Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-32897 | |
Entity Registrant Name | UNITED SECURITY BANCSHARES | |
Entity Tax Identification Number | 91-2112732 | |
Entity Address, Address Line One | 2126 Inyo Street | |
Entity Address, City or Town | Fresno | |
Entity Address, State or Province | CA | |
Entity Incorporation, State or Country Code | CA | |
Entity Address, Postal Zip Code | 93721 | |
City Area Code | 559 | |
Local Phone Number | 248-4943 | |
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 Common Stock, Shares Outstanding | 17,049,061 | |
Entity Central Index Key | 0001137547 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets _ (
Consolidated Balance Sheets – (unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | ||
Cash and Due from Banks [Abstract] | ||||
Cash and noninterest-bearing deposits in other banks | $ 37,972 | $ 31,057 | ||
Due from Federal Reserve Bank ("FRB") | 88,060 | 188,162 | ||
Cash and cash equivalents | 126,032 | 219,219 | ||
Investment securities (at fair value) | ||||
Available-for-sale ("AFS") securities | 208,560 | 178,902 | ||
Marketable equity securities | 3,287 | 3,744 | ||
Total investment securities | 211,847 | 182,646 | ||
Loans | ||||
Loans | 960,549 | 869,314 | ||
Unearned fees and unamortized loan origination costs - net | 1,617 | 2,219 | ||
Allowance for credit losses | (10,063) | (9,333) | ||
Net loans | 952,103 | 862,200 | ||
Premises and equipment - net | 9,485 | 8,950 | ||
Accrued interest receivable | 8,466 | 7,530 | ||
Other real estate owned | 4,582 | 4,582 | ||
Goodwill | 4,488 | 4,488 | ||
Deferred tax assets - net | 11,956 | 3,615 | ||
Cash surrender value of life insurance | 22,680 | 22,338 | ||
Operating lease right-of-use assets | 2,135 | 2,594 | ||
Other assets | 15,478 | 12,782 | ||
Total assets | 1,369,252 | 1,330,944 | ||
Deposits | ||||
Non-interest-bearing | 517,230 | 476,749 | ||
Interest-bearing | 723,588 | 711,357 | ||
Total deposits | 1,240,818 | 1,188,106 | ||
Operating lease liabilities | 2,245 | 2,705 | ||
Other liabilities | 8,805 | 8,737 | ||
Junior subordinated debentures (at fair value) | 10,305 | 11,189 | ||
Total liabilities | 1,262,173 | 1,210,737 | ||
Shareholders' Equity | ||||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,046,676 at September 30, 2022 and 17,028,239 at December 31, 2021 | 59,924 | 59,636 | ||
Retained earnings | 66,465 | 61,745 | ||
Accumulated other comprehensive loss | (19,310) | (1,174) | ||
Total shareholders' equity | 107,079 | [1] | 120,207 | [2] |
Total liabilities and shareholders' equity | $ 1,369,252 | $ 1,330,944 | ||
[1](8) Excludes 29,449 unvested restricted shares[2](5) Excludes 27,949 unvested restricted shares |
Consolidated Balance Sheets __2
Consolidated Balance Sheets – (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value (in usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares, issued (in shares) | 17,046,676 | 17,028,239 |
Common stock, shares, outstanding (in shares) | 17,046,676 | 17,028,239 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest Income: | ||||
Interest and fees on loans | $ 11,514 | $ 9,163 | $ 30,363 | $ 25,942 |
Interest on investment securities | 1,322 | 650 | 3,117 | 1,691 |
Interest on deposits in FRB | 683 | 64 | 1,023 | 168 |
Total interest income | 13,519 | 9,877 | 34,503 | 27,801 |
Interest Expense: | ||||
Interest on deposits | 679 | 496 | 1,702 | 1,391 |
Interest on other borrowed funds | 110 | 44 | 224 | 136 |
Total interest expense | 789 | 540 | 1,926 | 1,527 |
Net Interest Income | 12,730 | 9,337 | 32,577 | 26,274 |
Provision for Credit Losses | 607 | 453 | 1,217 | 1,654 |
Net Interest Income after Provision for Credit Losses | 12,123 | 8,884 | 31,360 | 24,620 |
Noninterest Income: | ||||
Customer service fees | 899 | 745 | 2,328 | 2,094 |
Increase in cash surrender value of bank-owned life insurance | 89 | 139 | 343 | 408 |
Unrealized loss on fair value of marketable equity securities | (149) | (14) | (458) | (75) |
Loss on fair value of junior subordinated debentures | (600) | (35) | (2,469) | (691) |
Gain on sale of investment securities | 0 | 0 | 30 | 0 |
(Loss) gain on sale of assets | 0 | (5) | 0 | 8 |
Other | 153 | 100 | 1,015 | 349 |
Total noninterest income | 392 | 930 | 789 | 2,093 |
Noninterest Expense: | ||||
Salaries and employee benefits | 2,965 | 2,888 | 8,791 | 8,804 |
Occupancy expense | 923 | 1,013 | 2,551 | 2,705 |
Data processing | 215 | 147 | 475 | 382 |
Professional fees | 1,089 | 833 | 2,957 | 2,524 |
Regulatory assessments | 212 | 258 | 630 | 547 |
Director fees | 110 | 91 | 345 | 275 |
Correspondent bank service charges | 23 | 22 | 74 | 65 |
Net cost on operation and sale of OREO | 33 | 24 | 27 | 67 |
Other | 641 | 888 | 1,755 | 1,964 |
Total noninterest expense | 6,211 | 6,164 | 17,605 | 17,333 |
Income Before Provision for Taxes | 6,304 | 3,650 | 14,544 | 9,380 |
Provision for Taxes on Income | 1,837 | 1,039 | 4,199 | 2,653 |
Net Income | $ 4,467 | $ 2,611 | $ 10,345 | $ 6,727 |
Net Income per common share | ||||
Basic (in usd per share) | $ 0.26 | $ 0.15 | $ 0.61 | $ 0.40 |
Diluted (in usd per share) | $ 0.26 | $ 0.15 | $ 0.61 | $ 0.40 |
Weighted average shares on which net income per common shares were based | ||||
Basic (in shares) | 17,042,479 | 17,010,288 | 17,036,460 | 17,010,236 |
Diluted (in shares) | 17,063,947 | 17,035,533 | 17,057,638 | 17,027,671 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 4,467 | $ 2,611 | $ 10,345 | $ 6,727 |
Unrealized holdings loss on debt securities | (8,799) | (60) | (29,232) | (307) |
Unrealized gains on unrecognized post-retirement costs | 22 | 24 | 67 | 74 |
Unrealized gain (loss) on junior subordinated debentures | 825 | (8) | 3,419 | 317 |
Other comprehensive (loss) income, before tax | (7,952) | (44) | (25,746) | 84 |
Tax benefit provision related to debt securities | 2,601 | 18 | 8,641 | 91 |
Tax expense related to unrecognized post-retirement costs | (7) | (7) | (20) | (22) |
Tax expense (benefit) related to junior subordinated debentures | (243) | 3 | (1,011) | (93) |
Total other comprehensive (loss) income | (5,601) | (30) | (18,136) | 60 |
Comprehensive (loss) income | $ (1,134) | $ 2,581 | $ (7,791) | $ 6,787 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Unvested restricted shares (in shares) | 11,924 | |||||
Beginning balance (in shares) at Dec. 31, 2020 | [1] | 17,009,883 | ||||
Beginning balance at Dec. 31, 2020 | [1] | $ 117,807 | $ 59,397 | $ 59,138 | $ (728) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | (55) | (55) | ||||
Dividends payable | (1,876) | (1,876) | ||||
Restricted stock units released (in shares) | 405 | |||||
Stock-based compensation expense | 46 | $ 46 | ||||
Net Income | 1,411 | 1,411 | ||||
Ending balance (in shares) at Mar. 31, 2021 | [2] | 17,010,288 | ||||
Ending balance at Mar. 31, 2021 | [2] | 117,333 | $ 59,443 | 58,673 | (783) | |
Beginning balance (in shares) at Dec. 31, 2020 | [1] | 17,009,883 | ||||
Beginning balance at Dec. 31, 2020 | [1] | 117,807 | $ 59,397 | 59,138 | (728) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 60 | |||||
Net Income | 6,727 | |||||
Ending balance (in shares) at Sep. 30, 2021 | [3] | 17,010,288 | ||||
Ending balance at Sep. 30, 2021 | [3] | $ 119,129 | $ 59,549 | 60,248 | (668) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Unvested restricted shares (in shares) | 41,424 | |||||
Dividends payable (in usd per share) | $ 0.11 | |||||
Beginning balance (in shares) at Mar. 31, 2021 | [2] | 17,010,288 | ||||
Beginning balance at Mar. 31, 2021 | [2] | $ 117,333 | $ 59,443 | 58,673 | (783) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 145 | 145 | ||||
Dividends payable | (1,870) | (1,870) | ||||
Stock-based compensation expense | 53 | $ 53 | ||||
Net Income | 2,705 | 2,705 | ||||
Ending balance (in shares) at Jun. 30, 2021 | [4] | 17,010,288 | ||||
Ending balance at Jun. 30, 2021 | [4] | $ 118,366 | $ 59,496 | 59,508 | (638) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Unvested restricted shares (in shares) | 41,424 | |||||
Dividends payable (in usd per share) | $ 0.11 | |||||
Other comprehensive income (loss) | $ (30) | (30) | ||||
Dividends payable | (1,871) | (1,871) | ||||
Stock-based compensation expense | 53 | $ 53 | ||||
Net Income | 2,611 | 2,611 | ||||
Ending balance (in shares) at Sep. 30, 2021 | [3] | 17,010,288 | ||||
Ending balance at Sep. 30, 2021 | [3] | $ 119,129 | $ 59,549 | 60,248 | (668) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Unvested restricted shares (in shares) | 41,424 | |||||
Dividends payable (in usd per share) | $ 0.11 | |||||
Other comprehensive income (loss) | $ (506) | (506) | ||||
Dividends payable | (1,872) | (1,872) | ||||
Restricted stock units released (in shares) | 17,951 | |||||
Tax benefit from RSUs released | (10) | $ (10) | ||||
Director stock grant | 44 | 44 | ||||
Stock-based compensation expense | 52 | $ 52 | ||||
Net Income | $ 3,370 | 3,370 | ||||
Ending balance (in shares) at Dec. 31, 2021 | 17,028,239 | 17,028,239 | [5] | |||
Ending balance at Dec. 31, 2021 | [5] | $ 120,207 | $ 59,635 | 61,746 | (1,174) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Unvested restricted shares (in shares) | 27,949 | |||||
Dividends payable (in usd per share) | $ 0.11 | |||||
Other comprehensive income (loss) | $ (7,300) | (7,300) | ||||
Dividends payable | (1,874) | (1,874) | ||||
Restricted stock units released (in shares) | 6,168 | |||||
Tax benefit from RSUs released | (1) | $ (1) | ||||
Director stock grant | 48 | 48 | ||||
Stock-based compensation expense | 53 | $ 53 | ||||
Net Income | 2,443 | 2,443 | ||||
Ending balance (in shares) at Mar. 31, 2022 | [6] | 17,034,407 | ||||
Ending balance at Mar. 31, 2022 | [6] | $ 113,576 | $ 59,735 | 62,315 | (8,474) | |
Beginning balance (in shares) at Dec. 31, 2021 | 17,028,239 | 17,028,239 | [5] | |||
Beginning balance at Dec. 31, 2021 | [5] | $ 120,207 | $ 59,635 | 61,746 | (1,174) | |
Ending balance (in shares) at Jun. 30, 2022 | [7] | 17,040,549 | ||||
Ending balance at Jun. 30, 2022 | [7] | $ 110,001 | $ 59,835 | 63,875 | (13,709) | |
Beginning balance (in shares) at Dec. 31, 2021 | 17,028,239 | 17,028,239 | [5] | |||
Beginning balance at Dec. 31, 2021 | [5] | $ 120,207 | $ 59,635 | 61,746 | (1,174) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | (18,136) | |||||
Net Income | $ 10,345 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 17,046,676 | 17,046,676 | [8] | |||
Ending balance at Sep. 30, 2022 | [8] | $ 107,079 | $ 59,924 | 66,465 | (19,310) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Unvested restricted shares (in shares) | 26,949 | |||||
Dividends payable (in usd per share) | $ 0.11 | |||||
Beginning balance (in shares) at Mar. 31, 2022 | [6] | 17,034,407 | ||||
Beginning balance at Mar. 31, 2022 | [6] | $ 113,576 | $ 59,735 | 62,315 | (8,474) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | (5,235) | (5,235) | ||||
Dividends payable | (1,875) | (1,875) | ||||
Restricted stock units released (in shares) | 6,142 | |||||
Director stock grant | 47 | $ 47 | ||||
Stock-based compensation expense | 53 | $ 53 | ||||
Net Income | 3,435 | 3,435 | ||||
Ending balance (in shares) at Jun. 30, 2022 | [7] | 17,040,549 | ||||
Ending balance at Jun. 30, 2022 | [7] | $ 110,001 | $ 59,835 | 63,875 | (13,709) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Unvested restricted shares (in shares) | 26,949 | |||||
Dividends payable (in usd per share) | $ 0.11 | |||||
Other comprehensive income (loss) | $ (5,601) | (5,601) | ||||
Dividends payable | (1,877) | (1,877) | ||||
Restricted stock units released (in shares) | 6,127 | |||||
Director stock grant | 44 | $ 44 | ||||
Stock-based compensation expense | 45 | $ 45 | ||||
Net Income | $ 4,467 | 4,467 | ||||
Ending balance (in shares) at Sep. 30, 2022 | 17,046,676 | 17,046,676 | [8] | |||
Ending balance at Sep. 30, 2022 | [8] | $ 107,079 | $ 59,924 | $ 66,465 | $ (19,310) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Unvested restricted shares (in shares) | 29,449 | |||||
Dividends payable (in usd per share) | $ 0.11 | |||||
[1](1) Excludes 11,924 unvested restricted shares[2](2) Excludes 41,424 unvested restricted shares[3](4) Excludes 41,424 unvested restricted shares[4](3) Excludes 41,424 unvested restricted shares[5](5) Excludes 27,949 unvested restricted shares[6](6) Excludes 26,949 unvested restricted shares[7](7) Excludes 26,949 unvested restricted shares[8](8) Excludes 29,449 unvested restricted shares |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Stockholders' Equity [Abstract] | ||||||||
Unvested restricted shares (in shares) | 29,449 | 26,949 | 26,949 | 27,949 | 41,424 | 41,424 | 41,424 | 11,924 |
Dividends payable (in usd per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 10,345 | $ 6,727 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Provision for credit losses | 1,217 | 1,654 |
Depreciation and amortization | 965 | 1,058 |
Amortization of operating lease right-of-use assets | (459) | (115) |
Amortization of premium/discount on investment securities, net | 500 | 729 |
Gain on sale of investment securities | (30) | 0 |
Increase in accrued interest receivable | (936) | (82) |
Increase (decrease) in accrued interest payable | 19 | (2) |
Increase in accounts payable and accrued liabilities | 192 | 559 |
Decrease (increase) in unearned fees and unamortized loan origination costs, net | 579 | (2,241) |
Decrease (increase) in income taxes receivable | 104 | (173) |
Unrealized loss on marketable equity securities | 458 | 75 |
Stock-based compensation expense | 288 | 151 |
Benefit (provision) for deferred income taxes | 281 | (110) |
Loss on sale of other real estate owned | 0 | 1 |
Increase in cash surrender value of bank-owned life insurance | (343) | (408) |
Loss on fair value option of junior subordinated debentures | 2,469 | 691 |
Net (increase) decrease in other assets | (622) | 367 |
Net cash provided by operating activities | 15,027 | 8,881 |
Cash Flows From Investing Activities: | ||
Purchase of correspondent bank stock | (2,432) | (8) |
Purchases of available-for-sale securities | (81,762) | (99,788) |
Principal payments of available-for-sale securities | 6,726 | 19,363 |
Cash proceeds from sale of investment securities | 15,676 | 0 |
Net increase in loans | (91,700) | (153,558) |
Cash proceeds from sales of other real estate owned | 0 | 251 |
Investment in limited partnership | (311) | (248) |
Purchase of bank-owned life insurance | 0 | (920) |
Capital expenditures of premises and equipment | (1,500) | (1,061) |
Net cash used in investing activities | (155,303) | (235,969) |
Cash Flows From Financing Activities: | ||
Net increase in demand deposits and savings accounts | 45,316 | 189,191 |
Net increase in time deposits | 7,397 | 8,873 |
Dividends on common stock | (5,624) | (5,617) |
Net cash provided by financing activities | 47,089 | 192,447 |
Net decrease in cash and cash equivalents | (93,187) | (34,641) |
Cash and cash equivalents at beginning of period | 219,219 | 294,069 |
Cash and cash equivalents at end of period | $ 126,032 | $ 259,428 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting and Reporting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting and Reporting Policies | Organization and Summary of Significant Accounting and Reporting Policies The consolidated financial statements include the accounts of United Security Bancshares (Company or USB) and its wholly owned subsidiary United Security Bank (Bank). Intercompany accounts and transactions have been eliminated in consolidation. These unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information on a basis consistent with the accounting policies reflected in the audited consolidated financial statements of the Company included in its 2021 Annual Report on Form 10-K. These interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of a normal, recurring nature) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for any other interim period or for the year as a whole. Impact of New Financial Accounting Standards : In June 2016, FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326). The FASB is issuing this Update to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The Update requires enhanced disclosures and judgments in estimating credit losses and also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This original amendment was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In October 2019 FASB unanimously approved a vote to delay the effective date of this Standard to be effective for fiscal years beginning after December 15, 2022. The Company has formed a project team that is responsible for oversight of the Company’s implementation strategy for compliance with provisions of the new standard (current expected credit losses or CECL). An external provider specializing in community bank loss driver and CECL reserving model design as well as other related consulting services has been retained, and the Company continues to evaluate potential CECL modeling alternatives. As part of this process, the Company has determined potential loan pool segmentation and sub-segmentation under CECL, as well as evaluated the key economic loss drivers for each segment. The Company has begun to generate and evaluate model scenarios under CECL in tandem with its current reserving processes for interim and annual reporting. While the Company is currently unable to reasonably estimate the impact of adopting this new guidance, management expects the impact of adoption will be significantly influenced by the composition and quality of the Company’s loan portfolio as well as the economic conditions as of the date of adoption. The Company also anticipates significant changes to the processes and procedures for calculating the reserve for credit losses and continues to evaluate the potential impact on the Company's consolidated financial statements. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the provisions of this ASU and its effects on our consolidated financial statements. The Company anticipates impacts to junior subordinated debt and floating rate loans tied to LIBOR. In March 2022, FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures. This ASU provides new guidance on the treatment of troubled debt restructurings in relation to the adoption of the CECL model for the accounting for credit losses (see note above regarding ASU 2016-13). Previous accounting guidance related to troubled debt restructurings is eliminated and new disclosure requirements are adopted in regard to loan refinancing and restructurings made to borrowers experiencing financial difficulties under the assumption that the CECL model will capture credit losses related to trouble debt restructurings. New disclosures regarding gross write-offs for financing receivables by year of origination are also included in the update. This update will be incorporated along with the implementation of CECL and the Company is currently evaluating the impact this update will have on its consolidated financial statements. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Following is a comparison of the amortized cost and fair value of securities available-for-sale, as of September 30, 2022 and December 31, 2021: (in 000's) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) September 30, 2022 Securities available-for-sale: U.S. Government agencies $ 8,784 $ 11 $ (44) $ 8,751 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 113,893 3 (15,374) 98,522 U.S. Treasury securities 29,994 — (844) 29,150 Municipal bonds 50,727 — (11,025) 39,702 Corporate bonds 34,728 4 (2,297) 32,435 Total securities available for sale $ 238,126 $ 18 $ (29,584) $ 208,560 (in 000's) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) December 31, 2021 Securities available-for-sale: U.S. Government agencies $ 33,206 $ 260 $ (90) $ 33,376 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 64,880 184 (329) 64,735 U.S. Treasury securities 15,186 1 — 15,187 Asset-backed securities 4,092 38 — 4,130 Municipal bonds 50,872 86 (906) 50,052 Corporate bonds 11,000 429 (7) 11,422 Total securities available for sale $ 179,236 $ 998 $ (1,332) $ 178,902 The amortized cost and fair value of securities available for sale at September 30, 2022, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed pay downs. September 30, 2022 Amortized Cost Fair Value (Carrying Amount) (in 000's) Due in one year or less $ 9,975 $ 9,971 Due after one year through five years 39,245 36,924 Due after five years through ten years 65,056 54,911 Due after ten years 9,956 8,232 Collateralized mortgage obligations 113,894 98,522 $ 238,126 $ 208,560 Proceeds and gross realized gains (losses) from sales of investment securities for the periods ended September 30, 2022 and 2021 are shown below: Available-for-Sale Securities (in 000's) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Proceeds from sales or calls 15,676 — Gross realized gains from sales or calls 78 — Gross realized losses from sales or calls (48) — As market interest rates or risks associated with a security’s issuer continue to change and impact the actual or perceived values of investment securities, the Company may determine that selling these securities and using proceeds to purchase securities that better fit with the Company’s current risk profile is appropriate and beneficial to the Company. There were no other-than-temporary impairment losses for the three and nine month periods ended September 30, 2022 and September 30, 2021. At September 30, 2022, available-for-sale securities with an amortized cost of approximately $80.4 million (fair value of $69.8 million) were pledged as collateral for FHLB borrowings, securitized deposits, and public funds balances. The following summarizes temporarily impaired investment securities: (in 000's) Less than 12 Months 12 Months or More Total September 30, 2022 Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Securities available for sale: U.S. Government agencies $ — $ — $ 6,327 $ (44) $ 6,327 $ (44) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 71,123 (8,533) 27,093 (6,841) 98,216 (15,374) Corporate bonds 29,600 (2,297) — — 29,600 (2,297) Municipal bonds 7,986 (2,298) 31,716 (8,728) 39,702 (11,026) U.S. Treasury securities 29,151 (843) — — 29,151 (843) Total impaired securities $ 137,860 $ (13,971) $ 65,136 $ (15,613) $ 202,996 $ (29,584) December 31, 2021 Securities available for sale: U.S. Government agencies $ — $ — $ 9,699 $ (90) $ 9,699 $ (90) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 37,258 (329) 23 — 37,281 (329) Corporate bonds 5,993 (7) — — 5,993 (7) Municipal bonds 39,551 (896) 228 (10) 39,779 (906) U.S. Treasury securities 7,416 — — — 7,416 — Total impaired securities $ 90,218 $ (1,232) $ 9,950 $ (100) $ 100,168 $ (1,332) Temporarily impaired securities at September 30, 2022, were comprised of forty-six municipal bonds, fifty-three U.S. government sponsored entities and agencies collateralized by mortgage obligations securities, nine corporate bonds, four U.S. government agency securities, and four U.S. treasury securities. The Company evaluates investment securities for other-than-temporary impairment (OTTI) at least quarterly, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities classified as available-for-sale or held-to-maturity are generally evaluated for OTTI under ASC Topic 320, Investments – Debt and Equity Instruments . The Company considers many factors in determining OTTI, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than- temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to the Company at the time of the evaluation. Additionally, OTTI occurs when the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If the Company intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary-impairment shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the other-than-temporary-impairment shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total other-than-temporary-impairment related to the credit loss is recognized in earnings, and is determined based on the difference between the present value of cash flows expected to be collected and the current amortized cost of the security. The amount of the total other-than-temporary-impairment related to other factors shall be recognized in other comprehensive (loss) income, net of applicable taxes. The previous amortized cost basis less the other-than-temporary-impairment recognized in earnings shall become the new amortized cost basis of the investment. Management periodically evaluates each available-for-sale investment security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary. At September 30, 2022, the decline in fair value of the securities available for sale is attributable to changes in interest rates, and not credit quality. Because the Company does not intend to sell these impaired securities, and it is more likely than not that it will not be required to sell these securities before its anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2022. During the nine months ended September 30, 2022 and 2021, the Company recognized $458,000 and $75,000 of unrealized holding losses on marketable equity securities, related to one mutual fund, in the consolidated statements of income. During the quarters ended September 30, 2022 and September 30, 2021, the Company recognized $149,000 and $14,000 of unrealized holding losses, respectively, related to the same mutual fund. The Company had no held-to-maturity or trading securities at September 30, 2022 or December 31, 2021. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Loans | Loans Loans are comprised of the following: (in 000's) September 30, 2022 December 31, 2021 Commercial and industrial: Commercial and business loans $ 62,333 $ 42,194 Government program loans 88 3,310 Total commercial and industrial 62,421 45,504 Real estate mortgage: Commercial real estate 382,607 331,050 Residential mortgages 250,091 226,926 Home improvement and home equity loans 52 80 Total real estate mortgage 632,750 558,056 Real estate construction and development 161,571 154,270 Agricultural 57,296 60,239 Installment and student loans 46,511 51,245 Total loans $ 960,549 $ 869,314 The Company's directly originated loans are predominantly in the San Joaquin Valley and the greater Oakhurst/East Madera County area, as well as the Campbell area of Santa Clara County. Although the Company purchases residential mortgage loans and participates in loans with other financial institutions, they are primarily in the state of California. Commercial and industrial loans represent 6.5% of total loans at September 30, 2022 and are generally made to support the ongoing operations of small-to-medium sized commercial businesses. Commercial and industrial loans have a high degree of industry diversification and provide working capital, financing for the purchase of manufacturing plants and equipment, or funding for growth and general expansion of businesses. A substantial portion of commercial and industrial loans are secured by accounts receivable, inventory, leases, or other collateral including real estate. The remainder are unsecured; however, extensions of credit are predicated upon the financial capacity of the borrower. Repayment of commercial loans is generally from the cash flow of the borrower. Included within the balance of Commercial and industrial loans is $14,000 in Paycheck Protection Program ("PPP") loans administrated by the SBA. PPP loans have a two Real estate mortgage loans, representing 65.9% of total loans at September 30, 2022, are typically secured by either trust deeds on primarily commercial property or by trust deeds on single family residences. Repayment of real estate mortgage loans generally comes from the cash flow of the borrower and or guarantor(s). • Commercial real estate mortgage loans comprise the largest segment of this loan category and are available on all types of income producing and non-income producing commercial properties, including: office buildings, shopping centers; apartments and motels; owner occupied buildings; manufacturing facilities and more. Commercial real estate mortgage loans can also be used to refinance existing debt. Commercial real estate loans are made under the premise that the loan will be repaid from the borrower's business operations, rental income associated with the real property, or personal assets. • Residential mortgage loans are provided to individuals to finance or refinance single-family residences. Residential mortgages are not a primary business line offered by the Company, and a majority are conventional mortgages that were purchased as a pool. • Home Improvement and Home Equity loans comprise a relatively small portion of total real estate mortgage loans. Home equity loans are generally secured by junior trust deeds, but may be secured by 1 st trust deeds. Real estate construction and development loans, representing 16.8% of total loans at September 30, 2022, consist of loans for residential and commercial construction projects, as well as land acquisition and development, or land held for future development. Loans in this category are secured by real estate including improved and unimproved land, as well as single-family residential, multi-family residential, and commercial properties in various stages of completion. All real estate loans have established equity requirements. Repayment on construction loans generally comes from long-term mortgages with other lending institutions obtained at completion of the project or from the sale of the constructed homes to individuals. Agricultural loans represent 6.0% of total loans at September 30, 2022 and are generally secured by land, equipment, inventory and receivables. Repayment is from the cash flow of the borrower. Installment loans, including student loans, represent 4.8% of total loans at September 30, 2022 and generally consist of student loans, loans to individuals for household, family and other personal expenditures, automobiles or other consumer items. See "Note 4 - Student Loans" for specific information on the student loan portfolio. In the normal course of business, the Company is party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. At September 30, 2022 and December 31, 2021, these financial instruments include commitments to extend credit of $164.0 million and $239.1 million, respectively, and standby letters of credit of $1.7 million at both period ends. These instruments involve elements of credit risk in excess of the amount recognized on the consolidated balance sheet. The contract amounts of these instruments reflect the extent of the involvement the Company has in off-balance sheet financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies as it does for on-balance sheet instruments. 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. Substantially all of these commitments are at floating interest rates based on the Prime rate. Commitments generally have fixed expiration dates. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management's credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate, and income-producing properties. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Past Due Loans The Company monitors delinquency and potential problem loans on an ongoing basis through weekly reports to the Loan Committee and monthly reports to the Board of Directors. The following is a summary of delinquent loans at September 30, 2022 (in 000's): September 30, 2022 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — $ 62,333 $ 62,333 $ — Government program loans — — — — 88 88 — Total commercial and industrial — — — — 62,421 62,421 — Commercial real estate loans — — — — 382,607 382,607 — Residential mortgages — — — — 250,091 250,091 — Home improvement and home equity loans 9 — — 9 43 52 — Total real estate mortgage 9 — — 9 632,741 632,750 — Real estate construction and development loans — — 9,021 9,021 152,550 161,571 — Agricultural loans — — 130 130 57,166 57,296 — Installment and student loans 585 56 — 641 45,870 46,511 — Total loans $ 594 $ 56 $ 9,151 $ 9,801 $ 950,748 $ 960,549 $ — The following is a summary of delinquent loans at December 31, 2021 (in 000's): December 31, 2021 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — $ 42,194 $ 42,194 $ — Government program loans — — — — 3,310 3,310 — Total commercial and industrial — — — — 45,504 45,504 — Commercial real estate loans — — — — 331,050 331,050 — Residential mortgages 6,745 — — 6,745 220,181 226,926 — Home improvement and home equity loans 12 — — 12 68 80 — Total real estate mortgage 6,757 — — 6,757 551,299 558,056 — Real estate construction and development loans — — 9,021 9,021 145,249 154,270 — Agricultural loans — — 209 209 60,030 60,239 — Installment and student loans 1,628 328 453 2,409 48,836 51,245 453 Total loans $ 8,385 $ 328 $ 9,683 $ 18,396 $ 850,918 $ 869,314 $ 453 Nonaccrual Loans Commercial, construction and commercial real estate loans are placed on nonaccrual status under the following circumstances: - When there is doubt regarding the full repayment of interest and principal. - When principal and/or interest on the loan has been in default for a period of 90-days or more, unless the asset is both well secured and in the process of collection that will result in repayment in the near future. - When the loan is identified as having loss elements and/or is risk rated "8" Doubtful. Other circumstances which jeopardize the ultimate collectability of the loan including certain troubled debt restructurings, identified loan impairment, and certain loans to facilitate the sale of OREO. All loans, outside of student loans, where principal or interest is due and unpaid for 90 days or more are placed on nonaccrual and the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. See Note 4 - Student Loans for specific information on the student loan portfolio. When a loan is placed on nonaccrual status and subsequent payments of interest (and principal) are received, the interest received may be accounted for in two separate ways. Cost recovery method : If the loan is in doubt as to full collection, the interest received in subsequent payments is diverted from interest income to a valuation reserve and treated as a reduction of principal for financial reporting purposes. Cash basis : This method is only used if the recorded investment or total contractual amount is expected to be fully collectible, under which circumstances the subsequent payments of interest are credited to interest income as received. Loans on non-accrual status are usually not returned to accrual status unless all delinquent principal and/or interest has been brought current, there is no identified element of loss, and current and continued satisfactory performance is expected. Return to accrual is generally demonstrated through the timely receipt of at least six monthly payments on a loan with monthly amortization. There were no remaining undisbursed commitments to extend credit on nonaccrual loans at September 30, 2022 or December 31, 2021. The following is a summary of nonaccrual loan balances at September 30, 2022 and December 31, 2021 (in 000's). September 30, 2022 December 31, 2021 Real estate construction and development loans 11,015 11,226 Agricultural loans 130 212 Total nonaccrual loans $ 11,145 $ 11,438 Impaired Loans The Company applies its normal loan review procedures in making judgments regarding probable losses and loan impairment. The Company evaluates for impairment those loans on nonaccrual status, graded doubtful, graded substandard or those that are troubled debt restructures. The primary basis for inclusion in impaired status under generally accepted accounting pronouncements is that it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. A loan is not considered impaired if there is merely an insignificant delay or shortfall in the amounts of payments and the Company expects to collect all amounts due, including interest accrued, at the contractual interest rate for the period of the delay. Review for impairment does not include large groups of smaller balance homogeneous loans that are collectively evaluated to estimate the allowance for loan losses. The Company’s present allowance for loan losses methodology, including migration analysis, captures required reserves for these loans in the formula allowance. For loans determined to be impaired, the Company evaluates impairment based upon either the fair value of underlying collateral, discounted cash flows of expected payments, or observable market price. - For loans secured by collateral including real estate and equipment, the fair value of the collateral less selling costs will determine the carrying value of the loan. The difference between the recorded investment in the loan and the fair value, less selling costs, determines the amount of impairment. The Company uses the measurement method based on fair value of collateral when the loan is collateral dependent and foreclosure is probable. For loans that are not considered collateral dependent, a discounted cash flow methodology is used. - The discounted cash flow method of measuring the impairment of a loan is used for impaired loans that are not considered to be collateral dependent. Under this method, the Company assesses both the amount and timing of cash flows expected from impaired loans. The estimated cash flows are discounted using the loan's effective interest rate. The difference between the amount of the loan on the Bank's books and the discounted cash flow amounts determines the amount of impairment to be provided. This method is used for most of the Company’s troubled debt restructurings or other impaired loans where some payment stream is being collected. - The observable market price method of measuring the impairment of a loan is only used by the Company when the sale of loans or a loan is in process. The method for recognizing interest income on impaired loans is dependent on whether the loan is on nonaccrual status or is a troubled debt restructure. For income recognition, the existing nonaccrual and troubled debt restructuring policies are applied to impaired loans. Generally, except for certain troubled debt restructurings which are performing under the restructure agreement, the Company does not recognize interest income received on impaired loans, but reduces the carrying amount of the loan for financial reporting purposes. Loans other than certain homogeneous loan portfolios are reviewed on a quarterly basis for impairment. Impaired loans are written down to estimated realizable values by the establishment of specific reserves for loans utilizing the discounted cash flow method, or charge-offs for collateral-based impaired loans, or those using observable market pricing. The following is a summary of impaired loans at September 30, 2022 (in 000's). September 30, 2022 Unpaid Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and business loans $ — $ — $ — $ — $ — $ — $ — Government program loans — — — — — — — Total commercial and industrial — — — — — — — Commercial real estate loans — — — — — — — Residential mortgages 142 — 142 142 3 144 5 Home improvement and home equity loans — — — — — — — Total real estate mortgage 142 — 142 142 3 144 5 Real estate construction and development loans 11,015 11,015 — 11,015 — 11,114 165 Agricultural loans 670 542 130 672 67 665 25 Installment and student loans — — — — — — — Total impaired loans $ 11,827 $ 11,557 $ 272 $ 11,829 $ 70 $ 11,923 $ 195 (1) The recorded investment in loans includes accrued interest receivable of $2. (2) Information is based on nine months ended September 30, 2022. The following is a summary of impaired loans at December 31, 2021 (in 000's). December 31, 2021 Unpaid Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and business loans $ — $ — $ — $ — $ — $ 156 $ — Government program loans — — — — — 110 — Total commercial and industrial — — — — — 266 — Commercial real estate loans — — — — — 538 — Residential mortgages 146 — 146 146 3 377 6 Total real estate mortgage 146 — 146 146 3 915 6 Real estate construction and development loans 11,226 11,226 — 11,226 — 11,133 272 Agricultural loans 660 453 209 662 127 499 41 Total impaired loans $ 12,032 $ 11,679 $ 355 $ 12,034 $ 130 $ 12,813 $ 319 (1) The recorded investment in loans includes accrued interest receivable of $2. (2) Information is based on the year ended December 31, 2021. In most cases, the Company uses the cash basis method of income recognition for impaired loans. In the case of certain troubled debt restructurings for which the loan is performing under the current contractual terms for a reasonable period of time, income is recognized under the accrual method. The average recorded investment in impaired loans for the quarters ended September 30, 2022 and 2021 was $11,857,000 and $11,792,000, respectively. Interest income recognized on impaired loans for the quarters ended September 30, 2022 and 2021 was approximately $52,000 and $59,000, respectively. For impaired nonaccrual loans, interest income recognized under a cash-basis method of accounting was approximately $44,000 and $67,000 for the quarters ended September 30, 2022 and 2021, respectively. The average recorded investment in impaired loans for the nine months ended September 30, 2022 and 2021 was $11,923,000 and $13,007,000, respectively. Interest income recognized on impaired loans for the nine months ended September 30, 2022 and 2021 was approximately $195,000 and $231,000, respectively. For impaired nonaccrual loans, interest income recognized under a cash-basis method of accounting was approximately $173,000 and $223,000 for the nine months ended September 30, 2022 and 2021, respectively. Troubled Debt Restructurings In certain circumstances, when the Company grants a concession to a borrower as part of a loan restructuring, the restructuring is accounted for as a troubled debt restructuring (TDR). TDRs are reported as a component of impaired loans. A TDR is a type of restructuring in which the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession (either imposed by court order, law, or agreement between the borrower and the Bank) to the borrower that it would not otherwise consider. Although the restructuring may take different forms, the Company's objective is to maximize recovery of its investment by granting relief to the borrower. A TDR may include, but is not limited to, one or more of the following: - A transfer from the borrower to the Company of receivables from third parties, real estate, other assets, or an equity interest in the borrower is granted to fully or partially satisfy the loan. - A modification of terms of a debt such as one or a combination of: ◦ The reduction (absolute or contingent) of the stated interest rate. ◦ The extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk. ◦ The reduction (absolute or contingent) of the face amount or maturity amount of debt as stated in the instrument or agreement. ◦ The reduction (absolute or contingent) of accrued interest. For a restructured loan to return to accrual status there needs to be, among other factors, at least 6 months successful payment history and continued satisfactory performance is expected. To this end, the Company typically performs a financial analysis of the credit to determine whether the borrower has the ability to continue to meet payments over the remaining life of the loan. This includes, but is not limited to, a review of financial statements and cash flow analysis of the borrower. Only after determination that the borrower has the ability to perform under the terms of the loans, will the restructured credit be considered for accrual status. Although the Company does not have a policy which specifically addresses when a loan may be removed from TDR classification, as a matter of practice, loans classified as TDRs generally remain classified as such until the loan either reaches maturity, a conforming loan is renewed at market terms, or its outstanding balance is paid off. There were no TDR additions or defaults for the quarters or nine month per ended September 30, 2022 and September 30, 2021. The Company makes various types of concessions when structuring TDRs including rate discounts, payment extensions, and other-than-temporary forbearance. At September 30, 2022, the Company had 4 restructured loans totaling $2.3 million as compared to 5 restructured loans totaling $2.6 million at December 31, 2021. The following tables summarize TDR activity by loan category for the quarters ended September 30, 2022 and September 30, 2021 (in 000's). Three Months Ended Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 143 $ — $ 2,047 $ 161 $ — $ 2,351 Additions — — — — — — — — Principal reductions — — (1) — (53) (31) — (85) Charge-offs — — — — — — — — Ending balance $ — $ — $ 142 $ — $ 1,994 $ 130 $ — $ 2,266 Allowance for loan loss $ — $ — $ 3 $ — $ — $ 67 $ — $ 70 Defaults $ — $ — $ — $ — $ — $ — $ — $ — Three Months Ended Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 359 $ — $ 2,335 $ 379 $ — $ 3,073 Additions — — — — — — — — Principal reductions — — (212) — (50) (49) — (311) Charge-offs — — — — — — — — Ending balance $ — $ — $ 147 $ — $ 2,285 $ 330 $ — $ 2,762 Allowance for loan loss $ — $ — $ 4 $ — $ — $ 144 $ — $ 148 Defaults $ — $ — $ — $ — $ — $ — $ — $ — Nine Months Ended Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 146 $ — $ 2,206 $ 242 $ — $ 2,594 Additions — — — — — — — — Principal reductions — — (4) — (212) (112) — (328) Charge-offs — — — — — — — — Ending balance $ — $ — $ 142 $ — $ 1,994 $ 130 $ — $ 2,266 Allowance for loan loss $ — $ — $ 3 $ — $ — $ 67 $ — $ 70 Defaults $ — $ — $ — $ — $ — $ — $ — $ — Nine Months Ended Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 365 $ — $ 2,452 $ 609 $ — $ 3,426 Additions — — — — — — — — Principal reductions — — (218) — (167) (279) — (664) Charge-offs — — — — — — — — Ending balance $ — $ — $ 147 $ — $ 2,285 $ 330 $ — $ 2,762 Allowance for loan loss $ — $ — $ 4 $ — $ — $ 144 $ — $ 148 Defaults $ — $ — $ — $ — $ — $ — $ — $ — Credit Quality Indicators As part of its credit monitoring program, the Company utilizes a risk rating system which quantifies the risk the Company estimates it has assumed during the life of a loan. The system rates the strength of the borrower and the facility or transaction, and is designed to provide a program for risk management and early detection of problems. For each new credit approval, credit extension, renewal, or modification of existing credit facilities, the Company assigns risk ratings utilizing the rating scale identified in this policy. In addition, on an on-going basis, loans and credit facilities are reviewed for internal and external influences impacting the credit facility that would warrant a change in the risk rating. Each credit facility is to be given a risk rating that takes into account factors that materially affect credit quality. When assigning risk ratings, the Company evaluates two risk rating approaches, a facility rating and a borrower rating as follows: Facility Rating: The facility rating is determined by the analysis of positive and negative factors that may indicate that the quality of a particular loan or credit arrangement requires that it be rated differently from the risk rating assigned to the borrower. The Company assesses the risk impact of these factors: Collateral - The rating may be affected by the type and quality of the collateral, the degree of coverage, the economic life of the collateral, liquidation value and the Company's ability to dispose of the collateral. Guarantees - The value of third party support arrangements varies widely. Unconditional guaranties from persons with demonstrable ability to perform are more substantial than that of closely related persons to the borrower who offer only modest support. Unusual Terms - Credit may be extended on terms that subject the Company to a higher level of risk than indicated in the rating of the borrower. Borrower Rating: The borrower rating is a measure of loss possibility based on the historical, current and anticipated financial characteristics of the borrower in the current risk environment. To determine the rating, the Company considers at least the following factors: - Quality of management - Liquidity - Leverage/capitalization - Profit margins/earnings trend - Adequacy of financial records - Alternative funding sources - Geographic risk - Industry risk - Cash flow risk - Accounting practices - Asset protection - Extraordinary risks The Company assigns risk ratings to loans other than consumer loans and other homogeneous loan pools based on the following scale. The risk ratings are used when determining borrower ratings as well as facility ratings. When the borrower rating and the facility ratings differ, the lowest rating is applied. The Company uses the following risk rating grades: - Grades 1 and 2 – These grades include loans which are given to high quality borrowers with high credit quality and sound financial strength. Key financial ratios are generally above industry averages and the borrower has a strong earnings history or net worth. These may be secured by deposit accounts or high-grade investment securities. - Grade 3 – This grade includes loans to borrowers with solid credit quality with minimal risk. The borrower’s balance sheet and financial ratios are generally in line with industry averages, and the borrower has historically demonstrated the ability to manage economic adversity. Real estate and asset-based loans assigned this risk rating must have characteristics, which place them well above the minimum underwriting requirements for those departments. Asset-based borrowers assigned this rating must exhibit extremely favorable leverage and cash flow characteristics, and consistently demonstrate a high level of unused borrowing capacity. - Grades 4 and 5 – These include “pass” grade loans to borrowers of acceptable credit quality and risk. The borrower’s balance sheet and financial ratios may be below industry averages, but above the lowest industry quartile. Leverage is above and liquidity is below industry averages. Inadequacies evident in financial performance and/or management sufficiency are offset by readily available features of support, such as adequate collateral, or good guarantors having the liquid assets and/or cash flow capacity to repay the debt. The borrower may have recognized a loss over three - Grade 6 – This grade includes “special mention” loans which are loans that are currently protected but are potentially weak. This generally is an interim grade classification and these loans will usually be upgraded to an "acceptable" rating or downgraded to a "substandard" rating within a reasonable time period. Weaknesses in special mention loans may, if not checked or corrected, weaken the asset or inadequately protect the Company’s credit position at some future date. Special mention loans are often loans with weaknesses inherent in the loan origination and loan servicing, and may have some technical deficiencies. The main theme in special mention credits is the distinct probability that the classification will deteriorate to a more adverse class if the noted deficiencies are not addressed by the loan officer or loan management. - Grade 7 – This grade includes “substandard” loans which are inadequately supported by the current sound net worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that may impair the regular liquidation of the debt. When a loan has been downgraded to "substandard," there exists a distinct possibility that the Company will sustain a loss if the deficiencies are not corrected. Substandard loans may also include impaired loans. - Grade 8 – This grade includes “doubtful” loans which exhibit the same characteristics as the "substandard" loans. Additionally, loan weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include a proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. - Grade 9 – This grade includes loans classified “loss” which are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off the asset even though partial recovery may be achieved in the future. The Company did not carry any loans graded as loss at September 30, 2022 or December 31, 2021. The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans for September 30, 2022 and December 31, 2021: September 30, 2022 Commercial and Industrial Commercial Real Estate Real Estate Construction and Development Agricultural Total (in 000's) Grades 1 and 2 $ 233 $ — $ — $ — $ 233 Grade 3 — — — — — Grades 4 and 5 – pass 62,188 347,817 150,556 55,609 616,170 Grade 6 – special mention — 34,790 — 1,017 35,807 Grade 7 – substandard — — 11,015 670 11,685 Grade 8 – doubtful — — — — — Total $ 62,421 $ 382,607 $ 161,571 $ 57,296 $ 663,895 December 31, 2021 Commercial and Industrial Commercial Real Estate Real Estate Construction and Development Agricultural Total (in 000's) Grades 1 and 2 $ 3,447 $ — $ — $ — $ 3,447 Grade 3 — 92 — — 92 Grades 4 and 5 – pass 42,054 301,866 143,044 46,739 533,703 Grade 6 – special mention — 29,092 — 11,197 40,289 Grade 7 – substandard 3 — 11,226 2,303 13,532 Grade 8 – doubtful — — — — — Total $ 45,504 $ 331,050 $ 154,270 $ 60,239 $ 591,063 The Company follows consistent underwriting standards outlined in its loan policy for consumer and other homogeneous loans but, does not specifically assign a risk rating when these loans are originated. Consumer loans are monitored for credit risk and are considered “pass” loans until some issue or event requires that the credit be downgraded to special mention or worse. Within the student loan portfolio, the Company does not grade these loans individually, but monitors credit quality indicators such as delinquency and program defined status codes such as forbearance. The following tables summarize the credit risk ratings for consumer related loans and other homogeneous loans for September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 Residential Mortgages Home Installment and Student Loans Total Residential Mortgages Home Installment and Student Loans Total (in 000's) Not graded $ 233,955 $ 43 $ 46,387 $ 280,385 $ 211,622 $ 68 $ 50,421 $ 262,111 Pass 16,136 9 124 16,269 15,304 12 371 15,687 Special mention — — — — — — — — Substandard — — — — — — 453 453 Doubtful — — — — — — — — Total $ 250,091 $ 52 $ 46,511 $ 296,654 $ 226,926 $ 80 $ 51,245 $ 278,251 Allowance for Loan Losses The Company analyzes risk characteristics inherent in each loan portfolio segment as part of the quarterly review of the adequacy of the allowance for loan losses. The following summarizes some of the key risk characteristics for the ten segments of the loan portfolio (Consumer loans include three segments): Commercial and industrial loans – Commercial loans are subject to the effects of economic cycles and tend to exhibit increased risk as economic conditions deteriorate, or if the economic downturn is prolonged. The Company considers this segment to be one of higher risk given the size of individual loans and the balances in the overall portfolio. Government program loans – This is a relatively a small part of the Company’s loan portfolio, but has historically had a high percentage of loans that have migrated from pass to substandard given their vulnerability to economic cycles. Commercial real estate loans – This segment is considered to have more risk in part because of the vulnerability of commercial businesse |
Student Loans
Student Loans | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Student Loans | Student LoansIncluded in the installment and student loans segment of the loan portfolio are $43.7 million and $48.5 million in student loans at September 30, 2022 and December 31, 2021, respectively, made to medical and pharmacy school students. Upon graduation the loan is automatically placed on grace for 6 months. Deferment may be granted up to 48 months for graduates enrolling in Internship, Medical Residency or Fellowship programs. As approved, the student may receive additional deferment for hardship or administrative reasons in the form of forbearance for a maximum of 36 months throughout the life of the loan. Accrued interest on student loans that are in school or grace totaled $1,967,000 at September 30, 2022 and $2,338,000 at December 31, 2021. At September 30, 2022 there were 857 loans within repayment, deferment, and forbearance which represented $18.9 million, $10.5 million, and $9.2 million, respectively. At December 31, 2021, there were 901 loans within repayment, deferment, and forbearance which represented $23.8 million, $9.0 million and $8.2 million, respectively. As of September 30, 2022 and December 31, 2021, the reserve against the student loan portfolio was $2,561,000 and $2,647,000, respectively. There were no TDRs within the portfolio as of September 30, 2022 or December 31, 2021. At September 30, 2022, there were no student loans in the substandard category. At December 31, 2021, there were $453,000 in student loans included in the substandard category. There were no student loans in the doubtful or loss categories at September 30, 2022 and December 31, 2021. There were no new student loans originated in 2021 and 2022. ZuntaFi is the third-party servicer for the student loan portfolio. ZuntaFi's services include application administration, processing, approval, documenting, funding, and collection. They also provide borrower file custodial responsibilities. Except in cases where applicants/loans do not meet program requirements, or extreme delinquency, ZuntaFi provides complete program management. ZuntaFi is paid a monthly servicing fee based on the outstanding principal balance. The servicing fee is presented as part of professional fees within noninterest expense. The following tables summarize the credit quality indicators for outstanding student loans as of September 30, 2022 and December 31, 2021 (in 000's, except for number of borrowers): September 30, 2022 December 31, 2021 Number of Loans Amount Accrued Interest Number of Loans Amount Accrued Interest School 82 $ 2,370 $ 1,015 185 $ 6,555 $ 2,021 Grace 75 2,781 952 28 912 317 Repayment 414 18,888 418 500 23,834 715 Deferment 253 10,498 1,444 224 8,984 508 Forbearance 190 9,161 833 177 8,172 1,077 Total 1,014 $ 43,698 $ 4,662 1,114 $ 48,457 $ 4,638 School - The time in which the borrower is still actively in school at least half time. No payments are expected during this stage, though the borrower may begin immediate payments. Grace - A six month period of time granted to the borrower immediately upon graduation, or if deemed no longer an active student. Interest continues to accrue. Upon completion of the six month grace period the loan is transferred to repayment status. Additionally, if applicable, this status may represent a borrower activated to military duty while in their in-school period, they will be allowed to return to that status once their active duty has expired. The borrower must return to an at least half time status within six months of the active duty end date in order to return to an in-school status. Repayment - The time in which the borrower is no longer attending school at least half-time, and has not received an approved grace, deferment, or forbearance. Regular payment is expected from these borrowers under an allotted payment plan. Deferment - May be granted up to 48 months for borrowers who have begun the repayment period on their loans but are (1) actively enrolled in an eligible school at least half time, or (2) are actively enrolled in an approved and verifiable medical residency, internship, or fellowship program. Forbearance - The period of time during which the borrower may postpone making principal and interest payments, which may be granted for either hardship or administrative reasons. Interest will continue to accrue on loans during periods of authorized forbearance. If the borrower is delinquent at the time the forbearance is granted, the delinquency will be covered by the forbearance and all accrued and unpaid interest from the date of delinquency or if none, from the date of beginning of the forbearance period, will be capitalized at the end of each forbearance period. The term of the loan will not change and payments may be increased to allow the loan to pay off in the required time frame. A forbearance that results in only an insignificant delay in payment, is not considered a concessionary change in terms, provided the borrower affirms the obligation. Forbearance is not an uncommon status designation, this designation is standard industry practice, and is consistent with the succession of students migrating to employed medical professionals. However, additional risk is associated with this designation. In addition to forbearance granted for hardship or administrative reasons, the Company provided up to 18 months of additional disaster forbearance to those borrowers impacted by Hurricane Maria in 2017 and additional forbearance related to COVID-19. Due to the COVID-19 pandemic, certain Federally guaranteed student loans are provided forbearance in the form of 0% interest and no payments from March 2020 through December 31, 2022. While loans serviced by ZuntaFi are not Federally guaranteed, ZuntaFi in keeping with the spirit of the Federal programs, offers a similar pandemic forbearance. Some student loans are granted additional non-program, no-pay forbearance during this same time frame, up to 90 days for each occurrence when requested, through December 31, 2022. Each request must be justified with the borrower, stating the financial hardship, that it was induced by the pandemic, and the borrower must also reaffirm the debt as part of the documentation for each forbearance period. The loans continue to accrue interest at the note rate under the program requirements. At this time, the expectation is the Pandemic Forbearance will no longer be offered as of December 31, 2022, at which time loans will resume under Repayment status, or be placed in other appropriate status, including program Forbearance or Deferment as qualified and as available. Student Loan Aging Student loans are generally charged off at the end of the quarter during which an account becomes 120 days contractually past due. Accrued but unpaid interest related to charged off student loans is reversed and charged against interest income. For the nine months ended September 30, 2022, $100,000 in accrued interest receivable was reversed, due to charge-offs of $810,000 within the student loan portfolio. For the quarter ended September 30, 2022, $86,000 in accrued interest receivable was reversed, due to charge-offs of $457,000. For the three and nine months period ended September 30, 2021, $54,000 and $97,000 in accrued interest receivable was reversed, due to charge-offs of $530,000 and $1,183,000 within the student loan portfolio. The following tables summarize the student loan aging for loans in repayment and forbearance as of September 30, 2022 and December 31, 2021 (in 000's, except for number of borrowers): September 30, 2022 December 31, 2021 Number of Borrowers Amount Number of Borrowers Amount Current or less than 31 days 247 $ 27,409 272 $ 29,596 31 - 60 days 5 585 10 1,628 61 - 90 days 1 56 3 328 91 - 120 days — — 5 453 Total 253 $ 28,050 290 $ 32,005 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Deposits | Deposits Deposits include the following: (in 000's) September 30, 2022 December 31, 2021 Noninterest-bearing deposits $ 517,230 $ 476,749 Interest-bearing deposits: NOW and money market accounts 517,820 529,841 Savings accounts 130,786 113,930 Time deposits: Under $250,000 53,492 46,631 $250,000 and over 21,490 20,955 Total interest-bearing deposits 723,588 711,357 Total deposits $ 1,240,818 $ 1,188,106 |
Short-term Borrowings_Other Bor
Short-term Borrowings/Other Borrowings | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings/Other Borrowings | Short-term Borrowings/Other Borrowings At September 30, 2022, the Company had collateralized lines of credit with the Federal Reserve Bank of San Francisco totaling $419.3 million, as well as Federal Home Loan Bank (FHLB) lines of credit totaling $2.2 million. At September 30, 2022, the Company had uncollateralized lines of credit with PNC Bank of $40 million, with Pacific Coast Bankers Bank (PCBB) totaling $50 million, $20 million with Zions First National Bank and $10 million with Union Bank. All uncollateralized lines of credit are on an “as available” basis and can be revoked by the grantor at any time. These lines of credit have interest rates that are generally tied to the Federal Funds rate or are indexed to short-term U.S. Treasury rates or LIBOR. FHLB advances are collateralized by the Company’s stock in the FHLB, investment securities, and certain qualifying mortgage loans. As of September 30, 2022, $2.4 million in investment securities at FHLB were pledged as collateral for FHLB advances. Additionally, $571.1 million in secured and unsecured loans were pledged at September 30, 2022, as collateral for borrowing lines with the Federal Reserve Bank. At September 30, 2022, the Company had no outstanding borrowings. At December 31, 2021, the Company had collateralized lines of credit with the Federal Reserve Bank of San Francisco totaling $320.6 million, as well as Federal Home Loan Bank (“FHLB”) lines of credit totaling $3.1 million. At December 31, 2021, the Company had uncollateralized lines of credit with PNC of $40 million, with Pacific Coast Bankers Bank ("PCBB") totaling $50 million, $20 million with Zions First National Bank, and $10 million with Union Bank. All uncollateralized lines of credit are on an “as available” basis and can be revoked by the grantor at any time. These lines of credit generally have interest rates tied to the Federal Funds rate or are indexed to short-term U.S. Treasury rates or LIBOR. FHLB advances are collateralized by the Company’s stock in the FHLB, investment securities, and certain qualifying mortgage loans. As of December 31, 2021, $3.4 million in investment securities at FHLB were pledged as collateral for FHLB advances. Additionally, $490.5 million in secured and unsecured loans were pledged at December 31, 2021, as collateral for used and unused borrowing lines with the Federal Reserve Bank. At December 31, 2021, the Company had no outstanding borrowings. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company leases land and premises for its branch banking offices, administration facilities, and ATMs. The initial terms of these leases expire at various dates through 2032. Under the provisions of most of these leases, the Company has the option to extend the leases beyond their original terms at rental rates adjusted for changes reported in certain economic indices or as reflected by market conditions. Lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. As of September 30, 2022, the Company had 13 operating leases and no financing leases. The components of lease expense were as follows: Three Months Ended Nine Months Ended (in 000's) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Operating lease expense $ 185 $ 184 $ 553 $ 520 Variable lease expense $ — $ 95 $ — $ 251 Total $ 185 $ 279 $ 553 $ 771 Supplemental balance sheet information related to leases was as follows: (in 000's) September 30, 2022 Operating cash flows from operating leases $ 553 Weighted-average remaining lease term in years for operating leases 4.59 Weighted-average discount rate for operating leases 5.12 % Maturities of lease liabilities were as follows: (in 000's) September 30, 2022 2023 $ 742 2024 640 2025 450 2026 218 2027 122 Thereafter 348 Total undiscounted cash flows 2,520 Less: present value discount (275) Present value of net future minimum lease payments $ 2,245 |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Supplemental Cash Flow Disclosures Nine months ended September 30, (in 000's) 2022 2021 Cash paid during the period for: Interest $ 1,907 $ 1,529 Income taxes 4,825 3,030 Noncash investing activities: Unrealized gain on unrecognized post retirement costs, net of tax 47 52 Unrealized loss on available for sale securities, net of tax (20,591) (216) Unrealized gain on junior subordinated debentures, net of tax 2,408 223 Cash dividend declared 1,874 1,871 |
Dividends on Common Stock
Dividends on Common Stock | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Dividends on Common Stock | Dividends on Common Stock On September 27, 2022, the Company’s Board of Directors declared a cash dividend of $0.11 per share on the Company's common stock. The dividend was payable on October 25, 2022, to shareholders of record as of October 11, 2022. Approximately $1,874,000 was transferred from retained earnings to dividends payable as of September 30, 2022 to allow for distribution of the dividend to shareholders. On June 28, 2022, the Company’s Board of Directors declared a cash dividend of $0.11 per share on the Company's common stock. The dividend was payable on July 22, 2022, to shareholders of record as of July 8, 2022. Approximately $1,874,000 was transferred from retained earnings to dividends payable to allow for distribution of the dividend to shareholders. On March 22, 2022, the Company’s Board of Directors declared a cash dividend of $0.11 per share on the Company's common stock. The dividend was payable on April 18, 2022, to shareholders of record as of April 6, 2022. Approximately $1,874,000 was transferred from retained earnings to dividends payable to allow for distribution of the dividend to shareholders. The Company has a program to repurchase up to $3 million of its outstanding common stock. The timing of the purchases will depend on certain factors, including but not limited to, market conditions and prices, available funds, and alternative uses of capital. The stock repurchase program may be carried out through open-market purchases, block trades, or negotiated private transactions. For the nine months ended 2022 and 2021, no shares have been repurchased. |
Net Income per Common Share
Net Income per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share The following table provides a reconciliation of the numerator and the denominator of the basic EPS computation with the numerator and the denominator of the diluted EPS computation: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Net income (000's, except per share amounts) $ 4,467 $ 2,611 $ 10,345 $ 6,727 Weighted average shares issued 17,042,479 17,010,288 17,036,460 17,010,236 Add: dilutive effect of stock options 21,468 25,245 21,178 17,435 Weighted average shares outstanding adjusted for potential dilution 17,063,947 17,035,533 17,057,638 17,027,671 Basic earnings per share $ 0.26 $ 0.15 $ 0.61 $ 0.40 Diluted earnings per share $ 0.26 $ 0.15 $ 0.61 $ 0.40 Anti-dilutive stock options excluded from earnings per share calculation 93,000 60,000 93,000 101,000 |
Taxes on Income
Taxes on Income | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income The Company periodically reviews its tax positions under the accounting standards related to uncertainty in income taxes, which defines the criteria that an individual tax position would have to meet for some or all of the income tax benefit to be recognized in a taxable entity’s financial statements. Under the guidelines, an entity should recognize the financial statement benefit of a tax position if it determines that it is more likely than not that the position will be sustained on examination. The term “more likely than not” means a likelihood of more than 50 percent. In assessing whether the more-likely-than-not criterion is met, the entity should assume that the tax position will be reviewed by the applicable taxing authority and all available information is known to the taxing authority. The Company periodically evaluates its deferred tax assets to determine whether a valuation allowance is required based upon a determination that some or all of the deferred assets may not be ultimately realized. At September 30, 2022 and December 31, 2021, the Company had no recorded valuation allowance. The Company is no longer subject to examinations by taxing authorities for years before 2018 and 2017 for Federal and California jurisdictions, respectively. The Company's policy is to recognize any interest or penalties related to uncertain tax positions in income tax expense. Interest and penalties recognized on uncertain tax positions during the periods ended September 30, 2022 and 2021 were insignificant. The Company reported a provision for income taxes of $4,199,000 for the nine months ended September 30, 2022 as compared to the $2,653,000 provision reported in the comparable period of 2021. The effective tax rate was 28.9% for the nine months ended September 30, 2022 as compared to 28.3% for the comparable period of 2021. The Company recorded an income tax provision of $1.8 million for the three month ended September 30, 2022, compared to $1.0 million for the three month ended September 30, 2021. The effective tax rate for the quarter ended September 30, 2022 was 29.1% compared to 28.5% for the three months ended September 30, 2021. |
Junior Subordinated Debt_Trust
Junior Subordinated Debt/Trust Preferred Securities | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debt/Trust Preferred Securities | Junior Subordinated Debt/Trust Preferred Securities The contractual principal balance of the Company's debentures relating to its trust preferred securities is $12.0 million as of September 30, 2022 and December 31, 2021. The Company may redeem the junior subordinated debentures at any time at par. The Company accounts for its junior subordinated debt issued under USB Capital Trust II at fair value. The Company believes the election of fair value accounting for the junior subordinated debentures better reflects the true economic value of the debt instrument on the consolidated balance sheet. As of September 30, 2022, the rate paid on the junior subordinated debt issued under USB Capital Trust II is 3-month LIBOR plus 129 basis points, and is adjusted quarterly. At September 30, 2022, the Company performed a fair value measurement analysis on its junior subordinated debt using a cash flow model approach to determine the present value of those cash flows. The cash flow model utilizes the forward 3-month LIBOR curve to estimate future quarterly interest payments due over the life of the debt instrument. These cash flows were discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for additional credit and liquidity risks associated with the junior subordinated debt. The 7.09% discount rate used represents what a market participant would consider under the circumstances based on current market assumptions. At September 30, 2022, the total cumulative gain recorded on the debt is $1.55 million. The net fair value calculation performed as of September 30, 2022 resulted in a net pretax gain adjustment of $950,000 for the nine months ended September 30, 2022 compared to a net pretax loss adjustment of $373,000 for the nine months ended September 30, 2021. For the nine months ended September 30, 2022, the net $950,000 fair value gain adjustment was separately presented as a $2,469,000 loss ($1,739,000, net of tax) recognized on the consolidated statements of income, and a $3,419,000 gain ($2,408,000, net of tax) associated with the instrument-specific credit risk recognized in other comprehensive income. For the nine months ended September 30, 2021, the net $373,000 fair value loss adjustment was separately presented as a $691,000 loss ($487,000, net of tax) recognized on the consolidated statements of income, and a $317,000 gain ($223,000, net of tax) associated with the instrument-specific credit risk recognized in other comprehensive income. The Company calculated the change in the discounted cash flows based on updated market credit spreads for the periods ended. The net fair value calculation performed as of September 30, 2022 resulted in a net pretax gain adjustment of $225,000 for the quarter ended September 30, 2022 compared to a net pretax loss adjustment of $43,000 for the quarter ended September 30, 2021. For the quarter ended September 30, 2022, the net $225,000 fair value gain adjustment was separately presented as a $600,000 loss ($423,000, net of tax) recognized on the consolidated statements of income, and a $825,000 gain ($581,000, net of tax) associated with the instrument-specific credit risk recognized in other comprehensive income. For the quarter ended September 30, 2021, the net $43,000 fair value loss adjustment was separately presented as a $35,000 loss ($25,000, net of tax) recognized on the consolidated statements of income, and a $8,000 loss ($6,000, net of tax) associated with the instrument-specific credit risk recognized in other comprehensive income. The Company calculated the change in the discounted cash flows based on updated market credit spreads for the periods ended. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosure | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosure | Fair Value Measurements and Disclosure The following summary disclosures are made in accordance with the guidance provided by ASC Topic 825, Fair Value Measurements and Disclosures , which requires the disclosure of fair value information about both on- and off-balance sheet financial instruments where it is practicable to estimate that value. GAAP guidance clarifies the definition of fair value, describes methods used to appropriately measure fair value in accordance with generally accepted accounting principles and expands fair value disclosure requirements. This guidance applies whenever other accounting pronouncements require or permit fair value measurements. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels (Level 1, Level 2, and Level 3). Level 1 inputs are unadjusted quoted prices in active markets (as defined) for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability, and reflect the reporting entity’s assumptions regarding the pricing of an asset or liability by a market participant (including assumptions about risk). The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: September 30, 2022 (in 000's) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 202,378 $ 202,378 $ 3,436 $ 198,942 $ — Loans, net 952,103 902,836 — — 902,836 Accrued interest receivable 8,466 8,466 — 8,466 — Financial Liabilities: Deposits: Noninterest-bearing 517,230 517,230 517,230 — — NOW and money market 517,820 517,820 517,820 — — Savings 130,786 130,786 130,786 — — Time deposits 74,982 73,763 — — 73,763 Total deposits 1,240,818 1,239,599 1,165,836 — 73,763 Junior subordinated debt 10,305 10,305 — — 10,305 December 31, 2021 (in 000's) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 182,646 $ 182,651 $ 3,744 $ 178,907 $ — Loans 862,200 854,697 — — 854,697 Accrued interest receivable 7,530 7,530 — 7,530 — Financial Liabilities: Deposits: Noninterest-bearing 476,749 476,749 476,749 — — NOW and money market 529,841 529,841 529,841 — — Savings 113,930 113,930 113,930 — — Time deposits 67,586 67,922 — — 67,922 Total deposits 1,188,106 1,188,442 1,120,520 — 67,922 Junior subordinated debt 11,189 11,189 — — 11,189 The Company performs fair value measurements on certain assets and liabilities as the result of the application of current accounting guidelines. Some fair value measurements, such as investment securities and junior subordinated debt are performed on a recurring basis, while others, such as impairment of loans, other real estate owned, goodwill and other intangibles, are performed on a nonrecurring basis. The Company’s Level 1 financial assets consist of money market funds and highly liquid mutual funds for which fair values are based on quoted market prices. The Company’s Level 2 financial assets include highly liquid debt instruments of U.S. government agencies, collateralized mortgage obligations, and debt obligations of states and political subdivisions, whose fair values are obtained from readily-available pricing sources for the identical or similar underlying security that may, or may not, be actively traded. The Company’s Level 3 financial assets include certain instruments where the assumptions may be made by the Company or third parties about assumptions that market participants would use in pricing the asset or liability. From time to time, the Company recognizes transfers between Level 1, 2, and 3 when a change in circumstances warrants a transfer. There were no transfers between fair value measurements during the nine months ended September 30, 2022. The following methods and assumptions were used in estimating the fair values of financial instruments measured at fair value on a recurring and non-recurring basis: Investment Securities – Available for sale and marketable equity securities are valued based upon open-market price quotes obtained from reputable third-party brokers that actively make a market in those securities. Market pricing is based upon specific CUSIP identification for each individual security. To the extent there are observable prices in the market, the mid-point of the bid/ask price is used to determine fair value of individual securities. If that data is not available for the last 30 days, a Level 2-type matrix pricing approach based on comparable securities in the market is utilized. Level 2 pricing may include using a forward spread from the last observable trade or may use a proxy bond like a TBA mortgage to come up with a price for the security being valued. Changes in fair market value are recorded through other comprehensive loss as the securities are available for sale. Impaired Loans - Fair value measurements for collateral dependent impaired loans are performed pursuant to authoritative accounting guidance and are based upon either collateral values supported by third party appraisals or observed market prices. Collateral dependent loans are measured for impairment using the fair value of the collateral. Changes are recorded directly as an adjustment to current earnings. There were no impaired loans measured at fair value as of September 30, 2022. Other Real Estate Owned - Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (OREO) are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. There were no OREO measured at fair value as of September 30, 2022. Junior Subordinated Debt – The fair value of the junior subordinated debt was determined based upon a discounted cash flows model utilizing observable market rates and credit characteristics for similar debt instruments. In its analysis, the Company used characteristics that market participants generally use, and considered factors specific to (a) the liability, (b) the principal (or most advantageous) market for the liability, and (c) market participants with whom the reporting entity would transact in that market. Cash flows are discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for credit and liquidity risks associated with similar junior subordinated debt and circumstances unique to the Company. The Company believes that the subjective nature of these inputs, and credit concerns in the capital markets and inactivity in the trust preferred markets that have limited the observability of the market spreads, require the junior subordinated debt to be classified as a Level 3 fair value. The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of September 30, 2022 (in 000’s): Description of Assets September 30, 2022 Quoted Prices in Significant Other Significant AFS Securities (1): U.S. Government agencies $ 8,751 $ — $ 8,751 $ — U.S. Government collateralized mortgage obligations 98,522 — 98,522 — Municipal bonds 39,702 — 39,702 — U.S. Treasury securities 29,150 29,150 Corporate bond 32,435 — 32,435 — Total AFS securities 208,560 — 208,560 — Marketable equity securities (1) 3,287 3,287 — — Total $ 211,847 $ 3,287 $ 208,560 $ — Description of Liabilities September 30, 2022 Quoted Prices Significant Significant Junior subordinated debt (1) $ 10,305 — — $ 10,305 Total $ 10,305 — — $ 10,305 (1) Recurring There were no non-recurring fair value adjustments at September 30, 2022 or December 31, 2021. The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2021 (in 000’s): Description of Assets December 31, 2021 Quoted Prices Significant Significant AFS Securities (1): U.S. Government agencies $ 33,376 $ — $ 33,376 $ — U.S. Government collateralized mortgage obligations 64,735 — 64,735 Asset-backed securities 4,130 — 4,130 Municipal bonds 50,052 — 50,052 Treasury securities 15,187 15,187 Corporate bonds 11,422 — 11,422 — Total AFS securities 178,902 — 178,902 — Marketable equity securities (1) 3,744 3,744 — — Total $ 182,646 $ 3,744 $ 178,902 $ — Description of Liabilities December 31, 2021 Quoted Prices Significant Significant Junior subordinated debt (1) $ 11,189 $ — $ — $ 11,189 Total $ 11,189 $ — $ — $ 11,189 (1) Recurring The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 Financial Instrument Valuation Technique Unobservable Input Weighted Average Financial Instrument Valuation Technique Unobservable Input Weighted Average Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 7.09% Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 3.90% Management believes that the credit risk adjusted spread utilized in the fair value measurement of the junior subordinated debentures carried at fair value is indicative of the nonperformance risk premium a willing market participant would require under current market conditions, that is, the inactive market. Management attributes the change in fair value of the junior subordinated debentures during the period to market changes in the nonperformance expectations and pricing of this type of debt. Generally, an increase in the credit risk adjusted spread and/or a decrease in the three month LIBOR swap curve will result in positive fair value adjustments (and decrease the fair value measurement). Conversely, a decrease in the credit risk adjusted spread and/or an increase in the three month LIBOR swap curve will result in negative fair value adjustments (and increase the fair value measurement). The increase in discount rate between the periods ended September 30, 2022 and December 31, 2021 is primarily due to increases in rates for similar debt instruments. The following tables provide a reconciliation of assets and liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis at September 30, 2022 and 2021 (in 000’s): Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Reconciliation of Liabilities: Junior Junior Junior Junior Beginning balance $ 10,489 $ 11,253 $ 11,189 $ 10,924 Gross loss included in earnings 600 35 2,469 691 Gross (gain) loss related to changes in instrument specific credit risk (825) 8 (3,419) (317) Change in accrued interest 41 $ (1) 66 (3) Ending balance $ 10,305 $ 11,295 $ 10,305 $ 11,295 The amount of total loss for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date $ 600 $ 35 $ 2,469 $ 691 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible AssetsAt September 30, 2022, the Company had goodwill in the amount of $4,488,000 in connection with various business combinations and purchases. This amount was unchanged from the balance of $4,488,000 at December 31, 2021. While goodwill is not amortized, the Company does conduct periodic impairment analysis on goodwill at least annually or more often as conditions require. The Company performed its analysis of goodwill impairment and concluded goodwill was not impaired as of December 31, 2021 with no material events occurring through the period ended September 30, 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows: September 30, 2022 December 31, 2021 (in 000's) Net unrealized (loss) on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized (loss) gain on junior subordinated debentures Net unrealized (loss) gain on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized gain (loss) on junior subordinated debentures Beginning balance $ (236) $ (627) $ (311) $ 630 $ (770) $ (588) Current period comprehensive (loss) income, net of tax (20,591) 47 2,408 (866) 143 277 Ending balance $ (20,827) $ (580) $ 2,097 $ (236) $ (627) $ (311) Accumulated other comprehensive loss $ (19,310) $ (1,174) |
Investment in York Monterey Pro
Investment in York Monterey Properties | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in York Monterey Properties | Investment in York Monterey PropertiesAs of September 30, 2022 and December 31, 2021, the Bank's investment in York Monterey Properties Inc. totaled $5.3 million. York Monterey Properties Inc. is included within the consolidated financial statements of the Company, with $4.6 million of the total investment recognized within the balance of other real estate owned on the consolidated balance sheets. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Financial Instruments with Off-Balance Sheet Risk: The Company is party to financial instruments with off-balance sheet risk which arise in the normal course of business. These instruments may contain elements of credit risk, interest rate risk and liquidity risk, and include commitments to extend credit and standby letters of credit. The credit risk associated with these instruments is essentially the same as that involved in extending credit to customers and is represented by the contractual amount indicated in the table below: Contractual Amount (In thousands) September 30, 2022 December 31, 2021 Commitments to extend credit $ 164,030 $ 239,095 Standby letters of credit $ 1,719 $ 1,719 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. Substantially all of these commitments are at floating interest rates based on the prime rate, and most have fixed expiration dates. The Company evaluates each customer's creditworthiness on a case-by-case basis, and the amount of collateral obtained, if deemed necessary, is based on management's credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate, and income-producing properties. Many of the commitments are expected to expire without being drawn upon and, as a result, the total commitment amounts do not necessarily represent future cash requirements of the Company. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company’s letters of credit are short-term guarantees and generally have terms from less than one month to approximately 3 years. At September 30, 2022, the maximum potential amount of future undiscounted payments the Company could be required to make under outstanding standby letters of credit totaled $1,719,000. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting and Reporting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Impact of New Financial Accounting Standards | Impact of New Financial Accounting Standards : In June 2016, FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326). The FASB is issuing this Update to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The Update requires enhanced disclosures and judgments in estimating credit losses and also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This original amendment was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In October 2019 FASB unanimously approved a vote to delay the effective date of this Standard to be effective for fiscal years beginning after December 15, 2022. The Company has formed a project team that is responsible for oversight of the Company’s implementation strategy for compliance with provisions of the new standard (current expected credit losses or CECL). An external provider specializing in community bank loss driver and CECL reserving model design as well as other related consulting services has been retained, and the Company continues to evaluate potential CECL modeling alternatives. As part of this process, the Company has determined potential loan pool segmentation and sub-segmentation under CECL, as well as evaluated the key economic loss drivers for each segment. The Company has begun to generate and evaluate model scenarios under CECL in tandem with its current reserving processes for interim and annual reporting. While the Company is currently unable to reasonably estimate the impact of adopting this new guidance, management expects the impact of adoption will be significantly influenced by the composition and quality of the Company’s loan portfolio as well as the economic conditions as of the date of adoption. The Company also anticipates significant changes to the processes and procedures for calculating the reserve for credit losses and continues to evaluate the potential impact on the Company's consolidated financial statements. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the provisions of this ASU and its effects on our consolidated financial statements. The Company anticipates impacts to junior subordinated debt and floating rate loans tied to LIBOR. In March 2022, FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures. This ASU provides new guidance on the treatment of troubled debt restructurings in relation to the adoption of the CECL model for the accounting for credit losses (see note above regarding ASU 2016-13). Previous accounting guidance related to troubled debt restructurings is eliminated and new disclosure requirements are adopted in regard to loan refinancing and restructurings made to borrowers experiencing financial difficulties under the assumption that the CECL model will capture credit losses related to trouble debt restructurings. New disclosures regarding gross write-offs for financing receivables by year of origination are also included in the update. This update will be incorporated along with the implementation of CECL and the Company is currently evaluating the impact this update will have on its consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Comparison of Amortized Cost and Fair Value of Securities Available for Sale | Following is a comparison of the amortized cost and fair value of securities available-for-sale, as of September 30, 2022 and December 31, 2021: (in 000's) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) September 30, 2022 Securities available-for-sale: U.S. Government agencies $ 8,784 $ 11 $ (44) $ 8,751 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 113,893 3 (15,374) 98,522 U.S. Treasury securities 29,994 — (844) 29,150 Municipal bonds 50,727 — (11,025) 39,702 Corporate bonds 34,728 4 (2,297) 32,435 Total securities available for sale $ 238,126 $ 18 $ (29,584) $ 208,560 (in 000's) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) December 31, 2021 Securities available-for-sale: U.S. Government agencies $ 33,206 $ 260 $ (90) $ 33,376 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 64,880 184 (329) 64,735 U.S. Treasury securities 15,186 1 — 15,187 Asset-backed securities 4,092 38 — 4,130 Municipal bonds 50,872 86 (906) 50,052 Corporate bonds 11,000 429 (7) 11,422 Total securities available for sale $ 179,236 $ 998 $ (1,332) $ 178,902 Proceeds and gross realized gains (losses) from sales of investment securities for the periods ended September 30, 2022 and 2021 are shown below: Available-for-Sale Securities (in 000's) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Proceeds from sales or calls 15,676 — Gross realized gains from sales or calls 78 — Gross realized losses from sales or calls (48) — |
Contractual Maturities on Collateralized Mortgage Obligation | The amortized cost and fair value of securities available for sale at September 30, 2022, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed pay downs. September 30, 2022 Amortized Cost Fair Value (Carrying Amount) (in 000's) Due in one year or less $ 9,975 $ 9,971 Due after one year through five years 39,245 36,924 Due after five years through ten years 65,056 54,911 Due after ten years 9,956 8,232 Collateralized mortgage obligations 113,894 98,522 $ 238,126 $ 208,560 |
Temporarily Impaired Investment Securities | The following summarizes temporarily impaired investment securities: (in 000's) Less than 12 Months 12 Months or More Total September 30, 2022 Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Securities available for sale: U.S. Government agencies $ — $ — $ 6,327 $ (44) $ 6,327 $ (44) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 71,123 (8,533) 27,093 (6,841) 98,216 (15,374) Corporate bonds 29,600 (2,297) — — 29,600 (2,297) Municipal bonds 7,986 (2,298) 31,716 (8,728) 39,702 (11,026) U.S. Treasury securities 29,151 (843) — — 29,151 (843) Total impaired securities $ 137,860 $ (13,971) $ 65,136 $ (15,613) $ 202,996 $ (29,584) December 31, 2021 Securities available for sale: U.S. Government agencies $ — $ — $ 9,699 $ (90) $ 9,699 $ (90) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 37,258 (329) 23 — 37,281 (329) Corporate bonds 5,993 (7) — — 5,993 (7) Municipal bonds 39,551 (896) 228 (10) 39,779 (906) U.S. Treasury securities 7,416 — — — 7,416 — Total impaired securities $ 90,218 $ (1,232) $ 9,950 $ (100) $ 100,168 $ (1,332) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Loans | Loans are comprised of the following: (in 000's) September 30, 2022 December 31, 2021 Commercial and industrial: Commercial and business loans $ 62,333 $ 42,194 Government program loans 88 3,310 Total commercial and industrial 62,421 45,504 Real estate mortgage: Commercial real estate 382,607 331,050 Residential mortgages 250,091 226,926 Home improvement and home equity loans 52 80 Total real estate mortgage 632,750 558,056 Real estate construction and development 161,571 154,270 Agricultural 57,296 60,239 Installment and student loans 46,511 51,245 Total loans $ 960,549 $ 869,314 |
Delinquent Loans | The following is a summary of delinquent loans at September 30, 2022 (in 000's): September 30, 2022 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — $ 62,333 $ 62,333 $ — Government program loans — — — — 88 88 — Total commercial and industrial — — — — 62,421 62,421 — Commercial real estate loans — — — — 382,607 382,607 — Residential mortgages — — — — 250,091 250,091 — Home improvement and home equity loans 9 — — 9 43 52 — Total real estate mortgage 9 — — 9 632,741 632,750 — Real estate construction and development loans — — 9,021 9,021 152,550 161,571 — Agricultural loans — — 130 130 57,166 57,296 — Installment and student loans 585 56 — 641 45,870 46,511 — Total loans $ 594 $ 56 $ 9,151 $ 9,801 $ 950,748 $ 960,549 $ — The following is a summary of delinquent loans at December 31, 2021 (in 000's): December 31, 2021 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — $ 42,194 $ 42,194 $ — Government program loans — — — — 3,310 3,310 — Total commercial and industrial — — — — 45,504 45,504 — Commercial real estate loans — — — — 331,050 331,050 — Residential mortgages 6,745 — — 6,745 220,181 226,926 — Home improvement and home equity loans 12 — — 12 68 80 — Total real estate mortgage 6,757 — — 6,757 551,299 558,056 — Real estate construction and development loans — — 9,021 9,021 145,249 154,270 — Agricultural loans — — 209 209 60,030 60,239 — Installment and student loans 1,628 328 453 2,409 48,836 51,245 453 Total loans $ 8,385 $ 328 $ 9,683 $ 18,396 $ 850,918 $ 869,314 $ 453 The following tables summarize the student loan aging for loans in repayment and forbearance as of September 30, 2022 and December 31, 2021 (in 000's, except for number of borrowers): September 30, 2022 December 31, 2021 Number of Borrowers Amount Number of Borrowers Amount Current or less than 31 days 247 $ 27,409 272 $ 29,596 31 - 60 days 5 585 10 1,628 61 - 90 days 1 56 3 328 91 - 120 days — — 5 453 Total 253 $ 28,050 290 $ 32,005 |
NonAccrual Loan Balances | The following is a summary of nonaccrual loan balances at September 30, 2022 and December 31, 2021 (in 000's). September 30, 2022 December 31, 2021 Real estate construction and development loans 11,015 11,226 Agricultural loans 130 212 Total nonaccrual loans $ 11,145 $ 11,438 |
Impaired Loans | The following is a summary of impaired loans at September 30, 2022 (in 000's). September 30, 2022 Unpaid Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and business loans $ — $ — $ — $ — $ — $ — $ — Government program loans — — — — — — — Total commercial and industrial — — — — — — — Commercial real estate loans — — — — — — — Residential mortgages 142 — 142 142 3 144 5 Home improvement and home equity loans — — — — — — — Total real estate mortgage 142 — 142 142 3 144 5 Real estate construction and development loans 11,015 11,015 — 11,015 — 11,114 165 Agricultural loans 670 542 130 672 67 665 25 Installment and student loans — — — — — — — Total impaired loans $ 11,827 $ 11,557 $ 272 $ 11,829 $ 70 $ 11,923 $ 195 (1) The recorded investment in loans includes accrued interest receivable of $2. (2) Information is based on nine months ended September 30, 2022. The following is a summary of impaired loans at December 31, 2021 (in 000's). December 31, 2021 Unpaid Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and business loans $ — $ — $ — $ — $ — $ 156 $ — Government program loans — — — — — 110 — Total commercial and industrial — — — — — 266 — Commercial real estate loans — — — — — 538 — Residential mortgages 146 — 146 146 3 377 6 Total real estate mortgage 146 — 146 146 3 915 6 Real estate construction and development loans 11,226 11,226 — 11,226 — 11,133 272 Agricultural loans 660 453 209 662 127 499 41 Total impaired loans $ 12,032 $ 11,679 $ 355 $ 12,034 $ 130 $ 12,813 $ 319 (1) The recorded investment in loans includes accrued interest receivable of $2. (2) Information is based on the year ended December 31, 2021. |
TDR Activity by Loan Category | The following tables summarize TDR activity by loan category for the quarters ended September 30, 2022 and September 30, 2021 (in 000's). Three Months Ended Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 143 $ — $ 2,047 $ 161 $ — $ 2,351 Additions — — — — — — — — Principal reductions — — (1) — (53) (31) — (85) Charge-offs — — — — — — — — Ending balance $ — $ — $ 142 $ — $ 1,994 $ 130 $ — $ 2,266 Allowance for loan loss $ — $ — $ 3 $ — $ — $ 67 $ — $ 70 Defaults $ — $ — $ — $ — $ — $ — $ — $ — Three Months Ended Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 359 $ — $ 2,335 $ 379 $ — $ 3,073 Additions — — — — — — — — Principal reductions — — (212) — (50) (49) — (311) Charge-offs — — — — — — — — Ending balance $ — $ — $ 147 $ — $ 2,285 $ 330 $ — $ 2,762 Allowance for loan loss $ — $ — $ 4 $ — $ — $ 144 $ — $ 148 Defaults $ — $ — $ — $ — $ — $ — $ — $ — Nine Months Ended Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 146 $ — $ 2,206 $ 242 $ — $ 2,594 Additions — — — — — — — — Principal reductions — — (4) — (212) (112) — (328) Charge-offs — — — — — — — — Ending balance $ — $ — $ 142 $ — $ 1,994 $ 130 $ — $ 2,266 Allowance for loan loss $ — $ — $ 3 $ — $ — $ 67 $ — $ 70 Defaults $ — $ — $ — $ — $ — $ — $ — $ — Nine Months Ended Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 365 $ — $ 2,452 $ 609 $ — $ 3,426 Additions — — — — — — — — Principal reductions — — (218) — (167) (279) — (664) Charge-offs — — — — — — — — Ending balance $ — $ — $ 147 $ — $ 2,285 $ 330 $ — $ 2,762 Allowance for loan loss $ — $ — $ 4 $ — $ — $ 144 $ — $ 148 Defaults $ — $ — $ — $ — $ — $ — $ — $ — |
Credit Risk Rating for Commercial, Construction and Non-Consumer Related Loans | The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans for September 30, 2022 and December 31, 2021: September 30, 2022 Commercial and Industrial Commercial Real Estate Real Estate Construction and Development Agricultural Total (in 000's) Grades 1 and 2 $ 233 $ — $ — $ — $ 233 Grade 3 — — — — — Grades 4 and 5 – pass 62,188 347,817 150,556 55,609 616,170 Grade 6 – special mention — 34,790 — 1,017 35,807 Grade 7 – substandard — — 11,015 670 11,685 Grade 8 – doubtful — — — — — Total $ 62,421 $ 382,607 $ 161,571 $ 57,296 $ 663,895 December 31, 2021 Commercial and Industrial Commercial Real Estate Real Estate Construction and Development Agricultural Total (in 000's) Grades 1 and 2 $ 3,447 $ — $ — $ — $ 3,447 Grade 3 — 92 — — 92 Grades 4 and 5 – pass 42,054 301,866 143,044 46,739 533,703 Grade 6 – special mention — 29,092 — 11,197 40,289 Grade 7 – substandard 3 — 11,226 2,303 13,532 Grade 8 – doubtful — — — — — Total $ 45,504 $ 331,050 $ 154,270 $ 60,239 $ 591,063 |
Credit risk Ratings for Consumer Related Loans and Other Homogenous Loans | The following tables summarize the credit risk ratings for consumer related loans and other homogeneous loans for September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 Residential Mortgages Home Installment and Student Loans Total Residential Mortgages Home Installment and Student Loans Total (in 000's) Not graded $ 233,955 $ 43 $ 46,387 $ 280,385 $ 211,622 $ 68 $ 50,421 $ 262,111 Pass 16,136 9 124 16,269 15,304 12 371 15,687 Special mention — — — — — — — — Substandard — — — — — — 453 453 Doubtful — — — — — — — — Total $ 250,091 $ 52 $ 46,511 $ 296,654 $ 226,926 $ 80 $ 51,245 $ 278,251 |
Allowance for Credit Loses by Loan Category | The following summarizes the activity in the allowance for credit losses by loan category for the three months ended September 30, 2022 and 2021 (in 000's) Three Months Ended Commercial and Industrial Real Estate Mortgage Real Estate Construction Development Agricultural Installment and Student Loans Unallocated Total September 30, 2022 Beginning balance $ 836 $ 1,298 $ 3,528 $ 1,120 $ 2,634 $ 491 $ 9,907 Provision (recapture of provision) for credit losses 111 23 81 (554) 413 533 607 Charge-offs — — — — (464) — (464) Recoveries 1 4 — — 8 — 13 Net recoveries (charge-offs) 1 4 — — (456) — (451) Ending balance $ 948 $ 1,325 $ 3,609 $ 566 $ 2,591 $ 1,024 $ 10,063 Period-end amount allocated to: Loans individually evaluated for impairment — 3 — 67 — — 70 Loans collectively evaluated for impairment 948 1,322 3,609 499 2,591 1,024 9,993 Ending balance $ 948 $ 1,325 $ 3,609 $ 566 $ 2,591 $ 1,024 $ 10,063 Three Months Ended Commercial and Industrial Real Estate Mortgage Real Estate Construction Development Agricultural Installment and Student Loans Unallocated Total September 30, 2021 Beginning balance $ 632 $ 1,087 $ 3,213 $ 1,106 $ 2,789 $ 373 $ 9,200 Provision (recapture of provision) for credit losses 5 (20) (83) 314 402 (165) 453 Charge-offs — — — — (533) — (533) Recoveries 2 4 — — 18 — 24 Net recoveries (charge-offs) 2 4 — — (515) — (509) Ending balance $ 639 $ 1,071 $ 3,130 $ 1,420 $ 2,676 $ 208 $ 9,144 Period-end amount allocated to: Loans individually evaluated for impairment — 4 — 144 — — 148 Loans collectively evaluated for impairment 639 1,067 3,130 1,276 2,676 208 8,996 Ending balance $ 639 $ 1,071 $ 3,130 $ 1,420 $ 2,676 $ 208 $ 9,144 Nine Months Ended Commercial and Industrial Real Estate Mortgage Real Estate Construction Development Agricultural Installment and Student Loans Unallocated Total September 30, 2022 Beginning balance $ 597 $ 1,174 $ 2,840 $ 1,233 $ 2,720 $ 769 $ 9,333 Provision (recapture of provision) for credit losses 82 141 769 (703) 674 255 1,218 Charge-offs — — — — (828) — (828) Recoveries 269 10 — 36 25 — 340 Net recoveries (charge-offs) 269 10 — 36 (803) — (488) Ending balance $ 948 $ 1,325 $ 3,609 $ 566 $ 2,591 $ 1,024 $ 10,063 Period-end amount allocated to: Loans individually evaluated for impairment — 3 — 67 — — 70 Loans collectively evaluated for impairment 948 1,322 3,609 499 2,591 1,024 9,993 Ending balance $ 948 $ 1,325 $ 3,609 $ 566 $ 2,591 $ 1,024 $ 10,063 Nine Months Ended Commercial and Industrial Real Estate Mortgage Real Estate Construction Development Agricultural Installment and Student Loans Unallocated Total September 30, 2021 Beginning balance $ 625 $ 575 $ 3,722 $ 711 $ 2,614 $ 275 $ 8,522 Provision (recapture of provision) for credit losses (27) 481 (592) 709 1,150 (67) 1,654 Charge-offs — — — — (1,199) — (1,199) Recoveries 41 15 — — 111 — 167 Net (charge-offs) recoveries 41 15 — — (1,088) — (1,032) Ending balance $ 639 $ 1,071 $ 3,130 $ 1,420 $ 2,676 $ 208 $ 9,144 Period-end amount allocated to: Loans individually evaluated for impairment — 4 — 144 — — 148 Loans collectively evaluated for impairment 639 1,067 3,130 1,276 2,676 208 8,996 Ending balance $ 639 $ 1,071 $ 3,130 $ 1,420 $ 2,676 $ 208 $ 9,144 |
Summarized Loan Balances | The following summarizes information with respect to the loan balances at September 30, 2022 and 2021. September 30, 2022 September 30, 2021 Loans Loans Total Loans Loans Loans Total Loans (in 000's) Commercial and business loans $ — $ 62,333 $ 62,333 $ — $ 44,713 $ 44,713 Government program loans — 88 88 — 6,422 6,422 Total commercial and industrial — 62,421 62,421 — 51,135 51,135 Commercial real estate loans — 382,607 382,607 — 309,727 309,727 Residential mortgage loans 142 249,949 250,091 148 171,972 172,120 Home improvement and home equity loans — 52 52 — 83 83 Total real estate mortgage 142 632,608 632,750 148 481,782 481,930 Real estate construction and development loans 11,015 150,556 161,571 11,273 154,097 165,370 Agricultural loans 672 56,624 57,296 330 55,761 56,091 Installment and student loans — 46,511 46,511 — 53,411 53,411 Total loans $ 11,829 $ 948,720 $ 960,549 $ 11,751 $ 796,186 $ 807,937 |
Student Loans (Tables)
Student Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Credit Quality Indicators for Outstanding Student Loans | The following tables summarize the credit quality indicators for outstanding student loans as of September 30, 2022 and December 31, 2021 (in 000's, except for number of borrowers): September 30, 2022 December 31, 2021 Number of Loans Amount Accrued Interest Number of Loans Amount Accrued Interest School 82 $ 2,370 $ 1,015 185 $ 6,555 $ 2,021 Grace 75 2,781 952 28 912 317 Repayment 414 18,888 418 500 23,834 715 Deferment 253 10,498 1,444 224 8,984 508 Forbearance 190 9,161 833 177 8,172 1,077 Total 1,014 $ 43,698 $ 4,662 1,114 $ 48,457 $ 4,638 |
Summary of Student Loan Aging | The following is a summary of delinquent loans at September 30, 2022 (in 000's): September 30, 2022 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — $ 62,333 $ 62,333 $ — Government program loans — — — — 88 88 — Total commercial and industrial — — — — 62,421 62,421 — Commercial real estate loans — — — — 382,607 382,607 — Residential mortgages — — — — 250,091 250,091 — Home improvement and home equity loans 9 — — 9 43 52 — Total real estate mortgage 9 — — 9 632,741 632,750 — Real estate construction and development loans — — 9,021 9,021 152,550 161,571 — Agricultural loans — — 130 130 57,166 57,296 — Installment and student loans 585 56 — 641 45,870 46,511 — Total loans $ 594 $ 56 $ 9,151 $ 9,801 $ 950,748 $ 960,549 $ — The following is a summary of delinquent loans at December 31, 2021 (in 000's): December 31, 2021 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — $ 42,194 $ 42,194 $ — Government program loans — — — — 3,310 3,310 — Total commercial and industrial — — — — 45,504 45,504 — Commercial real estate loans — — — — 331,050 331,050 — Residential mortgages 6,745 — — 6,745 220,181 226,926 — Home improvement and home equity loans 12 — — 12 68 80 — Total real estate mortgage 6,757 — — 6,757 551,299 558,056 — Real estate construction and development loans — — 9,021 9,021 145,249 154,270 — Agricultural loans — — 209 209 60,030 60,239 — Installment and student loans 1,628 328 453 2,409 48,836 51,245 453 Total loans $ 8,385 $ 328 $ 9,683 $ 18,396 $ 850,918 $ 869,314 $ 453 The following tables summarize the student loan aging for loans in repayment and forbearance as of September 30, 2022 and December 31, 2021 (in 000's, except for number of borrowers): September 30, 2022 December 31, 2021 Number of Borrowers Amount Number of Borrowers Amount Current or less than 31 days 247 $ 27,409 272 $ 29,596 31 - 60 days 5 585 10 1,628 61 - 90 days 1 56 3 328 91 - 120 days — — 5 453 Total 253 $ 28,050 290 $ 32,005 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Deposits Summary | Deposits include the following: (in 000's) September 30, 2022 December 31, 2021 Noninterest-bearing deposits $ 517,230 $ 476,749 Interest-bearing deposits: NOW and money market accounts 517,820 529,841 Savings accounts 130,786 113,930 Time deposits: Under $250,000 53,492 46,631 $250,000 and over 21,490 20,955 Total interest-bearing deposits 723,588 711,357 Total deposits $ 1,240,818 $ 1,188,106 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Components of Lease Expense and Supplemental Balance Sheet Information | The components of lease expense were as follows: Three Months Ended Nine Months Ended (in 000's) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Operating lease expense $ 185 $ 184 $ 553 $ 520 Variable lease expense $ — $ 95 $ — $ 251 Total $ 185 $ 279 $ 553 $ 771 Supplemental balance sheet information related to leases was as follows: (in 000's) September 30, 2022 Operating cash flows from operating leases $ 553 Weighted-average remaining lease term in years for operating leases 4.59 Weighted-average discount rate for operating leases 5.12 % |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows: (in 000's) September 30, 2022 2023 $ 742 2024 640 2025 450 2026 218 2027 122 Thereafter 348 Total undiscounted cash flows 2,520 Less: present value discount (275) Present value of net future minimum lease payments $ 2,245 |
Supplemental Cash Flow Disclo_2
Supplemental Cash Flow Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Nine months ended September 30, (in 000's) 2022 2021 Cash paid during the period for: Interest $ 1,907 $ 1,529 Income taxes 4,825 3,030 Noncash investing activities: Unrealized gain on unrecognized post retirement costs, net of tax 47 52 Unrealized loss on available for sale securities, net of tax (20,591) (216) Unrealized gain on junior subordinated debentures, net of tax 2,408 223 Cash dividend declared 1,874 1,871 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Common Share | The following table provides a reconciliation of the numerator and the denominator of the basic EPS computation with the numerator and the denominator of the diluted EPS computation: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Net income (000's, except per share amounts) $ 4,467 $ 2,611 $ 10,345 $ 6,727 Weighted average shares issued 17,042,479 17,010,288 17,036,460 17,010,236 Add: dilutive effect of stock options 21,468 25,245 21,178 17,435 Weighted average shares outstanding adjusted for potential dilution 17,063,947 17,035,533 17,057,638 17,027,671 Basic earnings per share $ 0.26 $ 0.15 $ 0.61 $ 0.40 Diluted earnings per share $ 0.26 $ 0.15 $ 0.61 $ 0.40 Anti-dilutive stock options excluded from earnings per share calculation 93,000 60,000 93,000 101,000 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: September 30, 2022 (in 000's) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 202,378 $ 202,378 $ 3,436 $ 198,942 $ — Loans, net 952,103 902,836 — — 902,836 Accrued interest receivable 8,466 8,466 — 8,466 — Financial Liabilities: Deposits: Noninterest-bearing 517,230 517,230 517,230 — — NOW and money market 517,820 517,820 517,820 — — Savings 130,786 130,786 130,786 — — Time deposits 74,982 73,763 — — 73,763 Total deposits 1,240,818 1,239,599 1,165,836 — 73,763 Junior subordinated debt 10,305 10,305 — — 10,305 December 31, 2021 (in 000's) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 182,646 $ 182,651 $ 3,744 $ 178,907 $ — Loans 862,200 854,697 — — 854,697 Accrued interest receivable 7,530 7,530 — 7,530 — Financial Liabilities: Deposits: Noninterest-bearing 476,749 476,749 476,749 — — NOW and money market 529,841 529,841 529,841 — — Savings 113,930 113,930 113,930 — — Time deposits 67,586 67,922 — — 67,922 Total deposits 1,188,106 1,188,442 1,120,520 — 67,922 Junior subordinated debt 11,189 11,189 — — 11,189 |
Assets and Liabilities Measured at Fair Value on Recurring and Non-recurring Basis | The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of September 30, 2022 (in 000’s): Description of Assets September 30, 2022 Quoted Prices in Significant Other Significant AFS Securities (1): U.S. Government agencies $ 8,751 $ — $ 8,751 $ — U.S. Government collateralized mortgage obligations 98,522 — 98,522 — Municipal bonds 39,702 — 39,702 — U.S. Treasury securities 29,150 29,150 Corporate bond 32,435 — 32,435 — Total AFS securities 208,560 — 208,560 — Marketable equity securities (1) 3,287 3,287 — — Total $ 211,847 $ 3,287 $ 208,560 $ — Description of Liabilities September 30, 2022 Quoted Prices Significant Significant Junior subordinated debt (1) $ 10,305 — — $ 10,305 Total $ 10,305 — — $ 10,305 (1) Recurring There were no non-recurring fair value adjustments at September 30, 2022 or December 31, 2021. The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2021 (in 000’s): Description of Assets December 31, 2021 Quoted Prices Significant Significant AFS Securities (1): U.S. Government agencies $ 33,376 $ — $ 33,376 $ — U.S. Government collateralized mortgage obligations 64,735 — 64,735 Asset-backed securities 4,130 — 4,130 Municipal bonds 50,052 — 50,052 Treasury securities 15,187 15,187 Corporate bonds 11,422 — 11,422 — Total AFS securities 178,902 — 178,902 — Marketable equity securities (1) 3,744 3,744 — — Total $ 182,646 $ 3,744 $ 178,902 $ — Description of Liabilities December 31, 2021 Quoted Prices Significant Significant Junior subordinated debt (1) $ 11,189 $ — $ — $ 11,189 Total $ 11,189 $ — $ — $ 11,189 (1) Recurring |
Schedule of Quantitative Information about Level 3 Fair Value Measurements | The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 Financial Instrument Valuation Technique Unobservable Input Weighted Average Financial Instrument Valuation Technique Unobservable Input Weighted Average Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 7.09% Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 3.90% |
Significant Unobservable Inputs (Level 3) on a Recurring Basis | The following tables provide a reconciliation of assets and liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis at September 30, 2022 and 2021 (in 000’s): Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Reconciliation of Liabilities: Junior Junior Junior Junior Beginning balance $ 10,489 $ 11,253 $ 11,189 $ 10,924 Gross loss included in earnings 600 35 2,469 691 Gross (gain) loss related to changes in instrument specific credit risk (825) 8 (3,419) (317) Change in accrued interest 41 $ (1) 66 (3) Ending balance $ 10,305 $ 11,295 $ 10,305 $ 11,295 The amount of total loss for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date $ 600 $ 35 $ 2,469 $ 691 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows: September 30, 2022 December 31, 2021 (in 000's) Net unrealized (loss) on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized (loss) gain on junior subordinated debentures Net unrealized (loss) gain on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized gain (loss) on junior subordinated debentures Beginning balance $ (236) $ (627) $ (311) $ 630 $ (770) $ (588) Current period comprehensive (loss) income, net of tax (20,591) 47 2,408 (866) 143 277 Ending balance $ (20,827) $ (580) $ 2,097 $ (236) $ (627) $ (311) Accumulated other comprehensive loss $ (19,310) $ (1,174) |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Fair Value, Off-Balance Sheet Risks | The credit risk associated with these instruments is essentially the same as that involved in extending credit to customers and is represented by the contractual amount indicated in the table below: Contractual Amount (In thousands) September 30, 2022 December 31, 2021 Commitments to extend credit $ 164,030 $ 239,095 Standby letters of credit $ 1,719 $ 1,719 |
Investment Securities - Compari
Investment Securities - Comparison of Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 238,126 | $ 179,236 |
Gross Unrealized Gains | 18 | 998 |
Gross Unrealized Losses | (29,584) | (1,332) |
Fair Value (Carrying Amount) | 208,560 | 178,902 |
U.S. Government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,784 | 33,206 |
Gross Unrealized Gains | 11 | 260 |
Gross Unrealized Losses | (44) | (90) |
Fair Value (Carrying Amount) | 8,751 | 33,376 |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 113,893 | 64,880 |
Gross Unrealized Gains | 3 | 184 |
Gross Unrealized Losses | (15,374) | (329) |
Fair Value (Carrying Amount) | 98,522 | 64,735 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 29,994 | 15,186 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (844) | 0 |
Fair Value (Carrying Amount) | 29,150 | 15,187 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,092 | |
Gross Unrealized Gains | 38 | |
Gross Unrealized Losses | 0 | |
Fair Value (Carrying Amount) | 4,130 | |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 50,727 | 50,872 |
Gross Unrealized Gains | 0 | 86 |
Gross Unrealized Losses | (11,025) | (906) |
Fair Value (Carrying Amount) | 39,702 | 50,052 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 34,728 | 11,000 |
Gross Unrealized Gains | 4 | 429 |
Gross Unrealized Losses | (2,297) | (7) |
Fair Value (Carrying Amount) | $ 32,435 | $ 11,422 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities on Collateralized Mortgage Obligation (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 9,975 | |
Due after one year through five years | 39,245 | |
Due after five years through ten years | 65,056 | |
Due after ten years | 9,956 | |
Collateralized mortgage obligations | 113,894 | |
Amortized Cost | 238,126 | $ 179,236 |
Fair Value (Carrying Amount) | ||
Due in one year or less | 9,971 | |
Due after one year through five years | 36,924 | |
Due after five years through ten years | 54,911 | |
Due after ten years | 8,232 | |
Collateralized mortgage obligations | 98,522 | |
Fair Value (Carrying Amount) | $ 208,560 | $ 178,902 |
Investment Securities - Proceed
Investment Securities - Proceeds and Gross Realized (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales or calls | $ 15,676 | $ 0 |
Gross realized gains from sales or calls | 78 | 0 |
Gross realized losses from sales or calls | $ (48) | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) security | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) security segment | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
OTTI losses, investments | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of general segments for the segregation of portfolio | segment | 2 | ||||
Unrealized loss on marketable equity securities | (149,000) | $ (14,000) | $ (458,000) | $ (75,000) | |
Held-to-maturity securities | 0 | 0 | $ 0 | ||
Investment securities | $ 0 | $ 0 | 0 | ||
Municipal bonds | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available-for-sale, temporarily impaired, number of positions | security | 46 | 46 | |||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available-for-sale, temporarily impaired, number of positions | security | 53 | 53 | |||
Corporate bonds | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available-for-sale, temporarily impaired, number of positions | security | 9 | 9 | |||
U.S. Government agencies | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available-for-sale, temporarily impaired, number of positions | security | 4 | 4 | |||
U.S. Treasury securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available-for-sale, temporarily impaired, number of positions | security | 4 | 4 | |||
Carrying Amount | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | $ 80,400,000 | $ 80,400,000 | |||
Investment securities | 202,378,000 | 202,378,000 | 182,646,000 | ||
Estimated Fair Value | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | 69,800,000 | 69,800,000 | |||
Investment securities | $ 202,378,000 | $ 202,378,000 | $ 182,651,000 |
Investment Securities - Tempora
Investment Securities - Temporarily Impaired Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value (Carrying Amount) | ||
Less than 12 Months | $ 137,860 | $ 90,218 |
12 Months or More | 65,136 | 9,950 |
Total | 202,996 | 100,168 |
Unrealized Losses | ||
Less than 12 Months | (13,971) | (1,232) |
12 Months or More | (15,613) | (100) |
Total | (29,584) | (1,332) |
U.S. Government agencies | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 6,327 | 9,699 |
Total | 6,327 | 9,699 |
Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or More | (44) | (90) |
Total | (44) | (90) |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 71,123 | 37,258 |
12 Months or More | 27,093 | 23 |
Total | 98,216 | 37,281 |
Unrealized Losses | ||
Less than 12 Months | (8,533) | (329) |
12 Months or More | (6,841) | 0 |
Total | (15,374) | (329) |
Corporate bonds | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 29,600 | 5,993 |
12 Months or More | 0 | 0 |
Total | 29,600 | 5,993 |
Unrealized Losses | ||
Less than 12 Months | (2,297) | (7) |
12 Months or More | 0 | 0 |
Total | (2,297) | (7) |
Municipal bonds | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 7,986 | 39,551 |
12 Months or More | 31,716 | 228 |
Total | 39,702 | 39,779 |
Unrealized Losses | ||
Less than 12 Months | (2,298) | (896) |
12 Months or More | (8,728) | (10) |
Total | (11,026) | (906) |
U.S. Treasury securities | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 29,151 | 7,416 |
12 Months or More | 0 | 0 |
Total | 29,151 | 7,416 |
Unrealized Losses | ||
Less than 12 Months | (843) | 0 |
12 Months or More | 0 | 0 |
Total | $ (843) | $ 0 |
Loans - Loans (Details)
Loans - Loans (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 960,549,000 | $ 869,314,000 | $ 807,937,000 |
Commitments to extend credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fair value, concentration of risk, commitments | 164,030,000 | 239,095,000 | |
Standby letters of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fair value, concentration of risk, commitments | 1,719,000 | 1,719,000 | |
Unsecured debt | Paycheck Protection Program | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount of junior subordinated debentures relating to trust preferred securities | $ 14,000 | ||
Interest rate | 1% | ||
Unsecured debt | Paycheck Protection Program | Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Life of the debt instrument | 2 years | ||
Loan processing fee percentage | 3% | ||
Unsecured debt | Paycheck Protection Program | Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Life of the debt instrument | 5 years | ||
Loan processing fee percentage | 5% | ||
Commercial and Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 62,421,000 | 45,504,000 | 51,135,000 |
Percentage of total loans | 6.50% | ||
Commercial and Industrial | Commercial and business loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 62,333,000 | 42,194,000 | 44,713,000 |
Commercial and Industrial | Government program loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 88,000 | 3,310,000 | 6,422,000 |
Real estate mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 632,750,000 | 558,056,000 | 481,930,000 |
Percentage of total loans | 65.90% | ||
Real estate mortgage | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 382,607,000 | 331,050,000 | 309,727,000 |
Real estate mortgage | Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 250,091,000 | 226,926,000 | 172,120,000 |
Real estate mortgage | Home improvement and home equity loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 52,000 | 80,000 | 83,000 |
Real estate construction and development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 161,571,000 | 154,270,000 | 165,370,000 |
Percentage of total loans | 16.80% | ||
Agricultural | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 57,296,000 | 60,239,000 | 56,091,000 |
Percentage of total loans | 6% | ||
Installment and student loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 46,511,000 | $ 51,245,000 | $ 53,411,000 |
Percentage of total loans | 4.80% |
Loans - Delinquent Loans (Detai
Loans - Delinquent Loans (Details) | 9 Months Ended | ||
Sep. 30, 2022 USD ($) payment | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | |
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | $ 9,801,000 | $ 18,396,000 | |
Current Loans | 950,748,000 | 850,918,000 | |
Total Loans | 960,549,000 | 869,314,000 | $ 807,937,000 |
Accruing Loans 90 or More Days Past Due | $ 0 | 453,000 | |
Minimum period of default | 90 days | ||
Number of monthly payments to demonstrate repayment ability | payment | 6 | ||
Undisbursed commitments | $ 0 | 0 | |
Total nonaccrual loans | 11,145,000 | 11,438,000 | |
Commercial and Industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Current Loans | 62,421,000 | 45,504,000 | |
Total Loans | 62,421,000 | 45,504,000 | 51,135,000 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Commercial and Industrial | Commercial and business loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Current Loans | 62,333,000 | 42,194,000 | |
Total Loans | 62,333,000 | 42,194,000 | 44,713,000 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Commercial and Industrial | Government program loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Current Loans | 88,000 | 3,310,000 | |
Total Loans | 88,000 | 3,310,000 | 6,422,000 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Real estate mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 9,000 | 6,757,000 | |
Current Loans | 632,741,000 | 551,299,000 | |
Total Loans | 632,750,000 | 558,056,000 | 481,930,000 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Real estate mortgage | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Current Loans | 382,607,000 | 331,050,000 | |
Total Loans | 382,607,000 | 331,050,000 | 309,727,000 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Real estate mortgage | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 6,745,000 | |
Current Loans | 250,091,000 | 220,181,000 | |
Total Loans | 250,091,000 | 226,926,000 | 172,120,000 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 9,000 | 12,000 | |
Current Loans | 43,000 | 68,000 | |
Total Loans | 52,000 | 80,000 | 83,000 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Real estate construction and development | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 9,021,000 | 9,021,000 | |
Current Loans | 152,550,000 | 145,249,000 | |
Total Loans | 161,571,000 | 154,270,000 | 165,370,000 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Total nonaccrual loans | 11,015,000 | 11,226,000 | |
Agricultural loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 130,000 | 209,000 | |
Current Loans | 57,166,000 | 60,030,000 | |
Total Loans | 57,296,000 | 60,239,000 | 56,091,000 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Total nonaccrual loans | 130,000 | 212,000 | |
Installment and student loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 641,000 | 2,409,000 | |
Current Loans | 45,870,000 | 48,836,000 | |
Total Loans | 46,511,000 | 51,245,000 | $ 53,411,000 |
Accruing Loans 90 or More Days Past Due | 0 | 453,000 | |
Loans 30-60 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 594,000 | 8,385,000 | |
Loans 30-60 Days Past Due | Commercial and Industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Commercial and Industrial | Commercial and business loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Commercial and Industrial | Government program loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Real estate mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 9,000 | 6,757,000 | |
Loans 30-60 Days Past Due | Real estate mortgage | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Real estate mortgage | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 6,745,000 | |
Loans 30-60 Days Past Due | Real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 9,000 | 12,000 | |
Loans 30-60 Days Past Due | Real estate construction and development | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Agricultural loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Installment and student loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 585,000 | 1,628,000 | |
Loans 61-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 56,000 | 328,000 | |
Loans 61-89 Days Past Due | Commercial and Industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Commercial and Industrial | Commercial and business loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Commercial and Industrial | Government program loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Real estate mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Real estate mortgage | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Real estate mortgage | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Real estate construction and development | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Agricultural loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Installment and student loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 56,000 | 328,000 | |
Loans 90 or More Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 9,151,000 | 9,683,000 | |
Loans 90 or More Days Past Due | Commercial and Industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Commercial and Industrial | Commercial and business loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Commercial and Industrial | Government program loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Real estate mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Real estate mortgage | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Real estate mortgage | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Real estate construction and development | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 9,021,000 | 9,021,000 | |
Loans 90 or More Days Past Due | Agricultural loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | 130,000 | 209,000 | |
Loans 90 or More Days Past Due | Installment and student loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due Loans | $ 0 | $ 453,000 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | $ 11,827 | $ 11,827 | $ 12,032 | ||
Recorded investment with no allowance | 11,557 | 11,557 | 11,679 | ||
Recorded investment with allowance | 272 | 272 | 355 | ||
Total Recorded Investment | 11,829 | 11,829 | 12,034 | ||
Related Allowance | 70 | 70 | 130 | ||
Average recorded investment | 11,857 | $ 11,792 | 11,923 | $ 13,007 | 12,813 |
Interest recognized | 52 | 59 | 195 | 231 | 319 |
Accrued interest receivable | 2 | 2 | |||
Impaired financing receivable, interest income, cash basis method | 44 | $ 67 | 173 | $ 223 | |
Commercial and Industrial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 0 | 0 | 0 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average recorded investment | 0 | 266 | |||
Interest recognized | 0 | 0 | |||
Commercial and Industrial | Commercial and business loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 0 | 0 | 0 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average recorded investment | 0 | 156 | |||
Interest recognized | 0 | 0 | |||
Commercial and Industrial | Government program loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 0 | 0 | 0 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average recorded investment | 0 | 110 | |||
Interest recognized | 0 | 0 | |||
Real estate mortgage | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 142 | 142 | 146 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with allowance | 142 | 142 | 146 | ||
Total Recorded Investment | 142 | 142 | 146 | ||
Related Allowance | 3 | 3 | 3 | ||
Average recorded investment | 144 | 915 | |||
Interest recognized | 5 | 6 | |||
Real estate mortgage | Commercial real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 0 | 0 | 0 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average recorded investment | 0 | 538 | |||
Interest recognized | 0 | 0 | |||
Real estate mortgage | Residential mortgages | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 142 | 142 | 146 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with allowance | 142 | 142 | 146 | ||
Total Recorded Investment | 142 | 142 | 146 | ||
Related Allowance | 3 | 3 | 3 | ||
Average recorded investment | 144 | 377 | |||
Interest recognized | 5 | 6 | |||
Real estate mortgage | Home improvement and home equity loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 0 | 0 | |||
Recorded investment with no allowance | 0 | 0 | |||
Recorded investment with allowance | 0 | 0 | |||
Total Recorded Investment | 0 | 0 | |||
Related Allowance | 0 | 0 | |||
Average recorded investment | 0 | ||||
Interest recognized | 0 | ||||
Real estate construction and development | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 11,015 | 11,015 | 11,226 | ||
Recorded investment with no allowance | 11,015 | 11,015 | 11,226 | ||
Recorded investment with allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 11,015 | 11,015 | 11,226 | ||
Related Allowance | 0 | 0 | 0 | ||
Average recorded investment | 11,114 | 11,133 | |||
Interest recognized | 165 | 272 | |||
Agricultural | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 670 | 670 | 660 | ||
Recorded investment with no allowance | 542 | 542 | 453 | ||
Recorded investment with allowance | 130 | 130 | 209 | ||
Total Recorded Investment | 672 | 672 | 662 | ||
Related Allowance | 67 | 67 | 127 | ||
Average recorded investment | 665 | 499 | |||
Interest recognized | 25 | $ 41 | |||
Installment and student loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 0 | 0 | |||
Recorded investment with no allowance | 0 | 0 | |||
Recorded investment with allowance | 0 | 0 | |||
Total Recorded Investment | 0 | 0 | |||
Related Allowance | $ 0 | 0 | |||
Average recorded investment | 0 | ||||
Interest recognized | $ 0 |
Loans - TDR Activity by Loan Ca
Loans - TDR Activity by Loan Category (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing receivable, period of successful payment history used for restructured loan accrual status | 6 months | ||||
Troubled Debt Restructurings | |||||
Number of restructured loans | loan | 4 | 4 | 5 | ||
Total restructured loans | $ 2,300 | $ 2,300 | $ 2,600 | ||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 2,351 | $ 3,073 | 2,594 | $ 3,426 | |
Additions | 0 | 0 | 0 | 0 | |
Principal reductions | (85) | (311) | (328) | (664) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 2,266 | 2,762 | 2,266 | 2,762 | |
Allowance for loan loss | 70 | 148 | 70 | 148 | |
Defaults | 0 | 0 | 0 | 0 | |
Commercial and Industrial | |||||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | 0 | |
Additions | 0 | 0 | 0 | 0 | |
Principal reductions | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | |
Allowance for loan loss | 0 | 0 | 0 | 0 | |
Defaults | 0 | 0 | 0 | 0 | |
Real estate mortgage | Commercial real estate | |||||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | 0 | |
Additions | 0 | 0 | 0 | 0 | |
Principal reductions | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | |
Allowance for loan loss | 0 | 0 | 0 | 0 | |
Defaults | 0 | 0 | 0 | 0 | |
Real estate mortgage | Residential mortgages | |||||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 143 | 359 | 146 | 365 | |
Additions | 0 | 0 | 0 | 0 | |
Principal reductions | (1) | (212) | (4) | (218) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 142 | 147 | 142 | 147 | |
Allowance for loan loss | 3 | 4 | 3 | 4 | |
Defaults | 0 | 0 | 0 | 0 | |
Real estate mortgage | Home improvement and home equity loans | |||||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | 0 | |
Additions | 0 | 0 | 0 | 0 | |
Principal reductions | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | |
Allowance for loan loss | 0 | 0 | 0 | 0 | |
Defaults | 0 | 0 | 0 | 0 | |
Real estate construction and development | |||||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 2,047 | 2,335 | 2,206 | 2,452 | |
Additions | 0 | 0 | 0 | 0 | |
Principal reductions | (53) | (50) | (212) | (167) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 1,994 | 2,285 | 1,994 | 2,285 | |
Allowance for loan loss | 0 | 0 | 0 | 0 | |
Defaults | 0 | 0 | 0 | 0 | |
Agricultural loans | |||||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 161 | 379 | 242 | 609 | |
Additions | 0 | 0 | 0 | 0 | |
Principal reductions | (31) | (49) | (112) | (279) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 130 | 330 | 130 | 330 | |
Allowance for loan loss | 67 | 144 | 67 | 144 | |
Defaults | 0 | 0 | 0 | 0 | |
Installment and student loans | |||||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | 0 | |
Additions | 0 | 0 | 0 | 0 | |
Principal reductions | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | |
Allowance for loan loss | 0 | 0 | 0 | 0 | |
Defaults | $ 0 | $ 0 | $ 0 | $ 0 |
Loans - Credit Risk Rating for
Loans - Credit Risk Rating for Commercial, Construction and Non-Consumer Related Loans (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) rating | Dec. 31, 2021 USD ($) | |
Receivables [Abstract] | ||
Number of risk rating approaches | rating | 2 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | $ 952,103 | $ 862,200 |
Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 62,421 | 45,504 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 382,607 | 331,050 |
Commercial Real Estate | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 250,091 | 226,926 |
Commercial Real Estate | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 52 | 80 |
Real Estate Construction and Development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 161,571 | 154,270 |
Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 57,296 | 60,239 |
Commercial, Construction and Other Non-Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 663,895 | 591,063 |
Installment and student loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 46,511 | 51,245 |
Real Estate and Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 296,654 | 278,251 |
Grades 1 and 2 | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 233 | 3,447 |
Grades 1 and 2 | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grades 1 and 2 | Real Estate Construction and Development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grades 1 and 2 | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grades 1 and 2 | Commercial, Construction and Other Non-Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 233 | 3,447 |
Grade 3 | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grade 3 | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 92 |
Grade 3 | Real Estate Construction and Development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grade 3 | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grade 3 | Commercial, Construction and Other Non-Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 92 |
Grades 4 and 5 – pass | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 62,188 | 42,054 |
Grades 4 and 5 – pass | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 347,817 | 301,866 |
Grades 4 and 5 – pass | Real Estate Construction and Development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 150,556 | 143,044 |
Grades 4 and 5 – pass | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 55,609 | 46,739 |
Grades 4 and 5 – pass | Commercial, Construction and Other Non-Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 616,170 | 533,703 |
Grade 6 – special mention | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grade 6 – special mention | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 34,790 | 29,092 |
Grade 6 – special mention | Real Estate Construction and Development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grade 6 – special mention | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 1,017 | 11,197 |
Grade 6 – special mention | Commercial, Construction and Other Non-Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 35,807 | 40,289 |
Grade 7 – substandard | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 3 |
Grade 7 – substandard | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grade 7 – substandard | Real Estate Construction and Development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 11,015 | 11,226 |
Grade 7 – substandard | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 670 | 2,303 |
Grade 7 – substandard | Commercial, Construction and Other Non-Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 11,685 | 13,532 |
Grade 8 – doubtful | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grade 8 – doubtful | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grade 8 – doubtful | Real Estate Construction and Development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grade 8 – doubtful | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Grade 8 – doubtful | Commercial, Construction and Other Non-Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Not graded | Commercial Real Estate | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 233,955 | 211,622 |
Not graded | Commercial Real Estate | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 43 | 68 |
Not graded | Installment and student loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 46,387 | 50,421 |
Not graded | Real Estate and Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 280,385 | 262,111 |
Pass | Commercial Real Estate | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 16,136 | 15,304 |
Pass | Commercial Real Estate | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 9 | 12 |
Pass | Installment and student loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 124 | 371 |
Pass | Real Estate and Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 16,269 | 15,687 |
Special mention | Commercial Real Estate | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Special mention | Commercial Real Estate | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Special mention | Installment and student loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Special mention | Real Estate and Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Substandard | Commercial Real Estate | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Substandard | Commercial Real Estate | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Substandard | Installment and student loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 453 |
Substandard | Real Estate and Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 453 |
Doubtful | Commercial Real Estate | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Doubtful | Commercial Real Estate | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Doubtful | Installment and student loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | 0 | 0 |
Doubtful | Real Estate and Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans outstanding | $ 0 | $ 0 |
Minimum | Grades 4 and 5 – pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Notes receivable, period of loss recognition | 3 years | |
Maximum | Grades 4 and 5 – pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Notes receivable, period of loss recognition | 4 years |
Loans - Allowance for Credit Lo
Loans - Allowance for Credit Losses by Loan Category (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Number of loan portfolio segment | segment | 10 | ||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||
Beginning balance | $ 9,907 | $ 9,200 | $ 9,333 | $ 8,522 | |
Provision for Loan, Lease, and Other Losses | 607 | 453 | 1,218 | 1,654 | |
Charge-offs | (464) | (533) | (828) | (1,199) | |
Recoveries | 13 | 24 | 340 | 167 | |
Net recoveries (charge-offs) | (451) | (509) | (488) | (1,032) | |
Ending balance | 10,063 | 9,144 | 10,063 | 9,144 | |
Period-end amount allocated to: | |||||
Loans individually evaluated for impairment | 70 | 148 | 70 | 148 | |
Loans collectively evaluated for impairment | 9,993 | 8,996 | 9,993 | 8,996 | |
Ending balance | 10,063 | 9,144 | 10,063 | 9,144 | $ 9,333 |
Loans Individually Evaluated for Impairment | 11,829 | 11,751 | 11,829 | 11,751 | |
Loans Collectively Evaluated for Impairment | 948,720 | 796,186 | 948,720 | 796,186 | |
Total Loans | 960,549 | 807,937 | 960,549 | 807,937 | 869,314 |
Commercial and Industrial | |||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||
Beginning balance | 836 | 632 | 597 | 625 | |
Provision for Loan, Lease, and Other Losses | 111 | 5 | 82 | (27) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 1 | 2 | 269 | 41 | |
Net recoveries (charge-offs) | 1 | 2 | 269 | 41 | |
Ending balance | 948 | 639 | 948 | 639 | |
Period-end amount allocated to: | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 948 | 639 | 948 | 639 | |
Ending balance | 948 | 639 | 948 | 639 | 597 |
Loans Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 62,421 | 51,135 | 62,421 | 51,135 | |
Total Loans | 62,421 | 51,135 | 62,421 | 51,135 | 45,504 |
Commercial and Industrial | Commercial and business loans | |||||
Period-end amount allocated to: | |||||
Loans Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 62,333 | 44,713 | 62,333 | 44,713 | |
Total Loans | 62,333 | 44,713 | 62,333 | 44,713 | 42,194 |
Commercial and Industrial | Government program loans | |||||
Period-end amount allocated to: | |||||
Loans Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 88 | 6,422 | 88 | 6,422 | |
Total Loans | 88 | 6,422 | $ 88 | 6,422 | 3,310 |
Real Estate Mortgage | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Number of segments | segment | 3 | ||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||
Beginning balance | 1,298 | 1,087 | $ 1,174 | 575 | |
Provision for Loan, Lease, and Other Losses | 23 | (20) | 141 | 481 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 4 | 4 | 10 | 15 | |
Net recoveries (charge-offs) | 4 | 4 | 10 | 15 | |
Ending balance | 1,325 | 1,071 | 1,325 | 1,071 | |
Period-end amount allocated to: | |||||
Loans individually evaluated for impairment | 3 | 4 | 3 | 4 | |
Loans collectively evaluated for impairment | 1,322 | 1,067 | 1,322 | 1,067 | |
Ending balance | 1,325 | 1,071 | 1,325 | 1,071 | 1,174 |
Loans Individually Evaluated for Impairment | 142 | 148 | 142 | 148 | |
Loans Collectively Evaluated for Impairment | 632,608 | 481,782 | 632,608 | 481,782 | |
Total Loans | 632,750 | 481,930 | 632,750 | 481,930 | 558,056 |
Real Estate Mortgage | Commercial real estate | |||||
Period-end amount allocated to: | |||||
Loans Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 382,607 | 309,727 | 382,607 | 309,727 | |
Total Loans | 382,607 | 309,727 | 382,607 | 309,727 | 331,050 |
Real Estate Mortgage | Residential mortgages | |||||
Period-end amount allocated to: | |||||
Loans Individually Evaluated for Impairment | 142 | 148 | 142 | 148 | |
Loans Collectively Evaluated for Impairment | 249,949 | 171,972 | 249,949 | 171,972 | |
Total Loans | 250,091 | 172,120 | 250,091 | 172,120 | 226,926 |
Real Estate Mortgage | Home improvement and home equity loans | |||||
Period-end amount allocated to: | |||||
Loans Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 52 | 83 | 52 | 83 | |
Total Loans | 52 | 83 | 52 | 83 | 80 |
Real estate construction and development | |||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||
Beginning balance | 3,528 | 3,213 | 2,840 | 3,722 | |
Provision for Loan, Lease, and Other Losses | 81 | (83) | 769 | (592) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net recoveries (charge-offs) | 0 | 0 | 0 | 0 | |
Ending balance | 3,609 | 3,130 | 3,609 | 3,130 | |
Period-end amount allocated to: | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 3,609 | 3,130 | 3,609 | 3,130 | |
Ending balance | 3,609 | 3,130 | 3,609 | 3,130 | 2,840 |
Loans Individually Evaluated for Impairment | 11,015 | 11,273 | 11,015 | 11,273 | |
Loans Collectively Evaluated for Impairment | 150,556 | 154,097 | 150,556 | 154,097 | |
Total Loans | 161,571 | 165,370 | 161,571 | 165,370 | 154,270 |
Agricultural | |||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||
Beginning balance | 1,120 | 1,106 | 1,233 | 711 | |
Provision for Loan, Lease, and Other Losses | (554) | 314 | (703) | 709 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 36 | 0 | |
Net recoveries (charge-offs) | 0 | 0 | 36 | 0 | |
Ending balance | 566 | 1,420 | 566 | 1,420 | |
Period-end amount allocated to: | |||||
Loans individually evaluated for impairment | 67 | 144 | 67 | 144 | |
Loans collectively evaluated for impairment | 499 | 1,276 | 499 | 1,276 | |
Ending balance | 566 | 1,420 | 566 | 1,420 | 1,233 |
Loans Individually Evaluated for Impairment | 672 | 330 | 672 | 330 | |
Loans Collectively Evaluated for Impairment | 56,624 | 55,761 | 56,624 | 55,761 | |
Total Loans | 57,296 | 56,091 | 57,296 | 56,091 | 60,239 |
Installment and Student Loans | |||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||
Beginning balance | 2,634 | 2,789 | 2,720 | 2,614 | |
Provision for Loan, Lease, and Other Losses | 413 | 402 | 674 | 1,150 | |
Charge-offs | (464) | (533) | (828) | (1,199) | |
Recoveries | 8 | 18 | 25 | 111 | |
Net recoveries (charge-offs) | (456) | (515) | (803) | (1,088) | |
Ending balance | 2,591 | 2,676 | 2,591 | 2,676 | |
Period-end amount allocated to: | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 2,591 | 2,676 | 2,591 | 2,676 | |
Ending balance | 2,591 | 2,676 | 2,591 | 2,676 | 2,720 |
Loans Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 46,511 | 53,411 | 46,511 | 53,411 | |
Total Loans | 46,511 | 53,411 | 46,511 | 53,411 | 51,245 |
Unallocated | |||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||
Beginning balance | 491 | 373 | 769 | 275 | |
Provision for Loan, Lease, and Other Losses | 533 | (165) | 255 | (67) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net recoveries (charge-offs) | 0 | 0 | 0 | 0 | |
Ending balance | 1,024 | 208 | 1,024 | 208 | |
Period-end amount allocated to: | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 1,024 | 208 | 1,024 | 208 | |
Ending balance | $ 1,024 | $ 208 | $ 1,024 | $ 208 | $ 769 |
Student Loans - Narrative (Deta
Student Loans - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) loan | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans | $ 960,549,000 | $ 807,937,000 | $ 960,549,000 | $ 807,937,000 | $ 869,314,000 | |||
Interest receivable | 8,466,000 | 8,466,000 | 7,530,000 | |||||
Allowance for losses | 10,063,000 | 9,144,000 | 10,063,000 | 9,144,000 | $ 9,907,000 | 9,333,000 | $ 9,200,000 | $ 8,522,000 |
TDRs | 2,266,000 | 2,762,000 | 2,266,000 | 2,762,000 | $ 2,351,000 | 2,594,000 | $ 3,073,000 | $ 3,426,000 |
Accrued interest receivable, charged against interest income | (12,730,000) | (9,337,000) | (32,577,000) | (26,274,000) | ||||
Student loan | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans | 43,698,000 | 43,698,000 | 48,457,000 | |||||
Interest receivable | $ 4,662,000 | $ 4,662,000 | $ 4,638,000 | |||||
Number of Loans | loan | 1,014 | 1,014 | 1,114 | |||||
Allowance for losses | $ 2,561,000 | $ 2,561,000 | $ 2,647,000 | |||||
TDRs | 0 | 0 | 0 | |||||
Accrued interest receivable, charged against interest income | (86,000) | (530,000) | (100,000) | (1,183,000) | ||||
Charge-off of loans | 457,000 | $ 54,000 | 810,000 | $ 97,000 | ||||
Student loan | Special mention | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans | 0 | 0 | 453,000 | |||||
Student loan | School | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Interest receivable | $ 1,967,000 | $ 1,967,000 | $ 2,338,000 | |||||
Student loan | Repayment, Deferment, and Forbearance | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of Loans | loan | 857 | 857 | 901 | |||||
Student loan | Repayment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans | $ 18,888,000 | $ 18,888,000 | $ 23,834,000 | |||||
Interest receivable | $ 418,000 | $ 418,000 | $ 715,000 | |||||
Number of Loans | loan | 414 | 414 | 500 | |||||
Student loan | Deferment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans | $ 10,498,000 | $ 10,498,000 | $ 8,984,000 | |||||
Interest receivable | $ 1,444,000 | $ 1,444,000 | $ 508,000 | |||||
Number of Loans | loan | 253 | 253 | 224 | |||||
Student loan | Forbearance | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans | $ 9,161,000 | $ 9,161,000 | $ 8,172,000 | |||||
Interest receivable | $ 833,000 | $ 833,000 | $ 1,077,000 | |||||
Number of Loans | loan | 190 | 190 | 177 | |||||
Student loan | Not yet entered repayment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans | $ 2,370,000 | $ 2,370,000 | $ 6,555,000 | |||||
Interest receivable | $ 1,015,000 | $ 1,015,000 | $ 2,021,000 | |||||
Number of Loans | loan | 82 | 82 | 185 |
Student Loans - Credit Quality
Student Loans - Credit Quality Indicators (Details) $ in Thousands | Sep. 30, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Sep. 30, 2021 USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | $ 960,549 | $ 869,314 | $ 807,937 |
Accrued Interest | $ 8,466 | $ 7,530 | |
Student loan | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 1,014 | 1,114 | |
Total Loans | $ 43,698 | $ 48,457 | |
Accrued Interest | $ 4,662 | $ 4,638 | |
Student loan | School | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 82 | 185 | |
Total Loans | $ 2,370 | $ 6,555 | |
Accrued Interest | $ 1,015 | $ 2,021 | |
Student loan | Grace | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 75 | 28 | |
Total Loans | $ 2,781 | $ 912 | |
Accrued Interest | $ 952 | $ 317 | |
Student loan | Repayment | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 414 | 500 | |
Total Loans | $ 18,888 | $ 23,834 | |
Accrued Interest | $ 418 | $ 715 | |
Student loan | Deferment | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 253 | 224 | |
Total Loans | $ 10,498 | $ 8,984 | |
Accrued Interest | $ 1,444 | $ 508 | |
Student loan | Forbearance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 190 | 177 | |
Total Loans | $ 9,161 | $ 8,172 | |
Accrued Interest | $ 833 | $ 1,077 |
Student Loans - Aging for Loans
Student Loans - Aging for Loans (Details) $ in Thousands | Sep. 30, 2022 USD ($) borrower | Dec. 31, 2021 USD ($) borrower | Sep. 30, 2021 USD ($) |
Amount | |||
Total Loans | $ 960,549 | $ 869,314 | $ 807,937 |
Student loan | |||
Amount | |||
Total Loans | $ 43,698 | $ 48,457 | |
Student loan | Repayment and Forbearance | |||
Number of Borrowers | |||
Total | borrower | 253,000 | 290,000 | |
Amount | |||
Total Loans | $ 28,050 | $ 32,005 | |
Student loan | Repayment and Forbearance | Current or less than 31 days | |||
Number of Borrowers | |||
Number of borrowers, current | borrower | 247,000 | 272,000 | |
Amount | |||
Total Loans | $ 27,409 | $ 29,596 | |
Student loan | Repayment and Forbearance | 31 - 60 days | |||
Number of Borrowers | |||
Number of borrowers, past due | borrower | 5,000 | 10,000 | |
Amount | |||
Total Loans | $ 585 | $ 1,628 | |
Student loan | Repayment and Forbearance | 61 - 90 days | |||
Number of Borrowers | |||
Number of borrowers, past due | borrower | 1,000 | 3,000 | |
Amount | |||
Total Loans | $ 56 | $ 328 | |
Student loan | Repayment and Forbearance | 91 - 120 days | |||
Number of Borrowers | |||
Number of borrowers, past due | borrower | 0 | 5,000 | |
Amount | |||
Total Loans | $ 0 | $ 453 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Noninterest-bearing deposits | $ 517,230 | $ 476,749 |
Interest-bearing deposits: | ||
NOW and money market accounts | 517,820 | 529,841 |
Savings accounts | 130,786 | 113,930 |
Time deposits: | ||
Under $250,000 | 53,492 | 46,631 |
$250,000 and over | 21,490 | 20,955 |
Total interest-bearing deposits | 723,588 | 711,357 |
Total deposits | $ 1,240,818 | $ 1,188,106 |
Short-term Borrowings_Other B_2
Short-term Borrowings/Other Borrowings (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Short-term Debt [Line Items] | ||
Short-term debt outstanding | $ 0 | $ 0 |
Federal Reserve Bank of San Francisco | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 419,300,000 | 320,600,000 |
Qualifying loans pledged as collateral for borrowing lines | 571,100,000 | 490,500,000 |
Federal Home Loan Bank (FHLB) | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 2,200,000 | 3,100,000 |
Investment securities pledged as collateral | 2,400,000 | 3,400,000 |
P N C | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 40,000,000 | 40,000,000 |
Pacific Coast Bankers Bank | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 50,000,000 | 50,000,000 |
Union Bank | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 10,000,000 | 10,000,000 |
Zions First National Bank | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | $ 20,000,000 | $ 20,000,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 contract | |
Leases [Abstract] | |
Operating lease, number of contracts | 13 |
Financing lease, number of contracts | 0 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease expense | $ 185 | $ 184 | $ 553 | $ 520 |
Variable lease expense | 0 | 95 | 0 | 251 |
Total | $ 185 | $ 279 | $ 553 | $ 771 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 553 |
Weighted-average remaining lease term in years for operating leases | 4 years 7 months 2 days |
Weighted-average discount rate for operating leases | 5.12% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 742 | |
2024 | 640 | |
2025 | 450 | |
2026 | 218 | |
2027 | 122 | |
Thereafter | 348 | |
Total undiscounted cash flows | 2,520 | |
Less: present value discount | (275) | |
Present value of net future minimum lease payments | $ 2,245 | $ 2,705 |
Supplemental Cash Flow Disclo_3
Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash paid during the period for: | ||||
Interest | $ 1,907 | $ 1,529 | ||
Income taxes | 4,825 | 3,030 | ||
Noncash investing activities: | ||||
Unrealized gain on unrecognized post retirement costs, net of tax | 47 | 52 | ||
Unrealized loss on available for sale securities, net of tax | (20,591) | (216) | ||
Unrealized gain on junior subordinated debentures, net of tax | $ 581 | $ (6) | 2,408 | 223 |
Cash dividend declared | $ 1,874 | $ 1,871 |
Dividends on Common Stock (Deta
Dividends on Common Stock (Details) - USD ($) | 3 Months Ended | ||||||||
Jun. 28, 2022 | Mar. 22, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Equity [Abstract] | |||||||||
Dividends declared on common stock (in usd per share) | $ 0.11 | $ 0.11 | |||||||
Common stock dividends | $ 1,874,000 | $ 1,874,000 | $ 1,877,000 | $ 1,875,000 | $ 1,874,000 | $ 1,872,000 | $ 1,871,000 | $ 1,870,000 | $ 1,876,000 |
Authorized repurchase amount, common stock | $ 3,000,000 |
Net Income per Common Share (De
Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 4,467 | $ 2,611 | $ 10,345 | $ 6,727 |
Weighted average shares issued (in shares) | 17,042,479 | 17,010,288 | 17,036,460 | 17,010,236 |
Add: dilutive effect of stock options (in shares) | 21,468 | 25,245 | 21,178 | 17,435 |
Weighted average shares outstanding adjusted for potential dilution (in shares) | 17,063,947 | 17,035,533 | 17,057,638 | 17,027,671 |
Basic earnings per share (in usd per share) | $ 0.26 | $ 0.15 | $ 0.61 | $ 0.40 |
Diluted earnings per share (in usd per share) | $ 0.26 | $ 0.15 | $ 0.61 | $ 0.40 |
Anti-dilutive stock options excluded from earnings per share calculation (in shares) | 93,000 | 60,000 | 93,000 | 101,000 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Deferred tax assets, valuation allowance | $ 0 | $ 0 | $ 0 | ||
Provision for taxes on income | $ 1,837,000 | $ 1,039,000 | $ 4,199,000 | $ 2,653,000 | |
Effective income tax rate, percent | 29.10% | 28.50% | 28.90% | 28.30% |
Junior Subordinated Debt_Trus_2
Junior Subordinated Debt/Trust Preferred Securities (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||
Gains (losses) on fair value liability, before tax | $ 225,000 | $ (43,000) | $ 950,000 | $ (373,000) | |
Loss on fair value of financial liability, gross | 600,000 | 35,000 | 2,469,000 | 691,000 | |
Loss on fair value of financial liability, net | 423,000 | 25,000 | 1,739,000 | 487,000 | |
Unrealized gain (loss) on junior subordinated debentures | 825,000 | (8,000) | 3,419,000 | 317,000 | |
Unrealized (loss) gain on junior subordinated debentures net of taxes | 581,000 | $ (6,000) | 2,408,000 | $ 223,000 | |
Junior Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Amount of junior subordinated debentures relating to trust preferred securities | 12,000,000 | 12,000,000 | $ 12,000,000 | ||
Fair value measurement option, gain (loss) on long-term debt instruments | $ 1,550,000 | $ 1,550,000 | |||
Junior Subordinated Debt | Measurement Input, Discount Rate | |||||
Debt Instrument [Line Items] | |||||
Weighted average inputs (percent) | 0.0709 | 0.0709 | |||
Junior Subordinated Debt | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 129% |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosure - Summary of Fair Value Estimates (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Investment securities | $ 0 | $ 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | ||
Financial Assets: | ||
Investment securities | 3,436,000 | 3,744,000 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits: | ||
Noninterest-bearing | 517,230,000 | 476,749,000 |
NOW and money market | 517,820,000 | 529,841,000 |
Savings | 130,786,000 | 113,930,000 |
Time deposits | 0 | 0 |
Total deposits | 1,165,836,000 | 1,120,520,000 |
Junior subordinated debt | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Financial Assets: | ||
Investment securities | 198,942,000 | 178,907,000 |
Loans, net | 0 | 0 |
Accrued interest receivable | 8,466,000 | 7,530,000 |
Deposits: | ||
Noninterest-bearing | 0 | 0 |
NOW and money market | 0 | 0 |
Savings | 0 | 0 |
Time deposits | 0 | 0 |
Total deposits | 0 | 0 |
Junior subordinated debt | 0 | 0 |
Significant Unobservable Inputs Level 3 | ||
Financial Assets: | ||
Investment securities | 0 | 0 |
Loans, net | 902,836,000 | 854,697,000 |
Accrued interest receivable | 0 | 0 |
Deposits: | ||
Noninterest-bearing | 0 | 0 |
NOW and money market | 0 | 0 |
Savings | 0 | 0 |
Time deposits | 73,763,000 | 67,922,000 |
Total deposits | 73,763,000 | 67,922,000 |
Junior subordinated debt | 10,305,000 | 11,189,000 |
Carrying Amount | ||
Financial Assets: | ||
Investment securities | 202,378,000 | 182,646,000 |
Loans, net | 952,103,000 | 862,200,000 |
Accrued interest receivable | 8,466,000 | 7,530,000 |
Deposits: | ||
Noninterest-bearing | 517,230,000 | 476,749,000 |
NOW and money market | 517,820,000 | 529,841,000 |
Savings | 130,786,000 | 113,930,000 |
Time deposits | 74,982,000 | 67,586,000 |
Total deposits | 1,240,818,000 | 1,188,106,000 |
Junior subordinated debt | 10,305,000 | 11,189,000 |
Estimated Fair Value | ||
Financial Assets: | ||
Investment securities | 202,378,000 | 182,651,000 |
Loans, net | 902,836,000 | 854,697,000 |
Accrued interest receivable | 8,466,000 | 7,530,000 |
Deposits: | ||
Noninterest-bearing | 517,230,000 | 476,749,000 |
NOW and money market | 517,820,000 | 529,841,000 |
Savings | 130,786,000 | 113,930,000 |
Time deposits | 73,763,000 | 67,922,000 |
Total deposits | 1,239,599,000 | 1,188,442,000 |
Junior subordinated debt | $ 10,305,000 | $ 11,189,000 |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosure - Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
AFS Securities: | ||
Total AFS securities | $ 208,560 | $ 178,902 |
Marketable equity securities | 3,287 | 3,744 |
U.S. Government agencies | ||
AFS Securities: | ||
Total AFS securities | 8,751 | 33,376 |
U.S. Government collateralized mortgage obligations | ||
AFS Securities: | ||
Total AFS securities | 98,522 | 64,735 |
Asset-backed securities | ||
AFS Securities: | ||
Total AFS securities | 4,130 | |
Municipal bonds | ||
AFS Securities: | ||
Total AFS securities | 39,702 | 50,052 |
U.S. Treasury securities | ||
AFS Securities: | ||
Total AFS securities | 29,150 | 15,187 |
Corporate bonds | ||
AFS Securities: | ||
Total AFS securities | 32,435 | 11,422 |
Fair value, measurements, recurring | ||
AFS Securities: | ||
Total AFS securities | 208,560 | 178,902 |
Marketable equity securities | 3,287 | 3,744 |
Total | 211,847 | 182,646 |
Description of Liabilities | ||
Junior subordinated debt | 10,305 | 11,189 |
Total | 10,305 | 11,189 |
Fair value, measurements, recurring | U.S. Government agencies | ||
AFS Securities: | ||
Total AFS securities | 8,751 | 33,376 |
Fair value, measurements, recurring | U.S. Government collateralized mortgage obligations | ||
AFS Securities: | ||
Total AFS securities | 98,522 | 64,735 |
Fair value, measurements, recurring | Asset-backed securities | ||
AFS Securities: | ||
Total AFS securities | 4,130 | |
Fair value, measurements, recurring | Municipal bonds | ||
AFS Securities: | ||
Total AFS securities | 39,702 | 50,052 |
Fair value, measurements, recurring | U.S. Treasury securities | ||
AFS Securities: | ||
Total AFS securities | 29,150 | 15,187 |
Fair value, measurements, recurring | Corporate bonds | ||
AFS Securities: | ||
Total AFS securities | 32,435 | 11,422 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Description of Liabilities | ||
Junior subordinated debt | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, recurring | ||
AFS Securities: | ||
Total AFS securities | 0 | 0 |
Marketable equity securities | 3,287 | 3,744 |
Total | 3,287 | 3,744 |
Description of Liabilities | ||
Junior subordinated debt | 0 | 0 |
Total | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, recurring | U.S. Government agencies | ||
AFS Securities: | ||
Total AFS securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, recurring | U.S. Government collateralized mortgage obligations | ||
AFS Securities: | ||
Total AFS securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, recurring | Asset-backed securities | ||
AFS Securities: | ||
Total AFS securities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, recurring | Municipal bonds | ||
AFS Securities: | ||
Total AFS securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, recurring | U.S. Treasury securities | ||
AFS Securities: | ||
Total AFS securities | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, recurring | Corporate bonds | ||
AFS Securities: | ||
Total AFS securities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Description of Liabilities | ||
Junior subordinated debt | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | ||
AFS Securities: | ||
Total AFS securities | 208,560 | 178,902 |
Marketable equity securities | 0 | 0 |
Total | 208,560 | 178,902 |
Description of Liabilities | ||
Junior subordinated debt | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | U.S. Government agencies | ||
AFS Securities: | ||
Total AFS securities | 8,751 | 33,376 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | U.S. Government collateralized mortgage obligations | ||
AFS Securities: | ||
Total AFS securities | 98,522 | 64,735 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | Asset-backed securities | ||
AFS Securities: | ||
Total AFS securities | 4,130 | |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | Municipal bonds | ||
AFS Securities: | ||
Total AFS securities | 39,702 | 50,052 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | U.S. Treasury securities | ||
AFS Securities: | ||
Total AFS securities | 29,150 | 15,187 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | Corporate bonds | ||
AFS Securities: | ||
Total AFS securities | 32,435 | 11,422 |
Significant Unobservable Inputs (Level 3) | ||
Description of Liabilities | ||
Junior subordinated debt | 10,305 | 11,189 |
Significant Unobservable Inputs (Level 3) | Fair value, measurements, recurring | ||
AFS Securities: | ||
Total AFS securities | 0 | 0 |
Marketable equity securities | 0 | 0 |
Total | 0 | 0 |
Description of Liabilities | ||
Junior subordinated debt | 10,305 | 11,189 |
Total | 10,305 | 11,189 |
Significant Unobservable Inputs (Level 3) | Fair value, measurements, recurring | U.S. Government agencies | ||
AFS Securities: | ||
Total AFS securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair value, measurements, recurring | U.S. Government collateralized mortgage obligations | ||
AFS Securities: | ||
Total AFS securities | 0 | |
Significant Unobservable Inputs (Level 3) | Fair value, measurements, recurring | Asset-backed securities | ||
AFS Securities: | ||
Total AFS securities | ||
Significant Unobservable Inputs (Level 3) | Fair value, measurements, recurring | Municipal bonds | ||
AFS Securities: | ||
Total AFS securities | 0 | |
Significant Unobservable Inputs (Level 3) | Fair value, measurements, recurring | U.S. Treasury securities | ||
AFS Securities: | ||
Total AFS securities | ||
Significant Unobservable Inputs (Level 3) | Fair value, measurements, recurring | Corporate bonds | ||
AFS Securities: | ||
Total AFS securities | $ 0 | $ 0 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosure - Valuation Technique, Unobservable Input, and Qualitative Information (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Discounted cash flow | Market credit risk adjusted spreads | Weighted average | Junior Subordinated Debt | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Weighted average inputs (percent) | 0.0709 | 0.0390 |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosure - Reconciliation of Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reconciliation of Liabilities: | ||||
Gross (gain) loss related to changes in instrument specific credit risk | $ (225) | $ 43 | $ (950) | $ 373 |
Junior Subordinated Debt | ||||
Reconciliation of Liabilities: | ||||
Beginning balance | 10,489 | 11,253 | 11,189 | 10,924 |
Gross loss included in earnings | 600 | 35 | 2,469 | 691 |
Gross (gain) loss related to changes in instrument specific credit risk | (825) | 8 | (3,419) | (317) |
Change in accrued interest | 41 | (1) | 66 | (3) |
Ending balance | 10,305 | 11,295 | 10,305 | 11,295 |
The amount of total loss for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date | $ 600 | $ 35 | $ 2,469 | $ 691 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 4,488 | $ 4,488 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |||||||||||
AOCI Attributable, Net of Tax [Roll Forward] | ||||||||||||||||||||
Beginning balance | $ 110,001 | [1] | $ 113,576 | [2] | $ 120,207 | [3] | $ 119,129 | [4] | $ 118,366 | [5] | $ 117,333 | [6] | $ 117,807 | [7] | $ 120,207 | [3] | $ 120,207 | [3] | $ 117,807 | [7] |
Current period comprehensive (loss) income, net of tax | (5,601) | (5,235) | (7,300) | (506) | (30) | 145 | (55) | (18,136) | 60 | |||||||||||
Ending balance | 107,079 | [8] | 110,001 | [1] | 113,576 | [2] | 120,207 | [3] | 119,129 | [4] | 118,366 | [5] | 117,333 | [6] | 110,001 | [1] | 107,079 | [8] | 119,129 | [4] |
Net unrealized (loss) on available for sale securities | ||||||||||||||||||||
AOCI Attributable, Net of Tax [Roll Forward] | ||||||||||||||||||||
Beginning balance | (236) | 630 | (236) | (236) | 630 | |||||||||||||||
Current period comprehensive (loss) income, net of tax | (866) | (20,591) | ||||||||||||||||||
Ending balance | (20,827) | (236) | (20,827) | |||||||||||||||||
Unfunded status of the supplemental retirement plans | ||||||||||||||||||||
AOCI Attributable, Net of Tax [Roll Forward] | ||||||||||||||||||||
Beginning balance | (627) | (770) | (627) | (627) | (770) | |||||||||||||||
Current period comprehensive (loss) income, net of tax | 143 | 47 | ||||||||||||||||||
Ending balance | (580) | (627) | (580) | |||||||||||||||||
Net unrealized (loss) gain on junior subordinated debentures | ||||||||||||||||||||
AOCI Attributable, Net of Tax [Roll Forward] | ||||||||||||||||||||
Beginning balance | (311) | (588) | (311) | (311) | (588) | |||||||||||||||
Current period comprehensive (loss) income, net of tax | 277 | 2,408 | ||||||||||||||||||
Ending balance | 2,097 | (311) | 2,097 | |||||||||||||||||
Accumulated other comprehensive loss | ||||||||||||||||||||
AOCI Attributable, Net of Tax [Roll Forward] | ||||||||||||||||||||
Beginning balance | (13,709) | [1] | (8,474) | [2] | (1,174) | [3] | (668) | [4] | (638) | [5] | (783) | [6] | (728) | [7] | (1,174) | [3] | (1,174) | [3] | (728) | [7] |
Current period comprehensive (loss) income, net of tax | (5,601) | (5,235) | (7,300) | (506) | (30) | 145 | (55) | |||||||||||||
Ending balance | $ (19,310) | [8] | $ (13,709) | [1] | $ (8,474) | [2] | $ (1,174) | [3] | $ (668) | [4] | $ (638) | [5] | $ (783) | [6] | $ (13,709) | [1] | $ (19,310) | [8] | $ (668) | [4] |
[1](7) Excludes 26,949 unvested restricted shares[2](6) Excludes 26,949 unvested restricted shares[3](5) Excludes 27,949 unvested restricted shares[4](4) Excludes 41,424 unvested restricted shares[5](3) Excludes 41,424 unvested restricted shares[6](2) Excludes 41,424 unvested restricted shares[7](1) Excludes 11,924 unvested restricted shares[8](8) Excludes 29,449 unvested restricted shares |
Investment in York Monterey P_2
Investment in York Monterey Properties (Details) - York Monterey Properties Inc - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Real Estate Properties [Line Items] | ||
Investment in affiliate | $ 5.3 | $ 5.3 |
Other real estate owned | ||
Real Estate Properties [Line Items] | ||
Investment in affiliate | $ 4.6 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | ||
Minimum term of guarantees | 1 month | |
Maximum term of guarantees | 3 years | |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Fair value, concentration of risk, commitments | $ 164,030 | $ 239,095 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Fair value, concentration of risk, commitments | $ 1,719 | $ 1,719 |