Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 06, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
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 $0.50 per share | |
Trading Symbol | OBT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,650,458 | |
Entity Central Index Key | 0001754226 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 158,708 | $ 86,081 |
Investment securities - available-for-sale (amortized cost $569,978, net of allowance for credit losses of $0 at September 30, 2023 and $609,954, net of allowance for credit losses of $0 at December 31, 2022) | 478,708 | 533,461 |
Restricted investment in bank stocks | 10,992 | 9,562 |
Loans | 1,707,729 | 1,569,430 |
Allowance for credit losses | (25,775) | (21,832) |
Loans, net | 1,681,954 | 1,547,598 |
Premises and equipment, net | 16,073 | 14,739 |
Accrued interest receivable | 6,332 | 6,320 |
Bank owned life insurance | 41,188 | 40,463 |
Goodwill | 5,359 | 5,359 |
Intangible assets | 1,178 | 1,392 |
Other assets | 46,779 | 42,359 |
TOTAL ASSETS | 2,447,271 | 2,287,334 |
Deposits: | ||
Noninterest bearing | 726,627 | 723,228 |
Interest bearing | 1,378,404 | 1,251,159 |
Total deposits | 2,105,031 | 1,974,387 |
FHLB advances, short term | 146,000 | 131,500 |
FHLB advances, long term | 10,000 | |
Subordinated notes, net of issuance costs | 19,502 | 19,447 |
Accrued expenses and other liabilities | 22,820 | 23,862 |
TOTAL LIABILITIES | 2,303,353 | 2,149,196 |
STOCKHOLDERS' EQUITY | ||
Common stock, $0.50 par value; 15,000,000 shares authorized; 5,683,304 issued; 5,650,458 and 5,642,621 outstanding, at September 30, 2023 and December 31, 2022, respectively | 2,842 | 2,842 |
Surplus | 120,367 | 120,107 |
Retained Earnings | 100,536 | 84,635 |
Accumulated other comprehensive income (loss), net of taxes | (78,693) | (68,196) |
Treasury stock, at cost; 32,846 and 40,683 shares at September 30, 2023 and December 31, 2022, respectively | (1,134) | (1,250) |
TOTAL STOCKHOLDERS' EQUITY | 143,918 | 138,138 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,447,271 | $ 2,287,334 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION | ||
Available-for-sale amortized cost | $ 569,978 | $ 609,954 |
Available-for-sale allowance for credit losses | $ 0 | $ 0 |
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) | 5,650,458 | 5,642,621 |
Treasury stock (in shares) | 32,846 | 40,683 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 24,682 | $ 18,113 | $ 70,398 | $ 48,319 |
Interest on investment securities: | ||||
Taxable | 3,150 | 2,848 | 9,570 | 6,735 |
Tax exempt | 564 | 621 | 1,721 | 1,655 |
Interest on Federal funds sold and other | 1,703 | 1,259 | 4,514 | 1,886 |
TOTAL INTEREST INCOME | 30,099 | 22,841 | 86,203 | 58,595 |
INTEREST EXPENSE | ||||
Savings and NOW accounts | 3,506 | 1,099 | 9,081 | 2,320 |
Time deposits | 1,954 | 55 | 3,893 | 194 |
FHLB advances | 1,907 | 6,295 | ||
Note payable | 42 | 126 | ||
Subordinated notes | 231 | 230 | 692 | 692 |
TOTAL INTEREST EXPENSE | 7,598 | 1,426 | 19,961 | 3,332 |
NET INTEREST INCOME | 22,501 | 21,415 | 66,242 | 55,263 |
Provision for credit losses- investments | 5,000 | |||
Provision for credit losses | 837 | 2,084 | 2,406 | 8,517 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 21,664 | 19,331 | 58,836 | 46,746 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 210 | 182 | 588 | 511 |
Trust income | 1,266 | 1,176 | 3,707 | 3,569 |
Investment advisory income | 1,333 | 1,085 | 3,819 | 3,385 |
Investment securities gains, net | 107 | |||
Earnings on bank owned life insurance | 243 | 240 | 725 | 709 |
Other | 168 | 250 | 730 | 741 |
TOTAL NONINTEREST INCOME | 3,220 | 2,933 | 9,676 | 8,915 |
NONINTEREST EXPENSE | ||||
Salaries | 6,135 | 5,863 | 18,606 | 16,631 |
Employee benefits | 1,752 | 1,483 | 5,359 | 4,258 |
Occupancy expense | 1,180 | 1,063 | 3,614 | 3,391 |
Professional fees | 799 | 766 | 3,512 | 2,885 |
Directors' fees and expenses | 295 | 249 | 682 | 754 |
Computer software expense | 1,233 | 1,276 | 3,714 | 3,629 |
FDIC assessment | 463 | 384 | 1,023 | 1,006 |
Advertising expenses | 364 | 372 | 1,074 | 1,127 |
Advisor expenses related to trust income | 30 | 28 | 89 | 186 |
Telephone expenses | 184 | 192 | 534 | 505 |
Intangible amortization | 71 | 71 | 214 | 214 |
Other | 1,084 | 808 | 3,644 | 2,322 |
TOTAL NONINTEREST EXPENSE | 13,590 | 12,555 | 42,065 | 36,908 |
Income before income taxes | 11,294 | 9,709 | 26,447 | 18,753 |
Provision for income taxes | 2,256 | 1,856 | 5,093 | 3,460 |
NET INCOME | $ 9,038 | $ 7,853 | $ 21,354 | $ 15,293 |
Basic earnings per share (in dollars per share) | $ 1.61 | $ 1.40 | $ 3.79 | $ 2.72 |
Diluted earnings per share (in dollars per share) | $ 1.61 | $ 1.40 | $ 3.79 | $ 2.72 |
Weighted average shares outstanding, Basic (in shares) | 5,629,642 | 5,623,172 | 5,628,036 | 5,619,897 |
Weighted average shares outstanding, Diluted (in shares) | 5,629,642 | 5,623,172 | 5,628,036 | 5,619,897 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | ||||
Net Income | $ 9,038 | $ 7,853 | $ 21,354 | $ 15,293 |
Unrealized gains/(losses) on securities: | ||||
Unrealized holding gains/(losses) arising during the period | (15,982) | (21,201) | (19,670) | (75,262) |
Credit loss expense | 5,000 | |||
Reclassification adjustment for (gains) included in net income | (107) | |||
Tax effect | (3,356) | (4,452) | (3,104) | (15,805) |
Net of tax | (12,626) | (16,749) | (11,673) | (59,457) |
Defined benefit pension plans: | ||||
Net gain/(loss) arising during the period | 500 | 240 | 1,500 | 720 |
Reclassification adjustment for amortization of prior service cost and net gains included in net periodic pension cost | (7) | (21) | ||
Tax effect | 105 | 49 | 315 | 147 |
Net of tax | 395 | 198 | 1,185 | 594 |
Deferred compensation liability: | ||||
Unrealized loss | (4) | (4) | (11) | (11) |
Tax effect | (1) | (1) | (2) | (2) |
Net of tax | (3) | (3) | (9) | (9) |
Total other comprehensive loss | (12,234) | (16,554) | (10,497) | (58,872) |
Total comprehensive income/(loss) | $ (3,196) | $ (8,701) | $ 10,857 | $ (43,579) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock | Surplus Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Surplus | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Income (Loss) | Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Treasury Stock | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Total |
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 income (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 income (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 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 2,842 | 2,842 | $ 120,107 | 120,107 | $ (1,561) | $ 83,074 | 84,635 | $ (68,196) | (68,196) | $ (1,250) | (1,250) | $ (1,561) | $ 136,577 | 138,138 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net Income | 21,354 | 21,354 | ||||||||||||
Other comprehensive income (loss), net of taxes | (10,497) | (10,497) | ||||||||||||
Cash dividends declared | (3,892) | (3,892) | ||||||||||||
Treasury stock purchased | (424) | (424) | ||||||||||||
Restricted stock expense | 45 | 45 | ||||||||||||
Stock-based compensation | 215 | 540 | 755 | |||||||||||
Ending balance at Sep. 30, 2023 | 2,842 | 120,367 | 100,536 | (78,693) | (1,134) | 143,918 | ||||||||
Beginning balance at Jun. 30, 2023 | 2,842 | 120,272 | 92,795 | (66,459) | (1,279) | 148,171 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net Income | 9,038 | 9,038 | ||||||||||||
Other comprehensive income (loss), net of taxes | (12,234) | (12,234) | ||||||||||||
Cash dividends declared | (1,297) | (1,297) | ||||||||||||
Treasury stock purchased | (127) | (127) | ||||||||||||
Restricted stock expense | 9 | 9 | ||||||||||||
Stock-based compensation | 86 | 272 | 358 | |||||||||||
Ending balance at Sep. 30, 2023 | $ 2,842 | $ 120,367 | $ 100,536 | $ (78,693) | $ (1,134) | $ 143,918 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||||
Cash dividends declared per share | $ 0.23 | $ 0.20 | $ 0.69 | $ 0.60 |
Treasury stock purchased (in shares) | 2,922 | 3,035 | 8,725 | 7,652 |
Stock-based compensation (in shares) | 8,076 | 9,637 | 16,562 | 12,397 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 21,354 | $ 15,293 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 7,406 | 8,517 |
Depreciation | 1,286 | 1,150 |
Accretion on loans | (2,127) | (2,298) |
Amortization of intangibles | 214 | 214 |
Amortization of subordinated notes issuance costs | 55 | 55 |
Investment securities (gains) losses | (107) | |
Restricted stock expense | 45 | 133 |
Stock-based compensation | 755 | 482 |
Net amortization of investment premiums | 960 | 1,339 |
Earnings on bank owned life insurance | (725) | (709) |
Net change in: | ||
Accrued interest receivable | (12) | 1,089 |
Other assets | 433 | (1,230) |
Other liabilities | (1,049) | (799) |
Net cash from operating activities | 28,488 | 23,236 |
Cash flows from investing activities | ||
Purchases of investment securities available-for-sale | (6,327) | (210,589) |
Proceeds from sales of investment securities available-for-sale | 7,296 | |
Proceeds from paydowns of investment securities available-for-sale | 32,254 | 46,360 |
Proceeds from maturities and calls of investment securities available-for-sale | 3,774 | 5,154 |
Purchase of restricted investment in bank stocks | (41,418) | (1,189) |
Proceeds from redemptions of restricted investment in bank stocks | 39,988 | 24 |
Net increase in loans | (139,636) | (257,268) |
Purchase of premises and equipment | (3,055) | (1,145) |
Disposal of premises and equipment | 435 | |
Net cash used by investing activities | (106,689) | (418,653) |
Cash flows from financing activities | ||
Net increase in deposits | 130,644 | 273,169 |
Net change in FHLB advances, short term | 14,500 | |
Proceeds from FHLB advances, long term | 10,000 | |
Cash dividends paid | (3,892) | (3,374) |
Purchases of treasury stock | (424) | (308) |
Net cash from financing activities | 150,828 | 269,487 |
Net change in cash and cash equivalents | 72,627 | (125,930) |
Beginning cash and cash equivalents | 86,081 | 306,179 |
Ending cash and cash equivalents | 158,708 | 180,249 |
Supplemental cash flow information: | ||
Interest paid | 19,551 | 3,550 |
Income taxes paid | 6,472 | 4,596 |
Supplemental noncash disclosures: | ||
Lease liabilities arising from obtaining right-of-use assets | $ 1,050 | $ 1,299 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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 $1.4 billion and $1.3 billion at September 30, 2023 and December 31, 2022, 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, 2022 for Orange County Bancorp contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 24, 2023. 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, 2023, the results of operations, comprehensive income/(loss), changes in stockholders’ equity for the three and nine months ended September 30, 2023 and 2022 and cash flow statements for the nine months ended September 30, 2023 and 2022. 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 The Company adopted ASU 2016-13 on January 1, 2023 for all financial assets measured at amortized cost and off-balance sheet credit exposures using the modified retrospective method. Results for the three and nine months ended September 30, 2023 are presented under Accounting Standards Codification 326, Financial Instruments – Credit Losses, while prior period amounts continue to be reported with previously applicable GAAP and have not been restated. Effective January 1, 2023, the Company recorded a $1.9 million increase in allowance for credit losses on loans that is referred to as the current expected credit loss (“CECL”) methodology (previously allowance for loan losses), an adjustment of $1.4 million recording reserves related to loans, and a $520 thousand increase related to allowance for off balance sheet credit exposures included in other liabilities section of the consolidated statements of financial condition, which resulted in a total cumulative effect adjustment of $1.6 million, net of tax, and a decrease to retained earnings, a component of the stockholders’ equity. Further information regarding the impact of CECL can be found in Note 3 – Loans and Allowance for Credit Losses. The Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) prospectively effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. The Company did not have any loans that were both experiencing financial difficulties and modified during the three and nine months ended September 30, 2023. Allowance for Credit Losses On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”), which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan and lease receivables and held-to-maturity securities. It also applies to off-balance sheet credit exposures (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, Accounting Standards Codification (“ASC”) 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities which management does not intend to sell or believes that it is more likely than not they will be required to sell. The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated statement of financial condition. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the Consolidated Statement of Financial Condition in other liabilities and is recorded within the provision for credit losses. Allowance for Credit Losses on Loans Receivable The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. Individually evaluated loans are primarily non-accrual and collateral dependent loans. Furthermore, the Company evaluates the pooling methodology at least annually to ensure that loans with similar risk characteristics are pooled appropriately. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company does not estimate expected losses on accrued interest receivable on loans, as accrued interest receivable is reversed or written off when the full collection of the accrued interest receivable related to a loan becomes doubtful. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. The Company calculates estimated credit losses for these loan segments using quantitative models and qualitative factors. Further information on loan segmentation and the credit loss estimation is included in Note 3 – Loans and Allowance for Credit Losses. Individually Evaluated Loans On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. Allowance for Credit Losses on Off-Balance Sheet Commitments The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated statement of financial condition and the related credit expense is recorded as provisions for credit losses in the consolidated statements of income. Allowance for Credit Losses on Available for Sale Securities For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. The Company does not estimate expected losses on accrued interest receivable on investments, as accrued interest receivable is reversed or written off when the full collection of the accrued interest receivable related to an investment becomes doubtful. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2023 | |
Investment Securities | |
Investment Securities | Note 2 — Investment Securities The amortized cost and fair value of investment securities at September 30, 2023 and December 31, 2022: Gross Gross Amortized Unrealized Unrealized ACL Fair Cost Gains Losses Adjustment Value Available-for-sale September 30, 2023 U.S. government agencies and treasuries $ 98,539 $ 22 $ (12,838) $ — $ 85,723 Mortgage-backed securities - residential 264,406 — (40,908) — 223,498 Mortgage-backed securities - commercial 80,192 — (16,271) — 63,921 Corporate Securities 23,534 — (3,998) — 19,536 Obligations of states and political subdivisions 103,307 41 (17,318) — 86,030 Total debt securities $ 569,978 $ 63 $ (91,333) $ — $ 478,708 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale December 31, 2022 U.S. government agencies and treasuries $ 104,734 $ 25 $ (11,009) $ 93,750 Mortgage-backed securities - residential 283,774 17 (34,640) 249,151 Mortgage-backed securities - commercial 80,916 — (13,152) 67,764 Corporate Securities 28,559 — (2,901) 25,658 Obligations of states and political subdivisions 111,971 48 (14,881) 97,138 Total debt securities $ 609,954 $ 90 $ (76,583) $ 533,461 Proceeds from sales of securities and associated gains and losses for the three and nine months ended September 30, 2023 and 2022. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Proceeds $ — $ — $ 7,296 $ — Gross realized gains $ — $ — $ 130 $ — Gross realized losses — — 23 — Net gain on sales of securities — — 107 — Tax provision on realized net gains and loss — — 20 — Net gain on sales of securities, after tax $ — $ — $ 87 $ — The amortized cost and fair value of debt securities as of September 30, 2023 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 $ 7,617 $ 7,572 Due after one through five years 24,360 22,475 Due after five through ten years 61,833 52,196 Due after ten years 131,570 109,046 225,380 191,289 Mortgage-backed securities 344,598 287,419 Total debt securities $ 569,978 $ 478,708 Securities pledged at September 30, 2023 and December 31, 2022 had a carrying amount of $386,461 and $323,674 and were pledged to secure public deposits. At September 30, 2023 and December 31, 2022, 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 those securities with unrealized losses for which an allowance for credit losses has not been recorded at September 30, 2023 and December 31, 2022, aggregated by major security types and length of time in a continuous unrealized 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, 2023 U.S. government agencies and treasuries $ 466 $ (1) $ 81,393 $ (12,837) $ 81,859 $ (12,838) Mortgage-backed securities - residential 9,377 (206) 212,700 (40,702) 222,077 (40,908) Mortgage-backed securities - commercial 1,178 (57) 62,743 (16,214) 63,921 (16,271) Corporate Securities — — 19,536 (3,998) 19,536 (3,998) Obligations of states and political subdivisions 3,454 (79) 79,441 (17,239) 82,895 (17,318) Total debt securities $ 14,475 $ (343) $ 455,813 $ (90,990) $ 470,288 $ (91,333) 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, 2022 U.S. government agencies $ 47,064 $ (2,414) $ 41,718 $ (8,595) $ 88,782 $ (11,009) Mortgage-backed securities - residential 129,352 (9,290) 118,762 (25,350) 248,114 (34,640) Mortgage-backed securities - commercial 21,190 (2,849) 46,574 (10,303) 67,764 (13,152) Corporate Securities 12,503 (1,007) 13,155 (1,894) 25,658 (2,901) Obligations of states and political subdivisions 57,287 (6,763) 32,479 (8,118) 89,766 (14,881) Total debt securities $ 267,396 $ (22,323) $ 252,688 $ (54,260) $ 520,084 $ (76,583) As of September 30, 2023, the Company’s securities portfolio consisted of 274 securities, 251 of which were in an unrealized loss position. As of December 31, 2022, the Company’s securities portfolio consisted of 296 securities, 264 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. Available for sale securities are evaluated to determine if a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. An impairment related to credit factors would be recorded through an allowance for credit losses. The allowance is limited to the amount by which the security’s amortized cost basis exceeds the fair value. An impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income, net of applicable taxes. Investment securities will be written down to fair value through the Consolidated Statements of Income when management intends to sell, or may be required to sell, the securities before they recover in value. Primarily all of the investment securities are backed by loans guaranteed by either U.S. government agencies or U.S government-sponsored entities, and management believes that default is highly unlikely given the lack of historical credit losses and governmental backing. Management believes that the unrealized losses on these securities are a function of changes in market interest rates and credit spreads, not changes in credit quality. The Company’s available for sale debt securities portfolio includes corporate bonds and revenue bonds, among other securities. These types of securities may pose a higher risk of future impairment charges as a result of the changes in market interest rates, unpredictable nature of the U.S. economy and their potential negative effect on the future performance of the security issuers. Available for sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. Based on a comparison of the present value of expected cash flows to the amortized cost as well as a potential market for sale, the Company determined that there was no value to its corporate bond issued by Signature Bank due to its failure. Accordingly, the Company wrote off the amount of the corporate bond totaling million during the quarter ended June 30, 2023. The amount of the writedown was previously recorded through an allowance for credit losses. The Company also evaluated available for sale debt securities that are in an unrealized loss position as of September 30, 2023 included in the table above and has determined that the declines in fair value are mainly attributable to interest rates, credit spreads, market volatility and liquidity conditions, not credit quality or other factors. There was impairment recognized during the three months ended September 30, 2023. Accrued interest on investments, which is excluded from the amortized cost of available for sale debt securities, totaled The Company does not intend to sell any of its available for sale debt securities in an unrealized loss position prior to recovery of their amortized cost basis, and it is more likely than not that the Company will not be required to sell any of its securities prior to recovery of their amortized cost basis. The following table presents the activity in the allowance for credit losses associated with investment securities for the nine months ended September 30, 2023: Allowance for credit losses -investments: Beginning balance $ — Provision for loan losses 5,000 Charge-offs 5,000 Recoveries — Ending balance $ — |
Loans
Loans | 9 Months Ended |
Sep. 30, 2023 | |
Loans | |
Loans | Note 3 — Loans Loans at September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 Commercial and industrial $ 266,997 $ 258,901 Commercial real estate 1,225,936 1,098,054 Commercial real estate construction 91,822 109,570 Residential real estate 83,165 74,277 Home equity 12,084 12,329 Consumer 27,725 16,299 Total Loans $ 1,707,729 $ 1,569,430 Allowance for credit losses (25,775) (21,832) Net Loans $ 1,681,954 $ 1,547,598 Included in commercial and industrial loans as of September 30, 2023 and December 31, 2022 were loans issued under the SBA’s Paycheck Protection Program (“PPP”) of $227 and $1,717, respectively. Allowance for Credit Losses The Company engaged a third-party vendor to assist in the CECL calculation and internal governance framework to oversee the quarterly estimation process for the allowance for credit losses (“ACL”). The ACL calculation methodology relies on regression-based discounted cash flow (“DCF”) models that correlate relationships between certain financial metrics and external market and macroeconomic variables. The Company uses Probability of Default (“PD”) and Loss Given Default (“LGD”) with quantitative factors and qualitative considerations in the calculation of the allowance for credit losses for collectively evaluated loans. The Company uses a reasonable and supportable period of one year, at which point loss assumptions revert back to historical loss information by means of a one-year reversion period. Following are some of the key factors and assumptions that are used in the Company’s CECL calculations: • methods based on probability of default and loss given default which are modeled based on macroeconomic scenarios; • a reasonable and supportable forecast period determined based on management’s current review of macroeconomic environment; • a reversion period after the reasonable and supportable forecast period; • estimated prepayment rates based on the Company’s historical experience and future macroeconomic environment; • estimated credit utilization rates based on the Company’s historical experience and future macroeconomic environment; and • incorporation of qualitative factors not captured within the modeled results. The qualitative factors include but are not limited to changes in lending policies, business conditions, changes in the nature and size of the portfolio, portfolio concentrations, and external factors such as competition. Allowance for Credit Losses are aggregated for the major loan segments, with similar risk characteristics, summarized below. However, for the purposes of calculating the reserves, these segments may be further broken down into loan classes by risk characteristics that include but are not limited to regulatory call codes, industry type, geographic location, and collateral type. Residential real estate loans involve certain risks such as interest rate risk and risk of non-repayment. Adjustable-rate residential real estate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default. At the same time, the marketability of the underlying properties may be adversely affected by higher interest rates. Repayment risk may be affected by a number of factors including, but not necessarily limited to, job loss, divorce, illness and personal bankruptcy of the borrower. Commercial and multi-family real estate lending entails additional risks as compared with residential family property lending. Such loans typically involve large loan balances to single borrowers or groups of related borrowers. The payment experience on such loans is typically dependent on the successful operation of the real estate project. The success of such projects is sensitive to changes in supply and demand conditions in the market for commercial real estate as well as general economic conditions. Construction lending is generally considered to involve a high risk due to the concentration of principal in a limited number of loans and borrowers and the effects of the general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost (including interest) of the project. The nature of these loans is such that they are generally difficult to evaluate and monitor. In addition, speculative construction loans to a builder are not necessarily pre-sold and thus pose a greater potential risk to the Bank than construction loans to individuals on their personal residence. Commercial and industrial lending, including lines of credit, is generally considered higher risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on the business. Commercial business loans are primarily secured by inventories and other business assets. In many cases, any repossessed collateral for a defaulted commercial business loans will not provide an adequate source of repayment of the outstanding loan balance. Home equity lending entails certain risks such as interest rate risk and risk of non-repayment. The marketability of the underlying property may be adversely affected by higher interest rates, decreasing the collateral value securing the loan. Repayment risk can be affected by job loss, divorce, illness and personal bankruptcy of the borrower. Home equity line of credit lending entails securing an equity interest in the borrower’s home. In many cases, the Bank’s position in these loans is as a junior lien holder to another institution’s superior lien. This type of lending is often priced on an adjustable rate basis with the rate set at or above a predefined index. Adjustable-rate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default. Consumer loans generally have more credit risk because of the type and nature of the collateral and, in certain cases, the absence of collateral. Consumer loans generally have shorter terms and higher interest rates than other lending. In addition, consumer lending collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be adversely affected by job loss, divorce, illness and personal bankruptcy. In many cases, any repossessed collateral for a defaulted consumer loan will not provide an adequate source of repayment of the outstanding loan. The following tables present the activity in the allowance by portfolio segment for each of the three and nine months ended September 30, 2023 and 2022: (Note: The activity presented does not include provisions recorded to support the reserve associated with off balance sheet commitments.) Three Months Ended September 30, 2023 Commercial Commercial And Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for credit losses: Beginning balance $ 5,155 $ 17,119 $ 1,060 $ 992 $ 46 $ 476 $ 24,848 Provision for credit losses 869 82 (59) 3 5 (93) 807 Charge-offs (76) — — — — — (76) Recoveries 13 160 — — — 23 196 Ending balance $ 5,961 $ 17,361 $ 1,001 $ 995 $ 51 $ 406 $ 25,775 Nine Months Ended September 30, 2023 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for credit losses: Beginning balance, prior to adoption of ASC 326 $ 5,510 $ 14,364 $ 1,252 $ 345 $ 63 $ 298 $ 21,832 Impact of adopting ASC 326 72 1,737 (8) (227) (17) (129) 1,428 Provision for credit losses 718 1,087 (243) 877 5 110 2,554 Charge-offs (410) — — — — (36) (446) Recoveries 71 173 — — — 163 407 Ending balance $ 5,961 $ 17,361 $ 1,001 $ 995 $ 51 $ 406 $ 25,775 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 The following tables present the balance in the allowance and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2023 and December 31, 2022: Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total September 30, 2023 Allowance for credit losses: Ending balance: individually evaluated for impairment $ 1,282 $ 311 $ — $ — $ — $ — $ 1,593 collectively evaluated for impairment 4,679 17,050 1,001 995 51 406 24,182 Total ending allowance balance $ 5,961 $ 17,361 $ 1,001 $ 995 $ 51 $ 406 $ 25,775 Loans: Ending balance: individually evaluated for impairment $ 1,538 $ 22,790 $ — $ 1,244 $ 45 $ 97 $ 25,714 collectively evaluated for impairment 265,459 1,203,146 91,822 81,921 12,039 27,628 1,682,015 Total ending loans balance $ 266,997 $ 1,225,936 $ 91,822 $ 83,165 $ 12,084 $ 27,725 $ 1,707,729 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total December 31, 2022 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 653 $ 380 $ — $ — $ — $ — $ 1,033 collectively evaluated for impairment 4,857 13,984 1,252 345 63 298 20,799 Total ending allowance balance $ 5,510 $ 14,364 $ 1,252 $ 345 $ 63 $ 298 $ 21,832 Loans: Ending balance: individually evaluated for impairment $ 1,003 $ 22,956 $ — $ 1,254 $ 51 $ 104 $ 25,368 collectively evaluated for impairment 257,898 1,075,098 109,570 73,023 12,278 16,195 1,544,062 Total ending loans balance $ 258,901 $ 1,098,054 $ 109,570 $ 74,277 $ 12,329 $ 16,299 $ 1,569,430 Included in the commercial and industrial loans collectively evaluated for impairment are PPP loans of $227 and $1,717 as of September 30, 2023 and December 31, 2022, respectively. PPP loans receivable are guaranteed by the SBA and have no allocation in the allowance. The following tables present loans individually evaluated for impairment recognized by class of loans as of September 30, 2023 and December 31, 2022: Unpaid Allowance for Principal Recorded Credit Losses Balance Investment Allocated September 30, 2023 With no related allowance recorded Commercial and industrial (1) $ — $ — $ — Commercial real estate (2) 17,764 17,331 — Commercial real estate construction — — — Residential real estate (3) 1,257 1,244 — Home equity (4) 51 45 — Consumer 97 97 — Total $ 19,169 $ 18,717 $ — With an allowance recorded: Commercial and industrial (1) $ 1,916 $ 1,538 $ 1,282 Commercial real estate (2) 5,497 5,459 311 Commercial real estate construction — — — Residential real estate — — — Home equity — — — Consumer (5) — — — Total $ 7,413 $ 6,997 $ 1,593 (1) Commercial and industrial loans – secured by business assets and UCC filings (2) Commercial real estate – secured by various types of commercial real estate (3) Residential real estate – secured by residential real estate (4) Home equity – secured by residential real estate (5) Consumer – represents one personal loan Unpaid Allowance for Principal Recorded Loan Losses Balance Investment Allocated December 31, 2022 With no related allowance recorded Commercial and industrial $ — $ — $ — Commercial real estate 17,884 17,316 — Commercial real estate construction — — — Residential real estate 1,266 1,254 — Home equity 55 51 — Consumer — — — Total $ 19,205 $ 18,621 $ — With an allowance recorded: Commercial and industrial $ 1,011 $ 1,003 $ 653 Commercial real estate 5,665 5,640 380 Commercial real estate construction — — — Residential real estate — — — Home equity — — — Consumer 104 104 — Total $ 6,780 $ 6,747 $ 1,033 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, 2023 and 2022: Three Months Ended Three Months Ended September 30, 2023 September 30, 2022 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ — $ — Commercial real estate 17,767 154 17,553 158 Commercial real estate construction 578 — 578 — Residential real estate 714 1 1,283 6 Home equity — — — — Consumer 98 1 — — Total $ 19,157 $ 156 $ 19,414 $ 164 With an allowance recorded: Commercial and industrial $ 6,771 $ 78 $ 18,599 $ 52 Commercial real estate 303 — 2,259 30 Commercial real estate construction — — — — Residential real estate — — — — Home equity — — — — Consumer — — 108 1 Total $ 7,074 $ 78 $ 20,966 $ 83 (1) Cash basis interest income approximates interest income recognized. Nine Months Ended Nine Months Ended September 30, 2023 September 30, 2022 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ — $ — Commercial real estate 18,007 465 17,549 476 Commercial real estate construction 578 — 578 — Residential real estate 719 2 983 18 Home equity — — — — Consumer 100 4 — — Total $ 19,404 $ 471 $ 19,110 $ 494 With an allowance recorded: Commercial and industrial $ 7,011 $ 238 $ 9,264 $ 157 Commercial real estate 308 — 2,292 90 Commercial real estate construction — — — — Residential real estate — — — — Home equity — — — — Consumer — — 110 4 Total $ 7,319 $ 238 $ 11,666 $ 251 (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, 2023 and December 31, 2022: Loans Past Due Over 90 Days Non-accrual Still Accruing September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Commercial and industrial $ 1,538 $ 1,003 $ 200 $ 1,850 Commercial real estate 4,130 3,882 895 — Commercial real estate construction — — 1,513 — Residential real estate 1,182 1,188 — — Home equity 45 51 — — Consumer — — 3 477 Total $ 6,895 $ 6,124 $ 2,611 $ 2,327 As of September 30, 2023, the Company held $6.9 million in non-accrual balances and a related ACL for approximately $1.4 million. Within the non-accrual balances, The Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. The Company did not have any loans that were both experiencing financial difficulties and modified during the three months or nine months ended September 30, 2023. 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. The following tables present the aging of the recorded investment in past-due loans as of September 30, 2023 and December 31, 2022 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, 2023 Commercial and industrial $ — $ 389 $ 1,291 $ 1,680 $ 265,317 Commercial real estate 278 3,055 1,196 4,529 1,221,407 Commercial real estate construction — — 1,513 1,513 90,309 Residential real estate — 15 1,167 1,182 81,983 Home equity — — — — 12,084 Consumer 2 — 3 5 27,720 Total $ 280 $ 3,459 $ 5,170 $ 8,909 $ 1,698,820 30-59 Days 60-89 Days Greater Than Total Loans Past Due Past Due 90 Days Past Due Not Past Due December 31, 2022 Commercial and industrial $ 1,497 $ 1,583 $ 2,854 $ 5,934 $ 252,967 Commercial real estate 563 — 952 1,515 1,096,539 Commercial real estate construction — — — — 109,570 Residential real estate 2 — 1,188 1,190 73,087 Home equity — — — — 12,329 Consumer 584 634 476 1,694 14,605 Total $ 2,646 $ 2,217 $ 5,470 $ 10,333 $ 1,559,097 As of September 30, 2023 and December 31, 2022, loans in the process of foreclosure were $2,962 and $2,016 respectively, of which $1,167 and $578 were secured by residential real estate. 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. The following table summarizes the Company’s loans by year of origination and internally assigned credit risk at September 30, 2023 and gross charge-offs for the nine months ended September 30, 2023: Revolving Revolving Loans to 2023 2022 2021 2020 2019 Prior Loans Term Loans Total Commercial and industrial — Pass $ 40,026 62,445 54,155 47,945 26,500 33,783 — — $ 264,854 Special Mention — 87 — — — 221 — — 308 Substandard — 385 — 150 446 854 — — 1,835 Total Commercial and industrial $ 40,026 62,917 54,155 48,095 26,946 34,858 — — $ 266,997 Current period gross charge-offs 22 — — 360 — 28 — — 410 Commercial real estate Pass $ 156,570 331,938 238,553 165,685 94,391 211,980 3,920 — $ 1,203,037 Special Mention — — 435 — — 6,904 — — 7,339 Substandard — 334 — 2,445 6,207 6,574 — — 15,560 Total Commercial real estate $ 156,570 332,272 238,988 168,130 100,598 225,458 3,920 — $ 1,225,936 Current period gross charge-offs — — — — — — — — — Commercial real estate construction Pass $ 5,905 22,559 52,028 11,330 — — — — $ 91,822 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Commercial real estate construction $ 5,905 22,559 52,028 11,330 — — — — $ 91,822 Current period gross charge-offs — — — — — — — — — Residential real estate Pass $ 17,188 20,211 12,083 9,486 4,565 18,450 — — $ 81,983 Special Mention — — — — — — — — — Substandard — — — — 589 593 — — 1,182 Total Residential real estate $ 17,188 20,211 12,083 9,486 5,154 19,043 — — $ 83,165 Current period gross charge-offs — — — — — — — — — Home equity Pass $ 338 70 16 — 71 — 9,853 1,691 $ 12,039 Special Mention — — — — — — — — — Substandard — — — — — — — 45 45 Total Home Equity $ 338 70 16 — 71 — 9,853 1,736 $ 12,084 Current period gross charge-offs — — — — — — — — — Consumer Pass $ 20,259 10 — 1,906 29 64 5,360 — $ 27,628 Special Mention — — — — — — — — — Substandard — — — — — 97 — — 97 Total Consumer $ 20,259 10 — 1,906 29 161 5,360 — $ 27,725 Current period gross charge-offs — — 11 — 25 — — — 36 Total Loans $ 240,286 438,039 357,270 238,947 132,798 279,520 19,133 1,736 $ 1,707,729 Gross charge-offs $ 22 — 11 360 25 28 — — $ 446 Based on the analysis performed as of December 31, 2022, the risk category of loans by class of loans is as follows: Special Pass Mention Substandard Doubtful Loss Total December 31, 2022 Commercial and industrial $ 256,939 $ 575 $ 1,387 $ — $ — $ 258,901 Commercial real estate 1,074,952 7,399 15,703 — — 1,098,054 Commercial real estate construction 109,570 — — — — 109,570 Residential real estate 73,089 — 1,188 — — 74,277 Home equity 12,278 — 51 — — 12,329 Consumer 16,195 — 104 — — 16,299 Total $ 1,543,023 $ 7,974 $ 18,433 $ — $ — $ 1,569,430 Loans to certain directors and principal officers of the Company, including their immediate families and companies in which they are affiliated, amounted to $16,854 and $16,891 at September 30, 2023 and December 31, 2022, respectively. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2023 | |
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: Individually Evaluated, or Collateral Dependent 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 collateral dependent 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 2023 (Level 1) (Level 2) (Level 3) U.S. government agencies and treasuries $ 85,723 $ — $ 85,723 $ — Mortgage-backed securities 287,419 — 287,419 — Corporate securities 19,536 — 19,536 — Obligations of states and political subdivisions 86,030 — 86,030 — Total securities available-for-sale $ 478,708 $ — $ 478,708 $ — There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2023. Fair Value Measurements Using: Quoted Prices in Active Markets Significant Other Significant Total at for Identical Observable Unobservable December 31, Assets Inputs Inputs 2022 (Level 1) (Level 2) (Level 3) U.S. government agencies and treasuries 93,750 $ — $ 93,750 $ — Mortgage-backed securities 316,915 — 316,915 — Corporate securities 25,658 — 25,658 — Obligations of states and political subdivisions 97,138 — 97,138 — Total securities available-for-sale $ 533,461 $ — $ 533,461 $ — There were no transfers between Level 1 and Level 2 during 2022. Assets measured at fair value on a non-recurring basis as of September 30, 2023 and December 31, 2022 are summarized below: Fair Value Measurements Using: Quoted Prices Significant in Active Other Significant Total at Markets for Observable Unobservable September 30, 2023 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Individually Evaluated Loans - Commercial Real Estate $ 200 $ — $ — $ 200 Fair Value Measurements Using: Quoted Prices Significant in Active Other Significant Total at Markets for Observable Unobservable December 31, 2022 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Impaired loans - Commercial Real Estate $ 204 $ — $ — $ 204 The fair value amounts shown in the above table are individually evaluated loans net of reserves allocated to said loans. The total reserves allocated to these loans were $100 and $112 at September 30, 2023 and December 31, 2022, 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, 2023 and December 31, 2022: Fair Value Range September 30, 2023 Value Valuation Technique Unobservable Input (Weighted Average) Individually Evaluated Loans - Commercial Real Estate $ 200 Appraisal of collateral (1) Appraisal and liquidation 20% adjustments (2) (20%) Fair Value Range December 31, 2022 Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans - Commercial Real Estate $ 204 Appraisal of collateral (1) Appraisal and liquidation 20% adjustments (2) (20%) (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. The carrying amounts and estimated fair values of the Company’s financial instruments not carried at fair value are as follows at September 30, 2023 and December 31, 2022: September 30, 2023 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 158,708 $ 158,708 $ 158,708 $ — $ — Loans, net 1,681,954 1,598,599 — — 1,598,599 Accrued interest receivable 6,332 6,332 — 2,686 3,646 Restricted investment in bank stocks 10,992 NA — — — Financial liabilities: Deposits 2,105,031 2,103,675 1,923,672 180,003 — FHLB advances, short term 146,000 145,663 145,663 FHLB advances, long term 10,000 9,641 — 9,641 — Subordinated notes, net of issuance costs 19,502 23,560 — 23,560 — Accrued interest payable 642 642 — 642 — December 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 86,081 $ 86,081 $ 86,081 $ — $ — Loans, net 1,547,598 1,503,543 — — 1,503,543 Accrued interest receivable 6,320 6,320 — 2,448 3,872 Restricted investment in bank stocks 9,562 NA — — — Financial liabilities: Deposits 1,974,387 1,972,387 1,881,354 91,033 — FHLB advances, short term 131,500 131,255 — 131,255 — Subordinated notes, net of issuance costs 19,447 19,682 — 19,682 — Accrued interest payable 267 267 — 267 — |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2023 | |
Deposits | |
Deposits | Note 5 — Deposits A summarized analysis of the Bank’s deposits at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Non-interest bearing demand accounts $ 726,627 $ 723,228 Interest-bearing demand accounts 339,444 284,747 Money market accounts 627,467 615,149 Savings accounts 229,916 258,230 Certificates of Deposit 181,577 93,033 Total deposits $ 2,105,031 $ 1,974,387 Time deposits that meet or exceed the FDIC insurance limit of $250 thousand at September 30, 2023 and December 31, 2022 were $12.3 million and $17.0 million, respectively. Uninsured deposits, net of fully collateralized municipal relationships, as of September 30, 2023 and December 31, 2022 totaled $788 million and $871 million, respectively. Scheduled maturities of time deposits for the next five years as of September 30, 2023, are as follows: 2023 $ 143,216 2024 27,960 2025 8,898 2026 1,503 $ 181,577 Deposits of executive officers, directors and principal officers of the Company, including their immediate families and companies in which they are affiliated, amounted to $7.8 million and $15.6 million at September 30, 2023 and December 31, 2022, respectively. |
Pension Plan and Stock Compensa
Pension Plan and Stock Compensation | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Service cost $ — $ — $ — $ — Interest cost 279 202 837 606 Expected return on plan assets (411) (496) (1,233) (1,489) Amortization of transition cost — (7) — (21) Amortization of net loss 70 — 210 — Net periodic benefit cost/(income) $ (62) $ (301) $ (186) $ (904) The Company has a time based restricted stock plan. For the three months ended September 30, 2023 and 2022, the Company’s recognized stock-based compensation costs were $9 and $33 , respectively. For the nine months ended September 30, 2023 and 2022 the Company’s recognized stock-based compensation costs of , 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 restricted stock grants made during the three and nine months ended September 30, 2023 and 2022. The grants generally vest at the rate of A summary of the Company’s restricted stock awards activity for the nine months ended September 30, 2023 is presented below: Weighted Average Fair Shares Value Non-vested at beginning of period 11,677 $ 29.24 Granted — $ Vested (7,569) $ 29.50 Forfeited (580) $ 28.75 Non-vested at end of period 3,528 $ 28.75 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, 2023: Restricted Stock Units Non-vested RSUs at beginning of period 59,747 Granted 35,628 Vested (16,562) Forfeited (4,967) Non-vested RSUs at end of period 73,846 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022: Three Months Ended September 30, 2023 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (59,477) $ (7,099) $ 117 $ (66,459) Other comprehensive income/(loss) before reclassification, net (12,626) 395 (3) (12,234) Credit loss expense — — — — Less amounts reclassified from accumulated other comprehensive income — — — — Net current period other comprehensive income/(loss) (12,626) 395 (3) (12,234) Ending balance $ (72,103) $ (6,704) $ 114 $ (78,693) Nine Months Ended September 30, 2023 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (60,430) $ (7,889) $ 123 $ (68,196) Other comprehensive income/(loss) before reclassification (16,586) 1,185 (9) (15,410) Credit loss expense 5,000 — — 5,000 Less amounts reclassified from accumulated other comprehensive income (87) — — (87) Net current period other comprehensive income/(loss) (11,673) 1,185 (9) (10,497) Ending balance $ (72,103) $ (6,704) $ 114 $ (78,693) 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) 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, 2023 and 2022: Affected Line Item Amount Reclassified from Accumulated Other Comprehensive Income 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 2023 2022 2023 2022 Unrealized gains and losses on available-for-sale securities Realized gains on securities available-for-sale $ — $ — $ 107 $ — Investment security gains (losses) Total before tax — — 107 — Tax effect — — 20 — Provision for income taxes Net of tax $ — $ — $ 87 $ — Amortization of defined benefit pension items Transition asset $ — $ (7) $ — $ (21) Other expense Actuarial gains (losses) — — — — Other expense Total before tax — (7) — (21) Tax effect — (1) — (3) Provision for income taxes Net of tax $ — $ (8) $ — $ (24) - Total reclassifications for the period, net of tax $ — $ (8) $ 87 $ (24) |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Noninterest Income Service charges on deposit accounts $ $ Overdraft fees 106 93 $ 294 $ 239 Other 104 89 294 272 Trust income 1,266 1,176 3,707 3,569 Investment advisory income 1,333 1,085 3,819 3,385 Investment securities gains (losses) (a) — — 107 — Earnings on bank owned life insurance (a) 243 240 725 709 Other (b) 168 250 730 741 Total Noninterest Income $ 3,220 $ 2,933 $ 9,676 $ 8,915 (a) Not within the scope of ASC 606. (b) The Other category includes safe deposit income, checkbook fees, and debit card fee income, totaling $245 and $231 for the three months ended September 30, 2023 and 2022, respectively, and $711 and $644 for the nine months ended September 30, 2023 and 2022, that are within the scope of ASC 606 and loan related fee income and miscellaneous income, totaling $(77) and $19 for the three months ended September 30, 2023 and 2022, respectively, and $19 and $97 for the nine months ended September 30, 2023 and 2022 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, 2023 | |
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, 2023 For the nine months ended September 30, 2023 Banking Wealth Management Total Segments Banking Wealth Management Total Segments Net interest income $ 22,501 $ — $ 22,501 $ 66,242 $ — $ 66,242 Noninterest income 621 2,599 3,220 2,150 7,526 9,676 Provision for credit loss - investments — — — (5,000) (5,000) Provision for credit loss (837) — (837) (2,406) — (2,406) Noninterest expenses (11,777) (1,813) (13,590) (36,266) (5,799) (42,065) Income tax expense (2,090) (166) (2,256) (4,730) (363) (5,093) Net income $ 8,418 $ 620 $ 9,038 $ 19,990 $ 1,364 $ 21,354 Total assets $ 2,438,565 $ 8,706 $ 2,447,271 $ 2,438,565 $ 8,706 $ 2,447,271 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 |
Regulatory Capital Matters
Regulatory Capital Matters | 9 Months Ended |
Sep. 30, 2023 | |
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 regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer.” 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, 2023 and at December 31, 2022 exceeded the regulatory minimum levels for the Bank to be considered well capitalized under the prompt corrective action regulations. Actual and required capital amounts and ratios are presented below at September 30, 2023 and December 31, 2022 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, 2023 Total capital to risk weighted assets $ 255,225 13.93 % $ 146,582 8.00 % $ 180,937 9.875 % $ 183,227 10.00 % Tier 1 (Core) capital to risk weighted assets 232,298 12.68 % 109,936 6.00 % 144,292 7.875 % 146,582 8.00 % Common Tier 1 (CET1) to risk weighted assets 232,298 12.68 % 82,452 4.50 % 116,807 6.375 % 119,098 6.50 % Tier 1 (Core) Capital to average assets 232,298 9.26 % 100,358 4.00 % N/A N/A 125,447 5.00 % December 31, 2022 Total capital to risk weighted assets $ 235,346 13.95 % $ 134,986 8.00 % $ 166,624 9.875 % $ 168,733 10.00 % Tier 1 (Core) capital to risk weighted assets 214,243 12.70 % 101,240 6.00 % 132,877 7.875 % 134,986 8.00 % Common Tier 1 (CET1) to risk weighted assets 214,243 12.70 % 75,930 4.50 % 107,567 6.375 % 109,677 6.50 % Tier 1 (Core) Capital to average assets 214,243 9.09 % 94,250 4.00 % N/A N/A 117,813 5.00 % |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 $1.4 billion and $1.3 billion at September 30, 2023 and December 31, 2022, 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, 2022 for Orange County Bancorp contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 24, 2023. 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, 2023, the results of operations, comprehensive income/(loss), changes in stockholders’ equity for the three and nine months ended September 30, 2023 and 2022 and cash flow statements for the nine months ended September 30, 2023 and 2022. 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 |
Financial instruments credit losses | The Company adopted ASU 2016-13 on January 1, 2023 for all financial assets measured at amortized cost and off-balance sheet credit exposures using the modified retrospective method. Results for the three and nine months ended September 30, 2023 are presented under Accounting Standards Codification 326, Financial Instruments – Credit Losses, while prior period amounts continue to be reported with previously applicable GAAP and have not been restated. Effective January 1, 2023, the Company recorded a $1.9 million increase in allowance for credit losses on loans that is referred to as the current expected credit loss (“CECL”) methodology (previously allowance for loan losses), an adjustment of $1.4 million recording reserves related to loans, and a $520 thousand increase related to allowance for off balance sheet credit exposures included in other liabilities section of the consolidated statements of financial condition, which resulted in a total cumulative effect adjustment of $1.6 million, net of tax, and a decrease to retained earnings, a component of the stockholders’ equity. Further information regarding the impact of CECL can be found in Note 3 – Loans and Allowance for Credit Losses. The Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) prospectively effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. The Company did not have any loans that were both experiencing financial difficulties and modified during the three and nine months ended September 30, 2023. Allowance for Credit Losses On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”), which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan and lease receivables and held-to-maturity securities. It also applies to off-balance sheet credit exposures (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, Accounting Standards Codification (“ASC”) 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities which management does not intend to sell or believes that it is more likely than not they will be required to sell. The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated statement of financial condition. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the Consolidated Statement of Financial Condition in other liabilities and is recorded within the provision for credit losses. Allowance for Credit Losses on Loans Receivable The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. Individually evaluated loans are primarily non-accrual and collateral dependent loans. Furthermore, the Company evaluates the pooling methodology at least annually to ensure that loans with similar risk characteristics are pooled appropriately. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company does not estimate expected losses on accrued interest receivable on loans, as accrued interest receivable is reversed or written off when the full collection of the accrued interest receivable related to a loan becomes doubtful. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. The Company calculates estimated credit losses for these loan segments using quantitative models and qualitative factors. Further information on loan segmentation and the credit loss estimation is included in Note 3 – Loans and Allowance for Credit Losses. Individually Evaluated Loans On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. Allowance for Credit Losses on Off-Balance Sheet Commitments The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated statement of financial condition and the related credit expense is recorded as provisions for credit losses in the consolidated statements of income. Allowance for Credit Losses on Available for Sale Securities For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. The Company does not estimate expected losses on accrued interest receivable on investments, as accrued interest receivable is reversed or written off when the full collection of the accrued interest receivable related to an investment becomes doubtful. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investment Securities | |
Schedule of amortized cost and fair value of investment securities | Gross Gross Amortized Unrealized Unrealized ACL Fair Cost Gains Losses Adjustment Value Available-for-sale September 30, 2023 U.S. government agencies and treasuries $ 98,539 $ 22 $ (12,838) $ — $ 85,723 Mortgage-backed securities - residential 264,406 — (40,908) — 223,498 Mortgage-backed securities - commercial 80,192 — (16,271) — 63,921 Corporate Securities 23,534 — (3,998) — 19,536 Obligations of states and political subdivisions 103,307 41 (17,318) — 86,030 Total debt securities $ 569,978 $ 63 $ (91,333) $ — $ 478,708 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale December 31, 2022 U.S. government agencies and treasuries $ 104,734 $ 25 $ (11,009) $ 93,750 Mortgage-backed securities - residential 283,774 17 (34,640) 249,151 Mortgage-backed securities - commercial 80,916 — (13,152) 67,764 Corporate Securities 28,559 — (2,901) 25,658 Obligations of states and political subdivisions 111,971 48 (14,881) 97,138 Total debt securities $ 609,954 $ 90 $ (76,583) $ 533,461 |
Schedule of sales of securities gains and losses | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Proceeds $ — $ — $ 7,296 $ — Gross realized gains $ — $ — $ 130 $ — Gross realized losses — — 23 — Net gain on sales of securities — — 107 — Tax provision on realized net gains and loss — — 20 — Net gain on sales of securities, after tax $ — $ — $ 87 $ — |
Schedule of contractual maturities of debt securities | Available-for-sale Amortized Fair Cost Value Due in one year or less $ 7,617 $ 7,572 Due after one through five years 24,360 22,475 Due after five through ten years 61,833 52,196 Due after ten years 131,570 109,046 225,380 191,289 Mortgage-backed securities 344,598 287,419 Total debt securities $ 569,978 $ 478,708 |
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, 2023 U.S. government agencies and treasuries $ 466 $ (1) $ 81,393 $ (12,837) $ 81,859 $ (12,838) Mortgage-backed securities - residential 9,377 (206) 212,700 (40,702) 222,077 (40,908) Mortgage-backed securities - commercial 1,178 (57) 62,743 (16,214) 63,921 (16,271) Corporate Securities — — 19,536 (3,998) 19,536 (3,998) Obligations of states and political subdivisions 3,454 (79) 79,441 (17,239) 82,895 (17,318) Total debt securities $ 14,475 $ (343) $ 455,813 $ (90,990) $ 470,288 $ (91,333) 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, 2022 U.S. government agencies $ 47,064 $ (2,414) $ 41,718 $ (8,595) $ 88,782 $ (11,009) Mortgage-backed securities - residential 129,352 (9,290) 118,762 (25,350) 248,114 (34,640) Mortgage-backed securities - commercial 21,190 (2,849) 46,574 (10,303) 67,764 (13,152) Corporate Securities 12,503 (1,007) 13,155 (1,894) 25,658 (2,901) Obligations of states and political subdivisions 57,287 (6,763) 32,479 (8,118) 89,766 (14,881) Total debt securities $ 267,396 $ (22,323) $ 252,688 $ (54,260) $ 520,084 $ (76,583) |
Schedule of allowance for credit loss - investments activity | Allowance for credit losses -investments: Beginning balance $ — Provision for loan losses 5,000 Charge-offs 5,000 Recoveries — Ending balance $ — |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans | |
Schedule of loans | September 30, 2023 December 31, 2022 Commercial and industrial $ 266,997 $ 258,901 Commercial real estate 1,225,936 1,098,054 Commercial real estate construction 91,822 109,570 Residential real estate 83,165 74,277 Home equity 12,084 12,329 Consumer 27,725 16,299 Total Loans $ 1,707,729 $ 1,569,430 Allowance for credit losses (25,775) (21,832) Net Loans $ 1,681,954 $ 1,547,598 |
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 by portfolio segment for each of the three and nine months ended September 30, 2023 and 2022: (Note: The activity presented does not include provisions recorded to support the reserve associated with off balance sheet commitments.) Three Months Ended September 30, 2023 Commercial Commercial And Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for credit losses: Beginning balance $ 5,155 $ 17,119 $ 1,060 $ 992 $ 46 $ 476 $ 24,848 Provision for credit losses 869 82 (59) 3 5 (93) 807 Charge-offs (76) — — — — — (76) Recoveries 13 160 — — — 23 196 Ending balance $ 5,961 $ 17,361 $ 1,001 $ 995 $ 51 $ 406 $ 25,775 Nine Months Ended September 30, 2023 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total Allowance for credit losses: Beginning balance, prior to adoption of ASC 326 $ 5,510 $ 14,364 $ 1,252 $ 345 $ 63 $ 298 $ 21,832 Impact of adopting ASC 326 72 1,737 (8) (227) (17) (129) 1,428 Provision for credit losses 718 1,087 (243) 877 5 110 2,554 Charge-offs (410) — — — — (36) (446) Recoveries 71 173 — — — 163 407 Ending balance $ 5,961 $ 17,361 $ 1,001 $ 995 $ 51 $ 406 $ 25,775 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 The following tables present the balance in the allowance and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2023 and December 31, 2022: Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total September 30, 2023 Allowance for credit losses: Ending balance: individually evaluated for impairment $ 1,282 $ 311 $ — $ — $ — $ — $ 1,593 collectively evaluated for impairment 4,679 17,050 1,001 995 51 406 24,182 Total ending allowance balance $ 5,961 $ 17,361 $ 1,001 $ 995 $ 51 $ 406 $ 25,775 Loans: Ending balance: individually evaluated for impairment $ 1,538 $ 22,790 $ — $ 1,244 $ 45 $ 97 $ 25,714 collectively evaluated for impairment 265,459 1,203,146 91,822 81,921 12,039 27,628 1,682,015 Total ending loans balance $ 266,997 $ 1,225,936 $ 91,822 $ 83,165 $ 12,084 $ 27,725 $ 1,707,729 Commercial Commercial and Commercial Real Estate Residential Home Industrial Real Estate Construction Real Estate Equity Consumer Total December 31, 2022 Allowance for loan losses: Ending balance: individually evaluated for impairment $ 653 $ 380 $ — $ — $ — $ — $ 1,033 collectively evaluated for impairment 4,857 13,984 1,252 345 63 298 20,799 Total ending allowance balance $ 5,510 $ 14,364 $ 1,252 $ 345 $ 63 $ 298 $ 21,832 Loans: Ending balance: individually evaluated for impairment $ 1,003 $ 22,956 $ — $ 1,254 $ 51 $ 104 $ 25,368 collectively evaluated for impairment 257,898 1,075,098 109,570 73,023 12,278 16,195 1,544,062 Total ending loans balance $ 258,901 $ 1,098,054 $ 109,570 $ 74,277 $ 12,329 $ 16,299 $ 1,569,430 |
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, 2023 and December 31, 2022: Unpaid Allowance for Principal Recorded Credit Losses Balance Investment Allocated September 30, 2023 With no related allowance recorded Commercial and industrial (1) $ — $ — $ — Commercial real estate (2) 17,764 17,331 — Commercial real estate construction — — — Residential real estate (3) 1,257 1,244 — Home equity (4) 51 45 — Consumer 97 97 — Total $ 19,169 $ 18,717 $ — With an allowance recorded: Commercial and industrial (1) $ 1,916 $ 1,538 $ 1,282 Commercial real estate (2) 5,497 5,459 311 Commercial real estate construction — — — Residential real estate — — — Home equity — — — Consumer (5) — — — Total $ 7,413 $ 6,997 $ 1,593 (1) Commercial and industrial loans – secured by business assets and UCC filings (2) Commercial real estate – secured by various types of commercial real estate (3) Residential real estate – secured by residential real estate (4) Home equity – secured by residential real estate (5) Consumer – represents one personal loan Unpaid Allowance for Principal Recorded Loan Losses Balance Investment Allocated December 31, 2022 With no related allowance recorded Commercial and industrial $ — $ — $ — Commercial real estate 17,884 17,316 — Commercial real estate construction — — — Residential real estate 1,266 1,254 — Home equity 55 51 — Consumer — — — Total $ 19,205 $ 18,621 $ — With an allowance recorded: Commercial and industrial $ 1,011 $ 1,003 $ 653 Commercial real estate 5,665 5,640 380 Commercial real estate construction — — — Residential real estate — — — Home equity — — — Consumer 104 104 — Total $ 6,780 $ 6,747 $ 1,033 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, 2023 and 2022: Three Months Ended Three Months Ended September 30, 2023 September 30, 2022 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ — $ — Commercial real estate 17,767 154 17,553 158 Commercial real estate construction 578 — 578 — Residential real estate 714 1 1,283 6 Home equity — — — — Consumer 98 1 — — Total $ 19,157 $ 156 $ 19,414 $ 164 With an allowance recorded: Commercial and industrial $ 6,771 $ 78 $ 18,599 $ 52 Commercial real estate 303 — 2,259 30 Commercial real estate construction — — — — Residential real estate — — — — Home equity — — — — Consumer — — 108 1 Total $ 7,074 $ 78 $ 20,966 $ 83 (1) Cash basis interest income approximates interest income recognized. Nine Months Ended Nine Months Ended September 30, 2023 September 30, 2022 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized (1) Investment Recognized (1) With no related allowance recorded Commercial and industrial $ — $ — $ — $ — Commercial real estate 18,007 465 17,549 476 Commercial real estate construction 578 — 578 — Residential real estate 719 2 983 18 Home equity — — — — Consumer 100 4 — — Total $ 19,404 $ 471 $ 19,110 $ 494 With an allowance recorded: Commercial and industrial $ 7,011 $ 238 $ 9,264 $ 157 Commercial real estate 308 — 2,292 90 Commercial real estate construction — — — — Residential real estate — — — — Home equity — — — — Consumer — — 110 4 Total $ 7,319 $ 238 $ 11,666 $ 251 (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, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Commercial and industrial $ 1,538 $ 1,003 $ 200 $ 1,850 Commercial real estate 4,130 3,882 895 — Commercial real estate construction — — 1,513 — Residential real estate 1,182 1,188 — — Home equity 45 51 — — Consumer — — 3 477 Total $ 6,895 $ 6,124 $ 2,611 $ 2,327 |
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, 2023 Commercial and industrial $ — $ 389 $ 1,291 $ 1,680 $ 265,317 Commercial real estate 278 3,055 1,196 4,529 1,221,407 Commercial real estate construction — — 1,513 1,513 90,309 Residential real estate — 15 1,167 1,182 81,983 Home equity — — — — 12,084 Consumer 2 — 3 5 27,720 Total $ 280 $ 3,459 $ 5,170 $ 8,909 $ 1,698,820 30-59 Days 60-89 Days Greater Than Total Loans Past Due Past Due 90 Days Past Due Not Past Due December 31, 2022 Commercial and industrial $ 1,497 $ 1,583 $ 2,854 $ 5,934 $ 252,967 Commercial real estate 563 — 952 1,515 1,096,539 Commercial real estate construction — — — — 109,570 Residential real estate 2 — 1,188 1,190 73,087 Home equity — — — — 12,329 Consumer 584 634 476 1,694 14,605 Total $ 2,646 $ 2,217 $ 5,470 $ 10,333 $ 1,559,097 |
Schedule of risk category of loans by class of loans | The following table summarizes the Company’s loans by year of origination and internally assigned credit risk at September 30, 2023 and gross charge-offs for the nine months ended September 30, 2023: Revolving Revolving Loans to 2023 2022 2021 2020 2019 Prior Loans Term Loans Total Commercial and industrial — Pass $ 40,026 62,445 54,155 47,945 26,500 33,783 — — $ 264,854 Special Mention — 87 — — — 221 — — 308 Substandard — 385 — 150 446 854 — — 1,835 Total Commercial and industrial $ 40,026 62,917 54,155 48,095 26,946 34,858 — — $ 266,997 Current period gross charge-offs 22 — — 360 — 28 — — 410 Commercial real estate Pass $ 156,570 331,938 238,553 165,685 94,391 211,980 3,920 — $ 1,203,037 Special Mention — — 435 — — 6,904 — — 7,339 Substandard — 334 — 2,445 6,207 6,574 — — 15,560 Total Commercial real estate $ 156,570 332,272 238,988 168,130 100,598 225,458 3,920 — $ 1,225,936 Current period gross charge-offs — — — — — — — — — Commercial real estate construction Pass $ 5,905 22,559 52,028 11,330 — — — — $ 91,822 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Commercial real estate construction $ 5,905 22,559 52,028 11,330 — — — — $ 91,822 Current period gross charge-offs — — — — — — — — — Residential real estate Pass $ 17,188 20,211 12,083 9,486 4,565 18,450 — — $ 81,983 Special Mention — — — — — — — — — Substandard — — — — 589 593 — — 1,182 Total Residential real estate $ 17,188 20,211 12,083 9,486 5,154 19,043 — — $ 83,165 Current period gross charge-offs — — — — — — — — — Home equity Pass $ 338 70 16 — 71 — 9,853 1,691 $ 12,039 Special Mention — — — — — — — — — Substandard — — — — — — — 45 45 Total Home Equity $ 338 70 16 — 71 — 9,853 1,736 $ 12,084 Current period gross charge-offs — — — — — — — — — Consumer Pass $ 20,259 10 — 1,906 29 64 5,360 — $ 27,628 Special Mention — — — — — — — — — Substandard — — — — — 97 — — 97 Total Consumer $ 20,259 10 — 1,906 29 161 5,360 — $ 27,725 Current period gross charge-offs — — 11 — 25 — — — 36 Total Loans $ 240,286 438,039 357,270 238,947 132,798 279,520 19,133 1,736 $ 1,707,729 Gross charge-offs $ 22 — 11 360 25 28 — — $ 446 Based on the analysis performed as of December 31, 2022, the risk category of loans by class of loans is as follows: Special Pass Mention Substandard Doubtful Loss Total December 31, 2022 Commercial and industrial $ 256,939 $ 575 $ 1,387 $ — $ — $ 258,901 Commercial real estate 1,074,952 7,399 15,703 — — 1,098,054 Commercial real estate construction 109,570 — — — — 109,570 Residential real estate 73,089 — 1,188 — — 74,277 Home equity 12,278 — 51 — — 12,329 Consumer 16,195 — 104 — — 16,299 Total $ 1,543,023 $ 7,974 $ 18,433 $ — $ — $ 1,569,430 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 2023 (Level 1) (Level 2) (Level 3) U.S. government agencies and treasuries $ 85,723 $ — $ 85,723 $ — Mortgage-backed securities 287,419 — 287,419 — Corporate securities 19,536 — 19,536 — Obligations of states and political subdivisions 86,030 — 86,030 — Total securities available-for-sale $ 478,708 $ — $ 478,708 $ — Fair Value Measurements Using: Quoted Prices in Active Markets Significant Other Significant Total at for Identical Observable Unobservable December 31, Assets Inputs Inputs 2022 (Level 1) (Level 2) (Level 3) U.S. government agencies and treasuries 93,750 $ — $ 93,750 $ — Mortgage-backed securities 316,915 — 316,915 — Corporate securities 25,658 — 25,658 — Obligations of states and political subdivisions 97,138 — 97,138 — Total securities available-for-sale $ 533,461 $ — $ 533,461 $ — |
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, 2023 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Individually Evaluated Loans - Commercial Real Estate $ 200 $ — $ — $ 200 Fair Value Measurements Using: Quoted Prices Significant in Active Other Significant Total at Markets for Observable Unobservable December 31, 2022 Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Impaired loans - Commercial Real Estate $ 204 $ — $ — $ 204 |
Schedule of level 3 fair value measured at fair value on a non-recurring | Fair Value Range September 30, 2023 Value Valuation Technique Unobservable Input (Weighted Average) Individually Evaluated Loans - Commercial Real Estate $ 200 Appraisal of collateral (1) Appraisal and liquidation 20% adjustments (2) (20%) Fair Value Range December 31, 2022 Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans - Commercial Real Estate $ 204 Appraisal of collateral (1) Appraisal and liquidation 20% adjustments (2) (20%) (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, 2023 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 158,708 $ 158,708 $ 158,708 $ — $ — Loans, net 1,681,954 1,598,599 — — 1,598,599 Accrued interest receivable 6,332 6,332 — 2,686 3,646 Restricted investment in bank stocks 10,992 NA — — — Financial liabilities: Deposits 2,105,031 2,103,675 1,923,672 180,003 — FHLB advances, short term 146,000 145,663 145,663 FHLB advances, long term 10,000 9,641 — 9,641 — Subordinated notes, net of issuance costs 19,502 23,560 — 23,560 — Accrued interest payable 642 642 — 642 — December 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 86,081 $ 86,081 $ 86,081 $ — $ — Loans, net 1,547,598 1,503,543 — — 1,503,543 Accrued interest receivable 6,320 6,320 — 2,448 3,872 Restricted investment in bank stocks 9,562 NA — — — Financial liabilities: Deposits 1,974,387 1,972,387 1,881,354 91,033 — FHLB advances, short term 131,500 131,255 — 131,255 — Subordinated notes, net of issuance costs 19,447 19,682 — 19,682 — Accrued interest payable 267 267 — 267 — |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposits | |
Summary of analysis of deposits | September 30, 2023 December 31, 2022 Non-interest bearing demand accounts $ 726,627 $ 723,228 Interest-bearing demand accounts 339,444 284,747 Money market accounts 627,467 615,149 Savings accounts 229,916 258,230 Certificates of Deposit 181,577 93,033 Total deposits $ 2,105,031 $ 1,974,387 |
Schedule of maturities of time deposits | 2023 $ 143,216 2024 27,960 2025 8,898 2026 1,503 $ 181,577 |
Pension Plan and Stock Compen_2
Pension Plan and Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 2022 2023 2022 Service cost $ — $ — $ — $ — Interest cost 279 202 837 606 Expected return on plan assets (411) (496) (1,233) (1,489) Amortization of transition cost — (7) — (21) Amortization of net loss 70 — 210 — Net periodic benefit cost/(income) $ (62) $ (301) $ (186) $ (904) |
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 11,677 $ 29.24 Granted — $ Vested (7,569) $ 29.50 Forfeited (580) $ 28.75 Non-vested at end of period 3,528 $ 28.75 |
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 59,747 Granted 35,628 Vested (16,562) Forfeited (4,967) Non-vested RSUs at end of period 73,846 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022: Three Months Ended September 30, 2023 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (59,477) $ (7,099) $ 117 $ (66,459) Other comprehensive income/(loss) before reclassification, net (12,626) 395 (3) (12,234) Credit loss expense — — — — Less amounts reclassified from accumulated other comprehensive income — — — — Net current period other comprehensive income/(loss) (12,626) 395 (3) (12,234) Ending balance $ (72,103) $ (6,704) $ 114 $ (78,693) Nine Months Ended September 30, 2023 Unrealized Gains and Losses on Deferred Available-for- Defined Benefit Compensation Sale Securities Pension Items Liability Total Beginning balance $ (60,430) $ (7,889) $ 123 $ (68,196) Other comprehensive income/(loss) before reclassification (16,586) 1,185 (9) (15,410) Credit loss expense 5,000 — — 5,000 Less amounts reclassified from accumulated other comprehensive income (87) — — (87) Net current period other comprehensive income/(loss) (11,673) 1,185 (9) (10,497) Ending balance $ (72,103) $ (6,704) $ 114 $ (78,693) 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) |
Summary of significant amounts reclassified out of each component of accumulated other comprehensive income (loss) | Affected Line Item Amount Reclassified from Accumulated Other Comprehensive Income 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 2023 2022 2023 2022 Unrealized gains and losses on available-for-sale securities Realized gains on securities available-for-sale $ — $ — $ 107 $ — Investment security gains (losses) Total before tax — — 107 — Tax effect — — 20 — Provision for income taxes Net of tax $ — $ — $ 87 $ — Amortization of defined benefit pension items Transition asset $ — $ (7) $ — $ (21) Other expense Actuarial gains (losses) — — — — Other expense Total before tax — (7) — (21) Tax effect — (1) — (3) Provision for income taxes Net of tax $ — $ (8) $ — $ (24) - Total reclassifications for the period, net of tax $ — $ (8) $ 87 $ (24) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contracts with Customers | |
Schedule of noninterest income | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Noninterest Income Service charges on deposit accounts $ $ Overdraft fees 106 93 $ 294 $ 239 Other 104 89 294 272 Trust income 1,266 1,176 3,707 3,569 Investment advisory income 1,333 1,085 3,819 3,385 Investment securities gains (losses) (a) — — 107 — Earnings on bank owned life insurance (a) 243 240 725 709 Other (b) 168 250 730 741 Total Noninterest Income $ 3,220 $ 2,933 $ 9,676 $ 8,915 (a) Not within the scope of ASC 606. (b) The Other category includes safe deposit income, checkbook fees, and debit card fee income, totaling $245 and $231 for the three months ended September 30, 2023 and 2022, respectively, and $711 and $644 for the nine months ended September 30, 2023 and 2022, that are within the scope of ASC 606 and loan related fee income and miscellaneous income, totaling $(77) and $19 for the three months ended September 30, 2023 and 2022, respectively, and $19 and $97 for the nine months ended September 30, 2023 and 2022 which are outside the scope of ASC 606. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Information | |
Schedule of segment information | For the three months ended September 30, 2023 For the nine months ended September 30, 2023 Banking Wealth Management Total Segments Banking Wealth Management Total Segments Net interest income $ 22,501 $ — $ 22,501 $ 66,242 $ — $ 66,242 Noninterest income 621 2,599 3,220 2,150 7,526 9,676 Provision for credit loss - investments — — — (5,000) (5,000) Provision for credit loss (837) — (837) (2,406) — (2,406) Noninterest expenses (11,777) (1,813) (13,590) (36,266) (5,799) (42,065) Income tax expense (2,090) (166) (2,256) (4,730) (363) (5,093) Net income $ 8,418 $ 620 $ 9,038 $ 19,990 $ 1,364 $ 21,354 Total assets $ 2,438,565 $ 8,706 $ 2,447,271 $ 2,438,565 $ 8,706 $ 2,447,271 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 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory Capital Matters | |
Schedule of actual and required capital amounts and ratios | 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, 2023 Total capital to risk weighted assets $ 255,225 13.93 % $ 146,582 8.00 % $ 180,937 9.875 % $ 183,227 10.00 % Tier 1 (Core) capital to risk weighted assets 232,298 12.68 % 109,936 6.00 % 144,292 7.875 % 146,582 8.00 % Common Tier 1 (CET1) to risk weighted assets 232,298 12.68 % 82,452 4.50 % 116,807 6.375 % 119,098 6.50 % Tier 1 (Core) Capital to average assets 232,298 9.26 % 100,358 4.00 % N/A N/A 125,447 5.00 % December 31, 2022 Total capital to risk weighted assets $ 235,346 13.95 % $ 134,986 8.00 % $ 166,624 9.875 % $ 168,733 10.00 % Tier 1 (Core) capital to risk weighted assets 214,243 12.70 % 101,240 6.00 % 132,877 7.875 % 134,986 8.00 % Common Tier 1 (CET1) to risk weighted assets 214,243 12.70 % 75,930 4.50 % 107,567 6.375 % 109,677 6.50 % Tier 1 (Core) Capital to average assets 214,243 9.09 % 94,250 4.00 % N/A N/A 117,813 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, 2023 USD ($) location | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Loans | ||||||
Assets held in an agency or fiduciary capacity | $ 1,400,000 | $ 1,300,000 | ||||
Financing receivable allowance for credit loss | 25,775 | $ 24,848 | 21,832 | $ 22,888 | $ 23,642 | $ 17,661 |
Decrease in retained earnings | $ (100,536) | (84,635) | ||||
Accounting Standards Update 2016-13 [Member] | ||||||
Loans | ||||||
Financing receivable allowance for credit loss | 1,900 | |||||
Elimination of reserves | 1,400 | |||||
Off balance sheet, credit loss liability | 520 | |||||
Decrease in retained earnings | $ 1,600 | |||||
Orange County | ||||||
Loans | ||||||
Number of offices in New York | location | 8 | |||||
Westchester County | ||||||
Loans | ||||||
Number of offices in New York | location | 7 | |||||
Rockland County | ||||||
Loans | ||||||
Number of offices in New York | location | 2 | |||||
Bronx County | ||||||
Loans | ||||||
Number of offices in New York | location | 1 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investment securities | ||
Amortized Cost | $ 569,978 | $ 609,954 |
Gross Unrealized Gains | 63 | 90 |
Gross Unrealized Losses | (91,333) | (76,583) |
ACL adjustment | 0 | 0 |
Fair Value | 478,708 | 533,461 |
U.S. government agencies and treasuries | ||
Investment securities | ||
Amortized Cost | 98,539 | 104,734 |
Gross Unrealized Gains | 22 | 25 |
Gross Unrealized Losses | (12,838) | (11,009) |
Fair Value | 85,723 | 93,750 |
Mortgage-backed securities | ||
Investment securities | ||
Amortized Cost | 283,774 | |
Gross Unrealized Gains | 17 | |
Gross Unrealized Losses | (34,640) | |
Fair Value | 249,151 | |
Mortgage-backed securities - residential | ||
Investment securities | ||
Amortized Cost | 264,406 | |
Gross Unrealized Losses | (40,908) | |
Fair Value | 223,498 | |
Mortgage-backed securities - commercial | ||
Investment securities | ||
Amortized Cost | 80,192 | 80,916 |
Gross Unrealized Losses | (16,271) | (13,152) |
Fair Value | 63,921 | 67,764 |
Corporate Securities | ||
Investment securities | ||
Amortized Cost | 23,534 | 28,559 |
Gross Unrealized Losses | (3,998) | (2,901) |
Fair Value | 19,536 | 25,658 |
Obligations of states and political subdivisions | ||
Investment securities | ||
Amortized Cost | 103,307 | 111,971 |
Gross Unrealized Gains | 41 | 48 |
Gross Unrealized Losses | (17,318) | (14,881) |
Fair Value | $ 86,030 | $ 97,138 |
Investment Securities - Gains a
Investment Securities - Gains and Losses (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Investment Securities | |
Proceeds | $ 7,296 |
Gross realized gains | 130 |
Gross realized losses | 23 |
Net gain on sales of securities | 107 |
Tax provision on realized net gains and loss | 20 |
Net gain on sales of securities, after tax | $ 87 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less, Amortized Cost | $ 7,617 | |
Due after one through five years, Amortized Cost | 24,360 | |
Due after five through ten years, Amortized Cost | 61,833 | |
Due after ten years, Amortized Cost | 131,570 | |
Total, Amortized Cost | 225,380 | |
Mortgage-backed securities | 344,598 | |
Amortized Cost | 569,978 | $ 609,954 |
Fair Value | ||
Due in one year or less, Fair Value | 7,572 | |
Due after one through five years, Fair Value | 22,475 | |
Due after five through ten years, Fair Value | 52,196 | |
Due after ten years, Fair Value | 109,046 | |
Total, Fair Value | 191,289 | |
Mortgage-backed securities | 287,419 | |
Fair Value | 478,708 | 533,461 |
Mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost | 283,774 | |
Fair Value | ||
Fair Value | 249,151 | |
Debt securities pledged as collateral | 386,461 | 323,674 |
Mortgage-backed securities - residential | ||
Amortized Cost | ||
Amortized Cost | 264,406 | |
Fair Value | ||
Fair Value | 223,498 | |
Commercial Mortgage-Backed Securities [Member] | ||
Amortized Cost | ||
Amortized Cost | 80,192 | 80,916 |
Fair Value | ||
Fair Value | $ 63,921 | $ 67,764 |
Investment Securities - Securit
Investment Securities - Securities with unrealized and unrecognized losses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investment securities | ||
Fair Value, Less than 12 Months | $ 14,475 | $ 267,396 |
Fair Value, 12 Months or More | 455,813 | 252,688 |
Fair Value, Total | 470,288 | 520,084 |
Unrealized Losses, Less than 12 Months | (343) | (22,323) |
Unrealized Losses, 12 Months or More | (90,990) | (54,260) |
Unrealized Losses, Total | (91,333) | (76,583) |
U.S. government agencies and treasuries | ||
Investment securities | ||
Fair Value, Less than 12 Months | 466 | 47,064 |
Fair Value, 12 Months or More | 81,393 | 41,718 |
Fair Value, Total | 81,859 | 88,782 |
Unrealized Losses, Less than 12 Months | (1) | (2,414) |
Unrealized Losses, 12 Months or More | (12,837) | (8,595) |
Unrealized Losses, Total | (12,838) | (11,009) |
Mortgage-backed securities - residential | ||
Investment securities | ||
Fair Value, Less than 12 Months | 9,377 | 129,352 |
Fair Value, 12 Months or More | 212,700 | 118,762 |
Fair Value, Total | 222,077 | 248,114 |
Unrealized Losses, Less than 12 Months | (206) | (9,290) |
Unrealized Losses, 12 Months or More | (40,702) | (25,350) |
Unrealized Losses, Total | (40,908) | (34,640) |
Mortgage-backed securities - commercial | ||
Investment securities | ||
Fair Value, Less than 12 Months | 1,178 | 21,190 |
Fair Value, 12 Months or More | 62,743 | 46,574 |
Fair Value, Total | 63,921 | 67,764 |
Unrealized Losses, Less than 12 Months | (57) | (2,849) |
Unrealized Losses, 12 Months or More | (16,214) | (10,303) |
Unrealized Losses, Total | (16,271) | (13,152) |
Corporate Securities | ||
Investment securities | ||
Fair Value, Less than 12 Months | 12,503 | |
Fair Value, 12 Months or More | 19,536 | 13,155 |
Fair Value, Total | 19,536 | 25,658 |
Unrealized Losses, Less than 12 Months | (1,007) | |
Unrealized Losses, 12 Months or More | (3,998) | (1,894) |
Unrealized Losses, Total | (3,998) | (2,901) |
Obligations of states and political subdivisions | ||
Investment securities | ||
Fair Value, Less than 12 Months | 3,454 | 57,287 |
Fair Value, 12 Months or More | 79,441 | 32,479 |
Fair Value, Total | 82,895 | 89,766 |
Unrealized Losses, Less than 12 Months | (79) | (6,763) |
Unrealized Losses, 12 Months or More | (17,239) | (8,118) |
Unrealized Losses, Total | $ (17,318) | $ (14,881) |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) security | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | |
Investment Securities | ||||
Other than temporary impairment loss recognized | $ 0 | |||
Number of securities in portfolio | security | 274 | 274 | 296 | |
Number of unrealized loss positions | security | 251 | 251 | 264 | |
Charge-offs | $ 5,000,000 | $ 5,000,000 | ||
Available for sale debt securities, accrued interest on investments | $ 2,700,000 | $ 2,700,000 | $ 2,500,000 |
Investment Securities - Allowan
Investment Securities - Allowance for credit losses -investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2023 | Sep. 30, 2023 | |
Allowance for credit losses -investments | ||
Beginning balance | $ 0 | |
Provision for loan losses | 5,000 | |
Charge-offs | $ 5,000 | 5,000 |
Ending balance | $ 0 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans | ||||||
Total loans | $ 1,707,729 | $ 1,569,430 | ||||
Total loans | 1,569,430 | |||||
Allowance for credit losses | (25,775) | $ (24,848) | (21,832) | $ (22,888) | $ (23,642) | $ (17,661) |
Allowance for credit losses | (21,832) | |||||
Loans, net | 1,681,954 | 1,547,598 | ||||
Loans, net | 1,547,598 | |||||
Commercial and industrial. | Commercial and industrial | ||||||
Loans | ||||||
Total loans | 266,997 | |||||
Total loans | 258,901 | |||||
Allowance for credit losses | (5,961) | (5,155) | (5,510) | (7,110) | (9,332) | (4,901) |
Commercial and industrial. | Paycheck Protection Program | ||||||
Loans | ||||||
Total loans | 227 | |||||
Total loans | 1,717 | |||||
Commercial real estate. | Commercial real estate | ||||||
Loans | ||||||
Total loans | 1,225,936 | |||||
Total loans | 1,098,054 | |||||
Allowance for credit losses | (17,361) | (17,119) | (14,364) | (13,439) | (12,303) | (11,183) |
Commercial real estate. | Commercial real estate construction | ||||||
Loans | ||||||
Total loans | 91,822 | |||||
Total loans | 109,570 | |||||
Allowance for credit losses | (1,001) | (1,060) | (1,252) | (1,597) | (1,318) | (964) |
Residential real estate. | Residential real estate | ||||||
Loans | ||||||
Total loans | 83,165 | |||||
Total loans | 74,277 | |||||
Allowance for credit losses | (995) | (992) | (345) | (359) | (299) | (272) |
Residential real estate. | Home equity | ||||||
Loans | ||||||
Total loans | 12,084 | |||||
Total loans | 12,329 | |||||
Allowance for credit losses | (51) | (46) | (63) | (69) | (68) | (80) |
Consumer | ||||||
Loans | ||||||
Total loans | 27,725 | |||||
Total loans | 16,299 | |||||
Allowance for credit losses | $ (406) | $ (476) | $ (298) | $ (314) | $ (322) | $ (261) |
Loans - Allowance by portfolio
Loans - Allowance by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Allowance for credit losses | |||||
Beginning balance | $ 24,848 | $ 23,642 | $ 21,832 | $ 17,661 | |
Provision for credit / loan losses | 807 | 2,084 | 2,554 | 8,517 | |
Charge-offs | (76) | (2,887) | (446) | (3,394) | |
Recoveries | 196 | 49 | 407 | 104 | |
Ending balance | 25,775 | 22,888 | 25,775 | 22,888 | |
Allowance for credit losses: | |||||
individually evaluated for impairment | $ 1,033 | ||||
Individually evaluated for impairment | 1,593 | 1,593 | |||
collectively evaluated for impairment | 20,799 | ||||
collectively evaluated for impairment | 24,182 | 24,182 | |||
Total ending allowance balance | 25,775 | 22,888 | 25,775 | 22,888 | 21,832 |
Loans: | |||||
individually evaluated for impairment | 25,368 | ||||
individually evaluated for impairment | 25,714 | 25,714 | |||
collectively evaluated for impairment | 1,544,062 | ||||
Collectively evaluated for impairment | 1,682,015 | 1,682,015 | |||
Total ending loans balance | 1,569,430 | ||||
Total ending loans balance | 1,707,729 | 1,707,729 | 1,569,430 | ||
Accounting Standards Update 2016-13 [Member] | |||||
Allowance for credit losses | |||||
Beginning balance | 1,900 | ||||
Allowance for credit losses: | |||||
Total ending allowance balance | 1,900 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||||
Allowance for credit losses | |||||
Beginning balance | 1,428 | ||||
Allowance for credit losses: | |||||
Total ending allowance balance | 1,428 | ||||
Commercial and industrial. | Commercial and industrial | |||||
Allowance for credit losses | |||||
Beginning balance | 5,155 | 9,332 | 5,510 | 4,901 | |
Provision for credit / loan losses | 869 | 573 | 718 | 5,066 | |
Charge-offs | (76) | (2,817) | (410) | (2,894) | |
Recoveries | 13 | 22 | 71 | 37 | |
Ending balance | 5,961 | 7,110 | 5,961 | 7,110 | |
Allowance for credit losses: | |||||
individually evaluated for impairment | 653 | ||||
Individually evaluated for impairment | 1,282 | 1,282 | |||
collectively evaluated for impairment | 4,857 | ||||
collectively evaluated for impairment | 4,679 | 4,679 | |||
Total ending allowance balance | 5,961 | 7,110 | 5,961 | 7,110 | 5,510 |
Loans: | |||||
individually evaluated for impairment | 1,003 | ||||
individually evaluated for impairment | 1,538 | 1,538 | |||
collectively evaluated for impairment | 257,898 | ||||
Collectively evaluated for impairment | 265,459 | 265,459 | |||
Total ending loans balance | 258,901 | ||||
Total ending loans balance | 266,997 | 266,997 | |||
Commercial and industrial. | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||||
Allowance for credit losses | |||||
Beginning balance | 72 | ||||
Allowance for credit losses: | |||||
Total ending allowance balance | 72 | ||||
Commercial and industrial. | Paycheck Protection Program | |||||
Loans: | |||||
Total ending loans balance | 1,717 | ||||
Total ending loans balance | 227 | 227 | |||
Commercial real estate. | Commercial real estate | |||||
Allowance for credit losses | |||||
Beginning balance | 17,119 | 12,303 | 14,364 | 11,183 | |
Provision for credit / loan losses | 82 | 1,110 | 1,087 | 2,230 | |
Recoveries | 160 | 26 | 173 | 26 | |
Ending balance | 17,361 | 13,439 | 17,361 | 13,439 | |
Allowance for credit losses: | |||||
individually evaluated for impairment | 380 | ||||
Individually evaluated for impairment | 311 | 311 | |||
collectively evaluated for impairment | 13,984 | ||||
collectively evaluated for impairment | 17,050 | 17,050 | |||
Total ending allowance balance | 17,361 | 13,439 | 17,361 | 13,439 | 14,364 |
Loans: | |||||
individually evaluated for impairment | 22,956 | ||||
individually evaluated for impairment | 22,790 | 22,790 | |||
collectively evaluated for impairment | 1,075,098 | ||||
Collectively evaluated for impairment | 1,203,146 | 1,203,146 | |||
Total ending loans balance | 1,098,054 | ||||
Total ending loans balance | 1,225,936 | 1,225,936 | |||
Commercial real estate. | Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||||
Allowance for credit losses | |||||
Beginning balance | 1,737 | ||||
Allowance for credit losses: | |||||
Total ending allowance balance | 1,737 | ||||
Commercial real estate. | Commercial real estate construction | |||||
Allowance for credit losses | |||||
Beginning balance | 1,060 | 1,318 | 1,252 | 964 | |
Provision for credit / loan losses | (59) | 279 | (243) | 633 | |
Ending balance | 1,001 | 1,597 | 1,001 | 1,597 | |
Allowance for credit losses: | |||||
collectively evaluated for impairment | 1,252 | ||||
collectively evaluated for impairment | 1,001 | 1,001 | |||
Total ending allowance balance | 1,001 | 1,597 | 1,001 | 1,597 | 1,252 |
Loans: | |||||
collectively evaluated for impairment | 109,570 | ||||
Collectively evaluated for impairment | 91,822 | 91,822 | |||
Total ending loans balance | 109,570 | ||||
Total ending loans balance | 91,822 | 91,822 | |||
Commercial real estate. | Commercial real estate construction | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||||
Allowance for credit losses | |||||
Beginning balance | (8) | ||||
Allowance for credit losses: | |||||
Total ending allowance balance | (8) | ||||
Residential real estate. | Residential real estate | |||||
Allowance for credit losses | |||||
Beginning balance | 992 | 299 | 345 | 272 | |
Provision for credit / loan losses | 3 | 60 | 877 | 138 | |
Charge-offs | (51) | ||||
Ending balance | 995 | 359 | 995 | 359 | |
Allowance for credit losses: | |||||
collectively evaluated for impairment | 345 | ||||
collectively evaluated for impairment | 995 | 995 | |||
Total ending allowance balance | 995 | 359 | 995 | 359 | 345 |
Loans: | |||||
individually evaluated for impairment | 1,254 | ||||
individually evaluated for impairment | 1,244 | 1,244 | |||
collectively evaluated for impairment | 73,023 | ||||
Collectively evaluated for impairment | 81,921 | 81,921 | |||
Total ending loans balance | 74,277 | ||||
Total ending loans balance | 83,165 | 83,165 | |||
Residential real estate. | Residential real estate | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||||
Allowance for credit losses | |||||
Beginning balance | (227) | ||||
Allowance for credit losses: | |||||
Total ending allowance balance | (227) | ||||
Residential real estate. | Home equity | |||||
Allowance for credit losses | |||||
Beginning balance | 46 | 68 | 63 | 80 | |
Provision for credit / loan losses | 5 | 1 | 5 | (11) | |
Ending balance | 51 | 69 | 51 | 69 | |
Allowance for credit losses: | |||||
collectively evaluated for impairment | 63 | ||||
collectively evaluated for impairment | 51 | 51 | |||
Total ending allowance balance | 51 | 69 | 51 | 69 | 63 |
Loans: | |||||
individually evaluated for impairment | 51 | ||||
individually evaluated for impairment | 45 | 45 | |||
collectively evaluated for impairment | 12,278 | ||||
Collectively evaluated for impairment | 12,039 | 12,039 | |||
Total ending loans balance | 12,329 | ||||
Total ending loans balance | 12,084 | 12,084 | |||
Residential real estate. | Home equity | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||||
Allowance for credit losses | |||||
Beginning balance | (17) | ||||
Allowance for credit losses: | |||||
Total ending allowance balance | (17) | ||||
Consumer | |||||
Allowance for credit losses | |||||
Beginning balance | 476 | 322 | 298 | 261 | |
Provision for credit / loan losses | (93) | 61 | 110 | 461 | |
Charge-offs | (70) | (36) | (449) | ||
Recoveries | 23 | 1 | 163 | 41 | |
Ending balance | 406 | 314 | 406 | 314 | |
Allowance for credit losses: | |||||
collectively evaluated for impairment | 298 | ||||
collectively evaluated for impairment | 406 | 406 | |||
Total ending allowance balance | 406 | $ 314 | 406 | $ 314 | 298 |
Loans: | |||||
individually evaluated for impairment | 104 | ||||
individually evaluated for impairment | 97 | 97 | |||
collectively evaluated for impairment | 16,195 | ||||
Collectively evaluated for impairment | 27,628 | 27,628 | |||
Total ending loans balance | 16,299 | ||||
Total ending loans balance | $ 27,725 | 27,725 | |||
Consumer | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||||
Allowance for credit losses | |||||
Beginning balance | $ (129) | ||||
Allowance for credit losses: | |||||
Total ending allowance balance | $ (129) |
Loans - Loans individually eval
Loans - Loans individually evaluated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Unpaid Principal Balance | |||||
With no related allowance recorded | $ 19,205 | ||||
With no related allowance recorded | $ 19,169 | $ 19,169 | |||
With an allowance recorded | 7,413 | 7,413 | |||
Unpaid Principal Balance, Total | 6,780 | ||||
Recorded Investment | |||||
With no related allowance recorded | 18,621 | ||||
With no related allowance recorded | 18,717 | 18,717 | |||
With an allowance recorded | 6,997 | 6,997 | |||
Recorded Investment, Total | 6,747 | ||||
Allowance for loan losses allocated, with no allowance recorded | 1,593 | 1,593 | |||
Allowance for loan losses allocated, with allowance recorded | 1,033 | ||||
Average Recorded Investment | |||||
With no related allowance recorded | $ 19,414 | $ 19,110 | |||
With no related allowance recorded | 19,157 | 19,404 | |||
With an allowance recorded | 20,966 | 11,666 | |||
With an allowance recorded | 7,074 | 7,319 | |||
Cash Basis Interest Recognized | |||||
With no related allowance recorded | 164 | 494 | |||
with no related allowance recorded | 156 | 471 | |||
With an allowance recorded | 83 | 251 | |||
With an allowance recorded | 78 | 238 | |||
Commercial and industrial. | |||||
Unpaid Principal Balance | |||||
With an allowance recorded | 1,011 | ||||
Recorded Investment | |||||
With an allowance recorded | 1,003 | ||||
Allowance for loan losses allocated, with allowance recorded | 653 | ||||
Commercial and industrial. | Commercial and industrial | |||||
Unpaid Principal Balance | |||||
With an allowance recorded | 1,916 | 1,916 | |||
Recorded Investment | |||||
With an allowance recorded | 1,538 | 1,538 | |||
Allowance for loan losses allocated, with allowance recorded | 1,282 | 1,282 | |||
Average Recorded Investment | |||||
With an allowance recorded | 18,599 | 9,264 | |||
With an allowance recorded | 6,771 | 7,011 | |||
Cash Basis Interest Recognized | |||||
With an allowance recorded | 157 | ||||
With an allowance recorded | 52 | ||||
With an allowance recorded | 78 | 238 | |||
Commercial real estate. | |||||
Unpaid Principal Balance | |||||
With an allowance recorded | 5,665 | ||||
Recorded Investment | |||||
With an allowance recorded | 5,640 | ||||
Allowance for loan losses allocated, with allowance recorded | 380 | ||||
Commercial real estate. | Commercial real estate | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 17,884 | ||||
With no related allowance recorded | 17,764 | 17,764 | |||
With an allowance recorded | 5,497 | 5,497 | |||
Recorded Investment | |||||
With no related allowance recorded | 17,316 | ||||
With no related allowance recorded | 17,331 | 17,331 | |||
With an allowance recorded | 5,459 | 5,459 | |||
Allowance for loan losses allocated, with allowance recorded | 311 | 311 | |||
Average Recorded Investment | |||||
With no related allowance recorded | 17,553 | 17,549 | |||
With no related allowance recorded | 17,767 | 18,007 | |||
With an allowance recorded | 2,259 | 2,292 | |||
With an allowance recorded | 303 | 308 | |||
Cash Basis Interest Recognized | |||||
With no related allowance recorded | 158 | 476 | |||
with no related allowance recorded | 154 | 465 | |||
With an allowance recorded | 30 | 90 | |||
Commercial real estate. | Commercial real estate construction | |||||
Average Recorded Investment | |||||
With no related allowance recorded | 578 | 578 | |||
With no related allowance recorded | 578 | 578 | |||
Residential real estate. | Residential real estate | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 1,266 | ||||
With no related allowance recorded | 1,257 | 1,257 | |||
Recorded Investment | |||||
With no related allowance recorded | 1,254 | ||||
With no related allowance recorded | 1,244 | 1,244 | |||
Average Recorded Investment | |||||
With no related allowance recorded | 1,283 | 983 | |||
With no related allowance recorded | 714 | 719 | |||
Cash Basis Interest Recognized | |||||
With no related allowance recorded | 6 | 18 | |||
with no related allowance recorded | 1 | 2 | |||
Residential real estate. | Home equity | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 55 | ||||
With no related allowance recorded | 51 | 51 | |||
Recorded Investment | |||||
With no related allowance recorded | 51 | ||||
With no related allowance recorded | 45 | 45 | |||
Consumer | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 97 | 97 | |||
With an allowance recorded | 104 | ||||
Recorded Investment | |||||
With no related allowance recorded | 97 | 97 | |||
With an allowance recorded | $ 104 | ||||
Average Recorded Investment | |||||
With no related allowance recorded | 98 | 100 | |||
With an allowance recorded | 108 | 110 | |||
Cash Basis Interest Recognized | |||||
with no related allowance recorded | $ 1 | $ 4 | |||
With an allowance recorded | $ 1 | $ 4 |
Loans - Recorded investment in
Loans - Recorded investment in non-accrual and loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans | ||
Non-accrual | $ 6,124 | |
Non-accrual | $ 6,895 | |
Loans Past Due Over 90 Days Non-accrual Still Accruing | 2,327 | |
Loans Past Due Over 90 Days Non-accrual Still Accruing | 2,611 | |
ACL relating to non-accrual balances | 1,400 | |
Non-accrual loans with no ACL associated to them | 5,100 | |
Commercial and industrial. | Commercial and industrial | ||
Loans | ||
Non-accrual | 1,003 | |
Non-accrual | 1,538 | |
Loans Past Due Over 90 Days Non-accrual Still Accruing | 1,850 | |
Loans Past Due Over 90 Days Non-accrual Still Accruing | 200 | |
Commercial real estate. | Commercial real estate | ||
Loans | ||
Non-accrual | 3,882 | |
Non-accrual | 4,130 | |
Loans Past Due Over 90 Days Non-accrual Still Accruing | 895 | |
Commercial real estate. | Commercial real estate construction | ||
Loans | ||
Loans Past Due Over 90 Days Non-accrual Still Accruing | 1,513 | |
Residential real estate. | Residential real estate | ||
Loans | ||
Non-accrual | 1,188 | |
Non-accrual | 1,182 | |
Residential real estate. | Home equity | ||
Loans | ||
Non-accrual | 51 | |
Non-accrual | 45 | |
Consumer | ||
Loans | ||
Loans Past Due Over 90 Days Non-accrual Still Accruing | $ 477 | |
Loans Past Due Over 90 Days Non-accrual Still Accruing | $ 3 |
Loans - Aging of the recorded i
Loans - Aging of the recorded investment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | $ 1,707,729 | $ 1,569,430 |
30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 280 | 2,646 |
60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 3,459 | 2,217 |
Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 5,170 | 5,470 |
Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 8,909 | 10,333 |
Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 1,698,820 | 1,559,097 |
Commercial and industrial. | Commercial and industrial | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 266,997 | |
Commercial and industrial. | Commercial and industrial | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 1,497 | |
Commercial and industrial. | Commercial and industrial | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 389 | 1,583 |
Commercial and industrial. | Commercial and industrial | Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 1,291 | 2,854 |
Commercial and industrial. | Commercial and industrial | Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 1,680 | 5,934 |
Commercial and industrial. | Commercial and industrial | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 265,317 | 252,967 |
Commercial real estate. | Commercial real estate | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 1,225,936 | |
Commercial real estate. | Commercial real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 278 | 563 |
Commercial real estate. | Commercial real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 3,055 | |
Commercial real estate. | Commercial real estate | Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 1,196 | 952 |
Commercial real estate. | Commercial real estate | Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 4,529 | 1,515 |
Commercial real estate. | Commercial real estate | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 1,221,407 | 1,096,539 |
Commercial real estate. | Commercial real estate construction | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 91,822 | |
Commercial real estate. | Commercial real estate construction | Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 1,513 | |
Commercial real estate. | Commercial real estate construction | Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 1,513 | |
Commercial real estate. | Commercial real estate construction | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 90,309 | 109,570 |
Residential real estate. | Residential real estate | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 83,165 | |
Residential real estate. | Residential real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 2 | |
Residential real estate. | Residential real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 15 | |
Residential real estate. | Residential real estate | Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 1,167 | 1,188 |
Residential real estate. | Residential real estate | Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 1,182 | 1,190 |
Residential real estate. | Residential real estate | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 81,983 | 73,087 |
Residential real estate. | Home equity | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 12,084 | |
Residential real estate. | Home equity | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 12,084 | 12,329 |
Consumer | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 27,725 | |
Consumer | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 2 | 584 |
Consumer | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 634 | |
Consumer | Greater Than 90 Days | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 3 | 476 |
Consumer | Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | 5 | 1,694 |
Consumer | Not Past Due | ||
Financing Receivable, Recorded Investments, Aging [Abstract] | ||
Total loans | $ 27,720 | $ 14,605 |
Loans - Troubled debt restructu
Loans - Troubled debt restructurings (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans | ||
Loans in process of foreclosure | $ 2,962 | $ 2,016 |
Residential real estate. | Residential real estate | ||
Loans | ||
Loans in process of foreclosure | $ 1,167 | $ 578 |
Loans - Risk category of loans
Loans - Risk category of loans by class of loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans | ||
Total loans | $ 1,707,729 | $ 1,569,430 |
Loans | 1,569,430 | |
Pass | ||
Loans | ||
Loans | 1,543,023 | |
Special Mention | ||
Loans | ||
Loans | 7,974 | |
Substandard | ||
Loans | ||
Loans | 18,433 | |
Commercial and industrial. | Commercial and industrial | ||
Loans | ||
Total loans | 266,997 | |
Loans | 258,901 | |
Commercial and industrial. | Commercial and industrial | Pass | ||
Loans | ||
Total loans | 264,854 | |
Loans | 256,939 | |
Commercial and industrial. | Commercial and industrial | Special Mention | ||
Loans | ||
Total loans | 308 | |
Loans | 575 | |
Commercial and industrial. | Commercial and industrial | Substandard | ||
Loans | ||
Total loans | 1,835 | |
Loans | 1,387 | |
Commercial real estate. | Commercial real estate | ||
Loans | ||
Total loans | 1,225,936 | |
Loans | 1,098,054 | |
Commercial real estate. | Commercial real estate | Pass | ||
Loans | ||
Total loans | 1,203,037 | |
Loans | 1,074,952 | |
Commercial real estate. | Commercial real estate | Special Mention | ||
Loans | ||
Total loans | 7,339 | |
Loans | 7,399 | |
Commercial real estate. | Commercial real estate | Substandard | ||
Loans | ||
Total loans | 15,560 | |
Loans | 15,703 | |
Commercial real estate. | Commercial real estate construction | ||
Loans | ||
Total loans | 91,822 | |
Loans | 109,570 | |
Commercial real estate. | Commercial real estate construction | Pass | ||
Loans | ||
Total loans | 91,822 | |
Loans | 109,570 | |
Residential real estate. | Residential real estate | ||
Loans | ||
Total loans | 83,165 | |
Loans | 74,277 | |
Residential real estate. | Residential real estate | Pass | ||
Loans | ||
Total loans | 81,983 | |
Loans | 73,089 | |
Residential real estate. | Residential real estate | Substandard | ||
Loans | ||
Total loans | 1,182 | |
Loans | 1,188 | |
Residential real estate. | Home equity | ||
Loans | ||
Total loans | 12,084 | |
Loans | 12,329 | |
Residential real estate. | Home equity | Pass | ||
Loans | ||
Total loans | 12,039 | |
Loans | 12,278 | |
Residential real estate. | Home equity | Substandard | ||
Loans | ||
Total loans | 45 | |
Loans | 51 | |
Consumer | ||
Loans | ||
Total loans | 27,725 | |
Loans | 16,299 | |
Consumer | Pass | ||
Loans | ||
Total loans | 27,628 | |
Loans | 16,195 | |
Consumer | Substandard | ||
Loans | ||
Total loans | $ 97 | |
Loans | $ 104 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans | ||
Loans | $ 1,569,430 | |
Loans | $ 1,707,729 | 1,569,430 |
Threshold limit for individual evaluation of credit risk | 350 | |
Directors and principal officers of the Company, including their immediate families | ||
Loans | ||
Loans | $ 16,891 | |
Loans | $ 16,854 |
Loans - Loans by year of origin
Loans - Loans by year of origination and internally assigned credit risk (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | $ 240,286 | |
2022 | 438,039 | |
2021 | 357,270 | |
2020 | 238,947 | |
2019 | 132,798 | |
Prior | 279,520 | |
Revolving Loans | 19,133 | |
Revolving Loans to term Loans | 1,736 | |
Total ending loans balance | 1,707,729 | $ 1,569,430 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 22 | |
2021 | 11 | |
2020 | 360 | |
2019 | 25 | |
Prior | 28 | |
Total | 446 | |
Commercial and industrial. | Commercial and industrial | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 40,026 | |
2022 | 62,917 | |
2021 | 54,155 | |
2020 | 48,095 | |
2019 | 26,946 | |
Prior | 34,858 | |
Total ending loans balance | 266,997 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 22 | |
2020 | 360 | |
Prior | 28 | |
Total | 410 | |
Commercial and industrial. | Commercial and industrial | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 40,026 | |
2022 | 62,445 | |
2021 | 54,155 | |
2020 | 47,945 | |
2019 | 26,500 | |
Prior | 33,783 | |
Total ending loans balance | 264,854 | |
Commercial and industrial. | Commercial and industrial | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2022 | 87 | |
Prior | 221 | |
Total ending loans balance | 308 | |
Commercial and industrial. | Commercial and industrial | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2022 | 385 | |
2020 | 150 | |
2019 | 446 | |
Prior | 854 | |
Total ending loans balance | 1,835 | |
Commercial real estate. | Commercial real estate | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 156,570 | |
2022 | 332,272 | |
2021 | 238,988 | |
2020 | 168,130 | |
2019 | 100,598 | |
Prior | 225,458 | |
Revolving Loans | 3,920 | |
Total ending loans balance | 1,225,936 | |
Commercial real estate. | Commercial real estate | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 156,570 | |
2022 | 331,938 | |
2021 | 238,553 | |
2020 | 165,685 | |
2019 | 94,391 | |
Prior | 211,980 | |
Revolving Loans | 3,920 | |
Total ending loans balance | 1,203,037 | |
Commercial real estate. | Commercial real estate | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2021 | 435 | |
Prior | 6,904 | |
Total ending loans balance | 7,339 | |
Commercial real estate. | Commercial real estate | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2022 | 334 | |
2020 | 2,445 | |
2019 | 6,207 | |
Prior | 6,574 | |
Total ending loans balance | 15,560 | |
Commercial real estate. | Commercial real estate construction | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 5,905 | |
2022 | 22,559 | |
2021 | 52,028 | |
2020 | 11,330 | |
Total ending loans balance | 91,822 | |
Commercial real estate. | Commercial real estate construction | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 5,905 | |
2022 | 22,559 | |
2021 | 52,028 | |
2020 | 11,330 | |
Total ending loans balance | 91,822 | |
Residential real estate. | Residential real estate | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 17,188 | |
2022 | 20,211 | |
2021 | 12,083 | |
2020 | 9,486 | |
2019 | 5,154 | |
Prior | 19,043 | |
Total ending loans balance | 83,165 | |
Residential real estate. | Residential real estate | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 17,188 | |
2022 | 20,211 | |
2021 | 12,083 | |
2020 | 9,486 | |
2019 | 4,565 | |
Prior | 18,450 | |
Total ending loans balance | 81,983 | |
Residential real estate. | Residential real estate | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2019 | 589 | |
Prior | 593 | |
Total ending loans balance | 1,182 | |
Residential real estate. | Home equity | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 338 | |
2022 | 70 | |
2021 | 16 | |
2019 | 71 | |
Revolving Loans | 9,853 | |
Revolving Loans to term Loans | 1,736 | |
Total ending loans balance | 12,084 | |
Residential real estate. | Home equity | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 338 | |
2022 | 70 | |
2021 | 16 | |
2019 | 71 | |
Revolving Loans | 9,853 | |
Revolving Loans to term Loans | 1,691 | |
Total ending loans balance | 12,039 | |
Residential real estate. | Home equity | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Revolving Loans to term Loans | 45 | |
Total ending loans balance | 45 | |
Consumer | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 20,259 | |
2022 | 10 | |
2020 | 1,906 | |
2019 | 29 | |
Prior | 161 | |
Revolving Loans | 5,360 | |
Total ending loans balance | 27,725 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2021 | 11 | |
2019 | 25 | |
Total | 36 | |
Consumer | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 20,259 | |
2022 | 10 | |
2020 | 1,906 | |
2019 | 29 | |
Prior | 64 | |
Revolving Loans | 5,360 | |
Total ending loans balance | 27,628 | |
Consumer | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Prior | 97 | |
Total ending loans balance | $ 97 |
Fair Value - Assets and liabili
Fair Value - Assets and liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value | ||
Transfer of assets, Level 1 to level 2 | $ 0 | $ 0 |
Recurring | ||
Fair Value | ||
Total securities available for sale | 478,708 | 533,461 |
Recurring | U.S. government agencies and treasuries | ||
Fair Value | ||
Total securities available for sale | 85,723 | 93,750 |
Recurring | Mortgage-backed securities | ||
Fair Value | ||
Total securities available for sale | 287,419 | 316,915 |
Recurring | Corporate Bonds | ||
Fair Value | ||
Total securities available for sale | 19,536 | 25,658 |
Recurring | Obligations of states and political subdivisions | ||
Fair Value | ||
Total securities available for sale | 86,030 | 97,138 |
Recurring | Level 2 | ||
Fair Value | ||
Total securities available for sale | 478,708 | 533,461 |
Recurring | Level 2 | U.S. government agencies and treasuries | ||
Fair Value | ||
Total securities available for sale | 85,723 | 93,750 |
Recurring | Level 2 | Mortgage-backed securities | ||
Fair Value | ||
Total securities available for sale | 287,419 | 316,915 |
Recurring | Level 2 | Corporate Bonds | ||
Fair Value | ||
Total securities available for sale | 19,536 | 25,658 |
Recurring | Level 2 | Obligations of states and political subdivisions | ||
Fair Value | ||
Total securities available for sale | $ 86,030 | $ 97,138 |
Fair Value - Non-recurring (Det
Fair Value - Non-recurring (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value | ||
Reserves allocated to impaired loans | $ 1,033 | |
Commercial real estate. | Commercial real estate | ||
Fair Value | ||
Reserves allocated to impaired loans | 380 | |
Nonrecurring | ||
Fair Value | ||
Impaired loans | 204 | |
Nonrecurring | Commercial real estate. | Commercial real estate | ||
Fair Value | ||
Individually evaluated loans | $ 200 | |
Level 3 | Nonrecurring | ||
Fair Value | ||
Impaired loans | 204 | |
Reserves allocated to impaired loans | 100 | $ 112 |
Level 3 | Nonrecurring | Commercial real estate. | Commercial real estate | ||
Fair Value | ||
Individually evaluated loans | $ 200 |
Fair Value - Level 3 (Details)
Fair Value - Level 3 (Details) - Nonrecurring $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value | ||
Impaired loans | $ 204 | |
Commercial real estate. | Commercial real estate | ||
Fair Value | ||
Evaluated Fair Value Disclosure | $ 200 | |
Level 3 | ||
Fair Value | ||
Impaired loans | 204 | |
Level 3 | Commercial real estate. | Appraisal of collateral | Appraisal and liquidation adjustment | ||
Fair Value | ||
Impaired loans | $ 204 | |
Level 3 | Commercial real estate. | Commercial real estate | ||
Fair Value | ||
Evaluated Fair Value Disclosure | 200 | |
Level 3 | Commercial real estate. | Commercial real estate | Appraisal of collateral | Appraisal and liquidation adjustment | ||
Fair Value | ||
Evaluated Fair Value Disclosure | $ 200 | |
Impaired loans, Measurement input | 0.20 | |
Individually Evaluated Loans, Measurement input | 0.20 | |
Level 3 | Commercial real estate. | Commercial real estate | Appraisal of collateral | Appraisal and liquidation adjustment | Weighted average | ||
Fair Value | ||
Impaired loans, Measurement input | 0.20 | |
Individually Evaluated Loans, Measurement input | 0.20 |
Fair Value - Carrying amounts a
Fair Value - Carrying amounts and estimated fair values (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | $ 158,708 | $ 86,081 |
Loans, net | 1,681,954 | 1,547,598 |
Accrued interest receivable | 6,332 | 6,320 |
Restricted investment in bank stocks | 10,992 | 9,562 |
Financial liabilities: | ||
Deposits | 2,105,031 | 1,974,387 |
FHLB advances, short term | 146,000 | 131,500 |
FHLB advances, long term | 10,000 | |
Subordinated notes, net of issuance costs | 19,502 | 19,447 |
Accrued interest payable | 642 | 267 |
Fair Value. | ||
Financial assets: | ||
Cash and due from banks | 158,708 | 86,081 |
Loans, net | 1,598,599 | 1,503,543 |
Accrued interest receivable | 6,332 | 6,320 |
Financial liabilities: | ||
Deposits | 2,103,675 | 1,972,387 |
FHLB advances, short term | 145,663 | 131,255 |
FHLB advances, long term | 9,641 | |
Subordinated notes, net of issuance costs | 23,560 | 19,682 |
Accrued interest payable | 642 | 267 |
Fair Value. | Level 1 | ||
Financial assets: | ||
Cash and due from banks | 158,708 | 86,081 |
Financial liabilities: | ||
Deposits | 1,923,672 | 1,881,354 |
Fair Value. | Level 2 | ||
Financial assets: | ||
Accrued interest receivable | 2,686 | 2,448 |
Financial liabilities: | ||
Deposits | 180,003 | 91,033 |
FHLB advances, short term | 145,663 | 131,255 |
FHLB advances, long term | 9,641 | |
Subordinated notes, net of issuance costs | 23,560 | 19,682 |
Accrued interest payable | 642 | 267 |
Fair Value. | Level 3 | ||
Financial assets: | ||
Loans, net | 1,598,599 | 1,503,543 |
Accrued interest receivable | $ 3,646 | $ 3,872 |
Deposits - Analysis of deposits
Deposits - Analysis of deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits | ||
Non-interest bearing demand accounts | $ 726,627 | $ 723,228 |
Interest-bearing demand accounts | 339,444 | 284,747 |
Money market accounts | 627,467 | 615,149 |
Savings accounts | 229,916 | 258,230 |
Certificates of Deposit | 181,577 | 93,033 |
Total deposits | 2,105,031 | 1,974,387 |
Time deposits exceeding FDIC insurance limit of $250 | 12,300 | 17,000 |
Uninsured deposits, net of collateralized | $ 788,000 | $ 871,000 |
Deposits - Scheduled maturities
Deposits - Scheduled maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits | ||
2023 | $ 143,216 | |
2024 | 27,960 | |
2025 | 8,898 | |
2026 | 1,503 | |
Total | 181,577 | |
Deposits of executive officers, directors and principal officers | $ 7,800 | $ 15,600 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pension Plan and Stock Compensation | ||||
Interest cost | $ 279 | $ 202 | $ 837 | $ 606 |
Expected return on plan assets | (411) | (496) | (1,233) | (1,489) |
Amortization of transition cost | (7) | (21) | ||
Amortization of net loss | 70 | 210 | ||
Net periodic benefit cost/(income) | $ (62) | $ (301) | $ (186) | $ (904) |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pension Plan and Stock Compensation | |||||
Stock-based compensation costs | $ 755 | $ 482 | |||
Restricted stock expense | 45 | 133 | |||
Restricted Stock Awards | |||||
Pension Plan and Stock Compensation | |||||
Restricted stock expense | $ 9 | $ 33 | $ 45 | $ 133 | |
Granted | 0 | 0 | 0 | 0 | |
Vesting percentage | 33% | ||||
Unamortized expense | $ 13 | $ 13 | |||
Shares | |||||
Non-vested at beginning of period (in shares) | 11,677 | ||||
Vested (in shares) | (7,569) | ||||
Forfeited (in shares) | (580) | ||||
Non-vested at end of period (in shares) | 3,528 | 3,528 | |||
Weighted Average Fair Value | |||||
Non-vested at beginning of period (in dollars per share) | $ 29.24 | ||||
Vested (in dollars per share) | 29.50 | ||||
Forfeited (in dollars per share) | 28.75 | ||||
Non-vested at end of period (in dollars per share) | $ 28.75 | $ 28.75 | |||
Restricted Stock Units (RSUs) | |||||
Shares | |||||
Non-vested at beginning of period (in shares) | 59,747 | ||||
Granted (in shares) | 48,004 | 35,628 | |||
Vested (in shares) | (16,562) | ||||
Forfeited (in shares) | (4,967) | ||||
Non-vested at end of period (in shares) | 73,846 | 73,846 |
Pension Plan and Stock Compen_5
Pension Plan and Stock Compensation - Restricted Stock Units (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 22, 2021 | Sep. 30, 2023 | Dec. 31, 2021 | |
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 | 35,628 | |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 148,171 | $ 145,723 | $ 138,138 | $ 182,836 |
Credit loss expense | 5,000 | |||
Net current period other comprehensive income/(loss) | (12,234) | (16,554) | (10,497) | (58,872) |
Ending balance | 143,918 | 136,190 | 143,918 | 136,190 |
Unrealized Gains and Losses on Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (59,477) | (43,780) | (60,430) | (1,072) |
Other comprehensive income/(loss) before reclassification, net | (12,626) | (16,749) | (16,586) | (59,457) |
Credit loss expense | 5,000 | |||
Less amounts reclassified from accumulated other comprehensive income | (87) | |||
Net current period other comprehensive income/(loss) | (12,626) | (16,749) | (11,673) | (59,457) |
Ending balance | (72,103) | (60,529) | (72,103) | (60,529) |
Defined Benefit Pension Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (7,099) | (2,110) | (7,889) | (2,506) |
Other comprehensive income/(loss) before reclassification, net | 395 | 206 | 1,185 | 618 |
Less amounts reclassified from accumulated other comprehensive income | 8 | 24 | ||
Net current period other comprehensive income/(loss) | 395 | 198 | 1,185 | 594 |
Ending balance | (6,704) | (1,912) | (6,704) | (1,912) |
Deferred Compensation Liability | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 117 | 129 | 123 | 135 |
Other comprehensive income/(loss) before reclassification, net | (3) | (3) | (9) | (9) |
Net current period other comprehensive income/(loss) | (3) | (3) | (9) | (9) |
Ending balance | 114 | 126 | 114 | 126 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (66,459) | (45,761) | (68,196) | (3,443) |
Other comprehensive income/(loss) before reclassification, net | (12,234) | (16,546) | (15,410) | (58,848) |
Credit loss expense | 5,000 | |||
Less amounts reclassified from accumulated other comprehensive income | 8 | (87) | 24 | |
Net current period other comprehensive income/(loss) | (12,234) | (16,554) | (10,497) | (58,872) |
Ending balance | $ (78,693) | $ (62,315) | $ (78,693) | $ (62,315) |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Investment securities gains, net | $ 107 | |||
Employee benefits transition asset | $ 1,084 | $ 808 | 3,644 | $ 2,322 |
Employee benefits actuarial gains | 168 | 250 | 730 | 741 |
Total before tax | 11,294 | 9,709 | 26,447 | 18,753 |
Provision for income taxes | 2,256 | 1,856 | 5,093 | 3,460 |
Net of tax | $ 9,038 | 7,853 | 21,354 | 15,293 |
Reclassifications out of accumulated other comprehensive income (loss) | Unrealized gains and losses on available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Investment securities gains, net | 107 | |||
Total before tax | 107 | |||
Provision for income taxes | 20 | |||
Net of tax | 87 | |||
Reclassifications out of accumulated other comprehensive income (loss) | Amortization of defined benefit pension items | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Employee benefits transition asset | (7) | (21) | ||
Total before tax | (7) | (21) | ||
Provision for income taxes | 1 | 3 | ||
Net of tax | (8) | (24) | ||
Reclassifications out of accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Net of tax | $ (8) | $ 87 | $ (24) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Noninterest Income | ||||
Service charges on deposit accounts | $ 210 | $ 182 | $ 588 | $ 511 |
Overdraft fees | 106 | 93 | 294 | 239 |
Other | 104 | 89 | 294 | 272 |
Trust income | 1,266 | 1,176 | 3,707 | 3,569 |
Investment advisory income | 1,333 | 1,085 | 3,819 | 3,385 |
Investment securities gains (losses) | 107 | |||
Earnings on bank owned life insurance | 243 | 240 | 725 | 709 |
Other | 168 | 250 | 730 | 741 |
TOTAL NONINTEREST INCOME | 3,220 | 2,933 | 9,676 | 8,915 |
Other noninterest income within the scope of ASC 606 | 245 | 231 | 711 | 644 |
Other noninterest income outside the scope of ASC 606 | $ (77) | $ 19 | $ 19 | $ 97 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Information | |||||
Net interest income | $ 22,501 | $ 21,415 | $ 66,242 | $ 55,263 | |
Noninterest income | 3,220 | 2,933 | 9,676 | 8,915 | |
Provision for credit loss - investments | (5,000) | ||||
Provision for credit losses | (837) | (2,084) | (2,406) | (8,517) | |
Provision for loan loss | (807) | (2,084) | (2,554) | (8,517) | |
Noninterest expenses | (13,590) | (12,555) | (42,065) | (36,908) | |
Income tax expense | (2,256) | (1,856) | (5,093) | (3,460) | |
NET INCOME | 9,038 | 7,853 | 21,354 | 15,293 | |
Total assets | 2,447,271 | 2,368,370 | 2,447,271 | 2,368,370 | $ 2,287,334 |
Banking | |||||
Segment Information | |||||
Net interest income | 22,501 | 21,415 | 66,242 | 55,263 | |
Noninterest income | 621 | 672 | 2,150 | 1,961 | |
Provision for credit loss - investments | (5,000) | ||||
Provision for credit losses | (837) | (2,406) | |||
Provision for loan loss | (2,084) | (8,517) | |||
Noninterest expenses | (11,777) | (10,893) | (36,266) | (31,532) | |
Income tax expense | (2,090) | (1,730) | (4,730) | (3,129) | |
NET INCOME | 8,418 | 7,380 | 19,990 | 14,046 | |
Total assets | 2,438,565 | 2,360,897 | 2,438,565 | 2,360,897 | |
Wealth Management | |||||
Segment Information | |||||
Noninterest income | 2,599 | 2,261 | 7,526 | 6,954 | |
Noninterest expenses | (1,813) | (1,662) | (5,799) | (5,376) | |
Income tax expense | (166) | (126) | (363) | (331) | |
NET INCOME | 620 | 473 | 1,364 | 1,247 | |
Total assets | $ 8,706 | $ 7,473 | $ 8,706 | $ 7,473 |
Regulatory Capital Matters (Det
Regulatory Capital Matters (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Regulatory Capital Matters | ||
Capital conservation buffer ratio | 0.025 | |
Total capital to risk weighted assets | ||
Total capital to risk weighted assets, Actual amount | $ 255,225 | $ 235,346 |
Total capital to risk weighted assets, Actual ratio | 0.1393 | 0.1395 |
Total capital to risk weighted assets, For Capital Adequacy Purposes | $ 146,582 | $ 134,986 |
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 | $ 180,937 | $ 166,624 |
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 | $ 183,227 | $ 168,733 |
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 | $ 232,298 | $ 214,243 |
Tier 1 (Core) capital to risk weighted assets, Actual ratio | 0.1268 | 0.1270 |
Tier 1 (Core) capital to risk weighted assets, For Capital Adequacy Purposes | $ 109,936 | $ 101,240 |
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 | $ 144,292 | $ 132,877 |
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 | $ 146,582 | $ 134,986 |
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 | $ 232,298 | $ 214,243 |
Common Tier 1 (CET1) to risk weighted assets, Actual ratio | 0.1268 | 0.1270 |
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes | $ 82,452 | $ 75,930 |
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 | $ 116,807 | $ 107,567 |
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 | $ 119,098 | $ 109,677 |
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 | $ 232,298 | $ 214,243 |
Tier 1 (Core) Capital to average assets, Actual ratio | 0.0926 | 0.0909 |
Tier 1 (Core) Capital to average assets, For Capital Adequacy Purposes | $ 100,358 | $ 94,250 |
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 | $ 125,447 | $ 117,813 |
Tier 1 (Core) Capital to average assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 0.0500 | 0.0500 |