Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | 17,094,298 | |
Entity Central Index Key | 0001137547 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | UBFO | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets _ (
Consolidated Balance Sheets – (unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | ||
Assets | ||||
Cash and noninterest-bearing deposits in other banks | $ 41,949 | $ 31,650 | ||
Due from Federal Reserve Bank (“FRB”) | 3,204 | 6,945 | ||
Cash and cash equivalents | 45,153 | 38,595 | ||
Investment securities (at fair value) | ||||
Available-for-sale (“AFS”) securities | 205,556 | 207,545 | ||
Marketable equity securities | 3,358 | 3,315 | ||
Total investment securities | 208,914 | 210,860 | ||
Loans | ||||
Loans | 944,191 | 981,772 | ||
Unearned fees and unamortized loan origination costs - net | (1,464) | (1,594) | ||
Allowance for credit losses | (15,622) | (10,182) | ||
Net loans | 927,105 | 969,996 | ||
Premises and equipment - net | 9,486 | 9,770 | ||
Accrued interest receivable | 7,829 | 8,489 | ||
Other real estate owned | 4,582 | 4,582 | ||
Goodwill | 4,488 | 4,488 | ||
Deferred tax assets - net | 14,422 | 12,825 | ||
Cash surrender value of life insurance | 23,025 | 22,893 | ||
Operating lease right-of-use assets | 1,808 | 1,984 | ||
Other assets | 14,382 | 14,711 | ||
Total assets | 1,261,194 | 1,299,193 | ||
Deposits | ||||
Non-interest-bearing | 394,745 | 481,629 | ||
Interest-bearing | 716,387 | 683,855 | ||
Total deposits | 1,111,132 | 1,165,484 | ||
Federal funds purchased and securities sold under agreements to resell | 13,200 | 0 | ||
Operating lease liabilities | 1,915 | 2,093 | ||
Other liabilities | 11,022 | 8,270 | ||
Junior subordinated debentures (at fair value) | 11,017 | 10,883 | ||
Total liabilities | 1,148,286 | 1,186,730 | ||
Shareholders’ Equity | ||||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,094,298 at March 31, 2023 and 17,067,253 at December 31, 2022 | 60,269 | 60,030 | ||
Retained earnings | 69,495 | 69,928 | ||
Accumulated other comprehensive loss, net of tax | (16,856) | (17,495) | ||
Total shareholders’ equity | 112,908 | [1] | 112,463 | [2] |
Total liabilities and shareholders’ equity | $ 1,261,194 | $ 1,299,193 | ||
[1](6) Excludes 13,974 unvested restricted shares[2](5) Excludes 29,449 unvested restricted shares |
Consolidated Balance Sheets __2
Consolidated Balance Sheets – (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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) | 17,094,298 | 17,067,253 |
Common stock, shares, outstanding (in shares) | 17,094,298 | 17,067,253 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest Income: | ||
Interest and fees on loans | $ 13,000 | $ 9,119 |
Interest on investment securities | 1,501 | 790 |
Interest on deposits in FRB | 58 | 82 |
Total interest income | 14,559 | 9,991 |
Interest Expense: | ||
Interest on deposits | 1,343 | 508 |
Interest on other borrowed funds | 271 | 45 |
Total interest expense | 1,614 | 553 |
Net Interest Income | 12,945 | 9,438 |
(Reversal) Provision for Credit Losses | (493) | 5 |
Net Interest Income after (Reversal) Provision for Credit Losses | 13,438 | 9,433 |
Noninterest Income: | ||
Customer service fees | 734 | 654 |
Increase in cash surrender value of bank-owned life insurance | 132 | 139 |
Unrealized gain (loss) on fair value of marketable equity securities | 43 | (182) |
Gain (Loss) on fair value of junior subordinated debentures | 333 | (999) |
Gain on sale of investment securities | 0 | 30 |
Other | 206 | 152 |
Total noninterest income (loss) | 1,448 | (206) |
Noninterest Expense: | ||
Salaries and employee benefits | 3,260 | 3,049 |
Occupancy expense | 963 | 780 |
Data processing | 174 | 115 |
Professional fees | 882 | 949 |
Regulatory assessments | 192 | 231 |
Director fees | 109 | 118 |
Correspondent bank service charges | 19 | 25 |
Net cost of operation of OREO | 37 | (8) |
Other | 604 | 557 |
Total noninterest expense | 6,240 | 5,816 |
Income before provision for taxes | 8,646 | 3,411 |
Provision for income taxes | 2,521 | 968 |
Net Income | $ 6,125 | $ 2,443 |
Net Income per common share | ||
Basic (in usd per share) | $ 0.36 | $ 0.14 |
Diluted (in usd per share) | $ 0.36 | $ 0.14 |
Weighted average common shares outstanding | ||
Basic (in shares) | 17,076,510 | 17,030,409 |
Diluted (in shares) | 17,092,460 | 17,051,819 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 6,125 | $ 2,443 |
Unrealized holdings gain (loss) on debt securities | 1,325 | (11,689) |
Unrealized gain on unrecognized post-retirement costs | 21 | 23 |
Unrealized (loss) gain on junior subordinated debentures | (440) | 1,302 |
Other comprehensive income (loss), before tax | 906 | (10,364) |
Tax (expense) benefit provision related to debt securities | (390) | 3,455 |
Tax expense related to unrecognized post-retirement costs | (7) | (7) |
Tax benefit (expense) related to junior subordinated debentures | 130 | (385) |
Total other comprehensive income (loss) | 639 | (7,301) |
Comprehensive income (loss) | $ 6,764 | $ (4,858) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Impact of ASC 326 adoption | Common Stock | Retained Earnings | Retained Earnings Impact of ASC 326 adoption | Accumulated Other Comprehensive (Loss) Income | |||||
Beginning balance (in shares) at Dec. 31, 2021 | [1] | 17,028,239 | |||||||||
Beginning balance at Dec. 31, 2021 | [1] | $ 120,207 | $ 59,635 | $ 61,746 | $ (1,174) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Other comprehensive income (loss) | (7,301) | (7,301) | |||||||||
Dividends payable | (1,874) | (1,874) | |||||||||
Restricted stock units released (in shares) | 6,168 | ||||||||||
Tax benefit from restricted stock units 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 | [2] | 17,034,407 | |||||||||
Ending balance at Mar. 31, 2022 | [2] | 113,575 | $ 59,735 | 62,315 | (8,475) | ||||||
Beginning balance (in shares) at Dec. 31, 2021 | [1] | 17,028,239 | |||||||||
Beginning balance at Dec. 31, 2021 | [1] | $ 120,207 | $ 59,635 | 61,746 | (1,174) | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 17,067,253 | 17,067,253 | [3] | ||||||||
Ending balance at Dec. 31, 2022 | $ 112,463 | [3] | $ (4,678) | $ 60,030 | [3] | 69,928 | [3] | $ (4,678) | (17,495) | [3] | |
Beginning balance (in shares) at Mar. 31, 2022 | [2] | 17,034,407 | |||||||||
Beginning balance at Mar. 31, 2022 | [2] | 113,575 | $ 59,735 | 62,315 | (8,475) | ||||||
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 | [4] | 17,040,549 | |||||||||
Ending balance at Jun. 30, 2022 | [4] | 110,000 | $ 59,835 | 63,875 | (13,710) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
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 | [5] | 17,046,676 | |||||||||
Ending balance at Sep. 30, 2022 | [5] | 107,078 | $ 59,924 | 66,465 | (19,311) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Other comprehensive income (loss) | 1,816 | 1,816 | |||||||||
Dividends payable | (1,878) | (1,878) | |||||||||
Stock options exercised (in shares) | 5,579 | ||||||||||
Stock options exercised | 29 | $ 29 | |||||||||
Restricted stock units released (in shares) | 14,998 | ||||||||||
Director stock grant | 42 | $ 42 | |||||||||
Stock-based compensation expense | 35 | $ 35 | |||||||||
Net Income | $ 5,341 | 5,341 | |||||||||
Ending balance (in shares) at Dec. 31, 2022 | 17,067,253 | 17,067,253 | [3] | ||||||||
Ending balance at Dec. 31, 2022 | $ 112,463 | [3] | $ (4,678) | $ 60,030 | [3] | 69,928 | [3] | $ (4,678) | (17,495) | [3] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Other comprehensive income (loss) | 639 | 639 | |||||||||
Dividends payable | (1,880) | (1,880) | |||||||||
Restricted stock units released (in shares) | 27,045 | ||||||||||
Tax benefit from restricted stock units released | (10) | $ (10) | |||||||||
Director stock grant | 208 | 208 | |||||||||
Stock-based compensation expense | 41 | $ 41 | |||||||||
Net Income | $ 6,125 | 6,125 | |||||||||
Ending balance (in shares) at Mar. 31, 2023 | 17,094,298 | 17,094,298 | [6] | ||||||||
Ending balance at Mar. 31, 2023 | [6] | $ 112,908 | $ 60,269 | $ 69,495 | $ (16,856) | ||||||
[1](1) Excludes 41,424 unvested restricted shares[2](2) Excludes 27,949 unvested restricted shares[3](5) Excludes 29,449 unvested restricted shares[4](3) Excludes 26,949 unvested restricted shares[5](4) Excludes 26,949 unvested restricted shares[6](6) Excludes 13,974 unvested restricted shares |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends payable (in usd per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | |
Unvested restricted shares (in shares) | 13,974 | 29,449 | 26,949 | 26,949 | 27,949 | 41,424 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Cash Flows From Operating Activities: | ||||
Net Income | $ 6,125 | $ 5,341 | $ 3,435 | $ 2,443 |
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Provision (recapture of provision) for credit losses | (493) | 5 | ||
Depreciation and amortization | 376 | 311 | ||
Amortization of operating lease right-of-use assets | 176 | 151 | ||
Amortization of premium/discount on investment securities, net | 111 | 197 | ||
Gain on sale of investment securities | 0 | (30) | ||
Decrease (increase) in accrued interest receivable | 660 | (271) | ||
Decrease in accrued interest payable | (17) | (1) | ||
Increase (decrease) in accounts payable and accrued liabilities | 2,539 | (248) | ||
Decrease in unearned fees and unamortized loan origination costs, net | (130) | (219) | ||
(Increase) decrease in income taxes receivable | (355) | 1,263 | ||
(Gain) loss on marketable equity securities | (43) | 182 | ||
Stock-based compensation expense | 240 | 100 | ||
(Provision) benefit for deferred income taxes | (32) | 89 | ||
Increase in cash surrender value of bank-owned life insurance | (132) | (139) | ||
(Gain) loss on fair value option of junior subordinated debentures | (333) | 999 | ||
Net decrease (increase) in other assets | 636 | (2,577) | ||
Net cash provided by operating activities | 9,328 | 2,225 | ||
Cash Flows From Investing Activities: | ||||
Purchase of correspondent bank stock | (2) | (6) | ||
Purchases of available-for-sale securities | 0 | (34,734) | ||
Principal payments of available-for-sale securities | 3,203 | 6,140 | ||
Cash proceeds from sale of investment securities | 0 | 15,676 | ||
Net increase (decrease) in loans | 37,146 | |||
Net increase (decrease) in loans | (7,689) | |||
Capital expenditures of premises and equipment | (92) | (281) | ||
Net cash provided (used) in investing activities | 40,255 | (20,894) | ||
Cash Flows From Financing Activities: | ||||
Net (decrease) increase in demand deposits and savings accounts | (65,912) | 29,178 | ||
Net increase (decrease) in time deposits | 11,561 | (2,952) | ||
Net change in federal funds purchased | 13,200 | 0 | ||
Dividends on common stock | (1,874) | (1,872) | ||
Net cash (used) provided by financing activities | (43,025) | 24,354 | ||
Net change in cash and cash equivalents | 6,558 | 5,715 | ||
Cash and cash equivalents at beginning of period | 38,595 | $ 224,934 | 219,219 | |
Cash and cash equivalents at end of period | $ 45,153 | $ 38,595 | $ 224,934 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting and Reporting Policies | 3 Months Ended |
Mar. 31, 2023 | |
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 2022 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, Financial Accounting Standards Board (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 adopted ASC 326 (“CECL”) as of January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods beginning after January 1, 2023, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The adoption of this new standard required a cumulative adjustment to the allowance for credit losses, leading to an increase in the credit loss balance of $6.4 million and an increase in the reserve for unfunded loan commitments of $273,000, resulting in a combined adjustment to retained earnings of $4.7 million, net of a $1.9 million tax adjustment. The following table summarized the impact of the adoption of ASU 2016-13 by loan category: (In thousands) Allowance for credit losses as reported under ASU 2016-13 Allowance before the adoption of ASU 2016-13 Impact to allowance of adoption of ASU 2016-13 Assets: Commercial and industrial: Commercial and business loans $ 2,290 $ 954 $ 1,336 Government program loans 2 2 — Total commercial and industrial 2,292 956 1,336 Real estate mortgage: Commercial real estate 2,735 659 2,076 Residential mortgages 986 703 283 Home improvement and home equity loans 2 2 — Total real estate mortgage 3,723 1,364 2,359 Real estate construction and development 4,129 3,408 721 Agricultural 1,550 525 1,025 Installment and student loans 4,855 2,898 1,957 Unallocated — 1,031 (1,031) Allowance for credit losses for all loans $ 16,549 $ 10,182 $ 6,367 Liabilities: Allowance for credit losses on off-balance sheet exposures $ 805 $ 532 $ 273 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 was effective for all entities as of March 12, 2020, through December 31, 2022. However, the effective date was updated in ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, and is currently set for December 31, 2024. 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 troubled debt restructurings. New disclosures regarding gross write-offs for financing receivables by year of origination are also included in the update. This update has been adopted as of January 1, 2023. The Bank will no longer report trouble debt restructures or classify loans as such. TDRs previously recognized have been incorporated into the CECL methodology in regard to loan loss reserves as of January 1, 2023. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022: March 31, 2023 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) Securities available-for-sale: U.S. Government agencies $ 7,483 $ 5 $ (55) $ 7,433 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 108,407 12 (12,616) 95,803 U.S. Treasury securities 30,014 — (590) 29,424 Municipal bonds 50,630 — (9,153) 41,477 Corporate bonds 34,762 6 (3,349) 31,419 Total securities available for sale $ 231,296 $ 23 $ (25,763) $ 205,556 December 31, 2022 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) Securities available-for-sale: U.S. Government agencies $ 8,275 $ 7 $ (51) $ 8,231 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 110,908 5 (13,695) 97,218 U.S. Treasury securities 30,004 — (780) 29,224 Municipal bonds 50,678 — (10,508) 40,170 Corporate bonds 34,745 5 (2,048) 32,702 Total securities available for sale $ 234,610 $ 17 $ (27,082) $ 207,545 The amortized cost and fair value of securities available for sale at March 31, 2023, 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. March 31, 2023 (In thousands) Amortized Cost Fair Value (Carrying Amount) Due in one year or less $ 17,506 $ 17,272 Due after one year through five years 31,772 30,280 Due after five years through ten years 65,908 55,411 Due after ten years 7,700 6,791 Collateralized mortgage obligations 108,410 95,802 $ 231,296 $ 205,556 Proceeds and gross realized gains (losses) from sales of available-for-sale investment securities are shown below: Three Months Ended (In thousands) March 31, 2023 March 31, 2022 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 losses were recorded due to credit-related factors for the three month periods ended March 31, 2023 or March 31, 2022. At March 31, 2023, available-for-sale securities with an amortized cost of approximately $77.0 million (fair value of $66.9 million) were pledged as collateral for FHLB borrowings, securitized deposits, and public funds balances. The following summarizes temporarily impaired available-for-sale investment securities: Less than 12 Months 12 Months or More Total (In thousands) Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses March 31, 2023 U.S. Government agencies $ — $ — $ 5,219 $ (55) $ 5,219 $ (55) U.S. Government sponsored entities and agencies collateralized by mortgage obligations 26,845 (1,168) 68,402 (11,448) 95,247 (12,616) Corporate bonds 15,589 (2,158) 12,995 (1,191) 28,584 (3,349) Municipal bonds — — 41,477 (9,153) 41,477 (9,153) U.S. Treasury securities 9,908 (30) 19,516 (560) 29,424 (590) Total impaired securities $ 52,342 $ (3,356) $ 147,609 $ (22,407) $ 199,951 $ (25,763) December 31, 2022 U.S. Government agencies $ — $ — $ 5,831 $ (51) $ 5,831 $ (51) U.S. Government sponsored entities and agencies collateralized by mortgage obligations 47,968 (3,949) 48,763 (9,746) 96,731 (13,695) Corporate bonds 24,424 (1,491) 5,443 (557) 29,867 (2,048) Municipal bonds — — 40,170 (10,508) 40,170 (10,508) U.S. Treasury securities 14,714 (190) 14,510 (590) 29,224 (780) Total impaired securities $ 87,106 $ (5,630) $ 114,717 $ (21,452) $ 201,823 $ (27,082) The following summarizes the number of temporarily impaired investment securities: March 31, 2023 2022 Securities available for sale: U.S. Government agencies 4 4 U.S. Government sponsored entities and agencies collateralized by mortgage obligations 51 33 Municipal bonds 46 46 Corporate bonds 9 4 U.S. Treasury securities 4 3 Total temporarily impaired securities 114 90 Due to the adoption of ASU 2016-13, available-for-sale securities will no longer be evaluated for other-than-temporary impairment (OTTI). Instead, available-for-sale securities will be evaluated when the amortized cost of a security exceeds its fair value. If it is determined that it will be necessary to sell a security before the fair value increases to the amortized cost, the amortized cost will be written down to fair value through income. At that point, any previously recorded allowance for credit loss (ACL) would be written off and any additional impairment would be recognized through earnings. If it is believed that the Company will not be required to sell a security before the fair value recovers, a determination will be made as to whether or not the decline in fair value is the result of a credit loss or noncredit factors such as changes in current market rates. Some of the factors which would be considered in order to determine if a credit loss exists are: (1) the extent to which the fair value is less than the amortized cost basis, (2) any adverse conditions related to the security, an industry, or geographic area, (3) failure of the issuer to make scheduled interest or principal payments, and (4) any changes to the rating of the security by a rating agency. If it is determined that the decline is due to a credit loss, the amount recognized as the credit loss will be determined using a discounted cash flow approach. Cash flows expected to be collected would be discounted at the effective interest rate established at acquisition. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses would be recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Management has evaluated each available-for-sale investment security in an unrealized loss position to determine if it would be required to sell the security before the fair value increases to amortized cost and whether any unrealized losses are due to credit losses or noncredit factors such as current market rates, which would not require the establishment of an allowance for credit loss. At March 31, 2023, the decline in fair value of the available-for-sale securities is attributed to changes in interest rates, and not credit quality. The fast pace and large increases in interest rates during the last year have led to decreases in bond prices and increases in yields. Because the Company does not intend to sell these impaired securities, and because it is more likely than not that it will not be required to sell these securities before their anticipated recovery, the Company does not consider it necessary to provide an allowance for any securities at March 31, 2023. During the quarter ended March 31, 2023 and 2022, the Company recognized $43,000 of unrealized gains and $182,000 of unrealized losses, respectively, related to marketable equity securities, related to one mutual fund, in the consolidated statements of income. The Company had no held-to-maturity or trading securities at March 31, 2023 or December 31, 2022. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans | Loans Loans are comprised of the following: (In thousands) March 31, 2023 December 31, 2022 Commercial and industrial: Commercial and business loans $ 50,379 $ 57,770 Government program loans 132 132 Total commercial and industrial 50,511 57,902 Real estate mortgage: Commercial real estate 395,669 398,115 Residential mortgages 269,991 273,357 Home improvement and home equity loans 46 49 Total real estate mortgage 665,706 671,521 Real estate construction and development 137,257 153,374 Agricultural 45,513 52,722 Installment and student loans 43,740 44,659 Total loans $ 942,727 $ 980,178 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. The Company’s participation loans with other financial institutions are primarily in the state of California. Commercial and industrial loans, representing 5.4% of total loans at March 31, 2023 and 5.9% at December 31, 2022, 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. Real estate mortgage loans, representing 70.6% of total loans at March 31, 2023 and 68.5% at December 31, 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 14.6% of total loans at March 31, 2023 and 15.7% at December 31, 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, representing 4.8% of total loans at March 31, 2023 and 5.4% at December 31, 2022, are generally secured by land, equipment, inventory and receivables. Repayment is from the cash flow of the borrower. Installment loans, including student loans, which represented 4.6% of total loans at March 31, 2023 and 4.6% at December 31, 2022, 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 March 31, 2023 and December 31, 2022, these financial instruments include commitments to extend credit of $214.7 million and $190.2 million, respectively, and standby letters of credit of $1.6 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 the amortized cost of delinquent loans at March 31, 2023: (In thousands) Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and business loans $ — $ — $ — $ — $ 50,379 $ 50,379 $ — Government program loans — — — — 132 132 — Total commercial and industrial — — — — 50,511 50,511 — Commercial real estate loans — — — — 395,669 395,669 — Residential mortgages 2,732 — — 2,732 267,259 269,991 — Home improvement and home equity loans 7 — — 7 39 46 — Total real estate mortgage 2,739 — — 2,739 662,967 665,706 — Real estate construction and development loans — — 11,269 11,269 125,988 137,257 — Agricultural loans — — 86 86 45,427 45,513 — Installment and student loans 817 571 382 1,770 41,881 43,651 382 Overdraft protection lines — — — — 11 11 — Overdrafts — — — — 78 78 — Installment and student loans 817 571 382 1,770 41,970 43,740 382 Total loans $ 3,556 $ 571 $ 11,737 $ 15,864 $ 926,863 $ 942,727 $ 382 The following is a summary of the amortized cost of delinquent loans at December 31, 2022: (In thousands) Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and business loans $ — $ — $ — $ — $ 57,770 $ 57,770 $ — Government program loans — — — — 132 132 — Total commercial and industrial — — — — 57,902 57,902 — Commercial real estate loans — — — — 398,115 398,115 — Residential mortgages — — — — 273,357 273,357 — Home improvement and home equity loans 8 — — 8 41 49 — Total real estate mortgage 8 — — 8 671,513 671,521 — Real estate construction and development loans — — 12,545 12,545 140,829 153,374 — Agricultural loans — — 108 108 52,614 52,722 — Installment and student loans 546 642 252 1,440 42,714 44,154 252 Overdraft protection lines — — — — 17 17 — Overdrafts — — — — 488 488 — Installment and student loans 546 642 252 1,440 43,219 44,659 252 Total loans $ 554 $ 642 $ 12,905 $ 14,101 $ 966,077 $ 980,178 $ 252 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. 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 March 31, 2023 or December 31, 2022. The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing: March 31, 2023 December 31, 2022 (In thousands) Nonaccrual Loans With No Allowance For Credit Losses Nonaccrual Loans Loans past due over 89 Days Still Accruing Nonaccrual Loans With No Allowance For Credit Losses Nonaccrual Loans Loans Past Due Over 89 Days Still Accruing Real estate construction and development loans $ 13,109 $ 13,109 $ — $ 14,436 $ 14,436 $ — Agricultural loans — 86 — 108 — Installment and student loans — — 382 252 Total $ 13,109 $ 13,195 $ 382 $ 14,436 $ 14,544 $ 252 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: Pass Ratings: - 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 Special Mention Rating: - 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. Substandard Rating: - 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. Doubtful Ratings: - 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 following table presents loans by type, risk rating, and origination year according to our internal risk ratings as of March 31, 2023: Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Commercial and business Pass $ 850 $ 1,465 $ 730 $ 1,340 $ 45 $ 995 $ 44,954 $ — $ 50,379 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 850 1,465 730 1,340 45 995 44,954 — 50,379 Government program Pass — — — 12 — 120 — — 132 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — — 12 — 120 — — 132 Commercial real estate Pass 2,887 89,262 36,313 59,853 54,170 110,070 17,291 — 369,846 Special Mention — — — 4,952 7,874 9,937 3,060 — 25,823 Substandard — — — — — — — — — Doubtful — — — — — — — — — 2,887 89,262 36,313 64,805 62,044 120,007 20,351 — 395,669 Residential mortgages Not graded — 27,680 213,059 3,236 — 10,149 — — 254,124 Pass — — — — — 1,746 14,121 — 15,867 Special Mention — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — 27,680 213,059 3,236 — 11,895 14,121 — 269,991 (Continued) Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Home improvement and home equity Not graded — — — — — 39 — — 39 Pass — — — — — 7 — — 7 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — — — — 46 — — 46 Real estate construction and development Pass — — — 4,606 180 4,896 114,466 — 124,148 Special Mention — — — — — — — — — Substandard — — — — — 4,836 8,273 — 13,109 Doubtful — — — — — — — — — — — — 4,606 180 9,732 122,739 — 137,257 Agricultural Pass — 6,865 470 2,999 1,499 11,119 20,667 — 43,619 Special Mention — — — 589 — 428 — — 1,017 Substandard — — — — — 87 790 — 877 Doubtful — — — — — — — — — — — — 589 — 515 790 — 45,513 Installment and student loans Not graded 237 337 244 179 1,598 40,470 675 — 43,740 Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 237 337 244 179 1,598 40,470 675 — 43,740 Total Loans $ 3,974 $ 118,744 $ 250,346 $ 74,767 $ 63,867 $ 183,780 $ 203,630 $ — $ 942,727 The following table presents loans by type, risk rating, and origination year according to our internal risk ratings as of December 31, 2022: Origination Year Revolving loan amortized cost basis Revolving loan converted to term loans (In thousands) 2022 2021 2020 2019 2018 Prior Total Commercial and business loans Pass $ 1,486 $ 775 $ 1,471 $ 210 $ 1,081 $ 237 $ 52,310 $ — $ 57,570 Special Mention — — — — — — 200 — 200 Substandard — — — — — — — — — Doubtful — — — — — — — — — 1,486 775 1,471 210 1,081 237 52,510 — 57,770 Government program loans Pass — — 13 — — 119 — — 132 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — 13 — — 119 — — 132 (Continued) Origination Year Revolving loan amortized cost basis Revolving loan converted to term loans (In thousands) 2022 2021 2020 2019 2018 Prior Total Commercial real estate Pass 89,610 36,506 60,293 54,595 32,935 82,170 15,987 — 372,096 Special Mention — — 4,979 7,935 408 9,637 3,060 — 26,019 Substandard — — — — — — — — — Doubtful — — — — — — — — — 89,610 36,506 65,272 62,530 33,343 91,807 19,047 — 398,115 Residential mortgages Not graded 27,746 215,326 3,255 — — 10,908 — — 257,235 Pass — — — — — 1,826 14,296 — 16,122 Special Mention — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 27,746 215,326 3,255 — — 12,734 14,296 — 273,357 Home improvement and home equity loans Not graded — — — — — 41 — — 41 Pass — — — — — 8 — — 8 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — — — — 49 — — 49 Real estate construction and development Pass — — 4,842 180 824 6,599 126,493 — 138,938 Special Mention — — — — — — — — — Substandard — — — — — 5,372 9,064 — 14,436 Doubtful — — — — — — — — — — — 4,842 180 824 11,971 135,557 — 153,374 Agricultural Pass 7,051 474 3,010 3,777 — 11,421 24,924 — 50,657 Special Mention — — 589 — 428 — — — 1,017 Substandard — — — — — 258 790 — 1,048 Doubtful — — — — — — — — — 7,051 474 3,599 3,777 428 11,679 25,714 — 52,722 Installment and student loans Not Graded 373 272 196 1,623 10,759 30,905 531 — 44,659 Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 373 272 196 1,623 10,759 30,905 531 — 44,659 Total Loans $ 126,266 $ 253,353 $ 78,648 $ 68,320 $ 46,435 $ 159,501 $ 247,655 $ — $ 980,178 Allowance for Loan Losses The Company adopted ASU 2016-13 effective January 1, 2023, and utilizes the CECL cohort methodology analysis which relies on segmenting the loan portfolio into pools with similar risks, tracking the performance of the pools over time, and using the data to determine pool loss experience. Management estimates the allowance for loan loss balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience from 2006 to 2022. The Company expects that the markets in which it operates will experience a slight decline in economic conditions and an increase in unemployment rate and level and trend of delinquencies over the next two years. Management adjusted the historical loss experience for these expectations. 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 businesses to economic cycles as well as the exposure to fluctuations in real estate prices because most of these loans are secured by real estate. Losses in this segment have however been historically low because most of the loans are real estate secured, and the bank maintains appropriate loan-to-value ratios. Residential mortgages – This segment is considered to have low risk factors both from the Company and peer statistics. These loans are secured by first deeds of trust. Home improvement and home equity loans – Because of their junior lien position, these loans have an inherently higher risk level. Real estate construction and development loans –This segment of loans is considered to have a higher risk profile due to construction and market value issues in conjunction with normal credit risks. Agricultural loans – This segment is considered to have risks associated with weather, insects, and marketing issues. In addition, concentrations in certain crops or certain agricultural areas can increase risk. Additionally, from time to time, California experiences severe droughts, which can significantly harm the business of customers and the credit quality of the loans to those customers. Water resources and related issues affecting customers are closely monitored. Signs of deterioration within the loan portfolio are also monitored in an effort to manage credit quality and work with borrowers where possible to mitigate any losses. Installment and student loans (Includes consumer loans, student loans, overdrafts, and overdraft protection lines) – This segment is higher risk because many of the loans are unsecured. Additionally, in the case of student loans, there are increased risks associated with liquidity as there is a significant time lag between funding of a student loan and eventual repayment. The following summarizes the activity in the allowance for credit losses by loan category: Three Months Ended March 31, 2023 (In thousands) Commercial and Industrial Real Estate Mortgage Real Estate Construction Development Agricultural Installment and Student Loans Total Beginning balance, prior to adoption of ASC 326 $ 955 $ 1,363 $ 3,409 $ 525 $ 3,930 $ 10,182 Impact of ASC 326 adoption 1,336 2,359 720 1,025 927 6,367 Provision (recapture of provision) for credit losses (383) (37) (542) (294) 763 (493) Charge-offs — — — — (477) (477) Recoveries — 20 — — 23 43 Net recoveries (charge-offs) — 20 — — (454) (434) Ending balance $ 1,908 $ 3,705 $ 3,587 $ 1,256 $ 5,166 $ 15,622 Three Months Ended March 31, 2022 (In thousands) Commercial and Industrial Real Estate Mortgage Real Estate Construction Development Agricultural Installment and Student Loans Total Beginning balance $ 597 $ 1,174 $ 2,840 $ 1,233 $ 3,489 $ 9,333 Provision (recapture of provision) for credit losses (306) 117 57 (292) 429 5 Charge-offs — — — — (358) (358) Recoveries 268 4 — 16 8 296 Net (charge-offs) recoveries 268 4 — 16 (350) (62) Ending balance $ 559 $ 1,295 $ 2,897 $ 957 $ 3,568 $ 9,276 The following summarizes information with respect to the loan balances: March 31, 2023 March 31, 2022 (In thousands) Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total Loans Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total Loans Commercial and business loans $ — $ 50,379 $ 50,379 $ — $ 38,725 $ 38,725 Government program loans — 132 132 — 221 221 Total commercial and industrial — 50,511 50,511 — 38,946 38,946 Commercial real estate loans — 395,669 395,669 — 330,870 330,870 Residential mortgage loans 74 269,917 269,991 145 256,766 256,911 Home improvement and home equity loans — 46 46 — 74 74 Total real estate mortgage 74 665,632 665,706 145 587,710 587,855 Real estate construction and development loans 13,109 124,148 137,257 11,147 141,820 152,967 Agricultural loans 879 44,634 45,513 653 47,142 47,795 Installment and student loans — 43,740 43,740 — 49,400 49,400 Total loans $ 14,062 $ 928,665 $ 942,727 $ 11,945 $ 865,018 $ 876,963 Collateral Dependent Loans A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the recorded investment in collateral-dependent loans by type of loan: March 31, 2023 December 31, 2022 (Dollars in thousands) Amount Number of Collateral-Dependent Loans Amount Number of Collateral-Dependent Loans Real estate construction and development loans $ 13,110 4 $ 14,436 4 Agricultural loans 790 2 108 2 Total $ 13,900 6 $ 14,544 6 Reserve for Unfunded Commitments The allowance for off-balance sheet credit exposure relates to commitments to extend credit, letters of credit and undisbursed funds on lines of credit. The Company evaluates credit risk associated with the off-balance sheet loan commitments in the same manner as it evaluates credit risk associated with the loan portfolio. The adoption of CECL as of January 1, 2023 required a cumulative adjustment of $273,000 to the reserve for unfunded loan commitments, increasing the liability balance to $805,000 post adoption. There was no provision for unfunded loan commitments for the quarter ended March 31, 2023. The reserve for the unfunded loan commitments is a liability on the Company’s consolidated financial statements and is included in other liabilities. Loan Modifications |
Student Loans
Student Loans | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Student Loans | Student Loans Included in the installment and student loans segment of the loan portfolio are $41.4 million and $42.1 million in student loans at March 31, 2023 and December 31, 2022, respectively, made to medical and pharmacy school students. Upon graduation the loan is automatically placed on grace for 6 months. This may be extended 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. At March 31, 2023 there were 858 loans within repayment, deferment, and forbearance which represented $21.4 million, $10.8 million, and $6.9 million, respectively. At December 31, 2022, there were 875 loans within repayment, deferment, and forbearance which represented $23.4 million, $11.0 million and $5.0 million, respectively. No new student loans were originated or purchased during the periods ended March 31, 2023 and March 31, 2022. As of March 31, 2023 and December 31, 2022, the reserve against the student loan portfolio was $4.8 million and $2.6 million, respectively. At March 31, 2023, there were $382,000 in student loans in the substandard category. At December 31, 2022, there were $252,000 in student loans included in the substandard category. 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: March 31, 2023 December 31, 2022 (Dollars in thousands) Number of Loans Amount Accrued Interest Number of Loans Amount Accrued Interest School 69 $ 2,025 $ 967 70 $ 2,056 $ 908 Grace 12 327 163 27 667 348 Repayment 460 21,421 293 516 23,414 857 Deferment 256 10,784 1,964 268 10,974 1,732 Forbearance 142 6,862 374 91 5,019 237 Total 939 $ 41,419 $ 3,761 972 $ 42,130 $ 4,082 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. 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 quarter ended March 31, 2023, $28,000 in accrued interest receivable was reversed, due to charge-offs of $406,000. For the quarter ended March 31, 2022, $14,000 in accrued interest receivable was reversed, due to charge-offs of $353,000 within the student loan portfolio. The following table summarize the amortized cost of student loan aging for loans in repayment and forbearance: March 31, 2023 December 31, 2022 (Dollars in thousands) Number of Borrowers Amount Number of Borrowers Amount Current or less than 31 days 239 $ 26,512 251 $ 26,993 31 - 60 days 6 817 8 546 61 - 90 days 7 571 5 642 91 - 120 days 4 382 4 252 Total 256 $ 28,282 268 $ 28,433 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2023 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits include the following: (In thousands) March 31, 2023 December 31, 2022 Noninterest-bearing deposits $ 394,745 $ 481,629 Interest-bearing deposits: NOW and money market accounts 528,233 499,861 Savings accounts 118,544 125,946 Time deposits: Under $250,000 52,835 42,933 $250,000 and over 16,775 15,115 Total interest-bearing deposits 716,387 683,855 Total deposits $ 1,111,132 $ 1,165,484 |
Short-term Borrowings_Other Bor
Short-term Borrowings/Other Borrowings | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings/Other Borrowings | Short-term Borrowings/Other Borrowings The following table sets forth the Company’s credit lines, balances outstanding, and pledged collateral: (In thousands) March 31, 2023 December 31, 2022 Unsecured credit lines: Credit limit $ 100,000 $ 120,000 Balance outstanding 13,200 — Federal Home Loan Bank: Credit limit 2,108 2,151 Balance outstanding — — Collateral pledged 2,263 2,307 Federal Reserve Bank: Credit limit 432,584 435,599 Balance outstanding — — Collateral pledged 579,777 590,427 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases land and premises for its branch banking offices, administration facilities, and ITMs. 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 March 31, 2023, the Company had 14 operating leases and no financing leases. At March 31, 2022, the Company had 13 operating leases and no financing leases. The components of lease expense are as follows: Three Months Ended (In thousands) March 31, 2023 March 31, 2022 Operating lease expense $ 178 $ 184 Variable lease expense — — Total $ 178 $ 184 Supplemental information related to leases are as follows: Three Months Ended (In thousands) March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 179 $ 184 Weighted-average remaining lease term in years for operating leases 4.38 4.89 Weighted-average discount rate for operating leases 5.12 % 5.13 % Maturities of lease liabilities are as follows: (In thousands) March 31, 2023 2023 $ 723 2024 519 2025 335 2026 159 2027 110 Thereafter 291 Total undiscounted cash flows 2,137 Less: present value discount (222) Present value of net future minimum lease payments $ 1,915 |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Supplemental Cash Flow Disclosures Three Months Ended (In thousands) March 31, 2023 March 31, 2022 Cash paid during the period for: Interest $ 1,631 $ 554 Income taxes — — Noncash investing activities: Impact of ASC 326 CECL adoption 6,367 — Unrealized gain on unrecognized post retirement costs, net of tax 21 23 Unrealized gain (loss) on available for sale securities, net of tax 1,325 (11,689) Unrealized gain on junior subordinated debentures, net of tax 2,947 1,302 Cash dividend declared 1,880 1,875 |
Dividends on Common Stock
Dividends on Common Stock | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Dividends on Common Stock | Dividends on Common Stock On March 28, 2023, 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 21, 2023, to shareholders of record as of April 7, 2023. Approximately $1.9 million was transferred from retained earnings to dividends payable as of March 31, 2023 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 three months ended March 31, 2023 and March 31, 2022, no shares have been repurchased. |
Net Income per Common Share
Net Income per Common Share | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 March 31, 2022 Net income (in thousands) $ 6,125 $ 2,443 Weighted average shares issued 17,076,510 17,030,409 Add: dilutive effect of stock options 15,950 21,410 Weighted average shares outstanding adjusted for potential dilution 17,092,460 17,051,819 Basic earnings per share $ 0.36 $ 0.14 Diluted earnings per share $ 0.36 $ 0.14 Anti-dilutive stock options excluded from earnings per share calculation 101,000 97,000 |
Taxes on Income
Taxes on Income | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022, 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. There were no interest or penalties recognized on uncertain tax positions during the periods ended March 31, 2023 and 2022. |
Junior Subordinated Debt_Trust
Junior Subordinated Debt/Trust Preferred Securities | 3 Months Ended |
Mar. 31, 2023 | |
Junior Subordinated Debt/Trust Preferred Securities [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 March 31, 2023 and December 31, 2022. 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 March 31, 2023, 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 March 31, 2023, 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 6.22% discount rate used represents what a market participant would consider under the circumstances based on current market assumptions. At March 31, 2023, the total cumulative gain recorded on the debt is $1.63 million. The net fair value calculation performed as of March 31, 2023 resulted in a net pretax loss adjustment of $107,000 for the quarter ended March 31, 2023 compared to a net pretax gain adjustment of $303,000 for the quarter ended March 31, 2022. For the quarter ended March 31, 2023, the net $107,000 fair value loss adjustment was separately presented as a $333,000 gain ($235,000, net of tax) recognized on the consolidated statements of income, and a $440,000 loss ($310,000, net of tax) associated with the instrument-specific credit risk recognized in other comprehensive income. For the quarter ended March 31, 2022, the net $303,000 fair value gain adjustment was separately presented as a $1,302,000 gain ($917,000, net of tax) recognized on the consolidated statements of income, and a $999,000 loss ($704,000, 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 | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 (In thousands) 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 $ 205,556 $ 205,556 $ — $ 205,556 $ — Marketable equity securities 3,358 3,358 3,358 Loans, net 927,105 872,532 — — 872,532 Financial Liabilities: Total deposits 1,111,132 1,110,363 1,041,522 — 68,841 Junior subordinated debt 11,017 11,017 — — 11,017 December 31, 2022 (In thousands) 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 $ 207,545 $ 207,545 $ — $ 207,545 $ — Marketable equity securities 3,315 3,315 3,315 — — Loans, net 969,996 906,050 — — 906,050 Financial Liabilities: Time deposits 1,165,484 1,164,492 1,107,436 — 57,056 Junior subordinated debt 10,883 10,883 — — 10,883 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 quarter ended March 31, 2023 or the quarter ended December 31, 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 March 31, 2023 or December 31, 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 March 31, 2023 or December 31, 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 March 31, 2023: (In thousands) March 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Significant Assets: AFS Securities (1): U.S. Government agencies $ 7,433 $ — $ 7,433 $ — U.S. Government collateralized mortgage obligations 95,803 — 95,803 — Municipal bonds 41,477 — 41,477 — U.S. Treasury securities 29,424 29,424 Corporate bond 31,419 — 31,419 — Total AFS securities 205,556 — 205,556 — Marketable equity securities (1) 3,358 3,358 — — Total $ 208,914 $ 3,358 $ 205,556 $ — Liabilities: Junior subordinated debt (1) $ 11,017 — — $ 11,017 Total $ 11,017 — — $ 11,017 (1) Recurring There were no non-recurring fair value adjustments at March 31, 2023 or December 31, 2022. 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, 2022: (In thousands) December 31, 2022 Quoted Prices Significant Significant Assets: AFS Securities (1): U.S. Government agencies $ 8,231 $ — $ 8,231 $ — U.S. Government collateralized mortgage obligations 97,218 — 97,218 Municipal bonds 40,170 — 40,170 Treasury securities 29,224 29,224 Corporate bonds 32,702 — 32,702 — Total AFS securities 207,545 — 207,545 — Marketable equity securities (1) 3,315 3,315 — — Total $ 210,860 $ 3,315 $ 207,545 $ — Liabilities: Junior subordinated debt (1) $ 10,883 $ — $ — $ 10,883 Total $ 10,883 $ — $ — $ 10,883 (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 March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 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 6.22% Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 6.63% 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 March 31, 2023 and December 31, 2022 is primarily due to increases in rates for similar debt instruments. The following table provides a reconciliation of assets and liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis: Three Months Ended (In thousands) March 31, 2023 March 31, 2022 Junior Subordinated Debt: Beginning balance $ 10,883 $ 11,189 Gross (gain) loss included in earnings (333) 999 Gross (gain) loss related to changes in instrument specific credit risk 440 (1,302) Change in accrued interest 27 1 Ending balance $ 11,017 $ 10,887 The amount of total (gain) 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 $ (333) $ 999 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible AssetsAt March 31, 2023, the Company had goodwill in the amount of $4.5 million in connection with various business combinations and purchases. This amount was unchanged from the balance of $4.5 million at December 31, 2022. 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, 2022 with no material events occurring through the period ended March 31, 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows: March 31, 2023 December 31, 2022 (In thousands) 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 $ (19,066) $ (194) $ 1,765 $ (236) $ (627) $ (311) Current period comprehensive income (loss), net of tax 933 16 (310) (18,830) 433 2,076 Ending balance $ (18,133) $ (178) $ 1,455 $ (19,066) $ (194) $ 1,765 Accumulated other comprehensive loss $ (16,856) $ (17,495) |
Investment in York Monterey Pro
Investment in York Monterey Properties | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in York Monterey Properties | Investment in York Monterey PropertiesAs of March 31, 2023 and December 31, 2022, the Bank’s investment in York Monterey Properties Inc. totaled $5.2 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 | 3 Months Ended |
Mar. 31, 2023 | |
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: (In thousands) March 31, 2023 December 31, 2022 Commitments to extend credit $ 214,725 $ 190,183 Standby letters of credit $ 1,570 $ 1,570 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 March 31, 2023, the maximum potential amount of future undiscounted payments the Company could be required to make under outstanding standby letters of credit totaled $1,570,000. In the ordinary course of business, the Company becomes involved in litigation arising out of its normal business activities. Management, after consultation with legal counsel, believes that the ultimate liability, if any, resulting from the disposition of such claims would not be material to the financial position of the Company. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting and Reporting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Impact of New Financial Accounting Standards | Impact of New Financial Accounting Standards : In June 2016, Financial Accounting Standards Board (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 adopted ASC 326 (“CECL”) as of January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods beginning after January 1, 2023, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The adoption of this new standard required a cumulative adjustment to the allowance for credit losses, leading to an increase in the credit loss balance of $6.4 million and an increase in the reserve for unfunded loan commitments of $273,000, resulting in a combined adjustment to retained earnings of $4.7 million, net of a $1.9 million tax adjustment. The following table summarized the impact of the adoption of ASU 2016-13 by loan category: (In thousands) Allowance for credit losses as reported under ASU 2016-13 Allowance before the adoption of ASU 2016-13 Impact to allowance of adoption of ASU 2016-13 Assets: Commercial and industrial: Commercial and business loans $ 2,290 $ 954 $ 1,336 Government program loans 2 2 — Total commercial and industrial 2,292 956 1,336 Real estate mortgage: Commercial real estate 2,735 659 2,076 Residential mortgages 986 703 283 Home improvement and home equity loans 2 2 — Total real estate mortgage 3,723 1,364 2,359 Real estate construction and development 4,129 3,408 721 Agricultural 1,550 525 1,025 Installment and student loans 4,855 2,898 1,957 Unallocated — 1,031 (1,031) Allowance for credit losses for all loans $ 16,549 $ 10,182 $ 6,367 Liabilities: Allowance for credit losses on off-balance sheet exposures $ 805 $ 532 $ 273 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 was effective for all entities as of March 12, 2020, through December 31, 2022. However, the effective date was updated in ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, and is currently set for December 31, 2024. 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 troubled debt restructurings. New disclosures regarding gross write-offs for financing receivables by year of origination are also included in the update. This update has been adopted as of January 1, 2023. The Bank will no longer report trouble debt restructures or classify loans as such. TDRs previously recognized have been incorporated into the CECL methodology in regard to loan loss reserves as of January 1, 2023. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting and Reporting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Impact of the Adoption of ASU 2016-13 by Loan Category | The following table summarized the impact of the adoption of ASU 2016-13 by loan category: (In thousands) Allowance for credit losses as reported under ASU 2016-13 Allowance before the adoption of ASU 2016-13 Impact to allowance of adoption of ASU 2016-13 Assets: Commercial and industrial: Commercial and business loans $ 2,290 $ 954 $ 1,336 Government program loans 2 2 — Total commercial and industrial 2,292 956 1,336 Real estate mortgage: Commercial real estate 2,735 659 2,076 Residential mortgages 986 703 283 Home improvement and home equity loans 2 2 — Total real estate mortgage 3,723 1,364 2,359 Real estate construction and development 4,129 3,408 721 Agricultural 1,550 525 1,025 Installment and student loans 4,855 2,898 1,957 Unallocated — 1,031 (1,031) Allowance for credit losses for all loans $ 16,549 $ 10,182 $ 6,367 Liabilities: Allowance for credit losses on off-balance sheet exposures $ 805 $ 532 $ 273 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022: March 31, 2023 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) Securities available-for-sale: U.S. Government agencies $ 7,483 $ 5 $ (55) $ 7,433 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 108,407 12 (12,616) 95,803 U.S. Treasury securities 30,014 — (590) 29,424 Municipal bonds 50,630 — (9,153) 41,477 Corporate bonds 34,762 6 (3,349) 31,419 Total securities available for sale $ 231,296 $ 23 $ (25,763) $ 205,556 December 31, 2022 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) Securities available-for-sale: U.S. Government agencies $ 8,275 $ 7 $ (51) $ 8,231 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 110,908 5 (13,695) 97,218 U.S. Treasury securities 30,004 — (780) 29,224 Municipal bonds 50,678 — (10,508) 40,170 Corporate bonds 34,745 5 (2,048) 32,702 Total securities available for sale $ 234,610 $ 17 $ (27,082) $ 207,545 Proceeds and gross realized gains (losses) from sales of available-for-sale investment securities are shown below: Three Months Ended (In thousands) March 31, 2023 March 31, 2022 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 Obligations | The amortized cost and fair value of securities available for sale at March 31, 2023, 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. March 31, 2023 (In thousands) Amortized Cost Fair Value (Carrying Amount) Due in one year or less $ 17,506 $ 17,272 Due after one year through five years 31,772 30,280 Due after five years through ten years 65,908 55,411 Due after ten years 7,700 6,791 Collateralized mortgage obligations 108,410 95,802 $ 231,296 $ 205,556 |
Temporarily Impaired Investment Securities | The following summarizes temporarily impaired available-for-sale investment securities: Less than 12 Months 12 Months or More Total (In thousands) Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses March 31, 2023 U.S. Government agencies $ — $ — $ 5,219 $ (55) $ 5,219 $ (55) U.S. Government sponsored entities and agencies collateralized by mortgage obligations 26,845 (1,168) 68,402 (11,448) 95,247 (12,616) Corporate bonds 15,589 (2,158) 12,995 (1,191) 28,584 (3,349) Municipal bonds — — 41,477 (9,153) 41,477 (9,153) U.S. Treasury securities 9,908 (30) 19,516 (560) 29,424 (590) Total impaired securities $ 52,342 $ (3,356) $ 147,609 $ (22,407) $ 199,951 $ (25,763) December 31, 2022 U.S. Government agencies $ — $ — $ 5,831 $ (51) $ 5,831 $ (51) U.S. Government sponsored entities and agencies collateralized by mortgage obligations 47,968 (3,949) 48,763 (9,746) 96,731 (13,695) Corporate bonds 24,424 (1,491) 5,443 (557) 29,867 (2,048) Municipal bonds — — 40,170 (10,508) 40,170 (10,508) U.S. Treasury securities 14,714 (190) 14,510 (590) 29,224 (780) Total impaired securities $ 87,106 $ (5,630) $ 114,717 $ (21,452) $ 201,823 $ (27,082) The following summarizes the number of temporarily impaired investment securities: March 31, 2023 2022 Securities available for sale: U.S. Government agencies 4 4 U.S. Government sponsored entities and agencies collateralized by mortgage obligations 51 33 Municipal bonds 46 46 Corporate bonds 9 4 U.S. Treasury securities 4 3 Total temporarily impaired securities 114 90 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans | Loans are comprised of the following: (In thousands) March 31, 2023 December 31, 2022 Commercial and industrial: Commercial and business loans $ 50,379 $ 57,770 Government program loans 132 132 Total commercial and industrial 50,511 57,902 Real estate mortgage: Commercial real estate 395,669 398,115 Residential mortgages 269,991 273,357 Home improvement and home equity loans 46 49 Total real estate mortgage 665,706 671,521 Real estate construction and development 137,257 153,374 Agricultural 45,513 52,722 Installment and student loans 43,740 44,659 Total loans $ 942,727 $ 980,178 |
Amortized Cost of Delinquent Loans | The following is a summary of the amortized cost of delinquent loans at March 31, 2023: (In thousands) Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and business loans $ — $ — $ — $ — $ 50,379 $ 50,379 $ — Government program loans — — — — 132 132 — Total commercial and industrial — — — — 50,511 50,511 — Commercial real estate loans — — — — 395,669 395,669 — Residential mortgages 2,732 — — 2,732 267,259 269,991 — Home improvement and home equity loans 7 — — 7 39 46 — Total real estate mortgage 2,739 — — 2,739 662,967 665,706 — Real estate construction and development loans — — 11,269 11,269 125,988 137,257 — Agricultural loans — — 86 86 45,427 45,513 — Installment and student loans 817 571 382 1,770 41,881 43,651 382 Overdraft protection lines — — — — 11 11 — Overdrafts — — — — 78 78 — Installment and student loans 817 571 382 1,770 41,970 43,740 382 Total loans $ 3,556 $ 571 $ 11,737 $ 15,864 $ 926,863 $ 942,727 $ 382 The following is a summary of the amortized cost of delinquent loans at December 31, 2022: (In thousands) Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and business loans $ — $ — $ — $ — $ 57,770 $ 57,770 $ — Government program loans — — — — 132 132 — Total commercial and industrial — — — — 57,902 57,902 — Commercial real estate loans — — — — 398,115 398,115 — Residential mortgages — — — — 273,357 273,357 — Home improvement and home equity loans 8 — — 8 41 49 — Total real estate mortgage 8 — — 8 671,513 671,521 — Real estate construction and development loans — — 12,545 12,545 140,829 153,374 — Agricultural loans — — 108 108 52,614 52,722 — Installment and student loans 546 642 252 1,440 42,714 44,154 252 Overdraft protection lines — — — — 17 17 — Overdrafts — — — — 488 488 — Installment and student loans 546 642 252 1,440 43,219 44,659 252 Total loans $ 554 $ 642 $ 12,905 $ 14,101 $ 966,077 $ 980,178 $ 252 The following table summarize the amortized cost of student loan aging for loans in repayment and forbearance: March 31, 2023 December 31, 2022 (Dollars in thousands) Number of Borrowers Amount Number of Borrowers Amount Current or less than 31 days 239 $ 26,512 251 $ 26,993 31 - 60 days 6 817 8 546 61 - 90 days 7 571 5 642 91 - 120 days 4 382 4 252 Total 256 $ 28,282 268 $ 28,433 |
Non-Accrual Loan Status and Loans Past Due Over 89 days Still Accruing | The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing: March 31, 2023 December 31, 2022 (In thousands) Nonaccrual Loans With No Allowance For Credit Losses Nonaccrual Loans Loans past due over 89 Days Still Accruing Nonaccrual Loans With No Allowance For Credit Losses Nonaccrual Loans Loans Past Due Over 89 Days Still Accruing Real estate construction and development loans $ 13,109 $ 13,109 $ — $ 14,436 $ 14,436 $ — Agricultural loans — 86 — 108 — Installment and student loans — — 382 252 Total $ 13,109 $ 13,195 $ 382 $ 14,436 $ 14,544 $ 252 |
Credit Quality Indicators for Outstanding Student Loans | The following table presents loans by type, risk rating, and origination year according to our internal risk ratings as of March 31, 2023: Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Commercial and business Pass $ 850 $ 1,465 $ 730 $ 1,340 $ 45 $ 995 $ 44,954 $ — $ 50,379 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 850 1,465 730 1,340 45 995 44,954 — 50,379 Government program Pass — — — 12 — 120 — — 132 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — — 12 — 120 — — 132 Commercial real estate Pass 2,887 89,262 36,313 59,853 54,170 110,070 17,291 — 369,846 Special Mention — — — 4,952 7,874 9,937 3,060 — 25,823 Substandard — — — — — — — — — Doubtful — — — — — — — — — 2,887 89,262 36,313 64,805 62,044 120,007 20,351 — 395,669 Residential mortgages Not graded — 27,680 213,059 3,236 — 10,149 — — 254,124 Pass — — — — — 1,746 14,121 — 15,867 Special Mention — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — 27,680 213,059 3,236 — 11,895 14,121 — 269,991 (Continued) Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Home improvement and home equity Not graded — — — — — 39 — — 39 Pass — — — — — 7 — — 7 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — — — — 46 — — 46 Real estate construction and development Pass — — — 4,606 180 4,896 114,466 — 124,148 Special Mention — — — — — — — — — Substandard — — — — — 4,836 8,273 — 13,109 Doubtful — — — — — — — — — — — — 4,606 180 9,732 122,739 — 137,257 Agricultural Pass — 6,865 470 2,999 1,499 11,119 20,667 — 43,619 Special Mention — — — 589 — 428 — — 1,017 Substandard — — — — — 87 790 — 877 Doubtful — — — — — — — — — — — — 589 — 515 790 — 45,513 Installment and student loans Not graded 237 337 244 179 1,598 40,470 675 — 43,740 Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 237 337 244 179 1,598 40,470 675 — 43,740 Total Loans $ 3,974 $ 118,744 $ 250,346 $ 74,767 $ 63,867 $ 183,780 $ 203,630 $ — $ 942,727 The following table presents loans by type, risk rating, and origination year according to our internal risk ratings as of December 31, 2022: Origination Year Revolving loan amortized cost basis Revolving loan converted to term loans (In thousands) 2022 2021 2020 2019 2018 Prior Total Commercial and business loans Pass $ 1,486 $ 775 $ 1,471 $ 210 $ 1,081 $ 237 $ 52,310 $ — $ 57,570 Special Mention — — — — — — 200 — 200 Substandard — — — — — — — — — Doubtful — — — — — — — — — 1,486 775 1,471 210 1,081 237 52,510 — 57,770 Government program loans Pass — — 13 — — 119 — — 132 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — 13 — — 119 — — 132 (Continued) Origination Year Revolving loan amortized cost basis Revolving loan converted to term loans (In thousands) 2022 2021 2020 2019 2018 Prior Total Commercial real estate Pass 89,610 36,506 60,293 54,595 32,935 82,170 15,987 — 372,096 Special Mention — — 4,979 7,935 408 9,637 3,060 — 26,019 Substandard — — — — — — — — — Doubtful — — — — — — — — — 89,610 36,506 65,272 62,530 33,343 91,807 19,047 — 398,115 Residential mortgages Not graded 27,746 215,326 3,255 — — 10,908 — — 257,235 Pass — — — — — 1,826 14,296 — 16,122 Special Mention — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 27,746 215,326 3,255 — — 12,734 14,296 — 273,357 Home improvement and home equity loans Not graded — — — — — 41 — — 41 Pass — — — — — 8 — — 8 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — — — — 49 — — 49 Real estate construction and development Pass — — 4,842 180 824 6,599 126,493 — 138,938 Special Mention — — — — — — — — — Substandard — — — — — 5,372 9,064 — 14,436 Doubtful — — — — — — — — — — — 4,842 180 824 11,971 135,557 — 153,374 Agricultural Pass 7,051 474 3,010 3,777 — 11,421 24,924 — 50,657 Special Mention — — 589 — 428 — — — 1,017 Substandard — — — — — 258 790 — 1,048 Doubtful — — — — — — — — — 7,051 474 3,599 3,777 428 11,679 25,714 — 52,722 Installment and student loans Not Graded 373 272 196 1,623 10,759 30,905 531 — 44,659 Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 373 272 196 1,623 10,759 30,905 531 — 44,659 Total Loans $ 126,266 $ 253,353 $ 78,648 $ 68,320 $ 46,435 $ 159,501 $ 247,655 $ — $ 980,178 The following tables summarize the credit quality indicators for outstanding student loans: March 31, 2023 December 31, 2022 (Dollars in thousands) Number of Loans Amount Accrued Interest Number of Loans Amount Accrued Interest School 69 $ 2,025 $ 967 70 $ 2,056 $ 908 Grace 12 327 163 27 667 348 Repayment 460 21,421 293 516 23,414 857 Deferment 256 10,784 1,964 268 10,974 1,732 Forbearance 142 6,862 374 91 5,019 237 Total 939 $ 41,419 $ 3,761 972 $ 42,130 $ 4,082 |
Allowance for Credit Loses by Loan Category | The following summarizes the activity in the allowance for credit losses by loan category: Three Months Ended March 31, 2023 (In thousands) Commercial and Industrial Real Estate Mortgage Real Estate Construction Development Agricultural Installment and Student Loans Total Beginning balance, prior to adoption of ASC 326 $ 955 $ 1,363 $ 3,409 $ 525 $ 3,930 $ 10,182 Impact of ASC 326 adoption 1,336 2,359 720 1,025 927 6,367 Provision (recapture of provision) for credit losses (383) (37) (542) (294) 763 (493) Charge-offs — — — — (477) (477) Recoveries — 20 — — 23 43 Net recoveries (charge-offs) — 20 — — (454) (434) Ending balance $ 1,908 $ 3,705 $ 3,587 $ 1,256 $ 5,166 $ 15,622 Three Months Ended March 31, 2022 (In thousands) Commercial and Industrial Real Estate Mortgage Real Estate Construction Development Agricultural Installment and Student Loans Total Beginning balance $ 597 $ 1,174 $ 2,840 $ 1,233 $ 3,489 $ 9,333 Provision (recapture of provision) for credit losses (306) 117 57 (292) 429 5 Charge-offs — — — — (358) (358) Recoveries 268 4 — 16 8 296 Net (charge-offs) recoveries 268 4 — 16 (350) (62) Ending balance $ 559 $ 1,295 $ 2,897 $ 957 $ 3,568 $ 9,276 |
Summarized Loan Balances | The following summarizes information with respect to the loan balances: March 31, 2023 March 31, 2022 (In thousands) Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total Loans Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment Total Loans Commercial and business loans $ — $ 50,379 $ 50,379 $ — $ 38,725 $ 38,725 Government program loans — 132 132 — 221 221 Total commercial and industrial — 50,511 50,511 — 38,946 38,946 Commercial real estate loans — 395,669 395,669 — 330,870 330,870 Residential mortgage loans 74 269,917 269,991 145 256,766 256,911 Home improvement and home equity loans — 46 46 — 74 74 Total real estate mortgage 74 665,632 665,706 145 587,710 587,855 Real estate construction and development loans 13,109 124,148 137,257 11,147 141,820 152,967 Agricultural loans 879 44,634 45,513 653 47,142 47,795 Installment and student loans — 43,740 43,740 — 49,400 49,400 Total loans $ 14,062 $ 928,665 $ 942,727 $ 11,945 $ 865,018 $ 876,963 |
Schedule of Financial Instruments Owned and Pledged as Collateral | The following table presents the recorded investment in collateral-dependent loans by type of loan: March 31, 2023 December 31, 2022 (Dollars in thousands) Amount Number of Collateral-Dependent Loans Amount Number of Collateral-Dependent Loans Real estate construction and development loans $ 13,110 4 $ 14,436 4 Agricultural loans 790 2 108 2 Total $ 13,900 6 $ 14,544 6 |
Student Loans (Tables)
Student Loans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Credit Quality Indicators for Outstanding Student Loans | The following table presents loans by type, risk rating, and origination year according to our internal risk ratings as of March 31, 2023: Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Commercial and business Pass $ 850 $ 1,465 $ 730 $ 1,340 $ 45 $ 995 $ 44,954 $ — $ 50,379 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 850 1,465 730 1,340 45 995 44,954 — 50,379 Government program Pass — — — 12 — 120 — — 132 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — — 12 — 120 — — 132 Commercial real estate Pass 2,887 89,262 36,313 59,853 54,170 110,070 17,291 — 369,846 Special Mention — — — 4,952 7,874 9,937 3,060 — 25,823 Substandard — — — — — — — — — Doubtful — — — — — — — — — 2,887 89,262 36,313 64,805 62,044 120,007 20,351 — 395,669 Residential mortgages Not graded — 27,680 213,059 3,236 — 10,149 — — 254,124 Pass — — — — — 1,746 14,121 — 15,867 Special Mention — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — 27,680 213,059 3,236 — 11,895 14,121 — 269,991 (Continued) Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans (In thousands) 2023 2022 2021 2020 2019 Prior Total Home improvement and home equity Not graded — — — — — 39 — — 39 Pass — — — — — 7 — — 7 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — — — — 46 — — 46 Real estate construction and development Pass — — — 4,606 180 4,896 114,466 — 124,148 Special Mention — — — — — — — — — Substandard — — — — — 4,836 8,273 — 13,109 Doubtful — — — — — — — — — — — — 4,606 180 9,732 122,739 — 137,257 Agricultural Pass — 6,865 470 2,999 1,499 11,119 20,667 — 43,619 Special Mention — — — 589 — 428 — — 1,017 Substandard — — — — — 87 790 — 877 Doubtful — — — — — — — — — — — — 589 — 515 790 — 45,513 Installment and student loans Not graded 237 337 244 179 1,598 40,470 675 — 43,740 Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 237 337 244 179 1,598 40,470 675 — 43,740 Total Loans $ 3,974 $ 118,744 $ 250,346 $ 74,767 $ 63,867 $ 183,780 $ 203,630 $ — $ 942,727 The following table presents loans by type, risk rating, and origination year according to our internal risk ratings as of December 31, 2022: Origination Year Revolving loan amortized cost basis Revolving loan converted to term loans (In thousands) 2022 2021 2020 2019 2018 Prior Total Commercial and business loans Pass $ 1,486 $ 775 $ 1,471 $ 210 $ 1,081 $ 237 $ 52,310 $ — $ 57,570 Special Mention — — — — — — 200 — 200 Substandard — — — — — — — — — Doubtful — — — — — — — — — 1,486 775 1,471 210 1,081 237 52,510 — 57,770 Government program loans Pass — — 13 — — 119 — — 132 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — 13 — — 119 — — 132 (Continued) Origination Year Revolving loan amortized cost basis Revolving loan converted to term loans (In thousands) 2022 2021 2020 2019 2018 Prior Total Commercial real estate Pass 89,610 36,506 60,293 54,595 32,935 82,170 15,987 — 372,096 Special Mention — — 4,979 7,935 408 9,637 3,060 — 26,019 Substandard — — — — — — — — — Doubtful — — — — — — — — — 89,610 36,506 65,272 62,530 33,343 91,807 19,047 — 398,115 Residential mortgages Not graded 27,746 215,326 3,255 — — 10,908 — — 257,235 Pass — — — — — 1,826 14,296 — 16,122 Special Mention — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 27,746 215,326 3,255 — — 12,734 14,296 — 273,357 Home improvement and home equity loans Not graded — — — — — 41 — — 41 Pass — — — — — 8 — — 8 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — — — — — — 49 — — 49 Real estate construction and development Pass — — 4,842 180 824 6,599 126,493 — 138,938 Special Mention — — — — — — — — — Substandard — — — — — 5,372 9,064 — 14,436 Doubtful — — — — — — — — — — — 4,842 180 824 11,971 135,557 — 153,374 Agricultural Pass 7,051 474 3,010 3,777 — 11,421 24,924 — 50,657 Special Mention — — 589 — 428 — — — 1,017 Substandard — — — — — 258 790 — 1,048 Doubtful — — — — — — — — — 7,051 474 3,599 3,777 428 11,679 25,714 — 52,722 Installment and student loans Not Graded 373 272 196 1,623 10,759 30,905 531 — 44,659 Pass — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — 373 272 196 1,623 10,759 30,905 531 — 44,659 Total Loans $ 126,266 $ 253,353 $ 78,648 $ 68,320 $ 46,435 $ 159,501 $ 247,655 $ — $ 980,178 The following tables summarize the credit quality indicators for outstanding student loans: March 31, 2023 December 31, 2022 (Dollars in thousands) Number of Loans Amount Accrued Interest Number of Loans Amount Accrued Interest School 69 $ 2,025 $ 967 70 $ 2,056 $ 908 Grace 12 327 163 27 667 348 Repayment 460 21,421 293 516 23,414 857 Deferment 256 10,784 1,964 268 10,974 1,732 Forbearance 142 6,862 374 91 5,019 237 Total 939 $ 41,419 $ 3,761 972 $ 42,130 $ 4,082 |
Summary of the Amortized Cost of Student Loan Aging | The following is a summary of the amortized cost of delinquent loans at March 31, 2023: (In thousands) Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and business loans $ — $ — $ — $ — $ 50,379 $ 50,379 $ — Government program loans — — — — 132 132 — Total commercial and industrial — — — — 50,511 50,511 — Commercial real estate loans — — — — 395,669 395,669 — Residential mortgages 2,732 — — 2,732 267,259 269,991 — Home improvement and home equity loans 7 — — 7 39 46 — Total real estate mortgage 2,739 — — 2,739 662,967 665,706 — Real estate construction and development loans — — 11,269 11,269 125,988 137,257 — Agricultural loans — — 86 86 45,427 45,513 — Installment and student loans 817 571 382 1,770 41,881 43,651 382 Overdraft protection lines — — — — 11 11 — Overdrafts — — — — 78 78 — Installment and student loans 817 571 382 1,770 41,970 43,740 382 Total loans $ 3,556 $ 571 $ 11,737 $ 15,864 $ 926,863 $ 942,727 $ 382 The following is a summary of the amortized cost of delinquent loans at December 31, 2022: (In thousands) Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and business loans $ — $ — $ — $ — $ 57,770 $ 57,770 $ — Government program loans — — — — 132 132 — Total commercial and industrial — — — — 57,902 57,902 — Commercial real estate loans — — — — 398,115 398,115 — Residential mortgages — — — — 273,357 273,357 — Home improvement and home equity loans 8 — — 8 41 49 — Total real estate mortgage 8 — — 8 671,513 671,521 — Real estate construction and development loans — — 12,545 12,545 140,829 153,374 — Agricultural loans — — 108 108 52,614 52,722 — Installment and student loans 546 642 252 1,440 42,714 44,154 252 Overdraft protection lines — — — — 17 17 — Overdrafts — — — — 488 488 — Installment and student loans 546 642 252 1,440 43,219 44,659 252 Total loans $ 554 $ 642 $ 12,905 $ 14,101 $ 966,077 $ 980,178 $ 252 The following table summarize the amortized cost of student loan aging for loans in repayment and forbearance: March 31, 2023 December 31, 2022 (Dollars in thousands) Number of Borrowers Amount Number of Borrowers Amount Current or less than 31 days 239 $ 26,512 251 $ 26,993 31 - 60 days 6 817 8 546 61 - 90 days 7 571 5 642 91 - 120 days 4 382 4 252 Total 256 $ 28,282 268 $ 28,433 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deposits [Abstract] | |
Deposits Summary | Deposits include the following: (In thousands) March 31, 2023 December 31, 2022 Noninterest-bearing deposits $ 394,745 $ 481,629 Interest-bearing deposits: NOW and money market accounts 528,233 499,861 Savings accounts 118,544 125,946 Time deposits: Under $250,000 52,835 42,933 $250,000 and over 16,775 15,115 Total interest-bearing deposits 716,387 683,855 Total deposits $ 1,111,132 $ 1,165,484 |
Short-term Borrowings_Other B_2
Short-term Borrowings/Other Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table sets forth the Company’s credit lines, balances outstanding, and pledged collateral: (In thousands) March 31, 2023 December 31, 2022 Unsecured credit lines: Credit limit $ 100,000 $ 120,000 Balance outstanding 13,200 — Federal Home Loan Bank: Credit limit 2,108 2,151 Balance outstanding — — Collateral pledged 2,263 2,307 Federal Reserve Bank: Credit limit 432,584 435,599 Balance outstanding — — Collateral pledged 579,777 590,427 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Expense and Supplemental Balance Sheet Information | The components of lease expense are as follows: Three Months Ended (In thousands) March 31, 2023 March 31, 2022 Operating lease expense $ 178 $ 184 Variable lease expense — — Total $ 178 $ 184 Supplemental information related to leases are as follows: Three Months Ended (In thousands) March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 179 $ 184 Weighted-average remaining lease term in years for operating leases 4.38 4.89 Weighted-average discount rate for operating leases 5.12 % 5.13 % |
Maturities of Lease Liabilities | Maturities of lease liabilities are as follows: (In thousands) March 31, 2023 2023 $ 723 2024 519 2025 335 2026 159 2027 110 Thereafter 291 Total undiscounted cash flows 2,137 Less: present value discount (222) Present value of net future minimum lease payments $ 1,915 |
Supplemental Cash Flow Disclo_2
Supplemental Cash Flow Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Three Months Ended (In thousands) March 31, 2023 March 31, 2022 Cash paid during the period for: Interest $ 1,631 $ 554 Income taxes — — Noncash investing activities: Impact of ASC 326 CECL adoption 6,367 — Unrealized gain on unrecognized post retirement costs, net of tax 21 23 Unrealized gain (loss) on available for sale securities, net of tax 1,325 (11,689) Unrealized gain on junior subordinated debentures, net of tax 2,947 1,302 Cash dividend declared 1,880 1,875 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 March 31, 2022 Net income (in thousands) $ 6,125 $ 2,443 Weighted average shares issued 17,076,510 17,030,409 Add: dilutive effect of stock options 15,950 21,410 Weighted average shares outstanding adjusted for potential dilution 17,092,460 17,051,819 Basic earnings per share $ 0.36 $ 0.14 Diluted earnings per share $ 0.36 $ 0.14 Anti-dilutive stock options excluded from earnings per share calculation 101,000 97,000 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosure (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 (In thousands) 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 $ 205,556 $ 205,556 $ — $ 205,556 $ — Marketable equity securities 3,358 3,358 3,358 Loans, net 927,105 872,532 — — 872,532 Financial Liabilities: Total deposits 1,111,132 1,110,363 1,041,522 — 68,841 Junior subordinated debt 11,017 11,017 — — 11,017 December 31, 2022 (In thousands) 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 $ 207,545 $ 207,545 $ — $ 207,545 $ — Marketable equity securities 3,315 3,315 3,315 — — Loans, net 969,996 906,050 — — 906,050 Financial Liabilities: Time deposits 1,165,484 1,164,492 1,107,436 — 57,056 Junior subordinated debt 10,883 10,883 — — 10,883 |
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 March 31, 2023: (In thousands) March 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Significant Assets: AFS Securities (1): U.S. Government agencies $ 7,433 $ — $ 7,433 $ — U.S. Government collateralized mortgage obligations 95,803 — 95,803 — Municipal bonds 41,477 — 41,477 — U.S. Treasury securities 29,424 29,424 Corporate bond 31,419 — 31,419 — Total AFS securities 205,556 — 205,556 — Marketable equity securities (1) 3,358 3,358 — — Total $ 208,914 $ 3,358 $ 205,556 $ — Liabilities: Junior subordinated debt (1) $ 11,017 — — $ 11,017 Total $ 11,017 — — $ 11,017 (1) Recurring There were no non-recurring fair value adjustments at March 31, 2023 or December 31, 2022. 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, 2022: (In thousands) December 31, 2022 Quoted Prices Significant Significant Assets: AFS Securities (1): U.S. Government agencies $ 8,231 $ — $ 8,231 $ — U.S. Government collateralized mortgage obligations 97,218 — 97,218 Municipal bonds 40,170 — 40,170 Treasury securities 29,224 29,224 Corporate bonds 32,702 — 32,702 — Total AFS securities 207,545 — 207,545 — Marketable equity securities (1) 3,315 3,315 — — Total $ 210,860 $ 3,315 $ 207,545 $ — Liabilities: Junior subordinated debt (1) $ 10,883 $ — $ — $ 10,883 Total $ 10,883 $ — $ — $ 10,883 (1) Recurring |
Schedule of 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 | 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 March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 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 6.22% Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 6.63% |
Significant Unobservable Inputs (Level 3) on a Recurring Basis | The following table provides a reconciliation of assets and liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis: Three Months Ended (In thousands) March 31, 2023 March 31, 2022 Junior Subordinated Debt: Beginning balance $ 10,883 $ 11,189 Gross (gain) loss included in earnings (333) 999 Gross (gain) loss related to changes in instrument specific credit risk 440 (1,302) Change in accrued interest 27 1 Ending balance $ 11,017 $ 10,887 The amount of total (gain) 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 $ (333) $ 999 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows: March 31, 2023 December 31, 2022 (In thousands) 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 $ (19,066) $ (194) $ 1,765 $ (236) $ (627) $ (311) Current period comprehensive income (loss), net of tax 933 16 (310) (18,830) 433 2,076 Ending balance $ (18,133) $ (178) $ 1,455 $ (19,066) $ (194) $ 1,765 Accumulated other comprehensive loss $ (16,856) $ (17,495) |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: (In thousands) March 31, 2023 December 31, 2022 Commitments to extend credit $ 214,725 $ 190,183 Standby letters of credit $ 1,570 $ 1,570 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting and Reporting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jan. 01, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for losses | $ 15,622 | $ 9,276 | $ 10,182 | $ 9,333 | |
Retained earnings | 69,495 | 69,928 | |||
Provision for income taxes | 2,521 | $ 968 | |||
Impact of ASC 326 adoption | |||||
Allowance for losses | $ 6,367 | ||||
Impact of ASC 326 adoption | Unfunded Loan Commitment | |||||
Allowance for losses | $ 273 | $ 805 | |||
Impact of ASC 326 adoption | Accounting Standards Update 2016-13 | |||||
Allowance for losses | 6,400 | ||||
Retained earnings | 4,700 | ||||
Provision for income taxes | 1,900 | ||||
Impact of ASC 326 adoption | Accounting Standards Update 2016-13 | Unfunded Loan Commitment | |||||
Allowance for losses | $ 273 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting and Reporting Policies -Schedule of Impact of the Adoption of ASU 2016-13 by Loan Category (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Assets: | |||
Total Loans | $ 942,727 | $ 980,178 | $ 876,963 |
Total commercial and industrial | |||
Assets: | |||
Total Loans | 50,511 | 57,902 | 38,946 |
Total commercial and industrial | Commercial and business loans | |||
Assets: | |||
Total Loans | 50,379 | 57,770 | 38,725 |
Total commercial and industrial | Government program loans | |||
Assets: | |||
Total Loans | 132 | 132 | 221 |
Total real estate mortgage | |||
Assets: | |||
Total Loans | 665,706 | 671,521 | 587,855 |
Total real estate mortgage | Commercial real estate | |||
Assets: | |||
Total Loans | 395,669 | 398,115 | 330,870 |
Total real estate mortgage | Residential mortgages | |||
Assets: | |||
Total Loans | 269,991 | 273,357 | 256,911 |
Total real estate mortgage | Home improvement and home equity loans | |||
Assets: | |||
Total Loans | 46 | 49 | 74 |
Construction Loans | |||
Assets: | |||
Total Loans | 137,257 | 153,374 | 152,967 |
Agricultural | |||
Assets: | |||
Total Loans | 45,513 | 52,722 | 47,795 |
Installment and student loans | |||
Assets: | |||
Total Loans | 43,740 | 44,659 | $ 49,400 |
Accounting Standards Update 2016-13 | |||
Assets: | |||
Total Loans | 16,549 | 10,182 | |
Liabilities: | |||
Allowance for credit losses on off-balance sheet exposures | 805 | ||
Accounting Standards Update 2016-13 | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | 6,367 | ||
Accounting Standards Update 2016-13 | Total commercial and industrial | |||
Assets: | |||
Total Loans | 2,292 | 956 | |
Accounting Standards Update 2016-13 | Total commercial and industrial | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | 1,336 | ||
Accounting Standards Update 2016-13 | Total commercial and industrial | Commercial and business loans | |||
Assets: | |||
Total Loans | 2,290 | 954 | |
Accounting Standards Update 2016-13 | Total commercial and industrial | Commercial and business loans | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | 1,336 | ||
Accounting Standards Update 2016-13 | Total commercial and industrial | Government program loans | |||
Assets: | |||
Total Loans | 2 | 2 | |
Accounting Standards Update 2016-13 | Total commercial and industrial | Government program loans | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | 0 | ||
Accounting Standards Update 2016-13 | Total real estate mortgage | |||
Assets: | |||
Total Loans | 3,723 | 1,364 | |
Accounting Standards Update 2016-13 | Total real estate mortgage | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | 2,359 | ||
Accounting Standards Update 2016-13 | Total real estate mortgage | Commercial real estate | |||
Assets: | |||
Total Loans | 2,735 | 659 | |
Accounting Standards Update 2016-13 | Total real estate mortgage | Commercial real estate | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | 2,076 | ||
Accounting Standards Update 2016-13 | Total real estate mortgage | Residential mortgages | |||
Assets: | |||
Total Loans | 986 | 703 | |
Accounting Standards Update 2016-13 | Total real estate mortgage | Residential mortgages | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | 283 | ||
Accounting Standards Update 2016-13 | Total real estate mortgage | Home improvement and home equity loans | |||
Assets: | |||
Total Loans | 2 | 2 | |
Accounting Standards Update 2016-13 | Total real estate mortgage | Home improvement and home equity loans | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | 0 | ||
Accounting Standards Update 2016-13 | Construction Loans | |||
Assets: | |||
Total Loans | 4,129 | 3,408 | |
Accounting Standards Update 2016-13 | Construction Loans | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | 721 | ||
Accounting Standards Update 2016-13 | Agricultural | |||
Assets: | |||
Total Loans | 1,550 | 525 | |
Accounting Standards Update 2016-13 | Agricultural | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | 1,025 | ||
Accounting Standards Update 2016-13 | Installment and student loans | |||
Assets: | |||
Total Loans | 4,855 | 2,898 | |
Liabilities: | |||
Allowance for credit losses on off-balance sheet exposures | 532 | ||
Accounting Standards Update 2016-13 | Installment and student loans | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | 1,957 | ||
Liabilities: | |||
Allowance for credit losses on off-balance sheet exposures | 273 | ||
Accounting Standards Update 2016-13 | Unallocated | |||
Assets: | |||
Total Loans | 0 | $ 1,031 | |
Accounting Standards Update 2016-13 | Unallocated | Impact of ASC 326 adoption | |||
Assets: | |||
Total Loans | $ (1,031) |
Investment Securities - Compari
Investment Securities - Comparison of Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 231,296 | $ 234,610 |
Gross Unrealized Gains | 23 | 17 |
Gross Unrealized Losses | (25,763) | (27,082) |
Fair Value (Carrying Amount) | 205,556 | 207,545 |
U.S. Government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,483 | 8,275 |
Gross Unrealized Gains | 5 | 7 |
Gross Unrealized Losses | (55) | (51) |
Fair Value (Carrying Amount) | 7,433 | 8,231 |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 108,407 | 110,908 |
Gross Unrealized Gains | 12 | 5 |
Gross Unrealized Losses | (12,616) | (13,695) |
Fair Value (Carrying Amount) | 95,803 | 97,218 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 30,014 | 30,004 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (590) | (780) |
Fair Value (Carrying Amount) | 29,424 | 29,224 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 50,630 | 50,678 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (9,153) | (10,508) |
Fair Value (Carrying Amount) | 41,477 | 40,170 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 34,762 | 34,745 |
Gross Unrealized Gains | 6 | 5 |
Gross Unrealized Losses | (3,349) | (2,048) |
Fair Value (Carrying Amount) | $ 31,419 | $ 32,702 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities on Collateralized Mortgage Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 17,506 | |
Due after one year through five years | 31,772 | |
Due after five years through ten years | 65,908 | |
Due after ten years | 7,700 | |
Collateralized mortgage obligations | 108,410 | |
Amortized Cost | 231,296 | $ 234,610 |
Fair Value (Carrying Amount) | ||
Due in one year or less | 17,272 | |
Due after one year through five years | 30,280 | |
Due after five years through ten years | 55,411 | |
Due after ten years | 6,791 | |
Collateralized mortgage obligations | 95,802 | |
Fair Value (Carrying Amount) | $ 205,556 | $ 207,545 |
Investment Securities - Proceed
Investment Securities - Proceeds and Gross Realized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales or calls | $ 0 | $ 15,676 |
Gross realized gains from sales or calls | 0 | 78 |
Gross realized losses from sales or calls | $ 0 | $ (48) |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) security | Mar. 31, 2022 USD ($) security | Dec. 31, 2022 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale, temporarily impaired, number of positions | security | 114 | 90 | |
Unrealized loss on marketable equity securities | $ 43,000 | $ (182,000) | |
Held-to-maturity securities | 0 | $ 0 | |
Investment securities | $ 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 | 51 | 33 | |
Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale, temporarily impaired, number of positions | security | 9 | 4 | |
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 | 3 | |
Carrying Amount | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | $ 77,000,000 | ||
Investment securities | 205,556,000 | 207,545,000 | |
Estimated Fair Value | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | 66,900,000 | ||
Investment securities | $ 205,556,000 | $ 207,545,000 |
Investment Securities - Tempora
Investment Securities - Temporarily Impaired Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value (Carrying Amount) | ||
Less than 12 Months | $ 52,342 | $ 87,106 |
12 Months or More | 147,609 | 114,717 |
Total | 199,951 | 201,823 |
Unrealized Losses | ||
Less than 12 Months | (3,356) | (5,630) |
12 Months or More | (22,407) | (21,452) |
Total | (25,763) | (27,082) |
U.S. Government agencies | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 5,219 | 5,831 |
Total | 5,219 | 5,831 |
Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or More | (55) | (51) |
Total | (55) | (51) |
U.S. Government sponsored entities and agencies collateralized by mortgage obligations | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 26,845 | 47,968 |
12 Months or More | 68,402 | 48,763 |
Total | 95,247 | 96,731 |
Unrealized Losses | ||
Less than 12 Months | (1,168) | (3,949) |
12 Months or More | (11,448) | (9,746) |
Total | (12,616) | (13,695) |
Corporate bonds | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 15,589 | 24,424 |
12 Months or More | 12,995 | 5,443 |
Total | 28,584 | 29,867 |
Unrealized Losses | ||
Less than 12 Months | (2,158) | (1,491) |
12 Months or More | (1,191) | (557) |
Total | (3,349) | (2,048) |
Municipal bonds | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 41,477 | 40,170 |
Total | 41,477 | 40,170 |
Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or More | (9,153) | (10,508) |
Total | (9,153) | (10,508) |
U.S. Treasury securities | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 9,908 | 14,714 |
12 Months or More | 19,516 | 14,510 |
Total | 29,424 | 29,224 |
Unrealized Losses | ||
Less than 12 Months | (30) | (190) |
12 Months or More | (560) | (590) |
Total | $ (590) | $ (780) |
Investments Securities - Number
Investments Securities - Number of Temporarily Impaired Investment Securities (Details) - security | Mar. 31, 2023 | Mar. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | 114 | 90 |
U.S. Government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | 4 | 4 |
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 | 51 | 33 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | 46 | 46 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | 9 | 4 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | 4 | 3 |
Loans - Loans (Details)
Loans - Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 942,727 | $ 980,178 | $ 876,963 |
Total commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 50,511 | 57,902 | 38,946 |
Total commercial and industrial | Commercial and business loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 50,379 | 57,770 | 38,725 |
Total commercial and industrial | Government program loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 132 | 132 | 221 |
Total real estate mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 665,706 | 671,521 | 587,855 |
Total real estate mortgage | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 395,669 | 398,115 | 330,870 |
Total real estate mortgage | Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 269,991 | 273,357 | 256,911 |
Total real estate mortgage | Home improvement and home equity loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 46 | 49 | 74 |
Real estate construction and development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 137,257 | 153,374 | 152,967 |
Agricultural | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 45,513 | 52,722 | 47,795 |
Installment and student loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 43,740 | $ 44,659 | $ 49,400 |
Loans - Narrative (Details)
Loans - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) segment payment rating | Dec. 31, 2022 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Minimum period of default | 90 days | |
Number of monthly payments to demonstrate repayment ability | payment | 6 | |
Remaining undisbursed commitments, loan funds | $ 0 | $ 0 |
Number of risk rating approaches | rating | 2 | |
Number of loan portfolio segment | segment | 10 | |
Minimum | Grade 4 and 5 Pass [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Notes receivable, period of loss recognition | 3 years | |
Maximum | Grade 4 and 5 Pass [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Notes receivable, period of loss recognition | 4 years | |
Commitments to extend credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Contractual amount | $ 214,725,000 | 190,183,000 |
Standby letters of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Contractual amount | $ 1,570,000 | $ 1,570,000 |
Total commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percentage of total loans (in percent) | 5.40% | 5.90% |
Total real estate mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percentage of total loans (in percent) | 70.60% | 68.50% |
Construction Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percentage of total loans (in percent) | 14.60% | 15.70% |
Agricultural | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percentage of total loans (in percent) | 4.80% | 5.40% |
Installment and student loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percentage of total loans (in percent) | 4.60% | 4.60% |
Number of loan portfolio segment | segment | 3 |
Loans - Amortized Cost of Delin
Loans - Amortized Cost of Delinquent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Financing Receivable, Past Due [Line Items] | |||
Total Loans | $ 942,727 | $ 980,178 | $ 876,963 |
Accruing Loans 90 or More Days Past Due | 382 | 252 | |
Total commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 50,511 | 57,902 | 38,946 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Total commercial and industrial | Commercial and business loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 50,379 | 57,770 | 38,725 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Total commercial and industrial | Government program loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 132 | 132 | 221 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Total real estate mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 665,706 | 671,521 | 587,855 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Total real estate mortgage | Commercial real estate loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 395,669 | 398,115 | 330,870 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Total real estate mortgage | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 269,991 | 273,357 | 256,911 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Total real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 46 | 49 | 74 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Real estate construction and development | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 137,257 | 153,374 | 152,967 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Agricultural loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 45,513 | 52,722 | 47,795 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Installment and Student Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 43,740 | 44,659 | $ 49,400 |
Accruing Loans 90 or More Days Past Due | 382 | 252 | |
Installment and Student Loans | Installment and student loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 43,651 | 44,154 | |
Accruing Loans 90 or More Days Past Due | 382 | 252 | |
Installment and Student Loans | Overdraft protection lines | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 11 | 17 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Installment and Student Loans | Overdrafts | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 78 | 488 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Loans 30-60 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 3,556 | 554 | |
Loans 30-60 Days Past Due | Total commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Total commercial and industrial | Commercial and business loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Total commercial and industrial | Government program loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Total real estate mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 2,739 | 8 | |
Loans 30-60 Days Past Due | Total real estate mortgage | Commercial real estate loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Total real estate mortgage | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 2,732 | 0 | |
Loans 30-60 Days Past Due | Total real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 7 | 8 | |
Loans 30-60 Days Past Due | Real estate construction and development | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Agricultural loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Installment and Student Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 817 | 546 | |
Loans 30-60 Days Past Due | Installment and Student Loans | Installment and student loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 817 | 546 | |
Loans 30-60 Days Past Due | Installment and Student Loans | Overdraft protection lines | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 30-60 Days Past Due | Installment and Student Loans | Overdrafts | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 61-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 571 | 642 | |
Loans 61-89 Days Past Due | Total commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Total commercial and industrial | Commercial and business loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Total commercial and industrial | Government program loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Total real estate mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Total real estate mortgage | Commercial real estate loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Total real estate mortgage | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Total real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Real estate construction and development | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Agricultural loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Installment and Student Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 571 | 642 | |
Loans 61-89 Days Past Due | Installment and Student Loans | Installment and student loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 571 | 642 | |
Loans 61-89 Days Past Due | Installment and Student Loans | Overdraft protection lines | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 61-89 Days Past Due | Installment and Student Loans | Overdrafts | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 90 or More Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 11,737 | 12,905 | |
Loans 90 or More Days Past Due | Total commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Total commercial and industrial | Commercial and business loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Total commercial and industrial | Government program loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Total real estate mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Total real estate mortgage | Commercial real estate loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Total real estate mortgage | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Total real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Real estate construction and development | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 11,269 | 12,545 | |
Loans 90 or More Days Past Due | Agricultural loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 86 | 108 | |
Loans 90 or More Days Past Due | Installment and Student Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 382 | 252 | |
Loans 90 or More Days Past Due | Installment and Student Loans | Installment and student loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 382 | 252 | |
Loans 90 or More Days Past Due | Installment and Student Loans | Overdraft protection lines | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Loans 90 or More Days Past Due | Installment and Student Loans | Overdrafts | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Total Past Due Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 15,864 | 14,101 | |
Total Past Due Loans | Total commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Total Past Due Loans | Total commercial and industrial | Commercial and business loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Total Past Due Loans | Total commercial and industrial | Government program loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Total Past Due Loans | Total real estate mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 2,739 | 8 | |
Total Past Due Loans | Total real estate mortgage | Commercial real estate loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Total Past Due Loans | Total real estate mortgage | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 2,732 | 0 | |
Total Past Due Loans | Total real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 7 | 8 | |
Total Past Due Loans | Real estate construction and development | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 11,269 | 12,545 | |
Total Past Due Loans | Agricultural loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 86 | 108 | |
Total Past Due Loans | Installment and Student Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,770 | 1,440 | |
Total Past Due Loans | Installment and Student Loans | Installment and student loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,770 | 1,440 | |
Total Past Due Loans | Installment and Student Loans | Overdraft protection lines | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Total Past Due Loans | Installment and Student Loans | Overdrafts | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Current Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 926,863 | 966,077 | |
Current Loans | Total commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 50,511 | 57,902 | |
Current Loans | Total commercial and industrial | Commercial and business loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 50,379 | 57,770 | |
Current Loans | Total commercial and industrial | Government program loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 132 | 132 | |
Current Loans | Total real estate mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 662,967 | 671,513 | |
Current Loans | Total real estate mortgage | Commercial real estate loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 395,669 | 398,115 | |
Current Loans | Total real estate mortgage | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 267,259 | 273,357 | |
Current Loans | Total real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 39 | 41 | |
Current Loans | Real estate construction and development | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 125,988 | 140,829 | |
Current Loans | Agricultural loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 45,427 | 52,614 | |
Current Loans | Installment and Student Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 41,970 | 43,219 | |
Current Loans | Installment and Student Loans | Installment and student loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 41,881 | 42,714 | |
Current Loans | Installment and Student Loans | Overdraft protection lines | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 11 | 17 | |
Current Loans | Installment and Student Loans | Overdrafts | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | $ 78 | $ 488 |
Loans - Non-Accrual Loan Status
Loans - Non-Accrual Loan Status and Loans Past Due Over 89 days Still Accruing (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans With No Allowance For Credit Losses | $ 13,109 | $ 14,436 |
Nonaccrual Loans | 13,195 | 14,544 |
Accruing Loans 90 or More Days Past Due | 382 | 252 |
Construction Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans With No Allowance For Credit Losses | 13,109 | 14,436 |
Nonaccrual Loans | 13,109 | 14,436 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans With No Allowance For Credit Losses | 0 | |
Nonaccrual Loans | 86 | 108 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Installment and student loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans With No Allowance For Credit Losses | 0 | |
Nonaccrual Loans | 0 | |
Accruing Loans 90 or More Days Past Due | $ 382 | $ 252 |
Loans - Summary of Loans By typ
Loans - Summary of Loans By type, Risk Rating, and Origination Year According to our Internal Risk Ratings (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | $ 3,974 | $ 126,266 | |
2022 | 118,744 | 253,353 | |
2021 | 250,346 | 78,648 | |
2020 | 74,767 | 68,320 | |
2019 | 63,867 | 46,435 | |
Prior | 183,780 | 159,501 | |
Revolving Loans Amortized Cost Basis | 203,630 | 247,655 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 942,727 | 980,178 | $ 876,963 |
Total commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | 50,511 | 57,902 | 38,946 |
Total commercial and industrial | Commercial and business loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 850 | 1,486 | |
2022 | 1,465 | 775 | |
2021 | 730 | 1,471 | |
2020 | 1,340 | 210 | |
2019 | 45 | 1,081 | |
Prior | 995 | 237 | |
Revolving Loans Amortized Cost Basis | 44,954 | 52,510 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 50,379 | 57,770 | 38,725 |
Total commercial and industrial | Commercial and business loans | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 850 | 1,486 | |
2022 | 1,465 | 775 | |
2021 | 730 | 1,471 | |
2020 | 1,340 | 210 | |
2019 | 45 | 1,081 | |
Prior | 995 | 237 | |
Revolving Loans Amortized Cost Basis | 44,954 | 52,310 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 50,379 | 57,570 | |
Total commercial and industrial | Commercial and business loans | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 200 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 200 | |
Total commercial and industrial | Commercial and business loans | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total commercial and industrial | Commercial and business loans | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total commercial and industrial | Government program loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 13 | |
2020 | 12 | 0 | |
2019 | 0 | 0 | |
Prior | 120 | 119 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 132 | 132 | 221 |
Total commercial and industrial | Government program loans | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 13 | |
2020 | 12 | 0 | |
2019 | 0 | 0 | |
Prior | 120 | 119 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 132 | 132 | |
Total commercial and industrial | Government program loans | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total commercial and industrial | Government program loans | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total commercial and industrial | Government program loans | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total real estate mortgage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | 665,706 | 671,521 | 587,855 |
Total real estate mortgage | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 2,887 | 89,610 | |
2022 | 89,262 | 36,506 | |
2021 | 36,313 | 65,272 | |
2020 | 64,805 | 62,530 | |
2019 | 62,044 | 33,343 | |
Prior | 120,007 | 91,807 | |
Revolving Loans Amortized Cost Basis | 20,351 | 19,047 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 395,669 | 398,115 | 330,870 |
Total real estate mortgage | Commercial real estate | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 2,887 | 89,610 | |
2022 | 89,262 | 36,506 | |
2021 | 36,313 | 60,293 | |
2020 | 59,853 | 54,595 | |
2019 | 54,170 | 32,935 | |
Prior | 110,070 | 82,170 | |
Revolving Loans Amortized Cost Basis | 17,291 | 15,987 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 369,846 | 372,096 | |
Total real estate mortgage | Commercial real estate | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 4,979 | |
2020 | 4,952 | 7,935 | |
2019 | 7,874 | 408 | |
Prior | 9,937 | 9,637 | |
Revolving Loans Amortized Cost Basis | 3,060 | 3,060 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 25,823 | 26,019 | |
Total real estate mortgage | Commercial real estate | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total real estate mortgage | Commercial real estate | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total real estate mortgage | Residential mortgages | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 27,746 | |
2022 | 27,680 | 215,326 | |
2021 | 213,059 | 3,255 | |
2020 | 3,236 | 0 | |
2019 | 0 | 0 | |
Prior | 11,895 | 12,734 | |
Revolving Loans Amortized Cost Basis | 14,121 | 14,296 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 269,991 | 273,357 | 256,911 |
Total real estate mortgage | Residential mortgages | Not graded | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 27,746 | |
2022 | 27,680 | 215,326 | |
2021 | 213,059 | 3,255 | |
2020 | 3,236 | 0 | |
2019 | 0 | 0 | |
Prior | 10,149 | 10,908 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 254,124 | 257,235 | |
Total real estate mortgage | Residential mortgages | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 1,746 | 1,826 | |
Revolving Loans Amortized Cost Basis | 14,121 | 14,296 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 15,867 | 16,122 | |
Total real estate mortgage | Residential mortgages | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | |||
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total real estate mortgage | Residential mortgages | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total real estate mortgage | Residential mortgages | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 46 | 49 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 46 | 49 | 74 |
Total real estate mortgage | Home improvement and home equity loans | Not graded | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 39 | 41 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 39 | 41 | |
Total real estate mortgage | Home improvement and home equity loans | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 7 | 8 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 7 | 8 | |
Total real estate mortgage | Home improvement and home equity loans | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total real estate mortgage | Home improvement and home equity loans | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Total real estate mortgage | Home improvement and home equity loans | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Construction Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 4,842 | |
2020 | 4,606 | 180 | |
2019 | 180 | 824 | |
Prior | 9,732 | 11,971 | |
Revolving Loans Amortized Cost Basis | 122,739 | 135,557 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 137,257 | 153,374 | 152,967 |
Construction Loans | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 4,842 | |
2020 | 4,606 | 180 | |
2019 | 180 | 824 | |
Prior | 4,896 | 6,599 | |
Revolving Loans Amortized Cost Basis | 114,466 | 126,493 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 124,148 | 138,938 | |
Construction Loans | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Construction Loans | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 4,836 | 5,372 | |
Revolving Loans Amortized Cost Basis | 8,273 | 9,064 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 13,109 | 14,436 | |
Construction Loans | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Agricultural | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 7,051 | |
2022 | 0 | 474 | |
2021 | 0 | 3,599 | |
2020 | 589 | 3,777 | |
2019 | 0 | 428 | |
Prior | 515 | 11,679 | |
Revolving Loans Amortized Cost Basis | 790 | 25,714 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 45,513 | 52,722 | 47,795 |
Agricultural | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 7,051 | |
2022 | 6,865 | 474 | |
2021 | 470 | 3,010 | |
2020 | 2,999 | 3,777 | |
2019 | 1,499 | 0 | |
Prior | 11,119 | 11,421 | |
Revolving Loans Amortized Cost Basis | 20,667 | 24,924 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 43,619 | 50,657 | |
Agricultural | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 589 | |
2020 | 589 | 0 | |
2019 | 0 | 428 | |
Prior | 428 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 1,017 | 1,017 | |
Agricultural | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 87 | 258 | |
Revolving Loans Amortized Cost Basis | 790 | 790 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 877 | 1,048 | |
Agricultural | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Installment and student loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 237 | 373 | |
2022 | 337 | 272 | |
2021 | 244 | 196 | |
2020 | 179 | 1,623 | |
2019 | 1,598 | 10,759 | |
Prior | 40,470 | 30,905 | |
Revolving Loans Amortized Cost Basis | 675 | 531 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 43,740 | 44,659 | $ 49,400 |
Installment and student loans | Not graded | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 237 | 373 | |
2022 | 337 | 272 | |
2021 | 244 | 196 | |
2020 | 179 | 1,623 | |
2019 | 1,598 | 10,759 | |
Prior | 40,470 | 30,905 | |
Revolving Loans Amortized Cost Basis | 675 | 531 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 43,740 | 44,659 | |
Installment and student loans | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Installment and student loans | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Installment and student loans | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | 0 | 0 | |
Installment and student loans | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total Loans | $ 0 | $ 0 |
Loans - Allowance for Credit Lo
Loans - Allowance for Credit Losses by Loan Category (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | $ 10,182 | $ 9,333 |
Provision (recapture of provision) for credit losses | (493) | 5 |
Charge-offs | (477) | (358) |
Recoveries | 43 | 296 |
Net recoveries (charge-offs) | (434) | (62) |
Ending balance | 15,622 | 9,276 |
Impact of ASC 326 adoption | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | 6,367 | |
Impact of ASC 326 adoption | Unfunded Loan Commitment | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Ending balance | 805 | |
Total commercial and industrial | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | 955 | 597 |
Provision (recapture of provision) for credit losses | (383) | (306) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 268 |
Net recoveries (charge-offs) | 0 | 268 |
Ending balance | 1,908 | 559 |
Total commercial and industrial | Impact of ASC 326 adoption | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | 1,336 | |
Real Estate Mortgage | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | 1,363 | 1,174 |
Provision (recapture of provision) for credit losses | (37) | 117 |
Charge-offs | 0 | 0 |
Recoveries | 20 | 4 |
Net recoveries (charge-offs) | 20 | 4 |
Ending balance | 3,705 | 1,295 |
Real Estate Mortgage | Impact of ASC 326 adoption | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | 2,359 | |
Real estate construction and development | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | 3,409 | 2,840 |
Provision (recapture of provision) for credit losses | (542) | 57 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net recoveries (charge-offs) | 0 | 0 |
Ending balance | 3,587 | 2,897 |
Real estate construction and development | Impact of ASC 326 adoption | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | 720 | |
Agricultural | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | 525 | 1,233 |
Provision (recapture of provision) for credit losses | (294) | (292) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 16 |
Net recoveries (charge-offs) | 0 | 16 |
Ending balance | 1,256 | 957 |
Agricultural | Impact of ASC 326 adoption | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | 1,025 | |
Installment and Student Loans | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | 3,930 | 3,489 |
Provision (recapture of provision) for credit losses | 763 | 429 |
Charge-offs | (477) | (358) |
Recoveries | 23 | 8 |
Net recoveries (charge-offs) | (454) | (350) |
Ending balance | 5,166 | $ 3,568 |
Installment and Student Loans | Impact of ASC 326 adoption | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance, prior to adoption of ASC 326 | $ 927 |
Loans - Summarized Loan Balance
Loans - Summarized Loan Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Individually Evaluated for Impairment | $ 14,062 | $ 11,945 | |
Loans Collectively Evaluated for Impairment | 928,665 | 865,018 | |
Total Loans | 942,727 | $ 980,178 | 876,963 |
Total commercial and industrial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Individually Evaluated for Impairment | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 50,511 | 38,946 | |
Total Loans | 50,511 | 57,902 | 38,946 |
Total commercial and industrial | Commercial and business loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Individually Evaluated for Impairment | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 50,379 | 38,725 | |
Total Loans | 50,379 | 57,770 | 38,725 |
Total commercial and industrial | Government program loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Individually Evaluated for Impairment | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 132 | 221 | |
Total Loans | 132 | 132 | 221 |
Total real estate mortgage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Individually Evaluated for Impairment | 74 | 145 | |
Loans Collectively Evaluated for Impairment | 665,632 | 587,710 | |
Total Loans | 665,706 | 671,521 | 587,855 |
Total real estate mortgage | Commercial real estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Individually Evaluated for Impairment | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 395,669 | 330,870 | |
Total Loans | 395,669 | 398,115 | 330,870 |
Total real estate mortgage | Residential mortgages | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Individually Evaluated for Impairment | 74 | 145 | |
Loans Collectively Evaluated for Impairment | 269,917 | 256,766 | |
Total Loans | 269,991 | 273,357 | 256,911 |
Total real estate mortgage | Home improvement and home equity loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Individually Evaluated for Impairment | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 46 | 74 | |
Total Loans | 46 | 49 | 74 |
Construction Loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Individually Evaluated for Impairment | 13,109 | 11,147 | |
Loans Collectively Evaluated for Impairment | 124,148 | 141,820 | |
Total Loans | 137,257 | 153,374 | 152,967 |
Agricultural | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Individually Evaluated for Impairment | 879 | 653 | |
Loans Collectively Evaluated for Impairment | 44,634 | 47,142 | |
Total Loans | 45,513 | 52,722 | 47,795 |
Installment and student loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Individually Evaluated for Impairment | 0 | 0 | |
Loans Collectively Evaluated for Impairment | 43,740 | 49,400 | |
Total Loans | $ 43,740 | $ 44,659 | $ 49,400 |
Loans - Schedule of Investment
Loans - Schedule of Investment in Collateral-Dependent Loans By Type of Loan (Details) - Asset Pledged as Collateral loan in Thousands, $ in Thousands | Mar. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | $ | $ 13,900 | $ 14,544 |
Number of Collateral-Dependent Loans | loan | 6 | 6 |
Construction Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | $ | $ 13,110 | $ 14,436 |
Number of Collateral-Dependent Loans | loan | 4 | 4 |
Agricultural | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Loans | $ | $ 790 | $ 108 |
Number of Collateral-Dependent Loans | loan | 2 | 2 |
Loans - Reserve for Unfunded Co
Loans - Reserve for Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Allowance for losses | $ 15,622 | $ 9,276 | $ 10,182 | $ 9,333 | |
Provision for loan, lease, and other losses | 493 | $ (5) | |||
Impact of ASC 326 adoption | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Allowance for losses | $ 6,367 | ||||
Impact of ASC 326 adoption | Unfunded Loan Commitment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Allowance for losses | $ 805 | $ 273 |
Student Loans - Narrative (Deta
Student Loans - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 USD ($) loan | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans | $ 942,727 | $ 876,963 | $ 980,178 | |
Interest receivable | 7,829 | 8,489 | ||
Allowance for losses | 15,622 | 9,276 | 10,182 | $ 9,333 |
Reserve | 927,105 | 969,996 | ||
Reversal of receivable | (12,945) | (9,438) | ||
Write-off's | 477 | 358 | ||
Student loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans | 41,419 | 42,130 | ||
Interest receivable | $ 3,761 | $ 4,082 | ||
Number of Loans | loan | 939 | 972 | ||
Allowance for losses | $ 4,800 | $ 2,600 | ||
Reserve | 382 | $ 252 | ||
Reversal of receivable | 28 | 14 | ||
Write-off's | $ 406 | $ 353 | ||
Student loan | Repayment, Deferment, and Forbearance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | loan | 858 | 875 | ||
Student loan | Repayment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans | $ 21,421 | $ 23,414 | ||
Interest receivable | $ 293 | $ 857 | ||
Number of Loans | loan | 460 | 516 | ||
Student loan | Deferment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans | $ 10,784 | $ 10,974 | ||
Interest receivable | $ 1,964 | $ 1,732 | ||
Number of Loans | loan | 256 | 268 | ||
Student loan | Forbearance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Loans | $ 6,862 | $ 5,019 | ||
Interest receivable | $ 374 | $ 237 | ||
Number of Loans | loan | 142 | 91 |
Student Loans - Credit Quality
Student Loans - Credit Quality Indicators (Details) $ in Thousands | Mar. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Mar. 31, 2022 USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | $ 942,727 | $ 980,178 | $ 876,963 |
Accrued Interest | $ 7,829 | $ 8,489 | |
Student loan | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 939 | 972 | |
Total Loans | $ 41,419 | $ 42,130 | |
Accrued Interest | $ 3,761 | $ 4,082 | |
Student loan | School | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 69 | 70 | |
Total Loans | $ 2,025 | $ 2,056 | |
Accrued Interest | $ 967 | $ 908 | |
Student loan | Grace | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 12 | 27 | |
Total Loans | $ 327 | $ 667 | |
Accrued Interest | $ 163 | $ 348 | |
Student loan | Repayment | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 460 | 516 | |
Total Loans | $ 21,421 | $ 23,414 | |
Accrued Interest | $ 293 | $ 857 | |
Student loan | Deferment | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 256 | 268 | |
Total Loans | $ 10,784 | $ 10,974 | |
Accrued Interest | $ 1,964 | $ 1,732 | |
Student loan | Forbearance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 142 | 91 | |
Total Loans | $ 6,862 | $ 5,019 | |
Accrued Interest | $ 374 | $ 237 |
Student Loans - Summary of the
Student Loans - Summary of the Amortized Cost of Student Loan Aging (Details) $ in Thousands | Mar. 31, 2023 USD ($) borrower | Dec. 31, 2022 USD ($) borrower | Mar. 31, 2022 USD ($) |
Amount | |||
Total Loans | $ 942,727 | $ 980,178 | $ 876,963 |
31 - 60 days | |||
Amount | |||
Total Loans | 3,556 | 554 | |
61 - 90 days | |||
Amount | |||
Total Loans | 571 | 642 | |
Student loan | |||
Amount | |||
Total Loans | $ 41,419 | $ 42,130 | |
Student loan | Repayment and Forbearance | |||
Number of Borrowers | |||
Total | borrower | 256,000 | 268,000 | |
Amount | |||
Total Loans | $ 28,282 | $ 28,433 | |
Student loan | Repayment and Forbearance | Current or less than 31 days | |||
Number of Borrowers | |||
Number of borrowers, current | borrower | 239,000 | 251,000 | |
Amount | |||
Total Loans | $ 26,512 | $ 26,993 | |
Student loan | Repayment and Forbearance | 31 - 60 days | |||
Number of Borrowers | |||
Number of borrowers, past due | borrower | 6,000 | 8,000 | |
Amount | |||
Total Loans | $ 817 | $ 546 | |
Student loan | Repayment and Forbearance | 61 - 90 days | |||
Number of Borrowers | |||
Number of borrowers, past due | borrower | 7,000 | 5,000 | |
Amount | |||
Total Loans | $ 571 | $ 642 | |
Student loan | Repayment and Forbearance | 91 - 120 days | |||
Number of Borrowers | |||
Number of borrowers, past due | borrower | 4,000 | 4,000 | |
Amount | |||
Total Loans | $ 382 | $ 252 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 394,745 | $ 481,629 |
Interest-bearing deposits: | ||
NOW and money market accounts | 528,233 | 499,861 |
Savings accounts | 118,544 | 125,946 |
Time deposits: | ||
Under $250,000 | 52,835 | 42,933 |
$250,000 and over | 16,775 | 15,115 |
Total interest-bearing deposits | 716,387 | 683,855 |
Total deposits | $ 1,111,132 | $ 1,165,484 |
Short-term Borrowings_Other B_3
Short-term Borrowings/Other Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Balance outstanding | $ 13,200 | $ 0 |
Unsecured credit lines: | ||
Short-term Debt [Line Items] | ||
Credit limit | 100,000 | 120,000 |
Federal Home Loan Bank: | ||
Short-term Debt [Line Items] | ||
Credit limit | 2,108 | 2,151 |
Balance outstanding | 0 | 0 |
Collateral pledged | 2,263 | 2,307 |
Federal Reserve Bank: | ||
Short-term Debt [Line Items] | ||
Credit limit | 432,584 | 435,599 |
Balance outstanding | 0 | 0 |
Collateral pledged | $ 579,777 | $ 590,427 |
Leases - Narrative (Details)
Leases - Narrative (Details) - contract | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease, number of contracts | 14 | 13 |
Financing lease, number of contracts | 0 | 0 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 178 | $ 184 |
Variable lease expense | 0 | 0 |
Total | $ 178 | $ 184 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 179 | $ 184 |
Weighted-average remaining lease term in years for operating leases | 4 years 4 months 17 days | 4 years 10 months 20 days |
Weighted-average discount rate for operating leases | 5.12% | 5.13% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 723 | |
2024 | 519 | |
2025 | 335 | |
2026 | 159 | |
2027 | 110 | |
Thereafter | 291 | |
Total undiscounted cash flows | 2,137 | |
Less: present value discount | (222) | |
Present value of net future minimum lease payments | $ 1,915 | $ 2,093 |
Supplemental Cash Flow Disclo_3
Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash paid during the period for: | ||
Interest | $ 1,631 | $ 554 |
Income taxes | 0 | 0 |
Noncash investing activities: | ||
Impact of ASC 326 CECL adoption | 6,367 | 0 |
Unrealized gain on unrecognized post retirement costs, net of tax | 21 | 23 |
Unrealized gain (loss) on available for sale securities, net of tax | 1,325 | (11,689) |
Unrealized gain on junior subordinated debentures, net of tax | 2,947 | 1,302 |
Cash dividend declared | $ 1,880 | $ 1,875 |
Dividends on Common Stock (Deta
Dividends on Common Stock (Details) - USD ($) | 3 Months Ended | |
Mar. 28, 2023 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Dividends declared on common stock (in usd per share) | $ 0.11 | |
Transfer to dividends payable | $ 1,900,000 | |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income | $ 6,125 | $ 2,443 |
Weighted average shares issued (in shares) | 17,076,510 | 17,030,409 |
Add: dilutive effect of stock options (in shares) | 15,950 | 21,410 |
Weighted average shares outstanding adjusted for potential dilution (in shares) | 17,092,460 | 17,051,819 |
Basic earnings per share (in usd per share) | $ 0.36 | $ 0.14 |
Diluted earnings per share (in usd per share) | $ 0.36 | $ 0.14 |
Anti-dilutive stock options excluded from earnings per share calculation (in shares) | 101,000 | 97,000 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets, valuation allowance | $ 0 | $ 0 | |
Provision for taxes on income | $ 2,521,000 | $ 968,000 | |
Effective income tax rate, percent | 29.20% | 28.40% |
Junior Subordinated Debt_Trus_2
Junior Subordinated Debt/Trust Preferred Securities (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Fair value, option, credit risk, gains (losses) on assets | $ (107,000) | $ 303,000 | |
Gain on fair value of financial liability, gross | 333,000 | 1,302,000 | |
Gain on fair value of financial liability, net | 235,000 | 917,000 | |
Gain (loss) on assets before tax | (440,000) | (999,000) | |
Loss on assets net | (310,000) | $ (704,000) | |
Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Amount issued in trust preferred securities | 12,000,000 | $ 12,000,000 | |
Cumulative gain recorded on debt | $ 1,630,000 | ||
Junior Subordinated Debt | Measurement Input, Discount Rate | |||
Debt Instrument [Line Items] | |||
Weighted average inputs (percent) | 0.0622 | ||
Junior Subordinated Debt | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument variable interest rate | 129% |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosure - Summary of Fair Value Estimates (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Investment securities | $ 0 | $ 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | ||
Financial Assets: | ||
Investment securities | 0 | 0 |
Marketable equity securities | 3,358,000 | 3,315,000 |
Loans, net | 0 | 0 |
Financial Liabilities: | ||
Total deposits | 1,041,522,000 | 1,107,436,000 |
Junior subordinated debt | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Financial Assets: | ||
Investment securities | 205,556,000 | 207,545,000 |
Marketable equity securities | 0 | |
Loans, net | 0 | 0 |
Financial Liabilities: | ||
Total deposits | 0 | 0 |
Junior subordinated debt | 0 | 0 |
Significant Unobservable Inputs Level 3 | ||
Financial Assets: | ||
Investment securities | 0 | 0 |
Marketable equity securities | 0 | |
Loans, net | 872,532,000 | 906,050,000 |
Financial Liabilities: | ||
Total deposits | 68,841,000 | 57,056,000 |
Junior subordinated debt | 11,017,000 | 10,883,000 |
Carrying Amount | ||
Financial Assets: | ||
Investment securities | 205,556,000 | 207,545,000 |
Marketable equity securities | 3,358,000 | 3,315,000 |
Loans, net | 927,105,000 | 969,996,000 |
Financial Liabilities: | ||
Total deposits | 1,111,132,000 | 1,165,484,000 |
Junior subordinated debt | 11,017,000 | 10,883,000 |
Estimated Fair Value | ||
Financial Assets: | ||
Investment securities | 205,556,000 | 207,545,000 |
Marketable equity securities | 3,358,000 | 3,315,000 |
Loans, net | 872,532,000 | 906,050,000 |
Financial Liabilities: | ||
Total deposits | 1,110,363,000 | 1,164,492,000 |
Junior subordinated debt | $ 11,017,000 | $ 10,883,000 |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosure - Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
AFS Securities: | ||
Total AFS securities | $ 205,556 | $ 207,545 |
Marketable equity securities | 3,358 | 3,315 |
U.S. Government agencies | ||
AFS Securities: | ||
Total AFS securities | 7,433 | 8,231 |
U.S. Government collateralized mortgage obligations | ||
AFS Securities: | ||
Total AFS securities | 95,803 | 97,218 |
Municipal bonds | ||
AFS Securities: | ||
Total AFS securities | 41,477 | 40,170 |
U.S. Treasury securities | ||
AFS Securities: | ||
Total AFS securities | 29,424 | 29,224 |
Corporate bonds | ||
AFS Securities: | ||
Total AFS securities | 31,419 | 32,702 |
Fair value, measurements, recurring | ||
AFS Securities: | ||
Total AFS securities | 205,556 | 207,545 |
Marketable equity securities | 3,358 | 3,315 |
Total | 208,914 | 210,860 |
Liabilities: | ||
Junior subordinated debt | 11,017 | 10,883 |
Total | 11,017 | 10,883 |
Fair value, measurements, recurring | U.S. Government agencies | ||
AFS Securities: | ||
Total AFS securities | 7,433 | 8,231 |
Fair value, measurements, recurring | U.S. Government collateralized mortgage obligations | ||
AFS Securities: | ||
Total AFS securities | 95,803 | 97,218 |
Fair value, measurements, recurring | Municipal bonds | ||
AFS Securities: | ||
Total AFS securities | 41,477 | 40,170 |
Fair value, measurements, recurring | U.S. Treasury securities | ||
AFS Securities: | ||
Total AFS securities | 29,424 | 29,224 |
Fair value, measurements, recurring | Corporate bonds | ||
AFS Securities: | ||
Total AFS securities | 31,419 | 32,702 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
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 | 3,358 | 3,315 |
Total | 3,358 | 3,315 |
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 | 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) | ||
Liabilities: | ||
Junior subordinated debt | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | ||
AFS Securities: | ||
Total AFS securities | 205,556 | 207,545 |
Marketable equity securities | 0 | 0 |
Total | 205,556 | 207,545 |
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 | 7,433 | 8,231 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | U.S. Government collateralized mortgage obligations | ||
AFS Securities: | ||
Total AFS securities | 95,803 | 97,218 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | Municipal bonds | ||
AFS Securities: | ||
Total AFS securities | 41,477 | 40,170 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | U.S. Treasury securities | ||
AFS Securities: | ||
Total AFS securities | 29,424 | 29,224 |
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring | Corporate bonds | ||
AFS Securities: | ||
Total AFS securities | 31,419 | 32,702 |
Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Junior subordinated debt | 11,017 | 10,883 |
Significant Unobservable Inputs (Level 3) | Fair value, measurements, recurring | ||
AFS Securities: | ||
Total AFS securities | 0 | 0 |
Marketable equity securities | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Junior subordinated debt | 11,017 | 10,883 |
Total | 11,017 | 10,883 |
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 | 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 - Company's Assets Measured at Fair Value On a Recurring Basis (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
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) | 0.0622 | 0.0663 |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosure - Reconciliation of Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Junior Subordinated Debt: | ||
Gross (gain) loss related to changes in instrument specific credit risk | $ 107 | $ (303) |
Junior Subordinated Debt | ||
Junior Subordinated Debt: | ||
Beginning balance | 10,883 | 11,189 |
Gross (gain) loss included in earnings | (333) | 999 |
Gross (gain) loss related to changes in instrument specific credit risk | 440 | (1,302) |
Change in accrued interest | 27 | 1 |
Ending balance | 11,017 | 10,887 |
The amount of total (gain) 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 | $ (333) | $ 999 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 4,488 | $ 4,488 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | |||||||
AOCI Attributable, Net of Tax [Roll Forward] | ||||||||||||
Beginning balance | $ 112,463 | [1] | $ 107,078 | [2] | $ 110,000 | [3] | $ 113,575 | [4] | $ 120,207 | [5] | $ 120,207 | [5] |
Current period comprehensive income (loss), net of tax | 639 | 1,816 | (5,601) | (5,235) | (7,301) | |||||||
Ending balance | 112,908 | [6] | 112,463 | [1] | 107,078 | [2] | 110,000 | [3] | 113,575 | [4] | 112,463 | [1] |
Net unrealized (loss) on available for sale securities | ||||||||||||
AOCI Attributable, Net of Tax [Roll Forward] | ||||||||||||
Beginning balance | (19,066) | (236) | (236) | |||||||||
Current period comprehensive income (loss), net of tax | 933 | (18,830) | ||||||||||
Ending balance | (18,133) | (19,066) | (19,066) | |||||||||
Unfunded status of the supplemental retirement plans | ||||||||||||
AOCI Attributable, Net of Tax [Roll Forward] | ||||||||||||
Beginning balance | (194) | (627) | (627) | |||||||||
Current period comprehensive income (loss), net of tax | 16 | 433 | ||||||||||
Ending balance | (178) | (194) | (194) | |||||||||
Net unrealized (loss) gain on junior subordinated debentures | ||||||||||||
AOCI Attributable, Net of Tax [Roll Forward] | ||||||||||||
Beginning balance | 1,765 | (311) | (311) | |||||||||
Current period comprehensive income (loss), net of tax | (310) | 2,076 | ||||||||||
Ending balance | 1,455 | 1,765 | 1,765 | |||||||||
Accumulated other comprehensive loss | ||||||||||||
AOCI Attributable, Net of Tax [Roll Forward] | ||||||||||||
Beginning balance | (17,495) | [1] | (19,311) | [2] | (13,710) | [3] | (8,475) | [4] | (1,174) | [5] | (1,174) | [5] |
Current period comprehensive income (loss), net of tax | 639 | 1,816 | (5,601) | (5,235) | (7,301) | |||||||
Ending balance | $ (16,856) | [6] | $ (17,495) | [1] | $ (19,311) | [2] | $ (13,710) | [3] | $ (8,475) | [4] | $ (17,495) | [1] |
[1](5) Excludes 29,449 unvested restricted shares[2](4) Excludes 26,949 unvested restricted shares[3](3) Excludes 26,949 unvested restricted shares[4](2) Excludes 27,949 unvested restricted shares[5](1) Excludes 41,424 unvested restricted shares[6](6) Excludes 13,974 unvested restricted shares |
Investment in York Monterey P_2
Investment in York Monterey Properties (Details) - York Monterey Properties Inc - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Real Estate Properties [Line Items] | ||
Investment in bank subsidiary | $ 5.2 | $ 5.2 |
Other real estate owned | ||
Real Estate Properties [Line Items] | ||
Investment in bank subsidiary | $ 4.6 | $ 4.6 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
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 | $ 214,725 | $ 190,183 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Fair value, concentration of risk, commitments | $ 1,570 | $ 1,570 |