Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Entity File Number | 001-40711 | |
Entity Registrant Name | Orange County Bancorp, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-1135778 | |
Entity Address, Address Line One | 212 Dolson Avenue | |
Entity Address, City or Town | Middletown | |
Entity Address State Or Province | NY | |
Entity Address, Postal Zip Code | 10940 | |
City Area Code | 845 | |
Local Phone Number | 341-5000 | |
Title of 12(b) Security | Common Stock, par value $0.50 per share | |
Trading Symbol | OBT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,642,621 | |
Entity Central Index Key | 0001754226 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 180,249 | $ 306,179 |
Investment securities - available-for-sale | 547,272 | 464,797 |
Restricted investment in bank stocks | 3,382 | 2,217 |
Loans | 1,547,704 | 1,291,428 |
Allowance for loan losses | (22,888) | (17,661) |
Loans, net | 1,524,816 | 1,273,767 |
Premises and equipment, net | 14,596 | 14,601 |
Accrued interest receivable | 5,554 | 6,643 |
Bank owned life insurance | 40,222 | 39,513 |
Goodwill | 5,359 | 5,359 |
Intangible assets | 1,464 | 1,678 |
Other assets | 45,456 | 27,829 |
TOTAL ASSETS | 2,368,370 | 2,142,583 |
Deposits: | ||
Noninterest bearing | 788,106 | 701,645 |
Interest bearing | 1,399,447 | 1,212,739 |
Total deposits | 2,187,553 | 1,914,384 |
Note payable | 3,000 | 3,000 |
Subordinated notes, net of issuance costs | 19,431 | 19,376 |
Accrued expenses and other liabilities | 22,196 | 22,987 |
TOTAL LIABILITIES | 2,232,180 | 1,959,747 |
STOCKHOLDERS' EQUITY | ||
Common stock, $0.50 par value; 15,000,000 shares authorized; 5,683,304 issued; 5,642,121 and 5,637,376 outstanding, at September 30, 2022 and December 31, 2021, respectively | 2,842 | 2,842 |
Surplus | 120,068 | 119,825 |
Retained Earnings | 76,860 | 64,941 |
Accumulated other comprehensive income (loss), net of taxes | (62,315) | (3,443) |
Treasury stock, at cost; 41,183 and 45,928 shares at September 30, 2022 and December 31, 2021, respectively | (1,265) | (1,329) |
TOTAL STOCKHOLDERS' EQUITY | 136,190 | 182,836 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,368,370 | $ 2,142,583 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION | ||
Common stock, Par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, Authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, Issued (in shares) | 5,683,304 | 5,683,304 |
Common stock, Outstanding (in shares) | 5,642,121 | 5,637,376 |
Treasury stock (in shares) | 41,183 | 45,928 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 18,113 | $ 15,104 | $ 48,319 | $ 42,364 |
Interest on investment securities: | ||||
Taxable | 2,848 | 1,213 | 6,735 | 3,497 |
Tax exempt | 621 | 417 | 1,655 | 1,189 |
Interest on Federal funds sold and other | 1,259 | 126 | 1,886 | 230 |
TOTAL INTEREST INCOME | 22,841 | 16,860 | 58,595 | 47,280 |
INTEREST EXPENSE | ||||
Savings and NOW accounts | 1,099 | 591 | 2,320 | 1,801 |
Time deposits | 55 | 117 | 194 | 412 |
Note payable | 42 | 42 | 126 | 126 |
Subordinated notes | 230 | 230 | 692 | 689 |
TOTAL INTEREST EXPENSE | 1,426 | 980 | 3,332 | 3,028 |
NET INTEREST INCOME | 21,415 | 15,880 | 55,263 | 44,252 |
Provision for loan losses | 2,084 | 1,008 | 8,517 | 1,883 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 19,331 | 14,872 | 46,746 | 42,369 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 182 | 166 | 511 | 499 |
Trust income | 1,176 | 1,230 | 3,569 | 3,537 |
Investment advisory income | 1,085 | 1,176 | 3,385 | 3,588 |
Earnings on bank owned life insurance | 240 | 209 | 709 | 554 |
Other | 250 | 247 | 741 | 770 |
TOTAL NONINTEREST INCOME | 2,933 | 3,028 | 8,915 | 8,948 |
NONINTEREST EXPENSE | ||||
Salaries | 5,863 | 4,970 | 16,631 | 14,243 |
Employee benefits | 1,483 | 958 | 4,258 | 2,960 |
Occupancy expense | 1,063 | 1,024 | 3,391 | 2,956 |
Professional fees | 766 | 880 | 2,885 | 2,810 |
Directors' fees and expenses | 249 | 251 | 754 | 745 |
Computer software expense | 1,276 | 1,120 | 3,629 | 3,209 |
FDIC assessment | 384 | 333 | 1,006 | 889 |
Advertising expenses | 372 | 297 | 1,127 | 865 |
Advisor expenses related to trust income | 28 | 134 | 186 | 395 |
Telephone expenses | 192 | 150 | 505 | 420 |
Intangible amortization | 71 | 71 | 214 | 214 |
Other | 808 | 785 | 2,322 | 2,050 |
TOTAL NONINTEREST EXPENSE | 12,555 | 10,973 | 36,908 | 31,756 |
Income before income taxes | 9,709 | 6,927 | 18,753 | 19,561 |
Provision for income taxes | 1,856 | 1,351 | 3,460 | 3,767 |
NET INCOME | $ 7,853 | $ 5,576 | $ 15,293 | $ 15,794 |
Basic earnings per share (in dollars per share) | $ 1.40 | $ 1.06 | $ 2.72 | $ 3.33 |
Diluted earnings per share (in dollars per share) | $ 1.40 | $ 1.06 | $ 2.72 | $ 3.33 |
Weighted average shares outstanding, Basic (in shares) | 5,623,172 | 5,249,876 | 5,619,897 | 4,743,348 |
Weighted average shares outstanding, Diluted (in shares) | 5,623,172 | 5,249,876 | 5,619,897 | 4,743,348 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | ||||
Net Income | $ 7,853 | $ 5,576 | $ 15,293 | $ 15,794 |
Unrealized gains/losses on securities: | ||||
Unrealized holding gains/(losses) arising during the period | (21,201) | (134) | (75,262) | (3,856) |
Tax effect | (4,452) | (28) | (15,805) | (810) |
Net of tax | (16,749) | (106) | (59,457) | (3,046) |
Defined benefit pension plans: | ||||
Net gain arising during the period | 240 | 6 | 720 | 20 |
Reclassification adjustment for amortization of prior service cost and net gains included in net periodic pension cost | (7) | (21) | ||
Tax effect | 49 | 1 | 147 | 4 |
Net of tax | 198 | 5 | 594 | 16 |
Deferred compensation liability: | ||||
Unrealized loss | (4) | (4) | (11) | (12) |
Tax effect | (1) | (1) | (2) | (3) |
Net of tax | (3) | (3) | (9) | (9) |
Total other comprehensive income/(loss) | (16,554) | (104) | (58,872) | (3,039) |
Total comprehensive income/(loss) | $ (8,701) | $ 5,472 | $ (43,579) | $ 12,755 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total |
Beginning balance at Dec. 31, 2020 | $ 2,266 | $ 85,111 | $ 47,683 | $ 1,819 | $ (1,456) | $ 135,423 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 15,794 | 15,794 | ||||
Other comprehensive loss, net of taxes | (3,039) | (3,039) | ||||
Cash dividends declared | (2,907) | (2,907) | ||||
Issue of restricted stock | (436) | 436 | ||||
Treasury stock purchased | (379) | (379) | ||||
Restricted stock expense | 390 | 390 | ||||
Stock-based compensation | (1) | 70 | 69 | |||
Issuance of stock offering, net of costs | 576 | 34,676 | 35,252 | |||
Ending balance at Sep. 30, 2021 | 2,842 | 119,740 | 60,570 | (1,220) | (1,329) | 180,603 |
Beginning balance at Jun. 30, 2021 | 2,266 | 84,936 | 56,118 | (1,116) | (1,293) | 140,911 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 5,576 | 5,576 | ||||
Other comprehensive loss, net of taxes | (104) | (104) | ||||
Cash dividends declared | (1,124) | (1,124) | ||||
Treasury stock purchased | (36) | (36) | ||||
Restricted stock expense | 128 | 128 | ||||
Issuance of stock offering, net of costs | 576 | 34,676 | 35,252 | |||
Ending balance at Sep. 30, 2021 | 2,842 | 119,740 | 60,570 | (1,220) | (1,329) | 180,603 |
Beginning balance at Dec. 31, 2021 | 2,842 | 119,825 | 64,941 | (3,443) | (1,329) | 182,836 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 15,293 | 15,293 | ||||
Other comprehensive loss, net of taxes | (58,872) | (58,872) | ||||
Cash dividends declared | (3,374) | (3,374) | ||||
Treasury stock purchased | (308) | (308) | ||||
Restricted stock expense | 133 | 133 | ||||
Stock-based compensation | 110 | 372 | 482 | |||
Ending balance at Sep. 30, 2022 | 2,842 | 120,068 | 76,860 | (62,315) | (1,265) | 136,190 |
Beginning balance at Jun. 30, 2022 | 2,842 | 119,946 | 70,131 | (45,761) | (1,435) | 145,723 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 7,853 | 7,853 | ||||
Other comprehensive loss, net of taxes | (16,554) | (16,554) | ||||
Cash dividends declared | (1,124) | (1,124) | ||||
Treasury stock purchased | (119) | (119) | ||||
Restricted stock expense | 33 | 33 | ||||
Stock-based compensation | 89 | 289 | 378 | |||
Ending balance at Sep. 30, 2022 | $ 2,842 | $ 120,068 | $ 76,860 | $ (62,315) | $ (1,265) | $ 136,190 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONDENSED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||||
Cash dividends declared per share | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 |
Restricted stock issued (in shares) | 15,162 | |||
Treasury stock purchased (in shares) | 3,035 | 1,061 | 7,652 | 13,292 |
Stock-based compensation (in shares) | 9,637 | 12,397 | 2,404 | |
Stock issuance costs | $ 1,150,000 | $ 1,150,000 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 15,293 | $ 15,794 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 8,517 | 1,883 |
Depreciation | 1,150 | 1,002 |
Accretion on loans | (2,298) | (4,321) |
Amortization of intangibles | 214 | 214 |
Amortization of subordinated notes issuance costs | 55 | 52 |
Restricted stock expense | 133 | 390 |
Stock-based compensation | 482 | 69 |
Net amortization of investment premiums | 1,339 | 1,583 |
Earnings on bank owned life insurance | (709) | (554) |
Net change in: | ||
Accrued interest receivable | 1,089 | (618) |
Other assets | (1,230) | (3,379) |
Other liabilities | (799) | 2,438 |
Net cash from operating activities | 23,236 | 14,553 |
Cash flows from investing activities | ||
Purchases of investment securities available-for-sale | (210,589) | (193,490) |
Proceeds from sales and paydowns of investment securities available-for-sale | 46,360 | 68,051 |
Proceeds from maturities and calls of investment securities available-for-sale | 5,154 | 28,013 |
(Purchase) proceeds of restricted investment in bank stocks | (1,189) | (783) |
Proceeds from redemptions of restricted investment in bank stocks | 24 | 15 |
Loans purchased | (8,232) | |
Net increase in loans | (257,268) | (122,301) |
Additions to premises and equipment | (1,145) | (1,367) |
Purchase of bank owned life insurance | (10,200) | |
Net cash used by investing activities | (418,653) | (240,294) |
Cash flows from financing activities | ||
Net increase in deposits | 273,169 | 462,614 |
Proceeds of issuance of stock offering , net of costs | 35,252 | |
Cash dividends paid | (3,374) | (2,907) |
Purchases of treasury stock | (308) | (379) |
Net cash from financing activities | 269,487 | 494,580 |
Net change in cash and cash equivalents | (125,930) | 268,839 |
Beginning cash and cash equivalents | 306,179 | 121,232 |
Ending cash and cash equivalents | 180,249 | 390,071 |
Supplemental cash flow information: | ||
Interest paid | 3,550 | 3,289 |
Income taxes paid | 4,596 | 2,763 |
Supplemental noncash disclosures: | ||
Lease liabilities arising from obtaining right-of-use assets | $ 2,537 | $ 3,198 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1 — Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Principles of Consolidation: The Company provides commercial and consumer banking services to individuals, small businesses and local municipal governments as well as trust and investment services through the Bank and HVIA. The Company is headquartered in Middletown, New York, with eight locations in Orange County, New York, seven in Westchester County, New York, two in Rockland County, New York, and one in Bronx County, New York. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial and residential mortgage loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the areas in which they operate. Assets held by the Company in an agency or fiduciary capacity for its customers are excluded from the consolidated financial statements since they do not constitute assets of the Company. Assets held by the Company in an agency or fiduciary capacity for its customers amounted to $1,157,837 and $1,325,894 at September 30, 2022 and December 31, 2021, respectively. Certain information and footnote disclosures normally included in the audited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2021 for Orange County Bancorp, Inc. contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 30, 2022. In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting solely of normal and recurring accruals) necessary to present fairly the financial position as of September 30, 2022, the results of operations, comprehensive income/(loss), changes in stockholders’ equity for the three and nine months ended September 30, 2022 and 2021 and cash flow statements for the nine months ended September 30, 2022 and 2021. The results of operations for any interim period are not necessarily indicative of the results that may be expected for the full year or for any future period. Certain reclassifications have been made to the financial statements to conform with prior period presentations. Use of Estimates: Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments — Credit Losses Topic 326: Measurement of Credit Losses on Financial Instruments. The objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. In November 2019, the FASB adopted changes to delay the effective date of ASU 2016-13 to January 2023 for certain entities, including certain Securities and Exchange Commission filers, public business entities, and private companies. As a result, the Company is eligible for the delay and will adopt the ASU effective January 1, 2023. The Company has been working with a third-party vendor in the development of certain methodologies and modeling techniques that will be implemented to accommodate this adoption. The modeling contemplates projected loss drivers derived from a cross-section of as many peer institutions with similar geographic, loan concentration, and charge-off history to that of the Company. Correlation studies were conducted to determine the predictive strength of certain macroeconomic factors with those observed loss histories. The Company will be using a discounted cash flow analysis, in conjunction with macroeconomic forecasts to establish probability of default and loss given default parameters; which will ultimately support the derivation of projected losses based on the amortized cost of the segmented loan portfolio. At this time, the Company is modeling projected losses in parallel with the current incurred loss methodology. Further, the Company is currently working with a third-party analytics consulting firm for the purposes of validating the underlying modeling assumptions, loss drivers, data mapping, and governance documentation. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investment Securities | |
Investment Securities | Note 2 — Investment Securities The amortized cost and fair value of investment securities at September 30, 2022 and December 31, 2021: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale September 30, 2022 U.S. government agencies $ 107,694 $ 34 $ (10,467) $ 97,261 Mortgage-backed securities 374,372 — (46,047) 328,325 Corporate Securities 28,565 — (1,998) 26,567 Obligations of states and political subdivisions 113,258 41 (18,180) 95,119 Total debt securities $ 623,889 $ 75 $ (76,692) $ 547,272 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale December 31, 2021 U.S. government agencies $ 80,596 $ 440 $ (1,330) $ 79,706 Mortgage-backed securities 272,931 1,285 (3,784) 270,432 Corporate Securities 20,081 278 (148) 20,211 Obligations of states and political subdivisions 92,545 2,149 (246) 94,448 Total debt securities $ 466,153 $ 4,152 $ (5,508) $ 464,797 There were no proceeds from sales of securities and associated gains and losses for the three and nine months ended September 30, 2022 and 2021. The amortized cost and fair value of debt securities as of September 30, 2022 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-sale Amortized Fair Cost Value Due in one year or less $ 4,067 $ 4,083 Due after one through five years 26,077 25,102 Due after five through ten years 73,571 65,873 Due after ten years 145,802 123,889 249,517 218,947 Mortgage-backed securities 374,372 328,325 Total debt securities $ 623,889 $ 547,272 Securities pledged at September 30, 2022 and December 31, 2021 had a carrying amount of $424,196 and $233,907 and were pledged to secure public deposits. At September 30, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than the US Government and its agencies, in an amount greater than 10% of stockholders’ equity. The following tables summarize securities with unrealized losses at September 30, 2022 and December 31, 2021, aggregated by major security types and length of time in continuous loss position: Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-sale September 30, 2022 U.S. government agencies $ 58,924 $ (4,207) $ 32,962 $ (6,260) $ 91,886 $ (10,467) Mortgage-backed securities 196,565 (20,462) 121,896 (25,585) 318,461 (46,047) Corporate Securities 14,203 (859) 8,363 (1,139) 22,566 (1,998) Obligations of states and political subdivisions 78,099 (14,952) 10,985 (3,228) 89,084 (18,180) Total debt securities $ 347,791 $ (40,480) $ 174,206 $ (36,212) $ 521,997 $ (76,692) Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-sale December 31, 2021 U.S. government agencies $ 10,337 $ (121) $ 32,210 $ (1,209) $ 42,547 $ (1,330) Mortgage-backed securities 177,506 (3,273) 14,134 (511) 191,640 (3,784) Corporate Securities 9,354 (148) — — 9,354 (148) Obligations of states and political subdivisions 13,349 (138) 3,298 (108) 16,647 (246) Total debt securities $ 210,546 $ (3,680) $ 49,642 $ (1,828) $ 260,188 $ (5,508) There was no other than temporary impairment loss recognized on any securities at September 30, 2022 or December 31, 2021. As of September 30, 2022, the Company’s securities portfolio consisted of 293 securities, 260 of which were in an unrealized loss position. As of December 31, 2021, the Company’s securities portfolio consisted of 252 securities, 78 of which were in an unrealized loss position. Unrealized losses are primarily related to the Company’s mortgage backed securities, U.S. government agency securities, and investments in obligations of states and political subdivisions as discussed below. At September 30, 2022, mortgage-backed securities held by the Company were issued by U.S. government sponsored entities and agencies. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other than temporarily impaired at September 30, 2022. The Company’s unrealized losses on U.S. government agency securities relate primarily to its investment in Small Business Administration (“SBA”) issued securities. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other than temporarily impaired at September 30, 2022. At September 30, 2022, the Company’s unrealized loss on obligations of state and political subdivisions was related to the decline in fair value. The fair value decline is driven by interest rate impact and not credit quality. The Company does not have the intent to sell these securities and it is likely that the Company will not be required to sell the securities before their anticipated recovery. Accordingly, the Company does not consider these securities to be other than temporarily impaired at September 30, 2022. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2022 | |
Loans | |
Loans | Note 3 — Loans Loans at September 30, 2022 and December 31, 2021 were as follows: September 30, 2022 December 31, 2021 Commercial and industrial $ 251,293 $ 268,508 Commercial real estate 1,059,821 852,707 Commercial real estate construction 132,945 72,250 Residential real estate 73,552 65,248 Home equity 12,750 13,638 Consumer 17,343 19,077 Total $ 1,547,704 $ 1,291,428 Included in commercial and industrial loans as of September 30, 2022 and December 31, 2021 were loans issued under the SBA’s Paycheck Protection Program (“PPP”) of $1,897 and $38,114, respectively. The following tables present the activity in the allowance for loan losses by portfolio segment for each of the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 9,332 $ 12,303 $ 1,318 $ 299 $ 68 $ 322 $ 23,642 Provision for loan losses 573 1,110 279 60 1 61 2,084 Charge-offs (2,817) — — — — (70) (2,887) Recoveries 22 26 — — — 1 49 Ending balance $ 7,110 $ 13,439 $ 1,597 $ 359 $ 69 $ 314 $ 22,888 Nine Months Ended September 30, 2022 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 4,901 $ 11,183 $ 964 $ 272 $ 80 $ 261 $ 17,661 Provision for loan losses 5,066 2,230 633 138 (11) 461 8,517 Charge-offs (2,894) — — (51) — (449) (3,394) Recoveries 37 26 — — — 41 104 Ending balance $ 7,110 $ 13,439 $ 1,597 $ 359 $ 69 $ 314 $ 22,888 Three Months Ended September 30, 2021 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 4,946 10,536 948 301 60 258 $ 17,049 Provision for loan losses 819 428 (149) (70) 20 (40) 1,008 Charge-offs (71) (7) — — — (1) (79) Recoveries 3 59 — — — 62 Ending balance $ 5,697 $ 11,017 $ 799 $ 231 $ 80 $ 217 $ 18,041 Nine Months Ended September 30, 2021 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 4,795 $ 9,782 $ 801 $ 381 $ 77 $ 336 $ 16,172 Provision for loan losses 896 1,272 (2) (150) 3 (136) 1,883 Charge-offs (176) (110) — — — (8) (294) Recoveries 182 73 — — — 25 280 Ending balance $ 5,697 $ 11,017 $ 799 $ 231 $ 80 $ 217 $ 18,041 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2022 and December 31, 2021: Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total September 30, 2022 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 2,721 $ 390 $ — $ — $ — $ — $ 3,111 collectively evaluated for impairment 4,389 13,049 1,597 359 69 314 19,777 Total ending allowance balance $ 7,110 $ 13,439 $ 1,597 $ 359 $ 69 $ 314 $ 22,888 Loans: Ending balance: individually evaluated for impairment $ 4,170 $ 23,165 $ — $ 1,804 $ 53 $ 107 $ 29,299 collectively evaluated for impairment 247,123 1,036,656 132,945 71,748 12,697 17,236 1,518,405 Total ending loans balance $ 251,293 $ 1,059,821 $ 132,945 $ 73,552 $ 12,750 $ 17,343 $ 1,547,704 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total December 31, 2021 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 137 $ 1,272 $ — $ — $ — $ 24 $ 1,433 collectively evaluated for impairment 4,764 9,911 964 272 80 237 16,228 Total ending allowance balance $ 4,901 $ 11,183 $ 964 $ 272 $ 80 $ 261 $ 17,661 Loans: Ending balance: individually evaluated for impairment $ 952 $ 23,523 $ — $ 1,227 $ 50 $ 114 $ 25,866 collectively evaluated for impairment 267,556 829,184 72,250 64,021 13,588 18,963 1,265,562 Total ending loans balance $ 268,508 $ 852,707 $ 72,250 $ 65,248 $ 13,638 $ 19,077 $ 1,291,428 Included in the commercial and industrial loans collectively evaluated for impairment are PPP loans of $1,897 and $38,114 as of September 30, 2022 and December 31, 2021, respectively. PPP loans receivable are guaranteed by the SBA and have no allocation in the allowance for loan losses. The following tables present loans individually evaluated for impairment recognized by class of loans as of September 30, 2022 and December 31, 2021: Unpaid Allowance for Principal Recorded Loan Losses Balance Investment Allocated September 30, 2022 With no related allowance recorded Commercial and industrial $ — $ — $ — Commercial real estate 17,991 17,464 — Commercial real estate construction — — — Residential real estate 1,816 1,804 — Home equity 56 53 — Consumer — — — Total $ 19,863 $ 19,321 $ — With an allowance recorded: Commercial and industrial $ 4,172 $ 4,170 $ 2,721 Commercial real estate 5,721 5,701 390 Commercial real estate construction — — — Residential real estate — — — Home equity — — — Consumer 107 107 — Total $ 10,000 $ 9,978 $ 3,111 Unpaid Allowance for Principal Recorded Loan Losses Balance Investment Allocated December 31, 2021 With no related allowance recorded Commercial and industrial $ 1 $ 1 $ — Commercial real estate 14,291 13,953 — Commercial real estate construction — — — Residential real estate 1,155 1,155 — Home equity 50 50 — Consumer — — — Total $ 15,497 $ 15,159 $ — With an allowance recorded: Commercial and industrial $ 951 $ 951 $ 137 Commercial real estate 9,593 9,570 1,272 Commercial real estate construction — — — Residential real estate 84 72 — Home equity — — — Consumer 114 114 24 Total $ 10,742 $ 10,707 $ 1,433 The following tables present the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ 15 $ — Commercial real estate 17,553 158 13,614 147 Commercial real estate construction 578 — 578 — Residential real estate 1,283 6 588 8 Home equity — — 25 — Consumer — — — — Total $ 19,414 $ 164 $ 14,820 $ 155 With an allowance recorded: Commercial and industrial $ 18,599 $ 52 $ 2,363 $ 33 Commercial real estate 2,259 30 10,335 134 Commercial real estate construction — — — — Residential real estate — — 74 1 Home equity — — — — Consumer 108 1 118 1 Total $ 20,966 $ 83 $ 12,890 $ 169 (1) Cash basis interest income approximates interest income recognized. Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ 32 $ 1 Commercial real estate 17,549 476 13,620 442 Commercial real estate construction 578 — 578 — Residential real estate 983 18 593 23 Home equity — — 25 1 Consumer — — — — Total $ 19,110 $ 494 $ 14,848 $ 467 With an allowance recorded: Commercial and industrial $ 9,264 $ 157 $ 2,892 $ 118 Commercial real estate 2,292 90 10,390 405 Commercial real estate construction — — — — Residential real estate — — 77 2 Home equity — — — — Consumer 110 4 120 5 Total $ 11,666 $ 251 $ 13,479 $ 530 (1) Cash basis interest income approximates interest income recognized. The following table presents the recorded investment in non-accrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2022 and December 31, 2021: Loans Past Due Over 90 Days Non-accrual Still Accruing September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Commercial and industrial $ 4,170 $ — $ 409 $ 720 Commercial real estate 3,958 3,928 — 465 Commercial real estate construction — — — — Residential real estate 1,146 578 — — Home equity 53 50 — — Consumer — 4 456 208 Total $ 9,327 $ 4,560 $ 865 $ 1,393 The following tables present the aging of the recorded investment in past-due loans as of September 30, 2022 and December 31, 2021 by class of loans: 30-59 Days 60-89 Days Greater Than Total Loans Past Due Past Due 90 Days Past Due Not Past Due September 30, 2022 Commercial and industrial $ 461 $ 492 $ 1,500 $ 2,453 $ 248,840 Commercial real estate 281 — 684 965 1,058,856 Commercial real estate construction — — — — 132,945 Residential real estate — 591 1,146 1,737 71,815 Home equity — — — — 12,750 Consumer 92 28 456 576 16,767 Total $ 834 $ 1,111 $ 3,786 $ 5,731 $ 1,541,973 30-59 Days 60-89 Days Greater Than Total Loans Past Due Past Due 90 Days Past Due Not Past Due December 31, 2021 Commercial and industrial $ 541 $ 1,519 $ 720 $ 2,780 $ 265,728 Commercial real estate — 2,873 1,161 4,034 848,673 Commercial real estate construction — — — — 72,250 Residential real estate 26 — 578 604 64,644 Home equity — 58 50 108 13,530 Consumer 1,134 292 212 1,638 17,439 Total $ 1,701 $ 4,742 $ 2,721 $ 9,164 $ 1,282,264 As of September 30, 2022 and December 31, 2021, loans in the process of foreclosure were $2,064 and $2,024 respectively, of which $1,125 and $578 were secured by residential real estate. As of September 30, 2022 and December 31, 2021, the Company has a recorded investment in troubled debt restructurings (“TDRs”) of $14,168 and $14,500 respectively. The Company has allocated $173 and $687 of specific allowance for these loans at September 30, 2022 and December 31, 2021, respectively, and there were no commitments to lend additional funds to borrowers whose loans were classified as TDRs. There were no restructured loans that defaulted within the three or nine months ended September 30, 2022 and September 30, 2021. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. There were no loans whose terms were modified resulting in TDRs during the three and nine months ended September 30, 2022 and September 30, 2021. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $350 thousand and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on an annual basis. The Company uses the following definitions for risk ratings: Special Mention: Substandard: Doubtful: Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. Based on the analysis performed as of September 30, 2022 and December 31, 2021, the risk category of loans by class of loans is as follows: Special Pass Mention Substandard Doubtful Loss Total September 30, 2022 Commercial and industrial $ 246,129 $ 609 $ 1,716 $ 2,839 $ — $ 251,293 Commercial real estate 1,038,272 5,641 15,908 — — 1,059,821 Commercial real estate construction 132,945 — — — — 132,945 Residential real estate 71,815 — 1,737 — — 73,552 Home equity 12,697 — 53 — — 12,750 Consumer 17,236 — 107 — — 17,343 Total $ 1,519,094 $ 6,250 $ 19,521 $ 2,839 $ — $ 1,547,704 Special Pass Mention Substandard Doubtful Loss Total December 31, 2021 Commercial and industrial $ 252,268 $ 4,156 $ 12,084 $ — $ — $ 268,508 Commercial real estate 835,787 679 16,241 — — 852,707 Commercial real estate construction 72,250 — — — — 72,250 Residential real estate 64,094 — 1,154 — — 65,248 Home equity 13,588 50 — — — 13,638 Consumer 18,963 — 114 — — 19,077 Total $ 1,256,950 $ 4,885 $ 29,593 $ — $ — $ 1,291,428 Loans to certain directors and principal officers of the Company, including their immediate families and companies in which they are affiliated, amounted to $11,922 and $5,076 at September 30, 2022 and December 31, 2021, respectively. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value | |
Fair Value | Note 4 — Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 Level Level 3 The Company used the following methods and significant assumptions to estimate fair value: Investment Securities: Impaired Loans and Other Real Estate Owned: Appraisals are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by a third-party appraisal management company that the Company has engaged in accordance with internal vendor management policies and approval of the Company’s Board of Directors. Once received, the appraisal review function is conducted by the appraisal management company and consists of a review of the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Through this review, the appraisal management company evaluates the validity of the appraised value and the strength of the conclusions; which are subsequently confirmed by a member of the Credit Department. Discounts to the appraised value are then applied to recognize the carrying costs incurred until disposition, realtor fees, deterioration in the quality of the asset, and the age of the appraisal. The net effect of these adjustments were included in the charge-off to the allowance upon acquisition of the foreclosed property and/or upon partial charge-off of the impaired loan. The most recent analysis of property appraisals including the appropriate discount rates are incorporated into the allowance methodology for the respective loan portfolio segments. Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using: Quoted Prices in Active Markets Significant Other Significant Total at for Identical Observable Unobservable September 30, Assets Inputs Inputs 2022 (Level 1) (Level 2) (Level 3) U.S. government agencies $ 97,261 $ — $ 97,261 $ — Mortgage-backed securities 328,325 — 328,325 — Corporate securities 26,567 — 26,567 — Obligations of states and political subdivisions 95,119 — 95,119 — Total securities available-for-sale $ 547,272 $ — $ 547,272 $ — There were no transfers between 1 2 Fair Value Measurements Using: Quoted Prices in Active Markets Significant Other Significant Total at for Identical Observable Unobservable December 31, Assets Inputs Inputs 2021 (Level 1) (Level 2) (Level 3) U.S. government agencies 79,706 $ — $ 79,706 $ — Mortgage-backed securities 270,432 — 270,432 — Corporate securities 20,211 — 20,211 — Obligations of states and political subdivisions 94,448 — 94,448 — Total securities available-for-sale $ 464,797 $ — $ 464,797 $ — There were no transfers between 1 2 Assets measured at fair value on a non-recurring basis as of September 30, 2022 and December 31, 2021 are summarized below: Fair Value Measurements Using: Quoted Prices Significant in Active Other Significant Total at Markets for Observable Unobservable September 30, 2022 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Impaired loans $ 1,174 $ — $ — $ 1,174 Fair Value Measurements Using: Quoted Prices Significant in Active Other Significant Total at Markets for Observable Unobservable December 31, 2021 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Impaired loans $ 6,689 $ — $ — $ 6,689 The fair value amounts shown in the above table are impaired loans net of reserves allocated to said loans. The total reserves allocated to these impaired loans were $1,988 and $409 at September 30, 2022 and December 31, 2021, respectively. The following table presents additional quantitative information about level 3 fair value measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021: Fair Value Range September 30, 2022 Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans $ 1,174 Appraisal of collateral (1) Appraisal and liquidation 20%-66% adjustments (2) (62%) (1) Fair value is generally determined through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Fair Value Range December 31, 2021 Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans - Primarily Commercial Real Estate $ 6,689 Appraisal of collateral (1) Appraisal and liquidation 20%-56% adjustments (2) (39%) (1) Fair value is generally determined through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. There were no material collateral dependent, non-TDR impaired loans with a specific reserve as of December 31, 2021. The carrying amounts and estimated fair values of the Company’s financial instruments not carried at fair value are as follows at September 30, 2022 and December 31, 2021: September 30, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 180,249 $ 180,249 $ 180,249 $ — $ — Loans, net 1,524,816 1,504,301 — — 1,504,301 Accrued interest receivable 5,554 5,554 — 2,766 2,788 Restricted investment in bank stocks 3,382 NA — — — Financial liabilities: Deposits 2,187,553 2,187,553 2,119,769 67,784 — Note payable 3,000 2,994 — 2,994 — Subordinated notes, net of issuance costs 19,431 17,906 — 17,906 — Accrued interest payable 32 32 — 32 — December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 306,179 $ 306,179 $ 306,179 $ — $ — Loans, net 1,273,767 1,260,146 — — 1,260,146 Accrued interest receivable 6,643 6,643 — 1,603 5,040 Restricted investment in bank stocks 2,217 NA — — — Financial liabilities: Deposits 1,914,384 1,914,271 1,831,944 82,327 — Note payable 3,000 3,030 — 3,030 — Subordinated notes, net of issuance costs 19,376 18,867 — 18,867 — Accrued interest payable 250 250 — 250 — |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2022 | |
Deposits | |
Deposits | Note 5 — Deposits A summarized analysis of the Bank’s deposits at September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 Non-interest bearing demand accounts $ 788,106 $ 701,645 Interest-bearing demand accounts 349,755 301,596 Money market accounts 743,581 615,111 Savings accounts 236,061 213,592 Certificates of Deposit 70,050 82,440 Total deposits $ 2,187,553 $ 1,914,384 Time deposits that meet or exceed the FDIC insurance limit of $250 at September 30, 2022 and December 31, 2021 were $18,948 and $23,859, respectively. Scheduled maturities of time deposits for the next five years as of September 30, are as follows: 2022 $ 16,683 2023 41,691 2024 6,835 2025 4,841 $ 70,050 Deposits of executive officers, directors and principal officers of the Company, including their immediate families and companies in which they are affiliated, amounted to $11,230 and $6,109 at September 30, 2022 and December 31, 2021, respectively. |
Pension Plan and Stock Compensa
Pension Plan and Stock Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Pension Plan and Stock Compensation | |
Pension Plan and Stock Compensation | Note 6 — Pension Plan and Stock Compensation The Bank has a funded noncontributory defined benefit pension plan that covers substantially all employees meeting certain eligibility requirements. The pension plan was closed to new participants and benefit accruals were frozen as of December 31, 2015. The plan provides defined benefits based on years of service and final average salary. The components of net periodic benefit cost for the Company’s noncontributory defined benefit pension plan for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Service cost $ — $ 47 $ — $ 142 Interest cost 202 190 606 570 Expected return on plan assets (496) (514) (1,489) (1,544) Amortization of transition cost (7) (12) (21) (36) Amortization of net loss — 5 — 16 Net periodic benefit cost/(income) $ (301) $ (284) $ (904) $ (852) The Company has a time based restricted stock plan. For the three months ended September 30, 2022 and 2021, the Company’s recognized stock-based compensation costs were $33 and $128, respectively. For the nine months ended September 30, 2022 and 2021 the Company’s recognized stock-based compensation costs were $133 and $390 , respectively. The Company uses the fair value of the common stock on the date of award to measure compensation cost for restricted stock awards. Compensation cost is recognized over the vesting period of the award using the straight line method. There were A summary of the Company’s restricted stock awards activity for the nine months ended September 30, 2022 is presented below: Weighted Average Fair Shares Value Non-vested at beginning of period 22,922 $ 28.92 Granted — $ Vested (11,245) $ 28.59 Forfeited — $ Non-vested at end of period 11,677 $ 29.24 On September 22, 2021 restricted stock units (RSUs) were granted in the amount of from the Company s 2019 Equity Incentive Plan to officers of the Bank and HVIA and directors of the Company in connection with the successful completion of the Company s initial public stock offering, listing on the NASDAQ Capital Market and the recent past years success experienced by the Bank. Non-employee directors received 16,500 restricted stock units while officers received 31,504 restricted stock units. The restricted stock units granted to officers will vest over three years in approximately 33% increments on the first, second and third anniversary of the date of grant. The restricted stock units granted to nonemployee directors are 100% vested as of the date of grant and are settled in shares of Company common stock upon separation from service. In addition, the Company made a discretionary contribution of $200,000 to the Company s KSOP Trust and purchased shares of the Company s common stock in the open market for the benefit of all eligible non-highly compensated employees who remain employed by the Company, Bank or HVIA as of December 31, 2021. The following table summarizes the activity of RSUs during the nine months ended September 30, 2022: Restricted Stock Units Non-vested RSUs at beginning of period 48,004 Granted 18,555 Vested (9,637) Issued (2,000) Forfeited (2,733) Non-vested RSUs at end of period 52,189 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss). | |
Accumulated Other Comprehensive Income (Loss) | Note 7 — Accumulated Other Comprehensive Income (Loss) The following is a summary of changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (43,780) $ (2,110) $ 129 $ (45,761) Other comprehensive income/(loss) before reclassification (16,749) 206 (3) (16,546) Less amounts reclassified from accumulated other comprehensive income — 8 — 8 Net current period other comprehensive income/(loss) (16,749) 198 (3) (16,554) Ending balance $ (60,529) $ (1,912) $ 126 $ (62,315) Nine Months Ended September 30, 2022 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (1,072) $ (2,506) $ 135 $ (3,443) Other comprehensive income/(loss) before reclassification (59,457) 618 (9) (58,848) Less amounts reclassified from accumulated other comprehensive income — 24 — 24 Net current period other comprehensive income/(loss) (59,457) 594 (9) (58,872) Ending balance $ (60,529) $ (1,912) $ 126 $ (62,315) Three Months Ended September 30, 2021 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ 2,009 $ (3,266) $ 141 $ (1,116) Other comprehensive income/(loss) before reclassification (106) — (3) (109) Less amounts reclassified from accumulated other comprehensive income — 5 — 5 Net current period other comprehensive income/(loss) (106) 5 (3) (104) Ending balance $ 1,903 $ (3,261) $ 138 $ (1,220) Nine Months Ended September 30, 2021 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ 4,949 $ (3,277) $ 147 $ 1,819 Other comprehensive income/(loss) before reclassification (3,046) — (9) (3,055) Less amounts reclassified from accumulated other comprehensive income — 16 — 16 Net current period other comprehensive income/(loss) (3,046) 16 (9) (3,039) Ending balance $ 1,903 $ (3,261) $ 138 $ (1,220) The following reflects significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2022 and 2021: Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement where Net Income is Presented Three Months Ended September 30, Nine Months Ended September 30, Details about Accumulated Other Comprehensive Income Components 2022 2021 2022 2021 Unrealized gains and losses on available-for-sale securities Realized (losses) gains on securities available-for-sale $ — $ — $ — $ — Investment security gains (losses) Total before tax — — — — Tax effect — — — — Provision for income taxes Net of tax $ — $ — $ — $ — Amortization of defined benefit pension items Transition asset $ (7) $ (11) $ (21) $ (36) Other expense Actuarial gains (losses) - 5 — 16 Other expense Total before tax (7) (6) (21) (20) Tax effect (1) (1) (3) (4) Provision for income taxes Net of tax $ (8) $ (5) $ (24) $ (16) Total reclassifications for the period, net of tax $ (8) $ (5) $ (24) $ (16) |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | Note 8 — Revenue from Contracts with Customers All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s gross sources of noninterest income for the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Noninterest Income Service charges on deposit accounts $ 182 $ 166 $ 511 $ 499 Trust income 1,176 1,230 3,569 3,537 Investment advisory income 1,085 1,176 3,385 3,588 Earnings on bank owned life insurance (a) 240 209 709 554 Other (b) 250 247 741 770 Total Noninterest Income $ 2,933 $ 3,028 $ 8,915 $ 8,948 (a) Not within the scope of ASC 606. (b) The Other category includes safe deposit income, checkbook fees, and debit card fee income, totaling $231 and $195 for the three months ended September 30, 2022 and 2021, respectively, and $644 and $588 for the nine months ended September 30, 2022 and 2021, that are within the scope of ASC 606 and loan related fee income and miscellaneous income, totaling $19 and $52 for the three months ended September 30, 2022 and 2021, respectively, and $97 and $182 for the nine months ended September 30, 2022 and 2021 which are outside the scope of ASC 606. The Company earns wealth management fees, which includes trust income and investment advisory income, from its contracts with trust and brokerage customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Company provides the contracted services and are generally assessed based on a tiered scale of the market value of the assets under management at month-end or quarter-end. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Information | |
Segment Information | Note 9 — Segment Information The reportable segments are determined by the products and services offered by the Company, primarily distinguished between banking and wealth management. Loans, investments, and deposits provide the revenues in the banking operation, and trust fees and investment management fees provide the revenues in wealth management. All operations are domestic. Significant segment totals are reconciled to the financial statements as follows: For the three months ended September 30, 2022 For the nine months ended September 30, 2022 Banking Wealth Management Total Segments Banking Wealth Management Total Segments Net interest income $ 21,415 $ — $ 21,415 $ 55,263 $ — $ 55,263 Noninterest income 672 2,261 2,933 1,961 6,954 8,915 Provision for loan loss (2,084) — (2,084) (8,517) — (8,517) Noninterest expenses (10,893) (1,662) (12,555) (31,532) (5,376) (36,908) Income tax expense (1,730) (126) (1,856) (3,129) (331) (3,460) Net income $ 7,380 $ 473 $ 7,853 $ 14,046 $ 1,247 $ 15,293 Total assets $ 2,360,897 $ 7,473 $ 2,368,370 $ 2,360,897 $ 7,473 $ 2,368,370 For the three months ended September 30, 2021 For the nine months ended September 30, 2021 Banking Wealth Management Total Segments Banking Wealth Management Total Segments Net interest income $ 15,880 $ — $ 15,880 $ 44,252 $ — $ 44,252 Noninterest income 622 2,406 3,028 1,823 7,125 8,948 Provision for loan loss (1,008) — (1,008) (1,883) — (1,883) Noninterest expenses (9,279) (1,694) (10,973) (26,741) (5,015) (31,756) Income tax expense (1,201) (150) (1,351) (3,324) (443) (3,767) Net income $ 5,014 $ 562 $ 5,576 $ 14,127 $ 1,667 $ 15,794 Total assets $ 2,166,521 $ 8,708 $ 2,175,229 $ 2,166,521 8,708 $ 2,175,229 |
Regulatory Capital Matters
Regulatory Capital Matters | 9 Months Ended |
Sep. 30, 2022 | |
Regulatory Capital Matters | |
Regulatory Capital Matters | Note 10 — Regulatory Capital Matters The Bank is subject to regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and prompt corrective regulations involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet the minimum capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks, (Basel III rules), became effective for the Bank on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is 2.5%. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion and capital restoration plans are required. Capital levels at September 30, 2022 and at December 31, 2021 exceeded the regulatory minimum levels to be considered well capitalized under the prompt corrective action regulations. Actual and required capital amounts and ratios are presented below at September 30, 2022 and December 31, 2021 for the Bank. To be Well Capitalized For Capital Adequacy For Capital Adequacy under Prompt Actual Purposes Purposes with Capital Buffer Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2022 Total capital to risk weighted assets $ 226,991 13.60 % $ 133,517 8.00 % $ 164,810 9.875 % $ 166,896 10.00 % Tier 1 (Core) capital to risk weighted assets 206,102 12.35 % 100,138 6.00 % 131,431 7.875 % 133,517 8.00 % Common Tier 1 (CET1) to risk weighted assets 206,102 12.35 % 75,103 4.50 % 106,396 6.375 % 108,482 6.50 % Tier 1 (Core) Capital to average assets 206,102 8.48 % 97,267 4.00 % N/A N/A 121,584 5.00 % December 31, 2021 Total capital to risk weighted assets $ 192,359 14.12 % $ 109,000 8.00 % $ 134,546 9.875 % $ 136,250 10.00 % Tier 1 (Core) capital to risk weighted assets 175,318 12.87 % 81,750 6.00 % 107,296 7.875 % 109,000 8.00 % Common Tier 1 (CET1) to risk weighted assets 175,318 12.87 % 61,312 4.50 % 86,859 6.375 % 88,562 6.50 % Tier 1 (Core) Capital to average assets 175,318 8.15 % 86,093 4.00 % N/A N/A 107,616 5.00 % |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation: The Company provides commercial and consumer banking services to individuals, small businesses and local municipal governments as well as trust and investment services through the Bank and HVIA. The Company is headquartered in Middletown, New York, with eight locations in Orange County, New York, seven in Westchester County, New York, two in Rockland County, New York, and one in Bronx County, New York. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial and residential mortgage loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the areas in which they operate. Assets held by the Company in an agency or fiduciary capacity for its customers are excluded from the consolidated financial statements since they do not constitute assets of the Company. Assets held by the Company in an agency or fiduciary capacity for its customers amounted to $1,157,837 and $1,325,894 at September 30, 2022 and December 31, 2021, respectively. Certain information and footnote disclosures normally included in the audited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2021 for Orange County Bancorp, Inc. contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 30, 2022. In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting solely of normal and recurring accruals) necessary to present fairly the financial position as of September 30, 2022, the results of operations, comprehensive income/(loss), changes in stockholders’ equity for the three and nine months ended September 30, 2022 and 2021 and cash flow statements for the nine months ended September 30, 2022 and 2021. The results of operations for any interim period are not necessarily indicative of the results that may be expected for the full year or for any future period. Certain reclassifications have been made to the financial statements to conform with prior period presentations. |
Use of Estimates | Use of Estimates: |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments — Credit Losses Topic 326: Measurement of Credit Losses on Financial Instruments. The objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. In November 2019, the FASB adopted changes to delay the effective date of ASU 2016-13 to January 2023 for certain entities, including certain Securities and Exchange Commission filers, public business entities, and private companies. As a result, the Company is eligible for the delay and will adopt the ASU effective January 1, 2023. The Company has been working with a third-party vendor in the development of certain methodologies and modeling techniques that will be implemented to accommodate this adoption. The modeling contemplates projected loss drivers derived from a cross-section of as many peer institutions with similar geographic, loan concentration, and charge-off history to that of the Company. Correlation studies were conducted to determine the predictive strength of certain macroeconomic factors with those observed loss histories. The Company will be using a discounted cash flow analysis, in conjunction with macroeconomic forecasts to establish probability of default and loss given default parameters; which will ultimately support the derivation of projected losses based on the amortized cost of the segmented loan portfolio. At this time, the Company is modeling projected losses in parallel with the current incurred loss methodology. Further, the Company is currently working with a third-party analytics consulting firm for the purposes of validating the underlying modeling assumptions, loss drivers, data mapping, and governance documentation. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investment Securities | |
Schedule of amortized cost and fair value of investment securities | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale September 30, 2022 U.S. government agencies $ 107,694 $ 34 $ (10,467) $ 97,261 Mortgage-backed securities 374,372 — (46,047) 328,325 Corporate Securities 28,565 — (1,998) 26,567 Obligations of states and political subdivisions 113,258 41 (18,180) 95,119 Total debt securities $ 623,889 $ 75 $ (76,692) $ 547,272 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale December 31, 2021 U.S. government agencies $ 80,596 $ 440 $ (1,330) $ 79,706 Mortgage-backed securities 272,931 1,285 (3,784) 270,432 Corporate Securities 20,081 278 (148) 20,211 Obligations of states and political subdivisions 92,545 2,149 (246) 94,448 Total debt securities $ 466,153 $ 4,152 $ (5,508) $ 464,797 |
Schedule of contractual maturities of debt securities | Available-for-sale Amortized Fair Cost Value Due in one year or less $ 4,067 $ 4,083 Due after one through five years 26,077 25,102 Due after five through ten years 73,571 65,873 Due after ten years 145,802 123,889 249,517 218,947 Mortgage-backed securities 374,372 328,325 Total debt securities $ 623,889 $ 547,272 |
Schedule of securities with unrealized and unrecognized losses | Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-sale September 30, 2022 U.S. government agencies $ 58,924 $ (4,207) $ 32,962 $ (6,260) $ 91,886 $ (10,467) Mortgage-backed securities 196,565 (20,462) 121,896 (25,585) 318,461 (46,047) Corporate Securities 14,203 (859) 8,363 (1,139) 22,566 (1,998) Obligations of states and political subdivisions 78,099 (14,952) 10,985 (3,228) 89,084 (18,180) Total debt securities $ 347,791 $ (40,480) $ 174,206 $ (36,212) $ 521,997 $ (76,692) Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-sale December 31, 2021 U.S. government agencies $ 10,337 $ (121) $ 32,210 $ (1,209) $ 42,547 $ (1,330) Mortgage-backed securities 177,506 (3,273) 14,134 (511) 191,640 (3,784) Corporate Securities 9,354 (148) — — 9,354 (148) Obligations of states and political subdivisions 13,349 (138) 3,298 (108) 16,647 (246) Total debt securities $ 210,546 $ (3,680) $ 49,642 $ (1,828) $ 260,188 $ (5,508) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Loans | |
Schedule of loans | September 30, 2022 December 31, 2021 Commercial and industrial $ 251,293 $ 268,508 Commercial real estate 1,059,821 852,707 Commercial real estate construction 132,945 72,250 Residential real estate 73,552 65,248 Home equity 12,750 13,638 Consumer 17,343 19,077 Total $ 1,547,704 $ 1,291,428 |
Schedule of activity in the allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method | The following tables present the activity in the allowance for loan losses by portfolio segment for each of the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 9,332 $ 12,303 $ 1,318 $ 299 $ 68 $ 322 $ 23,642 Provision for loan losses 573 1,110 279 60 1 61 2,084 Charge-offs (2,817) — — — — (70) (2,887) Recoveries 22 26 — — — 1 49 Ending balance $ 7,110 $ 13,439 $ 1,597 $ 359 $ 69 $ 314 $ 22,888 Nine Months Ended September 30, 2022 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 4,901 $ 11,183 $ 964 $ 272 $ 80 $ 261 $ 17,661 Provision for loan losses 5,066 2,230 633 138 (11) 461 8,517 Charge-offs (2,894) — — (51) — (449) (3,394) Recoveries 37 26 — — — 41 104 Ending balance $ 7,110 $ 13,439 $ 1,597 $ 359 $ 69 $ 314 $ 22,888 Three Months Ended September 30, 2021 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 4,946 10,536 948 301 60 258 $ 17,049 Provision for loan losses 819 428 (149) (70) 20 (40) 1,008 Charge-offs (71) (7) — — — (1) (79) Recoveries 3 59 — — — 62 Ending balance $ 5,697 $ 11,017 $ 799 $ 231 $ 80 $ 217 $ 18,041 Nine Months Ended September 30, 2021 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for loan losses: Beginning balance $ 4,795 $ 9,782 $ 801 $ 381 $ 77 $ 336 $ 16,172 Provision for loan losses 896 1,272 (2) (150) 3 (136) 1,883 Charge-offs (176) (110) — — — (8) (294) Recoveries 182 73 — — — 25 280 Ending balance $ 5,697 $ 11,017 $ 799 $ 231 $ 80 $ 217 $ 18,041 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2022 and December 31, 2021: Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total September 30, 2022 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 2,721 $ 390 $ — $ — $ — $ — $ 3,111 collectively evaluated for impairment 4,389 13,049 1,597 359 69 314 19,777 Total ending allowance balance $ 7,110 $ 13,439 $ 1,597 $ 359 $ 69 $ 314 $ 22,888 Loans: Ending balance: individually evaluated for impairment $ 4,170 $ 23,165 $ — $ 1,804 $ 53 $ 107 $ 29,299 collectively evaluated for impairment 247,123 1,036,656 132,945 71,748 12,697 17,236 1,518,405 Total ending loans balance $ 251,293 $ 1,059,821 $ 132,945 $ 73,552 $ 12,750 $ 17,343 $ 1,547,704 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total December 31, 2021 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 137 $ 1,272 $ — $ — $ — $ 24 $ 1,433 collectively evaluated for impairment 4,764 9,911 964 272 80 237 16,228 Total ending allowance balance $ 4,901 $ 11,183 $ 964 $ 272 $ 80 $ 261 $ 17,661 Loans: Ending balance: individually evaluated for impairment $ 952 $ 23,523 $ — $ 1,227 $ 50 $ 114 $ 25,866 collectively evaluated for impairment 267,556 829,184 72,250 64,021 13,588 18,963 1,265,562 Total ending loans balance $ 268,508 $ 852,707 $ 72,250 $ 65,248 $ 13,638 $ 19,077 $ 1,291,428 |
Schedule of average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans | The following tables present loans individually evaluated for impairment recognized by class of loans as of September 30, 2022 and December 31, 2021: Unpaid Allowance for Principal Recorded Loan Losses Balance Investment Allocated September 30, 2022 With no related allowance recorded Commercial and industrial $ — $ — $ — Commercial real estate 17,991 17,464 — Commercial real estate construction — — — Residential real estate 1,816 1,804 — Home equity 56 53 — Consumer — — — Total $ 19,863 $ 19,321 $ — With an allowance recorded: Commercial and industrial $ 4,172 $ 4,170 $ 2,721 Commercial real estate 5,721 5,701 390 Commercial real estate construction — — — Residential real estate — — — Home equity — — — Consumer 107 107 — Total $ 10,000 $ 9,978 $ 3,111 Unpaid Allowance for Principal Recorded Loan Losses Balance Investment Allocated December 31, 2021 With no related allowance recorded Commercial and industrial $ 1 $ 1 $ — Commercial real estate 14,291 13,953 — Commercial real estate construction — — — Residential real estate 1,155 1,155 — Home equity 50 50 — Consumer — — — Total $ 15,497 $ 15,159 $ — With an allowance recorded: Commercial and industrial $ 951 $ 951 $ 137 Commercial real estate 9,593 9,570 1,272 Commercial real estate construction — — — Residential real estate 84 72 — Home equity — — — Consumer 114 114 24 Total $ 10,742 $ 10,707 $ 1,433 The following tables present the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ 15 $ — Commercial real estate 17,553 158 13,614 147 Commercial real estate construction 578 — 578 — Residential real estate 1,283 6 588 8 Home equity — — 25 — Consumer — — — — Total $ 19,414 $ 164 $ 14,820 $ 155 With an allowance recorded: Commercial and industrial $ 18,599 $ 52 $ 2,363 $ 33 Commercial real estate 2,259 30 10,335 134 Commercial real estate construction — — — — Residential real estate — — 74 1 Home equity — — — — Consumer 108 1 118 1 Total $ 20,966 $ 83 $ 12,890 $ 169 (1) Cash basis interest income approximates interest income recognized. Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ 32 $ 1 Commercial real estate 17,549 476 13,620 442 Commercial real estate construction 578 — 578 — Residential real estate 983 18 593 23 Home equity — — 25 1 Consumer — — — — Total $ 19,110 $ 494 $ 14,848 $ 467 With an allowance recorded: Commercial and industrial $ 9,264 $ 157 $ 2,892 $ 118 Commercial real estate 2,292 90 10,390 405 Commercial real estate construction — — — — Residential real estate — — 77 2 Home equity — — — — Consumer 110 4 120 5 Total $ 11,666 $ 251 $ 13,479 $ 530 (1) Cash basis interest income approximates interest income recognized. |
Schedule of recorded investment in non-accrual and loans past due over 90 days still on accrual by class of loans | Loans Past Due Over 90 Days Non-accrual Still Accruing September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Commercial and industrial $ 4,170 $ — $ 409 $ 720 Commercial real estate 3,958 3,928 — 465 Commercial real estate construction — — — — Residential real estate 1,146 578 — — Home equity 53 50 — — Consumer — 4 456 208 Total $ 9,327 $ 4,560 $ 865 $ 1,393 |
Schedule of aging of the recorded investment in past-due loans | 30-59 Days 60-89 Days Greater Than Total Loans Past Due Past Due 90 Days Past Due Not Past Due September 30, 2022 Commercial and industrial $ 461 $ 492 $ 1,500 $ 2,453 $ 248,840 Commercial real estate 281 — 684 965 1,058,856 Commercial real estate construction — — — — 132,945 Residential real estate — 591 1,146 1,737 71,815 Home equity — — — — 12,750 Consumer 92 28 456 576 16,767 Total $ 834 $ 1,111 $ 3,786 $ 5,731 $ 1,541,973 30-59 Days 60-89 Days Greater Than Total Loans Past Due Past Due 90 Days Past Due Not Past Due December 31, 2021 Commercial and industrial $ 541 $ 1,519 $ 720 $ 2,780 $ 265,728 Commercial real estate — 2,873 1,161 4,034 848,673 Commercial real estate construction — — — — 72,250 Residential real estate 26 — 578 604 64,644 Home equity — 58 50 108 13,530 Consumer 1,134 292 212 1,638 17,439 Total $ 1,701 $ 4,742 $ 2,721 $ 9,164 $ 1,282,264 |
Schedule of risk category of loans by class of loans | Special Pass Mention Substandard Doubtful Loss Total September 30, 2022 Commercial and industrial $ 246,129 $ 609 $ 1,716 $ 2,839 $ — $ 251,293 Commercial real estate 1,038,272 5,641 15,908 — — 1,059,821 Commercial real estate construction 132,945 — — — — 132,945 Residential real estate 71,815 — 1,737 — — 73,552 Home equity 12,697 — 53 — — 12,750 Consumer 17,236 — 107 — — 17,343 Total $ 1,519,094 $ 6,250 $ 19,521 $ 2,839 $ — $ 1,547,704 Special Pass Mention Substandard Doubtful Loss Total December 31, 2021 Commercial and industrial $ 252,268 $ 4,156 $ 12,084 $ — $ — $ 268,508 Commercial real estate 835,787 679 16,241 — — 852,707 Commercial real estate construction 72,250 — — — — 72,250 Residential real estate 64,094 — 1,154 — — 65,248 Home equity 13,588 50 — — — 13,638 Consumer 18,963 — 114 — — 19,077 Total $ 1,256,950 $ 4,885 $ 29,593 $ — $ — $ 1,291,428 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value | |
Summary of assets and liabilities measured at fair value | Fair Value Measurements Using: Quoted Prices in Active Markets Significant Other Significant Total at for Identical Observable Unobservable September 30, Assets Inputs Inputs 2022 (Level 1) (Level 2) (Level 3) U.S. government agencies $ 97,261 $ — $ 97,261 $ — Mortgage-backed securities 328,325 — 328,325 — Corporate securities 26,567 — 26,567 — Obligations of states and political subdivisions 95,119 — 95,119 — Total securities available-for-sale $ 547,272 $ — $ 547,272 $ — Fair Value Measurements Using: Quoted Prices in Active Markets Significant Other Significant Total at for Identical Observable Unobservable December 31, Assets Inputs Inputs 2021 (Level 1) (Level 2) (Level 3) U.S. government agencies 79,706 $ — $ 79,706 $ — Mortgage-backed securities 270,432 — 270,432 — Corporate securities 20,211 — 20,211 — Obligations of states and political subdivisions 94,448 — 94,448 — Total securities available-for-sale $ 464,797 $ — $ 464,797 $ — |
Schedule of assets measured at fair value on a non-recurring | Fair Value Measurements Using: Quoted Prices Significant in Active Other Significant Total at Markets for Observable Unobservable September 30, 2022 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Impaired loans $ 1,174 $ — $ — $ 1,174 Fair Value Measurements Using: Quoted Prices Significant in Active Other Significant Total at Markets for Observable Unobservable December 31, 2021 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Impaired loans $ 6,689 $ — $ — $ 6,689 |
Schedule of level 3 fair value measured at fair value on a non-recurring | Fair Value Range September 30, 2022 Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans $ 1,174 Appraisal of collateral (1) Appraisal and liquidation 20%-66% adjustments (2) (62%) (1) Fair value is generally determined through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Fair Value Range December 31, 2021 Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans - Primarily Commercial Real Estate $ 6,689 Appraisal of collateral (1) Appraisal and liquidation 20%-56% adjustments (2) (39%) (1) Fair value is generally determined through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
Summary of carrying amounts and estimated fair values of financial instruments | September 30, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 180,249 $ 180,249 $ 180,249 $ — $ — Loans, net 1,524,816 1,504,301 — — 1,504,301 Accrued interest receivable 5,554 5,554 — 2,766 2,788 Restricted investment in bank stocks 3,382 NA — — — Financial liabilities: Deposits 2,187,553 2,187,553 2,119,769 67,784 — Note payable 3,000 2,994 — 2,994 — Subordinated notes, net of issuance costs 19,431 17,906 — 17,906 — Accrued interest payable 32 32 — 32 — December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 306,179 $ 306,179 $ 306,179 $ — $ — Loans, net 1,273,767 1,260,146 — — 1,260,146 Accrued interest receivable 6,643 6,643 — 1,603 5,040 Restricted investment in bank stocks 2,217 NA — — — Financial liabilities: Deposits 1,914,384 1,914,271 1,831,944 82,327 — Note payable 3,000 3,030 — 3,030 — Subordinated notes, net of issuance costs 19,376 18,867 — 18,867 — Accrued interest payable 250 250 — 250 — |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deposits | |
Summary of analysis of deposits | September 30, 2022 December 31, 2021 Non-interest bearing demand accounts $ 788,106 $ 701,645 Interest-bearing demand accounts 349,755 301,596 Money market accounts 743,581 615,111 Savings accounts 236,061 213,592 Certificates of Deposit 70,050 82,440 Total deposits $ 2,187,553 $ 1,914,384 |
Schedule of maturities of time deposits | 2022 $ 16,683 2023 41,691 2024 6,835 2025 4,841 $ 70,050 |
Pension Plan and Stock Compen_2
Pension Plan and Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of components of net periodic benefit cost | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Service cost $ — $ 47 $ — $ 142 Interest cost 202 190 606 570 Expected return on plan assets (496) (514) (1,489) (1,544) Amortization of transition cost (7) (12) (21) (36) Amortization of net loss — 5 — 16 Net periodic benefit cost/(income) $ (301) $ (284) $ (904) $ (852) |
Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of restricted stock awards activity | Weighted Average Fair Shares Value Non-vested at beginning of period 22,922 $ 28.92 Granted — $ Vested (11,245) $ 28.59 Forfeited — $ Non-vested at end of period 11,677 $ 29.24 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of restricted stock awards activity | Restricted Stock Units Non-vested RSUs at beginning of period 48,004 Granted 18,555 Vested (9,637) Issued (2,000) Forfeited (2,733) Non-vested RSUs at end of period 52,189 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss). | |
Summary of changes in accumulated other comprehensive income (loss) | The following is a summary of changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (43,780) $ (2,110) $ 129 $ (45,761) Other comprehensive income/(loss) before reclassification (16,749) 206 (3) (16,546) Less amounts reclassified from accumulated other comprehensive income — 8 — 8 Net current period other comprehensive income/(loss) (16,749) 198 (3) (16,554) Ending balance $ (60,529) $ (1,912) $ 126 $ (62,315) Nine Months Ended September 30, 2022 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (1,072) $ (2,506) $ 135 $ (3,443) Other comprehensive income/(loss) before reclassification (59,457) 618 (9) (58,848) Less amounts reclassified from accumulated other comprehensive income — 24 — 24 Net current period other comprehensive income/(loss) (59,457) 594 (9) (58,872) Ending balance $ (60,529) $ (1,912) $ 126 $ (62,315) Three Months Ended September 30, 2021 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ 2,009 $ (3,266) $ 141 $ (1,116) Other comprehensive income/(loss) before reclassification (106) — (3) (109) Less amounts reclassified from accumulated other comprehensive income — 5 — 5 Net current period other comprehensive income/(loss) (106) 5 (3) (104) Ending balance $ 1,903 $ (3,261) $ 138 $ (1,220) Nine Months Ended September 30, 2021 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ 4,949 $ (3,277) $ 147 $ 1,819 Other comprehensive income/(loss) before reclassification (3,046) — (9) (3,055) Less amounts reclassified from accumulated other comprehensive income — 16 — 16 Net current period other comprehensive income/(loss) (3,046) 16 (9) (3,039) Ending balance $ 1,903 $ (3,261) $ 138 $ (1,220) |
Summary of significant amounts reclassified out of each component of accumulated other comprehensive income (loss) | Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement where Net Income is Presented Three Months Ended September 30, Nine Months Ended September 30, Details about Accumulated Other Comprehensive Income Components 2022 2021 2022 2021 Unrealized gains and losses on available-for-sale securities Realized (losses) gains on securities available-for-sale $ — $ — $ — $ — Investment security gains (losses) Total before tax — — — — Tax effect — — — — Provision for income taxes Net of tax $ — $ — $ — $ — Amortization of defined benefit pension items Transition asset $ (7) $ (11) $ (21) $ (36) Other expense Actuarial gains (losses) - 5 — 16 Other expense Total before tax (7) (6) (21) (20) Tax effect (1) (1) (3) (4) Provision for income taxes Net of tax $ (8) $ (5) $ (24) $ (16) Total reclassifications for the period, net of tax $ (8) $ (5) $ (24) $ (16) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contracts with Customers | |
Schedule of noninterest income | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Noninterest Income Service charges on deposit accounts $ 182 $ 166 $ 511 $ 499 Trust income 1,176 1,230 3,569 3,537 Investment advisory income 1,085 1,176 3,385 3,588 Earnings on bank owned life insurance (a) 240 209 709 554 Other (b) 250 247 741 770 Total Noninterest Income $ 2,933 $ 3,028 $ 8,915 $ 8,948 (a) Not within the scope of ASC 606. (b) The Other category includes safe deposit income, checkbook fees, and debit card fee income, totaling $231 and $195 for the three months ended September 30, 2022 and 2021, respectively, and $644 and $588 for the nine months ended September 30, 2022 and 2021, that are within the scope of ASC 606 and loan related fee income and miscellaneous income, totaling $19 and $52 for the three months ended September 30, 2022 and 2021, respectively, and $97 and $182 for the nine months ended September 30, 2022 and 2021 which are outside the scope of ASC 606. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Information | |
Schedule of segment information | For the three months ended September 30, 2022 For the nine months ended September 30, 2022 Banking Wealth Management Total Segments Banking Wealth Management Total Segments Net interest income $ 21,415 $ — $ 21,415 $ 55,263 $ — $ 55,263 Noninterest income 672 2,261 2,933 1,961 6,954 8,915 Provision for loan loss (2,084) — (2,084) (8,517) — (8,517) Noninterest expenses (10,893) (1,662) (12,555) (31,532) (5,376) (36,908) Income tax expense (1,730) (126) (1,856) (3,129) (331) (3,460) Net income $ 7,380 $ 473 $ 7,853 $ 14,046 $ 1,247 $ 15,293 Total assets $ 2,360,897 $ 7,473 $ 2,368,370 $ 2,360,897 $ 7,473 $ 2,368,370 For the three months ended September 30, 2021 For the nine months ended September 30, 2021 Banking Wealth Management Total Segments Banking Wealth Management Total Segments Net interest income $ 15,880 $ — $ 15,880 $ 44,252 $ — $ 44,252 Noninterest income 622 2,406 3,028 1,823 7,125 8,948 Provision for loan loss (1,008) — (1,008) (1,883) — (1,883) Noninterest expenses (9,279) (1,694) (10,973) (26,741) (5,015) (31,756) Income tax expense (1,201) (150) (1,351) (3,324) (443) (3,767) Net income $ 5,014 $ 562 $ 5,576 $ 14,127 $ 1,667 $ 15,794 Total assets $ 2,166,521 $ 8,708 $ 2,175,229 $ 2,166,521 8,708 $ 2,175,229 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Regulatory Capital Matters | |
Schedule of actual and required capital amounts and ratios | Actual and required capital amounts and ratios are presented below at September 30, 2022 and December 31, 2021 for the Bank. To be Well Capitalized For Capital Adequacy For Capital Adequacy under Prompt Actual Purposes Purposes with Capital Buffer Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2022 Total capital to risk weighted assets $ 226,991 13.60 % $ 133,517 8.00 % $ 164,810 9.875 % $ 166,896 10.00 % Tier 1 (Core) capital to risk weighted assets 206,102 12.35 % 100,138 6.00 % 131,431 7.875 % 133,517 8.00 % Common Tier 1 (CET1) to risk weighted assets 206,102 12.35 % 75,103 4.50 % 106,396 6.375 % 108,482 6.50 % Tier 1 (Core) Capital to average assets 206,102 8.48 % 97,267 4.00 % N/A N/A 121,584 5.00 % December 31, 2021 Total capital to risk weighted assets $ 192,359 14.12 % $ 109,000 8.00 % $ 134,546 9.875 % $ 136,250 10.00 % Tier 1 (Core) capital to risk weighted assets 175,318 12.87 % 81,750 6.00 % 107,296 7.875 % 109,000 8.00 % Common Tier 1 (CET1) to risk weighted assets 175,318 12.87 % 61,312 4.50 % 86,859 6.375 % 88,562 6.50 % Tier 1 (Core) Capital to average assets 175,318 8.15 % 86,093 4.00 % N/A N/A 107,616 5.00 % |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies - Nature of Operations and Principles of Consolidation (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) location Institution | Dec. 31, 2021 USD ($) | |
Loans | ||
Assets held in an agency or fiduciary capacity | $ | $ 1,157,837 | $ 1,325,894 |
Number of peer institutions | Institution | 30 | |
Orange County | ||
Loans | ||
Number of offices in New York | 8 | |
Westchester County | ||
Loans | ||
Number of offices in New York | 7 | |
Rockland County | ||
Loans | ||
Number of offices in New York | 2 | |
Bronx County | ||
Loans | ||
Number of offices in New York | 1 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Investment securities | ||
Amortized Cost | $ 623,889 | $ 466,153 |
Unrealized Gains | 75 | 4,152 |
Unrealized Losses | (76,692) | (5,508) |
Fair Value | 547,272 | 464,797 |
U.S. government agencies | ||
Investment securities | ||
Amortized Cost | 107,694 | 80,596 |
Unrealized Gains | 34 | 440 |
Unrealized Losses | (10,467) | (1,330) |
Fair Value | 97,261 | 79,706 |
Mortgage-backed securities | ||
Investment securities | ||
Amortized Cost | 374,372 | 272,931 |
Unrealized Gains | 1,285 | |
Unrealized Losses | (46,047) | (3,784) |
Fair Value | 328,325 | 270,432 |
Corporate Bonds | ||
Investment securities | ||
Amortized Cost | 28,565 | 20,081 |
Unrealized Gains | 278 | |
Unrealized Losses | (1,998) | (148) |
Fair Value | 26,567 | 20,211 |
Obligations of states and political subdivisions | ||
Investment securities | ||
Amortized Cost | 113,258 | 92,545 |
Unrealized Gains | 41 | 2,149 |
Unrealized Losses | (18,180) | (246) |
Fair Value | $ 95,119 | $ 94,448 |
Investment Securities - Gains a
Investment Securities - Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investment Securities | ||||
Proceeds | $ 0 | $ 0 | $ 0 | $ 0 |
Gross gains | 0 | 0 | 0 | 0 |
Gross losses | $ 0 | $ 0 | $ 0 | $ 0 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less, Amortized Cost | $ 4,067 | |
Due after one through five years, Amortized Cost | 26,077 | |
Due after five through ten years, Amortized Cost | 73,571 | |
Due after ten years, Amortized Cost | 145,802 | |
Total, Amortized Cost | 249,517 | |
Mortgage-backed securities | 374,372 | |
Amortized Cost | 623,889 | $ 466,153 |
Fair Value | ||
Due in one year or less, Fair Value | 4,083 | |
Due after one through five years, Fair Value | 25,102 | |
Due after five through ten years, Fair Value | 65,873 | |
Due after ten years, Fair Value | 123,889 | |
Total, Fair Value | 218,947 | |
Mortgage-backed securities | 328,325 | |
Total debt securities, Fair Value | 547,272 | 464,797 |
Mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost | 374,372 | 272,931 |
Fair Value | ||
Total debt securities, Fair Value | 328,325 | 270,432 |
Debt securities pledged as collateral | $ 424,196 | $ 233,907 |
Investment Securities - Securit
Investment Securities - Securities with unrealized and unrecognized losses (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Investment securities | ||
Fair Value, Less than 12 Months | $ 347,791 | $ 210,546 |
Fair Value, 12 Months or More | 174,206 | 49,642 |
Fair Value, Total | 521,997 | 260,188 |
Unrealized Losses, Less than 12 Months | (40,480) | (3,680) |
Unrealized Losses, 12 Months or More | (36,212) | (1,828) |
Unrealized Losses, Total | (76,692) | (5,508) |
U.S. government agencies | ||
Investment securities | ||
Fair Value, Less than 12 Months | 58,924 | 10,337 |
Fair Value, 12 Months or More | 32,962 | 32,210 |
Fair Value, Total | 91,886 | 42,547 |
Unrealized Losses, Less than 12 Months | (4,207) | (121) |
Unrealized Losses, 12 Months or More | (6,260) | (1,209) |
Unrealized Losses, Total | (10,467) | (1,330) |
Mortgage-backed securities | ||
Investment securities | ||
Fair Value, Less than 12 Months | 196,565 | 177,506 |
Fair Value, 12 Months or More | 121,896 | 14,134 |
Fair Value, Total | 318,461 | 191,640 |
Unrealized Losses, Less than 12 Months | (20,462) | (3,273) |
Unrealized Losses, 12 Months or More | (25,585) | (511) |
Unrealized Losses, Total | (46,047) | (3,784) |
Corporate Bonds | ||
Investment securities | ||
Fair Value, Less than 12 Months | 14,203 | 9,354 |
Fair Value, 12 Months or More | 8,363 | |
Fair Value, Total | 22,566 | 9,354 |
Unrealized Losses, Less than 12 Months | (859) | (148) |
Unrealized Losses, 12 Months or More | (1,139) | |
Unrealized Losses, Total | (1,998) | (148) |
Obligations of states and political subdivisions | ||
Investment securities | ||
Fair Value, Less than 12 Months | 78,099 | 13,349 |
Fair Value, 12 Months or More | 10,985 | 3,298 |
Fair Value, Total | 89,084 | 16,647 |
Unrealized Losses, Less than 12 Months | (14,952) | (138) |
Unrealized Losses, 12 Months or More | (3,228) | (108) |
Unrealized Losses, Total | $ (18,180) | $ (246) |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) security | |
Investment Securities | ||
Other than temporary impairment loss recognized | $ | $ 0 | $ 0 |
Number of securities in portfolio | 293 | 252 |
Number of unrealized loss positions | 260 | 78 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loans | ||
Total loans | $ 1,547,704 | $ 1,291,428 |
Commercial and industrial. | Commercial and industrial | ||
Loans | ||
Total loans | 251,293 | 268,508 |
Commercial and industrial. | Paycheck Protection Program | ||
Loans | ||
Total loans | 1,897 | 38,114 |
Commercial real estate. | Commercial real estate | ||
Loans | ||
Total loans | 1,059,821 | 852,707 |
Commercial real estate. | Commercial real estate construction | ||
Loans | ||
Total loans | 132,945 | 72,250 |
Residential real estate. | Residential real estate | ||
Loans | ||
Total loans | 73,552 | 65,248 |
Residential real estate. | Home equity | ||
Loans | ||
Total loans | 12,750 | 13,638 |
Consumer | ||
Loans | ||
Total loans | $ 17,343 | $ 19,077 |
Loans - Allowance for loan loss
Loans - Allowance for loan losses by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Allowance for loan losses: | |||||
Beginning balance | $ 23,642 | $ 17,049 | $ 17,661 | $ 16,172 | |
Provision for loan losses | 2,084 | 1,008 | 8,517 | 1,883 | |
Charge-offs | (2,887) | (79) | (3,394) | (294) | |
Recoveries | 49 | 62 | 104 | 280 | |
Ending balance | 22,888 | 18,041 | 22,888 | 18,041 | |
Allowance for loan losses: | |||||
individually evaluated for impairment | 3,111 | 3,111 | $ 1,433 | ||
collectively evaluated for impairment | 19,777 | 19,777 | 16,228 | ||
Total ending allowance balance | 22,888 | 18,041 | 22,888 | 18,041 | 17,661 |
Loans: | |||||
individually evaluated for impairment | 29,299 | 29,299 | 25,866 | ||
collectively evaluated for impairment | 1,518,405 | 1,518,405 | 1,265,562 | ||
Total ending loans balance | 1,547,704 | 1,547,704 | 1,291,428 | ||
Commercial and industrial. | Commercial and industrial | |||||
Allowance for loan losses: | |||||
Beginning balance | 9,332 | 4,946 | 4,901 | 4,795 | |
Provision for loan losses | 573 | 819 | 5,066 | 896 | |
Charge-offs | (2,817) | (71) | (2,894) | (176) | |
Recoveries | 22 | 3 | 37 | 182 | |
Ending balance | 7,110 | 5,697 | 7,110 | 5,697 | |
Allowance for loan losses: | |||||
individually evaluated for impairment | 2,721 | 2,721 | 137 | ||
collectively evaluated for impairment | 4,389 | 4,389 | 4,764 | ||
Total ending allowance balance | 7,110 | 5,697 | 7,110 | 5,697 | 4,901 |
Loans: | |||||
individually evaluated for impairment | 4,170 | 4,170 | 952 | ||
collectively evaluated for impairment | 247,123 | 247,123 | 267,556 | ||
Total ending loans balance | 251,293 | 251,293 | 268,508 | ||
Commercial and industrial. | Paycheck Protection Program | |||||
Loans: | |||||
Total ending loans balance | 1,897 | 1,897 | 38,114 | ||
Commercial real estate. | Commercial real estate | |||||
Allowance for loan losses: | |||||
Beginning balance | 12,303 | 10,536 | 11,183 | 9,782 | |
Provision for loan losses | 1,110 | 428 | 2,230 | 1,272 | |
Charge-offs | (7) | (110) | |||
Recoveries | 26 | 59 | 26 | 73 | |
Ending balance | 13,439 | 11,017 | 13,439 | 11,017 | |
Allowance for loan losses: | |||||
individually evaluated for impairment | 390 | 390 | 1,272 | ||
collectively evaluated for impairment | 13,049 | 13,049 | 9,911 | ||
Total ending allowance balance | 13,439 | 11,017 | 13,439 | 11,017 | 11,183 |
Loans: | |||||
individually evaluated for impairment | 23,165 | 23,165 | 23,523 | ||
collectively evaluated for impairment | 1,036,656 | 1,036,656 | 829,184 | ||
Total ending loans balance | 1,059,821 | 1,059,821 | 852,707 | ||
Commercial real estate. | Commercial real estate construction | |||||
Allowance for loan losses: | |||||
Beginning balance | 1,318 | 948 | 964 | 801 | |
Provision for loan losses | 279 | (149) | 633 | (2) | |
Ending balance | 1,597 | 799 | 1,597 | 799 | |
Allowance for loan losses: | |||||
collectively evaluated for impairment | 1,597 | 1,597 | 964 | ||
Total ending allowance balance | 1,597 | 799 | 1,597 | 799 | 964 |
Loans: | |||||
collectively evaluated for impairment | 132,945 | 132,945 | 72,250 | ||
Total ending loans balance | 132,945 | 132,945 | 72,250 | ||
Residential real estate. | Residential real estate | |||||
Allowance for loan losses: | |||||
Beginning balance | 299 | 301 | 272 | 381 | |
Provision for loan losses | 60 | (70) | 138 | (150) | |
Charge-offs | (51) | ||||
Ending balance | 359 | 231 | 359 | 231 | |
Allowance for loan losses: | |||||
collectively evaluated for impairment | 359 | 359 | 272 | ||
Total ending allowance balance | 359 | 231 | 359 | 231 | 272 |
Loans: | |||||
individually evaluated for impairment | 1,804 | 1,804 | 1,227 | ||
collectively evaluated for impairment | 71,748 | 71,748 | 64,021 | ||
Total ending loans balance | 73,552 | 73,552 | 65,248 | ||
Residential real estate. | Home equity | |||||
Allowance for loan losses: | |||||
Beginning balance | 68 | 60 | 80 | 77 | |
Provision for loan losses | 1 | 20 | (11) | 3 | |
Ending balance | 69 | 80 | 69 | 80 | |
Allowance for loan losses: | |||||
collectively evaluated for impairment | 69 | 69 | 80 | ||
Total ending allowance balance | 69 | 80 | 69 | 80 | 80 |
Loans: | |||||
individually evaluated for impairment | 53 | 53 | 50 | ||
collectively evaluated for impairment | 12,697 | 12,697 | 13,588 | ||
Total ending loans balance | 12,750 | 12,750 | 13,638 | ||
Consumer | |||||
Allowance for loan losses: | |||||
Beginning balance | 322 | 258 | 261 | 336 | |
Provision for loan losses | 61 | (40) | 461 | (136) | |
Charge-offs | (70) | (1) | (449) | (8) | |
Recoveries | 1 | 41 | 25 | ||
Ending balance | 314 | 217 | 314 | 217 | |
Allowance for loan losses: | |||||
individually evaluated for impairment | 24 | ||||
collectively evaluated for impairment | 314 | 314 | 237 | ||
Total ending allowance balance | 314 | $ 217 | 314 | $ 217 | 261 |
Loans: | |||||
individually evaluated for impairment | 107 | 107 | 114 | ||
collectively evaluated for impairment | 17,236 | 17,236 | 18,963 | ||
Total ending loans balance | $ 17,343 | $ 17,343 | $ 19,077 |
Loans - Loans individually eval
Loans - Loans individually evaluated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Unpaid Principal Balance | |||||
With no related allowance recorded | $ 19,863 | $ 19,863 | $ 15,497 | ||
With an allowance recorded | 10,000 | 10,000 | 10,742 | ||
Recorded Investment | |||||
With no related allowance recorded | 19,321 | 19,321 | 15,159 | ||
With an allowance recorded | 9,978 | 9,978 | 10,707 | ||
Allowance for Loan Losses Allocated | 3,111 | 3,111 | 1,433 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 19,414 | $ 14,820 | 19,110 | $ 14,848 | |
With an allowance recorded | 20,966 | 12,890 | 11,666 | 13,479 | |
Interest Income Recognized | |||||
With no related allowance recorded | 494 | 467 | |||
With an allowance recorded | 251 | 530 | |||
Cash Basis Interest Recognized | |||||
With no related allowance recorded | 164 | 155 | |||
With an allowance recorded | 83 | 169 | |||
Commercial and industrial. | |||||
Unpaid Principal Balance | |||||
With an allowance recorded | 951 | ||||
Recorded Investment | |||||
With an allowance recorded | 951 | ||||
Allowance for Loan Losses Allocated | 137 | ||||
Commercial and industrial. | Commercial and industrial | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 1 | ||||
With an allowance recorded | 4,172 | 4,172 | |||
Recorded Investment | |||||
With no related allowance recorded | 1 | ||||
With an allowance recorded | 4,170 | 4,170 | |||
Allowance for Loan Losses Allocated | 2,721 | 2,721 | |||
Average Recorded Investment | |||||
With no related allowance recorded | 15 | 32 | |||
With an allowance recorded | 18,599 | 2,363 | 9,264 | 2,892 | |
Interest Income Recognized | |||||
With no related allowance recorded | 1 | ||||
With an allowance recorded | 157 | 118 | |||
Cash Basis Interest Recognized | |||||
With an allowance recorded | 52 | 33 | |||
Commercial real estate. | |||||
Unpaid Principal Balance | |||||
With an allowance recorded | 9,593 | ||||
Recorded Investment | |||||
With an allowance recorded | 9,570 | ||||
Allowance for Loan Losses Allocated | 1,272 | ||||
Commercial real estate. | Commercial real estate | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 17,991 | 17,991 | 14,291 | ||
With an allowance recorded | 5,721 | 5,721 | |||
Recorded Investment | |||||
With no related allowance recorded | 17,464 | 17,464 | 13,953 | ||
With an allowance recorded | 5,701 | 5,701 | |||
Allowance for Loan Losses Allocated | 390 | 390 | |||
Average Recorded Investment | |||||
With no related allowance recorded | 17,553 | 13,614 | 17,549 | 13,620 | |
With an allowance recorded | 2,259 | 10,335 | 2,292 | 10,390 | |
Interest Income Recognized | |||||
With no related allowance recorded | 476 | 442 | |||
With an allowance recorded | 90 | 405 | |||
Cash Basis Interest Recognized | |||||
With no related allowance recorded | 158 | 147 | |||
With an allowance recorded | 30 | 134 | |||
Commercial real estate. | Commercial real estate construction | |||||
Average Recorded Investment | |||||
With no related allowance recorded | 578 | 578 | 578 | 578 | |
Residential real estate. | |||||
Unpaid Principal Balance | |||||
With an allowance recorded | 84 | ||||
Recorded Investment | |||||
With an allowance recorded | 72 | ||||
Residential real estate. | Residential real estate | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 1,816 | 1,816 | 1,155 | ||
Recorded Investment | |||||
With no related allowance recorded | 1,804 | 1,804 | 1,155 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 1,283 | 588 | 983 | 593 | |
With an allowance recorded | 74 | 77 | |||
Interest Income Recognized | |||||
With no related allowance recorded | 18 | 23 | |||
With an allowance recorded | 2 | ||||
Cash Basis Interest Recognized | |||||
With no related allowance recorded | 6 | 8 | |||
With an allowance recorded | 1 | ||||
Residential real estate. | Home equity | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 56 | 56 | 50 | ||
Recorded Investment | |||||
With no related allowance recorded | 53 | 53 | 50 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 25 | 25 | |||
Interest Income Recognized | |||||
With no related allowance recorded | 1 | ||||
Consumer | |||||
Unpaid Principal Balance | |||||
With an allowance recorded | 107 | 107 | 114 | ||
Recorded Investment | |||||
With an allowance recorded | 107 | 107 | 114 | ||
Allowance for Loan Losses Allocated | $ 24 | ||||
Average Recorded Investment | |||||
With an allowance recorded | 108 | 118 | 110 | 120 | |
Interest Income Recognized | |||||
With an allowance recorded | $ 4 | $ 5 | |||
Cash Basis Interest Recognized | |||||
With an allowance recorded | $ 1 | $ 1 |
Loans - Recorded investment in
Loans - Recorded investment in non-accrual and loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loans | ||
Non-accrual | $ 9,327 | $ 4,560 |
Loans Past Due Over 90 Days Non-accrual Still Accruing | 865 | 1,393 |
Commercial and industrial. | Commercial and industrial | ||
Loans | ||
Non-accrual | 4,170 | |
Loans Past Due Over 90 Days Non-accrual Still Accruing | 409 | 720 |
Commercial real estate. | Commercial real estate | ||
Loans | ||
Non-accrual | 3,958 | 3,928 |
Loans Past Due Over 90 Days Non-accrual Still Accruing | 465 | |
Residential real estate. | Residential real estate | ||
Loans | ||
Non-accrual | 1,146 | 578 |
Residential real estate. | Home equity | ||
Loans | ||
Non-accrual | 53 | 50 |
Consumer | ||
Loans | ||
Non-accrual | 4 | |
Loans Past Due Over 90 Days Non-accrual Still Accruing | $ 456 | $ 208 |
Loans - Aging of the recorded i
Loans - Aging of the recorded investment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | $ 834 | $ 1,701 |
60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 1,111 | 4,742 |
Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 3,786 | 2,721 |
Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 5,731 | 9,164 |
Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 1,541,973 | 1,282,264 |
Commercial and industrial. | Commercial and industrial | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 461 | 541 |
Commercial and industrial. | Commercial and industrial | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 492 | 1,519 |
Commercial and industrial. | Commercial and industrial | Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 1,500 | 720 |
Commercial and industrial. | Commercial and industrial | Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 2,453 | 2,780 |
Commercial and industrial. | Commercial and industrial | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 248,840 | 265,728 |
Commercial real estate. | Commercial real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 281 | |
Commercial real estate. | Commercial real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 2,873 | |
Commercial real estate. | Commercial real estate | Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 684 | 1,161 |
Commercial real estate. | Commercial real estate | Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 965 | 4,034 |
Commercial real estate. | Commercial real estate | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 1,058,856 | 848,673 |
Commercial real estate. | Commercial real estate construction | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 132,945 | 72,250 |
Residential real estate. | Residential real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 26 | |
Residential real estate. | Residential real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 591 | |
Residential real estate. | Residential real estate | Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 1,146 | 578 |
Residential real estate. | Residential real estate | Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 1,737 | 604 |
Residential real estate. | Residential real estate | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 71,815 | 64,644 |
Residential real estate. | Home equity | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 58 | |
Residential real estate. | Home equity | Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 50 | |
Residential real estate. | Home equity | Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 108 | |
Residential real estate. | Home equity | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 12,750 | 13,530 |
Consumer | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 92 | 1,134 |
Consumer | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 28 | 292 |
Consumer | Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 456 | 212 |
Consumer | Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | 576 | 1,638 |
Consumer | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Loans | $ 16,767 | $ 17,439 |
Loans - Troubled debt restructu
Loans - Troubled debt restructurings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Loans | |||||
Loans in process of foreclosure | $ 2,064 | $ 2,064 | $ 2,024 | ||
Recorded investment in troubled debt restructurings | 14,168 | 14,168 | 14,500 | ||
Allocated specific allowance | 173 | 173 | 687 | ||
Commitments to lend additional funds | 0 | 0 | 0 | ||
Loans restructured loans that defaulted | $ 0 | $ 0 | $ 0 | $ 0 | |
Loans modified resulting in TDRs | 0 | 0 | 0 | 0 | |
Residential real estate. | Residential real estate | |||||
Loans | |||||
Loans in process of foreclosure | $ 1,125 | $ 1,125 | $ 578 |
Loans - Risk category of loans
Loans - Risk category of loans by class of loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loans | ||
Loans | $ 1,547,704 | $ 1,291,428 |
Pass | ||
Loans | ||
Loans | 1,519,094 | 1,256,950 |
Special Mention | ||
Loans | ||
Loans | 6,250 | 4,885 |
Substandard | ||
Loans | ||
Loans | 19,521 | 29,593 |
Doubtful | ||
Loans | ||
Loans | 2,839 | |
Commercial and industrial. | Commercial and industrial | ||
Loans | ||
Loans | 251,293 | 268,508 |
Commercial and industrial. | Commercial and industrial | Pass | ||
Loans | ||
Loans | 246,129 | 252,268 |
Commercial and industrial. | Commercial and industrial | Special Mention | ||
Loans | ||
Loans | 609 | 4,156 |
Commercial and industrial. | Commercial and industrial | Substandard | ||
Loans | ||
Loans | 1,716 | 12,084 |
Commercial and industrial. | Commercial and industrial | Doubtful | ||
Loans | ||
Loans | 2,839 | |
Commercial real estate. | Commercial real estate | ||
Loans | ||
Loans | 1,059,821 | 852,707 |
Commercial real estate. | Commercial real estate | Pass | ||
Loans | ||
Loans | 1,038,272 | 835,787 |
Commercial real estate. | Commercial real estate | Special Mention | ||
Loans | ||
Loans | 5,641 | 679 |
Commercial real estate. | Commercial real estate | Substandard | ||
Loans | ||
Loans | 15,908 | 16,241 |
Commercial real estate. | Commercial real estate construction | ||
Loans | ||
Loans | 132,945 | 72,250 |
Commercial real estate. | Commercial real estate construction | Pass | ||
Loans | ||
Loans | 132,945 | 72,250 |
Residential real estate. | Residential real estate | ||
Loans | ||
Loans | 73,552 | 65,248 |
Residential real estate. | Residential real estate | Pass | ||
Loans | ||
Loans | 71,815 | 64,094 |
Residential real estate. | Residential real estate | Substandard | ||
Loans | ||
Loans | 1,737 | 1,154 |
Residential real estate. | Home equity | ||
Loans | ||
Loans | 12,750 | 13,638 |
Residential real estate. | Home equity | Pass | ||
Loans | ||
Loans | 12,697 | 13,588 |
Residential real estate. | Home equity | Special Mention | ||
Loans | ||
Loans | 50 | |
Residential real estate. | Home equity | Substandard | ||
Loans | ||
Loans | 53 | |
Consumer | ||
Loans | ||
Loans | 17,343 | 19,077 |
Consumer | Pass | ||
Loans | ||
Loans | 17,236 | 18,963 |
Consumer | Substandard | ||
Loans | ||
Loans | $ 107 | $ 114 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loans | ||
Loans | $ 1,547,704 | $ 1,291,428 |
Directors and principal officers of the Company, including their immediate families | ||
Loans | ||
Loans | $ 11,922 | $ 5,076 |
Fair Value - Assets and liabili
Fair Value - Assets and liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Transfer of assets, Level 1 to level 2 | $ 0 | $ 0 |
Transfer of assets, Level 2 to level 1 | 0 | 0 |
Transfer of liabilities, Level 1 to level 2 | 0 | 0 |
Transfer of liabilities, Level 2 to level 1 | 0 | 0 |
Recurring | ||
Fair Value | ||
Total securities available for sale | 547,272 | 464,797 |
Recurring | U.S. government agencies | ||
Fair Value | ||
Total securities available for sale | 97,261 | 79,706 |
Recurring | Mortgage-backed securities | ||
Fair Value | ||
Total securities available for sale | 328,325 | 270,432 |
Recurring | Corporate Bonds | ||
Fair Value | ||
Total securities available for sale | 26,567 | 20,211 |
Recurring | Obligations of states and political subdivisions | ||
Fair Value | ||
Total securities available for sale | 95,119 | 94,448 |
Recurring | Level 2 | ||
Fair Value | ||
Total securities available for sale | 547,272 | 464,797 |
Recurring | Level 2 | U.S. government agencies | ||
Fair Value | ||
Total securities available for sale | 97,261 | 79,706 |
Recurring | Level 2 | Mortgage-backed securities | ||
Fair Value | ||
Total securities available for sale | 328,325 | 270,432 |
Recurring | Level 2 | Corporate Bonds | ||
Fair Value | ||
Total securities available for sale | 26,567 | 20,211 |
Recurring | Level 2 | Obligations of states and political subdivisions | ||
Fair Value | ||
Total securities available for sale | $ 95,119 | $ 94,448 |
Fair Value - Non-recurring (Det
Fair Value - Non-recurring (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Reserves allocated to impaired loans | $ 3,111 | $ 1,433 |
Nonrecurring | ||
Fair Value | ||
Impaired loans | 1,174 | 6,689 |
Level 3 | Nonrecurring | ||
Fair Value | ||
Impaired loans | 1,174 | 6,689 |
Reserves allocated to impaired loans | $ 1,988 | $ 409 |
Fair Value - Level 3 (Details)
Fair Value - Level 3 (Details) - Nonrecurring $ in Thousands | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value | ||
Impaired loans | $ 1,174 | $ 6,689 |
Level 3 | ||
Fair Value | ||
Impaired loans | 1,174 | 6,689 |
Level 3 | Appraisal of collateral | Appraisal and liquidation adjustment | ||
Fair Value | ||
Impaired loans | $ 1,174 | |
Level 3 | Appraisal of collateral | Appraisal and liquidation adjustment | Minimum | ||
Fair Value | ||
Impaired loans, Measurement input | 20 | |
Level 3 | Appraisal of collateral | Appraisal and liquidation adjustment | Maximum | ||
Fair Value | ||
Impaired loans, Measurement input | 66 | |
Level 3 | Appraisal of collateral | Appraisal and liquidation adjustment | Weighted average | ||
Fair Value | ||
Impaired loans, Measurement input | 62 | |
Level 3 | Commercial real estate. | Appraisal of collateral | Appraisal and liquidation adjustment | ||
Fair Value | ||
Impaired loans | $ 6,689 | |
Level 3 | Commercial real estate. | Appraisal of collateral | Appraisal and liquidation adjustment | Minimum | ||
Fair Value | ||
Impaired loans, Measurement input | 20 | |
Level 3 | Commercial real estate. | Appraisal of collateral | Appraisal and liquidation adjustment | Maximum | ||
Fair Value | ||
Impaired loans, Measurement input | 56 | |
Level 3 | Commercial real estate. | Appraisal of collateral | Appraisal and liquidation adjustment | Weighted average | ||
Fair Value | ||
Impaired loans, Measurement input | (39) |
Fair Value - Carrying amounts a
Fair Value - Carrying amounts and estimated fair values (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | $ 180,249 | $ 306,179 |
Loans, net | 1,524,816 | 1,273,767 |
Accrued interest receivable | 5,554 | 6,643 |
Restricted investment in bank stocks | 3,382 | 2,217 |
Financial liabilities: | ||
Deposits | 2,187,553 | 1,914,384 |
Note payable | 3,000 | 3,000 |
Subordinated notes, net of issuance costs | 19,431 | 19,376 |
Accrued interest payable | 32 | 250 |
Fair Value. | ||
Financial assets: | ||
Cash and due from banks | 180,249 | 306,179 |
Loans, net | 1,504,301 | 1,260,146 |
Accrued interest receivable | 5,554 | 6,643 |
Financial liabilities: | ||
Deposits | 2,187,553 | 1,914,271 |
Note payable | 2,994 | 3,030 |
Subordinated notes, net of issuance costs | 17,906 | 18,867 |
Accrued interest payable | 32 | 250 |
Fair Value. | Level 1 | ||
Financial assets: | ||
Cash and due from banks | 180,249 | 306,179 |
Financial liabilities: | ||
Deposits | 2,119,769 | 1,831,944 |
Fair Value. | Level 2 | ||
Financial assets: | ||
Accrued interest receivable | 2,766 | 1,603 |
Financial liabilities: | ||
Deposits | 67,784 | 82,327 |
Note payable | 2,994 | 3,030 |
Subordinated notes, net of issuance costs | 17,906 | 18,867 |
Accrued interest payable | 32 | 250 |
Fair Value. | Level 3 | ||
Financial assets: | ||
Loans, net | 1,504,301 | 1,260,146 |
Accrued interest receivable | $ 2,788 | $ 5,040 |
Deposits - Analysis of deposits
Deposits - Analysis of deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Deposits | ||
Non-interest bearing demand accounts | $ 788,106 | $ 701,645 |
Interest-bearing demand accounts | 349,755 | 301,596 |
Money market accounts | 743,581 | 615,111 |
Savings accounts | 236,061 | 213,592 |
Certificates of Deposit | 70,050 | 82,440 |
Total deposits | 2,187,553 | 1,914,384 |
Time deposits exceeding FDIC insurance limit of $250 | $ 18,948 | $ 23,859 |
Deposits - Scheduled maturities
Deposits - Scheduled maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Deposits | ||
2022 | $ 16,683 | |
2023 | 41,691 | |
2024 | 6,835 | |
2025 | 4,841 | |
Total | 70,050 | |
Deposits of executive officers, directors and principal officers | $ 11,230 | $ 6,109 |
Pension Plan and Stock Compen_3
Pension Plan and Stock Compensation - Pension Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Plan and Stock Compensation | ||||
Service cost | $ 47 | $ 142 | ||
Interest cost | $ 202 | 190 | $ 606 | 570 |
Expected return on plan assets | (496) | (514) | (1,489) | (1,544) |
Amortization of transition cost | (7) | (12) | (21) | (36) |
Amortization of net loss | 5 | 16 | ||
Net periodic benefit cost/(income) | $ (301) | $ (284) | $ (904) | $ (852) |
Pension Plan and Stock Compen_4
Pension Plan and Stock Compensation - Stock Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 22, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Plan and Stock Compensation | |||||
Stock-based compensation costs | $ 482 | $ 69 | |||
Restricted stock expense | 133 | $ 390 | |||
Granted | 15,162 | ||||
Restricted Stock Awards | |||||
Pension Plan and Stock Compensation | |||||
Restricted stock expense | $ 33 | $ 128 | $ 133 | $ 390 | |
Granted | 0 | ||||
Vesting percentage | 33% | ||||
Unamortized expense | $ 90 | $ 90 | |||
Shares | |||||
Non-vested at beginning of period (in shares) | 22,922 | ||||
Vested (in shares) | (11,245) | ||||
Non-vested at end of period (in shares) | 11,677 | 11,677 | |||
Weighted Average Fair Value | |||||
Non-vested at beginning of period (in dollars per share) | $ 28.92 | ||||
Vested (in dollars per share) | 28.59 | ||||
Non-vested at end of period (in dollars per share) | $ 29.24 | $ 29.24 | |||
Restricted Stock Units (RSUs) | |||||
Shares | |||||
Non-vested at beginning of period (in shares) | 48,004 | ||||
Granted (in shares) | 48,004 | 18,555 | |||
Vested (in shares) | (9,637) | ||||
Issued (in shares) | (2,000) | ||||
Forfeited (in shares) | (2,733) | ||||
Non-vested at end of period (in shares) | 52,189 | 52,189 |
Pension Plan and Stock Compen_5
Pension Plan and Stock Compensation - Restricted Stock Units (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 22, 2021 | Sep. 30, 2022 | |
Pension Plan and Stock Compensation | ||
Maximum discretionary contributions to a KSOP trust | $ 200,000 | |
Restricted Stock Units (RSUs) | ||
Pension Plan and Stock Compensation | ||
Granted (in shares) | 48,004 | 18,555 |
Restricted Stock Units (RSUs) | Officers | ||
Pension Plan and Stock Compensation | ||
Granted (in shares) | 31,504 | |
Vesting period | 3 years | |
Restricted Stock Units (RSUs) | Officers | First anniversary | ||
Pension Plan and Stock Compensation | ||
Vesting percentage | 33% | |
Restricted Stock Units (RSUs) | Officers | Second anniversary | ||
Pension Plan and Stock Compensation | ||
Vesting percentage | 33% | |
Restricted Stock Units (RSUs) | Officers | Third anniversary | ||
Pension Plan and Stock Compensation | ||
Vesting percentage | 33% | |
Restricted Stock Units (RSUs) | Non-employee directors | ||
Pension Plan and Stock Compensation | ||
Granted (in shares) | 16,500 | |
Vesting percentage | 100% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 145,723 | $ 140,911 | $ 182,836 | $ 135,423 |
Net current period other comprehensive income/(loss) | (16,554) | (104) | (58,872) | (3,039) |
Ending balance | 136,190 | 180,603 | 136,190 | 180,603 |
Unrealized gains and losses on available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (43,780) | 2,009 | (1,072) | 4,949 |
Other comprehensive income/(loss) before reclassification | (16,749) | (106) | (59,457) | (3,046) |
Net current period other comprehensive income/(loss) | (16,749) | (106) | (59,457) | (3,046) |
Ending balance | (60,529) | 1,903 | (60,529) | 1,903 |
Amortization of defined benefit pension | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (2,110) | (3,266) | (2,506) | (3,277) |
Other comprehensive income/(loss) before reclassification | 206 | 618 | ||
Less amounts reclassified from accumulated other comprehensive income | 8 | 5 | 24 | 16 |
Net current period other comprehensive income/(loss) | 198 | 5 | 594 | 16 |
Ending balance | (1,912) | (3,261) | (1,912) | (3,261) |
Deferred Compensation Liability | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 129 | 141 | 135 | 147 |
Other comprehensive income/(loss) before reclassification | (3) | (3) | (9) | (9) |
Net current period other comprehensive income/(loss) | (3) | (3) | (9) | (9) |
Ending balance | 126 | 138 | 126 | 138 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (45,761) | (1,116) | (3,443) | 1,819 |
Other comprehensive income/(loss) before reclassification | (16,546) | (109) | (58,848) | (3,055) |
Less amounts reclassified from accumulated other comprehensive income | 8 | 5 | 24 | 16 |
Net current period other comprehensive income/(loss) | (16,554) | (104) | (58,872) | (3,039) |
Ending balance | $ (62,315) | $ (1,220) | $ (62,315) | $ (1,220) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Employee benefits transition asset | $ 808 | $ 785 | $ 2,322 | $ 2,050 |
Employee benefits actuarial gains | 250 | 247 | 741 | 770 |
Total before tax | 9,709 | 6,927 | 18,753 | 19,561 |
Provision for income taxes | 1,856 | 1,351 | 3,460 | 3,767 |
Net of tax | 7,853 | 5,576 | 15,293 | 15,794 |
Reclassifications out of accumulated other comprehensive income (loss) | Amortization of defined benefit pension | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Employee benefits transition asset | (7) | (11) | (21) | (36) |
Employee benefits actuarial gains | 5 | 16 | ||
Total before tax | (7) | (6) | (21) | (20) |
Provision for income taxes | 1 | 1 | 3 | 4 |
Net of tax | (8) | (5) | (24) | (16) |
Reclassifications out of accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Net of tax | $ (8) | $ (5) | $ (24) | $ (16) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Noninterest Income | ||||
Service charges on deposit accounts | $ 182 | $ 166 | $ 511 | $ 499 |
Trust income | 1,176 | 1,230 | 3,569 | 3,537 |
Investment advisory income | 1,085 | 1,176 | 3,385 | 3,588 |
Earnings on bank owned life insurance | 240 | 209 | 709 | 554 |
Other | 250 | 247 | 741 | 770 |
TOTAL NONINTEREST INCOME | 2,933 | 3,028 | 8,915 | 8,948 |
Other noninterest income within the scope of ASC 606 | 231 | 195 | 644 | 588 |
Other noninterest income outside the scope of ASC 606 | $ 19 | $ 52 | $ 97 | $ 182 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segment Information | |||||
Net interest income | $ 21,415 | $ 15,880 | $ 55,263 | $ 44,252 | |
Noninterest income | 2,933 | 3,028 | 8,915 | 8,948 | |
Provision for loan loss | (2,084) | (1,008) | (8,517) | (1,883) | |
Noninterest expenses | (12,555) | (10,973) | (36,908) | (31,756) | |
Income tax expense | (1,856) | (1,351) | (3,460) | (3,767) | |
NET INCOME | 7,853 | 5,576 | 15,293 | 15,794 | |
Total assets | 2,368,370 | 2,175,229 | 2,368,370 | 2,175,229 | $ 2,142,583 |
Banking | |||||
Segment Information | |||||
Net interest income | 21,415 | 15,880 | 55,263 | 44,252 | |
Noninterest income | 672 | 622 | 1,961 | 1,823 | |
Provision for loan loss | (2,084) | (1,008) | (8,517) | (1,883) | |
Noninterest expenses | (10,893) | (9,279) | (31,532) | (26,741) | |
Income tax expense | (1,730) | (1,201) | (3,129) | (3,324) | |
NET INCOME | 7,380 | 5,014 | 14,046 | 14,127 | |
Total assets | 2,360,897 | 2,166,521 | 2,360,897 | 2,166,521 | |
Wealth Management | |||||
Segment Information | |||||
Noninterest income | 2,261 | 2,406 | 6,954 | 7,125 | |
Noninterest expenses | (1,662) | (1,694) | (5,376) | (5,015) | |
Income tax expense | (126) | (150) | (331) | (443) | |
NET INCOME | 473 | 562 | 1,247 | 1,667 | |
Total assets | $ 7,473 | $ 8,708 | $ 7,473 | $ 8,708 |
Regulatory Capital Matters (Det
Regulatory Capital Matters (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Regulatory Capital Matters | ||
Capital conservation buffer ratio | 0.025 | |
Total capital to risk weighted assets | ||
Total capital to risk weighted assets, Actual amount | $ 226,991 | $ 192,359 |
Total capital to risk weighted assets, Actual ratio | 0.1360 | 0.1412 |
Total capital to risk weighted assets, For Capital Adequacy Purposes | $ 133,517 | $ 109,000 |
Total capital to risk weighted assets, For Capital Adequacy Purposes Ratio | 0.0800 | 0.0800 |
Total capital to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer | $ 164,810 | $ 134,546 |
Total capital to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer Ratio | 0.09875 | 0.09875 |
Total capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions | $ 166,896 | $ 136,250 |
Total capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.1000 | 0.1000 |
Tier 1 (Core) capital to risk weighted assets | ||
Tier 1 (Core) capital to risk weighted assets, Actual amount | $ 206,102 | $ 175,318 |
Tier 1 (Core) capital to risk weighted assets, Actual ratio | 0.1235 | 0.1287 |
Tier 1 (Core) capital to risk weighted assets, For Capital Adequacy Purposes | $ 100,138 | $ 81,750 |
Tier 1 (Core) capital to risk weighted assets, For Capital Adequacy Purposes Ratio | 0.0600 | 0.0600 |
Tier 1 (Core) capital to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer | $ 131,431 | $ 107,296 |
Tier 1 (Core) capital to risk weighted assets, Actual amount | 0.07875 | 0.07875 |
Tier 1 (Core) capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions | $ 133,517 | $ 109,000 |
Tier 1 (Core) capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.0800 | 0.0800 |
Common Tier 1 (CET1) to risk weighted assets | ||
Common Tier 1 (CET1) to risk weighted assets, Actual amount | $ 206,102 | $ 175,318 |
Common Tier 1 (CET1) to risk weighted assets, Actual ratio | 0.1235 | 0.1287 |
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes | $ 75,103 | $ 61,312 |
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes Ratio | 0.0450 | 0.0450 |
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer | $ 106,396 | $ 86,859 |
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer Ratio | 0.06375 | 0.06375 |
Common Tier 1 (CET1) to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions | $ 108,482 | $ 88,562 |
Common Tier 1 (CET1) to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.0650 | 0.0650 |
Tier 1 (Core) Capital to average assets | ||
Tier 1 (Core) Capital to average assets, Actual amount | $ 206,102 | $ 175,318 |
Tier 1 (Core) Capital to average assets, Actual ratio | 0.0848 | 0.0815 |
Tier 1 (Core) Capital to average assets, For Capital Adequacy Purposes | $ 97,267 | $ 86,093 |
Tier 1 (Core) Capital to average assets, For Capital Adequacy Purposes Ratio | 0.0400 | 0.0400 |
Tier 1 (Core) Capital to average assets, To be Well Capitalized under Prompt Corrective Action Provisions | $ 121,584 | $ 107,616 |
Tier 1 (Core) Capital to average assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.0500 | 0.0500 |