Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 01, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | ENB Financial Corp | |
Entity Central Index Key | 0001437479 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | PA | |
Entity File Number | 000-53297 | |
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 | 5,556,413 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
ASSETS | |||
Cash and due from banks | $ 19,979 | $ 24,304 | $ 23,856 |
Interest-bearing deposits in other banks | 24,347 | 16,749 | 17,334 |
Total cash and cash equivalents | 44,326 | 41,053 | 41,190 |
Securities available for sale (at fair value) | 360,029 | 308,097 | 298,983 |
Equity securities (at fair value) | 6,854 | 6,708 | 6,108 |
Loans held for sale | 5,008 | 2,342 | 1,578 |
Loans (net of unearned income) | 843,177 | 753,618 | 738,104 |
Less: Allowance for loan losses | 11,996 | 9,447 | 9,474 |
Net loans | 831,181 | 744,171 | 728,630 |
Premises and equipment | 24,696 | 25,033 | 25,247 |
Regulatory stock | 6,525 | 7,291 | 7,200 |
Bank owned life insurance | 29,418 | 28,818 | 28,610 |
Other assets | 8,964 | 8,237 | 8,452 |
Total assets | 1,317,001 | 1,171,750 | 1,145,998 |
Deposits: | |||
Noninterest-bearing | 465,247 | 363,857 | 347,929 |
Interest-bearing | 661,574 | 610,231 | 599,062 |
Total deposits | 1,126,821 | 974,088 | 946,991 |
Short-term borrowings | 1,500 | 200 | |
Long-term debt | 60,010 | 77,872 | 79,989 |
Other liabilities | 3,362 | 2,902 | 3,381 |
Total liabilities | 1,191,693 | 1,055,062 | 1,030,361 |
Stockholders' equity: | |||
Common stock, par value $0.10 Shares: Authorized 24,000,000 Issued 5,739,114 and Outstanding 5,566,413 as of 9/30/20, 5,640,742 as of 12/31/19, and 5,677,161 as of 9/30/19 | 574 | 574 | 574 |
Capital surplus | 4,456 | 4,482 | 4,471 |
Retained earnings | 117,960 | 111,944 | 110,067 |
Accumulated other comprehensive income | 5,756 | 1,600 | 1,685 |
Less: Treasury stock cost on 172,700 shares as of 9/30/20, 98,372 as of 12/31/19, and 61,953 as of 9/30/19 | (3,438) | (1,912) | (1,160) |
Total stockholders' equity | 125,308 | 116,688 | 115,637 |
Total liabilities and stockholders' equity | $ 1,317,001 | $ 1,171,750 | $ 1,145,998 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | |||
Common stock, par value | $ 0.10 | $ 0.10 | $ 0.10 |
Common stock, authorized | 24,000,000 | 24,000,000 | 24,000,000 |
Common stock, issued | 5,739,114 | 5,739,114 | 5,739,114 |
Common stock, outstanding | 5,566,413 | 5,640,742 | 5,677,161 |
Treasury shares | 172,700 | 98,372 | 61,953 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 8,617 | $ 8,501 | $ 25,705 | $ 24,833 |
Interest on securities available for sale | ||||
Taxable | 920 | 1,179 | 3,207 | 3,696 |
Tax-exempt | 690 | 605 | 1,899 | 1,860 |
Interest on deposits at other banks | 31 | 128 | 112 | 294 |
Dividend income | 129 | 177 | 419 | 531 |
Total interest and dividend income | 10,387 | 10,590 | 31,342 | 31,214 |
Interest expense: | ||||
Interest on deposits | 430 | 889 | 1,782 | 2,626 |
Interest on borrowings | 415 | 412 | 1,333 | 1,158 |
Total interest expense | 845 | 1,301 | 3,115 | 3,784 |
Net interest income | 9,542 | 9,289 | 28,227 | 27,430 |
Provision for loan losses | 1,250 | 630 | 2,575 | 840 |
Net interest income after provision for loan losses | 8,292 | 8,659 | 25,652 | 26,590 |
Other income: | ||||
Trust and investment services income | 442 | 538 | 1,480 | 1,580 |
Service fees | 701 | 701 | 2,015 | 2,024 |
Commissions | 781 | 734 | 2,116 | 2,145 |
Gains on the sale of debt securities, net | 55 | 42 | 704 | 229 |
Gains (losses) on equity securities, net | (54) | 7 | (279) | 51 |
Gains on sale of mortgages | 2,081 | 606 | 4,312 | 1,370 |
Earnings on bank-owned life insurance | 209 | 186 | 620 | 543 |
Other income | 159 | 129 | 241 | 307 |
Total other income | 4,374 | 2,943 | 11,209 | 8,249 |
Operating expenses: | ||||
Salaries and employee benefits | 5,860 | 5,227 | 16,522 | 15,520 |
Occupancy | 598 | 605 | 1,805 | 1,825 |
Equipment | 298 | 297 | 904 | 871 |
Advertising & marketing | 184 | 205 | 676 | 621 |
Computer software & data processing | 835 | 620 | 2,309 | 1,886 |
Shares tax | 239 | 233 | 718 | 698 |
Professional services | 549 | 448 | 1,679 | 1,479 |
Other expense | 635 | 493 | 1,939 | 1,727 |
Total operating expenses | 9,198 | 8,128 | 26,552 | 24,627 |
Income before income taxes | 3,468 | 3,474 | 10,309 | 10,212 |
Provision for federal income taxes | 533 | 550 | 1,610 | 1,596 |
Net income | $ 2,935 | $ 2,924 | $ 8,699 | $ 8,616 |
Earnings per share of common stock | $ 0.53 | $ 0.51 | $ 1.56 | $ 1.51 |
Cash dividends paid per share | $ 0.160 | $ 0.155 | $ 0.480 | $ 0.46 |
Weighted average shares outstanding | 5,564,158 | 5,685,679 | 5,591,027 | 5,690,788 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,935 | $ 2,924 | $ 8,699 | $ 8,616 |
Securities available for sale not other-than-temporarily impaired: | ||||
Unrealized gains arising during the period | 1,616 | 1,798 | 5,962 | 9,549 |
Income tax effect | (339) | (378) | (1,250) | (2,005) |
Total | 1,277 | 1,420 | 4,712 | 7,544 |
Gains recognized in earnings | (55) | (42) | (704) | (229) |
Income tax effect | 12 | 9 | 148 | 48 |
Total | (43) | (33) | (556) | (181) |
Other comprehensive income, net of tax | 1,234 | 1,387 | 4,156 | 7,363 |
Comprehensive Income | $ 4,169 | $ 4,311 | $ 12,855 | $ 15,979 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance, beginning at Dec. 31, 2018 | $ 574 | $ 4,435 | $ 104,067 | $ (5,678) | $ (596) | $ 102,802 |
Net income | 2,603 | 2,603 | ||||
Other comprehensive income (loss) net of tax | 2,489 | 2,489 | ||||
Treasury stock purchased | (330) | (330) | ||||
Treasury stock issued | 3 | 143 | 146 | |||
Cash dividends paid | (852) | (852) | ||||
Balance, ending at Mar. 31, 2019 | 574 | 4,438 | 105,818 | (3,189) | (783) | 106,858 |
Balance, beginning at Dec. 31, 2018 | 574 | 4,435 | 104,067 | (5,678) | (596) | 102,802 |
Net income | 8,616 | |||||
Balance, ending at Sep. 30, 2019 | 574 | 4,471 | 110,067 | 1,685 | (1,160) | 115,637 |
Balance, beginning at Mar. 31, 2019 | 574 | 4,438 | 105,818 | (3,189) | (783) | 106,858 |
Net income | 3,089 | 3,089 | ||||
Other comprehensive income (loss) net of tax | 3,487 | 3,487 | ||||
Treasury stock purchased | (204) | (204) | ||||
Treasury stock issued | 16 | 151 | 167 | |||
Cash dividends paid | (883) | (883) | ||||
Balance, ending at Jun. 30, 2019 | 574 | 4,454 | 108,024 | 298 | (836) | 112,514 |
Net income | 2,924 | 2,924 | ||||
Other comprehensive income (loss) net of tax | 1,387 | 1,387 | ||||
Treasury stock purchased | (457) | (457) | ||||
Treasury stock issued | 17 | 133 | 150 | |||
Cash dividends paid | (881) | (881) | ||||
Balance, ending at Sep. 30, 2019 | 574 | 4,471 | 110,067 | 1,685 | (1,160) | 115,637 |
Balance, beginning at Dec. 31, 2019 | 574 | 4,482 | 111,944 | 1,600 | (1,912) | 116,688 |
Net income | 2,165 | 2,165 | ||||
Other comprehensive income (loss) net of tax | (497) | (497) | ||||
Treasury stock purchased | (1,098) | (1,098) | ||||
Treasury stock issued | (6) | 156 | 150 | |||
Cash dividends paid | (902) | (902) | ||||
Balance, ending at Mar. 31, 2020 | 574 | 4,476 | 113,207 | 1,103 | (2,854) | 116,506 |
Balance, beginning at Dec. 31, 2019 | 574 | 4,482 | 111,944 | 1,600 | (1,912) | 116,688 |
Net income | 8,699 | |||||
Balance, ending at Sep. 30, 2020 | 574 | 4,456 | 117,960 | 5,756 | (3,438) | 125,308 |
Balance, beginning at Mar. 31, 2020 | 574 | 4,476 | 113,207 | 1,103 | (2,854) | 116,506 |
Net income | 3,599 | 3,599 | ||||
Other comprehensive income (loss) net of tax | 3,419 | 3,419 | ||||
Treasury stock purchased | (627) | (627) | ||||
Treasury stock issued | (10) | 167 | 157 | |||
Cash dividends paid | (892) | (892) | ||||
Balance, ending at Jun. 30, 2020 | 574 | 4,466 | 115,914 | 4,522 | (3,314) | 122,162 |
Net income | 2,935 | 2,935 | ||||
Other comprehensive income (loss) net of tax | 1,234 | 1,234 | ||||
Treasury stock purchased | (304) | (304) | ||||
Treasury stock issued | (10) | 180 | 170 | |||
Cash dividends paid | (889) | (889) | ||||
Balance, ending at Sep. 30, 2020 | $ 574 | $ 4,456 | $ 117,960 | $ 5,756 | $ (3,438) | $ 125,308 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Treasury stock purchased, shares | 16,526 | 32,966 | 49,911 | 22,400 | 29,366 | 18,800 |
Treasury stock issued, shares | 9,050 | 8,354 | 7,670 | 7,177 | 16,686 | 8,188 |
Cash dividends paid, per share | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.155 | $ 0.155 | $ 0.15 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 8,699 | $ 8,616 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of securities premiums and discounts and loan fees | 2,173 | 2,592 |
Amortization of operating leases right-of-use assets | 134 | 131 |
Increase in interest receivable | (586) | (76) |
(Decrease) increase in interest payable | (162) | 119 |
Provision for loan losses | 2,575 | 840 |
Gains on the sale of debt securities, net | (704) | (229) |
Loss (gain) on equity securities, net | 279 | (51) |
Gains on sale of mortgages | (4,312) | (1,370) |
Loans originated for sale | (101,044) | (35,657) |
Proceeds from sales of loans | 102,690 | 36,878 |
Earnings on bank-owned life insurance | (620) | (543) |
Depreciation of premises and equipment and amortization of software | 1,137 | 1,171 |
Deferred income tax | (586) | (416) |
Other assets and other liabilities, net | (111) | 828 |
Net cash provided by operating activities | 9,562 | 12,833 |
Securities available for sale: | ||
Proceeds from maturities, calls, and repayments | 51,451 | 20,908 |
Proceeds from sales | 50,819 | 35,818 |
Purchases | (150,728) | (54,437) |
Equity securities | ||
Proceeds from sales | 168 | |
Purchases | (425) | (163) |
Purchase of regulatory bank stock | (1,225) | (2,749) |
Redemptions of regulatory bank stock | 1,991 | 1,897 |
Net increase in loans | (89,270) | (44,441) |
Purchases of premises and equipment, net | (705) | (787) |
Purchase of computer software | (133) | (68) |
Net cash used for investing activities | (138,225) | (43,854) |
Cash flows from financing activities: | ||
Net increase in demand, NOW, and savings accounts | 165,296 | 23,701 |
Net (decrease) increase in time deposits | (12,563) | 3,556 |
Net increase (decrease) in short-term borrowings | 1,300 | (7,870) |
Proceeds from long-term debt | 12,984 | 24,723 |
Repayments of long-term debt | (30,846) | (10,120) |
Dividends paid | (2,683) | (2,616) |
Proceeds from sale of treasury stock | 477 | 463 |
Treasury stock purchased | (2,029) | (991) |
Net cash provided by financing activities | 131,936 | 30,846 |
Increase in cash and cash equivalents | 3,273 | (175) |
Cash and cash equivalents at beginning of period | 41,053 | 41,365 |
Cash and cash equivalents at end of period | 44,326 | 41,190 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 3,277 | 3,664 |
Income taxes paid | 2,225 | 1,300 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Fair value adjustments for securities available for sale | (5,258) | (9,320) |
Initial recognition of operating right-of-use assets | 1,075 | |
Initial recognition of operating lease liabilities | $ 1,075 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and to general practices within the banking industry. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all significant adjustments considered necessary for fair presentation have been included. Certain items previously reported have been reclassified to conform to the current period’s reporting format. Such reclassifications did not affect net income or stockholders’ equity. ENB Financial Corp (“the Corporation”) is the bank holding company for its wholly-owned subsidiary Ephrata National Bank (the “Bank”). This Form 10-Q, for the third quarter of 2020, is reporting on the results of operations and financial condition of ENB Financial Corp. Operating results for the three and nine months ended September 30, 2020, are not necessarily indicative of the results that may be expected for the year ended December 31, 2020. For further information, refer to the consolidated financial statements and footnotes thereto included in ENB Financial Corp’s Annual Report on Form 10-K for the year ended December 31, 2019. Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Topic 606, Revenue from Contracts with Customers (Topic 606). The Corporation’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Corporation generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. |
Securities Available for Sale
Securities Available for Sale | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | 2. Securities Available for Sale The amortized cost, gross unrealized gains and losses, and fair value of securities held at September 30, 2020, and December 31, 2019, are as follows: Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ September 30, 2020 U.S. government agencies 8,216 157 — 8,373 U.S. agency mortgage-backed securities 64,263 1,492 (91 ) 65,664 U.S. agency collateralized mortgage obligations 40,236 758 (89 ) 40,905 Asset-backed securities 41,892 82 (921 ) 41,053 Corporate bonds 59,436 1,308 (30 ) 60,714 Obligations of states and political subdivisions 138,701 4,889 (270 ) 143,320 Total securities available for sale 352,744 8,686 (1,401 ) 360,029 December 31, 2019 U.S. government agencies 32,621 31 (28 ) 32,624 U.S. agency mortgage-backed securities 48,859 215 (448 ) 48,626 U.S. agency collateralized mortgage obligations 60,124 323 (194 ) 60,253 Asset-backed securities 23,646 7 (391 ) 23,262 Corporate bonds 54,604 316 (40 ) 54,880 Obligations of states and political subdivisions 86,216 2,245 (9 ) 88,452 Total securities available for sale 306,070 3,137 (1,110 ) 308,097 The amortized cost and fair value of securities available for sale at September 30, 2020, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to certain call or prepayment provisions. CONTRACTUAL MATURITY OF DEBT SECURITIES (DOLLARS IN THOUSANDS) Amortized Cost Fair Value $ $ Due in one year or less 47,256 47,804 Due after one year through five years 103,969 106,143 Due after five years through ten years 49,683 50,428 Due after ten years 151,836 155,654 Total debt securities 352,744 360,029 Securities available for sale with a par value of $80,235,000 and $66,712,000 at September 30, 2020, and December 31, 2019, respectively, were pledged or restricted for public funds, borrowings, or other purposes as required by law. The fair value of these pledged securities was $85,331,000 at September 30, 2020, and $68,732,000 at December 31, 2019. Proceeds from active sales of securities available for sale, along with the associated gross realized gains and gross realized losses, are shown below. Realized gains and losses are computed on the basis of specific identification. PROCEEDS FROM SALES OF SECURITIES AVAILABLE FOR SALE (DOLLARS IN THOUSANDS) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 $ $ $ $ Proceeds from sales 7,001 7,169 50,819 35,818 Gross realized gains 64 43 730 261 Gross realized losses (9 ) (1 ) (26 ) (32 ) Management evaluates all of the Corporation’s securities for other-than-temporary impairment (OTTI) on a periodic basis. No securities in the portfolio had other-than-temporary impairment recorded in the first nine months of 2020 or 2019. Information pertaining to securities with gross unrealized losses at September 30, 2020, and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: TEMPORARY IMPAIRMENTS OF SECURITIES (DOLLARS IN THOUSANDS) Less than 12 months More than 12 months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses $ $ $ $ $ $ As of September 30, 2020 U.S. government agencies — — — — — — U.S. agency mortgage-backed securities 10,586 (75 ) 2,561 (16 ) 13,147 (91 ) U.S. agency collateralized mortgage obligations 14,940 (89 ) — — 14,940 (89 ) Asset-backed securities 13,031 (257 ) 16,749 (664 ) 29,780 (921 ) Corporate bonds — — 3,001 (30 ) 3,001 (30 ) Obligations of states & political subdivisions 22,673 (270 ) — — 22,673 (270 ) Total temporarily impaired securities 61,230 (691 ) 22,311 (710 ) 83,541 (1,401 ) As of December 31, 2019 U.S. government agencies 1,222 (3 ) 15,971 (25 ) 17,193 (28 ) U.S. agency mortgage-backed securities 5,040 (32 ) 24,027 (416 ) 29,067 (448 ) U.S. agency collateralized mortgage obligations 17,457 (50 ) 17,512 (144 ) 34,969 (194 ) Asset-backed securities 10,278 (169 ) 9,126 (222 ) 19,404 (391 ) Corporate bonds 2,562 (4 ) 13,041 (36 ) 15,603 (40 ) Obligations of states & political subdivisions 2,642 (9 ) — — 2,642 (9 ) Total temporarily impaired securities 39,201 (267 ) 79,677 (843 ) 118,878 (1,110 ) In the debt security portfolio there were 49 positions that were carrying unrealized losses as of September 30, 2020. There were no instruments considered to be other-than-temporarily impaired at September 30, 2020. The Corporation evaluates fixed maturity positions for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic and market concerns warrant such evaluation. U.S. generally accepted accounting principles provide for the bifurcation of OTTI into two categories: (a) the amount of the total OTTI related to a decrease in cash flows expected to be collected from the debt security (the credit loss), which is recognized in earnings, and (b) the amount of total OTTI related to all other factors, which is recognized, net of taxes, as a component of accumulated other comprehensive income. |
Equity Securities
Equity Securities | 9 Months Ended |
Sep. 30, 2020 | |
Marketable Securities [Abstract] | |
Equity Securities | 3. Equity Securities The following table summarizes the amortized cost, gross unrealized gains and losses, and fair value of equity securities held at September 30, 2020 and December 31, 2019. Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ September 30, 2020 CRA-qualified mutual funds 6,162 — — 6,162 Bank stocks 947 — (255 ) 692 Total equity securities 7,109 — (255 ) 6,854 Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2019 CRA-qualified mutual funds 6,071 — — 6,071 Bank stocks 614 26 (3 ) 637 Total equity securities 6,685 26 (3 ) 6,708 The following table presents the net gains and losses on the Corporation’s equity investments recognized in earnings during the three and nine months ended September 30, 2020 and 2019, and the portion of unrealized gains and losses for the period that relates to equity investments held as of September 30, 2020 and 2019. NET GAINS AND LOSSES ON EQUITY INVESTMENTS RECOGNIZED IN EARNINGS (DOLLARS IN THOUSANDS) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 $ $ $ $ Net gains (losses) recognized in equity securities during the period (54 ) (9 ) (279 ) 35 Less: Net gains realized on the sale of equity securities during the period — 16 — 16 Unrealized gains (losses) recognized in equity securities held at reporting date (54 ) 7 (279 ) 51 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 4. Loans and Allowance for Loan Losses The following table presents the Corporation’s loan portfolio by category of loans as of September 30, 2020, and December 31, 2019: LOAN PORTFOLIO (DOLLARS IN THOUSANDS) September 30, December 31, 2020 2019 $ $ Commercial real estate Commercial mortgages 136,125 120,212 Agriculture mortgages 174,150 175,367 Construction 22,380 16,209 Total commercial real estate 332,655 311,788 Consumer real estate (a) 1-4 family residential mortgages 260,465 258,676 Home equity loans 10,788 9,770 Home equity lines of credit 68,368 70,809 Total consumer real estate 339,621 339,255 Commercial and industrial Commercial and industrial 128,414 58,019 Tax-free loans 16,423 16,388 Agriculture loans 20,494 20,804 Total commercial and industrial 165,331 95,211 Consumer 5,190 5,416 Gross loans prior to deferred fees 842,797 751,670 Deferred loan costs, net 380 1,948 Allowance for loan losses (11,996 ) (9,447 ) Total net loans 831,181 744,171 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $217,812,000 and $154,577,000 as of September 30, 2020, and December 31, 2019, respectively. The largest movement within the Corporation’s loan portfolio since December 31, 2019 was the sharp growth in the commercial and industrial loan sector, which experienced a $70.1 million, or 73.6% increase. This was a direct result of the Small Business Administration’s new Paycheck Protection Program (PPP) established as part of the CARES Act passed in March 2020, to provide relief to small businesses from the impact of COVID-19. The Corporation began making these loans in early April 2020, and by September 30, 2020 had $77.7 million in PPP loan balances. The majority of these loans have been written with a two-year term, however management expects the vast majority of these loans to be forgiven by the SBA, or paid off by the borrower, prior to maturity of the loan. As a result, management expects the commercial and industrial loan balances to decline by December 31, 2020 with further declines during 2021. The Corporation grades commercial credits differently than consumer credits. The following tables represent all of the Corporation’s commercial credit exposures by internally assigned grades as of September 30, 2020 and December 31, 2019. The grading analysis estimates the capability of the borrower to repay the contractual obligations under the loan agreements as scheduled. The Corporation's internal commercial credit risk grading system is based on experiences with similarly graded loans. The Corporation's internally assigned grades for commercial credits are as follows: · Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. · Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem, if not corrected. · Substandard – loans that have a well-defined weakness based on objective evidence and characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. · Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. · Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted. COMMERCIAL CREDIT EXPOSURE CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE (DOLLARS IN THOUSANDS) September 30, 2020 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 126,713 160,772 20,884 117,506 16,423 18,646 460,944 Special Mention 3,500 2,630 1,496 5,779 — 826 14,231 Substandard 5,912 10,748 — 5,129 — 1,022 22,811 Doubtful — — — — — — — Loss — — — — — — — Total 136,125 174,150 22,380 128,414 16,423 20,494 497,986 December 31, 2019 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 117,875 158,896 16,209 52,028 16,388 18,530 379,926 Special Mention 827 4,546 — 618 — 939 6,930 Substandard 1,510 11,925 — 5,293 — 1,335 20,063 Doubtful — — — 80 — — 80 Loss — — — — — — — Total 120,212 175,367 16,209 58,019 16,388 20,804 406,999 Substandard loans increased by $2,748,000, or 13.7%, while special mention loans have increased by $7,301,000, or 105.4%, from December 31, 2019 to September 30, 2020. Substandard loans increased from $20.1 million to $22.8 million from December 31, 2019, to September 30, 2020 while special mention loans increased from $6.9 million to $14.2 million during this same period. The loan areas that experienced material changes in special mention and substandard loans were commercial and industrial and commercial mortgages. Under commercial and industrial loans, one $3.5 million non-profit loan and another $1.5 million hotel loan to unrelated borrowers were transferred to special mention, along with a number of smaller loan relationships. During the third quarter of 2020, a bowling alley with a $3.6 million mortgage was downgraded from special mention to substandard. A total of sixteen loans were downgraded to substandard in the third quarter of 2020, twelve of which were downgraded from special mention. Special mention loans within agriculture declined from $5.5 million to $3.5 million; one farm customer with $1.8 million in outstanding loans was upgraded from special mention to a pass rating, while another customer with $754,000 in outstanding balances was downgraded from a pass rating to special mention. For consumer loans, the Corporation evaluates credit quality based on whether the loan is considered performing or non-performing. Non-performing loans consist of those loans greater than 90 days delinquent and nonaccrual loans. The following tables present the balances of consumer loans by classes of the loan portfolio based on payment performance as of September 30, 2020 and December 31, 2019: CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) September 30, 2020 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 259,710 10,696 68,358 5,182 343,946 Non-performing 755 92 10 8 865 Total 260,465 10,788 68,368 5,190 344,811 December 31, 2019 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 257,374 9,678 70,799 5,412 343,263 Non-performing 1,302 92 10 4 1,408 Total 258,676 9,770 70,809 5,416 344,671 The following tables present an age analysis of the Corporation’s past due loans, segregated by loan portfolio class, as of September 30, 2020 and December 31, 2019: AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Loans Greater Receivable > 30-59 Days 60-89 Days than 90 Total Past Total Loans 90 Days and September 30, 2020 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 210 210 135,915 136,125 — Agriculture mortgages 532 — — 532 173,618 174,150 — Construction — — — — 22,380 22,380 — Consumer real estate 1-4 family residential mortgages 1,080 — 755 1,835 258,630 260,465 266 Home equity loans — — 92 92 10,696 10,788 — Home equity lines of credit 68 — 10 78 68,290 68,368 10 Commercial and industrial Commercial and industrial 102 — 495 597 127,817 128,414 — Tax-free loans — — — — 16,423 16,423 — Agriculture loans 32 — — 32 20,462 20,494 — Consumer 14 9 8 31 5,159 5,190 8 Total 1,828 9 1,570 3,407 839,390 842,797 284 AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Loans Greater Receivable > 30-59 Days 60-89 Days than 90 Total Past Total Loans 90 Days and December 31, 2019 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 228 228 119,984 120,212 — Agriculture mortgages 962 — 1,070 2,032 173,335 175,367 — Construction — — — — 16,209 16,209 — Consumer real estate 1-4 family residential mortgages 2,254 161 1,302 3,717 254,959 258,676 807 Home equity loans 52 — 92 144 9,626 9,770 — Home equity lines of credit 43 — 10 53 70,756 70,809 10 Commercial and industrial Commercial and industrial 68 — 538 606 57,413 58,019 — Tax-free loans — — — — 16,388 16,388 — Agriculture loans 2 — — 2 20,802 20,804 — Consumer 14 12 4 30 5,386 5,416 4 Total 3,395 173 3,244 6,812 744,858 751,670 821 The following table presents nonaccrual loans by classes of the loan portfolio as of September 30, 2020 and December 31, 2019: NONACCRUAL LOANS BY LOAN CLASS (DOLLARS IN THOUSANDS) September 30, December 31, 2020 2019 $ $ Commercial real estate Commercial mortgages 210 228 Agriculture mortgages — 1,070 Construction — — Consumer real estate 1-4 family residential mortgages 489 495 Home equity loans 92 92 Home equity lines of credit — — Commercial and industrial Commercial and industrial 495 538 Tax-free loans — — Agriculture loans — — Consumer — — Total 1,286 2,423 As of September 30, 2020 and December 31, 2019, all of the Corporation’s commercial loans on nonaccrual status were also considered impaired. Information with respect to impaired loans for the three and nine months ended September 30, 2020 and September 30, 2019, is as follows: Three Months Ended September 30, Nine months ended September 30, 2020 2019 2020 2019 $ $ $ $ Average recorded balance of impaired loans 5,060 3,721 4,062 3,278 Interest income recognized on impaired loans 31 11 72 32 There was one loan modification made during the third quarter of 2020 that would be considered a troubled debt restructuring (TDR). One $3.6 million loan was restructured to provide relief to the commercial borrower by reducing the interest rate, providing a six-month interest only period, and extending the amortization period by an additional nine years. In addition to this TDR, deferments of principal related to the impact of COVID-19 did occur beginning in late March 2020, however these modifications are not considered a TDR under the revised COVID-19 regulatory guidance. There was one loan modification that occurred during the first quarter of 2019, constituting a TDR. A modification of the payment terms to a loan customer are considered a TDR if a concession was made to a borrower that is experiencing financial difficulty. A concession is generally defined as more favorable payment or credit terms granted to a borrower in an effort to improve the likelihood of the lender collecting principal in its entirety. Concessions usually are in the form of interest only for a period of time, or a lower interest rate offered in an effort to enable the borrower to continue to make normally scheduled payments. In the first quarter of 2019, a loan modification was made on a $718,000 agricultural mortgage which moved the timing of the annual principal payment and changed interest payments from monthly to annually. The farmer had suffered a fire loss in late 2018 impacting one year’s harvest. The principal and interest payment due date was reset to November 15, 2019, when it was paid. No other loans were modified during 2019 or 2020. Included in the impaired loan portfolio are three loans to unrelated borrowers that are being reported as TDRs. The balance of these three TDR loans was $1,932,000 as of September 30, 2020. One of these TDR loans with a balance of $439,000 is also on nonaccrual and is included under 1-4 family residential mortgages shown in the nonaccrual table above. For both of these TDR loans the borrowers have a history of being delinquent. Management will continue to report these loans as TDR loans until they have been paid off or charged off. The following tables summarize information regarding impaired loans by loan portfolio class as of September 30, 2020, and for the nine months ended September 30, 2020, and as of December 31, 2019: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) September 30, 2020 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 699 752 — 716 — Agriculture mortgages 1,492 1,521 — 1,972 41 Construction — — — — — Total commercial real estate 2,191 2,273 — 2,688 41 Commercial and industrial Commercial and industrial 495 523 — 524 17 Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 495 523 — 524 17 Total with no related allowance 2,686 2,796 — 3,212 58 With an allowance recorded: Commercial real estate Commercial mortgages 3,673 3,681 1,138 850 15 Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate 3,673 3,681 1,138 850 15 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance 3,673 3,681 1,138 850 15 Total by loan class: Commercial real estate Commercial mortgages 4,372 4,433 1,138 1,566 15 Agriculture mortgages 1,492 1,521 — 1,972 41 Construction — — — — — Total commercial real estate 5,864 5,954 1,138 3,538 56 Commercial and industrial Commercial and industrial 495 523 — 524 17 Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 495 523 — 524 17 Total 6,359 6,477 1,138 4,062 73 IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) December 31, 2019 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 724 765 — 859 — Agriculture mortgages 1,912 1,928 — 1,903 43 Construction — — — — — Total commercial real estate 2,636 2,693 — 2,762 43 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with no related allowance 2,636 2,693 — 2,762 43 With an allowance recorded: Commercial real estate Commercial mortgages 92 100 49 93 — Agriculture mortgages 718 718 60 760 — Construction — — — — — Total commercial real estate 810 818 109 853 — Commercial and industrial Commercial and industrial 538 549 80 261 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 538 549 80 261 — Total with a related allowance 1,348 1,367 189 1,114 — Total by loan class: Commercial real estate Commercial mortgages 816 865 49 952 — Agriculture mortgages 2,630 2,646 60 2,663 43 Construction — — — — — Total commercial real estate 3,446 3,511 109 3,615 43 Commercial and industrial Commercial and industrial 538 549 80 261 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 538 549 80 261 — Total 3,984 4,060 189 3,876 43 The following table details activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2020: ALLOWANCE FOR CREDIT LOSSES (DOLLARS IN THOUSANDS) Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance - December 31, 2019 4,319 2,855 1,784 41 448 9,447 Charge-offs — — — (6 ) — (6 ) Recoveries 11 — 1 — — 12 Provision 252 296 171 21 (390 ) 350 Balance - March 31, 2020 4,582 3,151 1,956 56 58 9,803 Charge-offs — — — (10 ) — (10 ) Recoveries — — 1 1 — 2 Provision 356 146 175 5 293 975 Ending Balance - June 30, 2020 4,938 3,297 2,132 52 351 10,770 Charge-offs — — (23 ) (3 ) — (26 ) Recoveries — — 1 1 — 2 Provision 1,289 75 (18 ) 4 (100 ) 1,250 Balance - September 30, 2020 6,227 3,372 2,092 54 251 11,996 During the nine months ended September 30, 2020, management charged off $42,000 in loans while recovering $16,000 and added $2,575,000 to the provision. The unallocated portion of the allowance decreased from 4.7% of total reserves as of December 31, 2019, to 2.1% as of September 30, 2020. Management monitors the unallocated portion of the allowance with a desire to maintain it at approximately 5% over the long term, with a requirement of it not to exceed 10%. During the nine months ended September 30, 2020, net provision expense was recorded for all sectors. The higher provision in the commercial real estate sector was due to a specific allocation of $1.1 million for a customer with ongoing business concerns. The higher provisions across the other categories were primarily caused by increasing the qualitative factors across all industry lines to various degrees as a result of the impact and effect from COVID-19 and the declining economic conditions. There were minimal charge-offs and recoveries recorded during the nine months ended September 30, 2020, so the provision expense was primarily related to the specific allocation as well as the change in economic conditions and potential for credit declines moving forward. The total amount of substandard loans at the end of the third quarter of 2020 was slightly higher resulting in slightly more provision expense. As of September 30, 2020, the Corporation’s total delinquencies were 0.40%, a decline from 0.91% at December 31, 2019. The Corporation’s total delinquencies continue to compare favorably to the national uniform bank performance group, which was at 1.05% as of December 31, 2019. Outside of the above measurements and indicators, management continues to utilize nine qualitative factors to continually refine the potential credit risks across the Corporation’s various loan types. In addition, the loan portfolio is sectored out into nine different categories to evaluate these qualitative factors. A total score of the qualitative factors for each loan sector is calculated to utilize in the allowance for loan loss calculation. The agricultural dairy sector carries the highest level of qualitative factors due to the long-term weakness in milk prices. While the dairy market has improved recently, COVID-19 initially caused a sharp decline in milk prices. T ALLOWANCE FOR CREDIT LOSSES (DOLLARS IN THOUSANDS) Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance - December 31, 2018 4,296 2,408 1,428 102 432 8,666 Charge-offs — — — (17 ) — (17 ) Recoveries 44 — 13 — — 57 Provision 148 (140 ) 128 16 28 180 Balance - March 31, 2019 4,488 2,268 1,569 101 460 8,886 Charge-offs — — — (6 ) — (6 ) Recoveries 43 — 1 3 — 47 Provision (114 ) 122 (204 ) (22 ) 248 30 Balance - June 30, 2019 4,417 2,390 1,366 76 708 8,957 Charge-offs (122 ) — (63 ) (3 ) — (188 ) Recoveries 41 1 33 — — 75 Provision 229 156 740 (19 ) (476 ) 630 Ending Balance - September 30, 2019 4,565 2,547 2,076 54 232 9,474 During the nine months ended September 30, 2019, management charged off $211,000 in loans while recovering $179,000 and added $840,000 to the provision. The unallocated portion of the allowance decreased from 5.3% of total reserves as of December 31, 2018, to 2.5% as of September 30, 2019, after being higher at the end of the first and second quarters. Management monitors the unallocated portion of the allowance with a desire to maintain it at approximately 5% or less, with a requirement of it not exceeding 10%. During the nine months ended September 30, 2019, net provision expense was recorded for all sectors except consumer, which had a net credit provision. In the third quarter of 2019, management recorded charge-offs in commercial real estate and the C&I sector, unlike in the first two quarters of 2019. This also pushed up the historic loss rate and caused higher allocations in the third quarter for those sectors. The total amount of substandard and special mention loans at the end of the second and third quarters of 2019 were similar for commercial mortgages, but agricultural mortgages increased for both special mention and substandard loans, requiring more provision. The Corporation’s commercial and industrial allocation for credit losses was increased by $740,000 in the third quarter of 2019, primarily due to the classification of one $547,000 loan to doubtful status, which caused a specific provision for the same amount. This C&I loan customer is current as to payment of interest on a commercial line of credit but the line has not revolved for several years. The Corporation does have a general UCC filing against all business assets but the majority of their inventory assets are already covered by a purchase money security interest of the manufacturer. Management will continue to classify the loan as doubtful until it can be determined that sufficient collateral exists to cover the loan, or sustainable principal payments can be made on the line. The following tables present the balance in the allowance for credit losses and the recorded investment in loans receivable by portfolio segment based on impairment method as of September 30, 2020 and December 31, 2019: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) As of September 30, 2020: Commercial Real Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 1,138 — — — — 1,138 Ending balance: collectively evaluated for impairment 5,089 3,372 2,092 54 251 10,858 Loans receivable: Ending balance 332,655 339,621 165,331 5,190 842,797 Ending balance: individually evaluated for impairment 5,864 — 495 — 6,359 Ending balance: collectively evaluated for impairment 326,791 339,621 164,836 5,190 836,438 As of December 31, 2019: Commercial Real Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 109 — 80 — — 189 Ending balance: collectively evaluated for impairment 4,210 2,855 1,704 41 448 9,258 Loans receivable: Ending balance 311,788 339,255 95,211 5,416 751,670 Ending balance: individually evaluated for impairment 3,446 — 538 — 3,984 Ending balance: collectively evaluated for impairment 308,342 339,255 94,673 5,416 747,686 |
Fair Value Presentation
Fair Value Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Presentation | 5. Fair Value Presentation U.S. generally accepted accounting principles establish a hierarchal disclosure framework associated with the level of observable pricing utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no observable pricing as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The following tables provide the fair market value for assets required to be measured and reported at fair value on a recurring basis on the Consolidated Balance Sheets as of September 30, 2020, and December 31, 2019, by level within the fair value hierarchy. As required by U.S. generally accepted accounting principles, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. ASSETS MEASURED ON A RECURRING BASIS (DOLLARS IN THOUSANDS) September 30, 2020 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 8,373 — 8,373 U.S. agency mortgage-backed securities — 65,664 — 65,664 U.S. agency collateralized mortgage obligations — 40,905 — 40,905 Asset-backed securities — 41,053 — 41,053 Corporate bonds — 60,714 — 60,714 Obligations of states & political subdivisions — 143,320 — 143,320 Equity securities 6,854 — — 6,854 Total securities 6,854 360,029 — 366,883 On September 30, 2020, the Corporation held no securities valued using level III inputs. All of the Corporation’s debt instruments were valued using level II inputs, where quoted prices are available and observable, but not necessarily quotes on identical securities traded in active markets on a daily basis. The Corporation’s CRA fund investments and bank stocks are fair valued utilizing level I inputs because the funds have their own quoted prices in an active market. As of September 30, 2020, the CRA fund investments had a $6,162,000 book and fair market value and the bank stock portfolio had a book value of $947,000, and fair market value of $692,000. Financial instruments are considered level III when their values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable. In addition to these unobservable inputs, the valuation models for level III financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. Level III financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. ASSETS MEASURED ON A RECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2019 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 32,624 — 32,624 U.S. agency mortgage-backed securities — 48,626 — 48,626 U.S. agency collateralized mortgage obligations — 60,253 — 60,253 Asset-backed securities — 23,262 — 23,262 Corporate bonds — 54,880 — 54,880 Obligations of states & political subdivisions — 88,452 — 88,452 Equity securities 6,708 — — 6,708 Total securities 6,708 308,097 — 314,805 On December 31, 2019, the Corporation held no securities valued using level III inputs. All of the Corporation’s debt instruments were valued using level II inputs, where quoted prices are available and observable but not necessarily quotes on identical securities traded in active markets on a daily basis. The Corporation’s CRA fund investments and bank stocks are fair valued utilizing level I inputs because the funds have their own quoted prices in an active market. As of December 31, 2019, the CRA fund investments had a $6,071,000 book and market value and the bank stocks had a book value of $614,000 and a market value of $637,000. The following tables provide the fair value for each class of assets required to be measured and reported at fair value on a nonrecurring basis on the Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, by level within the fair value hierarchy: ASSETS MEASURED ON A NONRECURRING BASIS ( Dollars in Thousands September 30, 2020 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans $ — $ — $ 5,221 $ 5,221 Total $ — $ — $ 5,221 $ 5,221 December 31, 2019 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans $ — $ — $ 3,795 $ 3,795 Total $ — $ — $ 3,795 $ 3,795 The Corporation had a total of $6,359,000 of impaired loans as of September 30, 2020, with $1,138,000 of specific allocation against these loans and $3,984,000 of impaired loans as of December 31, 2019, with $189,000 of specific allocation against these loans. The value of impaired loans is generally determined through independent appraisals of the underlying collateral. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized level III inputs to determine fair value: QUANTITATIVE INFORMATION ABOUT LEVEL III FAIR VALUE MEASUREMENTS (DOLLARS IN THOUSANDS) September 30, 2020 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 5,221 Appraisal of Appraisal -20% (-20%) collateral (1) adjustments (2) Liquidation -10% (-10%) expenses (2) December 31, 2019 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 3,795 Appraisal of Appraisal -20% (-20%) collateral (1) adjustments (2) Liquidation -10% (-10%) expenses (2) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The following table provides the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019: |
FINANCIAL INSTRUMENTS NOT REQUI
FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE | FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) September 30, 2020 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 44,326 44,326 44,326 — — Regulatory stock 6,525 6,525 6,525 — — Loans held for sale 5,008 5,008 5,008 — — Loans, net of allowance 831,181 839,427 — — 839,427 Mortgage servicing assets 1,041 1,058 — — 1,058 Accrued interest receivable 4,354 4,354 4,354 — — Bank owned life insurance 29,418 29,418 29,418 — — Financial Liabilities: Demand deposits 465,247 465,247 465,247 — — Interest-bearing demand deposits 45,503 45,503 45,503 — — NOW accounts 111,849 111,849 111,849 — — Money market deposit accounts 125,665 125,665 125,665 — — Savings accounts 255,936 255,936 255,936 — — Time deposits 122,621 125,225 — — 125,225 Total deposits 1,126,821 1,129,425 1,004,200 — 125,225 Short-term borrowings 1,500 1,500 1,500 — — Long-term debt 60,010 56,759 — — 56,759 Accrued interest payable 359 359 359 — — FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2019 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 41,053 41,053 41,053 — — Regulatory stock 7,291 7,291 7,291 — — Loans held for sale 2,342 2,342 2,342 — — Loans, net of allowance 744,171 759,011 — — 759,011 Mortgage servicing assets 892 1,049 — — 1,049 Accrued interest receivable 3,768 3,768 3,768 — — Bank owned life insurance 28,818 28,818 28,818 — — Financial Liabilities: Demand deposits 363,857 363,857 363,857 — — Interest-bearing demand deposits 25,171 25,171 25,171 — — NOW accounts 96,941 96,941 96,941 — — Money market deposit accounts 141,649 141,649 141,649 — — Savings accounts 211,285 211,285 211,285 — — Time deposits 135,185 136,781 — — 136,781 Total deposits 974,088 975,684 838,903 — 136,781 Short-term borrowings 200 200 200 — — Long-term debt 77,872 76,825 — — 76,825 Accrued interest payable 521 521 521 — — |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 7. Commitments and Contingent Liabilities In order to meet the financing needs of its customers in the normal course of business, the Corporation makes various commitments that are not reflected in the accompanying consolidated financial statements. These commitments include firm commitments to extend credit, unused lines of credit, and open letters of credit. As of September 30, 2020, firm loan commitments were $60.9 million, unused lines of credit were $319.0 million, and open letters of credit were $9.1 million. The total of these commitments was $389.0 million, which represents the Corporation’s exposure to credit loss in the event of nonperformance by its customers with respect to these financial instruments. The actual credit losses that may arise from these commitments are expected to compare favorably with the Corporation’s loan loss experience on its loan portfolio taken as a whole. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for balance sheet financial instruments. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 8. Accumulated Other Comprehensive Income (Loss) The activity in accumulated other comprehensive income for the nine months ended September 30, 2020 and 2019 is as follows: ACCUMULATED OTHER COMPREHENSIVE INCOME (1) (2) (DOLLARS IN THOUSANDS) Unrealized Gains (Losses) on Securities Available-for-Sale $ Balance at December 31, 2019 1,600 Other comprehensive loss before reclassifications (274 ) Amount reclassified from accumulated other comprehensive income (223 ) Period change (497 ) Balance at March 31, 2020 1,103 Other comprehensive income before reclassifications 3,709 Amount reclassified from accumulated other comprehensive income (290 ) Period change 3,419 Balance at June 30, 2020 4,522 Other comprehensive income before reclassifications 1,277 Amount reclassified from accumulated other comprehensive income (43 ) Period change 1,234 Balance at September 30, 2020 5,756 Balance at December 31, 2018 (5,678 ) Other comprehensive income before reclassifications 2,553 Amount reclassified from accumulated other comprehensive income (64 ) Period change 2,489 Balance at March 31, 2019 (3,189 ) Other comprehensive income before reclassifications 3,571 Amount reclassified from accumulated other comprehensive income (84 ) Period change 3,487 Balance at June 30, 2019 298 Other comprehensive income before reclassifications 1,420 Amount reclassified from accumulated other comprehensive income (33 ) Period change 1,387 Balance at September 30, 2019 1,685 (1) All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 21%. (2) Amounts in parentheses indicate debits. DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) COMPONENTS (1) (DOLLARS IN THOUSANDS) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended September 30, 2020 2019 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains, 55 42 Gains on the sale of reclassified into earnings debt securities, net Related income tax expense (12 ) (9 ) Provision for federal income taxes Net effect on accumulated other comprehensive income (loss) for the period 43 33 (1) Amounts in parentheses indicate debits. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Nine Months Ended September 30, 2020 2019 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains, 704 229 Gains on the sale of reclassified into earnings debt securities, net Related income tax expense (148 ) (48 ) Provision for federal income taxes Net effect on accumulated other comprehensive income (loss) for the period 556 181 (1) Amounts in parentheses indicate debits. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 9. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Corporation adopted ASU No. 2016-02 Leases (Topic 842) and all subsequent ASUs that modified Topic 842. For the Corporation, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Corporation is the lessee. All of these leases in which the Corporation is the lessee are comprised of real estate property for branches and office space with terms extending through 2026. All of the Corporations leases are classified as operating leases, and therefore, were previously not recognized on the Corporations Consolidated Balance Sheets. With the adoption of Topic 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheets as a right-of use (ROU) asset and a corresponding lease liability. The following table represents the Consolidated Balance Sheet classification of the Corporations ROU assets and lease liabilities. Lease Consolidated Balance Sheets Classification (Dollars in Thousands) Classification September 30, 2020 December 31, 2019 Lease Right-of-Use Assets Operating lease right-of use assets Other Assets $ 774 908 Lease Liabilities Operating lease liabilties Other Liabilities $ 784 916 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to determine the present value of the minimum lease payments. The Corporations lease agreements often include one or more options to renew at the Corporations discretion. If at lease inception, the Corporation considers the exercising of a renewal option to be reasonably certain, the Corporation will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As the rate is rarely determinable, the Corporation utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. September 30, 2020 December 31, 2019 Weighted-average remaining lease term Operating leases 4.6 years 5.3 years Weighted-average discount rate Operating leases 3.10% 3.09% The following table represents lease costs and other lease information. As the Corporation elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2020 were as follows: Lease Payment Schedule (Dollars in Thousands) Operating Leases Twelve Months Ended: September 30, 2021 $ 203 September 30, 2022 183 September 30, 2023 151 September 30, 2024 155 September 30, 2025 124 Thereafter 28 Total Future Minimum Lease Payments 844 Amounts Representing Interests (60 ) Present Value of Net Future Minimum Lease Payments $ 784 |
Change in Capital Structure
Change in Capital Structure | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Change in Capital Structure | 10. Change in Capital Structure On April 17, 2019 ENB Financial Corp announced the Board of Directors declared a two-for-one stock split of the Corporation’s issued and outstanding common stock pursuant to which one (1) additional share of common stock was issued for each share of common stock held by shareholders of record as of the close of business on May 31, 2019. The additional shares were issued on June 28, 2019. The stock split was effected pursuant to articles of amendment to the articles of incorporation to reduce the par value of the common stock from $0.20 to $0.10 and increase the authorized shares of common stock proportionately from 12,000,000 to 24,000,000. Per share data reflected on the Corporation’s consolidated statements of income are restated as if the stock split had occurred at the beginning of the earliest period presented. |
Risks and Uncertainties
Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | 11. Risks and Uncertainties COVID-19 Update The following table provides information with respect to our commercial loans by type at September 30, 2020. At Risk (Dollars in Thousands) # $ $ % Number Total Principal of Total of Loan Balance Loan Loan Type Loans Exposure of Loans Balance Lessors of Nonresidential Buildings 155 72,952 67,269 7.98% Lessors of Residential Buildings 236 43,984 39,139 4.64% Specialized Freight 30 15,404 11,088 1.32% Residential Remodelers 103 11,338 4,324 0.51% New Single Family Housing Construction 57 8,621 4,276 0.51% Passenger Car Leasing 136 9,105 9,100 1.08% Hotels 14 8,260 4,679 0.55% Religious Organizations 59 7,324 6,189 0.73% Car Washes 10 6,820 6,215 0.74% Concrete & Structural Contrators 24 6,528 4,488 0.53% Other 85 25,611 12,390 1.47% Totals 909 215,947 169,157 20.06% The Corporation has a diversified commercial loan portfolio that is consistent with the diversified economies of Lancaster, Lebanon and Berks Counties in Pennsylvania, the Corporation’s market area. The above chart is focused on loan types that are commonly known to be at risk or negatively impacted by the COVID-19 pandemic and its effects. The Corporation’s largest exposure to at risk loan types are loans on leased commercial property and loans on residential investment properties. The Corporation has a relatively low exposure to the hospitality industry, including restaurants. Single loan type exposures falling under the other category do not exceed 0.5% of total loans and include loan types such as site preparation contractors, fuel dealers, and recreational centers. The above levels of exposure to these at risk loan types have not had significant movements from 2019 to 2020. Management does not expect any significant movements in these exposures going forward. Paycheck Protection Program (PPP) The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, providing over $2 trillion in economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (SBA) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (PPP). As a qualified SBA lender, the Corporation was authorized to originate PPP loans. In terms of qualifying for a PPP loan, an eligible business could apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly payroll costs; or (2) $10 million. The PPP loans have the following terms: (a) an interest rate of 1.0%, (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the PPP loan, including any accrued interest, is eligible to be reduced by the amount of loan forgiveness available under the PPP, provided the employee and compensation levels of the business are maintained and 60% of the loan proceeds are used for payroll expenses, with the remaining 40% of the loan proceeds used for other qualifying expenses such as utilities. In the initial CARES Act, $349 billion of funds were made available for PPP loans. This amount was fully exhausted prior to the end of April. Congress then passed an additional allocation of funds for the PPP loans, allowing a second round of applications to begin. As of September 30, 2020, the Corporation had PPP loans outstanding with a current balance of $77.7 million. Management’s focus has been to serve the customers and market area that the Corporation serves. In accordance with the SBA terms and conditions on these PPP loans, the Corporation received approximately $3.25 million in fees associated with the processing of these loans. All fee income is being deferred over the expected life of each PPP loan. The initial batch of the PPP loans carried a stated maturity of two years. In later batches of PPP loans the maturity can be five years, however the vast majority of the Corporation’s PPP loans carry a two-year maturity. When a PPP loan is paid off or forgiven, the remaining fee amount is taken into income. A number of PPP borrowers have provided the necessary support and application to the Corporation in order to start the forgiveness process with the SBA. It is expected that between $25 - $30 million of loan balances will be forgiven by December 31, 2020, with the majority of the remaining balances forgiven in 2021. The Corporation expects there to be few loans that are on the books until the stated maturity dates. COVID-19 Loan Forbearance Programs As of September 30, 2020, over 320 of the Corporation’s customers had requested payment deferrals, or payments of interest only, on loans originally totaling over $64 million at the time of deferment. These loans now have a current balance of $57.1 million, or 6.8% of the total loan portfolio as of September 30, 2020. The current balance of these loans was $61.7 million as of June 30, 2020. In accordance with interagency guidance issued in March 2020, these short-term deferrals are not considered troubled debt restructurings (TDRs) unless the borrower was previously experiencing financial difficulty. In addition, the risk-rating on COVID-19 modified loans did not change, and these loans will not be considered past due until after the deferral period is over and scheduled payments resume. The credit quality of these loans will be reevaluated after the deferral period ends. Of the $57.1 million of current loan balances with payments being deferred, $45.6 million, or 79.8%, were in the form of commercial or agricultural loan deferments, with the vast majority of these commercial loan deferrals. The remaining loan deferments consisted of $11.3 million of residential mortgage deferrals and $212,000 of consumer loan deferrals. The vast majority of the COVID-19 loan payment deferrals were for a 90-day period. As of September 30, 2020, the Corporation’s delinquent and non-performing levels were not yet materially impacted by the weaker economic conditions brought on by COVID-19. However, the Corporation did experience a sharp increase in the amount of impaired loans during the third quarter of 2020. Impaired loans grew from $2.8 million as of June 30, 2020 to $6.4 million as of September 30, 2020, a $3.6 million increase. This increase was solely due to a $3.6 million loan to one commercial borrower being classified as both impaired and a troubled debt restructuring. This borrower continues to perform according to restructured terms. Due to the severity and length of this economic interruption, management does anticipate that the levels of delinquencies and non-performing loans will rise in the final quarter of 2020 and into 2021. The significance of the credit deterioration will depend on the length of time local business operations are curtailed, or limited, and the amount of time it takes for consumer confidence to rebuild and engage into increased purchasing activities. Management has already significantly increased the Corporation’s provision for loan losses in the second and third quarters of 2020, as qualitative factors have been increased based on predicted prolonged economic weakness, which is expected to impact more and more borrowers. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Standards | 12. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825), , Financial Instruments – Credit Losses , Derivatives and Hedging , Financial Instruments Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 Financial Instruments – Credit Losses In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections, Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates. Disclosure Update and Simplification Investment Company Reporting Modernization In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) In January 2020, the FASB issued ASU 2020-02, Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842), February 2020 In March 2020, the FASB issued ASU 2020-03 , Codification Improvements to Financial Instruments. Financial Instruments In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and to general practices within the banking industry. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all significant adjustments considered necessary for fair presentation have been included. Certain items previously reported have been reclassified to conform to the current period’s reporting format. Such reclassifications did not affect net income or stockholders’ equity. ENB Financial Corp (“the Corporation”) is the bank holding company for its wholly-owned subsidiary Ephrata National Bank (the “Bank”). This Form 10-Q, for the third quarter of 2020, is reporting on the results of operations and financial condition of ENB Financial Corp. Operating results for the three and nine months ended September 30, 2020, are not necessarily indicative of the results that may be expected for the year ended December 31, 2020. For further information, refer to the consolidated financial statements and footnotes thereto included in ENB Financial Corp’s Annual Report on Form 10-K for the year ended December 31, 2019. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Topic 606, Revenue from Contracts with Customers (Topic 606). The Corporation’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Corporation generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. |
Securities Available for Sale (
Securities Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities | The amortized cost, gross unrealized gains and losses, and fair value of securities held at September 30, 2020, and December 31, 2019, are as follows: Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ September 30, 2020 U.S. government agencies 8,216 157 — 8,373 U.S. agency mortgage-backed securities 64,263 1,492 (91 ) 65,664 U.S. agency collateralized mortgage obligations 40,236 758 (89 ) 40,905 Asset-backed securities 41,892 82 (921 ) 41,053 Corporate bonds 59,436 1,308 (30 ) 60,714 Obligations of states and political subdivisions 138,701 4,889 (270 ) 143,320 Total securities available for sale 352,744 8,686 (1,401 ) 360,029 December 31, 2019 U.S. government agencies 32,621 31 (28 ) 32,624 U.S. agency mortgage-backed securities 48,859 215 (448 ) 48,626 U.S. agency collateralized mortgage obligations 60,124 323 (194 ) 60,253 Asset-backed securities 23,646 7 (391 ) 23,262 Corporate bonds 54,604 316 (40 ) 54,880 Obligations of states and political subdivisions 86,216 2,245 (9 ) 88,452 Total securities available for sale 306,070 3,137 (1,110 ) 308,097 |
Schedule of contractual maturity of debt securities | The amortized cost and fair value of securities available for sale at September 30, 2020, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to certain call or prepayment provisions. CONTRACTUAL MATURITY OF DEBT SECURITIES (DOLLARS IN THOUSANDS) Amortized Cost Fair Value $ $ Due in one year or less 47,256 47,804 Due after one year through five years 103,969 106,143 Due after five years through ten years 49,683 50,428 Due after ten years 151,836 155,654 Total debt securities 352,744 360,029 |
Schedule of proceeds and gains and losses on securities available for sale | Proceeds from active sales of securities available for sale, along with the associated gross realized gains and gross realized losses, are shown below. Realized gains and losses are computed on the basis of specific identification. PROCEEDS FROM SALES OF SECURITIES AVAILABLE FOR SALE (DOLLARS IN THOUSANDS) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 $ $ $ $ Proceeds from sales 7,001 7,169 50,819 35,818 Gross realized gains 64 43 730 261 Gross realized losses (9 ) (1 ) (26 ) (32 ) |
Schedule of securities in an unrealized loss position (temporary impairment) | Information pertaining to securities with gross unrealized losses at September 30, 2020, and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: TEMPORARY IMPAIRMENTS OF SECURITIES (DOLLARS IN THOUSANDS) Less than 12 months More than 12 months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses $ $ $ $ $ $ As of September 30, 2020 U.S. government agencies — — — — — — U.S. agency mortgage-backed securities 10,586 (75 ) 2,561 (16 ) 13,147 (91 ) U.S. agency collateralized mortgage obligations 14,940 (89 ) — — 14,940 (89 ) Asset-backed securities 13,031 (257 ) 16,749 (664 ) 29,780 (921 ) Corporate bonds — — 3,001 (30 ) 3,001 (30 ) Obligations of states & political subdivisions 22,673 (270 ) — — 22,673 (270 ) Total temporarily impaired securities 61,230 (691 ) 22,311 (710 ) 83,541 (1,401 ) As of December 31, 2019 U.S. government agencies 1,222 (3 ) 15,971 (25 ) 17,193 (28 ) U.S. agency mortgage-backed securities 5,040 (32 ) 24,027 (416 ) 29,067 (448 ) U.S. agency collateralized mortgage obligations 17,457 (50 ) 17,512 (144 ) 34,969 (194 ) Asset-backed securities 10,278 (169 ) 9,126 (222 ) 19,404 (391 ) Corporate bonds 2,562 (4 ) 13,041 (36 ) 15,603 (40 ) Obligations of states & political subdivisions 2,642 (9 ) — — 2,642 (9 ) Total temporarily impaired securities 39,201 (267 ) 79,677 (843 ) 118,878 (1,110 ) |
Equity Securities (Tables)
Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Marketable Securities [Abstract] | |
Schedule of Amortized Cost, Gross Unrealized gains, Losses, and Fair Value of Equity Securities | The following table summarizes the amortized cost, gross unrealized gains and losses, and fair value of equity securities held at September 30, 2020 and December 31, 2019. Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ September 30, 2020 CRA-qualified mutual funds 6,162 — — 6,162 Bank stocks 947 — (255 ) 692 Total equity securities 7,109 — (255 ) 6,854 Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2019 CRA-qualified mutual funds 6,071 — — 6,071 Bank stocks 614 26 (3 ) 637 Total equity securities 6,685 26 (3 ) 6,708 |
Schedule of Unrealized Gains and Losses | The following table presents the net gains and losses on the Corporation’s equity investments recognized in earnings during the three and nine months ended September 30, 2020 and 2019, and the portion of unrealized gains and losses for the period that relates to equity investments held as of September 30, 2020 and 2019. NET GAINS AND LOSSES ON EQUITY INVESTMENTS RECOGNIZED IN EARNINGS (DOLLARS IN THOUSANDS) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 $ $ $ $ Net gains (losses) recognized in equity securities during the period (54 ) (9 ) (279 ) 35 Less: Net gains realized on the sale of equity securities during the period — 16 — 16 Unrealized gains (losses) recognized in equity securities held at reporting date (54 ) 7 (279 ) 51 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of loan portfolio by category | The following table presents the Corporation’s loan portfolio by category of loans as of September 30, 2020, and December 31, 2019: LOAN PORTFOLIO (DOLLARS IN THOUSANDS) September 30, December 31, 2020 2019 $ $ Commercial real estate Commercial mortgages 136,125 120,212 Agriculture mortgages 174,150 175,367 Construction 22,380 16,209 Total commercial real estate 332,655 311,788 Consumer real estate (a) 1-4 family residential mortgages 260,465 258,676 Home equity loans 10,788 9,770 Home equity lines of credit 68,368 70,809 Total consumer real estate 339,621 339,255 Commercial and industrial Commercial and industrial 128,414 58,019 Tax-free loans 16,423 16,388 Agriculture loans 20,494 20,804 Total commercial and industrial 165,331 95,211 Consumer 5,190 5,416 Gross loans prior to deferred fees 842,797 751,670 Deferred loan costs, net 380 1,948 Allowance for loan losses (11,996 ) (9,447 ) Total net loans 831,181 744,171 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $217,812,000 and $154,577,000 as of September 30, 2020, and December 31, 2019, respectively. |
Schedule of commercial and consumer credit exposure | COMMERCIAL CREDIT EXPOSURE CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE (DOLLARS IN THOUSANDS) September 30, 2020 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 126,713 160,772 20,884 117,506 16,423 18,646 460,944 Special Mention 3,500 2,630 1,496 5,779 — 826 14,231 Substandard 5,912 10,748 — 5,129 — 1,022 22,811 Doubtful — — — — — — — Loss — — — — — — — Total 136,125 174,150 22,380 128,414 16,423 20,494 497,986 December 31, 2019 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 117,875 158,896 16,209 52,028 16,388 18,530 379,926 Special Mention 827 4,546 — 618 — 939 6,930 Substandard 1,510 11,925 — 5,293 — 1,335 20,063 Doubtful — — — 80 — — 80 Loss — — — — — — — Total 120,212 175,367 16,209 58,019 16,388 20,804 406,999 CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) September 30, 2020 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 259,710 10,696 68,358 5,182 343,946 Non-performing 755 92 10 8 865 Total 260,465 10,788 68,368 5,190 344,811 December 31, 2019 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 257,374 9,678 70,799 5,412 343,263 Non-performing 1,302 92 10 4 1,408 Total 258,676 9,770 70,809 5,416 344,671 |
Schedule of aging of loans receivable | The following tables present an age analysis of the Corporation’s past due loans, segregated by loan portfolio class, as of September 30, 2020 and December 31, 2019: AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Loans Greater Receivable > 30-59 Days 60-89 Days than 90 Total Past Total Loans 90 Days and September 30, 2020 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 210 210 135,915 136,125 — Agriculture mortgages 532 — — 532 173,618 174,150 — Construction — — — — 22,380 22,380 — Consumer real estate 1-4 family residential mortgages 1,080 — 755 1,835 258,630 260,465 266 Home equity loans — — 92 92 10,696 10,788 — Home equity lines of credit 68 — 10 78 68,290 68,368 10 Commercial and industrial Commercial and industrial 102 — 495 597 127,817 128,414 — Tax-free loans — — — — 16,423 16,423 — Agriculture loans 32 — — 32 20,462 20,494 — Consumer 14 9 8 31 5,159 5,190 8 Total 1,828 9 1,570 3,407 839,390 842,797 284 AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Loans Greater Receivable > 30-59 Days 60-89 Days than 90 Total Past Total Loans 90 Days and December 31, 2019 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 228 228 119,984 120,212 — Agriculture mortgages 962 — 1,070 2,032 173,335 175,367 — Construction — — — — 16,209 16,209 — Consumer real estate 1-4 family residential mortgages 2,254 161 1,302 3,717 254,959 258,676 807 Home equity loans 52 — 92 144 9,626 9,770 — Home equity lines of credit 43 — 10 53 70,756 70,809 10 Commercial and industrial Commercial and industrial 68 — 538 606 57,413 58,019 — Tax-free loans — — — — 16,388 16,388 — Agriculture loans 2 — — 2 20,802 20,804 — Consumer 14 12 4 30 5,386 5,416 4 Total 3,395 173 3,244 6,812 744,858 751,670 821 |
Schedule of nonaccrual loans by class | The following table presents nonaccrual loans by classes of the loan portfolio as of September 30, 2020 and December 31, 2019: NONACCRUAL LOANS BY LOAN CLASS (DOLLARS IN THOUSANDS) September 30, December 31, 2020 2019 $ $ Commercial real estate Commercial mortgages 210 228 Agriculture mortgages — 1,070 Construction — — Consumer real estate 1-4 family residential mortgages 489 495 Home equity loans 92 92 Home equity lines of credit — — Commercial and industrial Commercial and industrial 495 538 Tax-free loans — — Agriculture loans — — Consumer — — Total 1,286 2,423 |
Schedule of impaired loans | As of September 30, 2020 and December 31, 2019, all of the Corporation’s commercial loans on nonaccrual status were also considered impaired. Information with respect to impaired loans for the three and nine months ended September 30, 2020 and September 30, 2019, is as follows: Three Months Ended September 30, Nine months ended September 30, 2020 2019 2020 2019 $ $ $ $ Average recorded balance of impaired loans 5,060 3,721 4,062 3,278 Interest income recognized on impaired loans 31 11 72 32 The following tables summarize information regarding impaired loans by loan portfolio class as of September 30, 2020, and for the nine months ended September 30, 2020, and as of December 31, 2019: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) September 30, 2020 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 699 752 — 716 — Agriculture mortgages 1,492 1,521 — 1,972 41 Construction — — — — — Total commercial real estate 2,191 2,273 — 2,688 41 Commercial and industrial Commercial and industrial 495 523 — 524 17 Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 495 523 — 524 17 Total with no related allowance 2,686 2,796 — 3,212 58 With an allowance recorded: Commercial real estate Commercial mortgages 3,673 3,681 1,138 850 15 Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate 3,673 3,681 1,138 850 15 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance 3,673 3,681 1,138 850 15 Total by loan class: Commercial real estate Commercial mortgages 4,372 4,433 1,138 1,566 15 Agriculture mortgages 1,492 1,521 — 1,972 41 Construction — — — — — Total commercial real estate 5,864 5,954 1,138 3,538 56 Commercial and industrial Commercial and industrial 495 523 — 524 17 Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 495 523 — 524 17 Total 6,359 6,477 1,138 4,062 73 IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) December 31, 2019 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 724 765 — 859 — Agriculture mortgages 1,912 1,928 — 1,903 43 Construction — — — — — Total commercial real estate 2,636 2,693 — 2,762 43 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with no related allowance 2,636 2,693 — 2,762 43 With an allowance recorded: Commercial real estate Commercial mortgages 92 100 49 93 — Agriculture mortgages 718 718 60 760 — Construction — — — — — Total commercial real estate 810 818 109 853 — Commercial and industrial Commercial and industrial 538 549 80 261 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 538 549 80 261 — Total with a related allowance 1,348 1,367 189 1,114 — Total by loan class: Commercial real estate Commercial mortgages 816 865 49 952 — Agriculture mortgages 2,630 2,646 60 2,663 43 Construction — — — — — Total commercial real estate 3,446 3,511 109 3,615 43 Commercial and industrial Commercial and industrial 538 549 80 261 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 538 549 80 261 — Total 3,984 4,060 189 3,876 43 |
Schedule of allowance for credit losses | The following table details activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2020: ALLOWANCE FOR CREDIT LOSSES (DOLLARS IN THOUSANDS) Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance - December 31, 2019 4,319 2,855 1,784 41 448 9,447 Charge-offs — — — (6 ) — (6 ) Recoveries 11 — 1 — — 12 Provision 252 296 171 21 (390 ) 350 Balance - March 31, 2020 4,582 3,151 1,956 56 58 9,803 Charge-offs — — — (10 ) — (10 ) Recoveries — — 1 1 — 2 Provision 356 146 175 5 293 975 Ending Balance - June 30, 2020 4,938 3,297 2,132 52 351 10,770 Charge-offs — — (23 ) (3 ) — (26 ) Recoveries — — 1 1 — 2 Provision 1,289 75 (18 ) 4 (100 ) 1,250 Balance - September 30, 2020 6,227 3,372 2,092 54 251 11,996 T ALLOWANCE FOR CREDIT LOSSES (DOLLARS IN THOUSANDS) Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance - December 31, 2018 4,296 2,408 1,428 102 432 8,666 Charge-offs — — — (17 ) — (17 ) Recoveries 44 — 13 — — 57 Provision 148 (140 ) 128 16 28 180 Balance - March 31, 2019 4,488 2,268 1,569 101 460 8,886 Charge-offs — — — (6 ) — (6 ) Recoveries 43 — 1 3 — 47 Provision (114 ) 122 (204 ) (22 ) 248 30 Balance - June 30, 2019 4,417 2,390 1,366 76 708 8,957 Charge-offs (122 ) — (63 ) (3 ) — (188 ) Recoveries 41 1 33 — — 75 Provision 229 156 740 (19 ) (476 ) 630 Ending Balance - September 30, 2019 4,565 2,547 2,076 54 232 9,474 During the nine months ended September 30, 2019, management charged off $211,000 in loans while recovering $179,000 and added $840,000 to the provision. The unallocated portion of the allowance decreased from 5.3% of total reserves as of December 31, 2018, to 2.5% as of September 30, 2019, after being higher at the end of the first and second quarters. Management monitors the unallocated portion of the allowance with a desire to maintain it at approximately 5% or less, with a requirement of it not exceeding 10%. During the nine months ended September 30, 2019, net provision expense was recorded for all sectors except consumer, which had a net credit provision. In the third quarter of 2019, management recorded charge-offs in commercial real estate and the C&I sector, unlike in the first two quarters of 2019. This also pushed up the historic loss rate and caused higher allocations in the third quarter for those sectors. The total amount of substandard and special mention loans at the end of the second and third quarters of 2019 were similar for commercial mortgages, but agricultural mortgages increased for both special mention and substandard loans, requiring more provision. The Corporation’s commercial and industrial allocation for credit losses was increased by $740,000 in the third quarter of 2019, primarily due to the classification of one $547,000 loan to doubtful status, which caused a specific provision for the same amount. This C&I loan customer is current as to payment of interest on a commercial line of credit but the line has not revolved for several years. The Corporation does have a general UCC filing against all business assets but the majority of their inventory assets are already covered by a purchase money security interest of the manufacturer. Management will continue to classify the loan as doubtful until it can be determined that sufficient collateral exists to cover the loan, or sustainable principal payments can be made on the line. The following tables present the balance in the allowance for credit losses and the recorded investment in loans receivable by portfolio segment based on impairment method as of September 30, 2020 and December 31, 2019: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) As of September 30, 2020: Commercial Real Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 1,138 — — — — 1,138 Ending balance: collectively evaluated for impairment 5,089 3,372 2,092 54 251 10,858 Loans receivable: Ending balance 332,655 339,621 165,331 5,190 842,797 Ending balance: individually evaluated for impairment 5,864 — 495 — 6,359 Ending balance: collectively evaluated for impairment 326,791 339,621 164,836 5,190 836,438 As of December 31, 2019: Commercial Real Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 109 — 80 — — 189 Ending balance: collectively evaluated for impairment 4,210 2,855 1,704 41 448 9,258 Loans receivable: Ending balance 311,788 339,255 95,211 5,416 751,670 Ending balance: individually evaluated for impairment 3,446 — 538 — 3,984 Ending balance: collectively evaluated for impairment 308,342 339,255 94,673 5,416 747,686 |
Fair Value Presentation (Tables
Fair Value Presentation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured on a recurring basis | The following tables provide the fair market value for assets required to be measured and reported at fair value on a recurring basis on the Consolidated Balance Sheets as of September 30, 2020, and December 31, 2019, by level within the fair value hierarchy. As required by U.S. generally accepted accounting principles, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. ASSETS MEASURED ON A RECURRING BASIS (DOLLARS IN THOUSANDS) September 30, 2020 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 8,373 — 8,373 U.S. agency mortgage-backed securities — 65,664 — 65,664 U.S. agency collateralized mortgage obligations — 40,905 — 40,905 Asset-backed securities — 41,053 — 41,053 Corporate bonds — 60,714 — 60,714 Obligations of states & political subdivisions — 143,320 — 143,320 Equity securities 6,854 — — 6,854 Total securities 6,854 360,029 — 366,883 ASSETS MEASURED ON A RECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2019 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 32,624 — 32,624 U.S. agency mortgage-backed securities — 48,626 — 48,626 U.S. agency collateralized mortgage obligations — 60,253 — 60,253 Asset-backed securities — 23,262 — 23,262 Corporate bonds — 54,880 — 54,880 Obligations of states & political subdivisions — 88,452 — 88,452 Equity securities 6,708 — — 6,708 Total securities 6,708 308,097 — 314,805 |
Schedule of assets measured on a nonrecurring basis | The following tables provide the fair value for each class of assets required to be measured and reported at fair value on a nonrecurring basis on the Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, by level within the fair value hierarchy: ASSETS MEASURED ON A NONRECURRING BASIS ( Dollars in Thousands September 30, 2020 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans $ — $ — $ 5,221 $ 5,221 Total $ — $ — $ 5,221 $ 5,221 December 31, 2019 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans $ — $ — $ 3,795 $ 3,795 Total $ — $ — $ 3,795 $ 3,795 |
Schedule of Level III inputs | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized level III inputs to determine fair value: QUANTITATIVE INFORMATION ABOUT LEVEL III FAIR VALUE MEASUREMENTS (DOLLARS IN THOUSANDS) September 30, 2020 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 5,221 Appraisal of Appraisal -20% (-20%) collateral (1) adjustments (2) Liquidation -10% (-10%) expenses (2) December 31, 2019 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 3,795 Appraisal of Appraisal -20% (-20%) collateral (1) adjustments (2) Liquidation -10% (-10%) expenses (2) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
FINANCIAL INSTRUMENTS NOT REQ_2
FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and fair value of financial instruments | The following table provides the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019: FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) September 30, 2020 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 44,326 44,326 44,326 — — Regulatory stock 6,525 6,525 6,525 — — Loans held for sale 5,008 5,008 5,008 — — Loans, net of allowance 831,181 839,427 — — 839,427 Mortgage servicing assets 1,041 1,058 — — 1,058 Accrued interest receivable 4,354 4,354 4,354 — — Bank owned life insurance 29,418 29,418 29,418 — — Financial Liabilities: Demand deposits 465,247 465,247 465,247 — — Interest-bearing demand deposits 45,503 45,503 45,503 — — NOW accounts 111,849 111,849 111,849 — — Money market deposit accounts 125,665 125,665 125,665 — — Savings accounts 255,936 255,936 255,936 — — Time deposits 122,621 125,225 — — 125,225 Total deposits 1,126,821 1,129,425 1,004,200 — 125,225 Short-term borrowings 1,500 1,500 1,500 — — Long-term debt 60,010 56,759 — — 56,759 Accrued interest payable 359 359 359 — — FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2019 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 41,053 41,053 41,053 — — Regulatory stock 7,291 7,291 7,291 — — Loans held for sale 2,342 2,342 2,342 — — Loans, net of allowance 744,171 759,011 — — 759,011 Mortgage servicing assets 892 1,049 — — 1,049 Accrued interest receivable 3,768 3,768 3,768 — — Bank owned life insurance 28,818 28,818 28,818 — — Financial Liabilities: Demand deposits 363,857 363,857 363,857 — — Interest-bearing demand deposits 25,171 25,171 25,171 — — NOW accounts 96,941 96,941 96,941 — — Money market deposit accounts 141,649 141,649 141,649 — — Savings accounts 211,285 211,285 211,285 — — Time deposits 135,185 136,781 — — 136,781 Total deposits 974,088 975,684 838,903 — 136,781 Short-term borrowings 200 200 200 — — Long-term debt 77,872 76,825 — — 76,825 Accrued interest payable 521 521 521 — — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive loss | The activity in accumulated other comprehensive income for the nine months ended September 30, 2020 and 2019 is as follows: ACCUMULATED OTHER COMPREHENSIVE INCOME (1) (2) (DOLLARS IN THOUSANDS) Unrealized Gains (Losses) on Securities Available-for-Sale $ Balance at December 31, 2019 1,600 Other comprehensive loss before reclassifications (274 ) Amount reclassified from accumulated other comprehensive income (223 ) Period change (497 ) Balance at March 31, 2020 1,103 Other comprehensive income before reclassifications 3,709 Amount reclassified from accumulated other comprehensive income (290 ) Period change 3,419 Balance at June 30, 2020 4,522 Other comprehensive income before reclassifications 1,277 Amount reclassified from accumulated other comprehensive income (43 ) Period change 1,234 Balance at September 30, 2020 5,756 Balance at December 31, 2018 (5,678 ) Other comprehensive income before reclassifications 2,553 Amount reclassified from accumulated other comprehensive income (64 ) Period change 2,489 Balance at March 31, 2019 (3,189 ) Other comprehensive income before reclassifications 3,571 Amount reclassified from accumulated other comprehensive income (84 ) Period change 3,487 Balance at June 30, 2019 298 Other comprehensive income before reclassifications 1,420 Amount reclassified from accumulated other comprehensive income (33 ) Period change 1,387 Balance at September 30, 2019 1,685 (1) All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 21%. (2) Amounts in parentheses indicate debits. DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) COMPONENTS (1) (DOLLARS IN THOUSANDS) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended September 30, 2020 2019 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains, 55 42 Gains on the sale of reclassified into earnings debt securities, net Related income tax expense (12 ) (9 ) Provision for federal income taxes Net effect on accumulated other comprehensive income (loss) for the period 43 33 (1) Amounts in parentheses indicate debits. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Nine Months Ended September 30, 2020 2019 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains, 704 229 Gains on the sale of reclassified into earnings debt securities, net Related income tax expense (148 ) (48 ) Provision for federal income taxes Net effect on accumulated other comprehensive income (loss) for the period 556 181 (1) Amounts in parentheses indicate debits. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of ROU Assets and Lease Liabilities | The following table represents the Consolidated Balance Sheet classification of the Corporations ROU assets and lease liabilities. Lease Consolidated Balance Sheets Classification (Dollars in Thousands) Classification September 30, 2020 December 31, 2019 Lease Right-of-Use Assets Operating lease right-of use assets Other Assets $ 774 908 Lease Liabilities Operating lease liabilties Other Liabilities $ 784 916 |
Schedule of Opreating Leases Weighted-Average Discount Term and Rate | September 30, 2020 December 31, 2019 Weighted-average remaining lease term Operating leases 4.6 years 5.3 years Weighted-average discount rate Operating leases 3.10% 3.09% |
Schedule of Maturities of Operating Leases | Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2020 were as follows: Lease Payment Schedule (Dollars in Thousands) Operating Leases Twelve Months Ended: September 30, 2021 $ 203 September 30, 2022 183 September 30, 2023 151 September 30, 2024 155 September 30, 2025 124 Thereafter 28 Total Future Minimum Lease Payments 844 Amounts Representing Interests (60 ) Present Value of Net Future Minimum Lease Payments $ 784 |
Risks and Uncertainties (Tables
Risks and Uncertainties (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Shedule of Commercial Loans by Type | The following table provides information with respect to our commercial loans by type at September 30, 2020. At Risk (Dollars in Thousands) # $ $ % Number Total Principal of Total of Loan Balance Loan Loan Type Loans Exposure of Loans Balance Lessors of Nonresidential Buildings 155 72,952 67,269 7.98% Lessors of Residential Buildings 236 43,984 39,139 4.64% Specialized Freight 30 15,404 11,088 1.32% Residential Remodelers 103 11,338 4,324 0.51% New Single Family Housing Construction 57 8,621 4,276 0.51% Passenger Car Leasing 136 9,105 9,100 1.08% Hotels 14 8,260 4,679 0.55% Religious Organizations 59 7,324 6,189 0.73% Car Washes 10 6,820 6,215 0.74% Concrete & Structural Contrators 24 6,528 4,488 0.53% Other 85 25,611 12,390 1.47% Totals 909 215,947 169,157 20.06% |
Securities Available for Sale_2
Securities Available for Sale (Narrative) (Details) $ in Thousands | Sep. 30, 2020USD ($)N | Dec. 31, 2019USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Available for sale debt securities pledged or restricted for public funds, par value | $ 80,235 | $ 66,712 |
Available for sale debt securities pledged or restricted for public funds, fair value | $ 85,331 | $ 68,732 |
Number of securities considered temporarily impaired | N | 49 |
Securities Available for Sale_3
Securities Available for Sale (Schedule of Amortized Cost and Fair Value of Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities Available For Sale | ||
Amortized Cost | $ 352,744 | $ 306,070 |
Gross Unrealized Gains | 8,686 | 3,137 |
Gross Unrealized Losses | (1,401) | (1,110) |
Fair Value | 360,029 | 308,097 |
U.S. Government Agencies [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 8,216 | 32,621 |
Gross Unrealized Gains | 157 | 31 |
Gross Unrealized Losses | (28) | |
Fair Value | 8,373 | 32,624 |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 64,263 | 48,859 |
Gross Unrealized Gains | 1,492 | 215 |
Gross Unrealized Losses | (91) | (448) |
Fair Value | 65,664 | 48,626 |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 40,236 | 60,124 |
Gross Unrealized Gains | 758 | 323 |
Gross Unrealized Losses | (89) | (194) |
Fair Value | 40,905 | 60,253 |
Asset-backed Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 41,892 | 23,646 |
Gross Unrealized Gains | 82 | 7 |
Gross Unrealized Losses | (921) | (391) |
Fair Value | 41,053 | 23,262 |
Corporate Bonds [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 59,436 | 54,604 |
Gross Unrealized Gains | 1,308 | 316 |
Gross Unrealized Losses | (30) | (40) |
Fair Value | 60,714 | 54,880 |
Obligations of States and Political Subdivisions [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 138,701 | 86,216 |
Gross Unrealized Gains | 4,889 | 2,245 |
Gross Unrealized Losses | (270) | (9) |
Fair Value | $ 143,320 | $ 88,452 |
Securities Available for Sale_4
Securities Available for Sale (Schedule of Contractual Maturity of Debt Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Contractual maturity of debt securities, Amortized Cost | |||
Due in one year or less | $ 47,256 | ||
Due after one year through five years | 103,969 | ||
Due after five years through ten years | 49,683 | ||
Due after ten years | 151,836 | ||
Total debt securities | 352,744 | ||
Contractual maturity of debt securities, Fair Value | |||
Due in one year or less | 47,804 | ||
Due after one year through five years | 106,143 | ||
Due after five years through ten years | 50,428 | ||
Due after ten years | 155,654 | ||
Total debt securities | $ 360,029 | $ 308,097 | $ 298,983 |
Securities Available for Sale_5
Securities Available for Sale (Schedule of Proceeds and Gains and Losses on Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 7,001 | $ 7,169 | $ 50,819 | $ 35,818 |
Gross realized gains | 64 | 43 | 730 | 261 |
Gross realized losses | $ (9) | $ (1) | $ (26) | $ (32) |
Securities Available for Sale_6
Securities Available for Sale (Schedule of Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value | ||
Less than 12 months | $ 61,230 | $ 39,201 |
More than 12 months | 22,311 | 79,677 |
Total | 83,541 | 118,878 |
Gross Unrealized Losses | ||
Less than 12 months | (691) | (267) |
More than 12 months | (710) | (843) |
Total | (1,401) | (1,110) |
U.S. Government Agencies [Member] | ||
Fair Value | ||
Less than 12 months | 1,222 | |
More than 12 months | 15,971 | |
Total | 17,193 | |
Gross Unrealized Losses | ||
Less than 12 months | (3) | |
More than 12 months | (25) | |
Total | (28) | |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Fair Value | ||
Less than 12 months | 10,586 | 5,040 |
More than 12 months | 2,561 | 24,027 |
Total | 13,147 | 29,067 |
Gross Unrealized Losses | ||
Less than 12 months | (75) | (32) |
More than 12 months | (16) | (416) |
Total | (91) | (448) |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value | ||
Less than 12 months | 14,940 | 17,457 |
More than 12 months | 17,512 | |
Total | 14,940 | 34,969 |
Gross Unrealized Losses | ||
Less than 12 months | (89) | (50) |
More than 12 months | (144) | |
Total | (89) | (194) |
Asset-backed Securities [Member] | ||
Fair Value | ||
Less than 12 months | 13,031 | 10,278 |
More than 12 months | 16,749 | 9,126 |
Total | 29,780 | 19,404 |
Gross Unrealized Losses | ||
Less than 12 months | (257) | (169) |
More than 12 months | (664) | (222) |
Total | (921) | (391) |
Corporate Bonds [Member] | ||
Fair Value | ||
Less than 12 months | 2,562 | |
More than 12 months | 3,001 | 13,041 |
Total | 3,001 | 15,603 |
Gross Unrealized Losses | ||
Less than 12 months | (4) | |
More than 12 months | (30) | (36) |
Total | (30) | (40) |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value | ||
Less than 12 months | 22,673 | 2,642 |
More than 12 months | ||
Total | 22,673 | 2,642 |
Gross Unrealized Losses | ||
Less than 12 months | (270) | (9) |
More than 12 months | ||
Total | $ (270) | $ (9) |
Equity Securities (Schedule of
Equity Securities (Schedule of Amortized Cost, Gross Unrealized gains, Losses, and Fair Value of Equity Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Net Investment Income [Line Items] | ||
Amortized Cost | $ 352,744 | $ 306,070 |
Gross Unrealized Gains | 8,686 | 3,137 |
Gross Unrealized Losses | (1,401) | (1,110) |
Fair Value | 360,029 | 308,097 |
CRA-qualified mutual funds [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 6,162 | 6,071 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 6,162 | 6,071 |
Bank stocks [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 947 | 614 |
Gross Unrealized Gains | 26 | |
Gross Unrealized Losses | (255) | (3) |
Fair Value | 692 | 637 |
Equity Securities [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 7,109 | 6,685 |
Gross Unrealized Gains | 26 | |
Gross Unrealized Losses | (255) | (3) |
Fair Value | $ 6,854 | $ 6,708 |
Equity Securities (Schedule o_2
Equity Securities (Schedule of Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Marketable Securities [Abstract] | ||||
Net gains (losses) recognized in equity securities during the period | $ (54) | $ (9) | $ (279) | $ 35 |
Less: Net gains realized on the sale of equity securities during the period | 16 | 16 | ||
Unrealized gains (losses) recognized in equity securities held at reporting date | $ (54) | $ 7 | $ (279) | $ 51 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)Loans | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
TDRs loan | $ 3,600 | $ 3,600 | ||||||||
Nonaccrual loan | $ 1,286 | $ 1,286 | $ 2,423 | |||||||
Increase (decrease) in ending balance of allowance for loan losses | $ 718 | |||||||||
Delinquency rate | 0.40% | 0.40% | 0.91% | |||||||
Additional provision for loan losses | $ 2,575 | $ 840 | ||||||||
Recoveries of loan losses | 16 | 179 | ||||||||
Charge-offs | $ 26 | $ 10 | $ 6 | $ 188 | $ 6 | 17 | $ 42 | $ 211 | ||
Unallocated portion of allowance, percentage | 2.10% | 2.50% | 2.10% | 2.50% | 4.70% | 5.30% | ||||
Number of loan modified | Loans | 320 | |||||||||
Amount of deferrals | $ 64,000 | |||||||||
Percetage of deferrals | 6.80% | |||||||||
Uniform Bank Performance Group[Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Delinquency rate | 1.05% | |||||||||
Substandard [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | $ 2,748 | |||||||||
Percentage increase in loans | 13.70% | |||||||||
Substandard [Member] | Minimum [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | $ 20,100 | |||||||||
Substandard [Member] | Maximum [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 22,800 | |||||||||
Special Mention [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | $ 7,301 | |||||||||
Percentage increase in loans | 105.40% | |||||||||
Special Mention [Member] | Agricultural Mortgages [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | $ 5,500 | |||||||||
Special Mention [Member] | Minimum [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 6,900 | |||||||||
Special Mention [Member] | Minimum [Member] | Agricultural Mortgages [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | (3,500) | |||||||||
Special Mention [Member] | Maximum [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 14,200 | |||||||||
Loans Serviced for Others [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Real estate loans serviced for others | $ 217,812 | 217,812 | $ 154,577 | |||||||
Commercial and Industrial Sector [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase (decrease) in ending balance of allowance for loan losses | $ 740 | |||||||||
Increase decrease in loans | $ 70,100 | |||||||||
Paycheck Protection Program loan balances | 77,700 | 77,700 | ||||||||
Term of loan | 2 years | |||||||||
Charge-offs | 23 | 63 | ||||||||
Percentage increase in loans | 73.60% | |||||||||
Commercial and Industrial Sector [Member] | Special Mention [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loan transfer | 3,500 | |||||||||
Hotel Loan [Member] | Special Mention [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loan transfer | 1,500 | |||||||||
Downgraded from pass to substandard [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Livestock operating farm | 3,600 | |||||||||
Downgraded from special mention to substandard [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loan transfer | 16 | |||||||||
Downgraded from Special Mention to Pass [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 1,800 | |||||||||
Downgraded from pass to Special Mention [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 754 | |||||||||
Commercial Real Estate [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Provision (credit) for loan losses | 1,100 | |||||||||
Charge-offs | 122 | |||||||||
Three Loans [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
TDRs loan | 1,932 | 1,932 | ||||||||
One Loans Balance [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Nonaccrual loan | $ 439 | $ 439 | ||||||||
Doubtful [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase (decrease) in ending balance of allowance for loan losses | $ 547 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Schedule of Loan Portfolio by Category) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | $ 842,797 | $ 751,670 | |||||||
Less: Deferred loan costs, net | 380 | 1,948 | |||||||
Allowance for loan losses | (11,996) | $ (10,770) | $ (9,803) | (9,447) | $ (9,474) | $ (8,957) | $ (8,886) | $ (8,666) | |
Total net loans | 831,181 | 744,171 | 728,630 | ||||||
Home Equity Loan [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | 10,788 | 9,770 | |||||||
Home Equity Lines of Credit [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | 68,368 | 70,809 | |||||||
Commercial Real Estate [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | 332,655 | 311,788 | |||||||
Allowance for loan losses | (6,227) | (4,938) | (4,582) | (4,319) | (4,565) | (4,417) | (4,488) | (4,296) | |
Commercial Real Estate [Member] | Mortgages [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | 136,125 | 120,212 | |||||||
Commercial Real Estate [Member] | Agricultural Sector [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | 174,150 | 175,367 | |||||||
Commercial Real Estate [Member] | Construction [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | 22,380 | 16,209 | |||||||
Consumer Real Estate [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | [1] | 339,621 | 339,255 | ||||||
Allowance for loan losses | (3,372) | (3,297) | (3,151) | (2,855) | (2,547) | (2,390) | (2,268) | (2,408) | |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | [1] | 260,465 | 258,676 | ||||||
Consumer Real Estate [Member] | Home Equity Loan [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | [1] | 10,788 | 9,770 | ||||||
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | [1] | 68,368 | 70,809 | ||||||
Commercial and Industrial [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | 165,331 | 95,211 | |||||||
Allowance for loan losses | |||||||||
Commercial and Industrial [Member] | Agricultural Sector [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | 20,494 | 20,804 | |||||||
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | 128,414 | 58,019 | |||||||
Commercial and Industrial [Member] | Tax-free loans [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | 16,423 | 16,388 | |||||||
Consumer Portfolio Segment [Member] | |||||||||
Loan Portfolio | |||||||||
Gross loans prior to deferred fees | 5,190 | 5,416 | |||||||
Allowance for loan losses | $ (54) | $ (52) | $ (56) | $ (41) | $ (54) | $ (76) | $ (101) | $ (102) | |
[1] | (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $217,812,000 and $154,577,000 as of September 30, 2020, and December 31, 2019, respectively. |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Schedule of Commercial and Consumer Credit Exposure) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Total | $ 497,986 | $ 406,999 |
Construction [Member] | ||
Total | 22,380 | 16,209 |
Agricultural Mortgage Loans [Member] | ||
Total | 174,150 | 175,367 |
Commercial and Industrial Sector [Member] | ||
Total | 128,414 | 58,019 |
Tax-free loans [Member] | ||
Total | 16,423 | 16,388 |
Agriculture loans [Member] | ||
Total | 20,494 | 20,804 |
Commercial [Member] | ||
Total | 136,125 | 120,212 |
Pass [Member] | ||
Total | 460,944 | 379,926 |
Pass [Member] | Construction [Member] | ||
Total | 20,884 | 16,209 |
Pass [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 160,772 | 158,896 |
Pass [Member] | Commercial and Industrial Sector [Member] | ||
Total | 117,506 | 52,028 |
Pass [Member] | Tax-free loans [Member] | ||
Total | 16,423 | 16,388 |
Pass [Member] | Agriculture loans [Member] | ||
Total | 18,646 | 18,530 |
Pass [Member] | Commercial [Member] | ||
Total | 126,713 | 117,875 |
Special Mention [Member] | ||
Total | 14,231 | 6,930 |
Special Mention [Member] | Construction [Member] | ||
Total | 1,496 | |
Special Mention [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 2,630 | 4,546 |
Special Mention [Member] | Commercial and Industrial Sector [Member] | ||
Total | 5,779 | 618 |
Special Mention [Member] | Tax-free loans [Member] | ||
Total | ||
Special Mention [Member] | Agriculture loans [Member] | ||
Total | 826 | 939 |
Special Mention [Member] | Commercial [Member] | ||
Total | 3,500 | 827 |
Substandard [Member] | ||
Total | 22,811 | 20,063 |
Substandard [Member] | Construction [Member] | ||
Total | ||
Substandard [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 10,748 | 11,925 |
Substandard [Member] | Commercial and Industrial Sector [Member] | ||
Total | 5,129 | 5,293 |
Substandard [Member] | Tax-free loans [Member] | ||
Total | ||
Substandard [Member] | Agriculture loans [Member] | ||
Total | 1,022 | 1,335 |
Substandard [Member] | Commercial [Member] | ||
Total | 5,912 | 1,510 |
Doubtful [Member] | ||
Total | 80 | |
Doubtful [Member] | Construction [Member] | ||
Total | ||
Doubtful [Member] | Agricultural Mortgage Loans [Member] | ||
Total | ||
Doubtful [Member] | Commercial and Industrial Sector [Member] | ||
Total | 80 | |
Doubtful [Member] | Tax-free loans [Member] | ||
Total | ||
Doubtful [Member] | Agriculture loans [Member] | ||
Total | ||
Doubtful [Member] | Construction [Member] | ||
Total | ||
Doubtful [Member] | Commercial [Member] | ||
Total | ||
Loss [Member] | ||
Total | ||
Loss [Member] | Construction [Member] | ||
Total | ||
Loss [Member] | Agricultural Mortgage Loans [Member] | ||
Total | ||
Loss [Member] | Commercial and Industrial Sector [Member] | ||
Total | ||
Loss [Member] | Tax-free loans [Member] | ||
Total | ||
Loss [Member] | Agriculture loans [Member] | ||
Total | ||
Loss [Member] | Commercial [Member] | ||
Total |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Schedule of Credit Risk Profile by Payment Performance) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Gross loans prior to deferred fees | $ 842,797 | $ 751,670 |
Home Equity Loan [Member] | ||
Gross loans prior to deferred fees | 10,788 | 9,770 |
Home Equity Lines of Credit [Member] | ||
Gross loans prior to deferred fees | 68,368 | 70,809 |
1-4 Family Residential Mortgages [Member] | ||
Gross loans prior to deferred fees | 260,465 | 258,676 |
Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 5,190 | 5,416 |
Performing [Member] | ||
Gross loans prior to deferred fees | 343,946 | 343,263 |
Performing [Member] | Home Equity Loan [Member] | ||
Gross loans prior to deferred fees | 10,696 | 9,678 |
Performing [Member] | Home Equity Lines of Credit [Member] | ||
Gross loans prior to deferred fees | 68,358 | 70,799 |
Performing [Member] | 1-4 Family Residential Mortgages [Member] | ||
Gross loans prior to deferred fees | 259,710 | 257,374 |
Performing [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 5,182 | 5,412 |
Nonperforming [Member] | ||
Gross loans prior to deferred fees | 865 | 1,408 |
Nonperforming [Member] | Home Equity Loan [Member] | ||
Gross loans prior to deferred fees | 92 | 92 |
Nonperforming [Member] | Home Equity Lines of Credit [Member] | ||
Gross loans prior to deferred fees | 10 | 10 |
Nonperforming [Member] | 1-4 Family Residential Mortgages [Member] | ||
Gross loans prior to deferred fees | 755 | 1,302 |
Nonperforming [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 8 | 4 |
Consumer Borrower [Member] | ||
Gross loans prior to deferred fees | $ 344,811 | $ 344,671 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Schedule of Aging of Loans Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 3,407 | $ 6,812 |
Current | 839,390 | 744,858 |
Total Loans Receivable | 842,797 | 751,670 |
Loans Receivable - Greater than 90 Days and Accruing | 284 | 821 |
1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 260,465 | 258,676 |
Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 210 | 228 |
Current | 135,915 | 119,984 |
Total Loans Receivable | 136,125 | 120,212 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 532 | 2,032 |
Current | 173,618 | 173,335 |
Total Loans Receivable | 174,150 | 175,367 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Current | 22,380 | 16,209 |
Total Loans Receivable | 22,380 | 16,209 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,835 | 3,717 |
Current | 258,630 | 254,959 |
Total Loans Receivable | 260,465 | 258,676 |
Loans Receivable - Greater than 90 Days and Accruing | 266 | 807 |
Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 92 | 144 |
Current | 10,696 | 9,626 |
Total Loans Receivable | 10,788 | 9,770 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 78 | 53 |
Current | 68,290 | 70,756 |
Total Loans Receivable | 68,368 | 70,809 |
Loans Receivable - Greater than 90 Days and Accruing | 10 | 10 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 597 | 606 |
Current | 127,817 | 57,413 |
Total Loans Receivable | 128,414 | 58,019 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Current | 16,423 | 16,388 |
Total Loans Receivable | 16,423 | 16,388 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 32 | 2 |
Current | 20,462 | 20,802 |
Total Loans Receivable | 20,494 | 20,804 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 31 | 30 |
Current | 5,159 | 5,386 |
Total Loans Receivable | 5,190 | 5,416 |
Loans Receivable - Greater than 90 Days and Accruing | 8 | 4 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,828 | 3,395 |
30-59 Days Past Due [Member] | Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
30-59 Days Past Due [Member] | Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 532 | 962 |
30-59 Days Past Due [Member] | Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
30-59 Days Past Due [Member] | Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,080 | 2,254 |
30-59 Days Past Due [Member] | Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 52 | |
30-59 Days Past Due [Member] | Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 68 | 43 |
30-59 Days Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 102 | 68 |
30-59 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
30-59 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 32 | 2 |
30-59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 14 | 14 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9 | 173 |
60-89 Days Past Due [Member] | Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 161 | |
60-89 Days Past Due [Member] | Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9 | 12 |
Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,570 | 3,244 |
Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 210 | 228 |
Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,070 | |
Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Greater than 90 Days Past Due [Member] | Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 755 | 1,302 |
Greater than 90 Days Past Due [Member] | Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 92 | 92 |
Greater than 90 Days Past Due [Member] | Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 10 | 10 |
Greater than 90 Days Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 495 | 538 |
Greater than 90 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Greater than 90 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 8 | $ 4 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Schedule of Nonaccrual Loans by Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | $ 1,286 | $ 2,423 |
Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 210 | 228 |
Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 1,070 | |
Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 489 | 495 |
Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 92 | 92 |
Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 495 | 538 |
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Schedule of Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Total impaired loans | |||||
Average recorded balance of impaired loans | $ 5,060 | $ 3,721 | $ 4,062 | $ 3,278 | $ 3,876 |
Interest income recognized on impaired loans | $ 31 | $ 11 | $ 73 | $ 32 | $ 43 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses (Schedule of Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Loans with no related allowance recorded: | |||||
Recorded Investment | $ 2,686 | $ 2,686 | $ 2,636 | ||
Unpaid Principal Balance | 2,796 | 2,796 | 2,693 | ||
Related Allowance | |||||
Average Recorded Investment | 3,212 | 2,762 | |||
Interest Income Recognized | 58 | 43 | |||
Loans with an allowance recorded: | |||||
Recorded Investment | 3,673 | 3,673 | 1,348 | ||
Unpaid Principal Balance | 3,681 | 3,681 | 1,367 | ||
Related Allowance | 1,138 | 1,138 | 189 | ||
Average Recorded Investment | 850 | 1,114 | |||
Interest Income Recognized | 15 | ||||
Total impaired loans | |||||
Recorded Investment | 6,359 | 6,359 | 3,984 | ||
Unpaid Principal Balance | 6,477 | 6,477 | 4,060 | ||
Related Allowance | 1,138 | 1,138 | 189 | ||
Average Recorded Investment | 5,060 | $ 3,721 | 4,062 | $ 3,278 | 3,876 |
Interest Income Recognized | 31 | $ 11 | 73 | $ 32 | 43 |
Commercial real estate [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 2,191 | 2,191 | 2,636 | ||
Unpaid Principal Balance | 2,273 | 2,273 | 2,693 | ||
Related Allowance | |||||
Average Recorded Investment | 2,688 | 2,762 | |||
Interest Income Recognized | 41 | 43 | |||
Loans with an allowance recorded: | |||||
Recorded Investment | 3,673 | 3,673 | 810 | ||
Unpaid Principal Balance | 3,681 | 3,681 | 818 | ||
Related Allowance | 1,138 | 1,138 | 109 | ||
Average Recorded Investment | 850 | 853 | |||
Interest Income Recognized | 15 | ||||
Total impaired loans | |||||
Recorded Investment | 5,864 | 5,864 | 3,446 | ||
Unpaid Principal Balance | 5,954 | 5,954 | 3,511 | ||
Related Allowance | 1,138 | 1,138 | 109 | ||
Average Recorded Investment | 3,538 | 3,615 | |||
Interest Income Recognized | 56 | 43 | |||
Commercial real estate [Member] | Mortgages [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 699 | 699 | 724 | ||
Unpaid Principal Balance | 752 | 752 | 765 | ||
Related Allowance | |||||
Average Recorded Investment | 716 | 859 | |||
Interest Income Recognized | |||||
Loans with an allowance recorded: | |||||
Recorded Investment | 3,673 | 3,673 | 92 | ||
Unpaid Principal Balance | 3,681 | 3,681 | 100 | ||
Related Allowance | 1,138 | 1,138 | 49 | ||
Average Recorded Investment | 850 | 93 | |||
Interest Income Recognized | 15 | ||||
Total impaired loans | |||||
Recorded Investment | 4,372 | 4,372 | 816 | ||
Unpaid Principal Balance | 4,433 | 4,433 | 865 | ||
Related Allowance | 1,138 | 1,138 | 49 | ||
Average Recorded Investment | 1,566 | 952 | |||
Interest Income Recognized | 15 | ||||
Commercial real estate [Member] | Agricultural Sector [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 1,492 | 1,492 | 1,912 | ||
Unpaid Principal Balance | 1,521 | 1,521 | 1,928 | ||
Related Allowance | |||||
Average Recorded Investment | 1,972 | 1,903 | |||
Interest Income Recognized | 41 | 43 | |||
Loans with an allowance recorded: | |||||
Recorded Investment | 718 | ||||
Unpaid Principal Balance | 718 | ||||
Related Allowance | 60 | ||||
Average Recorded Investment | 760 | ||||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | 1,492 | 1,492 | 2,630 | ||
Unpaid Principal Balance | 1,521 | 1,521 | 2,646 | ||
Related Allowance | 60 | ||||
Average Recorded Investment | 1,972 | 2,663 | |||
Interest Income Recognized | 41 | 43 | |||
Commercial real estate [Member] | Construction [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Loans with an allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Commercial and Industrial Sector [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 495 | 495 | |||
Unpaid Principal Balance | 523 | 523 | |||
Related Allowance | |||||
Average Recorded Investment | 524 | ||||
Interest Income Recognized | 17 | ||||
Loans with an allowance recorded: | |||||
Recorded Investment | 538 | ||||
Unpaid Principal Balance | 549 | ||||
Related Allowance | 80 | ||||
Average Recorded Investment | 261 | ||||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | 495 | 495 | 538 | ||
Unpaid Principal Balance | 523 | 523 | 549 | ||
Related Allowance | 80 | ||||
Average Recorded Investment | 524 | 261 | |||
Interest Income Recognized | 17 | ||||
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Loans with an allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Loans with an allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Total Commercial and Industrial Sector [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 495 | 495 | |||
Unpaid Principal Balance | 523 | 523 | |||
Related Allowance | |||||
Average Recorded Investment | 524 | ||||
Interest Income Recognized | 17 | ||||
Loans with an allowance recorded: | |||||
Recorded Investment | 538 | ||||
Unpaid Principal Balance | 549 | ||||
Related Allowance | 80 | ||||
Average Recorded Investment | 261 | ||||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | 495 | 495 | 538 | ||
Unpaid Principal Balance | 523 | 523 | 549 | ||
Related Allowance | 80 | ||||
Average Recorded Investment | 524 | 261 | |||
Interest Income Recognized | $ 17 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses (Schedule of Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | $ 10,770 | $ 9,803 | $ 9,447 | $ 8,957 | $ 8,886 | $ 8,666 | $ 9,447 | $ 8,666 |
Charge-offs | (26) | (10) | (6) | (188) | (6) | (17) | (42) | (211) |
Recoveries | 2 | 2 | 12 | 75 | 47 | 57 | ||
Provision | 1,250 | 975 | 350 | 630 | 30 | 180 | ||
Ending balance | 11,996 | 10,770 | 9,803 | 9,474 | 8,957 | 8,886 | 11,996 | 9,474 |
Commercial Real Estate [Member] | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | 4,938 | 4,582 | 4,319 | 4,417 | 4,488 | 4,296 | 4,319 | 4,296 |
Charge-offs | (122) | |||||||
Recoveries | 11 | 41 | 43 | 44 | ||||
Provision | 1,289 | 356 | 252 | 229 | (114) | 148 | ||
Ending balance | 6,227 | 4,938 | 4,582 | 4,565 | 4,417 | 4,488 | 6,227 | 4,565 |
Consumer Real Estate [Member] | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | 3,297 | 3,151 | 2,855 | 2,390 | 2,268 | 2,408 | 2,855 | 2,408 |
Charge-offs | ||||||||
Recoveries | 1 | |||||||
Provision | 75 | 146 | 296 | 156 | 122 | (140) | ||
Ending balance | 3,372 | 3,297 | 3,151 | 2,547 | 2,390 | 2,268 | 3,372 | 2,547 |
Commercial and Industrial Sector [Member] | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | 2,132 | 1,956 | 1,784 | 1,366 | 1,569 | 1,428 | 1,784 | 1,428 |
Charge-offs | (23) | (63) | ||||||
Recoveries | 1 | 1 | 1 | 33 | 1 | 13 | ||
Provision | (18) | 175 | 171 | 740 | (204) | 128 | ||
Ending balance | 2,092 | 2,132 | 1,956 | 2,076 | 1,366 | 1,569 | 2,092 | 2,076 |
Consumer Portfolio Segment [Member] | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | 52 | 56 | 41 | 76 | 101 | 102 | 41 | 102 |
Charge-offs | (3) | (10) | (6) | (3) | (6) | (17) | ||
Recoveries | 1 | 1 | 3 | |||||
Provision | 4 | 5 | 21 | (19) | (22) | 16 | ||
Ending balance | 54 | 52 | 56 | 54 | 76 | 101 | 54 | 54 |
Unallocated [Member] | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | 351 | 58 | 448 | 708 | 460 | 432 | 448 | 432 |
Charge-offs | ||||||||
Recoveries | ||||||||
Provision | (100) | 293 | (390) | (476) | 248 | 28 | ||
Ending balance | $ 251 | $ 351 | $ 58 | $ 232 | $ 708 | $ 460 | $ 251 | $ 232 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses (Schedule of Allowance for Credit Losses and Recorded Investment) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Allowance for credit losses: | |||||||||
Ending balance | $ 11,996 | $ 10,770 | $ 9,803 | $ 9,447 | $ 9,474 | $ 8,957 | $ 8,886 | $ 8,666 | |
Individually evaluated for impairment | 1,138 | 189 | |||||||
Collectively evaluated for impairment | 10,858 | 9,258 | |||||||
Loans receivable: | |||||||||
Total Loans Receivable | 842,797 | 751,670 | |||||||
Individually evaluated for impairment | 6,359 | 3,984 | |||||||
Collectively evaluated for impairment | 836,438 | 747,686 | |||||||
Commercial Real Estate [Member] | |||||||||
Allowance for credit losses: | |||||||||
Ending balance | 6,227 | 4,938 | 4,582 | 4,319 | 4,565 | 4,417 | 4,488 | 4,296 | |
Individually evaluated for impairment | 1,138 | 109 | |||||||
Collectively evaluated for impairment | 5,089 | 4,210 | |||||||
Loans receivable: | |||||||||
Total Loans Receivable | 332,655 | 311,788 | |||||||
Individually evaluated for impairment | 5,864 | 3,446 | |||||||
Collectively evaluated for impairment | 326,791 | 308,342 | |||||||
Consumer Real Estate [Member] | |||||||||
Allowance for credit losses: | |||||||||
Ending balance | 3,372 | 3,297 | 3,151 | 2,855 | 2,547 | 2,390 | 2,268 | 2,408 | |
Individually evaluated for impairment | |||||||||
Collectively evaluated for impairment | 3,372 | 2,855 | |||||||
Loans receivable: | |||||||||
Total Loans Receivable | [1] | 339,621 | 339,255 | ||||||
Individually evaluated for impairment | |||||||||
Collectively evaluated for impairment | 339,621 | 339,255 | |||||||
Commercial and Industrial Sector [Member] | |||||||||
Allowance for credit losses: | |||||||||
Ending balance | 2,092 | 2,132 | 1,956 | 1,784 | 2,076 | 1,366 | 1,569 | 1,428 | |
Individually evaluated for impairment | 80 | ||||||||
Collectively evaluated for impairment | 2,092 | 1,704 | |||||||
Loans receivable: | |||||||||
Total Loans Receivable | 165,331 | 95,211 | |||||||
Individually evaluated for impairment | 495 | 538 | |||||||
Collectively evaluated for impairment | 164,836 | 94,673 | |||||||
Consumer Portfolio Segment [Member] | |||||||||
Allowance for credit losses: | |||||||||
Ending balance | 54 | 52 | 56 | 41 | 54 | 76 | 101 | 102 | |
Individually evaluated for impairment | |||||||||
Collectively evaluated for impairment | 54 | 41 | |||||||
Loans receivable: | |||||||||
Total Loans Receivable | 5,190 | 5,416 | |||||||
Individually evaluated for impairment | |||||||||
Collectively evaluated for impairment | 5,190 | 5,416 | |||||||
Unallocated [Member] | |||||||||
Allowance for credit losses: | |||||||||
Ending balance | 251 | $ 351 | $ 58 | 448 | $ 232 | $ 708 | $ 460 | $ 432 | |
Individually evaluated for impairment | |||||||||
Collectively evaluated for impairment | $ 251 | $ 448 | |||||||
[1] | (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $217,812,000 and $154,577,000 as of September 30, 2020, and December 31, 2019, respectively. |
Fair Value Presentation (Narrat
Fair Value Presentation (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, market value | $ 6,854 | $ 6,708 | $ 6,108 |
Impaired Financing Receivable, Recorded Investment | 6,359 | 3,984 | |
Related Allowance | 1,138 | 189 | |
CRA Investment Fund [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, book value | 6,162 | 6,071 | |
Marketable equity securities, market value | 6,162 | 6,071 | |
Regulatory Bank Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, book value | 947 | 614 | |
Marketable equity securities, market value | $ 692 | $ 637 |
Fair Value Presentation (Schedu
Fair Value Presentation (Schedule of Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 360,029 | $ 308,097 |
U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 8,373 | 32,624 |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 65,664 | 48,626 |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 40,905 | 60,253 |
Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 41,053 | 23,262 |
Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 60,714 | 54,880 |
Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 143,320 | 88,452 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 8,373 | 32,624 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 65,664 | 48,626 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 40,905 | 60,253 |
Fair Value Measured on a Recurring Basis [Member] | Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 41,053 | 23,262 |
Fair Value Measured on a Recurring Basis [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 60,714 | 54,880 |
Fair Value Measured on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 143,320 | 88,452 |
Fair Value Measured on a Recurring Basis [Member] | Equity Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 6,854 | 6,708 |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 6,854 | 6,708 |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | Equity Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 6,854 | 6,708 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 360,029 | 308,097 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 8,373 | 32,624 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 65,664 | 48,626 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 40,905 | 60,253 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 41,053 | 23,262 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 60,714 | 54,880 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 143,320 | 88,452 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Equity Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | Equity Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) |
Fair Value Presentation (Sche_2
Fair Value Presentation (Schedule of Assets Measured on Nonrecurring Basis) (Details) - Fair Value Measured on a Nonrecurring Basis [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Non-Recurring Fair Value Measurements | ||
Impaired Loans | $ 5,221 | $ 3,795 |
Total Fair Value, non-recurring | 5,221 | 3,795 |
Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | ||
Total Fair Value, non-recurring | ||
Significant Other Observable Inputs (Level II) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | ||
Total Fair Value, non-recurring | ||
Significant Unobservable Inputs (Level III) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | 5,221 | 3,795 |
Total Fair Value, non-recurring | $ 5,221 | $ 3,795 |
Fair Value Presentation (Sche_3
Fair Value Presentation (Schedule of Level III Inputs to Determine Fair Value) (Details) - Impaired Loans [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Fair Value, non-recurring | $ 5,221 | $ 3,795 | |
Valuation Techniques | [1] | Appraisal of collateral | Appraisal of collateral |
Unobservable inputs - Appraisal adjustments | [2] | (20.00%) | (20.00%) |
Unobservable inputs - Liquidation expenses | [2] | (10.00%) | (10.00%) |
Weighted Average [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable inputs - Appraisal adjustments | [2] | (20.00%) | (20.00%) |
Unobservable inputs - Liquidation expenses | [2] | (10.00%) | (10.00%) |
[1] | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable. | ||
[2] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
FINANCIAL INSTRUMENTS NOT REQ_3
FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Financial Assets: | ||||
Cash and cash equivalents | $ 44,326 | $ 41,053 | $ 41,190 | $ 41,365 |
Securities available for sale | 360,029 | 308,097 | ||
Regulatory stock | 6,525 | 7,291 | 7,200 | |
Loans, net of allowance | 831,181 | 744,171 | 728,630 | |
Bank owned life insurance | 29,418 | 28,818 | 28,610 | |
Financial Liabilities: | ||||
Demand deposits | 465,247 | 363,857 | 347,929 | |
Total deposits | 1,126,821 | 974,088 | 946,991 | |
Short-term borrowings | 1,500 | 200 | ||
Long-term debt | 60,010 | 77,872 | $ 79,989 | |
Carrying Amount [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 44,326 | 41,053 | ||
Regulatory stock | 6,525 | 7,291 | ||
Loans held for sale | 5,008 | 2,342 | ||
Loans, net of allowance | 831,181 | 744,171 | ||
Mortgage servicing assets | 1,041 | 892 | ||
Accrued interest receivable | 4,354 | 3,768 | ||
Bank owned life insurance | 29,418 | 28,818 | ||
Financial Liabilities: | ||||
Demand deposits | 465,247 | 363,857 | ||
Interest-bearing demand deposits | 45,503 | 25,171 | ||
NOW accounts | 111,849 | 96,941 | ||
Money market deposit accounts | 125,665 | 141,649 | ||
Savings accounts | 255,936 | 211,285 | ||
Time deposits | 122,621 | 135,185 | ||
Total deposits | 1,126,821 | 974,088 | ||
Short-term borrowings | 1,500 | 200 | ||
Long-term debt | 60,010 | 77,872 | ||
Accrued interest payable | 359 | 521 | ||
Fair Value [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 44,326 | 41,053 | ||
Regulatory stock | 6,525 | 7,291 | ||
Loans held for sale | 5,008 | 2,342 | ||
Loans, net of allowance | 839,427 | 759,011 | ||
Mortgage servicing assets | 1,058 | 1,049 | ||
Accrued interest receivable | 4,354 | 3,768 | ||
Bank owned life insurance | 29,418 | 28,818 | ||
Financial Liabilities: | ||||
Demand deposits | 465,247 | 363,857 | ||
Interest-bearing demand deposits | 45,503 | 25,171 | ||
NOW accounts | 111,849 | 96,941 | ||
Money market deposit accounts | 125,665 | 141,649 | ||
Savings accounts | 255,936 | 211,285 | ||
Time deposits | 125,225 | 136,781 | ||
Total deposits | 1,129,425 | 975,684 | ||
Short-term borrowings | 1,500 | 200 | ||
Long-term debt | 56,759 | 76,825 | ||
Accrued interest payable | 359 | 521 | ||
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 44,326 | 41,053 | ||
Regulatory stock | 6,525 | 7,291 | ||
Loans held for sale | 5,008 | 2,342 | ||
Loans, net of allowance | ||||
Mortgage servicing assets | ||||
Accrued interest receivable | 4,354 | 3,768 | ||
Bank owned life insurance | 29,418 | 28,818 | ||
Financial Liabilities: | ||||
Demand deposits | 465,247 | 363,857 | ||
Interest-bearing demand deposits | 45,503 | 25,171 | ||
NOW accounts | 111,849 | 96,941 | ||
Money market deposit accounts | 125,665 | 141,649 | ||
Savings accounts | 255,936 | 211,285 | ||
Time deposits | ||||
Total deposits | 1,004,200 | 838,903 | ||
Short-term borrowings | 1,500 | 200 | ||
Long-term debt | ||||
Accrued interest payable | 359 | 521 | ||
Fair Value [Member] | Significant Other Observable Inputs (Level II) [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | ||||
Regulatory stock | ||||
Loans held for sale | ||||
Loans, net of allowance | ||||
Mortgage servicing assets | ||||
Accrued interest receivable | ||||
Bank owned life insurance | ||||
Financial Liabilities: | ||||
Demand deposits | ||||
Interest-bearing demand deposits | ||||
NOW accounts | ||||
Money market deposit accounts | ||||
Savings accounts | ||||
Time deposits | ||||
Total deposits | ||||
Short-term borrowings | ||||
Long-term debt | ||||
Accrued interest payable | ||||
Fair Value [Member] | Significant Unobservable Inputs (Level III) [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | ||||
Regulatory stock | ||||
Loans held for sale | ||||
Loans, net of allowance | 839,427 | 759,011 | ||
Mortgage servicing assets | 1,058 | 1,049 | ||
Accrued interest receivable | ||||
Bank owned life insurance | ||||
Financial Liabilities: | ||||
Demand deposits | ||||
Interest-bearing demand deposits | ||||
NOW accounts | ||||
Money market deposit accounts | ||||
Savings accounts | ||||
Time deposits | 125,225 | 136,781 | ||
Total deposits | 125,225 | 136,781 | ||
Short-term borrowings | ||||
Long-term debt | 56,759 | 76,825 | ||
Accrued interest payable |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Commitment to extend credit | $ 389,000 |
Loan Commitments [Member] | |
Commitment to extend credit | 60,900 |
Line of Credit [Member] | |
Commitment to extend credit | 319,000 |
Letter of Credit [Member] | |
Commitment to extend credit | $ 9,100 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance, beginning | $ 122,162 | $ 116,506 | $ 116,688 | $ 112,514 | $ 106,858 | $ 102,802 | |
Balance, ending | 125,308 | 122,162 | 116,506 | 115,637 | 112,514 | 106,858 | |
Unrealized Gains (Losses) on Securities Available-for-Sale [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance, beginning | [1],[2] | 4,522 | 1,103 | 1,600 | 298 | (3,189) | (5,678) |
Other comprehensive income (loss) before reclassifications | [1],[2] | 1,277 | 3,709 | (274) | 1,420 | 3,571 | 2,553 |
Amount reclassified from accumulated other comprehensive income | [1],[2] | (43) | (290) | (223) | (33) | (84) | (64) |
Period change | [1],[2] | 1,234 | 3,419 | (497) | 1,387 | 3,487 | 2,489 |
Balance, ending | [1],[2] | $ 5,756 | $ 4,522 | $ 1,103 | $ 1,685 | $ 298 | $ (3,189) |
Federal income tax rate | [1],[2] | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% |
[1] | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 21%. | ||||||
[2] | Amounts in parentheses indicate debits. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Schedule of Amounts Reclassified from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Provision for federal income taxes | $ (533) | $ (550) | $ (1,610) | $ (1,596) | |||||
Reclassifications for the period | 2,935 | $ 3,599 | $ 2,165 | 2,924 | $ 3,089 | $ 2,603 | 8,699 | 8,616 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Reclassifications for the period | [1] | 43 | 33 | 556 | 181 | ||||
Unrealized Gains (Losses) on Securities Available-for-Sale [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Gains on the sale of debt securities, net | [1] | 55 | 42 | 704 | 229 | ||||
Provision for federal income taxes | [1] | $ (12) | $ (9) | $ (148) | $ (48) | ||||
[1] | Amounts in parentheses indicate debits. |
Leases (Schedule of ROU Assets
Leases (Schedule of ROU Assets and Lease Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Lease Right-of-Use Assets | ||
Operating lease right-of use assets | $ 774 | $ 908 |
Lease Liabilities | ||
Operating lease liabilities | $ 784 | $ 916 |
Leases (Schedule of Opreating L
Leases (Schedule of Opreating Leases Weighted-Average Discount Term and Rate) (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term Operating leases | 4 years 7 months 6 days | 5 years 3 months 19 days |
Weighted-average discount rate Operating leases | 3.10% | 3.09% |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Operating Leases) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Twelve Months Ended: | |
September 30, 2021 | $ 203 |
September 30, 2022 | 183 |
September 30, 2023 | 151 |
September 30, 2024 | 155 |
September 30, 2025 | 124 |
Thereafter | 28 |
Total Future Minimum Lease Payments | 844 |
Amounts Representing Interests | (60) |
Present Value of Net Future Minimum Lease Payments | $ 784 |
Change in Capital Structure (De
Change in Capital Structure (Details) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Stockholders' Equity Note [Abstract] | |||
Common stock, par value | $ 0.10 | $ 0.10 | $ 0.10 |
Common stock, authorized | 24,000,000 | 24,000,000 | 24,000,000 |
Risks and Uncertainties (Narrat
Risks and Uncertainties (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Mar. 27, 2020USD ($) | Sep. 30, 2020USD ($)Loans | Jun. 30, 2020USD ($) | |
Concentration Risk [Line Items] | |||||
Amount of relief fund | $ 2,000,000,000 | ||||
Eligibility and guidline for PPP loan | an eligible business could apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly payroll costs; or (2) $10 million. The PPP loans have the following terms: (a) an interest rate of 1.0%, (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the PPP loan, including any accrued interest, is eligible to be reduced by the amount of loan forgiveness available under the PPP, provided the employee and compensation levels of the business are maintained and 60% of the loan proceeds are used for payroll expenses, with the remaining 40% of the loan proceeds used for other qualifying expenses such as utilities. | ||||
Amount of funds available for PPP loans | $ 349,000,000 | ||||
Loans approved current balance | $ 57,100 | $ 61,700 | |||
Processing fee assumed | $ 3,250 | ||||
Number of loan modified | Loans | 320 | ||||
Amount of deferrals | $ 64,000 | ||||
Percetage of deferrals | 6.80% | ||||
Commercial or Agricultural Loan [Member] | |||||
Concentration Risk [Line Items] | |||||
Amount of deferrals | $ 45,600 | ||||
Percetage of deferrals | 79.80% | ||||
Residential Mortgage [Member] | |||||
Concentration Risk [Line Items] | |||||
Amount of deferrals | $ 11,300 | ||||
Consumer Loan [Member] | |||||
Concentration Risk [Line Items] | |||||
Amount of deferrals | 212 | ||||
Impaired Loans [Member] | |||||
Concentration Risk [Line Items] | |||||
Amount of Loan | 6,400 | $ 2,800 | |||
Loan increase | 3,600 | ||||
PPP loans [Member] | |||||
Concentration Risk [Line Items] | |||||
Loans approved current balance | $ 77,700 | ||||
Maturity period of loan | 2 years | ||||
PPP loans [Member] | Subsequent Event [Member] | Minimum [Member] | |||||
Concentration Risk [Line Items] | |||||
PPP loans Forgiveness | $ 25,000 | ||||
PPP loans [Member] | Subsequent Event [Member] | Maximum [Member] | |||||
Concentration Risk [Line Items] | |||||
PPP loans Forgiveness | $ 30,000 |
Risks and Uncertainties (Shedul
Risks and Uncertainties (Shedule of Commercial Loans by Type) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)Loans | |
At Risk: | |
Number of Loans | Loans | 909 |
Total Loan Exposure | $ 215,947 |
Principal Balance of Loans | $ 169,157 |
% of Total Loan Balance | 20.06% |
Lessors of Nonresidential Buildings [Member] | |
At Risk: | |
Number of Loans | Loans | 155 |
Total Loan Exposure | $ 72,952 |
Principal Balance of Loans | $ 67,269 |
% of Total Loan Balance | 7.98% |
Lessors of Residential Buildings [Member] | |
At Risk: | |
Number of Loans | Loans | 236 |
Total Loan Exposure | $ 43,984 |
Principal Balance of Loans | $ 39,139 |
% of Total Loan Balance | 4.64% |
Specialized Freight [Member] | |
At Risk: | |
Number of Loans | Loans | 30 |
Total Loan Exposure | $ 15,404 |
Principal Balance of Loans | $ 11,088 |
% of Total Loan Balance | 1.32% |
Residential Remodelers [Member] | |
At Risk: | |
Number of Loans | Loans | 103 |
Total Loan Exposure | $ 11,338 |
Principal Balance of Loans | $ 4,324 |
% of Total Loan Balance | 0.51% |
New Single Family Housing Construction [Member] | |
At Risk: | |
Number of Loans | Loans | 57 |
Total Loan Exposure | $ 8,621 |
Principal Balance of Loans | $ 4,276 |
% of Total Loan Balance | 0.51% |
Passenger Car Leasing [Member] | |
At Risk: | |
Number of Loans | Loans | 136 |
Total Loan Exposure | $ 9,105 |
Principal Balance of Loans | $ 9,100 |
% of Total Loan Balance | 1.08% |
Hotels [Member] | |
At Risk: | |
Number of Loans | Loans | 14 |
Total Loan Exposure | $ 8,260 |
Principal Balance of Loans | $ 4,679 |
% of Total Loan Balance | 0.55% |
Religious Organizations [Member] | |
At Risk: | |
Number of Loans | Loans | 59 |
Total Loan Exposure | $ 7,324 |
Principal Balance of Loans | $ 6,189 |
% of Total Loan Balance | 0.73% |
Car Washes [Member] | |
At Risk: | |
Number of Loans | Loans | 10 |
Total Loan Exposure | $ 6,820 |
Principal Balance of Loans | $ 6,215 |
% of Total Loan Balance | 0.74% |
Concrete & Structural Contractors [Member] | |
At Risk: | |
Number of Loans | Loans | 24 |
Total Loan Exposure | $ 6,528 |
Principal Balance of Loans | $ 4,488 |
% of Total Loan Balance | 0.53% |
Other [Member] | |
At Risk: | |
Number of Loans | Loans | 85 |
Total Loan Exposure | $ 25,611 |
Principal Balance of Loans | $ 12,390 |
% of Total Loan Balance | 1.47% |