operating leases. Lessees shall recognize a single lease cost on a straight-line basis over the lease term for operating leases. LCNB has adopted an accounting policy election to not recognize lease assets and lease liabilities for leases with a term of 12 months or less. Lease expense for such leases will generally be recognized on a straight-line basis over the lease term. OTHER REAL ESTATE OWNED Other real estate owned includes properties acquired through foreclosure. Such property is held for sale and is initially recorded at fair value, less costs to sell, establishing a new cost basis. Fair value is primarily based on a property appraisal obtained at the time of transfer and any periodic updates that may be obtained thereafter. The allowance for loan losses is charged for any write down of the loan’s carrying value to fair value at the date of transfer. Any subsequent reductions in fair value and expenses incurred from holding other real estate owned are charged to other non-interest expense. Costs, excluding interest, relating to the improvement of other real estate owned are capitalized. Gains and losses from the sale of other real estate owned are included in other non-interest expense. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill is not amortized, but is instead subject to an annual review for impairment. A review for impairment may be conducted more frequently than annually if circumstances indicate a possible impairment. Impairment indicators that may be considered include the condition of the economy and banking industry; estimated future cash flows; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting unit; performance of LCNB’s stock, and other relevant events. These and other factors could lead to a conclusion that goodwill is impaired, which would require LCNB to write off the difference between the estimated fair value of the company and the carrying value. Mortgage servicing rights on originated mortgage loans that have been sold are initially recorded at their estimated fair values. Mortgage servicing rights are amortized to loan servicing income in proportion to and over the period of estimated servicing income. Such assets are periodically evaluated as to the recoverability of their carrying value. The Company’s other intangible assets relate to core deposits acquired from business combinations. These intangible assets are amortized on a straight-line basis over their estimated useful lives. Management evaluates whether events or circumstances have occurred that indicate the remaining useful life or carrying value of the amortizing intangible should be revised. BANK OWNED LIFE INSURANCE The Company has purchased life insurance policies on certain officers of the Company. The Company is the beneficiary of these policies and has recorded the estimated cash surrender value in the Consolidated Balance Sheets. Income on the policies, based on the increase in cash surrender value and any incremental death benefits, is included in non-interest income in the Consolidated Statements of Income. AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP LCNB has elected to account for its investment in an affordable housing tax credit limited partnership using the proportional amortization method described in "ASU 2014-01, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (A Consensus of the FASB Emerging Issues Task Force)." Under the proportional amortization method, an investor amortizes the initial cost of the investment to income tax expense in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The investment in the limited partnership is included in other assets and the unfunded amount is included in accrued interest and other liabilities in LCNB's Consolidated Balance Sheets. FAIR VALUE MEASUREMENTS Accounting guidance establishes a fair value hierarchy to prioritize the inputs to valuation techniques used to measure fair value. A financial instrument’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three broad input levels are: • Level 1 – quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the reporting date; • Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly; and • Level 3 - inputs that are unobservable for the asset or liability. Accounting guidance permits, but does not require, companies to measure many financial instruments and certain other items, including loans and debt securities, at fair value. The decision to elect the fair value option is made individually for each instrument and is irrevocable once made. Changes in fair value for the selected instruments are recorded in earnings. The Company did not select any financial instruments for the fair value election in 2021 or 2020. ADVERTISING EXPENSE Advertising costs are expensed as incurred and are recorded as a marketing expense, a component of non-interest expense. PENSION PLANS Eligible employees of the Company hired before 2009 participate in a multiple-employer qualified noncontributory defined benefit retirement plan. This plan is accounted for as a multi-employer plan because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Citizens National had a qualified noncontributory, defined benefit pension plan, which has been assumed by the Company, that covers eligible employees hired before May 1, 2005. This is a single employer plan. TREASURY STOCK Common shares repurchased are recorded at cost. Cost of shares retired or reissued is determined using the weighted average method. STOCK OPTIONS AND RESTRICTED STOCK AWARD PLANS The cost of employee services received in exchange for stock option grants is the grant-date fair value of the award estimated using an option-pricing model. The compensation cost for restricted stock awards is based on the market price of the Company's common stock at the date of grant multiplied by the number of shares granted that are expected to vest. The estimated cost is recognized on a straight-line basis over the period the employee is required to provide services in exchange for the award, usually the vesting period. The Company uses a Black-Scholes pricing model and related assumptions for estimating the fair value of stock option grants and a five-year vesting period for stock options and restricted stock. REVENUE RECOGNITION FASB ASC No. 606, "Revenue from Contracts with Customers" ("ASC No. 606") provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance enumerates five steps that entities should follow in achieving this core principle. Revenue generated from financial instruments, including loans and investment securities, are not included in the scope of ASC No. 606. The adoption of ASC No. 606 did not result in a change to the accounting for any of LCNB's revenue streams that are within the scope of the amendments. Revenue-generating activities that are within the scope of ASC 606 and that are presented as non-interest income in LCNB's Consolidated Statements of Income include: • Fiduciary income - this includes periodic fees due from Wealth Management and Investment Services customers for managing the customers' financial assets. Fees are generally charged on a quarterly or annual basis and are recognized ratably throughout the period, as the services are provided on an ongoing basis. • Service charges and fees on deposit accounts - these include general service fees charged for deposit account maintenance and activity and transaction-based fees charged for certain services, such as debit card, wire transfer, or overdraft activities. Revenue is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services. INCOME TAXES Deferred income taxes are determined using the asset and liability method of accounting. Under this method, the net deferred tax asset or liability is determined based on the tax effects of temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Management analyzes material tax positions taken in any income tax return for any tax jurisdiction and determines the likelihood of the positions being sustained in a tax examination. 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 is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. EARNINGS PER SHARE Basic earnings per share allocated to common shareholders is calculated using the two-class method and is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is adjusted for the dilutive effects of stock based compensation and is calculated using the two-class method or the treasury stock method. The diluted average number of common shares outstanding has been increased for the assumed exercise of stock based compensation with the proceeds used to purchase treasury shares at the average market price for the period. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ASU No. 2017-04 was issued in January 2017 and was adopted by LCNB as of January 1, 2020. It applies to public and other entities that have goodwill reported in their financial statements. To simplify the subsequent measurement of goodwill, this ASU eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Adoption of ASU No. 2017-04 did not have a material impact on LCNB's results of consolidated operations or financial position. ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" ASU No. 2018-13 was issued in August 2018 and was adopted by LCNB as of January 1, 2020. It applies to all entities that are required to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this update modify fair value disclosure requirements, including the deletion, modification, and addition of certain targeted disclosures. Adoption of ASU No. 2018-13 did not have a material impact on LCNB's results of consolidated operations or financial position. ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" ASU No. 2018-15 was issued in August 2018 and was adopted by LCNB on January 1, 2020. It applies to entities that are a customer in a hosting arrangement, as defined, that is accounted for as a service contract. The amendments in this update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Capitalized implementation costs are to be expensed over the term of the hosting arrangement. Adoption of ASU No. 2018-15 did not have a material impact on LCNB's results of consolidated operations or financial position. ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ASU No. 2020-04 was issued in March 2020 and provides optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying generally accepted accounting principles ("GAAP") to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. LCNB does not expect the guidance in ASU No. 2020-04 will have a material impact on its results of consolidated operations or financial position. ASU No. 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans" ASU No. 2018-14 was issued in August 2018 and was adopted by LCNB on January 1, 2021. The amendments in this update modify disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans, including the deletion, modification, and addition of certain targeted disclosures. The amendments are to be applied on a retrospective basis to all periods presented upon adoption. Adoption of ASU No. 2018-14 did not have a material impact on LCNB's results of consolidated operations or financial position. ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ASU No. 2019-12 was issued in December 2019 and adopted by LCNB on January 1, 2021. It simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifies and amends certain other guidance. Adoption of ASU No. 2019-12 did not have a material impact on LCNB's results of consolidated operations or financial position. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE From time to time the FASB issues an ASU to communicate changes to U.S. GAAP. The following information provides brief summaries of newly issued but not yet effective ASUs that could have an effect on LCNB’s financial position or results of consolidated operations: ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ASU No. 2016-13 was issued in June 2016 and, once effective, will significantly change current guidance for recognizing impairment of financial instruments. Current guidance requires an "incurred loss" methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. ASU No. 2016-13 replaces the incurred loss impairment methodology with a new current expected credit loss ("CECL") methodology that reflects expected credit losses over the lives of the loans and requires consideration of a broader range of information to inform credit loss estimates. The ASU requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. Additional disclosures are required. ASU No. 2016-13 also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Under the new guidance, entities will determine whether all or a portion of the unrealized loss on an available-for-sale debt security is a credit loss. Any credit loss will be recognized as an allowance for credit losses on available-for-sale debt securities rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. As a result, entities will recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings rather than as interest income over time, as currently required. ASU No. 2016-13 eliminates the current accounting model for purchased credit impaired loans and debt securities. Instead, purchased financial assets with credit deterioration will be recorded gross of estimated credit losses as of the date of acquisition and the estimated credit losses amounts will be added to the allowance for credit losses. Thereafter, entities will account for additional impairment of such purchased assets using the models listed above. Originally, ASU No. 2016-13 would have taken effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. At their meeting on October 16, 2019, FASB approved a final ASU delaying the effective date for several major standards, including ASU No. 2016-13, if certain qualifications are met. The new effective date for SEC filers eligible to be smaller reporting companies ("SRC"), as defined, will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. As an SRC, LCNB intends to adopt ASU No. 2016-13 for the fiscal year, and interim periods within the fiscal year, beginning after December 15, 2022. LCNB has created a cross-functional CECL Committee, which reports to the Audit Committee, composed of members from the lending, Wealth Management, and finance departments. During 2017, the CECL Committee selected a vendor to assist in implementation of and ongoing compliance with the new requirements. It has completed analyzing |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The amortized cost and estimated fair value of equity and debt securities at December 31 are summarized as follows (in thousands): Amortized Unrealized Unrealized Fair 2021 Debt Securities Available-for-Sale: U.S. Treasury notes $ 75,443 57 756 74,744 U.S. Agency notes 89,293 45 2,092 87,246 Corporate Bonds 5,200 70 118 5,152 U.S. Agency mortgage-backed securities 96,018 1,350 692 96,676 Municipal securities: Non-taxable 8,959 125 18 9,066 Taxable 35,208 531 446 35,293 $ 310,121 2,178 4,122 308,177 Debt Securities Held-to-Maturity: Municipal securities: Non-taxable $ 19,403 98 — 19,501 Taxable 3,569 21 4 3,586 $ 22,972 119 4 23,087 2020 Debt Securities Available-for-Sale: U.S. Treasury notes $ 2,268 120 — 2,388 U.S. Agency notes 66,983 950 33 67,900 Corporate Bonds 1,200 — 21 1,179 U.S. Agency mortgage-backed securities 88,455 3,180 1 91,634 Municipal securities: Non-taxable 12,651 282 — 12,933 Taxable 32,409 1,031 3 33,437 $ 203,966 5,563 58 209,471 Debt Securities Held-to-Maturity: Municipal securities: Non-taxable $ 21,408 181 — 21,589 Taxable 3,402 6 37 3,371 $ 24,810 187 37 24,960 Information concerning debt securities with gross unrealized losses at December 31, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (in thousands): Less Than Twelve Months Twelve Months or More Fair Unrealized Fair Unrealized 2021 Available-for-Sale: U.S. Treasury notes $ 66,891 756 — U.S. Agency notes 58,648 1,257 20,289 835 Corporate Bonds 3,898 102 484 16 U.S. Agency mortgage-backed securities 49,813 692 — — Municipal securities: Non-taxable 1,020 18 — — Taxable 18,434 322 3,535 124 $ 198,704 3,147 24,308 975 Held-to-Maturity: Municipal securities: Non-taxable $ 46 — — — Taxable 271 4 — — $ 317 4 — — 2020 Available-for-Sale: U.S. Agency notes $ 10,674 33 — — Corporate Bonds 679 21 — — U.S. Agency mortgage-backed securities 290 1 — — Municipal securities: Non-taxable 38 — — — Taxable 3,063 3 — — $ 14,744 58 — — Held-to-Maturity: Municipal securities: Non-taxable $ 1 — — — Taxable 3,113 37 — — $ 3,114 37 — — Management has determined that the unrealized losses at December 31, 2021 are primarily due to fluctuations in market interest rates and do not reflect credit quality deterioration of the securities. Because the Company does not have the intent to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost, the Company does not consider these investments to be other-than-temporarily impaired. Contractual maturities of debt securities at December 31, 2021 were as follows (in thousands). Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations. Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair Due within one year $ 5,971 5,993 1,867 1,876 Due from one to five years 80,780 80,181 4,960 4,969 Due from five to ten years 126,622 124,594 2,894 2,904 Due after ten years 730 733 13,251 13,338 214,103 211,501 22,972 23,087 U.S. Agency mortgage-backed securities 96,018 96,676 — — $ 310,121 308,177 22,972 23,087 Debt securities with a market value of $128,426,000 and $118,599,000 at December 31, 2021 and 2020, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. Certain information concerning the sale of debt securities available-for-sale for the years ended December 31 was as follows (in thousands): 2021 2020 2019 Proceeds from sales $ 21,235 8,786 84,521 Gross realized gains 365 221 228 Gross realized losses 62 — 269 Realized gains or losses from the sale of securities are computed using the specific identification method. Equity securities with a readily determinable fair value are carried at fair value, with changes in fair value recognized in other operating income in the Consolidated Statements of Income. Equity securities without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. LCNB was not aware of any impairment or observable price change adjustments that needed to be made at December 31, 2021 on its investments in equity securities without a readily determinable fair value. The amortized cost and estimated fair value of equity securities with a readily determinable fair value at December 31 are summarized as follows (in thousands): 2021 2020 Amortized Fair Amortized Cost Fair Value Mutual funds $ 1,410 1,379 1,395 1,402 Equity securities 778 1,167 778 987 Total equity securities with a readily determinable fair value $ 2,188 2,546 2,173 2,389 Certain information concerning changes in fair value of equity securities with a readily determinable fair value for the years ended December 31 was as follows (in thousands): 2021 2020 Net gains recognized $ 141 675 Less net realized gains on equity securities sold — 658 Unrealized gains recognized and still held at period end $ 141 17 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
LOANS | LOANS Major classifications of loans at December 31 were as follows (in thousands): 2021 2020 Commercial and industrial $ 101,598 99,596 Commercial, secured by real estate 887,679 842,209 Residential real estate 335,106 310,085 Consumer 34,291 37,052 Agricultural 10,649 10,116 Other loans, including deposit overdrafts 122 363 1,369,445 1,299,421 Less allowance for loan losses 5,506 5,728 Loans-net $ 1,363,939 1,293,693 Loans in the above table are shown net of deferred origination fees and costs. Deferred origination fees, net of related costs, were $961,000 and $1,135,000 at December 31, 2021 and 2020, respectively. Non-accrual, past-due, and accruing restructured loans at December 31 were as follows (dollars in thousands): 2021 2020 Non-accrual loans: Commercial, secured by real estate $ 1,182 2,458 Residential real estate 299 1,260 Total non-accrual loans 1,481 3,718 Past-due 90 days or more and still accruing 56 — Total non-accrual and past-due 90 days or more and still accruing 1,537 3,718 Accruing restructured loans 2,622 5,176 Total $ 4,159 8,894 Ratio of total non-accrual loans to total loans 0.11 % 0.29 % Ratio of total non-accrual loans, past-due 90 days or more and still accruing, and accruing restructured loans to total loans 0.30 % 0.68 % Interest income that would have been recorded during 2021 and 2020 if loans on non-accrual status at December 31, 2021 and 2020 had been current and in accordance with their original terms was approximately $31,000 and $134,000, respectively. The allowance for loan losses and recorded investment in loans for the years ended December 31 were as follows (in thousands): Commercial Commercial, Residential Consumer Agricultural Other Total 2021 Allowance for loan losses: Balance, beginning of year $ 816 3,903 837 153 28 (9) 5,728 Provision (credit) charged to expenses 279 (375) (190) (45) 2 60 (269) Losses charged off — (112) (28) (9) — (105) (254) Recoveries — 191 46 6 — 58 301 Balance, end of year $ 1,095 3,607 665 105 30 4 5,506 Individually evaluated for impairment $ 5 11 9 — — — 25 Collectively evaluated for impairment 1,090 3,596 656 105 30 4 5,481 Acquired credit impaired loans — — — — — — — Balance, end of year $ 1,095 3,607 665 105 30 4 5,506 Loans: Individually evaluated for impairment $ 155 2,945 559 — — — 3,659 Collectively evaluated for impairment 101,355 883,122 333,384 34,291 10,649 122 1,362,923 Acquired credit impaired loans 88 1,612 1,163 — — — 2,863 Balance, end of year $ 101,598 887,679 335,106 34,291 10,649 122 1,369,445 Ratio of net charge-offs to average loans — % (0.01) % (0.01) % 0.01 % — % 16.24 % — % 2020 Allowance for loan losses: Balance, beginning of year $ 456 2,924 528 99 34 4 4,045 Provision (credit) charged to expenses 342 1,332 239 62 (6) 45 2,014 Losses charged off (13) (353) (5) (30) — (140) (541) Recoveries 31 — 75 22 — 82 210 Balance, end of year $ 816 3,903 837 153 28 (9) 5,728 Individually evaluated for impairment $ 8 17 27 — — — 52 Collectively evaluated for impairment 808 3,886 810 153 28 (9) 5,676 Acquired credit impaired loans — — — — — — — Balance, end of year $ 816 3,903 837 153 28 (9) 5,728 Loans: Individually evaluated for impairment $ 194 6,613 1,641 5 — — 8,453 Collectively evaluated for impairment 99,040 833,548 306,138 37,047 10,116 179 1,286,068 Acquired credit impaired loans 362 2,048 2,306 — — 184 4,900 Balance, end of year $ 99,596 842,209 310,085 37,052 10,116 363 1,299,421 Ratio of net charge-offs to average loans (0.02) % 0.04 % (0.02) % 0.02 % — % 10.83 % 0.03 % Commercial Commercial, Residential Consumer Agricultural Other Total 2019 Allowance for loan losses: Balance, beginning of year $ 400 2,745 767 87 46 1 4,046 Provision (credit) charged to expenses 103 266 (264) 4 (12) 110 207 Losses charged off (47) (143) (272) (24) — (181) (667) Recoveries — 56 297 32 — 74 459 Balance, end of year $ 456 2,924 528 99 34 4 4,045 Individually evaluated for impairment $ 6 272 17 — — — 295 Collectively evaluated for impairment 450 2,652 511 99 34 4 3,750 Acquired credit impaired loans — — — — — — — Balance, end of year $ 456 2,924 528 99 34 4 4,045 Ratio of net charge-offs to average loans 0.06 % 0.01 % (0.01) % (0.04) % — % 18.57 % 0.02 % The risk characteristics of LCNB's material loan portfolio segments were as follows: Commercial & Industrial Loans. LCNB’s commercial and industrial loan portfolio consists of loans for various purposes, including loans to fund working capital requirements (such as inventory and receivables financing) and purchases of machinery and equipment. LCNB offers a variety of commercial and industrial loan arrangements, including term loans, balloon loans, and lines of credit. Commercial & industrial loans can have a fixed or variable rate, with maturities ranging from one This category includes PPP loans that were authorized under the CARES Act and updated by the Economic Aid Act. The PPP was implemented by the SBA with support from the Department of the Treasury and provided small businesses that were negatively impacted by the COVID-19 pandemic with g overnment guaranteed and potentially forgivable loans that could be used to pay up to eight or twenty-four weeks, depending on the date of the loan, of payroll costs including benefits. Funds could also be used to pay interest on mortgages, rent, utilities, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures. Eligible borrowers could apply for a First Draw or a Second Draw PPP Loan prior to the program ending on May 31, 2021. PPP loans made by LCNB have a maturity of two years if issued prior to June 5, 2020 and five years if issued on or after June 5, 2020. The loans have an interest rate of 1%. In addition, the SBA paid originating lenders processing fees based on the size of the loan. A borrower who meets certain requirements can request loan forgiveness from the SBA. If loan forgiveness is granted, the SBA will forward the forgiveness amount to the lender. LCNB originated 316 PPP loans with original balances totaling $45.5 million during 2020 and originated an additional 358 loans with original balances totaling $38.3 million during the first half of 2021. The outstanding balance at December 31, 2021 was $6.9 million. Commercial, Secured by Real Estate Loans. Commercial real estate loans include loans secured by a variety of commercial, retail and office buildings, religious facilities, hotels, multifamily (more than four-family) residential properties, construction and land development loans, and other land loans. Mortgage loans secured by owner-occupied agricultural property are included in this category. Commercial real estate loan products generally amortize over five one one Commercial real estate loans are underwritten based on the ability of the property, in the case of income producing property, or the borrower’s business to generate sufficient cash flow to amortize the debt. Secondary emphasis is placed upon global debt service, collateral value, financial strength and liquidity of any and all guarantors, and other factors. Commercial real estate loans are generally originated with a 75% to 85% maximum loan to appraised value ratio, depending upon borrower occupancy. Residential Real Estate Loans. Residential real estate loans include loans secured by first or second mortgage liens on one to four-family residential properties. Home equity lines of credit are included in this category. First and second mortgage loans are generally amortized over five one Residential real estate loans are underwritten primarily based on the borrower’s ability to repay, prior credit history, and the value of the collateral. LCNB requires private mortgage insurance for first mortgage loans that have a loan to appraised value ratio of greater than 80%. Consumer Loans. LCNB’s portfolio of consumer loans generally includes secured and unsecured loans to individuals for household, family and other personal expenditures. Secured loans include loans to fund the purchase of automobiles, recreational vehicles, boats, and similar acquisitions. Consumer loans made by LCNB generally have fixed rates and terms ranging up to 72 months, depending upon the nature of the collateral, size of the loan, and other relevant factors. Consumer loans generally have higher interest rates, but pose additional risks of collectability and loss when compared to certain other types of loans. Collateral, if present, is generally subject to damage, wear, and depreciation. The borrower’s ability to repay is of primary importance in the underwriting of consumer loans. Agricultural Loans. LCNB’s portfolio of agricultural loans includes loans for financing agricultural production or for financing the purchase of equipment used in the production of agricultural products. LCNB’s agricultural loans are generally secured by farm machinery, livestock, crops, vehicles, or other agricultural-related collateral. LCNB uses a risk-rating system to quantify loan quality. A loan is assigned to a risk category based on relevant information about the ability of the borrower to service the debt including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. The categories used are: • Pass – loans categorized in this category are higher quality loans that do not fit any of the other categories described below. • Other Assets Especially Mentioned (OAEM) - loans in this category are currently protected but are potentially weak. These loans constitute a risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitute an undue risk in light of the circumstances surrounding a specific asset. • Substandard – loans in this category are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the possibility that LCNB will sustain some loss if the deficiencies are not corrected. • Doubtful – loans classified in this category have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. An analysis of the Company’s loan portfolio by credit quality indicators at December 31 is as follows (in thousands): Pass OAEM Substandard Doubtful Total 2021 Commercial & industrial $ 98,694 2,757 147 — 101,598 Commercial, secured by real estate 851,709 22,336 13,634 — 887,679 Residential real estate 332,962 — 2,144 — 335,106 Consumer 34,281 — 10 — 34,291 Agricultural 10,649 — — — 10,649 Other 122 — — — 122 Total $ 1,328,417 25,093 15,935 — 1,369,445 2020 Commercial & industrial $ 97,391 — 2,205 — 99,596 Commercial, secured by real estate 811,558 9,279 21,372 — 842,209 Residential real estate 306,092 1,005 2,988 — 310,085 Consumer 37,050 — 2 — 37,052 Agricultural 10,116 — — — 10,116 Other 363 — — — 363 Total $ 1,262,570 10,284 26,567 — 1,299,421 LCNB evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. No significant changes were made to either during the past year. A loan portfolio aging analysis at December 31 is as follows (in thousands): 30-59 Days 60-89 Days Greater Than Total Current Total Loans Total Loans Greater Than 2021 Commercial & industrial $ — — — — 101,598 101,598 — Commercial, secured by real estate 181 — 784 965 886,714 887,679 — Residential real estate 1,130 1 109 1,240 333,866 335,106 51 Consumer 22 5 5 32 34,259 34,291 5 Agricultural — — — — 10,649 10,649 — Other 122 — — 122 — 122 — Total $ 1,455 6 898 2,359 1,367,086 1,369,445 56 2020 Commercial & industrial $ — — — — 99,596 99,596 — Commercial, secured by real estate 16 — 1,476 1,492 840,717 842,209 — Residential real estate 497 219 675 1,391 308,694 310,085 — Consumer 4 1 — 5 37,047 37,052 — Agricultural — — — — 10,116 10,116 — Other 60 — — 60 303 363 — Total $ 577 220 2,151 2,948 1,296,473 1,299,421 — Impaired loans, including acquired credit impaired loans, for the years ended December 31 were as follows (in thousands): Recorded Unpaid Related Average Interest 2021 With no related allowance recorded: Commercial & industrial $ 88 316 — 236 83 Commercial, secured by real estate 3,897 4,736 — 5,978 411 Residential real estate 1,501 1,857 — 2,553 227 Consumer — — — 1 — Agricultural — — — — — Other — — — 144 127 Total $ 5,486 6,909 — 8,912 848 With an allowance recorded: Commercial & industrial $ 155 160 5 175 10 Commercial, secured by real estate 660 660 11 674 36 Residential real estate 221 221 9 230 13 Consumer — — — — — Agricultural — — — — — Other — — — — — Total $ 1,036 1,041 25 1,079 59 Total: Commercial & industrial $ 243 476 5 411 93 Commercial, secured by real estate 4,557 5,396 11 6,652 447 Residential real estate 1,722 2,078 9 2,783 240 Consumer — — — 1 — Agricultural — — — — — Other — — — 144 127 Total $ 6,522 7,950 25 9,991 907 Recorded Unpaid Related Average Interest 2020 With no related allowance recorded: Commercial & industrial $ 362 646 — 1,044 335 Commercial, secured by real estate 6,050 6,735 — 7,070 731 Residential real estate 3,261 3,695 — 3,290 316 Consumer 4 4 — 10 1 Agricultural — — — — — Other 184 297 — 234 36 Total $ 9,861 11,377 — 11,648 1,419 With an allowance recorded: Commercial & industrial $ 194 199 8 212 12 Commercial, secured by real estate 2,611 2,908 17 1,517 18 Residential real estate 686 687 27 404 18 Consumer 1 1 — 3 — Agricultural — — — — — Other — — — — — Total $ 3,492 3,795 52 2,136 48 Total: Commercial & industrial $ 556 845 8 1,256 347 Commercial, secured by real estate 8,661 9,643 17 8,587 749 Residential real estate 3,947 4,382 27 3,694 334 Consumer 5 5 — 13 1 Agricultural — — — — — Other 184 297 — 234 36 Total $ 13,353 15,172 52 13,784 1,467 Average Interest 2019 With no related allowance recorded: Commercial & industrial $ 836 83 Commercial, secured by real estate 12,748 1,213 Residential real estate 3,704 311 Consumer 12 1 Agricultural — — Other 310 35 Total $ 17,610 1,643 With an allowance recorded: Commercial & industrial $ 247 15 Commercial, secured by real estate 2,513 64 Residential real estate 528 35 Consumer 20 1 Agricultural — — Other — — Total $ 3,308 115 Total: Commercial & industrial $ 1,083 98 Commercial, secured by real estate 15,261 1,277 Residential real estate 4,232 346 Consumer 32 2 Agricultural — — Other 310 35 Total $ 20,918 1,758 Of the interest income recognized on impaired loans during 2021, 2020, and 2019, approximately $37,000, $34,000, and $42,000, respectively, were recognized on a cash basis. The Company continued to accrue interest on certain loans classified as impaired during 2021, 2020, and 2019 because they were restructured or considered well secured and in the process of collection. From time to time, the terms of certain loans are modified as troubled debt restructurings ("TDRs") where concessions are granted to borrowers experiencing financial difficulties. The modification of the terms of such loans may have included one, or a combination, of the following: a temporary or permanent reduction of the stated interest rate of the loan, an increase in the stated rate of interest lower than the current market rate for new debt with similar risk, forgiveness of principal, an extension of the maturity date, or a change in the payment terms. Loan modifications that were classified as troubled debt restructurings during the years ended December 31 were as follows (dollars in thousands): 2021 2020 Number Pre-Modification Recorded Balance Post-Modification Recorded Balance Number Pre-Modification Recorded Balance Post-Modification Recorded Balance Commercial and industrial — $ — $ — 1 $ 5 $ 4 Commercial, secured by real estate — — — 1 1,525 1,525 Residential real estate 3 97 101 1 14 14 Consumer — — — — — — Totals 3 $ 97 $ 101 3 $ 1,544 $ 1,543 Post-modification balances of newly restructured troubled debt by type of modification for the years ended December 31 were as follows (in thousands): Term Modification Rate Modification Interest Only Principal Forgiveness Combination Total Modifications 2021 Commercial & industrial $ — — — — — — Commercial, secured by real estate — — — — — — Residential real estate 32 — — — 69 101 Consumer — — — — — — Total $ 32 — — — 69 101 2020 Commercial & industrial $ — — — — 4 4 Commercial, secured by real estate — — — — 1,525 1,525 Residential real estate — — — — 14 14 Consumer — — — — — — Total $ — — — — 1,543 1,543 LCNB is not committed to lend additional funds to borrowers whose loan terms were modified in a troubled debt restructuring. There were no troubled debt restructurings that subsequently defaulted within twelve months of the restructuring date for the years ended December 31, 2021, 2020, or 2019. All troubled debt restructurings are considered impaired loans. The allowance for loan loss on such restructured loans is based on the present value of future expected cash flows. Information concerning the post-modification balances of loans that were modified during the year ended December 31 and that were determined to be troubled debt restructurings follows (in thousands): 2021 2020 Impaired loans without a valuation allowance at the end of the period 101 4 Impaired loans with a valuation allowance at the end of the period — 1,539 The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“Section 4013”). To be eligible under Section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. The Consolidated Appropriations Act, 2021 was signed into law on December 20, 2020 and, among other provisions, extended the provisions in Section 4013 to January 1, 2022. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the FASB, confirmed that, for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. No loans remained on modified terms under the guidance of Section 4013 at December 31, 2021 and the carrying value of such loans was $19,023,000 at December 31, 2020. No loans remained on modified terms under the guidance of the revised interagency statement at December 31, 2021 and such loans totaled $1,553,000 at December 31, 2020. Mortgage loans sold to and serviced for the Federal Home Loan Mortgage Corporation and other investors are not included in the accompanying Consolidated Balance Sheets. The unpaid principal balances of those loans at December 31, 2021 and 2020 were approximately $149,382,000 and $137,188,000, respectively. Mortgage servicing right assets are included in core deposit and other intangibles in the Consolidated Balance Sheets. Amortization of mortgage servicing rights is an adjustment to loan servicing income, which is included with other operating income in the Consolidated Statements of Income. Activity in the mortgage servicing rights portfolio during the years ended December 31 was as follows (in thousands): 2021 2020 2019 Balance, beginning of year $ 976 483 475 Amount capitalized to mortgage servicing rights 409 719 156 Amortization of mortgage servicing rights (346) (226) (148) Balance, end of year $ 1,039 976 483 |
ACQUIRED CREDIT IMPAIRED LOANS
ACQUIRED CREDIT IMPAIRED LOANS | 12 Months Ended |
Dec. 31, 2021 | |
Acquired Credit Impaired Loans [Abstract] | |
ACQUIRED CREDIT IMPAIRED LOANS | ACQUIRED CREDIT IMPAIRED LOANS The following table provides, as of December 31, the major classifications of loans acquired that are accounted for in accordance with FASB ASC 310-30 (in thousands): 2021 2020 Acquired from First Capital Bancshares, Inc. Commercial & industrial $ 1 1 Commercial, secured by real estate — — Residential real estate 398 449 Other loans, including deposit overdrafts — — Total $ 399 450 Acquired from Eaton National Bank & Trust Co. Commercial & industrial $ — 249 Commercial, secured by real estate 310 601 Residential real estate 463 595 Other loans, including deposit overdrafts — 184 Total $ 773 1,629 Acquired from BNB Bancorp, Inc. Commercial & industrial $ — — Commercial, secured by real estate 688 780 Residential real estate 51 85 Other loans, including deposit overdrafts — — Total $ 739 865 Acquired from Columbus First Bancorp, Inc. Commercial & industrial $ 87 112 Commercial, secured by real estate 614 667 Residential real estate 251 1,177 Other loans, including deposit overdrafts — — Total $ 952 1,956 Total Commercial & industrial $ 88 362 Commercial, secured by real estate 1,612 2,048 Residential real estate 1,163 2,306 Other loans, including deposit overdrafts — 184 Total $ 2,863 4,900 The following table provides the outstanding balance and related carrying amount for acquired impaired loans at December 31 (in thousands): 2021 2020 Outstanding balance $ 3,769 6,128 Carrying amount 2,863 4,900 Activity during 2021 and 2020 for the accretable discount related to acquired impaired loans is as follows (in thousands): 2021 2020 Accretable discount, beginning of year $ 182 480 Reclass from nonaccretable discount to accretable discount 266 401 Less accretion (332) (699) Accretable discount, end of year $ 116 182 |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
OTHER REAL ESTATE OWNED | OTHER REAL ESTATE OWNED Other real estate owned includes property acquired through foreclosure or deed-in-lieu of foreclosure and are included in other assets in the Consolidated Balance Sheets. Changes in other real estate owned were as follows (in thousands): 2021 2020 Balance, beginning of year $ — 197 Reductions due to sales — (197) Balance, end of year $ — — The total recorded investment in residential consumer mortgage loans secured by residential real estate that was in the process of foreclosure at December 31, 2021 was $58,000. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment at December 31 are summarized as follows (in thousands): 2021 2020 Land $ 8,512 7,933 Buildings 31,296 30,789 Equipment 17,272 16,431 Construction in progress 4,100 4,421 Total 61,180 59,574 Less accumulated depreciation 25,795 24,198 Premises and equipment, net $ 35,385 35,376 Depreciation charged to expense was $1,931,000 in 2021, $1,834,000 in 2020, and $1,770,000 in 2019. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases | LEASES LCNB has capitalized operating leases for its Union Village, Barron Street, and Worthington offices, for the land at its Oxford and Oakwood offices, for certain office equipment, and for its ATMs. The Oakwood lease has a remaining term of fifteen years with options to renew for six additional periods of five years each. The Oxford lease has a remaining term of thirty-eight years with no renewal options. The other leases have remaining terms of less than one year up to nine years, some of which contain options to renew the leases for additional five years periods. Right-of-use assets represent LCNB's right to use the underlying assets for their lease terms and lease liabilities represent the obligation to make lease payments. They are recognized using the present value of lease payments over the lease terms. The discount rate is LCNB's incremental borrowing rate for periods similar to the respective lease terms. LCNB management is reasonably certain that it will exercise the renewal options for the offices named above and these additional terms have been included in the calculation of the right-of-use assets and the lease liabilities. The lease for the Fairfield office is for a period of one year and LCNB management has elected the short-term measurement and recognition exception permitted by ASC 842 and has not calculated a right-of-use asset or lease liability for this office. Lease expenses for offices are included in the Consolidated Statements of Income in occupancy expense, net and lease expenses for equipment and ATMs are included in equipment expenses. Components of lease expense for the years ended December 31 are as follows (in thousands): 2021 2020 Operating lease expense $ 840 666 Short-term lease expense 48 48 Variable lease expense 4 10 Other 10 7 Total lease expense $ 902 731 Other information related to leases at December 31, 2021 were as follows (dollars in thousands): Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 757 Right-of-use assets obtained in exchange for new operating lease liabilities $ 801 Weighted average remaining lease term in years for operating leases 32.9 Weighted average discount rate for operating leases 3.4 % Future payments due under operating leases as of December 31, 2021 are as follows (in thousands): 2022 $ 598 2023 574 2024 577 2025 398 2026 256 Thereafter 10,226 12,629 Less effects of discounting 6,156 Operating lease liabilities recognized $ 6,473 Rental expense for all leased branches and equipment was approximately $902,000 in 2021, $731,000 in 2020, and $627,000 in 2019. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 (in thousands): 2021 2020 Balance, beginning of year $ 59,221 59,221 Additions from acquisitions — — Balance, end of year $ 59,221 59,221 LCNB performs an impairment test of the carrying value of goodwill annually in the fourth quarter or sooner if circumstances indicate a possible impairment. Impairment indicators that may be considered include the condition of the economy and banking industry; estimated future cash flows; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting unit; performance of LCNB’s stock and other relevant events. These and other factors could lead to a conclusion that goodwill is impaired, which would require LCNB to write off the difference between the estimated fair value of the company and the carrying value. Given the current economic environment resulting from the COVID-19 pandemic, the probability of such impairments has increased. Specifically, the market price of LCNB's common stock decreased, similar to decreases experienced by other financial institutions. Accordingly, an interim impairment test was conducted as of June 30, 2020. At the conclusion of the assessment, management determined that fair value exceeded carrying value and that an impairment charge was not necessary at that time. Management will continue to monitor developments regarding the COVID-19 pandemic and measures implemented in response to the pandemic, market capitalization, overall economic conditions and any other triggering events or circumstances that may indicate an impairment of goodwill in the future. Other intangible assets in the Consolidated Balance Sheets at December 31 were as follows (in thousands): 2021 2020 Gross Accumulated Net Gross Accumulated Net Core deposit intangibles $ 8,544 7,110 1,434 8,544 6,067 2,477 Mortgage servicing rights 2,323 1,284 1,039 1,938 962 976 Total $ 10,867 8,394 2,473 10,482 7,029 3,453 The estimated aggregate future amortization expense for each of the next five years for intangible assets remaining as of December 31, 2021 is as follows (in thousands): 2022 $ 597 2023 544 2024 422 2025 222 2026 46 |
AFFORDABLE HOUSING TAX CREDIT L
AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP | AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIPS LCNB is a limited partner in limited partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (LIHTC) pursuant to Section 42 of the Internal Revenue Code. The purpose of the investments is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants. The following table presents the balances of LCNB's affordable housing tax credit investment and related unfunded commitment at December 31 (in thousands): 2021 2020 Affordable housing tax credit investment $ 14,950 12,000 Less amortization 2,126 1,320 Net affordable housing tax credit investment $ 12,824 10,680 Unfunded commitment $ 8,655 8,237 The net affordable housing tax credit investment is included in other assets and the unfunded commitment is included in accrued interest and other liabilities in the Consolidated Balance Sheets. LCNB expects to fund the unfunded commitment over thirteen years. The following table presents other information relating to LCNB's affordable housing tax credit investment for the years indicated (in thousands): Year ended December 31, 2021 2020 2019 Tax credits and other tax benefits recognized $ 995 612 387 Tax credit amortization expense included in provision for income taxes 806 510 318 |
CERTIFICATES OF DEPOSIT
CERTIFICATES OF DEPOSIT | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
CERTIFICATES OF DEPOSIT | TIME DEPOSITS Contractual maturities of time deposits at December 31, 2021 were as follows (in thousands): 2022 $ 121,807 2023 43,286 2024 4,484 2025 7,956 2026 9,045 Thereafter 6,864 $ 193,442 The aggregate amount of time deposits in denominations of $250,000 or more at December 31, 2021 and 2020 was $25,123,000 and $35,584,000, respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Funds borrowed from the FHLB at December 31 by year of maturity were as follows (dollars in thousands): 2021 2020 Outstanding Balance Average Rate Outstanding Balance Average Rate Maturing within one year 5,000 2.97 % 12,000 2.42 % Maturing one year through two years 5,000 3.02 % 5,000 2.97 % Maturing two years through three years — — % 5,000 3.02 % Total $ 10,000 3.00 % $ 22,000 2.68 % All advances from the FHLB are secured by a blanket pledge of the Company’s 1-4 family first lien mortgage loans in the amount of approximately $303 million and $276 million at December 31, 2021 and 2020, respectively. Total remaining borrowing capacity, including short-term borrowing arrangements, at December 31, 2021 was approximately $186.6 million. At December 31, 2021, the Company had short-term borrowing arrangements with two financial institutions and the FHLB of Cincinnati. The first arrangement is a short-term line of credit for a maximum amount of $25 million at the interest rate in effect at the time of the borrowing. The second arrangement is a short-term line of credit for a maximum amount of $30 million at an interest rate equal to the lending institution’s federal funds rate plus a spread of 50 basis points. There were no outstanding short-term borrowings as of December 31, 2021 or 2020. Under the terms of a REPO Based Advance program with the FHLB, the Company can borrow up to $81.8 million in short-term advances, subject to total remaining borrowing capacity limitations. The Company can select terms ranging from one day to one year. The interest rate is the published rate in effect at the time of the advance. This agreement expired on February 11, 2022 and was renewed for another year. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for federal income taxes consists of (in thousands): 2021 2020 2019 Income taxes currently payable $ 4,317 3,951 3,694 Deferred income tax provision 294 134 419 Provision for income taxes $ 4,611 4,085 4,113 A reconciliation between the statutory income tax and the Company's effective tax rate follows: 2021 2020 2019 Statutory tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from - Tax exempt interest (0.7) % (0.9) % (1.4) % Tax exempt income on bank owned life insurance (0.9) % (1.3) % (0.9) % Captive insurance premium income (0.8) % (0.8) % (0.8) % Tax benefit from certain provisions of the CARES Act — % (0.8) % — % Other – net (0.6) % (0.3) % — % Effective tax rate 18.0 % 16.9 % 17.9 % Deferred tax assets and liabilities, included in the Consolidated Balance Sheets with accrued interest and other liabilities in 2021 and 2020, consist of the following at December 31 (in thousands): 2021 2020 Deferred tax assets: Allowance for loan losses $ 1,156 1,203 Net unrealized losses on investment securities available-for-sale 408 — Fair value adjustment on loans acquired from mergers 103 196 Deferred compensation 630 667 Minimum pension liability 73 81 Operating lease right-of-use assets 1,359 1,338 Other 96 245 3,825 3,730 Deferred tax liabilities: Depreciation of premises and equipment (1,595) (1,673) Net unrealized gains on investment securities available-for-sale — (1,156) Amortization of intangibles (1,518) (1,512) Prepaid expenses (323) (283) FHLB stock dividends (216) (216) Operating lease liabilities (1,359) (1,338) (5,011) (6,178) Net deferred tax liabilities $ (1,186) (2,448) As of December 31, 2021 and 2020 there were no unrecognized tax benefits and the Company does not anticipate the total amount of unrecognized tax benefits will significantly change within the next twelve months. There were no amounts recognized for interest and penalties in the Consolidated Statements of Income for the three-year period ended December 31, 2021. The Company is no longer subject to examination by federal tax authorities for years before 2018. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES LCNB 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. They involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the 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 is represented by the contract amount of those instruments. The Bounce Protection product, a customer deposit overdraft program, is offered as a service and does not constitute a contract between the customer and LCNB. LCNB uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Financial instruments whose contract amounts represent off-balance-sheet credit risk at December 31 were as follows (in thousands): 2021 2020 Commitments to extend credit: Commercial loans $ 82,578 24,581 Other loans: Fixed rate 5,196 14,668 Adjustable rate 2,784 4,386 Unused lines of credit: Fixed rate 32,655 24,205 Adjustable rate 150,746 133,073 Unused overdraft protection amounts on demand and NOW accounts 16,711 16,471 Standby letters of credit 5 243 $ 290,675 217,627 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 or agreement. Unused lines of credit include amounts not drawn on line of credit loans. Commitments to extend credit and unused lines of credit generally have fixed expiration dates or other termination clauses. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees generally are fully secured and have varying maturities. 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, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable; inventory; property, plant and equipment; residential realty; and income-producing commercial properties. Capital expenditures include: the construction or acquisition of new office buildings; improvements to LCNB's offices; purchases of furniture and equipment; and additions or improvements to LCNB's information technology system. Commitments outstanding for capital expenditures as of December 31, 2021 were not material. The Company and the Bank are parties to various claims and proceedings arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such proceedings and claims will not be material to LCNB's consolidated financial position or results of operations. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Assets and Liabilities, Other Disclosures [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS AND IMPACT ON PAYMENT OF DIVIDENDS The Federal Reserve Act requires depository institutions to maintain cash reserves with the Federal Reserve Bank. In 2021 and 2020, the Bank maintained average reserve balances of $15,121,000 and $20,907,000, respectively. The reserve balances at December 31, 2021 and 2020 were $2,482,000 and $16,153,000, respectively. The principal source of income and funds for LCNB Corp. is dividends paid by the Bank. The payment of dividends is subject to restriction by regulatory authorities. For 2022, the restrictions generally limit dividends to the aggregate of net income for the year 2022 plus the net earnings retained for 2021 and 2020. In addition, dividend payments may not reduce capital levels below minimum regulatory guidelines. At December 31, 2021, approximately $16,145,000 of the Bank’s earnings retained was available for dividends in 2022 under this guideline. Dividends in excess of these limitations would require the prior approval of the Comptroller of the Currency. The Bank must meet certain minimum capital requirements set by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company's and Bank's financial statements. The Bank’s capital amounts and classification are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. In addition to the minimum capital requirements, a financial institution needs to maintain a Capital Conservation Buffer composed of Common Equity Tier 1 Capital of at least 2.5% above its minimum risk-weighted capital requirements to avoid limitations on its ability to make capital distributions, including dividend payments to shareholders and certain discretionary bonus payments to executive officers. A financial institution with a buffer below 2.5% will be subject to increasingly stringent limitations on capital distributions as the buffer approaches zero. For various regulatory purposes, financial institutions are classified into categories based upon capital adequacy: Minimum Minimum Requirement with Capital Conservation Buffer To Be Considered Ratio of Common Equity Tier 1 Capital to risk-weighted assets 4.5 % 7.0 % 6.5 % Ratio of tier 1 capital to risk-weighted assets 6.0 % 8.5 % 8.0 % Ratio of total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets 8.0 % 10.5 % 10.0 % Leverage ratio (tier 1 capital to adjusted quarterly average total assets) 4.0 % N/A 5.0 % As of the most recent notification from its regulators, the Bank was categorized as "well-capitalized" under the regulatory framework for prompt corrective action. Management believes that no conditions or events have occurred since the last notification that would change the Bank's category. On September 17, 2019, the FDIC finalized a rule that introduced an optional simplified measure of capital adequacy for qualifying community banking organizations, as required by the Economic Growth, Regulatory Relief and Consumer Protection Act. The simplified rule was designed to reduce burden by removing the requirements for calculating and reporting risk-based capital ratios for qualifying community banking organizations that opt into the framework. It could be used beginning with the March 31, 2020 Call Report. Qualifications to use the simplified approach include having a tier 1 leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities. A qualifying community banking organization that opts into the framework and meets all requirements under the framework will be considered to have met the well-capitalized ratio requirements under the Prompt Corrective Action regulations and will not be required to report or calculate risk-based capital. LCNB qualifies to use the simplified measure, but did not opt in for the December 31, 2021 or 2020 regulatory capital calculations. A summary of the regulatory capital of the Bank at December 31 follows (dollars in thousands): 2021 2020 Regulatory Capital: Shareholders' equity $ 234,451 234,092 Goodwill and other intangible assets (60,655) (61,698) Accumulated other comprehensive (income) loss 1,809 (4,043) Tier 1 risk-based capital 175,605 168,351 Eligible allowance for loan losses 5,506 5,728 Total risk-based capital $ 181,111 174,079 Capital Ratios: Common Equity Tier 1 Capital to risk-weighted assets 12.25 % 12.48 % Tier 1 capital to risk-weighted assets 12.25 % 12.48 % Total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets 12.64 % 12.91 % Leverage ratio (tier 1 capital to adjusted quarterly average total assets) 9.58 % 10.06 % |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) for 2021 and 2020 were as follows (in thousands): 2021 2020 Unrealized Gains and Losses on Available-for-Sale Securities Changes in Pension Plan Assets and Benefit Obligations Total Unrealized Gains and Losses on Available-for-Sale Securities Changes in Pension Plan Assets and Benefit Obligations Total Balance at beginning of year $ 4,348 (305) 4,043 857 (184) 673 Before reclassifications (5,645) 32 (5,613) 3,666 (121) 3,545 Reclassifications (239) — (239) (175) — (175) Balance at end of year $ (1,536) (273) (1,809) 4,348 (305) 4,043 Reclassifications out of accumulated other comprehensive income (loss) during 2021 and 2020 and the affected line items in the Consolidated Statements of Income were as follows (in thousands): 2021 2020 Affected Line Item in the Consolidated Statements of Income Net gains (losses) on sales of debt securities $ 303 221 Net gains (losses) on sales of debt securities Less provision (benefit) for income taxes 64 46 Provision for income taxes Reclassification adjustment, net of taxes $ 239 175 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK-BASED COMPENSATION LCNB established an Ownership Incentive Plan (the "2002 Plan") during 2002 that allowed for stock-based awards to eligible employees, as determined by the Board of Directors. The awards were in the form of stock options, share awards, and/or appreciation rights. The 2002 Plan provided for the issuance of up to 200,000 shares. The 2002 Plan expired on April 16, 2012. Any outstanding unexercised options, however, continued to be exercisable in accordance with their terms and the last of the options were exercised during 2021. The 2015 Ownership Incentive Plan (the "2015 Plan") was approved by LCNB's shareholders at the annual meeting on April 28, 2015 and allows for stock-based awards to eligible employees, as determined by the Compensation Committee of LCNB's Board of Directors ("Compensation Committee"). Awards may be made in the form of stock options, appreciation rights, restricted shares, and/or restricted share units. The 2015 Plan provides for the issuance of up to 450,000 shares of common stock. The 2015 Plan will terminate on April 28, 2025 and is subject to earlier termination by the Compensation Committee. Stock-based awards may be in the form of treasury shares or newly issued shares. LCNB has not granted stock options since 2012. The following table summarizes stock option activity for the years indicated: 2021 2020 2019 Weighted Aggregate Intrinsic Value (in thousands) (1) Options Weighted Aggregate Intrinsic Value (in thousands) (1) Weighted Aggregate Intrinsic Value (in thousands) (1) Outstanding at January 1, 311 $ 12.60 9,904 $ 11.96 13,278 $ 11.98 Exercised (311) 12.60 (9,593) 11.94 (3,374) 12.05 Expired — — — — — — Outstanding at December 31, — $ — $ — 311 $ 12.60 $ — 9,904 $ 11.96 $ 73 Exercisable at December 31, — $ — $ — 311 $ 12.60 $ — 9,904 $ 11.96 $ 73 (1) Aggregate Intrinsic Value is defined as the amount by which the current market value of the underlying stock exceeds the exercise price of the option. The following table provides information related to stock options exercised during the years indicated (in thousands): 2021 2020 2019 Intrinsic value of options exercised $ 1 46 20 Cash received from options exercised 4 114 41 Tax benefit realized from options exercised — 5 3 Compensation costs related to option awards were recognized in full during the first quarter 2017. Restricted stock awards granted under the 2015 Plan were as follows: 2021 2020 2019 Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 28,596 $ 17.42 17,752 $ 18.03 16,958 $ 18.94 Granted 26,321 16.85 19,211 16.87 12,504 16.95 Vested (9,649) 17.49 (4,817) 17.83 (11,710) 18.19 Forfeited (756) 16.86 (3,550) 16.9 — — Outstanding at December 31, 44,512 $ 17.08 28,596 $ 17.42 17,752 $ 18.03 Total expense related to restricted stock awards included in salaries and wages in the Consolidated Statements of Income for the years ended December 31, 2021, 2020, and 2019 was $249,000, $137,000, and $134,000 respectively. The related tax benefit for the years ended December 31, 2021, 2020, and 2019 was $52,000, $29,000, and $28,000, respectively. Unrecognized compensation expense for restricted stock awards was $605,000 at December 31, 2021 and is expected to be recognized over a period of 4.2 years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE LCNB has granted restricted stock awards with non-forfeitable dividend rights, which are considered participating securities. Accordingly, earnings per share is computed using the two-class method as required by FASB ASC 260-10-45. Basic earnings per common share is calculated by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period, which excludes the participating securities. Diluted earnings per common share is adjusted for the dilutive effects of stock options, warrants, and restricted stock. The diluted average number of common shares outstanding has been increased for the assumed exercise of stock options with proceeds used to purchase treasury shares at the average market price for the period. Earnings per share for the years ended December 31 were calculated as follows (in thousands, except share and per share data): 2021 2020 2019 Net income $ 20,974 20,075 18,912 Less allocation of earnings and dividends to participating securities 75 45 31 Net income allocated to common shareholders $ 20,899 20,030 18,881 Weighted average common shares outstanding, gross 12,635,013 12,943,622 13,100,161 Less average participating securities 45,408 29,345 21,241 Weighted average number of shares outstanding used in the calculation of basic earnings per common share 12,589,605 12,914,277 13,078,920 Add dilutive effect of: Stock options 8 307 3,973 Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share 12,589,613 12,914,584 13,082,893 Earnings per common share: Basic $ 1.66 1.55 1.44 Diluted 1.66 1.55 1.44 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS LCNB has entered into related party transactions with various directors and executive officers. Management believes these transactions do not involve more than a normal risk of collectability or present other unfavorable features. The following table provides a summary of the loan activity for these officers and directors for the years ended December 31 (in thousands): 2021 2020 Beginning balance $ 2,929 2,380 New loans and advances 250 1,139 Change in composition of related parties (413) — Reductions (641) (590) Ending Balance $ 2,125 2,929 Deposits from executive officers, directors and related interests of such persons held by the Company at December 31, 2021 and 2020 amounted to $3,373,000 and $3,526,000, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS LCNB measures certain assets at fair value using various valuation techniques and assumptions, depending on the nature of the asset. Fair value is defined as the price that would be received from the sale of an asset in an orderly transaction between market participants at the measurement date. The inputs to the valuation techniques used to measure fair value are assigned to one of three broad levels: • Level 1 – quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the reporting date. • Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly. Level 2 inputs may include quoted prices for similar assets in active markets, quoted prices for identical assets or liabilities in markets that are not active, inputs other than quoted prices (such as interest rates or yield curves) that are observable for the asset or liability, and inputs that are derived from or corroborated by observable market data. • Level 3 – inputs that are unobservable for the asset or liability. Equity Securities with a Readily Determinable Fair Value Equity securities with a readily determinable fair value are reported at fair value with changes in fair value reported in other operating income in the Consolidated Statements of Income. Fair values for equity securities are determined based on market quotations (level 1). LCNB has invested in two mutual funds that are traded in active markets and their fair values are based on market quotations (level 1). Investments in another two mutual funds are measured at fair value using net asset values ("NAV") and are considered level 1 because the NAVs are determined and published and are the basis for current transactions. Debt Securities, Available-for-Sale The majority of LCNB's financial debt securities are classified as available-for-sale. The securities are reported at fair value with unrealized holding gains and losses reported net of income taxes in accumulated other comprehensive income (loss). LCNB utilizes a pricing service for determining the fair values of its debt securities. Methods and significant assumptions used to estimate fair value are as follows: • Fair value for U.S. Treasury notes are determined based on market quotations (level 1). • Fair values for the other debt securities are calculated using the discounted cash flow method for each security. The discount rates for these cash flows are estimated by the pricing service using rates observed in the market (level 2). Cash flow streams are dependent on estimated prepayment speeds and the overall structure of the securities given existing market conditions. Assets Recorded at Fair Value on a Nonrecurring Basis Assets that may be recorded at fair value on a nonrecurring basis include impaired loans. A loan is considered impaired when management believes it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. Impaired loans are carried at the present value of estimated future cash flows using the loan's existing rate or the fair value of collateral if the loan is collateral dependent, if this value is less than the loan balance. These inputs are considered to be level 3. Other real estate owned is adjusted to fair value, less costs to sell, upon transfer of the loan to foreclosed assets, usually based on an appraisal of the property. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Other repossessed assets are valued at estimated sales prices, less costs to sell. The inputs for real estate owned and other repossessed assets are considered to be level 3. The following table summarizes the valuation of LCNB’s assets recorded at fair value by input levels as of December 31 (in thousands): Fair Value Measurements at the End of Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 2021 Recurring fair value measurements: Equity securities with a readily determinable fair value: Equity securities $ 1,167 1,167 — — Mutual funds 51 51 — — Mutual funds measured at net asset value 1,328 1,328 — — Debt securities available-for-sale: U.S. Treasury notes 74,744 74,744 — — U.S. Agency notes 87,246 — 87,246 — Corporate bonds 5,152 — 5,152 — U.S. Agency mortgage-backed securities 96,676 — 96,676 — Municipal securities: Non-taxable 9,066 — 9,066 — Taxable 35,293 — 35,293 — Total recurring fair value measurements $ 310,723 77,290 233,433 — Nonrecurring fair value measurements: Impaired loans $ 1,011 — — 1,011 Total nonrecurring fair value measurements $ 1,011 — — 1,011 2020 Recurring fair value measurement: Equity securities with a readily determinable fair value: Equity securities $ 987 987 — — Mutual funds 50 50 — — Mutual funds measured at net asset value 1,352 1,352 — — Debt securities available-for-sale: U.S. Treasury notes 2,388 2,388 — — U.S. Agency notes 67,900 — 67,900 — Corporate bonds 1,179 — 1,179 — U.S. Agency mortgage-backed securities 91,634 — 91,634 — Municipal securities: Non-taxable 12,933 — 12,933 — Taxable 33,437 — 33,437 — Total recurring fair value measurements $ 211,860 4,777 207,083 — Nonrecurring fair value measurements: Impaired loans $ 3,439 — — 3,439 Total nonrecurring fair value measurements $ 3,439 — — 3,439 The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at December 31, 2021 and 2020 (dollars in thousands): Range Fair Value Valuation Technique Unobservable Inputs High Low Weighted Average 2021 Impaired loans $ — Estimated sales price Adjustments for comparable properties, discounts to reflect current market conditions Not applicable 1,011 Discounted cash flows Discount rate 8.25 % 4.00 % 6.07 % 2020 Impaired loans $ 1,352 Estimated sales price Adjustments for comparable properties, discounts to reflect current market conditions Not applicable 2,087 Discounted cash flows Discount rate 8.25 % 4.00 % 4.74 % Carrying amounts and estimated fair values of financial instruments as of December 31 were as follows (in thousands): Fair Value Measurements at the End of Carrying Fair Quoted Significant Other Significant 2021 FINANCIAL ASSETS: Cash and cash equivalents $ 18,136 18,136 18,136 — — Debt securities, held-to-maturity 22,972 23,087 — — 23,087 Federal Reserve Bank stock 4,652 4,652 4,652 — — Federal Home Loan Bank stock 5,203 5,203 5,203 — — Loans, net 1,363,939 1,333,840 — — 1,333,840 Accrued interest receivable 7,999 7,999 — 7,999 — FINANCIAL LIABILITIES: Deposits 1,628,819 1,630,158 1,435,487 194,671 — Long-term debt 10,000 10,292 — 10,292 — Accrued interest payable 277 277 — 277 — 2020 FINANCIAL ASSETS: Cash and cash equivalents $ 31,730 31,730 31,730 — — Debt securities, held-to-maturity 24,810 24,960 — — 24,960 Federal Reserve Bank stock 4,652 4,652 4,652 — — Federal Home Loan Bank stock 5,203 5,203 5,203 — — Loans, net 1,293,693 1,252,642 — — 1,252,642 Accrued interest receivable 8,337 8,337 — 8,337 — FINANCIAL LIABILITIES: Deposits 1,455,423 1,458,413 1,212,903 245,510 — Long-term debt 22,000 22,595 — 22,595 — Accrued interest payable 452 452 — 452 — The fair values of off-balance-sheet financial instruments such as loan commitments and letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements. The fair values of such instruments were not material at December 31, 2021 and 2020. Fair values of financial instruments are based on various assumptions, including the discount rate and estimates of future cash flows. Therefore, the fair values presented may not represent amounts that could be realized in actual transactions. In addition, because the required disclosures exclude certain financial instruments and all nonfinancial instruments, any aggregation of the fair value amounts presented would not represent the underlying value of the Company. . |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | PARENT COMPANY FINANCIAL INFORMATION Condensed financial information for LCNB Corp., parent company only, follows (in thousands): Condensed Balance Sheets: December 31, 2021 2020 Assets: Cash on deposit with subsidiary $ 657 3,648 Cash on deposit with unrelated depository institution 451 175 Equity securities, at fair value 1,156 1,001 Investment in subsidiaries 236,401 235,857 Other assets 180 164 Total assets $ 238,845 240,845 Liabilities $ 241 20 Shareholders' equity 238,604 240,825 Total liabilities and shareholders' equity $ 238,845 240,845 Condensed Statements of Income Year ended December 31, 2021 2020 2019 Income: Dividends from subsidiaries $ 15,820 12,070 18,300 Interest and dividends 34 29 31 Other income 155 147 215 Total income 16,009 12,246 18,546 Total expenses 1,764 1,326 1,369 Income before income tax expense/benefit and equity in undistributed income of subsidiaries 14,245 10,920 17,177 Income tax benefit (333) (404) (222) Equity in undistributed income of subsidiaries 6,396 8,751 1,513 Net income $ 20,974 20,075 18,912 Condensed Statements of Cash Flows Year ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income $ 20,974 20,075 18,912 Adjustments for non-cash items - Increase in undistributed income of subsidiaries (6,396) (8,751) (1,513) Other, net 299 (88) 476 Net cash flows provided by operating activities 14,877 11,236 17,875 Cash flows from investing activities: Purchases of equity securities — (346) (337) Proceeds from sales of equity securities — 463 397 Net cash flows provided by (used in) investing activities — 117 60 Cash flows from financing activities: Proceeds from issuance of common stock 434 401 446 Payments to repurchase common stock (8,310) (1,872) (6,834) Cash dividends paid on common stock (9,720) (9,448) (9,028) Other 4 114 41 Net cash flows used in financing activities (17,592) (10,805) (15,375) Net change in cash (2,715) 548 2,560 Cash at beginning of year 3,823 3,275 715 Cash at end of year $ 1,108 3,823 3,275 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions are eliminated in consolidation. The accounting and reporting policies of the Company conform with U.S. generally accepted accounting principles and with general practices in the banking industry. Certain prior period data presented in the consolidated financial statements have been reclassified to conform with the current year presentation. These reclassifications had no effect on net income or shareholders' equity. |
USE OF ESTIMATES | USE OF ESTIMATESThe preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles 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. Actual results could differ from those estimates. Estimates that management has determined to be critical accounting estimates are more fully described in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Form 10-K. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS For purposes of reporting cash flows, cash and cash equivalents include cash, balances due from banks, federal funds sold, and interest-bearing demand deposits with original maturities of twelve months or less. Deposits with other banks routinely have balances greater than FDIC insured limits. Management considers the risk of loss to be very low with respect to such deposits. |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Certain municipal debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Debt securities not classified as held-to-maturity are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income, a separate component of shareholders’ equity. Amortization of premiums and accretion of discounts are recognized as adjustments to interest income using the level-yield method. Realized gains or losses from the sale of securities are recorded on the trade date and are computed using the specific identification method. Declines in the fair value of debt securities below their cost that are deemed to be other-than-temporarily impaired, and for which the Company does not intend to sell the securities and it is not more likely than not that the securities will be sold before the anticipated recovery of the impairment, are separated into losses related to credit factors and losses related to other factors. The losses related to credit factors are recognized in earnings and losses related to other factors are recognized in other comprehensive income. In estimating other than temporary impairment losses, management considers the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Management determined that no such impairment adjustment was required to be made in the Company's Consolidated Statements of Income as of December 31, 2021, 2020, and 2019. Equity securities with a readily determinable fair value are measured at fair value with changes in fair value recognized in net income. Federal Home Loan Bank ("FHLB") stock is an equity interest in the Federal Home Loan Bank of Cincinnati. It can be sold only at its par value of $100 per share and only to the FHLB or to another member institution. In addition, the equity ownership rights are more limited than would be the case for a public company because of the oversight role exercised by the Federal Housing Finance Agency in the process of budgeting and approving dividends. Federal Reserve Bank stock is similarly restricted in marketability and value. Both investments are carried at cost, which is their par value. FHLB and Federal Reserve Bank stock are both subject to minimum ownership requirements by member banks. The required investments in common stock are based on predetermined formulas. |
LOANS | LOANS The Company’s loan portfolio includes most types of commercial and industrial loans, commercial loans secured by real estate, residential real estate loans, consumer loans, agricultural loans and other types of loans. Most of the properties collateralizing the loan portfolio are located within the Company’s market area. Loans are stated at the principal amount outstanding, net of unearned income, deferred origination fees and costs, and the allowance for loan losses. Interest income is accrued on the unpaid principal balance. The delinquency status of a loan is based on contractual terms and not on how recently payments have been received. Generally, a loan is placed on non-accrual status when it is classified as impaired or there is an indication that the borrower’s cash flow may not be sufficient to make payments as they come due, unless the loan is well secured and in the process of collection. Subsequent cash receipts on non-accrual loans are recorded as a reduction of principal and interest income is recorded once principal recovery is reasonably assured. The current year's accrued interest on loans placed on non-accrual status is charged against earnings. Previous years' accrued interest is charged against the allowance for loan losses. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer a reasonable doubt as to the timely collection of interest or principal. Loan origination fees and certain direct loan origination costs are deferred and the net amount amortized as an adjustment of loan yields. These amounts are being amortized over the lives of the related loans. In the ordinary course of business, the Company enters into off-balance sheet financial instruments consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. Loans acquired from mergers are recorded at fair value with no carryover of the acquired entity's previously established allowance for loan losses. The excess of expected cash flows over the estimated fair value of acquired loans is recognized as interest income over the remaining contractual lives of the loans using the level yield method. Subsequent decreases in expected cash flows will require additions to the allowance for loan losses. Subsequent improvements in expected cash flows result in the recognition of additional interest income over the then-remaining contractual lives of the loans. Management estimates the cash flows expected to be collected at acquisition using a third-party risk model, which incorporates the estimate of key assumptions, such as default rates, severity, and prepayment speeds. Impaired loans acquired are accounted for under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") No. 310-30. Factors considered in evaluating whether an acquired loan was impaired include delinquency status and history, updated borrower credit status, collateral information, and current loan-to-value information. The difference between contractually required payments at the time of acquisition and the cash flows expected to be collected is referred to as the nonaccretable difference. The interest component of the cash flows expected to be collected is referred to as the accretable yield and is recognized as interest income over the remaining contractual life of the loan using the level yield method. Subsequent decreases in expected cash flows will require additions to the allowance for loan losses. Subsequent improvements in expected cash flows will result in a reclassification from the nonaccretable difference to the accretable yield. |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Consumer loans are charged off when they reach 120 days past due. Subsequent recoveries, if any, are credited to the allowance. The provision for loan losses is determined by management based upon its evaluation of the amount needed to maintain the allowance for loan losses at a level considered appropriate in relation to the estimated risk of losses inherent in the portfolio. Current methodology used by management to estimate the allowance takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, historic categorical trends, current delinquency levels as related to historical levels, portfolio growth rates, changes in composition of the portfolio, the current economic environment, as well as current allowance adequacy in relation to the portfolio. Management is cognizant that reliance on historical information coupled with the cyclical nature of the economy, including credit cycles, affects the allowance. Management considers all of these factors prior to making any adjustments to the allowance due to the subjectivity and imprecision involved in allocation methodology. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are specifically reviewed for impairment. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers loans not specifically reviewed for impairment and homogeneous loan pools, such as residential real estate and consumer loans. The general component is measured for each loan category separately based on each category’s average of historical loss experience over a trailing sixty month period, adjusted for qualitative factors. Such qualitative factors may include current economic conditions if different from the five-year historical loss period, trends in underperforming loans, trends in volume and terms of loan categories, concentrations of credit, and trends in loan quality. A loan is considered impaired when management believes, based on current information and events, it is probable that the Bank will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. An impaired loan is measured by the present value of expected future cash flows using the loan's effective interest rate. An impaired collateral-dependent loan may be measured based on collateral value. Smaller-balance homogeneous loans, including residential mortgage and consumer installment loans, which are not evaluated individually are collectively evaluated for impairment. |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment are stated at cost less accumulated depreciation. Land is stated at cost. Depreciation is computed on both the straight-line and accelerated methods over the estimated useful lives of the assets, generally 15 to 40 years for premises and 3 to 10 years for equipment. Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Costs incurred for maintenance and repairs are expensed as incurred. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable. |
OTHER REAL ESTATE OWNED | OTHER REAL ESTATE OWNED Other real estate owned includes properties acquired through foreclosure. Such property is held for sale and is initially recorded at fair value, less costs to sell, establishing a new cost basis. Fair value is primarily based on a property appraisal obtained at the time of transfer and any periodic updates that may be obtained thereafter. The allowance for loan losses is charged for any write down of the loan’s carrying value to fair value at the date of transfer. Any subsequent reductions in fair value and expenses incurred from holding other real estate owned are charged to other non-interest expense. Costs, excluding interest, relating to the improvement of other real estate owned are capitalized. Gains and losses from the sale of other real estate owned are included in other non-interest expense. |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill is not amortized, but is instead subject to an annual review for impairment. A review for impairment may be conducted more frequently than annually if circumstances indicate a possible impairment. Impairment indicators that may be considered include the condition of the economy and banking industry; estimated future cash flows; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting unit; performance of LCNB’s stock, and other relevant events. These and other factors could lead to a conclusion that goodwill is impaired, which would require LCNB to write off the difference between the estimated fair value of the company and the carrying value. Mortgage servicing rights on originated mortgage loans that have been sold are initially recorded at their estimated fair values. Mortgage servicing rights are amortized to loan servicing income in proportion to and over the period of estimated servicing income. Such assets are periodically evaluated as to the recoverability of their carrying value. The Company’s other intangible assets relate to core deposits acquired from business combinations. These intangible assets are amortized on a straight-line basis over their estimated useful lives. Management evaluates whether events or circumstances have occurred that indicate the remaining useful life or carrying value of the amortizing intangible should be revised. |
BANK OWNED LIFE INSURANCE | BANK OWNED LIFE INSURANCE The Company has purchased life insurance policies on certain officers of the Company. The Company is the beneficiary of these policies and has recorded the estimated cash surrender value in the Consolidated Balance Sheets. Income on the policies, based on the increase in cash surrender value and any incremental death benefits, is included in non-interest income in the Consolidated Statements of Income. |
AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP | AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP LCNB has elected to account for its investment in an affordable housing tax credit limited partnership using the proportional amortization method described in "ASU 2014-01, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (A Consensus of the FASB Emerging Issues Task Force)." Under the proportional amortization method, an investor amortizes the initial cost of the investment to income tax expense in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The investment in the limited partnership is included in other assets and the unfunded amount is included in accrued interest and other liabilities in LCNB's Consolidated Balance Sheets. |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Accounting guidance establishes a fair value hierarchy to prioritize the inputs to valuation techniques used to measure fair value. A financial instrument’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three broad input levels are: • Level 1 – quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the reporting date; • Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly; and • Level 3 - inputs that are unobservable for the asset or liability. Accounting guidance permits, but does not require, companies to measure many financial instruments and certain other items, including loans and debt securities, at fair value. The decision to elect the fair value option is made individually for each instrument and is irrevocable once made. Changes in fair value for the selected instruments are recorded in earnings. The Company did not select any financial instruments for the fair value election in 2021 or 2020. |
ADVERTISING EXPENSE | ADVERTISING EXPENSE Advertising costs are expensed as incurred and are recorded as a marketing expense, a component of non-interest expense. |
PENSION PLANS | PENSION PLANS Eligible employees of the Company hired before 2009 participate in a multiple-employer qualified noncontributory defined benefit retirement plan. This plan is accounted for as a multi-employer plan because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Citizens National had a qualified noncontributory, defined benefit pension plan, which has been assumed by the Company, that covers eligible employees hired before May 1, 2005. This is a single employer plan. |
TREASURY STOCK | TREASURY STOCK Common shares repurchased are recorded at cost. Cost of shares retired or reissued is determined using the weighted average method. |
STOCK OPTIONS AND RESTRICTED STOCK AWARD PLANS | STOCK OPTIONS AND RESTRICTED STOCK AWARD PLANS The cost of employee services received in exchange for stock option grants is the grant-date fair value of the award estimated using an option-pricing model. The compensation cost for restricted stock awards is based on the market price of the Company's common stock at the date of grant multiplied by the number of shares granted that are expected to vest. The estimated cost is recognized on a straight-line basis over the period the employee is required to provide services in exchange for the award, usually the vesting period. The Company uses a Black-Scholes pricing model and related assumptions for estimating the fair value of stock option grants and a five-year vesting period for stock options and restricted stock. |
REVENUE RECOGNITION | REVENUE RECOGNITION FASB ASC No. 606, "Revenue from Contracts with Customers" ("ASC No. 606") provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance enumerates five steps that entities should follow in achieving this core principle. Revenue generated from financial instruments, including loans and investment securities, are not included in the scope of ASC No. 606. The adoption of ASC No. 606 did not result in a change to the accounting for any of LCNB's revenue streams that are within the scope of the amendments. Revenue-generating activities that are within the scope of ASC 606 and that are presented as non-interest income in LCNB's Consolidated Statements of Income include: • Fiduciary income - this includes periodic fees due from Wealth Management and Investment Services customers for managing the customers' financial assets. Fees are generally charged on a quarterly or annual basis and are recognized ratably throughout the period, as the services are provided on an ongoing basis. • Service charges and fees on deposit accounts - these include general service fees charged for deposit account maintenance and activity and transaction-based fees charged for certain services, such as debit card, wire transfer, or overdraft activities. Revenue is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services. |
INCOME TAXES | INCOME TAXES Deferred income taxes are determined using the asset and liability method of accounting. Under this method, the net deferred tax asset or liability is determined based on the tax effects of temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Management analyzes material tax positions taken in any income tax return for any tax jurisdiction and determines the likelihood of the positions being sustained in a tax examination. 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 is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share allocated to common shareholders is calculated using the two-class method and is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is adjusted for the dilutive effects of stock based compensation and is calculated using the two-class method or the treasury stock method. The diluted average number of common shares outstanding has been increased for the assumed exercise of stock based compensation with the proceeds used to purchase treasury shares at the average market price for the period. |
RECENT ACCOUNTING PRONOUNCEMENTS | ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ASU No. 2017-04 was issued in January 2017 and was adopted by LCNB as of January 1, 2020. It applies to public and other entities that have goodwill reported in their financial statements. To simplify the subsequent measurement of goodwill, this ASU eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Adoption of ASU No. 2017-04 did not have a material impact on LCNB's results of consolidated operations or financial position. ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" ASU No. 2018-13 was issued in August 2018 and was adopted by LCNB as of January 1, 2020. It applies to all entities that are required to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this update modify fair value disclosure requirements, including the deletion, modification, and addition of certain targeted disclosures. Adoption of ASU No. 2018-13 did not have a material impact on LCNB's results of consolidated operations or financial position. ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" ASU No. 2018-15 was issued in August 2018 and was adopted by LCNB on January 1, 2020. It applies to entities that are a customer in a hosting arrangement, as defined, that is accounted for as a service contract. The amendments in this update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Capitalized implementation costs are to be expensed over the term of the hosting arrangement. Adoption of ASU No. 2018-15 did not have a material impact on LCNB's results of consolidated operations or financial position. ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ASU No. 2020-04 was issued in March 2020 and provides optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying generally accepted accounting principles ("GAAP") to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. LCNB does not expect the guidance in ASU No. 2020-04 will have a material impact on its results of consolidated operations or financial position. ASU No. 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans" ASU No. 2018-14 was issued in August 2018 and was adopted by LCNB on January 1, 2021. The amendments in this update modify disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans, including the deletion, modification, and addition of certain targeted disclosures. The amendments are to be applied on a retrospective basis to all periods presented upon adoption. Adoption of ASU No. 2018-14 did not have a material impact on LCNB's results of consolidated operations or financial position. ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ASU No. 2019-12 was issued in December 2019 and adopted by LCNB on January 1, 2021. It simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifies and amends certain other guidance. Adoption of ASU No. 2019-12 did not have a material impact on LCNB's results of consolidated operations or financial position. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE From time to time the FASB issues an ASU to communicate changes to U.S. GAAP. The following information provides brief summaries of newly issued but not yet effective ASUs that could have an effect on LCNB’s financial position or results of consolidated operations: ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ASU No. 2016-13 was issued in June 2016 and, once effective, will significantly change current guidance for recognizing impairment of financial instruments. Current guidance requires an "incurred loss" methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. ASU No. 2016-13 replaces the incurred loss impairment methodology with a new current expected credit loss ("CECL") methodology that reflects expected credit losses over the lives of the loans and requires consideration of a broader range of information to inform credit loss estimates. The ASU requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. Additional disclosures are required. ASU No. 2016-13 also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Under the new guidance, entities will determine whether all or a portion of the unrealized loss on an available-for-sale debt security is a credit loss. Any credit loss will be recognized as an allowance for credit losses on available-for-sale debt securities rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. As a result, entities will recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings rather than as interest income over time, as currently required. ASU No. 2016-13 eliminates the current accounting model for purchased credit impaired loans and debt securities. Instead, purchased financial assets with credit deterioration will be recorded gross of estimated credit losses as of the date of acquisition and the estimated credit losses amounts will be added to the allowance for credit losses. Thereafter, entities will account for additional impairment of such purchased assets using the models listed above. Originally, ASU No. 2016-13 would have taken effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. At their meeting on October 16, 2019, FASB approved a final ASU delaying the effective date for several major standards, including ASU No. 2016-13, if certain qualifications are met. The new effective date for SEC filers eligible to be smaller reporting companies ("SRC"), as defined, will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. As an SRC, LCNB intends to adopt ASU No. 2016-13 for the fiscal year, and interim periods within the fiscal year, beginning after December 15, 2022. LCNB has created a cross-functional CECL Committee, which reports to the Audit Committee, composed of members from the lending, Wealth Management, and finance departments. During 2017, the CECL Committee selected a vendor to assist in implementation of and ongoing compliance with the new requirements. It has completed analyzing its data collection efforts, selected a calculation model, analyzed its pool segmentation and reporting mechanisms, and has finished back testing in preparation for adoption of the new methodology. While the committee and management expect that implementation of ASU No. 2016-13 will increase the balance of the allowance for loan losses, they continue to analyze modeling after studying the impacts that the most recent economic conditions presented due to the pandemic. As they adjust and finalize appropriate modeling, they are continuing to evaluate the modeling and its potential impact on LCNB's results of consolidated operations and financial position. The consolidated financial statement impact of this new standard cannot be reasonably estimated at this time; however, it is anticipated during 2022 that modeling adjustments should be complete after finalizing review of prepayment, curtailment, and forecasting assessments. |
Lessee, Leases | LEASES FASB Accounting Standards Update ("ASU") No. 2016-02, "Leases (Topic 842)," requires a lessee to recognize in the statement of financial position a liability to make lease payments ("the lease liability") and a right-of-use asset representing its right to use the underlying asset for the lease term, initially measured at the present value of the lease payments. When measuring assets and liabilities arising from a lease, the lessee should include payments to be made in optional periods only if the lessee is reasonably certain, as defined, to exercise an option to the lease or not to exercise an option to terminate the lease. Optional payments to purchase the underlying asset should be included if the lessee is reasonably certain it will exercise the purchase option. Most variable lease payments should be excluded except for those that depend on an index or a rate or are in substance fixed payments. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Value of Available-for-Sale Investment Securities | The amortized cost and estimated fair value of equity and debt securities at December 31 are summarized as follows (in thousands): Amortized Unrealized Unrealized Fair 2021 Debt Securities Available-for-Sale: U.S. Treasury notes $ 75,443 57 756 74,744 U.S. Agency notes 89,293 45 2,092 87,246 Corporate Bonds 5,200 70 118 5,152 U.S. Agency mortgage-backed securities 96,018 1,350 692 96,676 Municipal securities: Non-taxable 8,959 125 18 9,066 Taxable 35,208 531 446 35,293 $ 310,121 2,178 4,122 308,177 Debt Securities Held-to-Maturity: Municipal securities: Non-taxable $ 19,403 98 — 19,501 Taxable 3,569 21 4 3,586 $ 22,972 119 4 23,087 2020 Debt Securities Available-for-Sale: U.S. Treasury notes $ 2,268 120 — 2,388 U.S. Agency notes 66,983 950 33 67,900 Corporate Bonds 1,200 — 21 1,179 U.S. Agency mortgage-backed securities 88,455 3,180 1 91,634 Municipal securities: Non-taxable 12,651 282 — 12,933 Taxable 32,409 1,031 3 33,437 $ 203,966 5,563 58 209,471 Debt Securities Held-to-Maturity: Municipal securities: Non-taxable $ 21,408 181 — 21,589 Taxable 3,402 6 37 3,371 $ 24,810 187 37 24,960 |
Securities in a Continuous Loss Position | Information concerning debt securities with gross unrealized losses at December 31, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (in thousands): Less Than Twelve Months Twelve Months or More Fair Unrealized Fair Unrealized 2021 Available-for-Sale: U.S. Treasury notes $ 66,891 756 — U.S. Agency notes 58,648 1,257 20,289 835 Corporate Bonds 3,898 102 484 16 U.S. Agency mortgage-backed securities 49,813 692 — — Municipal securities: Non-taxable 1,020 18 — — Taxable 18,434 322 3,535 124 $ 198,704 3,147 24,308 975 Held-to-Maturity: Municipal securities: Non-taxable $ 46 — — — Taxable 271 4 — — $ 317 4 — — 2020 Available-for-Sale: U.S. Agency notes $ 10,674 33 — — Corporate Bonds 679 21 — — U.S. Agency mortgage-backed securities 290 1 — — Municipal securities: Non-taxable 38 — — — Taxable 3,063 3 — — $ 14,744 58 — — Held-to-Maturity: Municipal securities: Non-taxable $ 1 — — — Taxable 3,113 37 — — $ 3,114 37 — — |
Investments Classified by Contractual Maturity Date | Contractual maturities of debt securities at December 31, 2021 were as follows (in thousands). Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations. Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair Due within one year $ 5,971 5,993 1,867 1,876 Due from one to five years 80,780 80,181 4,960 4,969 Due from five to ten years 126,622 124,594 2,894 2,904 Due after ten years 730 733 13,251 13,338 214,103 211,501 22,972 23,087 U.S. Agency mortgage-backed securities 96,018 96,676 — — $ 310,121 308,177 22,972 23,087 |
Realized Gain (Loss) on Investment Securities Available-for-Sale | Certain information concerning the sale of debt securities available-for-sale for the years ended December 31 was as follows (in thousands): 2021 2020 2019 Proceeds from sales $ 21,235 8,786 84,521 Gross realized gains 365 221 228 Gross realized losses 62 — 269 |
Equity Securities with Readily Determinable Fair Value [Table Text Block] | The amortized cost and estimated fair value of equity securities with a readily determinable fair value at December 31 are summarized as follows (in thousands): 2021 2020 Amortized Fair Amortized Cost Fair Value Mutual funds $ 1,410 1,379 1,395 1,402 Equity securities 778 1,167 778 987 Total equity securities with a readily determinable fair value $ 2,188 2,546 2,173 2,389 |
Equity Securities With Readily Determinable Fair Value, Changes in Fair Value [Table Text Block] | Certain information concerning changes in fair value of equity securities with a readily determinable fair value for the years ended December 31 was as follows (in thousands): 2021 2020 Net gains recognized $ 141 675 Less net realized gains on equity securities sold — 658 Unrealized gains recognized and still held at period end $ 141 17 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Major Classifications of Loans | Major classifications of loans at December 31 were as follows (in thousands): 2021 2020 Commercial and industrial $ 101,598 99,596 Commercial, secured by real estate 887,679 842,209 Residential real estate 335,106 310,085 Consumer 34,291 37,052 Agricultural 10,649 10,116 Other loans, including deposit overdrafts 122 363 1,369,445 1,299,421 Less allowance for loan losses 5,506 5,728 Loans-net $ 1,363,939 1,293,693 |
Non-accrual, Past Due, and Accruing Restructured Loans | Non-accrual, past-due, and accruing restructured loans at December 31 were as follows (dollars in thousands): 2021 2020 Non-accrual loans: Commercial, secured by real estate $ 1,182 2,458 Residential real estate 299 1,260 Total non-accrual loans 1,481 3,718 Past-due 90 days or more and still accruing 56 — Total non-accrual and past-due 90 days or more and still accruing 1,537 3,718 Accruing restructured loans 2,622 5,176 Total $ 4,159 8,894 Ratio of total non-accrual loans to total loans 0.11 % 0.29 % Ratio of total non-accrual loans, past-due 90 days or more and still accruing, and accruing restructured loans to total loans 0.30 % 0.68 % |
Allowance for Loan Losses and Recorded Investments in Loans | The allowance for loan losses and recorded investment in loans for the years ended December 31 were as follows (in thousands): Commercial Commercial, Residential Consumer Agricultural Other Total 2021 Allowance for loan losses: Balance, beginning of year $ 816 3,903 837 153 28 (9) 5,728 Provision (credit) charged to expenses 279 (375) (190) (45) 2 60 (269) Losses charged off — (112) (28) (9) — (105) (254) Recoveries — 191 46 6 — 58 301 Balance, end of year $ 1,095 3,607 665 105 30 4 5,506 Individually evaluated for impairment $ 5 11 9 — — — 25 Collectively evaluated for impairment 1,090 3,596 656 105 30 4 5,481 Acquired credit impaired loans — — — — — — — Balance, end of year $ 1,095 3,607 665 105 30 4 5,506 Loans: Individually evaluated for impairment $ 155 2,945 559 — — — 3,659 Collectively evaluated for impairment 101,355 883,122 333,384 34,291 10,649 122 1,362,923 Acquired credit impaired loans 88 1,612 1,163 — — — 2,863 Balance, end of year $ 101,598 887,679 335,106 34,291 10,649 122 1,369,445 Ratio of net charge-offs to average loans — % (0.01) % (0.01) % 0.01 % — % 16.24 % — % 2020 Allowance for loan losses: Balance, beginning of year $ 456 2,924 528 99 34 4 4,045 Provision (credit) charged to expenses 342 1,332 239 62 (6) 45 2,014 Losses charged off (13) (353) (5) (30) — (140) (541) Recoveries 31 — 75 22 — 82 210 Balance, end of year $ 816 3,903 837 153 28 (9) 5,728 Individually evaluated for impairment $ 8 17 27 — — — 52 Collectively evaluated for impairment 808 3,886 810 153 28 (9) 5,676 Acquired credit impaired loans — — — — — — — Balance, end of year $ 816 3,903 837 153 28 (9) 5,728 Loans: Individually evaluated for impairment $ 194 6,613 1,641 5 — — 8,453 Collectively evaluated for impairment 99,040 833,548 306,138 37,047 10,116 179 1,286,068 Acquired credit impaired loans 362 2,048 2,306 — — 184 4,900 Balance, end of year $ 99,596 842,209 310,085 37,052 10,116 363 1,299,421 Ratio of net charge-offs to average loans (0.02) % 0.04 % (0.02) % 0.02 % — % 10.83 % 0.03 % Commercial Commercial, Residential Consumer Agricultural Other Total 2019 Allowance for loan losses: Balance, beginning of year $ 400 2,745 767 87 46 1 4,046 Provision (credit) charged to expenses 103 266 (264) 4 (12) 110 207 Losses charged off (47) (143) (272) (24) — (181) (667) Recoveries — 56 297 32 — 74 459 Balance, end of year $ 456 2,924 528 99 34 4 4,045 Individually evaluated for impairment $ 6 272 17 — — — 295 Collectively evaluated for impairment 450 2,652 511 99 34 4 3,750 Acquired credit impaired loans — — — — — — — Balance, end of year $ 456 2,924 528 99 34 4 4,045 Ratio of net charge-offs to average loans 0.06 % 0.01 % (0.01) % (0.04) % — % 18.57 % 0.02 % |
Analysis of the Company's Loan Portfolio by Credit Quality Indicators | An analysis of the Company’s loan portfolio by credit quality indicators at December 31 is as follows (in thousands): Pass OAEM Substandard Doubtful Total 2021 Commercial & industrial $ 98,694 2,757 147 — 101,598 Commercial, secured by real estate 851,709 22,336 13,634 — 887,679 Residential real estate 332,962 — 2,144 — 335,106 Consumer 34,281 — 10 — 34,291 Agricultural 10,649 — — — 10,649 Other 122 — — — 122 Total $ 1,328,417 25,093 15,935 — 1,369,445 2020 Commercial & industrial $ 97,391 — 2,205 — 99,596 Commercial, secured by real estate 811,558 9,279 21,372 — 842,209 Residential real estate 306,092 1,005 2,988 — 310,085 Consumer 37,050 — 2 — 37,052 Agricultural 10,116 — — — 10,116 Other 363 — — — 363 Total $ 1,262,570 10,284 26,567 — 1,299,421 |
Loan Portfolio Aging Analysis | A loan portfolio aging analysis at December 31 is as follows (in thousands): 30-59 Days 60-89 Days Greater Than Total Current Total Loans Total Loans Greater Than 2021 Commercial & industrial $ — — — — 101,598 101,598 — Commercial, secured by real estate 181 — 784 965 886,714 887,679 — Residential real estate 1,130 1 109 1,240 333,866 335,106 51 Consumer 22 5 5 32 34,259 34,291 5 Agricultural — — — — 10,649 10,649 — Other 122 — — 122 — 122 — Total $ 1,455 6 898 2,359 1,367,086 1,369,445 56 2020 Commercial & industrial $ — — — — 99,596 99,596 — Commercial, secured by real estate 16 — 1,476 1,492 840,717 842,209 — Residential real estate 497 219 675 1,391 308,694 310,085 — Consumer 4 1 — 5 37,047 37,052 — Agricultural — — — — 10,116 10,116 — Other 60 — — 60 303 363 — Total $ 577 220 2,151 2,948 1,296,473 1,299,421 — |
Impaired Loans | Impaired loans, including acquired credit impaired loans, for the years ended December 31 were as follows (in thousands): Recorded Unpaid Related Average Interest 2021 With no related allowance recorded: Commercial & industrial $ 88 316 — 236 83 Commercial, secured by real estate 3,897 4,736 — 5,978 411 Residential real estate 1,501 1,857 — 2,553 227 Consumer — — — 1 — Agricultural — — — — — Other — — — 144 127 Total $ 5,486 6,909 — 8,912 848 With an allowance recorded: Commercial & industrial $ 155 160 5 175 10 Commercial, secured by real estate 660 660 11 674 36 Residential real estate 221 221 9 230 13 Consumer — — — — — Agricultural — — — — — Other — — — — — Total $ 1,036 1,041 25 1,079 59 Total: Commercial & industrial $ 243 476 5 411 93 Commercial, secured by real estate 4,557 5,396 11 6,652 447 Residential real estate 1,722 2,078 9 2,783 240 Consumer — — — 1 — Agricultural — — — — — Other — — — 144 127 Total $ 6,522 7,950 25 9,991 907 Recorded Unpaid Related Average Interest 2020 With no related allowance recorded: Commercial & industrial $ 362 646 — 1,044 335 Commercial, secured by real estate 6,050 6,735 — 7,070 731 Residential real estate 3,261 3,695 — 3,290 316 Consumer 4 4 — 10 1 Agricultural — — — — — Other 184 297 — 234 36 Total $ 9,861 11,377 — 11,648 1,419 With an allowance recorded: Commercial & industrial $ 194 199 8 212 12 Commercial, secured by real estate 2,611 2,908 17 1,517 18 Residential real estate 686 687 27 404 18 Consumer 1 1 — 3 — Agricultural — — — — — Other — — — — — Total $ 3,492 3,795 52 2,136 48 Total: Commercial & industrial $ 556 845 8 1,256 347 Commercial, secured by real estate 8,661 9,643 17 8,587 749 Residential real estate 3,947 4,382 27 3,694 334 Consumer 5 5 — 13 1 Agricultural — — — — — Other 184 297 — 234 36 Total $ 13,353 15,172 52 13,784 1,467 Average Interest 2019 With no related allowance recorded: Commercial & industrial $ 836 83 Commercial, secured by real estate 12,748 1,213 Residential real estate 3,704 311 Consumer 12 1 Agricultural — — Other 310 35 Total $ 17,610 1,643 With an allowance recorded: Commercial & industrial $ 247 15 Commercial, secured by real estate 2,513 64 Residential real estate 528 35 Consumer 20 1 Agricultural — — Other — — Total $ 3,308 115 Total: Commercial & industrial $ 1,083 98 Commercial, secured by real estate 15,261 1,277 Residential real estate 4,232 346 Consumer 32 2 Agricultural — — Other 310 35 Total $ 20,918 1,758 |
Loan Modification that were Classified as Troubled Debt Restructuring | Loan modifications that were classified as troubled debt restructurings during the years ended December 31 were as follows (dollars in thousands): 2021 2020 Number Pre-Modification Recorded Balance Post-Modification Recorded Balance Number Pre-Modification Recorded Balance Post-Modification Recorded Balance Commercial and industrial — $ — $ — 1 $ 5 $ 4 Commercial, secured by real estate — — — 1 1,525 1,525 Residential real estate 3 97 101 1 14 14 Consumer — — — — — — Totals 3 $ 97 $ 101 3 $ 1,544 $ 1,543 |
Troubled Debt Restructurings by Type of Modification | Post-modification balances of newly restructured troubled debt by type of modification for the years ended December 31 were as follows (in thousands): Term Modification Rate Modification Interest Only Principal Forgiveness Combination Total Modifications 2021 Commercial & industrial $ — — — — — — Commercial, secured by real estate — — — — — — Residential real estate 32 — — — 69 101 Consumer — — — — — — Total $ 32 — — — 69 101 2020 Commercial & industrial $ — — — — 4 4 Commercial, secured by real estate — — — — 1,525 1,525 Residential real estate — — — — 14 14 Consumer — — — — — — Total $ — — — — 1,543 1,543 |
Schedule of Activity in the Mortgage Servicing Rights Portfolio | Activity in the mortgage servicing rights portfolio during the years ended December 31 was as follows (in thousands): 2021 2020 2019 Balance, beginning of year $ 976 483 475 Amount capitalized to mortgage servicing rights 409 719 156 Amortization of mortgage servicing rights (346) (226) (148) Balance, end of year $ 1,039 976 483 |
ACQUIRED CREDIT IMPAIRED LOANS
ACQUIRED CREDIT IMPAIRED LOANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Acquired Credit Impaired Loans [Abstract] | |
Schedule of carrying values of certain loans acquired in a transfer | The following table provides, as of December 31, the major classifications of loans acquired that are accounted for in accordance with FASB ASC 310-30 (in thousands): 2021 2020 Acquired from First Capital Bancshares, Inc. Commercial & industrial $ 1 1 Commercial, secured by real estate — — Residential real estate 398 449 Other loans, including deposit overdrafts — — Total $ 399 450 Acquired from Eaton National Bank & Trust Co. Commercial & industrial $ — 249 Commercial, secured by real estate 310 601 Residential real estate 463 595 Other loans, including deposit overdrafts — 184 Total $ 773 1,629 Acquired from BNB Bancorp, Inc. Commercial & industrial $ — — Commercial, secured by real estate 688 780 Residential real estate 51 85 Other loans, including deposit overdrafts — — Total $ 739 865 Acquired from Columbus First Bancorp, Inc. Commercial & industrial $ 87 112 Commercial, secured by real estate 614 667 Residential real estate 251 1,177 Other loans, including deposit overdrafts — — Total $ 952 1,956 Total Commercial & industrial $ 88 362 Commercial, secured by real estate 1,612 2,048 Residential real estate 1,163 2,306 Other loans, including deposit overdrafts — 184 Total $ 2,863 4,900 |
Outstanding and related carrying amount for acquired impaired loans | The following table provides the outstanding balance and related carrying amount for acquired impaired loans at December 31 (in thousands): 2021 2020 Outstanding balance $ 3,769 6,128 Carrying amount 2,863 4,900 |
Accretable discount related to acquired impaired loans | Activity during 2021 and 2020 for the accretable discount related to acquired impaired loans is as follows (in thousands): 2021 2020 Accretable discount, beginning of year $ 182 480 Reclass from nonaccretable discount to accretable discount 266 401 Less accretion (332) (699) Accretable discount, end of year $ 116 182 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
Changes in Other Real Estate Owned | Changes in other real estate owned were as follows (in thousands): 2021 2020 Balance, beginning of year $ — 197 Reductions due to sales — (197) Balance, end of year $ — — |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment at December 31 are summarized as follows (in thousands): 2021 2020 Land $ 8,512 7,933 Buildings 31,296 30,789 Equipment 17,272 16,431 Construction in progress 4,100 4,421 Total 61,180 59,574 Less accumulated depreciation 25,795 24,198 Premises and equipment, net $ 35,385 35,376 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Leases, Other Information [Table Text Block] | Other information related to leases at December 31, 2021 were as follows (dollars in thousands): Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 757 Right-of-use assets obtained in exchange for new operating lease liabilities $ 801 Weighted average remaining lease term in years for operating leases 32.9 Weighted average discount rate for operating leases 3.4 % |
Lessee, Operating Lease, Liability, Maturity | Future payments due under operating leases as of December 31, 2021 are as follows (in thousands): 2022 $ 598 2023 574 2024 577 2025 398 2026 256 Thereafter 10,226 12,629 Less effects of discounting 6,156 Operating lease liabilities recognized $ 6,473 |
Lease, Cost | Components of lease expense for the years ended December 31 are as follows (in thousands): 2021 2020 Operating lease expense $ 840 666 Short-term lease expense 48 48 Variable lease expense 4 10 Other 10 7 Total lease expense $ 902 731 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 (in thousands): 2021 2020 Balance, beginning of year $ 59,221 59,221 Additions from acquisitions — — Balance, end of year $ 59,221 59,221 |
Schedule of Other Intangible Assets Included in Other Assets | Other intangible assets in the Consolidated Balance Sheets at December 31 were as follows (in thousands): 2021 2020 Gross Accumulated Net Gross Accumulated Net Core deposit intangibles $ 8,544 7,110 1,434 8,544 6,067 2,477 Mortgage servicing rights 2,323 1,284 1,039 1,938 962 976 Total $ 10,867 8,394 2,473 10,482 7,029 3,453 |
Estimated Aggregate Future Amortization Expense | The estimated aggregate future amortization expense for each of the next five years for intangible assets remaining as of December 31, 2021 is as follows (in thousands): 2022 $ 597 2023 544 2024 422 2025 222 2026 46 |
AFFORDABLE HOUSING TAX CREDIT_2
AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Activity in Affordable Housing Program Obligation | The following table presents the balances of LCNB's affordable housing tax credit investment and related unfunded commitment at December 31 (in thousands): 2021 2020 Affordable housing tax credit investment $ 14,950 12,000 Less amortization 2,126 1,320 Net affordable housing tax credit investment $ 12,824 10,680 Unfunded commitment $ 8,655 8,237 The net affordable housing tax credit investment is included in other assets and the unfunded commitment is included in accrued interest and other liabilities in the Consolidated Balance Sheets. LCNB expects to fund the unfunded commitment over thirteen years. The following table presents other information relating to LCNB's affordable housing tax credit investment for the years indicated (in thousands): Year ended December 31, 2021 2020 2019 Tax credits and other tax benefits recognized $ 995 612 387 Tax credit amortization expense included in provision for income taxes 806 510 318 |
CERTIFICATES OF DEPOSIT (Tables
CERTIFICATES OF DEPOSIT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Contractual Maturities of Time Deposits | Contractual maturities of time deposits at December 31, 2021 were as follows (in thousands): 2022 $ 121,807 2023 43,286 2024 4,484 2025 7,956 2026 9,045 Thereafter 6,864 $ 193,442 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of funds borrowed from Federal Home Loan Bank | Funds borrowed from the FHLB at December 31 by year of maturity were as follows (dollars in thousands): 2021 2020 Outstanding Balance Average Rate Outstanding Balance Average Rate Maturing within one year 5,000 2.97 % 12,000 2.42 % Maturing one year through two years 5,000 3.02 % 5,000 2.97 % Maturing two years through three years — — % 5,000 3.02 % Total $ 10,000 3.00 % $ 22,000 2.68 % |
Short-term borrowings |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision for Federal Income Taxes | The provision for federal income taxes consists of (in thousands): 2021 2020 2019 Income taxes currently payable $ 4,317 3,951 3,694 Deferred income tax provision 294 134 419 Provision for income taxes $ 4,611 4,085 4,113 |
Reconciliation Between Statutory Income Tax and Effective Tax Rate | A reconciliation between the statutory income tax and the Company's effective tax rate follows: 2021 2020 2019 Statutory tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from - Tax exempt interest (0.7) % (0.9) % (1.4) % Tax exempt income on bank owned life insurance (0.9) % (1.3) % (0.9) % Captive insurance premium income (0.8) % (0.8) % (0.8) % Tax benefit from certain provisions of the CARES Act — % (0.8) % — % Other – net (0.6) % (0.3) % — % Effective tax rate 18.0 % 16.9 % 17.9 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities, included in the Consolidated Balance Sheets with accrued interest and other liabilities in 2021 and 2020, consist of the following at December 31 (in thousands): 2021 2020 Deferred tax assets: Allowance for loan losses $ 1,156 1,203 Net unrealized losses on investment securities available-for-sale 408 — Fair value adjustment on loans acquired from mergers 103 196 Deferred compensation 630 667 Minimum pension liability 73 81 Operating lease right-of-use assets 1,359 1,338 Other 96 245 3,825 3,730 Deferred tax liabilities: Depreciation of premises and equipment (1,595) (1,673) Net unrealized gains on investment securities available-for-sale — (1,156) Amortization of intangibles (1,518) (1,512) Prepaid expenses (323) (283) FHLB stock dividends (216) (216) Operating lease liabilities (1,359) (1,338) (5,011) (6,178) Net deferred tax liabilities $ (1,186) (2,448) |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments Whose Contract Amounts Represent Off-Balance-Sheet Credit Risk | Financial instruments whose contract amounts represent off-balance-sheet credit risk at December 31 were as follows (in thousands): 2021 2020 Commitments to extend credit: Commercial loans $ 82,578 24,581 Other loans: Fixed rate 5,196 14,668 Adjustable rate 2,784 4,386 Unused lines of credit: Fixed rate 32,655 24,205 Adjustable rate 150,746 133,073 Unused overdraft protection amounts on demand and NOW accounts 16,711 16,471 Standby letters of credit 5 243 $ 290,675 217,627 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Assets and Liabilities, Other Disclosures [Abstract] | |
Financial institutions are classified into categories based upon capital adequacy | For various regulatory purposes, financial institutions are classified into categories based upon capital adequacy: Minimum Minimum Requirement with Capital Conservation Buffer To Be Considered Ratio of Common Equity Tier 1 Capital to risk-weighted assets 4.5 % 7.0 % 6.5 % Ratio of tier 1 capital to risk-weighted assets 6.0 % 8.5 % 8.0 % Ratio of total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets 8.0 % 10.5 % 10.0 % Leverage ratio (tier 1 capital to adjusted quarterly average total assets) 4.0 % N/A 5.0 % |
Summary of regulatory capital and capital ratios of LCNB | A summary of the regulatory capital of the Bank at December 31 follows (dollars in thousands): 2021 2020 Regulatory Capital: Shareholders' equity $ 234,451 234,092 Goodwill and other intangible assets (60,655) (61,698) Accumulated other comprehensive (income) loss 1,809 (4,043) Tier 1 risk-based capital 175,605 168,351 Eligible allowance for loan losses 5,506 5,728 Total risk-based capital $ 181,111 174,079 Capital Ratios: Common Equity Tier 1 Capital to risk-weighted assets 12.25 % 12.48 % Tier 1 capital to risk-weighted assets 12.25 % 12.48 % Total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets 12.64 % 12.91 % Leverage ratio (tier 1 capital to adjusted quarterly average total assets) 9.58 % 10.06 % |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) for 2021 and 2020 were as follows (in thousands): 2021 2020 Unrealized Gains and Losses on Available-for-Sale Securities Changes in Pension Plan Assets and Benefit Obligations Total Unrealized Gains and Losses on Available-for-Sale Securities Changes in Pension Plan Assets and Benefit Obligations Total Balance at beginning of year $ 4,348 (305) 4,043 857 (184) 673 Before reclassifications (5,645) 32 (5,613) 3,666 (121) 3,545 Reclassifications (239) — (239) (175) — (175) Balance at end of year $ (1,536) (273) (1,809) 4,348 (305) 4,043 |
Reclassification Out Of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income (loss) during 2021 and 2020 and the affected line items in the Consolidated Statements of Income were as follows (in thousands): 2021 2020 Affected Line Item in the Consolidated Statements of Income Net gains (losses) on sales of debt securities $ 303 221 Net gains (losses) on sales of debt securities Less provision (benefit) for income taxes 64 46 Provision for income taxes Reclassification adjustment, net of taxes $ 239 175 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Summary of Costs of Retirement Plans | Funding and administrative costs of the qualified noncontributory defined benefit retirement plan and 401(k) plan charged to salaries and employee benefits in the Consolidated Statements of Income for the years ended December 31 were as follows (in thousands): 2021 2020 2019 Qualified noncontributory defined benefit retirement plan $ 1,178 1,111 1,039 401(k) plan 610 590 524 |
Components of Net Benefit Costs | The components of net periodic pension cost of the nonqualified defined benefit retirement plan for the years ended December 31 are summarized as follows (in thousands): 2021 2020 2019 Service cost $ — — — Interest cost 52 63 77 Amortization of unrecognized (gain) loss 8 2 — Net periodic pension cost $ 60 65 77 |
Reconciliation of Changes in Projected Benefit Obligations | A reconciliation of changes in the projected benefit obligation of the nonqualified defined benefit retirement plan at December 31 follows (in thousands): 2021 2020 2019 Projected benefit obligation at beginning of year $ 2,124 2,045 1,900 Service cost — — — Interest cost 52 63 77 Actuarial (gain) or loss (33) 155 122 Benefits paid (144) (139) (54) Projected benefit obligation at end of year $ 1,999 2,124 2,045 |
Amount Recognized in OCI | Amounts recognized in accumulated other comprehensive income (loss), net of tax, at December 31 for the nonqualified defined benefit retirement plan consists of (in thousands): 2021 2020 2019 Net actuarial (gain) or loss $ (32) 122 184 |
Schedule of Key Assumptions Used | Key weighted-average assumptions used to determine the benefit obligation and net periodic pension costs for the nonqualified defined benefit retirement plan for the years ended December 31 were as follows: 2021 2020 2019 Benefit obligation: Discount rate 2.83 % 2.52 % 3.22 % Salary increase rate — % — % — % Net periodic pension cost: Discount rate 2.52 % 3.22 % 4.22 % Salary increase rate — % — % 2.00 % Amortization period in years 20.16 21.24 1.00 |
Expected Benefit Payments | Estimated future benefit payments reflecting expected future service for the years ended after December 31, 2021 are (in thousands): 2022 $ 144 2023 144 2024 144 2025 144 2026 143 2027-2031 669 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Awards Activity | Restricted stock awards granted under the 2015 Plan were as follows: 2021 2020 2019 Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 28,596 $ 17.42 17,752 $ 18.03 16,958 $ 18.94 Granted 26,321 16.85 19,211 16.87 12,504 16.95 Vested (9,649) 17.49 (4,817) 17.83 (11,710) 18.19 Forfeited (756) 16.86 (3,550) 16.9 — — Outstanding at December 31, 44,512 $ 17.08 28,596 $ 17.42 17,752 $ 18.03 |
Summary of Stock Option Activity | The following table summarizes stock option activity for the years indicated: 2021 2020 2019 Weighted Aggregate Intrinsic Value (in thousands) (1) Options Weighted Aggregate Intrinsic Value (in thousands) (1) Weighted Aggregate Intrinsic Value (in thousands) (1) Outstanding at January 1, 311 $ 12.60 9,904 $ 11.96 13,278 $ 11.98 Exercised (311) 12.60 (9,593) 11.94 (3,374) 12.05 Expired — — — — — — Outstanding at December 31, — $ — $ — 311 $ 12.60 $ — 9,904 $ 11.96 $ 73 Exercisable at December 31, — $ — $ — 311 $ 12.60 $ — 9,904 $ 11.96 $ 73 (1) Aggregate Intrinsic Value is defined as the amount by which the current market value of the underlying stock exceeds the exercise price of the option. |
Schedule Of Information Related To Stock Options Exercised | The following table provides information related to stock options exercised during the years indicated (in thousands): 2021 2020 2019 Intrinsic value of options exercised $ 1 46 20 Cash received from options exercised 4 114 41 Tax benefit realized from options exercised — 5 3 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computations of Earnings Per Share | Earnings per share for the years ended December 31 were calculated as follows (in thousands, except share and per share data): 2021 2020 2019 Net income $ 20,974 20,075 18,912 Less allocation of earnings and dividends to participating securities 75 45 31 Net income allocated to common shareholders $ 20,899 20,030 18,881 Weighted average common shares outstanding, gross 12,635,013 12,943,622 13,100,161 Less average participating securities 45,408 29,345 21,241 Weighted average number of shares outstanding used in the calculation of basic earnings per common share 12,589,605 12,914,277 13,078,920 Add dilutive effect of: Stock options 8 307 3,973 Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share 12,589,613 12,914,584 13,082,893 Earnings per common share: Basic $ 1.66 1.55 1.44 Diluted 1.66 1.55 1.44 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table provides a summary of the loan activity for these officers and directors for the years ended December 31 (in thousands): 2021 2020 Beginning balance $ 2,929 2,380 New loans and advances 250 1,139 Change in composition of related parties (413) — Reductions (641) (590) Ending Balance $ 2,125 2,929 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Valuation of LCNB's Assets Recorded at Fair Value by Inputs Level | The following table summarizes the valuation of LCNB’s assets recorded at fair value by input levels as of December 31 (in thousands): Fair Value Measurements at the End of Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 2021 Recurring fair value measurements: Equity securities with a readily determinable fair value: Equity securities $ 1,167 1,167 — — Mutual funds 51 51 — — Mutual funds measured at net asset value 1,328 1,328 — — Debt securities available-for-sale: U.S. Treasury notes 74,744 74,744 — — U.S. Agency notes 87,246 — 87,246 — Corporate bonds 5,152 — 5,152 — U.S. Agency mortgage-backed securities 96,676 — 96,676 — Municipal securities: Non-taxable 9,066 — 9,066 — Taxable 35,293 — 35,293 — Total recurring fair value measurements $ 310,723 77,290 233,433 — Nonrecurring fair value measurements: Impaired loans $ 1,011 — — 1,011 Total nonrecurring fair value measurements $ 1,011 — — 1,011 2020 Recurring fair value measurement: Equity securities with a readily determinable fair value: Equity securities $ 987 987 — — Mutual funds 50 50 — — Mutual funds measured at net asset value 1,352 1,352 — — Debt securities available-for-sale: U.S. Treasury notes 2,388 2,388 — — U.S. Agency notes 67,900 — 67,900 — Corporate bonds 1,179 — 1,179 — U.S. Agency mortgage-backed securities 91,634 — 91,634 — Municipal securities: Non-taxable 12,933 — 12,933 — Taxable 33,437 — 33,437 — Total recurring fair value measurements $ 211,860 4,777 207,083 — Nonrecurring fair value measurements: Impaired loans $ 3,439 — — 3,439 Total nonrecurring fair value measurements $ 3,439 — — 3,439 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at December 31, 2021 and 2020 (dollars in thousands): Range Fair Value Valuation Technique Unobservable Inputs High Low Weighted Average 2021 Impaired loans $ — Estimated sales price Adjustments for comparable properties, discounts to reflect current market conditions Not applicable 1,011 Discounted cash flows Discount rate 8.25 % 4.00 % 6.07 % 2020 Impaired loans $ 1,352 Estimated sales price Adjustments for comparable properties, discounts to reflect current market conditions Not applicable 2,087 Discounted cash flows Discount rate 8.25 % 4.00 % 4.74 % |
Carrying Amounts and Estimated Fair Values of Financial Instruments | Carrying amounts and estimated fair values of financial instruments as of December 31 were as follows (in thousands): Fair Value Measurements at the End of Carrying Fair Quoted Significant Other Significant 2021 FINANCIAL ASSETS: Cash and cash equivalents $ 18,136 18,136 18,136 — — Debt securities, held-to-maturity 22,972 23,087 — — 23,087 Federal Reserve Bank stock 4,652 4,652 4,652 — — Federal Home Loan Bank stock 5,203 5,203 5,203 — — Loans, net 1,363,939 1,333,840 — — 1,333,840 Accrued interest receivable 7,999 7,999 — 7,999 — FINANCIAL LIABILITIES: Deposits 1,628,819 1,630,158 1,435,487 194,671 — Long-term debt 10,000 10,292 — 10,292 — Accrued interest payable 277 277 — 277 — 2020 FINANCIAL ASSETS: Cash and cash equivalents $ 31,730 31,730 31,730 — — Debt securities, held-to-maturity 24,810 24,960 — — 24,960 Federal Reserve Bank stock 4,652 4,652 4,652 — — Federal Home Loan Bank stock 5,203 5,203 5,203 — — Loans, net 1,293,693 1,252,642 — — 1,252,642 Accrued interest receivable 8,337 8,337 — 8,337 — FINANCIAL LIABILITIES: Deposits 1,455,423 1,458,413 1,212,903 245,510 — Long-term debt 22,000 22,595 — 22,595 — Accrued interest payable 452 452 — 452 — |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed financial information for LCNB Corp., parent company only, follows (in thousands): Condensed Balance Sheets: December 31, 2021 2020 Assets: Cash on deposit with subsidiary $ 657 3,648 Cash on deposit with unrelated depository institution 451 175 Equity securities, at fair value 1,156 1,001 Investment in subsidiaries 236,401 235,857 Other assets 180 164 Total assets $ 238,845 240,845 Liabilities $ 241 20 Shareholders' equity 238,604 240,825 Total liabilities and shareholders' equity $ 238,845 240,845 |
Condensed Statements of Income | Condensed Statements of Income Year ended December 31, 2021 2020 2019 Income: Dividends from subsidiaries $ 15,820 12,070 18,300 Interest and dividends 34 29 31 Other income 155 147 215 Total income 16,009 12,246 18,546 Total expenses 1,764 1,326 1,369 Income before income tax expense/benefit and equity in undistributed income of subsidiaries 14,245 10,920 17,177 Income tax benefit (333) (404) (222) Equity in undistributed income of subsidiaries 6,396 8,751 1,513 Net income $ 20,974 20,075 18,912 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income $ 20,974 20,075 18,912 Adjustments for non-cash items - Increase in undistributed income of subsidiaries (6,396) (8,751) (1,513) Other, net 299 (88) 476 Net cash flows provided by operating activities 14,877 11,236 17,875 Cash flows from investing activities: Purchases of equity securities — (346) (337) Proceeds from sales of equity securities — 463 397 Net cash flows provided by (used in) investing activities — 117 60 Cash flows from financing activities: Proceeds from issuance of common stock 434 401 446 Payments to repurchase common stock (8,310) (1,872) (6,834) Cash dividends paid on common stock (9,720) (9,448) (9,028) Other 4 114 41 Net cash flows used in financing activities (17,592) (10,805) (15,375) Net change in cash (2,715) 548 2,560 Cash at beginning of year 3,823 3,275 715 Cash at end of year $ 1,108 3,823 3,275 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2021 | |
CASH AND CASH EQUIVALENTS | |
Short term investment maturity period | 12 months |
ALLOWANCE FOR LOAN LOSSES | |
Minimum period due consumer loan | 120 days |
Period for measurement of loan component | 60 months |
Historical loss period | 5 years |
STOCK OPTIONS | |
Option vesting period | 5 years |
Premises | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Premises | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
INVESTMENT SECURITIES, AMORTIZE
INVESTMENT SECURITIES, AMORTIZED COST AND FAIR VALUE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities Available-for-Sale: | ||
Amortized Cost | $ 310,121 | $ 203,966 |
Unrealized Gains | 2,178 | 5,563 |
Unrealized Losses | 4,122 | 58 |
Debt securities, available-for-sale, at fair value | 308,177 | 209,471 |
Debt Securities Held-to-Maturity: | ||
Amortized Cost | 22,972 | 24,810 |
Unrealized Gains | 119 | 187 |
Unrealized Losses | 4 | 37 |
Fair Value | 23,087 | 24,960 |
Equity Securities, FV-NI, Cost | 2,188 | 2,173 |
Equity Securities, FV-NI | 2,546 | 2,389 |
U.S. Treasury notes | ||
Debt Securities Available-for-Sale: | ||
Amortized Cost | 75,443 | 2,268 |
Unrealized Gains | 57 | 120 |
Unrealized Losses | 756 | 0 |
Debt securities, available-for-sale, at fair value | 74,744 | 2,388 |
U.S. Agency notes | ||
Debt Securities Available-for-Sale: | ||
Amortized Cost | 89,293 | 66,983 |
Unrealized Gains | 45 | 950 |
Unrealized Losses | 2,092 | 33 |
Debt securities, available-for-sale, at fair value | 87,246 | 67,900 |
U.S. Agency mortgage-backed securities | ||
Debt Securities Available-for-Sale: | ||
Amortized Cost | 96,018 | 88,455 |
Unrealized Gains | 1,350 | 3,180 |
Unrealized Losses | 692 | 1 |
Debt securities, available-for-sale, at fair value | 96,676 | 91,634 |
Debt Securities Held-to-Maturity: | ||
Amortized Cost | 0 | |
Fair Value | 0 | |
Non-taxable municipal securities | ||
Debt Securities Available-for-Sale: | ||
Amortized Cost | 8,959 | 12,651 |
Unrealized Gains | 125 | 282 |
Unrealized Losses | 18 | 0 |
Debt securities, available-for-sale, at fair value | 9,066 | 12,933 |
Debt Securities Held-to-Maturity: | ||
Amortized Cost | 19,403 | 21,408 |
Unrealized Gains | 98 | 181 |
Unrealized Losses | 0 | 0 |
Fair Value | 19,501 | 21,589 |
Taxable municipal securities | ||
Debt Securities Available-for-Sale: | ||
Amortized Cost | 35,208 | 32,409 |
Unrealized Gains | 531 | 1,031 |
Unrealized Losses | 446 | 3 |
Debt securities, available-for-sale, at fair value | 35,293 | 33,437 |
Debt Securities Held-to-Maturity: | ||
Amortized Cost | 3,569 | 3,402 |
Unrealized Gains | 21 | 6 |
Unrealized Losses | 4 | 37 |
Fair Value | 3,586 | 3,371 |
Mutual funds | ||
Debt Securities Held-to-Maturity: | ||
Equity Securities, FV-NI, Cost | 1,410 | 1,395 |
Equity Securities, FV-NI | 1,379 | 1,402 |
Equity securities | ||
Debt Securities Held-to-Maturity: | ||
Equity Securities, FV-NI, Cost | 778 | 778 |
Equity Securities, FV-NI | 1,167 | 987 |
Corporate Bond Securities | ||
Debt Securities Available-for-Sale: | ||
Amortized Cost | 5,200 | 1,200 |
Unrealized Gains | 70 | 0 |
Unrealized Losses | 118 | 21 |
Debt securities, available-for-sale, at fair value | $ 5,152 | $ 1,179 |
INVESTMENT SECURITIES, CONTINUO
INVESTMENT SECURITIES, CONTINUOUS UNREALIZED LOSS POSITION (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available-for-Sale: | ||
Less Than 12 Months, Fair Value | $ 198,704 | $ 14,744 |
Less Than 12 Months, Unrealized Losses | 3,147 | 58 |
12 Months or More, Fair Value | 24,308 | 0 |
12 Months or More, Unrealized Losses | 975 | 0 |
Held-to-Maturity: | ||
Less Than 12 Months, Fair Value | 317 | 3,114 |
Less Than 12 Months, Unrealized Losses | 4 | 37 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
U.S. Treasury notes | ||
Available-for-Sale: | ||
Less Than 12 Months, Fair Value | 66,891 | |
Less Than 12 Months, Unrealized Losses | 756 | |
12 Months or More, Fair Value | ||
12 Months or More, Unrealized Losses | 0 | |
U.S. Agency notes | ||
Available-for-Sale: | ||
Less Than 12 Months, Fair Value | 58,648 | 10,674 |
Less Than 12 Months, Unrealized Losses | 1,257 | 33 |
12 Months or More, Fair Value | 20,289 | 0 |
12 Months or More, Unrealized Losses | 835 | 0 |
U.S. Agency mortgage-backed securities | ||
Available-for-Sale: | ||
Less Than 12 Months, Fair Value | 49,813 | 290 |
Less Than 12 Months, Unrealized Losses | 692 | 1 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Non-taxable Municipal Securities | ||
Available-for-Sale: | ||
Less Than 12 Months, Fair Value | 1,020 | 38 |
Less Than 12 Months, Unrealized Losses | 18 | 0 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Held-to-Maturity: | ||
Less Than 12 Months, Fair Value | 46 | 1 |
Less Than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Taxable Municipal Securities | ||
Available-for-Sale: | ||
Less Than 12 Months, Fair Value | 18,434 | 3,063 |
Less Than 12 Months, Unrealized Losses | 322 | 3 |
12 Months or More, Fair Value | 3,535 | 0 |
12 Months or More, Unrealized Losses | 124 | 0 |
Held-to-Maturity: | ||
Less Than 12 Months, Fair Value | 271 | 3,113 |
Less Than 12 Months, Unrealized Losses | 4 | 37 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Corporate Bond Securities | ||
Available-for-Sale: | ||
Less Than 12 Months, Fair Value | 3,898 | 679 |
Less Than 12 Months, Unrealized Losses | 102 | 21 |
12 Months or More, Fair Value | 484 | 0 |
12 Months or More, Unrealized Losses | $ 16 | $ 0 |
INVESTMENT SECURITIES, MATURITI
INVESTMENT SECURITIES, MATURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available for Sale, Amortized Cost [Abstract] | ||
Due within one year | $ 5,971 | |
Due from one to five years | 80,780 | |
Due from five to ten years | 126,622 | |
Due after ten years | 730 | |
Amortized Cost | 214,103 | |
Amortized Cost | 310,121 | $ 203,966 |
Available-for-sale, Fair Value [Abstract] | ||
Due within one year | 5,993 | |
Due from one to five years | 80,181 | |
Due from five to ten years | 124,594 | |
Due after ten years | 733 | |
Fair Value | 211,501 | |
Held-to-maturity Securities, Amortized Cost [Abstract] | ||
Due within one year | 1,867 | |
Due from one to five years | 4,960 | |
Due from five to ten years | 2,894 | |
Due after ten years | 13,251 | |
Amortized Cost | 22,972 | 24,810 |
Held-to-maturity Securities, Fair Value [Abstract] | ||
Due within one year | 1,876 | |
Due from one to five years | 4,969 | |
Due from five to ten years | 2,904 | |
Due after ten years | 13,338 | |
Fair Value | 23,087 | 24,960 |
U.S. Agency mortgage-backed securities | ||
Available for Sale, Amortized Cost [Abstract] | ||
Amortized Cost | 96,018 | $ 88,455 |
Held-to-maturity Securities, Amortized Cost [Abstract] | ||
Amortized Cost | 0 | |
Held-to-maturity Securities, Fair Value [Abstract] | ||
Fair Value | $ 0 |
INVESTMENT SECURITIES, NARRATIV
INVESTMENT SECURITIES, NARRATIVE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Debt Securities, Available-for-sale, Restricted | $ 128,426 | $ 118,599 |
INVESTMENT SECURITIES, SALE (De
INVESTMENT SECURITIES, SALE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of debt securities, available-for-sale | $ 21,235 | $ 8,786 | $ 84,521 |
Debt Securities, Available-for-sale, Realized Gain | 365 | 221 | 228 |
Debt Securities, Available-for-sale, Realized Loss | $ 62 | $ 0 | $ 269 |
INVESTMENT SECURITIES Equity Se
INVESTMENT SECURITIES Equity Securities With Readily Determinable Fair Values, Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Equity Securities, FV-NI, Gain (Loss) | $ 141 | $ 675 | $ 264 |
Equity Securities, FV-NI, Cost | 2,188 | 2,173 | |
Equity Securities, FV-NI | 2,546 | 2,389 | |
Equity Securities, Realized Gain (Loss) From Sale | 0 | (658) | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 141 | 17 | |
Equity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Equity Securities, FV-NI, Cost | 778 | 778 | |
Equity Securities, FV-NI | 1,167 | 987 | |
Mutual funds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Equity Securities, FV-NI, Cost | 1,410 | 1,395 | |
Equity Securities, FV-NI | $ 1,379 | $ 1,402 |
LOANS, MAJOR CLASSIFICATION OF
LOANS, MAJOR CLASSIFICATION OF LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,369,445 | $ 1,299,421 |
Less allowance for loan losses | 5,506 | 5,728 |
Loans, net | 1,363,939 | 1,293,693 |
Deferred origination fees, net of related costs | 961 | 1,135 |
Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 101,598 | 99,596 |
Commercial, secured by real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 887,679 | 842,209 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 335,106 | 310,085 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 34,291 | 37,052 |
Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,649 | 10,116 |
Other loans, including deposit overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 122 | $ 363 |
LOANS, PAST-DUE, AND ACCRUING R
LOANS, PAST-DUE, AND ACCRUING RESTRUCTURED LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing receivables, non-accruals, past-due, and accruing restructured loans [Line Items] | ||
Total non-accrual loans | $ 1,481 | $ 3,718 |
Past-due 90 days or more and still accruing | 56 | 0 |
Total non-accrual and past-due 90 days or more and still accruing | 1,537 | 3,718 |
Accruing restructured loans | 2,622 | 5,176 |
Total | $ 4,159 | $ 8,894 |
Ratio of total non-accrual loans to total loans | 0.11% | 0.29% |
Ratio of total non-accrual loans, past-due 90 days or more and still accruing, and accruing restructured loans to total loans | 0.30% | 0.68% |
Interest income | $ 31 | $ 134 |
Commercial & industrial | ||
Financing receivables, non-accruals, past-due, and accruing restructured loans [Line Items] | ||
Past-due 90 days or more and still accruing | 0 | 0 |
Commercial, secured by real estate | ||
Financing receivables, non-accruals, past-due, and accruing restructured loans [Line Items] | ||
Total non-accrual loans | 1,182 | 2,458 |
Past-due 90 days or more and still accruing | 0 | 0 |
Agricultural | ||
Financing receivables, non-accruals, past-due, and accruing restructured loans [Line Items] | ||
Past-due 90 days or more and still accruing | 0 | 0 |
Residential real estate | ||
Financing receivables, non-accruals, past-due, and accruing restructured loans [Line Items] | ||
Total non-accrual loans | 299 | 1,260 |
Past-due 90 days or more and still accruing | $ 51 | $ 0 |
LOANS, ALLOWANCES FOR CREDIT LO
LOANS, ALLOWANCES FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for loan losses: | |||
Balance, beginning of year | $ 5,728 | $ 4,045 | $ 4,046 |
Provision (credit) charged to expenses | (269) | 2,014 | 207 |
Losses charged off | (254) | (541) | (667) |
Recoveries | 301 | 210 | 459 |
Balance, end of year | 5,506 | 5,728 | 4,045 |
Individually evaluated for impairment | 25 | 52 | 295 |
Collectively evaluated for impairment | 5,481 | 5,676 | 3,750 |
Acquired credit impaired loans | 0 | 0 | |
Balance, end of year | 5,506 | 5,728 | $ 4,045 |
Loans: | |||
Individually evaluated for impairment | 3,659 | 8,453 | |
Collectively evaluated for impairment | 1,362,923 | 1,286,068 | |
Acquired credit impaired loans | 2,863 | 4,900 | |
Total loans | $ 1,369,445 | $ 1,299,421 | |
Ratio Of Net Charge-Offs To Average Loans | 0.00% | 0.03% | 0.02% |
Commercial & industrial | |||
Allowance for loan losses: | |||
Balance, beginning of year | $ 816 | $ 456 | $ 400 |
Provision (credit) charged to expenses | 279 | 342 | 103 |
Losses charged off | 0 | (13) | (47) |
Recoveries | 0 | 31 | 0 |
Balance, end of year | 1,095 | 816 | 456 |
Individually evaluated for impairment | 5 | 8 | 6 |
Collectively evaluated for impairment | 1,090 | 808 | 450 |
Acquired credit impaired loans | 0 | 0 | |
Balance, end of year | 1,095 | 816 | $ 456 |
Loans: | |||
Individually evaluated for impairment | 155 | 194 | |
Collectively evaluated for impairment | 101,355 | 99,040 | |
Total loans | $ 101,598 | $ 99,596 | |
Ratio Of Net Charge-Offs To Average Loans | 0.00% | (0.02%) | 0.06% |
Commercial, secured by real estate | |||
Allowance for loan losses: | |||
Balance, beginning of year | $ 3,903 | $ 2,924 | $ 2,745 |
Provision (credit) charged to expenses | (375) | 1,332 | 266 |
Losses charged off | (112) | (353) | (143) |
Recoveries | 191 | 0 | 56 |
Balance, end of year | 3,607 | 3,903 | 2,924 |
Individually evaluated for impairment | 11 | 17 | 272 |
Collectively evaluated for impairment | 3,596 | 3,886 | 2,652 |
Acquired credit impaired loans | 0 | 0 | |
Balance, end of year | 3,607 | 3,903 | $ 2,924 |
Loans: | |||
Individually evaluated for impairment | 2,945 | 6,613 | |
Collectively evaluated for impairment | 883,122 | 833,548 | |
Total loans | $ 887,679 | $ 842,209 | |
Ratio Of Net Charge-Offs To Average Loans | (0.01%) | 0.04% | 0.01% |
Residential real estate | |||
Allowance for loan losses: | |||
Balance, beginning of year | $ 837 | $ 528 | $ 767 |
Provision (credit) charged to expenses | (190) | 239 | (264) |
Losses charged off | (28) | (5) | (272) |
Recoveries | 46 | 75 | 297 |
Balance, end of year | 665 | 837 | 528 |
Individually evaluated for impairment | 9 | 27 | 17 |
Collectively evaluated for impairment | 656 | 810 | 511 |
Acquired credit impaired loans | 0 | 0 | |
Balance, end of year | 665 | 837 | $ 528 |
Loans: | |||
Individually evaluated for impairment | 559 | 1,641 | |
Collectively evaluated for impairment | 333,384 | 306,138 | |
Total loans | $ 335,106 | $ 310,085 | |
Ratio Of Net Charge-Offs To Average Loans | (0.01%) | (0.02%) | (0.01%) |
Consumer | |||
Allowance for loan losses: | |||
Balance, beginning of year | $ 153 | $ 99 | $ 87 |
Provision (credit) charged to expenses | (45) | 62 | 4 |
Losses charged off | (9) | (30) | (24) |
Recoveries | 6 | 22 | 32 |
Balance, end of year | 105 | 153 | 99 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 105 | 153 | 99 |
Acquired credit impaired loans | 0 | 0 | |
Balance, end of year | 105 | 153 | $ 99 |
Loans: | |||
Individually evaluated for impairment | 0 | 5 | |
Collectively evaluated for impairment | 34,291 | 37,047 | |
Total loans | $ 34,291 | $ 37,052 | |
Ratio Of Net Charge-Offs To Average Loans | 0.01% | 0.02% | (0.04%) |
Agricultural | |||
Allowance for loan losses: | |||
Balance, beginning of year | $ 28 | $ 34 | $ 46 |
Provision (credit) charged to expenses | 2 | (6) | (12) |
Losses charged off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Balance, end of year | 30 | 28 | 34 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 30 | 28 | 34 |
Acquired credit impaired loans | 0 | 0 | |
Balance, end of year | 30 | 28 | $ 34 |
Loans: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 10,649 | 10,116 | |
Total loans | $ 10,649 | $ 10,116 | |
Ratio Of Net Charge-Offs To Average Loans | 0.00% | 0.00% | 0.00% |
Other | |||
Allowance for loan losses: | |||
Balance, beginning of year | $ (9) | $ 4 | $ 1 |
Provision (credit) charged to expenses | 60 | 45 | 110 |
Losses charged off | (105) | (140) | (181) |
Recoveries | 58 | 82 | 74 |
Balance, end of year | 4 | (9) | 4 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 4 | (9) | 4 |
Acquired credit impaired loans | 0 | 0 | |
Balance, end of year | 4 | (9) | $ 4 |
Loans: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 122 | 179 | |
Total loans | $ 122 | $ 363 | |
Ratio Of Net Charge-Offs To Average Loans | 16.24% | 10.83% | 18.57% |
Financial Receivable Acquired Credit Impaired | |||
Loans: | |||
Acquired credit impaired loans | $ 2,863 | $ 4,900 | $ 0 |
Financial Receivable Acquired Credit Impaired | Commercial & industrial | |||
Loans: | |||
Acquired credit impaired loans | 88 | 362 | |
Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate | |||
Loans: | |||
Acquired credit impaired loans | 1,612 | 2,048 | |
Financial Receivable Acquired Credit Impaired | Residential real estate | |||
Loans: | |||
Acquired credit impaired loans | 1,163 | 2,306 | |
Financial Receivable Acquired Credit Impaired | Consumer | |||
Loans: | |||
Acquired credit impaired loans | 0 | 0 | |
Financial Receivable Acquired Credit Impaired | Agricultural | |||
Loans: | |||
Acquired credit impaired loans | 0 | 0 | |
Financial Receivable Acquired Credit Impaired | Other | |||
Loans: | |||
Acquired credit impaired loans | $ 0 | $ 184 |
LOANS, ADDITIONAL INFORMATION (
LOANS, ADDITIONAL INFORMATION (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)Bank_Loan | Dec. 31, 2020USD ($)Bank_Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest income | $ 31,000 | $ 134,000 |
Financing Receivable, Short Term Modifications, Dollar Amount, End Of Period | 0 | 1,553,000 |
Financing Receivable, CARES Act Section 4013 Modifications, Dollar Amount, End Of Period | 0 | 19,023,000 |
Total loans | 1,369,445,000 | 1,299,421,000 |
Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 101,598,000 | 99,596,000 |
Commercial & industrial | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Adjustable interest rate periods of loan products | 1 year | |
Commercial & industrial | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Adjustable interest rate periods of loan products | 10 years | |
Commercial, secured by real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 887,679,000 | 842,209,000 |
Commercial, secured by real estate | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization period of loan products | 5 years | |
Balloon payment terms of loan products | 1 year | |
Adjustable interest rate periods of loan products | 1 year | |
Loan to appraised value ratio of loan products | 75.00% | |
Commercial, secured by real estate | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization period of loan products | 25 years | |
Balloon payment terms of loan products | 10 years | |
Adjustable interest rate periods of loan products | 10 years | |
Loan to appraised value ratio of loan products | 85.00% | |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Home equity lines of credit draw period of residential real estate loans | 5 years | |
Total loans | $ 335,106,000 | 310,085,000 |
Residential real estate | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization period of loan products | 5 years | |
Adjustable interest rate periods of loan products | 1 year | |
Loan to appraised value ratio of loan products | 80.00% | |
Residential real estate | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization period of loan products | 30 years | |
Adjustable interest rate periods of loan products | 10 years | |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 34,291,000 | $ 37,052,000 |
Consumer | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization period of loan products | 72 months | |
Paycheck Protection Program Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Interest Rate | 1.00% | |
Financing Receivable, Number Of Contracts | Bank_Loan | 358 | 316 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | $ 45,500,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | $ 38,300,000 | |
Total loans | $ 6,900,000 | |
Paycheck Protection Program Loans | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization period of loan products | 2 years | |
Paycheck Protection Program Loans | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortization period of loan products | 5 years |
LOANS, LOANS PORTFOLIO BY CREDI
LOANS, LOANS PORTFOLIO BY CREDIT QUALITY INDICATORS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 1,369,445 | $ 1,299,421 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,328,417 | 1,262,570 |
OAEM | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 25,093 | 10,284 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 15,935 | 26,567 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial & industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 101,598 | 99,596 |
Commercial & industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 98,694 | 97,391 |
Commercial & industrial | OAEM | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,757 | 0 |
Commercial & industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 147 | 2,205 |
Commercial & industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial, secured by real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 887,679 | 842,209 |
Commercial, secured by real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 851,709 | 811,558 |
Commercial, secured by real estate | OAEM | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 22,336 | 9,279 |
Commercial, secured by real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 13,634 | 21,372 |
Commercial, secured by real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 335,106 | 310,085 |
Residential real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 332,962 | 306,092 |
Residential real estate | OAEM | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 1,005 |
Residential real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,144 | 2,988 |
Residential real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 34,291 | 37,052 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 34,281 | 37,050 |
Consumer | OAEM | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 10 | 2 |
Consumer | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 10,649 | 10,116 |
Agricultural | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 10,649 | 10,116 |
Agricultural | OAEM | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Agricultural | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Agricultural | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 122 | 363 |
Other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 122 | 363 |
Other | OAEM | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 0 | $ 0 |
LOANS, LOANS PORTFOLIO AGING AN
LOANS, LOANS PORTFOLIO AGING ANALYSIS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 1,369,445 | $ 1,299,421 |
Total Loans Greater Than 90 Days and Accruing | 56 | 0 |
Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 101,598 | 99,596 |
Total Loans Greater Than 90 Days and Accruing | 0 | 0 |
Commercial, secured by real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 887,679 | 842,209 |
Total Loans Greater Than 90 Days and Accruing | 0 | 0 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 335,106 | 310,085 |
Total Loans Greater Than 90 Days and Accruing | 51 | 0 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 34,291 | 37,052 |
Total Loans Greater Than 90 Days and Accruing | 5 | 0 |
Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 10,649 | 10,116 |
Total Loans Greater Than 90 Days and Accruing | 0 | 0 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 122 | 363 |
Total Loans Greater Than 90 Days and Accruing | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,455 | 577 |
30-59 Days Past Due | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
30-59 Days Past Due | Commercial, secured by real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 181 | 16 |
30-59 Days Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,130 | 497 |
30-59 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 22 | 4 |
30-59 Days Past Due | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
30-59 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 122 | 60 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 6 | 220 |
60-89 Days Past Due | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
60-89 Days Past Due | Commercial, secured by real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
60-89 Days Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1 | 219 |
60-89 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 5 | 1 |
60-89 Days Past Due | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
60-89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 898 | 2,151 |
Greater Than 90 Days | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Greater Than 90 Days | Commercial, secured by real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 784 | 1,476 |
Greater Than 90 Days | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 109 | 675 |
Greater Than 90 Days | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 5 | 0 |
Greater Than 90 Days | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Greater Than 90 Days | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,359 | 2,948 |
Financial Asset, Past Due | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Financial Asset, Past Due | Commercial, secured by real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 965 | 1,492 |
Financial Asset, Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,240 | 1,391 |
Financial Asset, Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 32 | 5 |
Financial Asset, Past Due | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Financial Asset, Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 122 | 60 |
Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,367,086 | 1,296,473 |
Financial Asset, Not Past Due | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 101,598 | 99,596 |
Financial Asset, Not Past Due | Commercial, secured by real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 886,714 | 840,717 |
Financial Asset, Not Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 333,866 | 308,694 |
Financial Asset, Not Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 34,259 | 37,047 |
Financial Asset, Not Past Due | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 10,649 | 10,116 |
Financial Asset, Not Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 0 | $ 303 |
LOANS, IMPAIRED LOANS (Details)
LOANS, IMPAIRED LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Financing Receivable, Modifications, with No Related Allowance, Recorded Investment | $ 101 | $ 4 | |
With no related allowance recorded [Abstract] | |||
Recorded Investment | 5,486 | 9,861 | |
Unpaid Principal Balance | 6,909 | 11,377 | |
Average Recorded Investment | 8,912 | 11,648 | $ 17,610 |
Interest Income Recognized | 848 | 1,419 | 1,643 |
With an allowance recorded [Abstract] | |||
Recorded Investment | 1,036 | 3,492 | |
Unpaid Principal Balance | 1,041 | 3,795 | |
Related Allowance | 25 | 52 | |
Average Recorded Investment | 1,079 | 2,136 | 3,308 |
Interest Income Recognized | 59 | 48 | 115 |
Total [Abstract] | |||
Recorded Investment | 6,522 | 13,353 | |
Unpaid Principal Balance | 7,950 | 15,172 | |
Average Recorded Investment | 9,991 | 13,784 | 20,918 |
Interest Income Recognized | 907 | 1,467 | 1,758 |
Interest income recognized on a cash basis | 37 | 34 | 42 |
Financing Receivable, Modifications, with Related Allowance, Recorded Investment | 0 | 1,539 | |
Commercial & industrial | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 88 | 362 | |
Unpaid Principal Balance | 316 | 646 | |
Average Recorded Investment | 236 | 1,044 | 836 |
Interest Income Recognized | 83 | 335 | 83 |
With an allowance recorded [Abstract] | |||
Recorded Investment | 155 | 194 | |
Unpaid Principal Balance | 160 | 199 | |
Related Allowance | 5 | 8 | |
Average Recorded Investment | 175 | 212 | 247 |
Interest Income Recognized | 10 | 12 | 15 |
Total [Abstract] | |||
Recorded Investment | 243 | 556 | |
Unpaid Principal Balance | 476 | 845 | |
Average Recorded Investment | 411 | 1,256 | 1,083 |
Interest Income Recognized | 93 | 347 | 98 |
Commercial, secured by real estate | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 3,897 | 6,050 | |
Unpaid Principal Balance | 4,736 | 6,735 | |
Average Recorded Investment | 5,978 | 7,070 | 12,748 |
Interest Income Recognized | 411 | 731 | 1,213 |
With an allowance recorded [Abstract] | |||
Recorded Investment | 660 | 2,611 | |
Unpaid Principal Balance | 660 | 2,908 | |
Related Allowance | 11 | 17 | |
Average Recorded Investment | 674 | 1,517 | 2,513 |
Interest Income Recognized | 36 | 18 | 64 |
Total [Abstract] | |||
Recorded Investment | 4,557 | 8,661 | |
Unpaid Principal Balance | 5,396 | 9,643 | |
Average Recorded Investment | 6,652 | 8,587 | 15,261 |
Interest Income Recognized | 447 | 749 | 1,277 |
Residential real estate | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 1,501 | 3,261 | |
Unpaid Principal Balance | 1,857 | 3,695 | |
Average Recorded Investment | 2,553 | 3,290 | 3,704 |
Interest Income Recognized | 227 | 316 | 311 |
With an allowance recorded [Abstract] | |||
Recorded Investment | 221 | 686 | |
Unpaid Principal Balance | 221 | 687 | |
Related Allowance | 9 | 27 | |
Average Recorded Investment | 230 | 404 | 528 |
Interest Income Recognized | 13 | 18 | 35 |
Total [Abstract] | |||
Recorded Investment | 1,722 | 3,947 | |
Unpaid Principal Balance | 2,078 | 4,382 | |
Average Recorded Investment | 2,783 | 3,694 | 4,232 |
Interest Income Recognized | 240 | 334 | 346 |
Consumer | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 0 | 4 | |
Unpaid Principal Balance | 0 | 4 | |
Average Recorded Investment | 1 | 10 | 12 |
Interest Income Recognized | 0 | 1 | 1 |
With an allowance recorded [Abstract] | |||
Recorded Investment | 0 | 1 | |
Unpaid Principal Balance | 0 | 1 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 0 | 3 | 20 |
Interest Income Recognized | 0 | 0 | 1 |
Total [Abstract] | |||
Recorded Investment | 0 | 5 | |
Unpaid Principal Balance | 0 | 5 | |
Average Recorded Investment | 1 | 13 | 32 |
Interest Income Recognized | 0 | 1 | 2 |
Agricultural | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
With an allowance recorded [Abstract] | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Total [Abstract] | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Other | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 0 | 184 | |
Unpaid Principal Balance | 0 | 297 | |
Average Recorded Investment | 144 | 234 | 310 |
Interest Income Recognized | 127 | 36 | 35 |
With an allowance recorded [Abstract] | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Total [Abstract] | |||
Recorded Investment | 0 | 184 | |
Unpaid Principal Balance | 0 | 297 | |
Average Recorded Investment | 144 | 234 | 310 |
Interest Income Recognized | $ 127 | $ 36 | $ 35 |
LOANS, TROUBLED DEBT RESTRUCTUR
LOANS, TROUBLED DEBT RESTRUCTURING (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)Loan | Dec. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($) | |
Loan modifications classified as troubled debt restructurings [Abstract] | |||
Number of Loans (in loan) | Loan | 3 | 3 | |
Pre-Modification Recorded Balance | $ 97,000 | $ 1,544,000 | |
Post-Modification Recorded Balance | 101,000 | 1,543,000 | |
Loans modified that subsequently defaulted | 0 | 0 | $ 0 |
Modified impaired loans without a valuation allowance | 101,000 | 4,000 | |
Modified impaired loans with valuation allowance | 0 | 1,539,000 | |
Financing Receivable, Short Term Modifications, Dollar Amount, End Of Period | 0 | 1,553,000 | |
Financing Receivable, CARES Act Section 4013 Modifications, Dollar Amount, End Of Period | 0 | 19,023,000 | |
Federal Home Loan Mortgage Corporation and Other Investors | |||
Loan modifications classified as troubled debt restructurings [Abstract] | |||
Unpaid principal balances of loans sold and serviced for the Federal Home Loan Mortgage Corporation | $ 149,382,000 | $ 137,188,000 | |
Commercial & industrial | |||
Loan modifications classified as troubled debt restructurings [Abstract] | |||
Number of Loans (in loan) | Loan | 0 | 1 | |
Pre-Modification Recorded Balance | $ 0 | $ 5,000 | |
Post-Modification Recorded Balance | $ 0 | $ 4,000 | |
Commercial, secured by real estate | |||
Loan modifications classified as troubled debt restructurings [Abstract] | |||
Number of Loans (in loan) | Loan | 0 | 1 | |
Pre-Modification Recorded Balance | $ 0 | $ 1,525,000 | |
Post-Modification Recorded Balance | $ 0 | $ 1,525,000 | |
Residential real estate | |||
Loan modifications classified as troubled debt restructurings [Abstract] | |||
Number of Loans (in loan) | Loan | 3 | 1 | |
Pre-Modification Recorded Balance | $ 97,000 | $ 14,000 | |
Post-Modification Recorded Balance | $ 101,000 | $ 14,000 | |
Consumer | |||
Loan modifications classified as troubled debt restructurings [Abstract] | |||
Number of Loans (in loan) | Loan | 0 | 0 | |
Pre-Modification Recorded Balance | $ 0 | $ 0 | |
Post-Modification Recorded Balance | $ 0 | $ 0 |
LOANS, TROUBLED DEBT RESTRUCT_2
LOANS, TROUBLED DEBT RESTRUCTURINGS, MODIFICATION TYPE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | $ 101 | $ 1,543 |
Commercial & industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 4 |
Commercial, secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 1,525 |
Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 101 | 14 |
Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Term Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 32 | 0 |
Term Modification | Commercial & industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Term Modification | Commercial, secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Term Modification | Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 32 | 0 |
Term Modification | Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Rate Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Rate Modification | Commercial & industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Rate Modification | Commercial, secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Rate Modification | Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Rate Modification | Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Interest Only | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Interest Only | Commercial & industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Interest Only | Commercial, secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Interest Only | Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Interest Only | Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Principal Forgiveness [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Principal Forgiveness [Member] | Commercial & industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Principal Forgiveness [Member] | Commercial, secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Principal Forgiveness [Member] | Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Principal Forgiveness [Member] | Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 0 |
Combination | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 69 | 1,543 |
Combination | Commercial & industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 4 |
Combination | Commercial, secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 0 | 1,525 |
Combination | Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | 69 | 14 |
Combination | Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Post-Modification Recorded Balance | $ 0 | $ 0 |
LOANS, ACTIVITY IN MORTGAGE SER
LOANS, ACTIVITY IN MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||||
Servicing Asset at Amortized Cost | $ 1,039 | $ 976 | $ 483 | $ 475 |
Amount capitalized to mortgage servicing rights | 409 | 719 | 156 | |
Amortization of mortgage servicing rights | $ (346) | $ (226) | $ (148) |
ACQUIRED CREDIT IMPAIRED LOAN_2
ACQUIRED CREDIT IMPAIRED LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | $ 1,363,939 | $ 1,293,693 |
Financial Receivable Acquired Credit Impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | 2,863 | 4,900 |
Financial Receivable Acquired Credit Impaired | Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 88 | 362 |
Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 1,612 | 2,048 |
Financial Receivable Acquired Credit Impaired | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 1,163 | 2,306 |
Financial Receivable Acquired Credit Impaired | Other loans, including deposit overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 0 | 184 |
Eaton National Bank & Trust Co. [Member] | Financial Receivable Acquired Credit Impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | 773 | 1,629 |
Eaton National Bank & Trust Co. [Member] | Financial Receivable Acquired Credit Impaired | Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 0 | 249 |
Eaton National Bank & Trust Co. [Member] | Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 310 | 601 |
Eaton National Bank & Trust Co. [Member] | Financial Receivable Acquired Credit Impaired | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 463 | 595 |
Eaton National Bank & Trust Co. [Member] | Financial Receivable Acquired Credit Impaired | Other loans, including deposit overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 0 | 184 |
BNB Bancorp, Inc [Member] | Financial Receivable Acquired Credit Impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | 739 | 865 |
BNB Bancorp, Inc [Member] | Financial Receivable Acquired Credit Impaired | Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 0 | 0 |
BNB Bancorp, Inc [Member] | Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 688 | 780 |
BNB Bancorp, Inc [Member] | Financial Receivable Acquired Credit Impaired | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 51 | 85 |
BNB Bancorp, Inc [Member] | Financial Receivable Acquired Credit Impaired | Other loans, including deposit overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 0 | 0 |
Columbus First Bancorp, Inc. | Financial Receivable Acquired Credit Impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | 952 | 1,956 |
Columbus First Bancorp, Inc. | Financial Receivable Acquired Credit Impaired | Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 87 | 112 |
Columbus First Bancorp, Inc. | Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 614 | 667 |
Columbus First Bancorp, Inc. | Financial Receivable Acquired Credit Impaired | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 251 | 1,177 |
Columbus First Bancorp, Inc. | Financial Receivable Acquired Credit Impaired | Other loans, including deposit overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 0 | 0 |
First Capital Bancshares, Inc. [Member] | Financial Receivable Acquired Credit Impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | 399 | 450 |
First Capital Bancshares, Inc. [Member] | Financial Receivable Acquired Credit Impaired | Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 1 | 1 |
First Capital Bancshares, Inc. [Member] | Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 0 | 0 |
First Capital Bancshares, Inc. [Member] | Financial Receivable Acquired Credit Impaired | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | 398 | 449 |
First Capital Bancshares, Inc. [Member] | Financial Receivable Acquired Credit Impaired | Other loans, including deposit overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans acquired | $ 0 | $ 0 |
ACQUIRED CREDIT IMPAIRED LOANS,
ACQUIRED CREDIT IMPAIRED LOANS, OUTSTANDING BALANCE AND CARRYING AMOUNT (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Outstanding balance | $ 3,769 | $ 6,128 | |
Carrying amount | 2,863 | 4,900 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | $ 116 | $ 182 | $ 480 |
ACQUIRED CREDIT IMPAIRED LOAN_3
ACQUIRED CREDIT IMPAIRED LOANS, ACCRETABLE DISCOUNT RELATED TO ACQUIRED IMPAIRED LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | $ 116 | $ 182 | $ 480 |
Reclass from nonaccretable discount to accretable discount | 266 | 401 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | $ (332) | $ (699) |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Real Estate [Roll Forward] | ||
Balance, beginning of year | $ 0 | $ 197 |
Reductions due to sales | 0 | (197) |
Balance, end of year | 0 | $ 0 |
Residential real estate in the process of foreclosure | $ 58 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Premises and equipment [Abstract] | |||
Premises and equipment, gross | $ 61,180 | $ 59,574 | |
Less accumulated depreciation | 25,795 | 24,198 | |
Premises and equipment, net | 35,385 | 35,376 | |
Depreciation charged | 1,931 | 1,834 | $ 1,770 |
Land | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | 8,512 | 7,933 | |
Buildings | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | 31,296 | 30,789 | |
Equipment | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | 17,272 | 16,431 | |
Construction in progress | |||
Premises and equipment [Abstract] | |||
Premises and equipment, gross | $ 4,100 | $ 4,421 |
LEASES (Details)
LEASES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Operating Leased Assets [Line Items] | |||
Operating Lease, Cost | $ 840 | $ 666 | |
Short-term Lease, Cost | 48 | 48 | |
Variable Lease, Cost | 4 | 10 | |
Other Lease Expense | 10 | 7 | |
Lease, Cost | 902 | 731 | $ 627 |
Operating Lease, Payments | 757 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 801 | 1,388 | $ 5,775 |
Operating Lease, Weighted Average Remaining Lease Term | 32 years 10 months 24 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | ||
Minimum annual rentals payment [Abstract] | |||
2017 | $ 598 | ||
2018 | 574 | ||
2019 | 577 | ||
2020 | 398 | ||
2021 | 256 | ||
Thereafter | 10,226 | ||
Lessee, Operating Lease, Liability, Payments, Due | 12,629 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 6,156 | ||
Operating Lease, Liability | $ 6,473 | $ 6,371 | |
Oakwood Lease [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessee, Operating Lease, Remaining Lease Term | 15 years | ||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Lessee, Operating Lease, Number Of Renewal Options | 6 | ||
Oxford Lease [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessee, Operating Lease, Remaining Lease Term | 38 years | ||
Lessee, Operating Lease, Number Of Renewal Options | 0 | ||
Other Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Minimum | Other Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessee, Operating Lease, Remaining Lease Term | 1 year | ||
Maximum [Member] | Other Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessee, Operating Lease, Remaining Lease Term | 9 years |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, CHANGES IN GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Balance, beginning of year | $ 59,221 | $ 59,221 |
Additions from acquisitions | 0 | 0 |
Balance, end of year | $ 59,221 | $ 59,221 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other intangible assets included in other assets [Abstract] | ||
Gross Intangible Assets | $ 10,867 | $ 10,482 |
Accumulated Amortization | 8,394 | 7,029 |
Net Intangible Assets | 2,473 | 3,453 |
Core deposit intangibles | ||
Other intangible assets included in other assets [Abstract] | ||
Gross Intangible Assets | 8,544 | 8,544 |
Accumulated Amortization | 7,110 | 6,067 |
Net Intangible Assets | 1,434 | 2,477 |
Mortgage servicing rights | ||
Other intangible assets included in other assets [Abstract] | ||
Gross Intangible Assets | 2,323 | 1,938 |
Accumulated Amortization | 1,284 | 962 |
Net Intangible Assets | $ 1,039 | $ 976 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, ESTIMATED AGGREGATE FUTURE AMORTIZATION EXPENSE (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Estimated aggregate future amortization expense [Abstract] | |
2017 | $ 597 |
2018 | 544 |
2019 | 422 |
2020 | 222 |
2021 | $ 46 |
AFFORDABLE HOUSING TAX CREDIT_3
AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Affordable housing tax credit investment | $ 14,950 | $ 12,000 | |
Less amortization | 2,126 | 1,320 | |
Net affordable housing tax credit investment | 12,824 | 10,680 | |
Unfunded commitment | $ 8,655 | 8,237 | |
Funding period for unfunded commitment | 13 years | ||
Tax credits and other tax benefits recognized | $ 995 | 612 | $ 387 |
Tax credit amortization expense included in provision for income taxes | $ 806 | $ 510 | $ 318 |
CERTIFICATES OF DEPOSIT (Detail
CERTIFICATES OF DEPOSIT (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Contractual maturities of time deposits [Abstract] | ||
2017 | $ 121,807 | |
2018 | 43,286 | |
2019 | 4,484 | |
2020 | 7,956 | |
2021 | 9,045 | |
Thereafter | 6,864 | |
Time deposits | 193,442 | |
Time deposits of $250,000 or more | $ 25,123 | $ 35,584 |
BORROWINGS, FUNDS BORROWED FROM
BORROWINGS, FUNDS BORROWED FROM FHLB (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Funds borrowed from the FHLB at December 31 by year of maturity | ||
Due in next twelve months | $ 5,000 | $ 12,000 |
Due in year two | 5,000 | 5,000 |
Due in year three | 0 | 5,000 |
Long-term debt | $ 10,000 | $ 22,000 |
Average rate of funds borrowed from the FHLB at December 31 by year of maturity | ||
Due in next twelve months (as a percent) | 2.97% | 2.42% |
Due in year two (as a percent) | 3.02% | 2.97% |
Due in year three (as a percent) | 0.00% | 3.02% |
Weighted average interest rate (as a percent) | 3.00% | 2.68% |
BORROWINGS, NARRATIVE (Details)
BORROWINGS, NARRATIVE (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)institution | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Pledged financial instruments for Federal Home Loan Bank | $ 303,000,000 | $ 276,000,000 |
FHLB remaining borrowing capacity | $ 186,600,000 | |
Number of financial institution (in institution) | institution | 2 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | |
Other Short-term Borrowings | $ 0 | $ 0 |
Federal Funds Rate | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Correspondent Bank Number One [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | |
Correspondent Bank Number Two [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 |
BORROWINGS, SHORT TERM DEBT (De
BORROWINGS, SHORT TERM DEBT (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 20 |
Correspondent Bank Number One [Member] | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 25 |
Correspondent Bank Number Two [Member] | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 30 |
Federal Home Loan Bank, REPO Based Advance Program [Member] | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 81.8 |
Short-Term Debt, Minimum Term | 1 day |
Short-Term Debt, Maximum Term | 1 year |
Line of Credit Facility, Expiration Date | Feb. 11, 2022 |
Federal Funds Rate | |
Short-term Debt [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
INCOME TAXES, PROVISION FOR FED
INCOME TAXES, PROVISION FOR FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Provision for federal income taxes [Abstract] | |||
Income taxes currently payable | $ 4,317 | $ 3,951 | $ 3,694 |
Deferred income tax provision | 294 | 134 | 419 |
Provision for income taxes | $ 4,611 | $ 4,085 | $ 4,113 |
INCOME TAXES, EFFECTIVE INCOME
INCOME TAXES, EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation between the statutory income tax and effective tax rate [Abstract] | |||
Statutory tax rate | 21.00% | 21.00% | 21.00% |
Increase (decrease) resulting from - | |||
Tax exempt interest | (0.70%) | (0.90%) | (1.40%) |
Tax exempt income on bank owned life insurance | (0.90%) | (1.30%) | (0.90%) |
Captive insurance premium income | (0.80%) | (0.80%) | (0.80%) |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 0.00% | (0.80%) | 0.00% |
Other – net | (0.60%) | (0.30%) | 0.00% |
Effective tax rate | 18.00% | 16.90% | 17.90% |
INCOME TAXES, DEFERRED TAX ASSE
INCOME TAXES, DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for loan losses | $ 1,156 | $ 1,203 |
Net unrealized losses on investment securities available-for-sale | 408 | 0 |
Fair value adjustment on loans acquired from mergers | 103 | 196 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 630 | 667 |
Deferred compensation | 73 | 81 |
Operating Lease, Right-of-Use Asset | 1,359 | 1,338 |
Other | 96 | 245 |
Deferred tax assets, gross | 3,825 | 3,730 |
Deferred tax liabilities: | ||
Depreciation of premises and equipment | (1,595) | (1,673) |
Amortization of intangibles | (1,518) | (1,512) |
Deferred Tax Liabilities, Prepaid Expenses | 323 | 283 |
FHLB stock dividends | (216) | (216) |
Deferred Tax Liabilities Operating Lease Liabilities | (1,359) | (1,338) |
Fair value adjustment on securities acquired from mergers | 0 | (1,156) |
Deferred tax liabilities, gross | (5,011) | (6,178) |
Net deferred tax liabilities | $ (1,186) | $ (2,448) |
INCOME TAXES, NARRATIVE (Detail
INCOME TAXES, NARRATIVE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Unrecognized interest and penalties | $ 0 | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, liability | $ 290,675 | $ 217,627 |
Commercial loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, liability | 82,578 | 24,581 |
Other loans | Fixed rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, liability | 5,196 | 14,668 |
Other loans | Adjustable rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, liability | 2,784 | 4,386 |
Unused lines of credit | Fixed rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, liability | 32,655 | 24,205 |
Unused lines of credit | Adjustable rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, liability | 150,746 | 133,073 |
Unused overdraft protection amounts on demand and NOW accounts | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, liability | 16,711 | 16,471 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, liability | $ 5 | $ 243 |
REGULATORY MATTERS, NARRATIVE (
REGULATORY MATTERS, NARRATIVE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Regulatory Assets and Liabilities, Other Disclosures [Abstract] | ||
Minimum cash reserve balance with Federal Reserve Bank | $ 15,121 | $ 20,907 |
Cash Reserve balance | 2,482 | $ 16,153 |
Dividend payable from retained earnings without affecting capital position | $ 16,145 | |
Capital Conservation Buffer, Fully Implimented | 2.50% |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Ratio of Common Equity Tier 1 Capital to risk-weighted assets | ||||
Minimum Requirement | 4.50% | |||
Minimum Requirement with Capital Conservation Buffer | 7.00% | |||
To Be Considered Well-Capitalized | 6.50% | |||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.060 | |||
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets With Capital Conservation Buffer | 8.50% | |||
Ratio of total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets | 0.080 | |||
Ratio of total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets | ||||
Minimum Requirement | 0.080 | |||
Minimum Requirement with Capital Conservation Buffer | 10.50% | |||
To Be Considered Well-Capitalized | 0.100 | |||
Leverage ratio (tier 1 capital to adjusted quarterly average total assets) | ||||
Minimum Requirement | 0.040 | |||
To Be Considered Well-Capitalized | 0.050 | |||
Regulatory Capital: | ||||
Shareholders' equity | $ 238,604 | $ 240,825 | $ 228,048 | $ 218,985 |
2021 | ||||
Regulatory Capital: | ||||
Shareholders' equity | 234,451 | 234,092 | ||
Goodwill and other intangible assets | (60,655) | (61,698) | ||
Accumulated other comprehensive (income) loss | 1,809 | (4,043) | ||
Tier 1 risk-based capital | 175,605 | 168,351 | ||
Eligible allowance for loan losses | 5,506 | 5,728 | ||
Total risk-based capital | $ 181,111 | $ 174,079 | ||
Capital Ratios: | ||||
Common Equity Tier 1 Capital to risk-weighted assets | 12.25% | 12.48% | ||
Tier 1 capital to risk-weighted assets | 0.1225 | 0.1248 | ||
Total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets | 0.1264 | 0.1291 | ||
Leverage ratio (tier 1 capital to adjusted quarterly average total assets) | 0.0958 | 0.1006 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME, CHANGES IN AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of year | $ 240,825 | $ 228,048 |
Before reclassifications | (5,613) | 3,545 |
Reclassifications | (239) | (175) |
Balance at end of year | 238,604 | 240,825 |
Unrealized Gains and Losses on Available-for-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of year | 4,348 | 857 |
Before reclassifications | (5,645) | 3,666 |
Reclassifications | (239) | (175) |
Balance at end of year | (1,536) | 4,348 |
Changes in Pension Plan Assets and Benefit Obligations | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of year | (305) | (184) |
Before reclassifications | 32 | (121) |
Reclassifications | 0 | 0 |
Balance at end of year | (273) | (305) |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of year | 4,043 | 673 |
Balance at end of year | $ (1,809) | $ 4,043 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME, RECLASSIFICATION OF AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net gains (losses) on sales of debt securities | $ (303) | $ (221) | $ 41 |
Less provision (benefit) for income taxes | (4,611) | (4,085) | $ (4,113) |
Reclassification adjustment, net of taxes | 239 | 175 | |
Unrealized Gains and Losses on Available-for-Sale Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification adjustment, net of taxes | 239 | 175 | |
Unrealized Gains and Losses on Available-for-Sale Securities | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net gains (losses) on sales of debt securities | 303 | 221 | |
Less provision (benefit) for income taxes | 64 | 46 | |
Reclassification adjustment, net of taxes | $ 239 | $ 175 |
RETIREMENT PLANS, NARRATIVE (De
RETIREMENT PLANS, NARRATIVE (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 01, 2020 | Jul. 01, 2019 | Feb. 01, 2009age_and_service | |
Defined Contribution Plan [Abstract] | ||||||
Age plus vesting service (less than, in years) | age_and_service | 65 | |||||
Employer's matching contribution to 401(k) of employees hired on or after January 1, 2009 | 50.00% | |||||
Maximum annual contribution per employee, percent | 3.00% | |||||
Minimum annual contribution for employees who received a benefit reduction under plan amendments | 5.00% | |||||
Maximum annual contribution for employees who received a benefit reduction under plan amendments | 7.00% | |||||
Defined benefit plan, minimum funded percentage | 80.00% | 80.00% | ||||
Deferred Compensation Arrangements | ||||||
Deferred Compensation Arrangements [Abstract] | ||||||
Accrued interest on deferred compensation | 8.00% | |||||
Deferred compensation liability | $ 3,002 | $ 3,176 | ||||
Qualified noncontributory defined benefit retirement plan | ||||||
Defined Contribution Plan [Abstract] | ||||||
Expected contribution by employer to noncontributory defined benefit plan | 187 | |||||
Supplemental Employee Retirement Plan | ||||||
Supplemental income plan [Abstract] | ||||||
Projected benefit obligation | $ 798 | $ 901 | ||||
Discount rate | 5.00% | 5.20% | ||||
Service cost | $ 0 | $ 0 | $ 0 | |||
Interest cost | $ 42 | $ 48 | $ 52 | |||
Qualified noncontributory defined benefit retirement plan | ||||||
Supplemental income plan [Abstract] | ||||||
Discount rate | 2.83% | 2.52% | 3.22% | |||
Service cost | $ 0 | $ 0 | $ 0 | |||
Interest cost | 52 | 63 | $ 77 | |||
Accumulated benefit obligation under nonqualified defined benefit retirement plan | 1,999 | 2,124 | ||||
Future amortization of prior service cost | 8 | |||||
Citizens National Bank | ||||||
Defined Contribution Plan [Abstract] | ||||||
Qualified noncontributory defined benefit pension plan liability | $ 128 | $ 182 |
RETIREMENT PLANS, COSTS OF RETI
RETIREMENT PLANS, COSTS OF RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
401(k) plan expense | $ 610 | $ 590 | $ 524 |
Qualified noncontributory defined benefit retirement plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan expense | $ 1,178 | $ 1,111 | $ 1,039 |
RETIREMENT PLANS, NET PERIODIC
RETIREMENT PLANS, NET PERIODIC BENEFIT COSTS (Details) - Qualified noncontributory defined benefit retirement plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 52 | 63 | 77 |
Amortization of unrecognized (gain) loss | 8 | 2 | 0 |
Net periodic pension cost | $ 60 | $ 65 | $ 77 |
RETIREMENT PLANS, CHANGES IN PR
RETIREMENT PLANS, CHANGES IN PROJECTED BENEFIT OBLIGATION (Details) - Qualified noncontributory defined benefit retirement plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in projected benefit obligation [Abstract] | |||
Projected benefit obligation at beginning of year | $ 2,124 | $ 2,045 | $ 1,900 |
Service cost | 0 | 0 | 0 |
Interest cost | 52 | 63 | 77 |
Actuarial (gain) or loss | (33) | 155 | 122 |
Benefits paid | (144) | (139) | (54) |
Projected benefit obligation at end of year | $ 1,999 | $ 2,124 | $ 2,045 |
RETIREMENT PLANS, AMOUNTS RECOG
RETIREMENT PLANS, AMOUNTS RECOGNIZED IN AOCI (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Qualified noncontributory defined benefit retirement plan | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | |||
Net actuarial (gain)/loss | $ 32 | $ (122) | $ (184) |
RETIREMENT PLANS, ASSUMPTIONS U
RETIREMENT PLANS, ASSUMPTIONS USED (Details) - Qualified noncontributory defined benefit retirement plan | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Benefit obligation: | |||
Discount rate | 2.83% | 2.52% | 3.22% |
Salary increase rate | 0.00% | 0.00% | 0.00% |
Net periodic pension cost: | |||
Discount rate | 2.52% | 3.22% | 4.22% |
Salary increase rate | 0.00% | 0.00% | 2.00% |
Amortization period in years | 20 years 1 month 28 days | 21 years 2 months 26 days | 1 year |
RETIREMENT PLANS, ESTIMATED FUT
RETIREMENT PLANS, ESTIMATED FUTURE BENEFIT PAYMENTS (Details) - Qualified noncontributory defined benefit retirement plan | Dec. 31, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions, next fiscal year | $ 0 |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2018 | 144,000 |
2019 | 144,000 |
2020 | 144,000 |
2021 | 144,000 |
2022 | 143,000 |
2023-2026 | $ 669,000 |
STOCK-BASED COMPENSATION, NARRA
STOCK-BASED COMPENSATION, NARRATIVE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period options granted to date vest ratably | 5 years | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | $ 0 | $ 73 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | $ 0 | $ 73 |
Ownership Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance (in shares) | 200,000 | ||
Ownership Incentive Plan 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance (in shares) | 450,000 |
STOCK-BASED COMPENSATION, STOCK
STOCK-BASED COMPENSATION, STOCK OPTION ACTIVITY (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | $ 0 | $ 73 |
Options | |||
Outstanding at beginning of period (in shares) | 311 | 9,904 | 13,278 |
Exercised (in shares) | (311) | (9,593) | (3,374) |
Expired (in shares) | 0 | 0 | 0 |
Outstanding at end of period (in shares) | 0 | 311 | 9,904 |
Exercisable at end of period (in shares) | 0 | 311 | 9,904 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 12.60 | $ 11.96 | $ 11.98 |
Exercised (in dollars per share) | 12.60 | 11.94 | 12.05 |
Expired (in dollars per share) | 0 | 0 | 0 |
Outstanding at end of period (in dollars per share) | 0 | 12.60 | 11.96 |
Exercisable at end of period (in dollars per share) | $ 0 | $ 12.60 | $ 11.96 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | $ 0 | $ 73 |
STOCK-BASED COMPENSATION, INFOR
STOCK-BASED COMPENSATION, INFORMATION RELATED TO STOCK OPTIONS EXERCISED (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Intrinsic value of options exercised | $ 1 | $ 46 | $ 20 |
Cash received from options exercised | 4 | 114 | 41 |
Tax benefit realized from options exercised | $ 0 | $ 5 | $ 3 |
STOCK-BASED COMPENSATION, RESTR
STOCK-BASED COMPENSATION, RESTRICTED STOCK ACTIVITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Grant Date Fair Value | |||
Compensation expense relating to restricted stock | $ 249 | $ 137 | $ 134 |
Restricted Stock Awards | |||
Shares | |||
Beginning of period (in shares) | 28,596 | 17,752 | 16,958 |
Granted (in shares) | 26,321 | 19,211 | 12,504 |
Vested (in shares) | (9,649) | (4,817) | (11,710) |
Forfeited (in shares) | (756) | (3,550) | 0 |
End of period (in shares) | 44,512 | 28,596 | 17,752 |
Weighted Average Grant Date Fair Value | |||
Beginning of period (usd per share) | $ 17.42 | $ 18.03 | $ 18.94 |
Granted (usd per share) | 16.85 | 16.87 | 16.95 |
Vested (usd per share) | 17.49 | 17.83 | 18.19 |
Forfeited (usd per share) | 16.86 | 16.9 | 0 |
End of period (usd per share) | $ 17.08 | $ 17.42 | $ 18.03 |
Compensation expense relating to restricted stock | $ 249 | $ 137 | $ 134 |
Tax benefit from compensation expense | 52 | $ 29 | $ 28 |
Restricted stock compensation costs not yet recognized | $ 605 | ||
Compensation costs not yet recognized, period for recognition | 4 years 2 months 12 days |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income | $ 20,974 | $ 20,075 | $ 18,912 |
Less allocation of earnings and dividends to participating securities | 75 | 45 | 31 |
Net income allocated to common shareholders | $ 20,899 | $ 20,030 | $ 18,881 |
Weighted average common shares outstanding, gross (in shares) | 12,635,013 | 12,943,622 | 13,100,161 |
Less average participating securities (in shares) | 45,408 | 29,345 | 21,241 |
Weighted average number of shares outstanding used in the calculation of basic earnings per common share (in shares) | 12,589,605 | 12,914,277 | 13,078,920 |
Add dilutive effect of: | |||
Stock options (in shares) | 8 | 307 | 3,973 |
Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share (in shares) | 12,589,613 | 12,914,584 | 13,082,893 |
Stock Compensation Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related parties transaction [Roll Forward] | ||
Beginning balances | $ 2,929,000 | $ 2,380,000 |
Additions | 250,000 | 1,139,000 |
Reductions | (641,000) | (590,000) |
Ending Balance | 2,125,000 | 2,929,000 |
Deposits from related parties | 3,373,000 | 3,526,000 |
Change in composition of related parties | $ (413,000) | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS, AT FAIR VALUE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | $ 308,177 | $ 209,471 | |
Other real estate owned and repossessed assets | 0 | 0 | $ 197 |
Total Loans Receivable | 1,369,445 | 1,299,421 | |
Equity securities with a readily determinable fair value, at fair value | 2,546 | 2,389 | |
30-59 Days Past Due | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Loans Receivable | 1,455 | 577 | |
60-89 Days Past Due | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Loans Receivable | 6 | 220 | |
Greater Than 90 Days | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Loans Receivable | 898 | 2,151 | |
Financial Asset, Past Due | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Loans Receivable | 2,359 | 2,948 | |
Financial Asset, Not Past Due | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Loans Receivable | 1,367,086 | 1,296,473 | |
Recurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 310,723 | 211,860 | |
Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 77,290 | 4,777 | |
Recurring fair value measurements | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 233,433 | 207,083 | |
Recurring fair value measurements | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Nonrecurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 1,011 | 3,439 | |
Impaired loans | 1,011 | 3,439 | |
Nonrecurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Impaired loans | 0 | 0 | |
Nonrecurring fair value measurements | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Impaired loans | 0 | 0 | |
Nonrecurring fair value measurements | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 1,011 | 3,439 | |
Impaired loans | 1,011 | 3,439 | |
U.S. Treasury notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 74,744 | 2,388 | |
U.S. Treasury notes | Recurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 74,744 | 2,388 | |
U.S. Treasury notes | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 74,744 | 2,388 | |
U.S. Treasury notes | Recurring fair value measurements | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 0 | 0 | |
U.S. Treasury notes | Recurring fair value measurements | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 0 | 0 | |
U.S. Agency notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 87,246 | 67,900 | |
U.S. Agency notes | Recurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 87,246 | 67,900 | |
U.S. Agency notes | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 0 | 0 | |
U.S. Agency notes | Recurring fair value measurements | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 87,246 | 67,900 | |
U.S. Agency notes | Recurring fair value measurements | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 0 | 0 | |
U.S. Agency mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 96,676 | 91,634 | |
U.S. Agency mortgage-backed securities | Recurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 96,676 | 91,634 | |
U.S. Agency mortgage-backed securities | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 0 | 0 | |
U.S. Agency mortgage-backed securities | Recurring fair value measurements | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 96,676 | 91,634 | |
U.S. Agency mortgage-backed securities | Recurring fair value measurements | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 0 | 0 | |
Non-taxable municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 9,066 | 12,933 | |
Non-taxable municipal securities | Recurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 9,066 | 12,933 | |
Non-taxable municipal securities | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 0 | 0 | |
Non-taxable municipal securities | Recurring fair value measurements | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 9,066 | 12,933 | |
Non-taxable municipal securities | Recurring fair value measurements | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 0 | 0 | |
Taxable municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 35,293 | 33,437 | |
Taxable municipal securities | Recurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 35,293 | 33,437 | |
Taxable municipal securities | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 0 | 0 | |
Taxable municipal securities | Recurring fair value measurements | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 35,293 | 33,437 | |
Taxable municipal securities | Recurring fair value measurements | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 0 | 0 | |
Mutual funds | Recurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 51 | 50 | |
Mutual funds | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 51 | 50 | |
Mutual funds | Recurring fair value measurements | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 0 | 0 | |
Mutual funds | Recurring fair value measurements | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 0 | 0 | |
Mutual Funds Measured At Net Asset Value [Member] [Domain] | Recurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 1,352 | ||
Mutual funds measured at net asset value | Recurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 1,328 | ||
Mutual funds measured at net asset value | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 1,328 | 1,352 | |
Mutual funds measured at net asset value | Recurring fair value measurements | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 0 | 0 | |
Mutual funds measured at net asset value | Recurring fair value measurements | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 0 | 0 | |
Equity securities | Recurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 1,167 | 987 | |
Equity securities | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 1,167 | 987 | |
Equity securities | Recurring fair value measurements | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 0 | 0 | |
Equity securities | Recurring fair value measurements | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities with a readily determinable fair value, at fair value | 0 | 0 | |
Corporate Bond Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 5,152 | 1,179 | |
Corporate Bond Securities | Recurring fair value measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 5,152 | 1,179 | |
Corporate Bond Securities | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 0 | 0 | |
Corporate Bond Securities | Recurring fair value measurements | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | 5,152 | 1,179 | |
Corporate Bond Securities | Recurring fair value measurements | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale, at fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS, QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS USED IN RECURRING AND NONRECURRING LEVEL 3 INPUTS (Details) - Nonrecurring fair value measurements $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,011 | $ 3,439 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,011 | 3,439 |
Impaired Loans, Fair Value Calculated Using Estimated Sales Price [Member] | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 1,352 |
Impaired Loans, Fair Value Calculated Using Disounted Cash Flows [Member] | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,011 | $ 2,087 |
Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Impaired Loans [Member] | Maximum | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale, Measurement Input | 0.0825 | 0.0825 |
Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Impaired Loans [Member] | Minimum | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale, Measurement Input | 0.0400 | 0.0400 |
Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Impaired Loans [Member] | Weighted Average | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale, Measurement Input | 0.0607 | 0.0474 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS, BY BALANCE SHEET GROUPING (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
FINANCIAL ASSETS: | ||
Debt securities, held-to-maturity | $ 23,087 | $ 24,960 |
Accrued interest receivable | 7,999 | 8,337 |
Carrying Amount | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 18,136 | 31,730 |
Debt securities, held-to-maturity | 22,972 | 24,810 |
Federal Reserve Bank stock | 4,652 | 4,652 |
Federal Home Loan Bank stock | 5,203 | 5,203 |
Loans, net | 1,363,939 | 1,293,693 |
Accrued interest receivable | 7,999 | 8,337 |
FINANCIAL LIABILITIES: | ||
Deposits | 1,628,819 | 1,455,423 |
Long-term debt | 10,000 | 22,000 |
Accrued interest payable | 277 | 452 |
Fair Value | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 18,136 | 31,730 |
Debt securities, held-to-maturity | 23,087 | 24,960 |
Federal Reserve Bank stock | 4,652 | 4,652 |
Federal Home Loan Bank stock | 5,203 | 5,203 |
Loans, net | 1,333,840 | 1,252,642 |
Accrued interest receivable | 7,999 | 8,337 |
FINANCIAL LIABILITIES: | ||
Deposits | 1,630,158 | 1,458,413 |
Long-term debt | 10,292 | 22,595 |
Accrued interest payable | 277 | 452 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 18,136 | 31,730 |
Debt securities, held-to-maturity | 0 | 0 |
Federal Reserve Bank stock | 4,652 | 4,652 |
Federal Home Loan Bank stock | 5,203 | 5,203 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
FINANCIAL LIABILITIES: | ||
Deposits | 1,435,487 | 1,212,903 |
Long-term debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 0 | 0 |
Debt securities, held-to-maturity | 0 | 0 |
Federal Reserve Bank stock | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 7,999 | 8,337 |
FINANCIAL LIABILITIES: | ||
Deposits | 194,671 | 245,510 |
Long-term debt | 10,292 | 22,595 |
Accrued interest payable | 277 | 452 |
Significant Unobservable Inputs (Level 3) | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 0 | 0 |
Debt securities, held-to-maturity | 23,087 | 24,960 |
Federal Reserve Bank stock | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans, net | 1,333,840 | 1,252,642 |
Accrued interest receivable | 0 | 0 |
FINANCIAL LIABILITIES: | ||
Deposits | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS: | ||||
Equity securities with a readily determinable fair value, at fair value | $ 2,546 | $ 2,389 | ||
Other assets, net | 21,246 | 17,027 | ||
TOTAL ASSETS | 1,903,629 | 1,745,884 | ||
Liabilities | 1,665,025 | 1,505,059 | ||
Shareholders' equity | 238,604 | 240,825 | $ 228,048 | $ 218,985 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,903,629 | 1,745,884 | ||
Parent Company | ||||
ASSETS: | ||||
Cash on deposit with subsidiary | 657 | 3,648 | ||
Cash | 451 | 175 | ||
Equity securities with a readily determinable fair value, at fair value | 1,156 | 1,001 | ||
Investment in subsidiaries | 236,401 | 235,857 | ||
Other assets, net | 180 | 164 | ||
TOTAL ASSETS | 238,845 | 240,845 | ||
Liabilities | 241 | 20 | ||
Shareholders' equity | 238,604 | 240,825 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 238,845 | $ 240,845 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION - CONDENSED STATEMENTS OF INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income: | |||
Interest and dividends | $ 61,177 | $ 63,780 | $ 65,194 |
Net gain on sales of securities | 303 | 221 | (41) |
INCOME BEFORE INCOME TAXES | 25,585 | 24,160 | 23,025 |
PROVISION FOR INCOME TAXES | 4,611 | 4,085 | 4,113 |
NET INCOME | 20,974 | 20,075 | 18,912 |
Parent Company | |||
Income: | |||
Dividends from subsidiaries | 15,820 | 12,070 | 18,300 |
Interest and dividends | 34 | 29 | 31 |
Other Income | 155 | 147 | 215 |
Total income | 16,009 | 12,246 | 18,546 |
Total expenses | 1,764 | 1,326 | 1,369 |
INCOME BEFORE INCOME TAXES | 14,245 | 10,920 | 17,177 |
PROVISION FOR INCOME TAXES | (333) | (404) | (222) |
Equity in undistributed income of subsidiaries | 6,396 | 8,751 | 1,513 |
NET INCOME | $ 20,974 | $ 20,075 | $ 18,912 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 20,974 | $ 20,075 | $ 18,912 |
Adjustments for non-cash items - | |||
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | 17,821 | 13,678 | 21,968 |
Payments to Acquire Debt Securities, Available-for-sale | 16 | 369 | 367 |
Cash flows from investing activities: | |||
Payments to Acquire Debt Securities, Available-for-sale | 16 | 369 | 367 |
Proceeds from sales of equity securities | 0 | 967 | 398 |
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES | (175,219) | (80,051) | 9,056 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 434 | 401 | 446 |
Payments to repurchase common stock | (8,310) | (1,872) | (6,834) |
Cash dividends paid on common stock | (9,720) | (9,448) | (9,028) |
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES | 143,804 | 77,338 | (30,299) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 31,730 | 20,765 | 20,040 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 18,136 | 31,730 | 20,765 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 20,974 | 20,075 | 18,912 |
Adjustments for non-cash items - | |||
Increase in undistributed income of subsidiaries | (6,396) | (8,751) | (1,513) |
Other, net | 299 | (88) | 476 |
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | 14,877 | 11,236 | 17,875 |
Payments to Acquire Debt Securities, Available-for-sale | 0 | 346 | 337 |
Cash flows from investing activities: | |||
Payments to Acquire Debt Securities, Available-for-sale | 0 | 346 | 337 |
Proceeds from sales of equity securities | 0 | 463 | 397 |
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES | 0 | 117 | 60 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 434 | 401 | 446 |
Payments to repurchase common stock | (8,310) | (1,872) | (6,834) |
Cash dividends paid on common stock | (9,720) | (9,448) | (9,028) |
Other | 4 | 114 | 41 |
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES | (17,592) | (10,805) | (15,375) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (2,715) | 548 | 2,560 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 3,823 | 3,275 | 715 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 1,108 | $ 3,823 | $ 3,275 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Subsequent Event [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 20 |
Line of Credit Facility, Expiration Period | 12 months |
Line of Credit Facility, Initiation Date | Feb. 8, 2022 |