COVER
COVER - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 06, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-51338 | |
Entity Registrant Name | PARKE BANCORP, INC. | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 65-1241959 | |
Entity Address, Address Line One | 601 Delsea Drive | |
Entity Address, City or Town | Washington Township | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08080 | |
City Area Code | 856 | |
Local Phone Number | 256-2500 | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Trading Symbol | PKBK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 11,946,671 | |
Entity Central Index Key | 0001315399 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 10,669 | $ 27,165 |
Interest bearing deposits with banks | 116,071 | 154,985 |
Cash and cash equivalents | 126,740 | 182,150 |
Investment securities available for sale, at fair value | 7,271 | 9,366 |
Investment securities held to maturity (fair value of $7,285 at September 30, 2023 and $7,805 at December 31, 2022) | 9,319 | 9,378 |
Total investment securities | 16,590 | 18,744 |
Loans, net of unearned income | 1,800,023 | 1,751,459 |
Less: Allowance for credit losses | (32,319) | (31,845) |
Net loans | 1,767,704 | 1,719,614 |
Accrued interest receivable | 8,267 | 8,768 |
Premises and equipment, net | 5,665 | 5,958 |
Restricted stock | 7,025 | 5,439 |
Bank owned life insurance (BOLI) | 28,587 | 28,144 |
Deferred tax asset | 9,940 | 9,184 |
Other real estate owned (OREO) | 1,550 | 1,550 |
Other | 11,604 | 5,364 |
Total assets | 1,983,672 | 1,984,915 |
Deposits | ||
Noninterest-bearing deposits | 231,116 | 352,546 |
Interest-bearing deposits | 1,301,865 | 1,223,435 |
Total deposits | 1,532,981 | 1,575,981 |
FHLBNY borrowings | 111,150 | 83,150 |
Subordinated debentures | 43,063 | 42,921 |
Accrued interest payable | 3,843 | 2,664 |
Other | 14,656 | 14,165 |
Total liabilities | 1,705,693 | 1,718,881 |
Shareholders' Equity | ||
Preferred stock, 1,000,000 shares authorized, $1,000 liquidation value Series B non-cumulative convertible; 445 shares outstanding at September 30, 2023 and December 31, 2022 | 445 | 445 |
Common stock, $0.10 par value; authorized 15,000,000 shares; Issued: 12,231,193 shares and 12,225,097 shares at September 30, 2023 and December 31, 2022, respectively | 1,223 | 1,223 |
Additional paid-in capital | 136,547 | 136,201 |
Retained earnings | 143,422 | 131,706 |
Accumulated other comprehensive loss | (643) | (526) |
Treasury stock, 284,522 shares at September 30, 2023 and December 31, 2022, at cost | (3,015) | (3,015) |
Total shareholders’ equity | 277,979 | 266,034 |
Total liabilities and shareholders' equity | $ 1,983,672 | $ 1,984,915 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity, fair value | $ 7,285 | $ 7,805 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, liquidation value per share (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, outstanding (in shares) | 445 | 445 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 12,231,193 | 12,225,097 |
Treasury stock, shares (in shares) | 284,522 | 284,522 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income: | ||||
Interest and fees on loans | $ 27,294 | $ 20,854 | $ 77,602 | $ 59,511 |
Interest and dividends on investments | 308 | 194 | 745 | 565 |
Interest on deposits with banks | 1,512 | 1,290 | 4,059 | 2,404 |
Total interest income | 29,114 | 22,338 | 82,406 | 62,480 |
Interest expense: | ||||
Interest on deposits | 11,385 | 2,284 | 28,046 | 5,893 |
Interest on borrowings | 2,046 | 758 | 5,661 | 2,176 |
Total interest expense | 13,431 | 3,042 | 33,707 | 8,069 |
Net interest income | 15,683 | 19,296 | 48,699 | 54,411 |
Provision for (recovery of) credit losses | 300 | 600 | (1,600) | 950 |
Net interest income after provision for (recovery of) credit losses | 15,383 | 18,696 | 50,299 | 53,461 |
Non-interest income | ||||
Service fees on deposit accounts | 1,003 | 1,133 | 3,149 | 3,762 |
Gain on sale of SBA loans | 0 | 76 | 0 | 98 |
Other loan fees | 192 | 422 | 611 | 1,138 |
Bank owned life insurance income | 153 | 144 | 443 | 424 |
Net gain on sale and valuation adjustment of OREO | 38 | 0 | 38 | 328 |
Other | 449 | 253 | 972 | 827 |
Total non-interest income | 1,835 | 2,028 | 5,213 | 6,577 |
Non-interest expense | ||||
Compensation and benefits | 2,834 | 2,819 | 9,414 | 7,964 |
Professional services | 659 | 578 | 1,746 | 1,670 |
Occupancy and equipment | 649 | 621 | 1,938 | 1,891 |
Data processing | 368 | 348 | 1,037 | 985 |
FDIC insurance and other assessments | 388 | 265 | 960 | 811 |
OREO expense | 240 | 314 | 610 | 404 |
Other operating expense | 10,711 | 1,347 | 13,276 | 3,957 |
Total non-interest expense | 15,849 | 6,292 | 28,981 | 17,682 |
Income before income tax expense | 1,369 | 14,432 | 26,531 | 42,356 |
Income tax expense | 340 | 3,892 | 6,242 | 10,987 |
Net income attributable to Company | 1,029 | 10,540 | 20,289 | 31,369 |
Less: Preferred stock dividend | (7) | (7) | (20) | (20) |
Net income available to common shareholders | $ 1,022 | $ 10,533 | $ 20,269 | $ 31,349 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.09 | $ 0.88 | $ 1.70 | $ 2.63 |
Diluted (in dollars per share) | $ 0.08 | $ 0.87 | $ 1.67 | $ 2.58 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 11,945,844 | 11,919,472 | 11,945,144 | 11,913,085 |
Diluted (in shares) | 12,131,825 | 12,170,144 | 12,137,208 | 12,178,572 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to the Company | $ 1,029 | $ 10,540 | $ 20,289 | $ 31,369 |
Unrealized loss on investment securities | (179) | (478) | (157) | (1,161) |
Tax impact on unrealized loss | 46 | 123 | 40 | 299 |
Total unrealized loss on investment securities | (133) | (355) | (117) | (862) |
Comprehensive income attributable to the Company | $ 896 | $ 10,185 | $ 20,172 | $ 30,507 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | |
Beginning balance at Dec. 31, 2021 | $ 232,361 | $ 445 | $ 1,218 | $ 135,451 | $ 98,017 | $ 245 | $ (3,015) | |||
Beginning balance (in shares) at Dec. 31, 2021 | 12,182,081 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to the Company | 31,369 | 31,369 | ||||||||
Common stock options exercised (in shares) | 25,016 | |||||||||
Common stock options exercised | 185 | $ 3 | 182 | |||||||
Other comprehensive loss | (862) | (862) | ||||||||
Stock compensation expense | 252 | 252 | ||||||||
Dividend on preferred stock | [1] | (20) | (20) | |||||||
Dividend on common stock | [2] | (5,957) | (5,957) | |||||||
Ending balance at Sep. 30, 2022 | 257,328 | 445 | $ 1,221 | 135,885 | 123,409 | (617) | (3,015) | |||
Ending balance (in shares) at Sep. 30, 2022 | 12,207,097 | |||||||||
Beginning balance at Jun. 30, 2022 | 249,117 | 445 | $ 1,220 | 135,709 | 115,020 | (262) | (3,015) | |||
Beginning balance (in shares) at Jun. 30, 2022 | 12,199,483 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to the Company | 10,540 | 10,540 | ||||||||
Common stock options exercised (in shares) | 7,614 | |||||||||
Common stock options exercised | 60 | $ 1 | 59 | |||||||
Other comprehensive loss | (355) | (355) | ||||||||
Stock compensation expense | 117 | 117 | ||||||||
Dividend on preferred stock | [1] | (7) | (7) | |||||||
Dividend on common stock | [2] | (2,144) | (2,144) | |||||||
Ending balance at Sep. 30, 2022 | 257,328 | 445 | $ 1,221 | 135,885 | 123,409 | (617) | (3,015) | |||
Ending balance (in shares) at Sep. 30, 2022 | 12,207,097 | |||||||||
Beginning balance at Dec. 31, 2022 | 266,034 | $ (2,102) | 445 | $ 1,223 | 136,201 | 131,706 | $ (2,102) | (526) | (3,015) | |
Beginning balance (in shares) at Dec. 31, 2022 | 12,225,097 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to the Company | 20,289 | 20,289 | ||||||||
Common stock options exercised (in shares) | 6,096 | |||||||||
Common stock options exercised | 33 | 33 | ||||||||
Other comprehensive loss | (117) | (117) | ||||||||
Stock compensation expense | 313 | 313 | ||||||||
Dividend on preferred stock | [3] | (20) | (20) | |||||||
Dividend on common stock | [4] | (6,451) | (6,451) | |||||||
Ending balance at Sep. 30, 2023 | $ 277,979 | 445 | $ 1,223 | 136,547 | 143,422 | (643) | (3,015) | |||
Ending balance (in shares) at Sep. 30, 2023 | 12,231,193 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 | |||||||||
Beginning balance at Jun. 30, 2023 | $ 279,140 | 445 | $ 1,223 | 136,447 | 144,550 | (510) | (3,015) | |||
Beginning balance (in shares) at Jun. 30, 2023 | 12,231,193 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to the Company | 1,029 | 1,029 | ||||||||
Other comprehensive loss | (133) | (133) | ||||||||
Stock compensation expense | 100 | 100 | ||||||||
Dividend on preferred stock | [3] | (7) | (7) | |||||||
Dividend on common stock | [4] | (2,150) | (2,150) | |||||||
Ending balance at Sep. 30, 2023 | $ 277,979 | $ 445 | $ 1,223 | $ 136,547 | $ 143,422 | $ (643) | $ (3,015) | |||
Ending balance (in shares) at Sep. 30, 2023 | 12,231,193 | |||||||||
[1]Dividends per share of $15.00 and $45.00, respectively, were declared on series B preferred stock for the three and nine months ended September 30, 2022.[2]Dividends per share of $0.18 and $0.50, respectively, were declared on common stock outstanding for the three and nine months ended September 30, 2022.[3]Dividends per share of $15.00 and $45.00, respectively, were declared on series B preferred stock for the three and nine months ended September 30, 2023.[4]Dividends per share of $0.18 and $0.54, respectively, were declared on common stock outstanding for the three and nine months ended September 30, 2023. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Common Stock | ||||
Common stock, dividends, declared (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.54 | $ 0.50 |
Series B Preferred Stock | ||||
Preferred stock, dividends declared (in dollars per share) | $ 15 | $ 15 | $ 45 | $ 45 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net income attributable to the Company | $ 20,289 | $ 31,369 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 319 | 487 |
(Recovery of) provision for credit losses | (1,600) | 950 |
Increase in value of bank owned life insurance | (443) | (424) |
Gain on sale of SBA loans | 0 | (98) |
SBA loans originated for sale | 0 | (1,723) |
Proceeds from sale of SBA loans originated for sale | 0 | 1,821 |
Net gain on sale of OREO and valuation adjustments | (38) | (328) |
Net accretion of purchase premiums and discounts on securities | (28) | (4) |
Stock based compensation | 313 | 252 |
Net changes in: | ||
(Increase) decrease in accrued interest receivable and other assets | (5,738) | 226 |
Increase in accrued interest payable and other accrued liabilities | 910 | 1,769 |
Net cash provided by operating activities | 13,984 | 34,297 |
Cash Flows from Investing Activities: | ||
Repayments and maturities of investment securities available for sale | 1,919 | 2,367 |
Repayments and maturities of investment securities held to maturity | 105 | 380 |
Net increase in loans | (48,671) | (196,324) |
Sales (purchases) of bank premises and equipment | 116 | |
Sales (purchases) of bank premises and equipment | (88) | |
Proceeds from sale of OREO, net | 161 | 1,887 |
Redemptions of restricted stock | 6,480 | 237 |
Purchases of restricted stock | (8,066) | (82) |
Net cash used in investing activities | (47,956) | (191,623) |
Cash Flows from Financing Activities: | ||
Cash dividends | (6,471) | (7,887) |
Proceeds from exercise of stock options | 33 | 185 |
Increase in FHLBNY long-term borrowings | 20,000 | 0 |
Net increase (decrease) in FHLBNY short-term borrowings | (5,000) | |
Net increase (decrease) in FHLBNY short-term borrowings | 8,000 | |
Net decrease in noninterest-bearing deposits | (121,430) | (159,957) |
Net increase (decrease) in interest-bearing deposits | 78,430 | (73,224) |
Net cash used in financing activities | (21,438) | (245,883) |
Net decrease in cash and cash equivalents | (55,410) | (403,209) |
Cash and Cash Equivalents, January 1, | 182,150 | 596,553 |
Cash and Cash Equivalents, September 30, | 126,740 | 193,344 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid | 32,528 | 8,590 |
Income taxes paid | 13,293 | 9,638 |
Non-cash Investing and Financing Items | ||
Loans transferred to OREO | 123 | 2,008 |
Accrued dividends payable | $ 2,157 | $ 2,151 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Parke Bancorp, Inc. (the “Company, we, us, our”) is a bank holding company headquartered in Sewell, New Jersey. Through subsidiaries, the Company provides individuals, corporations and other businesses and institutions with commercial and retail banking services, principally loans and deposits. The Company was incorporated in January 2005 under the laws of the State of New Jersey for the sole purpose of becoming the holding company of Parke Bank (the "Bank"). The Bank is a commercial bank, which was incorporated on August 25, 1998, and commenced operations on January 28, 1999. The Bank is chartered by the New Jersey Department of Banking and Insurance and its deposits are insured by the Federal Deposit Insurance Corporation. The Bank maintains its principal office at 601 Delsea Drive, Sewell, New Jersey, and has six additional branch office locations; 501 Tilton Road, Northfield, New Jersey, 567 Egg Harbor Road, Washington Township, New Jersey, 67 East Jimmie Leeds Road, Galloway Township, New Jersey, 1150 Haddon Avenue, Collingswood, New Jersey, 1610 Spruce Street, Philadelphia, Pennsylvania, and 1032 Arch Street, Philadelphia, Pennsylvania. The Bank also has a loan office located at 1817 East Venango Street, Philadelphia, Pennsylvania. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Financial Statement Presentation: We prepared our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Parke Bank (including certain partnership interests). Parke Capital Trust I, Parke Capital Trust II and Parke Capital Trust III are wholly-owned subsidiaries but are not consolidated as they do not meet the requirements for consolidation under applicable accounting guidance. We have eliminated inter-company balances and transactions. We have also reclassified certain prior year amounts to conform to the current year presentation, which did not have a material impact on our consolidated financial condition or results of operations. The accompanying interim financial statements should be read in conjunction with the annual financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying interim financial statements for the three and nine months ended September 30, 2023 and 2022 are unaudited. The balance sheet as of December 31, 2022, was derived from the audited financial statements. In the opinion of management, these financial statements include all normal and recurring adjustments necessary for a fair statement of the results for such interim periods. Results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results for the full year or any other period. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the allowance for credit losses, the valuation of deferred income taxes, and the carrying value of other real estate owned ("OREO"). Allowance for Credit Losses on Loans and Leases The allowance for credit losses on loans and leases is a valuation account that is deducted from the loan or lease’s amortized cost basis to present the net amount expected to be collected on the loans and leases. Loans and leases deemed to be uncollectible are charged against the allowance for credit losses on loans and leases, and subsequent recoveries, if any, are credited to the allowance for credit losses on loans and leases. Changes to the allowance for credit losses on loans and leases are recorded through the provision for credit losses. The allowance for credit losses on loans and leases is maintained at a level considered appropriate to absorb expected credit losses over the expected life of the portfolio as of the reporting date. The allowance for credit losses on loans and leases is measured on a collective (pool) basis when similar risk characteristics exist. Parke's loan portfolio segments include commercial and industrial, construction, commercial - owner occupied, commercial - non-owner occupied, residential - 1 to 4 family, residential - 1 to 4 family investment, residential - multifamily, and consumer. Loans that do not share similar risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. For individually assessed loans, see related details in the Individually Assessed Loans section below. The allowance for credit losses on collectively assessed loans and leases is measured over the expected life of the loan or lease using a vintage loss rate approach, which will then be supplemented with qualitative factors. The vintage loss rate approach creates pools of loans (made up of individual loans) based on the loan segmentation. The loan pools are aggregated by origination year. Charge-offs, net of recoveries, are allocated by the year of charge-off to each loan pool. An average life is prescribed to a pool of loans that were originated in a particular year. The actual charge-offs as a percent of total loans are calculated for each historical year, and projected for future years for each year within the average life time horizon. The sum of the actual charge-offs and projected charge-offs are divided by the average amortized origination amount for each respective year. Those charge-off percentages are added together to obtain an aggregated vintage loss percentage which is then multiplied by the outstanding loan balances to obtain a reserve requirement. Parke runs the Current Expected Credit Loss ("CECL") impairment models on a quarterly basis and qualitatively adjusts model results for risk factors that are not considered within the model but which are relevant in assessing the expected credit losses within the loan and lease pools. Management generally considers the following qualitative factors: •Volume and severity of past-due loans, non-accrual loans and classified loans; •Lending policies and procedures, including underwriting standards and historically based loss/collection, charge-off and recovery practices; • National and economic conditions that may have an impact on credit quality; •Nature and volume of the portfolio; •Existence and effect of any credit concentrations and changes in the level of such concentrations; •The value of the underlying collateral for loans that are not collateral dependent; •Changes in the quality of the loan review system; and •Experience, ability and depth of lending management and staff Parke has elected to not estimate an allowance for credit losses on accrued interest receivable, as it already has a policy in place to reverse or write-off accrued interest, through interest income, in a timely manner. Allowance for Credit Losses on Lending-Related Commitments Parke estimates expected credit losses over the contractual period in which it is exposed to credit risk on contractual obligations to extend credit, unless the obligation is unconditionally cancellable by the Company. The allowance for credit losses on lending-related commitments is recorded in other liabilities in the consolidated balance sheet and is recorded as a provision for credit losses in the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated lives. The lifetime loss rates for off-balance sheet credit exposures are calculated in the same manner as on-balance sheet credit exposures, using the same model and economic forecasts, adjusted for the estimated likelihood that funding will occur. Individually Assessed Loans and Leases ASC 326 provides that a loan or lease is measured individually if it does not share similar risk characteristics with other financial assets. For Parke, loans and leases which are identified to be individually assessed under CECL typically are those that are on non-accrual at the reporting date, and include collateral dependent loans. Collateral Dependent Loans Parke considers a loan to be collateral dependent when foreclosure of the underlying collateral is probable. Parke has also elected to apply the practical expedient to measure expected credit losses of a collateral dependent asset using the fair value of the collateral, less any estimated costs to sell, when foreclosure is not probable but repayment of the loan is expected to be provided substantially through the operation or sale of the collateral, and the borrower is experiencing financial difficulty. Allowance for Credit Losses on Held to Maturity Securities We follow Accounting Standards Codification (ASC) 326-20, Financial Instruments - Credit Loss - Measured at Amortized Cost, to measure expected credit losses on held-to-maturity debt securities on a collective basis by security investment grade. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company classifies the held-to-maturity debt securities into the following major security types: residential mortgage backed, and state and political subdivisions. These securities are highly rated with a history of no credit losses, and are assigned ratings based on the most recent data from ratings agencies depending on the availability of data for the security. Credit ratings of held-to-maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis. Based on the credit ratings of our held-to-maturity securities and our historical experience including no losses, we have determined that an allowance for credit loss on the held-to-maturity portfolio is not required Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses and is included in Accrued interest receivable on the Consolidated Statements of Financial Condition. Allowance for Credit Losses on Available for Sale Securities We follow ASC 326-30, Financial Instruments - Credit Loss - Available-for-Sale Debt Securities, which provides guidance related to the recognition of and expanded disclosure requirements for expected credit losses on available-for-sale debt securities. For available-for-sale debt securities in an unrealized loss position, the Company first evaluates whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is reduced to fair value and recognized as a reduction to non-interest income in the Consolidated Statements of Income. For debt securities available-for-sale which the Company does not intend to sell, or it is not likely the security would be required to be sold before recovery, we evaluate whether a decline in fair value has resulted from credit losses or other adverse factors, such as a change in the security's credit rating. In assessing whether a credit loss exists, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. 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 is recorded, limited to the fair value of the security. Recently Issued Accounting Pronouncements: In March 2020, the FASB issued ASU No. 2020.-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide optional guidance to entities for a limited period of time to ease the transition in accounting for and recognizing the effects of reference rate reform on financial reporting. Under the guidance, modifications of contracts due to reference rate reform will not require contract remeasurement or reassessment of a previous accounting determination. For hedge accounting, modification of critical terms of the hedge due to changes in reference rate reform will not affect hedge accounting or de-designate the hedging relationship. The guidance also provides specific expedients for fair value hedges, cash flow hedges, and excluded components. Further, the guidance provides a one-time election to sell or transfer held to maturity debt securities that are affected by the reference rate change. The guidance is effective upon issuance through December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the sunset (or expiration) date of Accounting Standards Codification (ASC) Topic 848 to December 31, 2024. This gives reporting entities two additional years to apply the accounting relief provided under ASC Topic 848 for matters related to reference rate reform. ASU 2022-06 is effective for all reporting entities immediately upon issuance and must be applied on a prospective basis. The Company does not expect the application of this guidance to have a material impact on the Consolidated Financial Statements. Accounting Pronouncements Adopted in 2023 In June 2016, the Financial Accounting Standard Board (FASB) issued accounting standards update ("ASU") 2016-13, Financial Instruments-Credit Losses. ASU 2016-13 (Topic 326) , replaces the incurred loss impairment methodology in current GAAP with a CECL methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. The ASU was amended in some aspects by subsequent Accounting Standards Updates. This guidance became effective on January 1, 2023 for the Company. Results and disclosures for 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 Company adopted this guidance, and subsequent related updates, using the modified retrospective approach for all financial assets measured at amortized cost, including loans and held-to-maturity debt securities, and unfunded commitments. On January 1, 2023, the Company recorded a cumulative effect decrease to retained earnings of $2.1 million, net of tax, of which $1.9 million related to loans, and $960.0 thousand related to unfunded commitments. There were no such charges for securities held by the Company at the date of adoption. The following table illustrates the impact of adopting ASC 326: (Amounts in thousands) January 1, 2023 Assets Pre-adoption Adoption Impact As Reported ACL on loans Commercial and Industrial $ 390 $ 168 $ 558 Construction 2,581 1,899 4,480 Commercial - Owner Occupied 2,298 (171) 2,127 Commercial - Non-owner Occupied 9,709 (951) 8,758 Residential - 1 to 4 Family 6,076 1,782 7,858 Residential - 1 to 4 Family Investment 9,381 (794) 8,587 Residential - Multifamily 1,347 (128) 1,219 Consumer 63 53 116 Total ACL on loans 31,845 1,858 33,703 Deferred Tax Assets 9,184 716 9,900 Liabilities ACL for unfunded commitments — 960 960 Equity Retained Earnings $ 131,706 $ (2,102) $ 129,604 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The following is a summary of the Company's investments in available for sale and held to maturity securities as of September 30, 2023 and December 31, 2022: As of September 30, 2023 Amortized Gross Gross Fair value (Dollars in thousands) Available for sale: Residential mortgage-backed securities $ 8,137 $ — $ 866 $ 7,271 Total available for sale $ 8,137 $ — $ 866 $ 7,271 Held to maturity: Residential mortgage-backed securities $ 5,449 $ — $ 1,388 $ 4,061 States and political subdivisions 3,870 — 646 3,224 Total held to maturity $ 9,319 $ — $ 2,034 $ 7,285 As of December 31, 2022 Amortized Gross Gross Fair value (Dollars in thousands) Available for sale: Corporate debt obligations $ 500 $ — $ — $ 500 Residential mortgage-backed securities 9,575 3 712 8,866 Total available for sale $ 10,075 $ 3 $ 712 $ 9,366 Held to maturity: Residential mortgage-backed securities $ 5,556 $ — $ 1,096 $ 4,460 States and political subdivisions 3,822 56 533 3,345 Total held to maturity $ 9,378 $ 56 $ 1,629 $ 7,805 The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity as of September 30, 2023 are as follows: Amortized Fair (Dollars in thousands) Available for sale: Due within one year $ — $ — Due after one year through five years 2,809 2,566 Due after five years through ten years 1,541 1,396 Due after ten years 3,787 3,309 Total available for sale $ 8,137 $ 7,271 Held to maturity: Due within one year $ — $ — Due after one year through five years 1,395 1,385 Due after five years through ten years — — Due after ten years 7,924 5,900 Total held to maturity $ 9,319 $ 7,285 Expected maturities may differ from contractual maturities because the issuers of certain debt securities do have the right to call or prepay their obligations without any penalty. The Company did not sell any securities during the three and nine months ended September 30, 2023. The following tables show the gross unrealized losses and fair value of the Company's investments for which an allowance for credit losses has not been recorded, which are aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2023 and December 31, 2022: As of September 30, 2023 Less Than 12 Months 12 Months or Greater Total Description of Securities Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousand) Available for sale: Residential mortgage-backed securities $ 230 $ 4 $ 7,041 $ 862 $ 7,271 $ 866 Total available for sale $ 230 $ 4 $ 7,041 $ 862 $ 7,271 $ 866 Held to maturity: Residential mortgage-backed securities $ — $ — $ 4,061 $ 1,388 $ 4,061 $ 1,388 States and political subdivisions — — 3,224 646 3,224 646 Total held to maturity $ — $ — $ 7,285 $ 2,034 $ 7,285 $ 2,034 As of December 31, 2022 Less Than 12 Months 12 Months or Greater Total Description of Securities Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Available for sale: Residential mortgage-backed securities $ 7,579 $ 576 $ 1,043 $ 136 $ 8,622 $ 712 Total available for sale $ 7,579 $ 576 $ 1,043 $ 136 $ 8,622 $ 712 Held to maturity: Residential mortgage-backed securities $ — $ — $ 4,460 $ 1,096 $ 4,460 $ 1,096 States and political subdivisions — — 1,943 533 1,943 533 Total held to maturity $ — $ — $ 6,403 $ 1,629 $ 6,403 $ 1,629 The Company’s unrealized loss for the debt securities is comprised of 16 securities in the less than 12 months loss position and 19 securities in the 12 months or greater loss position at September 30, 2023. The mortgage-backed securities that had unrealized losses were issued or guaranteed by the US government or US government sponsored entities. The unrealized losses associated with those mortgage-backed securities are generally driven by changes in interest rates and are not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. The states and political subdivisions securities that had unrealized losses were issued by a school district, and the loss is attributed to changes in interest rates and not due to credit losses. Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, the Company does not consider the unrealized loss in these securities to be credit losses at September 30, 2023. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS | LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANSAt September 30, 2023 and December 31, 2022, the Company had $1.80 billion and $1.75 billion, respectively, in loans receivable outstanding. Outstanding balances include $2.2 million and $1.9 million at September 30, 2023 and December 31, 2022, respectively, for net deferred loan costs, and unamortized discounts. The portfolio segments of loans receivable at September 30, 2023 and December 31, 2022, consist of the following: September 30, 2023 December 31, 2022 (Dollars in thousands) Commercial and Industrial $ 31,968 $ 32,383 Construction 150,823 192,357 Real Estate Mortgage: Commercial – Owner Occupied 143,237 125,950 Commercial – Non-owner Occupied 384,222 377,452 Residential – 1 to 4 Family 461,070 444,820 Residential – 1 to 4 Family Investment 500,076 476,210 Residential – Multifamily 122,702 95,556 Consumer 5,925 6,731 Total Loan receivable 1,800,023 1,751,459 Allowance for credit losses on loans (32,319) (31,845) Total loan receivable, net of allowance for credit losses on loans $ 1,767,704 $ 1,719,614 An age analysis of past due loans by class at September 30, 2023 and December 31, 2022 is as follows: September 30, 2023 30-59 60-89 Greater Total Past Current Total (Dollars in Thousands) Commercial and Industrial $ — $ — $ 468 $ 468 $ 31,500 $ 31,968 Construction — — 1,091 1,091 149,732 150,823 Real Estate Mortgage: Commercial – Owner Occupied — — 1,117 1,117 142,120 143,237 Commercial – Non-owner Occupied — 2,678 17,062 19,740 364,482 384,222 Residential – 1 to 4 Family 186 1,290 — 1,476 459,594 461,070 Residential – 1 to 4 Family Investment — 349 — 349 499,727 500,076 Residential – Multifamily — — — — 122,702 122,702 Consumer 16 — — 16 5,909 5,925 Total Loans $ 202 $ 4,317 $ 19,738 $ 24,257 $ 1,775,766 $ 1,800,023 December 31, 2022 30-59 60-89 Greater Total Past Current Total (Dollars in thousands) Commercial and Industrial $ — $ 89 $ — $ 89 $ 32,294 $ 32,383 Construction — — 1,091 1,091 191,266 192,357 Real Estate Mortgage: Commercial – Owner Occupied — — 400 400 125,550 125,950 Commercial – Non-owner Occupied — — 14,553 14,553 362,899 377,452 Residential – 1 to 4 Family 58 — 162 220 444,600 444,820 Residential – 1 to 4 Family Investment — — — — 476,210 476,210 Residential – Multifamily — — — — 95,556 95,556 Consumer 78 — 70 148 6,583 6,731 Total Loans $ 136 $ 89 $ 16,276 $ 16,501 $ 1,734,958 $ 1,751,459 The following table provides the amortized cost of loans on nonaccrual status: September 30, 2023 (amounts in thousands) Nonaccrual with no ACL Nonaccrual with ACL Total Nonaccrual Loans Past Due Over 90 Days Still Accruing Total Nonperforming Commercial and Industrial $ 468 $ — $ 468 $ — $ 468 Construction 1,091 — 1,091 — 1,091 Commercial - Owner Occupied 717 400 1,117 — 1,117 Commercial - Non-owner Occupied 13,370 3,692 17,062 — 17,062 Residential - 1 to 4 Family — — — — — Residential - 1 to 4 Family Investment — — — — — Residential - Multifamily — — — — — Consumer — — — — — Total $ 15,646 $ 4,092 $ 19,738 $ — $ 19,738 December 31, 2022 (amounts in thousands) Total Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial and Industrial $ — $ — Construction 1,091 — Commercial - Owner Occupied 587 — Commercial - Non-owner Occupied 19,568 — Residential - 1 to 4 Family 417 — Residential - 1 to 4 Family Investment — — Residential - Multifamily — — Consumer 70 — Total $ 21,733 $ — Allowance For Credit Losses (ACL) We maintain the ACL at a level that we believe to be appropriate to absorb estimated credit losses in the loan portfolios as of the balance sheet date. We established our allowance in accordance with guidance provided in Accounting Standard Codification ("ASC") - Financial Instruments - Credit Losses ("ASC 326"). The allowance for credit losses represents management’s estimate of expected losses inherent in the Company’s lending activities excluding loans accounted for under fair value. The allowance for credit losses is maintained through charges to the provision for credit losses in the Consolidated Statements of Income as expected losses are estimated. Loans or portions thereof that are determined to be uncollectible are charged against the allowance, and subsequent recoveries, if any, are credited to the allowance. The Company performs periodic reviews of its loan and lease portfolios to identify credit risks and to assess the overall collectability of those portfolios. The Company's allowance for credit losses includes a general component and an asset-specific component for collateral-dependent loans. To determine the asset-specific component of the allowance, the loans are evaluated individually based on the fair value of the underlying collateral. The Company generally measures the asset-specific allowance as the difference between the net realizable value of loan collateral and the recorded investment of a loan. The general component of the allowance evaluates the impairments of pools of the loan portfolio collectively. It incorporates a historical valuation allowance and qualitative allowance. The historical valuation utilizes a vintage loss rate approach utilizing a third party software model. The vintage loss rate approach creates pools of loans based on the segments defined by management, and consists of commercial and industrial, construction, commercial - owner occupied, commercial - non-owner occupied, residential - 1 to 4 family, residential - 1 to 4 family investment, residential - multifamily, and consumer. The loan pools are aggregated by origination year. Charge-offs, net of recoveries, are allocated by the year of charge-off to each loan pool. An average life is prescribed to a pool of loans that were originated in a particular year. The actual charge-offs as a percent of total loans are calculated for each historical year, and projected for future years for each year within the average life time horizon. The sum of the actual charge-offs and projected charge-offs are divided by the average amortized origination amount for each respective year. Those charge-off percentages are added together to obtain an aggregated vintage loss percentage which is then multiplied by the outstanding loan balances to obtain a reserve requirement. The qualitative allowance component is based on general economic conditions and other qualitative risk factors both internal and external to the Company. It is generally determined by evaluating, among other things: (i) the experience, ability and effectiveness of the Bank's lending management and staff; (ii) the effectiveness of the Bank's lending policies, procedures and internal controls;(iii) volume and severity of loan credit quality; (iv) nature and volume of portfolio and term of loans (v) the composition and concentrations of credit; (vi) the effectiveness of the internal loan review system; and (vii) national and local economic trends and conditions, and industry conditions. Management evaluates the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis. Each component is determined to have either a high, high-moderate, moderate, low-moderate or low degree of risk. The results are then input into a "general allocation matrix" to determine an appropriate general valuation allowance. The Company has elected to exclude accrued interest receivable from the measurement of the ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is generally reversed against interest income. The process of determining the level of the allowance for credit losses requires a high degree of estimate and judgment. It is reasonably possible that actual outcomes may differ from our estimates. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. At September 30, 2023, the allowance for credit losses on off-balance sheet credit exposures was $760.0 thousand. The following tables present the information regarding the allowance for credit losses and associated loan data by portfolio segment under the CECL model in accordance with ASC 326: Real Estate Mortgage Commercial and Industrial Construction Commercial Owner Occupied Commercial Non-owner Occupied Residential 1 to 4 Family Residential 1 to 4 Family Investment Residential Multifamily Consumer Total Allowance for credit losses (Dollars in thousands) Three months ended September 30, 2023 June 30, 2023 $ 590 $ 3,978 $ 1,869 $ 8,798 $ 7,710 $ 7,740 $ 1,232 $ 98 $ 32,015 Charge-offs — — — — — — — — — Recoveries 4 — — — — — — — 4 Provisions (benefits) (79) (833) (153) (276) 1,164 489 25 (37) 300 Ending Balance at September 30, 2023 $ 515 $ 3,145 $ 1,716 $ 8,522 $ 8,874 $ 8,229 $ 1,257 $ 61 $ 32,319 Allowance for credit losses Nine months ended September 30, 2023 December 31, 2022 $ 390 $ 2,581 $ 2,298 $ 9,709 $ 6,076 $ 9,381 $ 1,347 $ 63 $ 31,845 Impact of adoption ASC 326 168 1,899 (171) (951) 1,782 (794) (128) 53 1,858 Charge-offs — — — — — — — — — Recoveries 14 — 2 — — — — — 16 Provisions (benefits) (57) (1,335) (413) (236) 1,016 (358) 38 (55) (1,400) Ending Balance at September 30, 2023 $ 515 $ 3,145 $ 1,716 $ 8,522 $ 8,874 $ 8,229 $ 1,257 $ 61 $ 32,319 During the quarter, the increase to the Residential 1 to 4 Family and Residential 1 to 4 Family Investment portfolio's was due to an increase in the portfolio balances as well as an increase in the qualitative factor for the Residential 1 to 4 Family Residential portfolio driven by an increase in delinquent loan balances. The credit provision during the quarter to the Construction segment was mainly due to a decrease in the portfolio balance. For the nine months ended September 30, 2023, the increase to the provision for the Residential 1 to 4 Family portfolio was mainly driven by an increase in the qualitative factor due to an increase in delinquent loan balances. The credit provision to the Construction and Residential 1 to 4 Family Investment segments was largely driven by declines or slowdowns to growth within the portfolio that lowered loan exposure and also caused changes to the qualitative factors related to loan volume within the portfolio segments, partially offset by an increase in the balance of the Residential 1 - 4 Family Investment segment. The credit provision for the Commercial Owner Occupied portfolio is attributed to a decrease in the historical vintage reserve rate. The following tables present the information regarding the allowance for loan losses and associated loan data by portfolio segment under the incurred loss model: Real Estate Mortgage Commercial and Industrial Construction Commercial Owner Occupied Commercial Non-owner Occupied Residential 1 to 4 Family Residential 1 to 4 Family Investment Residential Multifamily Consumer Total Allowance for loan losses (Dollars in thousands) Three months ended September 30, 2022 June 30, 2022 $ 551 $ 2,202 $ 2,742 $ 7,549 $ 7,291 $ 8,920 $ 1,098 $ 95 $ 30,448 Charge-offs — — — — (66) — — — (66) Recoveries 3 — 4 — — — — — 7 Provisions (benefits) (137) 653 (140) 368 (424) 203 92 (15) 600 Ending Balance at September 30, 2022 $ 417 $ 2,855 $ 2,606 $ 7,917 $ 6,801 $ 9,123 $ 1,190 $ 80 $ 30,989 Allowance for loan losses Nine months ended September 30, 2022 December 31, 2021 $ 417 $ 2,662 $ 2,997 $ 7,476 $ 7,045 $ 7,925 $ 1,215 $ 108 $ 29,845 Charge-offs — — — — (66) — — — (66) Recoveries 12 100 15 — 133 — — — 260 Provisions (benefits) (12) 93 (406) 441 (311) 1,198 (25) (28) 950 Ending Balance at September 30, 2022 $ 417 $ 2,855 $ 2,606 $ 7,917 $ 6,801 $ 9,123 $ 1,190 $ 80 $ 30,989 Allowance for loan losses Individually evaluated for impairment $ — $ — $ 4 $ 125 $ 20 $ — $ — $ — $ 149 Collectively evaluated for impairment 417 2,855 2,602 7,792 6,781 9,123 1,190 80 30,840 Ending Balance at September 30, 2022 $ 417 $ 2,855 $ 2,606 $ 7,917 $ 6,801 $ 9,123 $ 1,190 $ 80 $ 30,989 Loans Individually evaluated for impairment $ — $ 1,139 $ 1,177 $ 19,655 $ 420 $ — $ — $ 70 $ 22,461 Collectively evaluated for impairment 29,407 192,972 128,929 327,888 431,646 460,922 78,162 6,970 1,656,896 Ending Balance at September 30, 2022 $ 29,407 $ 194,111 $ 130,106 $ 347,543 $ 432,066 $ 460,922 $ 78,162 $ 7,040 $ 1,679,357 The increase in the allowance for loan loss balance for the nine months ended September 30, 2022 in the residential 1 to 4 family investment and commercial non-owner occupied portfolio segments was primarily attributable to loan growth. The decrease in the allowance for loan loss balance in the commercial owner occupied portfolio segment for the nine months ended September 30, 2022 was due to decreases in non-performing balances. Collateral-Dependent Loans The following table presents the collateral-dependent loans by portfolio segment and collateral type at September 30, 2023: (amounts in thousands) Real Estate Business Assets Other Commercial and Industrial $ 468 $ — $ — Construction 1,091 — — Commercial - Owner Occupied 1,117 — — Commercial - Non-owner Occupied 1,716 — — Residential - 1 to 4 Family — — — Residential - 1 to 4 Family Investment — — — Residential - Multifamily — — — Consumer — — — Total $ 4,392 $ — $ — Credit Quality Indicators : As part of the on-going monitoring of the credit quality of the Company's loan portfolio, management tracks certain credit quality indicators including trends related to the risk grades of loans, the level of classified loans, net charge-offs, nonperforming loans (see details above) and the general economic conditions in the region. The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 7. Grades 1 through 4 are considered “Pass”. A description of the general characteristics of the seven risk grades is as follows: 1. Good : Borrower exhibits the strongest overall financial condition and represents the most creditworthy profile. 2. Satisfactory (A) : Borrower reflects a well-balanced financial condition, demonstrates a high level of creditworthiness and typically will have a strong banking relationship with the Bank. 3. Satisfactory (B) : Borrower exhibits a balanced financial condition and does not expose the Bank to more than a normal or average overall amount of risk. Loans are considered fully collectable. 4. Watch List : Borrower reflects a fair financial condition, but there exists an overall greater than average risk. Risk is deemed acceptable by virtue of increased monitoring and control over borrowings. Probability of timely repayment is present. 5. Other Assets Especially Mentioned (OAEM) : Financial condition is such that assets in this category have a potential weakness or pose unwarranted financial risk to the Bank even though the asset value is not currently impaired. The asset does not currently warrant adverse classification but if not corrected could weaken and could create future increased risk exposure. Includes loans that require an increased degree of monitoring or servicing as a result of internal or external changes. 6. Substandard : This classification represents more severe cases of #5 (OAEM) characteristics that require increased monitoring. Assets are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Assets are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral. Asset has a well-defined weakness or weaknesses that impairs the ability to repay debt and jeopardizes the timely liquidation or realization of the collateral at the asset’s net book value. 7. Doubtful : Assets which have all the weaknesses inherent in those assets classified #6 (Substandard) but the risks are more severe relative to financial deterioration in capital and/or asset value; accounting/evaluation techniques may be questionable and the overall possibility for collection in full is highly improbable. Borrowers in this category require constant monitoring, are considered work-out loans and present the potential for future loss to the Bank. The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of September 30, 2023 under the current expected credit loss model. (Dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving Loans at Amortized Cost Basis As of September 30, 2023 2023 2022 2021 2020 Prior Total Commercial and Industrial Pass $ 4,435 $ 1,857 $ 109 $ 3,442 $ 7,550 $ 14,109 $ 31,502 OAEM — — — — — — — Substandard — 466 — — — — 466 Doubtful — — — — — — — $ 4,435 $ 2,323 $ 109 $ 3,442 $ 7,550 $ 14,109 $ 31,968 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Construction Pass $ 324 $ 3,338 $ 4,500 $ 193 $ — $ 141,377 $ 149,732 OAEM — — — — — — — Substandard — — — — — 1,091 1,091 Doubtful — — — — — — — $ 324 $ 3,338 $ 4,500 $ 193 $ — $ 142,468 $ 150,823 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial – Owner Occupied Pass $ 19,546 $ 36,255 $ 21,678 $ 7,173 $ 55,090 $ 2,378 $ 142,120 OAEM — — — — — — — Substandard — — — — 1,117 — 1,117 Doubtful — — — — — — — $ 19,546 $ 36,255 $ 21,678 $ 7,173 $ 56,207 $ 2,378 $ 143,237 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial – Non-owner Occupied Pass $ 14,572 $ 99,540 $ 41,751 $ 34,116 $ 175,389 $ 1,179 $ 366,547 OAEM — — — — — — — Substandard — — — — 17,675 — 17,675 Doubtful — — — — — — — $ 14,572 $ 99,540 $ 41,751 $ 34,116 $ 193,064 $ 1,179 $ 384,222 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Residential – 1 to 4 Family Performing $ 46,213 $ 118,758 $ 63,059 $ 33,701 $ 195,472 $ 3,867 $ 461,070 Nonperforming — — — — — — — $ 46,213 $ 118,758 $ 63,059 $ 33,701 $ 195,472 $ 3,867 $ 461,070 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Residential – 1 to 4 Family Investment Performing $ 63,774 $ 141,343 $ 118,955 $ 51,438 $ 124,566 $ — $ 500,076 Nonperforming — — — — — — — $ 63,774 $ 141,343 $ 118,955 $ 51,438 $ 124,566 $ — $ 500,076 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Residential – Multifamily Pass $ 497 $ 15,670 $ 43,669 $ 12,230 $ 50,636 $ — $ 122,702 OAEM — — — — — — $ — Substandard — — — — — — $ — Doubtful — — — — — — — $ 497 $ 15,670 $ 43,669 $ 12,230 $ 50,636 $ — $ 122,702 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ — $ — $ — $ — $ 5,909 $ 16 $ 5,925 Nonperforming — — — — — — — $ — $ — $ — $ — $ 5,909 $ 16 $ 5,925 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — As of September 30, 2023, the Company was in the process of foreclosing on $2.8 million in loans, consisting of two commercial - owner occupied loans, and two commercial - non-owner occupied loans. An analysis of the credit risk profile by internally assigned grades under the incurred loss model as of December 31, 2022 is as follows: At December 31, 2022 Pass OAEM Substandard Doubtful Total (Dollars in thousands) Commercial and Industrial $ 32,383 $ — $ — $ — $ 32,383 Construction 191,266 — 1,091 — 192,357 Real Estate Mortgage: Commercial – Owner Occupied 122,523 3,027 400 — 125,950 Commercial – Non-owner Occupied 362,899 — 14,553 — 377,452 Residential – 1 to 4 Family 444,658 — 162 — 444,820 Residential – 1 to 4 Family Investment 476,210 — — — 476,210 Residential – Multifamily 95,556 — — — 95,556 Consumer 6,661 — 70 — 6,731 Total $ 1,732,156 $ 3,027 $ 16,276 $ — $ 1,751,459 Modifications to Borrowers Experiencing Financial Difficulty Occasionally, the Company modifies loans to borrowers in financial distress by providing term extensions, interest rate reductions, or other forbearance modifications. In some cases, Parke provides multiple types of concessions on the same loan. The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted. Loan Modifications Made to Borrowers Experiencing Financial Difficulty September 30, 2023 (Dollars in thousands) Term Extension More-Than-Insignificant Payment Delay Interest Rate Reduction Other Total % of Total Loan Category Commercial – Non-owner Occupied $ — $ — $ — $ 15,346 $ 15,346 4.0 % Total $ — $ — $ — $ 15,346 $ 15,346 As of September 30, 2023, Parke had no commitments to lend additional amounts to the borrowers included in the previous table. The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty as of September 30, 2023: Other Commercial – Non-owner Occupied Forbearance agreement made on two loans to the same borrower whereby the Company will receive all principal and interest due by the original maturity date and where the Company will not foreclose as long as payments are made as per the terms of the agreement. Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. There were no loans that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty. The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months (in thousands): September 30, 2023 Current 30-89 Days Past Due Greater than 90 Days Past Due Total Commercial – Non-owner Occupied $ 15,346 $ — $ — $ 15,346 Total $ 15,346 $ — $ — $ 15,346 |
EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS") | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE ("EPS") | EARNINGS PER SHARE (“EPS”) The following tables set forth the calculation of basic and diluted EPS for the three and nine-month periods ended September 30, 2023 and 2022. Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 (Dollars in thousands except share and per share data) Basic earnings per common share Net income available to the Company $ 1,029 $ 10,540 $ 20,289 $ 31,369 Less: Dividend on series B preferred stock (7) (7) (20) (20) Net income available to common shareholders 1,022 10,533 20,269 31,349 Basic weighted-average common shares outstanding 11,945,844 11,919,472 11,945,144 11,913,085 Basic earnings per common share $ 0.09 $ 0.88 $ 1.70 $ 2.63 Diluted earnings per common share Net income available to common shares $ 1,022 $ 10,533 $ 20,269 $ 31,349 Add: Dividend on series B preferred stock 7 7 20 20 Net income available to diluted common shares 1,029 10,540 20,289 31,369 Basic weighted-average common shares outstanding 11,945,844 11,919,472 11,945,144 11,913,085 Dilutive potential common shares 185,981 250,672 192,064 265,487 Diluted weighted-average common shares outstanding 12,131,825 12,170,144 12,137,208 12,178,572 Diluted earnings per common share $ 0.08 $ 0.87 $ 1.67 $ 2.58 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Company groups its assets and liabilities carried at fair value in three levels as follows: Level 1 Input: 1) Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Inputs: 1) Quoted prices for similar assets or liabilities in active markets. 2) Quoted prices for identical or similar assets or liabilities in markets that are not active. 3) Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (e.g., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.” Level 3 Inputs: 1) Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities. 2) These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Fair Value on a Recurring Basis: The following is a description of the Company’s valuation methodologies for assets carried at fair value on a recurring basis. These methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes that its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting measurement date. Investments in Available for Sale Securities: Where quoted prices are available in an active market, securities or other assets are classified in Level 1 of the valuation hierarchy. If quoted market prices are not available for the specific security or available for sale loans, then fair values are provided by independent third-party valuation services. These valuation services estimate fair values using pricing models and other accepted valuation methodologies, such as quotes for similar securities and observable yield curves and spreads. As part of the Company’s overall valuation process, management evaluates these third-party methodologies to ensure that they are representative of exit prices in the Company’s principal markets. Securities in Level 2 include mortgage-backed securities, and corporate debt obligations. The table below presents the balances of assets and liabilities measured at fair value on a recurring basis. Financial Assets Level 1 Level 2 Level 3 Total (Dollars in thousands) Available for Sale Securities As of September 30, 2023 Residential mortgage-backed securities $ — $ 7,271 $ — $ 7,271 Total $ — $ 7,271 $ — $ 7,271 As of December 31, 2022 Corporate debt obligations $ — $ 500 $ — $ 500 Residential mortgage-backed securities — 8,866 — 8,866 Total $ — $ 9,366 $ — $ 9,366 For the nine months ended September 30, 2023, there were no transfers between the levels within the fair value hierarchy. There were no level 3 assets or liabilities held during the three and nine months ended September 30, 2023 and 2022. Fair Value on a Non-recurring Basis: Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial Assets Level 1 Level 2 Level 3 Total (Dollars in thousands) As of September 30, 2023 Collateral-dependent loans $ — $ — $ 1,091 $ 1,091 OREO — — 1,550 1,550 As of December 31, 2022 Collateral-dependent loans $ — $ — $ 1,091 $ 1,091 OREO — — 1,550 1,550 Collateral-dependent loans are those loans that are accounted for under ASC 326, Financial Instruments - Credit Losses ("ASC 326"), in which the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties that collateralize the loans. These assets are generally classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. OREO consists of real estate properties that are recorded at fair value based upon current appraised value, or agreements of sale, less estimated disposition costs using level 3 inputs. Properties are reappraised annually. Fair Value of Financial Instruments The Company discloses estimated fair values for its significant financial instruments in accordance with FASB ASC (Topic 825), “ Disclosures about Fair Value of Financial Instruments ”. The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. For certain financial assets and liabilities, carrying value approximates fair value due to the nature of the financial instrument. These instruments include cash and cash equivalents, accrued interest receivable, bank owned life insurance, Federal Home Loan Bank of New York ("FHLBNY") restricted stock, demand and other non-maturity deposits and accrued interest payable, and they are considered to be level 1 measurements. The following table summarizes the carrying amounts and fair values for financial instruments that are not carried at fair value at September 30, 2023 and December 31, 2022: September 30, 2023 Carrying Amount Fair Value Total Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Investment securities HTM $ 9,319 $ 7,285 $ — $ 7,285 $ — Loans, net 1,767,704 1,732,007 — 1,710,241 21,766 Financial Liabilities: Time deposits $ 627,893 $ 622,510 $ — $ 622,510 $ — Borrowings 154,213 158,730 — 158,730 — December 31, 2022 Carrying Amount Fair Value Total Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Investment securities HTM $ 9,378 $ 7,805 $ — $ 7,805 $ — Loans, net 1,719,614 1,661,974 — 1,641,444 20,530 Financial Liabilities: Time deposits $ 603,135 $ 609,097 $ — $ 609,097 $ — Borrowings 126,071 127,254 — 127,254 — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheet. The contract or notional amounts of these instruments reflect the extent of the Company’s involvement in these particular classes of financial instruments. The Company’s exposure to the maximum possible credit risk in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations 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. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include accounts receivable; inventory; property, plant and equipment and income-producing commercial properties. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments to fund fixed-rate loans were immaterial at September 30, 2023. Variable-rate commitments are generally issued for less than one year and carry market rates of interest. Such instruments are not likely to be affected by annual rate caps triggered by rising interest rates. Management believes that off-balance sheet risk is not material to the results of operations or financial condition. As of September 30, 2023 and December 31, 2022, unused commitments to extend credit amounted to approximately $113.7 million and $159.0 million, respectively. At September 30, 2023, the allowance for credit losses on off-balance sheet credit exposures was $760.0 thousand. Standby letters of credit are conditional commitments 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 loan facilities to customers. As of September 30, 2023 and December 31, 2022, standby letters of credit with customers were $1.5 million and $1.5 million, respectively. On July 6, 2023 and September 29, 2023, the Bank entered into agreements with the FHLBNY for a Municipal Letter of Credit ("MLOC") of $50.0 million and $10.0 million, respectively. The MLOC's are used to pledge against public deposits and both MLOC's expire on October 5, 2023. There were no outstanding borrowings on the letters of credit as of September 30, 2023. The Company also has entered into an employment contract with the President of the Company, which provides for continued payment of certain employment salary and benefits prior to the expiration date of the agreement and in the event of a change in control, as defined. The Company has also entered in Change-in-Control Severance Agreements with certain officers which provide for the payment of severance in certain circumstances following a change in control. We provide banking services to customers that are licensed by various States to do business in the cannabis industry as growers, processors and dispensaries. Cannabis businesses are legal in these States, although they are not legal at the federal level. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) published guidelines in 2014 for financial institutions servicing state legal cannabis businesses. A financial institution that provides services to cannabis-related businesses can comply with Bank Secrecy Act (“BSA”) disclosure standards by following the FinCEN guidelines. We maintain stringent written policies and procedures related to the acceptance of such businesses and to the monitoring and maintenance of such business accounts. We conduct a significant due diligence review of the cannabis business before the business is accepted, including confirmation that the business is properly licensed by the applicable state. Throughout the relationship, we continue monitoring the business, including site visits, to ensure that the business continues to meet our stringent requirements, including maintenance of required licenses and periodic financial reviews of the business. While we believe we are operating in compliance with the FinCEN guidelines, there can be no assurance that federal enforcement guidelines will not change. Federal prosecutors have significant discretion and there can be no assurance that the federal prosecutors will not choose to strictly enforce the federal laws governing cannabis. Any change in the Federal government’s enforcement position, could cause us to immediately cease providing banking services to the cannabis industry. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income available to the Company | $ 1,029 | $ 10,540 | $ 20,289 | $ 31,369 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation: We prepared our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Parke Bank (including certain partnership interests). Parke Capital Trust I, Parke Capital Trust II and Parke Capital Trust III are wholly-owned subsidiaries but are not consolidated as they do not meet the requirements for consolidation under applicable accounting guidance. We have eliminated inter-company balances and transactions. We have also reclassified certain prior year amounts to conform to the current year presentation, which did not have a material impact on our consolidated financial condition or results of operations. The accompanying interim financial statements should be read in conjunction with the annual financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying interim financial statements for the three and nine months ended September 30, 2023 and 2022 are unaudited. The balance sheet as of December 31, 2022, was derived from the audited financial statements. In the opinion of management, these financial statements include all normal and recurring adjustments necessary for a fair statement of the results for such interim periods. Results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results for the full year or any other period. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the allowance for credit losses, the valuation of deferred income taxes, and the carrying value of other real estate owned ("OREO"). |
Allowance for Credit Losses on Loans and Leases | Allowance for Credit Losses on Loans and Leases The allowance for credit losses on loans and leases is a valuation account that is deducted from the loan or lease’s amortized cost basis to present the net amount expected to be collected on the loans and leases. Loans and leases deemed to be uncollectible are charged against the allowance for credit losses on loans and leases, and subsequent recoveries, if any, are credited to the allowance for credit losses on loans and leases. Changes to the allowance for credit losses on loans and leases are recorded through the provision for credit losses. The allowance for credit losses on loans and leases is maintained at a level considered appropriate to absorb expected credit losses over the expected life of the portfolio as of the reporting date. The allowance for credit losses on loans and leases is measured on a collective (pool) basis when similar risk characteristics exist. Parke's loan portfolio segments include commercial and industrial, construction, commercial - owner occupied, commercial - non-owner occupied, residential - 1 to 4 family, residential - 1 to 4 family investment, residential - multifamily, and consumer. Loans that do not share similar risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. For individually assessed loans, see related details in the Individually Assessed Loans section below. The allowance for credit losses on collectively assessed loans and leases is measured over the expected life of the loan or lease using a vintage loss rate approach, which will then be supplemented with qualitative factors. The vintage loss rate approach creates pools of loans (made up of individual loans) based on the loan segmentation. The loan pools are aggregated by origination year. Charge-offs, net of recoveries, are allocated by the year of charge-off to each loan pool. An average life is prescribed to a pool of loans that were originated in a particular year. The actual charge-offs as a percent of total loans are calculated for each historical year, and projected for future years for each year within the average life time horizon. The sum of the actual charge-offs and projected charge-offs are divided by the average amortized origination amount for each respective year. Those charge-off percentages are added together to obtain an aggregated vintage loss percentage which is then multiplied by the outstanding loan balances to obtain a reserve requirement. Parke runs the Current Expected Credit Loss ("CECL") impairment models on a quarterly basis and qualitatively adjusts model results for risk factors that are not considered within the model but which are relevant in assessing the expected credit losses within the loan and lease pools. Management generally considers the following qualitative factors: •Volume and severity of past-due loans, non-accrual loans and classified loans; •Lending policies and procedures, including underwriting standards and historically based loss/collection, charge-off and recovery practices; • National and economic conditions that may have an impact on credit quality; •Nature and volume of the portfolio; •Existence and effect of any credit concentrations and changes in the level of such concentrations; •The value of the underlying collateral for loans that are not collateral dependent; •Changes in the quality of the loan review system; and •Experience, ability and depth of lending management and staff Parke has elected to not estimate an allowance for credit losses on accrued interest receivable, as it already has a policy in place to reverse or write-off accrued interest, through interest income, in a timely manner. Allowance for Credit Losses on Lending-Related Commitments Parke estimates expected credit losses over the contractual period in which it is exposed to credit risk on contractual obligations to extend credit, unless the obligation is unconditionally cancellable by the Company. The allowance for credit losses on lending-related commitments is recorded in other liabilities in the consolidated balance sheet and is recorded as a provision for credit losses in the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated lives. The lifetime loss rates for off-balance sheet credit exposures are calculated in the same manner as on-balance sheet credit exposures, using the same model and economic forecasts, adjusted for the estimated likelihood that funding will occur. Individually Assessed Loans and Leases ASC 326 provides that a loan or lease is measured individually if it does not share similar risk characteristics with other financial assets. For Parke, loans and leases which are identified to be individually assessed under CECL typically are those that are on non-accrual at the reporting date, and include collateral dependent loans. Collateral Dependent Loans Parke considers a loan to be collateral dependent when foreclosure of the underlying collateral is probable. Parke has also elected to apply the practical expedient to measure expected credit losses of a collateral dependent asset using the fair value of the collateral, less any estimated costs to sell, when foreclosure is not probable but repayment of the loan is expected to be provided substantially through the operation or sale of the collateral, and the borrower is experiencing financial difficulty. Allowance for Credit Losses on Held to Maturity Securities We follow Accounting Standards Codification (ASC) 326-20, Financial Instruments - Credit Loss - Measured at Amortized Cost, to measure expected credit losses on held-to-maturity debt securities on a collective basis by security investment grade. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company classifies the held-to-maturity debt securities into the following major security types: residential mortgage backed, and state and political subdivisions. These securities are highly rated with a history of no credit losses, and are assigned ratings based on the most recent data from ratings agencies depending on the availability of data for the security. Credit ratings of held-to-maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis. Based on the credit ratings of our held-to-maturity securities and our historical experience including no losses, we have determined that an allowance for credit loss on the held-to-maturity portfolio is not required Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses and is included in Accrued interest receivable on the Consolidated Statements of Financial Condition. Allowance for Credit Losses on Available for Sale Securities We follow ASC 326-30, Financial Instruments - Credit Loss - Available-for-Sale Debt Securities, which provides guidance related to the recognition of and expanded disclosure requirements for expected credit losses on available-for-sale debt securities. For available-for-sale debt securities in an unrealized loss position, the Company first evaluates whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is reduced to fair value and recognized as a reduction to non-interest income in the Consolidated Statements of Income. For debt securities available-for-sale which the Company does not intend to sell, or it is not likely the security would be required to be sold before recovery, we evaluate whether a decline in fair value has resulted from credit losses or other adverse factors, such as a change in the security's credit rating. In assessing whether a credit loss exists, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. 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 is recorded, limited to the fair value of the security. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In March 2020, the FASB issued ASU No. 2020.-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide optional guidance to entities for a limited period of time to ease the transition in accounting for and recognizing the effects of reference rate reform on financial reporting. Under the guidance, modifications of contracts due to reference rate reform will not require contract remeasurement or reassessment of a previous accounting determination. For hedge accounting, modification of critical terms of the hedge due to changes in reference rate reform will not affect hedge accounting or de-designate the hedging relationship. The guidance also provides specific expedients for fair value hedges, cash flow hedges, and excluded components. Further, the guidance provides a one-time election to sell or transfer held to maturity debt securities that are affected by the reference rate change. The guidance is effective upon issuance through December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the sunset (or expiration) date of Accounting Standards Codification (ASC) Topic 848 to December 31, 2024. This gives reporting entities two additional years to apply the accounting relief provided under ASC Topic 848 for matters related to reference rate reform. ASU 2022-06 is effective for all reporting entities immediately upon issuance and must be applied on a prospective basis. The Company does not expect the application of this guidance to have a material impact on the Consolidated Financial Statements. Accounting Pronouncements Adopted in 2023 In June 2016, the Financial Accounting Standard Board (FASB) issued accounting standards update ("ASU") 2016-13, Financial Instruments-Credit Losses. ASU 2016-13 (Topic 326) , replaces the incurred loss impairment methodology in current GAAP with a CECL methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. The ASU was amended in some aspects by subsequent Accounting Standards Updates. This guidance became effective on January 1, 2023 for the Company. Results and disclosures for 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Allowances for Loan Losses Impact of Adoption | The following table illustrates the impact of adopting ASC 326: (Amounts in thousands) January 1, 2023 Assets Pre-adoption Adoption Impact As Reported ACL on loans Commercial and Industrial $ 390 $ 168 $ 558 Construction 2,581 1,899 4,480 Commercial - Owner Occupied 2,298 (171) 2,127 Commercial - Non-owner Occupied 9,709 (951) 8,758 Residential - 1 to 4 Family 6,076 1,782 7,858 Residential - 1 to 4 Family Investment 9,381 (794) 8,587 Residential - Multifamily 1,347 (128) 1,219 Consumer 63 53 116 Total ACL on loans 31,845 1,858 33,703 Deferred Tax Assets 9,184 716 9,900 Liabilities ACL for unfunded commitments — 960 960 Equity Retained Earnings $ 131,706 $ (2,102) $ 129,604 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments in Available-for-sale and Held-to-maturity Securities | The following is a summary of the Company's investments in available for sale and held to maturity securities as of September 30, 2023 and December 31, 2022: As of September 30, 2023 Amortized Gross Gross Fair value (Dollars in thousands) Available for sale: Residential mortgage-backed securities $ 8,137 $ — $ 866 $ 7,271 Total available for sale $ 8,137 $ — $ 866 $ 7,271 Held to maturity: Residential mortgage-backed securities $ 5,449 $ — $ 1,388 $ 4,061 States and political subdivisions 3,870 — 646 3,224 Total held to maturity $ 9,319 $ — $ 2,034 $ 7,285 As of December 31, 2022 Amortized Gross Gross Fair value (Dollars in thousands) Available for sale: Corporate debt obligations $ 500 $ — $ — $ 500 Residential mortgage-backed securities 9,575 3 712 8,866 Total available for sale $ 10,075 $ 3 $ 712 $ 9,366 Held to maturity: Residential mortgage-backed securities $ 5,556 $ — $ 1,096 $ 4,460 States and political subdivisions 3,822 56 533 3,345 Total held to maturity $ 9,378 $ 56 $ 1,629 $ 7,805 |
Summary of Investments Classified by Contractual Maturity | The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity as of September 30, 2023 are as follows: Amortized Fair (Dollars in thousands) Available for sale: Due within one year $ — $ — Due after one year through five years 2,809 2,566 Due after five years through ten years 1,541 1,396 Due after ten years 3,787 3,309 Total available for sale $ 8,137 $ 7,271 Held to maturity: Due within one year $ — $ — Due after one year through five years 1,395 1,385 Due after five years through ten years — — Due after ten years 7,924 5,900 Total held to maturity $ 9,319 $ 7,285 |
Summary of Gross Unrealized Losses and Fair Value of Investments with Continuous Unrealized Loss Position | The following tables show the gross unrealized losses and fair value of the Company's investments for which an allowance for credit losses has not been recorded, which are aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2023 and December 31, 2022: As of September 30, 2023 Less Than 12 Months 12 Months or Greater Total Description of Securities Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousand) Available for sale: Residential mortgage-backed securities $ 230 $ 4 $ 7,041 $ 862 $ 7,271 $ 866 Total available for sale $ 230 $ 4 $ 7,041 $ 862 $ 7,271 $ 866 Held to maturity: Residential mortgage-backed securities $ — $ — $ 4,061 $ 1,388 $ 4,061 $ 1,388 States and political subdivisions — — 3,224 646 3,224 646 Total held to maturity $ — $ — $ 7,285 $ 2,034 $ 7,285 $ 2,034 As of December 31, 2022 Less Than 12 Months 12 Months or Greater Total Description of Securities Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Available for sale: Residential mortgage-backed securities $ 7,579 $ 576 $ 1,043 $ 136 $ 8,622 $ 712 Total available for sale $ 7,579 $ 576 $ 1,043 $ 136 $ 8,622 $ 712 Held to maturity: Residential mortgage-backed securities $ — $ — $ 4,460 $ 1,096 $ 4,460 $ 1,096 States and political subdivisions — — 1,943 533 1,943 533 Total held to maturity $ — $ — $ 6,403 $ 1,629 $ 6,403 $ 1,629 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Summary of Portfolio of Loans Outstanding | The portfolio segments of loans receivable at September 30, 2023 and December 31, 2022, consist of the following: September 30, 2023 December 31, 2022 (Dollars in thousands) Commercial and Industrial $ 31,968 $ 32,383 Construction 150,823 192,357 Real Estate Mortgage: Commercial – Owner Occupied 143,237 125,950 Commercial – Non-owner Occupied 384,222 377,452 Residential – 1 to 4 Family 461,070 444,820 Residential – 1 to 4 Family Investment 500,076 476,210 Residential – Multifamily 122,702 95,556 Consumer 5,925 6,731 Total Loan receivable 1,800,023 1,751,459 Allowance for credit losses on loans (32,319) (31,845) Total loan receivable, net of allowance for credit losses on loans $ 1,767,704 $ 1,719,614 The following table presents the collateral-dependent loans by portfolio segment and collateral type at September 30, 2023: (amounts in thousands) Real Estate Business Assets Other Commercial and Industrial $ 468 $ — $ — Construction 1,091 — — Commercial - Owner Occupied 1,117 — — Commercial - Non-owner Occupied 1,716 — — Residential - 1 to 4 Family — — — Residential - 1 to 4 Family Investment — — — Residential - Multifamily — — — Consumer — — — Total $ 4,392 $ — $ — |
Summary of Age Analysis of Past Due Loans by Class | An age analysis of past due loans by class at September 30, 2023 and December 31, 2022 is as follows: September 30, 2023 30-59 60-89 Greater Total Past Current Total (Dollars in Thousands) Commercial and Industrial $ — $ — $ 468 $ 468 $ 31,500 $ 31,968 Construction — — 1,091 1,091 149,732 150,823 Real Estate Mortgage: Commercial – Owner Occupied — — 1,117 1,117 142,120 143,237 Commercial – Non-owner Occupied — 2,678 17,062 19,740 364,482 384,222 Residential – 1 to 4 Family 186 1,290 — 1,476 459,594 461,070 Residential – 1 to 4 Family Investment — 349 — 349 499,727 500,076 Residential – Multifamily — — — — 122,702 122,702 Consumer 16 — — 16 5,909 5,925 Total Loans $ 202 $ 4,317 $ 19,738 $ 24,257 $ 1,775,766 $ 1,800,023 December 31, 2022 30-59 60-89 Greater Total Past Current Total (Dollars in thousands) Commercial and Industrial $ — $ 89 $ — $ 89 $ 32,294 $ 32,383 Construction — — 1,091 1,091 191,266 192,357 Real Estate Mortgage: Commercial – Owner Occupied — — 400 400 125,550 125,950 Commercial – Non-owner Occupied — — 14,553 14,553 362,899 377,452 Residential – 1 to 4 Family 58 — 162 220 444,600 444,820 Residential – 1 to 4 Family Investment — — — — 476,210 476,210 Residential – Multifamily — — — — 95,556 95,556 Consumer 78 — 70 148 6,583 6,731 Total Loans $ 136 $ 89 $ 16,276 $ 16,501 $ 1,734,958 $ 1,751,459 |
Summary of Financing Receivable, Nonaccrual | The following table provides the amortized cost of loans on nonaccrual status: September 30, 2023 (amounts in thousands) Nonaccrual with no ACL Nonaccrual with ACL Total Nonaccrual Loans Past Due Over 90 Days Still Accruing Total Nonperforming Commercial and Industrial $ 468 $ — $ 468 $ — $ 468 Construction 1,091 — 1,091 — 1,091 Commercial - Owner Occupied 717 400 1,117 — 1,117 Commercial - Non-owner Occupied 13,370 3,692 17,062 — 17,062 Residential - 1 to 4 Family — — — — — Residential - 1 to 4 Family Investment — — — — — Residential - Multifamily — — — — — Consumer — — — — — Total $ 15,646 $ 4,092 $ 19,738 $ — $ 19,738 December 31, 2022 (amounts in thousands) Total Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial and Industrial $ — $ — Construction 1,091 — Commercial - Owner Occupied 587 — Commercial - Non-owner Occupied 19,568 — Residential - 1 to 4 Family 417 — Residential - 1 to 4 Family Investment — — Residential - Multifamily — — Consumer 70 — Total $ 21,733 $ — |
Summary of Analysis of Allowance for Loan Losses | The following tables present the information regarding the allowance for credit losses and associated loan data by portfolio segment under the CECL model in accordance with ASC 326: Real Estate Mortgage Commercial and Industrial Construction Commercial Owner Occupied Commercial Non-owner Occupied Residential 1 to 4 Family Residential 1 to 4 Family Investment Residential Multifamily Consumer Total Allowance for credit losses (Dollars in thousands) Three months ended September 30, 2023 June 30, 2023 $ 590 $ 3,978 $ 1,869 $ 8,798 $ 7,710 $ 7,740 $ 1,232 $ 98 $ 32,015 Charge-offs — — — — — — — — — Recoveries 4 — — — — — — — 4 Provisions (benefits) (79) (833) (153) (276) 1,164 489 25 (37) 300 Ending Balance at September 30, 2023 $ 515 $ 3,145 $ 1,716 $ 8,522 $ 8,874 $ 8,229 $ 1,257 $ 61 $ 32,319 Allowance for credit losses Nine months ended September 30, 2023 December 31, 2022 $ 390 $ 2,581 $ 2,298 $ 9,709 $ 6,076 $ 9,381 $ 1,347 $ 63 $ 31,845 Impact of adoption ASC 326 168 1,899 (171) (951) 1,782 (794) (128) 53 1,858 Charge-offs — — — — — — — — — Recoveries 14 — 2 — — — — — 16 Provisions (benefits) (57) (1,335) (413) (236) 1,016 (358) 38 (55) (1,400) Ending Balance at September 30, 2023 $ 515 $ 3,145 $ 1,716 $ 8,522 $ 8,874 $ 8,229 $ 1,257 $ 61 $ 32,319 During the quarter, the increase to the Residential 1 to 4 Family and Residential 1 to 4 Family Investment portfolio's was due to an increase in the portfolio balances as well as an increase in the qualitative factor for the Residential 1 to 4 Family Residential portfolio driven by an increase in delinquent loan balances. The credit provision during the quarter to the Construction segment was mainly due to a decrease in the portfolio balance. For the nine months ended September 30, 2023, the increase to the provision for the Residential 1 to 4 Family portfolio was mainly driven by an increase in the qualitative factor due to an increase in delinquent loan balances. The credit provision to the Construction and Residential 1 to 4 Family Investment segments was largely driven by declines or slowdowns to growth within the portfolio that lowered loan exposure and also caused changes to the qualitative factors related to loan volume within the portfolio segments, partially offset by an increase in the balance of the Residential 1 - 4 Family Investment segment. The credit provision for the Commercial Owner Occupied portfolio is attributed to a decrease in the historical vintage reserve rate. The following tables present the information regarding the allowance for loan losses and associated loan data by portfolio segment under the incurred loss model: Real Estate Mortgage Commercial and Industrial Construction Commercial Owner Occupied Commercial Non-owner Occupied Residential 1 to 4 Family Residential 1 to 4 Family Investment Residential Multifamily Consumer Total Allowance for loan losses (Dollars in thousands) Three months ended September 30, 2022 June 30, 2022 $ 551 $ 2,202 $ 2,742 $ 7,549 $ 7,291 $ 8,920 $ 1,098 $ 95 $ 30,448 Charge-offs — — — — (66) — — — (66) Recoveries 3 — 4 — — — — — 7 Provisions (benefits) (137) 653 (140) 368 (424) 203 92 (15) 600 Ending Balance at September 30, 2022 $ 417 $ 2,855 $ 2,606 $ 7,917 $ 6,801 $ 9,123 $ 1,190 $ 80 $ 30,989 Allowance for loan losses Nine months ended September 30, 2022 December 31, 2021 $ 417 $ 2,662 $ 2,997 $ 7,476 $ 7,045 $ 7,925 $ 1,215 $ 108 $ 29,845 Charge-offs — — — — (66) — — — (66) Recoveries 12 100 15 — 133 — — — 260 Provisions (benefits) (12) 93 (406) 441 (311) 1,198 (25) (28) 950 Ending Balance at September 30, 2022 $ 417 $ 2,855 $ 2,606 $ 7,917 $ 6,801 $ 9,123 $ 1,190 $ 80 $ 30,989 Allowance for loan losses Individually evaluated for impairment $ — $ — $ 4 $ 125 $ 20 $ — $ — $ — $ 149 Collectively evaluated for impairment 417 2,855 2,602 7,792 6,781 9,123 1,190 80 30,840 Ending Balance at September 30, 2022 $ 417 $ 2,855 $ 2,606 $ 7,917 $ 6,801 $ 9,123 $ 1,190 $ 80 $ 30,989 Loans Individually evaluated for impairment $ — $ 1,139 $ 1,177 $ 19,655 $ 420 $ — $ — $ 70 $ 22,461 Collectively evaluated for impairment 29,407 192,972 128,929 327,888 431,646 460,922 78,162 6,970 1,656,896 Ending Balance at September 30, 2022 $ 29,407 $ 194,111 $ 130,106 $ 347,543 $ 432,066 $ 460,922 $ 78,162 $ 7,040 $ 1,679,357 |
Summary of Analysis of Credit Risk Profile by Internally Assigned Grades | The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of September 30, 2023 under the current expected credit loss model. (Dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving Loans at Amortized Cost Basis As of September 30, 2023 2023 2022 2021 2020 Prior Total Commercial and Industrial Pass $ 4,435 $ 1,857 $ 109 $ 3,442 $ 7,550 $ 14,109 $ 31,502 OAEM — — — — — — — Substandard — 466 — — — — 466 Doubtful — — — — — — — $ 4,435 $ 2,323 $ 109 $ 3,442 $ 7,550 $ 14,109 $ 31,968 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Construction Pass $ 324 $ 3,338 $ 4,500 $ 193 $ — $ 141,377 $ 149,732 OAEM — — — — — — — Substandard — — — — — 1,091 1,091 Doubtful — — — — — — — $ 324 $ 3,338 $ 4,500 $ 193 $ — $ 142,468 $ 150,823 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial – Owner Occupied Pass $ 19,546 $ 36,255 $ 21,678 $ 7,173 $ 55,090 $ 2,378 $ 142,120 OAEM — — — — — — — Substandard — — — — 1,117 — 1,117 Doubtful — — — — — — — $ 19,546 $ 36,255 $ 21,678 $ 7,173 $ 56,207 $ 2,378 $ 143,237 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial – Non-owner Occupied Pass $ 14,572 $ 99,540 $ 41,751 $ 34,116 $ 175,389 $ 1,179 $ 366,547 OAEM — — — — — — — Substandard — — — — 17,675 — 17,675 Doubtful — — — — — — — $ 14,572 $ 99,540 $ 41,751 $ 34,116 $ 193,064 $ 1,179 $ 384,222 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Residential – 1 to 4 Family Performing $ 46,213 $ 118,758 $ 63,059 $ 33,701 $ 195,472 $ 3,867 $ 461,070 Nonperforming — — — — — — — $ 46,213 $ 118,758 $ 63,059 $ 33,701 $ 195,472 $ 3,867 $ 461,070 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Residential – 1 to 4 Family Investment Performing $ 63,774 $ 141,343 $ 118,955 $ 51,438 $ 124,566 $ — $ 500,076 Nonperforming — — — — — — — $ 63,774 $ 141,343 $ 118,955 $ 51,438 $ 124,566 $ — $ 500,076 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Residential – Multifamily Pass $ 497 $ 15,670 $ 43,669 $ 12,230 $ 50,636 $ — $ 122,702 OAEM — — — — — — $ — Substandard — — — — — — $ — Doubtful — — — — — — — $ 497 $ 15,670 $ 43,669 $ 12,230 $ 50,636 $ — $ 122,702 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ — $ — $ — $ — $ 5,909 $ 16 $ 5,925 Nonperforming — — — — — — — $ — $ — $ — $ — $ 5,909 $ 16 $ 5,925 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — An analysis of the credit risk profile by internally assigned grades under the incurred loss model as of December 31, 2022 is as follows: At December 31, 2022 Pass OAEM Substandard Doubtful Total (Dollars in thousands) Commercial and Industrial $ 32,383 $ — $ — $ — $ 32,383 Construction 191,266 — 1,091 — 192,357 Real Estate Mortgage: Commercial – Owner Occupied 122,523 3,027 400 — 125,950 Commercial – Non-owner Occupied 362,899 — 14,553 — 377,452 Residential – 1 to 4 Family 444,658 — 162 — 444,820 Residential – 1 to 4 Family Investment 476,210 — — — 476,210 Residential – Multifamily 95,556 — — — 95,556 Consumer 6,661 — 70 — 6,731 Total $ 1,732,156 $ 3,027 $ 16,276 $ — $ 1,751,459 |
Summary of Financing Receivable, Modified | The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted. Loan Modifications Made to Borrowers Experiencing Financial Difficulty September 30, 2023 (Dollars in thousands) Term Extension More-Than-Insignificant Payment Delay Interest Rate Reduction Other Total % of Total Loan Category Commercial – Non-owner Occupied $ — $ — $ — $ 15,346 $ 15,346 4.0 % Total $ — $ — $ — $ 15,346 $ 15,346 As of September 30, 2023, Parke had no commitments to lend additional amounts to the borrowers included in the previous table. The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty as of September 30, 2023: Other Commercial – Non-owner Occupied Forbearance agreement made on two loans to the same borrower whereby the Company will receive all principal and interest due by the original maturity date and where the Company will not foreclose as long as payments are made as per the terms of the agreement. September 30, 2023 Current 30-89 Days Past Due Greater than 90 Days Past Due Total Commercial – Non-owner Occupied $ 15,346 $ — $ — $ 15,346 Total $ 15,346 $ — $ — $ 15,346 |
EARNINGS PER SHARE ("EPS") (Tab
EARNINGS PER SHARE ("EPS") (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted EPS | The following tables set forth the calculation of basic and diluted EPS for the three and nine-month periods ended September 30, 2023 and 2022. Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 (Dollars in thousands except share and per share data) Basic earnings per common share Net income available to the Company $ 1,029 $ 10,540 $ 20,289 $ 31,369 Less: Dividend on series B preferred stock (7) (7) (20) (20) Net income available to common shareholders 1,022 10,533 20,269 31,349 Basic weighted-average common shares outstanding 11,945,844 11,919,472 11,945,144 11,913,085 Basic earnings per common share $ 0.09 $ 0.88 $ 1.70 $ 2.63 Diluted earnings per common share Net income available to common shares $ 1,022 $ 10,533 $ 20,269 $ 31,349 Add: Dividend on series B preferred stock 7 7 20 20 Net income available to diluted common shares 1,029 10,540 20,289 31,369 Basic weighted-average common shares outstanding 11,945,844 11,919,472 11,945,144 11,913,085 Dilutive potential common shares 185,981 250,672 192,064 265,487 Diluted weighted-average common shares outstanding 12,131,825 12,170,144 12,137,208 12,178,572 Diluted earnings per common share $ 0.08 $ 0.87 $ 1.67 $ 2.58 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The table below presents the balances of assets and liabilities measured at fair value on a recurring basis. Financial Assets Level 1 Level 2 Level 3 Total (Dollars in thousands) Available for Sale Securities As of September 30, 2023 Residential mortgage-backed securities $ — $ 7,271 $ — $ 7,271 Total $ — $ 7,271 $ — $ 7,271 As of December 31, 2022 Corporate debt obligations $ — $ 500 $ — $ 500 Residential mortgage-backed securities — 8,866 — 8,866 Total $ — $ 9,366 $ — $ 9,366 |
Summary of Fair Value on a Non-recurring Basis | Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial Assets Level 1 Level 2 Level 3 Total (Dollars in thousands) As of September 30, 2023 Collateral-dependent loans $ — $ — $ 1,091 $ 1,091 OREO — — 1,550 1,550 As of December 31, 2022 Collateral-dependent loans $ — $ — $ 1,091 $ 1,091 OREO — — 1,550 1,550 |
Summary of Carrying Value and Fair Value of Financial Instruments | The following table summarizes the carrying amounts and fair values for financial instruments that are not carried at fair value at September 30, 2023 and December 31, 2022: September 30, 2023 Carrying Amount Fair Value Total Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Investment securities HTM $ 9,319 $ 7,285 $ — $ 7,285 $ — Loans, net 1,767,704 1,732,007 — 1,710,241 21,766 Financial Liabilities: Time deposits $ 627,893 $ 622,510 $ — $ 622,510 $ — Borrowings 154,213 158,730 — 158,730 — December 31, 2022 Carrying Amount Fair Value Total Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Investment securities HTM $ 9,378 $ 7,805 $ — $ 7,805 $ — Loans, net 1,719,614 1,661,974 — 1,641,444 20,530 Financial Liabilities: Time deposits $ 603,135 $ 609,097 $ — $ 609,097 $ — Borrowings 126,071 127,254 — 127,254 — |
ORGANIZATION (Details)
ORGANIZATION (Details) | 9 Months Ended |
Sep. 30, 2023 branch | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Date of commencement of operations | Jan. 28, 1999 |
Number of additional branch office locations | 6 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Sep. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Noncontrolling Interest [Line Items] | |||
Retained earnings | $ (143,422,000) | $ (129,604,000) | $ (131,706,000) |
ACL for unfunded commitments | 960,000 | $ 0 | |
Accounting Standards Update 2016-13 | |||
Noncontrolling Interest [Line Items] | |||
Retained earnings | 2,100,000 | ||
Adjustment for adoption of new ASU | 1,900,000 | ||
ACL for unfunded commitments | $ 960,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of Adoption (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | |||||||
Total ACL on loans | $ 32,319 | $ 32,015 | $ 33,703 | $ 31,845 | $ 30,989 | $ 30,448 | $ 29,845 |
Deferred tax asset | 9,940 | 9,900 | 9,184 | ||||
Liabilities | |||||||
ACL for unfunded commitments | 960 | 0 | |||||
Equity | |||||||
Retained earnings | 143,422 | 129,604 | 131,706 | ||||
Commercial and Industrial | |||||||
Assets | |||||||
Total ACL on loans | 515 | 590 | 558 | 390 | 417 | 551 | 417 |
Construction | |||||||
Assets | |||||||
Total ACL on loans | 3,145 | 3,978 | 4,480 | 2,581 | 2,855 | 2,202 | 2,662 |
Real Estate Mortgage | Commercial – Owner Occupied | |||||||
Assets | |||||||
Total ACL on loans | 1,716 | 1,869 | 2,127 | 2,298 | 2,606 | 2,742 | 2,997 |
Real Estate Mortgage | Commercial – Non-owner Occupied | |||||||
Assets | |||||||
Total ACL on loans | 8,522 | 8,798 | 8,758 | 9,709 | 7,917 | 7,549 | 7,476 |
Real Estate Mortgage | Residential – 1 to 4 Family | |||||||
Assets | |||||||
Total ACL on loans | 8,874 | 7,710 | 7,858 | 6,076 | 6,801 | 7,291 | 7,045 |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | |||||||
Assets | |||||||
Total ACL on loans | 8,229 | 7,740 | 8,587 | 9,381 | 9,123 | 8,920 | 7,925 |
Real Estate Mortgage | Residential – Multifamily | |||||||
Assets | |||||||
Total ACL on loans | 1,257 | 1,232 | 1,219 | 1,347 | 1,190 | 1,098 | 1,215 |
Consumer | |||||||
Assets | |||||||
Total ACL on loans | $ 61 | $ 98 | 116 | $ 63 | $ 80 | $ 95 | $ 108 |
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Assets | |||||||
Total ACL on loans | 1,858 | ||||||
Deferred tax asset | 716 | ||||||
Liabilities | |||||||
ACL for unfunded commitments | 960 | ||||||
Equity | |||||||
Retained earnings | (2,102) | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial and Industrial | |||||||
Assets | |||||||
Total ACL on loans | 168 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Construction | |||||||
Assets | |||||||
Total ACL on loans | 1,899 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Real Estate Mortgage | Commercial – Owner Occupied | |||||||
Assets | |||||||
Total ACL on loans | (171) | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Real Estate Mortgage | Commercial – Non-owner Occupied | |||||||
Assets | |||||||
Total ACL on loans | (951) | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Real Estate Mortgage | Residential – 1 to 4 Family | |||||||
Assets | |||||||
Total ACL on loans | 1,782 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Real Estate Mortgage | Residential – 1 to 4 Family Investment | |||||||
Assets | |||||||
Total ACL on loans | (794) | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Real Estate Mortgage | Residential – Multifamily | |||||||
Assets | |||||||
Total ACL on loans | (128) | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Consumer | |||||||
Assets | |||||||
Total ACL on loans | $ 53 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available for sale: | ||
Amortized cost | $ 8,137 | $ 10,075 |
Gross unrealized gains | 0 | 3 |
Gross unrealized losses | 866 | 712 |
Fair value | 7,271 | 9,366 |
Held to maturity: | ||
Amortized cost | 9,319 | 9,378 |
Gross unrealized gains | 0 | 56 |
Gross unrealized losses | 2,034 | 1,629 |
Fair value | 7,285 | 7,805 |
Corporate debt obligations | ||
Available for sale: | ||
Amortized cost | 500 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | 500 | |
Residential mortgage-backed securities | ||
Available for sale: | ||
Amortized cost | 8,137 | 9,575 |
Gross unrealized gains | 0 | 3 |
Gross unrealized losses | 866 | 712 |
Fair value | 7,271 | 8,866 |
Held to maturity: | ||
Amortized cost | 5,449 | 5,556 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 1,388 | 1,096 |
Fair value | 4,061 | 4,460 |
States and political subdivisions | ||
Held to maturity: | ||
Amortized cost | 3,870 | 3,822 |
Gross unrealized gains | 0 | 56 |
Gross unrealized losses | 646 | 533 |
Fair value | $ 3,224 | $ 3,345 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized Cost and Fair Value of Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available for sale, Amortized Cost | ||
Due within one year | $ 0 | |
Due after one year through five years | 2,809 | |
Due after five years through ten years | 1,541 | |
Due after ten years | 3,787 | |
Amortized cost | 8,137 | $ 10,075 |
Available for sale, Fair Value | ||
Due within one year | 0 | |
Due after one year through five years | 2,566 | |
Due after five years through ten years | 1,396 | |
Due after ten years | 3,309 | |
Total available for sale | 7,271 | 9,366 |
Held to maturity, Amortized Cost | ||
Due within one year | 0 | |
Due after one year through five years | 1,395 | |
Due after five years through ten years | 0 | |
Due after ten years | 7,924 | |
Amortized cost | 9,319 | 9,378 |
Held to maturity, Fair Value | ||
Due within one year | 0 | |
Due after one year through five years | 1,385 | |
Due after five years through ten years | 0 | |
Due after ten years | 5,900 | |
Total held to maturity | $ 7,285 | $ 7,805 |
INVESTMENT SECURITIES - Gross U
INVESTMENT SECURITIES - Gross Unrealized Losses and Fair Value of Investments with Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available for sale: | ||
Less Than 12 Months, Fair Value | $ 230 | $ 7,579 |
12 Months or Greater, Fair value | 7,041 | 1,043 |
Total, Fair Value | 7,271 | 8,622 |
Less Than 12 Months, Unrealized Losses | 4 | 576 |
12 Months or Greater, Unrealized Losses | 862 | 136 |
Total, Unrealized Losses | 866 | 712 |
Held to maturity: | ||
Less Than 12 Months, Fair Value | 0 | 0 |
12 Months or Greater, Fair value | 7,285 | 6,403 |
Total, Fair Value | 7,285 | 6,403 |
Less Than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or Greater, Unrealized Losses | 2,034 | 1,629 |
Total, Unrealized Losses | 2,034 | 1,629 |
Residential mortgage-backed securities | ||
Available for sale: | ||
Less Than 12 Months, Fair Value | 230 | 7,579 |
12 Months or Greater, Fair value | 7,041 | 1,043 |
Total, Fair Value | 7,271 | 8,622 |
Less Than 12 Months, Unrealized Losses | 4 | 576 |
12 Months or Greater, Unrealized Losses | 862 | 136 |
Total, Unrealized Losses | 866 | 712 |
Held to maturity: | ||
Less Than 12 Months, Fair Value | 0 | 0 |
12 Months or Greater, Fair value | 4,061 | 4,460 |
Total, Fair Value | 4,061 | 4,460 |
Less Than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or Greater, Unrealized Losses | 1,388 | 1,096 |
Total, Unrealized Losses | 1,388 | 1,096 |
States and political subdivisions | ||
Held to maturity: | ||
Less Than 12 Months, Fair Value | 0 | 0 |
12 Months or Greater, Fair value | 3,224 | 1,943 |
Total, Fair Value | 3,224 | 1,943 |
Less Than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or Greater, Unrealized Losses | 646 | 533 |
Total, Unrealized Losses | $ 646 | $ 533 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - Residential mortgage-backed securities | Sep. 30, 2023 security |
Debt Securities, Available-for-sale [Line Items] | |
Number of debt securities, loss position, less than 12 months | 16 |
Number of debt securities, loss position, 12 months or greater | 19 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Portfolio of Loans Outstanding (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Unearned income, net deferred loan fees and unamortized discounts and premiums | $ 2,200 | $ 1,900 | |||||
Loans, net of unearned income | 1,800,023 | 1,751,459 | $ 1,679,357 | ||||
Allowance for credit losses on loans | (32,319) | $ (32,015) | $ (33,703) | (31,845) | (30,989) | $ (30,448) | $ (29,845) |
Net loans | 1,767,704 | 1,719,614 | |||||
Commercial and Industrial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans, net of unearned income | 31,968 | 32,383 | 29,407 | ||||
Allowance for credit losses on loans | (515) | (590) | (558) | (390) | (417) | (551) | (417) |
Construction | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans, net of unearned income | 150,823 | 192,357 | 194,111 | ||||
Allowance for credit losses on loans | (3,145) | (3,978) | (4,480) | (2,581) | (2,855) | (2,202) | (2,662) |
Real Estate Mortgage | Commercial – Owner Occupied | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans, net of unearned income | 143,237 | 125,950 | 130,106 | ||||
Allowance for credit losses on loans | (1,716) | (1,869) | (2,127) | (2,298) | (2,606) | (2,742) | (2,997) |
Real Estate Mortgage | Commercial – Non-owner Occupied | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans, net of unearned income | 384,222 | 377,452 | 347,543 | ||||
Allowance for credit losses on loans | (8,522) | (8,798) | (8,758) | (9,709) | (7,917) | (7,549) | (7,476) |
Real Estate Mortgage | Residential – 1 to 4 Family | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans, net of unearned income | 461,070 | 444,820 | 432,066 | ||||
Allowance for credit losses on loans | (8,874) | (7,710) | (7,858) | (6,076) | (6,801) | (7,291) | (7,045) |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans, net of unearned income | 500,076 | 476,210 | 460,922 | ||||
Allowance for credit losses on loans | (8,229) | (7,740) | (8,587) | (9,381) | (9,123) | (8,920) | (7,925) |
Real Estate Mortgage | Residential – Multifamily | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans, net of unearned income | 122,702 | 95,556 | 78,162 | ||||
Allowance for credit losses on loans | (1,257) | (1,232) | (1,219) | (1,347) | (1,190) | (1,098) | (1,215) |
Consumer | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans, net of unearned income | 5,925 | 6,731 | 7,040 | ||||
Allowance for credit losses on loans | $ (61) | $ (98) | $ (116) | $ (63) | $ (80) | $ (95) | $ (108) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | $ 1,800,023 | $ 1,751,459 | $ 1,679,357 |
Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 24,257 | 16,501 | |
30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 202 | 136 | |
60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 4,317 | 89 | |
Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 19,738 | 16,276 | |
Current | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 1,775,766 | 1,734,958 | |
Commercial and Industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 31,968 | 32,383 | 29,407 |
Commercial and Industrial | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 468 | 89 | |
Commercial and Industrial | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Commercial and Industrial | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 89 | |
Commercial and Industrial | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 468 | 0 | |
Commercial and Industrial | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 31,500 | 32,294 | |
Construction | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 150,823 | 192,357 | 194,111 |
Construction | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 1,091 | 1,091 | |
Construction | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Construction | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Construction | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 1,091 | 1,091 | |
Construction | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 149,732 | 191,266 | |
Real Estate Mortgage | Commercial – Owner Occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 143,237 | 125,950 | 130,106 |
Real Estate Mortgage | Commercial – Owner Occupied | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 1,117 | 400 | |
Real Estate Mortgage | Commercial – Owner Occupied | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Commercial – Owner Occupied | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Commercial – Owner Occupied | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 1,117 | 400 | |
Real Estate Mortgage | Commercial – Owner Occupied | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 142,120 | 125,550 | |
Real Estate Mortgage | Commercial – Non-owner Occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 384,222 | 377,452 | 347,543 |
Real Estate Mortgage | Commercial – Non-owner Occupied | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 19,740 | 14,553 | |
Real Estate Mortgage | Commercial – Non-owner Occupied | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Commercial – Non-owner Occupied | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 2,678 | 0 | |
Real Estate Mortgage | Commercial – Non-owner Occupied | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 17,062 | 14,553 | |
Real Estate Mortgage | Commercial – Non-owner Occupied | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 364,482 | 362,899 | |
Real Estate Mortgage | Residential – 1 to 4 Family | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 461,070 | 444,820 | 432,066 |
Real Estate Mortgage | Residential – 1 to 4 Family | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 1,476 | 220 | |
Real Estate Mortgage | Residential – 1 to 4 Family | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 186 | 58 | |
Real Estate Mortgage | Residential – 1 to 4 Family | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 1,290 | 0 | |
Real Estate Mortgage | Residential – 1 to 4 Family | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 162 | |
Real Estate Mortgage | Residential – 1 to 4 Family | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 459,594 | 444,600 | |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 500,076 | 476,210 | 460,922 |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 349 | 0 | |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 349 | 0 | |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 499,727 | 476,210 | |
Real Estate Mortgage | Residential – Multifamily | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 122,702 | 95,556 | 78,162 |
Real Estate Mortgage | Residential – Multifamily | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Residential – Multifamily | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Residential – Multifamily | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Residential – Multifamily | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Residential – Multifamily | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 122,702 | 95,556 | |
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 5,925 | 6,731 | $ 7,040 |
Consumer | Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 16 | 148 | |
Consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 16 | 78 | |
Consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Consumer | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | 0 | 70 | |
Consumer | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Loans, net of unearned income | $ 5,909 | $ 6,583 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Nonaccrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual with no ACL | $ 15,646 | |
Nonaccrual with ACL | 4,092 | |
Total Nonaccrual | 19,738 | $ 21,733 |
Loans > 90 Days and Accruing | 0 | 0 |
Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual with no ACL | 468 | |
Nonaccrual with ACL | 0 | |
Total Nonaccrual | 468 | 0 |
Loans > 90 Days and Accruing | 0 | 0 |
Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual with no ACL | 1,091 | |
Nonaccrual with ACL | 0 | |
Total Nonaccrual | 1,091 | 1,091 |
Loans > 90 Days and Accruing | 0 | 0 |
Real Estate Mortgage | Commercial – Owner Occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual with no ACL | 717 | |
Nonaccrual with ACL | 400 | |
Total Nonaccrual | 1,117 | 587 |
Loans > 90 Days and Accruing | 0 | 0 |
Real Estate Mortgage | Commercial – Non-owner Occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual with no ACL | 13,370 | |
Nonaccrual with ACL | 3,692 | |
Total Nonaccrual | 17,062 | 19,568 |
Loans > 90 Days and Accruing | 0 | 0 |
Real Estate Mortgage | Residential – 1 to 4 Family | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual with no ACL | 0 | |
Nonaccrual with ACL | 0 | |
Total Nonaccrual | 0 | 417 |
Loans > 90 Days and Accruing | 0 | 0 |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual with no ACL | 0 | |
Nonaccrual with ACL | 0 | |
Total Nonaccrual | 0 | 0 |
Loans > 90 Days and Accruing | 0 | 0 |
Real Estate Mortgage | Residential – Multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual with no ACL | 0 | |
Nonaccrual with ACL | 0 | |
Total Nonaccrual | 0 | 0 |
Loans > 90 Days and Accruing | 0 | 0 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual with no ACL | 0 | |
Nonaccrual with ACL | 0 | |
Total Nonaccrual | 0 | 70 |
Loans > 90 Days and Accruing | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Allowance for Credit Losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jan. 01, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Off-balance-sheet, credit exposure | $ 760,000 | |||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | $ 32,015,000 | $ 30,448,000 | 31,845,000 | $ 29,845,000 | ||
Charge-offs | 0 | (66,000) | 0 | (66,000) | ||
Recoveries | 4,000 | 7,000 | 16,000 | 260,000 | ||
Provisions (benefits) | 300,000 | (1,400,000) | ||||
Provisions (benefits) | 300,000 | 600,000 | (1,600,000) | 950,000 | ||
Ending balance | 32,319,000 | 30,989,000 | 32,319,000 | 30,989,000 | ||
Allowance for credit losses | ||||||
Individually evaluated for impairment | 149,000 | 149,000 | ||||
Collectively evaluated for impairment | 30,840,000 | 30,840,000 | ||||
Allowance for credit losses | 32,319,000 | 30,989,000 | 32,319,000 | 30,989,000 | $ 33,703,000 | $ 31,845,000 |
Loans | ||||||
Individually evaluated for impairment | 22,461,000 | 22,461,000 | ||||
Collectively evaluated for impairment | 1,656,896,000 | 1,656,896,000 | ||||
Total | 1,800,023,000 | 1,679,357,000 | 1,800,023,000 | 1,679,357,000 | 1,751,459,000 | |
Accounting Standards Update 2016-13 | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 1,858,000 | |||||
Allowance for credit losses | ||||||
Allowance for credit losses | 1,858,000 | |||||
Commercial and Industrial | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 590,000 | 551,000 | 390,000 | 417,000 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 4,000 | 3,000 | 14,000 | 12,000 | ||
Provisions (benefits) | (79,000) | (57,000) | ||||
Provisions (benefits) | (137,000) | (12,000) | ||||
Ending balance | 515,000 | 417,000 | 515,000 | 417,000 | ||
Allowance for credit losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 417,000 | 417,000 | ||||
Allowance for credit losses | 515,000 | 417,000 | 515,000 | 417,000 | 558,000 | 390,000 |
Loans | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 29,407,000 | 29,407,000 | ||||
Total | 31,968,000 | 29,407,000 | 31,968,000 | 29,407,000 | 32,383,000 | |
Commercial and Industrial | Accounting Standards Update 2016-13 | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 168,000 | |||||
Allowance for credit losses | ||||||
Allowance for credit losses | 168,000 | |||||
Construction | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 3,978,000 | 2,202,000 | 2,581,000 | 2,662,000 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 100,000 | ||
Provisions (benefits) | (833,000) | (1,335,000) | ||||
Provisions (benefits) | 653,000 | 93,000 | ||||
Ending balance | 3,145,000 | 2,855,000 | 3,145,000 | 2,855,000 | ||
Allowance for credit losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 2,855,000 | 2,855,000 | ||||
Allowance for credit losses | 3,145,000 | 2,855,000 | 3,145,000 | 2,855,000 | 4,480,000 | 2,581,000 |
Loans | ||||||
Individually evaluated for impairment | 1,139,000 | 1,139,000 | ||||
Collectively evaluated for impairment | 192,972,000 | 192,972,000 | ||||
Total | 150,823,000 | 194,111,000 | 150,823,000 | 194,111,000 | 192,357,000 | |
Construction | Accounting Standards Update 2016-13 | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 1,899,000 | |||||
Allowance for credit losses | ||||||
Allowance for credit losses | 1,899,000 | |||||
Real Estate Mortgage | Commercial Owner Occupied | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 1,869,000 | 2,742,000 | 2,298,000 | 2,997,000 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 4,000 | 2,000 | 15,000 | ||
Provisions (benefits) | (153,000) | (413,000) | ||||
Provisions (benefits) | (140,000) | (406,000) | ||||
Ending balance | 1,716,000 | 2,606,000 | 1,716,000 | 2,606,000 | ||
Allowance for credit losses | ||||||
Individually evaluated for impairment | 4,000 | 4,000 | ||||
Collectively evaluated for impairment | 2,602,000 | 2,602,000 | ||||
Allowance for credit losses | 1,716,000 | 2,606,000 | 1,716,000 | 2,606,000 | 2,127,000 | 2,298,000 |
Loans | ||||||
Individually evaluated for impairment | 1,177,000 | 1,177,000 | ||||
Collectively evaluated for impairment | 128,929,000 | 128,929,000 | ||||
Total | 143,237,000 | 130,106,000 | 143,237,000 | 130,106,000 | 125,950,000 | |
Real Estate Mortgage | Commercial Owner Occupied | Accounting Standards Update 2016-13 | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | (171,000) | |||||
Allowance for credit losses | ||||||
Allowance for credit losses | (171,000) | |||||
Real Estate Mortgage | Commercial Non-owner Occupied | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 8,798,000 | 7,549,000 | 9,709,000 | 7,476,000 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provisions (benefits) | (276,000) | (236,000) | ||||
Provisions (benefits) | 368,000 | 441,000 | ||||
Ending balance | 8,522,000 | 7,917,000 | 8,522,000 | 7,917,000 | ||
Allowance for credit losses | ||||||
Individually evaluated for impairment | 125,000 | 125,000 | ||||
Collectively evaluated for impairment | 7,792,000 | 7,792,000 | ||||
Allowance for credit losses | 8,522,000 | 7,917,000 | 8,522,000 | 7,917,000 | 8,758,000 | 9,709,000 |
Loans | ||||||
Individually evaluated for impairment | 19,655,000 | 19,655,000 | ||||
Collectively evaluated for impairment | 327,888,000 | 327,888,000 | ||||
Total | 384,222,000 | 347,543,000 | 384,222,000 | 347,543,000 | 377,452,000 | |
Real Estate Mortgage | Commercial Non-owner Occupied | Accounting Standards Update 2016-13 | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | (951,000) | |||||
Allowance for credit losses | ||||||
Allowance for credit losses | (951,000) | |||||
Real Estate Mortgage | Residential 1 to 4 Family | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 7,710,000 | 7,291,000 | 6,076,000 | 7,045,000 | ||
Charge-offs | 0 | (66,000) | 0 | (66,000) | ||
Recoveries | 0 | 0 | 0 | 133,000 | ||
Provisions (benefits) | 1,164,000 | 1,016,000 | ||||
Provisions (benefits) | (424,000) | (311,000) | ||||
Ending balance | 8,874,000 | 6,801,000 | 8,874,000 | 6,801,000 | ||
Allowance for credit losses | ||||||
Individually evaluated for impairment | 20,000 | 20,000 | ||||
Collectively evaluated for impairment | 6,781,000 | 6,781,000 | ||||
Allowance for credit losses | 8,874,000 | 6,801,000 | 8,874,000 | 6,801,000 | 7,858,000 | 6,076,000 |
Loans | ||||||
Individually evaluated for impairment | 420,000 | 420,000 | ||||
Collectively evaluated for impairment | 431,646,000 | 431,646,000 | ||||
Total | 461,070,000 | 432,066,000 | 461,070,000 | 432,066,000 | 444,820,000 | |
Real Estate Mortgage | Residential 1 to 4 Family | Accounting Standards Update 2016-13 | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 1,782,000 | |||||
Allowance for credit losses | ||||||
Allowance for credit losses | 1,782,000 | |||||
Real Estate Mortgage | Residential – 1 to 4 Family Investment | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 7,740,000 | 8,920,000 | 9,381,000 | 7,925,000 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provisions (benefits) | 489,000 | (358,000) | ||||
Provisions (benefits) | 203,000 | 1,198,000 | ||||
Ending balance | 8,229,000 | 9,123,000 | 8,229,000 | 9,123,000 | ||
Allowance for credit losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 9,123,000 | 9,123,000 | ||||
Allowance for credit losses | 8,229,000 | 9,123,000 | 8,229,000 | 9,123,000 | 8,587,000 | 9,381,000 |
Loans | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 460,922,000 | 460,922,000 | ||||
Total | 500,076,000 | 460,922,000 | 500,076,000 | 460,922,000 | 476,210,000 | |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | Accounting Standards Update 2016-13 | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | (794,000) | |||||
Allowance for credit losses | ||||||
Allowance for credit losses | (794,000) | |||||
Real Estate Mortgage | Residential Multifamily | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 1,232,000 | 1,098,000 | 1,347,000 | 1,215,000 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provisions (benefits) | 25,000 | 38,000 | ||||
Provisions (benefits) | 92,000 | (25,000) | ||||
Ending balance | 1,257,000 | 1,190,000 | 1,257,000 | 1,190,000 | ||
Allowance for credit losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,190,000 | 1,190,000 | ||||
Allowance for credit losses | 1,257,000 | 1,190,000 | 1,257,000 | 1,190,000 | 1,219,000 | 1,347,000 |
Loans | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 78,162,000 | 78,162,000 | ||||
Total | 122,702,000 | 78,162,000 | 122,702,000 | 78,162,000 | 95,556,000 | |
Real Estate Mortgage | Residential Multifamily | Accounting Standards Update 2016-13 | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | (128,000) | |||||
Allowance for credit losses | ||||||
Allowance for credit losses | (128,000) | |||||
Consumer | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 98,000 | 95,000 | 63,000 | 108,000 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provisions (benefits) | (37,000) | (55,000) | ||||
Provisions (benefits) | (15,000) | (28,000) | ||||
Ending balance | 61,000 | 80,000 | 61,000 | 80,000 | ||
Allowance for credit losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 80,000 | 80,000 | ||||
Allowance for credit losses | 61,000 | 80,000 | 61,000 | 80,000 | $ 116,000 | 63,000 |
Loans | ||||||
Individually evaluated for impairment | 70,000 | 70,000 | ||||
Collectively evaluated for impairment | 6,970,000 | 6,970,000 | ||||
Total | $ 5,925,000 | $ 7,040,000 | 5,925,000 | $ 7,040,000 | 6,731,000 | |
Consumer | Accounting Standards Update 2016-13 | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | $ 53,000 | |||||
Allowance for credit losses | ||||||
Allowance for credit losses | $ 53,000 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Collateral Held Loans (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | $ 4,392 |
Real Estate | Commercial and Industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 468 |
Real Estate | Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 1,091 |
Real Estate | Real Estate Mortgage | Commercial – Owner Occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 1,117 |
Real Estate | Real Estate Mortgage | Commercial – Non-owner Occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 1,716 |
Real Estate | Real Estate Mortgage | Residential – 1 to 4 Family | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Real Estate | Real Estate Mortgage | Residential – 1 to 4 Family Investment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Real Estate | Real Estate Mortgage | Residential – Multifamily | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Real Estate | Consumer | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Business Assets | Commercial and Industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Business Assets | Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Business Assets | Real Estate Mortgage | Commercial – Owner Occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Business Assets | Real Estate Mortgage | Commercial – Non-owner Occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Business Assets | Real Estate Mortgage | Residential – 1 to 4 Family | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Business Assets | Real Estate Mortgage | Residential – 1 to 4 Family Investment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Business Assets | Real Estate Mortgage | Residential – Multifamily | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Business Assets | Consumer | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Other | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Other | Commercial and Industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Other | Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Other | Real Estate Mortgage | Commercial – Owner Occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Other | Real Estate Mortgage | Commercial – Non-owner Occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Other | Real Estate Mortgage | Residential – 1 to 4 Family | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Other | Real Estate Mortgage | Residential – 1 to 4 Family Investment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Other | Real Estate Mortgage | Residential – Multifamily | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Other | Consumer | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Summary of Accounts Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | $ 1,800,023 | $ 1,679,357 | $ 1,800,023 | $ 1,679,357 | $ 1,751,459 |
Current period gross charge-offs | |||||
Total | 0 | 66 | 0 | 66 | |
Pass | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 1,732,156 | ||||
OAEM | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 3,027 | ||||
Substandard | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 16,276 | ||||
Doubtful | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 0 | ||||
Commercial and Industrial | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 4,435 | 4,435 | |||
2022 | 2,323 | 2,323 | |||
2021 | 109 | 109 | |||
2020 | 3,442 | 3,442 | |||
Prior | 7,550 | 7,550 | |||
Revolving Loans at Amortized Cost Basis | 14,109 | 14,109 | |||
Total | 31,968 | 29,407 | 31,968 | 29,407 | 32,383 |
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
Prior | 0 | ||||
Revolving Loans at Amortized Cost Basis | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Commercial and Industrial | Pass | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 4,435 | 4,435 | |||
2022 | 1,857 | 1,857 | |||
2021 | 109 | 109 | |||
2020 | 3,442 | 3,442 | |||
Prior | 7,550 | 7,550 | |||
Revolving Loans at Amortized Cost Basis | 14,109 | 14,109 | |||
Total | 31,502 | 31,502 | 32,383 | ||
Commercial and Industrial | OAEM | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | 0 | ||
Commercial and Industrial | Substandard | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 466 | 466 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 466 | 466 | 0 | ||
Commercial and Industrial | Doubtful | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | 0 | ||
Construction | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 324 | 324 | |||
2022 | 3,338 | 3,338 | |||
2021 | 4,500 | 4,500 | |||
2020 | 193 | 193 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 142,468 | 142,468 | |||
Total | 150,823 | 194,111 | 150,823 | 194,111 | 192,357 |
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
Prior | 0 | ||||
Revolving Loans at Amortized Cost Basis | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Construction | Pass | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 324 | 324 | |||
2022 | 3,338 | 3,338 | |||
2021 | 4,500 | 4,500 | |||
2020 | 193 | 193 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 141,377 | 141,377 | |||
Total | 149,732 | 149,732 | 191,266 | ||
Construction | OAEM | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | 0 | ||
Construction | Substandard | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 1,091 | 1,091 | |||
Total | 1,091 | 1,091 | 1,091 | ||
Construction | Doubtful | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | 0 | ||
Real Estate Mortgage | Commercial – Owner Occupied | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 19,546 | 19,546 | |||
2022 | 36,255 | 36,255 | |||
2021 | 21,678 | 21,678 | |||
2020 | 7,173 | 7,173 | |||
Prior | 56,207 | 56,207 | |||
Revolving Loans at Amortized Cost Basis | 2,378 | 2,378 | |||
Total | 143,237 | 130,106 | 143,237 | 130,106 | 125,950 |
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
Prior | 0 | ||||
Revolving Loans at Amortized Cost Basis | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Real Estate Mortgage | Commercial – Non-owner Occupied | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 14,572 | 14,572 | |||
2022 | 99,540 | 99,540 | |||
2021 | 41,751 | 41,751 | |||
2020 | 34,116 | 34,116 | |||
Prior | 193,064 | 193,064 | |||
Revolving Loans at Amortized Cost Basis | 1,179 | 1,179 | |||
Total | 384,222 | 347,543 | 384,222 | 347,543 | 377,452 |
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
Prior | 0 | ||||
Revolving Loans at Amortized Cost Basis | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Real Estate Mortgage | Residential – 1 to 4 Family | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 46,213 | 46,213 | |||
2022 | 118,758 | 118,758 | |||
2021 | 63,059 | 63,059 | |||
2020 | 33,701 | 33,701 | |||
Prior | 195,472 | 195,472 | |||
Revolving Loans at Amortized Cost Basis | 3,867 | 3,867 | |||
Total | 461,070 | 432,066 | 461,070 | 432,066 | 444,820 |
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
Prior | 0 | ||||
Revolving Loans at Amortized Cost Basis | 0 | ||||
Total | 0 | 66 | 0 | 66 | |
Real Estate Mortgage | Residential – 1 to 4 Family | Performing | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 46,213 | 46,213 | |||
2022 | 118,758 | 118,758 | |||
2021 | 63,059 | 63,059 | |||
2020 | 33,701 | 33,701 | |||
Prior | 195,472 | 195,472 | |||
Revolving Loans at Amortized Cost Basis | 3,867 | 3,867 | |||
Total | 461,070 | 461,070 | |||
Real Estate Mortgage | Residential – 1 to 4 Family | Nonperforming | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | |||
Real Estate Mortgage | Residential – 1 to 4 Family Investment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 63,774 | 63,774 | |||
2022 | 141,343 | 141,343 | |||
2021 | 118,955 | 118,955 | |||
2020 | 51,438 | 51,438 | |||
Prior | 124,566 | 124,566 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 500,076 | 460,922 | 500,076 | 460,922 | 476,210 |
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
Prior | 0 | ||||
Revolving Loans at Amortized Cost Basis | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | Performing | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 63,774 | 63,774 | |||
2022 | 141,343 | 141,343 | |||
2021 | 118,955 | 118,955 | |||
2020 | 51,438 | 51,438 | |||
Prior | 124,566 | 124,566 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 500,076 | 500,076 | |||
Real Estate Mortgage | Residential – 1 to 4 Family Investment | Nonperforming | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | |||
Real Estate Mortgage | Residential – Multifamily | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 497 | 497 | |||
2022 | 15,670 | 15,670 | |||
2021 | 43,669 | 43,669 | |||
2020 | 12,230 | 12,230 | |||
Prior | 50,636 | 50,636 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 122,702 | 78,162 | 122,702 | 78,162 | 95,556 |
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
Prior | 0 | ||||
Revolving Loans at Amortized Cost Basis | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Real Estate Mortgage | Pass | Commercial – Owner Occupied | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 19,546 | 19,546 | |||
2022 | 36,255 | 36,255 | |||
2021 | 21,678 | 21,678 | |||
2020 | 7,173 | 7,173 | |||
Prior | 55,090 | 55,090 | |||
Revolving Loans at Amortized Cost Basis | 2,378 | 2,378 | |||
Total | 142,120 | 142,120 | 122,523 | ||
Real Estate Mortgage | Pass | Commercial – Non-owner Occupied | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 14,572 | 14,572 | |||
2022 | 99,540 | 99,540 | |||
2021 | 41,751 | 41,751 | |||
2020 | 34,116 | 34,116 | |||
Prior | 175,389 | 175,389 | |||
Revolving Loans at Amortized Cost Basis | 1,179 | 1,179 | |||
Total | 366,547 | 366,547 | 362,899 | ||
Real Estate Mortgage | Pass | Residential – 1 to 4 Family | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 444,658 | ||||
Real Estate Mortgage | Pass | Residential – 1 to 4 Family Investment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 476,210 | ||||
Real Estate Mortgage | Pass | Residential – Multifamily | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 497 | 497 | |||
2022 | 15,670 | 15,670 | |||
2021 | 43,669 | 43,669 | |||
2020 | 12,230 | 12,230 | |||
Prior | 50,636 | 50,636 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 122,702 | 122,702 | 95,556 | ||
Real Estate Mortgage | OAEM | Commercial – Owner Occupied | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | 3,027 | ||
Real Estate Mortgage | OAEM | Commercial – Non-owner Occupied | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | 0 | ||
Real Estate Mortgage | OAEM | Residential – 1 to 4 Family | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 0 | ||||
Real Estate Mortgage | OAEM | Residential – 1 to 4 Family Investment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 0 | ||||
Real Estate Mortgage | OAEM | Residential – Multifamily | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | 0 | ||
Real Estate Mortgage | Substandard | Commercial – Owner Occupied | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 1,117 | 1,117 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 1,117 | 1,117 | 400 | ||
Real Estate Mortgage | Substandard | Commercial – Non-owner Occupied | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 17,675 | 17,675 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 17,675 | 17,675 | 14,553 | ||
Real Estate Mortgage | Substandard | Residential – 1 to 4 Family | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 162 | ||||
Real Estate Mortgage | Substandard | Residential – 1 to 4 Family Investment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 0 | ||||
Real Estate Mortgage | Substandard | Residential – Multifamily | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | 0 | ||
Real Estate Mortgage | Doubtful | Commercial – Owner Occupied | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | 0 | ||
Real Estate Mortgage | Doubtful | Commercial – Non-owner Occupied | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | 0 | ||
Real Estate Mortgage | Doubtful | Residential – 1 to 4 Family | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 0 | ||||
Real Estate Mortgage | Doubtful | Residential – 1 to 4 Family Investment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 0 | ||||
Real Estate Mortgage | Doubtful | Residential – Multifamily | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | 0 | ||
Consumer | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 5,909 | 5,909 | |||
Revolving Loans at Amortized Cost Basis | 16 | 16 | |||
Total | 5,925 | 7,040 | 5,925 | 7,040 | 6,731 |
Current period gross charge-offs | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
Prior | 0 | ||||
Revolving Loans at Amortized Cost Basis | 0 | ||||
Total | 0 | $ 0 | 0 | $ 0 | |
Consumer | Performing | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 5,909 | 5,909 | |||
Revolving Loans at Amortized Cost Basis | 16 | 16 | |||
Total | 5,925 | 5,925 | |||
Consumer | Nonperforming | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans at Amortized Cost Basis | 0 | 0 | |||
Total | $ 0 | $ 0 | |||
Consumer | Pass | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 6,661 | ||||
Consumer | OAEM | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 0 | ||||
Consumer | Substandard | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | 70 | ||||
Consumer | Doubtful | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Total | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) loan | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Mortgage loans in process of foreclosure, amount | $ | $ 2.8 |
Real Estate Mortgage | Commercial – Owner Occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Number of loans | 2 |
Real Estate Mortgage | Commercial – Non-owner Occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Number of loans | 2 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | $ 1,800,023 | $ 1,751,459 | $ 1,679,357 |
Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 1,732,156 | ||
OAEM | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 3,027 | ||
Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 16,276 | ||
Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | ||
Commercial and Industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 31,968 | 32,383 | 29,407 |
Commercial and Industrial | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 31,502 | 32,383 | |
Commercial and Industrial | OAEM | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Commercial and Industrial | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 466 | 0 | |
Commercial and Industrial | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Construction | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 150,823 | 192,357 | 194,111 |
Construction | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 149,732 | 191,266 | |
Construction | OAEM | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Construction | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 1,091 | 1,091 | |
Construction | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Commercial – Owner Occupied | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 143,237 | 125,950 | 130,106 |
Real Estate Mortgage | Commercial – Owner Occupied | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 142,120 | 122,523 | |
Real Estate Mortgage | Commercial – Owner Occupied | OAEM | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | 3,027 | |
Real Estate Mortgage | Commercial – Owner Occupied | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 1,117 | 400 | |
Real Estate Mortgage | Commercial – Owner Occupied | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Commercial – Non-owner Occupied | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 384,222 | 377,452 | 347,543 |
Real Estate Mortgage | Commercial – Non-owner Occupied | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 366,547 | 362,899 | |
Real Estate Mortgage | Commercial – Non-owner Occupied | OAEM | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Commercial – Non-owner Occupied | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 17,675 | 14,553 | |
Real Estate Mortgage | Commercial – Non-owner Occupied | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Residential – 1 to 4 Family | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 461,070 | 444,820 | 432,066 |
Real Estate Mortgage | Residential – 1 to 4 Family | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 444,658 | ||
Real Estate Mortgage | Residential – 1 to 4 Family | OAEM | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | ||
Real Estate Mortgage | Residential – 1 to 4 Family | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 162 | ||
Real Estate Mortgage | Residential – 1 to 4 Family | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | ||
Real Estate Mortgage | Residential – 1 to 4 Family Investment | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 500,076 | 476,210 | 460,922 |
Real Estate Mortgage | Residential – 1 to 4 Family Investment | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 476,210 | ||
Real Estate Mortgage | Residential – 1 to 4 Family Investment | OAEM | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | ||
Real Estate Mortgage | Residential – 1 to 4 Family Investment | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | ||
Real Estate Mortgage | Residential – 1 to 4 Family Investment | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | ||
Real Estate Mortgage | Residential – Multifamily | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 122,702 | 95,556 | 78,162 |
Real Estate Mortgage | Residential – Multifamily | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 122,702 | 95,556 | |
Real Estate Mortgage | Residential – Multifamily | OAEM | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Residential – Multifamily | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Real Estate Mortgage | Residential – Multifamily | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | 0 | |
Consumer | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | $ 5,925 | 6,731 | $ 7,040 |
Consumer | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 6,661 | ||
Consumer | OAEM | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 0 | ||
Consumer | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | 70 | ||
Consumer | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans, net of unearned income | $ 0 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Loans Modified to Borrowers Experiencing Financial Difficulty (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | $ 15,346 |
Term Extension | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 0 |
More-Than-Insignificant Payment Delay | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 0 |
Interest Rate Reduction | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 0 |
Other | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 15,346 |
Commercial and Industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Performance of loan modified last 12 months | 15,346 |
Commercial and Industrial | Current | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Performance of loan modified last 12 months | 15,346 |
Commercial and Industrial | 30-89 Days Past Due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Performance of loan modified last 12 months | 0 |
Commercial and Industrial | Greater than 90 Days Past Due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Performance of loan modified last 12 months | 0 |
Commercial and Industrial | Commercial – Non-owner Occupied | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | $ 15,346 |
% of Total Loan Category | 4% |
Performance of loan modified last 12 months | $ 15,346 |
Commercial and Industrial | Commercial – Non-owner Occupied | Current | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Performance of loan modified last 12 months | 15,346 |
Commercial and Industrial | Commercial – Non-owner Occupied | 30-89 Days Past Due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Performance of loan modified last 12 months | 0 |
Commercial and Industrial | Commercial – Non-owner Occupied | Greater than 90 Days Past Due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Performance of loan modified last 12 months | 0 |
Commercial and Industrial | Commercial – Non-owner Occupied | Term Extension | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 0 |
Commercial and Industrial | Commercial – Non-owner Occupied | More-Than-Insignificant Payment Delay | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 0 |
Commercial and Industrial | Commercial – Non-owner Occupied | Interest Rate Reduction | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 0 |
Commercial and Industrial | Commercial – Non-owner Occupied | Other | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | $ 15,346 |
EARNINGS PER SHARE ("EPS") (Det
EARNINGS PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic earnings per common share | ||||
Net income available to the Company | $ 1,029 | $ 10,540 | $ 20,289 | $ 31,369 |
Less: Dividend on series B preferred stock | (7) | (7) | (20) | (20) |
Net income available to common shareholders | $ 1,022 | $ 10,533 | $ 20,269 | $ 31,349 |
Basic weighted-average common shares outstanding (in shares) | 11,945,844 | 11,919,472 | 11,945,144 | 11,913,085 |
Basic earnings per common share (in dollars per share) | $ 0.09 | $ 0.88 | $ 1.70 | $ 2.63 |
Diluted earnings per common share | ||||
Net income available to common shares | $ 1,022 | $ 10,533 | $ 20,269 | $ 31,349 |
Add: Dividend on series B preferred stock | 7 | 7 | 20 | 20 |
Net income available to diluted common shares | $ 1,029 | $ 10,540 | $ 20,289 | $ 31,369 |
Basic weighted-average common shares outstanding (in shares) | 11,945,844 | 11,919,472 | 11,945,144 | 11,913,085 |
Dilutive potential common shares (in shares) | 185,981 | 250,672 | 192,064 | 265,487 |
Diluted weighted-average common shares outstanding (in shares) | 12,131,825 | 12,170,144 | 12,137,208 | 12,178,572 |
Diluted earnings per common share (in dollars per share) | $ 0.08 | $ 0.87 | $ 1.67 | $ 2.58 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 7,271 | $ 9,366 |
Corporate debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities AFS | 500 | |
Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities AFS | 7,271 | 8,866 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 1 | Corporate debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities AFS | 0 | |
Level 1 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities AFS | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 7,271 | 9,366 |
Level 2 | Corporate debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities AFS | 500 | |
Level 2 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities AFS | 7,271 | 8,866 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 | Corporate debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities AFS | 0 | |
Level 3 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities AFS | $ 0 | $ 0 |
FAIR VALUE - Fair Value on a No
FAIR VALUE - Fair Value on a Non-recurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | $ 1,091 | $ 1,091 |
OREO | 1,550 | 1,550 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 0 | 0 |
OREO | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 0 | 0 |
OREO | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 1,091 | 1,091 |
OREO | $ 1,550 | $ 1,550 |
FAIR VALUE - Carrying Value and
FAIR VALUE - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Investment securities HTM | $ 7,285 | $ 7,805 |
Carrying Amount | ||
Financial Assets: | ||
Investment securities HTM | 9,319 | 9,378 |
Loans, net | 1,767,704 | 1,719,614 |
Financial Liabilities: | ||
Time deposits | 627,893 | 603,135 |
Borrowings | 154,213 | 126,071 |
Fair Value | ||
Financial Assets: | ||
Investment securities HTM | 7,285 | 7,805 |
Loans, net | 1,732,007 | 1,661,974 |
Financial Liabilities: | ||
Time deposits | 622,510 | 609,097 |
Borrowings | 158,730 | 127,254 |
Fair Value | Level 1 | ||
Financial Assets: | ||
Investment securities HTM | 0 | 0 |
Loans, net | 0 | 0 |
Financial Liabilities: | ||
Time deposits | 0 | 0 |
Borrowings | 0 | 0 |
Fair Value | Level 2 | ||
Financial Assets: | ||
Investment securities HTM | 7,285 | 7,805 |
Loans, net | 1,710,241 | 1,641,444 |
Financial Liabilities: | ||
Time deposits | 622,510 | 609,097 |
Borrowings | 158,730 | 127,254 |
Fair Value | Level 3 | ||
Financial Assets: | ||
Investment securities HTM | 0 | 0 |
Loans, net | 21,766 | 20,530 |
Financial Liabilities: | ||
Time deposits | 0 | 0 |
Borrowings | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 29, 2023 | Jul. 06, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | |||||
Off-balance-sheet, credit exposure | $ 760,000 | ||||
Deposits | 1,532,981,000 | $ 1,575,981,000 | |||
Loans, net of unearned income | 1,800,023,000 | 1,751,459,000 | $ 1,679,357,000 | ||
Cannabis related loan | |||||
Debt Instrument [Line Items] | |||||
Loans, net of unearned income | 26,700,000 | 3,800,000 | |||
Cannabis Customers | |||||
Debt Instrument [Line Items] | |||||
Deposits | $ 93,900,000 | $ 177,300,000 | |||
Product concentration risk | Deposits | Cannabis Customers | |||||
Debt Instrument [Line Items] | |||||
Concentration risk, percentage | 6.10% | 11.30% | |||
Customer concentration risk | Medical use cannabis customers, deposit balances | Two customers | |||||
Debt Instrument [Line Items] | |||||
Concentration risk, percentage | 56% | 36.90% | |||
Line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | $ 50,000,000 | |||
Line of credit, outstanding | $ 0 | ||||
Commitments to extend credit | |||||
Debt Instrument [Line Items] | |||||
Off-balance sheet commitments | 113,700,000 | $ 159,000,000 | |||
Standby letters of credit | |||||
Debt Instrument [Line Items] | |||||
Off-balance sheet commitments | $ 1,500,000 | $ 1,500,000 |