Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 14, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-13232 | |
Document Period End Date | Sep. 30, 2022 | |
Entity Registrant Name | JUNIATA VALLEY FINANCIAL CORP | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-2235254 | |
Entity Address, Address Line One | Bridge and Main Streets | |
Entity Address, City or Town | Mifflintown | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17059 | |
City Area Code | 855 | |
Local Phone Number | 582-5101 | |
Title of 12(b) Security | NONE | |
No Trading Symbol Flag | true | |
Security Exchange Name | NONE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0000714712 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Common Stock, Shares Outstanding | 5,003,059 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 13,325 | $ 12,928 |
Interest bearing deposits with banks | 102 | 598 |
Cash and cash equivalents | 13,427 | 13,526 |
Interest bearing time deposits with banks | 0 | 735 |
Equity securities | 1,014 | 1,124 |
Debt securities available for sale | 287,251 | 335,424 |
Restricted investment in bank stock | 3,104 | 2,116 |
Total loans | 462,430 | 418,303 |
Less: Allowance for loan losses | (3,905) | (3,508) |
Total loans, net of allowance for loan losses | 458,525 | 414,795 |
Premises and equipment, net | 8,254 | 8,371 |
Other real estate owned | 30 | 87 |
Bank owned life insurance and annuities | 15,139 | 16,852 |
Investment in low income housing partnerships | 1,706 | 2,306 |
Core deposit and other intangible assets | 134 | 175 |
Goodwill | 9,047 | 9,047 |
Mortgage servicing rights | 96 | 120 |
Deferred tax asset | 12,279 | 1,585 |
Accrued interest receivable and other assets | 5,243 | 4,255 |
Total assets | 815,249 | 810,518 |
Liabilities: | ||
Deposits: Non-interest bearing | 202,493 | 182,022 |
Deposits: Interest bearing | 515,341 | 526,425 |
Total deposits | 717,834 | 708,447 |
Short-term borrowings and repurchase agreements | 35,869 | 4,227 |
Long-term debt | 20,000 | 20,000 |
Other interest bearing liabilities | 995 | 1,568 |
Accrued interest payable and other liabilities | 5,646 | 4,986 |
Total liabilities | 780,344 | 739,228 |
Commitments and contingent liabilities | ||
Stockholders' Equity: | ||
Preferred stock, no par value: Authorized - 500,000 shares, none issued | 0 | 0 |
Common stock, par value $1.00 per share: Authorized 20,000,000 shares; Issued - 5,151,279 shares at September 30, 2022 and December 31, 2021; Outstanding - 5,003,059 shares at September 30, 2022 and 4,988,542 shares at December 31, 2021 | 5,151 | 5,151 |
Surplus | 24,956 | 25,008 |
Retained earnings | 50,216 | 47,298 |
Accumulated other comprehensive loss | (42,880) | (3,365) |
Cost of common stock in Treasury: 148,220 shares at September 30, 2022; 162,737 shares at December 31, 2021 | (2,538) | (2,802) |
Total stockholders' equity | 34,905 | 71,290 |
Total liabilities and stockholders' equity | $ 815,249 | $ 810,518 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Consolidated Statements of Financial Condition [Abstract] | ||
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, authorized | 500,000 | 500,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares Issued | 5,151,279 | 5,151,279 |
Common Stock, Shares, Outstanding | 5,003,059 | 4,988,542 |
Treasury Stock, Shares | 148,220 | 162,737 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest and dividend income: | ||||
Loans, including fees | $ 5,286,000 | $ 4,800,000 | $ 15,446,000 | $ 14,371,000 |
Taxable securities | 1,493,000 | 1,350,000 | 4,479,000 | 3,543,000 |
Tax-exempt securities | 37,000 | 36,000 | 117,000 | 112,000 |
Other interest income | 55,000 | 8,000 | 80,000 | 19,000 |
Total interest income | 6,871,000 | 6,194,000 | 20,122,000 | 18,045,000 |
Interest expense: | ||||
Deposits | 680,000 | 555,000 | 1,692,000 | 1,771,000 |
Short-term borrowings and repurchase agreements | 70,000 | 17,000 | 105,000 | 70,000 |
FRB advances | 0 | 18,000 | ||
Long-term debt | 118,000 | 216,000 | 352,000 | 641,000 |
Other interest bearing liabilities | 4,000 | 2,000 | 6,000 | 5,000 |
Total interest expense | 872,000 | 790,000 | 2,155,000 | 2,505,000 |
Net interest income | 5,999,000 | 5,404,000 | 17,967,000 | 15,540,000 |
Provision for loan losses | 100,000 | (257,000) | 350,000 | (536,000) |
Net interest income after provision for loan losses | 5,899,000 | 5,661,000 | 17,617,000 | 16,076,000 |
Non-interest income: | ||||
Earnings on bank-owned life insurance and annuities | 53,000 | 64,000 | 164,000 | 186,000 |
Gain (loss) on sales and calls of securities | (378,000) | (1,452,000) | 58,000 | |
Change in value of equity securities | (30,000) | 38,000 | (110,000) | 139,000 |
Gain from life insurance proceeds | 329,000 | 380,000 | 0 | |
Other non-interest income | 75,000 | 91,000 | 1,450,000 | 249,000 |
Total non-interest income | 1,310,000 | 1,306,000 | 3,968,000 | 3,880,000 |
Non-interest expense: | ||||
Employee compensation expense | 2,112,000 | 2,145,000 | 6,347,000 | 6,176,000 |
Employee benefits | 544,000 | 563,000 | 1,858,000 | 1,722,000 |
Occupancy | 298,000 | 293,000 | 948,000 | 935,000 |
Equipment | 187,000 | 184,000 | 546,000 | 565,000 |
Data processing expense | 665,000 | 709,000 | 1,894,000 | 1,965,000 |
Professional fees | 223,000 | 226,000 | 587,000 | 609,000 |
Taxes, other than income | 106,000 | 71,000 | 370,000 | 314,000 |
FDIC Insurance premiums | 143,000 | 80,000 | 307,000 | 231,000 |
Gain on other real estate owned | (7,000) | (49,000) | ||
Amortization of intangible assets | 14,000 | 16,000 | 41,000 | 49,000 |
Amortization of investment in low income housing partnerships | 200,000 | 200,000 | 600,000 | 600,000 |
Other non-interest expense | 495,000 | 441,000 | 1,388,000 | 1,266,000 |
Total non-interest expense | 4,987,000 | 4,928,000 | 14,879,000 | 14,383,000 |
Income before income taxes | 2,222,000 | 2,039,000 | 6,706,000 | 5,573,000 |
Income tax provision | 102,000 | 142,000 | 488,000 | 302,000 |
Net income | $ 2,120,000 | $ 1,897,000 | $ 6,218,000 | $ 5,271,000 |
Earnings per share | ||||
Basic | $ 0.42 | $ 0.38 | $ 1.24 | $ 1.05 |
Diluted | $ 0.42 | $ 0.38 | $ 1.24 | $ 1.05 |
Customer Service Fees [Member] | ||||
Non-interest income: | ||||
Non-interest income | $ 394,000 | $ 348,000 | $ 1,113,000 | $ 993,000 |
Debit Card fee Income [Member] | ||||
Non-interest income: | ||||
Non-interest income | 422,000 | 423,000 | 1,267,000 | 1,287,000 |
Trust Fees [Member] | ||||
Non-interest income: | ||||
Non-interest income | 128,000 | 111,000 | 378,000 | 338,000 |
Commissions from Sales of Non-Deposit Products [Member] | ||||
Non-interest income: | ||||
Non-interest income | 86,000 | 86,000 | 302,000 | 271,000 |
Fees Derived From Loan Activity [Member] | ||||
Non-interest income: | ||||
Non-interest income | 220,000 | 137,000 | 452,000 | 333,000 |
Mortgage Banking Income [Member] | ||||
Non-interest income: | ||||
Non-interest income | $ 11,000 | $ 8,000 | $ 24,000 | $ 26,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net income: Pre-Tax Amount | $ 2,222 | $ 2,039 | $ 6,706 | $ 5,573 | ||
Net Income: Tax Effect | (102) | (142) | (488) | (302) | ||
Net income | 2,120 | 1,897 | 6,218 | 5,271 | ||
Other comprehensive income (loss): | ||||||
Unrealized holding losses arising during the period, Pre-Tax Amount | (16,284) | (1,929) | (51,349) | (6,728) | ||
Unrealized holding losses arising during the period, Tax Effect | 3,419 | 404 | 10,783 | 1,412 | ||
Unrealized holding losses arising during the period, Net-of-Tax Amount | (12,865) | (1,525) | (40,566) | (5,316) | ||
Reclassification adjustment for (gains) losses included in net income, Pre-Tax Amount | 378 | [1],[2] | 0 | [1],[2] | 1,452 | (58) |
Reclassification adjustment for (gains) losses included in net income, Tax Effect | (79) | [1],[2] | 0 | [1],[2] | (305) | 12 |
Reclassification adjustment for (gains) losses included in net income, Net-of-Tax Amount | 299 | [1],[2] | 0 | [1],[2] | 1,147 | (46) |
Unrealized gains on cash flow hedge, Pre-Tax Amount | 81 | 38 | 1,195 | 449 | ||
Unrealized gains on cash flow hedge, Tax Effect | (17) | (8) | (251) | (94) | ||
Unrealized gains on cash flow hedge, Net-of-Tax Amount | 64 | 30 | 944 | 355 | ||
Reclassification adjustment for (gains) losses included in net income, Pre-Tax Amount | (86) | [1],[2] | 17 | [1],[2] | (1,317) | 43 |
Reclassification adjustment for (gains) losses included in net income, Tax Effect | 18 | [1],[2] | (3) | [1],[2] | 277 | (9) |
Reclassification adjustment for (gains) losses included in net income, Net-of-Tax | (68) | [1],[2] | 14 | [1],[2] | (1,040) | 34 |
Other comprehensive loss, Pre-Tax Amount | (15,911) | (1,874) | (50,019) | (6,294) | ||
Other comprehensive loss, Tax Effect | 3,341 | 393 | 10,504 | 1,321 | ||
Net current period other comprehensive loss | (12,570) | (1,481) | (39,515) | (4,973) | ||
Total comprehensive income (loss), Pre-Tax Amount | (13,689) | 165 | (43,313) | (721) | ||
Total comprehensive income (loss), Tax Effect | 3,239 | 251 | 10,016 | 1,019 | ||
Total comprehensive income (loss), Net-of-Tax Amount | $ (10,450) | $ 416 | $ (33,297) | $ 298 | ||
[1] Amounts are included in gain (loss) on sales and calls of securities on the Consolidated Statements of Income as a separate element within total non-interest income. Income tax amounts are included in the provision for income taxes on the Consolidated Statements of Income. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Total |
Beginning balance at Dec. 31, 2020 | $ 5,151 | $ 25,011 | $ 45,096 | $ 3,518 | $ (2,179) | $ 76,597 |
Beginning balance, shares at Dec. 31, 2020 | 5,025,441 | |||||
Net income | 5,271 | 5,271 | ||||
Other comprehensive income (loss) | (4,973) | (4,973) | ||||
Cash dividends | (3,304) | (3,304) | ||||
Stock-based compensation | 110 | 110 | ||||
Purchase of treasury stock | (675) | (675) | ||||
Purchase of treasury stock, shares | (39,198) | |||||
Treasury stock issued for stock plans | (161) | 238 | 77 | |||
Treasury stock issued for stock plans, shares | 13,783 | |||||
Ending balance at Sep. 30, 2021 | $ 5,151 | 24,960 | 47,063 | (1,455) | (2,616) | 73,103 |
Ending balance, shares at Sep. 30, 2021 | 5,000,026 | |||||
Beginning balance at Jun. 30, 2021 | $ 5,151 | 24,922 | 46,266 | 26 | (2,616) | 73,749 |
Beginning balance, shares at Jun. 30, 2021 | 5,000,026 | |||||
Net income | 1,897 | 1,897 | ||||
Other comprehensive income (loss) | (1,481) | (1,481) | ||||
Cash dividends | (1,100) | (1,100) | ||||
Stock-based compensation | 38 | 38 | ||||
Ending balance at Sep. 30, 2021 | $ 5,151 | 24,960 | 47,063 | (1,455) | (2,616) | 73,103 |
Ending balance, shares at Sep. 30, 2021 | 5,000,026 | |||||
Beginning balance at Dec. 31, 2021 | $ 5,151 | 25,008 | 47,298 | (3,365) | (2,802) | $ 71,290 |
Beginning balance, shares at Dec. 31, 2021 | 4,988,542 | 4,988,542 | ||||
Net income | 6,218 | $ 6,218 | ||||
Other comprehensive income (loss) | (39,515) | (39,515) | ||||
Cash dividends | (3,300) | (3,300) | ||||
Stock-based compensation | 146 | 146 | ||||
Purchase of treasury stock | (3) | (3) | ||||
Purchase of treasury stock, shares | (995) | |||||
Treasury stock issued for stock plans | (198) | 267 | 69 | |||
Treasury stock issued for stock plans, shares | 15,512 | |||||
Ending balance at Sep. 30, 2022 | $ 5,151 | 24,956 | 50,216 | (42,880) | (2,538) | $ 34,905 |
Ending balance, shares at Sep. 30, 2022 | 5,003,059 | 5,003,059 | ||||
Beginning balance at Jun. 30, 2022 | $ 5,151 | 24,926 | 49,196 | (30,310) | (2,538) | $ 46,425 |
Beginning balance, shares at Jun. 30, 2022 | 5,003,059 | |||||
Net income | 2,120 | 2,120 | ||||
Other comprehensive income (loss) | (12,570) | (12,570) | ||||
Cash dividends | (1,100) | (1,100) | ||||
Stock-based compensation | 30 | 30 | ||||
Ending balance at Sep. 30, 2022 | $ 5,151 | $ 24,956 | $ 50,216 | $ (42,880) | $ (2,538) | $ 34,905 |
Ending balance, shares at Sep. 30, 2022 | 5,003,059 | 5,003,059 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Consolidated Statements of in Stockholders' Equity [Abstract] | ||||
Cash Dividends per share | $ 0.22 | $ 0.22 | $ 0.66 | $ 0.66 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Operating activities: | |||||
Net income | $ 6,218,000 | $ 5,271,000 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for loan losses | $ 100,000 | $ (257,000) | 350,000 | (536,000) | |
Depreciation | 480,000 | 548,000 | |||
Net amortization of securities premiums | 370,000 | 972,000 | |||
Net amortization of loan origination fees | 405,000 | 454,000 | |||
Deferred net loan origination costs | (468,000) | (474,000) | |||
Amortization of intangibles | 14,000 | 16,000 | 41,000 | 49,000 | |
Amortization of investment in low income housing partnerships | 200,000 | 200,000 | 600,000 | 600,000 | |
Net amortization of purchase fair value adjustments | (84,000) | (123,000) | |||
Net realized (gain) loss on sales and calls of available for sale securities | 1,452,000 | (58,000) | |||
Change in value of equity securities | 30,000 | (38,000) | 110,000 | (139,000) | |
Net gain on other real estate owned | (7,000) | (49,000) | |||
Earnings on bank owned life insurance and annuities | (53,000) | (64,000) | (164,000) | (186,000) | |
Deferred income tax benefit | (49,000) | (206,000) | |||
Stock-based compensation expense | 30,000 | 38,000 | 146,000 | 110,000 | |
Proceeds from mortgage loans sold to others | 48,000 | 56,000 | |||
Mortgage banking income | (24,000) | (26,000) | |||
Gain from life insurance proceeds | (329,000) | (380,000) | 0 | ||
Increase in accrued interest receivable and other assets | (1,251,000) | (563,000) | |||
Increase in accrued interest payable and other liabilities | 87,000 | 85,000 | |||
Net cash provided by operating activities | 7,880,000 | 5,785,000 | |||
Investing activities: | |||||
Purchases of: Securities available for sale | (53,295,000) | (173,765,000) | |||
Purchases of: FHLB stock | (988,000) | 0 | |||
Purchases of: Premises and equipment | (362,000) | (164,000) | |||
Purchases of: Bank owned life insurance and annuities | (28,000) | (36,000) | |||
Proceeds from: Sales of debt securities available for sale | 23,271,000 | 119,000 | |||
Proceeds from: Maturities of and principal repayments on securities available for sale | 26,478,000 | 32,856,000 | |||
Proceeds from: Redemption of FHLB stock | 0 | 61,315,000 | |||
Proceeds from: Life insurance claims | 2,285,000 | 907,000 | |||
Proceeds from: Sale of other real estate owned | 94,000 | 0 | |||
Proceeds from: Sale of other assets | 0 | 1,000 | |||
Net decrease in interest bearing time deposits with banks | 735,000 | 0 | |||
Net (increase) decrease in loans | (43,964,000) | 11,150,000 | |||
Net cash provided by investing activities | (45,774,000) | (67,617,000) | |||
Financing activities: | |||||
Net increase in deposits | 9,387,000 | 84,712,000 | |||
Net increase (decrease) in short-term borrowings and securities sold under agreements to repurchase | 31,642,000 | (19,946,000) | |||
Repayment of FRB advances | 0 | (27,955,000) | |||
Cash dividends | (3,300,000) | (3,304,000) | |||
Purchase of treasury stock | (3,000) | (675,000) | |||
Treasury stock issued for employee stock plans | 69,000 | 77,000 | |||
Net cash provided by financing activities | 37,795,000 | 32,909,000 | |||
Net decrease in cash and cash equivalents | (99,000) | (28,923,000) | |||
Cash and cash equivalents at beginning of year | 13,526,000 | 41,621,000 | $ 41,621,000 | ||
Cash and cash equivalents at end of period | $ 13,427,000 | $ 12,698,000 | 13,427,000 | 12,698,000 | $ 13,526,000 |
Supplemental information: | |||||
Interest paid | 2,169,000 | 2,640,000 | |||
Income tax paid | 400,000 | 179,000 | |||
Supplemental schedule of noncash investing and financing activities: | |||||
Transfer of loans to other real estate owned | 30,000 | 61,000 | |||
Transfer of loans to repossessed vehicles | $ 0 | $ 1,000 |
BASIS OF PRESENTATION AND ACCOU
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES The consolidated financial statements include the accounts of Juniata Valley Financial Corp. (the “Company” or “Juniata”) and its wholly owned subsidiary, The Juniata Valley Bank (the “Bank” or “JVB”). All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates, and such differences could be material to the financial statements. Estimates that are particularly susceptible to material change include the determination of the allowance for loan losses, and possible impairment of goodwill and other intangible assets. In the opinion of management, all adjustments considered necessary for fair presentation have been included. Operating results for the three and nine month periods ended September 30, 2022 are not necessarily indicative of the results that can be expected for the year ending December 31, 2022. For further information, refer to the consolidated financial statements and notes thereto included in Juniata Valley Financial Corp.’s Annual Report on Form 10-K (“Annual Report”) for the year ended December 31, 2021. The Company has evaluated events and transactions occurring subsequent to the consolidated statement of financial condition date of September 30, 2022 for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. |
RECENT ACCOUNTING STANDARDS UPD
RECENT ACCOUNTING STANDARDS UPDATES | 9 Months Ended |
Sep. 30, 2022 | |
RECENT ACCOUNTING STANDARDS UPDATES | |
RECENT ACCOUNTING STANDARDS UPDATES | 2. RECENT ACCOUNTING STANDARDS UPDATES ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Issued: Summary: The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available for sale debt securities. For an available for sale debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. Effective Date: ASU 2022-02, Financial Instruments – Credit Losses (Topic 326); Troubled Debt Restructurings and Vintage Disclosures Issued: Summary: Effective Date: |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Components of accumulated other comprehensive income (loss), net of tax, consisted of the following: (Dollars in thousands) September 30, 2022 Gains on Cash Flow Hedges Unrealized Losses on Available for Sale Securities Total Beginning balance, December 31, 2021 $ 427 $ (3,792) $ (3,365) Current period other comprehensive income (loss): Other comprehensive income (loss) before reclassification 944 (40,566) (39,622) Amounts reclassified from accumulated other comprehensive income (loss) (1,040) 1,147 107 Net current period other comprehensive loss (96) (39,419) (39,515) Ending balance, September 30, 2022 $ 331 $ (43,211) $ (42,880) (Dollars in thousands) September 30, 2021 Gains and (Losses) on Cash Flow Hedges Unrealized Gains and (Losses) on Available for Sale Securities Total Beginning balance, December 31, 2020 $ (45) $ 3,563 $ 3,518 Current period other comprehensive income (loss): Other comprehensive income (loss) before reclassification 355 (5,316) (4,961) Amounts reclassified from accumulated other comprehensive income (loss) 34 (46) (12) Net current period other comprehensive income (loss) 389 (5,362) (4,973) Ending balance, September 30, 2021 $ 344 $ (1,799) $ (1,455) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 4. EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilutive effect on EPS that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock, increasing the total number of shares outstanding. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. The following tables set forth the computation of basic and diluted earnings per share: (Amounts in thousands, except earnings per share data) Three Months Ended September 30, 2022 2021 Net income $ 2,120 $ 1,897 Weighted-average common shares outstanding 5,003 5,000 Basic earnings per share 0.42 0.38 Weighted-average common shares outstanding $ 5,003 $ 5,000 Common stock equivalents due to effect of stock options 9 11 Total weighted-average common shares and equivalents $ 5,012 $ 5,011 Diluted earnings per share $ 0.42 $ 0.38 Anti-dilutive stock options outstanding — — (Amounts in thousands, except earnings per share data) Nine months ended September 30, 2022 2021 Net income $ 6,218 $ 5,271 Weighted-average common shares outstanding 4,999 5,008 Basic earnings per share 1.24 1.05 Weighted-average common shares outstanding $ 4,999 $ 5,008 Common stock equivalents due to effect of stock options 9 9 Total weighted-average common shares and equivalents $ 5,008 $ 5,017 Diluted earnings per share $ 1.24 $ 1.05 Anti-dilutive stock options outstanding 1 — |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
SECURITIES | |
SECURITIES | 5. SECURITIES Equity Securities Equity securities owned by the Company consist of common stock of various financial services providers. ASC Topic 321, Investments – Equity Securities requires all equity securities within its scope to be measured at fair value with changes in fair value recognized in net income. As of September 30, 2022, the Company had $1.0 million in equity securities recorded at fair value and $1.1 million in equity securities were recorded at fair value at December 31, 2021. The Company recorded net losses of $30,000 and $110,000 during the respective three and nine months ended September 30, 2022, and net gains of $38,000 and $139,000 during the respective three and nine months ended September 30, 2021, due to changes in the fair value of the Company’s portfolio of equity securities during the applicable periods. Debt Securities Available for Sale Debt securities classified as available for sale, which include marketable investment securities, are within the scope of ASC Topic 320, Investments – Debt Securities. Topic 320 requires all debt securities within its scope to be stated at fair value, with the unrealized gains and losses, net of tax, reported as a component of other comprehensive income (loss). Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Interest and dividends are recognized as income when earned. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains or losses on the disposition of securities available for sale are based on the net proceeds and the adjusted carrying amount of the securities sold, determined on a specific identification basis. The Company’s available for sale investment portfolio includes primarily bonds issued by U.S. Government sponsored enterprises (approximately 15% of the investment portfolio), mortgage-backed securities issued by Government-sponsored entities and backed by residential mortgages (approximately 77%), corporate debt securities (approximately 5%) and municipal bonds (approximately 3%) as of September 30, 2022. Most of the municipal bonds are general obligation bonds with maturities or pre-refunding dates within 5 years. At each of September 30, 2022 and December 31, 2021, the Company had holdings of securities from two issuers in excess of 10% of stockholders’ equity, other than the U.S. Government and its agencies. Holdings in Federal Farm Credit Bank and Pennsylvania Housing Finance securities had fair values of $10.8 million and $6.1 million, respectively, as of September 30, 2022, and $12.4 million and $7.5 million, respectively, as of December 31, 2021. The amortized cost and fair value of debt securities available for sale as of September 30, 2022 and December 31, 2021, by contractual maturity, are shown in the tables below. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without prepayment penalties. (Dollars in thousands) September 30, 2022 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Type and Maturity Obligations of U.S. Government sponsored enterprises After one year but within five years $ 20,450 $ 18,118 $ — $ (2,332) After five years but within ten years 28,928 23,832 — (5,096) 49,378 41,950 — (7,428) Obligations of state and political subdivisions After one year but within five years 3,474 3,394 (80) After five years but within ten years 3,877 3,116 — (761) After ten years 1,501 1,171 — (330) 8,852 7,681 — (1,171) Corporate debt securities After one year but within five years 4,688 4,227 — (461) After five years but within ten years 13,000 11,349 — (1,651) 17,688 15,576 — (2,112) Mortgage-backed securities 266,030 222,044 — (43,986) Total $ 341,948 $ 287,251 $ — $ (54,697) (Dollars in thousands) December 31, 2021 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Type and Maturity Obligations of U.S. Government sponsored enterprises After one year but within five years $ 6,000 $ 5,807 $ — $ (193) After five years but within ten years 35,881 34,719 — (1,162) 41,881 40,526 — (1,355) Obligations of state and political subdivisions After one year but within five years 3,810 3,937 129 (2) After five years but within ten years 1,246 1,221 — (25) After ten years 4,118 4,062 — (56) 9,174 9,220 129 (83) Corporate debt securities After one year but within five years 2,000 1,972 — (28) After five years but within ten years 32,408 33,024 805 (189) 34,408 34,996 805 (217) Mortgage-backed securities 254,762 250,682 812 (4,892) Total $ 340,225 $ 335,424 $ 1,746 $ (6,547) Certain obligations of the U.S. Government and state and political subdivisions, as well as mortgage-backed securities are pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law. The carrying value of the pledged assets was $100.0 million and $82.7 million on September 30, 2022 and December 31, 2021, respectively. In addition to cash received from the scheduled maturities of investment securities, some securities available for sale are sold or called at current market values during normal operations. The following table summarizes proceeds received from sales or calls of available for sale investment securities transactions and the resulting realized gains and losses during the nine months ended September 30, 2022 and 2021. (Dollars in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Gross proceeds from sales and calls of securities $ 6,137 $ 106 $ 23,271 $ 32,975 Securities available for sale: Gross realized gains from sold and called securities $ — $ — $ 25 $ 130 Gross realized losses from sold and called securities (378) — (1,477) (72) Net gains (losses) from sales and calls of securities $ (378) $ — $ (1,452) $ 58 The Bank sold $24.7 million, par value, of subordinated debt of unconsolidated financial institutions, classified as corporate debt securities, at a loss of $1.5 million during the nine months ended September 30, 2022. Management’s intent with respect to these securities changed in the second quarter of 2022 due to the adverse regulatory impact of substantial (relative to capital) holdings of subordinated debt. Topic 320 clarifies the interaction of the factors that should be considered when determining whether a debt security is other-than-temporarily impaired. Management must assess whether (a) it has the intent to sell the security and (b) it is more likely than not that it will be required to sell the security prior to its anticipated recovery. These steps are taken before an assessment is made as to whether the entity will recover the cost basis of the investment. In instances when a determination is made that an other-than-temporary impairment exists and the entity does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, the other-than-temporary impairment is separated into the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. The following tables show gross unrealized losses and fair values of debt securities available for sale, aggregated by category and length of time the individual securities have been in a continuous unrealized loss position at September 30, 2022 and December 31, 2021. Unrealized Losses at September 30, 2022 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized Securities Value Losses Securities Value Losses Securities Value Losses Obligations of U.S. Government sponsored enterprises 2 $ 6,995 $ (455) 8 $ 34,955 $ (6,973) 10 $ 41,950 $ (7,428) Obligations of state and political subdivisions 5 3,394 (80) 6 4,287 (1,091) 11 7,681 (1,171) Corporate debt securities 6 10,444 (1,556) 3 5,132 (556) 9 15,576 (2,112) Mortgage-backed securities 47 77,474 (9,061) 37 144,570 (34,925) 84 222,044 (43,986) Total temporarily impaired securities 60 $ 98,307 $ (11,152) 54 $ 188,944 $ (43,545) 114 $ 287,251 $ (54,697) Unrealized Losses at December 31, 2021 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized Securities Value Losses Securities Value Losses Securities Value Losses Obligations of U.S. Government sponsored enterprises 5 $ 22,130 $ (752) 3 $ 18,396 $ (603) 8 $ 40,526 $ (1,355) Obligations of state and political subdivisions 7 5,781 (83) — — — 7 5,781 (83) Corporate debt securities 6 10,144 (217) — — — 6 10,144 (217) Mortgage-backed securities 36 182,328 (3,504) 5 26,443 (1,388) 41 208,771 (4,892) Total temporarily impaired securities 54 $ 220,383 $ (4,556) 8 $ 44,839 $ (1,991) 62 $ 265,222 $ (6,547) At September 30, 2022, ten obligations of U.S. Government sponsored enterprises, eleven obligations of state and political subdivisions, nine corporate debt securities, and eighty-four mortgage-backed securities had unrealized losses. Fifty-four of these securities have been in a continuous loss position for twelve months or more. The mortgage-backed securities in the Company’s portfolio are government sponsored enterprise (“GSE”) pass-through instruments issued by the Federal National Mortgage Association (“FNMA”) or Federal Home Loan Mortgage Corporation (“FHLMC”), which guarantees the timely payment of principal on these investments. The unrealized losses noted in the tables above are considered temporary impairments. The decline in the values of the debt securities is due only to interest rate fluctuations, rather than erosion of issuer credit quality. Management reviews debt securities for ratings downgrades at least quarterly. No downgrades were noted as of September 30, 2022 and December 31, 2021. Because of this, the payment of contractual cash flows, including principal repayment, is not at risk. The Company does not intend to sell the securities, does not believe the Company will be required to sell the securities before recovery and expects to recover the entire amortized cost basis, no debt securities were deemed to be other-than-temporarily impaired for the periods ended September 30, 2022 or December 31, 2021, respectively. |
LOANS AND RELATED ALLOWANCE FOR
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2022 | |
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | 6. LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES Loans that the Company originated and has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the outstanding unpaid principal balances, net of any deferred fees or costs and the allowance for loan losses. Loans acquired through a business combination are discussed under the heading “Acquired Loans”. Interest income on all loans, other than nonaccrual loans, is accrued over the term of the loans based on the amount of principal outstanding. Unearned income is amortized to income over the life of the loans, using the interest method. The loan portfolio includes the following classes: (1) commercial, financial and agricultural, (2) real estate - commercial, (3) real estate - construction, (4) real estate – mortgage, (5) obligations of states and political subdivisions, and (6) personal loans. Interest income on consumer, mortgage and commercial loans is discontinued, and loans are placed on non-accrual status at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Loans are charged off to the extent principal or interest is deemed uncollectible. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged off at an earlier date if collection of principal or interest is considered doubtful. Non-accrual loans and loans past due 90 days still on accrual include both homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan principal balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, the loan has performed in accordance with the contractual terms for a reasonable period and future payments are reasonably assured. The Company originates loans in the portfolio with the intent to hold them until maturity. Should the Company no longer intend to hold loans to maturity based on asset/liability management practices, the Company transfers loans from its portfolio to held for sale at fair value. Any write-down recorded upon transfer is charged against the allowance for loan losses. Any write-downs recorded after the initial transfers are recorded as a charge to other non-interest expense. Gains or losses recognized upon sale are included in gains on sales of loans, which is a component of non-interest income. Loans Held for Sale The Company has originated residential mortgage loans with the intent to sell. These individual loans are normally sold to the buyer immediately. The Company maintains servicing rights on these loans. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date and reports changes in fair value of servicing assets in earnings in the period in which the changes occur, which are included with mortgage banking income on the income statement. The fair values of servicing rights are subject to fluctuations because of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement as mortgage banking income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Late fees and ancillary fees related to loan servicing are not material. Commercial, Financial and Agricultural Lending The Company originates commercial, financial and agricultural loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes, which include short-term loans and lines of credit to finance machinery and equipment purchases, inventory and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is shorter and does not exceed the projected useful life of such machinery and equipment. Most business lines of credit are written with a five year maturity, subject to an annual credit review. Commercial loans are generally secured with short-term assets; however, in many cases, additional collateral, such as real estate, is provided as additional security for the loan. Loan-to-value maximum values have been established by the Company and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, collateral appraisals, and other methods. In underwriting commercial loans, an analysis of the borrower’s character, capacity to repay the loan, the adequacy of the borrower’s capital and collateral, as well as an evaluation of conditions affecting the borrower, is performed. Evaluation of the borrower’s past, present and future cash flows is also an important aspect of the Company’s analysis. Concentration analysis assists in identifying industry specific risk inherent in commercial, financial and agricultural lending. Mitigants include the identification of secondary and tertiary sources of repayment and appropriate increases in oversight. Commercial, financial and agricultural loans generally present a higher level of risk than certain other types of loans, particularly during slow economic conditions. Real Estate - Commercial Lending The Company engages in real estate - commercial lending in its primary market area and surrounding areas. The Company’s real estate - commercial portfolio is secured primarily by residential housing, commercial buildings, raw land and hotels. Generally, real estate - commercial loans have terms that do not exceed 20 years, have loan-to-value ratios of up to 80% of the appraised value of the property and are typically secured by personal guarantees of the borrowers. As economic conditions deteriorate, the Company reduces its exposure in real estate loans with higher risk characteristics. In underwriting these loans, the Company performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. Appraisals on properties securing commercial real estate loans originated by the Company are performed by independent appraisers. Real estate - commercial loans generally present a higher level of risk than certain other types of loans, particularly during slow economic conditions. Real Estate - Construction Lending The Company engages in real estate - construction lending in its primary market area and surrounding areas. The Company’s real estate - construction lending consists of commercial and residential site development loans, as well as commercial building construction and residential housing construction loans. The Company’s commercial real estate - construction loans are generally secured with the subject property, and advances are made in conformity with a pre-determined draw schedule supported by independent inspections. Terms of construction loans depend on the specifics of the project, such as estimated absorption rates, estimated time to complete, etc. In underwriting commercial real estate - construction loans, the Company performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history and the reliability and predictability of the cash flow generated by the project using feasibility studies, market data, and other resources. Appraisals on properties securing real estate - commercial loans originated by the Company are performed by independent appraisers. Real estate - construction loans generally present a higher level of risk than certain other types of loans, particularly during slow economic conditions. The difficulty of estimating total construction costs adds to the risk as well. Real Estate - Mortgage Lending The Company’s real estate - mortgage portfolio is comprised of one-to-four family residential mortgages and business loans secured by one-to-four family properties. One-to-four family residential mortgage loan originations, including home equity installment and home equity lines of credit loans, are generated by the Company’s marketing efforts, its present customers, walk-in customers and referrals. These loans originate primarily within the Company’s market area or with customers primarily from the market area. The Company offers fixed-rate and adjustable rate real estate - mortgage loans with a term up to a maximum of 25-years for both permanent structures and those under construction. The Company’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. Most of the Company’s residential real estate - mortgage loans originate with a loan-to-value of 80% or less. Home equity installment loans are secured by the borrower’s primary residence with a maximum loan-to-value of 80% and a maximum term of 15 years. Home equity lines of credit are secured by the borrower’s primary residence with a maximum loan-to-value of 90% and a maximum term of 20 years. In underwriting one-to-four family residential real estate loans, the Company evaluates the borrower’s ability to make monthly payments, the borrower’s repayment history and the value of the property securing the loan. The ability to repay is determined by the borrower’s employment history, current financial conditions, and credit background. The analysis is based primarily on the customer’s ability to repay and secondarily on the collateral or security. Most properties securing real estate loans made by the Company are appraised by independent fee appraisers. The Company generally requires mortgage loan borrowers to obtain an attorney’s title opinion or title insurance, and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. The Company does not engage in sub-prime residential mortgage originations. Residential mortgage loans and home equity loans generally present a lower level of risk than certain other types of consumer loans because they are secured by the borrower’s primary residence. Risk is increased when the Company is in a subordinate position for the loan collateral. Obligations of States and Political Subdivisions The Company lends to local municipalities and other tax-exempt organizations. These loans are primarily tax-anticipation notes and, as such, carry little risk. Historically, the Company has never had a loss on any loan of this type. Personal Lending The Company offers a variety of secured and unsecured personal loans, including vehicle loans, mobile home loans and loans secured by savings deposits as well as other types of personal loans. Personal loan terms vary according to the type and value of collateral and creditworthiness of the borrower. In underwriting personal loans, a thorough analysis of the borrower’s willingness and financial ability to repay the loan as agreed is performed. The ability to repay is determined by the borrower’s employment history, current financial conditions and credit background. Personal loans may entail greater credit risk than do residential mortgage loans, particularly in the case of personal loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted personal loan may not provide an adequate source of repayment of the outstanding loan balance because of the greater likelihood of damage, loss or depreciation. In addition, personal loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. Allowance for Loan Losses The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses (“allowance”) represents management’s estimate of probable incurred losses in the loan portfolio as of the consolidated statement of financial condition date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of probable incurred losses in its unfunded lending commitments and is recorded in other liabilities on the consolidated statement of financial condition, when necessary. The amount of the reserve for unfunded lending commitments is not material to the consolidated financial statements. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries and loan loss provision credits. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. For financial reporting purposes, the provision for loan losses charged to current operating income is based on management’s estimates, and actual losses may vary from estimates. These estimates are reviewed and adjusted at least quarterly and are reported in earnings in the periods in which they become known. Loans included in any class are considered for charge-off when: ● principal or interest has been in default for 120 days or more and for which no payment has been received during the previous four months; ● all collateral securing the loan has been liquidated and a deficiency balance remains; ● a bankruptcy notice is received for an unsecured loan; ● a confirming loss event has occurred; or ● the loan is deemed to be uncollectible for any other reason. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all the circumstances surrounding the loans and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Impairment for substantially all the Company’s impaired loans is measured based on the estimated fair value of the loan’s collateral. For real estate - commercial loans, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the current appraisal and the condition of the property. Appraised values may be discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include the estimated costs to sell the property. For commercial, financial and agricultural, and obligations of states and political subdivision loans, estimated fair values are determined based on the borrower’s financial statements, inventory reports, aging accounts receivable, equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The Company generally does not separately identify individual consumer segment loans for impairment analysis unless such loans are subject to a restructuring agreement. Troubled debt restructurings are individually evaluated for impairment and included in the separately identified impairment disclosures. Loans whose terms are modified are classified as troubled debt restructurings if the Company grants borrowers’ concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a below-market interest rate based on the loan’s risk characteristics, an extension of a loan’s stated maturity date or a significant delay in payment. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for a sustained period after modification. For TDRs that subsequently default, the Company determines the amount of the allowance on that loan in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. The Company incorporates recent historical experience related to TDRs, including the performance of TDRs that subsequently default, into the calculation of the allowance by loan portfolio class. Acquired Loans Loans that Juniata acquires through business combinations are recorded at fair value with no carryover of the related allowance for loan losses. Some of these loans have shown evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics, such as credit score, loan type, and date of origination. Juniata estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows more than the amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. PCI loans that met the criteria for impairment or non-accrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if Juniata expects to fully collect the new carrying value (i.e., fair value) of the loans. As such, Juniata may no longer consider the loan to be non-accrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30, but for which a discount is attributable at least in part to credit quality, are also accounted for in accordance with this guidance. As a result, related discounts are recognized subsequently through accretion based on the contractual cash flows of the acquired loans. Paycheck Protection Program Loans The CARES Act established the Paycheck Protection Program (“PPP”) which is administered by the Small Business Administration (“SBA”). The PPP began on April 3, 2020 and provided economic relief to small businesses nationwide that were adversely impacted under the COVID-19 Emergency Declaration issued on March 13, 2020. It also provided for forgiveness of the PPP loans in an amount up to the full principal amount of qualifying loans. The Company participated in the PPP and funded 870 PPP loans totaling $51.0 million. PPP loans are included in the commercial, financial and agricultural loan class. As of September 30, 2022, four PPP loans, totaling $25,000, remained outstanding with related unamortized net fees of $3,000. As of December 31, 2021, 194 PPP loans, totaling $10.1 million remained outstanding, with related unamortized net fees of $485,000. Loan Portfolio Classification The following table presents the loan portfolio by class at September 30, 2022 and December 31, 2021. (Dollars in thousands) September 30, 2022 December 31, 2021 Commercial, financial and agricultural $ 58,585 $ 62,639 Real estate - commercial 189,860 159,806 Real estate - construction 48,108 43,281 Real estate - mortgage 142,149 131,754 Obligations of states and political subdivisions 19,761 16,323 Personal 3,967 4,500 Total $ 462,430 $ 418,303 The following table summarizes the activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2022 and 2021. (Dollars in thousands) Obligations Commercial, of states financial and Real estate- Real estate- and political Real estate- agricultural commercial construction subdivisions mortgage Personal Total Three Months Ended September 30, 2022 Balance, beginning of period $ 286 $ 934 $ 1,208 $ 56 $ 1,294 $ 35 $ 3,813 Provision for loan losses (4) 129 (123) — 94 4 100 Charge-offs — — — — (22) (4) (26) Recoveries — — — — 18 — 18 Balance, end of period $ 282 $ 1,063 $ 1,085 $ 56 $ 1,384 $ 35 $ 3,905 September 30, 2021 Balance, beginning of period $ 289 $ 1,435 $ 924 $ 33 $ 1,164 $ 61 $ 3,906 Provision for loan losses (9) (104) (81) (5) (54) (4) (257) Charge-offs — — — — — (2) (2) Recoveries — 36 27 — 12 3 78 Balance, end of period $ 280 $ 1,367 $ 870 $ 28 $ 1,122 $ 58 $ 3,725 Nine Months Ended September 30, 2022 Balance, beginning of period $ 251 $ 1,020 $ 884 $ 45 $ 1,269 $ 39 $ 3,508 Provision for loan losses 31 43 201 11 61 3 350 Charge-offs — — — — (23) (9) (32) Recoveries — — — — 77 2 79 Balance, end of period $ 282 $ 1,063 $ 1,085 $ 56 $ 1,384 $ 35 $ 3,905 September 30, 2021 Balance, beginning of period $ 302 $ 908 $ 1,586 $ 28 $ 1,200 $ 70 $ 4,094 Provision for loan losses (29) 423 (799) — (119) (12) (536) Charge-offs — — — — — (10) (10) Recoveries 7 36 83 — 41 10 177 Balance, end of period $ 280 $ 1,367 $ 870 $ 28 $ 1,122 $ 58 $ 3,725 The following table summarizes loans by loan class, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2022 and December 31, 2021. (Dollars in thousands) Obligations Commercial, of states financial and Real estate- Real estate- and political Real estate- agricultural commercial construction subdivisions mortgage Personal Total September 30, 2022 Loans allocated by: Individually evaluated for impairment $ — $ 2,048 $ — $ — $ 387 $ — $ 2,435 Acquired with credit deterioration — 299 — — 424 — 723 Collectively evaluated for impairment 58,585 187,513 48,108 19,761 141,338 3,967 459,272 $ 58,585 $ 189,860 $ 48,108 $ 19,761 $ 142,149 $ 3,967 $ 462,430 Allowance for loan losses allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Acquired with credit deterioration — — — — — — — Collectively evaluated for impairment 282 1,063 1,085 56 1,384 35 3,905 $ 282 $ 1,063 $ 1,085 $ 56 $ 1,384 $ 35 $ 3,905 December 31, 2021 Loans allocated by: Individually evaluated for impairment $ — $ 5,262 $ — $ — $ 437 $ — $ 5,699 Acquired with credit deterioration — 357 — — 481 — 838 Collectively evaluated for impairment 62,639 154,187 43,281 16,323 130,836 4,500 411,766 $ 62,639 $ 159,806 $ 43,281 $ 16,323 $ 131,754 $ 4,500 $ 418,303 Allowance for loan losses allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ 2 $ — $ 2 Acquired with credit deterioration — — — — — — — Collectively evaluated for impairment 251 1,020 884 45 1,267 39 3,506 $ 251 $ 1,020 $ 884 $ 45 $ 1,269 $ 39 $ 3,508 The Company has certain loans in its portfolio that it considers to be impaired. It is the policy of the Company to recognize income on impaired loans that have been transferred to nonaccrual status on a cash basis, only to the extent that it exceeds anticipated principal balance recovery. Until an impaired loan is placed on nonaccrual status, income is recognized on the accrual basis. Collateral analysis is performed on each impaired loan at least quarterly, and results are used to determine if a specific reserve is necessary to adjust the carrying value of each individual loan down to the estimated fair value. Generally, specific reserves are carried against impaired loans based upon estimated collateral value until a confirming loss event occurs or until termination of the credit is scheduled through liquidation of the collateral or foreclosure. There were no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of September 30, 2022. As of December 31, 2021, there was $85,000 in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process. Charge-offs will occur when a confirmed loss is identified. Professional appraisals of collateral, discounted for expected selling costs, appraisal age, economic conditions and other known factors, are used to determine the charge-off amount. The following table summarizes information regarding impaired loans by portfolio class as of September 30, 2022 and December 31, 2021. One loan was determined to have insufficient collateral as of December 31, 2021, requiring the establishment of a specific reserve of $2,000. (Dollars in thousands) As of September 30, 2022 As of December 31, 2021 Recorded Unpaid Principal Related Recorded Unpaid Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans With no related allowance recorded: Real estate - commercial $ 2,048 $ 2,499 $ — $ 5,262 $ 5,720 $ — Acquired with credit deterioration 299 350 — 357 366 — Real estate – construction — — — — 649 — Real estate - mortgage 387 1,010 — 368 1,054 — Acquired with credit deterioration 424 640 — 481 660 — With an allowance recorded: Real estate - mortgage $ — $ — $ — $ 69 $ 68 $ 2 Total: Real estate - commercial $ 2,048 $ 2,499 $ — $ 5,262 $ 5,720 $ — Acquired with credit deterioration 299 350 — 357 366 — Real estate - construction — — — — 649 — Real estate – mortgage 387 1,010 — 437 1,122 2 Acquired with credit deterioration 424 640 — 481 660 — $ 3,158 $ 4,499 $ — $ 6,537 $ 8,517 $ 2 Average recorded investment of impaired loans and related interest income recognized for the three and nine months ended September 30, 2022 and 2021 are summarized in the tables below. (Dollars in thousands) Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Income Investment Recognized Income Impaired loans With no related allowance recorded: Real estate - commercial $ 2,058 $ 98 $ — $ 5,291 $ 55 $ — Acquired with credit deterioration 341 — — 364 — — Real estate - mortgage 348 4 19 483 3 10 Acquired with credit deterioration 440 — — 595 — — Total: Real estate - commercial $ 2,058 $ 98 $ — $ 5,291 $ 55 $ — Acquired with credit deterioration 341 — — 364 — — Real estate - mortgage 348 4 19 483 3 10 Acquired with credit deterioration 440 — — 595 — — $ 3,187 $ 102 $ 19 $ 6,733 $ 58 $ 10 (Dollars in thousands) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Income Investment Recognized Income Impaired Loans With no related allowance recorded: Real estate - commercial $ 4,187 $ 161 $ — $ 4,346 $ 166 $ — Acquired with credit deterioration 347 — — 345 — — Real estate - mortgage 397 7 29 579 10 30 Acquired with credit deterioration 455 — — 602 — — Total: Real estate - commercial $ 4,187 $ 161 $ — $ 4,346 $ 166 $ — Acquired with credit deterioration 347 — — 345 — — Real estate - mortgage 397 7 29 579 10 30 Acquired with credit deterioration 455 — — 602 — — $ 5,386 $ 168 $ 29 $ 5,872 $ 176 $ 30 The recorded investment in loans excludes accrued interest receivable and loan origination fees, net, due to immateriali |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 7. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill On September 8, 2006 , the Company acquired a branch office in Richfield, PA. Goodwill associated with this transaction is carried at $2.0 million. On November 30, 2015 , the Company acquired FNBPA Bancorp, Inc. and, as a result, carries goodwill of $3.4 million relating to the acquisition. On April 30, 2018 , the Company acquired the remainder of the outstanding common stock of Liverpool Community Bank and, as a result, carries goodwill of $3.6 million relating to the acquisition. Total goodwill at September 30, 2022 and December 31, 2021 was $9.0 million. Goodwill is not amortized but is tested annually for impairment as of December 31, or more frequently if certain events occur which might indicate goodwill has been impaired. There was no goodwill impairment during the nine months ended September 30, 2022 or September 30, 2021. Intangible Assets On November 30, 2015, a core deposit intangible in the amount of $303,000 associated with the FNBPA Bancorp, Inc. acquisition was recorded and is being amortized over a ten-year period using a sum of the year’s digits basis. Amortization expense recognized for the intangibles related to the FNBPA acquisition for the respective three and nine months ended September 30, 2022 was $5,000 and $16,000 and for the respective three and nine months ended September 30, 2021 was $6,000 and $20,000. On April 30, 2018, a core deposit intangible in the amount of $289,000 associated with the Liverpool Community Bank acquisition was recorded and is being amortized over a ten-year period using a sum of the year’s digit basis. Amortization expense recognized for the intangible related to the Liverpool Community Bank acquisition for the respective three and nine months ended September 30, 2022 was $9,000 and $25,000 and for the respective three and nine months ended September 30, 2021 was $10,000 and $29,000. The following table shows the amortization schedule for each of the intangible assets recorded. (Dollars in thousands) FNBPA LCB Acquisition Acquisition Core Core Deposit Deposit Intangible Intangible Beginning Balance at Acquisition Date $ 303 $ 289 Amortization expense recorded prior to January 1, 2021 223 128 Amortization expense recorded in the twelve months ended December 31, 2021 27 39 Unamortized balance as of December 31, 2021 53 122 Amortization expense recorded in the nine months ended September 30, 2022 16 25 Unamortized balance as of September 30, 2022 $ 37 $ 97 Scheduled remaining amortization expense for years ended: December 31, 2022 $ 6 $ 8 December 31, 2023 16 28 December 31, 2024 10 23 December 31, 2025 5 17 December 31, 2026 — 12 Thereafter — 9 |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2022 | |
BORROWINGS | |
BORROWINGS | 8. BORROWINGS Borrowings consisted of the following as of September 30, 2022 and December 31, 2021. (Dollars in thousands) September 30, December 31, 2022 2021 Securities sold under agreements to repurchase $ 6,869 $ 4,227 Overnight advances with FHLB 9,000 — Short-term debt with FHLB 20,000 — Long-term debt with FHLB 20,000 20,000 $ 55,869 $ 24,227 Long-term debt is comprised only of Federal Home Loan Bank (“FHLB”) advances with an original maturity of one year or more. The following table summarizes the scheduled maturities of long-term debt as of September 30, 2022. (Dollars in thousands) Scheduled Weighted Average Year Maturities Interest Rate 2022 $ — — % 2023 — — 2024 15,000 2.29 2025 5,000 2.41 2026 — — Thereafter — — $ 20,000 2.32 % |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 9 Months Ended |
Sep. 30, 2022 | |
STOCK COMPENSATION PLAN | |
STOCK COMPENSATION PLAN | 9. STOCK COMPENSATION PLAN Long-Term Incentive Plan The Company maintains the 2016 Long-Term Incentive Plan (the “Plan”); the Plan amended and restated the former 2011 Stock Option Plan (the “2011 Plan”). The Plan continues in effect for any outstanding awards under the 2011 Plan in accordance with the terms and conditions governing such awards immediately prior to the effective date of the Plan. The Plan expanded the types of awards authorized by the 2011 Plan to include, among others, restricted stock. Under the provisions of the Plan, awards may consist of grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock and performance shares to officers and key employees of the Company, as well as directors. The Plan is administered by a committee of the Board of Directors. The maximum number of shares of common stock that may be issued under the Plan is 300,000 shares and 163,990 shares remained available for grant as of September 30, 2022. Shares of common stock issued under the Plan may be treasury shares or authorized but unissued shares. Forfeited awards are returned to the pool of shares available for grant for future awards. Through the nine months ended September 30, 2022, 10,486 restricted shares were awarded to certain officers and all directors. Each of the awards vest after three-years, with no interim vesting. As of September 30, 2022, there was $169,000 of unrecognized compensation cost related to all non-vested restricted stock awards. This cost is expected to be recognized over the vesting period through February 2025 Compensation expense for stock options granted and restricted stock awarded is measured using the fair value of the award on the grant date and is recognized over the vesting period. The Company recognized stock-based compensation expense of $30,000 and $146,000 for the three and nine months ended September 30, 2022, and $38,000 and $110,000 for the three and nine months ended September 30, 2021. The following table presents a summary of the status of the Company’s non-vested restricted stock awards as of September 30, 2022, and changes during the period then ended is presented below: Weighted Average Grant Date Shares Fair Value Non-vested at January 1, 2022 22,789 $ 18.48 Vested (11,475) 18.72 Forfeited (825) 17.32 Granted 10,486 15.90 Non-vested at September 30, 2022 20,975 $ 17.10 No stock options were awarded during the nine months ended September 30, 2022. Previously granted stock options vest over three Total options outstanding as of September 30, 2022 have exercise prices between $17.65 and $17.80, with a weighted average exercise price of $17.74 and a weighted average remaining contractual life of 1.66 years. As of September 30, 2022, there was no unrecognized compensation cost related to options granted under the Plan and no options were exercised under the Plan during the period. A summary of the status of the outstanding stock options as of September 30, 2022, and changes during the period then ended, is presented below: Weighted Average Exercise Shares Price Outstanding at beginning of year 71,947 $ 17.78 Granted — — Exercised — — Expired (11,600) 18.00 Outstanding at end of year 60,347 $ 17.74 Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan under which employees, through payroll deductions, may purchase shares of Company stock annually. The option price of the stock purchases is between 95% and 100% of the fair market value of the stock on the offering termination date as determined annually by the Board of Directors. The maximum number of shares which employees may purchase under the Plan is 250,000; however, the annual issuance of shares may not exceed 5,000 shares plus any unissued shares from prior offerings. There were 5,026 and 4,944 shares issued from treasury under this plan during the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there were 156,650 shares reserved for issuance under the Employee Stock Purchase Plan. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 30, 2022 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 10. FAIR VALUE MEASUREMENT Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Additional guidance is provided on determining when the volume and level of activity for the asset or liability has significantly decreased. The guidance also includes guidance on identifying circumstances when a transaction may not be considered orderly. Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed, and significant adjustments to the related prices may be necessary to estimate fair value in accordance with fair value measurement and disclosure guidance. This guidance clarifies that, when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs Level 2 Inputs Level 3 Inputs An asset’s or liability’s placement in the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy, is set forth below. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Equities Securities – Debt Securities Available for Sale – Derivatives Impaired Loans – Other Real Estate Owned – Mortgage Servicing Rights The following tables summarize financial assets and financial liabilities measured at fair value as of September 30, 2022 and December 31, 2021 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. There were no assets measured at fair value on a non-recurring basis as of September 30, 2022 or December 31, 2021. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other for Identical Observable Unobservable September 30, 2022 Assets Inputs Inputs Total Assets measured at fair value on a recurring basis: Debt securities available for sale: Obligations of U.S. Government agencies and corporations $ — $ 41,950 $ — $ 41,950 Obligations of state and political subdivisions — 7,681 — 7,681 Corporate debt securities — 8,228 7,348 15,576 Mortgage-backed securities — 222,044 — 222,044 Total debt securities available for sale $ — $ 279,903 $ 7,348 $ 287,251 Equity securities $ 1,014 $ — $ — $ 1,014 Mortgage servicing rights $ — $ — $ 96 $ 96 Interest rate swaps $ — $ 419 $ — $ 419 (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other for Identical Observable Unobservable December 31, 2021 Assets Inputs Inputs Total Assets measured at fair value on a recurring basis: Debt securities available for sale: Obligations of U.S. Government agencies and corporations $ — $ 40,526 $ — $ 40,526 Obligations of state and political subdivisions — 9,220 — 9,220 Corporate debt securities — 30,476 4,520 34,996 Mortgage-backed securities — 250,682 — 250,682 Total debt securities available for sale $ — $ 330,904 $ 4,520 $ 335,424 Equity securities $ 1,124 $ — $ — $ 1,124 Mortgage servicing rights $ — $ — $ 120 $ 120 Interest rate swaps $ — $ 541 $ — $ 541 The table below presents a reconciliation of the beginning and ending balances of investment securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine month periods ended September 30, 2022 and 2021. Three Months Ended Nine Months Ended (Dollars in thousands) September 30, September 30, 2022 2021 2022 2021 Investment Securities: Beginning balance $ 7,788 $ 4,500 $ 4,520 $ 2,000 Total gains (loss) included in OCI (440) 20 (1,172) 20 Purchases — — 4,000 2,500 Principal payments and other — — — — Sales — — — — Balance, end of period $ 7,348 $ 4,520 $ 7,348 $ 4,520 Mortgage servicing rights and assets measured at fair value on a nonrecurring basis for which Level 3 inputs have been used to determine fair value are immaterial to the Company’s consolidated financial statements. Fair Value of Financial Instruments Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, the fair value estimates reported herein are not necessarily indicative of the amounts the Company could have realized in sales transactions on the dates indicated. The estimated fair value amounts have been measured as of their respective year ends and have not been re-evaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments after the respective reporting dates may be different from the amounts reported at each quarter end. The information presented below should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is provided only for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: Financial Instruments (Dollars in thousands) September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and due from banks $ 13,325 $ 13,325 $ 12,928 $ 12,928 Interest bearing deposits with banks 102 102 598 598 Interest bearing time deposits with banks — — 735 735 Securities 288,265 288,265 336,548 336,548 Restricted investment in bank stock 3,104 N/A 2,116 N/A Loans, net of allowance for loan losses 458,525 458,754 414,795 414,984 Interest rate swaps 419 419 541 541 Accrued interest receivable 1,907 1,907 1,814 1,814 Financial liabilities: Non-interest bearing deposits $ 202,493 $ 202,493 $ 182,022 $ 182,022 Interest bearing deposits 515,341 512,082 526,425 528,952 Securities sold under agreements to repurchase 6,869 N/A 4,227 N/A Short-term borrowings 20,000 19,995 — — Long-term debt 20,000 19,133 20,000 20,520 Other interest bearing liabilities 995 990 1,568 1,568 Accrued interest payable 215 215 252 252 Off-balance sheet financial instruments: Commitments to extend credit $ — $ — $ — $ — Letters of credit — — — — The following tables present the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments not previously disclosed as of September 30, 2022 and December 31, 2021. The tables exclude financial instruments for which the carrying amount approximates fair value. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other Carrying for Identical Observable Unobservable Amount Fair Value Assets or Liabilities Inputs Inputs September 30, 2022 Financial instruments - Assets Loans, net of allowance for loan losses $ 458,525 $ 458,754 $ — $ — $ 458,754 Financial instruments - Liabilities Interest bearing deposits $ 515,341 $ 512,082 $ — $ 512,082 $ — Long-term debt 20,000 19,133 — 19,133 — Other interest bearing liabilities 995 990 — 990 — (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other Carrying for Identical Observable Unobservable Amount Fair Value Assets or Liabilities Inputs Inputs December 31, 2021 Financial instruments - Assets Interest bearing time deposits with banks $ 735 $ 735 $ — $ 735 $ — Loans, net of allowance for loan losses 414,795 414,984 — — 414,984 Financial instruments - Liabilities Interest bearing deposits $ 526,425 $ 528,952 $ — $ 528,952 $ — Long-term debt 20,000 20,520 — 20,520 — Other interest bearing liabilities 1,568 1,568 — 1,568 — |
COMMITMENTS, CONTINGENT LIABILI
COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES | 9 Months Ended |
Sep. 30, 2022 | |
COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES | |
COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES | 11. COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES In the ordinary course of business, the Company makes commitments to extend credit to its customers through letters of credit, loan commitments and lines of credit. At September 30, 2022, the Company had $118.8 million outstanding in loan commitments and other unused lines of credit extended to its customers as compared to $107.1 million at December 31, 2021. The Company does not issue any guarantees that would require liability recognition or disclosure, other than its letters of credit. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. Generally, financial and performance letters of credit have expiration dates within one year of issuance, while commercial letters of credit have longer term commitments. The credit risk involved in issuing letters of credit is essentially the same as the risks that are involved in extending loan facilities to customers. The Company generally holds collateral and/or personal guarantees supporting these commitments. The Company had outstanding $3.7 million and $5.7 million of financial and performance letters of credit commitments as of September 30, 2022 and December 31, 2021, respectively. Commercial letters of credit as of September 30, 2022 and December 31, 2021 totaled $9.9 million and $9.5 million, respectively. Management believes the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential number of future payments required under the corresponding guarantees. The amount of the liability as of September 30, 2022 for payments under letters of credit issued was not material. Because these instruments have fixed maturity dates, and because many of them will expire without being drawn upon, they do not generally present any significant liquidity risk. Additionally, the Company has sold qualifying residential mortgage loans to the FHLB as part of its Mortgage Partnership Finance Program (“Program”). Under the terms of the Program, there is limited recourse back to the Company for loans that do not perform in accordance with the terms of the loan agreement. Each loan sold under the Program is “credit enhanced” such that the individual loan’s rating is raised to “BBB”, as determined by the FHLB. The Program can be terminated by either the FHLB or the Company, without cause. The FHLB has no obligation to commit to purchase any mortgage loans through, or from, the Company. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2022 | |
DERIVATIVES | |
DERIVATIVES | 12. DERIVATIVES The Company uses interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. As of December 31, 2021, interest rate swaps with a notional amount totaling $40.0 million, were designated as cash flow hedges, of which $20.0 million were hedges of brokered deposits, and the other $20.0 million were hedges of certain forecasted FHLB long-term advances. Based on updated funding need projections, including the proceeds from the sale of investment securities and continued core deposit growth, Juniata unwound two forward starting swaps at a gain of $1.2 million during the second quarter of 2022. The amounts previously recognized in accumulated other comprehensive income were reclassified to other non-interest income because it became probable that the forecasted hedged transactions would not occur. Also in the second quarter, an interest rate swap with a notional amount totaling $20.0 million was de-designated as a cash flow hedge on brokered deposits and designated instead, as a cash flow hedge on a short-term FHLB advance. The remaining interest rate swap was determined to be fully effective during the periods presented, and as such, no amount of ineffectiveness has been included in net income . The aggregate fair value of the swaps is recorded in either other assets or other liabilities on the Consolidated Statements of Condition, with changes in fair value recorded in other comprehensive income. The Company expects the hedge to remain fully effective during the remaining terms of the swap. The following table reflects the notional amounts and fair values of derivatives recorded on the Consolidated Statements of Condition as of September 30, 2022 and December 31, 2021. (Dollars in thousands) September 30, 2022 December 31, 2021 Fair Fair Value Value Notional Asset Notional Asset Derivatives designated as hedges: Amount (Liability) Amount (Liability) Interest rate swap - pay fixed / receive floating on 3-month brokered deposit $ — $ — $ 20,000 $ 52 Interest rate swap - pay fixed / receive floating on 3-month FHLB advance 20,000 419 — — Interest rate swaps - forward-starting on long-term FHLB advances — — 20,000 489 The effect of cash flow hedge accounting on accumulated other comprehensive income for the periods ended September 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) September 30, 2022 Amount of Gain Location of (Gain) Amount of (Gain) (Loss) Recognized in Loss Reclassified Loss Reclassified OCI on Derivatives from OCI into Income from OCI into Income Interest rate contract $ (7) Interest expense on short-term borrowings and repurchase agreements $ (115) Swap termination gain 1,202 Other non-interest income (1,202) Total $ 1,195 $ (1,317) (Dollars in thousands) December 31, 2021 Amount of Gain Location of (Gain) Amount of (Gain) (Loss) Recognized in Loss Reclassified Loss Reclassified OCI on Derivatives from OCI into Income from OCI into Income Interest rate contracts $ 538 Interest expense on short-term borrowings and repurchase agreements $ 60 Total $ 538 $ 60 The effect of cash flow hedge accounting on the Consolidated Statements of Income for the three and nine months ended September 30, 2022 and 2021 is as follows: Amount of Gain or Loss Recognized in Income on Cash Flow Hedging Relationships Income (Expense) Income (Expense) Three Months Ended Nine Months Ended (Dollars in thousands) September 30, September 30, 2022 2021 2022 2021 Effects of cash flow hedging: Loss on cash flow hedging relationships: Amount reclassified from AOCI into income $ 99 $ (17) $ 115 $ (43) Amount reclassified from AOCI into income for swap termination (13) — 1,202 — Total $ 86 $ (17) $ 1,317 $ (43) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 13. SUBSEQUENT EVENTS On October 18, 2022, the Board of Directors declared a cash dividend of $0.22 per share to shareholders of record on November 15, 2022, payable on December 1, 2022. |
RECENT ACCOUNTING STANDARDS U_2
RECENT ACCOUNTING STANDARDS UPDATES (Policy) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Standards Update 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Adoption of New Accounting Standards | ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Issued: Summary: The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available for sale debt securities. For an available for sale debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. Effective Date: |
Accounting Standards Update 2022-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Adoption of New Accounting Standards | ASU 2022-02, Financial Instruments – Credit Losses (Topic 326); Troubled Debt Restructurings and Vintage Disclosures Issued: Summary: Effective Date: |
LOANS AND RELATED ALLOWANCE F_2
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Policy) | 9 Months Ended |
Sep. 30, 2022 | |
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | |
Loans and Leases Receivable, Nonaccrual Loan and Lease Status | The Company has certain loans in its portfolio that it considers to be impaired. It is the policy of the Company to recognize income on impaired loans that have been transferred to nonaccrual status on a cash basis, only to the extent that it exceeds anticipated principal balance recovery. Until an impaired loan is placed on nonaccrual status, income is recognized on the accrual basis. Collateral analysis is performed on each impaired loan at least quarterly, and results are used to determine if a specific reserve is necessary to adjust the carrying value of each individual loan down to the estimated fair value. Generally, specific reserves are carried against impaired loans based upon estimated collateral value until a confirming loss event occurs or until termination of the credit is scheduled through liquidation of the collateral or foreclosure. There were no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of September 30, 2022. As of December 31, 2021, there was $85,000 in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process. Charge-offs will occur when a confirmed loss is identified. Professional appraisals of collateral, discounted for expected selling costs, appraisal age, economic conditions and other known factors, are used to determine the charge-off amount. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Components of Accumulated Other Comprehensive Income | Components of accumulated other comprehensive income (loss), net of tax, consisted of the following: (Dollars in thousands) September 30, 2022 Gains on Cash Flow Hedges Unrealized Losses on Available for Sale Securities Total Beginning balance, December 31, 2021 $ 427 $ (3,792) $ (3,365) Current period other comprehensive income (loss): Other comprehensive income (loss) before reclassification 944 (40,566) (39,622) Amounts reclassified from accumulated other comprehensive income (loss) (1,040) 1,147 107 Net current period other comprehensive loss (96) (39,419) (39,515) Ending balance, September 30, 2022 $ 331 $ (43,211) $ (42,880) (Dollars in thousands) September 30, 2021 Gains and (Losses) on Cash Flow Hedges Unrealized Gains and (Losses) on Available for Sale Securities Total Beginning balance, December 31, 2020 $ (45) $ 3,563 $ 3,518 Current period other comprehensive income (loss): Other comprehensive income (loss) before reclassification 355 (5,316) (4,961) Amounts reclassified from accumulated other comprehensive income (loss) 34 (46) (12) Net current period other comprehensive income (loss) 389 (5,362) (4,973) Ending balance, September 30, 2021 $ 344 $ (1,799) $ (1,455) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
EARNINGS PER SHARE | |
Computation of Basic and Diluted Earnings per Share | The following tables set forth the computation of basic and diluted earnings per share: (Amounts in thousands, except earnings per share data) Three Months Ended September 30, 2022 2021 Net income $ 2,120 $ 1,897 Weighted-average common shares outstanding 5,003 5,000 Basic earnings per share 0.42 0.38 Weighted-average common shares outstanding $ 5,003 $ 5,000 Common stock equivalents due to effect of stock options 9 11 Total weighted-average common shares and equivalents $ 5,012 $ 5,011 Diluted earnings per share $ 0.42 $ 0.38 Anti-dilutive stock options outstanding — — (Amounts in thousands, except earnings per share data) Nine months ended September 30, 2022 2021 Net income $ 6,218 $ 5,271 Weighted-average common shares outstanding 4,999 5,008 Basic earnings per share 1.24 1.05 Weighted-average common shares outstanding $ 4,999 $ 5,008 Common stock equivalents due to effect of stock options 9 9 Total weighted-average common shares and equivalents $ 5,008 $ 5,017 Diluted earnings per share $ 1.24 $ 1.05 Anti-dilutive stock options outstanding 1 — |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
SECURITIES | |
Debt Securities Available for Sale | The amortized cost and fair value of debt securities available for sale as of September 30, 2022 and December 31, 2021, by contractual maturity, are shown in the tables below. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without prepayment penalties. (Dollars in thousands) September 30, 2022 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Type and Maturity Obligations of U.S. Government sponsored enterprises After one year but within five years $ 20,450 $ 18,118 $ — $ (2,332) After five years but within ten years 28,928 23,832 — (5,096) 49,378 41,950 — (7,428) Obligations of state and political subdivisions After one year but within five years 3,474 3,394 (80) After five years but within ten years 3,877 3,116 — (761) After ten years 1,501 1,171 — (330) 8,852 7,681 — (1,171) Corporate debt securities After one year but within five years 4,688 4,227 — (461) After five years but within ten years 13,000 11,349 — (1,651) 17,688 15,576 — (2,112) Mortgage-backed securities 266,030 222,044 — (43,986) Total $ 341,948 $ 287,251 $ — $ (54,697) (Dollars in thousands) December 31, 2021 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Type and Maturity Obligations of U.S. Government sponsored enterprises After one year but within five years $ 6,000 $ 5,807 $ — $ (193) After five years but within ten years 35,881 34,719 — (1,162) 41,881 40,526 — (1,355) Obligations of state and political subdivisions After one year but within five years 3,810 3,937 129 (2) After five years but within ten years 1,246 1,221 — (25) After ten years 4,118 4,062 — (56) 9,174 9,220 129 (83) Corporate debt securities After one year but within five years 2,000 1,972 — (28) After five years but within ten years 32,408 33,024 805 (189) 34,408 34,996 805 (217) Mortgage-backed securities 254,762 250,682 812 (4,892) Total $ 340,225 $ 335,424 $ 1,746 $ (6,547) |
Summary of Proceeds Received from Sales or Calls of Available for Sale Securities | The following table summarizes proceeds received from sales or calls of available for sale investment securities transactions and the resulting realized gains and losses during the nine months ended September 30, 2022 and 2021. (Dollars in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Gross proceeds from sales and calls of securities $ 6,137 $ 106 $ 23,271 $ 32,975 Securities available for sale: Gross realized gains from sold and called securities $ — $ — $ 25 $ 130 Gross realized losses from sold and called securities (378) — (1,477) (72) Net gains (losses) from sales and calls of securities $ (378) $ — $ (1,452) $ 58 |
Schedule of Gross Unrealized Losses and Fair Value | The following tables show gross unrealized losses and fair values of debt securities available for sale, aggregated by category and length of time the individual securities have been in a continuous unrealized loss position at September 30, 2022 and December 31, 2021. Unrealized Losses at September 30, 2022 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized Securities Value Losses Securities Value Losses Securities Value Losses Obligations of U.S. Government sponsored enterprises 2 $ 6,995 $ (455) 8 $ 34,955 $ (6,973) 10 $ 41,950 $ (7,428) Obligations of state and political subdivisions 5 3,394 (80) 6 4,287 (1,091) 11 7,681 (1,171) Corporate debt securities 6 10,444 (1,556) 3 5,132 (556) 9 15,576 (2,112) Mortgage-backed securities 47 77,474 (9,061) 37 144,570 (34,925) 84 222,044 (43,986) Total temporarily impaired securities 60 $ 98,307 $ (11,152) 54 $ 188,944 $ (43,545) 114 $ 287,251 $ (54,697) Unrealized Losses at December 31, 2021 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized Securities Value Losses Securities Value Losses Securities Value Losses Obligations of U.S. Government sponsored enterprises 5 $ 22,130 $ (752) 3 $ 18,396 $ (603) 8 $ 40,526 $ (1,355) Obligations of state and political subdivisions 7 5,781 (83) — — — 7 5,781 (83) Corporate debt securities 6 10,144 (217) — — — 6 10,144 (217) Mortgage-backed securities 36 182,328 (3,504) 5 26,443 (1,388) 41 208,771 (4,892) Total temporarily impaired securities 54 $ 220,383 $ (4,556) 8 $ 44,839 $ (1,991) 62 $ 265,222 $ (6,547) |
LOANS AND RELATED ALLOWANCE F_3
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | |
Loan Portfolio by Class | The following table presents the loan portfolio by class at September 30, 2022 and December 31, 2021. (Dollars in thousands) September 30, 2022 December 31, 2021 Commercial, financial and agricultural $ 58,585 $ 62,639 Real estate - commercial 189,860 159,806 Real estate - construction 48,108 43,281 Real estate - mortgage 142,149 131,754 Obligations of states and political subdivisions 19,761 16,323 Personal 3,967 4,500 Total $ 462,430 $ 418,303 |
Activity in the Allowance for Loan Losses by Loan Class | The following table summarizes the activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2022 and 2021. (Dollars in thousands) Obligations Commercial, of states financial and Real estate- Real estate- and political Real estate- agricultural commercial construction subdivisions mortgage Personal Total Three Months Ended September 30, 2022 Balance, beginning of period $ 286 $ 934 $ 1,208 $ 56 $ 1,294 $ 35 $ 3,813 Provision for loan losses (4) 129 (123) — 94 4 100 Charge-offs — — — — (22) (4) (26) Recoveries — — — — 18 — 18 Balance, end of period $ 282 $ 1,063 $ 1,085 $ 56 $ 1,384 $ 35 $ 3,905 September 30, 2021 Balance, beginning of period $ 289 $ 1,435 $ 924 $ 33 $ 1,164 $ 61 $ 3,906 Provision for loan losses (9) (104) (81) (5) (54) (4) (257) Charge-offs — — — — — (2) (2) Recoveries — 36 27 — 12 3 78 Balance, end of period $ 280 $ 1,367 $ 870 $ 28 $ 1,122 $ 58 $ 3,725 Nine Months Ended September 30, 2022 Balance, beginning of period $ 251 $ 1,020 $ 884 $ 45 $ 1,269 $ 39 $ 3,508 Provision for loan losses 31 43 201 11 61 3 350 Charge-offs — — — — (23) (9) (32) Recoveries — — — — 77 2 79 Balance, end of period $ 282 $ 1,063 $ 1,085 $ 56 $ 1,384 $ 35 $ 3,905 September 30, 2021 Balance, beginning of period $ 302 $ 908 $ 1,586 $ 28 $ 1,200 $ 70 $ 4,094 Provision for loan losses (29) 423 (799) — (119) (12) (536) Charge-offs — — — — — (10) (10) Recoveries 7 36 83 — 41 10 177 Balance, end of period $ 280 $ 1,367 $ 870 $ 28 $ 1,122 $ 58 $ 3,725 The following table summarizes loans by loan class, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2022 and December 31, 2021. (Dollars in thousands) Obligations Commercial, of states financial and Real estate- Real estate- and political Real estate- agricultural commercial construction subdivisions mortgage Personal Total September 30, 2022 Loans allocated by: Individually evaluated for impairment $ — $ 2,048 $ — $ — $ 387 $ — $ 2,435 Acquired with credit deterioration — 299 — — 424 — 723 Collectively evaluated for impairment 58,585 187,513 48,108 19,761 141,338 3,967 459,272 $ 58,585 $ 189,860 $ 48,108 $ 19,761 $ 142,149 $ 3,967 $ 462,430 Allowance for loan losses allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Acquired with credit deterioration — — — — — — — Collectively evaluated for impairment 282 1,063 1,085 56 1,384 35 3,905 $ 282 $ 1,063 $ 1,085 $ 56 $ 1,384 $ 35 $ 3,905 December 31, 2021 Loans allocated by: Individually evaluated for impairment $ — $ 5,262 $ — $ — $ 437 $ — $ 5,699 Acquired with credit deterioration — 357 — — 481 — 838 Collectively evaluated for impairment 62,639 154,187 43,281 16,323 130,836 4,500 411,766 $ 62,639 $ 159,806 $ 43,281 $ 16,323 $ 131,754 $ 4,500 $ 418,303 Allowance for loan losses allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ 2 $ — $ 2 Acquired with credit deterioration — — — — — — — Collectively evaluated for impairment 251 1,020 884 45 1,267 39 3,506 $ 251 $ 1,020 $ 884 $ 45 $ 1,269 $ 39 $ 3,508 |
Impaired Loans by Loan Portfolio Class | The following table summarizes information regarding impaired loans by portfolio class as of September 30, 2022 and December 31, 2021. One loan was determined to have insufficient collateral as of December 31, 2021, requiring the establishment of a specific reserve of $2,000. (Dollars in thousands) As of September 30, 2022 As of December 31, 2021 Recorded Unpaid Principal Related Recorded Unpaid Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans With no related allowance recorded: Real estate - commercial $ 2,048 $ 2,499 $ — $ 5,262 $ 5,720 $ — Acquired with credit deterioration 299 350 — 357 366 — Real estate – construction — — — — 649 — Real estate - mortgage 387 1,010 — 368 1,054 — Acquired with credit deterioration 424 640 — 481 660 — With an allowance recorded: Real estate - mortgage $ — $ — $ — $ 69 $ 68 $ 2 Total: Real estate - commercial $ 2,048 $ 2,499 $ — $ 5,262 $ 5,720 $ — Acquired with credit deterioration 299 350 — 357 366 — Real estate - construction — — — — 649 — Real estate – mortgage 387 1,010 — 437 1,122 2 Acquired with credit deterioration 424 640 — 481 660 — $ 3,158 $ 4,499 $ — $ 6,537 $ 8,517 $ 2 Average recorded investment of impaired loans and related interest income recognized for the three and nine months ended September 30, 2022 and 2021 are summarized in the tables below. (Dollars in thousands) Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Income Investment Recognized Income Impaired loans With no related allowance recorded: Real estate - commercial $ 2,058 $ 98 $ — $ 5,291 $ 55 $ — Acquired with credit deterioration 341 — — 364 — — Real estate - mortgage 348 4 19 483 3 10 Acquired with credit deterioration 440 — — 595 — — Total: Real estate - commercial $ 2,058 $ 98 $ — $ 5,291 $ 55 $ — Acquired with credit deterioration 341 — — 364 — — Real estate - mortgage 348 4 19 483 3 10 Acquired with credit deterioration 440 — — 595 — — $ 3,187 $ 102 $ 19 $ 6,733 $ 58 $ 10 (Dollars in thousands) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Income Investment Recognized Income Impaired Loans With no related allowance recorded: Real estate - commercial $ 4,187 $ 161 $ — $ 4,346 $ 166 $ — Acquired with credit deterioration 347 — — 345 — — Real estate - mortgage 397 7 29 579 10 30 Acquired with credit deterioration 455 — — 602 — — Total: Real estate - commercial $ 4,187 $ 161 $ — $ 4,346 $ 166 $ — Acquired with credit deterioration 347 — — 345 — — Real estate - mortgage 397 7 29 579 10 30 Acquired with credit deterioration 455 — — 602 — — $ 5,386 $ 168 $ 29 $ 5,872 $ 176 $ 30 |
Nonaccrual Loans by Classes of the Loan Portfolio | The following table presents nonaccrual loans by classes of the loan portfolio as of September 30, 2022 and December 31, 2021. (Dollars in thousands) September 30, 2022 December 31, 2021 Non-accrual loans: Real estate - mortgage $ 142 $ 141 Total $ 142 $ 141 |
Loan Portfolio Summarized by the Past Due Status | The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. Past due status is determined by the contractual terms of the loan. The following tables present the classes of the loan portfolio summarized by the past due status as of September 30, 2022 and December 31, 2021, respectively. Loans Past Due Greater (Dollars in thousands) Greater than 89 30 ‑ 59 Days 60 ‑ 89 Days than 89 Total Past Days and Current Past Due(2) Past Due Days Due Total Loans Accruing(1) As of September 30, 2022 Commercial, financial and agricultural $ 58,560 $ — $ 25 $ — $ 25 $ 58,585 $ — Real estate - commercial 188,870 683 — 8 691 189,561 8 Real estate - construction 48,108 — — — — 48,108 — Real estate - mortgage 141,019 148 445 113 706 141,725 — Obligations of states and political subdivisions 19,761 — — — — 19,761 — Personal 3,959 8 — — 8 3,967 — Subtotal 460,277 839 470 121 1,430 461,707 8 Loans acquired with credit deterioration Real estate - commercial 299 — — — — 299 — Real estate - mortgage 424 — — — — 424 — Subtotal 723 — — — — 723 — $ 461,000 $ 839 $ 470 $ 121 $ 1,430 $ 462,430 $ 8 Loans Past Due Greater (Dollars in thousands) Greater than 89 30 ‑ 59 Days 60 ‑ 89 Days than 89 Total Past Days and Current Past Due(2) Past Due Days Due Total Loans Accruing(1) As of December 31, 2021 Commercial, financial and agricultural $ 62,628 $ 11 $ — $ — $ 11 $ 62,639 $ — Real estate - commercial 159,396 53 — — 53 159,449 — Real estate - construction 43,281 — — — — 43,281 — Real estate - mortgage 130,242 440 488 103 1,031 131,273 85 Obligations of states and political subdivisions 16,323 — — — — 16,323 — Personal 4,492 8 — — 8 4,500 — Subtotal 416,362 512 488 103 1,103 417,465 85 Loans acquired with credit deterioration Real estate - commercial 357 — — — — 357 — Real estate - mortgage 481 — — — — 481 — Subtotal 838 — — — — 838 — $ 417,200 $ 512 $ 488 $ 103 $ 1,103 $ 418,303 $ 85 (1) These loans are guaranteed, or well-secured, and there is an effective means of collection in process. (2) Loans are considered past due when the borrower is in arrears on two or more monthly payments. |
Troubled Debt Restructurings on Financing Receivables | The following table presents the loan whose terms were modified resulting in troubled debt restructuring during the nine months ended September 30, 2021. There were no loan terms modified resulting in troubled debt restructuring during the three and nine months ended September 30, 2022, or the three months ended September 30, 2021. (Dollars in thousands) Pre-Modification Post-Modification Number of Outstanding Outstanding Contracts Recorded Investment Recorded Investment Recorded Investment Nine months ended September 30, 2021 Accruing troubled debt restructurings: Real estate - commercial 1 $ 2,254 $ 2,254 $ 1,854 1 $ 2,254 $ 2,254 $ 1,854 |
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating | The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of September 30, 2022 and December 31, 2021, respectively. (Dollars in thousands) Special As of September 30, 2022 Pass Mention Substandard Doubtful Total Commercial, financial and agricultural $ 57,812 $ 773 $ — $ — $ 58,585 Real estate - commercial 176,300 11,102 2,458 — 189,860 Real estate - construction 46,668 1,440 — — 48,108 Real estate - mortgage 140,901 427 821 — 142,149 Obligations of states and political subdivisions 19,761 — — — 19,761 Personal 3,967 — — — 3,967 Total $ 445,409 $ 13,742 $ 3,279 $ — $ 462,430 (Dollars in thousands) Special As of December 31, 2021 Pass Mention Substandard Doubtful Total Commercial, financial and agricultural $ 61,372 $ 577 $ 690 $ — $ 62,639 Real estate - commercial 137,684 16,429 5,693 — 159,806 Real estate - construction 42,394 — 887 — 43,281 Real estate - mortgage 130,584 252 918 — 131,754 Obligations of states and political subdivisions 16,323 — — — 16,323 Personal 4,500 — — — 4,500 Total $ 392,857 $ 17,258 $ 8,188 $ — $ 418,303 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Amortization Schedule for Intangible Assets | The following table shows the amortization schedule for each of the intangible assets recorded. (Dollars in thousands) FNBPA LCB Acquisition Acquisition Core Core Deposit Deposit Intangible Intangible Beginning Balance at Acquisition Date $ 303 $ 289 Amortization expense recorded prior to January 1, 2021 223 128 Amortization expense recorded in the twelve months ended December 31, 2021 27 39 Unamortized balance as of December 31, 2021 53 122 Amortization expense recorded in the nine months ended September 30, 2022 16 25 Unamortized balance as of September 30, 2022 $ 37 $ 97 Scheduled remaining amortization expense for years ended: December 31, 2022 $ 6 $ 8 December 31, 2023 16 28 December 31, 2024 10 23 December 31, 2025 5 17 December 31, 2026 — 12 Thereafter — 9 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
BORROWINGS | |
Schedule of Borrowings | Borrowings consisted of the following as of September 30, 2022 and December 31, 2021. (Dollars in thousands) September 30, December 31, 2022 2021 Securities sold under agreements to repurchase $ 6,869 $ 4,227 Overnight advances with FHLB 9,000 — Short-term debt with FHLB 20,000 — Long-term debt with FHLB 20,000 20,000 $ 55,869 $ 24,227 |
Scheduled Maturities of Long-Term Debt | Long-term debt is comprised only of Federal Home Loan Bank (“FHLB”) advances with an original maturity of one year or more. The following table summarizes the scheduled maturities of long-term debt as of September 30, 2022. (Dollars in thousands) Scheduled Weighted Average Year Maturities Interest Rate 2022 $ — — % 2023 — — 2024 15,000 2.29 2025 5,000 2.41 2026 — — Thereafter — — $ 20,000 2.32 % |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
STOCK COMPENSATION PLAN | |
Summary of Non-Vested Restricted Shares Activity | The following table presents a summary of the status of the Company’s non-vested restricted stock awards as of September 30, 2022, and changes during the period then ended is presented below: Weighted Average Grant Date Shares Fair Value Non-vested at January 1, 2022 22,789 $ 18.48 Vested (11,475) 18.72 Forfeited (825) 17.32 Granted 10,486 15.90 Non-vested at September 30, 2022 20,975 $ 17.10 |
Schedule of Stock Options Activity | A summary of the status of the outstanding stock options as of September 30, 2022, and changes during the period then ended, is presented below: Weighted Average Exercise Shares Price Outstanding at beginning of year 71,947 $ 17.78 Granted — — Exercised — — Expired (11,600) 18.00 Outstanding at end of year 60,347 $ 17.74 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
FAIR VALUE MEASUREMENT | |
Fair Value Measurements by Level of Valuation Inputs | The following tables summarize financial assets and financial liabilities measured at fair value as of September 30, 2022 and December 31, 2021 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. There were no assets measured at fair value on a non-recurring basis as of September 30, 2022 or December 31, 2021. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other for Identical Observable Unobservable September 30, 2022 Assets Inputs Inputs Total Assets measured at fair value on a recurring basis: Debt securities available for sale: Obligations of U.S. Government agencies and corporations $ — $ 41,950 $ — $ 41,950 Obligations of state and political subdivisions — 7,681 — 7,681 Corporate debt securities — 8,228 7,348 15,576 Mortgage-backed securities — 222,044 — 222,044 Total debt securities available for sale $ — $ 279,903 $ 7,348 $ 287,251 Equity securities $ 1,014 $ — $ — $ 1,014 Mortgage servicing rights $ — $ — $ 96 $ 96 Interest rate swaps $ — $ 419 $ — $ 419 (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other for Identical Observable Unobservable December 31, 2021 Assets Inputs Inputs Total Assets measured at fair value on a recurring basis: Debt securities available for sale: Obligations of U.S. Government agencies and corporations $ — $ 40,526 $ — $ 40,526 Obligations of state and political subdivisions — 9,220 — 9,220 Corporate debt securities — 30,476 4,520 34,996 Mortgage-backed securities — 250,682 — 250,682 Total debt securities available for sale $ — $ 330,904 $ 4,520 $ 335,424 Equity securities $ 1,124 $ — $ — $ 1,124 Mortgage servicing rights $ — $ — $ 120 $ 120 Interest rate swaps $ — $ 541 $ — $ 541 |
Reconciliation of Investment Securities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The table below presents a reconciliation of the beginning and ending balances of investment securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine month periods ended September 30, 2022 and 2021. Three Months Ended Nine Months Ended (Dollars in thousands) September 30, September 30, 2022 2021 2022 2021 Investment Securities: Beginning balance $ 7,788 $ 4,500 $ 4,520 $ 2,000 Total gains (loss) included in OCI (440) 20 (1,172) 20 Purchases — — 4,000 2,500 Principal payments and other — — — — Sales — — — — Balance, end of period $ 7,348 $ 4,520 $ 7,348 $ 4,520 |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: Financial Instruments (Dollars in thousands) September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and due from banks $ 13,325 $ 13,325 $ 12,928 $ 12,928 Interest bearing deposits with banks 102 102 598 598 Interest bearing time deposits with banks — — 735 735 Securities 288,265 288,265 336,548 336,548 Restricted investment in bank stock 3,104 N/A 2,116 N/A Loans, net of allowance for loan losses 458,525 458,754 414,795 414,984 Interest rate swaps 419 419 541 541 Accrued interest receivable 1,907 1,907 1,814 1,814 Financial liabilities: Non-interest bearing deposits $ 202,493 $ 202,493 $ 182,022 $ 182,022 Interest bearing deposits 515,341 512,082 526,425 528,952 Securities sold under agreements to repurchase 6,869 N/A 4,227 N/A Short-term borrowings 20,000 19,995 — — Long-term debt 20,000 19,133 20,000 20,520 Other interest bearing liabilities 995 990 1,568 1,568 Accrued interest payable 215 215 252 252 Off-balance sheet financial instruments: Commitments to extend credit $ — $ — $ — $ — Letters of credit — — — — |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments not previously disclosed as of September 30, 2022 and December 31, 2021. The tables exclude financial instruments for which the carrying amount approximates fair value. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other Carrying for Identical Observable Unobservable Amount Fair Value Assets or Liabilities Inputs Inputs September 30, 2022 Financial instruments - Assets Loans, net of allowance for loan losses $ 458,525 $ 458,754 $ — $ — $ 458,754 Financial instruments - Liabilities Interest bearing deposits $ 515,341 $ 512,082 $ — $ 512,082 $ — Long-term debt 20,000 19,133 — 19,133 — Other interest bearing liabilities 995 990 — 990 — (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other Carrying for Identical Observable Unobservable Amount Fair Value Assets or Liabilities Inputs Inputs December 31, 2021 Financial instruments - Assets Interest bearing time deposits with banks $ 735 $ 735 $ — $ 735 $ — Loans, net of allowance for loan losses 414,795 414,984 — — 414,984 Financial instruments - Liabilities Interest bearing deposits $ 526,425 $ 528,952 $ — $ 528,952 $ — Long-term debt 20,000 20,520 — 20,520 — Other interest bearing liabilities 1,568 1,568 — 1,568 — |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
DERIVATIVES | |
Schedule of Derivatives Recorded on the Consolidated Statements of Condition | The following table reflects the notional amounts and fair values of derivatives recorded on the Consolidated Statements of Condition as of September 30, 2022 and December 31, 2021. (Dollars in thousands) September 30, 2022 December 31, 2021 Fair Fair Value Value Notional Asset Notional Asset Derivatives designated as hedges: Amount (Liability) Amount (Liability) Interest rate swap - pay fixed / receive floating on 3-month brokered deposit $ — $ — $ 20,000 $ 52 Interest rate swap - pay fixed / receive floating on 3-month FHLB advance 20,000 419 — — Interest rate swaps - forward-starting on long-term FHLB advances — — 20,000 489 |
Schedule of Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income | The effect of cash flow hedge accounting on accumulated other comprehensive income for the periods ended September 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) September 30, 2022 Amount of Gain Location of (Gain) Amount of (Gain) (Loss) Recognized in Loss Reclassified Loss Reclassified OCI on Derivatives from OCI into Income from OCI into Income Interest rate contract $ (7) Interest expense on short-term borrowings and repurchase agreements $ (115) Swap termination gain 1,202 Other non-interest income (1,202) Total $ 1,195 $ (1,317) (Dollars in thousands) December 31, 2021 Amount of Gain Location of (Gain) Amount of (Gain) (Loss) Recognized in Loss Reclassified Loss Reclassified OCI on Derivatives from OCI into Income from OCI into Income Interest rate contracts $ 538 Interest expense on short-term borrowings and repurchase agreements $ 60 Total $ 538 $ 60 |
Schedule of Effect of Cash Flow Hedge Accounting on the Consolidated Statements of Income | The effect of cash flow hedge accounting on the Consolidated Statements of Income for the three and nine months ended September 30, 2022 and 2021 is as follows: Amount of Gain or Loss Recognized in Income on Cash Flow Hedging Relationships Income (Expense) Income (Expense) Three Months Ended Nine Months Ended (Dollars in thousands) September 30, September 30, 2022 2021 2022 2021 Effects of cash flow hedging: Loss on cash flow hedging relationships: Amount reclassified from AOCI into income $ 99 $ (17) $ 115 $ (43) Amount reclassified from AOCI into income for swap termination (13) — 1,202 — Total $ 86 $ (17) $ 1,317 $ (43) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Beginning balance | $ 46,425 | $ 73,749 | $ 71,290 | $ 76,597 |
Net current period other comprehensive loss | (12,570) | (1,481) | (39,515) | (4,973) |
Ending balance | 34,905 | 73,103 | 34,905 | 73,103 |
Accumulated Other Comprehensive Loss [Member] | ||||
Beginning balance | (30,310) | 26 | (3,365) | 3,518 |
Other comprehensive income (loss) before reclassification | (39,622) | (4,961) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 107 | (12) | ||
Net current period other comprehensive loss | (12,570) | (1,481) | (39,515) | (4,973) |
Ending balance | (42,880) | (1,455) | (42,880) | (1,455) |
Unrealized Gains and Losses on Cash Flow Hedges [Member] | ||||
Beginning balance | 427 | (45) | ||
Other comprehensive income (loss) before reclassification | 944 | 355 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,040) | 34 | ||
Net current period other comprehensive loss | (96) | 389 | ||
Ending balance | 331 | 344 | 331 | 344 |
Unrealized Gains and Losses on Available for Sale Securities [Member] | ||||
Beginning balance | (3,792) | 3,563 | ||
Other comprehensive income (loss) before reclassification | (40,566) | (5,316) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,147 | (46) | ||
Net current period other comprehensive loss | (39,419) | (5,362) | ||
Ending balance | $ (43,211) | $ (1,799) | $ (43,211) | $ (1,799) |
EARNINGS PER SHARE (Computation
EARNINGS PER SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
EARNINGS PER SHARE | ||||
Net income | $ 2,120 | $ 1,897 | $ 6,218 | $ 5,271 |
Weighted-average common shares outstanding | 5,003 | 5,000 | 4,999 | 5,008 |
Basic earnings per share | $ 0.42 | $ 0.38 | $ 1.24 | $ 1.05 |
Common stock equivalents due to effect of stock options | 9 | 11 | 9 | 9 |
Total weighted-average common shares and equivalents | 5,012 | 5,011 | 5,008 | 5,017 |
Diluted earnings per share | $ 0.42 | $ 0.38 | $ 1.24 | $ 1.05 |
Anti-dilutive stock options outstanding | 1 |
SECURITIES (Narrative) (Details
SECURITIES (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 USD ($) security | Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) security | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) security | |
Sales of debt securities available for sale | $ 23,271,000 | $ 119,000 | ||||
Debt securities available for sale | $ 287,251,000 | 287,251,000 | $ 335,424,000 | |||
Equity securities | $ 1,014,000 | $ 1,014,000 | $ 1,124,000 | |||
Securities in unrealized loss position | security | 114 | 114 | 62 | |||
Realized gain (loss) on equity securities | $ (30,000) | $ 38,000 | $ (110,000) | $ 139,000 | ||
Obligations of U.S. Government Agencies and Corporations [Member] | ||||||
Investment portfolio percentage | 15% | 15% | ||||
Debt securities available for sale | $ 41,950,000 | $ 41,950,000 | $ 40,526,000 | |||
Carrying value of pledged assets | $ 100,000,000 | $ 100,000,000 | $ 82,700,000 | |||
Securities in unrealized loss position | security | 10 | 10 | 8 | |||
Obligations of State and Political Subdivisions [Member] | ||||||
Investment portfolio percentage | 3% | 3% | ||||
Debt securities available for sale | $ 7,681,000 | $ 7,681,000 | $ 9,220,000 | |||
Debt Securities Maturity Term | 5 years | |||||
Securities in unrealized loss position | security | 11 | 11 | 7 | |||
Corporate Debt Securities [Member] | ||||||
Investment portfolio percentage | 5% | 5% | ||||
Debt securities available for sale | $ 15,576,000 | $ 15,576,000 | $ 34,996,000 | |||
Securities in unrealized loss position | security | 9 | 9 | 6 | |||
Debt security | $ 24,700,000 | |||||
Realized gain (loss) on debt securities | $ 1,500,000 | |||||
Mortgage-Backed Securities [Member] | ||||||
Investment portfolio percentage | 77% | 77% | ||||
Other than temporary impairment | $ 0 | $ 0 | ||||
Securities in unrealized loss position | security | 84 | 84 | 41 | |||
Federal Farm Credit Bank [Member] | ||||||
Debt securities available for sale | $ 10,800,000 | $ 10,800,000 | $ 12,400,000 | |||
Pennsylvania Housing Finance [Member] | ||||||
Debt securities available for sale | $ 6,100,000 | $ 6,100,000 | $ 7,500,000 |
SECURITIES (Debt Securities Ava
SECURITIES (Debt Securities Available for Sale) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost of AFS Securities, Total | $ 341,948 | $ 340,225 |
Fair Value of AFS Securities, Total | 287,251 | 335,424 |
Gross Unrealized Gains on AFS Securities, Total | 0 | 1,746 |
Gross Unrealized Losses on AFS Securities, Total | (54,697) | (6,547) |
Obligations of U.S. Government Agencies and Corporations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost of AFS Securities Maturing After One Year But Within Five Years | 20,450 | 6,000 |
Amortized Cost of AFS Securities Maturing After Five Years But Within Ten Years | 28,928 | 35,881 |
Amortized Cost of AFS Securities, Total | 49,378 | 41,881 |
Fair Value of AFS Securities Maturing After One Year But Within Five Years | 18,118 | 5,807 |
Fair Value of AFS Securities Maturing After Five Years But Within Ten Years | 23,832 | 34,719 |
Fair Value of AFS Securities, Total | 41,950 | 40,526 |
Gross Unrealized Gains on AFS Securities Maturing After One Year But Within Five Years | 0 | 0 |
Gross Unrealized Gains on AFS Securities Maturing After Five Years But Within ten Years | 0 | 0 |
Gross Unrealized Gains on AFS Securities, Total | 0 | 0 |
Gross Unrealized Losses on AFS Securities Maturing After One Year But Within Five Years | (2,332) | (193) |
Gross Unrealized Losses on AFS Securities Maturing After Five Years But Within Ten Years | (5,096) | (1,162) |
Gross Unrealized Losses on AFS Securities, Total | (7,428) | (1,355) |
Obligations of State and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost of AFS Securities Maturing After One Year But Within Five Years | 3,474 | 3,810 |
Amortized Cost of AFS Securities Maturing After Five Years But Within Ten Years | 3,877 | 1,246 |
Amortized Cost of AFS Securities Maturing After Ten Years | 1,501 | 4,118 |
Amortized Cost of AFS Securities, Total | 8,852 | 9,174 |
Fair Value of AFS Securities Maturing After One Year But Within Five Years | 3,394 | 3,937 |
Fair Value of AFS Securities Maturing After Five Years But Within Ten Years | 3,116 | 1,221 |
Fair Value of AFS Securities Maturing After Ten Years | 1,171 | 4,062 |
Fair Value of AFS Securities, Total | 7,681 | 9,220 |
Gross Unrealized Gains on AFS Securities Maturing After One Year But Within Five Years | 129 | |
Gross Unrealized Gains on AFS Securities Maturing After Five Years But Within ten Years | 0 | 0 |
Gross Unrealized Gains on AFS Securities Maturing After ten Years | 0 | 0 |
Gross Unrealized Gains on AFS Securities, Total | 0 | 129 |
Gross Unrealized Losses on AFS Securities Maturing After One Year But Within Five Years | (80) | (2) |
Gross Unrealized Losses on AFS Securities Maturing After Five Years But Within Ten Years | (761) | (25) |
Gross Unrealized Losses on AFS Securities Maturing After Ten Years | (330) | (56) |
Gross Unrealized Losses on AFS Securities, Total | (1,171) | (83) |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost of AFS Securities Maturing After One Year But Within Five Years | 4,688 | 2,000 |
Amortized Cost of AFS Securities Maturing After Five Years But Within Ten Years | 13,000 | 32,408 |
Amortized Cost of AFS Securities, Total | 17,688 | 34,408 |
Fair Value of AFS Securities Maturing After One Year But Within Five Years | 4,227 | 1,972 |
Fair Value of AFS Securities Maturing After Five Years But Within Ten Years | 11,349 | 33,024 |
Fair Value of AFS Securities, Total | 15,576 | 34,996 |
Gross Unrealized Gains on AFS Securities Maturing After One Year But Within Five Years | 0 | 0 |
Gross Unrealized Gains on AFS Securities Maturing After Five Years But Within ten Years | 0 | 805 |
Gross Unrealized Gains on AFS Securities, Total | 0 | 805 |
Gross Unrealized Losses on AFS Securities Maturing After One Year But Within Five Years | (461) | (28) |
Gross Unrealized Losses on AFS Securities Maturing After Five Years But Within Ten Years | (1,651) | (189) |
Gross Unrealized Losses on AFS Securities, Total | (2,112) | (217) |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost of AFS Securities Without Single Maturity Date | 266,030 | 254,762 |
Fair Value of AFS Securities Without Single Maturity Date | 222,044 | 250,682 |
Gross Unrealized Gains on AFS Securities Without Single Maturity Date | 0 | 812 |
Gross Unrealized Losses on AFS Securities Without Single Maturity Date | $ (43,986) | $ (4,892) |
SECURITIES (Summary of Proceeds
SECURITIES (Summary of Proceeds Received from Sales or Calls of Available for Sale Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
SECURITIES | ||||
Gross proceeds from sales and calls of securities | $ 6,137 | $ 106 | $ 23,271 | $ 32,975 |
Gross realized gains from sold and called securities | 25 | 130 | ||
Gross realized losses from sold and called securities | (378) | (1,477) | (72) | |
Net gains (losses) from sales and calls of securities | $ (378) | $ (1,452) | $ 58 |
SECURITIES (Schedule of Unreali
SECURITIES (Schedule of Unrealized Losses) (Details) $ in Thousands | Sep. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 60 | 54 |
Fair Value, Less Than 12 Months | $ 98,307 | $ 220,383 |
Unrealized Losses, Less Than 12 Months | $ (11,152) | $ (4,556) |
Number of Securities, 12 Months or More | security | 54 | 8 |
Fair Value, 12 Months or More | $ 188,944 | $ 44,839 |
Unrealized Losses, 12 Months or More | $ (43,545) | $ (1,991) |
Number of Securities, Total | security | 114 | 62 |
Fair Value, Total | $ 287,251 | $ 265,222 |
Unrealized Losses, Total | $ (54,697) | $ (6,547) |
Obligations of U.S. Government Agencies and Corporations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 2 | 5 |
Fair Value, Less Than 12 Months | $ 6,995 | $ 22,130 |
Unrealized Losses, Less Than 12 Months | $ (455) | $ (752) |
Number of Securities, 12 Months or More | security | 8 | 3 |
Fair Value, 12 Months or More | $ 34,955 | $ 18,396 |
Unrealized Losses, 12 Months or More | $ (6,973) | $ (603) |
Number of Securities, Total | security | 10 | 8 |
Fair Value, Total | $ 41,950 | $ 40,526 |
Unrealized Losses, Total | $ (7,428) | $ (1,355) |
Obligations of State and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 5 | 7 |
Fair Value, Less Than 12 Months | $ 3,394 | $ 5,781 |
Unrealized Losses, Less Than 12 Months | $ (80) | $ (83) |
Number of Securities, 12 Months or More | security | 6 | 0 |
Fair Value, 12 Months or More | $ 4,287 | $ 0 |
Unrealized Losses, 12 Months or More | $ (1,091) | $ 0 |
Number of Securities, Total | security | 11 | 7 |
Fair Value, Total | $ 7,681 | $ 5,781 |
Unrealized Losses, Total | $ (1,171) | $ (83) |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 6 | 6 |
Fair Value, Less Than 12 Months | $ 10,444 | $ 10,144 |
Unrealized Losses, Less Than 12 Months | $ (1,556) | $ (217) |
Number of Securities, 12 Months or More | security | 3 | 0 |
Fair Value, 12 Months or More | $ 5,132 | $ 0 |
Unrealized Losses, 12 Months or More | $ (556) | $ 0 |
Number of Securities, Total | security | 9 | 6 |
Fair Value, Total | $ 15,576 | $ 10,144 |
Unrealized Losses, Total | $ (2,112) | $ (217) |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 47 | 36 |
Fair Value, Less Than 12 Months | $ 77,474 | $ 182,328 |
Unrealized Losses, Less Than 12 Months | $ (9,061) | $ (3,504) |
Number of Securities, 12 Months or More | security | 37 | 5 |
Fair Value, 12 Months or More | $ 144,570 | $ 26,443 |
Unrealized Losses, 12 Months or More | $ (34,925) | $ (1,388) |
Number of Securities, Total | security | 84 | 41 |
Fair Value, Total | $ 222,044 | $ 208,771 |
Unrealized Losses, Total | $ (43,986) | $ (4,892) |
LOANS AND RELATED ALLOWANCE F_4
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 USD ($) loan | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) loan | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) loan | May 31, 2021 USD ($) loan | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Troubled debt restructured loan | $ 2,300,000 | $ 2,300,000 | $ 5,600,000 | ||||
Reserves relating to TDR | 0 | 0 | $ 0 | ||||
Payment of TDR loans | 3,100,000 | ||||||
Restructured loan balance in default status | $ 0 | $ 0 | $ 0 | $ 0 | |||
Modified trouble debt, number of contracts | loan | 0 | 0 | 0 | ||||
Credit quality indicators information | This analysis includes loans to commercial customers with an aggregate loan exposure greater than $500,000 and for lines of credit more than $50,000. | ||||||
Number of loans with insufficient collateral | loan | 1 | ||||||
Amount of loans with insufficient collateral requiring specific reserve | $ 2,000 | ||||||
Amount of payoff of a special mention loan | $ 3,100,000 | $ 2,900,000 | |||||
Paycheck Protection Program [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Number of Loans Funded under Paycheck Protection Program | loan | 4 | 4 | 194 | 870 | |||
Amount of Loan Funded under Paycheck Protection Program | $ 25,000 | $ 25,000 | $ 10,100,000 | $ 51,000,000 | |||
Deferred fees of PPP loans | $ 3,000 | 485,000 | |||||
Home Equity Lines of Credit [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Maximum loan-to-value ratio | 90% | ||||||
Home Equity Installment Loan [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Maximum loan-to-value ratio | 80% | ||||||
Commercial Portfolio Segment [Member] | Commercial Loan [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Maximum loan-to-value ratio | 80% | ||||||
Consumer Portfolio Segment [Member] | Mortgage Loan [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Maximum loan-to-value ratio | 80% | ||||||
Loan balance in the process of foreclosure | $ 0 | $ 0 | $ 85,000 |
LOANS AND RELATED ALLOWANCE F_5
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Loan Portfolio by Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 462,430 | $ 418,303 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 58,585 | 62,639 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 189,860 | 159,806 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 48,108 | 43,281 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 142,149 | 131,754 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 19,761 | 16,323 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 3,967 | $ 4,500 |
LOANS AND RELATED ALLOWANCE F_6
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Activity in the Allowance for Loan Losses by Loan Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | $ 3,813 | $ 3,906 | $ 3,508 | $ 4,094 | |
Provision for loan losses | 100 | (257) | 350 | (536) | |
Charge-offs | (26) | (2) | (32) | (10) | |
Recoveries | 18 | 78 | 79 | 177 | |
Ending balance | 3,905 | 3,725 | 3,905 | 3,725 | |
Loans allocated by: individually evaluated for impairment | 2,435 | 2,435 | $ 5,699 | ||
Loans allocated by: collectively evaluated for impairment | 459,272 | 459,272 | 411,766 | ||
Financing receivable - Loans allocated | 462,430 | 462,430 | 418,303 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 2 | ||
Allowance for loan losses allocated by: collectively evaluated for impairment | 3,905 | 3,905 | 3,506 | ||
Financing receivable - Allowance for loan losses | 3,905 | 3,905 | 3,508 | ||
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 286 | 289 | 251 | 302 | |
Provision for loan losses | (4) | (9) | 31 | (29) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 7 | |
Ending balance | 282 | 280 | 282 | 280 | |
Loans allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Loans allocated by: collectively evaluated for impairment | 58,585 | 58,585 | 62,639 | ||
Financing receivable - Loans allocated | 58,585 | 58,585 | 62,639 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses allocated by: collectively evaluated for impairment | 282 | 282 | 251 | ||
Financing receivable - Allowance for loan losses | 282 | 282 | 251 | ||
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 934 | 1,435 | 1,020 | 908 | |
Provision for loan losses | 129 | (104) | 43 | 423 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 36 | 0 | 36 | |
Ending balance | 1,063 | 1,367 | 1,063 | 1,367 | |
Loans allocated by: individually evaluated for impairment | 2,048 | 2,048 | 5,262 | ||
Loans allocated by: collectively evaluated for impairment | 187,513 | 187,513 | 154,187 | ||
Financing receivable - Loans allocated | 189,860 | 189,860 | 159,806 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses allocated by: collectively evaluated for impairment | 1,063 | 1,063 | 1,020 | ||
Financing receivable - Allowance for loan losses | 1,063 | 1,063 | 1,020 | ||
Construction Loan [Member] | Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 1,208 | 924 | 884 | 1,586 | |
Provision for loan losses | (123) | (81) | 201 | (799) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 27 | 0 | 83 | |
Ending balance | 1,085 | 870 | 1,085 | 870 | |
Loans allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Loans allocated by: collectively evaluated for impairment | 48,108 | 48,108 | 43,281 | ||
Financing receivable - Loans allocated | 48,108 | 48,108 | 43,281 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses allocated by: collectively evaluated for impairment | 1,085 | 1,085 | 884 | ||
Financing receivable - Allowance for loan losses | 1,085 | 1,085 | 884 | ||
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 56 | 33 | 45 | 28 | |
Provision for loan losses | 0 | (5) | 11 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Ending balance | 56 | 28 | 56 | 28 | |
Loans allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Loans allocated by: collectively evaluated for impairment | 19,761 | 19,761 | 16,323 | ||
Financing receivable - Loans allocated | 19,761 | 19,761 | 16,323 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses allocated by: collectively evaluated for impairment | 56 | 56 | 45 | ||
Financing receivable - Allowance for loan losses | 56 | 56 | 45 | ||
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 1,294 | 1,164 | 1,269 | 1,200 | |
Provision for loan losses | 94 | (54) | 61 | (119) | |
Charge-offs | (22) | 0 | (23) | 0 | |
Recoveries | 18 | 12 | 77 | 41 | |
Ending balance | 1,384 | 1,122 | 1,384 | 1,122 | |
Loans allocated by: individually evaluated for impairment | 387 | 387 | 437 | ||
Loans allocated by: collectively evaluated for impairment | 141,338 | 141,338 | 130,836 | ||
Financing receivable - Loans allocated | 142,149 | 142,149 | 131,754 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 2 | ||
Allowance for loan losses allocated by: collectively evaluated for impairment | 1,384 | 1,384 | 1,267 | ||
Financing receivable - Allowance for loan losses | 1,384 | 1,384 | 1,269 | ||
Personal Loan [Member] | Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 35 | 61 | 39 | 70 | |
Provision for loan losses | 4 | (4) | 3 | (12) | |
Charge-offs | (4) | (2) | (9) | (10) | |
Recoveries | 0 | 3 | 2 | 10 | |
Ending balance | 35 | $ 58 | 35 | $ 58 | |
Loans allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Loans allocated by: collectively evaluated for impairment | 3,967 | 3,967 | 4,500 | ||
Financing receivable - Loans allocated | 3,967 | 3,967 | 4,500 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses allocated by: collectively evaluated for impairment | 35 | 35 | 39 | ||
Financing receivable - Allowance for loan losses | 35 | 35 | 39 | ||
Acquired with Credit Deterioration [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans allocated by: individually evaluated for impairment | 723 | 723 | 838 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Acquired with Credit Deterioration [Member] | Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Acquired with Credit Deterioration [Member] | Commercial Loan [Member] | Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans allocated by: individually evaluated for impairment | 299 | 299 | 357 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Acquired with Credit Deterioration [Member] | Construction Loan [Member] | Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Acquired with Credit Deterioration [Member] | Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Acquired with Credit Deterioration [Member] | Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans allocated by: individually evaluated for impairment | 424 | 424 | 481 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Acquired with Credit Deterioration [Member] | Personal Loan [Member] | Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans allocated by: individually evaluated for impairment | 0 | 0 | 0 | ||
Allowance for loan losses allocated by: individually evaluated for impairment | $ 0 | $ 0 | $ 0 |
LOANS AND RELATED ALLOWANCE F_7
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans: Related Allowance | $ 2 | |
Recorded Investment, Total | $ 3,158 | 6,537 |
Unpaid Principal Balance, Total | 4,499 | 8,517 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 2,048 | 5,262 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 2,499 | 5,720 |
Impaired Loans: Related Allowance | 0 | 0 |
Recorded Investment, Total | 2,048 | 5,262 |
Unpaid Principal Balance, Total | 2,499 | 5,720 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 299 | 357 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 350 | 366 |
Impaired Loans: Related Allowance | 0 | 0 |
Recorded Investment, Total | 299 | 357 |
Unpaid Principal Balance, Total | 350 | 366 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 0 | 649 |
Impaired Loans: Related Allowance | 0 | 0 |
Recorded Investment, Total | 0 | 0 |
Unpaid Principal Balance, Total | 0 | 649 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 387 | 368 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,010 | 1,054 |
Impaired Loans with an Allowance: Recorded Investment | 69 | |
Impaired Loans with an Allowance: Unpaid Principal Balance | 68 | |
Impaired Loans: Related Allowance | 0 | 2 |
Recorded Investment, Total | 387 | 437 |
Unpaid Principal Balance, Total | 1,010 | 1,122 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 424 | 481 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 640 | 660 |
Impaired Loans: Related Allowance | 0 | 0 |
Recorded Investment, Total | 424 | 481 |
Unpaid Principal Balance, Total | $ 640 | $ 660 |
LOANS AND RELATED ALLOWANCE F_8
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment, Total | $ 3,187 | $ 6,733 | $ 5,386 | $ 5,872 |
Interest Income Recognized, Total | 102 | 58 | 168 | 176 |
Cash Basis Interest Income, Total | 19 | 10 | 29 | 30 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance, Average Recorded Investment | 2,058 | 5,291 | 4,187 | 4,346 |
Impaired Loans with No Allowance, Interest Income Recognized | 98 | 55 | 161 | 166 |
Impaired Loans with No Allowance, Cash Basis Interest Income | 0 | 0 | 0 | 0 |
Average Recorded Investment, Total | 2,058 | 5,291 | 4,187 | 4,346 |
Interest Income Recognized, Total | 98 | 55 | 161 | 166 |
Cash Basis Interest Income, Total | 0 | 0 | 0 | 0 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance, Average Recorded Investment | 348 | 483 | 397 | 579 |
Impaired Loans with No Allowance, Interest Income Recognized | 4 | 3 | 7 | 10 |
Impaired Loans with No Allowance, Cash Basis Interest Income | 19 | 10 | 29 | 30 |
Average Recorded Investment, Total | 348 | 483 | 397 | 579 |
Interest Income Recognized, Total | 4 | 3 | 7 | 10 |
Cash Basis Interest Income, Total | 19 | 10 | 29 | 30 |
Acquired with Credit Deterioration [Member] | Commercial Loan [Member] | Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance, Average Recorded Investment | 341 | 364 | 347 | 345 |
Impaired Loans with No Allowance, Interest Income Recognized | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance, Cash Basis Interest Income | 0 | 0 | 0 | 0 |
Average Recorded Investment, Total | 341 | 364 | 347 | 345 |
Interest Income Recognized, Total | 0 | 0 | 0 | 0 |
Cash Basis Interest Income, Total | 0 | 0 | 0 | 0 |
Acquired with Credit Deterioration [Member] | Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance, Average Recorded Investment | 440 | 595 | 455 | 602 |
Impaired Loans with No Allowance, Interest Income Recognized | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance, Cash Basis Interest Income | 0 | 0 | 0 | 0 |
Average Recorded Investment, Total | 440 | 595 | 455 | 602 |
Interest Income Recognized, Total | 0 | 0 | 0 | 0 |
Cash Basis Interest Income, Total | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS AND RELATED ALLOWANCE F_9
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Nonaccrual Loans by Classes of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | $ 142 | $ 141 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | $ 142 | $ 141 |
LOANS AND RELATED ALLOWANCE _10
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Loan Portfolio Summarized by the Past Due Status) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | $ 462,430 | $ 418,303 |
Total loans | 462,430 | 418,303 |
Loans Past Due Greater than 89 Days and Accruing | 8 | 85 |
Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 461,707 | 417,465 |
Loans Past Due Greater than 89 Days and Accruing | 8 | 85 |
Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 723 | 838 |
Loans Past Due Greater than 89 Days and Accruing | 0 | 0 |
Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 461,000 | 417,200 |
Current [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 460,277 | 416,362 |
Current [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 723 | 838 |
Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 1,430 | 1,103 |
Total Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 1,430 | 1,103 |
Total Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 839 | 512 |
30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 839 | 512 |
30-59 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 470 | 488 |
60-89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 470 | 488 |
60-89 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Greater than 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 121 | 103 |
Greater than 89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 121 | 103 |
Greater than 89 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 58,585 | 62,639 |
Total loans | 58,585 | 62,639 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 58,585 | 62,639 |
Loans Past Due Greater than 89 Days and Accruing | 0 | 0 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Current [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 58,560 | 62,628 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Total Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 25 | 11 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 11 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | 60-89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 25 | 0 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Greater than 89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 189,860 | 159,806 |
Total loans | 189,860 | 159,806 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 189,561 | 159,449 |
Loans Past Due Greater than 89 Days and Accruing | 8 | 0 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 299 | 357 |
Loans Past Due Greater than 89 Days and Accruing | 0 | 0 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Current [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 188,870 | 159,396 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Current [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 299 | 357 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Total Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 691 | 53 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Total Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 683 | 53 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | 60-89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | 60-89 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Greater than 89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 8 | 0 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Greater than 89 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 48,108 | 43,281 |
Total loans | 48,108 | 43,281 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 48,108 | 43,281 |
Loans Past Due Greater than 89 Days and Accruing | 0 | 0 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | Current [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 48,108 | 43,281 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | Total Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | 60-89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | Greater than 89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 142,149 | 131,754 |
Total loans | 142,149 | 131,754 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 141,725 | 131,273 |
Loans Past Due Greater than 89 Days and Accruing | 0 | 85 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 424 | 481 |
Loans Past Due Greater than 89 Days and Accruing | 0 | 0 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Current [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 141,019 | 130,242 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Current [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 424 | 481 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Total Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 706 | 1,031 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Total Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 148 | 440 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | 60-89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 445 | 488 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | 60-89 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Greater than 89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 113 | 103 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Greater than 89 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 19,761 | 16,323 |
Total loans | 19,761 | 16,323 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 19,761 | 16,323 |
Loans Past Due Greater than 89 Days and Accruing | 0 | 0 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | Current [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 19,761 | 16,323 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | Total Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | 60-89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | Greater than 89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 3,967 | 4,500 |
Total loans | 3,967 | 4,500 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 3,967 | 4,500 |
Loans Past Due Greater than 89 Days and Accruing | 0 | 0 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Current [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 3,959 | 4,492 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Total Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 8 | 8 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 8 | 8 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | 60-89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | 0 | 0 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Greater than 89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, gross | $ 0 | $ 0 |
LOANS AND RELATED ALLOWANCE _11
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Troubled Debt Restructurings on Financing Receivables) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 loan | Sep. 30, 2021 USD ($) loan | Sep. 30, 2022 loan | Sep. 30, 2021 USD ($) | |
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modifications, Number of Contracts | loan | 0 | 0 | 0 | |
Restructured Loan [Member] | Accruing Troubled Debt Restructurings [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | |||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 2,254,000 | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 2,254,000 | |||
Financing Receivable, Modifications, Recorded Investment | $ 1,854,000 | $ 1,854,000 | ||
Restructured Loan [Member] | Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Accruing Troubled Debt Restructurings [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | |||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 2,254,000 | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 2,254,000 | |||
Financing Receivable, Modifications, Recorded Investment | $ 1,854,000 | $ 1,854,000 |
LOANS AND RELATED ALLOWANCE _12
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 462,430 | $ 418,303 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 445,409 | 392,857 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13,742 | 17,258 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,279 | 8,188 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 58,585 | 62,639 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 57,812 | 61,372 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 773 | 577 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 690 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 189,860 | 159,806 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 176,300 | 137,684 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,102 | 16,429 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,458 | 5,693 |
Commercial Loan [Member] | Commercial Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 48,108 | 43,281 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 46,668 | 42,394 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,440 | 0 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 887 |
Construction Loan [Member] | Commercial Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 142,149 | 131,754 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 140,901 | 130,584 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 427 | 252 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 821 | 918 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,761 | 16,323 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,761 | 16,323 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,967 | 4,500 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,967 | 4,500 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Apr. 30, 2018 | Nov. 30, 2015 | Sep. 08, 2006 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Goodwill included in acquisition price | $ 9,047,000 | $ 9,047,000 | $ 9,047,000 | |||||
Amortization of intangible assets | 14,000 | $ 16,000 | 41,000 | $ 49,000 | ||||
Other intangible assets | 96,000 | 96,000 | $ 120,000 | |||||
Goodwill impairment loss | 0 | 0 | ||||||
Branch Office in Richfield, PA [Member] | ||||||||
Acquisition date | Sep. 08, 2006 | |||||||
Goodwill included in acquisition price | $ 2,000,000 | |||||||
FNBPA Bancorp, Inc [Member] | ||||||||
Acquisition date | Nov. 30, 2015 | |||||||
Goodwill included in acquisition price | $ 3,400,000 | |||||||
Intangible assets included in purchase price | $ 303,000 | |||||||
Intangible assets amortization period | 10 years | |||||||
Amortization of intangible assets | 5,000 | 6,000 | 16,000 | 20,000 | ||||
Liverpool Community Bank [Member] | ||||||||
Acquisition date | Apr. 30, 2018 | |||||||
Goodwill included in acquisition price | $ 3,600,000 | |||||||
Intangible assets included in purchase price | $ 289,000 | |||||||
Intangible assets amortization period | 10 years | |||||||
Amortization of intangible assets | $ 9,000 | $ 10,000 | $ 25,000 | $ 29,000 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Amortization Schedule for Intangible Assets) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2018 | Nov. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of intangible assets | $ 14,000 | $ 16,000 | $ 41,000 | $ 49,000 | ||||
FNBPA Bancorp, Inc [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Beginning Balance at Acquisition Date | $ 303,000 | |||||||
Amortization of intangible assets | 5,000 | 6,000 | 16,000 | 20,000 | ||||
FNBPA Bancorp, Inc [Member] | Core Deposits [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Beginning Balance at Acquisition Date | $ 303,000 | |||||||
Amortization of intangible assets | 16,000 | $ 27,000 | $ 223,000 | |||||
Unamortized balance | 37,000 | 37,000 | 53,000 | |||||
Scheduled remaining amortization expense for years ended: | ||||||||
December 31, 2022 | 6,000 | 6,000 | ||||||
December 31, 2023 | 16,000 | 16,000 | ||||||
December 31, 2024 | 10,000 | 10,000 | ||||||
December 31, 2025 | 5,000 | 5,000 | ||||||
Liverpool Community Bank [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Beginning Balance at Acquisition Date | $ 289,000 | |||||||
Amortization of intangible assets | 9,000 | $ 10,000 | 25,000 | $ 29,000 | ||||
Liverpool Community Bank [Member] | Core Deposits [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Beginning Balance at Acquisition Date | $ 289,000 | |||||||
Amortization of intangible assets | 25,000 | 39,000 | $ 128,000 | |||||
Unamortized balance | 97,000 | 97,000 | $ 122,000 | |||||
Scheduled remaining amortization expense for years ended: | ||||||||
December 31, 2022 | 8,000 | 8,000 | ||||||
December 31, 2023 | 28,000 | 28,000 | ||||||
December 31, 2024 | 23,000 | 23,000 | ||||||
December 31, 2025 | 17,000 | 17,000 | ||||||
December 31, 2026 | 12,000 | 12,000 | ||||||
December 31, 2027 | $ 9,000 | $ 9,000 |
BORROWINGS (Schedule of Borrowi
BORROWINGS (Schedule of Borrowings) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
BORROWINGS | ||
Securities sold under agreements to repurchase | $ 6,869 | $ 4,227 |
Overnight advances with FHLB | 9,000 | 0 |
Short-term debt with FHLB | 20,000 | 0 |
Long-term debt with FHLB | 20,000 | 20,000 |
Total borrowings | $ 55,869 | $ 24,227 |
BORROWINGS (Scheduled Maturitie
BORROWINGS (Scheduled Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Scheduled Maturities | ||
2022 | $ 0 | |
2023 | 0 | |
2024 | 15,000 | |
2025 | 5,000 | |
2026 | 0 | |
Thereafter | 0 | |
Long-term Debt, Total | $ 20,000 | $ 20,000 |
Weighted Average Interest Rate | ||
2022 | 0% | |
2023 | 0% | |
2024 | 2.29% | |
2025 | 2.41% | |
2026 | 0% | |
Thereafter | 0% | |
Weighted average interest rate | 2.32% |
STOCK COMPENSATION PLAN (Narrat
STOCK COMPENSATION PLAN (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Stock-based compensation expense | $ 30,000 | $ 38,000 | $ 146,000 | $ 110,000 | |
Weighted average exercise price | $ 17.74 | $ 17.74 | $ 17.78 | ||
Long-Term Incentive Plan [Member] | |||||
Shares available for grant | 163,990 | 163,990 | |||
Long-Term Incentive Plan [Member] | Maximum [Member] | |||||
Shares authorized under share-based payment awards | 300,000 | 300,000 | |||
Employee Stock Purchase Plan [Member] | |||||
Number of share per year in addition to prior unissued shares | 5,000 | ||||
Treasury stock issued | 5,026 | 4,944 | |||
Shares reserved for future issuance | 156,650 | 156,650 | |||
Employee Stock Purchase Plan [Member] | Maximum [Member] | |||||
Shares authorized under share-based payment awards | 250,000 | 250,000 | |||
Option price as a percentage of fair value | 100% | ||||
Employee Stock Purchase Plan [Member] | Minimum [Member] | |||||
Option price as a percentage of fair value | 95% | ||||
Employee Stock Option [Member] | |||||
Stock options awarded | 0 | ||||
Employee Stock Option [Member] | Long-Term Incentive Plan [Member] | |||||
Stock Options compensation costs not yet recognized | $ 0 | $ 0 | |||
Award expiration period | 10 years | ||||
Award expiration date | Feb. 17, 2025 | ||||
Exercise price, lower range limit | $ 17.65 | ||||
Exercise price, upper range limit | 17.80 | ||||
Weighted average exercise price | $ 17.74 | $ 17.74 | |||
Weighted average remaining contractual life | 1 year 7 months 28 days | ||||
Cash received from option exercises | $ 0 | ||||
Employee Stock Option [Member] | Long-Term Incentive Plan [Member] | Maximum [Member] | |||||
Award vesting period | 5 years | ||||
Employee Stock Option [Member] | Long-Term Incentive Plan [Member] | Minimum [Member] | |||||
Award vesting period | 3 years | ||||
Restricted Stock [Member] | |||||
Number of shares awarded | 10,486 | ||||
Award vesting period | 3 years | ||||
Restricted stocks. compensation costs not yet recognized | $ 169,000 | $ 169,000 | |||
Compensation cost not yet recognized, period for recognition | 3 years |
STOCK COMPENSATION PLAN (Non-Ve
STOCK COMPENSATION PLAN (Non-Vested Restricted Shares Activity) (Details) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Number of shares | |
Beginning Balance | shares | 22,789 |
Vested | shares | (11,475) |
Forfeited | shares | (825) |
Granted | shares | 10,486 |
Ending Balance | shares | 20,975 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 18.48 |
Vested | $ / shares | 18.72 |
Forfeited | $ / shares | 17.32 |
Granted | $ / shares | 15.90 |
Ending Balance | $ / shares | $ 17.10 |
STOCK COMPENSATION PLAN (Stock
STOCK COMPENSATION PLAN (Stock Options Activity) (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding beginning balance, Shares | shares | 71,947 |
Granted, Shares | shares | 0 |
Exercised, Shares | shares | 0 |
Forfeited, Shares | shares | (11,600) |
Outstanding ending balance, Shares | shares | 60,347 |
Beginning, weighted average exercise price | $ / shares | $ 17.78 |
Granted, Weighted average exercise price | $ / shares | 0 |
Exercised, Weighted average exercise price | $ / shares | 0 |
Expired, Weighted average exercise price | $ / shares | 18 |
Ending, weighted average exercise price | $ / shares | $ 17.74 |
FAIR VALUE MEASUREMENT (Fair Va
FAIR VALUE MEASUREMENT (Fair Value Measurements by Level of Valuation Inputs) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | $ 287,251 | $ 335,424 |
Equity securities | 1,014 | 1,124 |
Obligations of U.S. Government Agencies and Corporations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 41,950 | 40,526 |
Obligations of State and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 7,681 | 9,220 |
Corporate Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 15,576 | 34,996 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 287,251 | 335,424 |
Interest rate swaps, assets | 419 | 541 |
Fair Value, Measurements, Recurring [Member] | Obligations of U.S. Government Agencies and Corporations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 41,950 | 40,526 |
Fair Value, Measurements, Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 7,681 | 9,220 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 1,014 | 1,124 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 15,576 | 34,996 |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 222,044 | 250,682 |
Fair Value, Measurements, Recurring [Member] | (Level 1) Quoted Prices in Active Markets for Identical Assets [Member] | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 1,014 | 1,124 |
Fair Value, Measurements, Recurring [Member] | (Level 2) Significant Other Observable Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 279,903 | 330,904 |
Interest rate swaps, assets | 419 | 541 |
Fair Value, Measurements, Recurring [Member] | (Level 2) Significant Other Observable Inputs [Member] | Obligations of U.S. Government Agencies and Corporations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 41,950 | 40,526 |
Fair Value, Measurements, Recurring [Member] | (Level 2) Significant Other Observable Inputs [Member] | Obligations of State and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 7,681 | 9,220 |
Fair Value, Measurements, Recurring [Member] | (Level 2) Significant Other Observable Inputs [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 8,228 | 30,476 |
Fair Value, Measurements, Recurring [Member] | (Level 2) Significant Other Observable Inputs [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 222,044 | 250,682 |
Fair Value, Measurements, Recurring [Member] | (Level 3) Significant Other Unobservable Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 7,348 | 4,520 |
Fair Value, Measurements, Recurring [Member] | (Level 3) Significant Other Unobservable Inputs [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 7,348 | 4,520 |
Fair Value, Measurements, Recurring [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage servicing rights | 96 | 120 |
Fair Value, Measurements, Recurring [Member] | Mortgage Servicing Rights [Member] | (Level 3) Significant Other Unobservable Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage servicing rights | $ 96 | $ 120 |
FAIR VALUE MEASUREMENT (Reconci
FAIR VALUE MEASUREMENT (Reconciliation of Investment Securities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
FAIR VALUE MEASUREMENT | ||||
Beginning balance | $ 7,788 | $ 4,500 | $ 4,520 | $ 2,000 |
Total gains (loss) included in OCI | (440) | 20 | (1,172) | 20 |
Purchases | 0 | 0 | 4,000 | 2,500 |
Principal payments and other | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Ending balance | $ 7,348 | $ 4,520 | $ 7,348 | $ 4,520 |
FAIR VALUE MEASUREMENT (Carryin
FAIR VALUE MEASUREMENT (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Interest bearing deposits with banks | $ 102 | $ 598 |
Interest bearing time deposits with banks | 0 | 735 |
Restricted investment in bank stock | 3,104 | 2,116 |
Financial liabilities: | ||
Non-interest bearing deposits | 202,493 | 182,022 |
Interest bearing deposits | 515,341 | 526,425 |
Short-term borrowings | 35,869 | 4,227 |
Long-term debt | 20,000 | 20,000 |
Other interest bearing liabilities | 995 | 1,568 |
Carrying Value [Member] | ||
Financial assets: | ||
Cash and due from banks | 13,325 | 12,928 |
Interest bearing deposits with banks | 102 | 598 |
Interest bearing time deposits with banks | 0 | 735 |
Securities | 288,265 | 336,548 |
Restricted investment in bank stock | 3,104 | 2,116 |
Loans, net of allowance for loan losses | 458,525 | 414,795 |
Interest rate swaps, assets | 419 | 541 |
Accrued interest receivable | 1,907 | 1,814 |
Financial liabilities: | ||
Non-interest bearing deposits | 202,493 | 182,022 |
Interest bearing deposits | 515,341 | 526,425 |
Securities sold under agreements to repurchase | 6,869 | 4,227 |
Short-term borrowings | 20,000 | 0 |
Long-term debt | 20,000 | 20,000 |
Other interest bearing liabilities | 995 | 1,568 |
Accrued interest payable | 215 | 252 |
Off-balance sheet financial instruments: | ||
Commitments to extend credit | 0 | 0 |
Letters of credit | 0 | 0 |
Fair Value [Member] | ||
Financial assets: | ||
Cash and due from banks | 13,325 | 12,928 |
Interest bearing deposits with banks | 102 | 598 |
Interest bearing time deposits with banks | 0 | 735 |
Securities | 288,265 | 336,548 |
Loans, net of allowance for loan losses | 458,754 | 414,984 |
Interest rate swaps, assets | 419 | 541 |
Accrued interest receivable | 1,907 | 1,814 |
Financial liabilities: | ||
Non-interest bearing deposits | 202,493 | 182,022 |
Interest bearing deposits | 512,082 | 528,952 |
Short-term borrowings | 19,995 | 0 |
Long-term debt | 19,133 | 20,520 |
Other interest bearing liabilities | 990 | 1,568 |
Accrued interest payable | 215 | 252 |
Off-balance sheet financial instruments: | ||
Commitments to extend credit | 0 | 0 |
Letters of credit | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT (Schedul
FAIR VALUE MEASUREMENT (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest bearing time deposits with banks | $ 0 | $ 735 |
Interest bearing deposits | 515,341 | 526,425 |
Long-term debt | 20,000 | 20,000 |
Other interest bearing liabilities | 995 | 1,568 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest bearing time deposits with banks | 0 | 735 |
Loans, net of allowance for loan losses | 458,525 | 414,795 |
Interest bearing deposits | 515,341 | 526,425 |
Long-term debt | 20,000 | 20,000 |
Other interest bearing liabilities | 995 | 1,568 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest bearing time deposits with banks | 0 | 735 |
Loans, net of allowance for loan losses | 458,754 | 414,984 |
Interest bearing deposits | 512,082 | 528,952 |
Long-term debt | 19,133 | 20,520 |
Other interest bearing liabilities | 990 | 1,568 |
Fair Value [Member] | (Level 2) Significant Other Observable Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest bearing time deposits with banks | 735 | |
Interest bearing deposits | 512,082 | 528,952 |
Long-term debt | 19,133 | 20,520 |
Other interest bearing liabilities | 990 | 1,568 |
Fair Value [Member] | (Level 3) Significant Other Unobservable Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance for loan losses | $ 458,754 | $ 414,984 |
COMMITMENTS, CONTINGENT LIABI_2
COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Letter of Credit expiration period | 1 year | |
Commitments to Grant Loans [Member] | ||
Loss Contingencies [Line Items] | ||
Outstanding loans commitments and other unused lines of credit | $ 118.8 | $ 107.1 |
Outstanding Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Outstanding loans commitments and other unused lines of credit | 3.7 | 5.7 |
Commercial Letter Of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Outstanding loans commitments and other unused lines of credit | $ 9.9 | $ 9.5 |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2022 USD ($) agreement | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Gain on sale of derivatives | $ 1,200 | ||
Number of forward swap agreement | agreement | 2 | ||
Interest Rate Swap Three Months Brokered Deposit [Member] | |||
Notional Amount | $ 20,000 | $ 20,000 | |
Interest Rate Swap Forward Long Term FHLB Advances [Member] | |||
Notional Amount | 20,000 | ||
Designated as Hedging Instrument [Member] | |||
Notional Amount | 40,000 | ||
Interest rate swaps, ineffectiveness | no amount of ineffectiveness has been included in net income | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap Three Months Brokered Deposit [Member] | |||
Notional Amount | $ 0 | 20,000 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap Forward Long Term FHLB Advances [Member] | |||
Notional Amount | $ 0 | $ 20,000 |
DERIVATIVES (Derivatives Record
DERIVATIVES (Derivatives Recorded on the Consolidated Statements of Condition) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Interest Rate Swap Three Months Brokered Deposit [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 20,000 | $ 20,000 |
Interest Rate Swap Three Months FHLB Advance [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 20,000 | 0 |
Fair Value Asset (Liability) | 419 | 0 |
Interest Rate Swap Forward Long Term FHLB Advances [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 20,000 | |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 40,000 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap Three Months Brokered Deposit [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 20,000 |
Fair Value Asset (Liability) | 0 | 52 |
Designated as Hedging Instrument [Member] | Interest Rate Swap Forward Long Term FHLB Advances [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 20,000 |
Fair Value Asset (Liability) | $ 0 | $ 489 |
DERIVATIVES (Effect of Cash Flo
DERIVATIVES (Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | $ 81 | $ 38 | $ 1,195 | $ 449 | $ 538 | ||
Amount reclassified from AOCI into income (expense) | $ (86) | [1],[2] | $ 17 | [1],[2] | (1,317) | $ 43 | (60) |
Interest Rate Contracts [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | (7) | 538 | |||||
Amount reclassified from AOCI into income (expense) | (115) | $ (60) | |||||
Swap Termination Gain [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | 1,202 | ||||||
Swap Termination Gain [Member] | Other Non Interest Income [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount reclassified from AOCI into income (expense) | $ (1,202) | ||||||
[1] Amounts are included in gain (loss) on sales and calls of securities on the Consolidated Statements of Income as a separate element within total non-interest income. Income tax amounts are included in the provision for income taxes on the Consolidated Statements of Income. |
DERIVATIVES (Effect of Cash F_2
DERIVATIVES (Effect of Cash Flow Hedge Accounting on the Consolidated Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount reclassified from AOCI into income (expense) | $ 86 | [1],[2] | $ (17) | [1],[2] | $ 1,317 | $ (43) | $ 60 |
Interest Income (Expense) [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount reclassified from AOCI into income (expense) | 99 | (17) | 115 | (43) | |||
Total | (86) | (17) | 1,317 | (43) | |||
Swap Termination Gain [Member] | Interest Income (Expense) [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount reclassified from AOCI into income (expense) | $ (13) | $ 0 | $ 1,202 | $ 0 | |||
[1] Amounts are included in gain (loss) on sales and calls of securities on the Consolidated Statements of Income as a separate element within total non-interest income. Income tax amounts are included in the provision for income taxes on the Consolidated Statements of Income. |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - Subsequent Event [Member] | Oct. 18, 2022 $ / shares |
Subsequent Event [Line Items] | |
Dividends payable, date declared | Oct. 18, 2022 |
Dividends payable per share | $ 0.22 |
Dividends payable, date to be paid | Dec. 01, 2022 |