Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | FARMERS NATIONAL BANC CORP. | |
Entity Central Index Key | 0000709337 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2023 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 37,487,680 | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, No Par Value | |
Trading Symbol | FMNB | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-35296 | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-1371693 | |
Entity Address, Address Line One | 20 South Broad Street | |
Entity Address, City or Town | Canfield | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44406 | |
City Area Code | 330 | |
Local Phone Number | 533-3341 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 29,800 | $ 21,395 |
Federal funds sold and other | 86,263 | 54,156 |
TOTAL CASH AND CASH EQUIVALENTS | 116,063 | 75,551 |
Securities available for sale (Amortized cost $1,561,850 in 2023 and $1,534,512 in 2022) | 1,316,878 | 1,268,025 |
Other investments | 44,975 | 33,444 |
Loans held for sale | 2,197 | 858 |
Loans | 3,155,200 | 2,404,750 |
Less allowance for credit losses | 34,957 | 26,978 |
NET LOANS | 3,120,243 | 2,377,772 |
Premises and equipment, net | 53,696 | 39,173 |
Goodwill | 167,907 | 94,640 |
Other intangibles, net | 24,144 | 7,026 |
Bank owned life insurance | 98,590 | 74,972 |
Other assets | 128,761 | 110,739 |
TOTAL ASSETS | 5,073,454 | 4,082,200 |
Deposits: | ||
Noninterest-bearing | 1,084,232 | 896,957 |
Interest-bearing | 3,165,381 | 2,526,760 |
Brokered time deposits | 21,135 | 138,051 |
TOTAL DEPOSITS | 4,270,748 | 3,561,768 |
Short-term borrowings | 300,000 | 95,000 |
Long-term borrowings | 88,437 | 88,211 |
Other liabilities | 47,278 | 44,926 |
TOTAL LIABILITIES | 4,706,463 | 3,789,905 |
Commitments and contingent liabilities | ||
Stockholders' Equity: | ||
Common Stock - Authorized 50,000,000 shares in 2023 and 2022; 39,321,709 shares issued in 2023 and 35,128,962 in 2022; 37,457,253 and 34,055,125 shares outstanding, respectively | 364,644 | 305,340 |
Retained earnings | 221,612 | 212,375 |
Accumulated other comprehensive (loss) | (193,528) | (210,490) |
Treasury stock, at cost; 1,864,456 and 1,073,837 shares in 2023 and 2022, respectively | (25,737) | (14,930) |
TOTAL STOCKHOLDERS' EQUITY | 366,991 | 292,295 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 5,073,454 | $ 4,082,200 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Securities available for sale, amortized cost | $ 1,561,850 | $ 1,534,512 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 39,321,709 | 35,128,962 |
Common Stock, Shares, Outstanding | 37,457,253 | 34,055,125 |
Treasury stock, shares | 1,864,456 | 1,073,837 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans, including fees | $ 42,331 | $ 25,714 | $ 83,187 | $ 51,276 |
Taxable securities | 6,654 | 5,223 | 13,204 | 9,810 |
Tax exempt securities | 2,674 | 3,038 | 5,515 | 5,990 |
Dividends | 594 | 216 | 970 | 346 |
Federal funds sold and other interest income | 551 | 95 | 1,161 | 143 |
TOTAL INTEREST AND DIVIDEND INCOME | 52,804 | 34,286 | 104,037 | 67,565 |
INTEREST EXPENSE | ||||
Deposits | 14,491 | 1,651 | 27,198 | 2,895 |
Short-term borrowings | 2,727 | 97 | 3,648 | 98 |
Long-term borrowings | 1,008 | 827 | 2,003 | 1,619 |
TOTAL INTEREST EXPENSE | 18,226 | 2,575 | 32,849 | 4,612 |
NET INTEREST INCOME | 34,578 | 31,711 | 71,188 | 62,953 |
Provision (credit) for credit losses | (255) | 482 | 8,050 | (448) |
Provision for unfunded loans | 280 | 134 | 574 | 706 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 34,553 | 31,095 | 62,564 | 62,695 |
NONINTEREST INCOME | ||||
Bank owned life insurance income | 584 | 405 | 1,131 | 814 |
Security gains (losses), including fair value changes for equity securities | 13 | (60) | 134 | (71) |
Net gains on sale of loans | 406 | 365 | 716 | 1,494 |
Other mortgage banking income, net | 234 | 39 | 387 | 99 |
Legal settlement | 0 | 0 | 0 | 8,375 |
Other operating income | 463 | 1,719 | 1,793 | 2,237 |
TOTAL NONINTEREST INCOME | 9,449 | 9,477 | 19,874 | 27,175 |
NONINTEREST EXPENSES | ||||
Salaries and employee benefits | 13,625 | 11,073 | 28,270 | 22,904 |
Occupancy and equipment | 3,859 | 2,918 | 7,728 | 5,598 |
FDIC insurance and state and local taxes | 1,494 | 979 | 2,716 | 1,924 |
Professional fees | 1,190 | 1,056 | 2,304 | 4,191 |
Merger related costs | 442 | 674 | 4,755 | 2,614 |
Advertising | 478 | 487 | 887 | 879 |
Intangible amortization | 1,222 | 419 | 2,131 | 839 |
Core processing charges | 1,144 | 1,123 | 2,308 | 1,868 |
Charitable donation | 0 | 0 | 0 | 6,000 |
Other operating expenses | 2,932 | 2,732 | 6,009 | 5,100 |
TOTAL NONINTEREST EXPENSES | 26,386 | 21,461 | 57,108 | 51,917 |
INCOME BEFORE INCOME TAXES | 17,616 | 19,111 | 25,330 | 37,953 |
INCOME TAXES | 2,650 | 3,160 | 3,289 | 6,158 |
NET INCOME | $ 14,966 | $ 15,951 | $ 22,041 | $ 31,795 |
EARNINGS PER SHARE - basic | $ 0.4 | $ 0.47 | $ 0.59 | $ 0.94 |
EARNINGS PER SHARE - diluted | $ 0.4 | $ 0.47 | $ 0.59 | $ 0.94 |
Service Charges on Deposit Accounts | ||||
NONINTEREST INCOME | ||||
Noninterest income | $ 1,501 | $ 1,139 | $ 2,933 | $ 2,284 |
Trust Fees | ||||
NONINTEREST INCOME | ||||
Noninterest income | 2,248 | 2,376 | 4,835 | 4,895 |
Insurance Agency Commissions | ||||
NONINTEREST INCOME | ||||
Noninterest income | 1,332 | 1,086 | 2,788 | 2,133 |
Retirement Plan Consulting Fees | ||||
NONINTEREST INCOME | ||||
Noninterest income | 382 | 323 | 689 | 720 |
Investment Commissions | ||||
NONINTEREST INCOME | ||||
Noninterest income | 476 | 557 | 869 | 1,251 |
Debit Card and EFT Fees | ||||
NONINTEREST INCOME | ||||
Noninterest income | $ 1,810 | $ 1,528 | $ 3,599 | $ 2,944 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net Income (Loss) | $ 14,966 | $ 15,951 | $ 22,041 | $ 31,795 | |
Other comprehensive income (loss): | |||||
Net unrealized holding (losses) gains on available for sale securities | (21,309) | (105,497) | 21,591 | (217,894) | |
Reclassification adjustment for losses (gains) realized in income | [1] | 0 | 31 | (120) | 31 |
Net unrealized holding (losses) gains | (21,309) | (105,466) | 21,471 | (217,863) | |
Income tax effect | 4,475 | 22,148 | (4,509) | 45,751 | |
Unrealized holding (losses) gains, net of reclassification and tax | (16,834) | (83,318) | 16,962 | (172,112) | |
Change in funded status of post-retirement plan, net of tax | 0 | (2) | 0 | (3) | |
Other comprehensive (loss) income, net of tax | (16,834) | (83,320) | 16,962 | (172,115) | |
TOTAL COMPREHENSIVE (LOSS) INCOME | $ (1,868) | $ (67,369) | $ 39,003 | $ (140,320) | |
[1] Pre-tax reclassification adjustments relating to available-for-sale securities are reported in security gains and the tax impact is included in income tax expense on the consolidated statements of income. |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance at Dec. 31, 2021 | $ 472,432 | $ 306,123 | $ 173,896 | $ 9,295 | $ (16,882) |
Net income | 15,844 | 15,844 | |||
Other comprehensive income (loss) | (88,795) | (88,795) | |||
Restricted share issuance | 0 | (1,030) | 1,030 | ||
Stock based compensation expense | 365 | 365 | |||
Vesting of Long Term Incentive Plan | (420) | (788) | 368 | ||
Share forfeitures for taxes | (102) | (102) | |||
Dividends paid | (5,438) | (5,438) | |||
Balance at Mar. 31, 2022 | 393,886 | 304,670 | 184,302 | (79,500) | (15,586) |
Balance at Dec. 31, 2021 | 472,432 | 306,123 | 173,896 | 9,295 | (16,882) |
Net income | 31,795 | ||||
Other comprehensive income (loss) | (172,115) | ||||
Balance at Jun. 30, 2022 | 321,449 | 304,707 | 194,809 | (162,820) | (15,247) |
Balance at Mar. 31, 2022 | 393,886 | 304,670 | 184,302 | (79,500) | (15,586) |
Net income | 15,951 | 15,951 | |||
Other comprehensive income (loss) | (83,320) | (83,320) | |||
Restricted share issuance | 0 | (362) | 362 | ||
Stock based compensation expense | 438 | 438 | |||
Vesting of Long Term Incentive Plan | (39) | (39) | |||
Share forfeitures for taxes | (23) | (23) | |||
Dividends paid | (5,444) | 5,444 | |||
Balance at Jun. 30, 2022 | 321,449 | 304,707 | 194,809 | (162,820) | (15,247) |
Balance at Dec. 31, 2022 | 292,295 | 305,340 | 212,375 | (210,490) | (14,930) |
Net income | 7,075 | 7,075 | |||
Other comprehensive income (loss) | 33,796 | 33,796 | |||
Share issuance as part of a business combination | 59,202 | 59,202 | |||
Restricted share issuance | 5 | (432) | 437 | ||
Restricted share forfeitures | 0 | 21 | (21) | ||
Stock based compensation expense | 615 | 615 | |||
Vesting of Long Term Incentive Plan | 3 | (428) | 431 | ||
Share forfeitures for taxes | (252) | (252) | |||
Dividends paid | (6,437) | (6,437) | |||
Treasury share purchases | (11,660) | (11,660) | |||
Balance at Mar. 31, 2023 | 374,642 | 364,318 | 213,013 | (176,694) | (25,995) |
Balance at Dec. 31, 2022 | 292,295 | 305,340 | 212,375 | (210,490) | (14,930) |
Net income | 22,041 | ||||
Other comprehensive income (loss) | 16,962 | ||||
Balance at Jun. 30, 2023 | 366,991 | 364,644 | 221,612 | (193,528) | (25,737) |
Balance at Mar. 31, 2023 | 374,642 | 364,318 | 213,013 | (176,694) | (25,995) |
Net income | 14,966 | 14,966 | |||
Other comprehensive income (loss) | (16,834) | (16,834) | |||
Restricted share issuance | 3 | (323) | 326 | ||
Stock based compensation expense | 649 | 649 | |||
Share forfeitures for taxes | (68) | (68) | |||
Dividends paid | (6,367) | 6,367 | |||
Balance at Jun. 30, 2023 | $ 366,991 | $ 364,644 | $ 221,612 | $ (193,528) | $ (25,737) |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Stockholders' Equity (Parenthetical) Unaudited - $ / shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Retained Earnings | ||||
Cash dividend declared per share of common stock | $ 0.17 | $ 0.17 | $ 0.16 | $ 0.16 |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 22,041,000 | $ 31,795,000 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision (credit) for credit losses | 8,050,000 | (448,000) |
Provision for unfunded loans | 574,000 | 706,000 |
Depreciation and amortization | 4,101,000 | 2,341,000 |
Net amortization of securities | 450,000 | 2,708,000 |
Available for sale security (gains) losses | (120,000) | 31,000 |
Realized (gains) losses on equity securities | (14,000) | 40,000 |
Loss on premises and equipment sales and disposals, net | 0 | 20,000 |
Stock compensation expense | 1,264,000 | 803,000 |
Earnings on bank owned life insurance | (1,131,000) | (814,000) |
Origination of loans held for sale | (19,634,000) | (65,892,000) |
Proceeds from loans held for sale | 21,945,000 | 69,128,000 |
Net gains on sale of loans | (716,000) | (1,494,000) |
Net change in other assets and liabilities | (7,935,000) | 1,309,000 |
NET CASH FROM OPERATING ACTIVITIES | 28,875,000 | 40,233,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from maturities and repayments of securities available for sale | 30,034,000 | 45,241,000 |
Proceeds from sales of securities available for sale | 69,918,000 | 1,670,000 |
Purchases of securities available for sale | (650,000) | (201,518,000) |
Proceeds from sales of equity securities | 24,000 | 35,000 |
Purchase of equity securities | (31,000) | (38,000) |
Proceeds from maturities and repayments of SBIC funds | 543,000 | 1,013,000 |
Purchases of SBIC funds | (531,000) | (1,475,000) |
Proceeds from redemption of regulatory stock | 13,951,000 | 5,000 |
Purchase of regulatory stock | (17,679,000) | (3,572,000) |
Loan originations and payments, net | (10,436,000) | (45,593,000) |
Proceeds from land and building sales | 0 | 1,067,000 |
Additions to premises and equipment | 779,000 | (1,872,000) |
Net cash paid in business combinations | (13,175,000) | 0 |
NET CASH FROM INVESTING ACTIVITIES | 72,747,000 | (205,037,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net change in deposits | (166,833,000) | 78,303,000 |
Net change in short-term borrowings | 130,000,000 | 50,000,000 |
Cash dividends paid | (12,733,000) | (10,831,000) |
Repurchase of common shares | (11,544,000) | 0 |
NET CASH FROM FINANCING ACTIVITIES | (61,110,000) | 117,472,000 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 40,512,000 | (47,332,000) |
Beginning cash and cash equivalents | 75,551,000 | 112,790,000 |
Ending cash and cash equivalents | 116,063,000 | 65,458,000 |
Supplemental cash flow information: | ||
Interest paid | 34,161,000 | 4,803,000 |
Supplemental noncash disclosures: | ||
Issuance of stock awards | 1,194,000 | 1,760,000 |
Issuance of stock for business combinations | $ 59,202,000 | $ 0 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 14,966 | $ 7,075 | $ 15,951 | $ 15,844 | $ 22,041 | $ 31,795 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTES TO UNAUDITED CONSOL IDATED CONDENSED FINANCIAL STATEMENTS Principles of Consolidation: Farmers National Banc Corp. (“Company” or "Farmers") is a Financial Holding Company registered under the Bank Holding Company Act of 1956, as amended. The Company provides full banking services through its nationally chartered subsidiary, The Farmers National Bank of Canfield (“Bank”). The consolidated financial statements also include the accounts of the Bank’s subsidiaries; Farmers National Insurance, LLC (“Insurance”) and Farmers of Canfield Investment Co. (“Investments”). The Company provides trust and retirement consulting services through its subsidiary, Farmers Trust Company (“Trust”), and insurance services through the Bank’s subsidiary, Insurance. Farmers National Captive, Inc. (“Captive”) is a wholly-owned insurance subsidiary of the Company that provides property and casualty insurance coverage to the Company and its subsidiaries. The Captive pools resources with eleven similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves and to provide insurance where not currently available or economically feasible in today’s insurance market place. The consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries, along with the Trust and Captive. All significant intercompany balances and transactions have been eliminated in the consolidation. Basis of Presentation: The unaudited consolidated condensed financial statements have been prepared in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2022 Annual Report to Shareholders included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). The interim consolidated financial statements include all adjustments (consisting of only normal recurring items) that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year. Certain items included in the prior period financial statements were reclassified to conform to the current period presentation. There was no effect on net income or total stockholders’ equity. Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Segments: The Company provides a broad range of financial services to individuals and companies in northeastern Ohio and western Pennsylvania. Operations are managed and financial performance is primarily aggregated and reported in two lines of business, the Bank segment and the Trust segment. Equity: There are 50,000,000 shares authorized and available for issuance as of June 30, 2023. Outstanding shares at June 30, 2023 were 37,457,253 . Comprehensive Income: Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) consists of unrealized gains and losses on securities available for sale and changes in the funded status of the post-retirement plan, which are recognized as components of stockholders’ equity, net of tax effect. Updates to Significant Accounting Policies: New Accounting Standard: On March 31, 2022, FASB issued ASU 2022-02, which eliminates the troubled debt restructuring (“TDR”), accounting model for creditors that have adopted Topic 326, Financial Instruments – Credit Losses. Due to the removal of the TDR accounting model, all loan modifications now will be accounted for under the general loan modification guidance in Subtopic 310-20. In addition, on a prospective basis, entities will be subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also will be required to prospectively disclose current-period gross write-off information by vintage, or year of origination. The Company adopted ASU 2022-02 on January 1, 2023 . The adoption of this standard did not have a material effect on the Company’s operating results or financial condition. On October 28, 2021, FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU requires contract assets and contract liabilities to be accounted for as if they (the acquirer) entered into the original contract at the same time and same date as the acquiree. This is a shift from existing guidance, which required the acquirer to recognize contract assets and contract liabilities at their fair value as of the acquisition date. The amendments in this Update were effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of this standard did not have a material effect on the Company’s operating results or financial condition. Management determined that Emclaire had an immaterial amount of contracts with customers. On March 12, 2020, the FASB issued ASU 2020-04 and amended by ASU 2021-01, Facilitation of the Effects of Reference Rate Reform on Financial Reporting , to ease the burden of accounting for contract modifications related to reference rate reform. The amendments in ASU 2020-04 create a new Topic in the Codification, ASC 848, Reference Rate Reform , which contains guidance that is designed to simplify how entities account for contracts that are modified to replace LIBOR or other benchmark interest rates with new rates. The amendments in ASU 2020-04 give entities the option to apply expedients and exceptions to contract modifications that are made until December 31, 2022, if certain criteria are met. If adopted, these amendments and exceptions should be applied to all eligible modifications to contracts that are accounted for under an ASC Topic or industry Subtopic. The guidance in ASC 848 does not apply to any contract modifications that was made after December 31, 2022. In December 2022, the FASB issued ASU 2022-06 that defers the sunset date from December 31, 2022 to December 31, 2024. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations: On January 1, 2023 , the Company completed its previously announced merger with Emclaire Financial Corp., a Pennsylvania corporation and registered financial holding company (“Emclaire”), pursuant to the Agreement and Plan of Merger dated as of March 23, 2022. The Farmers National Bank of Emlenton, the banking subsidiary of Emclaire, merged with and into The Farmers National Bank of Canfield, the national banking subsidiary of the Company, with Farmers Bank as the surviving bank. Pursuant to the terms of the Merger Agreement, at the effective time of the Merger (the “Effective Time”) Emclaire merged with and into Merger Sub (the “Merger”), with Merger Sub as the surviving entity in the Merger. Promptly following the consummation of the Merger, Merger Sub was dissolved and liquidated and The Farmers National Bank of Emlenton, the banking subsidiary of Emclaire, merged with and into The Farmers National Bank of Canfield, the national banking subsidiary of the Company, with Farmers Bank as the surviving bank. Pursuant to the terms of the Merger Agreement, at the effective time of the merger, each common share, without par value, of Emclaire common shares issued and outstanding was converted into the right to receive, without interest, $ 40.00 in cash or 2.15 common shares, without par value, of the Company's common shares, subject to an overall limitation of 70 % of the Emclaire common shares being exchanged and the remaining 30 % of Emclaire common shares being exchanged for the cash. The transaction created expansion for the Company in Pennsylvania and into the Pittsburgh market. The Company issued 4.2 million shares of its common stock along with cash of $ 33.4 million, which represented a transaction value of approximately $ 92.6 million based on its closing stock price of $ 14.12 on December 31, 2022. In accordance with ASC 805, the Company expensed approximately $ 4.8 million of merger related costs, for the Emclaire acquisition, during the six month period ended June 30, 2023, in addition to $ 2.0 million expensed for the entire year of 2022. The Company recorded goodwill of $ 73.4 million as a result of the combination. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies, including the reduction of personnel and overlapping contracts, expected to be derived from the Company’s strategy to enhance and expand its presence in Pennsylvania. The merger offers the Company the opportunity to increase profitability by introducing existing products and services to the acquired customer base as well as add new customers in the expanded market area. The goodwill was determined not to be deductible for income tax purposes. The fair value estimates included in these financial statements are based on preliminary valuations; certain loan, deferred tax, and premises and equipment measurements have not been finalized and are subject to change. The Company does not expect material variances from these estimates and expects that final valuation estimates will be completed prior to December 31, 2023. The following table summarizes the consideration paid for Emclaire and the amounts of the assets acquired and liabilities assumed on the closing date of the acquisition. (In Thousands of Dollars) Consideration Cash $ 33,440 Stock 59,202 Fair value of total consideration transferred $ 92,642 Fair value of assets acquired Cash and cash equivalents $ 20,265 Securities available for sale 126,970 Other investments 7,795 Loans, net 740,659 Premises and equipment 16,103 Bank owned life insurance 22,485 Core deposit intangible 19,249 Current and deferred taxes 17,246 Other assets 6,387 Total assets acquired 977,159 Fair value of liabilities assumed Deposits 875,813 Short-term borrowings 75,000 Accrued interest payable and other liabilities 7,104 Total liabilities 957,917 Net assets acquired $ 19,242 Goodwill created 73,400 Total net assets acquired $ 92,642 The fair value of net assets acquired includes fair value adjustments to certain receivables that were considered performing as of the acquisition date. The fair value adjustments were determined using the income method, discounted cash flow approach. However, the Company believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered purchase credit deteriorated ("PCD") at the acquisition date and were not subject to the guidance relating to PCD loans. Receivables acquired that were not subject to these requirements had a fair value and gross contractual amounts receivable of $ 714.4 million and $ 764.8 million on the date of acquisition. The fair value of purchased financial assets that were classified as PCD loans are discussed in the loan footnote. The following table presents unaudited pro forma information as if the Emclaire acquisition that occurred on January 1, 2023 actually took place on January 1, 2022. The unaudited pro forma information for the period ended June 30, 2022 includes adjustments of interest income on loans, amortization of core deposit intangibles arising from the transaction, interest expense on deposits and borrowings acquired. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effective on the assumed date. (In thousands of dollars except per share results) For Three Months For Six Months Net interest income $ 43,126 $ 85,127 Provision for credit losses 991 8,246 Noninterest income 10,427 29,133 Noninterest expense 28,253 69,426 Income before income taxes 24,309 36,588 Income tax expense 4,237 5,796 Net income $ 20,072 $ 30,792 Basic earnings per share $ 0.53 $ 0.81 Diluted earnings per share $ 0.53 $ 0.81 On July 1, 2022 , Farmers National Insurance, LLC acquired substantially all of the assets of Randy L. Jones Agency, Inc., doing business as Champion Insurance for $ 900 thousand. Intangible assets of $ 633 thousand were recorded along with goodwill of $ 267 thousand. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities: The following table summarizes the amortized cost and fair value of the available for sale investment securities portfolio at June 30, 2023 and December 31, 2022 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss): Gross Gross Amortized Unrealized Unrealized (In Thousands of Dollars) Cost Gains Losses Fair Value June 30, 2023 U.S. Treasury and U.S. government sponsored entities $ 155,169 $ 99 $ ( 20,103 ) $ 135,165 State and political subdivisions 648,030 951 ( 105,919 ) 543,062 Corporate bonds 18,329 25 ( 722 ) 17,632 Mortgage-backed securities 653,898 9 ( 112,783 ) 541,124 Collateralized mortgage obligations 82,965 117 ( 6,286 ) 76,796 Small Business Administration 3,459 0 ( 360 ) 3,099 Totals $ 1,561,850 $ 1,201 $ ( 246,173 ) $ 1,316,878 Gross Gross Amortized Unrealized Unrealized (In Thousands of Dollars) Cost Gains Losses Fair Value December 31, 2022 U.S. Treasury and U.S. government sponsored $ 149,712 $ 0 $ ( 21,616 ) $ 128,096 State and political subdivisions 651,705 266 ( 121,891 ) 530,080 Corporate bonds 4,181 0 ( 302 ) 3,879 Mortgage-backed securities - residential 672,784 12 ( 117,654 ) 555,142 Collateralized mortgage obligations 52,291 0 ( 4,937 ) 47,354 Small Business Administration 3,839 0 ( 365 ) 3,474 Totals $ 1,534,512 $ 278 $ ( 266,765 ) $ 1,268,025 There were no sales of available for sale securities in the three month period ended June 30, 2023. Proceeds from the sale of available for sale securities were $ 69.9 million for the six month period ended June 30, 2023. Gross gains of $ 441 thousand and gross losses of $ 321 thousand were realized on these sales for the six month period ended June 30, 2023. In addition, realized gains on equity securities of $ 13 thousand and $ 14 thousand were recognized in the income statement during the three and six month periods as of June 30, 2023, respectively. Proceeds from the sale of available for sale securities were $ 1.7 million for both the three and six month periods ended June 30, 2022. Gross losses of $ 31 thousand were realized on these sales for both the three and six month periods ended June 30, 2022. Realized losses on equity securities of $ 29 thousand and $ 40 thousand were recognized in the income statement during the three and six month periods as of June 30, 2022, respectively. The amortized cost and fair value of the debt securities portfolio are shown in the table below by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. June 30, 2023 (In Thousands of Dollars) Amortized Cost Fair Value Maturity Within one year $ 716 $ 706 One to five years 39,851 37,153 Five to ten years 180,584 159,597 Beyond ten years 600,377 498,403 Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities 740,322 621,019 Total $ 1,561,850 $ 1,316,878 The following table summarizes the available for sale investment securities with unrealized losses at June 30, 2023 and December 31, 2022, aggregated by major security type and length of time in a continuous unrealized loss position. Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands of Dollars) Value Loss Value Loss Value Loss June 30, 2023 U.S. Treasury and U.S. government sponsored entities $ 14,652 $ ( 692 ) $ 115,535 $ ( 19,411 ) $ 130,187 $ ( 20,103 ) State and political subdivisions 73,802 ( 2,835 ) 432,373 ( 103,084 ) 506,175 ( 105,919 ) Corporate bonds 11,011 ( 411 ) 3,561 ( 311 ) 14,572 ( 722 ) Mortgage-backed securities 4,678 ( 44 ) 535,644 ( 112,739 ) 540,322 ( 112,783 ) Collateralized mortgage obligations 28,977 ( 930 ) 40,852 ( 5,356 ) 69,829 ( 6,286 ) Small Business Administration 0 0 3,099 ( 360 ) 3,099 ( 360 ) Total temporarily impaired $ 133,120 $ ( 4,912 ) $ 1,131,064 $ ( 241,261 ) $ 1,264,184 $ ( 246,173 ) Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands of Dollars) Value Loss Value Loss Value Loss December 31, 2022 U.S. Treasury and U.S. government sponsored entities $ 52,311 $ ( 5,835 ) $ 75,685 $ ( 15,781 ) $ 127,996 $ ( 21,616 ) State and political subdivisions 306,709 ( 56,650 ) 191,584 ( 65,241 ) 498,293 ( 121,891 ) Corporate bonds 2,893 ( 122 ) 986 ( 180 ) 3,879 ( 302 ) Mortgage-backed securities - residential 101,476 ( 13,545 ) 453,233 ( 104,109 ) 554,709 ( 117,654 ) Collateralized mortgage obligations 42,140 ( 4,137 ) 5,214 ( 800 ) 47,354 ( 4,937 ) Small Business Administration 1,295 ( 122 ) 2,179 ( 243 ) 3,474 ( 365 ) Total temporarily impaired $ 506,824 $ ( 80,411 ) $ 728,881 $ ( 186,354 ) $ 1,235,705 $ ( 266,765 ) Allowance for Credit Losses Management evaluates securities available for sale for credit losses. During the evaluation process, management considers the extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. If the Company determines that a credit loss exists, the credit portion of the allowance will be measured using a discounted cash flow analysis using the effective interest rate as of the security’s purchase date. As of June 30, 2023, the Company’s security portfolio consisted of 988 securities, 899 of which were in an unrealized loss position. The majority of the unrealized losses on the Company’s securities are related to its holdings of mortgage-backed securities and state and political subdivisions. The Company does not consider its available for sale ("AFS") securities with unrealized losses to be attributable to credit-related factors, as the unrealized losses have occurred as a result of changes in noncredit related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. In addition, management has the ability and the intent to hold the securities for a period of time sufficient to allow for any recovery in fair value. As of June 30, 2023 the Company has no t recorded an allowance for credit losses on AFS securities. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Loans | Loans: Loan balances were as follows: (In Thousands of Dollars) June 30, 2023 December 31, 2022 Commercial real estate Owner occupied $ 357,329 $ 330,768 Non-owner occupied 697,486 563,652 Farmland 192,182 188,850 Other 230,160 133,630 Commercial Commercial and industrial 362,664 293,643 Agricultural 58,625 58,087 Residential real estate 1-4 family residential 849,533 475,791 Home equity lines of credit 138,535 132,179 Consumer Indirect 226,187 197,125 Direct 25,980 16,421 Other 8,159 7,714 Total loans $ 3,146,840 $ 2,397,860 Net deferred loan costs 8,360 6,890 Allowance for credit losses ( 34,957 ) ( 26,978 ) Net loans $ 3,120,243 $ 2,377,772 Allowance for credit loss activity The following tables present the activity in the allowance for credit losses by portfolio segment for the three and six month periods ended June 30, 2023 and 2022: Three Months Ended June 30, 2023 (In Thousands of Dollars) Commercial Commercial Residential Consumer Total Allowance for credit losses Beginning balance $ 19,819 $ 5,230 $ 6,732 $ 4,230 $ 36,011 PCD ACL on loans acquired 0 0 0 0 0 (Credit) Provision for credit losses ( 1,125 ) 639 131 100 ( 255 ) Loans charged off ( 157 ) ( 591 ) ( 11 ) ( 212 ) ( 971 ) Recoveries 0 17 14 141 172 Total ending allowance balance $ 18,537 $ 5,295 $ 6,866 $ 4,259 $ 34,957 Six Months Ended June 30, 2023 (In Thousands of Dollars) Commercial Commercial Residential Consumer Total Allowance for credit losses Beginning balance $ 14,840 $ 4,186 $ 4,374 $ 3,578 $ 26,978 PCD ACL on loans acquired 850 138 11 0 999 Provision for credit losses 3,003 1,683 2,529 835 8,050 Loans charged off ( 157 ) ( 734 ) ( 94 ) ( 455 ) ( 1,440 ) Recoveries 1 22 46 301 370 Total ending allowance balance $ 18,537 $ 5,295 $ 6,866 $ 4,259 $ 34,957 Three Months Ended June 30, 2022 (In Thousands of Dollars) Commercial Commercial Residential Consumer Total Allowance for credit losses Beginning balance $ 15,207 $ 3,867 $ 4,702 $ 3,239 $ 27,015 (Credit) Provision for credit losses ( 349 ) 70 197 564 482 Loans charged off 0 ( 46 ) 0 ( 132 ) ( 178 ) Recoveries 1 2 16 116 135 Total ending allowance balance $ 14,859 $ 3,893 $ 4,915 $ 3,787 $ 27,454 Six Months Ended June 30, 2022 (In Thousands of Dollars) Commercial Commercial Residential Consumer Total Allowance for credit losses Beginning balance $ 15,879 $ 4,949 $ 4,870 $ 3,688 $ 29,386 (Credit) Provision for credit losses ( 1,021 ) 341 51 181 ( 448 ) Loans charged off 0 ( 1,405 ) ( 34 ) ( 329 ) ( 1,768 ) Recoveries 1 8 28 247 284 Total ending allowance balance $ 14,859 $ 3,893 $ 4,915 $ 3,787 $ 27,454 The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company's historical loss experience from December 31, 2011 to June 30, 2023. As of June 30, 2023, the Company expects that the markets in which it operates will experience minimal changes to economic conditions, stable trend in unemployment rate, and a level trend of delinquencies. Management adjusted historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company's estimate was a cumulative loss rate covering the expected contractual term of the portfolio. While there are many factors that go into the calculation of the allowance for credit losses, the change in the balances from June 30, 2022 to June 30, 2023 is largely attributed to the Emlenton merger. The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of June 30, 2023: (In Thousands of Dollars) Nonaccrual with no allowance for credit loss Nonaccrual with an allowance for credit loss Loans past due over 89 days still accruing June 30, 2023 Commercial real estate Owner occupied $ 679 $ 486 $ 0 Non-owner occupied 1,891 6,285 0 Farmland 2,059 113 0 Other 0 19 0 Commercial Commercial and industrial 117 1,780 0 Agricultural 224 198 0 Residential real estate 1-4 family residential 269 2,096 594 Home equity lines of credit 274 242 112 Consumer Indirect 10 296 57 Direct 65 86 1 Other 0 3 0 Total loans $ 5,588 $ 11,604 $ 764 The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of December 31, 2022: December 31, 2022 (In Thousands of Dollars) Nonaccrual Loans Past Commercial real estate Owner occupied $ 993 $ 0 Non-owner occupied 3,031 0 Farmland 2,183 0 Other 33 0 Commercial Commercial and industrial 3,840 50 Agricultural 299 0 Residential real estate 1-4 family residential 2,703 310 Home equity lines of credit 735 58 Consumer Indirect 313 62 Direct 179 12 Other 2 0 Total loans $ 14,311 $ 492 The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2023: (In Thousands of Dollars) Real Estate Business Assets Vehicles Cash June 30, 2023 Commercial real estate Owner occupied $ 801 $ 0 $ 0 $ 0 Non-owner occupied 5,080 0 0 0 Farmland 2,059 0 0 0 Other 0 0 0 0 Commercial Commercial and industrial 0 1,170 0 0 Agricultural 0 224 0 0 Residential real estate 1-4 family residential 1,576 0 0 0 Home equity lines of credit 331 0 0 0 Consumer Indirect 0 0 48 0 Direct 0 0 24 66 Other 0 0 0 0 Total loans $ 9,847 $ 1,394 $ 72 $ 66 The following tables present the aging of the recorded investment in past due loans as of June 30, 2023 and December 31, 2022 by class of loans. (In Thousands of Dollars) 30-59 60-89 90 Days or Total Past Loans Not Total June 30, 2023 Commercial real estate Owner occupied $ 345 $ 0 $ 1,165 $ 1,510 $ 355,556 $ 357,066 Non-owner occupied 0 0 8,176 8,176 688,768 696,944 Farmland 321 0 2,172 2,493 189,452 191,945 Other 80 0 19 99 229,719 229,818 Commercial Commercial and industrial 378 239 1,897 2,514 361,437 363,951 Agricultural 227 166 422 815 58,511 59,326 Residential real estate 1-4 family residential 8,256 979 2,959 12,194 837,014 849,208 Home equity lines of credit 214 108 628 950 137,617 138,567 Consumer Indirect 822 79 363 1,264 232,945 234,209 Direct 81 16 152 249 25,758 26,007 Other 6 4 3 13 8,146 8,159 Total loans $ 10,730 $ 1,591 $ 17,956 $ 30,277 $ 3,124,923 $ 3,155,200 (In Thousands of Dollars) 30-59 60-89 90 Days or Total Past Loans Not Total December 31, 2022 Commercial real estate Owner occupied $ 159 $ 0 $ 993 $ 1,152 $ 329,305 $ 330,457 Non-owner occupied 0 0 3,031 3,031 560,013 563,044 Farmland 0 0 2,183 2,183 186,399 188,582 Other 0 0 33 33 133,288 133,321 Commercial Commercial and industrial 1,034 185 3,890 5,109 289,297 294,406 Agricultural 104 20 299 423 58,166 58,589 Residential real estate 1-4 family residential 4,247 1,775 3,013 9,035 466,313 475,348 Home equity lines of credit 115 92 793 1,000 131,209 132,209 Consumer Indirect 1,267 298 375 1,940 202,683 204,623 Direct 234 70 191 495 15,962 16,457 Other 0 5 2 7 7,707 7,714 Total loans $ 7,160 $ 2,445 $ 14,803 $ 24,408 $ 2,380,342 $ 2,404,750 |
Loan Restructurings
Loan Restructurings | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Loan Restructurings | Loan Restructurings The Company adopted the accounting guidance in ASU No. 2022-02, effective as of January 1, 2023 , which eliminates the recognition and measurement of troubled debt restructurings ("TDRs"). Due to the removal of the TDR designation, the Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows. Any restructuring of a loan in which the borrower has experienced financial difficulty and the terms of the loan are more favorable than would generally be considered for borrowers with the same credit characteristics would be individually evaluated. Otherwise, the restructured loan remains in the appropriate segment in the ACL model. The following table shows the amortized cost basis for the loans restructured during the three and six months ended June 30, 2023 to borrowers experiencing financial difficulty, disaggregrated by class of financing receivables: Three Months Ended June 30, 2023 Restructured Loans (In Thousands of Dollars) Number of Contracts Amortized Cost Basis % of Total class of Financing receivable Total accruing restructured loans 0 $ 0 0.00 % Nonaccrual restructured loans Total nonaccrual restructured loans 0 $ 0 0.00 % Total restructured loans 0 $ 0 0.00 % Six Months Ended June 30, 2023 Restructured Loans (In Thousands of Dollars) Number of Contracts Amortized Cost Basis % of Total class of Financing receivable Commercial Commercial and industrial 1 $ 50 0.01 % Total accruing restructured loans 1 $ 50 0.01 % Nonaccrual restructured loans Total nonaccrual restructured loans 0 $ 0 0.00 % Total restructured loans 1 $ 50 0.01 % During the first quarter of 2023 the Company modified a commercial line of credit as a restructured loan. This nonperforming loan was extended with payments deferred until maturity to allow the borrower to complete the remediation process needed to obtain a "No Further Action" letter from the EPA that is needed to finalize the sale of the real estate securing the loan. This loan is included as an individually evaluated loan with no specific reserve due to the anticipated sale of the real estate which will sufficiently retire the debt. The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the three and six months ended June 30, 2023: Three Months Ended June 30, 2023 Payment status (Amortized cost Basis) (In Thousands of Dollars) Current 30-89 Days past due 90+ Days past due Total accruing restructured loans $ 0 $ 0 $ 0 Nonaccrual restructured loans Total nonaccrual restructured loans $ 0 $ 0 $ 0 Total restructured loans $ 0 $ 0 $ 0 Six Months Ended June 30, 2023 Payment status (Amortized cost Basis) (In Thousands of Dollars) Current 30-89 Days past due 90+ Days past due Commercial Commercial and industrial $ 50 $ 0 $ 0 Total accruing restructured loans $ 50 $ 0 $ 0 Nonaccrual restructured loans Total nonaccrual restructured loans $ 0 $ 0 $ 0 Total restructured loans $ 50 $ 0 $ 0 As of June 30, 2023, the Company had no commitments to lend any additional funds on restructured loans. As of June 30, 2023, the Company had no loans that defaulted during the period and had been modified preceding the payment default when the borrower was experiencing financially difficulty at the time of modification. For purposes of this disclosure a default occurs when, within 12 months of the original modification, a loan is 30 days contractually past due under the modified terms. |
Credit Quality Indicators
Credit Quality Indicators | 6 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Credit Quality Indicators | Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company establishes a risk rating at origination for all commercial loan and commercial real estate relationships. For relationships over $ 1 million, management monitors the loans on an ongoing basis for any changes in the borrower’s ability to service their debt. Management also affirms the risk ratings for the loans in their respective portfolios on an annual basis. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of June 30, 2023 and December 31, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (In Thousands of Dollars) Pass Special Sub Total June 30, 2023 Commercial real estate Owner occupied $ 347,171 $ 5,326 $ 4,569 $ 357,066 Non-owner occupied 646,559 22,362 28,023 696,944 Farmland 189,238 0 2,707 191,945 Other 222,049 7,550 219 229,818 Commercial Commercial and industrial 347,795 7,142 9,014 363,951 Agricultural 58,869 0 457 59,326 Total loans $ 1,811,681 $ 42,380 $ 44,989 $ 1,899,050 (In Thousands of Dollars) Pass Special Sub Total December 31, 2022 Commercial real estate Owner occupied $ 324,979 $ 1,193 $ 4,285 $ 330,457 Non-owner occupied 527,267 25,541 10,236 563,044 Farmland 186,057 0 2,525 188,582 Other 133,218 0 103 133,321 Commercial Commercial and industrial 282,412 777 11,217 294,406 Agricultural 58,002 250 337 58,589 Total loans $ 1,511,935 $ 27,761 $ 28,703 $ 1,568,399 The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential, consumer indirect and direct loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. In the 1-4 family residential real estate portfolio at June 30, 2023, other real estate owned and foreclosure properties were $ 34 thousand and $ 178 thousand, respectively. At December 31, 2022, other real estate owned and foreclosure properties were $ 0 and $ 129 thousand, respectively. The following tables present the recorded investment in residential, consumer indirect and direct auto loans based on payment activity as of June 30, 2023 and December 31, 2022. Nonperforming loans are loans past due 90 days or more and still accruing interest and nonaccrual loans. Residential Real Estate Consumer (In Thousands of Dollars) 1-4 Family Home Indirect Direct Other June 30, 2023 Performing $ 846,249 $ 137,939 $ 233,846 $ 25,855 $ 8,156 Nonperforming 2,959 628 363 152 3 Total loans $ 849,208 $ 138,567 $ 234,209 $ 26,007 $ 8,159 Residential Real Estate Consumer (In Thousands of Dollars) 1-4 Family Home Indirect Direct Other December 31, 2022 Performing $ 472,335 $ 131,416 $ 204,248 $ 16,266 $ 7,712 Nonperforming 3,013 793 375 191 2 Total loans $ 475,348 $ 132,209 $ 204,623 $ 16,457 $ 7,714 The following table presents total loans by risk categories and year of origination. Term Loans Amortized Cost Basis by Origination Year As of June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Risk Rating Pass $ 54,049 $ 254,672 $ 225,147 $ 143,875 $ 151,048 $ 373,002 $ 13,986 $ 1,215,779 Special mention 0 0 4,496 12,838 8,515 9,389 0 35,238 Substandard 0 0 1,650 3,841 2,063 24,149 1,108 32,811 Total commercial real estate loans $ 54,049 $ 254,672 $ 231,293 $ 160,554 $ 161,626 $ 406,540 $ 15,094 $ 1,283,828 Commercial real estate current period gross write-offs $ 0 $ 0 $ 0 $ 0 $ 1 $ 156 $ 0 $ 157 Commercial and industrial Risk Rating Pass $ 63,363 $ 97,102 $ 48,716 $ 29,047 $ 13,470 $ 29,190 $ 66,907 $ 347,795 Special mention 0 174 616 75 1,038 10 5,229 7,142 Substandard 228 3,408 333 783 294 1,006 2,962 9,014 Total commercial loans $ 63,591 $ 100,684 $ 49,665 $ 29,905 $ 14,802 $ 30,206 $ 75,098 $ 363,951 Commercial and industrial current period gross write-offs $ 0 $ 95 $ 377 $ 11 $ 16 $ 172 $ 0 $ 671 Agricultural Risk Rating Pass $ 18,279 $ 53,234 $ 32,543 $ 41,069 $ 21,627 $ 64,050 $ 17,305 $ 248,107 Special mention 0 0 0 0 0 0 0 0 Substandard 0 0 369 216 61 2,390 128 3,164 Total agricultural loans $ 18,279 $ 53,234 $ 32,912 $ 41,285 $ 21,688 $ 66,440 $ 17,433 $ 251,271 Agricultural current period gross write-offs $ 0 $ 15 $ 44 $ 0 $ 0 $ 4 $ 0 $ 63 Residential real estate Risk Rating Pass $ 26,642 $ 177,294 $ 169,952 $ 141,482 $ 51,291 $ 268,622 $ 3,699 $ 838,982 Special mention 0 0 0 68 113 159 0 340 Substandard 0 31 455 440 378 8,582 0 9,886 Total residential real estate loans $ 26,642 $ 177,325 $ 170,407 $ 141,990 $ 51,782 $ 277,363 $ 3,699 $ 849,208 Residential real estate current period gross write-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 82 $ 0 $ 82 Home equity lines of credit Risk Rating Pass $ 0 $ 19 $ 10 $ 47 $ 67 $ 2,066 $ 134,014 $ 136,223 Special mention 0 0 0 0 0 0 38 38 Substandard 0 27 50 82 20 2,028 99 2,306 Total home equity lines of credit $ 0 $ 46 $ 60 $ 129 $ 87 $ 4,094 $ 134,151 $ 138,567 Home equity lines of credit current period gross write-offs $ 0 $ 0 $ 0 $ 8 $ 0 $ 4 $ 0 $ 12 Consumer Risk Rating Pass $ 44,887 $ 87,410 $ 40,831 $ 27,009 $ 16,462 $ 43,017 $ 7,843 $ 267,459 Substandard 0 168 65 245 176 262 0 916 Total consumer loans $ 44,887 $ 87,578 $ 40,896 $ 27,254 $ 16,638 $ 43,279 $ 7,843 $ 268,375 Consumer current period gross write-offs $ 0 $ 113 $ 46 $ 76 $ 30 $ 157 $ 33 $ 455 Term Loans Amortized Cost Basis by Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Total Commercial real estate Risk Rating Pass $ 188,240 $ 174,841 $ 120,883 $ 138,342 $ 89,769 $ 256,103 $ 17,286 $ 985,464 Special mention 0 711 1,861 5,286 624 18,252 0 26,734 Substandard 0 18 256 1,968 267 10,952 1,163 14,624 Total commercial real estate loans $ 188,240 $ 175,570 $ 123,000 $ 145,596 $ 90,660 $ 285,307 $ 18,449 $ 1,026,822 Commercial Risk Rating Pass $ 100,368 $ 45,872 $ 34,110 $ 16,854 $ 13,574 $ 14,664 $ 56,970 $ 282,412 Special mention 0 197 0 0 0 0 580 777 Substandard 3,642 1,331 356 152 110 1,761 3,865 11,217 Total commercial loans $ 104,010 $ 47,400 $ 34,466 $ 17,006 $ 13,684 $ 16,425 $ 61,415 $ 294,406 Agricultural Risk Rating Pass $ 51,096 $ 36,376 $ 44,133 $ 23,661 $ 24,003 $ 45,490 $ 19,300 $ 244,059 Special mention 0 0 0 0 0 0 250 250 Substandard 0 379 235 72 0 2,146 30 2,862 Total agricultural loans $ 51,096 $ 36,755 $ 44,368 $ 23,733 $ 24,003 $ 47,636 $ 19,580 $ 247,171 Residential real estate Risk Rating Pass $ 83,951 $ 112,463 $ 76,095 $ 31,404 $ 22,918 $ 135,757 $ 3,956 $ 466,544 Special mention 0 0 70 118 76 93 0 357 Substandard 0 136 249 121 9 7,932 0 8,447 Total residential real estate loans $ 83,951 $ 112,599 $ 76,414 $ 31,643 $ 23,003 $ 143,782 $ 3,956 $ 475,348 Home equity lines of credit Risk Rating Pass $ 0 $ 10 $ 0 $ 0 $ 16 $ 1,394 $ 128,622 $ 130,042 Special mention 0 0 0 0 0 0 49 49 Substandard 0 13 137 20 0 1,848 100 2,118 Total home equity lines of credit $ 0 $ 23 $ 137 $ 20 $ 16 $ 3,242 $ 128,771 $ 132,209 Consumer Risk Rating Pass $ 98,530 $ 46,945 $ 32,284 $ 20,849 $ 10,918 $ 10,942 $ 7,302 $ 227,770 Special mention 0 0 0 0 0 0 0 0 Substandard 102 113 267 230 109 202 1 1,024 Total consumer loans $ 98,632 $ 47,058 $ 32,551 $ 21,079 $ 11,027 $ 11,144 $ 7,303 $ 228,794 The Company follows ASU 2016-13 to calculate the allowance for credit losses which requires projecting credit losses over the lifetime of the credits. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of any underlying collateral. The credit loss estimation process involves procedures that consider the unique characteristics of the Company’s loan portfolio segments. These segments are disaggregated into the loan pools for monitoring. A model of risk characteristics, such as loss history and delinquency experience, trends in past due and non-performing loans, as well as existing economic conditions and supportable forecasts are used to determine credit loss assumptions. The Company uses two methodologies to analyze loan pools. The cohort method and the PD/LGD. Cohort relies on the creation of cohorts to capture loans that qualify for a particular segment, as of a point in time. Those loans are then tracked over their remaining lives to determine their loss experience. The Company aggregates financial assets on the basis of similar risk characteristics when evaluating loans on a collective basis. Those characteristics include, but aren’t limited to, internal or external credit score, risk ratings, financial asset, loan type, collateral type, size, effective interest rate, term, or geographical location. The Company uses cohort primarily for consumer loan portfolios. The probability of default portion of PD/LGD is defined by the Company as 90 days past due, placed on non-accrual, loan restructuring for borrowers experiencing financial difficulty or is partially, or wholly, charged-off. Typically, a one-year time period is used to asses PD. PD can be measured and applied using various risk criteria. Risk rating is one common way to apply PDs. Loss given default LGD is to determine the percentage of loss by facility or collateral type. LGD estimates can sometimes be driven, or influenced, by product type, industry or geography. The Company uses PD/LGD primarily for commercial loan portfolios. The following table presents the loan pools and the associated methodology used during the calculation of the allowance for credit losses in 2023. Portfolio Segments Loan Pool Methodology Loss Drivers Residential real estate 1-4 Family Residential Real Estate - 1st Liens Cohort Credit Loss History 1-4 Family Residential Real Estate - 2nd Liens Cohort Credit Loss History Home Equity Lines of Credit Home Equity Lines of Credit Cohort Credit Loss History Consumer Finance Cash Reserves Cohort Credit Loss History Direct Cohort Credit Loss History Indirect Cohort Credit Loss History Commercial Commercial and Industrial PD/LGD Credit Loss History Agricultural PD/LGD Credit Loss History Municipal PD/LGD Credit Loss History Commercial real estate Owner Occupied PD/LGD Credit Loss History Non-Owner Occupied PD/LGD Credit Loss History Multifamily PD/LGD Credit Loss History Farmland PD/LGD Credit Loss History Construction PD/LGD Credit Loss History According to the accounting standard an entity may make an accounting policy election not to measure an allowance for credit losses for accrued interest receivable if the entity writes off the applicable accrued interest receivable balance in a timely manner. The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables for all loan segments. Current policy dictates that a loan will be placed on nonaccrual status, with the current accrued interest receivable balance being written off, upon the loan being 90 days delinquent or when the loan is deemed to be collateral dependent and the collateral analysis shows insufficient collateral coverage based on a current assessment of the value of the collateral. In addition, ASC Topic 326 requires the Company to establish a liability for anticipated credit losses for unfunded commitments. To accomplish this, the Company must first establish a loss expectation for extended (funded) commitments. This loss expectation, expressed as a ratio to the amortized cost basis, is then applied to the portion of unfunded commitments not considered unilaterally cancelable, and considered by the company’s management as likely to fund over the life of the instrument. At June 30, 2023, the Company had $ 741 million in unfunded commitments and set aside $ 1.98 million in anticipated credit losses. This reserve is recorded in other liabilities as opposed to the ACL. The determination of the ACL is complex and the Company makes decisions on the effects of factors that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgments as to the facts and circumstances related to particular situations or credits. For the three months ended June 30, 2023, the allowance for credit losses decreased from March 31, 2023 due to the improvement in the Company's maximum loss rates that anchor the qualitative factor adjustments and a reclassification of construction loan balances that were placed into their permanent loan pool. These factors were partially offset by adjustments to the Portfolio Composition and Growth qualitative factor for the Company's residential and consumer loan portfolios to account for a more defined qualitative methodology. Purchased Loans As a result of the Emlenton Merger, the Company acquired $ 740.7 million in loans. 2023 Par value of acquired loans at acquisition $ 797,616 Net purchase discount ( 55,958 ) Allowance for credit losses of PCD loans ( 999 ) Purchase price of loans at acquisition $ 740,659 Under ASU Topic 326 , when loans are purchased with evidence of more than significant deterioration of credit, they are accounted for as purchase credit deteriorated (“PCD”). PCD loans acquired in a transaction are marked to fair value and a mark on yield is recorded. In addition, an adjustment is made to the ACL for the expected loss on the acquisition date. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the income statement. During 2023, the Company acquired PCD loans with a fair value of $ 25.9 million, credit discount of $ 999 thousand and a noncredit discount of $ 5.5 million. The outstanding balance at June 30, 2023 and related allowance on PCD loans is as follows: Loan Balance ACL Balance Commercial real estate Owner Occupied $ 1,739 $ 33 Non-owner Occupied 35,694 1,222 Farmland 13 0 Commercial Commercial and industrial 2,655 160 Agricultural 149 10 Residential real estate 1-4 family residential 3,512 21 Home equity lines of credit 3 0 Total $ 43,765 $ 1,446 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers: All material revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s noninterest income by revenue stream and reportable segment, net of eliminations, for the three and six months ended June 30, 2023 and 2022. (In Thousands of Dollars) Trust Bank Totals For Three Months Ended June 30, 2023 Service charges on deposit accounts $ 0 $ 1,501 $ 1,501 Debit card and EFT fees 0 1,810 1,810 Trust fees 2,248 0 2,248 Insurance agency commissions 0 1,332 1,332 Retirement plan consulting fees 382 0 382 Investment commissions 0 476 476 Other (outside the scope of ASC 606) 0 1,700 1,700 Total noninterest income $ 2,630 $ 6,819 $ 9,449 (In Thousands of Dollars) Trust Bank Totals For Three Months Ended June 30, 2022 Service charges on deposit accounts $ 0 $ 1,139 $ 1,139 Debit card and EFT fees 0 1,528 1,528 Trust fees 2,376 0 2,376 Insurance agency commissions 0 1,086 1,086 Retirement plan consulting fees 323 0 323 Investment commissions 0 557 557 Other (outside the scope of ASC 606) 0 2,468 2,468 Total noninterest income $ 2,699 $ 6,778 $ 9,477 (In Thousands of Dollars) Trust Bank Totals For Six Months Ended June 30, 2023 Service charges on deposit accounts $ 0 $ 2,933 $ 2,933 Debit card and EFT fees 0 3,599 3,599 Trust fees 4,835 0 4,835 Insurance agency commissions 0 2,788 2,788 Retirement plan consulting fees 689 0 689 Investment commissions 0 869 869 Other (outside the scope of ASC 606) 0 4,161 4,161 Total noninterest income $ 5,524 $ 14,350 $ 19,874 (In Thousands of Dollars) Trust Bank Totals For Six Months Ended June 30, 2022 Service charges on deposit accounts $ 0 $ 2,284 $ 2,284 Debit card and EFT fees 0 2,944 2,944 Trust fees 4,895 0 4,895 Insurance agency commissions 0 2,133 2,133 Retirement plan consulting fees 720 0 720 Investment commissions 0 1,251 1,251 Other (outside the scope of ASC 606) 8,375 4,573 12,948 Total noninterest income $ 13,990 $ 13,185 $ 27,175 A description of the Company’s revenue streams under ASC 606 follows: Service charges on deposit accounts – The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Management reviewed the deposit account agreements, and determined that the agreements can be terminated at any time by either the Bank or the account holder. Transaction fees, such as balance transfers, wires and overdraft charges are settled the day the performance obligation is satisfied. The Bank’s monthly service charges and maintenance fees are for services provided to the customer on a monthly basis and are considered a series of services that have the same pattern of transfer each month. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. It was found that the waiver of service charges due to insufficient funds and dormant account fees is immaterial and would not require a change in the accounting treatment for these fees under the revenue standards. Debit Card Interchange Fees – Customers and the Bank have an account agreement and maintain deposit balances with the Bank. Customers use a bank issued debit card to purchase goods and services, and the Bank earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Bank records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. There are no contingent debit card interchange fees recorded by the Company that could be subject to a clawback in future periods. Trust fees – Services provided to Trust customers are a series of distinct services that have the same pattern of transfer each month. Fees for trust accounts are billed and drafted from trust accounts monthly. The Company records these fees on the income statement on a monthly basis. Fees are assessed based on the total investable assets of the customer’s trust account. A signed contract between the Company and the customer is maintained for all customer trust accounts with payment terms identified. It is probable that the fees will be collectible as funds being managed are accessible by the asset manager. Past history of trust fee income recorded by the Company indicates that it is highly unlikely that a significant reversal could occur. There are no contingent incentive fees recorded by the Company that could be subject to a clawback in future periods. Insurance Agency Commissions – Insurance agency commissions are received from insurance carriers for the agency’s share of commissions from customer premium payments. These commissions are recorded into income when checks are received from the insurance carriers, and there is no contingent portion associated with these commission checks. There may be a short time-lag in recording revenue when cash is received instead of recording the revenue when the policy is signed by the customer, but the time lag is insignificant and does not impact the revenue recognition process. Insurance also receives incentive checks from the insurance carriers for achieving specified levels of production with particular carriers. These amounts are recorded into income when a check is received, and there are no contingent amounts associated with these payments that may be clawed back by the carrier in the future. Similar to the monthly commissions explained in the preceding paragraph, there may be a short time-lag in recording incentive revenue on a cash basis as opposed to estimating the amount of incentive revenue expected to be earned, this does not materially impact the recognition of Insurance revenue. If there were any amounts that would need to be refunded for one specific Insurance customer, management believes the reversal would not be significant. Other potential situations surrounding the recognition of Insurance revenue include estimating potential refunds due to the likely cancellation of a percentage of customers canceling their policies and recording revenue at the time of policy renewals. Management concluded that since Insurance agency commissions represent only 2.3 % of the Company’s total revenue, adjusting the current practice of recording insurance revenue for these situations would not have a material impact on the reporting of total revenue. Retirement Plan Consulting Fees – Revenue is recognized based on the level of work performed for the client. Any payments that are received for work to be performed in the future are recorded in a deferred revenue account, and recorded into income when the fees are earned. Retirement plan consulting fees represent only 0.5 % of the Company’s total revenue, and therefore management has concluded that any adjustment of revenue for one particular customer for a refund or any other reason would be insignificant and would not materially impact the Company’s total revenue. Investment Commissions – Investment commissions are earned through the sales of non-deposit investment products to customers of the Company. The sales are conducted through a third-party broker-dealer. When the commissions are received and recorded into income on the Bank’s income statement, there is no contingent portion that may need to be refunded back to the third party broker dealer. Investment commissions represent only 0.7 % of the Company’s total revenue, and therefore management has concluded that any adjustment of revenue for a particular customer for a refund or any other reason would be insignificant and would not materially impact the Company’s total revenue. Other – Income items included in “Other” are Bank owned life insurance income, security gains, net gains on the sale of loans and other operating income. There is also a one-time legal settlement of $ 8.4 million for the six month period ended June 30, 2022. Any amounts within the scope of ASC 606 are deemed immaterial. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value: Fair value is the exchange price that would be received for an asset, or paid to transfer a liability (exit price), in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment Securities: The Company uses a third party service to estimate fair value on available for sale securities on a monthly basis. The Company’s service provider uses a leading evaluation pricing service for U.S. domestic fixed income securities and values securities using exit pricing requirements. The Company independently corroborates the fair value received through this pricing service by obtaining the pricing through a second source. The fair values for investment securities, which consist of equity securities that are recorded at fair market value to comply with exit pricing, are determined by quoted market prices in active markets, if available (Level 1). The equity securities change in fair market value is recorded in the income statements. For securities where quoted prices are not available, fair values are calculated based on quoted prices for similar assets in active markets, quoted prices for similar assets in markets that are not active or inputs other than quoted prices, which provide a reasonable basis for fair value determination. Such inputs may include interest rates and yield curves, prepayment speeds, credit risks and default rates. Inputs used are derived principally from observable market data (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The fair values of Level 3 investment securities are determined by using unobservable inputs to measure fair value of assets for which there is little, if any, market activity at the measurement date, using reasonable inputs and assumptions based on the best information at the time, to the extent that inputs are available without undue cost and effort. Mortgage Banking Derivatives: The fair value of mortgage banking derivatives are calculated using derivative valuation models that utilize quoted prices for similar assets adjusted for the specific attributes of the commitments and other observable market data at the valuation date. (Level 2). Interest Rate Swaps: The fair value of interest rate swap derivative instruments are based on valuation models using observable market data as of the measurement date. The loan agreement containing a two-way yield maintenance provision if invoked is expected to exactly offset the fair value of unwinding the swap. The yield maintenance provision represents an embedded derivative which is bifurcated from the host loan contract and, as such, the swaps and embedded derivatives are not designated as hedges (Level 2). Loans Held for Sale: The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification. Collateral Dependent Loans: Fair value estimates of collateral dependent loans that are individually reviewed are based on the fair value of the collateral, less estimated costs to sell. Loans carried at fair value generally receive specific allocations of the allowance for credit losses in the current period, 2023 and 2022. For collateral dependent loans, fair value is commonly based on recent real estate appraisals or in quoted sales prices in certain instances. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Adjustments to quoted price are routinely made to factor in data that affect the marketability of the collateral. Such adjustments, in both instances, are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. These loans are evaluated on a quarterly basis and adjusted accordingly. Other Real Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair values are commonly based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent loans and other real estate owned are performed by certified general appraisers (for commercial and commercial real estate properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Appraisal Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On an annual basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what adjustments should be made to appraisals to arrive at fair value. Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurements at June 30, 2023 Using: (In Thousands of Dollars) Carrying Quoted Prices in Identical Assets Significant Other Significant Financial Assets Investment securities available-for sale U.S. Treasury and U.S. government sponsored entities $ 135,165 $ 0 $ 135,165 $ 0 State and political subdivisions 543,062 0 543,062 0 Corporate bonds 17,632 0 16,409 1,223 Mortgage-backed securities-residential 541,124 0 541,123 1 Collateralized mortgage obligations 76,796 0 76,796 0 Small Business Administration 3,099 0 3,099 0 Equity securities Equity securities at fair value 218 218 0 0 Other investments measured at net asset value 15,034 n/a n/a n/a Total investment securities $ 1,332,130 $ 218 $ 1,315,654 $ 1,224 Loans held for sale $ 2,197 $ 0 $ 1,703 $ 0 Interest rate swaps 5,494 $ 0 5,494 0 Mortgage banking derivative 14 0 14 0 Financial Liabilities Interest rate swaps $ 5,494 $ 0 $ 5,494 $ 0 Fair Value Measurements at December 31, 2022 Using: (In Thousands of Dollars) Carrying Quoted Prices in Significant Other Significant Financial Assets Investment securities available-for sale U.S. Treasury and U.S. government sponsored entities $ 128,096 $ 0 $ 128,096 $ 0 State and political subdivisions 530,080 0 530,080 0 Corporate bonds 3,879 0 3,879 0 Mortgage-backed securities-residential 555,142 0 555,141 1 Collateralized mortgage obligations 47,354 0 47,354 0 Small Business Administration 3,474 0 3,474 0 Equity securities Equity securities at fair value 196 196 0 0 Other investments measured at net asset value 15,048 n/a n/a n/a Total investment securities $ 1,283,269 $ 196 $ 1,268,024 $ 1 Loans held for sale $ 858 $ 0 $ 858 $ 0 Interest rate swaps 5,503 0 5,503 0 Mortgage banking derivative -asset 31 0 31 0 Financial Liabilities Interest rate swaps $ 5,503 $ 0 $ 5,503 $ 0 There were no significant transfers between Level 1 and Level 2 during the periods presented above. The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months ended Six Months ended (In Thousands of Dollars) 2023 2022 2023 2022 Beginning Balance $ 1,616 $ 2 $ 1 $ 3 Transfers between levels 0 0 0 0 Acquired and/or purchased 0 0 1,615 0 Repayments, calls and maturities ( 392 ) 0 ( 392 ) ( 1 ) Ending Balance $ 1,224 $ 2 $ 1,224 $ 2 Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at June 30, 2023 Using: (In Thousands of Dollars) Carrying Quoted Prices in Significant Other Significant Financial Assets Individually evaluated loans Commercial real estate Non-owner occupied $ 2,920 $ 0 $ 0 $ 2,920 Commercial Commercial and industrial $ 395 $ 0 $ 0 $ 395 Fair Value Measurements at December 31, 2022 Using: (In Thousands of Dollars) Carrying Quoted Prices in Significant Other Significant Financial Assets Individually Evaluated loans Commercial real estate Non-owner occupied $ 746 0 0 $ 746 Commercial 395 0 0 395 1–4 family residential 74 0 0 74 Collateral dependent loans were individually evaluated under ASC 326 for the periods ending June 30, 2023 and December 31, 2022. Collateral dependent loans had a principal balance of $ 4.2 million with a valuation allowance of $ 878 thousand at June 30, 2023. Collateral dependent loans had a principal balance of $ 1.6 million with a valuation allowance of $ 372 thousand at December 31, 2022. For the period ending June 30, 2023, the fair value of the collateral dependent commercial real estate relationships are valued by independent external appraisals. These external appraisals are prepared using the sales comparison approach and income approach valuation techniques. The commercial relationships are valued by the quoted price of the collateral. Management makes subsequent unobservable adjustments on both the appraisals for the commercial real estate and the quoted price for the commercial collateral dependent loans. For the year ending December 31, 2022, the fair value of the collateral dependent commercial real estate and commercial relationships are valued by the quoted price of the collateral. Management makes subsequent unobservable adjustments on the quoted price of collateral dependent loans. Collateral dependent loans other than commercial real estate and other real estate owned are not considered material. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods ended June 30, 2023 and December 31, 2022: June 30, 2023 Fair value Valuation Unobservable Input(s) Range Individually evaluated loans Commercial real estate $ 2,920 Sales Comparison Adjustment for differences between comparable sales ( 66.12 %) - 40.28 % 15.88 % Commercial 395 Quoted price for collateral Offer Price 50.55 % December 31, 2022 Fair value Valuation Unobservable Input(s) Range Individually evaluated loans Commercial real estate $ 746 Quoted price for collateral Offer Price 7.45 % Commercial 395 Quoted price for collateral Offer Price 43.00 % Residential 74 Sales comparison Adjustment for differences between comparable sales ( 13.77 %) - ( 5.68 %) 13.77 %) The carrying amounts and estimated fair values of financial instruments not previously disclosed at June 30, 2023 and December 31, 2022 are as follows: Fair Value Measurements at June 30, 2023 Using: (In Thousands of Dollars) Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 116,063 $ 29,800 $ 86,263 $ 0 $ 116,063 Regulatory stock 29,723 n/a n/a n/a n/a Loans, net 3,120,243 0 0 2,985,702 2,985,702 Financial liabilities Deposits 4,270,748 3,589,251 679,516 0 4,268,767 Short-term borrowings 300,000 0 300,000 0 300,000 Long-term borrowings 88,437 0 68,480 0 68,480 Fair Value Measurements at December 31, 2022 Using: (In Thousands of Dollars) Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 75,551 $ 21,395 $ 54,156 $ 0 $ 75,551 Regulatory stock 18,200 n/a n/a n/a n/a Loans, net 2,377,772 0 0 2,330,164 2,330,164 Financial liabilities Deposits 3,561,768 2,999,188 561,292 0 3,560,480 Short-term borrowings 95,000 0 95,000 0 95,000 Long-term borrowings 88,211 0 73,566 0 73,566 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: Goodwill associated with the Company’s purchases of Emlenton in January 2023, Champion Insurance in July 2022 and other past acquisitions totaled $ 167.9 million at June 30, 2023 and $ 94.6 million at December 31, 2022. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through an impairment test. Management performs goodwill impairment testing on an annual basis as of September 30. The fair value of the reporting units is determined using a combination of a discounted cash flow method and a market approach method. Results of the assessment as of September 30, 2022, indicated no goodwill impairment. The Company will continue to monitor its goodwill for possible impairment. Acquired Intangible Assets Acquired intangible assets were as follows: June 30, 2023 December 31, 2022 (In Thousands of Dollars) Gross Carrying Accumulated Gross Carrying Accumulated Amortized intangible assets: Customer relationship intangibles $ 7,210 $ ( 6,873 ) $ 7,210 $ ( 6,793 ) Non-compete contracts 457 ( 407 ) 457 ( 401 ) Trade name 1,126 ( 425 ) 1,126 ( 409 ) Core deposit intangible 32,115 ( 9,059 ) 12,866 ( 7,030 ) Total $ 40,908 $ ( 16,764 ) $ 21,659 $ ( 14,633 ) Aggregate amortization expense was $ 1.2 million and $ 2.1 million for the three and six month periods ended June 30, 2023. Amortization expense was $ 419 thousand and $ 839 thousand for the three and six month periods ended June 30, 2022. Estimated amortization expense for each of the next five periods and thereafter: 2023 (6 months) $ 1,450 2024 2,872 2025 2,806 2026 2,710 2027 2,596 Thereafter 11,710 Total $ 24,144 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases: The Company has leases for branch office locations, vehicles and certain office equipment such as printers, copiers and faxes. These leases are categorized as either operating or financing. A majority of the leases are categorized as financing leases while a non material portion are categorized as operating. The leases have remaining lease terms of up to 18.1 years, some of which include options to extend the lease for up to 15 years and some of which include options to terminate the lease in December of 2023 . The right of use asset and lease liability were $ 9.1 million and $ 9.5 million as of June 30, 2023, respectively, and $ 8.4 million and $ 8.8 million at December 31, 2022, respectively. The right of use asset is included in premises and equipment, net and the lease liability is included in other liabilities on the balance sheet. Lease payments made for the three and six month periods ended June 30, 2023, were $ 541 thousand and $ 922 thousand, while lease payments made for the three and six month periods ended June 30, 2022 were $ 217 thousand and $ 454 thousand, respectively. Interest expense and amortization expense on finance leases for the three month period ended June 30, 2023, was $ 69 thousand and $ 270 thousand, and $ 139 thousand and $ 540 thousand for the six month period ended June 30, 2023 respectively. Interest expense and amortization expense on finance leases for the three month period ended June 30, 2022, was $ 37 thousand and $ 166 thousand, and $ 76 thousand and $ 332 thousand for the six month period ended June 30, 2022, respectively. The weighted average remaining lease term for all financing leases was 11.9 years and 7.8 years for all operating leases as of June 30, 2023. The weighted-average discount rate for financing leases was 3.11 % and 2.41 % for operating leases as of June 30, 2023. On January 1, 2023, the Company performed a valuation of Emlenton's leases to determine an initial right of use asset (ROU asset) and lease liability in connection with the Merger. The Company recorded an initial ROU asset and lease liability of $ 1.3 million for these leases. Maturities of lease liabilities are as follows as of June 30, 2023: 2023 (6 months) $ 686 2024 1,176 2025 1,092 2026 975 2027 898 Thereafter 6,575 Total Payments 11,402 Less: Imputed Interest ( 1,879 ) Total $ 9,523 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments: Interest Rate Swaps The Company maintains an interest rate protection program for commercial loan customers. Under this program, the Company provides a variable rate loan while creating a fixed rate loan for the customer by the customer entering into an interest rate swap with terms that match the loan. The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. The Company had interest rate swaps associated with commercial loans with a notional value of $ 68.5 million and fair value of $ 5.5 million in other assets and $ 5.5 million in other liabilities at June 30, 2023. At December 31, 2022, the Company had interest rate swaps associated with commercial loans with and a notional value of $ 71.9 million and fair value of $ 5.5 million in other assets and $ 5.5 million in other liabilities. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815 and are not marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. There were no net gains or losses for interest rate swaps for the three and six month period ended June 30, 2023 and 2022, respectively. Mortgage Banking Derivatives Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third-party investors are considered derivatives. The Company had $ 5.9 million of interest rate lock commitments at June 30, 2023 and $ 4.9 million of interest rate lock commitments at December 31, 2022. Effective May 2022, the Company began the practice of entering into commitments to sell mortgage backed securities when the interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated as hedge instruments. There were $ 7.0 million of forward sales of mortgage backed securities at June 30, 2023 and $ 4.3 million of forward sales of mortgage backed securities at December 31, 2022. There were $ 139 thousand of forward commitments for the future delivery of residential mortgages at June 30, 2023 and no forward commitments for the future delivery of residential mortgage loans at December 31, 2022. The net gains and losses on derivative instruments not designated as hedging instruments are included in mortgage banking income . For the quarters ended June 30, 2023 and June 30, 2022, losses of $ 52 thousand and gains of $ 34 thousand, respectively, were included in mortgage banking income for the interest rate lock commitments. For the six month periods ended June 30, 2023 and June 30, 2022, gains of $ 57 thousand and losses of $ 252 thousand, respectively, were included in mortgage banking income for the interest rate lock commitments. Gains of $ 71 thousand and losses of $ 16 thousand were included in mortgage banking income for the three and six month periods ended June 30, 2023 for the forward sales of mortgage backed securities. Losses of $ 5 thousand were included in mortgage banking income for both the three and six month periods ended June 30, 2022 for the forward sales of mortgage backed securities. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: The computation of basic and diluted earnings per share is shown in the following table: Three Months Ended Six Months Ended 2023 2022 2023 2022 Basic EPS Net income (In thousands of dollars) $ 14,966 $ 15,951 $ 22,041 $ 31,795 Weighted average shares outstanding 37,233,732 33,850,449 37,527,050 33,835,550 Basic earnings per share $ 0.40 $ 0.47 $ 0.59 $ 0.94 Diluted EPS Net income (In thousands of dollars) $ 14,966 $ 15,951 $ 22,041 $ 31,795 Weighted average shares outstanding for basic earnings per share 37,233,732 33,850,449 37,527,050 33,835,550 Dilutive effect of restricted stock awards 86,721 72,395 96,822 91,796 Weighted average shares for diluted earnings per share 37,320,453 33,922,844 37,623,872 33,927,346 Diluted earnings per share $ 0.40 $ 0.47 $ 0.59 $ 0.94 There were 174,309 and 170,809 restricted stock awards that were considered anti-dilutive for the three and six month periods ended June 30, 2023, respectively. There were 188,626 and 158,492 restricted stock awards that were considered anti-dilutive for the three and six month periods ended June 30, 2022, respectively. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation: In April of 2022, the Company, with the approval of shareholders, created the 2022 Equity Incentive Plan (the “2022 Plan”). The 2022 Plan permits the award of up to one million shares to the Company’s directors and employees to attract and retain exceptional personnel, motivate performance and, most importantly, to help align the interests of the Company’s executives with those of the Company’s shareholders. The 2022 Plan replaced the 2017 Plan. There were 54,095 service time based share awards and 102,750 performance based share awards granted under the 2022 Plan during the six month period ended June 30, 2023, as shown in the table below. The actual number of performance based shares issued will depend on the relative performance of the Company’s average return on equity compared to a group of peer companies over a three year vesting period, ending December 31, 2025. As of June 30, 2023, 786,655 shares are still available to be awarded from the 2022 Plan. The 2017 Plan has been sunset. The restricted stock awards were granted with a fair value price equal to the market price of the Company’s common stock at the date of the grant. Expense recognized was $ 649 thousand and $ 1.3 million for the three and six month periods ended June 30, 2023, respectively. During the prior periods, the expense recognized was $ 438 thousand and $ 803 thousand for the three and six month periods ended June 30, 2022, respectively. As of June 30, 2023, there was $ 4.0 million of total unrecognized compensation expense related to the nonvested shares granted under the Plan. The remaining cost is expected to be recognized over 2.7 years. The following is the activity under the Plans during the six month period ended June 30, 2023. Maximum Weighted Date Maximum Weighted Date Beginning balance - non-vested shares 193,015 $ 16.69 137,369 $ 15.85 Granted 54,095 13.12 102,750 14.16 Vested ( 27,740 ) 12.96 ( 30,635 ) 14.35 Forfeited ( 1,541 ) 17.64 0 0.00 Ending balance - non-vested shares 217,829 $ 15.84 209,484 $ 15.01 The following is the activity under the Plans during the six month period ended June 30, 2022. Maximum Weighted Date Maximum Weighted Date Beginning balance - non-vested shares 99,564 $ 16.13 158,988 $ 14.40 Granted 101,768 17.05 56,724 17.25 Vested ( 20,771 ) 16.81 ( 65,481 ) 17.48 Forfeited 0 0.00 ( 12,862 ) 14.74 Ending balance - non-vested shares 180,561 $ 16.92 137,369 $ 15.85 The 58,375 shares that vested during the six month period ended June 30, 2023 had a weighted average fair value of $ 13.69 per share. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Income (Loss) | The following tables represent the details of other comprehensive loss for the three and six month periods ended June 30, 2023 and 2022. Other Comprehensive Income (Loss): Three Months Ended June 30, 2023 (In Thousands of Dollars) Pre-tax Tax After-Tax Unrealized holding gains on available-for-sale securities during the period $ ( 21,309 ) $ 4,475 $ ( 16,834 ) Reclassification adjustment for gains included in net income (1) 0 0 0 Net other comprehensive (loss) $ ( 21,309 ) $ 4,475 $ ( 16,834 ) Three Months Ended June 30, 2022 (In Thousands of Dollars) Pre-tax Tax After-Tax Unrealized holding losses on available-for-sale securities during the period $ ( 105,497 ) $ 22,154 $ ( 83,343 ) Reclassification adjustment for gains included in net income (1) 31 ( 6 ) 25 Net unrealized gains on available-for-sale securities $ ( 105,466 ) $ 22,148 $ ( 83,318 ) Change in funded status of post-retirement health plan ( 2 ) 0 ( 2 ) Net other comprehensive (loss) $ ( 105,468 ) $ 22,148 $ ( 83,320 ) Six Months Ended June 30, 2023 (In Thousands of Dollars) Pre-tax Tax After-Tax Unrealized holding gains on available-for-sale securities during the period $ 21,591 $ ( 4,534 ) $ 17,057 Reclassification adjustment for losses included in net income (1) ( 120 ) 25 ( 95 ) Net other comprehensive income $ 21,471 $ ( 4,509 ) $ 16,962 Six Months Ended June 30, 2022 (In Thousands of Dollars) Pre-tax Tax After-Tax Unrealized holding losses on available-for-sale securities during the period $ ( 217,894 ) $ 45,758 $ ( 172,136 ) Reclassification adjustment for losses included in net income (1) 31 ( 7 ) 24 Net unrealized gains on available-for-sale securities $ ( 217,863 ) $ 45,751 $ ( 172,112 ) Change in funded status of post-retirement health plan ( 3 ) 0 ( 3 ) Net other comprehensive (loss) $ ( 217,866 ) $ 45,751 $ ( 172,115 ) (1) Pre-tax reclassification adjustments relating to available-for-sale securities are reported in security gains and the tax impact is included in income tax expense on the consolidated statements of income. |
Regulatory Capital Matters
Regulatory Capital Matters | 6 Months Ended |
Jun. 30, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Matters | Regulatory Capital Matters: Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action by regulators that, if undertaken, could have a direct material effect on the financial statements. Management believes that as of June 30, 2023, the Company and the Bank meet all capital adequacy requirements to which they are subject. The FDIC and other federal banking regulators revised the risk-based capital requirements applicable to financial holding companies and insured depository institutions, including the Company and the Bank, to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision (“Basel III”). The common equity tier 1 capital, tier 1 capital and total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. The leverage ratio is calculated by dividing tier 1 capital by adjusted average total assets. Basel III limits capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” consisting of 2.5 % of common equity tier 1 capital, tier 1 capital and total capital to risk-weighted assets in addition to the amount necessary to meet minimum risk-based capital requirements. Excluding the additional buffer, Basel III requires the Company and the Bank to maintain (i) a minimum ratio of common equity tier 1 capital to risk-weighted assets of at least 4.5 %, (ii) a minimum ratio of tier 1 capital to risk-weighted assets of at least 6.0 %, (iii) a minimum ratio of total capital to risk-weighted assets of at least 8.0 % and (iv) a minimum leverage ratio of at least 4.0 %. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If only adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At June 30, 2023 and December 31, 2022, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Actual and required capital amounts and ratios, which do not include the capital conservation buffer, are presented below at June 30, 2023 and December 31, 2022: Actual Requirement For Capital To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio June 30, 2023 Common equity tier 1 capital ratio Consolidated $ 374,278 10.25 % $ 164,288 4.5 % N/A N/A Bank 391,584 10.75 % 163,977 4.5 % 236,855 6.5 % Total risk based capital ratio Consolidated 502,235 13.76 % 292,068 8.0 % N/A N/A Bank 426,541 11.71 % 291,514 8.0 % 364,393 10.0 % Tier 1 risk based capital ratio Consolidated 392,278 10.74 % 219,051 6.0 % N/A N/A Bank 391,584 10.75 % 218,636 6.0 % 291,514 8.0 % Tier 1 leverage ratio Consolidated 392,278 7.68 % 204,281 4.0 % N/A N/A Bank 391,584 7.70 % 203,408 4.0 % 254,261 5.0 % December 31, 2022 Common equity tier 1 capital ratio Consolidated $ 403,307 13.71 % $ 132,349 4.5 % N/A N/A Bank 372,679 12.71 % 131,968 4.5 % $ 190,620 6.5 % Total risk based capital ratio Consolidated 523,285 17.79 % 235,288 8.0 % N/A N/A Bank 399,657 13.62 % 234,609 8.0 % 293,262 10.0 % Tier 1 risk based capital ratio Consolidated 421,307 14.32 % 176,466 6.0 % N/A N/A Bank 372,679 12.71 % 175,957 6.0 % 234,609 8.0 % Tier 1 leverage ratio Consolidated 421,307 9.84 % 171,233 4.0 % N/A N/A Bank 372,679 8.76 % 170,245 4.0 % 212,807 5.0 % |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information: The reportable segments are determined by the products and services offered, primarily distinguished between banking and trust. These segments are also distinguished by the level of information provided to the chief operating decision makers in the Company, who use such information to review performance of various components of the business, which are then aggregated. Loans, investments, and deposits provide the revenues in the banking operation. All operations are domestic. Significant segment totals are reconciled to the financial statements as follows: (In Thousands of Dollars) Trust Bank Eliminations Consolidated June 30, 2023 Goodwill and other intangibles $ 5,709 $ 190,605 $ ( 4,263 ) $ 192,051 Total assets $ 17,610 $ 5,050,547 $ 5,297 $ 5,073,454 (In Thousands of Dollars) Trust Bank Eliminations Consolidated December 31, 2022 Goodwill and other intangibles $ 5,739 $ 100,190 $ ( 4,263 ) $ 101,666 Total assets $ 14,383 $ 4,064,112 $ 3,705 $ 4,082,200 (In Thousands of Dollars) Trust Bank Eliminations Consolidated For Three Months Ended June 30, 2023 Net interest income $ 57 $ 35,476 $ ( 955 ) $ 34,578 Provision for credit losses and unfunded loans 0 25 0 25 Service fees, security gains and other noninterest income 2,668 7,167 ( 386 ) 9,449 Noninterest expense 1,654 22,056 475 24,185 Amortization and depreciation expense 23 2,066 112 2,201 Income before taxes 1,048 18,496 ( 1,928 ) 17,616 Income taxes 221 2,859 ( 430 ) 2,650 Net income $ 827 $ 15,637 $ ( 1,498 ) $ 14,966 (In Thousands of Dollars) Trust Bank Eliminations Consolidated For Six Months Ended June 30, 2023 Net interest income $ 114 $ 72,984 $ ( 1,910 ) $ 71,188 Provision for credit losses and unfunded loans 0 8,624 0 8,624 Service fees, security gains and other noninterest income 5,568 14,923 ( 617 ) 19,874 Noninterest expense 3,297 48,591 1,120 53,008 Amortization and depreciation expense 46 3,828 226 4,100 Income before taxes 2,339 26,864 ( 3,873 ) 25,330 Income taxes 492 3,706 ( 909 ) 3,289 Net income $ 1,847 $ 23,158 $ ( 2,964 ) $ 22,041 (In Thousands of Dollars) Trust Bank Eliminations Consolidated For Three Months Ended June 30, 2022 Net interest income $ 38 $ 32,486 $ ( 813 ) $ 31,711 Provision for credit losses and unfunded loans 0 616 0 616 Service fees, security gains and other noninterest income 4,839 4,606 32 9,477 Noninterest expense 3,614 16,174 494 20,282 Amortization and depreciation expense 28 1,038 113 1,179 Income before taxes 1,235 19,264 ( 1,388 ) 19,111 Income taxes 258 3,266 ( 364 ) 3,160 Net income $ 977 $ 15,998 $ ( 1,024 ) $ 15,951 (In Thousands of Dollars) Trust Bank Eliminations Consolidated For Six Months Ended June 30, 2022 Net interest income $ 72 $ 64,479 $ ( 1,598 ) $ 62,953 Provision for credit losses and unfunded loans 0 258 0 258 Service fees, security gains and other noninterest income 14,037 13,347 ( 209 ) 27,175 Noninterest expense 5,383 43,616 577 49,576 Amortization and depreciation expense 56 2,058 227 2,341 Income before taxes 8,670 31,894 ( 2,611 ) 37,953 Income taxes 1,820 5,000 ( 662 ) 6,158 Net income $ 6,850 $ 26,894 $ ( 1,949 ) $ 31,795 The Bank segment includes Farmers National Insurance and Farmers of Canfield Investment Co. |
Short-term Borrowings
Short-term Borrowings | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | Short-term borrowings: The Bank had short-term advances from the Federal Home Loan Bank ("FHLB") at June 30, 2023 of $ 300.0 million. The interest rate on these borrowings was 5.17 % at June 30, 2023. The Bank had $ 95.0 million of short-term advances from the FHLB at December 31, 2022, and the interest rate on these borrowings was 4.38 %. The Bank has access to lines of credit amounting to $ 35.0 million at two major domestic banks that are below prime rate. The lines and terms are periodically reviewed by the lending banks and are generally subject to withdrawal at their discretion. There were no borrowings under these lines at June 30, 2023 or at December 31, 2022. Farmers has two unsecured revolving lines of credit for $ 6.5 million. These lines can be renewed annually. The lines have interest rates of prime with floors of 3.5 % and 4.5 %. There were no outstanding balances on either of these two lines at June 30, 2023 or at December 31, 2022. |
Long-Term Borrowings
Long-Term Borrowings | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings | Long-term borrowings: There were no long-term advances from the FHLB at June 30, 2023 or at December 31, 2022. The Bank’s long-term and short-term FHLB advances are secured by a blanket pledge of residential mortgage, commercial real estate, and multi-family loans totaling $ 1.7 billion at June 30, 2023 and $ 1.2 billion at December 31, 2022, respectively. Based on this collateral, the Bank is eligible to borrow an additional $ 707.8 million at June 30, 2023. In November 2021, the Company completed the issuance of $ 75.0 million aggregate principal amount, fixed-to-floating rate subordinated notes due December 15, 2031 , in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended. The notes carry a fixed rate of 3.125 % for five years at which time they will convert to a floating rate based on the three-month term secured overnight funding rate ("SOFR"), plus a spread of 220 basis points. The Company may, at its option, beginning December 15, 2026, redeem the notes, in whole or in part, from time to time, subject to certain conditions. The net proceeds from the sale were approximately $ 73.8 million, after deducting the offering expenses. The Company’s intent was to use the proceeds from the sale for general corporate purposes, which may include, without limitation, providing capital to support its growth organically or through acquisitions, in financing investments, capital expenditures, repurchasing its common shares and for investments in the Bank as regulatory capital. The subordinated debentures are included in Total Capital under current regulatory guidelines and interpretations. On November 1, 2021 , the Company completed its acquisition of Cortland, which included the assumption of Floating Rate Junior Subordinated Debt Securities due in September 15, 2037 (the "junior subordinated debt securities") at an acquisition-date fair value of $ 4.3 million, held in a wholly-owned statutory trust whose common securities were wholly-owned by Cortland. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The securities bear interest at a rate of 1.45 % over the 3-month LIBOR rate (transitioning to the three-month term SOFR beginning September 15, 2023) . The rate at June 30, 2023 was 7.00 % and at December 31, 2022 was 6.22 %. On January 7, 2020 , the Company completed its acquisition of Maple Leaf, which included the assumption of Floating Rate Junior Subordinated Debt Securities due December 15, 2036 (the "junior subordinated debt securities") held in a wholly-owned statutory trust whose common securities were wholly-owned by Maple Leaf. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The securities bear interest at a rate of 1.80 % over the 3-month LIBOR rate (transitioning to the three-month term SOFR beginning September 15, 2023). The rate at June 30, 2023 was 7.35 % and at December 31, 2022 was 6.57 %. In 2015, the Company completed its acquisition of National Bancshares Corporation, which included the assumption of Floating Rate Junior Subordinated Debt Securities due June 15, 2035 (the "junior subordinated debt securities") held in a wholly-owned statutory trust, TSEO Statutory Trust I. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The securities bear interest at a rate of 1.70 % over the 3-month LIBOR rate (transitioning to the three-month term SOFR beginning September 15, 2023). The rate at June 30, 2023 was 7.25 % and at December 31, 2022 was 6.47 %. In all three instances, the Company may redeem the junior subordinated debentures at any quarter-end, in whole, or in part, at par. This type of subordinated debenture qualifies as Tier 1 capital for regulatory purposes in determining and evaluating the Company’s capital adequacy. A summary of all junior subordinated debentures issued by the Company to affiliates and subordinated debentures follows. For the junior subordinated debentures, these amounts represent the par value of the obligations owed to these affiliates, including the Company’s equity interest in the trusts along with any unamortized fair value marks. For the subordinated debentures, these amounts represent the par value less the remaining deferred offering expense associated with the issuance of the debentures. June 30, 2023 December 31, 2022 Amount Amount TSEO Statutory Trust I $ 2,497 $ 2,472 Maple Leaf Financial Statutory Trust II 7,629 7,517 Cortland Statutory Trust I 4,354 4,327 Total junior subordinated debentures owed to unconsolidated subsidiary trusts $ 14,480 $ 14,316 Subordinated Debentures $ 73,957 $ 73,895 Total long-term borrowings $ 88,437 $ 88,211 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: Farmers National Banc Corp. (“Company” or "Farmers") is a Financial Holding Company registered under the Bank Holding Company Act of 1956, as amended. The Company provides full banking services through its nationally chartered subsidiary, The Farmers National Bank of Canfield (“Bank”). The consolidated financial statements also include the accounts of the Bank’s subsidiaries; Farmers National Insurance, LLC (“Insurance”) and Farmers of Canfield Investment Co. (“Investments”). The Company provides trust and retirement consulting services through its subsidiary, Farmers Trust Company (“Trust”), and insurance services through the Bank’s subsidiary, Insurance. Farmers National Captive, Inc. (“Captive”) is a wholly-owned insurance subsidiary of the Company that provides property and casualty insurance coverage to the Company and its subsidiaries. The Captive pools resources with eleven similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves and to provide insurance where not currently available or economically feasible in today’s insurance market place. The consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries, along with the Trust and Captive. All significant intercompany balances and transactions have been eliminated in the consolidation. |
Basis of Presentation | Basis of Presentation: The unaudited consolidated condensed financial statements have been prepared in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2022 Annual Report to Shareholders included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). The interim consolidated financial statements include all adjustments (consisting of only normal recurring items) that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year. Certain items included in the prior period financial statements were reclassified to conform to the current period presentation. There was no effect on net income or total stockholders’ equity. |
Estimates | Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Segments | Segments: The Company provides a broad range of financial services to individuals and companies in northeastern Ohio and western Pennsylvania. Operations are managed and financial performance is primarily aggregated and reported in two lines of business, the Bank segment and the Trust segment. |
Equity | Equity: There are 50,000,000 shares authorized and available for issuance as of June 30, 2023. Outstanding shares at June 30, 2023 were 37,457,253 . |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) consists of unrealized gains and losses on securities available for sale and changes in the funded status of the post-retirement plan, which are recognized as components of stockholders’ equity, net of tax effect. |
New Accounting Standard | New Accounting Standard: On March 31, 2022, FASB issued ASU 2022-02, which eliminates the troubled debt restructuring (“TDR”), accounting model for creditors that have adopted Topic 326, Financial Instruments – Credit Losses. Due to the removal of the TDR accounting model, all loan modifications now will be accounted for under the general loan modification guidance in Subtopic 310-20. In addition, on a prospective basis, entities will be subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also will be required to prospectively disclose current-period gross write-off information by vintage, or year of origination. The Company adopted ASU 2022-02 on January 1, 2023 . The adoption of this standard did not have a material effect on the Company’s operating results or financial condition. On October 28, 2021, FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU requires contract assets and contract liabilities to be accounted for as if they (the acquirer) entered into the original contract at the same time and same date as the acquiree. This is a shift from existing guidance, which required the acquirer to recognize contract assets and contract liabilities at their fair value as of the acquisition date. The amendments in this Update were effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of this standard did not have a material effect on the Company’s operating results or financial condition. Management determined that Emclaire had an immaterial amount of contracts with customers. On March 12, 2020, the FASB issued ASU 2020-04 and amended by ASU 2021-01, Facilitation of the Effects of Reference Rate Reform on Financial Reporting , to ease the burden of accounting for contract modifications related to reference rate reform. The amendments in ASU 2020-04 create a new Topic in the Codification, ASC 848, Reference Rate Reform , which contains guidance that is designed to simplify how entities account for contracts that are modified to replace LIBOR or other benchmark interest rates with new rates. The amendments in ASU 2020-04 give entities the option to apply expedients and exceptions to contract modifications that are made until December 31, 2022, if certain criteria are met. If adopted, these amendments and exceptions should be applied to all eligible modifications to contracts that are accounted for under an ASC Topic or industry Subtopic. The guidance in ASC 848 does not apply to any contract modifications that was made after December 31, 2022. In December 2022, the FASB issued ASU 2022-06 that defers the sunset date from December 31, 2022 to December 31, 2024. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Pro Forma Information | The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effective on the assumed date. (In thousands of dollars except per share results) For Three Months For Six Months Net interest income $ 43,126 $ 85,127 Provision for credit losses 991 8,246 Noninterest income 10,427 29,133 Noninterest expense 28,253 69,426 Income before income taxes 24,309 36,588 Income tax expense 4,237 5,796 Net income $ 20,072 $ 30,792 Basic earnings per share $ 0.53 $ 0.81 Diluted earnings per share $ 0.53 $ 0.81 |
Emclaire Financial Corp | |
Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Emclaire and the amounts of the assets acquired and liabilities assumed on the closing date of the acquisition. (In Thousands of Dollars) Consideration Cash $ 33,440 Stock 59,202 Fair value of total consideration transferred $ 92,642 Fair value of assets acquired Cash and cash equivalents $ 20,265 Securities available for sale 126,970 Other investments 7,795 Loans, net 740,659 Premises and equipment 16,103 Bank owned life insurance 22,485 Core deposit intangible 19,249 Current and deferred taxes 17,246 Other assets 6,387 Total assets acquired 977,159 Fair value of liabilities assumed Deposits 875,813 Short-term borrowings 75,000 Accrued interest payable and other liabilities 7,104 Total liabilities 957,917 Net assets acquired $ 19,242 Goodwill created 73,400 Total net assets acquired $ 92,642 The fair value of net assets acquired includes fair value adjustments to certain receivables that were considered performing as of the acquisition date. The fair value adjustments were determined using the income method, discounted cash flow approach. However, the Company believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered purchase credit deteriorated ("PCD") at the acquisition date and were not subject to the guidance relating to PCD loans. Receivables acquired that were not subject to these requirements had a fair value and gross contractual amounts receivable of $ 714.4 million and $ 764.8 million on the date of acquisition. The fair value of purchased financial assets that were classified as PCD loans are discussed in the loan footnote. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of the Amortized Cost and Fair Value of Available-for-Sale Investment Securities Corresponding Amounts of Unrealized Gains and Losses | The following table summarizes the amortized cost and fair value of the available for sale investment securities portfolio at June 30, 2023 and December 31, 2022 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss): Gross Gross Amortized Unrealized Unrealized (In Thousands of Dollars) Cost Gains Losses Fair Value June 30, 2023 U.S. Treasury and U.S. government sponsored entities $ 155,169 $ 99 $ ( 20,103 ) $ 135,165 State and political subdivisions 648,030 951 ( 105,919 ) 543,062 Corporate bonds 18,329 25 ( 722 ) 17,632 Mortgage-backed securities 653,898 9 ( 112,783 ) 541,124 Collateralized mortgage obligations 82,965 117 ( 6,286 ) 76,796 Small Business Administration 3,459 0 ( 360 ) 3,099 Totals $ 1,561,850 $ 1,201 $ ( 246,173 ) $ 1,316,878 Gross Gross Amortized Unrealized Unrealized (In Thousands of Dollars) Cost Gains Losses Fair Value December 31, 2022 U.S. Treasury and U.S. government sponsored $ 149,712 $ 0 $ ( 21,616 ) $ 128,096 State and political subdivisions 651,705 266 ( 121,891 ) 530,080 Corporate bonds 4,181 0 ( 302 ) 3,879 Mortgage-backed securities - residential 672,784 12 ( 117,654 ) 555,142 Collateralized mortgage obligations 52,291 0 ( 4,937 ) 47,354 Small Business Administration 3,839 0 ( 365 ) 3,474 Totals $ 1,534,512 $ 278 $ ( 266,765 ) $ 1,268,025 |
Amortized Cost and Fair Value of the Debt Securities Maturity | The amortized cost and fair value of the debt securities portfolio are shown in the table below by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. June 30, 2023 (In Thousands of Dollars) Amortized Cost Fair Value Maturity Within one year $ 716 $ 706 One to five years 39,851 37,153 Five to ten years 180,584 159,597 Beyond ten years 600,377 498,403 Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities 740,322 621,019 Total $ 1,561,850 $ 1,316,878 |
Available for Sale Investment Securities with Unrealized Losses | The following table summarizes the available for sale investment securities with unrealized losses at June 30, 2023 and December 31, 2022, aggregated by major security type and length of time in a continuous unrealized loss position. Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands of Dollars) Value Loss Value Loss Value Loss June 30, 2023 U.S. Treasury and U.S. government sponsored entities $ 14,652 $ ( 692 ) $ 115,535 $ ( 19,411 ) $ 130,187 $ ( 20,103 ) State and political subdivisions 73,802 ( 2,835 ) 432,373 ( 103,084 ) 506,175 ( 105,919 ) Corporate bonds 11,011 ( 411 ) 3,561 ( 311 ) 14,572 ( 722 ) Mortgage-backed securities 4,678 ( 44 ) 535,644 ( 112,739 ) 540,322 ( 112,783 ) Collateralized mortgage obligations 28,977 ( 930 ) 40,852 ( 5,356 ) 69,829 ( 6,286 ) Small Business Administration 0 0 3,099 ( 360 ) 3,099 ( 360 ) Total temporarily impaired $ 133,120 $ ( 4,912 ) $ 1,131,064 $ ( 241,261 ) $ 1,264,184 $ ( 246,173 ) Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands of Dollars) Value Loss Value Loss Value Loss December 31, 2022 U.S. Treasury and U.S. government sponsored entities $ 52,311 $ ( 5,835 ) $ 75,685 $ ( 15,781 ) $ 127,996 $ ( 21,616 ) State and political subdivisions 306,709 ( 56,650 ) 191,584 ( 65,241 ) 498,293 ( 121,891 ) Corporate bonds 2,893 ( 122 ) 986 ( 180 ) 3,879 ( 302 ) Mortgage-backed securities - residential 101,476 ( 13,545 ) 453,233 ( 104,109 ) 554,709 ( 117,654 ) Collateralized mortgage obligations 42,140 ( 4,137 ) 5,214 ( 800 ) 47,354 ( 4,937 ) Small Business Administration 1,295 ( 122 ) 2,179 ( 243 ) 3,474 ( 365 ) Total temporarily impaired $ 506,824 $ ( 80,411 ) $ 728,881 $ ( 186,354 ) $ 1,235,705 $ ( 266,765 ) |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loan Balances | Loan balances were as follows: (In Thousands of Dollars) June 30, 2023 December 31, 2022 Commercial real estate Owner occupied $ 357,329 $ 330,768 Non-owner occupied 697,486 563,652 Farmland 192,182 188,850 Other 230,160 133,630 Commercial Commercial and industrial 362,664 293,643 Agricultural 58,625 58,087 Residential real estate 1-4 family residential 849,533 475,791 Home equity lines of credit 138,535 132,179 Consumer Indirect 226,187 197,125 Direct 25,980 16,421 Other 8,159 7,714 Total loans $ 3,146,840 $ 2,397,860 Net deferred loan costs 8,360 6,890 Allowance for credit losses ( 34,957 ) ( 26,978 ) Net loans $ 3,120,243 $ 2,377,772 |
Activity in the Allowance for Loan Losses by Portfolio Segment | The following tables present the activity in the allowance for credit losses by portfolio segment for the three and six month periods ended June 30, 2023 and 2022: Three Months Ended June 30, 2023 (In Thousands of Dollars) Commercial Commercial Residential Consumer Total Allowance for credit losses Beginning balance $ 19,819 $ 5,230 $ 6,732 $ 4,230 $ 36,011 PCD ACL on loans acquired 0 0 0 0 0 (Credit) Provision for credit losses ( 1,125 ) 639 131 100 ( 255 ) Loans charged off ( 157 ) ( 591 ) ( 11 ) ( 212 ) ( 971 ) Recoveries 0 17 14 141 172 Total ending allowance balance $ 18,537 $ 5,295 $ 6,866 $ 4,259 $ 34,957 Six Months Ended June 30, 2023 (In Thousands of Dollars) Commercial Commercial Residential Consumer Total Allowance for credit losses Beginning balance $ 14,840 $ 4,186 $ 4,374 $ 3,578 $ 26,978 PCD ACL on loans acquired 850 138 11 0 999 Provision for credit losses 3,003 1,683 2,529 835 8,050 Loans charged off ( 157 ) ( 734 ) ( 94 ) ( 455 ) ( 1,440 ) Recoveries 1 22 46 301 370 Total ending allowance balance $ 18,537 $ 5,295 $ 6,866 $ 4,259 $ 34,957 Three Months Ended June 30, 2022 (In Thousands of Dollars) Commercial Commercial Residential Consumer Total Allowance for credit losses Beginning balance $ 15,207 $ 3,867 $ 4,702 $ 3,239 $ 27,015 (Credit) Provision for credit losses ( 349 ) 70 197 564 482 Loans charged off 0 ( 46 ) 0 ( 132 ) ( 178 ) Recoveries 1 2 16 116 135 Total ending allowance balance $ 14,859 $ 3,893 $ 4,915 $ 3,787 $ 27,454 Six Months Ended June 30, 2022 (In Thousands of Dollars) Commercial Commercial Residential Consumer Total Allowance for credit losses Beginning balance $ 15,879 $ 4,949 $ 4,870 $ 3,688 $ 29,386 (Credit) Provision for credit losses ( 1,021 ) 341 51 181 ( 448 ) Loans charged off 0 ( 1,405 ) ( 34 ) ( 329 ) ( 1,768 ) Recoveries 1 8 28 247 284 Total ending allowance balance $ 14,859 $ 3,893 $ 4,915 $ 3,787 $ 27,454 |
Schedule of Investment in Nonaccrual and Loans Past Due 90 Days or More Still on Accrual by Class of Loans | The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of June 30, 2023: (In Thousands of Dollars) Nonaccrual with no allowance for credit loss Nonaccrual with an allowance for credit loss Loans past due over 89 days still accruing June 30, 2023 Commercial real estate Owner occupied $ 679 $ 486 $ 0 Non-owner occupied 1,891 6,285 0 Farmland 2,059 113 0 Other 0 19 0 Commercial Commercial and industrial 117 1,780 0 Agricultural 224 198 0 Residential real estate 1-4 family residential 269 2,096 594 Home equity lines of credit 274 242 112 Consumer Indirect 10 296 57 Direct 65 86 1 Other 0 3 0 Total loans $ 5,588 $ 11,604 $ 764 The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of December 31, 2022: December 31, 2022 (In Thousands of Dollars) Nonaccrual Loans Past Commercial real estate Owner occupied $ 993 $ 0 Non-owner occupied 3,031 0 Farmland 2,183 0 Other 33 0 Commercial Commercial and industrial 3,840 50 Agricultural 299 0 Residential real estate 1-4 family residential 2,703 310 Home equity lines of credit 735 58 Consumer Indirect 313 62 Direct 179 12 Other 2 0 Total loans $ 14,311 $ 492 |
Schedule of Investment in Past Due Loans | The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2023: (In Thousands of Dollars) Real Estate Business Assets Vehicles Cash June 30, 2023 Commercial real estate Owner occupied $ 801 $ 0 $ 0 $ 0 Non-owner occupied 5,080 0 0 0 Farmland 2,059 0 0 0 Other 0 0 0 0 Commercial Commercial and industrial 0 1,170 0 0 Agricultural 0 224 0 0 Residential real estate 1-4 family residential 1,576 0 0 0 Home equity lines of credit 331 0 0 0 Consumer Indirect 0 0 48 0 Direct 0 0 24 66 Other 0 0 0 0 Total loans $ 9,847 $ 1,394 $ 72 $ 66 The following tables present the aging of the recorded investment in past due loans as of June 30, 2023 and December 31, 2022 by class of loans. (In Thousands of Dollars) 30-59 60-89 90 Days or Total Past Loans Not Total June 30, 2023 Commercial real estate Owner occupied $ 345 $ 0 $ 1,165 $ 1,510 $ 355,556 $ 357,066 Non-owner occupied 0 0 8,176 8,176 688,768 696,944 Farmland 321 0 2,172 2,493 189,452 191,945 Other 80 0 19 99 229,719 229,818 Commercial Commercial and industrial 378 239 1,897 2,514 361,437 363,951 Agricultural 227 166 422 815 58,511 59,326 Residential real estate 1-4 family residential 8,256 979 2,959 12,194 837,014 849,208 Home equity lines of credit 214 108 628 950 137,617 138,567 Consumer Indirect 822 79 363 1,264 232,945 234,209 Direct 81 16 152 249 25,758 26,007 Other 6 4 3 13 8,146 8,159 Total loans $ 10,730 $ 1,591 $ 17,956 $ 30,277 $ 3,124,923 $ 3,155,200 (In Thousands of Dollars) 30-59 60-89 90 Days or Total Past Loans Not Total December 31, 2022 Commercial real estate Owner occupied $ 159 $ 0 $ 993 $ 1,152 $ 329,305 $ 330,457 Non-owner occupied 0 0 3,031 3,031 560,013 563,044 Farmland 0 0 2,183 2,183 186,399 188,582 Other 0 0 33 33 133,288 133,321 Commercial Commercial and industrial 1,034 185 3,890 5,109 289,297 294,406 Agricultural 104 20 299 423 58,166 58,589 Residential real estate 1-4 family residential 4,247 1,775 3,013 9,035 466,313 475,348 Home equity lines of credit 115 92 793 1,000 131,209 132,209 Consumer Indirect 1,267 298 375 1,940 202,683 204,623 Direct 234 70 191 495 15,962 16,457 Other 0 5 2 7 7,707 7,714 Total loans $ 7,160 $ 2,445 $ 14,803 $ 24,408 $ 2,380,342 $ 2,404,750 |
Loan Restructurings (Tables)
Loan Restructurings (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Amortized Cost Basis for Loans Restructured | The following table shows the amortized cost basis for the loans restructured during the three and six months ended June 30, 2023 to borrowers experiencing financial difficulty, disaggregrated by class of financing receivables: Three Months Ended June 30, 2023 Restructured Loans (In Thousands of Dollars) Number of Contracts Amortized Cost Basis % of Total class of Financing receivable Total accruing restructured loans 0 $ 0 0.00 % Nonaccrual restructured loans Total nonaccrual restructured loans 0 $ 0 0.00 % Total restructured loans 0 $ 0 0.00 % Six Months Ended June 30, 2023 Restructured Loans (In Thousands of Dollars) Number of Contracts Amortized Cost Basis % of Total class of Financing receivable Commercial Commercial and industrial 1 $ 50 0.01 % Total accruing restructured loans 1 $ 50 0.01 % Nonaccrual restructured loans Total nonaccrual restructured loans 0 $ 0 0.00 % Total restructured loans 1 $ 50 0.01 % |
Schedule of Performance of Loans that Modified | The following table depicts the performance of loans that have been modified in the three and six months ended June 30, 2023: Three Months Ended June 30, 2023 Payment status (Amortized cost Basis) (In Thousands of Dollars) Current 30-89 Days past due 90+ Days past due Total accruing restructured loans $ 0 $ 0 $ 0 Nonaccrual restructured loans Total nonaccrual restructured loans $ 0 $ 0 $ 0 Total restructured loans $ 0 $ 0 $ 0 Six Months Ended June 30, 2023 Payment status (Amortized cost Basis) (In Thousands of Dollars) Current 30-89 Days past due 90+ Days past due Commercial Commercial and industrial $ 50 $ 0 $ 0 Total accruing restructured loans $ 50 $ 0 $ 0 Nonaccrual restructured loans Total nonaccrual restructured loans $ 0 $ 0 $ 0 Total restructured loans $ 50 $ 0 $ 0 |
Credit Quality Indicators (Tabl
Credit Quality Indicators (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Risk Category of Loans by Class of Loans | As of June 30, 2023 and December 31, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (In Thousands of Dollars) Pass Special Sub Total June 30, 2023 Commercial real estate Owner occupied $ 347,171 $ 5,326 $ 4,569 $ 357,066 Non-owner occupied 646,559 22,362 28,023 696,944 Farmland 189,238 0 2,707 191,945 Other 222,049 7,550 219 229,818 Commercial Commercial and industrial 347,795 7,142 9,014 363,951 Agricultural 58,869 0 457 59,326 Total loans $ 1,811,681 $ 42,380 $ 44,989 $ 1,899,050 (In Thousands of Dollars) Pass Special Sub Total December 31, 2022 Commercial real estate Owner occupied $ 324,979 $ 1,193 $ 4,285 $ 330,457 Non-owner occupied 527,267 25,541 10,236 563,044 Farmland 186,057 0 2,525 188,582 Other 133,218 0 103 133,321 Commercial Commercial and industrial 282,412 777 11,217 294,406 Agricultural 58,002 250 337 58,589 Total loans $ 1,511,935 $ 27,761 $ 28,703 $ 1,568,399 |
Investment in Residential, Consumer and Indirect Auto Loans Based on Payment Activity | The following tables present the recorded investment in residential, consumer indirect and direct auto loans based on payment activity as of June 30, 2023 and December 31, 2022. Nonperforming loans are loans past due 90 days or more and still accruing interest and nonaccrual loans. Residential Real Estate Consumer (In Thousands of Dollars) 1-4 Family Home Indirect Direct Other June 30, 2023 Performing $ 846,249 $ 137,939 $ 233,846 $ 25,855 $ 8,156 Nonperforming 2,959 628 363 152 3 Total loans $ 849,208 $ 138,567 $ 234,209 $ 26,007 $ 8,159 Residential Real Estate Consumer (In Thousands of Dollars) 1-4 Family Home Indirect Direct Other December 31, 2022 Performing $ 472,335 $ 131,416 $ 204,248 $ 16,266 $ 7,712 Nonperforming 3,013 793 375 191 2 Total loans $ 475,348 $ 132,209 $ 204,623 $ 16,457 $ 7,714 |
Risk Categories and Year of Origination | The following table presents total loans by risk categories and year of origination. Term Loans Amortized Cost Basis by Origination Year As of June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Risk Rating Pass $ 54,049 $ 254,672 $ 225,147 $ 143,875 $ 151,048 $ 373,002 $ 13,986 $ 1,215,779 Special mention 0 0 4,496 12,838 8,515 9,389 0 35,238 Substandard 0 0 1,650 3,841 2,063 24,149 1,108 32,811 Total commercial real estate loans $ 54,049 $ 254,672 $ 231,293 $ 160,554 $ 161,626 $ 406,540 $ 15,094 $ 1,283,828 Commercial real estate current period gross write-offs $ 0 $ 0 $ 0 $ 0 $ 1 $ 156 $ 0 $ 157 Commercial and industrial Risk Rating Pass $ 63,363 $ 97,102 $ 48,716 $ 29,047 $ 13,470 $ 29,190 $ 66,907 $ 347,795 Special mention 0 174 616 75 1,038 10 5,229 7,142 Substandard 228 3,408 333 783 294 1,006 2,962 9,014 Total commercial loans $ 63,591 $ 100,684 $ 49,665 $ 29,905 $ 14,802 $ 30,206 $ 75,098 $ 363,951 Commercial and industrial current period gross write-offs $ 0 $ 95 $ 377 $ 11 $ 16 $ 172 $ 0 $ 671 Agricultural Risk Rating Pass $ 18,279 $ 53,234 $ 32,543 $ 41,069 $ 21,627 $ 64,050 $ 17,305 $ 248,107 Special mention 0 0 0 0 0 0 0 0 Substandard 0 0 369 216 61 2,390 128 3,164 Total agricultural loans $ 18,279 $ 53,234 $ 32,912 $ 41,285 $ 21,688 $ 66,440 $ 17,433 $ 251,271 Agricultural current period gross write-offs $ 0 $ 15 $ 44 $ 0 $ 0 $ 4 $ 0 $ 63 Residential real estate Risk Rating Pass $ 26,642 $ 177,294 $ 169,952 $ 141,482 $ 51,291 $ 268,622 $ 3,699 $ 838,982 Special mention 0 0 0 68 113 159 0 340 Substandard 0 31 455 440 378 8,582 0 9,886 Total residential real estate loans $ 26,642 $ 177,325 $ 170,407 $ 141,990 $ 51,782 $ 277,363 $ 3,699 $ 849,208 Residential real estate current period gross write-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 82 $ 0 $ 82 Home equity lines of credit Risk Rating Pass $ 0 $ 19 $ 10 $ 47 $ 67 $ 2,066 $ 134,014 $ 136,223 Special mention 0 0 0 0 0 0 38 38 Substandard 0 27 50 82 20 2,028 99 2,306 Total home equity lines of credit $ 0 $ 46 $ 60 $ 129 $ 87 $ 4,094 $ 134,151 $ 138,567 Home equity lines of credit current period gross write-offs $ 0 $ 0 $ 0 $ 8 $ 0 $ 4 $ 0 $ 12 Consumer Risk Rating Pass $ 44,887 $ 87,410 $ 40,831 $ 27,009 $ 16,462 $ 43,017 $ 7,843 $ 267,459 Substandard 0 168 65 245 176 262 0 916 Total consumer loans $ 44,887 $ 87,578 $ 40,896 $ 27,254 $ 16,638 $ 43,279 $ 7,843 $ 268,375 Consumer current period gross write-offs $ 0 $ 113 $ 46 $ 76 $ 30 $ 157 $ 33 $ 455 Term Loans Amortized Cost Basis by Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Total Commercial real estate Risk Rating Pass $ 188,240 $ 174,841 $ 120,883 $ 138,342 $ 89,769 $ 256,103 $ 17,286 $ 985,464 Special mention 0 711 1,861 5,286 624 18,252 0 26,734 Substandard 0 18 256 1,968 267 10,952 1,163 14,624 Total commercial real estate loans $ 188,240 $ 175,570 $ 123,000 $ 145,596 $ 90,660 $ 285,307 $ 18,449 $ 1,026,822 Commercial Risk Rating Pass $ 100,368 $ 45,872 $ 34,110 $ 16,854 $ 13,574 $ 14,664 $ 56,970 $ 282,412 Special mention 0 197 0 0 0 0 580 777 Substandard 3,642 1,331 356 152 110 1,761 3,865 11,217 Total commercial loans $ 104,010 $ 47,400 $ 34,466 $ 17,006 $ 13,684 $ 16,425 $ 61,415 $ 294,406 Agricultural Risk Rating Pass $ 51,096 $ 36,376 $ 44,133 $ 23,661 $ 24,003 $ 45,490 $ 19,300 $ 244,059 Special mention 0 0 0 0 0 0 250 250 Substandard 0 379 235 72 0 2,146 30 2,862 Total agricultural loans $ 51,096 $ 36,755 $ 44,368 $ 23,733 $ 24,003 $ 47,636 $ 19,580 $ 247,171 Residential real estate Risk Rating Pass $ 83,951 $ 112,463 $ 76,095 $ 31,404 $ 22,918 $ 135,757 $ 3,956 $ 466,544 Special mention 0 0 70 118 76 93 0 357 Substandard 0 136 249 121 9 7,932 0 8,447 Total residential real estate loans $ 83,951 $ 112,599 $ 76,414 $ 31,643 $ 23,003 $ 143,782 $ 3,956 $ 475,348 Home equity lines of credit Risk Rating Pass $ 0 $ 10 $ 0 $ 0 $ 16 $ 1,394 $ 128,622 $ 130,042 Special mention 0 0 0 0 0 0 49 49 Substandard 0 13 137 20 0 1,848 100 2,118 Total home equity lines of credit $ 0 $ 23 $ 137 $ 20 $ 16 $ 3,242 $ 128,771 $ 132,209 Consumer Risk Rating Pass $ 98,530 $ 46,945 $ 32,284 $ 20,849 $ 10,918 $ 10,942 $ 7,302 $ 227,770 Special mention 0 0 0 0 0 0 0 0 Substandard 102 113 267 230 109 202 1 1,024 Total consumer loans $ 98,632 $ 47,058 $ 32,551 $ 21,079 $ 11,027 $ 11,144 $ 7,303 $ 228,794 |
Summary of Loan Pools and Methodology Used in Calculation of Allowance for Credit Losses | The following table presents the loan pools and the associated methodology used during the calculation of the allowance for credit losses in 2023. Portfolio Segments Loan Pool Methodology Loss Drivers Residential real estate 1-4 Family Residential Real Estate - 1st Liens Cohort Credit Loss History 1-4 Family Residential Real Estate - 2nd Liens Cohort Credit Loss History Home Equity Lines of Credit Home Equity Lines of Credit Cohort Credit Loss History Consumer Finance Cash Reserves Cohort Credit Loss History Direct Cohort Credit Loss History Indirect Cohort Credit Loss History Commercial Commercial and Industrial PD/LGD Credit Loss History Agricultural PD/LGD Credit Loss History Municipal PD/LGD Credit Loss History Commercial real estate Owner Occupied PD/LGD Credit Loss History Non-Owner Occupied PD/LGD Credit Loss History Multifamily PD/LGD Credit Loss History Farmland PD/LGD Credit Loss History Construction PD/LGD Credit Loss History |
Schedule of Par Value of Purchased Loans | 2023 Par value of acquired loans at acquisition $ 797,616 Net purchase discount ( 55,958 ) Allowance for credit losses of PCD loans ( 999 ) Purchase price of loans at acquisition $ 740,659 |
Schedule of Outstanding Balance and Related Allowance on Loans | The outstanding balance at June 30, 2023 and related allowance on PCD loans is as follows: Loan Balance ACL Balance Commercial real estate Owner Occupied $ 1,739 $ 33 Non-owner Occupied 35,694 1,222 Farmland 13 0 Commercial Commercial and industrial 2,655 160 Agricultural 149 10 Residential real estate 1-4 family residential 3,512 21 Home equity lines of credit 3 0 Total $ 43,765 $ 1,446 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Noninterest Income by Revenue Stream and Reportable Segment, Net of Eliminations | All material revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s noninterest income by revenue stream and reportable segment, net of eliminations, for the three and six months ended June 30, 2023 and 2022. (In Thousands of Dollars) Trust Bank Totals For Three Months Ended June 30, 2023 Service charges on deposit accounts $ 0 $ 1,501 $ 1,501 Debit card and EFT fees 0 1,810 1,810 Trust fees 2,248 0 2,248 Insurance agency commissions 0 1,332 1,332 Retirement plan consulting fees 382 0 382 Investment commissions 0 476 476 Other (outside the scope of ASC 606) 0 1,700 1,700 Total noninterest income $ 2,630 $ 6,819 $ 9,449 (In Thousands of Dollars) Trust Bank Totals For Three Months Ended June 30, 2022 Service charges on deposit accounts $ 0 $ 1,139 $ 1,139 Debit card and EFT fees 0 1,528 1,528 Trust fees 2,376 0 2,376 Insurance agency commissions 0 1,086 1,086 Retirement plan consulting fees 323 0 323 Investment commissions 0 557 557 Other (outside the scope of ASC 606) 0 2,468 2,468 Total noninterest income $ 2,699 $ 6,778 $ 9,477 (In Thousands of Dollars) Trust Bank Totals For Six Months Ended June 30, 2023 Service charges on deposit accounts $ 0 $ 2,933 $ 2,933 Debit card and EFT fees 0 3,599 3,599 Trust fees 4,835 0 4,835 Insurance agency commissions 0 2,788 2,788 Retirement plan consulting fees 689 0 689 Investment commissions 0 869 869 Other (outside the scope of ASC 606) 0 4,161 4,161 Total noninterest income $ 5,524 $ 14,350 $ 19,874 (In Thousands of Dollars) Trust Bank Totals For Six Months Ended June 30, 2022 Service charges on deposit accounts $ 0 $ 2,284 $ 2,284 Debit card and EFT fees 0 2,944 2,944 Trust fees 4,895 0 4,895 Insurance agency commissions 0 2,133 2,133 Retirement plan consulting fees 720 0 720 Investment commissions 0 1,251 1,251 Other (outside the scope of ASC 606) 8,375 4,573 12,948 Total noninterest income $ 13,990 $ 13,185 $ 27,175 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurements at June 30, 2023 Using: (In Thousands of Dollars) Carrying Quoted Prices in Identical Assets Significant Other Significant Financial Assets Investment securities available-for sale U.S. Treasury and U.S. government sponsored entities $ 135,165 $ 0 $ 135,165 $ 0 State and political subdivisions 543,062 0 543,062 0 Corporate bonds 17,632 0 16,409 1,223 Mortgage-backed securities-residential 541,124 0 541,123 1 Collateralized mortgage obligations 76,796 0 76,796 0 Small Business Administration 3,099 0 3,099 0 Equity securities Equity securities at fair value 218 218 0 0 Other investments measured at net asset value 15,034 n/a n/a n/a Total investment securities $ 1,332,130 $ 218 $ 1,315,654 $ 1,224 Loans held for sale $ 2,197 $ 0 $ 1,703 $ 0 Interest rate swaps 5,494 $ 0 5,494 0 Mortgage banking derivative 14 0 14 0 Financial Liabilities Interest rate swaps $ 5,494 $ 0 $ 5,494 $ 0 Fair Value Measurements at December 31, 2022 Using: (In Thousands of Dollars) Carrying Quoted Prices in Significant Other Significant Financial Assets Investment securities available-for sale U.S. Treasury and U.S. government sponsored entities $ 128,096 $ 0 $ 128,096 $ 0 State and political subdivisions 530,080 0 530,080 0 Corporate bonds 3,879 0 3,879 0 Mortgage-backed securities-residential 555,142 0 555,141 1 Collateralized mortgage obligations 47,354 0 47,354 0 Small Business Administration 3,474 0 3,474 0 Equity securities Equity securities at fair value 196 196 0 0 Other investments measured at net asset value 15,048 n/a n/a n/a Total investment securities $ 1,283,269 $ 196 $ 1,268,024 $ 1 Loans held for sale $ 858 $ 0 $ 858 $ 0 Interest rate swaps 5,503 0 5,503 0 Mortgage banking derivative -asset 31 0 31 0 Financial Liabilities Interest rate swaps $ 5,503 $ 0 $ 5,503 $ 0 |
Reconciliation of All Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months ended Six Months ended (In Thousands of Dollars) 2023 2022 2023 2022 Beginning Balance $ 1,616 $ 2 $ 1 $ 3 Transfers between levels 0 0 0 0 Acquired and/or purchased 0 0 1,615 0 Repayments, calls and maturities ( 392 ) 0 ( 392 ) ( 1 ) Ending Balance $ 1,224 $ 2 $ 1,224 $ 2 |
Assets Measured at Fair Value on Non-Recurring Basis | Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at June 30, 2023 Using: (In Thousands of Dollars) Carrying Quoted Prices in Significant Other Significant Financial Assets Individually evaluated loans Commercial real estate Non-owner occupied $ 2,920 $ 0 $ 0 $ 2,920 Commercial Commercial and industrial $ 395 $ 0 $ 0 $ 395 Fair Value Measurements at December 31, 2022 Using: (In Thousands of Dollars) Carrying Quoted Prices in Significant Other Significant Financial Assets Individually Evaluated loans Commercial real estate Non-owner occupied $ 746 0 0 $ 746 Commercial 395 0 0 395 1–4 family residential 74 0 0 74 |
Fair Value Measurements for Financial Instruments | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods ended June 30, 2023 and December 31, 2022: June 30, 2023 Fair value Valuation Unobservable Input(s) Range Individually evaluated loans Commercial real estate $ 2,920 Sales Comparison Adjustment for differences between comparable sales ( 66.12 %) - 40.28 % 15.88 % Commercial 395 Quoted price for collateral Offer Price 50.55 % December 31, 2022 Fair value Valuation Unobservable Input(s) Range Individually evaluated loans Commercial real estate $ 746 Quoted price for collateral Offer Price 7.45 % Commercial 395 Quoted price for collateral Offer Price 43.00 % Residential 74 Sales comparison Adjustment for differences between comparable sales ( 13.77 %) - ( 5.68 %) 13.77 %) |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments not previously disclosed at June 30, 2023 and December 31, 2022 are as follows: Fair Value Measurements at June 30, 2023 Using: (In Thousands of Dollars) Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 116,063 $ 29,800 $ 86,263 $ 0 $ 116,063 Regulatory stock 29,723 n/a n/a n/a n/a Loans, net 3,120,243 0 0 2,985,702 2,985,702 Financial liabilities Deposits 4,270,748 3,589,251 679,516 0 4,268,767 Short-term borrowings 300,000 0 300,000 0 300,000 Long-term borrowings 88,437 0 68,480 0 68,480 Fair Value Measurements at December 31, 2022 Using: (In Thousands of Dollars) Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 75,551 $ 21,395 $ 54,156 $ 0 $ 75,551 Regulatory stock 18,200 n/a n/a n/a n/a Loans, net 2,377,772 0 0 2,330,164 2,330,164 Financial liabilities Deposits 3,561,768 2,999,188 561,292 0 3,560,480 Short-term borrowings 95,000 0 95,000 0 95,000 Long-term borrowings 88,211 0 73,566 0 73,566 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets | Acquired Intangible Assets Acquired intangible assets were as follows: June 30, 2023 December 31, 2022 (In Thousands of Dollars) Gross Carrying Accumulated Gross Carrying Accumulated Amortized intangible assets: Customer relationship intangibles $ 7,210 $ ( 6,873 ) $ 7,210 $ ( 6,793 ) Non-compete contracts 457 ( 407 ) 457 ( 401 ) Trade name 1,126 ( 425 ) 1,126 ( 409 ) Core deposit intangible 32,115 ( 9,059 ) 12,866 ( 7,030 ) Total $ 40,908 $ ( 16,764 ) $ 21,659 $ ( 14,633 ) |
Estimated Amortization Expense | Estimated amortization expense for each of the next five periods and thereafter: 2023 (6 months) $ 1,450 2024 2,872 2025 2,806 2026 2,710 2027 2,596 Thereafter 11,710 Total $ 24,144 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Maturities of Lease Liabilities | Maturities of lease liabilities are as follows as of June 30, 2023: 2023 (6 months) $ 686 2024 1,176 2025 1,092 2026 975 2027 898 Thereafter 6,575 Total Payments 11,402 Less: Imputed Interest ( 1,879 ) Total $ 9,523 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is shown in the following table: Three Months Ended Six Months Ended 2023 2022 2023 2022 Basic EPS Net income (In thousands of dollars) $ 14,966 $ 15,951 $ 22,041 $ 31,795 Weighted average shares outstanding 37,233,732 33,850,449 37,527,050 33,835,550 Basic earnings per share $ 0.40 $ 0.47 $ 0.59 $ 0.94 Diluted EPS Net income (In thousands of dollars) $ 14,966 $ 15,951 $ 22,041 $ 31,795 Weighted average shares outstanding for basic earnings per share 37,233,732 33,850,449 37,527,050 33,835,550 Dilutive effect of restricted stock awards 86,721 72,395 96,822 91,796 Weighted average shares for diluted earnings per share 37,320,453 33,922,844 37,623,872 33,927,346 Diluted earnings per share $ 0.40 $ 0.47 $ 0.59 $ 0.94 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Award Activity under Plans | The following is the activity under the Plans during the six month period ended June 30, 2023. Maximum Weighted Date Maximum Weighted Date Beginning balance - non-vested shares 193,015 $ 16.69 137,369 $ 15.85 Granted 54,095 13.12 102,750 14.16 Vested ( 27,740 ) 12.96 ( 30,635 ) 14.35 Forfeited ( 1,541 ) 17.64 0 0.00 Ending balance - non-vested shares 217,829 $ 15.84 209,484 $ 15.01 The following is the activity under the Plans during the six month period ended June 30, 2022. Maximum Weighted Date Maximum Weighted Date Beginning balance - non-vested shares 99,564 $ 16.13 158,988 $ 14.40 Granted 101,768 17.05 56,724 17.25 Vested ( 20,771 ) 16.81 ( 65,481 ) 17.48 Forfeited 0 0.00 ( 12,862 ) 14.74 Ending balance - non-vested shares 180,561 $ 16.92 137,369 $ 15.85 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Other Comprehensive Loss | The following tables represent the details of other comprehensive loss for the three and six month periods ended June 30, 2023 and 2022. Other Comprehensive Income (Loss): Three Months Ended June 30, 2023 (In Thousands of Dollars) Pre-tax Tax After-Tax Unrealized holding gains on available-for-sale securities during the period $ ( 21,309 ) $ 4,475 $ ( 16,834 ) Reclassification adjustment for gains included in net income (1) 0 0 0 Net other comprehensive (loss) $ ( 21,309 ) $ 4,475 $ ( 16,834 ) Three Months Ended June 30, 2022 (In Thousands of Dollars) Pre-tax Tax After-Tax Unrealized holding losses on available-for-sale securities during the period $ ( 105,497 ) $ 22,154 $ ( 83,343 ) Reclassification adjustment for gains included in net income (1) 31 ( 6 ) 25 Net unrealized gains on available-for-sale securities $ ( 105,466 ) $ 22,148 $ ( 83,318 ) Change in funded status of post-retirement health plan ( 2 ) 0 ( 2 ) Net other comprehensive (loss) $ ( 105,468 ) $ 22,148 $ ( 83,320 ) Six Months Ended June 30, 2023 (In Thousands of Dollars) Pre-tax Tax After-Tax Unrealized holding gains on available-for-sale securities during the period $ 21,591 $ ( 4,534 ) $ 17,057 Reclassification adjustment for losses included in net income (1) ( 120 ) 25 ( 95 ) Net other comprehensive income $ 21,471 $ ( 4,509 ) $ 16,962 Six Months Ended June 30, 2022 (In Thousands of Dollars) Pre-tax Tax After-Tax Unrealized holding losses on available-for-sale securities during the period $ ( 217,894 ) $ 45,758 $ ( 172,136 ) Reclassification adjustment for losses included in net income (1) 31 ( 7 ) 24 Net unrealized gains on available-for-sale securities $ ( 217,863 ) $ 45,751 $ ( 172,112 ) Change in funded status of post-retirement health plan ( 3 ) 0 ( 3 ) Net other comprehensive (loss) $ ( 217,866 ) $ 45,751 $ ( 172,115 ) (1) Pre-tax reclassification adjustments relating to available-for-sale securities are reported in security gains and the tax impact is included in income tax expense on the consolidated statements of income. |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Actual and Required Capital Amounts and Ratios, Not Include Capital Conservation Buffer | Actual and required capital amounts and ratios, which do not include the capital conservation buffer, are presented below at June 30, 2023 and December 31, 2022: Actual Requirement For Capital To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio June 30, 2023 Common equity tier 1 capital ratio Consolidated $ 374,278 10.25 % $ 164,288 4.5 % N/A N/A Bank 391,584 10.75 % 163,977 4.5 % 236,855 6.5 % Total risk based capital ratio Consolidated 502,235 13.76 % 292,068 8.0 % N/A N/A Bank 426,541 11.71 % 291,514 8.0 % 364,393 10.0 % Tier 1 risk based capital ratio Consolidated 392,278 10.74 % 219,051 6.0 % N/A N/A Bank 391,584 10.75 % 218,636 6.0 % 291,514 8.0 % Tier 1 leverage ratio Consolidated 392,278 7.68 % 204,281 4.0 % N/A N/A Bank 391,584 7.70 % 203,408 4.0 % 254,261 5.0 % December 31, 2022 Common equity tier 1 capital ratio Consolidated $ 403,307 13.71 % $ 132,349 4.5 % N/A N/A Bank 372,679 12.71 % 131,968 4.5 % $ 190,620 6.5 % Total risk based capital ratio Consolidated 523,285 17.79 % 235,288 8.0 % N/A N/A Bank 399,657 13.62 % 234,609 8.0 % 293,262 10.0 % Tier 1 risk based capital ratio Consolidated 421,307 14.32 % 176,466 6.0 % N/A N/A Bank 372,679 12.71 % 175,957 6.0 % 234,609 8.0 % Tier 1 leverage ratio Consolidated 421,307 9.84 % 171,233 4.0 % N/A N/A Bank 372,679 8.76 % 170,245 4.0 % 212,807 5.0 % |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Significant segment totals are reconciled to the financial statements as follows: (In Thousands of Dollars) Trust Bank Eliminations Consolidated June 30, 2023 Goodwill and other intangibles $ 5,709 $ 190,605 $ ( 4,263 ) $ 192,051 Total assets $ 17,610 $ 5,050,547 $ 5,297 $ 5,073,454 (In Thousands of Dollars) Trust Bank Eliminations Consolidated December 31, 2022 Goodwill and other intangibles $ 5,739 $ 100,190 $ ( 4,263 ) $ 101,666 Total assets $ 14,383 $ 4,064,112 $ 3,705 $ 4,082,200 (In Thousands of Dollars) Trust Bank Eliminations Consolidated For Three Months Ended June 30, 2023 Net interest income $ 57 $ 35,476 $ ( 955 ) $ 34,578 Provision for credit losses and unfunded loans 0 25 0 25 Service fees, security gains and other noninterest income 2,668 7,167 ( 386 ) 9,449 Noninterest expense 1,654 22,056 475 24,185 Amortization and depreciation expense 23 2,066 112 2,201 Income before taxes 1,048 18,496 ( 1,928 ) 17,616 Income taxes 221 2,859 ( 430 ) 2,650 Net income $ 827 $ 15,637 $ ( 1,498 ) $ 14,966 (In Thousands of Dollars) Trust Bank Eliminations Consolidated For Six Months Ended June 30, 2023 Net interest income $ 114 $ 72,984 $ ( 1,910 ) $ 71,188 Provision for credit losses and unfunded loans 0 8,624 0 8,624 Service fees, security gains and other noninterest income 5,568 14,923 ( 617 ) 19,874 Noninterest expense 3,297 48,591 1,120 53,008 Amortization and depreciation expense 46 3,828 226 4,100 Income before taxes 2,339 26,864 ( 3,873 ) 25,330 Income taxes 492 3,706 ( 909 ) 3,289 Net income $ 1,847 $ 23,158 $ ( 2,964 ) $ 22,041 (In Thousands of Dollars) Trust Bank Eliminations Consolidated For Three Months Ended June 30, 2022 Net interest income $ 38 $ 32,486 $ ( 813 ) $ 31,711 Provision for credit losses and unfunded loans 0 616 0 616 Service fees, security gains and other noninterest income 4,839 4,606 32 9,477 Noninterest expense 3,614 16,174 494 20,282 Amortization and depreciation expense 28 1,038 113 1,179 Income before taxes 1,235 19,264 ( 1,388 ) 19,111 Income taxes 258 3,266 ( 364 ) 3,160 Net income $ 977 $ 15,998 $ ( 1,024 ) $ 15,951 (In Thousands of Dollars) Trust Bank Eliminations Consolidated For Six Months Ended June 30, 2022 Net interest income $ 72 $ 64,479 $ ( 1,598 ) $ 62,953 Provision for credit losses and unfunded loans 0 258 0 258 Service fees, security gains and other noninterest income 14,037 13,347 ( 209 ) 27,175 Noninterest expense 5,383 43,616 577 49,576 Amortization and depreciation expense 56 2,058 227 2,341 Income before taxes 8,670 31,894 ( 2,611 ) 37,953 Income taxes 1,820 5,000 ( 662 ) 6,158 Net income $ 6,850 $ 26,894 $ ( 1,949 ) $ 31,795 |
Long-Term Borrowings (Tables)
Long-Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of All Junior Subordinated Debentures and Subordinated Debentures | A summary of all junior subordinated debentures issued by the Company to affiliates and subordinated debentures follows. For the junior subordinated debentures, these amounts represent the par value of the obligations owed to these affiliates, including the Company’s equity interest in the trusts along with any unamortized fair value marks. For the subordinated debentures, these amounts represent the par value less the remaining deferred offering expense associated with the issuance of the debentures. June 30, 2023 December 31, 2022 Amount Amount TSEO Statutory Trust I $ 2,497 $ 2,472 Maple Leaf Financial Statutory Trust II 7,629 7,517 Cortland Statutory Trust I 4,354 4,327 Total junior subordinated debentures owed to unconsolidated subsidiary trusts $ 14,480 $ 14,316 Subordinated Debentures $ 73,957 $ 73,895 Total long-term borrowings $ 88,437 $ 88,211 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Textual) | 6 Months Ended | |
Jun. 30, 2023 Segment shares | Dec. 31, 2022 shares | |
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Operating segments of business | Segment | 2 | |
Common stock, shares authorized and available for issuance | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 37,457,253 | 34,055,125 |
ASU 2022-02 | ||
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 01, 2023 | |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |
ASU 2021-08 | ||
Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
Business Combinations (Details
Business Combinations (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jan. 01, 2023 | Jul. 01, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Nov. 01, 2021 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 167,907 | $ 94,640 | |||
Emclaire Financial Corp | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, date of merger agreement | Jan. 01, 2023 | ||||
Cash consideration per share | $ / shares | $ 14.12 | ||||
Maximum percentage of common shares exchanged for company's shares under merger agreement | 70% | ||||
Remaining percentage of common shares exchanged for company cash under merger agreement | 30% | ||||
Value of stock issued for acquisition | $ 33,440 | ||||
Fair value of total consideration transferred | 92,642 | $ 92,600 | |||
Merger related costs | 4,800 | $ 2,000 | |||
Goodwill | 73,400 | $ 73,400 | |||
Business combination, assets acquired | $ 977,159 | ||||
Emclaire Financial Corp | Common Stock | |||||
Business Acquisition [Line Items] | |||||
Cash consideration per share | $ / shares | $ 40 | ||||
Shares of stock issued for acquisition | 2.15 | 4,200,000 | |||
Value of stock issued for acquisition | $ 33,400 | ||||
Randy L. Jones Agency, Inc. | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 267 | ||||
Business combination, date of acquisition | Jul. 01, 2022 | ||||
Business combination, assets acquired | $ 900 | ||||
Business combination, intangible assets acquired | $ 633 | ||||
PCD Loans | |||||
Business Acquisition [Line Items] | |||||
Business combination acquired loans with fair value | $ 25,900 | ||||
Business combination acquired receivables with fair value | $ 714,400 | ||||
Business combination acquired loans with gross contractual amounts receivable | $ 764,800 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Nov. 01, 2021 | |
Fair value of liabilities assumed | ||||
Goodwill created | $ 94,640 | $ 167,907 | ||
Emclaire Financial Corp | ||||
Consideration | ||||
Cash | $ 33,440 | |||
Stock | 59,202 | |||
Fair value of total consideration transferred | 92,642 | $ 92,600 | ||
Fair value of assets acquired | ||||
Cash and cash equivalents | 20,265 | |||
Securities available for sale | 126,970 | |||
Other investments | 7,795 | |||
Loans | 740,659 | |||
Premises and equipment | 16,103 | |||
Bank owned life insurance | 22,485 | |||
Core deposit intangible | 19,249 | |||
Current and deferred taxes | 17,246 | |||
Other assets | 6,387 | |||
Total assets acquired | 977,159 | |||
Fair value of liabilities assumed | ||||
Deposits | 875,813 | |||
Short-term borrowings | 75,000 | |||
Accrued interest payable and other liabilities | 7,104 | |||
Total liabilities | 957,917 | |||
Net assets acquired | 19,242 | |||
Goodwill created | 73,400 | $ 73,400 | ||
Total net assets acquired | $ 92,642 |
Business Combinations - (Detail
Business Combinations - (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Business Combinations [Abstract] | ||
Net interest income | $ 43,126 | $ 85,127 |
Provision for credit losses | 991 | 8,246 |
Noninterest income | 10,427 | 29,133 |
Noninterest expense | 28,253 | 69,426 |
Income before income taxes | 24,309 | 36,588 |
Income tax expense | 4,237 | 5,796 |
Net income | $ 20,072 | $ 30,792 |
Basic earnings per share | $ 0.53 | $ 0.81 |
Diluted earnings per share | $ 0.53 | $ 0.81 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 1,561,850 | $ 1,534,512 |
Gross Unrealized Gains | 1,201 | 278 |
Gross Unrealized Losses | (246,173) | (266,765) |
Fair Value | 1,316,878 | 1,268,025 |
U.S. Treasury and U.S. government sponsored entities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 155,169 | 149,712 |
Gross Unrealized Gains | 99 | 0 |
Gross Unrealized Losses | (20,103) | (21,616) |
Fair Value | 135,165 | 128,096 |
State and political subdivisions | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 648,030 | 651,705 |
Gross Unrealized Gains | 951 | 266 |
Gross Unrealized Losses | (105,919) | (121,891) |
Fair Value | 543,062 | 530,080 |
Corporate bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 18,329 | 4,181 |
Gross Unrealized Gains | 25 | 0 |
Gross Unrealized Losses | (722) | (302) |
Fair Value | 17,632 | 3,879 |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 653,898 | 672,784 |
Gross Unrealized Gains | 9 | 12 |
Gross Unrealized Losses | (112,783) | (117,654) |
Fair Value | 541,124 | 555,142 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 82,965 | 52,291 |
Gross Unrealized Gains | 117 | 0 |
Gross Unrealized Losses | (6,286) | (4,937) |
Fair Value | 76,796 | 47,354 |
Small Business Administration | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 3,459 | 3,839 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (360) | (365) |
Fair Value | $ 3,099 | $ 3,474 |
Securities (Details Textual)
Securities (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) Securities | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Securities | Jun. 30, 2022 USD ($) | |
Debt Securities, Available-for-Sale [Line Items] | ||||
Proceeds from sale of available for sale securities | $ 0 | $ 1,700,000 | $ 69,918,000 | $ 1,670,000 |
Gross gains realized | 441,000 | |||
Gross losses realized | 31,000 | $ 321,000 | 31,000 | |
Number of securities | Securities | 988 | 988 | ||
Number of securities on unrealized loss position | Securities | 899 | 899 | ||
Allowance for credit losses on available-for-sale securities | $ 0 | $ 0 | ||
ASU 2016-01 | Equity securities | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Realized gains recognized in income statement for securities | $ 13,000 | $ 14,000 | ||
Realized loss recognized in income statement for securities | $ 29,000 | $ 40,000 |
Securities (Details 1)
Securities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized cost and fair value of the debt securities maturity | ||
Amortized Cost, Within one year | $ 716 | |
Amortized Cost, One to five years | 39,851 | |
Amortized Cost, Five to ten years | 180,584 | |
Amortized Cost, Beyond ten years | 600,377 | |
Amortized Cost, Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities | 740,322 | |
Amortized Cost | 1,561,850 | $ 1,534,512 |
Fair Value, Within one year | 706 | |
Fair Value, One to five years | 37,153 | |
Fair Value, Five to ten years | 159,597 | |
Fair Value, Beyond ten years | 498,403 | |
Fair Value, Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities | 621,019 | |
Fair Value, Total | $ 1,316,878 | $ 1,268,025 |
Securities (Details 2)
Securities (Details 2) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | $ 133,120 | $ 506,824 |
Unrealized Losses, Less Than 12 Months | (4,912) | (80,411) |
Fair Value, 12 Months or Longer | 1,131,064 | 728,881 |
Unrealized Losses, 12 Months or Longer | (241,261) | (186,354) |
Fair Value, Total | 1,264,184 | 1,235,705 |
Unrealized Losses, Total | (246,173) | (266,765) |
U.S. Treasury and U.S. government sponsored entities | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 14,652 | 52,311 |
Unrealized Losses, Less Than 12 Months | (692) | (5,835) |
Fair Value, 12 Months or Longer | 115,535 | 75,685 |
Unrealized Losses, 12 Months or Longer | (19,411) | (15,781) |
Fair Value, Total | 130,187 | 127,996 |
Unrealized Losses, Total | (20,103) | (21,616) |
State and political subdivisions | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 73,802 | 306,709 |
Unrealized Losses, Less Than 12 Months | (2,835) | (56,650) |
Fair Value, 12 Months or Longer | 432,373 | 191,584 |
Unrealized Losses, 12 Months or Longer | (103,084) | (65,241) |
Fair Value, Total | 506,175 | 498,293 |
Unrealized Losses, Total | (105,919) | (121,891) |
Corporate bonds | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 11,011 | 2,893 |
Unrealized Losses, Less Than 12 Months | (411) | (122) |
Fair Value, 12 Months or Longer | 3,561 | 986 |
Unrealized Losses, 12 Months or Longer | (311) | (180) |
Fair Value, Total | 14,572 | 3,879 |
Unrealized Losses, Total | (722) | (302) |
Mortgage-backed securities - residential | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 4,678 | 101,476 |
Unrealized Losses, Less Than 12 Months | (44) | (13,545) |
Fair Value, 12 Months or Longer | 535,644 | 453,233 |
Unrealized Losses, 12 Months or Longer | (112,739) | (104,109) |
Fair Value, Total | 540,322 | 554,709 |
Unrealized Losses, Total | (112,783) | (117,654) |
Collateralized mortgage obligations | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 28,977 | 42,140 |
Unrealized Losses, Less Than 12 Months | (930) | (4,137) |
Fair Value, 12 Months or Longer | 40,852 | 5,214 |
Unrealized Losses, 12 Months or Longer | (5,356) | (800) |
Fair Value, Total | 69,829 | 47,354 |
Unrealized Losses, Total | (6,286) | (4,937) |
Small Business Administration | ||
Investment securities with unrealized losses | ||
Fair Value, Less Than 12 Months | 0 | 1,295 |
Unrealized Losses, Less Than 12 Months | 0 | (122) |
Fair Value, 12 Months or Longer | 3,099 | 2,179 |
Unrealized Losses, 12 Months or Longer | (360) | (243) |
Fair Value, Total | 3,099 | 3,474 |
Unrealized Losses, Total | $ (360) | $ (365) |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of loan balances | ||||||
Total loans | $ 3,120,243 | $ 2,377,772 | ||||
Net deferred loan costs | 8,360 | 6,890 | ||||
Allowance for credit losses | (34,957) | $ (36,011) | (26,978) | $ (27,454) | $ (27,015) | $ (29,386) |
Commercial real estate | ||||||
Schedule of loan balances | ||||||
Allowance for credit losses | (18,537) | (19,819) | (14,840) | (14,859) | (15,207) | (15,879) |
Commercial | ||||||
Schedule of loan balances | ||||||
Allowance for credit losses | (5,295) | (5,230) | (4,186) | (3,893) | (3,867) | (4,949) |
Residential real estate | ||||||
Schedule of loan balances | ||||||
Allowance for credit losses | (6,866) | (6,732) | (4,374) | (4,915) | (4,702) | (4,870) |
Consumer | ||||||
Schedule of loan balances | ||||||
Allowance for credit losses | (4,259) | $ (4,230) | (3,578) | $ (3,787) | $ (3,239) | $ (3,688) |
Loans | ||||||
Schedule of loan balances | ||||||
Total loans | 3,146,840 | 2,397,860 | ||||
Loans | Commercial real estate, Owner occupied | Commercial real estate | ||||||
Schedule of loan balances | ||||||
Loan balances | 357,329 | 330,768 | ||||
Loans | Commercial real estate, Non-owner occupied | Commercial real estate | ||||||
Schedule of loan balances | ||||||
Loan balances | 697,486 | 563,652 | ||||
Loans | Commercial real estate, Farmland | Commercial real estate | ||||||
Schedule of loan balances | ||||||
Loan balances | 192,182 | 188,850 | ||||
Loans | Commercial real estate, Other | Commercial real estate | ||||||
Schedule of loan balances | ||||||
Loan balances | 230,160 | 133,630 | ||||
Loans | Commercial, Commercial and industrial | Commercial | ||||||
Schedule of loan balances | ||||||
Loan balances | 362,664 | 293,643 | ||||
Loans | Commercial, Agricultural | Commercial | ||||||
Schedule of loan balances | ||||||
Loan balances | 58,625 | 58,087 | ||||
Loans | Residential real estate, 1-4 family residential | Residential real estate | ||||||
Schedule of loan balances | ||||||
Loan balances | 849,533 | 475,791 | ||||
Loans | Residential real estate, Home equity lines of credit | Residential real estate | ||||||
Schedule of loan balances | ||||||
Loan balances | 138,535 | 132,179 | ||||
Loans | Consumer, Indirect | Consumer | ||||||
Schedule of loan balances | ||||||
Loan balances | 226,187 | 197,125 | ||||
Loans | Consumer, Direct | Consumer | ||||||
Schedule of loan balances | ||||||
Loan balances | 25,980 | 16,421 | ||||
Loans | Consumer, Other | Consumer | ||||||
Schedule of loan balances | ||||||
Loan balances | $ 8,159 | $ 7,714 |
Loans (Details 1)
Loans (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | $ 36,011 | $ 27,015 | $ 26,978 | $ 29,386 |
PCD ACL on loans acquired | 0 | 999 | ||
(Credit) Provision for credit losses | (255) | 482 | 8,050 | (448) |
Loans charged off | (971) | (178) | (1,440) | (1,768) |
Recoveries | 172 | 135 | 370 | 284 |
Ending balance | 34,957 | 27,454 | 34,957 | 27,454 |
Commercial real estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 19,819 | 15,207 | 14,840 | 15,879 |
PCD ACL on loans acquired | 0 | 850 | ||
(Credit) Provision for credit losses | (1,125) | (349) | 3,003 | (1,021) |
Loans charged off | (157) | 0 | (157) | 0 |
Recoveries | 0 | 1 | 1 | 1 |
Ending balance | 18,537 | 14,859 | 18,537 | 14,859 |
Commercial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 5,230 | 3,867 | 4,186 | 4,949 |
PCD ACL on loans acquired | 0 | 138 | ||
(Credit) Provision for credit losses | 639 | 70 | 1,683 | 341 |
Loans charged off | (591) | (46) | (734) | (1,405) |
Recoveries | 17 | 2 | 22 | 8 |
Ending balance | 5,295 | 3,893 | 5,295 | 3,893 |
Residential real estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 6,732 | 4,702 | 4,374 | 4,870 |
PCD ACL on loans acquired | 0 | 11 | ||
(Credit) Provision for credit losses | 131 | 197 | 2,529 | 51 |
Loans charged off | (11) | 0 | (94) | (34) |
Recoveries | 14 | 16 | 46 | 28 |
Ending balance | 6,866 | 4,915 | 6,866 | 4,915 |
Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 4,230 | 3,239 | 3,578 | 3,688 |
PCD ACL on loans acquired | 0 | 0 | ||
(Credit) Provision for credit losses | 100 | 564 | 835 | 181 |
Loans charged off | (212) | (132) | (455) | (329) |
Recoveries | 141 | 116 | 301 | 247 |
Ending balance | $ 4,259 | $ 3,787 | $ 4,259 | $ 3,787 |
Loans (Details 2)
Loans (Details 2) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | $ 5,588 | |
Nonaccrual with an allowance for credit loss | 11,604 | $ 14,311 |
Loans Past Due 90 Days or More Still Accruing | 764 | 492 |
Originated Loans | Commercial real estate, Owner occupied | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 679 | |
Nonaccrual with an allowance for credit loss | 486 | 993 |
Loans Past Due 90 Days or More Still Accruing | 0 | 0 |
Originated Loans | Commercial real estate, Non-owner occupied | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 1,891 | |
Nonaccrual with an allowance for credit loss | 6,285 | 3,031 |
Loans Past Due 90 Days or More Still Accruing | 0 | 0 |
Originated Loans | Commercial real estate, Other | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 0 | |
Nonaccrual with an allowance for credit loss | 19 | 33 |
Loans Past Due 90 Days or More Still Accruing | 0 | 0 |
Originated Loans | Commercial real estate, Farmland | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 2,059 | |
Nonaccrual with an allowance for credit loss | 113 | 2,183 |
Loans Past Due 90 Days or More Still Accruing | 0 | 0 |
Originated Loans | Commercial, Commercial and industrial | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 117 | |
Nonaccrual with an allowance for credit loss | 1,780 | 3,840 |
Loans Past Due 90 Days or More Still Accruing | 0 | 50 |
Originated Loans | Commercial, Agricultural | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 224 | |
Nonaccrual with an allowance for credit loss | 198 | 299 |
Loans Past Due 90 Days or More Still Accruing | 0 | 0 |
Originated Loans | Residential real estate, 1-4 family residential | Residential real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 269 | |
Nonaccrual with an allowance for credit loss | 2,096 | 2,703 |
Loans Past Due 90 Days or More Still Accruing | 594 | 310 |
Originated Loans | Residential real estate, Home equity lines of credit | Residential real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 274 | |
Nonaccrual with an allowance for credit loss | 242 | 735 |
Loans Past Due 90 Days or More Still Accruing | 112 | 58 |
Originated Loans | Consumer, Indirect | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 10 | |
Nonaccrual with an allowance for credit loss | 296 | 313 |
Loans Past Due 90 Days or More Still Accruing | 57 | 62 |
Originated Loans | Consumer, Direct | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 65 | |
Nonaccrual with an allowance for credit loss | 86 | 179 |
Loans Past Due 90 Days or More Still Accruing | 1 | 12 |
Originated Loans | Consumer, Other | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with an allowance for credit loss | $ 2 | |
Originated Loans | Consumer, Other | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual with no allowance for credit loss | 0 | |
Nonaccrual with an allowance for credit loss | 3 | |
Loans Past Due 90 Days or More Still Accruing | $ 0 |
Loans (Details 3)
Loans (Details 3) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 3,155,200 | $ 2,404,750 |
Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 9,847 | |
Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,394 | |
Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 72 | |
Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 66 | |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,283,828 | 1,026,822 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 294,406 | |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 849,208 | 475,348 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 268,375 | 228,794 |
Commercial real estate, Owner occupied | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 357,066 | 330,457 |
Commercial real estate, Owner occupied | Commercial real estate | Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 801 | |
Commercial real estate, Owner occupied | Commercial real estate | Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Owner occupied | Commercial real estate | Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Owner occupied | Commercial real estate | Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Owner occupied | Commercial | Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Non-owner occupied | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 696,944 | 563,044 |
Commercial real estate, Non-owner occupied | Commercial real estate | Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,080 | |
Commercial real estate, Non-owner occupied | Commercial real estate | Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Non-owner occupied | Commercial real estate | Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Non-owner occupied | Commercial real estate | Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Farmland | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 191,945 | 188,582 |
Commercial real estate, Farmland | Commercial real estate | Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,059 | |
Commercial real estate, Farmland | Commercial real estate | Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Farmland | Commercial real estate | Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Farmland | Commercial real estate | Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 229,818 | 133,321 |
Commercial real estate, Other | Commercial real estate | Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Commercial and industrial | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 363,951 | 294,406 |
Commercial, Commercial and industrial | Commercial | Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,170 | |
Commercial, Commercial and industrial | Commercial | Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Commercial and industrial | Commercial | Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Agricultural | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 59,326 | 58,589 |
Commercial, Agricultural | Commercial | Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 224 | |
Commercial, Agricultural | Commercial | Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Agricultural | Commercial | Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, 1-4 family residential | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 849,208 | 475,348 |
Residential real estate, 1-4 family residential | Residential real estate | Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,576 | |
Residential real estate, 1-4 family residential | Residential real estate | Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, 1-4 family residential | Residential real estate | Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, 1-4 family residential | Residential real estate | Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, Home equity lines of credit | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 138,567 | 132,209 |
Residential real estate, Home equity lines of credit | Residential real estate | Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 331 | |
Residential real estate, Home equity lines of credit | Residential real estate | Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, Home equity lines of credit | Residential real estate | Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, Home equity lines of credit | Residential real estate | Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Indirect | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 234,209 | 204,623 |
Consumer, Indirect | Consumer | Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Indirect | Consumer | Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Indirect | Consumer | Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 48 | |
Consumer, Indirect | Consumer | Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Direct | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 26,007 | 16,457 |
Consumer, Direct | Consumer | Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Direct | Consumer | Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Direct | Consumer | Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 24 | |
Consumer, Direct | Consumer | Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 66 | |
Consumer, Other | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 8,159 | $ 7,714 |
Consumer, Other | Consumer | Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Other | Consumer | Business Assets | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Other | Consumer | Vehicles | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Other | Consumer | Cash | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 0 |
Loans (Details 4)
Loans (Details 4) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 3,155,200 | $ 2,404,750 |
Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 9,847 | |
Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,394 | |
Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 72 | |
Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 66 | |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 10,730 | 7,160 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,591 | 2,445 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 17,956 | 14,803 |
Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 30,277 | 24,408 |
Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,124,923 | 2,380,342 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,283,828 | 1,026,822 |
Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 294,406 | |
Residential real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 849,208 | 475,348 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 268,375 | 228,794 |
Commercial real estate, Owner occupied | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 357,066 | 330,457 |
Commercial real estate, Owner occupied | Commercial real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 801 | |
Commercial real estate, Owner occupied | Commercial real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Owner occupied | Commercial real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Owner occupied | Commercial real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 345 | 159 |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,165 | 993 |
Commercial real estate, Owner occupied | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,510 | 1,152 |
Commercial real estate, Owner occupied | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 355,556 | 329,305 |
Commercial real estate, Owner occupied | Commercial | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Non-owner occupied | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 696,944 | 563,044 |
Commercial real estate, Non-owner occupied | Commercial real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 5,080 | |
Commercial real estate, Non-owner occupied | Commercial real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Non-owner occupied | Commercial real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Non-owner occupied | Commercial real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 8,176 | 3,031 |
Commercial real estate, Non-owner occupied | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 8,176 | 3,031 |
Commercial real estate, Non-owner occupied | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 688,768 | 560,013 |
Commercial real estate, Farmland | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 191,945 | 188,582 |
Commercial real estate, Farmland | Commercial real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,059 | |
Commercial real estate, Farmland | Commercial real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Farmland | Commercial real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Farmland | Commercial real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 321 | 0 |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,172 | 2,183 |
Commercial real estate, Farmland | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,493 | 2,183 |
Commercial real estate, Farmland | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 189,452 | 186,399 |
Commercial real estate, Other | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 229,818 | 133,321 |
Commercial real estate, Other | Commercial real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate, Other | Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 80 | 0 |
Commercial real estate, Other | Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, Other | Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 19 | 33 |
Commercial real estate, Other | Commercial real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 99 | 33 |
Commercial real estate, Other | Commercial real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 229,719 | 133,288 |
Commercial, Commercial and industrial | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 363,951 | 294,406 |
Commercial, Commercial and industrial | Commercial | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,170 | |
Commercial, Commercial and industrial | Commercial | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Commercial and industrial | Commercial | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Commercial and industrial | Commercial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 378 | 1,034 |
Commercial, Commercial and industrial | Commercial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 239 | 185 |
Commercial, Commercial and industrial | Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,897 | 3,890 |
Commercial, Commercial and industrial | Commercial | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,514 | 5,109 |
Commercial, Commercial and industrial | Commercial | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 361,437 | 289,297 |
Commercial, Agricultural | Commercial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 59,326 | 58,589 |
Commercial, Agricultural | Commercial | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 224 | |
Commercial, Agricultural | Commercial | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Agricultural | Commercial | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Commercial, Agricultural | Commercial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 227 | 104 |
Commercial, Agricultural | Commercial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 166 | 20 |
Commercial, Agricultural | Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 422 | 299 |
Commercial, Agricultural | Commercial | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 815 | 423 |
Commercial, Agricultural | Commercial | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 58,511 | 58,166 |
Residential real estate, 1-4 family residential | Residential real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 849,208 | 475,348 |
Residential real estate, 1-4 family residential | Residential real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,576 | |
Residential real estate, 1-4 family residential | Residential real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, 1-4 family residential | Residential real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, 1-4 family residential | Residential real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 8,256 | 4,247 |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 979 | 1,775 |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,959 | 3,013 |
Residential real estate, 1-4 family residential | Residential real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 12,194 | 9,035 |
Residential real estate, 1-4 family residential | Residential real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 837,014 | 466,313 |
Residential real estate, Home equity lines of credit | Residential real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 138,567 | 132,209 |
Residential real estate, Home equity lines of credit | Residential real estate | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 331 | |
Residential real estate, Home equity lines of credit | Residential real estate | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, Home equity lines of credit | Residential real estate | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, Home equity lines of credit | Residential real estate | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 214 | 115 |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 108 | 92 |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 628 | 793 |
Residential real estate, Home equity lines of credit | Residential real estate | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 950 | 1,000 |
Residential real estate, Home equity lines of credit | Residential real estate | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 137,617 | 131,209 |
Consumer, Indirect | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 234,209 | 204,623 |
Consumer, Indirect | Consumer | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Indirect | Consumer | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Indirect | Consumer | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 48 | |
Consumer, Indirect | Consumer | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Indirect | Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 822 | 1,267 |
Consumer, Indirect | Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 79 | 298 |
Consumer, Indirect | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 363 | 375 |
Consumer, Indirect | Consumer | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,264 | 1,940 |
Consumer, Indirect | Consumer | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 232,945 | 202,683 |
Consumer, Direct | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 26,007 | 16,457 |
Consumer, Direct | Consumer | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Direct | Consumer | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Direct | Consumer | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 24 | |
Consumer, Direct | Consumer | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 66 | |
Consumer, Direct | Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 81 | 234 |
Consumer, Direct | Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 16 | 70 |
Consumer, Direct | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 152 | 191 |
Consumer, Direct | Consumer | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 249 | 495 |
Consumer, Direct | Consumer | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 25,758 | 15,962 |
Consumer, Other | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 8,159 | 7,714 |
Consumer, Other | Consumer | Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Other | Consumer | Business Assets | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Other | Consumer | Vehicles | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Other | Consumer | Cash | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 0 | |
Consumer, Other | Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 6 | 0 |
Consumer, Other | Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 4 | 5 |
Consumer, Other | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3 | 2 |
Consumer, Other | Consumer | Financing Receivables, Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 13 | 7 |
Consumer, Other | Consumer | Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 8,146 | $ 7,707 |
Loan Restructurings (Details)
Loan Restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) Loan | Jun. 30, 2023 USD ($) Loan | |
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | Loan | 0 | 1 |
Amortized Cost Basis | $ | $ 0 | $ 50 |
% of Total class of Financing receivable | 0% | 0.01% |
Accruing restructured loans | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | Loan | 0 | 1 |
Amortized Cost Basis | $ | $ 0 | $ 50 |
% of Total class of Financing receivable | 0% | 0.01% |
Accruing restructured loans | Commercial | Commercial, Commercial and industrial | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | Loan | 1 | |
Amortized Cost Basis | $ | $ 50 | |
% of Total class of Financing receivable | 0.01% | |
Nonaccrual restructured loans | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts | Loan | 0 | 0 |
Amortized Cost Basis | $ | $ 0 | $ 0 |
% of Total class of Financing receivable | 0% | 0% |
Loan Restructurings (Details 1)
Loan Restructurings (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | $ 0 | $ 50 |
Current | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | 50 |
30-89 Days Past due | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | 0 |
90+ Days Past due | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | 0 |
Accruing restructured loans | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | 50 |
Accruing restructured loans | Current | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | 50 |
Accruing restructured loans | 30-89 Days Past due | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | 0 |
Accruing restructured loans | 90+ Days Past due | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | 0 |
Accruing restructured loans | Commercial | Commercial, Commercial and industrial | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 50 | |
Accruing restructured loans | Commercial | Commercial, Commercial and industrial | Current | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 50 | |
Accruing restructured loans | Commercial | Commercial, Commercial and industrial | 30-89 Days Past due | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | |
Accruing restructured loans | Commercial | Commercial, Commercial and industrial | 90+ Days Past due | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | |
Nonaccrual restructured loans | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | 0 |
Nonaccrual restructured loans | Current | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | 0 |
Nonaccrual restructured loans | 30-89 Days Past due | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | 0 | 0 |
Nonaccrual restructured loans | 90+ Days Past due | ||
Financing Receivable Modifications [Line Items] | ||
Payment status (Amortized cost Basis) | $ 0 | $ 0 |
Loan Restructurings (Details Te
Loan Restructurings (Details Textual) | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Financing Receivable Modifications [Line Items] | |
Commitments to lend any additional funds on restructured loans | $ 0 |
Loans modified as default | $ 0 |
ASU 2022-02 | |
Financing Receivable Modifications [Line Items] | |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2023 |
Credit Quality Indicators (Deta
Credit Quality Indicators (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable Recorded Investment [Line Items] | ||
Maximum commercial loan and commercial real estate relationships | $ 1,000,000 | |
Unfunded commitments | 741,000,000 | |
Anticipated credit losses | 1,980,000 | |
Payments to Acquire Loans Receivable | 740,659,000 | |
PCD Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Business combination acquired loans with fair value | 25,900,000 | |
Credit discount | 999,000 | |
Noncredit discount | $ 5,500,000 | |
ASU 2016-13 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Change in accounting principle, accounting standards update, adopted [true false] | true | |
Residential real estate, 1-4 family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Other real estate owned properties | $ 34,000 | $ 0 |
Other real estate properties in foreclosure | $ 178,000 | $ 129,000 |
Credit Quality Indicators (De_2
Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | $ 1,899,050 | $ 1,568,399 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 1,811,681 | 1,511,935 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 42,380 | 27,761 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 44,989 | 28,703 |
Commercial real estate | Commercial real estate, Owner occupied | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 357,066 | 330,457 |
Commercial real estate | Commercial real estate, Owner occupied | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 347,171 | 324,979 |
Commercial real estate | Commercial real estate, Owner occupied | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 5,326 | 1,193 |
Commercial real estate | Commercial real estate, Owner occupied | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 4,569 | 4,285 |
Commercial real estate | Commercial real estate, Non-owner occupied | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 696,944 | 563,044 |
Commercial real estate | Commercial real estate, Non-owner occupied | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 646,559 | 527,267 |
Commercial real estate | Commercial real estate, Non-owner occupied | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 22,362 | 25,541 |
Commercial real estate | Commercial real estate, Non-owner occupied | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 28,023 | 10,236 |
Commercial real estate | Commercial farmland | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 191,945 | 188,582 |
Commercial real estate | Commercial farmland | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 189,238 | 186,057 |
Commercial real estate | Commercial farmland | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 0 | 0 |
Commercial real estate | Commercial farmland | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 2,707 | 2,525 |
Commercial real estate | Commercial real estate, Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 229,818 | 133,321 |
Commercial real estate | Commercial real estate, Other | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 222,049 | 133,218 |
Commercial real estate | Commercial real estate, Other | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 7,550 | 0 |
Commercial real estate | Commercial real estate, Other | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 219 | 103 |
Commercial | Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 363,951 | 294,406 |
Commercial | Commercial and industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 347,795 | 282,412 |
Commercial | Commercial and industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 7,142 | 777 |
Commercial | Commercial and industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 9,014 | 11,217 |
Commercial | Commercial, Agricultural | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 59,326 | 58,589 |
Commercial | Commercial, Agricultural | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 58,869 | 58,002 |
Commercial | Commercial, Agricultural | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | 0 | 250 |
Commercial | Commercial, Agricultural | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total risk category of loans by class of loans | $ 457 | $ 337 |
Credit Quality Indicators (De_3
Credit Quality Indicators (Details 1) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 3,155,200 | $ 2,404,750 |
Residential real estate | Residential real estate, 1-4 family residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 849,208 | 475,348 |
Residential real estate | Residential real estate, 1-4 family residential | Performing Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 846,249 | 472,335 |
Residential real estate | Residential real estate, 1-4 family residential | Nonperforming Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 2,959 | 3,013 |
Residential real estate | Residential real estate, Home equity lines of credit | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 138,567 | 132,209 |
Residential real estate | Residential real estate, Home equity lines of credit | Performing Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 137,939 | 131,416 |
Residential real estate | Residential real estate, Home equity lines of credit | Nonperforming Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 628 | 793 |
Consumer | Consumer, Indirect | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 234,209 | 204,623 |
Consumer | Consumer, Indirect | Performing Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 233,846 | 204,248 |
Consumer | Consumer, Indirect | Nonperforming Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 363 | 375 |
Consumer | Consumer, Direct | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 26,007 | 16,457 |
Consumer | Consumer, Direct | Performing Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 25,855 | 16,266 |
Consumer | Consumer, Direct | Nonperforming Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 152 | 191 |
Consumer | Consumer, Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 8,159 | 7,714 |
Consumer | Consumer, Other | Performing Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 8,156 | 7,712 |
Consumer | Consumer, Other | Nonperforming Financing Receivable | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 3 | $ 2 |
Credit Quality Indicators (De_4
Credit Quality Indicators (Details 2) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment [Line Items] | ||
Total | $ 3,155,200 | $ 2,404,750 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 54,049 | 188,240 |
2022 | 254,672 | 175,570 |
2021 | 231,293 | 123,000 |
2020 | 160,554 | 145,596 |
2019 | 161,626 | 90,660 |
Prior | 406,540 | 285,307 |
Revolving Loans | 15,094 | 18,449 |
Total | 1,283,828 | 1,026,822 |
Gross write-offs, 2023 | 0 | |
Gross write-offs, 2022 | 0 | |
Gross write-offs, 2021 | 0 | |
Gross write-offs, 2020 | 0 | |
Gross write-offs, 2019 | 1 | |
Gross write-offs, Prior | 156 | |
Gross write-offs, Revolving Loans | 0 | |
Gross write-offs | 157 | |
Commercial real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 54,049 | 188,240 |
2022 | 254,672 | 174,841 |
2021 | 225,147 | 120,883 |
2020 | 143,875 | 138,342 |
2019 | 151,048 | 89,769 |
Prior | 373,002 | 256,103 |
Revolving Loans | 13,986 | 17,286 |
Total | 1,215,779 | 985,464 |
Commercial real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 711 |
2021 | 4,496 | 1,861 |
2020 | 12,838 | 5,286 |
2019 | 8,515 | 624 |
Prior | 9,389 | 18,252 |
Revolving Loans | 0 | 0 |
Total | 35,238 | 26,734 |
Commercial real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 18 |
2021 | 1,650 | 256 |
2020 | 3,841 | 1,968 |
2019 | 2,063 | 267 |
Prior | 24,149 | 10,952 |
Revolving Loans | 1,108 | 1,163 |
Total | 32,811 | 14,624 |
Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 63,591 | |
2022 | 100,684 | |
2021 | 49,665 | |
2020 | 29,905 | |
2019 | 14,802 | |
Prior | 30,206 | |
Revolving Loans | 75,098 | |
Total | 363,951 | |
Gross write-offs, 2023 | 0 | |
Gross write-offs, 2022 | 95 | |
Gross write-offs, 2021 | 377 | |
Gross write-offs, 2020 | 11 | |
Gross write-offs, 2019 | 16 | |
Gross write-offs, Prior | 172 | |
Gross write-offs, Revolving Loans | 0 | |
Gross write-offs | 671 | |
Commercial and industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 63,363 | |
2022 | 97,102 | |
2021 | 48,716 | |
2020 | 29,047 | |
2019 | 13,470 | |
Prior | 29,190 | |
Revolving Loans | 66,907 | |
Total | 347,795 | |
Commercial and industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | |
2022 | 174 | |
2021 | 616 | |
2020 | 75 | |
2019 | 1,038 | |
Prior | 10 | |
Revolving Loans | 5,229 | |
Total | 7,142 | |
Commercial and industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 228 | |
2022 | 3,408 | |
2021 | 333 | |
2020 | 783 | |
2019 | 294 | |
Prior | 1,006 | |
Revolving Loans | 2,962 | |
Total | 9,014 | |
Commercial | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 104,010 | |
2022 | 47,400 | |
2021 | 34,466 | |
2020 | 17,006 | |
2019 | 13,684 | |
Prior | 16,425 | |
Revolving Loans | 61,415 | |
Total | 294,406 | |
Commercial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 100,368 | |
2022 | 45,872 | |
2021 | 34,110 | |
2020 | 16,854 | |
2019 | 13,574 | |
Prior | 14,664 | |
Revolving Loans | 56,970 | |
Total | 282,412 | |
Commercial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | |
2022 | 197 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 580 | |
Total | 777 | |
Commercial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 3,642 | |
2022 | 1,331 | |
2021 | 356 | |
2020 | 152 | |
2019 | 110 | |
Prior | 1,761 | |
Revolving Loans | 3,865 | |
Total | 11,217 | |
Agricultural Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 18,279 | 51,096 |
2022 | 53,234 | 36,755 |
2021 | 32,912 | 44,368 |
2020 | 41,285 | 23,733 |
2019 | 21,688 | 24,003 |
Prior | 66,440 | 47,636 |
Revolving Loans | 17,433 | 19,580 |
Total | 251,271 | 247,171 |
Gross write-offs, 2023 | 0 | |
Gross write-offs, 2022 | 15 | |
Gross write-offs, 2021 | 44 | |
Gross write-offs, 2020 | 0 | |
Gross write-offs, 2019 | 0 | |
Gross write-offs, Prior | 4 | |
Gross write-offs, Revolving Loans | 0 | |
Gross write-offs | 63 | |
Agricultural Portfolio Segment | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 18,279 | 51,096 |
2022 | 53,234 | 36,376 |
2021 | 32,543 | 44,133 |
2020 | 41,069 | 23,661 |
2019 | 21,627 | 24,003 |
Prior | 64,050 | 45,490 |
Revolving Loans | 17,305 | 19,300 |
Total | 248,107 | 244,059 |
Agricultural Portfolio Segment | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 250 |
Total | 0 | 250 |
Agricultural Portfolio Segment | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 379 |
2021 | 369 | 235 |
2020 | 216 | 72 |
2019 | 61 | 0 |
Prior | 2,390 | 2,146 |
Revolving Loans | 128 | 30 |
Total | 3,164 | 2,862 |
Residential real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 26,642 | 83,951 |
2022 | 177,325 | 112,599 |
2021 | 170,407 | 76,414 |
2020 | 141,990 | 31,643 |
2019 | 51,782 | 23,003 |
Prior | 277,363 | 143,782 |
Revolving Loans | 3,699 | 3,956 |
Total | 849,208 | 475,348 |
Gross write-offs, 2023 | 0 | |
Gross write-offs, 2022 | 0 | |
Gross write-offs, 2021 | 0 | |
Gross write-offs, 2020 | 0 | |
Gross write-offs, 2019 | 0 | |
Gross write-offs, Prior | 82 | |
Gross write-offs, Revolving Loans | 0 | |
Gross write-offs | 82 | |
Residential real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 26,642 | 83,951 |
2022 | 177,294 | 112,463 |
2021 | 169,952 | 76,095 |
2020 | 141,482 | 31,404 |
2019 | 51,291 | 22,918 |
Prior | 268,622 | 135,757 |
Revolving Loans | 3,699 | 3,956 |
Total | 838,982 | 466,544 |
Residential real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 70 |
2020 | 68 | 118 |
2019 | 113 | 76 |
Prior | 159 | 93 |
Revolving Loans | 0 | 0 |
Total | 340 | 357 |
Residential real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 31 | 136 |
2021 | 455 | 249 |
2020 | 440 | 121 |
2019 | 378 | 9 |
Prior | 8,582 | 7,932 |
Revolving Loans | 0 | 0 |
Total | 9,886 | 8,447 |
Home equity lines of credit | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 46 | 23 |
2021 | 60 | 137 |
2020 | 129 | 20 |
2019 | 87 | 16 |
Prior | 4,094 | 3,242 |
Revolving Loans | 134,151 | 128,771 |
Total | 138,567 | 132,209 |
Gross write-offs, 2023 | 0 | |
Gross write-offs, 2022 | 0 | |
Gross write-offs, 2021 | 0 | |
Gross write-offs, 2020 | 8 | |
Gross write-offs, 2019 | 0 | |
Gross write-offs, Prior | 4 | |
Gross write-offs, Revolving Loans | 0 | |
Gross write-offs | 12 | |
Home equity lines of credit | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 19 | 10 |
2021 | 10 | 0 |
2020 | 47 | 0 |
2019 | 67 | 16 |
Prior | 2,066 | 1,394 |
Revolving Loans | 134,014 | 128,622 |
Total | 136,223 | 130,042 |
Home equity lines of credit | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 38 | 49 |
Total | 38 | 49 |
Home equity lines of credit | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 0 |
2022 | 27 | 13 |
2021 | 50 | 137 |
2020 | 82 | 20 |
2019 | 20 | 0 |
Prior | 2,028 | 1,848 |
Revolving Loans | 99 | 100 |
Total | 2,306 | 2,118 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 44,887 | 98,632 |
2022 | 87,578 | 47,058 |
2021 | 40,896 | 32,551 |
2020 | 27,254 | 21,079 |
2019 | 16,638 | 11,027 |
Prior | 43,279 | 11,144 |
Revolving Loans | 7,843 | 7,303 |
Total | 268,375 | 228,794 |
Gross write-offs, 2023 | 0 | |
Gross write-offs, 2022 | 113 | |
Gross write-offs, 2021 | 46 | |
Gross write-offs, 2020 | 76 | |
Gross write-offs, 2019 | 30 | |
Gross write-offs, Prior | 157 | |
Gross write-offs, Revolving Loans | 33 | |
Gross write-offs | 455 | |
Consumer | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 44,887 | 98,530 |
2022 | 87,410 | 46,945 |
2021 | 40,831 | 32,284 |
2020 | 27,009 | 20,849 |
2019 | 16,462 | 10,918 |
Prior | 43,017 | 10,942 |
Revolving Loans | 7,843 | 7,302 |
Total | 267,459 | 227,770 |
Consumer | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total | 0 | |
Consumer | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2023 | 0 | 102 |
2022 | 168 | 113 |
2021 | 65 | 267 |
2020 | 245 | 230 |
2019 | 176 | 109 |
Prior | 262 | 202 |
Revolving Loans | 0 | 1 |
Total | $ 916 | $ 1,024 |
Credit Quality Indicators (De_5
Credit Quality Indicators (Details 3) | 6 Months Ended |
Jun. 30, 2023 | |
Home equity lines of credit | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Residential real estate | Residential real estate, 1-4 family residential | 1st Liens | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Residential real estate | Residential real estate, 1-4 family residential | 2nd Liens | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Consumer | Consumer Finance Cash Reserve Loan | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Consumer | Consumer, Direct | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Consumer | Consumer, Indirect | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | Cohort |
Loss Drivers | Credit Loss History |
Commercial | Commercial, Commercial and industrial | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial | Commercial, Agricultural | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial | Commercial, municipal | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial real estate | Commercial real estate, multifamily | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial real estate | Commercial real estate, Owner occupied | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial real estate | Commercial real estate, Non-owner occupied | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial real estate | Commercial real estate, Farmland | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Commercial real estate | Commercial real estate, construction | |
Financing Receivable Recorded Investment [Line Items] | |
Methodology | PD/LGD |
Loss Drivers | Credit Loss History |
Credit Quality Indicators (De_6
Credit Quality Indicators (Details 4) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Risks and Uncertainties [Abstract] | |
Par value of acquired loans at acquisition | $ 797,616 |
Net purchase discount | (55,958) |
Allowance for credit losses of PCD loans | (999) |
Purchase price of loans at acqisition | $ 740,659 |
Credit Quality Indicators (De_7
Credit Quality Indicators (Details 5) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Loans And Leases Receivable Disclosure [Line Items] | ||||||
ACL Balance | $ 34,957 | $ 36,011 | $ 26,978 | $ 27,454 | $ 27,015 | $ 29,386 |
PCD Loans | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Loan balances | 43,765 | |||||
ACL Balance | 1,446 | |||||
Commercial real estate | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
ACL Balance | 18,537 | 19,819 | 14,840 | 14,859 | 15,207 | 15,879 |
Commercial real estate | Commercial real estate, Owner occupied | PCD Loans | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Loan balances | 1,739 | |||||
ACL Balance | 33 | |||||
Commercial real estate | Commercial real estate, Non-owner occupied | PCD Loans | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Loan balances | 35,694 | |||||
ACL Balance | 1,222 | |||||
Commercial real estate | Commercial real estate, Farmland | PCD Loans | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Loan balances | 13 | |||||
ACL Balance | 0 | |||||
Commercial | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
ACL Balance | 5,295 | 5,230 | 4,186 | 3,893 | 3,867 | 4,949 |
Commercial | Commercial, Commercial and industrial | PCD Loans | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Loan balances | 2,655 | |||||
ACL Balance | 160 | |||||
Commercial | Commercial, Agricultural | PCD Loans | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Loan balances | 149 | |||||
ACL Balance | 10 | |||||
Residential real estate | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
ACL Balance | 6,866 | $ 6,732 | $ 4,374 | $ 4,915 | $ 4,702 | $ 4,870 |
Residential real estate | Residential real estate, 1-4 family residential | PCD Loans | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Loan balances | 3,512 | |||||
ACL Balance | 21 | |||||
Residential real estate | Residential real estate, Home equity lines of credit | PCD Loans | ||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||
Loan balances | 3 | |||||
ACL Balance | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
TOTAL NONINTEREST INCOME | $ 9,449 | $ 9,477 | $ 19,874 | $ 27,175 |
Service Charges on Deposit Accounts | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 1,501 | 1,139 | 2,933 | 2,284 |
Debit Card and EFT Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 1,810 | 1,528 | 3,599 | 2,944 |
Trust Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 2,248 | 2,376 | 4,835 | 4,895 |
Insurance Agency Commissions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 1,332 | 1,086 | 2,788 | 2,133 |
Retirement Plan Consulting Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 382 | 323 | 689 | 720 |
Investment Commissions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 476 | 557 | 869 | 1,251 |
Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
TOTAL NONINTEREST INCOME | 9,449 | 9,477 | 19,874 | 27,175 |
Operating Segments | Service Charges on Deposit Accounts | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 1,501 | 1,139 | 2,933 | 2,284 |
Operating Segments | Debit Card and EFT Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 1,810 | 1,528 | 3,599 | 2,944 |
Operating Segments | Trust Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 2,248 | 2,376 | 4,835 | 4,895 |
Operating Segments | Insurance Agency Commissions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 1,332 | 1,086 | 2,788 | 2,133 |
Operating Segments | Retirement Plan Consulting Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 382 | 323 | 689 | 720 |
Operating Segments | Investment Commissions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 476 | 557 | 869 | 1,251 |
Operating Segments | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Other (outside the scope of ASC 606) | 1,700 | 2,468 | 4,161 | 12,948 |
Operating Segments | Trust Segment | ||||
Disaggregation Of Revenue [Line Items] | ||||
TOTAL NONINTEREST INCOME | 2,630 | 2,699 | 5,524 | 13,990 |
Operating Segments | Trust Segment | Service Charges on Deposit Accounts | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 0 | 0 | 0 | 0 |
Operating Segments | Trust Segment | Debit Card and EFT Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 0 | 0 | 0 | 0 |
Operating Segments | Trust Segment | Trust Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 2,248 | 2,376 | 4,835 | 4,895 |
Operating Segments | Trust Segment | Insurance Agency Commissions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 0 | 0 | 0 | 0 |
Operating Segments | Trust Segment | Retirement Plan Consulting Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 382 | 323 | 689 | 720 |
Operating Segments | Trust Segment | Investment Commissions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 0 | 0 | 0 | 0 |
Operating Segments | Trust Segment | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Other (outside the scope of ASC 606) | 0 | 0 | 0 | 8,375 |
Operating Segments | Bank Segment | ||||
Disaggregation Of Revenue [Line Items] | ||||
TOTAL NONINTEREST INCOME | 6,819 | 6,778 | 14,350 | 13,185 |
Operating Segments | Bank Segment | Service Charges on Deposit Accounts | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 1,501 | 1,139 | 2,933 | 2,284 |
Operating Segments | Bank Segment | Debit Card and EFT Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 1,810 | 1,528 | 3,599 | 2,944 |
Operating Segments | Bank Segment | Trust Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 0 | 0 | 0 | 0 |
Operating Segments | Bank Segment | Insurance Agency Commissions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 1,332 | 1,086 | 2,788 | 2,133 |
Operating Segments | Bank Segment | Retirement Plan Consulting Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 0 | 0 | 0 | 0 |
Operating Segments | Bank Segment | Investment Commissions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Noninterest income | 476 | 557 | 869 | 1,251 |
Operating Segments | Bank Segment | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Other (outside the scope of ASC 606) | $ 1,700 | $ 2,468 | $ 4,161 | $ 4,573 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue From Contract With Customer [Line Items] | ||||
Legal settlement | $ 0 | $ 0 | $ 0 | $ 8,375,000 |
ASC 606 | ||||
Revenue From Contract With Customer [Line Items] | ||||
Contingent debit card interchange fees | 0 | 0 | ||
Contingent incentive fees | 0 | 0 | ||
Contingent commission | 0 | $ 0 | ||
Percentage of insurance agency commissions representing total revenue | 2.30% | |||
Percentage of retirement plan consulting fees representing total revenue | 0.50% | |||
Percentage of investment commissions representing total revenue | 0.70% | |||
ASC 606 | Cetera | ||||
Revenue From Contract With Customer [Line Items] | ||||
Contingent investment commissions to be refunded | $ 0 | $ 0 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Securities available for sale | $ 1,316,878 | $ 1,268,025 |
Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Total investment securities | 1,332,130 | 1,283,269 |
U.S. Treasury and U.S. government sponsored entities | ||
Financial Assets | ||
Securities available for sale | 135,165 | 128,096 |
U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 135,165 | 128,096 |
State and political subdivisions | ||
Financial Assets | ||
Securities available for sale | 543,062 | 530,080 |
State and political subdivisions | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 543,062 | 530,080 |
Corporate bonds | ||
Financial Assets | ||
Securities available for sale | 17,632 | 3,879 |
Corporate bonds | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 17,632 | 3,879 |
Mortgage-backed securities - residential | ||
Financial Assets | ||
Securities available for sale | 541,124 | 555,142 |
Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 541,124 | 555,142 |
Collateralized mortgage obligations | ||
Financial Assets | ||
Securities available for sale | 76,796 | 47,354 |
Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 76,796 | 47,354 |
Small Business Administration | ||
Financial Assets | ||
Securities available for sale | 3,099 | 3,474 |
Small Business Administration | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 3,099 | 3,474 |
Equity securities at fair value | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Equity securities | 218 | 196 |
Other investments measured at net asset value | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Equity securities | 15,034 | 15,048 |
Mortgage banking derivative - asset | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 14 | 31 |
Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | $ 5,494 | $ 5,503 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Financial Liabilities | ||
Derivative liabilities | $ 5,494 | $ 5,503 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Loans held for sale | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | $ 2,197 | $ 858 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Total investment securities | 218 | 196 |
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | State and political subdivisions | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate bonds | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Small Business Administration | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Equity securities at fair value | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Equity securities | 218 | 196 |
Fair Value, Inputs, Level 1 [Member] | Mortgage banking derivative - asset | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | 0 |
Financial Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Loans held for sale | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Total investment securities | 1,315,654 | 1,268,024 |
Fair Value, Inputs, Level 2 [Member] | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 135,165 | 128,096 |
Fair Value, Inputs, Level 2 [Member] | State and political subdivisions | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 543,062 | 530,080 |
Fair Value, Inputs, Level 2 [Member] | Corporate bonds | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 16,409 | 3,879 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 541,123 | 555,141 |
Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 76,796 | 47,354 |
Fair Value, Inputs, Level 2 [Member] | Small Business Administration | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 3,099 | 3,474 |
Fair Value, Inputs, Level 2 [Member] | Equity securities at fair value | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Equity securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Mortgage banking derivative - asset | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 14 | 31 |
Fair Value, Inputs, Level 2 [Member] | Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 5,494 | 5,503 |
Financial Liabilities | ||
Derivative liabilities | 5,494 | 5,503 |
Fair Value, Inputs, Level 2 [Member] | Loans held for sale | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 1,703 | 858 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Total investment securities | 1,224 | 1 |
Fair Value, Inputs, Level 3 [Member] | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | State and political subdivisions | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate bonds | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 1,223 | 0 |
Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 1 | 1 |
Fair Value, Inputs, Level 3 [Member] | Collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Small Business Administration | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Equity securities at fair value | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Equity securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Mortgage banking derivative - asset | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | 0 | 0 |
Financial Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Loans held for sale | Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Derivative Assets | $ 0 | $ 0 |
Fair Value (Details Textual)
Fair Value (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets liabilities transfers amount between level 1 and level 2 | $ 0 | $ 0 |
Collateral Dependent Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, unpaid principal balance with allowance recorded | 4,200 | 1,600 |
Collateral dependent loans, allowance | $ 878 | $ 372 |
Fair Value (Details 1)
Fair Value (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs | ||||
Beginning Balance | $ 1,616 | $ 2 | $ 1 | $ 3 |
Transfers between levels | 0 | 0 | 0 | 0 |
Acquired and/or purchased | 0 | 0 | 1,615 | 0 |
Repayments, calls and maturities | (392) | 0 | (392) | (1) |
Ending Balance | $ 1,224 | $ 2 | $ 1,224 | $ 2 |
Fair Value (Details 2)
Fair Value (Details 2) - Fair Value, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Commercial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | $ 395 | |
Commercial and industrial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | $ 395 | |
Residential Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 74 | |
Commercial real estate, Non-owner occupied | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 2,920 | 746 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial and industrial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate, Non-owner occupied | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | |
Significant Other Observable Inputs (Level 2) | Commercial and industrial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | |
Significant Other Observable Inputs (Level 2) | Residential Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | |
Significant Other Observable Inputs (Level 2) | Commercial real estate, Non-owner occupied | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 395 | |
Significant Unobservable Inputs (Level 3) | Commercial and industrial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 395 | |
Significant Unobservable Inputs (Level 3) | Residential Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | 74 | |
Significant Unobservable Inputs (Level 3) | Commercial real estate, Non-owner occupied | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recorded Investment | $ 2,920 | $ 746 |
Fair Value (Details 3)
Fair Value (Details 3) - Fair Value, Nonrecurring $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Residential Real Estate | ||
Fair value measurements for financial instruments | ||
Recorded Investment | $ 74 | |
Commercial | ||
Fair value measurements for financial instruments | ||
Recorded Investment | 395 | |
Sales Comparison Valuation | Commercial real estate | ||
Fair value measurements for financial instruments | ||
Recorded Investment | $ 2,920 | $ 746 |
Sales Comparison Valuation | Commercial real estate | Minimum | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | (0.6612) | |
Sales Comparison Valuation | Commercial real estate | Maximum | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | 0.4028 | |
Sales Comparison Valuation | Commercial real estate | Weighted Average | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | 0.1588 | 0.0745 |
Sales Comparison Valuation | Residential Real Estate | ||
Fair value measurements for financial instruments | ||
Recorded Investment | $ 74 | |
Sales Comparison Valuation | Residential Real Estate | Minimum | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | (0.1377) | |
Sales Comparison Valuation | Residential Real Estate | Maximum | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | (0.0568) | |
Sales Comparison Valuation | Residential Real Estate | Weighted Average | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | (0.1377) | |
Sales Comparison Valuation | Commercial | ||
Fair value measurements for financial instruments | ||
Recorded Investment | $ 395 | $ 395 |
Sales Comparison Valuation | Commercial | Weighted Average | Measurement Input, Comparability Adjustment | ||
Fair value measurements for financial instruments | ||
Adjustment for differences between earning multiplier and comparable sales, Percent | 0.5055 | 0.4300 |
Fair Value (Details 4)
Fair Value (Details 4) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financial assets | ||
Cash and cash equivalents, Carrying Amount | $ 116,063 | $ 75,551 |
Regulatory stock, Carrying Amount | 29,723 | 18,200 |
Loans held for sale, Carrying Amount | 2,197 | 858 |
Loans, net, Carrying Amount | 3,120,243 | 2,377,772 |
Financial liabilities | ||
Deposits, Carrying Amount | 4,270,748 | 3,561,768 |
Short-term borrowings | 300,000 | 95,000 |
Long-term borrowings | 88,437 | 88,211 |
Fair Value, Measurements, Recurring | ||
Financial assets | ||
Cash and cash equivalents, Fair Value | 116,063 | 75,551 |
Loans, net, Fair Value | 2,985,702 | 2,330,164 |
Financial liabilities | ||
Deposits, Fair Value | 4,268,767 | 3,560,480 |
Short-term borrowings, Fair Value | 300,000 | 95,000 |
Long-term borrowings, Fair Value | 68,480 | 73,566 |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial assets | ||
Cash and cash equivalents, Fair Value | 29,800 | 21,395 |
Loans, net, Fair Value | 0 | 0 |
Financial liabilities | ||
Deposits, Fair Value | 3,589,251 | 2,999,188 |
Short-term borrowings, Fair Value | 0 | 0 |
Long-term borrowings, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial assets | ||
Cash and cash equivalents, Fair Value | 86,263 | 54,156 |
Loans, net, Fair Value | 0 | 0 |
Financial liabilities | ||
Deposits, Fair Value | 679,516 | 561,292 |
Short-term borrowings, Fair Value | 300,000 | 95,000 |
Long-term borrowings, Fair Value | 68,480 | 73,566 |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial assets | ||
Cash and cash equivalents, Fair Value | 0 | 0 |
Loans, net, Fair Value | 2,985,702 | 2,330,164 |
Financial liabilities | ||
Deposits, Fair Value | 0 | 0 |
Short-term borrowings, Fair Value | 0 | 0 |
Long-term borrowings, Fair Value | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill associated with the Company's purchases and other past acquisitions | $ 167,907 | $ 167,907 | $ 94,640 | |||
Goodwill impairment | $ 0 | |||||
Aggregate amortization expense | $ 1,222 | $ 419 | $ 2,131 | $ 839 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Acquired intangible assets | ||
Gross Carrying Amount | $ 40,908 | $ 21,659 |
Accumulated Amortization | (16,764) | (14,633) |
Customer Relationships | ||
Acquired intangible assets | ||
Gross Carrying Amount | 7,210 | 7,210 |
Accumulated Amortization | (6,873) | (6,793) |
Non-compete contracts | ||
Acquired intangible assets | ||
Gross Carrying Amount | 457 | 457 |
Accumulated Amortization | (407) | (401) |
Trade Name | ||
Acquired intangible assets | ||
Gross Carrying Amount | 1,126 | 1,126 |
Accumulated Amortization | (425) | (409) |
Core Deposits | ||
Acquired intangible assets | ||
Gross Carrying Amount | 32,115 | 12,866 |
Accumulated Amortization | $ (9,059) | $ (7,030) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2023 (6 months) | $ 1,450 | |
2024 | 2,872 | |
2025 | 2,806 | |
2026 | 2,710 | |
2027 | 2,596 | |
Thereafter | 11,710 | |
Total | $ 24,144 | $ 7,026 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jan. 01, 2023 | Dec. 31, 2022 | |
Lessee Lease Description [Line Items] | ||||||
Financing leases options to extend [true false] | true | |||||
Financing leases options to terminate the lease | December of 2023 | |||||
Financing lease, description | The Company has leases for branch office locations, vehicles and certain office equipment such as printers, copiers and faxes. These leases are categorized as either operating or financing. A majority of the leases are categorized as financing leases while a non material portion are categorized as operating. The leases have remaining lease terms of up to 18.1 years, some of which include options to extend the lease for up to 15 years and some of which include options to terminate the lease in December of 2023. | |||||
Finance lease, right-of-use asset | $ 9,100 | $ 9,100 | $ 1,300 | $ 8,400 | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | Other Assets | Property, Plant and Equipment, Net | ||
Finance lease, liability | $ 9,523 | $ 9,523 | $ 1,300 | $ 8,800 | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | Other Liabilities | Other Liabilities | ||
Finance lease, payments | $ 541 | $ 217 | $ 922 | $ 454 | ||
Finance leases, interest expense | 69 | 37 | 139 | 76 | ||
Finance leases, amortization expense | $ 270 | $ 166 | $ 540 | $ 332 | ||
Weighted-average remaining lease term - finance leases | 11 years 10 months 24 days | 11 years 10 months 24 days | ||||
Weighted-average remaining lease term - operating leases | 7 years 9 months 18 days | 7 years 9 months 18 days | ||||
Weighted-average discount rate - finance leases | 3.11% | 3.11% | ||||
Weighted-average discount rate - operating leases | 2.41% | 2.41% | ||||
Maximum | ||||||
Lessee Lease Description [Line Items] | ||||||
Financing leases remaining lease terms | 18 years 1 month 6 days | 18 years 1 month 6 days | ||||
Financing leases options to extend | 15 years |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Maturities of Finance Lease Liabilities | |||
2023 (6 months) | $ 686 | ||
2024 | 1,176 | ||
2025 | 1,092 | ||
2026 | 975 | ||
2027 | 898 | ||
Thereafter | 6,575 | ||
Total Payments | 11,402 | ||
Less: Imputed Interest | (1,879) | ||
Total | $ 9,523 | $ 1,300 | $ 8,800 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Not Designated as Hedging Instrument | Interest Rate Lock Commitments | |||||
Derivative [Line Items] | |||||
Net Gain or Loss recognized in earnings | $ (52,000) | $ 34,000 | $ 57,000 | $ (252,000) | |
Derivative Assets | $ 5,900,000 | $ 5,900,000 | $ 4,900,000 | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Mortgage Banking Income Loss Net | Other Mortgage Banking Income Loss Net | Other Mortgage Banking Income Loss Net | Other Mortgage Banking Income Loss Net | |
Not Designated as Hedging Instrument | Forward Sales of Mortgage Backed Securities | |||||
Derivative [Line Items] | |||||
Net Gain or Loss recognized in earnings | $ 71,000 | $ (5,000) | $ (16,000) | $ (5,000) | |
Derivative Assets | 7,000,000 | 7,000,000 | 4,300,000 | ||
Not Designated as Hedging Instrument | Forward Commitments for Future Residential Mortgage Loans | |||||
Derivative [Line Items] | |||||
Derivative Assets | 139,000 | 139,000 | 0 | ||
Interest rate swaps | |||||
Derivative [Line Items] | |||||
Derivative notional amount | 68,500,000 | 68,500,000 | 71,900,000 | ||
Fair value, other assets | 5,500,000 | 5,500,000 | 5,500,000 | ||
Fair value, other liabilities | 5,500,000 | 5,500,000 | $ 5,500,000 | ||
Net Gain or Loss recognized in earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic EPS | ||||||
Net income | $ 14,966 | $ 7,075 | $ 15,951 | $ 15,844 | $ 22,041 | $ 31,795 |
Weighted average shares outstanding | 37,233,732 | 33,850,449 | 37,527,050 | 33,835,550 | ||
Basic earnings per share | $ 0.4 | $ 0.47 | $ 0.59 | $ 0.94 | ||
Diluted EPS | ||||||
Net income | $ 14,966 | $ 7,075 | $ 15,951 | $ 15,844 | $ 22,041 | $ 31,795 |
Weighted average shares outstanding | 37,233,732 | 33,850,449 | 37,527,050 | 33,835,550 | ||
Dilutive effect of restricted stock awards | 86,721 | 72,395 | 96,822 | 91,796 | ||
Weighted average shares for diluted earnings per share | 37,320,453 | 33,922,844 | 37,623,872 | 33,927,346 | ||
Diluted earnings per share | $ 0.4 | $ 0.47 | $ 0.59 | $ 0.94 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restricted Stock Awards | ||||
Earnings Per Share Basic [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 174,309 | 188,626 | 170,809 | 158,492 |
Stock Based Compensation (Detai
Stock Based Compensation (Details Textual) - 2022 Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares vested | 58,375 | ||||
Number of shares vested, weighted average fair value | $ 13.69 | ||||
Restricted Stock Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Maximum shares available under equity incentive plan | 1,000,000 | ||||
Number of shares available for grant | 786,655 | 786,655 | |||
Stock based compensation expense | $ 649 | $ 438 | $ 1,300 | $ 803 | |
Unrecognized compensation expense | $ 4,000 | $ 4,000 | |||
Compensation cost not yet recognized, period for recognition | 2 years 8 months 12 days | ||||
Time Based Restricted Stock Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share awards granted under equity incentive plan | 54,095 | 54,095 | 101,768 | ||
Number of shares vested | 27,740 | 20,771 | |||
Number of shares vested, weighted average fair value | $ 12.96 | $ 16.81 | |||
Performance Based Restricted Stock Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share awards granted under equity incentive plan | 102,750 | 56,724 | |||
Number of shares vested | 30,635 | 65,481 | |||
Number of shares vested, weighted average fair value | $ 14.35 | $ 17.48 |
Stock Based Compensation (Det_2
Stock Based Compensation (Details) - 2022 Incentive Plan - $ / shares | 1 Months Ended | 6 Months Ended | |
Apr. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vested, Maximum Awarded Units | (58,375) | ||
Vested, Weighted Average Grant Date Fair Value | $ 13.69 | ||
Time Based Restricted Stock Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance - non-vested shares, Maximum Awarded Unit | 193,015 | 99,564 | |
Granted, Maximum Awarded Units | 54,095 | 54,095 | 101,768 |
Vested, Maximum Awarded Units | (27,740) | (20,771) | |
Forfeited, Maximum Awarded Units | (1,541) | 0 | |
Ending balance - non-vested shares, Maximum Awarded Unit | 217,829 | 180,561 | |
Beginning balance - non-vested shares, Weighted Average Grant Date Fair Value | $ 16.69 | $ 16.13 | |
Granted, Weighted Average Grant Date Fair Value | 13.12 | 17.05 | |
Vested, Weighted Average Grant Date Fair Value | 12.96 | 16.81 | |
Forfeited, Weighted Average Grant Date Fair Value | 17.64 | 0 | |
Ending balance - non-vested shares, Weighted Average Grant Date Fair Value | $ 15.84 | $ 16.92 | |
Performance Based Restricted Stock Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance - non-vested shares, Maximum Awarded Unit | 137,369 | 158,988 | |
Granted, Maximum Awarded Units | 102,750 | 56,724 | |
Vested, Maximum Awarded Units | (30,635) | (65,481) | |
Forfeited, Maximum Awarded Units | 0 | (12,862) | |
Ending balance - non-vested shares, Maximum Awarded Unit | 209,484 | 137,369 | |
Beginning balance - non-vested shares, Weighted Average Grant Date Fair Value | $ 15.85 | $ 14.4 | |
Granted, Weighted Average Grant Date Fair Value | 14.16 | 17.25 | |
Vested, Weighted Average Grant Date Fair Value | 14.35 | 17.48 | |
Forfeited, Weighted Average Grant Date Fair Value | 0 | 14.74 | |
Ending balance - non-vested shares, Weighted Average Grant Date Fair Value | $ 15.01 | $ 15.85 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||
Unrealized holding gains (losses) on available-for-sale securities during the period, pre-tax | $ (21,309) | $ (105,497) | $ 21,591 | $ (217,894) | |||
Reclassification adjustment for gains (losses) included in net income, pre-tax | [1] | 0 | 31 | (120) | 31 | ||
Net unrealized holding (losses) gains | (21,309) | (105,466) | 21,471 | (217,863) | |||
Change in funded status of post-retirement health plan, pre-tax | (2) | (3) | |||||
Net other comprehensive income (loss), pre-tax | (21,309) | (105,468) | 21,471 | (217,866) | |||
Unrealized holding gains (losses) on available-for-sale securities during the period, tax | 4,475 | 22,154 | (4,534) | 45,758 | |||
Reclassification adjustment for gains (losses) included in net income, tax | [1] | 0 | (6) | 25 | (7) | ||
Net unrealized gains on available-for-sale securities, tax | 4,475 | 22,148 | (4,509) | 45,751 | |||
Change in funded status of post-retirement health plan, tax | 0 | 0 | |||||
Net other comprehensive income (loss), tax | 4,475 | 22,148 | (4,509) | 45,751 | |||
Unrealized holding gains (losses) on available-for-sale securities during the period, after-tax | (16,834) | (83,343) | 17,057 | (172,136) | |||
Reclassification adjustment for gains (losses) included in net income, after-tax | [1] | 0 | 25 | (95) | 24 | ||
Unrealized holding (losses) gains, net of reclassification and tax | (16,834) | (83,318) | 16,962 | (172,112) | |||
Change in funded status of post-retirement plan, net of tax | 0 | (2) | 0 | (3) | |||
Other comprehensive (loss) income, net of tax | $ (16,834) | $ 33,796 | $ (83,320) | $ (88,795) | $ 16,962 | $ (172,115) | |
[1] Pre-tax reclassification adjustments relating to available-for-sale securities are reported in security gains and the tax impact is included in income tax expense on the consolidated statements of income. |
Regulatory Capital Matters (Det
Regulatory Capital Matters (Details Textual) | Jun. 30, 2023 | Dec. 31, 2022 |
Regulatory Matters (Additional Textual) [Abstract] | ||
Common equity tier 1 capital to risk-weighted assets, capital conservation buffer ratio | 2.50% | |
Tier 1 capital to risk-weighted assets, capital conservation buffer ratio | 2.50% | |
Total capital to risk-weighted assets, capital conservation buffer ratio | 2.50% | |
Minimum ratio of common equity tier 1 capital to risk-weighted assets | 4.50% | 4.50% |
Minimum ratio of tier 1 capital to risk-weighted assets | 0.060 | 0.060 |
Minimum ratio of total capital to risk-weighted assets | 0.080 | 0.080 |
Minimum leverage ratio | 0.040 | 0.040 |
Farmers National Banc Corp | ||
Regulatory Matters (Additional Textual) [Abstract] | ||
Minimum ratio of common equity tier 1 capital to risk-weighted assets | 4.50% | 4.50% |
Minimum ratio of tier 1 capital to risk-weighted assets | 0.060 | 0.060 |
Minimum ratio of total capital to risk-weighted assets | 0.080 | 0.080 |
Minimum leverage ratio | 0.040 | 0.040 |
Regulatory Capital Matters (D_2
Regulatory Capital Matters (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Common equity tier 1 capital ratio | ||
Actual, Amount | $ 374,278 | $ 403,307 |
Actual, Ratio | 10.25% | 13.71% |
Requirement for Capital Adequacy Purposes, Amount | $ 164,288 | $ 132,349 |
Requirement for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Total risk based capital ratio | ||
Actual, Amount | $ 502,235 | $ 523,285 |
Actual, Ratio | 0.1376 | 0.1779 |
Requirement for Capital Adequacy Purposes, Amount | $ 292,068 | $ 235,288 |
Requirement for Capital Adequacy Purposes, Ratio | 0.080 | 0.080 |
Tier 1 risk based capital ratio | ||
Actual, Amount | $ 392,278 | $ 421,307 |
Actual, Ratio | 0.1074 | 0.1432 |
Requirement for Capital Adequacy Purposes, Amount | $ 219,051 | $ 176,466 |
Requirement for Capital Adequacy Purposes, Ratio | 0.060 | 0.060 |
Tier 1 leverage ratio | ||
Actual, Amount | $ 392,278 | $ 421,307 |
Actual, Ratio | 0.0768 | 0.0984 |
Requirement for Capital Adequacy Purposes, Amount | $ 204,281 | $ 171,233 |
Requirement for Capital Adequacy Purposes, Ratio | 0.040 | 0.040 |
Farmers National Banc Corp | ||
Common equity tier 1 capital ratio | ||
Actual, Amount | $ 391,584 | $ 372,679 |
Actual, Ratio | 10.75% | 12.71% |
Requirement for Capital Adequacy Purposes, Amount | $ 163,977 | $ 131,968 |
Requirement for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 236,855 | $ 190,620 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Total risk based capital ratio | ||
Actual, Amount | $ 426,541 | $ 399,657 |
Actual, Ratio | 0.1171 | 0.1362 |
Requirement for Capital Adequacy Purposes, Amount | $ 291,514 | $ 234,609 |
Requirement for Capital Adequacy Purposes, Ratio | 0.080 | 0.080 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 364,393 | $ 293,262 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.10 | 0.100 |
Tier 1 risk based capital ratio | ||
Actual, Amount | $ 391,584 | $ 372,679 |
Actual, Ratio | 0.1075 | 0.1271 |
Requirement for Capital Adequacy Purposes, Amount | $ 218,636 | $ 175,957 |
Requirement for Capital Adequacy Purposes, Ratio | 0.060 | 0.060 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 291,514 | $ 234,609 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.08 | 0.080 |
Tier 1 leverage ratio | ||
Actual, Amount | $ 391,584 | $ 372,679 |
Actual, Ratio | 0.077 | 0.0876 |
Requirement for Capital Adequacy Purposes, Amount | $ 203,408 | $ 170,245 |
Requirement for Capital Adequacy Purposes, Ratio | 0.040 | 0.040 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 254,261 | $ 212,807 |
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.05 | 0.05 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||||
Goodwill and other intangibles | $ 192,051 | $ 192,051 | $ 101,666 | ||||
Total assets | 5,073,454 | 5,073,454 | 4,082,200 | ||||
Net interest income | 34,578 | $ 31,711 | 71,188 | $ 62,953 | |||
Provision for credit losses and unfunded loans | 25 | 616 | 8,624 | 258 | |||
Service fees, security gains and other noninterest income | 9,449 | 9,477 | 19,874 | 27,175 | |||
Noninterest expense | 24,185 | 20,282 | 53,008 | 49,576 | |||
Amortization and depreciation expense | 2,201 | 1,179 | 4,100 | 2,341 | |||
INCOME BEFORE INCOME TAXES | 17,616 | 19,111 | 25,330 | 37,953 | |||
Income taxes | 2,650 | 3,160 | 3,289 | 6,158 | |||
NET INCOME | 14,966 | $ 7,075 | 15,951 | $ 15,844 | 22,041 | 31,795 | |
Eliminations And Others | |||||||
Segment Reporting Information [Line Items] | |||||||
Goodwill and other intangibles | (4,263) | (4,263) | (4,263) | ||||
Total assets | 5,297 | 5,297 | 3,705 | ||||
Net interest income | (955) | (813) | (1,910) | (1,598) | |||
Provision for credit losses and unfunded loans | 0 | 0 | 0 | 0 | |||
Service fees, security gains and other noninterest income | (386) | 32 | (617) | (209) | |||
Noninterest expense | 475 | 494 | 1,120 | 577 | |||
Amortization and depreciation expense | 112 | 113 | 226 | 227 | |||
INCOME BEFORE INCOME TAXES | (1,928) | (1,388) | (3,873) | (2,611) | |||
Income taxes | (430) | (364) | (909) | (662) | |||
NET INCOME | (1,498) | (1,024) | (2,964) | (1,949) | |||
Trust Segment | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Goodwill and other intangibles | 5,709 | 5,709 | 5,739 | ||||
Total assets | 17,610 | 17,610 | 14,383 | ||||
Net interest income | 57 | 38 | 114 | 72 | |||
Provision for credit losses and unfunded loans | 0 | 0 | 0 | 0 | |||
Service fees, security gains and other noninterest income | 2,668 | 4,839 | 5,568 | 14,037 | |||
Noninterest expense | 1,654 | 3,614 | 3,297 | 5,383 | |||
Amortization and depreciation expense | 23 | 28 | 46 | 56 | |||
INCOME BEFORE INCOME TAXES | 1,048 | 1,235 | 2,339 | 8,670 | |||
Income taxes | 221 | 258 | 492 | 1,820 | |||
NET INCOME | 827 | 977 | 1,847 | 6,850 | |||
Bank Segment | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Goodwill and other intangibles | 190,605 | 190,605 | 100,190 | ||||
Total assets | 5,050,547 | 5,050,547 | $ 4,064,112 | ||||
Net interest income | 35,476 | 32,486 | 72,984 | 64,479 | |||
Provision for credit losses and unfunded loans | 25 | 616 | 8,624 | 258 | |||
Service fees, security gains and other noninterest income | 7,167 | 4,606 | 14,923 | 13,347 | |||
Noninterest expense | 22,056 | 16,174 | 48,591 | 43,616 | |||
Amortization and depreciation expense | 2,066 | 1,038 | 3,828 | 2,058 | |||
INCOME BEFORE INCOME TAXES | 18,496 | 19,264 | 26,864 | 31,894 | |||
Income taxes | 2,859 | 3,266 | 3,706 | 5,000 | |||
NET INCOME | $ 15,637 | $ 15,998 | $ 23,158 | $ 26,894 |
Short-term borrowings (Details
Short-term borrowings (Details Textual) | 6 Months Ended | |
Jun. 30, 2023 USD ($) Bank | Dec. 31, 2022 USD ($) | |
Domestic Line of Credit | ||
Short Term Debt [Line Items] | ||
Access to lines of credit at domestic banks | $ 35,000,000 | |
Number of domestic banks | Bank | 2 | |
Unsecured revolving line of credit, outstanding balance | $ 0 | $ 0 |
Revolving Credit Facility | ||
Short Term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
Revolving Credit Facility | Farmers National Banc Corp | Unsecured Debt | ||
Short Term Debt [Line Items] | ||
Unsecured revolving line of credit, outstanding balance | $ 6,500,000 | |
Letter of Credit | ||
Short Term Debt [Line Items] | ||
Unsecured revolving line of credit, outstanding balance | $ 0 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |
Pledged | ||
Short Term Debt [Line Items] | ||
Short-term Federal Home Loan Banks advances | $ 300,000,000 | $ 95,000,000 |
Interest rate on borrowings | 5.17% | 4.38% |
Long-term borrowings (Details T
Long-term borrowings (Details Textual) - USD ($) | 1 Months Ended | |||||
Nov. 01, 2021 | Jan. 07, 2020 | Dec. 31, 2015 | Nov. 30, 2021 | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Long-rem advances from FHLB | $ 0 | $ 0 | ||||
Residential mortgage, commercial real estate, and multi-family loans | 1,700,000,000 | $ 1,200,000,000 | ||||
Additional borrowing limit | $ 707,800,000 | |||||
Subordinated Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 75,000,000 | |||||
Maturity date | Dec. 15, 2031 | |||||
Fixed rate | 3.125% | |||||
Notes maturity term | 5 years | |||||
Basis spread on variable rate | 220% | |||||
Net proceeds from sale | $ 73,800,000 | |||||
Junior Subordinated Debt Securities | Cortland Bank | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Sep. 15, 2037 | |||||
Business acquisition, date of merger agreement | Nov. 01, 2021 | |||||
Acquisition-date fair value | $ 4,300,000 | |||||
Interest rate, effective percentage | 7% | 6.22% | ||||
Junior Subordinated Debt Securities | Cortland Bank | 3-month LIBOR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.45% | |||||
Junior Subordinated Debt Securities | Maple Leaf | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Dec. 15, 2036 | |||||
Business acquisition, date of merger agreement | Jan. 07, 2020 | |||||
Interest rate, effective percentage | 7.35% | 6.57% | ||||
Junior Subordinated Debt Securities | Maple Leaf | 3-month LIBOR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.80% | |||||
Junior Subordinated Debt Securities | National Bancshares Corporation | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Jun. 15, 2035 | |||||
Interest rate, effective percentage | 7.25% | 6.47% | ||||
Junior Subordinated Debt Securities | National Bancshares Corporation | 3-month LIBOR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.70% |
Long-term borrowings (Details 1
Long-term borrowings (Details 1) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total junior subordinated debentures owed to unconsolidated subsidiary trusts | $ 14,480 | $ 14,316 |
Subordinated Debentures | 73,957 | 73,895 |
Total long-term borrowings | 88,437 | 88,211 |
TSEO Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Total junior subordinated debentures owed to unconsolidated subsidiary trusts | 2,497 | 2,472 |
Maple Leaf Financial Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Total junior subordinated debentures owed to unconsolidated subsidiary trusts | 7,629 | 7,517 |
Cortland Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Total junior subordinated debentures owed to unconsolidated subsidiary trusts | $ 4,354 | $ 4,327 |