Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-11204 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | AMERISERV FINANCIAL INC /PA/ | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 25-1424278 | |
Entity Address, Address Line One | Main & Franklin Streets | |
Entity Address, Address Line Two | P.O. Box 430 | |
Entity Address, City or Town | Johnstown | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15907-0430 | |
City Area Code | (814) | |
Local Phone Number | 533-5300 | |
Entity Central Index Key | 0000707605 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,081,500 | |
Trading Symbol | ASRV | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from depository institutions | $ 25,897,000 | $ 20,427,000 |
Interest bearing deposits | 4,285,000 | 2,585,000 |
Short-term investments | 5,795,000 | 8,492,000 |
Cash and cash equivalents | 35,977,000 | 31,504,000 |
Investment securities: | ||
Available for sale, at fair value | 160,353,000 | 144,165,000 |
Held to maturity (fair value $56,070 on September 30, 2021 and $47,106 on December 31, 2020) | 53,942,000 | 44,222,000 |
Loans held for sale | 6,250,000 | |
Loans | 997,091,000 | 973,297,000 |
Less: Unearned income | 1,062,000 | 1,202,000 |
Less: Allowance for loan losses | 12,124,000 | 11,345,000 |
Net loans | 983,905,000 | 960,750,000 |
Premises and equipment: | ||
Operating lease right-of-use asset | 690,000 | 758,000 |
Financing lease right-of-use asset | 2,752,000 | 2,956,000 |
Other premises and equipment, net | 14,092,000 | 14,336,000 |
Accrued interest income receivable | 4,920,000 | 5,068,000 |
Goodwill | 13,611,000 | 11,944,000 |
Core deposit intangible | 166,000 | |
Bank owned life insurance | 39,161,000 | 39,033,000 |
Net deferred tax asset | 346,000 | 1,572,000 |
Federal Home Loan Bank stock | 3,224,000 | 4,821,000 |
Federal Reserve Bank stock | 2,125,000 | 2,125,000 |
Other assets | 23,622,000 | 10,209,000 |
TOTAL ASSETS | 1,338,886,000 | 1,279,713,000 |
LIABILITIES | ||
Non-interest bearing deposits | 216,253,000 | 177,533,000 |
Interest bearing deposits | 928,138,000 | 877,387,000 |
Total deposits | 1,144,391,000 | 1,054,920,000 |
Short-term borrowings | 0 | 24,702,000 |
Advances from Federal Home Loan Bank | 43,653,000 | 64,989,000 |
Operating lease liabilities | 705,000 | 776,000 |
Financing lease liabilities | 2,953,000 | 3,109,000 |
Guaranteed junior subordinated deferrable interest debentures | 12,970,000 | |
Subordinated debt | 26,600,000 | 7,534,000 |
Total borrowed funds | 73,911,000 | 114,080,000 |
Other liabilities | 6,848,000 | 6,314,000 |
TOTAL LIABILITIES | 1,225,150,000 | 1,175,314,000 |
SHAREHOLDERS' EQUITY | ||
Common stock, par value $0.01 per share; 30,000,000 shares authorized; 26,703,819 shares issued and 17,075,000 shares outstanding on September 30, 2021; 26,688,963 shares issued and 17,060,144 shares outstanding on December 31, 2020 | 267,000 | 267,000 |
Treasury stock at cost, 9,628,819 shares on September 30, 2021 and December 31, 2020 | (83,280,000) | (83,280,000) |
Capital surplus | 146,038,000 | 145,969,000 |
Retained earnings | 58,581,000 | 54,641,000 |
Accumulated other comprehensive loss, net | (7,870,000) | (13,198,000) |
TOTAL SHAREHOLDERS' EQUITY | 113,736,000 | 104,399,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,338,886,000 | $ 1,279,713,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Held to maturity securities, fair value | $ 56,070 | $ 47,106 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 26,703,819 | 26,688,963 |
Common stock, shares outstanding | 17,075,000 | 17,060,144 |
Treasury stock, shares | 9,628,819 | 9,628,819 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 9,830 | $ 9,724 | $ 30,440 | $ 30,504 |
Interest bearing deposits | 2 | 4 | 6 | 11 |
Short-term investments | 26 | 51 | 41 | 219 |
Investment securities: | ||||
Available for sale | 1,133 | 1,122 | 3,392 | 3,464 |
Held to maturity | 381 | 336 | 1,100 | 1,044 |
Total Interest Income | 11,372 | 11,237 | 34,979 | 35,242 |
INTEREST EXPENSE | ||||
Deposits | 1,189 | 1,727 | 3,897 | 6,054 |
Short-term borrowings | 1 | 1 | 17 | |
Advances from Federal Home Loan Bank | 217 | 280 | 681 | 840 |
Financing lease liabilities | 26 | 28 | 80 | 85 |
Guaranteed junior subordinated deferrable interest debentures | 383 | 280 | 944 | 841 |
Subordinated debt | 331 | 130 | 591 | 390 |
Total Interest Expense | 2,146 | 2,446 | 6,194 | 8,227 |
Net Interest Income | 9,226 | 8,791 | 28,785 | 27,015 |
Provision for loan losses | 350 | 675 | 850 | 1,300 |
Net Interest Income after Provision for Loan Losses | 8,876 | 8,116 | 27,935 | 25,715 |
NON-INTEREST INCOME | ||||
Non-interest income | 3,945 | 3,295 | 11,226 | 9,568 |
Net gains on loans held for sale | 15 | 507 | 632 | 1,079 |
Mortgage related fees | 81 | 161 | 310 | 432 |
Net realized gains on investment securities | 84 | |||
Bank owned life insurance | 221 | 161 | 771 | 438 |
Other income | 702 | 665 | 1,916 | 1,657 |
Total Non-Interest Income | 4,416 | 4,304 | 13,429 | 11,903 |
NON-INTEREST EXPENSE | ||||
Salaries and employee benefits | 6,910 | 6,838 | 20,718 | 20,161 |
Net occupancy expense | 651 | 608 | 1,980 | 1,885 |
Equipment expense | 390 | 374 | 1,183 | 1,158 |
Professional fees | 1,379 | 1,373 | 4,089 | 3,858 |
Supplies, postage and freight | 158 | 150 | 486 | 551 |
Miscellaneous taxes and insurance | 318 | 291 | 922 | 855 |
Federal deposit insurance expense | 170 | 140 | 480 | 296 |
Branch acquisition costs | 87 | 390 | ||
Other expense | 1,457 | 1,333 | 4,615 | 3,982 |
Total Non-Interest Expense | 11,520 | 11,107 | 34,863 | 32,746 |
PRETAX INCOME | 1,772 | 1,313 | 6,501 | 4,872 |
Provision for income taxes | 341 | 235 | 1,281 | 966 |
NET INCOME | $ 1,431 | $ 1,078 | $ 5,220 | $ 3,906 |
Basic: | ||||
Net income | $ 0.08 | $ 0.06 | $ 0.31 | $ 0.23 |
Average number of shares outstanding | 17,075 | 17,059 | 17,071 | 17,051 |
Diluted: | ||||
Net income | $ 0.08 | $ 0.06 | $ 0.31 | $ 0.23 |
Average number of shares outstanding | 17,114 | 17,062 | 17,114 | 17,063 |
Wealth management fees. | ||||
NON-INTEREST INCOME | ||||
Non-interest income | $ 3,137 | $ 2,604 | $ 9,031 | $ 7,629 |
Service charges on deposit accounts | ||||
NON-INTEREST INCOME | ||||
Non-interest income | $ 260 | $ 206 | $ 685 | $ 668 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
COMPREHENSIVE INCOME | ||||
Net income | $ 1,431 | $ 1,078 | $ 5,220 | $ 3,906 |
Other comprehensive income, before tax: | ||||
Pension obligation change for defined benefit plan | 2,422 | 8,190 | 528 | |
Income tax effect | (509) | (1,720) | (111) | |
Unrealized holding gains (losses) on available for sale securities arising during period | (589) | 143 | (1,362) | 2,272 |
Income tax effect | 123 | (30) | 286 | (476) |
Reclassification adjustment for net realized gains on available for sale securities included in net income | (84) | |||
Income tax effect | 18 | |||
Other comprehensive income | 1,447 | 113 | 5,328 | 2,213 |
Comprehensive income | $ 2,878 | $ 1,191 | $ 10,548 | $ 6,119 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | COMMON STOCK | TREASURY STOCK | CAPITAL SURPLUS | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE LOSS, NET | Total |
Balance at beginning of period at Dec. 31, 2019 | $ 267 | $ (83,129) | $ 145,888 | $ 51,759 | $ (16,171) | |
New common shares issued for exercise of stock options | 75 | |||||
Treasury stock, purchased at cost | (151) | |||||
Stock option expense | 2 | |||||
Net income | 3,906 | $ 3,906 | ||||
Cash dividend declared on common stock | (1,290) | |||||
Other comprehensive income | 2,213 | 2,213 | ||||
Balance at end of period at Sep. 30, 2020 | 267 | (83,280) | 145,965 | 54,375 | (13,958) | 103,369 |
Balance at beginning of period at Jun. 30, 2020 | 267 | (83,280) | 145,965 | 53,723 | (14,071) | |
Net income | 1,078 | 1,078 | ||||
Cash dividend declared on common stock | (426) | |||||
Other comprehensive income | 113 | 113 | ||||
Balance at end of period at Sep. 30, 2020 | 267 | (83,280) | 145,965 | 54,375 | (13,958) | 103,369 |
Balance at beginning of period at Dec. 31, 2020 | 267 | (83,280) | 145,969 | 54,641 | (13,198) | 104,399 |
New common shares issued for exercise of stock options | 39 | |||||
Stock option expense | 30 | |||||
Net income | 5,220 | 5,220 | ||||
Cash dividend declared on common stock | (1,280) | |||||
Other comprehensive income | 5,328 | 5,328 | ||||
Balance at end of period at Sep. 30, 2021 | 267 | (83,280) | 146,038 | 58,581 | (7,870) | 113,736 |
Balance at beginning of period at Jun. 30, 2021 | 267 | (83,280) | 146,025 | 57,577 | (9,317) | |
Stock option expense | 13 | |||||
Net income | 1,431 | 1,431 | ||||
Cash dividend declared on common stock | (427) | |||||
Other comprehensive income | 1,447 | 1,447 | ||||
Balance at end of period at Sep. 30, 2021 | $ 267 | $ (83,280) | $ 146,038 | $ 58,581 | $ (7,870) | $ 113,736 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
COMMON STOCK | ||||
New common shares issued for exercise of stock options, shares | 14,856 | 36,735 | ||
TREASURY STOCK | ||||
Treasury stock, purchased at cost, shares | 35,962 | |||
CAPITAL SURPLUS | ||||
New common shares issued for exercise of stock options, shares | 14,856 | 36,735 | ||
RETAINED EARNINGS | ||||
Cash dividend declared per common share | $ 0.025 | $ 0.025 | $ 0.075 | $ 0.075 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 5,220,000 | $ 3,906,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 850,000 | 1,300,000 |
Depreciation and amortization expense | 1,508,000 | 1,472,000 |
Amortization expense of core deposit intangible | 11,000 | |
Amortization of fair value adjustment on acquired time deposits | (58,000) | |
Net amortization of investment securities | 189,000 | 206,000 |
Net realized gains on investment securities - available for sale | (84,000) | |
Net gains on loans held for sale | (632,000) | (1,079,000) |
Net amortization of deferred loan fees | (967,000) | (339,000) |
Origination of mortgage loans held for sale | (10,467,000) | (71,330,000) |
Sales of mortgage loans held for sale | 17,349,000 | 69,690,000 |
Decrease (increase) in accrued interest receivable | 148,000 | (2,273,000) |
Decrease in accrued interest payable | (731,000) | (499,000) |
Earnings on bank-owned life insurance | (771,000) | (438,000) |
Deferred income taxes | 1,023,000 | 609,000 |
Stock compensation expense | 30,000 | 2,000 |
Net change in operating leases | (71,000) | (67,000) |
Other, net | (4,968,000) | (5,564,000) |
Net cash provided by (used in) operating activities | 7,579,000 | (4,404,000) |
INVESTING ACTIVITIES | ||
Purchase of investment securities - available for sale | (48,951,000) | (23,706,000) |
Purchase of investment securities - held to maturity | (15,272,000) | (6,648,000) |
Proceeds from maturities of investment securities - available for sale | 30,314,000 | 25,871,000 |
Proceeds from maturities of investment securities - held to maturity | 5,490,000 | 3,883,000 |
Proceeds from sales of investment securities - available for sale | 960,000 | 0 |
Purchase of regulatory stock | (1,245,000) | (6,252,000) |
Proceeds from redemption of regulatory stock | 2,842,000 | 6,084,000 |
Long-term loans originated | (232,781,000) | (207,028,000) |
Principal collected on long-term loans | 209,771,000 | 147,958,000 |
Purchases of premises and equipment | (834,000) | (1,094,000) |
Proceeds from sale of other real estate owned | 21,000 | |
Cash acquired in branch acquisition, net | 40,431,000 | |
Proceeds from life insurance policies | 645,000 | |
Net cash used in investing activities | (8,630,000) | (60,911,000) |
FINANCING ACTIVITIES | ||
Net increase in deposit balances | 47,097,000 | 81,722,000 |
Net decrease in other short-term borrowings | (24,702,000) | (16,518,000) |
Principal borrowings on advances from Federal Home Loan Bank | 34,210,000 | |
Principal repayments on advances from Federal Home Loan Bank | (21,336,000) | (13,542,000) |
Principal payments on financing lease liabilities | (156,000) | (151,000) |
Redemption of guaranteed junior subordinated deferrable interest debentures | (13,085,000) | |
Subordinated debt issuance, net | 26,597,000 | |
Redemption of subordinated debt | (7,650,000) | |
Stock options exercised | 39,000 | 75,000 |
Purchases of treasury stock | (151,000) | |
Common stock dividend paid | (1,280,000) | (1,290,000) |
Net cash provided by financing activities | 5,524,000 | 84,355,000 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 4,473,000 | 19,040,000 |
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 31,504,000 | 22,168,000 |
CASH AND CASH EQUIVALENTS AT SEPTEMBER 30 | $ 35,977,000 | $ 41,208,000 |
Principles of Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 30, 2021 | |
Principles of Consolidation | |
Principles of Consolidation | 1. Principles of Consolidation The accompanying consolidated financial statements include the accounts of AmeriServ Financial, Inc. (the Company) and its wholly-owned subsidiaries, AmeriServ Financial Bank (the Bank) and AmeriServ Trust and Financial Services Company (the Trust Company). The Bank is a Pennsylvania state-chartered full service bank with 16 locations in Pennsylvania and 1 location in Maryland. The Trust Company offers a complete range of trust and financial services and administers assets valued at $2.6 billion and $2.5 billion that are not reported on the Company’s Consolidated Balance Sheets at September 30, 2021 and December 31, 2020, respectively. In addition, the Parent Company is an administrative group that provides support in such areas as audit, finance, investments, loan review, general services, and marketing. Intercompany accounts and transactions have been eliminated in preparing the Consolidated Financial Statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (generally accepted accounting principles, or GAAP) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from these estimates and the differences may be material to the Consolidated Financial Statements. The Company’s most significant estimates relate to the allowance for loan losses, intangible assets, income taxes, investment securities, pension, and the fair value of financial instruments. On May 21, 2021, the Bank completed its acquisition from Citizen’s Neighborhood Bank (CNB), an operating division of Riverview Bank, the branch and related deposit customers in Meyersdale, Pennsylvania and the deposit customers in Somerset, Pennsylvania. The Meyersdale branch is operating under the AmeriServ name and the Somerset customers are being serviced from the full service AmeriServ office at 108 West Main Street. The related deposits totaled approximately $42 million at closing and were acquired for a 3.71% deposit premium, or $1.6 million. |
Basis of Preparation
Basis of Preparation | 9 Months Ended |
Sep. 30, 2021 | |
Basis of Preparation | |
Basis of Preparation | 2. Basis of Preparation The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. In the opinion of management, all adjustments consisting of normal recurring entries considered necessary for a fair presentation have been included. They are not, however, necessarily indicative of the results of consolidated operations for a full-year. For further information, refer to the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. The overall impact of the amendment will be affected by the portfolio composition and quality at the adoption date as well as economic conditions and forecasts at that time. In January 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition | |
Revenue Recognition | 4. Revenue Recognition ASU 2014-09, Revenue from Contracts with Customers – Topic 606 , requires the Company to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers at the time the transfer of goods or services takes place. Management determined that the primary sources of revenue associated with financial instruments, including interest and fee income on loans and interest on investments, along with certain non-interest revenue sources including net realized gains (losses) on investment securities, mortgage related fees, net gains on loans held for sale, and bank owned life insurance are not within the scope of Topic 606. These sources of revenue cumulatively comprise Non-interest income within the scope of Topic 606 are as follows: ● Wealth management fees - Wealth management fee income is primarily comprised of fees earned from the management and administration of trusts and customer investment portfolios. The Company’s performance obligation is generally satisfied over a period of time and the resulting fees are billed monthly or quarterly, based upon the month end market value of the assets under management. Payment is generally received after month end through a direct charge to customers’ accounts. Due to this delay in payment, a receivable of $825,000 has been established as of September 30, 2021 and is included in other assets on the Consolidated Balance Sheets in order to properly recognize the revenue earned but not yet received. Other performance obligations (such as delivery of account statements to customers) are generally considered immaterial to the overall transactions’ price. Commissions on transactions are recognized on a trade-date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Also included within wealth management fees are commissions from the sale of mutual funds, annuities, and life insurance products. Commissions on the sale of mutual funds, annuities, and life insurance products are recognized when sold, which is when the Company has satisfied its performance obligation. ● Service charges on deposit accounts - The Company has contracts with its deposit account customers where fees are charged for certain items or services. Service charges include account analysis fees, monthly service fees, overdraft fees, and other deposit account related fees. Revenue related to account analysis fees and service fees is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. Fees attributable to specific performance obligations of the Company (i.e. overdraft fees, etc.) are recognized at a defined point in time based on completion of the requested service or transaction. ● Other non-interest income - Other non-interest income consists of other recurring revenue streams such as safe deposit box rental fees, gain (loss) on sale of other real estate owned, ATM and VISA debit card fees, and other miscellaneous revenue streams. Safe deposit box rental fees are charged to the customer on an annual basis and recognized when billed. However, if the safe deposit box rental fee is prepaid (i.e. paid prior to issuance of annual bill), the revenue is recognized upon receipt of payment. The Company has determined that since rentals and renewals occur consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Gains and losses on the sale of other real estate owned are recognized at the completion of the property sale when the buyer obtains control of the real estate and all the performance obligations of the Company have been satisfied. The Company offers ATM and VISA debit cards to deposit account holders which allows our customers to access their account electronically at ATMs and POS terminals. Fees related to ATM and VISA debit card transactions are recognized when the transactions are completed and the Company has satisfied its performance obligation. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three- and nine-month periods ending September 30, 2021 and 2020 (in thousands). Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Non-interest income: In-scope of Topic 606 Wealth management fees $ 3,137 $ 2,604 $ 9,031 $ 7,629 Service charges on deposit accounts 260 206 685 668 Other 548 485 1,510 1,271 Non-interest income (in-scope of topic 606) 3,945 3,295 11,226 9,568 Non-interest income (out-of-scope of topic 606) 471 1,009 2,203 2,335 Total non-interest income $ 4,416 $ 4,304 $ 13,429 $ 11,903 |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Common Share | |
Earnings Per Common Share | 5. Earnings Per Common Share Basic earnings per share include only the weighted average common shares outstanding. Diluted earnings per share include the weighted average common shares outstanding and any potentially dilutive common stock equivalent shares in the calculation. Treasury shares are excluded for earnings per share purposes. For the three month periods ending September 30, 2021 and 2020, options to purchase 22,000 common shares, with an exercise price of $4.00 to $4.22, and options to purchase 189,259 common shares, with an exercise price of $2.96 to $4.22, respectively, were outstanding but were not included in the computation of diluted earnings per common share because to do so would be antidilutive. For the nine month periods ending September 30, 2021 and 2020, options to purchase 22,000 common shares, with an exercise price of $4.00 to $4.22, and options to purchase 69,759 common shares, with an exercise price of $3.20 to $4.22, respectively, were outstanding but were not included in the computation of diluted earnings per common share because to do so would be antidilutive. Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 (In thousands, except per share data) Numerator: Net income $ 1,431 $ 1,078 $ 5,220 $ 3,906 Denominator: Weighted average common shares outstanding (basic) 17,075 17,059 17,071 17,051 Effect of stock options 39 3 43 12 Weighted average common shares outstanding (diluted) 17,114 17,062 17,114 17,063 Earnings per common share Basic $ 0.08 $ 0.06 $ 0.31 $ 0.23 Diluted 0.08 0.06 0.31 0.23 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows | 9 Months Ended |
Sep. 30, 2021 | |
Consolidated Statement of Cash Flows. | |
Consolidated Statement of Cash Flows | 6. Consolidated Statement of Cash Flows On a consolidated basis, cash and cash equivalents include cash and due from depository institutions, interest bearing deposits and short-term investments in both money market funds and commercial paper. The Company made in the same 2020 period. The Company made total interest payments of period. The Company had $8,000 non-cash transfers to other real estate owned (OREO) and repossessed assets in the first nine months of 2021 compared to $40,000 non-cash transfers in the same 2020 period. During the first nine months of 2021, the Company did not enter into any new lease agreements and during the same 2020 period, the Company entered into two new financing leases, one related to office equipment and the other asset In addition to the branch acquisition related information disclosed on the Consolidated Statements of Cash Flows, the following were recorded as non-cash transfers on the corresponding lines of the Consolidated Balance Sheets as of September 30, 2021 (in thousands). Acquisition of Riverview Bank Branches Non-cash assets acquired Loans $ 36 Other premises and equipment, net 158 Intangible assets 1,844 $ 2,038 Non-cash liabilities assumed Non-interest bearing deposits $ (7,372) Interest bearing deposits (35,060) Other liabilities (37) $ (42,469) Cash and cash equivalents acquired $ 258 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investment Securities | |
Investment Securities | 7. Investment Securities The cost basis and fair values of investment securities are summarized as follows: Investment securities available for sale (AFS): September 30, 2021 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 7,536 $ 127 $ (28) $ 7,635 U.S. Agency mortgage-backed securities 77,963 1,610 (813) 78,760 Municipal 19,258 1,062 (18) 20,302 Corporate bonds 52,561 1,197 (102) 53,656 Total $ 157,318 $ 3,996 $ (961) $ 160,353 Investment securities held to maturity (HTM): September 30, 2021 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 2,500 $ — $ — $ 2,500 U.S. Agency mortgage-backed securities 11,078 272 (101) 11,249 Municipal 32,856 1,973 (95) 34,734 Corporate bonds and other securities 7,508 80 (1) 7,587 Total $ 53,942 $ 2,325 $ (197) $ 56,070 Investment securities available for sale (AFS): December 31, 2020 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 2,971 $ 181 $ — $ 3,152 U.S. Agency mortgage-backed securities 65,398 2,533 (18) 67,913 Municipal 19,000 1,348 — 20,348 Corporate bonds 52,315 666 (229) 52,752 Total $ 139,684 $ 4,728 $ (247) $ 144,165 Investment securities held to maturity (HTM): December 31, 2020 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency mortgage-backed securities $ 8,119 $ 369 $ — $ 8,488 Municipal 30,076 2,455 (49) 32,482 Corporate bonds and other securities 6,027 113 (4) 6,136 Total $ 44,222 $ 2,937 $ (53) $ 47,106 Maintaining investment quality is a primary objective of the Company’s investment policy which, subject to certain limited exceptions, prohibits the purchase of any investment security below a Moody’s Investor’s Service or Standard & Poor’s rating of “A.” At September 30, 2021, 47.6% of the portfolio was rated “AAA” as compared to 42.2% at December 31, 2020. Approximately 15.0% of the portfolio was either rated below “A” or unrated at September 30, 2021 as compared to 15.2% at December 31, 2020. The Company sold no AFS securities during the third quarter of 2021. Total proceeds from the sale of AFS securities for the first nine months of 2021 were $960,000 resulting in $84,000 of gross investment security gains. The Company sold no AFS securities during the third quarter or first nine months of 2020. The carrying value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits was $119,809,000 at September 30, 2021 and $111,694,000 at December 31, 2020. The following tables present information concerning investments with unrealized losses as of September 30, 2021 and December 31, 2020 (in thousands): Total investment securities: September 30, 2021 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES U.S. Agency $ 5,971 $ (28) $ — $ — $ 5,971 $ (28) U.S. Agency mortgage-backed securities 45,487 (909) 462 (5) 45,949 (914) Municipal 7,053 (113) — — 7,053 (113) Corporate bonds and other securities 8,451 (48) 2,445 (55) 10,896 (103) Total $ 66,962 $ (1,098) $ 2,907 $ (60) $ 69,869 $ (1,158) Total investment securities: December 31, 2020 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES U.S. Agency mortgage-backed securities $ 6,394 $ (17) $ 123 $ (1) $ 6,517 $ (18) Municipal — — 751 (49) 751 (49) Corporate bonds and other securities 13,083 (162) 7,929 (71) 21,012 (233) Total $ 19,477 $ (179) $ 8,803 $ (121) $ 28,280 $ (300) The unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. There are 73 positions that are considered temporarily impaired at September 30, 2021. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value or mature. The interest rate environment and market yields can also have a significant impact on the yield earned on mortgage-backed securities (MBS). Prepayment speed assumptions are an important factor to consider when evaluating the returns on an MBS. Generally, as interest rates decline, borrowers have more incentive to refinance into a lower rate, so prepayments will rise. Conversely, as interest rates increase, prepayments will decline. When an MBS is purchased at a premium, the yield will decrease as prepayments increase and the yield will increase as prepayments decrease. As of September 30, 2021, the Company had low premium risk as the book value of our mortgage-backed securities purchased at a premium was only Contractual maturities of securities at September 30, 2021 are shown below (in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. The weighted average duration of the total investment securities portfolio at September 30, 2021 is 37.1 months and is higher than the duration at December 31, 2020 which was 25.4 months. The duration remains within our internally established guideline to not exceed 60 months which we believe is appropriate to maintain proper levels of liquidity, interest rate risk, market valuation sensitivity and profitability. Total investment securities: September 30, 2021 Available for sale Held to maturity Cost Basis Fair Value Cost Basis Fair Value Within 1 year $ 3,150 $ 3,188 $ — $ — After 1 year but within 5 years 34,390 35,443 12,293 12,768 After 5 years but within 10 years 44,850 46,275 23,084 24,509 After 10 years but within15 years 13,608 14,082 9,877 10,105 Over 15 years 61,320 61,365 8,688 8,688 Total $ 157,318 $ 160,353 $ 53,942 $ 56,070 |
Loans
Loans | 9 Months Ended |
Sep. 30, 2021 | |
Loans | |
Loans | 8. Loans The loan portfolio of the Company consists of the following (in thousands): September 30, 2021 December 31, 2020 Commercial: Commercial and industrial $ 136,891 $ 151,162 Paycheck Protection Program (PPP) 29,260 58,344 Commercial loans secured by owner occupied real estate 100,028 95,486 Commercial loans secured by non-owner occupied real estate 432,529 400,751 Real estate − residential mortgage 281,711 249,989 Consumer 15,610 16,363 Loans, net of unearned income $ 996,029 $ 972,095 Loan balances at September 30, 2021 and December 31, 2020 are net of unearned income of $1,062,000 and $1,202,000 , respectively. The unearned income balance at September 30, 2021 includes The ongoing COVID-19 pandemic is a fluid situation and continues to evolve, impacting the way many businesses operate. The pandemic and its associated impacts on trade (including supply chains and export levels), travel, employee productivity, unemployment, and consumer spending has resulted in less economic activity and significant volatility and disruption. Certain loans within our commercial and commercial real estate portfolios have been disproportionately adversely affected by the pandemic. Due to mandatory lockdowns and travel restrictions, certain industries, such as hospitality, travel, food service and restaurants and bars, have suffered as a result of COVID-19. The following table provides information regarding our potential COVID-19 risk concentrations for commercial and commercial real estate loans by industry type at September 30, 2021 and December 31, 2020 (in thousands). September 30, 2021 Paycheck Commercial loans Commercial loans Commercial Protection secured by owner secured by non-owner and industrial Program occupied real estate occupied real estate Total 1-4 unit residential $ 1,291 $ — $ 98 $ 7,266 $ 8,655 Multifamily/apartments/student housing — — 120 76,341 76,461 Office 31,051 965 9,184 33,486 74,686 Retail 11,993 487 20,733 144,603 177,816 Industrial/manufacturing/warehouse 77,770 12,674 21,279 44,816 156,539 Hotels 197 1,764 — 42,420 44,381 Eating and drinking places 555 8,544 4,269 1,785 15,153 Amusement and recreation 109 57 7,706 19 7,891 Mixed use — — 3,271 61,281 64,552 Other 13,925 4,769 33,368 20,512 72,574 Total $ 136,891 $ 29,260 $ 100,028 $ 432,529 $ 698,708 December 31, 2020 Paycheck Commercial loans Commercial loans Commercial Protection secured by owner secured by non-owner and industrial Program occupied real estate occupied real estate Total 1-4 unit residential $ 1,450 $ — $ 105 $ 6,139 $ 7,694 Multifamily/apartments/student housing — — 469 66,879 67,348 Office 33,525 6,872 10,095 37,164 87,656 Retail 8,080 1,542 21,180 124,325 155,127 Industrial/manufacturing/warehouse 87,021 26,222 18,255 38,814 170,312 Hotels 329 837 — 41,779 42,945 Eating and drinking places 769 13,479 4,390 1,925 20,563 Amusement and recreation 190 46 3,307 38 3,581 Mixed use — — 2,411 65,585 67,996 Other 19,798 9,346 35,274 18,103 82,521 Total $ 151,162 $ 58,344 $ 95,486 $ 400,751 $ 705,743 Paycheck Protection Program The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provides emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act and subsequent legislation authorized the Small Business Administration (SBA) to temporarily guarantee loans under a new 7(a) program called the Paycheck Protection Program (PPP). As a qualified SBA lender, the Company was automatically authorized to originate PPP loans. An eligible business could apply for a PPP loan up to the lesser of: (1) 2.5 times its average monthly payroll costs; or (2) $10.0 million. PPP loans have: (a) an interest rate of (if originated after June 5, 2020) loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee In addition, PPP allows certain eligible borrowers that previously received a PPP loan to apply for a second draw loan with the same general loans terms described above. The maximum loan amount of a second draw PPP loan is 2.5 times, or 3.5 times for borrowers within the hospitality industry, the average monthly 2019 or 2020 payroll costs up to $2.0 million. Eligibility for a second draw PPP loan is based on the following criteria: (a) borrower previously received a first draw PPP loan and used the full amount for only authorized expenditures; (b) borrower has 300 or less employees; and (c) borrower can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The PPP loan program expired on May 31, 2021 for originating new loans. As of September 30, 2021, the Company had 208 PPP loans outstanding totaling $29.3 million and has recorded a total of $273,000 and $1.9 million of processing fee income and interest income from PPP lending activity in the third quarter and first nine months of 2021, respectively. Also, there is approximately |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2021 | |
Allowance for Loan Losses | |
Allowance for Loan Losses | 9. Allowance for Loan Losses The following tables summarize the rollforward of the allowance for loan losses by portfolio segment for the three and nine month periods ending September 30, 2021 and 2020 (in thousands). Three months ended September 30, 2021 Balance at Charge- Provision Balance at June 30, 2021 Offs Recoveries (Credit) September 30, 2021 Commercial $ 3,534 $ — $ 35 $ (445) $ 3,124 Commercial loans secured by non-owner occupied real estate 5,535 — 13 670 6,218 Real estate-residential mortgage 1,388 — 8 61 1,457 Consumer 123 (50) 16 28 117 Allocation for general risk 1,172 — — 36 1,208 Total $ 11,752 $ (50) $ 72 $ 350 $ 12,124 Three months ended September 30, 2020 Balance at Charge- Provision Balance at June 30, 2020 Offs Recoveries (Credit) September 30, 2020 Commercial $ 3,784 $ (111) $ 1 $ (638) $ 3,036 Commercial loans secured by non-owner occupied real estate 3,619 — 10 1,261 4,890 Real estate-residential mortgage 1,216 (19) 24 4 1,225 Consumer 119 (14) 19 (4) 120 Allocation for general risk 961 — — 52 1,013 Total $ 9,699 $ (144) $ 54 $ 675 $ 10,284 Nine months ended September 30, 2021 Balance at Charge- Provision Balance at December 31, 2020 Offs Recoveries (Credit) September 30, 2021 Commercial $ 3,472 $ (147) $ 52 $ (253) $ 3,124 Commercial loans secured by non-owner occupied real estate 5,373 — 37 808 6,218 Real estate-residential mortgage 1,292 (17) 42 140 1,457 Consumer 115 (85) 47 40 117 Allocation for general risk 1,093 — — 115 1,208 Total $ 11,345 $ (249) $ 178 $ 850 $ 12,124 Nine months ended September 30, 2020 Balance at Charge- Provision Balance at December 31, 2019 Offs Recoveries (Credit) September 30, 2020 Commercial $ 3,951 $ (111) $ 1 $ (805) $ 3,036 Commercial loans secured by non-owner occupied real estate 3,119 — 31 1,740 4,890 Real estate-residential mortgage 1,159 (201) 46 221 1,225 Consumer 126 (105) 44 55 120 Allocation for general risk 924 — — 89 1,013 Total $ 9,279 $ (417) $ 122 $ 1,300 $ 10,284 The Company recorded a $350,000 provision expense for loan losses in the third quarter of 2021 as compared to a $675,000 provision expense recorded in the third quarter of 2020. For the first nine months of 2021, the Company recorded an $850,000 provision expense for loan losses compared to a $1.3 million provision expense recorded in the first nine months of 2020. The 2021 provision, for both time periods, reflects an improved credit quality outlook for the overall portfolio as criticized asset levels as well as delinquent loan balances have demonstrated improvement. This is a reflection of the Company’s loan officers working effectively with our customers as the economy improves and as businesses return to normal operations with limited restrictions. While the provision is lower for both time periods in 2021 when compared to 2020, the provision expense did increase from the second quarter of 2021 by of total loans, at December 31, 2020. It should be noted that the 100% SBA guarantee on PPP loans minimizes the level of credit risk associated with the loans. As a result, such loans are assigned a 0% risk weight for purposes of calculating the Bank’s risk-based capital ratios. Therefore, it was deemed appropriate to not allocate any portion of the loan loss reserve for the PPP loans. The Company experienced low net loan charge-offs of $71,000, or 0.01% of total loans, in the first nine months of 2021 which compare favorably to net loan charge-offs of $295,000, or 0.04% of total loans, in the first nine months of 2020. As a result of the provision expense sharply exceeding net loan charge-offs over the last 12 months, the balance in the allowance for loan losses increased by $1.8 million, or 17.9%, to $12.1 million at September 30, 2021. The allowance for loan losses provided The following tables summarize the loan portfolio and allowance for loan loss by the primary segments of the loan portfolio (in thousands). At September 30, 2021 Commercial Loans Secured by Non-Owner Real Estate- Occupied Residential Allocation for Commercial Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ 2,200 $ 6 $ — $ — $ 2,206 Collectively evaluated for impairment 263,979 432,523 281,711 15,610 993,823 Total loans $ 266,179 $ 432,529 $ 281,711 $ 15,610 $ 996,029 Allowance for loan losses: Specific reserve allocation $ 601 $ 6 $ — $ — $ — $ 607 General reserve allocation 2,523 6,212 1,457 117 1,208 11,517 Total allowance for loan losses $ 3,124 $ 6,218 $ 1,457 $ 117 $ 1,208 $ 12,124 At December 31, 2020 Commercial Loans Secured by Non-Owner Real Estate- Occupied Residential Allocation for Commercial Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ 847 $ 8 $ — $ — $ 855 Collectively evaluated for impairment 304,145 400,743 249,989 16,363 971,240 Total loans $ 304,992 $ 400,751 $ 249,989 $ 16,363 $ 972,095 Allowance for loan losses: Specific reserve allocation $ 96 $ 8 $ — $ — $ — $ 104 General reserve allocation 3,376 5,365 1,292 115 1,093 11,241 Total allowance for loan losses $ 3,472 $ 5,373 $ 1,292 $ 115 $ 1,093 $ 11,345 The segments of the Company’s loan portfolio are disaggregated into classes that allows management to monitor risk and performance. The loan classes used are consistent with the internal reports evaluated by the Company’s management and Board of Directors to monitor risk and performance within various segments of its loan portfolio. The commercial loan segment includes both the commercial and industrial and the owner occupied commercial real estate loan classes while the remaining segments are not separated into classes as management monitors risk in these loans at the segment level. The residential mortgage loan segment is comprised of first lien amortizing residential mortgage loans and home equity loans secured by residential real estate. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts. Management evaluates for possible impairment any individual loan in the commercial or commercial real estate segment that is in non-accrual status or classified as a Troubled Debt Restructure (TDR). In addition, consumer and residential mortgage loans with a balance of $150,000 or more are evaluated for impairment. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs for collateral dependent loans. The method is selected on a loan-by-loan basis, with management primarily utilizing either the discounted cash flows or the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The need for an updated appraisal on collateral dependent loans is determined on a case-by-case basis. The useful life of an appraisal or evaluation will vary depending upon the circumstances of the property and the economic conditions in the marketplace. A new appraisal is not required if there is an existing appraisal which, along with other information, is sufficient to determine a reasonable value for the property and to support an appropriate and adequate allowance for loan losses. At a minimum, annual documented reevaluation of the property is completed by the Bank’s internal Assigned Risk Department to support the value of the property. When reviewing an appraisal associated with an existing real estate collateral dependent transaction, the Bank’s internal Assigned Risk Department must determine if there have been material changes to the underlying assumptions in the appraisal which affect the original estimate of value. Some of the factors that could cause material changes to reported values include: ● the passage of time; ● the volatility of the local market; ● the availability of financing; ● natural disasters; ● the inventory of competing properties; ● new improvements to, or lack of maintenance of, the subject property or competing properties upon physical inspection by the Bank; ● changes in underlying economic and market assumptions, such as material changes in current and projected vacancy, absorption rates, capitalization rates, lease terms, rental rates, sales prices, concessions, construction overruns and delays, zoning changes, etc.; and/or ● environmental contamination. The value of the property is adjusted to appropriately reflect the above listed factors and the value is discounted to reflect the value impact of a forced or distressed sale, any outstanding senior liens, any outstanding unpaid real estate taxes, transfer taxes and closing costs that would occur with sale of the real estate. If the Assigned Risk Department personnel determine that a reasonable value cannot be derived based on available information, a new appraisal is ordered. The determination of the need for a new appraisal, versus completion of a property valuation by the Bank’s Assigned Risk Department personnel, rests with the Assigned Risk Department and not the originating account officer. The following tables present impaired loans by portfolio segment, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary. At September 30, 2021 IMPAIRED LOANS WITH IMPAIRED LOANS WITH NO SPECIFIC SPECIFIC ALLOWANCE ALLOWANCE TOTAL IMPAIRED LOANS UNPAID RECORDED RELATED RECORDED RECORDED PRINCIPAL INVESTMENT ALLOWANCE INVESTMENT INVESTMENT BALANCE (IN THOUSANDS) Commercial $ 2,199 $ 601 $ 1 $ 2,200 $ 2,267 Commercial loans secured by non-owner occupied real estate 6 6 — 6 28 Total impaired loans $ 2,205 $ 607 $ 1 $ 2,206 $ 2,295 At December 31, 2020 IMPAIRED LOANS WITH IMPAIRED LOANS WITH NO SPECIFIC SPECIFIC ALLOWANCE ALLOWANCE TOTAL IMPAIRED LOANS UNPAID RECORDED RELATED RECORDED RECORDED PRINCIPAL INVESTMENT ALLOWANCE INVESTMENT INVESTMENT BALANCE (IN THOUSANDS) Commercial $ 847 $ 96 $ — $ 847 $ 850 Commercial loans secured by non-owner occupied real estate 8 8 — 8 30 Total impaired loans $ 855 $ 104 $ — $ 855 $ 880 The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands). Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Average impaired balance: Commercial $ 2,233 $ 839 $ 1,972 $ 832 Commercial loans secured by non-owner occupied real estate 7 8 7 8 Average investment in impaired loans $ 2,240 $ 847 $ 1,979 $ 840 Interest income recognized: Commercial $ 3 $ 9 $ 15 $ 31 Commercial loans secured by non-owner occupied real estate — — — — Interest income recognized on a cash basis on impaired loans $ 3 $ 9 $ 15 $ 31 Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized. The first five “Pass” categories are aggregated, while the Pass-6, Special Mention, Substandard and Doubtful categories are disaggregated to separate pools. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due, or for which any portion of the loan represents a specific allocation of the allowance for loan losses are placed in Substandard or Doubtful. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process, which dictates that, at a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $1,000,000 within a 12-month period. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, delinquency, or death occurs to raise awareness of a possible credit event. The Company’s commercial relationship managers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. Risk ratings are assigned by the account officer, but require independent review and rating concurrence from the Company’s internal Loan Review Department. The Loan Review Department is an experienced, independent function which reports directly to the Board’s Audit Committee. The scope of commercial portfolio coverage by the Loan Review Department is defined and presented to the Audit Committee for approval on an annual basis. The approved scope of coverage for the year ending December 31, 2021 requires review of a minimum of 36% of the commercial loan portfolio. In addition to loan monitoring by the account officer and Loan Review Department, the Company also requires presentation of all credits rated Pass-6 with aggregate balances greater than $2,000,000, all credits rated Special Mention or Substandard with aggregate balances greater The following table presents the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system. At September 30, 2021 SPECIAL PASS MENTION SUBSTANDARD DOUBTFUL TOTAL (IN THOUSANDS) Commercial and industrial $ 127,234 $ 7,294 $ 690 $ 1,673 $ 136,891 Paycheck Protection Program (PPP) 29,260 — — — 29,260 Commercial loans secured by owner occupied real estate 97,999 915 1,114 — 100,028 Commercial loans secured by non-owner occupied real estate 399,554 23,468 9,501 6 432,529 Total $ 654,047 $ 31,677 $ 11,305 $ 1,679 $ 698,708 At December 31, 2020 SPECIAL PASS MENTION SUBSTANDARD DOUBTFUL TOTAL (IN THOUSANDS) Commercial and industrial $ 134,186 $ 13,722 $ 3,254 $ — $ 151,162 Paycheck Protection Program (PPP) 58,344 — — — 58,344 Commercial loans secured by owner occupied real estate 92,189 2,154 1,143 — 95,486 Commercial loans secured by non-owner occupied real estate 371,815 23,980 4,948 8 400,751 Total $ 656,534 $ 39,856 $ 9,345 $ 8 $ 705,743 It is generally the policy of the Bank that the outstanding balance of any residential mortgage loan that exceeds 90-days past due as to principal and/or interest is transferred to non-accrual status and an evaluation is completed to determine the fair value of the collateral less selling costs, unless the balance is minor. A charge down is recorded for any deficiency balance determined from the collateral evaluation. The remaining non-accrual balance is reported as impaired with no specific allowance. It is generally the policy of the Bank that the outstanding balance of any consumer loan that exceeds 90-days past due as to principal and/or interest is charged off. The following tables present the performing and non-performing outstanding balances of the residential and consumer portfolio classes. At September 30, 2021 NON- PERFORMING PERFORMING TOTAL (IN THOUSANDS) Real estate – residential mortgage $ 280,806 $ 905 $ 281,711 Consumer 15,610 — 15,610 Total $ 296,416 $ 905 $ 297,321 At December 31, 2020 NON- PERFORMING PERFORMING TOTAL (IN THOUSANDS) Real estate – residential mortgage $ 247,520 $ 2,469 $ 249,989 Consumer 16,356 7 16,363 Total $ 263,876 $ 2,476 $ 266,352 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans. At September 30, 2021 90 DAYS 30 – 59 60 – 89 PAST DUE DAYS DAYS 90 DAYS TOTAL TOTAL AND STILL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS ACCRUING (IN THOUSANDS) Commercial and industrial $ 136,471 $ 420 $ — $ — $ 420 $ 136,891 $ — Paycheck Protection Program (PPP) 29,260 — — — — 29,260 $ — Commercial loans secured by owner occupied real estate 99,835 192 — 1 193 100,028 — Commercial loans secured by non-owner occupied real estate 432,063 466 — — 466 432,529 — Real estate – residential mortgage 280,054 206 618 833 1,657 281,711 — Consumer 15,557 33 20 — 53 15,610 — Total $ 993,240 $ 1,317 $ 638 $ 834 $ 2,789 $ 996,029 $ — At December 31, 2020 90 DAYS 30 – 59 60 – 89 PAST DUE DAYS DAYS 90 DAYS TOTAL TOTAL AND STILL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS ACCRUING (IN THOUSANDS) Commercial and industrial $ 148,023 $ 536 $ 2,603 $ — $ 3,139 $ 151,162 $ — Paycheck Protection Program (PPP) 58,344 — — — — 58,344 $ — Commercial loans secured by owner occupied real estate 95,486 — — — — 95,486 — Commercial loans secured by non-owner occupied real estate 399,850 230 671 — 901 400,751 — Real estate – residential mortgage 246,279 776 1,178 1,756 3,710 249,989 — Consumer 16,274 82 — 7 89 16,363 — Total $ 964,256 $ 1,624 $ 4,452 $ 1,763 $ 7,839 $ 972,095 $ — An allowance for loan losses (“ALL”) is maintained to support loan growth and cover charge-offs from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are complemented by consideration of other qualitative factors. Management tracks the historical net charge-off activity at each risk rating grade level for the entire commercial portfolio and at the aggregate level for the consumer, residential mortgage and small business portfolios. A historical charge-off factor is calculated utilizing a rolling 12 consecutive historical quarters for the commercial portfolios. This historical charge-off factor for the consumer, residential mortgage and small business portfolios are based on a three-year historical average of actual loss experience. The Company uses a comprehensive methodology and procedural discipline to maintain an ALL to absorb inherent losses in the loan portfolio. The Company believes this is a critical accounting policy since it involves significant estimates and judgments. The allowance consists of three elements: (1) an allowance established on specifically identified problem loans, (2) formula driven general reserves established for loan categories based upon historical loss experience and other qualitative factors which include delinquency, non-performing and TDR loans, loan trends, economic trends, concentrations of credit, trends in loan volume, experience and depth of management, examination and audit results, effects of any changes in lending policies, and trends in policy, financial information, and documentation exceptions, and (3) a general risk reserve which provides support for variance from our assessment of the previously listed qualitative factors, provides protection against credit risks resulting from other inherent risk factors contained in the Company’s loan portfolio, and recognizes the model and estimation risk associated with the specific and formula driven allowances. The qualitative factors used in the formula driven general reserves are evaluated quarterly (and revised if necessary) by the Company’s management to establish allocations which accommodate each of the listed risk factors. “Pass” rated credits are segregated from “Criticized” and “Classified” credits for the application of qualitative factors. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. |
Non-Performing Assets Including
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | 9 Months Ended |
Sep. 30, 2021 | |
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | |
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | 10. Non-Performing Assets Including Troubled Debt Restructurings (TDR) The following table presents information concerning non-performing assets including TDR (in thousands, except percentages): September 30, 2021 December 31, 2020 Non-accrual loans: Commercial and industrial $ 2,199 $ 16 Commercial loans secured by owner occupied real estate 1 — Commercial loans secured by non-owner occupied real estate 6 8 Real estate – residential mortgage 905 2,469 Consumer — 7 Total 3,111 2,500 Other real estate owned and repossessed assets: Consumer 8 — Total 8 — TDR’s not in non-accrual: Commercial and industrial — 831 Total — 831 Total non-performing assets including TDR $ 3,119 $ 3,331 Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned and repossessed assets 0.31 % 0.34 % The Company had no loans past due 90 days or more for the periods presented which were accruing interest. The following table sets forth, for the periods indicated, (1) the gross interest income that would have been recorded if non-accrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination if held for part of the period, (2) the amount of interest income actually recorded on such loans, and (3) the net reduction in interest income attributable to such loans (in thousands). Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Interest income due in accordance with original terms $ 35 $ 22 $ 96 $ 60 Interest income recorded (3) — (3) — Net reduction in interest income $ 32 $ 22 $ 93 $ 60 Consistent with accounting and regulatory guidance, the Bank recognizes a TDR when the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Bank’s objective in offering a TDR is to increase the probability of repayment of the borrower’s loan. The Company had no loans modified as TDRs during the three-month period ended September 30, 2021. The following table details the loan modified as a TDR during the nine-month period ended September 30, 2021 (dollars in thousands). Loans in non-accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 480 Subsequent modification of a TDR - Extension of maturity date with a below market interest rate The following table details the loan modified as a TDR during the three-month period ended September 30, 2020 (dollars in thousands). Loans in accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 47 Extension of maturity date with a below market interest rate The following table details the loans modified as TDRs during the nine-month period ended September 30, 2020 (dollars in thousands). Loans in accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 750 Subsequent modification of a TDR - Extension of maturity date with a below market interest rate Commercial and industrial 1 47 Extension of maturity date with a below market interest rate All TDRs are individually evaluated for impairment and a related allowance is recorded, as needed. The specific ALL reserve for loans modified as TDRs was The Company had no loans that were classified as TDRs or were subsequently modified during each 12-month period prior to the current reporting periods, which begin January 1, 2020 and 2019 (nine-month periods) and July 1, 2020 and 2019 (three-month periods), respectively, and that subsequently defaulted during these reporting periods. The Company is unaware of any additional loans which are required to either be charged-off or added to the non-performing asset totals disclosed above. Loan Modifications Related to COVID-19 Under section 4013 of the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications. A financial institution can then suspend the requirements under GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a TDR, and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes and reporting the loan as past due. Financial institutions wishing to utilize this authority must make a policy election, which applies to any COVID-19 modification made between March 1, 2020 and the earlier of either December 31, 2020 or the 60th day after the end of the COVID-19 national emergency so long as the loan was current on payments as of December 31, 2019. The suspension of TDR identification and accounting triggered by the effects of the COVID-19 pandemic was extended by the Consolidated Appropriations Act, 2021, signed into law on December 27, 2020. The period established by Section 4013 of the CARES Act was extended to the earlier of January 1, 2022 or 60 days after the date on which the national COVID-19 emergency terminates. Additionally, the Financial Accounting Standards Board has confirmed that short-term modifications made on a good-faith basis in response to COVID-19 to loan customers who were current prior to any relief are not TDRs. In response to the COVID-19 pandemic, the Company remains committed to prudently working with and supporting our borrowers that have been hardest hit by the pandemic by granting them loan payment modifications. The following table presents information comparing loans which were subject to a loan modification related to COVID-19, as of September 30, 2021 and December 31, 2020. Note that the percentage of outstanding loans presented below was calculated based on loan totals excluding PPP loans. Management believes that this method more accurately reflects the concentration of COVID-19 related modifications within the loan portfolio. At September 30, 2021 At December 31, 2020 % of Outstanding % of Outstanding Balance Non-PPP Loans Balance Non-PPP Loans (in thousands) (in thousands) CRE/Commercial $ 14,847 2.1 % $ 47,037 7.0 % Home Equity/Consumer 46 0.1 83 0.1 Residential Mortgage 838 0.5 1,943 1.3 Total $ 15,731 1.6 $ 49,063 5.3 The balance of loan modifications related to COVID-19 at September 30, 2021 represents a decrease of $33.3 million, or 67.9%, from the balance of loans modified for COVID-19 at December 31, 2020. In addition, this current level of borrowers requesting payment deferrals is down sharply from its peak level of approximately $200 million that occurred at June 30, 2020. As a result of these loan modifications, the Company has recorded $939,000 of accrued interest income that has not been received as of September 30, 2021. Borrower requested modifications primarily consist of the deferral of principal and/or interest payments for a period of three to six months. The following table presents the composition of the types of payment relief that have been granted. At September 30, 2021 At December 31, 2020 Number of Loans Balance Number of Loans Balance (in thousands) (in thousands) Type of Payment Relief Interest only payments 5 $ 4,975 11 $ 26,900 Complete payment deferrals 22 10,756 59 22,163 Total 27 $ 15,731 70 $ 49,063 Management continues to carefully monitor asset quality with a particular focus on customers that have requested payment deferrals during this difficult economic time. Deferral extension requests are considered based upon the customer’s needs and their impacted industry, borrower and guarantor capacity to service debt, and issued regulatory guidance. At September 30, 2021, the COVID-19 related modifications within the commercial real estate and commercial loan portfolios are to five borrowers, most of which are borrowers in the hospitality industry who were granted more than one loan payment deferral plan, with loans totaling approximately $15 million. In order to properly monitor the increased credit risk associated with the modified loans, the Asset Quality Task Force is meeting at least monthly to review these particular relationships, receiving input from the business lenders regarding their ongoing discussions with the borrowers. |
Short-Term Borrowings, Advances
Short-Term Borrowings, Advances from Federal Home Loan Bank and Subordinated Debt | 9 Months Ended |
Sep. 30, 2021 | |
Short-Term Borrowings, Advances from Federal Home Loan Bank and Subordinated Debt | |
Short-Term Borrowings, Advances from Federal Home Loan Bank and Subordinated Debt | 11. Short-Term Borrowings, Advances from Federal Home Loan Bank and Subordinated Debt Total short-term and Federal Home Loan Bank (FHLB) borrowings and advances consist of the following (in thousands, except percentages): At September 30, 2021 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ — — % FHLB Advances 2021 3,000 2.94 2022 20,888 2.03 2023 15,568 1.59 2024 4,197 1.19 Total FHLB advances 43,653 1.85 Total short-term and FHLB borrowings $ 43,653 1.85 % At December 31, 2020 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ 24,702 0.41 % FHLB Advances 2021 24,336 1.00 2022 20,888 2.03 2023 15,568 1.59 2024 4,197 1.19 Total FHLB advances 64,989 1.48 Total short-term and FHLB borrowings $ 89,691 1.19 % The rate on Open Repo Plus advances can change daily, while the rates on the advances are fixed until the maturity of the advance. All FHLB stock along with an interest in certain residential mortgage, commercial real estate, and commercial and industrial loans with an aggregate statutory value equal to the amount of the advances are pledged as collateral to the FHLB of Pittsburgh to support these borrowings. Subordinated Debt: On August 26, 2021, the Company completed a private placement of $27 million in fixed-to-floating rate subordinated notes to certain accredited investors. The notes mature September 1, 2031 and are non-callable for five years. The notes have a fixed annual interest rate of 3.75%, payable until September 1, 2026. From and including September 1, 2026, the interest rate will reset quarterly to the then-current three-month Secured Overnight Financing Rate (SOFR) plus 3.11%. This subordinated debt has been structured to qualify as tier 2 capital under the Federal Reserve’s capital guidelines. The Company used approximately $20 million of the net proceeds to retire its existing subordinated debt and trust preferred securities on September 30, 2021. The remainder of the proceeds are being utilized for general corporate purposes, including the downstream of $3.5 million as capital to the bank. The net balance of subordinated debt as of September 30, 2021 was $26.6 million. This compares to the net balance of guaranteed junior subordinated deferrable interest debentures (trust preferred securities) of |
Lease Commitments
Lease Commitments | 9 Months Ended |
Sep. 30, 2021 | |
Lease Commitments | |
Lease Commitments | 12. Lease Commitments The Company has operating and financing leases for several office locations and equipment. Several assumptions and judgments were made when applying the requirements of ASU 2016-02, Leases (Topic 842) Many of our leases include both lease (e.g., minimum rent payments) and non-lease components, such as common area maintenance charges, utilities, real estate taxes, and insurance. The Company has elected to account for the variable non-lease components separately from the lease component. Such variable non-lease components are reported in net occupancy expense on the Consolidated Statements of Operations when incurred. These variable non-lease components were excluded from the calculation of the present value of the remaining lease payments, therefore, they are not included in the right-of-use assets and lease liabilities reported on the Consolidated Balance Sheets. The following table presents the lease cost associated with both operating and financing leases for the three and nine month periods ending September 30, 2021 and 2020 (in thousands). Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Lease cost Financing lease cost: Amortization of right-of-use asset $ 68 $ 68 $ 204 $ 203 Interest expense 26 28 80 85 Operating lease cost 29 29 87 87 Total lease cost $ 123 $ 125 $ 371 $ 375 Certain of the Company's leases contain options to renew the lease after the initial term. Management considers the Company's historical pattern of exercising renewal options on leases and the performance of the leased locations, when determining whether it is reasonably certain that the leases will be renewed. If management concludes that there is reasonable certainty about the renewal option, it is included in the calculation of the remaining term of each applicable lease. The discount rate utilized in calculating the present value of the remaining lease payments for each lease was the Federal Home Loan Bank of Pittsburgh advance rate corresponding to the remaining maturity of the lease. The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at September 30, 2021 and December 31, 2020. September 30, 2021 December 31, 2020 Operating Financing Operating Financing Weighted-average remaining term (years) 11.1 15.6 11.4 16.0 Weighted-average discount rate 3.52 % 3.55 % 3.49 % 3.52 % The following table presents the undiscounted cash flows due related to operating and financing leases, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets. September 30, 2021 OPERATING FINANCING (IN THOUSANDS) Undiscounted cash flows due: Within 1 year $ 110 $ 319 After 1 year but within 2 years 69 320 After 2 years but within 3 years 69 253 After 3 years but within 4 years 69 252 After 4 years but within 5 years 69 198 After 5 years 470 2,623 Total undiscounted cash flows 856 3,965 Discount on cash flows (151) (1,012) Total lease liabilities $ 705 $ 2,953 December 31, 2020 OPERATING FINANCING (IN THOUSANDS) Undiscounted cash flows due: Within 1 year $ 120 $ 316 After 1 year but within 2 years 98 320 After 2 years but within 3 years 69 309 After 3 years but within 4 years 69 249 After 4 years but within 5 years 69 248 After 5 years 520 2,760 Total undiscounted cash flows 945 4,202 Discount on cash flows (169) (1,093) Total lease liabilities $ 776 $ 3,109 Under Topic 842, the lessee can elect to not record on the Consolidated Balance Sheets a lease whose term is twelve months or less and does not include a purchase option that the lessee is reasonably certain to exercise. As of September 30, 2021 and December 31, 2020, the Company had no short-term leases. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | 13. Accumulated Other Comprehensive Loss The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three months ended September 30, 2021 Three months ended September 30, 2020 Net Net Unrealized Unrealized Gains and Gains and Losses on Defined Losses on Defined Investment Benefit Investment Benefit Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ 2,863 $ (12,180) $ (9,317) $ 3,398 $ (17,469) $ (14,071) Other comprehensive income (loss) before reclassifications (466) 1,219 753 113 (483) (370) Amounts reclassified from accumulated other comprehensive loss — 694 694 — 483 483 Net current period other comprehensive income (loss) (466) 1,913 1,447 113 — 113 Ending balance $ 2,397 $ (10,267) $ (7,870) $ 3,511 $ (17,469) $ (13,958) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. Nine months ended September 30, 2021 Nine months ended September 30, 2020 Net Net Unrealized Unrealized Gains and Gains and Losses on Defined Losses on Defined Investment Benefit Investment Benefit Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ 3,539 $ (16,737) $ (13,198) $ 1,715 $ (17,886) $ (16,171) Other comprehensive income (loss) before reclassifications (1,076) 4,140 3,064 1,796 (1,031) 765 Amounts reclassified from accumulated other comprehensive loss (66) 2,330 2,264 — 1,448 1,448 Net current period other comprehensive income (loss) (1,142) 6,470 5,328 1,796 417 2,213 Ending balance $ 2,397 $ (10,267) $ (7,870) $ 3,511 $ (17,469) $ (13,958) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the three and nine months ended September 30, 2021 and 2020 (in thousands): Amount reclassified from accumulated other comprehensive loss (1) For the three For the three Details about accumulated other months ended months ended Affected line item in the comprehensive loss components September 30, 2021 September 30, 2020 statement of operations Amortization of estimated defined benefit pension plan loss (2) $ 879 $ 611 Other expense (185) (128) Provision for income taxes $ 694 $ 483 Total reclassifications for the period $ 694 $ 483 (1) Amounts in parentheses indicate credits. (2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 18 for additional details). Amount reclassified from accumulated other comprehensive loss (1) For the nine For the nine Details about accumulated other months ended months ended Affected line item in the comprehensive loss components September 30, 2021 September 30, 2020 statement of operations Realized gains on sale of securities $ (84) $ — Net realized gains on investment securities 18 — Provision for income taxes $ (66) $ — Amortization of estimated defined benefit pension plan loss (2) $ 2,949 $ 1,833 Other expense (619) (385) Provision for income taxes $ 2,330 $ 1,448 Total reclassifications for the period $ 2,264 $ 1,448 (1) Amounts in parentheses indicate credits. (2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 18 for additional details). |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2021 | |
Regulatory Capital | |
Regulatory Capital | 14. Regulatory Capital The Company is subject to various capital requirements administered by the federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. For a more detailed discussion, see the Capital Resources section of Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A). Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total, common equity tier 1, and tier 1 capital to risk-weighted assets (as defined) and tier 1 capital to average assets. Additionally, under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of September 30, 2021, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action promulgated by the Federal Reserve. The Company believes that no conditions or events have occurred that would change this conclusion as of such date. To be categorized as well capitalized, the Bank must maintain minimum total capital, common equity tier 1 capital, tier 1 capital, and tier 1 leverage ratios as set forth in the table. At September 30, 2021 TO BE WELL MINIMUM CAPITALIZED REQUIRED UNDER FOR PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO (IN THOUSANDS, EXCEPT RATIOS) Total Capital (To Risk Weighted Assets) $ 147,516 13.61 % $ 132,583 12.28 % 8.00 % 10.00 % Tier 1 Common Equity (To Risk Weighted Assets) 107,829 9.95 119,496 11.07 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 107,829 9.95 119,496 11.07 6.00 8.00 Tier 1 Capital (To Average Assets) 107,829 7.87 119,496 8.87 4.00 5.00 At December 31, 2020 TO BE WELL MINIMUM CAPITALIZED REQUIRED UNDER FOR PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO (IN THOUSANDS, EXCEPT RATIOS) Total Capital (To Risk Weighted Assets) $ 135,777 12.93 % $ 125,182 11.95 % 8.00 % 10.00 % Tier 1 Common Equity (To Risk Weighted Assets) 105,653 10.06 112,965 10.78 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 117,556 11.20 112,965 10.78 6.00 8.00 Tier 1 Capital (To Average Assets) 117,556 9.29 112,965 9.03 4.00 5.00 * Applies to the Bank only. It should be noted that, in addition to earnings performance positively impacting regulatory capital, the August 26, 2021 issuance of $27 million in subordinated debt resulted in the total capital ratios at both the Company and the Bank improving to a greater degree than they otherwise would have between the second and third quarter of 2021. This improvement is due to the new $27 million subordinated debt issuance being larger than the aggregate $20 million of debt instruments that it replaced. The new $27 million of subordinated debt qualifies as tier 2 capital at the Company and replaced $13.1 million of guaranteed junior subordinated debt, which qualified as tier 1 capital, and $7.65 million of subordinated debt that, similar to the new subordinated debt, qualified as tier 2 capital. As a result, the tier 1 capital ratio decreased at the Company and is now equal to the tier 1 common equity ratio. Since the new subordinated debt issuance was greater than the aggregate total of the debt instruments that it replaced, the Parent Company downstreamed $3.5 million as capital to the Bank. This new capital at the Bank qualifies as tier 1 capital and resulted in further improvement to all of its regulatory capital ratios. |
Derivative Hedging Instruments
Derivative Hedging Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Hedging Instruments | |
Derivative Hedging Instruments | 15. Derivative Hedging Instruments The Company can use various interest rate contracts, such as interest rate swaps, caps, floors and swaptions to help manage interest rate and market valuation risk exposure, which is incurred in normal recurrent banking activities. The Company can use derivative instruments, primarily interest rate swaps, to manage interest rate risk and match the rates on certain assets by hedging the fair value of certain fixed rate debt, which converts the debt to variable rates and by hedging the cash flow variability associated with certain variable rate debt by converting the debt to fixed rates. Interest Rate Swap Agreements To accommodate the needs of our customers and support the Company’s asset/liability positioning, we may enter into interest rate swap agreements with customers and a large financial institution that specializes in these types of transactions. These arrangements involve the exchange of interest payments based on the notional amounts. The Company entered into floating rate loans and fixed rate swaps with our customers. Simultaneously, the Company entered into offsetting fixed rate swaps with this large financial institution. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay the large financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These transactions allow the Company’s customers to effectively convert a variable rate loan to a fixed rate. Because the Company acts as an intermediary for its customers, changes in the fair value of the underlying derivative contracts offset each other and do not significantly impact the Company’s results of operations. These swaps are considered free-standing derivatives and are reported at fair value within other assets and other liabilities on the Consolidated Balance Sheets. Disclosures related to the fair value of the swap transactions can be found in Note 19. The following table summarizes the interest rate swap transactions that impacted the Company’s first nine months of 2021 and 2020 performance (in thousands, except percentages). At September 30, 2021 INCREASE AGGREGATE WEIGHTED (DECREASE) NOTIONAL AVERAGE RATE REPRICING IN INTEREST HEDGE TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE Swap assets N/A $ 55,061 2.59 % Monthly $ (602) Swap liabilities N/A (55,061) (2.59) Monthly 602 Net exposure — — — At September 30, 2020 INCREASE AGGREGATE WEIGHTED (DECREASE) NOTIONAL AVERAGE RATE REPRICING IN INTEREST HEDGE TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE Swap assets N/A $ 36,726 3.06 % Monthly $ (345) Swap liabilities N/A (36,726) (3.06) Monthly 345 Net exposure — — — Risk Participation Agreement The Company entered into a risk participation agreement (RPA) with the lead bank of a commercial real estate loan arrangement. As a participating bank, the Company guarantees the performance on a borrower-related interest rate swap contract. The Company has no obligations under the RPA unless the borrower defaults on their swap transaction with the lead bank and the swap is a liability to the borrower. In that instance, the Company has agreed to pay the lead bank a pre-determined percentage of the swap’s value at the time of default. In exchange for providing the guarantee, the Company received an upfront fee from the lead bank. RPAs are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings with a corresponding offset within other liabilities. Disclosures related to the fair value of the RPA can be found in Note 19. The notional amount of the risk participation agreement outstanding at September 30, 2021 was $2.6 million. The Company monitors and controls all derivative products with a comprehensive Board of Directors approved Hedging Policy. This policy permits a total maximum notional amount outstanding of $500 million for interest rate swaps, interest rate caps/floors, and swaptions. All hedge transactions must be approved in advance by the Investment Asset/Liability Committee (ALCO) of the Board of Directors, unless otherwise approved, as per the terms, within the Board of Directors approved Hedging Policy. The Company had no caps or floors outstanding at September 30, 2021 and 2020. None of the Company's derivatives are designated as hedging instruments. |
Segment Results
Segment Results | 9 Months Ended |
Sep. 30, 2021 | |
Segment Results | |
Segment Results | 16. Segment Results The financial performance of the Company is also monitored by an internal funds transfer pricing profitability measurement system which produces line of business results and key performance measures. The Company’s major business units include community banking, wealth management, and investment/parent. The reported results reflect the underlying economics of the business segments. Expenses for centrally provided services are allocated based upon the cost and estimated usage of those services. The businesses are match-funded and interest rate risk is centrally managed and accounted for within the investment/parent business segment. The key performance measure the Company focuses on for each business segment is net income contribution. The community banking segment includes both retail and commercial banking activities. Retail banking includes the deposit-gathering branch franchise and lending to both individuals and small businesses. Lending activities include residential mortgage loans, direct consumer loans, and small business commercial loans. Commercial banking to businesses includes commercial loans, business services, and CRE loans. The wealth management segment includes the Trust Company, West Chester Capital Advisors (WCCA), our registered investment advisory firm, and Financial Services. Wealth management activities include personal trust products and services such as personal portfolio investment management, estate planning and administration, custodial services and pre-need trusts. Also, institutional trust products and services such as 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts are included in this segment. Financial Services include the sale of mutual funds, annuities, and insurance products. The wealth management businesses also include the union collective investment funds (ERECT funds) which are designed to use union pension dollars in construction projects that utilize union labor. The investment/parent includes the net results of investment securities and borrowing activities, general corporate expenses not allocated to the business segments, interest expense on corporate debt, and centralized interest rate risk management. Inter-segment revenues were not material. The contribution of the major business segments to the Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Three months ended Nine months ended September 30, 2021 September 30, 2021 Total revenue Net income (loss) Total revenue Net income (loss) Community banking $ 12,515 $ 2,801 $ 38,605 $ 9,059 Wealth management 3,154 831 9,082 2,227 Investment/Parent (2,027) (2,201) (5,473) (6,066) Total $ 13,642 $ 1,431 $ 42,214 $ 5,220 Three months ended Nine months ended September 30, 2020 September 30, 2020 Total revenue Net income (loss) Total revenue Net income (loss) Community banking $ 12,263 $ 2,509 $ 36,096 $ 7,788 Wealth management 2,620 547 7,672 1,510 Investment/Parent (1,788) (1,978) (4,850) (5,392) Total $ 13,095 $ 1,078 $ 38,918 $ 3,906 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | 17. Commitments and Contingent Liabilities The Company had various outstanding commitments to extend credit approximating $265.5 million and $213.9 million along with standby letters of credit of $13.4 million and $13.3 million as of September 30, 2021 and December 31, 2020, respectively. The Company’s exposure to credit loss in the event of nonperformance by the other party to these commitments to extend credit and standby letters of credit is represented by their contractual amounts. The Bank uses the same credit and collateral policies in making commitments and conditional obligations as for all other lending. The carrying amount of the reserves for AmeriServ obiligations related to unfunded commitments and standby letters of credit was $963,000 at September 30, 2021 and $872,000 at December 31, 2020. Additionally, the Company is also subject to a number of asserted and unasserted potential claims encountered in the normal course of business. In the opinion of the Company, neither the resolution of these claims nor the funding of these credit commitments will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Pension Benefits
Pension Benefits | 9 Months Ended |
Sep. 30, 2021 | |
Pension Benefits | |
Pension Benefits | 18. Pension Benefits The Company has a noncontributory defined benefit pension plan covering certain employees who work at least 1,000 hours per year. The participants have a vested interest in their accrued benefit after five full years of service. The benefits of the plan are based upon the employee’s years of service and average annual earnings for the highest five consecutive calendar years during the final ten-year period of employment. Plan assets are primarily debt securities (including U.S. Treasury and Agency securities, corporate notes and bonds), listed common stocks (including shares of AmeriServ Financial, Inc. common stock which is limited to 10% of the plan’s assets), mutual funds, and short-term cash equivalent instruments. The net periodic pension cost for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 COMPONENTS OF NET PERIODIC BENEFIT COST: Service cost $ 429 $ 419 $ 1,287 $ 1,257 Interest cost 221 320 664 960 Expected return on plan assets (1,004) (811) (3,012) (2,433) Recognized net actuarial loss 610 611 1,829 1,833 Settlement charge 269 — 1,120 — Net periodic pension cost $ 525 $ 539 $ 1,888 $ 1,617 The service cost component of net periodic benefit cost is included in salaries and employee benefits and all other components of net periodic benefit cost are included in other expense on the Consolidated Statements of Operations. The Company recognized a $269,000 and $1.1 million settlement charge in connection with its defined benefit pension plan in the third quarter and first nine months of 2021, respectively. A settlement charge must be recognized when the total dollar amount of lump sum distributions paid from the pension plan to retired employees exceed a threshold of expected annual service and interest costs in the current year. So far in 2021, all employees that retired have elected to take a lump sum distribution as opposed to collecting future monthly annuity payments since the value of the lump sums is elevated due to the historically low interest rates. It is anticipated that the Company will be required to recognize additional settlement charges during the fourth quarter of 2021 as more people retire. However, the amounts of these future settlement charges are difficult to estimate. It is important to note that since the retired employees have chosen to take the lump sum payments, these individuals are no longer included in the pension plan. Therefore, the Company’s normal annual pension expense is expected to continue to decline in the future. The accrued pension liability, which had a positive (debit) balance of $17.2 million, was reclassified to other assets on the Consolidated Balance Sheets as of September 30, 2021. The balance of the accrued pension liability became a positive value as a result of the $8.0 million contribution made in 2021 and the revaluation of the obligation due to the recognition of the settlement charge. The Company implemented a soft freeze of its defined benefit pension plan to provide that non-union employees hired on or after January 1, 2013 and union employees hired on or after January 1, 2014 are not eligible to participate in the pension plan. Instead, such employees are eligible to participate in a qualified 401(k) plan. This change was made to help reduce pension costs in future periods. |
Disclosures about Fair Value Me
Disclosures about Fair Value Measurements and Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Disclosures about Fair Value Measurements and Financial Instruments | |
Disclosures about Fair Value Measurements and Financial Instruments | 19. Disclosures about Fair Value Measurements and Financial Instruments The following disclosures establish a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three broad levels defined within this hierarchy are as follows: Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Assets and Liabilities Measured and Recorded on a Recurring Basis Equity securities are reported at fair value utilizing Level 1 inputs. These securities are mutual funds held within a rabbi trust for the Company's executive deferred compensation plan. The mutual funds held are open-end funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value and to transact at that price. Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quoted market spreads, cash flows, the US Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair values of the interest rate swaps used for interest rate risk management and the risk participation agreement associated with a commercial real estate loan are based on an external derivative valuation model using data inputs from similar transactions as of the valuation date and classified Level 2. The following table presents the assets and liabilities measured and reported on the Consolidated Balance Sheets on a recurring basis at their fair value as of September 30, 2021 and December 31, 2020, by level within the fair value hierarchy (in thousands). Fair Value Measurements at September 30, 2021 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Equity securities $ 516 $ 516 $ — $ — Available for sale securities: U.S. Agency 7,635 — 7,635 — U.S. Agency mortgage-backed securities 78,760 — 78,760 — Municipal 20,302 — 20,302 — Corporate bonds 53,656 — 53,656 — Interest rate swap asset 1,574 — 1,574 — Interest rate swap liability (1,574) — (1,574) — Risk participation agreement (8) — (8) — Fair Value Measurements at December 31, 2020 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Equity securities $ 443 $ 443 $ — $ — Available for sale securities: U.S. Agency 3,152 — 3,152 — U.S. Agency mortgage-backed securities 67,913 — 67,913 — Municipal 20,348 — 20,348 — Corporate bonds 52,752 — 52,752 — Interest rate swap asset 3,320 — 3,320 — Interest rate swap liability (3,320) — (3,320) — (1) Included within other assets on the Consolidated Balance Sheets. (2) Included within other liabilities on the Consolidated Balance Sheets. Assets Measured and Recorded on a Non-Recurring Basis Loans considered impaired are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans are reported at the fair value of the underlying collateral if the repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based on observable market data which at times are discounted using unobservable inputs. At September 30, 2021, collateral-based impaired loans with a carrying value of $7,000 were reduced by a specific valuation allowance totaling $6,000 resulting in a net fair value of $1,000. At December 31, 2020, collateral-based impaired loans with a carrying value of $266,000 were reduced by a specific valuation allowance totaling $8,000 resulting in a net fair value of $258,000. Other real estate owned is measured at fair value based on appraisals, less estimated costs to sell at the date of foreclosure. The Bank’s internal Assigned Risk Department estimates the fair value of repossessed assets, such as vehicles and equipment, using a formula driven analysis based on automobile or other industry data, less estimated costs to sell at the time of repossession. Valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less cost to sell. Income and expenses from operations and changes in valuation allowance are included in the net expenses from OREO and repossessed assets. Assets measured and recorded at fair value on a non-recurring basis are summarized below (in thousands, except range data): Fair Value Measurements September 30, 2021 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Impaired loans $ 1 $ — $ — $ 1 Other real estate owned and repossessed assets 8 — — 8 Fair Value Measurements December 31, 2020 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Impaired loans $ 258 $ — $ — $ 258 Quantitative Information About Level 3 Fair Value Measurements Valuation Unobservable September 30, 2021 Fair Value Techniques Input Range (Wgtd Avg) Impaired loans $ 1 Appraisal of Appraisal 0% to 100% (89%) collateral (1) adjustments(2) Other real estate owned and repossessed assets 8 Appraisal of Appraisal 30% (30%) collateral (1) adjustments(2) Liquidation 3% (3%) expenses Quantitative Information About Level 3 Fair Value Measurements Valuation Unobservable December 31, 2020 Fair Value Techniques Input Range (Wgtd Avg) Impaired loans $ 258 Appraisal of Appraisal 0% to 100% (3%) collateral (1) adjustments(2) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Also includes qualitative adjustments by management and estimated liquidation expenses. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions. FAIR VALUE OF FINANCIAL INSTRUMENTS For the Company, as for most financial institutions, approximately 90% of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimates and present value calculations were used by the Company for the purpose of this disclosure. Fair values have been determined by the Company using independent third party valuations that use the best available data (Level 2) and an estimation methodology (Level 3) the Company believes is suitable for each category of financial instruments. Management believes that cash and cash equivalents, bank owned life insurance, regulatory stock, accrued interest receivable and payable, deposits with no stated maturities, and short-term borrowings have fair values which approximate the recorded carrying values. The fair value measurements for all of these financial instruments are Level 1 measurements. The estimated fair values based on US GAAP measurements and recorded carrying values at September 30, 2021 and December 31, 2020, for the remaining financial instruments not required to be measured or reported at fair value were as follows: September 30, 2021 Carrying Value Fair Value (Level 1) (Level 2) (Level 3) (IN THOUSANDS) FINANCIAL ASSETS: Investment securities – HTM $ 53,942 $ 56,070 $ — $ 53,071 $ 2,999 Loans, net of allowance for loan loss and unearned income 983,905 988,679 — — 988,679 FINANCIAL LIABILITIES: Deposits with stated maturities 303,025 305,424 — — 305,424 All other borrowings (1) 70,253 71,207 — — 71,207 December 31, 2020 Carrying Value Fair Value (Level 1) (Level 2) (Level 3) (IN THOUSANDS) FINANCIAL ASSETS: Investment securities – HTM $ 44,222 $ 47,106 $ — $ 44,108 $ 2,998 Loans held for sale 6,250 6,428 6,428 — — Loans, net of allowance for loan loss and unearned income 960,750 969,433 — — 969,433 FINANCIAL LIABILITIES: Deposits with stated maturities 311,064 314,845 — — 314,845 All other borrowings (1) 85,493 90,907 — — 90,907 (1) All other borrowings include advances from Federal Home Loan Bank, guaranteed junior subordinated deferrable interest debentures, and subordinated debt. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. The Company’s remaining assets and liabilities which are not considered financial instruments have not been valued differently than has been customary under historical cost accounting. |
Risks and Uncertainties
Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties | |
Risks and Uncertainties | 20. Risks and Uncertainties The impact of the ongoing COVID-19 pandemic is fluid and continues to evolve, adversely affecting many of the Company’s customers. The pandemic and its associated impacts on trade (including supply chains and export levels), travel, employee productivity, unemployment, and consumer spending has resulted in less economic activity, and significant volatility and disruption in the financial markets. The ultimate extent of the impact of the COVID-19 pandemic on the Company’s business, financial condition, and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory, and private sector responses to the pandemic, including the distribution and effectiveness of COVID-19 vaccines, and the associated impacts on the economy, financial markets and our customers, employees, and vendors. While the full effects of the pandemic remain unknown, the Company is committed to supporting its customers, employees, and communities during this difficult time. |
Branch Acquisition
Branch Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Branch Acquisition | |
Branch Acquisition | 21. Branch Aquisition On May 21, 2021, AmeriServ Financial Bank, the Company’s wholly owned banking subsidiary, completed its previously announced acquisition from Citizen’s Neighborhood Bank (CNB), an operating division of Riverview Bank, the branch and deposit customers in Meyersdale, Pennsylvania and the deposit customers in Somerset, Pennsylvania. On this date, the Meyersdale branch continued in operation under the AmeriServ name while the Somerset branch customers were transferred to the full service AmeriServ office at 108 West Main Street. Pursuant with the terms of the purchase and assumption agreement, the related deposits, totaling approximately $42 million on the closing date, were acquired for a 3.71% deposit premium, or $1.6 million. The acquisition was accounted for under the acquisition method of accounting as prescribed by FASB Accounting Standards Codification 805, Business Combinations In accordance with the purchase and assumption agreement, the purchase price of the real property (i.e. premise and equipment) was equal to the net book value as of the date of acquisition. The Company determined that the net book value was a reasonable proxy of fair value based on review of appraisals on record at Riverview Bank. The Company engaged a consultant to assist in the valuation of the core deposit intangible asset and fair value of certificates of deposit. Core deposits include demand deposits, interest-bearing checking, money market, and savings accounts. The core deposit intangible value assigned to the acquired deposits was determined using the income approach and represents the future economic benefit of the potential cost savings from acquiring those core deposits compared to the cost of obtaining generally higher cost FHLB borrowings. Certificates of deposit (CDs) are not considered to be core deposits as they typically are less stable and generally do not have an all-in favorable funding advantage to alternative funding sources. The fair value of CDs represents the present value of the certificates’ expected contractual payments discounted by market rates for similar CDs. The following table reflects the basis of assets acquired and liabilities assumed from Riverview Bank as of the acquisition date (in thousands). Consideration received Cash received $ 40,154 Fair value of assets acquired Cash and cash equivalents $ 258 Loans 36 Premises and equipment 158 Core deposit intangible 177 Other assets 19 648 Fair value of liabilities assumed Deposits (42,432) Other liabilities (37) (42,469) Total fair value of identifiable net assets (41,821) Goodwill resulting from acquisition $ 1,667 The Company recorded goodwill and other intangibles associated with the acquisition of the Meyersdale and Somerset branches from Riverview Bank totaling $1.8 million. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during the nine months ended September 30, 2021. The carrying amount of the goodwill at September 30, 2021 related to the Riverview branch acquisition was $1.7 million. Identifiable intangible assets are amortized to their estimated residual values over their expected useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. During the nine months ended September 30, 2021, no such adjustments were recorded. The identifiable intangible assets consist of a core deposit intangible which is being amortized on an accelerated basis over a ten-year useful life. The gross carrying amount of the core deposit intangible at September 30, 2021 was $166,000 with $11,000 accumulated amortization as of that date. The amount of revenue of the acquired business since the acquisition date, and the pro-forma results of operations, are not material to the financial statements. As of September 30, 2021, the current year and estimated future amortization expense for the core deposit intangible associated with the Riverview branch acquisition is as follows (in thousands): 2021 $ 19 2022 30 2023 27 2024 24 2025 21 After five years 56 $ 177 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition | |
Schedule of non-interest income, segregated by revenue | The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three- and nine-month periods ending September 30, 2021 and 2020 (in thousands). Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Non-interest income: In-scope of Topic 606 Wealth management fees $ 3,137 $ 2,604 $ 9,031 $ 7,629 Service charges on deposit accounts 260 206 685 668 Other 548 485 1,510 1,271 Non-interest income (in-scope of topic 606) 3,945 3,295 11,226 9,568 Non-interest income (out-of-scope of topic 606) 471 1,009 2,203 2,335 Total non-interest income $ 4,416 $ 4,304 $ 13,429 $ 11,903 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Common Share | |
Schedule of Earnings Per Common Share | Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 (In thousands, except per share data) Numerator: Net income $ 1,431 $ 1,078 $ 5,220 $ 3,906 Denominator: Weighted average common shares outstanding (basic) 17,075 17,059 17,071 17,051 Effect of stock options 39 3 43 12 Weighted average common shares outstanding (diluted) 17,114 17,062 17,114 17,063 Earnings per common share Basic $ 0.08 $ 0.06 $ 0.31 $ 0.23 Diluted 0.08 0.06 0.31 0.23 |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Consolidated Statement of Cash Flows. | |
Schedule of non-cash assets acquired and liabilities assumed | In addition to the branch acquisition related information disclosed on the Consolidated Statements of Cash Flows, the following were recorded as non-cash transfers on the corresponding lines of the Consolidated Balance Sheets as of September 30, 2021 (in thousands). Acquisition of Riverview Bank Branches Non-cash assets acquired Loans $ 36 Other premises and equipment, net 158 Intangible assets 1,844 $ 2,038 Non-cash liabilities assumed Non-interest bearing deposits $ (7,372) Interest bearing deposits (35,060) Other liabilities (37) $ (42,469) Cash and cash equivalents acquired $ 258 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investment Securities | |
Schedule of cost basis and fair values of investment securities | The cost basis and fair values of investment securities are summarized as follows: Investment securities available for sale (AFS): September 30, 2021 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 7,536 $ 127 $ (28) $ 7,635 U.S. Agency mortgage-backed securities 77,963 1,610 (813) 78,760 Municipal 19,258 1,062 (18) 20,302 Corporate bonds 52,561 1,197 (102) 53,656 Total $ 157,318 $ 3,996 $ (961) $ 160,353 Investment securities held to maturity (HTM): September 30, 2021 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 2,500 $ — $ — $ 2,500 U.S. Agency mortgage-backed securities 11,078 272 (101) 11,249 Municipal 32,856 1,973 (95) 34,734 Corporate bonds and other securities 7,508 80 (1) 7,587 Total $ 53,942 $ 2,325 $ (197) $ 56,070 Investment securities available for sale (AFS): December 31, 2020 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency $ 2,971 $ 181 $ — $ 3,152 U.S. Agency mortgage-backed securities 65,398 2,533 (18) 67,913 Municipal 19,000 1,348 — 20,348 Corporate bonds 52,315 666 (229) 52,752 Total $ 139,684 $ 4,728 $ (247) $ 144,165 Investment securities held to maturity (HTM): December 31, 2020 GROSS GROSS UNREALIZED UNREALIZED FAIR COST BASIS GAINS LOSSES VALUE (IN THOUSANDS) U.S. Agency mortgage-backed securities $ 8,119 $ 369 $ — $ 8,488 Municipal 30,076 2,455 (49) 32,482 Corporate bonds and other securities 6,027 113 (4) 6,136 Total $ 44,222 $ 2,937 $ (53) $ 47,106 |
Schedule of investment securities | September 30, 2021 Available for sale Held to maturity Cost Basis Fair Value Cost Basis Fair Value Within 1 year $ 3,150 $ 3,188 $ — $ — After 1 year but within 5 years 34,390 35,443 12,293 12,768 After 5 years but within 10 years 44,850 46,275 23,084 24,509 After 10 years but within15 years 13,608 14,082 9,877 10,105 Over 15 years 61,320 61,365 8,688 8,688 Total $ 157,318 $ 160,353 $ 53,942 $ 56,070 |
Schedule of investments with unrealized losses | The following tables present information concerning investments with unrealized losses as of September 30, 2021 and December 31, 2020 (in thousands): Total investment securities: September 30, 2021 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES U.S. Agency $ 5,971 $ (28) $ — $ — $ 5,971 $ (28) U.S. Agency mortgage-backed securities 45,487 (909) 462 (5) 45,949 (914) Municipal 7,053 (113) — — 7,053 (113) Corporate bonds and other securities 8,451 (48) 2,445 (55) 10,896 (103) Total $ 66,962 $ (1,098) $ 2,907 $ (60) $ 69,869 $ (1,158) Total investment securities: December 31, 2020 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES U.S. Agency mortgage-backed securities $ 6,394 $ (17) $ 123 $ (1) $ 6,517 $ (18) Municipal — — 751 (49) 751 (49) Corporate bonds and other securities 13,083 (162) 7,929 (71) 21,012 (233) Total $ 19,477 $ (179) $ 8,803 $ (121) $ 28,280 $ (300) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans | |
Schedule of loan portfolio | The loan portfolio of the Company consists of the following (in thousands): September 30, 2021 December 31, 2020 Commercial: Commercial and industrial $ 136,891 $ 151,162 Paycheck Protection Program (PPP) 29,260 58,344 Commercial loans secured by owner occupied real estate 100,028 95,486 Commercial loans secured by non-owner occupied real estate 432,529 400,751 Real estate − residential mortgage 281,711 249,989 Consumer 15,610 16,363 Loans, net of unearned income $ 996,029 $ 972,095 |
Summary of risk concentrations for commercial and commercial real estate loans by industry type | September 30, 2021 Paycheck Commercial loans Commercial loans Commercial Protection secured by owner secured by non-owner and industrial Program occupied real estate occupied real estate Total 1-4 unit residential $ 1,291 $ — $ 98 $ 7,266 $ 8,655 Multifamily/apartments/student housing — — 120 76,341 76,461 Office 31,051 965 9,184 33,486 74,686 Retail 11,993 487 20,733 144,603 177,816 Industrial/manufacturing/warehouse 77,770 12,674 21,279 44,816 156,539 Hotels 197 1,764 — 42,420 44,381 Eating and drinking places 555 8,544 4,269 1,785 15,153 Amusement and recreation 109 57 7,706 19 7,891 Mixed use — — 3,271 61,281 64,552 Other 13,925 4,769 33,368 20,512 72,574 Total $ 136,891 $ 29,260 $ 100,028 $ 432,529 $ 698,708 December 31, 2020 Paycheck Commercial loans Commercial loans Commercial Protection secured by owner secured by non-owner and industrial Program occupied real estate occupied real estate Total 1-4 unit residential $ 1,450 $ — $ 105 $ 6,139 $ 7,694 Multifamily/apartments/student housing — — 469 66,879 67,348 Office 33,525 6,872 10,095 37,164 87,656 Retail 8,080 1,542 21,180 124,325 155,127 Industrial/manufacturing/warehouse 87,021 26,222 18,255 38,814 170,312 Hotels 329 837 — 41,779 42,945 Eating and drinking places 769 13,479 4,390 1,925 20,563 Amusement and recreation 190 46 3,307 38 3,581 Mixed use — — 2,411 65,585 67,996 Other 19,798 9,346 35,274 18,103 82,521 Total $ 151,162 $ 58,344 $ 95,486 $ 400,751 $ 705,743 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Allowance for Loan Losses | |
Schedule of Loan losses by portfolio segment | The following tables summarize the rollforward of the allowance for loan losses by portfolio segment for the three and nine month periods ending September 30, 2021 and 2020 (in thousands). Three months ended September 30, 2021 Balance at Charge- Provision Balance at June 30, 2021 Offs Recoveries (Credit) September 30, 2021 Commercial $ 3,534 $ — $ 35 $ (445) $ 3,124 Commercial loans secured by non-owner occupied real estate 5,535 — 13 670 6,218 Real estate-residential mortgage 1,388 — 8 61 1,457 Consumer 123 (50) 16 28 117 Allocation for general risk 1,172 — — 36 1,208 Total $ 11,752 $ (50) $ 72 $ 350 $ 12,124 Three months ended September 30, 2020 Balance at Charge- Provision Balance at June 30, 2020 Offs Recoveries (Credit) September 30, 2020 Commercial $ 3,784 $ (111) $ 1 $ (638) $ 3,036 Commercial loans secured by non-owner occupied real estate 3,619 — 10 1,261 4,890 Real estate-residential mortgage 1,216 (19) 24 4 1,225 Consumer 119 (14) 19 (4) 120 Allocation for general risk 961 — — 52 1,013 Total $ 9,699 $ (144) $ 54 $ 675 $ 10,284 Nine months ended September 30, 2021 Balance at Charge- Provision Balance at December 31, 2020 Offs Recoveries (Credit) September 30, 2021 Commercial $ 3,472 $ (147) $ 52 $ (253) $ 3,124 Commercial loans secured by non-owner occupied real estate 5,373 — 37 808 6,218 Real estate-residential mortgage 1,292 (17) 42 140 1,457 Consumer 115 (85) 47 40 117 Allocation for general risk 1,093 — — 115 1,208 Total $ 11,345 $ (249) $ 178 $ 850 $ 12,124 Nine months ended September 30, 2020 Balance at Charge- Provision Balance at December 31, 2019 Offs Recoveries (Credit) September 30, 2020 Commercial $ 3,951 $ (111) $ 1 $ (805) $ 3,036 Commercial loans secured by non-owner occupied real estate 3,119 — 31 1,740 4,890 Real estate-residential mortgage 1,159 (201) 46 221 1,225 Consumer 126 (105) 44 55 120 Allocation for general risk 924 — — 89 1,013 Total $ 9,279 $ (417) $ 122 $ 1,300 $ 10,284 |
Schedule of Loan loss by the primary segments | The following tables summarize the loan portfolio and allowance for loan loss by the primary segments of the loan portfolio (in thousands). At September 30, 2021 Commercial Loans Secured by Non-Owner Real Estate- Occupied Residential Allocation for Commercial Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ 2,200 $ 6 $ — $ — $ 2,206 Collectively evaluated for impairment 263,979 432,523 281,711 15,610 993,823 Total loans $ 266,179 $ 432,529 $ 281,711 $ 15,610 $ 996,029 Allowance for loan losses: Specific reserve allocation $ 601 $ 6 $ — $ — $ — $ 607 General reserve allocation 2,523 6,212 1,457 117 1,208 11,517 Total allowance for loan losses $ 3,124 $ 6,218 $ 1,457 $ 117 $ 1,208 $ 12,124 At December 31, 2020 Commercial Loans Secured by Non-Owner Real Estate- Occupied Residential Allocation for Commercial Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ 847 $ 8 $ — $ — $ 855 Collectively evaluated for impairment 304,145 400,743 249,989 16,363 971,240 Total loans $ 304,992 $ 400,751 $ 249,989 $ 16,363 $ 972,095 Allowance for loan losses: Specific reserve allocation $ 96 $ 8 $ — $ — $ — $ 104 General reserve allocation 3,376 5,365 1,292 115 1,093 11,241 Total allowance for loan losses $ 3,472 $ 5,373 $ 1,292 $ 115 $ 1,093 $ 11,345 |
Schedule of Present impaired loans by portfolio segment | The following tables present impaired loans by portfolio segment, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary. At September 30, 2021 IMPAIRED LOANS WITH IMPAIRED LOANS WITH NO SPECIFIC SPECIFIC ALLOWANCE ALLOWANCE TOTAL IMPAIRED LOANS UNPAID RECORDED RELATED RECORDED RECORDED PRINCIPAL INVESTMENT ALLOWANCE INVESTMENT INVESTMENT BALANCE (IN THOUSANDS) Commercial $ 2,199 $ 601 $ 1 $ 2,200 $ 2,267 Commercial loans secured by non-owner occupied real estate 6 6 — 6 28 Total impaired loans $ 2,205 $ 607 $ 1 $ 2,206 $ 2,295 At December 31, 2020 IMPAIRED LOANS WITH IMPAIRED LOANS WITH NO SPECIFIC SPECIFIC ALLOWANCE ALLOWANCE TOTAL IMPAIRED LOANS UNPAID RECORDED RELATED RECORDED RECORDED PRINCIPAL INVESTMENT ALLOWANCE INVESTMENT INVESTMENT BALANCE (IN THOUSANDS) Commercial $ 847 $ 96 $ — $ 847 $ 850 Commercial loans secured by non-owner occupied real estate 8 8 — 8 30 Total impaired loans $ 855 $ 104 $ — $ 855 $ 880 |
Schedule of Investment in impaired loans and related interest income | The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands). Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Average impaired balance: Commercial $ 2,233 $ 839 $ 1,972 $ 832 Commercial loans secured by non-owner occupied real estate 7 8 7 8 Average investment in impaired loans $ 2,240 $ 847 $ 1,979 $ 840 Interest income recognized: Commercial $ 3 $ 9 $ 15 $ 31 Commercial loans secured by non-owner occupied real estate — — — — Interest income recognized on a cash basis on impaired loans $ 3 $ 9 $ 15 $ 31 |
Schedule of Commercial and commercial real estate loan portfolios | The following table presents the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system. At September 30, 2021 SPECIAL PASS MENTION SUBSTANDARD DOUBTFUL TOTAL (IN THOUSANDS) Commercial and industrial $ 127,234 $ 7,294 $ 690 $ 1,673 $ 136,891 Paycheck Protection Program (PPP) 29,260 — — — 29,260 Commercial loans secured by owner occupied real estate 97,999 915 1,114 — 100,028 Commercial loans secured by non-owner occupied real estate 399,554 23,468 9,501 6 432,529 Total $ 654,047 $ 31,677 $ 11,305 $ 1,679 $ 698,708 At December 31, 2020 SPECIAL PASS MENTION SUBSTANDARD DOUBTFUL TOTAL (IN THOUSANDS) Commercial and industrial $ 134,186 $ 13,722 $ 3,254 $ — $ 151,162 Paycheck Protection Program (PPP) 58,344 — — — 58,344 Commercial loans secured by owner occupied real estate 92,189 2,154 1,143 — 95,486 Commercial loans secured by non-owner occupied real estate 371,815 23,980 4,948 8 400,751 Total $ 656,534 $ 39,856 $ 9,345 $ 8 $ 705,743 |
Schedule of Residential and consumer portfolio | The following tables present the performing and non-performing outstanding balances of the residential and consumer portfolio classes. At September 30, 2021 NON- PERFORMING PERFORMING TOTAL (IN THOUSANDS) Real estate – residential mortgage $ 280,806 $ 905 $ 281,711 Consumer 15,610 — 15,610 Total $ 296,416 $ 905 $ 297,321 At December 31, 2020 NON- PERFORMING PERFORMING TOTAL (IN THOUSANDS) Real estate – residential mortgage $ 247,520 $ 2,469 $ 249,989 Consumer 16,356 7 16,363 Total $ 263,876 $ 2,476 $ 266,352 |
Schedule of Credit quality of the loan portfolio | The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans. At September 30, 2021 90 DAYS 30 – 59 60 – 89 PAST DUE DAYS DAYS 90 DAYS TOTAL TOTAL AND STILL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS ACCRUING (IN THOUSANDS) Commercial and industrial $ 136,471 $ 420 $ — $ — $ 420 $ 136,891 $ — Paycheck Protection Program (PPP) 29,260 — — — — 29,260 $ — Commercial loans secured by owner occupied real estate 99,835 192 — 1 193 100,028 — Commercial loans secured by non-owner occupied real estate 432,063 466 — — 466 432,529 — Real estate – residential mortgage 280,054 206 618 833 1,657 281,711 — Consumer 15,557 33 20 — 53 15,610 — Total $ 993,240 $ 1,317 $ 638 $ 834 $ 2,789 $ 996,029 $ — At December 31, 2020 90 DAYS 30 – 59 60 – 89 PAST DUE DAYS DAYS 90 DAYS TOTAL TOTAL AND STILL CURRENT PAST DUE PAST DUE PAST DUE PAST DUE LOANS ACCRUING (IN THOUSANDS) Commercial and industrial $ 148,023 $ 536 $ 2,603 $ — $ 3,139 $ 151,162 $ — Paycheck Protection Program (PPP) 58,344 — — — — 58,344 $ — Commercial loans secured by owner occupied real estate 95,486 — — — — 95,486 — Commercial loans secured by non-owner occupied real estate 399,850 230 671 — 901 400,751 — Real estate – residential mortgage 246,279 776 1,178 1,756 3,710 249,989 — Consumer 16,274 82 — 7 89 16,363 — Total $ 964,256 $ 1,624 $ 4,452 $ 1,763 $ 7,839 $ 972,095 $ — |
Non-Performing Assets Includi_2
Non-Performing Assets Including Troubled Debt Restructurings (TDR) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | |
Schedule of nonperforming assets including trouble debt restructurings | The following table presents information concerning non-performing assets including TDR (in thousands, except percentages): September 30, 2021 December 31, 2020 Non-accrual loans: Commercial and industrial $ 2,199 $ 16 Commercial loans secured by owner occupied real estate 1 — Commercial loans secured by non-owner occupied real estate 6 8 Real estate – residential mortgage 905 2,469 Consumer — 7 Total 3,111 2,500 Other real estate owned and repossessed assets: Consumer 8 — Total 8 — TDR’s not in non-accrual: Commercial and industrial — 831 Total — 831 Total non-performing assets including TDR $ 3,119 $ 3,331 Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned and repossessed assets 0.31 % 0.34 % |
Schedule of interest income on non accrual loans | The following table sets forth, for the periods indicated, (1) the gross interest income that would have been recorded if non-accrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination if held for part of the period, (2) the amount of interest income actually recorded on such loans, and (3) the net reduction in interest income attributable to such loans (in thousands). Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Interest income due in accordance with original terms $ 35 $ 22 $ 96 $ 60 Interest income recorded (3) — (3) — Net reduction in interest income $ 32 $ 22 $ 93 $ 60 |
Schedule of troubled debt restructurings on financing receivables | The Company had no loans modified as TDRs during the three-month period ended September 30, 2021. The following table details the loan modified as a TDR during the nine-month period ended September 30, 2021 (dollars in thousands). Loans in non-accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 480 Subsequent modification of a TDR - Extension of maturity date with a below market interest rate The following table details the loan modified as a TDR during the three-month period ended September 30, 2020 (dollars in thousands). Loans in accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 47 Extension of maturity date with a below market interest rate The following table details the loans modified as TDRs during the nine-month period ended September 30, 2020 (dollars in thousands). Loans in accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 750 Subsequent modification of a TDR - Extension of maturity date with a below market interest rate Commercial and industrial 1 47 Extension of maturity date with a below market interest rate |
Summary of loans for which payment relief has been requested related to COVID-19 | At September 30, 2021 At December 31, 2020 % of Outstanding % of Outstanding Balance Non-PPP Loans Balance Non-PPP Loans (in thousands) (in thousands) CRE/Commercial $ 14,847 2.1 % $ 47,037 7.0 % Home Equity/Consumer 46 0.1 83 0.1 Residential Mortgage 838 0.5 1,943 1.3 Total $ 15,731 1.6 $ 49,063 5.3 |
Summary of deferral of principal and interest payments | At September 30, 2021 At December 31, 2020 Number of Loans Balance Number of Loans Balance (in thousands) (in thousands) Type of Payment Relief Interest only payments 5 $ 4,975 11 $ 26,900 Complete payment deferrals 22 10,756 59 22,163 Total 27 $ 15,731 70 $ 49,063 |
Short-Term Borrowings, Advanc_2
Short-Term Borrowings, Advances from Federal Home Loan Bank and Subordinated Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Short-Term Borrowings, Advances from Federal Home Loan Bank and Subordinated Debt | |
Schedule of federal home loan bank borrowings | Total short-term and Federal Home Loan Bank (FHLB) borrowings and advances consist of the following (in thousands, except percentages): At September 30, 2021 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ — — % FHLB Advances 2021 3,000 2.94 2022 20,888 2.03 2023 15,568 1.59 2024 4,197 1.19 Total FHLB advances 43,653 1.85 Total short-term and FHLB borrowings $ 43,653 1.85 % At December 31, 2020 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ 24,702 0.41 % FHLB Advances 2021 24,336 1.00 2022 20,888 2.03 2023 15,568 1.59 2024 4,197 1.19 Total FHLB advances 64,989 1.48 Total short-term and FHLB borrowings $ 89,691 1.19 % |
Lease Commitments (Tables)
Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Lease Commitments | |
Schedule of lease cost associated with both operating and financing leases | The following table presents the lease cost associated with both operating and financing leases for the three and nine month periods ending September 30, 2021 and 2020 (in thousands). Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Lease cost Financing lease cost: Amortization of right-of-use asset $ 68 $ 68 $ 204 $ 203 Interest expense 26 28 80 85 Operating lease cost 29 29 87 87 Total lease cost $ 123 $ 125 $ 371 $ 375 |
Schedule of weighted average discount rates and the remaining term of the leases | The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at September 30, 2021 and December 31, 2020. September 30, 2021 December 31, 2020 Operating Financing Operating Financing Weighted-average remaining term (years) 11.1 15.6 11.4 16.0 Weighted-average discount rate 3.52 % 3.55 % 3.49 % 3.52 % |
Schedule of reconciliation to the discounted amount recorded on the consolidated balance sheets | The following table presents the undiscounted cash flows due related to operating and financing leases, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets. September 30, 2021 OPERATING FINANCING (IN THOUSANDS) Undiscounted cash flows due: Within 1 year $ 110 $ 319 After 1 year but within 2 years 69 320 After 2 years but within 3 years 69 253 After 3 years but within 4 years 69 252 After 4 years but within 5 years 69 198 After 5 years 470 2,623 Total undiscounted cash flows 856 3,965 Discount on cash flows (151) (1,012) Total lease liabilities $ 705 $ 2,953 December 31, 2020 OPERATING FINANCING (IN THOUSANDS) Undiscounted cash flows due: Within 1 year $ 120 $ 316 After 1 year but within 2 years 98 320 After 2 years but within 3 years 69 309 After 3 years but within 4 years 69 249 After 4 years but within 5 years 69 248 After 5 years 520 2,760 Total undiscounted cash flows 945 4,202 Discount on cash flows (169) (1,093) Total lease liabilities $ 776 $ 3,109 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Loss | |
Schedule of accumulated other comprehensive loss, net of tax | The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three months ended September 30, 2021 Three months ended September 30, 2020 Net Net Unrealized Unrealized Gains and Gains and Losses on Defined Losses on Defined Investment Benefit Investment Benefit Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ 2,863 $ (12,180) $ (9,317) $ 3,398 $ (17,469) $ (14,071) Other comprehensive income (loss) before reclassifications (466) 1,219 753 113 (483) (370) Amounts reclassified from accumulated other comprehensive loss — 694 694 — 483 483 Net current period other comprehensive income (loss) (466) 1,913 1,447 113 — 113 Ending balance $ 2,397 $ (10,267) $ (7,870) $ 3,511 $ (17,469) $ (13,958) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. Nine months ended September 30, 2021 Nine months ended September 30, 2020 Net Net Unrealized Unrealized Gains and Gains and Losses on Defined Losses on Defined Investment Benefit Investment Benefit Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ 3,539 $ (16,737) $ (13,198) $ 1,715 $ (17,886) $ (16,171) Other comprehensive income (loss) before reclassifications (1,076) 4,140 3,064 1,796 (1,031) 765 Amounts reclassified from accumulated other comprehensive loss (66) 2,330 2,264 — 1,448 1,448 Net current period other comprehensive income (loss) (1,142) 6,470 5,328 1,796 417 2,213 Ending balance $ 2,397 $ (10,267) $ (7,870) $ 3,511 $ (17,469) $ (13,958) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. |
Schedule of reclassification out of accumulated other comprehensive loss | The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the three and nine months ended September 30, 2021 and 2020 (in thousands): Amount reclassified from accumulated other comprehensive loss (1) For the three For the three Details about accumulated other months ended months ended Affected line item in the comprehensive loss components September 30, 2021 September 30, 2020 statement of operations Amortization of estimated defined benefit pension plan loss (2) $ 879 $ 611 Other expense (185) (128) Provision for income taxes $ 694 $ 483 Total reclassifications for the period $ 694 $ 483 (1) Amounts in parentheses indicate credits. (2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 18 for additional details). Amount reclassified from accumulated other comprehensive loss (1) For the nine For the nine Details about accumulated other months ended months ended Affected line item in the comprehensive loss components September 30, 2021 September 30, 2020 statement of operations Realized gains on sale of securities $ (84) $ — Net realized gains on investment securities 18 — Provision for income taxes $ (66) $ — Amortization of estimated defined benefit pension plan loss (2) $ 2,949 $ 1,833 Other expense (619) (385) Provision for income taxes $ 2,330 $ 1,448 Total reclassifications for the period $ 2,264 $ 1,448 (1) Amounts in parentheses indicate credits. (2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 18 for additional details). |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Regulatory Capital | |
Schedule of compliance with regulatory capital requirements under banking regulations | change this conclusion as of such date. To be categorized as well capitalized, the Bank must maintain minimum total capital, common equity tier 1 capital, tier 1 capital, and tier 1 leverage ratios as set forth in the table. At September 30, 2021 TO BE WELL MINIMUM CAPITALIZED REQUIRED UNDER FOR PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO (IN THOUSANDS, EXCEPT RATIOS) Total Capital (To Risk Weighted Assets) $ 147,516 13.61 % $ 132,583 12.28 % 8.00 % 10.00 % Tier 1 Common Equity (To Risk Weighted Assets) 107,829 9.95 119,496 11.07 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 107,829 9.95 119,496 11.07 6.00 8.00 Tier 1 Capital (To Average Assets) 107,829 7.87 119,496 8.87 4.00 5.00 At December 31, 2020 TO BE WELL MINIMUM CAPITALIZED REQUIRED UNDER FOR PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO (IN THOUSANDS, EXCEPT RATIOS) Total Capital (To Risk Weighted Assets) $ 135,777 12.93 % $ 125,182 11.95 % 8.00 % 10.00 % Tier 1 Common Equity (To Risk Weighted Assets) 105,653 10.06 112,965 10.78 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 117,556 11.20 112,965 10.78 6.00 8.00 Tier 1 Capital (To Average Assets) 117,556 9.29 112,965 9.03 4.00 5.00 * Applies to the Bank only. |
Derivative Hedging Instruments
Derivative Hedging Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Hedging Instruments | |
Schedule of interest rate swap transactions | The following table summarizes the interest rate swap transactions that impacted the Company’s first nine months of 2021 and 2020 performance (in thousands, except percentages). At September 30, 2021 INCREASE AGGREGATE WEIGHTED (DECREASE) NOTIONAL AVERAGE RATE REPRICING IN INTEREST HEDGE TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE Swap assets N/A $ 55,061 2.59 % Monthly $ (602) Swap liabilities N/A (55,061) (2.59) Monthly 602 Net exposure — — — At September 30, 2020 INCREASE AGGREGATE WEIGHTED (DECREASE) NOTIONAL AVERAGE RATE REPRICING IN INTEREST HEDGE TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE Swap assets N/A $ 36,726 3.06 % Monthly $ (345) Swap liabilities N/A (36,726) (3.06) Monthly 345 Net exposure — — — |
Segment Results (Tables)
Segment Results (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Results | |
Schedule of business segments | The contribution of the major business segments to the Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Three months ended Nine months ended September 30, 2021 September 30, 2021 Total revenue Net income (loss) Total revenue Net income (loss) Community banking $ 12,515 $ 2,801 $ 38,605 $ 9,059 Wealth management 3,154 831 9,082 2,227 Investment/Parent (2,027) (2,201) (5,473) (6,066) Total $ 13,642 $ 1,431 $ 42,214 $ 5,220 Three months ended Nine months ended September 30, 2020 September 30, 2020 Total revenue Net income (loss) Total revenue Net income (loss) Community banking $ 12,263 $ 2,509 $ 36,096 $ 7,788 Wealth management 2,620 547 7,672 1,510 Investment/Parent (1,788) (1,978) (4,850) (5,392) Total $ 13,095 $ 1,078 $ 38,918 $ 3,906 |
Pension Benefits (Tables)
Pension Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Pension Benefits | |
Schedule of net periodic pension cost | Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 COMPONENTS OF NET PERIODIC BENEFIT COST: Service cost $ 429 $ 419 $ 1,287 $ 1,257 Interest cost 221 320 664 960 Expected return on plan assets (1,004) (811) (3,012) (2,433) Recognized net actuarial loss 610 611 1,829 1,833 Settlement charge 269 — 1,120 — Net periodic pension cost $ 525 $ 539 $ 1,888 $ 1,617 |
Disclosures about Fair Value _2
Disclosures about Fair Value Measurements and Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosures about Fair Value Measurements and Financial Instruments | |
Schedule of assets and liabilities measured and recorded at fair value on a recurring basis | The following table presents the assets and liabilities measured and reported on the Consolidated Balance Sheets on a recurring basis at their fair value as of September 30, 2021 and December 31, 2020, by level within the fair value hierarchy (in thousands). Fair Value Measurements at September 30, 2021 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Equity securities $ 516 $ 516 $ — $ — Available for sale securities: U.S. Agency 7,635 — 7,635 — U.S. Agency mortgage-backed securities 78,760 — 78,760 — Municipal 20,302 — 20,302 — Corporate bonds 53,656 — 53,656 — Interest rate swap asset 1,574 — 1,574 — Interest rate swap liability (1,574) — (1,574) — Risk participation agreement (8) — (8) — Fair Value Measurements at December 31, 2020 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Equity securities $ 443 $ 443 $ — $ — Available for sale securities: U.S. Agency 3,152 — 3,152 — U.S. Agency mortgage-backed securities 67,913 — 67,913 — Municipal 20,348 — 20,348 — Corporate bonds 52,752 — 52,752 — Interest rate swap asset 3,320 — 3,320 — Interest rate swap liability (3,320) — (3,320) — (1) Included within other assets on the Consolidated Balance Sheets. (2) Included within other liabilities on the Consolidated Balance Sheets. |
Schedule of assets measured and recorded at fair value on a non-recurring basis | Assets measured and recorded at fair value on a non-recurring basis are summarized below (in thousands, except range data): Fair Value Measurements September 30, 2021 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Impaired loans $ 1 $ — $ — $ 1 Other real estate owned and repossessed assets 8 — — 8 Fair Value Measurements December 31, 2020 TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Impaired loans $ 258 $ — $ — $ 258 Quantitative Information About Level 3 Fair Value Measurements Valuation Unobservable September 30, 2021 Fair Value Techniques Input Range (Wgtd Avg) Impaired loans $ 1 Appraisal of Appraisal 0% to 100% (89%) collateral (1) adjustments(2) Other real estate owned and repossessed assets 8 Appraisal of Appraisal 30% (30%) collateral (1) adjustments(2) Liquidation 3% (3%) expenses Quantitative Information About Level 3 Fair Value Measurements Valuation Unobservable December 31, 2020 Fair Value Techniques Input Range (Wgtd Avg) Impaired loans $ 258 Appraisal of Appraisal 0% to 100% (3%) collateral (1) adjustments(2) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Also includes qualitative adjustments by management and estimated liquidation expenses. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions. |
Schedule of estimated fair value and recorded carrying value | The estimated fair values based on US GAAP measurements and recorded carrying values at September 30, 2021 and December 31, 2020, for the remaining financial instruments not required to be measured or reported at fair value were as follows: September 30, 2021 Carrying Value Fair Value (Level 1) (Level 2) (Level 3) (IN THOUSANDS) FINANCIAL ASSETS: Investment securities – HTM $ 53,942 $ 56,070 $ — $ 53,071 $ 2,999 Loans, net of allowance for loan loss and unearned income 983,905 988,679 — — 988,679 FINANCIAL LIABILITIES: Deposits with stated maturities 303,025 305,424 — — 305,424 All other borrowings (1) 70,253 71,207 — — 71,207 December 31, 2020 Carrying Value Fair Value (Level 1) (Level 2) (Level 3) (IN THOUSANDS) FINANCIAL ASSETS: Investment securities – HTM $ 44,222 $ 47,106 $ — $ 44,108 $ 2,998 Loans held for sale 6,250 6,428 6,428 — — Loans, net of allowance for loan loss and unearned income 960,750 969,433 — — 969,433 FINANCIAL LIABILITIES: Deposits with stated maturities 311,064 314,845 — — 314,845 All other borrowings (1) 85,493 90,907 — — 90,907 (1) All other borrowings include advances from Federal Home Loan Bank, guaranteed junior subordinated deferrable interest debentures, and subordinated debt. |
Branch Acquisition (Tables)
Branch Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Branch Acquisition | |
Schedule of assets acquired and liabilities assumed | The following table reflects the basis of assets acquired and liabilities assumed from Riverview Bank as of the acquisition date (in thousands). Consideration received Cash received $ 40,154 Fair value of assets acquired Cash and cash equivalents $ 258 Loans 36 Premises and equipment 158 Core deposit intangible 177 Other assets 19 648 Fair value of liabilities assumed Deposits (42,432) Other liabilities (37) (42,469) Total fair value of identifiable net assets (41,821) Goodwill resulting from acquisition $ 1,667 |
Schedule of future amortization expense | As of September 30, 2021, the current year and estimated future amortization expense for the core deposit intangible associated with the Riverview branch acquisition is as follows (in thousands): 2021 $ 19 2022 30 2023 27 2024 24 2025 21 After five years 56 $ 177 |
Principles of Consolidation (De
Principles of Consolidation (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021USD ($)location | May 21, 2021USD ($) | Dec. 31, 2020USD ($) | |
Number of locations in Pennsylvania | location | 16 | ||
Number of locations in state Maryland | location | 1 | ||
Assets under Management, Carrying Amount | $ 2,600,000 | $ 2,500,000 | |
Deposits | $ 4,285 | $ 2,585 | |
Citizen's Neighborhood Bank Branch | |||
Deposits acquired at premium percentage | 3.71% | ||
Deposits acquired at premium amount | $ 1,600 | ||
Citizen's Neighborhood Bank Branch | |||
Deposits | $ 42,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Non-interest income (in-scope of Topic 606) | $ 3,945 | $ 3,295 | $ 11,226 | $ 9,568 |
Non-interest income (out-of-scope of topic 606) | 471 | 1,009 | 2,203 | 2,335 |
Total Non-Interest Income | 4,416 | 4,304 | 13,429 | 11,903 |
Wealth management fees. | ||||
Non-interest income (in-scope of Topic 606) | 3,137 | 2,604 | 9,031 | 7,629 |
Service charges on deposit accounts | ||||
Non-interest income (in-scope of Topic 606) | 260 | 206 | 685 | 668 |
Other | ||||
Non-interest income (in-scope of Topic 606) | $ 548 | $ 485 | $ 1,510 | $ 1,271 |
Revenue Recognition - Additiona
Revenue Recognition - Additional information (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Percentage Of Entity Revenue | 76.80% |
Other assets. | |
Wealth management fees receivable | $ 825,000 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net income | $ 1,431 | $ 1,078 | $ 5,220 | $ 3,906 |
Denominator: | ||||
Weighted average common shares outstanding (basic) | 17,075 | 17,059 | 17,071 | 17,051 |
Effect of stock options | 39 | 3 | 43 | 12 |
Weighted average common shares outstanding (diluted) | 17,114 | 17,062 | 17,114 | 17,063 |
Earnings per common share: | ||||
Basic | $ 0.08 | $ 0.06 | $ 0.31 | $ 0.23 |
Diluted | $ 0.08 | $ 0.06 | $ 0.31 | $ 0.23 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional information (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 22,000 | 189,259 | 22,000 | 69,759 |
Maximum | ||||
Exercise price | $ 4.22 | $ 4.22 | $ 4.22 | $ 4.22 |
Minimum | ||||
Exercise price | $ 4 | $ 2.96 | $ 4 | $ 3.20 |
Consolidated Statement of Cas_3
Consolidated Statement of Cash Flows - Non-cash assets acquired and liabilities assumed (Details) - Riverview Bank $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Non-cash assets acquired | |
Loans | $ 36 |
Other premises and equipment, net | 158 |
Intangible assets | 1,844 |
Total non-cash assets acquired | 2,038 |
Non-cash liabilities assumed | |
Non-interest bearing deposits | (7,372) |
Interest bearing deposits | (35,060) |
Other liabilities | (37) |
Total liabilities assumed | (42,469) |
Cash and cash equivalents acquired | $ 258 |
Consolidated Statement of Cas_4
Consolidated Statement of Cash Flows - Additional information (Details) | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($)lease | Dec. 31, 2020USD ($) | |
Income tax payments | $ 200,000 | $ 315,000 | |
Total interest payments | 6,898,000 | 8,726,000 | |
Non-cash transfers to other real estate owned | 8,000 | $ 40,000 | |
Number of financial leases. | lease | 2 | ||
Finance Lease, Asset | 2,752,000 | $ 2,956,000 | |
Finance Lease, Liability | $ 2,953,000 | $ 3,109,000 | |
Office equipment leased | |||
Number of financial leases. | lease | 1 | ||
Finance Lease, Asset | $ 149,000 | ||
Finance Lease, Liability | $ 149,000 | ||
Branch location | |||
Number of financial leases. | lease | 1 |
Investment Securities - Cost ba
Investment Securities - Cost basis and fair values of investment securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | $ 157,318 | $ 139,684 |
Investment securities available for sale, Gross Unrealized Gains | 3,996 | 4,728 |
Investment securities available for sale, Gross Unrealized Losses | (961) | (247) |
Available for Sale, Fair Value, Total | 160,353 | 144,165 |
Investment securities held to maturity, Cost Basis | 53,942 | 44,222 |
Investment securities held to maturity, Gross Unrealized Gains | 2,325 | 2,937 |
Investment securities held to maturity, Gross Unrealized Losses | (197) | (53) |
Held to Maturity, Fair Value, Total | 56,070 | 47,106 |
U.S. Agency | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 7,536 | 2,971 |
Investment securities available for sale, Gross Unrealized Gains | 127 | 181 |
Investment securities available for sale, Gross Unrealized Losses | (28) | |
Available for Sale, Fair Value, Total | 7,635 | 3,152 |
Investment securities held to maturity, Cost Basis | 2,500 | |
Held to Maturity, Fair Value, Total | 2,500 | |
U.S. Agency mortgage-backed securities | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 77,963 | 65,398 |
Investment securities available for sale, Gross Unrealized Gains | 1,610 | 2,533 |
Investment securities available for sale, Gross Unrealized Losses | (813) | (18) |
Available for Sale, Fair Value, Total | 78,760 | 67,913 |
Investment securities held to maturity, Cost Basis | 11,078 | 8,119 |
Investment securities held to maturity, Gross Unrealized Gains | 272 | 369 |
Investment securities held to maturity, Gross Unrealized Losses | (101) | |
Held to Maturity, Fair Value, Total | 11,249 | 8,488 |
Municipal | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 19,258 | 19,000 |
Investment securities available for sale, Gross Unrealized Gains | 1,062 | 1,348 |
Investment securities available for sale, Gross Unrealized Losses | (18) | |
Available for Sale, Fair Value, Total | 20,302 | 20,348 |
Investment securities held to maturity, Cost Basis | 32,856 | 30,076 |
Investment securities held to maturity, Gross Unrealized Gains | 1,973 | 2,455 |
Investment securities held to maturity, Gross Unrealized Losses | (95) | (49) |
Held to Maturity, Fair Value, Total | 34,734 | 32,482 |
Corporate bonds | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities available for sale, Cost Basis | 52,561 | 52,315 |
Investment securities available for sale, Gross Unrealized Gains | 1,197 | 666 |
Investment securities available for sale, Gross Unrealized Losses | (102) | (229) |
Available for Sale, Fair Value, Total | 53,656 | 52,752 |
Corporate bonds and other securities | ||
Information concerning investments with unrealized gains and losses | ||
Investment securities held to maturity, Cost Basis | 7,508 | 6,027 |
Investment securities held to maturity, Gross Unrealized Gains | 80 | 113 |
Investment securities held to maturity, Gross Unrealized Losses | (1) | (4) |
Held to Maturity, Fair Value, Total | $ 7,587 | $ 6,136 |
Investment Securities - Informa
Investment Securities - Information concerning investments with unrealized losses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | $ 66,962 | $ 19,477 |
Less than 12 months, Unrealized Losses | (1,098) | (179) |
12 months or longer, Fair Value | 2,907 | 8,803 |
12 months and longer, Unrealized Losses | (60) | (121) |
Total, Fair Value | 69,869 | 28,280 |
Total, Unrealized Losses | (1,158) | (300) |
U.S. Agency | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 5,971 | |
Less than 12 months, Unrealized Losses | (28) | |
Total, Fair Value | 5,971 | |
Total, Unrealized Losses | (28) | |
U.S. Agency mortgage-backed securities | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 45,487 | 6,394 |
Less than 12 months, Unrealized Losses | (909) | (17) |
12 months or longer, Fair Value | 462 | 123 |
12 months and longer, Unrealized Losses | (5) | (1) |
Total, Fair Value | 45,949 | 6,517 |
Total, Unrealized Losses | (914) | (18) |
Municipal | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 7,053 | |
Less than 12 months, Unrealized Losses | (113) | |
12 months or longer, Fair Value | 751 | |
12 months and longer, Unrealized Losses | (49) | |
Total, Fair Value | 7,053 | 751 |
Total, Unrealized Losses | (113) | (49) |
Corporate bonds and other securities | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 8,451 | 13,083 |
Less than 12 months, Unrealized Losses | (48) | (162) |
12 months or longer, Fair Value | 2,445 | 7,929 |
12 months and longer, Unrealized Losses | (55) | (71) |
Total, Fair Value | 10,896 | 21,012 |
Total, Unrealized Losses | $ (103) | $ (233) |
Investment Securities - Total i
Investment Securities - Total investment securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | $ 3,150 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 34,390 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 44,850 | |
Available for Sale, Cost Basis, After 10 years but within 15 years | 13,608 | |
Available for Sale, Cost Basis, Over 15 years | 61,320 | |
Available for Sale, Cost Basis, Total | 157,318 | $ 139,684 |
Available for Sale, Fair Value, Within 1 year | 3,188 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 35,443 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 46,275 | |
Available for Sale, Fair Value, After 10 years but within 15 years | 14,082 | |
Available for Sale, Fair Value, Over 15 years | 61,365 | |
Available for Sale, Fair Value, Total | 160,353 | 144,165 |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 12,293 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 23,084 | |
Held to Maturity, Cost Basis, After 10 years but within 15 years | 9,877 | |
Held to Maturity, Cost Basis, Over 15 years | 8,688 | |
Held to Maturity, Cost Basis, Total | 53,942 | 44,222 |
Held to Maturity, Fair Value, After 1 year but within 5 years | 12,768 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 24,509 | |
Held to Maturity, Fair Value, After 10 years but within 15 years | 10,105 | |
Held to Maturity, Fair Value, Over 15 years | 8,688 | |
Held to Maturity, Fair Value, Total | $ 56,070 | $ 47,106 |
Investment Securities - Additio
Investment Securities - Additional information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)position | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)position | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Investment Securities: | |||||
Proceeds from sales of investment securities - available for sale | $ 0 | $ 0 | $ 960,000 | $ 0 | |
Gross investment gains | 84,000 | ||||
Book value of securities available for sale and held to maturity | $ 119,809,000 | $ 119,809,000 | $ 111,694,000 | ||
Number of positions | position | 73 | 73 | |||
Premium percentage on mortgage backed securities purchased | 101.10% | ||||
Consolidated investment securities portfolio modified, years | 37 months 3 days | 25 months 12 days | |||
Standard & Poor's, AAA Rating [Member] | |||||
INVESTMENT SECURITIES | |||||
Portfolio rated | 47.60% | 47.60% | 42.20% | ||
Securities rated below A [Member] | |||||
INVESTMENT SECURITIES | |||||
Portfolio rated | 15.00% | 15.00% | 15.20% | ||
Maximum | |||||
Investment Securities: | |||||
Consolidated investment securities portfolio modified, years | 60 months |
Loans - Loan Portfolio (Details
Loans - Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
LOANS | ||
Loans, net of unearned income | $ 996,029 | $ 972,095 |
Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans, net of unearned income | 29,260 | 58,344 |
Commercial and Industrial | ||
LOANS | ||
Loans, net of unearned income | 136,891 | 151,162 |
Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans, net of unearned income | 29,260 | 58,344 |
Commercial loans secured by owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 100,028 | 95,486 |
Commercial loans secured by non-owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 432,529 | 400,751 |
Real estate-residential mortgage | ||
LOANS | ||
Loans, net of unearned income | 281,711 | 249,989 |
Consumer. | ||
LOANS | ||
Loans, net of unearned income | 15,610 | 16,363 |
Commercial | ||
LOANS | ||
Loans, net of unearned income | 698,708 | 705,743 |
Commercial | Commercial and Industrial | ||
LOANS | ||
Loans, net of unearned income | 136,891 | 151,162 |
Commercial | Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans, net of unearned income | 29,260 | 58,344 |
Commercial | Commercial loans secured by owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 100,028 | 95,486 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 432,529 | 400,751 |
Consumer | ||
LOANS | ||
Loans, net of unearned income | 297,321 | 266,352 |
Consumer | Real estate-residential mortgage | ||
LOANS | ||
Loans, net of unearned income | 281,711 | 249,989 |
Consumer | Consumer. | ||
LOANS | ||
Loans, net of unearned income | $ 15,610 | $ 16,363 |
Loans - Commercial real estate
Loans - Commercial real estate loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
LOANS | ||
Loans, net of unearned income | $ 996,029 | $ 972,095 |
Commercial and Industrial | ||
LOANS | ||
Loans, net of unearned income | 136,891 | 151,162 |
Commercial and Industrial | 1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 1,291 | 1,450 |
Commercial and Industrial | Office | ||
LOANS | ||
Loans, net of unearned income | 31,051 | 33,525 |
Commercial and Industrial | Retail | ||
LOANS | ||
Loans, net of unearned income | 11,993 | 8,080 |
Commercial and Industrial | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 77,770 | 87,021 |
Commercial and Industrial | Hotels | ||
LOANS | ||
Loans, net of unearned income | 197 | 329 |
Commercial and Industrial | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 555 | 769 |
Commercial and Industrial | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 109 | 190 |
Commercial and Industrial | Other. | ||
LOANS | ||
Loans, net of unearned income | 13,925 | 19,798 |
Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans, net of unearned income | 29,260 | 58,344 |
Paycheck Protection Program (PPP) | Office | ||
LOANS | ||
Loans, net of unearned income | 965 | 6,872 |
Paycheck Protection Program (PPP) | Retail | ||
LOANS | ||
Loans, net of unearned income | 487 | 1,542 |
Paycheck Protection Program (PPP) | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 12,674 | 26,222 |
Paycheck Protection Program (PPP) | Hotels | ||
LOANS | ||
Loans, net of unearned income | 1,764 | 837 |
Paycheck Protection Program (PPP) | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 8,544 | 13,479 |
Paycheck Protection Program (PPP) | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 57 | 46 |
Paycheck Protection Program (PPP) | Other. | ||
LOANS | ||
Loans, net of unearned income | 4,769 | 9,346 |
Commercial loans secured by owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 100,028 | 95,486 |
Commercial loans secured by owner occupied real estate | 1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 98 | 105 |
Commercial loans secured by owner occupied real estate | Multifamily/apartments/student housing | ||
LOANS | ||
Loans, net of unearned income | 120 | 469 |
Commercial loans secured by owner occupied real estate | Office | ||
LOANS | ||
Loans, net of unearned income | 9,184 | 10,095 |
Commercial loans secured by owner occupied real estate | Retail | ||
LOANS | ||
Loans, net of unearned income | 20,733 | 21,180 |
Commercial loans secured by owner occupied real estate | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 21,279 | 18,255 |
Commercial loans secured by owner occupied real estate | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 4,269 | 4,390 |
Commercial loans secured by owner occupied real estate | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 7,706 | 3,307 |
Commercial loans secured by owner occupied real estate | Mixed use | ||
LOANS | ||
Loans, net of unearned income | 3,271 | 2,411 |
Commercial loans secured by owner occupied real estate | Other. | ||
LOANS | ||
Loans, net of unearned income | 33,368 | 35,274 |
Commercial loans secured by non-owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 432,529 | 400,751 |
Commercial loans secured by non-owner occupied real estate | 1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 7,266 | 6,139 |
Commercial loans secured by non-owner occupied real estate | Multifamily/apartments/student housing | ||
LOANS | ||
Loans, net of unearned income | 76,341 | 66,879 |
Commercial loans secured by non-owner occupied real estate | Office | ||
LOANS | ||
Loans, net of unearned income | 33,486 | 37,164 |
Commercial loans secured by non-owner occupied real estate | Retail | ||
LOANS | ||
Loans, net of unearned income | 144,603 | 124,325 |
Commercial loans secured by non-owner occupied real estate | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 44,816 | 38,814 |
Commercial loans secured by non-owner occupied real estate | Hotels | ||
LOANS | ||
Loans, net of unearned income | 42,420 | 41,779 |
Commercial loans secured by non-owner occupied real estate | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 1,785 | 1,925 |
Commercial loans secured by non-owner occupied real estate | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 19 | 38 |
Commercial loans secured by non-owner occupied real estate | Mixed use | ||
LOANS | ||
Loans, net of unearned income | 61,281 | 65,585 |
Commercial loans secured by non-owner occupied real estate | Other. | ||
LOANS | ||
Loans, net of unearned income | 20,512 | 18,103 |
Commercial | ||
LOANS | ||
Loans, net of unearned income | 698,708 | 705,743 |
Commercial | 1-4 unit residential | ||
LOANS | ||
Loans, net of unearned income | 8,655 | 7,694 |
Commercial | Multifamily/apartments/student housing | ||
LOANS | ||
Loans, net of unearned income | 76,461 | 67,348 |
Commercial | Office | ||
LOANS | ||
Loans, net of unearned income | 74,686 | 87,656 |
Commercial | Retail | ||
LOANS | ||
Loans, net of unearned income | 177,816 | 155,127 |
Commercial | Industrial/manufacturing/warehouse | ||
LOANS | ||
Loans, net of unearned income | 156,539 | 170,312 |
Commercial | Hotels | ||
LOANS | ||
Loans, net of unearned income | 44,381 | 42,945 |
Commercial | Eating and drinking places | ||
LOANS | ||
Loans, net of unearned income | 15,153 | 20,563 |
Commercial | Amusement and recreation | ||
LOANS | ||
Loans, net of unearned income | 7,891 | 3,581 |
Commercial | Mixed use | ||
LOANS | ||
Loans, net of unearned income | 64,552 | 67,996 |
Commercial | Other. | ||
LOANS | ||
Loans, net of unearned income | 72,574 | 82,521 |
Commercial | Commercial and Industrial | ||
LOANS | ||
Loans, net of unearned income | 136,891 | 151,162 |
Commercial | Paycheck Protection Program (PPP) | ||
LOANS | ||
Loans, net of unearned income | 29,260 | 58,344 |
Commercial | Commercial loans secured by owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 100,028 | 95,486 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||
LOANS | ||
Loans, net of unearned income | 432,529 | 400,751 |
Consumer | ||
LOANS | ||
Loans, net of unearned income | $ 297,321 | $ 266,352 |
Loans - Additional information
Loans - Additional information (Details) | Mar. 27, 2020USD ($)item | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
LOANS | ||||||
Loans, net of unearned income | $ 996,029,000 | $ 996,029,000 | $ 972,095,000 | |||
Real estate-construction loans, percentage | 5.90% | 5.90% | 7.00% | |||
Loan balances net of unearned income | $ 1,062,000 | $ 1,062,000 | $ 1,202,000 | |||
Unrecognized fee income from the PPP loans originations | 602,000 | 602,000 | 755,000 | |||
Fee Income from Loans | 9,830,000 | $ 9,724,000 | 30,440,000 | $ 30,504,000 | ||
Paycheck Protection Program (PPP) | ||||||
LOANS | ||||||
Loans, net of unearned income | 29,260,000 | 29,260,000 | $ 58,344,000 | |||
Unrecognized fee income from the PPP loans originations | 602,000 | $ 602,000 | ||||
Number of times of average monthly payroll costs | item | 2.5 | |||||
Loan amount | $ 10,000,000 | |||||
Interest rate | 1.00% | |||||
Percentage of guarantee by SBA | 100.00% | |||||
Number of loans | 208 | |||||
Fee Income from Loans | $ 273,000 | $ 1,900,000 | ||||
Paycheck Protection Program (PPP) | originated prior to June 5, 2020 | ||||||
LOANS | ||||||
Loan term | 2 years | |||||
Paycheck Protection Program (PPP) | originated after June 5, 2020 | ||||||
LOANS | ||||||
Loan term | 5 years | |||||
Paycheck Protection Program (PPP) | Minimum | ||||||
LOANS | ||||||
Percentage of loan proceeds used for payroll expenses | 60.00% |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loan losses by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | $ 11,752 | $ 9,699 | $ 11,345 | $ 9,279 |
Charge-Offs | (50) | (144) | (249) | (417) |
Recoveries | 72 | 54 | 178 | 122 |
Provision (Credit) | 350 | 675 | 850 | 1,300 |
Balance at End of Period | 12,124 | 10,284 | 12,124 | 10,284 |
Allocation for general risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | 1,172 | 961 | 1,093 | 924 |
Charge-Offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision (Credit) | 36 | 52 | 115 | 89 |
Balance at End of Period | 1,208 | 1,013 | 1,208 | 1,013 |
Commercial | Commercial. | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | 3,534 | 3,784 | 3,472 | 3,951 |
Charge-Offs | 0 | (111) | (147) | (111) |
Recoveries | 35 | 1 | 52 | 1 |
Provision (Credit) | (445) | (638) | (253) | (805) |
Balance at End of Period | 3,124 | 3,036 | 3,124 | 3,036 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | 5,535 | 3,619 | 5,373 | 3,119 |
Charge-Offs | 0 | 0 | 0 | 0 |
Recoveries | 13 | 10 | 37 | 31 |
Provision (Credit) | 670 | 1,261 | 808 | 1,740 |
Balance at End of Period | 6,218 | 4,890 | 6,218 | 4,890 |
Consumer | Real estate-residential mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | 1,388 | 1,216 | 1,292 | 1,159 |
Charge-Offs | 0 | (19) | (17) | (201) |
Recoveries | 8 | 24 | 42 | 46 |
Provision (Credit) | 61 | 4 | 140 | 221 |
Balance at End of Period | 1,457 | 1,225 | 1,457 | 1,225 |
Consumer | Consumer. | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | 123 | 119 | 115 | 126 |
Charge-Offs | (50) | (14) | (85) | (105) |
Recoveries | 16 | 19 | 47 | 44 |
Provision (Credit) | 28 | (4) | 40 | 55 |
Balance at End of Period | $ 117 | $ 120 | $ 117 | $ 120 |
Allowance for Loan Losses - L_2
Allowance for Loan Losses - Loan loss by the primary segments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Loans: | ||||||
Individually evaluated for impairment | $ 2,206 | $ 855 | ||||
Collectively evaluated for impairment | 993,823 | 971,240 | ||||
Total loans | 996,029 | 972,095 | ||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 607 | 104 | ||||
General reserve allocation | 11,517 | 11,241 | ||||
Total allowance for loan losses | 12,124 | $ 11,752 | 11,345 | $ 10,284 | $ 9,699 | $ 9,279 |
Commercial loans secured by non-owner occupied real estate | ||||||
Loans: | ||||||
Total loans | 432,529 | 400,751 | ||||
Real estate-residential mortgage | ||||||
Loans: | ||||||
Total loans | 281,711 | 249,989 | ||||
Consumer. | ||||||
Loans: | ||||||
Total loans | 15,610 | 16,363 | ||||
Allocation for general risk | ||||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 0 | 0 | ||||
General reserve allocation | 1,208 | 1,093 | ||||
Total allowance for loan losses | 1,208 | 1,172 | 1,093 | 1,013 | 961 | 924 |
Commercial | ||||||
Loans: | ||||||
Total loans | 698,708 | 705,743 | ||||
Commercial | Commercial. | ||||||
Loans: | ||||||
Individually evaluated for impairment | 2,200 | 847 | ||||
Collectively evaluated for impairment | 263,979 | 304,145 | ||||
Total loans | 266,179 | 304,992 | ||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 601 | 96 | ||||
General reserve allocation | 2,523 | 3,376 | ||||
Total allowance for loan losses | 3,124 | 3,534 | 3,472 | 3,036 | 3,784 | 3,951 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||||||
Loans: | ||||||
Individually evaluated for impairment | 6 | 8 | ||||
Collectively evaluated for impairment | 432,523 | 400,743 | ||||
Total loans | 432,529 | 400,751 | ||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 6 | 8 | ||||
General reserve allocation | 6,212 | 5,365 | ||||
Total allowance for loan losses | 6,218 | 5,535 | 5,373 | 4,890 | 3,619 | 3,119 |
Consumer | ||||||
Loans: | ||||||
Total loans | 297,321 | 266,352 | ||||
Consumer | Real estate-residential mortgage | ||||||
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 281,711 | 249,989 | ||||
Total loans | 281,711 | 249,989 | ||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 0 | 0 | ||||
General reserve allocation | 1,457 | 1,292 | ||||
Total allowance for loan losses | 1,457 | 1,388 | 1,292 | 1,225 | 1,216 | 1,159 |
Consumer | Consumer. | ||||||
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 15,610 | 16,363 | ||||
Total loans | 15,610 | 16,363 | ||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 0 | 0 | ||||
General reserve allocation | 117 | 115 | ||||
Total allowance for loan losses | $ 117 | $ 123 | $ 115 | $ 120 | $ 119 | $ 126 |
Allowance for Loan Losses - Pre
Allowance for Loan Losses - Present impaired loans by portfolio segment (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | $ 2,206,000 | $ 855,000 |
Related Allowance | 6,000 | 8,000 |
Unpaid Principal Balance | 2,295,000 | 880,000 |
Impaired Loans with Specific Allowance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 2,205,000 | 855,000 |
Related Allowance | 607,000 | 104,000 |
Impaired Loans With No Specific Allowance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 1,000 | 0 |
Commercial | Commercial. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 2,200,000 | 847,000 |
Unpaid Principal Balance | 2,267,000 | 850,000 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 6,000 | 8,000 |
Unpaid Principal Balance | 28,000 | 30,000 |
Commercial | Impaired Loans with Specific Allowance | Commercial. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 2,199,000 | 847,000 |
Related Allowance | 601,000 | 96,000 |
Commercial | Impaired Loans with Specific Allowance | Commercial loans secured by non-owner occupied real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 6,000 | 8,000 |
Related Allowance | 6,000 | 8,000 |
Commercial | Impaired Loans With No Specific Allowance | Commercial. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 1,000 | 0 |
Commercial | Impaired Loans With No Specific Allowance | Commercial loans secured by non-owner occupied real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | $ 0 | $ 0 |
Allowance for Loan Losses - Inv
Allowance for Loan Losses - Investment in impaired loans and related interest income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Average loan balance: | ||||
Average investment in impaired loans | $ 2,240 | $ 847 | $ 1,979 | $ 840 |
Interest income recognized: | ||||
Interest income recognized on a cash basis on impaired loans | 3 | 9 | 15 | 31 |
Commercial | Commercial. | ||||
Average loan balance: | ||||
Average investment in impaired loans | 2,233 | 839 | 1,972 | 832 |
Interest income recognized: | ||||
Interest income recognized on a cash basis on impaired loans | 3 | 9 | 15 | 31 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||||
Average loan balance: | ||||
Average investment in impaired loans | 7 | 8 | 7 | 8 |
Interest income recognized: | ||||
Interest income recognized on a cash basis on impaired loans | $ 0 | $ 0 | $ 0 | $ 0 |
Allowance for Loan Losses - Com
Allowance for Loan Losses - Commercial and commercial real estate loan portfolios (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | $ 996,029 | $ 972,095 |
Paycheck Protection Program (PPP) | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 29,260 | 58,344 |
Commercial loans secured by owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 100,028 | 95,486 |
Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 432,529 | 400,751 |
Commercial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 698,708 | 705,743 |
Commercial | Commercial and industrial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 136,891 | 151,162 |
Commercial | Paycheck Protection Program (PPP) | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 29,260 | 58,344 |
Commercial | Commercial loans secured by owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 100,028 | 95,486 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 432,529 | 400,751 |
Commercial | Pass | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 654,047 | 656,534 |
Commercial | Pass | Commercial and industrial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 127,234 | 134,186 |
Commercial | Pass | Paycheck Protection Program (PPP) | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 29,260 | 58,344 |
Commercial | Pass | Commercial loans secured by owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 97,999 | 92,189 |
Commercial | Pass | Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 399,554 | 371,815 |
Commercial | Special Mention | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 31,677 | 39,856 |
Commercial | Special Mention | Commercial and industrial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 7,294 | 13,722 |
Commercial | Special Mention | Commercial loans secured by owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 915 | 2,154 |
Commercial | Special Mention | Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 23,468 | 23,980 |
Commercial | Substandard | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 11,305 | 9,345 |
Commercial | Substandard | Commercial and industrial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 690 | 3,254 |
Commercial | Substandard | Commercial loans secured by owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 1,114 | 1,143 |
Commercial | Substandard | Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 9,501 | 4,948 |
Commercial | Doubtful | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 1,679 | 8 |
Commercial | Doubtful | Commercial and industrial | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 1,673 | |
Commercial | Doubtful | Commercial loans secured by non-owner occupied real estate | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 6 | 8 |
Paycheck Protection Program (PPP) | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | $ 29,260 | $ 58,344 |
Allowance for Loan Losses - Res
Allowance for Loan Losses - Residential and consumer portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | $ 996,029 | $ 972,095 |
Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 297,321 | 266,352 |
Real estate-residential mortgage | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 281,711 | 249,989 |
Real estate-residential mortgage | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 281,711 | 249,989 |
Consumer. | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 15,610 | 16,363 |
Consumer. | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 15,610 | 16,363 |
Performing | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 296,416 | 263,876 |
Performing | Real estate-residential mortgage | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 280,806 | 247,520 |
Performing | Consumer. | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 15,610 | 16,356 |
Non-performing | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 905 | 2,476 |
Non-performing | Real estate-residential mortgage | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 905 | 2,469 |
Non-performing | Consumer. | Consumer | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | $ 0 | $ 7 |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit quality of the loan portfolio (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | $ 993,240,000 | $ 964,256,000 |
Total Past Due | 2,789,000 | 7,839,000 |
Total loans | 996,029,000 | 972,095,000 |
90 Days Past Due and Still Accruing | 0 | 0 |
30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 1,317,000 | 1,624,000 |
60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 638,000 | 4,452,000 |
90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 834,000 | 1,763,000 |
Commercial and Industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 136,891,000 | 151,162,000 |
Paycheck Protection Program (PPP) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 29,260,000 | 58,344,000 |
Commercial loans secured by owner occupied real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 100,028,000 | 95,486,000 |
Commercial loans secured by non-owner occupied real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 432,529,000 | 400,751,000 |
Real estate-residential mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 281,711,000 | 249,989,000 |
Consumer. | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 15,610,000 | 16,363,000 |
Commercial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 698,708,000 | 705,743,000 |
Commercial | Commercial and Industrial | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 136,471,000 | 148,023,000 |
Total Past Due | 420,000 | 3,139,000 |
Total loans | 136,891,000 | 151,162,000 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial | Commercial and Industrial | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 420,000 | 536,000 |
Commercial | Commercial and Industrial | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 2,603,000 |
Commercial | Commercial and Industrial | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial | Paycheck Protection Program (PPP) | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 29,260,000 | 58,344,000 |
Total Past Due | 0 | 0 |
Total loans | 29,260,000 | 58,344,000 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial | Paycheck Protection Program (PPP) | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial | Paycheck Protection Program (PPP) | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial | Paycheck Protection Program (PPP) | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial | Commercial loans secured by owner occupied real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 99,835,000 | 95,486,000 |
Total Past Due | 193,000 | 0 |
Total loans | 100,028,000 | 95,486,000 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial | Commercial loans secured by owner occupied real estate | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 192,000 | 0 |
Commercial | Commercial loans secured by owner occupied real estate | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial | Commercial loans secured by owner occupied real estate | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 1,000 | 0 |
Commercial | Commercial loans secured by non-owner occupied real estate | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 432,063,000 | 399,850,000 |
Total Past Due | 466,000 | 901,000 |
Total loans | 432,529,000 | 400,751,000 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial | Commercial loans secured by non-owner occupied real estate | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 466,000 | 230,000 |
Commercial | Commercial loans secured by non-owner occupied real estate | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 671,000 |
Commercial | Commercial loans secured by non-owner occupied real estate | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Consumer | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total loans | 297,321,000 | 266,352,000 |
Consumer | Real estate-residential mortgage | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 280,054,000 | 246,279,000 |
Total Past Due | 1,657,000 | 3,710,000 |
Total loans | 281,711,000 | 249,989,000 |
90 Days Past Due and Still Accruing | 0 | 0 |
Consumer | Real estate-residential mortgage | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 206,000 | 776,000 |
Consumer | Real estate-residential mortgage | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 618,000 | 1,178,000 |
Consumer | Real estate-residential mortgage | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 833,000 | 1,756,000 |
Consumer | Consumer. | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 15,557,000 | 16,274,000 |
Total Past Due | 53,000 | 89,000 |
Total loans | 15,610,000 | 16,363,000 |
90 Days Past Due and Still Accruing | 0 | 0 |
Consumer | Consumer. | 30-59 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 33,000 | 82,000 |
Consumer | Consumer. | 60-89 Days Past Due | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 20,000 | 0 |
Consumer | Consumer. | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | $ 0 | $ 7,000 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Provision expense for loan losses | $ 350,000 | $ 675,000 | $ 850,000 | $ 1,300,000 | |||||
Non-performing assets as a percent of loans | 0.31% | 0.31% | 0.31% | 0.34% | |||||
Allowance for Loan and Lease Losses Write-offs, Net | $ 71,000 | $ 295,000 | |||||||
Allowance For Loan And Lease Losses Write Off Percentage | 0.01% | 0.04% | |||||||
Increase in allowance for loan losses | $ 1,800,000 | ||||||||
Percentage increase in the allowance balance | 17.90% | ||||||||
Allowance for loan losses | $ 12,124,000 | 10,284,000 | $ 12,124,000 | $ 10,284,000 | $ 12,124,000 | $ 11,752,000 | $ 11,345,000 | $ 9,699,000 | $ 9,279,000 |
Percentage Of Allowance For Non Performing Assets | 389.00% | 389.00% | 389.00% | 341.00% | |||||
Percentage Of Allowance For Total Loans | 1.22% | 1.22% | 1.22% | 1.16% | |||||
Financing Receivable, Individually Evaluated for Impairment | $ 2,206,000 | $ 2,206,000 | $ 2,206,000 | $ 855,000 | |||||
Provision recovery recorded | (350,000) | (675,000) | (850,000) | (1,300,000) | |||||
Increase in provision expense | 250,000 | ||||||||
Financing Receivable, Recorded Investment, Past Due | 2,789,000 | 2,789,000 | 2,789,000 | 7,839,000 | |||||
Non-performing | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Total loans | $ 3,100,000 | $ 3,100,000 | $ 3,100,000 | $ 3,300,000 | |||||
Non-performing assets as a percent of loans | 0.31% | 0.31% | 0.31% | 0.34% | |||||
Pass | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Minimum individual loan balance requiring quarterly review | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||
Special Mention | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Minimum individual loan balance requiring quarterly review | 250,000 | 250,000 | 250,000 | ||||||
Substandard | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Minimum individual loan balance requiring quarterly review | 250,000 | 250,000 | 250,000 | ||||||
Doubtful | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Minimum individual loan balance requiring quarterly review | 100,000 | 100,000 | 100,000 | ||||||
Commercial | Commercial. | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Allowance for loan losses | 3,124,000 | 3,036,000 | 3,124,000 | 3,036,000 | 3,124,000 | $ 3,534,000 | $ 3,472,000 | $ 3,784,000 | $ 3,951,000 |
Financing Receivable, Individually Evaluated for Impairment | 2,200,000 | 2,200,000 | 2,200,000 | 847,000 | |||||
Minimum aggregate balances for commercial loan relationship under structure loan rating process | 1,000,000 | 1,000,000 | 1,000,000 | ||||||
Provision recovery recorded | 445,000 | $ 638,000 | 253,000 | $ 805,000 | |||||
Commercial | Commercial and Industrial | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Financing Receivable, Recorded Investment, Past Due | 420,000 | $ 420,000 | 420,000 | $ 3,139,000 | |||||
Commercial | Minimum | Commercial | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Minimum percent of portfolio to be reviewed | 36.00% | ||||||||
Consumer | Minimum | Consumer and Residential Mortgage Loans [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Financing Receivable, Individually Evaluated for Impairment | $ 150,000 | $ 150,000 | $ 150,000 |
Non-Performing Assets Includi_3
Non-Performing Assets Including Troubled Debt Restructurings (TDR) (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Non-Performing assets including TDR | ||
Non-accrual loans | $ 3,111,000 | $ 2,500,000 |
Other real estate owned and repossessed assets | 8,000 | |
TDR's not in non-accrual | 831,000 | |
Total non-performing assets including TDR | $ 3,119,000 | $ 3,331,000 |
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned and repossessed assets | 0.31% | 0.34% |
90 Days Past Due and Still Accruing | $ 0 | $ 0 |
Commercial and Industrial | ||
Non-Performing assets including TDR | ||
Non-accrual loans | 2,199,000 | 16,000 |
TDR's not in non-accrual | 831,000 | |
Commercial loans secured by owner occupied real estate | ||
Non-Performing assets including TDR | ||
Non-accrual loans | 1,000 | |
Commercial loans secured by non-owner occupied real estate | ||
Non-Performing assets including TDR | ||
Non-accrual loans | 6,000 | 8,000 |
Real estate-residential mortgage | ||
Non-Performing assets including TDR | ||
Non-accrual loans | 905,000 | 2,469,000 |
Consumer. | ||
Non-Performing assets including TDR | ||
Non-accrual loans | $ 7,000 | |
Other real estate owned and repossessed assets | $ 8,000 |
Non-Performing Assets Includi_4
Non-Performing Assets Including Troubled Debt Restructurings (TDR) - Interest income due in accordance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Interest Income | ||||
Interest income due in accordance with original terms | $ 35 | $ 22 | $ 96 | $ 60 |
Interest income recorded | (3) | 0 | (3) | 0 |
Net reduction in interest income | $ 32 | $ 22 | $ 93 | $ 60 |
Non-Performing Assets Includi_5
Non-Performing Assets Including Troubled Debt Restructurings (TDR) - Loans in accrual and non-accrual status (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | |
Schedule of TDRs | ||||
Number of loans | 0 | |||
TDR subsequently default | 0 | 0 | 0 | 0 |
Loans in accrual status | Commercial and Industrial | ||||
Schedule of TDRs | ||||
Number of loans | 1 | 1 | ||
Current Balance | $ | $ 47 | $ 47 | ||
Concession Granted | Extension of maturity date with a below market interest rate | Extension of maturity date with a below market interest rate | ||
Loans in non-accrual status | Commercial and Industrial | Subsequent modification of a TDR | ||||
Schedule of TDRs | ||||
Number of loans | 1 | 1 | ||
Current Balance | $ | $ 480 | $ 750 | ||
Concession Granted | Subsequent modification of a TDR - Extension of maturity date with a below market interest rate | Subsequent modification of a TDR - Extension of maturity date with a below market interest rate |
Non-Performing Assets Includi_6
Non-Performing Assets Including Troubled Debt Restructurings (TDR) - concentration of COVID-19 related modifications within the loan portfolio (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Modifications [Line Items] | ||
Loans For Which Payment Relief Has Been Requested | $ 15,731 | $ 49,063 |
% of Outstanding Non-PPP Loans | 1.60% | 5.30% |
CRE | Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Loans For Which Payment Relief Has Been Requested | $ 14,847 | $ 47,037 |
% of Outstanding Non-PPP Loans | 2.10% | 7.00% |
Home Equity | Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Loans For Which Payment Relief Has Been Requested | $ 46 | $ 83 |
% of Outstanding Non-PPP Loans | 0.10% | 0.10% |
Real estate-residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Loans For Which Payment Relief Has Been Requested | $ 838 | $ 1,943 |
% of Outstanding Non-PPP Loans | 0.50% | 1.30% |
Non-Performing Assets Includi_7
Non-Performing Assets Including Troubled Debt Restructurings (TDR) - types of payment relief that have been granted (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Jun. 30, 2020USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Number of loans | loan | 27 | 70 | |
Loans For Which Payment Relief Has Been Requested | $ | $ 15,731 | $ 49,063 | |
Interest only payments | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans | loan | 5 | 11 | |
Loans For Which Payment Relief Has Been Requested | $ | $ 4,975 | $ 26,900 | |
Complete payment deferrals | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans | loan | 22 | 59 | |
Loans For Which Payment Relief Has Been Requested | $ | $ 10,756 | $ 22,163 | $ 200,000 |
Non-Performing Assets Includi_8
Non-Performing Assets Including Troubled Debt Restructurings (TDR) - Additional information (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
ALL reserve for TDR's | $ 135,000 | $ 103,000 |
Decrease in loan modifications to COVID-19 | $ 33,300,000 | |
Percentage of decrease in balance of loan modifications | 67.90% | |
Accrued interest receivable due to loan modification | $ 939,000,000,000 | |
Number of loans | loan | 27 | 70 |
Commercial real estate and commercial loan portfolios | ||
Number of loans | loan | 5 | |
Second payment deferral | ||
Balance of loans modified | $ 15,000,000 | |
Complete payment deferrals | ||
Number of loans | loan | 22 | 59 |
Short-Term Borrowings, Advanc_3
Short-Term Borrowings, Advances from Federal Home Loan Bank and Subordinated Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank (FHLB) borrowings and advances | ||
Open Repo Plus | $ 0 | $ 24,702 |
FHLB Advances 2021, Amount | 3,000 | 24,336 |
FHLB Advances 2022, Amount | 20,888 | 20,888 |
FHLB Advances 2023, Amount | 15,568 | 15,568 |
FHLB Advances 2024, Amount | 4,197 | 4,197 |
Total FHLB advances | 43,653 | 64,989 |
Total short-term and FHLB borrowings, Amount | $ 43,653 | $ 89,691 |
Open Repo Plus Maturity Overnight, Weighted Average Rate | 0.00% | 0.41% |
FHLB Advances Maturing 2021, Weighted Average Rate | 2.94% | 1.00% |
FHLB Advances Maturing 2022, Weighted Average Rate | 2.03% | 2.03% |
FHLB Advances Maturing 2023, Weighted Average Rate | 1.59% | 1.59% |
FHLB Advances Maturing 2024, Weighted Average Rate | 1.19% | 1.19% |
Total FHLB advances, Weighted Average Rate | 1.85% | 1.48% |
Total short-term and FHLB borrowings, Weighted Average Rate | 1.85% | 1.19% |
Short-Term Borrowings, Advanc_4
Short-Term Borrowings, Advances from Federal Home Loan Bank and Subordinated Debt - Additional information (Details) - USD ($) $ in Thousands | Aug. 26, 2021 | Sep. 30, 2021 | Aug. 25, 2021 | Dec. 31, 2020 |
Junior Subordinated Notes | $ 13,100 | $ 12,970 | ||
Subordinated Debt | $ 26,600 | 7,534 | ||
Subordinated Debt. | ||||
Debt Instrument, Face Amount | $ 27,000 | 27,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | |||
Maturity term | 5 years | |||
Net Proceeds | 20,000 | |||
Junior Subordinated Notes | 13,000 | |||
Subordinated Debt | $ 7,650 | $ 7,500 | ||
Debt Conversion, Downstream of Capital | $ 3,500 | |||
Subordinated Debt. | Secured Overnight Financing Rate (SOFR) | ||||
SOFR rate percentage | 3.11% |
Lease Commitments - Lease Cost
Lease Commitments - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lease Commitments | ||||
Amortization of right-of-use asset | $ 68 | $ 68 | $ 204 | $ 203 |
Interest expense | 26 | 28 | 80 | 85 |
Operating lease cost | 29 | 29 | 87 | 87 |
Total lease cost | $ 123 | $ 125 | $ 371 | $ 375 |
Lease Commitments - Leases outs
Lease Commitments - Leases outstanding - (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
Lease Commitments | ||
Operating Lease, Weighted-average remaining term | 11 years 1 month 6 days | 11 years 4 months 24 days |
Financing Lease, Weighted-average remaining term | 15 years 7 months 6 days | 16 years |
Operating Lease, Weighted-average discount rate | 3.52% | 3.49% |
Financing Lease, Weighted-average discount rate | 3.55% | 3.52% |
Lease Commitments - Operating a
Lease Commitments - Operating and financing leases - (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Lease Commitments | ||
Operating lease, Within 1 year | $ 110 | $ 120 |
Operating lease, After 1 year but within 2 years | 69 | 98 |
Operating lease, After 2 years but within 3 years | 69 | 69 |
Operating lease, After 3 years but within 4 years | 69 | 69 |
Operating lease, After 4 years but within 5 years | 69 | 69 |
Operating lease, After 5 years | 470 | 520 |
Total undiscounted cash flows | 856 | 945 |
Discount on cash flows | (151) | (169) |
Total lease liabilities | 705 | 776 |
Financing lease, Within 1 year | 319 | 316 |
Financing lease, After 1 year but within 2 years | 320 | 320 |
Financing lease, After 2 years but within 3 years | 253 | 309 |
Financing lease, After 3 years but within 4 years | 252 | 249 |
Financing lease, After 4 years but within 5 years | 198 | 248 |
Financing lease, After 5 years | 2,623 | 2,760 |
Total undiscounted cash flows | 3,965 | 4,202 |
Discount on cash flows | (1,012) | (1,093) |
Total lease liabilities | $ 2,953 | $ 3,109 |
Lease Commitments - Additional
Lease Commitments - Additional information (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Short Term Equipment Under Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Description Of Accounting Treatment For Short Term Operating Lease | As of September 30, 2021 and December 31, 2020, the Company had no short-term leases. | As of September 30, 2021 and December 31, 2020, the Company had no short-term leases. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (9,317) | $ (14,071) | $ (13,198) | $ (16,171) |
Other comprehensive income (loss) before reclassifications | 753 | (370) | 3,064 | 765 |
Amounts reclassified from accumulated other comprehensive loss | 694 | 483 | 2,264 | 1,448 |
Net current period other comprehensive income (loss) | 1,447 | 113 | 5,328 | 2,213 |
Ending balance | (7,870) | (13,958) | (7,870) | (13,958) |
Net Unrealized Gains and (Losses) on Investment Securities AFS | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 2,863 | 3,398 | 3,539 | 1,715 |
Other comprehensive income (loss) before reclassifications | (466) | 113 | (1,076) | 1,796 |
Amounts reclassified from accumulated other comprehensive loss | (66) | |||
Net current period other comprehensive income (loss) | (466) | 113 | (1,142) | 1,796 |
Ending balance | 2,397 | 3,511 | 2,397 | 3,511 |
Defined Benefit Pension Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (12,180) | (17,469) | (16,737) | (17,886) |
Other comprehensive income (loss) before reclassifications | 1,219 | (483) | 4,140 | (1,031) |
Amounts reclassified from accumulated other comprehensive loss | 694 | 483 | 2,330 | 1,448 |
Net current period other comprehensive income (loss) | 1,913 | 6,470 | 417 | |
Ending balance | $ (10,267) | $ (17,469) | $ (10,267) | $ (17,469) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassification of component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Realized (gains) losses on sale of securities | ||||
Net realized (gains) losses on investment securities | $ (84) | |||
Provision for income taxes | 18 | |||
Net of tax | (66) | |||
Amortization of estimated defined benefit pension plan loss | ||||
Other expense | $ 879 | $ 611 | 2,949 | $ 1,833 |
Provision for income taxes | (185) | (128) | (619) | (385) |
Net of tax | 694 | 483 | 2,330 | 1,448 |
Total reclassifications for the period | $ 694 | $ 483 | $ 2,264 | $ 1,448 |
Regulatory Capital (Details)
Regulatory Capital (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Summarized regulatory capital ratio of company | ||
Total Capital (To RWA), Actual Amount | $ 132,583 | $ 125,182 |
Tier 1 Common Equity (To RWA), Actual Amount | 119,496 | 112,965 |
Tier 1 Capital (To RWA), Actual Amount | 119,496 | 112,965 |
Tier 1 Capital (To Average Assets), Actual Amount | $ 119,496 | $ 112,965 |
Total Capital (To RWA), Actual Ratio | 12.28 | 11.95 |
Tier 1 Common Equity (To RWA), Actual Ratio | 11.07 | 10.78 |
Tier 1 Capital (To RWA), Actual Ratio | 11.07 | 10.78 |
Tier 1 Capital (To Average Assets), Actual Ratio | 8.87 | 9.03 |
Total Capital (To RWA), Minimum Required For Capital Adequacy Purpose | 8 | 8 |
Tier 1 Common Equity (To RWA), Minimum Required For Capital Adequacy Purpose | 0.0450 | 4.50 |
Tier 1 Capital (To RWA), Minimum Required For Capital Adequacy Purpose | 6 | 6 |
Tier 1 Capital (To Average Assets), Minimum Required For Capital Adequacy Purpose | 4 | 4 |
Total Capital (To RWA), To Be Will Capitalized Under Prompt Corrective Action Regulations | 10 | 10 |
Tier 1 Common Equity (To RWA), To Be Will Capitalized Under Prompt Corrective Action Regulations | 0.0650 | 6.50 |
Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Regulations | 8 | 8 |
Tier 1 Capital (To Average Assets), To Be Will Capitalized Under Prompt Corrective Action Regulations | 5 | 5 |
Parent Company [Member] | ||
Summarized regulatory capital ratio of company | ||
Total Capital (To RWA), Actual Amount | $ 147,516 | $ 135,777 |
Tier 1 Common Equity (To RWA), Actual Amount | 107,829 | 105,653 |
Tier 1 Capital (To RWA), Actual Amount | 107,829 | 117,556 |
Tier 1 Capital (To Average Assets), Actual Amount | $ 107,829 | $ 117,556 |
Total Capital (To RWA), Actual Ratio | 13.61 | 12.93 |
Tier 1 Common Equity (To RWA), Actual Ratio | 9.95 | 10.06 |
Tier 1 Capital (To RWA), Actual Ratio | 9.95 | 11.20 |
Tier 1 Capital (To Average Assets), Actual Ratio | 7.87 | 9.29 |
Regulatory Capital - Additional
Regulatory Capital - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2021 | Aug. 26, 2021 | Aug. 25, 2021 | Dec. 31, 2020 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Junior Subordinated Notes | $ 13,100 | $ 12,970 | ||
Subordinated Debt | $ 26,600 | 7,534 | ||
Subordinated Debt. | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Debt Instrument, Face Amount | 27,000 | $ 27,000 | ||
Net Proceeds | 20,000 | |||
Junior Subordinated Notes | 13,000 | |||
Subordinated Debt | $ 7,650 | $ 7,500 | ||
Debt Conversion, Downstream of Capital | $ 3,500 |
Derivative Hedging Instrument_2
Derivative Hedging Instruments (Details) - Swap - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Financial Instruments, Liabilities | ||
Derivative, Swap Type | N/A | N/A |
Derivative Liability, Notional Amount | $ (55,061) | $ (36,726) |
Weighted Average Rate Received (Paid) | (2.59%) | (3.06%) |
Repricing frequency | Monthly | Monthly |
Increase (Decrease) in Interest Expense | $ 602 | $ 345 |
Derivative Financial Instruments, Assets | ||
Derivative, Swap Type | N/A | N/A |
Derivative Asset, Notional Amount | $ 55,061 | $ 36,726 |
Weighted Average Rate Received (Paid) | 2.59% | 3.06% |
Repricing frequency | Monthly | Monthly |
Increase (Decrease) in Interest Expense | $ (602) | $ (345) |
Derivative Hedging Instrument_3
Derivative Hedging Instruments - Additional Information (Details) $ in Millions | Sep. 30, 2021USD ($) |
Maximum amount outstanding | $ 500 |
Interest Rate Swap | Risk Participation Agreement | |
Notional amount | $ 2.6 |
Segment Results (Details)
Segment Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Contribution of segments to the consolidated results of operations | ||||
Total revenue | $ 13,642 | $ 13,095 | $ 42,214 | $ 38,918 |
Net income (loss) | 1,431 | 1,078 | 5,220 | 3,906 |
Community banking | ||||
Contribution of segments to the consolidated results of operations | ||||
Total revenue | 12,515 | 12,263 | 38,605 | 36,096 |
Net income (loss) | 2,801 | 2,509 | 9,059 | 7,788 |
Wealth management | ||||
Contribution of segments to the consolidated results of operations | ||||
Total revenue | 3,154 | 2,620 | 9,082 | 7,672 |
Net income (loss) | 831 | 547 | 2,227 | 1,510 |
Investment/Parent | ||||
Contribution of segments to the consolidated results of operations | ||||
Total revenue | (2,027) | (1,788) | (5,473) | (4,850) |
Net income (loss) | $ (2,201) | $ (1,978) | $ (6,066) | $ (5,392) |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Reserve for losses on unfunded commitments and letters of credit | $ 963,000 | $ 872,000 |
Commitments to extend credit | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | 265,500,000 | 213,900,000 |
Standby letters of Credit | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | $ 13,400,000 | $ 13,300,000 |
Pension Benefits - Component of
Pension Benefits - Component of net periodic benefit cost (Details) - Defined Benefit Pension Items - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Components of net periodic benefit cost | ||||
Service cost | $ 429,000 | $ 419,000 | $ 1,287,000 | $ 1,257,000 |
Interest cost | 221,000 | 320,000 | 664,000 | 960,000 |
Expected return on plan assets | (1,004,000) | (811,000) | (3,012,000) | (2,433,000) |
Recognized net actuarial loss | 610,000 | 611,000 | 1,829,000 | 1,833,000 |
Settlement charge | 269,000 | 1,120,000 | ||
Net periodic pension cost | $ 525,000 | $ 539,000 | $ 1,888,000 | $ 1,617,000 |
Pension Benefits - Additional i
Pension Benefits - Additional information (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum number of annual hours | 1,000 | 1,000 |
Maximum percent of plan assets comprised of AmeriServ Financial, Inc. common stock | 10.00% | 10.00% |
Defined Benefit Pension Items | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement charge | $ 269,000 | $ 1,120,000 |
Employer contributions | 8,000,000 | |
Defined Benefit Pension Items | Other assets. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets for pension benefits | $ 17,200,000 | $ 17,200,000 |
Disclosures about Fair Value _3
Disclosures about Fair Value Measurements and Financial Instruments - Schedule of assets and liability measured and recorded on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Disclosures about Fair Value Measurements and Financial Instruments | ||
Equity securities | $ 516 | $ 443 |
Available for sale, at fair value | 160,353 | 144,165 |
Interest rate swap asset | 1,574 | 3,320 |
Interest rate swap liability | (1,574) | (3,320) |
Risk participation agreement | (8) | |
U.S. Agency | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 7,635 | 3,152 |
U.S. Agency mortgage-backed securities | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 78,760 | 67,913 |
Municipal | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 20,302 | 20,348 |
Corporate bonds | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 53,656 | 52,752 |
Level 1 | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Equity securities | 516 | 443 |
Level 2 | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Interest rate swap asset | 1,574 | 3,320 |
Interest rate swap liability | (1,574) | (3,320) |
Risk participation agreement | (8) | |
Level 2 | U.S. Agency | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 7,635 | 3,152 |
Level 2 | U.S. Agency mortgage-backed securities | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 78,760 | 67,913 |
Level 2 | Municipal | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | 20,302 | 20,348 |
Level 2 | Corporate bonds | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Available for sale, at fair value | $ 53,656 | $ 52,752 |
Disclosures about Fair Value _4
Disclosures about Fair Value Measurements and Financial Instruments - Schedule of assets measured and recorded at fair value on a non-recurring basis (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Disclosures about Fair Value Measurements and Financial Instruments | ||
Impaired loan with carrying value | $ 7,000 | $ 266,000 |
Specific valuation allowance | 6,000 | 8,000 |
Impaired loans | 1,000 | 258,000 |
Other real estate owned and repossessed assets | 8,000 | |
Fair Value Measurements, Nonrecurring Basis | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Impaired loans | 1,000 | 258,000 |
Fair Value Measurements, Nonrecurring Basis | Other real estate owned | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Other real estate owned and repossessed assets | 8,000 | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Impaired loans | 1,000 | 258,000 |
Other real estate owned and repossessed assets | 8,000 | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Impaired loans | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Impaired loans | $ 1,000 | $ 258,000 |
Valuation Techniques | Appraisal of collateral | Appraisal of collateral |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Other real estate owned | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Other real estate owned and repossessed assets | $ 8,000 | |
Valuation Techniques | Appraisal of collateral | |
Appraisal adjustments | 30.00% | |
Liquidation expenses | 3.00% | |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Minimum | Impaired loans | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Appraisal adjustments | 0.00% | 0.00% |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Maximum | Impaired loans | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Appraisal adjustments | 100.00% | 100.00% |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Wgtd Ave | Impaired loans | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Appraisal adjustments | 89.00% | 3.00% |
Fair Value Measurements, Nonrecurring Basis | Level 3 | Wgtd Ave | Other real estate owned | ||
Disclosures about Fair Value Measurements and Financial Instruments | ||
Appraisal adjustments | 30.00% | |
Liquidation expenses | 3.00% |
Disclosures about Fair Value _5
Disclosures about Fair Value Measurements and Financial Instruments - Schedule of estimated fair value and recorded carrying value (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Carrying Value | $ 53,942 | $ 44,222 |
Loans held for sale, Carrying Value | 6,250 | |
Loans, net of allowance for loan loss and unearned income, Carrying Value | 983,905 | 960,750 |
Investment securities - HTM, Fair Value | 56,070 | 47,106 |
Loans held for sale, Fair Value | 6,428 | |
Loans, net of allowance for loan loss and unearned income, Fair Value | 988,679 | 969,433 |
FINANCIAL LIABILITIES: Carrying Value | ||
Deposits with stated maturities, Carrying Value | 303,025 | 311,064 |
All other borrowings, Carrying Value | 70,253 | 85,493 |
Deposits with stated maturities, Fair Value | 305,424 | 314,845 |
All other borrowings, Fair Value | $ 71,207 | 90,907 |
Assets and liabilities considered financial instruments, percentage | 90.00% | |
Level 1 | ||
FINANCIAL ASSETS: Carrying Value | ||
Loans held for sale, Fair Value | 6,428 | |
Level 2 | ||
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Fair Value | $ 53,071 | 44,108 |
Level 3 | ||
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Fair Value | 2,999 | 2,998 |
Loans, net of allowance for loan loss and unearned income, Fair Value | 988,679 | 969,433 |
FINANCIAL LIABILITIES: Carrying Value | ||
Deposits with stated maturities, Fair Value | 305,424 | 314,845 |
All other borrowings, Fair Value | $ 71,207 | $ 90,907 |
Branch Acquisition (Details)
Branch Acquisition (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | May 21, 2021 | Dec. 31, 2020 | |
Branch Acquisition | |||
Deposits | $ 4,285,000 | $ 2,585,000 | |
Goodwill | 13,611,000 | $ 11,944,000 | |
Citizen's Neighborhood Bank Branch | |||
Branch Acquisition | |||
Deposits acquired at premium percentage | 3.71% | ||
Deposits acquired at premium amount | $ 1,600,000 | ||
Meyersdale and Somerset Branches | |||
Branch Acquisition | |||
Goodwill and other intangibles | 1,800,000 | ||
Riverview Bank | |||
Branch Acquisition | |||
Goodwill | 1,700,000 | 1,667,000 | |
Identifiable intangible assets residual value | $ 0 | ||
Finite-lived intangible asset useful life | 10 years | ||
Finite-lived intangible assets accumulated amortization | $ 11,000 | ||
Citizen's Neighborhood Bank Branch | |||
Branch Acquisition | |||
Deposits | $ 42,000,000 |
Branch Acquisition - Riverview
Branch Acquisition - Riverview Bank (Details) - USD ($) | May 21, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Fair value of liabilities assumed | |||
Goodwill resulting from acquisition | $ 13,611,000 | $ 11,944,000 | |
Riverview Bank | |||
Consideration received | |||
Cash received | $ 40,154,000 | ||
Fair value of assets acquired | |||
Cash and cash equivalents | 258,000 | ||
Loans | 36,000 | ||
Premises and equipment | 158,000 | ||
Core deposit intangible | 177,000 | 166,000 | |
Other assets | 19,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 648,000 | ||
Fair value of liabilities assumed | |||
Deposits | (42,432,000) | ||
Other liabilities | (37,000) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | (42,469,000) | ||
Total fair value of identifiable net assets | (41,821,000) | ||
Goodwill resulting from acquisition | $ 1,667,000 | $ 1,700,000 |
Branch Acquisition - Future Amo
Branch Acquisition - Future Amortization (Details) - Riverview Bank $ in Thousands | Sep. 30, 2021USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 | $ 19 |
2022 | 30 |
2023 | 27 |
2024 | 24 |
2025 | 21 |
After five years | 56 |
Finite-Lived Intangible Assets, Net, Total | $ 177 |