Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-13232 | |
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 | |
Entity Common Stock, Shares Outstanding | 5,000,518 | |
Entity Central Index Key | 0000714712 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and due from banks | $ 5,085 | $ 17,189 |
Interest bearing deposits with banks | 8,352 | 11,741 |
Cash and cash equivalents | 13,437 | 28,930 |
Equity securities | 1,060 | 1,073 |
Debt securities available for sale | 66,639 | 67,564 |
Debt securities held to maturity (fair value $193,182 and $198,147, respectively) | 198,680 | 200,644 |
Restricted investment in bank stock | 2,018 | 1,707 |
Total loans | 536,716 | 525,394 |
Less: Allowance for credit losses | (5,792) | (5,677) |
Total loans, net of allowance for credit losses | 530,924 | 519,717 |
Premises and equipment, net | 8,135 | 8,180 |
Bank owned life insurance and annuities | 14,900 | 14,841 |
Investment in low income housing partnerships | 1,073 | 1,154 |
Core deposit and other intangible assets | 321 | 343 |
Goodwill | 9,812 | 9,812 |
Mortgage servicing rights | 81 | 83 |
Deferred tax asset | 11,033 | 11,319 |
Accrued interest receivable and other assets | 6,305 | 5,188 |
Total assets | 864,418 | 870,555 |
Liabilities: | ||
Non-interest bearing | 199,770 | 197,027 |
Interest bearing | 538,650 | 552,018 |
Total deposits | 738,420 | 749,045 |
Short-term borrowings and repurchase agreements | 57,214 | 52,810 |
Long-term debt | 20,000 | 20,000 |
Other interest bearing liabilities | 884 | 951 |
Accrued interest payable and other liabilities | 6,418 | 7,612 |
Total liabilities | 822,936 | 830,418 |
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 March 31, 2024 and December 31, 2023; Outstanding - 5,000,518 shares at March 31, 2024 and 4,991,129 shares at December 31, 2023 | 5,151 | 5,151 |
Surplus | 24,802 | 24,924 |
Retained earnings | 51,554 | 51,297 |
Accumulated other comprehensive loss | (37,583) | (38,640) |
Cost of common stock in Treasury: 150,761 shares at March 31, 2024; 160,150 shares at December 31, 2023 | (2,442) | (2,595) |
Total stockholders' equity | 41,482 | 40,137 |
Total liabilities and stockholders' equity | $ 864,418 | $ 870,555 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Consolidated Statements of Financial Condition | ||
Debt securities held to maturity, fair value | $ 193,182 | $ 198,147 |
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, shares 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 | 5,000,518 | 4,991,129 |
Treasury stock, shares outstanding | 150,761 | 160,150 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest and dividend income: | ||
Loans, including fees | $ 7,467,000 | $ 6,120,000 |
Taxable securities | 1,465,000 | 1,580,000 |
Tax-exempt securities | 30,000 | 36,000 |
Other interest income | 43,000 | 16,000 |
Total interest income | 9,005,000 | 7,752,000 |
Interest expense: | ||
Deposits | 2,642,000 | 1,443,000 |
Short-term borrowings and repurchase agreements | 698,000 | 415,000 |
Long-term debt | 117,000 | 116,000 |
Other interest bearing liabilities | 9,000 | 10,000 |
Total interest expense | 3,466,000 | 1,984,000 |
Net interest income | 5,539,000 | 5,768,000 |
Provision for credit losses | 120,000 | 243,000 |
Net interest income after provision for credit losses | 5,419,000 | 5,525,000 |
Non-interest income: | ||
Earnings on bank-owned life insurance and annuities | 56,000 | 55,000 |
Change in value of equity securities | (13,000) | (22,000) |
Other non-interest income | 100,000 | 107,000 |
Total non-interest income | 1,296,000 | 1,213,000 |
Non-interest expense: | ||
Employee compensation expense | 2,208,000 | 2,035,000 |
Employee benefits | 645,000 | 735,000 |
Occupancy | 332,000 | 304,000 |
Equipment | 143,000 | 165,000 |
Data processing expense | 663,000 | 597,000 |
Professional fees | 254,000 | 195,000 |
Taxes, other than income | 56,000 | 109,000 |
FDIC Insurance premiums | 155,000 | 71,000 |
Amortization of intangible assets | 22,000 | 11,000 |
Amortization of investment in low-income housing partnerships | 81,000 | 112,000 |
Other non-interest expense | 600,000 | 424,000 |
Total non-interest expense | 5,159,000 | 4,758,000 |
Income before income taxes | 1,556,000 | 1,980,000 |
Income tax provision | 201,000 | 247,000 |
Net income | $ 1,355,000 | $ 1,733,000 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.27 | $ 0.35 |
Diluted (in dollars per share) | $ 0.27 | $ 0.35 |
Customer service fees | ||
Non-interest income: | ||
Non-interest income | $ 371,000 | $ 323,000 |
Debit card fee Income | ||
Non-interest income: | ||
Non-interest income | 404,000 | 417,000 |
Trust fees | ||
Non-interest income: | ||
Non-interest income | 107,000 | 132,000 |
Commissions from sales of non-deposit products | ||
Non-interest income: | ||
Non-interest income | 102,000 | 95,000 |
Fees derived from loan activity | ||
Non-interest income: | ||
Non-interest income | 159,000 | 93,000 |
Mortgage banking income | ||
Non-interest income: | ||
Non-interest income | $ 10,000 | $ 13,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Consolidated Statements of Comprehensive Income (Unaudited) | |||
Net income, Pre-Tax Amount | $ 1,556 | $ 1,980 | |
Tax effect | (201) | (247) | |
Net income | 1,355 | 1,733 | |
Other comprehensive income: | |||
Unrealized holding gain arising during the period, Pre-Tax Amount | 166 | 36 | |
Unrealized holding gain arising during the period, Tax Effect | (35) | (7) | |
Unrealized holding gain arising during the period, Net-of-Tax Amount | 131 | 29 | |
Amortization of unrealized holding losses on held to maturity securities, Pre-Tax Amount | [1],[2] | 1,181 | 1,173 |
Amortization of unrealized holding losses on held to maturity securities, Tax Effect | [1],[2] | (255) | (255) |
Amortization of unrealized holding losses on held to maturity securities, Net-of-Tax Amount | [1],[2] | 926 | 918 |
Unrealized gain on cash flow hedge, Pre-Tax Amount | 1 | ||
Unrealized gain on cash flow hedge, Net-of-Tax Amount | 1 | ||
Reclassification adjustment for gain included in net income, Pre-Tax Amount | [2],[3] | (214) | |
Reclassification adjustment for gain included in net income, Tax Effect | [2],[3] | 45 | |
Reclassification adjustment for gain included in net income, Net-of-Tax | [2],[3] | (169) | |
Other comprehensive income (loss), Pre-Tax Amount | 1,347 | 996 | |
Other comprehensive income (loss), Tax Effect | (290) | (217) | |
Net current period other comprehensive income (loss) | 1,057 | 779 | |
Total comprehensive income (loss), Pre-Tax Amount | 2,903 | 2,976 | |
Total comprehensive income (loss), Tax Effect | (491) | (464) | |
Total comprehensive income (loss), Net-of-Tax Amount | $ 2,412 | $ 2,512 | |
[1] Amounts included in interest income on the Consolidated Statements of Income. Income tax amounts are included in the provision for income taxes on the Consolidated Statements of Income. Amounts are included in interest expense on short-term borrowings and repurchase agreements and in other non-interest income on the Consolidated Statements of Income. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings Impact of adopting ASC 326 | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Impact of adopting ASC 326 | Total |
Beginning balance at Dec. 31, 2022 | $ 5,151 | $ 24,986 | $ 49,961 | $ (41,867) | $ (2,538) | $ 35,693 | ||
Beginning balance, shares at Dec. 31, 2022 | 5,003,059 | |||||||
Net income | 1,733 | 1,733 | ||||||
Other comprehensive income | 779 | 779 | ||||||
Cash dividends at $0.22 per share | (1,101) | (1,101) | ||||||
Stock-based compensation | 32 | 32 | ||||||
Purchase of treasury stock | (9) | (9) | ||||||
Purchase of treasury stock, shares | (569) | |||||||
Treasury stock issued for stock plans | (195) | 195 | ||||||
Treasury stock issued for stock plans, shares | 11,409 | |||||||
Ending balance at Mar. 31, 2023 | $ 5,151 | 24,823 | $ (854) | 49,739 | (41,088) | (2,352) | $ (854) | 36,273 |
Ending balance, shares at Mar. 31, 2023 | 5,013,899 | |||||||
Beginning balance at Dec. 31, 2023 | $ 5,151 | 24,924 | 51,297 | (38,640) | (2,595) | $ 40,137 | ||
Beginning balance, shares at Dec. 31, 2023 | 4,991,129 | 4,991,129 | ||||||
Net income | 1,355 | $ 1,355 | ||||||
Other comprehensive income | 1,057 | 1,057 | ||||||
Cash dividends at $0.22 per share | (1,098) | (1,098) | ||||||
Stock-based compensation | 34 | 34 | ||||||
Purchase of treasury stock | (3) | (3) | ||||||
Purchase of treasury stock, shares | (239) | |||||||
Treasury stock issued for stock plans | (156) | 156 | ||||||
Treasury stock issued for stock plans, shares | 9,628 | |||||||
Ending balance at Mar. 31, 2024 | $ 5,151 | $ 24,802 | $ 51,554 | $ (37,583) | $ (2,442) | $ 41,482 | ||
Ending balance, shares at Mar. 31, 2024 | 5,000,518 | 5,000,518 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements of Stockholders' Equity (Unaudited) | ||
Cash dividends per share | $ 0.22 | $ 0.22 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Operating activities: | |||
Net income | $ 1,355,000 | $ 1,733,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 120,000 | 243,000 | |
Depreciation | 132,000 | 145,000 | |
Net amortization of securities premiums | 31,000 | 34,000 | |
Net amortization of loan origination costs | (14,000) | (30,000) | |
Deferred net loan origination costs | (105,000) | (111,000) | |
Amortization of intangibles | 22,000 | 11,000 | |
Amortization of investment in low-income housing partnerships | 81,000 | 112,000 | |
Net amortization of purchase fair value adjustments | 0 | (5,000) | |
Change in value of equity securities | 13,000 | 22,000 | |
Earnings on bank owned life insurance and annuities | (56,000) | (55,000) | |
Deferred income tax expense | 4,000 | 250,000 | |
Stock-based compensation expense | 34,000 | 32,000 | |
Proceeds from mortgage loans sold to others | 12,000 | 15,000 | |
Mortgage banking income | (10,000) | (13,000) | |
Increase in accrued interest receivable and other assets | (1,124,000) | (1,154,000) | |
(Decrease) increase in accrued interest payable and other liabilities | (1,261,000) | 324,000 | |
Net cash (used in) provided by operating activities | (766,000) | 1,553,000 | |
Investing activities: | |||
FHLB stock | (311,000) | 0 | |
Premises and equipment | (87,000) | (47,000) | |
Bank owned life insurance and annuities | (3,000) | (7,000) | |
Maturities of and principal repayments on securities available for sale | 1,060,000 | 1,054,000 | |
Maturities of and principal repayments on securities held to maturity | 3,144,000 | 3,101,000 | |
Redemption of FHLB stock | 0 | 348,000 | |
Net increase in loans | (11,206,000) | (3,846,000) | |
Net cash (used in) provided by investing activities | (7,403,000) | 603,000 | |
Financing activities: | |||
Net (decrease) increase in deposits | (10,627,000) | 12,746,000 | |
Net increase (decrease) in short-term borrowings and securities sold under agreements to repurchase | 4,404,000 | (12,888,000) | |
Cash dividends | (1,098,000) | (1,101,000) | |
Purchase of treasury stock | (3,000) | (9,000) | |
Net cash used in financing activities | (7,324,000) | (1,252,000) | |
Net (decrease) increase in cash and cash equivalents | (15,493,000) | 904,000 | |
Cash and cash equivalents at beginning of year | 28,930,000 | 10,999,000 | $ 10,999,000 |
Cash and cash equivalents at end of period | 13,437,000 | 11,903,000 | $ 28,930,000 |
Supplemental information: | |||
Interest paid | 3,054,000 | 1,691,000 | |
Income tax paid | $ 315,000 | $ 215,000 |
BASIS OF PRESENTATION AND ACCOU
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
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 credit 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 months ended March 31, 2024 are not necessarily indicative of the results that can be expected for the year ending December 31, 2024. 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/A (“Annual Report”) for the year ended December 31, 2023. The Company has evaluated events and transactions occurring subsequent to the consolidated statement of financial condition date of March 31, 2024 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 | 3 Months Ended |
Mar. 31, 2024 | |
RECENT ACCOUNTING STANDARDS UPDATES | |
RECENT ACCOUNTING STANDARDS UPDATES | 2. RECENT ACCOUNTING STANDARDS UPDATES Adoption of New Accounting Standards: None. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2024 | |
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: Unrealized Unrealized Gains Gains Gains (Dollars in thousands) (Losses) on (Losses) on (Losses) on Cash Flow AFS HTM March 31, 2024 Hedges Securities Securities Total Beginning balance, December 31, 2023 $ — $ (6,454) $ (32,186) $ (38,640) Current period other comprehensive income (loss): Other comprehensive income before reclassification — 131 — 131 Amounts reclassified from accumulated other comprehensive income — — 926 926 Net current period other comprehensive income — 131 926 1,057 Ending balance, March 31, 2024 $ — $ (6,323) $ (31,260) $ (37,583) Unrealized Unrealized Gains Gains Gains (Dollars in thousands) (Losses) on (Losses) on (Losses) on Cash Flow AFS HTM March 31, 2023 Hedges Securities Securities Total Beginning balance, December 31, 2022 $ 211 $ (6,161) $ (35,917) $ (41,867) Current period other comprehensive income (loss): Other comprehensive income before reclassification 1 29 — 30 Amounts reclassified from accumulated other comprehensive income (loss) (169) — 918 749 Net current period other comprehensive income (loss) (168) 29 918 779 Ending balance, March 31, 2023 $ 43 $ (6,132) $ (34,999) $ (41,088) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Net income $ 1,355 $ 1,733 Weighted-average common shares outstanding 4,995 5,008 Basic earnings per share 0.27 0.35 Weighted-average common shares outstanding $ 4,995 $ 5,008 Common stock equivalents due to effect of stock options 9 10 Total weighted-average common shares and equivalents $ 5,004 $ 5,018 Diluted earnings per share $ 0.27 $ 0.35 Anti-dilutive stock options outstanding 5 7 |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2024 | |
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. The Company had $1.1 million in equity securities recorded at fair value as of March 31, 2024 and December 31, 2023. The Company recorded net losses of $13,000 and $22,000 during the three months ended March 31, 2024 and 2023, respectively, due to changes in the fair value of the Company’s portfolio of equity securities during the applicable periods. Debt Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities that are not classified as held to maturity or trading are classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. The Company’s debt securities portfolio includes primarily bonds issued by U.S. Government sponsored enterprises (approximately 17% of the investment portfolio), mortgage-backed securities issued by Government-sponsored entities and backed by residential mortgages (approximately 75%), corporate debt securities (approximately 6%) and municipal bonds (approximately 2%) as of March 31, 2024. Most of the municipal bonds are general obligation bonds with maturities or pre-refunding dates within 5 years. At each of March 31, 2024 and December 31, 2023, excluding securities of the U.S. Government and its agencies, the Company had holdings of securities from two issuers in excess of 10% of stockholders’ equity; holdings in Federal Farm Credit Bank and Pennsylvania Housing Finance securities had fair values of $11.3 million and $4.8 million, respectively, as of March 31, 2024, and $11.3 million and $4.9 million, respectively, as of December 31, 2023. The amortized cost and fair value of debt securities as of March 31, 2024 and December 31, 2023, 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. Securities not due at a single maturity date are shown separately. (Dollars in thousands) March 31, 2024 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Obligations of U.S. Government sponsored enterprises After one year but within five years $ 15,500 $ 14,127 $ — $ (1,373) 15,500 14,127 — (1,373) Obligations of state and political subdivisions Within one year 500 500 — — After one year but within five years 2,518 2,358 — (160) After five years but within ten years 4,355 3,604 — (751) 7,373 6,462 — (911) Corporate debt securities After one year but within five years 4,592 4,069 — (523) After five years but within ten years 13,000 10,347 — (2,653) 17,592 14,416 — (3,176) Mortgage-backed securities 34,178 31,634 — (2,544) Total $ 74,643 $ 66,639 $ — $ (8,004) (Dollars in thousands) March 31, 2024 Gross Gross Amortized Fair Unrecognized Unrecognized Debt Securities Held to Maturity Cost Value Gains Losses Obligations of U.S. Government sponsored enterprises After one year but within five years $ 21,128 $ 20,967 $ — $ (161) After five years but within ten years 8,627 8,514 — (113) 29,755 29,481 — (274) Mortgage-backed securities 168,925 163,701 385 (5,609) Total $ 198,680 $ 193,182 $ 385 $ (5,883) (Dollars in thousands) December 31, 2023 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Obligations of U.S. Government sponsored enterprises After one year but within five years $ 15,500 $ 14,173 $ — $ (1,327) 15,500 14,173 — (1,327) Obligations of state and political subdivisions Within one year 500 496 — (4) After one year but within five years 2,514 2,387 — (127) After five years but within ten years 4,355 3,625 — (730) 7,369 6,508 — (861) Corporate debt securities After one year but within five years 4,608 4,048 — (560) After five years but within ten years 13,000 9,780 — (3,220) 17,608 13,828 — (3,780) Mortgage-backed securities 35,257 33,055 — (2,202) Total $ 75,734 $ 67,564 $ — $ (8,170) (Dollars in thousands) December 31, 2023 Gross Gross Amortized Fair Unrecognized Unrecognized Debt Securities Held to Maturity Cost Value Gains Losses Obligations of U.S. Government sponsored enterprises After one year but within five years $ 15,886 $ 15,984 $ 104 $ (6) After five years but within ten years 13,634 13,702 85 (17) 29,520 29,686 189 (23) Mortgage-backed securities 171,124 168,461 1,917 (4,580) Total $ 200,644 $ 198,147 $ 2,106 $ (4,603) 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 $177.9 million and $192.1 million on March 31, 2024 and December 31, 2023, 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. There were no sales of securities during the three month periods ended March 31, 2024 or March 31, 2023. The following tables summarize debt securities with unrealized and unrecognized losses at March 31, 2024 and December 31, 2023, aggregated by category and length of time in a continuous unrealized loss position. Unrealized Losses at March 31, 2024 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 Securities available for sale Obligations of U.S. Government sponsored enterprises — $ — $ — 3 $ 14,127 $ (1,373) 3 $ 14,127 $ (1,373) Obligations of state and political subdivisions — — — 7 5,962 (911) 7 5,962 (911) Corporate debt securities — — — 9 14,416 (3,176) 9 14,416 (3,176) Mortgage-backed securities — — — 33 31,634 (2,544) 33 31,634 (2,544) Total temporarily impaired securities available for sale — $ — $ — 52 $ 66,139 $ (8,004) 52 $ 66,139 $ (8,004) Unrealized Losses at December 31, 2023 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 Securities available for sale Obligations of U.S. Government sponsored enterprises — $ — $ — 3 $ 14,173 $ (1,327) 3 $ 14,173 $ (1,327) Obligations of state and political subdivisions 1 1,456 (11) 7 5,052 (850) 8 6,508 (861) Corporate debt securities — — — 9 13,828 (3,780) 9 13,828 (3,780) Mortgage-backed securities — — — 34 33,055 (2,202) 34 33,055 (2,202) Total temporarily impaired securities available for sale 1 $ 1,456 $ (11) 53 $ 66,108 $ (8,159) 54 $ 67,564 $ (8,170) Securities held to maturity Obligations of U.S. Government sponsored enterprises 2 $ 8,258 $ (23) — $ — $ — 2 $ 8,258 $ (23) Mortgage-backed securities 6 17,894 (480) 16 50,843 (4,100) 22 68,737 (4,580) Total temporarily impaired securities held to maturity 8 $ 26,152 $ (503) 16 $ 50,843 $ (4,100) 24 $ 76,995 $ (4,603) Total 9 $ 27,608 $ (514) 69 $ 116,951 $ (12,259) 78 $ 144,559 $ (12,773) At March 31, 2024, three obligations of U.S. Government sponsored enterprises, seven obligations of state and political subdivisions, nine corporate debt securities, and thirty-three mortgage-backed securities available for sale had unrealized losses, all of which 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. ASC 326 made targeted changes to the accounting for credit losses on securities available for sale. The concept of other-than-temporarily impaired securities was replaced with the allowance for credit losses. Unlike held to maturity debt securities, available for sale securities are evaluated on an individual level and pooling of securities is not allowed. For available for sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available for sale that do not meet the criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of March 31, 2024, management determined that an immaterial credit loss existed because the decline in fair value of the available for sale debt securities was mostly attributable to changes in interest rates and other market conditions, rather than erosion of issuer credit quality and, as a result, timely payment of contractual cash flows, including principal and interest, has continued and is not considered at risk. Credit Quality Indicators All the Company’s held to maturity debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities are either explicitly or implicitly guaranteed by the U.S. government, except for the Federal Farm Credit Bank securities, but all are highly rated by major rating agencies and have a long history of no credit losses. Therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2024. The Company monitors the credit quality of held to maturity debt securities using credit ratings. The credit ratings are sourced from nationally recognized rating agencies. All held to maturity debt securities were current in their payment of principal and interest as of March 31, 2024. The following table summarizes the amortized cost of held to maturity debt securities aggregated by credit quality indicator based on the latest information available as of March 31, 2024. (Dollars in thousands) March 31, 2024 AAA Total Securities held to maturity Obligations of U.S. Government sponsored enterprises $ 29,755 $ 29,755 Mortgage-backed securities 168,925 168,925 $ 198,680 $ 198,680 |
LOANS AND RELATED ALLOWANCE FOR
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2024 | |
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 credit losses. 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. 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 credit 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. Allowance for Credit Losses (“ACL”) The Company adopted ASU 2013-13 on January 1, 2023 to calculate the ACL, which requires a projection of credit losses estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a loan modification will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and not unconditionally cancellable by the Company. The allowance for credit losses is a valuation account that is deducted from the loan’s amortized cost basis to present the net amount expected to be collected on the loan. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions and reasonable and supportable forecasts of certain macro-economic variables. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, lending personnel, delinquency trends, credit concentrations, loan review results, changes in collateral values, as well as the impact of changes in the regulatory and business environment or other relevant factors. The Company utilizes the Discounted Cash Flow (“DCF”) method to analyze most loan segments, particularly loan segments with longer average lives and regular payment structures, as it allows for the effective incorporation of a reasonable and supportable forecast in a directionally consistent and objective manner. The DCF model has two key components; a loss driver analysis combined with a cash flow analysis. The contractual cash flow is adjusted for probability of default/loss given defaults (“PD/LGD”) and prepayment speed to establish a reserve level. The prepayment and curtailment studies are updated quarterly by a third-party for each applicable pool of loans. The Company estimates losses over a four quarter forecast period using Federal Open Market Committee (“FOMC”) estimates for real GDP and unemployment rate. Based on the final values in the forecast and the uncertainty of a post-pandemic economic recovery, management has elected to revert to historical loss experience over four quarters. The economic factors considered as part of the ACL were selected after a rigorous regression analysis and model selection process. Additionally, the Company uses reasonable credit risk assumptions based on an annual report produced by Moody’s for the obligations of states and political subdivisions segment. The Weighted Average Remaining Life (“WARM”) method is used to analyze the personal loan segment, which includes revolving credit plans, automobile loans and other consumer loans, because this segment contains loans with many different structures, payment streams and collateral. The WARM method uses an average annual charge-off rate applied to the contractual term, further adjusted for estimated prepayments to determine the unadjusted historical charge-off rate for the remaining balance of assets. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments and measures the allowance for credit losses using the following methods: Portfolio Segments Methodology Loss Drivers Commercial, financial and agricultural DCF National unemployment Real estate - commercial DCF National unemployment & national GDP Real estate - construction: 1-4 family residential construction DCF National unemployment & national GDP Other construction loans DCF National unemployment & national GDP Real estate - mortgage DCF National unemployment & national GDP Obligations of states and political subdivisions DCF Moody's report Personal Remaining Life Call report loss history According to ASC 326, an entity may make an accounting policy election not to measure an allowance for credit losses for accrued interest receivable if the entity writes off the applicable accrued interest receivable balance in a timely manner. The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivable for all loan segments. Accrual of interest on loans is discontinued when the payment of principal or interest is in doubt or when a loan becomes contractually past due by 90 days or more with respect to principal or interest, except for loans that are well-secured and in the process of collection. When a loan is placed on nonaccrual status, any accrued but uncollected interest is reversed from current income. ASC 326 requires the Company to establish a liability for anticipated credit losses for unfunded commitments. To accomplish this, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. At March 31, 2024, the Company had $63.5 million in unfunded commitments and $463,000 in anticipated credit losses in the reserve for unfunded lending commitments. At December 31, 2023, the Company had $56.0 million in unfunded commitments and $419,000 in anticipated credit losses in the reserve for unfunded lending commitments. The reserve for unfunded commitments is recorded in other liabilities on the Consolidated Statements of Financial Condition as opposed to in the ACL. Provisions to the reserve for unfunded lending commitments are recorded as other noninterest expense on the Consolidated Statements of Income. The determination of the ACL is complex, and the Company makes decisions on the effects of matters that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgements as to the facts and circumstances related to particular situations or credits. There may be significant changes in the ACL in future periods determined by factors prevailing at that point in time along with future forecasts. Risks associated with each portfolio segment are as follows: 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, the Company performs an analysis of the borrower’s character, capacity to repay the loan, the adequacy of the borrower’s capital and collateral and conditions affecting the borrower. 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 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 1-4 family residential construction loans and other construction loans, which are construction loans for purposes other than constructing 1-4 family residential properties such as land development and commercial building construction loans. The Company’s 1-4 family residential construction loans are loans for constructing 1-4 family residential properties, which will secure the loan. Other 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 and estimated time to complete. In underwriting real estate - construction loans, the Company performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history and, when applicable, the reliability and predictability of the cash flow generated by the project using feasibility studies, market data, and other resources. Most appraisals on properties securing real estate - construction 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 1-4 family residential mortgages and business loans secured by 1-4 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 1-4 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 20 years In underwriting 1-4 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 minimal 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. Loan Portfolio Classification The following table presents the loan portfolio by class at March 31, 2024 and December 31, 2023. (Dollars in thousands) March 31, 2024 December 31, 2023 Commercial, financial and agricultural $ 69,178 $ 65,821 Real estate - commercial 236,442 223,077 Real estate - construction: 1-4 family residential construction 5,002 5,085 Other construction loans 45,025 47,504 Real estate - mortgage 160,439 162,385 Obligations of states and political subdivisions 16,630 17,232 Personal 4,000 4,290 Total $ 536,716 $ 525,394 The following tables disclose allowance for credit loss activity by loan class for the three months ended March 31, 2024 and March 31, 2023. Real estate- Obligations Commercial, construction Real estate- of states (Dollars in thousands) financial and Real estate- 1-4 family construction and political Real estate- agricultural commercial residential other subdivisions mortgage Personal Total Three Months Ended March 31, 2024 Allowance for credit losses: Beginning balance, $ 740 $ 2,799 $ 104 $ 778 $ 39 $ 1,157 $ 60 $ 5,677 Provision for credit losses 40 144 1 (30) 18 (50) (3) 120 Loans charged off — — — — — — (9) (9) Recoveries collected — — — — — 1 3 4 Total ending allowance balance $ 780 $ 2,943 $ 105 $ 748 $ 57 $ 1,108 $ 51 $ 5,792 Real estate- Obligations Commercial, construction Real estate- of states (Dollars in thousands) financial and Real estate- 1-4 family construction and political Real estate- agricultural commercial residential other subdivisions mortgage Personal Total Three Months Ended March 31, 2023 Allowance for loan losses: Beginning balance, prior to ASC 326 adoption $ 297 $ 1,110 $ 69 $ 1,077 $ 54 $ 1,385 $ 35 $ 4,027 Impact of adopting ASC 326 337 1,204 114 (407) (9) (497) 15 757 Initial allowance on loans purchased with credit deterioration 106 248 354 Provision for credit losses (2) 176 (26) 101 — (23) 17 243 Loans charged off — — — — — (19) (7) (26) Recoveries collected — — — — — 18 1 19 Total ending allowance balance $ 632 $ 2,596 $ 157 $ 771 $ 45 $ 1,112 $ 61 $ 5,374 There were no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of March 31, 2024 or December 31, 2023. 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. Under ASC 326, loans that do not share risk characteristics are not evaluated collectively and are instead individually evaluated. When management determines foreclosure is probable, expected credit losses are based on the fair value of the collateral, adjusted for selling costs as appropriate. The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of March 31, 2024. (Dollars in thousands) Real Estate Real estate - mortgage $ 122 Total $ 122 The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of December 31, 2023. (Dollars in thousands) Real Estate Real estate - commercial $ 4,877 Real estate - mortgage 57 Total $ 4,934 Loans on which the accrual of interest has been discontinued are designated as non-accrual loans. Accrual of interest on loans is generally discontinued when the contractual payment of principal or interest has become 90 days past due or reasonable doubt exists as to the full, timely collection of principal or interest. However, it is the Company’s policy to continue to accrue interest on loans over 90 days past due if (1) they are guaranteed or well secured and (2) there is an effective means of timely collection in process. When a loan is placed on non-accrual status, all unpaid interest credited to income in the current year is reversed against current period income, and unpaid interest accrued in prior years is charged against the allowance for credit losses. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, accruals are resumed on loans only when the obligation is brought fully current with respect to interest and principal, has performed in accordance with the contractual terms for a reasonable period and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The Company’s nonaccrual and charge-off policies are the same, regardless of the loan type. The following tables present the amortized cost basis of loans on nonaccrual status, including nonaccrual status loans with no allowance, and loans past due over 89 days still accruing as of March 31, 2024 and December 31, 2023, respectively. (Dollars in thousands) Nonaccrual with Nonaccrual with Loans Past Due No Allowance an Allowance Over 89 Days As of March 31, 2024 for Credit Loss for Credit Loss Still Accruing(1) Commercial, financial and agricultural $ — $ 90 $ — Real estate - mortgage 122 — 35 Total $ 122 $ 90 $ 35 (Dollars in thousands) Nonaccrual with Nonaccrual with Loans Past Due No Allowance an Allowance Over 89 Days As of December 31, 2023 for Credit Loss for Credit Loss Still Accruing(1) Commercial, financial and agricultural $ — $ 18 $ — Real estate - commercial 4,877 — — Real estate - mortgage 57 — — Total $ 4,934 $ 18 $ — (1) These loans are guaranteed, or well-secured, and there is an effective means of collection in process. The Company recognized no interest income on nonaccrual loans for the three months ended March 31, 2024 and $12,000 for the year ended December 31, 2023. 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 March 31, 2024 and December 31, 2023, respectively. (Dollars in thousands) Greater 30 ‑ 59 Days 60 ‑ 89 Days Than 89 Days Total Past As of March 31, 2024 Past Due(1) Past Due Past Due Due Commercial, financial and agricultural $ 8 $ — $ 72 $ 80 Real estate - construction: Other construction loans 3 — — 3 Real estate - mortgage 398 3 35 436 Personal 4 10 — 14 Total $ 413 $ 13 $ 107 $ 533 (Dollars in thousands) Greater 30 ‑ 59 Days 60 ‑ 89 Days Than 89 Days Total Past As of December 31, 2023 Past Due(1) Past Due Past Due Due Commercial, financial and agricultural $ 73 $ — $ — $ 73 Real estate - commercial 117 — — 117 Real estate - mortgage 332 90 4 426 Personal 9 — — 9 Total $ 531 $ 90 $ 4 $ 625 (1) Loans are considered past due when the borrower is in arrears on two or more monthly payments. Occasionally, the Company modifies loans to borrowers in financial difficulty by providing principal forgiveness, term extension, an other-then-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged off against the allowance for credit losses. In some cases, the Company may provide multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. There were no loans modified to borrowers experiencing financial difficulty during the three months ended March 31, 2024 or March 31, 2023 and, as such, there were no payment defaults on loans modified to borrowers experiencing financial difficulty during the three months ended March 31, 2024 or March 31, 2023. If the Company determines a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. 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. This analysis is performed on a continuing basis, with all such loans reviewed annually. The Company uses the following definitions for risk ratings: Special Mention Substandard Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. The following 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 March 31, 2024 and December 31, 2023, respectively. (Dollars in thousands) Special As of March 31, 2024 Pass Mention Substandard Doubtful Total Commercial, financial and agricultural $ 64,843 $ 4,245 $ 18 $ 72 $ 69,178 Real estate - commercial 221,899 13,624 919 — 236,442 Real estate - construction: 1-4 family residential construction 4,999 3 — — 5,002 Other construction loans 40,156 4,869 — — 45,025 Real estate - mortgage 159,549 212 678 — 160,439 Obligations of states and political subdivisions 16,630 — — — 16,630 Personal 4,000 — — — 4,000 Total $ 512,076 $ 22,953 $ 1,615 $ 72 $ 536,716 (Dollars in thousands) Special As of December 31, 2023 Pass Mention Substandard Doubtful Total Commercial, financial and agricultural $ 62,952 $ 2,851 $ 18 $ — $ 65,821 Real estate - commercial 203,590 13,682 5,805 — 223,077 Real estate - construction: 1-4 family residential construction 5,085 — — — 5,085 Other construction loans 42,845 4,659 — — 47,504 Real estate - mortgage 162,111 218 56 — 162,385 Obligations of states and political subdivisions 17,232 — — — 17,232 Personal 4,290 — — — 4,290 Total $ 498,105 $ 21,410 5,879 $ — $ 525,394 Based on the most recent analysis performed, the amortized cost basis by risk category of loans by class of loan and by origination year as of March 31, 2024 is as follows: Revolving Revolving (Dollars in thousands) Loans Loans Amortized Converted As of March 31, 2024 2024 2023 2022 2021 2020 Prior Cost Basis to Term Total Commercial, financial and agricultural: Risk Rating Pass $ 1,210 10,704 4,735 11,185 4,567 4,310 28,132 $ — $ 64,843 Special Mention — 68 386 — — — 3,791 — 4,245 Substandard — — — — — 18 — — 18 Doubtful — — — — — 72 — — 72 Total commercial, financial and agricultural loans $ 1,210 $ 10,772 $ 5,121 $ 11,185 $ 4,567 $ 4,400 $ 31,923 $ — $ 69,178 Commercial, financial and agricultural loans: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - commercial: Risk Rating Pass $ 15,940 36,572 53,395 27,845 15,691 69,653 2,788 $ 15 $ 221,899 Special Mention — — 4,416 — 3,915 5,098 195 — 13,624 Substandard — — — — — 919 — — 919 Doubtful — — — — — — — — — Total real estate - commercial loans $ 15,940 $ 36,572 $ 57,811 $ 27,845 $ 19,606 $ 75,670 $ 2,983 $ 15 $ 236,442 Real estate - commercial: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - construction - 1-4 family residential: Risk Rating Pass $ 28 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
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, the Company 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, the Company carries goodwill of $3.6 million relating to the acquisition. On May 12, 2023 , the Company acquired a branch office (“Path Valley”) in Spring Run, Pennsylvania. Goodwill associated with this transaction is carried at $765,000 . Total goodwill at both March 31, 2024 and December 31, 2023 was $9.8 million. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but tested for impairment at least annually as of December 31, or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. There was no goodwill impairment during the three months ended March 31, 2024 or March 31, 2023. 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 years’ digits basis. Amortization expense recognized for the intangible related to the FNBPA acquisition for the three months ended March 31, 2024 and March 31, 2023 was $3,000 and $4,000, respectively. 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 years’ digit basis. Amortization expense recognized for the intangible related to the Liverpool Community Bank acquisition for the three months ended March 31, 2024 and March 31, 2023 was $6,000 and $7,000, respectively. On May 12, 2023, a core deposit intangible in the amount of $303,000 associated with the Path Valley branch acquisition was recorded and is being amortized over a ten-year period using a sum of the years’ digit basis. Amortization expense recognized for the intangible related to the Path Valley branch acquisition for the three months ended March 31, 2024 was $13,000, while no amortization expense was recorded for the three months ended March 31, 2023. The following table shows the amortization schedule for each of the intangible assets recorded. (Dollars in thousands) Path Valley FNBPA LCB Acquisition Acquisition Acquisition Core Core Core Deposit Deposit Deposit Intangible Intangible Intangible Beginning Balance at Acquisition Date $ 303 $ 303 $ 289 Amortization expense recorded prior to January 1, 2023 — 250 167 Amortization expense recorded in the twelve months ended December 31, 2023 37 37 61 Unamortized balance as of December 31, 2023 266 16 61 Amortization expense recorded in the three months ended March 31, 2024 13 3 6 Unamortized balance as of March 31, 2024 $ 253 $ 13 $ 55 Scheduled remaining amortization expense for years ended: December 31, 2024 $ 38 $ 8 $ 17 December 31, 2025 46 5 17 December 31, 2026 40 — 12 December 31, 2027 35 — 7 December 31, 2028 29 — 2 Thereafter 65 — — |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2024 | |
DEPOSITS | |
DEPOSITS | 8. DEPOSITS At March 31, 2024 and December 31, 2023, time deposits that met or exceeded the FDIC insurance limit of $250,000 were $32.3 million and $33.4 million, respectively. |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2024 | |
BORROWINGS | |
BORROWINGS | 9. BORROWINGS Borrowings consisted of the following as of March 31, 2024 and December 31, 2023: (Dollars in thousands) March 31, December 31, 2024 2023 Securities sold under agreements to repurchase $ 17,214 $ 12,810 Short-term debt 40,000 40,000 Long-term debt with FHLB 20,000 20,000 $ 77,214 $ 72,810 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 March 31, 2024. (Dollars in thousands) Scheduled Weighted Average Year Maturities Interest Rate 2024 $ 15,000 2.29 % 2025 5,000 2.41 2026 — — 2027 — — 2028 — — Thereafter — — $ 20,000 2.32 % |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 3 Months Ended |
Mar. 31, 2024 | |
STOCK COMPENSATION PLAN | |
STOCK COMPENSATION PLAN | 10. 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 177,100 shares remained available for grant as of March 31, 2024. 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 three months ended March 31, 2024, 9,628 restricted shares were awarded to certain officers and all directors. Each of the awards vest after three-years, with no interim vesting. As of March 31, 2024, there was $266,000 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 2027 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 for the three months ended March 31, 2024 and March 31, 2023 of $34,000 and $32,000, respectively. The following table presents a summary of the status of the Company’s non-vested restricted stock awards as of March 31, 2024. Changes during the period then ended are presented further below: Weighted Average Grant Date Shares Fair Value Non-vested at January 1, 2024 25,322 $ 16.21 Vested (6,141) 16.55 Forfeited — — Granted 9,628 12.35 Non-vested at March 31, 2024 28,809 $ 14.85 No stock options were awarded during the three months ended March 31, 2024. Previously granted stock options vest over a period of three Total options outstanding as of March 31, 2024 have an exercise price of $17.80, and a weighted average remaining contractual life of approximately eleven months. As of March 31, 2024, 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 March 31, 2024, and changes during the period then ended, is presented below: 2024 Weighted Average Exercise Shares Price Outstanding at beginning of year 50,425 $ 17.76 Granted — — Exercised — — Expired (24,225) 17.72 Outstanding at end of year 26,200 $ 17.80 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 no shares issued from treasury under this plan during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there were 152,420 shares reserved for issuance under the Employee Stock Purchase Plan. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 11. 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 instruction 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 that 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. Equity Securities – Debt Securities – Other Real Estate Owned – Mortgage Servicing Rights The following tables summarize financial assets and financial liabilities measured at fair value as of March 31, 2024 and December 31, 2023 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 March 31, 2024 or December 31, 2023. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other for Identical Observable Unobservable March 31, 2024 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 $ — $ 14,127 $ — $ 14,127 Obligations of state and political subdivisions — 6,462 — 6,462 Corporate debt securities — 7,922 6,494 14,416 Mortgage-backed securities — 31,634 — 31,634 Total debt securities available for sale $ — $ 60,145 $ 6,494 $ 66,639 Equity securities $ 1,060 $ — $ — $ 1,060 Mortgage servicing rights $ — $ — $ 81 $ 81 (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other for Identical Observable Unobservable December 31, 2023 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 $ — $ 14,173 $ — $ 14,173 Obligations of state and political subdivisions — 6,508 — 6,508 Corporate debt securities — 7,675 6,153 13,828 Mortgage-backed securities — 33,055 — 33,055 Total debt securities available for sale $ — $ 61,411 $ 6,153 $ 67,564 Equity securities $ 1,073 $ — $ — $ 1,073 Mortgage servicing rights $ — $ — $ 83 $ 83 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 month periods ended March 31, 2024 and 2023. Three Months Ended (Dollars in thousands) March 31, 2024 2023 Investment Securities: Beginning balance $ 6,153 $ 7,145 Total gain (loss) included in OCI 341 (496) Purchases — — Principal payments and other — — Sales — — Balance, end of period $ 6,494 $ 6,649 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) March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and due from banks $ 5,085 $ 5,085 $ 17,189 $ 17,189 Interest bearing deposits with banks 8,352 8,352 11,741 11,741 Debt securities available for sale 66,639 66,639 67,564 67,564 Debt securities held to maturity 198,680 193,182 200,644 198,147 Loans, net of allowance for credit losses 530,924 511,280 519,717 500,439 Accrued interest receivable 2,621 2,621 2,438 2,438 Financial liabilities: Time deposits $ 198,177 $ 194,800 $ 197,387 $ 194,219 Securities sold under agreements to repurchase 17,214 N/A 12,810 N/A Short-term borrowings 40,000 39,853 40,000 39,868 Long-term debt 20,000 19,748 20,000 19,638 Other interest bearing liabilities 884 880 951 947 Accrued interest payable 1,809 1,809 1,397 1,397 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 March 31, 2024 and December 31, 2023. 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 March 31, 2024 Financial instruments – Assets Debt securities held to maturity $ 198,680 $ 193,182 $ — $ 193,182 $ — Loans, net of allowance for credit losses 530,924 511,280 — — 511,280 Financial instruments – Liabilities Time deposits $ 198,177 $ 194,800 $ — $ 194,800 $ — Short-term borrowings 40,000 39,853 — 39,853 — Long-term debt 20,000 19,748 — 19,748 — Other interest bearing liabilities 884 880 — 880 — (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, 2023 Financial instruments – Assets Debt securities held to maturity $ 200,644 $ 198,147 $ — $ 198,147 $ — Loans, net of allowance for credit losses 519,717 500,439 — — 500,439 Financial instruments – Liabilities Time deposits $ 197,387 $ 194,219 $ — $ 194,219 $ — Short-term borrowings 40,000 39,868 — 39,868 — Long-term debt 20,000 19,638 — 19,638 — Other interest bearing liabilities 951 947 — 947 — |
COMMITMENTS, CONTINGENT LIABILI
COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES | |
COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES | 12. 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 March 31, 2024, the Company had $139.7 million outstanding in loan commitments and other unused lines of credit extended to its customers as compared to $137.4 million at December 31, 2023. 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 $3.6 million of financial and performance letters of credit commitments as of March 31, 2024 and December 31, 2023, respectively. Commercial letters of credit as of March 31, 2024 and December 31, 2023 totaled $10.4 million and $9.3 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 March 31, 2024 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 | 3 Months Ended |
Mar. 31, 2024 | |
DERIVATIVES | |
DERIVATIVES | 13. DERIVATIVES The Company may use interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The Company had no interest rate swaps as of March 31, 2024 and December 31, 2023. In April 2023, the Company’s remaining interest rate swap with a notional amount of $20.0 million designated as a cash flow hedge on a short-term FHLB advance matured. Changes in the fair value of the swap were recorded in other comprehensive income. The interest rate swap was determined to be fully effective during the 2023 period and, as such, no amount of ineffectiveness was included in net income . The effect of cash flow hedge accounting on accumulated other comprehensive income for the period ended December 31, 2023 was as follows: (Dollars in thousands) December 31, 2023 Amount of Gain Location of Gain Amount of Gain Recognized in Reclassified Reclassified from OCI on Derivatives from OCI into Income OCI into Income Interest rate contract $ 2 Interest expense on short-term borrowings and repurchase agreements $ (269) Total $ 2 $ (269) The gain recognized into income for the cash flow hedging relationship on the Consolidated Statements of Income was $214,000 for the three months ended March 31, 2023. |
BRANCH ACQUISITION
BRANCH ACQUISITION | 3 Months Ended |
Mar. 31, 2024 | |
BRANCH ACQUISITION | |
BRANCH ACQUISITION | 14. BRANCH ACQUISITION On May 12, 2023, the Company completed the acquisition of a branch office in Spring Run, Pennsylvania. The acquisition included real estate and deposits. The liabilities were recorded on the balance sheet at their estimated fair values as of May 12, 2023, and their results of operations of the branch have been included in the Consolidated Statement of Income since such date. Included in the purchase price of the branch was goodwill and core deposit intangible of $765,000 and $303,000 , respectively. The core deposit intangible is being amortized over a ten-year period using a sum of the years’ digit basis. The goodwill will not be amortized but will be measured annually for impairment. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed: (Dollars in thousands) Assets: Cash received at settlement $ 17,384 Fixed assets 248 Goodwill 765 Core deposit intangible 303 Other assets purchased 3 $ 18,703 Liabilities: Deposits purchased $ 18,697 Other liabilities assumed 6 $ 18,703 The estimated fair values of the assets and liabilities, including identifiable intangible assets, are subject to refinement. Subsequent adjustments to the estimated fair values of assets and liabilities acquired, and the resulting goodwill, is allowed for a period of up to one year after the acquisition date for new information that becomes available reflecting circumstances at the acquisition date. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS On April 16, 2024, the Board of Directors declared a cash dividend of $0.22 per share to shareholders of record on May 17, 2024, payable on May 31, 2024. |
RECENT ACCOUNTING STANDARDS U_2
RECENT ACCOUNTING STANDARDS UPDATES (Policy) | 3 Months Ended |
Mar. 31, 2024 | |
RECENT ACCOUNTING STANDARDS UPDATES | |
Adoption of New Accounting Standards | Adoption of New Accounting Standards: None. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Components of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive income (loss), net of tax, consisted of the following: Unrealized Unrealized Gains Gains Gains (Dollars in thousands) (Losses) on (Losses) on (Losses) on Cash Flow AFS HTM March 31, 2024 Hedges Securities Securities Total Beginning balance, December 31, 2023 $ — $ (6,454) $ (32,186) $ (38,640) Current period other comprehensive income (loss): Other comprehensive income before reclassification — 131 — 131 Amounts reclassified from accumulated other comprehensive income — — 926 926 Net current period other comprehensive income — 131 926 1,057 Ending balance, March 31, 2024 $ — $ (6,323) $ (31,260) $ (37,583) Unrealized Unrealized Gains Gains Gains (Dollars in thousands) (Losses) on (Losses) on (Losses) on Cash Flow AFS HTM March 31, 2023 Hedges Securities Securities Total Beginning balance, December 31, 2022 $ 211 $ (6,161) $ (35,917) $ (41,867) Current period other comprehensive income (loss): Other comprehensive income before reclassification 1 29 — 30 Amounts reclassified from accumulated other comprehensive income (loss) (169) — 918 749 Net current period other comprehensive income (loss) (168) 29 918 779 Ending balance, March 31, 2023 $ 43 $ (6,132) $ (34,999) $ (41,088) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Net income $ 1,355 $ 1,733 Weighted-average common shares outstanding 4,995 5,008 Basic earnings per share 0.27 0.35 Weighted-average common shares outstanding $ 4,995 $ 5,008 Common stock equivalents due to effect of stock options 9 10 Total weighted-average common shares and equivalents $ 5,004 $ 5,018 Diluted earnings per share $ 0.27 $ 0.35 Anti-dilutive stock options outstanding 5 7 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SECURITIES | |
Schedule of Debt Securities Available for Sale and Held to Maturity | The amortized cost and fair value of debt securities as of March 31, 2024 and December 31, 2023, 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. Securities not due at a single maturity date are shown separately. (Dollars in thousands) March 31, 2024 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Obligations of U.S. Government sponsored enterprises After one year but within five years $ 15,500 $ 14,127 $ — $ (1,373) 15,500 14,127 — (1,373) Obligations of state and political subdivisions Within one year 500 500 — — After one year but within five years 2,518 2,358 — (160) After five years but within ten years 4,355 3,604 — (751) 7,373 6,462 — (911) Corporate debt securities After one year but within five years 4,592 4,069 — (523) After five years but within ten years 13,000 10,347 — (2,653) 17,592 14,416 — (3,176) Mortgage-backed securities 34,178 31,634 — (2,544) Total $ 74,643 $ 66,639 $ — $ (8,004) (Dollars in thousands) March 31, 2024 Gross Gross Amortized Fair Unrecognized Unrecognized Debt Securities Held to Maturity Cost Value Gains Losses Obligations of U.S. Government sponsored enterprises After one year but within five years $ 21,128 $ 20,967 $ — $ (161) After five years but within ten years 8,627 8,514 — (113) 29,755 29,481 — (274) Mortgage-backed securities 168,925 163,701 385 (5,609) Total $ 198,680 $ 193,182 $ 385 $ (5,883) (Dollars in thousands) December 31, 2023 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Obligations of U.S. Government sponsored enterprises After one year but within five years $ 15,500 $ 14,173 $ — $ (1,327) 15,500 14,173 — (1,327) Obligations of state and political subdivisions Within one year 500 496 — (4) After one year but within five years 2,514 2,387 — (127) After five years but within ten years 4,355 3,625 — (730) 7,369 6,508 — (861) Corporate debt securities After one year but within five years 4,608 4,048 — (560) After five years but within ten years 13,000 9,780 — (3,220) 17,608 13,828 — (3,780) Mortgage-backed securities 35,257 33,055 — (2,202) Total $ 75,734 $ 67,564 $ — $ (8,170) (Dollars in thousands) December 31, 2023 Gross Gross Amortized Fair Unrecognized Unrecognized Debt Securities Held to Maturity Cost Value Gains Losses Obligations of U.S. Government sponsored enterprises After one year but within five years $ 15,886 $ 15,984 $ 104 $ (6) After five years but within ten years 13,634 13,702 85 (17) 29,520 29,686 189 (23) Mortgage-backed securities 171,124 168,461 1,917 (4,580) Total $ 200,644 $ 198,147 $ 2,106 $ (4,603) |
Schedule of Gross Unrealized Losses and Fair Value | The following tables summarize debt securities with unrealized and unrecognized losses at March 31, 2024 and December 31, 2023, aggregated by category and length of time in a continuous unrealized loss position. Unrealized Losses at March 31, 2024 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 Securities available for sale Obligations of U.S. Government sponsored enterprises — $ — $ — 3 $ 14,127 $ (1,373) 3 $ 14,127 $ (1,373) Obligations of state and political subdivisions — — — 7 5,962 (911) 7 5,962 (911) Corporate debt securities — — — 9 14,416 (3,176) 9 14,416 (3,176) Mortgage-backed securities — — — 33 31,634 (2,544) 33 31,634 (2,544) Total temporarily impaired securities available for sale — $ — $ — 52 $ 66,139 $ (8,004) 52 $ 66,139 $ (8,004) Unrealized Losses at December 31, 2023 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 Securities available for sale Obligations of U.S. Government sponsored enterprises — $ — $ — 3 $ 14,173 $ (1,327) 3 $ 14,173 $ (1,327) Obligations of state and political subdivisions 1 1,456 (11) 7 5,052 (850) 8 6,508 (861) Corporate debt securities — — — 9 13,828 (3,780) 9 13,828 (3,780) Mortgage-backed securities — — — 34 33,055 (2,202) 34 33,055 (2,202) Total temporarily impaired securities available for sale 1 $ 1,456 $ (11) 53 $ 66,108 $ (8,159) 54 $ 67,564 $ (8,170) Securities held to maturity Obligations of U.S. Government sponsored enterprises 2 $ 8,258 $ (23) — $ — $ — 2 $ 8,258 $ (23) Mortgage-backed securities 6 17,894 (480) 16 50,843 (4,100) 22 68,737 (4,580) Total temporarily impaired securities held to maturity 8 $ 26,152 $ (503) 16 $ 50,843 $ (4,100) 24 $ 76,995 $ (4,603) Total 9 $ 27,608 $ (514) 69 $ 116,951 $ (12,259) 78 $ 144,559 $ (12,773) |
Schedule of amortized cost of held to maturity debt securities by credit quality indicator | The following table summarizes the amortized cost of held to maturity debt securities aggregated by credit quality indicator based on the latest information available as of March 31, 2024. (Dollars in thousands) March 31, 2024 AAA Total Securities held to maturity Obligations of U.S. Government sponsored enterprises $ 29,755 $ 29,755 Mortgage-backed securities 168,925 168,925 $ 198,680 $ 198,680 |
LOANS AND RELATED ALLOWANCE F_2
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | |
Loan Portfolio by Class | The following table presents the loan portfolio by class at March 31, 2024 and December 31, 2023. (Dollars in thousands) March 31, 2024 December 31, 2023 Commercial, financial and agricultural $ 69,178 $ 65,821 Real estate - commercial 236,442 223,077 Real estate - construction: 1-4 family residential construction 5,002 5,085 Other construction loans 45,025 47,504 Real estate - mortgage 160,439 162,385 Obligations of states and political subdivisions 16,630 17,232 Personal 4,000 4,290 Total $ 536,716 $ 525,394 |
Activity in the Allowance for Loan Losses by Loan Class | The following tables disclose allowance for credit loss activity by loan class for the three months ended March 31, 2024 and March 31, 2023. Real estate- Obligations Commercial, construction Real estate- of states (Dollars in thousands) financial and Real estate- 1-4 family construction and political Real estate- agricultural commercial residential other subdivisions mortgage Personal Total Three Months Ended March 31, 2024 Allowance for credit losses: Beginning balance, $ 740 $ 2,799 $ 104 $ 778 $ 39 $ 1,157 $ 60 $ 5,677 Provision for credit losses 40 144 1 (30) 18 (50) (3) 120 Loans charged off — — — — — — (9) (9) Recoveries collected — — — — — 1 3 4 Total ending allowance balance $ 780 $ 2,943 $ 105 $ 748 $ 57 $ 1,108 $ 51 $ 5,792 Real estate- Obligations Commercial, construction Real estate- of states (Dollars in thousands) financial and Real estate- 1-4 family construction and political Real estate- agricultural commercial residential other subdivisions mortgage Personal Total Three Months Ended March 31, 2023 Allowance for loan losses: Beginning balance, prior to ASC 326 adoption $ 297 $ 1,110 $ 69 $ 1,077 $ 54 $ 1,385 $ 35 $ 4,027 Impact of adopting ASC 326 337 1,204 114 (407) (9) (497) 15 757 Initial allowance on loans purchased with credit deterioration 106 248 354 Provision for credit losses (2) 176 (26) 101 — (23) 17 243 Loans charged off — — — — — (19) (7) (26) Recoveries collected — — — — — 18 1 19 Total ending allowance balance $ 632 $ 2,596 $ 157 $ 771 $ 45 $ 1,112 $ 61 $ 5,374 |
Schedule of collateral dependent loans | The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of March 31, 2024. (Dollars in thousands) Real Estate Real estate - mortgage $ 122 Total $ 122 The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of December 31, 2023. (Dollars in thousands) Real Estate Real estate - commercial $ 4,877 Real estate - mortgage 57 Total $ 4,934 |
Nonaccrual Loans by Classes of the Loan Portfolio | The following tables present the amortized cost basis of loans on nonaccrual status, including nonaccrual status loans with no allowance, and loans past due over 89 days still accruing as of March 31, 2024 and December 31, 2023, respectively. (Dollars in thousands) Nonaccrual with Nonaccrual with Loans Past Due No Allowance an Allowance Over 89 Days As of March 31, 2024 for Credit Loss for Credit Loss Still Accruing(1) Commercial, financial and agricultural $ — $ 90 $ — Real estate - mortgage 122 — 35 Total $ 122 $ 90 $ 35 (Dollars in thousands) Nonaccrual with Nonaccrual with Loans Past Due No Allowance an Allowance Over 89 Days As of December 31, 2023 for Credit Loss for Credit Loss Still Accruing(1) Commercial, financial and agricultural $ — $ 18 $ — Real estate - commercial 4,877 — — Real estate - mortgage 57 — — Total $ 4,934 $ 18 $ — (1) These loans are guaranteed, or well-secured, and there is an effective means of collection in process. |
Loan Portfolio Summarized by the Past Due Status | (Dollars in thousands) Greater 30 ‑ 59 Days 60 ‑ 89 Days Than 89 Days Total Past As of March 31, 2024 Past Due(1) Past Due Past Due Due Commercial, financial and agricultural $ 8 $ — $ 72 $ 80 Real estate - construction: Other construction loans 3 — — 3 Real estate - mortgage 398 3 35 436 Personal 4 10 — 14 Total $ 413 $ 13 $ 107 $ 533 (Dollars in thousands) Greater 30 ‑ 59 Days 60 ‑ 89 Days Than 89 Days Total Past As of December 31, 2023 Past Due(1) Past Due Past Due Due Commercial, financial and agricultural $ 73 $ — $ — $ 73 Real estate - commercial 117 — — 117 Real estate - mortgage 332 90 4 426 Personal 9 — — 9 Total $ 531 $ 90 $ 4 $ 625 (1) Loans are considered past due when the borrower is in arrears on two or more monthly payments. |
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 March 31, 2024 and December 31, 2023, respectively. (Dollars in thousands) Special As of March 31, 2024 Pass Mention Substandard Doubtful Total Commercial, financial and agricultural $ 64,843 $ 4,245 $ 18 $ 72 $ 69,178 Real estate - commercial 221,899 13,624 919 — 236,442 Real estate - construction: 1-4 family residential construction 4,999 3 — — 5,002 Other construction loans 40,156 4,869 — — 45,025 Real estate - mortgage 159,549 212 678 — 160,439 Obligations of states and political subdivisions 16,630 — — — 16,630 Personal 4,000 — — — 4,000 Total $ 512,076 $ 22,953 $ 1,615 $ 72 $ 536,716 (Dollars in thousands) Special As of December 31, 2023 Pass Mention Substandard Doubtful Total Commercial, financial and agricultural $ 62,952 $ 2,851 $ 18 $ — $ 65,821 Real estate - commercial 203,590 13,682 5,805 — 223,077 Real estate - construction: 1-4 family residential construction 5,085 — — — 5,085 Other construction loans 42,845 4,659 — — 47,504 Real estate - mortgage 162,111 218 56 — 162,385 Obligations of states and political subdivisions 17,232 — — — 17,232 Personal 4,290 — — — 4,290 Total $ 498,105 $ 21,410 5,879 $ — $ 525,394 Based on the most recent analysis performed, the amortized cost basis by risk category of loans by class of loan and by origination year as of March 31, 2024 is as follows: Revolving Revolving (Dollars in thousands) Loans Loans Amortized Converted As of March 31, 2024 2024 2023 2022 2021 2020 Prior Cost Basis to Term Total Commercial, financial and agricultural: Risk Rating Pass $ 1,210 10,704 4,735 11,185 4,567 4,310 28,132 $ — $ 64,843 Special Mention — 68 386 — — — 3,791 — 4,245 Substandard — — — — — 18 — — 18 Doubtful — — — — — 72 — — 72 Total commercial, financial and agricultural loans $ 1,210 $ 10,772 $ 5,121 $ 11,185 $ 4,567 $ 4,400 $ 31,923 $ — $ 69,178 Commercial, financial and agricultural loans: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - commercial: Risk Rating Pass $ 15,940 36,572 53,395 27,845 15,691 69,653 2,788 $ 15 $ 221,899 Special Mention — — 4,416 — 3,915 5,098 195 — 13,624 Substandard — — — — — 919 — — 919 Doubtful — — — — — — — — — Total real estate - commercial loans $ 15,940 $ 36,572 $ 57,811 $ 27,845 $ 19,606 $ 75,670 $ 2,983 $ 15 $ 236,442 Real estate - commercial: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - construction - 1-4 family residential: Risk Rating Pass $ 282 1,305 3,412 — — — — — $ 4,999 Special Mention — — 3 — — — — — 3 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total real estate - construction - 1-4 family residential loans $ 282 $ 1,305 $ 3,415 $ — $ — $ — $ — $ — $ 5,002 Real estate - construction - 1-4 family residential: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - construction - other: Risk Rating Pass $ 64 5,603 7,792 13,907 2,332 3,113 7,203 142 $ 40,156 Special Mention — — — — 4,641 228 4,869 Substandard — — — — — — Doubtful — — — — — — Total real estate - construction - other loans $ 64 $ 5,603 $ 7,792 $ 13,907 $ 6,973 $ 3,341 $ 7,203 $ 142 $ 45,025 Real estate - construction - other: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Revolving Revolving (Dollars in thousands) Loans Loans Amortized Converted As of March 31, 2024 (cont.) 2024 2023 2022 2021 2020 Prior Cost Basis to Term Total Real estate - mortgage: Risk Rating Pass $ 2,660 26,247 42,317 18,410 14,050 47,724 7,859 282 $ 159,549 Special Mention — — — — — 212 — — 212 Substandard — — — — — 678 — — 678 Doubtful — — — — — — — — Total real estate - mortgage loans $ 2,660 $ 26,247 $ 42,317 $ 18,410 $ 14,050 $ 48,614 $ 7,859 $ 282 $ 160,439 Real estate - mortgage: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Obligations of states and political subdivisions: Risk Rating Pass $ 1,226 643 3,866 2,283 4,926 3,686 — — $ 16,630 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total Obligations of states and political subdivisions $ 1,226 $ 643 $ 3,866 $ 2,283 $ 4,926 $ 3,686 $ — $ — $ 16,630 Obligations of states and political subdivisions: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Personal: Risk Rating Pass $ 354 2,044 906 286 60 241 87 22 $ 4,000 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total personal loans $ 354 $ 2,044 $ 906 $ 286 $ 60 $ 241 $ 87 $ 22 $ 4,000 Personal: Current period gross write offs $ — $ — $ — $ — $ — $ (9) $ — $ — $ (9) The amortized cost basis by risk category of loans by class of loan and by origination year as of December 31, 2023 is as follows: Revolving Revolving (Dollars in thousands) Loans Loans Amortized Converted As of December 31, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Commercial, financial and agricultural: Risk Rating Pass $ 10,750 $ 5,123 $ 11,793 $ 4,971 $ 3,903 $ 830 $ 25,582 $ — $ 62,952 Special Mention 70 414 — — 72 — 2,295 — 2,851 Substandard — — — — — 18 — — 18 Doubtful — — — — — — — — — Total commercial, financial and agricultural loans $ 10,820 $ 5,537 $ 11,793 $ 4,971 $ 3,975 $ 848 $ 27,877 $ — $ 65,821 Commercial, financial and agricultural loans: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - commercial: Risk Rating Pass $ 36,375 $ 53,927 $ 23,561 $ 15,952 $ 17,606 $ 53,465 $ 2,688 $ 16 $ 203,590 Special Mention — 4,469 — 3,894 211 4,909 199 — 13,682 Substandard — — — 4,877 — 928 — — 5,805 Doubtful — — — — — — — — — Total real estate - commercial loans $ 36,375 $ 58,396 $ 23,561 $ 24,723 $ 17,817 $ 59,302 $ 2,887 $ 16 $ 223,077 Real estate - commercial: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - construction - 1-4 family residential: Risk Rating Pass $ 1,674 $ 3,411 $ — $ — $ — $ — $ — $ — $ 5,085 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total real estate - construction - 1-4 family residential loans $ 1,674 $ 3,411 $ — $ — $ — $ — $ — $ — $ 5,085 Real estate - construction - 1-4 family residential: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - construction - other: Risk Rating Pass $ 5,254 $ 7,405 $ 17,928 $ 2,354 $ 276 $ 3,088 $ 6,390 $ 150 $ 42,845 Special Mention — — 2 4,657 — — — — 4,659 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total real estate - construction - other loans $ 5,254 $ 7,405 $ 17,930 $ 7,011 $ 276 $ 3,088 $ 6,390 $ 150 $ 47,504 Real estate - construction - other: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Revolving Revolving (Dollars in thousands) Loans Loans Amortized Converted As of December 31, 2023 (cont.) 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Real estate - mortgage: Risk Rating Pass $ 27,062 $ 43,005 $ 19,173 $ 14,577 $ 5,524 $ 44,359 $ 8,084 $ 327 $ 162,111 Special Mention — — — — — 218 — — 218 Substandard — — — — — 56 — — 56 Doubtful — — — — — — — — — Total real estate - mortgage loans $ 27,062 $ 43,005 $ 19,173 $ 14,577 $ 5,524 $ 44,633 $ 8,084 $ 327 $ 162,385 Real estate - mortgage: Current period gross write offs $ — $ — $ — $ — $ — $ (19) $ — $ — $ (19) Obligations of states and political subdivisions: Risk Rating Pass $ 350 $ 3,876 $ 2,413 $ 5,094 $ 12 $ 5,486 $ 1 $ — $ 17,232 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total Obligations of states and political subdivisions $ 350 $ 3,876 $ 2,413 $ 5,094 $ 12 $ 5,486 $ 1 $ — $ 17,232 Obligations of states and political subdivisions: Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Personal: Risk Rating Pass $ 2,385 $ 1,093 $ 362 $ 87 $ 63 $ 187 $ 91 $ 22 $ 4,290 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total personal loans $ 2,385 $ 1,093 $ 362 $ 87 $ 63 $ 187 $ 91 $ 22 $ 4,290 Personal: Current period gross write offs $ (4) $ (2) $ — $ (4) $ — $ (18) $ — $ — $ (28) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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) Path Valley FNBPA LCB Acquisition Acquisition Acquisition Core Core Core Deposit Deposit Deposit Intangible Intangible Intangible Beginning Balance at Acquisition Date $ 303 $ 303 $ 289 Amortization expense recorded prior to January 1, 2023 — 250 167 Amortization expense recorded in the twelve months ended December 31, 2023 37 37 61 Unamortized balance as of December 31, 2023 266 16 61 Amortization expense recorded in the three months ended March 31, 2024 13 3 6 Unamortized balance as of March 31, 2024 $ 253 $ 13 $ 55 Scheduled remaining amortization expense for years ended: December 31, 2024 $ 38 $ 8 $ 17 December 31, 2025 46 5 17 December 31, 2026 40 — 12 December 31, 2027 35 — 7 December 31, 2028 29 — 2 Thereafter 65 — — |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
BORROWINGS | |
Schedule of borrowings | Borrowings consisted of the following as of March 31, 2024 and December 31, 2023: (Dollars in thousands) March 31, December 31, 2024 2023 Securities sold under agreements to repurchase $ 17,214 $ 12,810 Short-term debt 40,000 40,000 Long-term debt with FHLB 20,000 20,000 $ 77,214 $ 72,810 |
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 March 31, 2024. (Dollars in thousands) Scheduled Weighted Average Year Maturities Interest Rate 2024 $ 15,000 2.29 % 2025 5,000 2.41 2026 — — 2027 — — 2028 — — Thereafter — — $ 20,000 2.32 % |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024. Changes during the period then ended are presented further below: Weighted Average Grant Date Shares Fair Value Non-vested at January 1, 2024 25,322 $ 16.21 Vested (6,141) 16.55 Forfeited — — Granted 9,628 12.35 Non-vested at March 31, 2024 28,809 $ 14.85 |
Schedule of stock options activity | A summary of the status of the outstanding stock options as of March 31, 2024, and changes during the period then ended, is presented below: 2024 Weighted Average Exercise Shares Price Outstanding at beginning of year 50,425 $ 17.76 Granted — — Exercised — — Expired (24,225) 17.72 Outstanding at end of year 26,200 $ 17.80 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023 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 March 31, 2024 or December 31, 2023. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other for Identical Observable Unobservable March 31, 2024 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 $ — $ 14,127 $ — $ 14,127 Obligations of state and political subdivisions — 6,462 — 6,462 Corporate debt securities — 7,922 6,494 14,416 Mortgage-backed securities — 31,634 — 31,634 Total debt securities available for sale $ — $ 60,145 $ 6,494 $ 66,639 Equity securities $ 1,060 $ — $ — $ 1,060 Mortgage servicing rights $ — $ — $ 81 $ 81 (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other for Identical Observable Unobservable December 31, 2023 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 $ — $ 14,173 $ — $ 14,173 Obligations of state and political subdivisions — 6,508 — 6,508 Corporate debt securities — 7,675 6,153 13,828 Mortgage-backed securities — 33,055 — 33,055 Total debt securities available for sale $ — $ 61,411 $ 6,153 $ 67,564 Equity securities $ 1,073 $ — $ — $ 1,073 Mortgage servicing rights $ — $ — $ 83 $ 83 |
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 month periods ended March 31, 2024 and 2023. Three Months Ended (Dollars in thousands) March 31, 2024 2023 Investment Securities: Beginning balance $ 6,153 $ 7,145 Total gain (loss) included in OCI 341 (496) Purchases — — Principal payments and other — — Sales — — Balance, end of period $ 6,494 $ 6,649 |
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) March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and due from banks $ 5,085 $ 5,085 $ 17,189 $ 17,189 Interest bearing deposits with banks 8,352 8,352 11,741 11,741 Debt securities available for sale 66,639 66,639 67,564 67,564 Debt securities held to maturity 198,680 193,182 200,644 198,147 Loans, net of allowance for credit losses 530,924 511,280 519,717 500,439 Accrued interest receivable 2,621 2,621 2,438 2,438 Financial liabilities: Time deposits $ 198,177 $ 194,800 $ 197,387 $ 194,219 Securities sold under agreements to repurchase 17,214 N/A 12,810 N/A Short-term borrowings 40,000 39,853 40,000 39,868 Long-term debt 20,000 19,748 20,000 19,638 Other interest bearing liabilities 884 880 951 947 Accrued interest payable 1,809 1,809 1,397 1,397 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 March 31, 2024 and December 31, 2023. 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 March 31, 2024 Financial instruments – Assets Debt securities held to maturity $ 198,680 $ 193,182 $ — $ 193,182 $ — Loans, net of allowance for credit losses 530,924 511,280 — — 511,280 Financial instruments – Liabilities Time deposits $ 198,177 $ 194,800 $ — $ 194,800 $ — Short-term borrowings 40,000 39,853 — 39,853 — Long-term debt 20,000 19,748 — 19,748 — Other interest bearing liabilities 884 880 — 880 — (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, 2023 Financial instruments – Assets Debt securities held to maturity $ 200,644 $ 198,147 $ — $ 198,147 $ — Loans, net of allowance for credit losses 519,717 500,439 — — 500,439 Financial instruments – Liabilities Time deposits $ 197,387 $ 194,219 $ — $ 194,219 $ — Short-term borrowings 40,000 39,868 — 39,868 — Long-term debt 20,000 19,638 — 19,638 — Other interest bearing liabilities 951 947 — 947 — |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
DERIVATIVES | |
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 period ended December 31, 2023 was as follows: (Dollars in thousands) December 31, 2023 Amount of Gain Location of Gain Amount of Gain Recognized in Reclassified Reclassified from OCI on Derivatives from OCI into Income OCI into Income Interest rate contract $ 2 Interest expense on short-term borrowings and repurchase agreements $ (269) Total $ 2 $ (269) |
BRANCH ACQUISITION (Tables)
BRANCH ACQUISITION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
BRANCH ACQUISITION | |
Summary of estimated fair value of the assets acquired and liabilities assumed | (Dollars in thousands) Assets: Cash received at settlement $ 17,384 Fixed assets 248 Goodwill 765 Core deposit intangible 303 Other assets purchased 3 $ 18,703 Liabilities: Deposits purchased $ 18,697 Other liabilities assumed 6 $ 18,703 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Beginning balance | $ 40,137 | $ 35,693 |
Net current period other comprehensive income (loss) | 1,057 | 779 |
Ending balance | 41,482 | 36,273 |
Gains (Losses) on Cash Flow Hedges | ||
Beginning balance | 211 | |
Other comprehensive income before reclassification | 1 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (169) | |
Net current period other comprehensive income (loss) | (168) | |
Ending balance | 43 | |
Unrealized Gains (Losses) on AFS Securities | ||
Beginning balance | (6,454) | (6,161) |
Other comprehensive income before reclassification | 131 | 29 |
Net current period other comprehensive income (loss) | 131 | 29 |
Ending balance | (6,323) | (6,132) |
Unrealized Gains (Losses) on HTM Securities | ||
Beginning balance | (32,186) | (35,917) |
Other comprehensive income before reclassification | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 926 | 918 |
Net current period other comprehensive income (loss) | 926 | 918 |
Ending balance | (31,260) | (34,999) |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (38,640) | (41,867) |
Other comprehensive income before reclassification | 131 | 30 |
Amounts reclassified from accumulated other comprehensive income (loss) | 926 | 749 |
Net current period other comprehensive income (loss) | 1,057 | 779 |
Ending balance | $ (37,583) | $ (41,088) |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
EARNINGS PER SHARE | ||
Net income | $ 1,355 | $ 1,733 |
Weighted-average common shares outstanding | 4,995 | 5,008 |
Basic earnings per share | $ 0.27 | $ 0.35 |
Common stock equivalents due to effect of stock options | 9 | 10 |
Total weighted-average common shares and equivalents | 5,004 | 5,018 |
Diluted earnings per share | $ 0.27 | $ 0.35 |
Anti-dilutive stock options outstanding | 5 | 7 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Debt securities available for sale | $ 66,639,000 | $ 67,564,000 | |
Carrying value of pledged assets | 177,900,000 | 192,100,000 | |
Equity securities | 1,060,000 | 1,073,000 | |
Held-to-maturity securities | 198,680,000 | 200,644,000 | |
Realized gain (loss) on equity securities | (13,000) | $ (22,000) | |
Proceeds from sales or calls of securities | $ 0 | $ 0 | |
Mortgage-Backed Securities | |||
Investment portfolio percentage | 75% | ||
Held-to-maturity securities | $ 168,925,000 | ||
Obligations of U.S. Government Agencies and Corporations | |||
Investment portfolio percentage | 17% | ||
Debt securities available for sale | $ 14,127,000 | 14,173,000 | |
Held-to-maturity securities | $ 29,755,000 | 29,520,000 | |
Corporate Debt Securities | |||
Investment portfolio percentage | 6% | ||
Debt securities available for sale | $ 14,416,000 | 13,828,000 | |
Obligations of State and Political Subdivisions | |||
Investment portfolio percentage | 2% | ||
Debt securities available for sale | $ 6,462,000 | 6,508,000 | |
Debt Securities Maturity Term | 5 years | ||
Federal Farm Credit Bank | |||
Available-for-sale and held-to-maturity securities greater than 10% of stockholders equity | $ 11,300,000 | 11,300,000 | |
Pennsylvania Housing Finance | |||
Available-for-sale and held-to-maturity securities greater than 10% of stockholders equity | $ 4,800,000 | $ 4,900,000 |
SECURITIES (Debt Securities Ava
SECURITIES (Debt Securities Available for Sale) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Schedule of Available-for-sale Securities | ||
Amortized Cost of AFS Securities, Total | $ 74,643 | $ 75,734 |
Gross Unrealized Gains on AFS Securities, Total | 0 | 0 |
Gross Unrealized Losses on AFS Securities, Total | (8,004) | (8,170) |
Obligations of U.S. Government Agencies and Corporations | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of AFS Securities Maturing After One Year But Within Five Years | 15,500 | 15,500 |
Amortized Cost of AFS Securities, Total | 15,500 | 15,500 |
Fair Value of AFS Securities Maturing After One Year But Within Five Years | 14,127 | 14,173 |
Gross Unrealized Gains on AFS Securities Maturing After One Year But Within Five 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 | (1,373) | (1,327) |
Gross Unrealized Losses on AFS Securities, Total | (1,373) | (1,327) |
Obligations of State and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of AFS Securities Maturing Within One Year | 500 | 500 |
Amortized Cost of AFS Securities Maturing After One Year But Within Five Years | 2,518 | 2,514 |
Amortized Cost of AFS Securities Maturing After Five Years But Within Ten Years | 4,355 | 4,355 |
Amortized Cost of AFS Securities, Total | 7,373 | 7,369 |
Fair Value of AFS Securities Maturing Within One Year | 500 | 496 |
Fair Value of AFS Securities Maturing After One Year But Within Five Years | 2,358 | 2,387 |
Fair Value of AFS Securities Maturing After Five Years But Within Ten Years | 3,604 | 3,625 |
Gross Unrealized Gains on AFS Securities Maturing Within One Year | 0 | 0 |
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 Within One Year | (4) | |
Gross Unrealized Losses on AFS Securities Maturing After One Year But Within Five Years | (160) | (127) |
Gross Unrealized Losses on AFS Securities Maturing After Five Years But Within Ten Years | (751) | (730) |
Gross Unrealized Losses on AFS Securities, Total | (911) | (861) |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of AFS Securities Maturing After One Year But Within Five Years | 4,592 | 4,608 |
Amortized Cost of AFS Securities Maturing After Five Years But Within Ten Years | 13,000 | 13,000 |
Amortized Cost of AFS Securities, Total | 17,592 | 17,608 |
Fair Value of AFS Securities Maturing After One Year But Within Five Years | 4,069 | 4,048 |
Fair Value of AFS Securities Maturing After Five Years But Within Ten Years | 10,347 | 9,780 |
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 | (523) | (560) |
Gross Unrealized Losses on AFS Securities Maturing After Five Years But Within Ten Years | (2,653) | (3,220) |
Gross Unrealized Losses on AFS Securities, Total | (3,176) | (3,780) |
Mortgage-Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of AFS Securities Without Single Maturity Date | 34,178 | 35,257 |
Fair Value of AFS Securities Without Single Maturity Date | 31,634 | 33,055 |
Gross Unrealized Gains on AFS Securities Without Single Maturity Date | 0 | 0 |
Gross Unrealized Losses on AFS Securities Without Single Maturity Date | $ (2,544) | $ (2,202) |
SECURITIES (Held to Maturity) (
SECURITIES (Held to Maturity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Schedule of Held-to-Maturity Securities | ||
Amortized Cost of HTM Securities, Total | $ 198,680 | $ 200,644 |
Fair Value of HTM Securities, Total | 193,182 | 198,147 |
Gross Unrealized Gains on HTM Securities, Total | 385 | 2,106 |
Gross Unrealized Losses on HTM Securities, Total | (5,883) | (4,603) |
Obligations of U.S. Government Agencies and Corporations | ||
Schedule of Held-to-Maturity Securities | ||
Amortized Cost of HTM Securities Maturing After One Year But Within Five Years | 21,128 | 15,886 |
Amortized Cost of HTM Securities Maturing After Five Years But Within Ten Years | 8,627 | 13,634 |
Amortized Cost of HTM Securities, Total | 29,755 | 29,520 |
Fair Value of HTM Securities Maturing After One Year But Within Five Years | 20,967 | 15,984 |
Fair Value of HTM Securities Maturing After Five Years But Within Ten Years | 8,514 | 13,702 |
Fair Value of HTM Securities, Total | 29,481 | 29,686 |
Gross Unrealized Gains on HTM Securities Maturing After one year but within five years | 104 | |
Gross Unrealized Gains on HTM Securities Maturing After five years but within ten years | 85 | |
Gross Unrealized Gains on HTM Securities, Total | 189 | |
Gross Unrealized Losses on HTM Securities Maturing After one year but within five years | (161) | (6) |
Gross Unrealized Losses on HTM Securities Maturing After five years but within ten years | (113) | (17) |
Gross Unrealized Losses on HTM Securities, Total | (274) | (23) |
Mortgage-Backed Securities | ||
Schedule of Held-to-Maturity Securities | ||
Amortized Cost of HTM Securities, Total | 168,925 | |
Amortized Cost of HTM Securities Without Single Maturity Date | 168,925 | 171,124 |
Fair Value of HTM Securities Without Single Maturity Date | 163,701 | 168,461 |
Gross Unrealized Gains on HTM Securities Without Single Maturity Date | 385 | 1,917 |
Gross Unrealized Losses on HTM Securities Without Single Maturity Date | $ (5,609) | $ (4,580) |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
SECURITIES | ||
Gross proceeds from sales and calls of securities | $ 0 | $ 0 |
SECURITIES (Schedule of Unreali
SECURITIES (Schedule of Unrealized Losses) (Details) $ in Thousands | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Schedule of Available-for-sale Securities | ||
Number of Securities, Less Than 12 Months | security | 1 | |
Fair Value, Less Than 12 Months | $ 1,456 | |
Unrealized Losses, Less Than 12 Months | $ (11) | |
Number of Securities, 12 Months or More | security | 52 | 53 |
Fair Value, 12 Months or More | $ 66,139 | $ 66,108 |
Unrealized Losses, 12 Months or More | $ (8,004) | $ (8,159) |
Number of Securities, Total | security | 52 | 54 |
Fair Value, Total | $ 66,139 | $ 67,564 |
Unrealized Losses, Total | $ (8,004) | $ (8,170) |
Number of Securities, Less Than 12 Months. | security | 8 | |
Fair Value, Less Than 12 Months | $ 26,152 | |
Unrealized Losses, Less Than 12 Months | $ (503) | |
Number of Securities, 12 Months or More | security | 16 | |
Fair Value, 12 Months or More | $ 50,843 | |
Unrealized Losses, 12 Months or More | $ (4,100) | |
Number of Securities, Total | security | 24 | |
Fair Value, Total | $ 76,995 | |
Unrealized Losses, Total | $ (4,603) | |
Number of Securities, Less Than 12 Months. | security | 9 | |
Fair Value, Less Than 12 Months | $ 27,608 | |
Unrealized Losses, Less Than 12 Months | $ (514) | |
Number of Securities, 12 Months or More | security | (69) | |
Fair Value, 12 Months or More | $ 116,951 | |
Unrealized Losses, 12 Months or More | $ (12,259) | |
Number of Securities, Total | security | 78 | |
Fair Value, Total | $ 144,559 | |
Unrealized Losses, Total | $ (12,773) | |
Obligations of U.S. Government Agencies and Corporations | ||
Schedule of Available-for-sale Securities | ||
Number of Securities, 12 Months or More | security | 3 | 3 |
Fair Value, 12 Months or More | $ 14,127 | $ 14,173 |
Unrealized Losses, 12 Months or More | $ (1,373) | $ (1,327) |
Number of Securities, Total | security | 3 | 3 |
Fair Value, Total | $ 14,127 | $ 14,173 |
Unrealized Losses, Total | $ (1,373) | $ (1,327) |
Number of Securities, Less Than 12 Months. | security | 2 | |
Fair Value, Less Than 12 Months | $ 8,258 | |
Unrealized Losses, Less Than 12 Months | $ (23) | |
Number of Securities, 12 Months or More | security | 0 | |
Fair Value, 12 Months or More | $ 0 | |
Unrealized Losses, 12 Months or More | $ 0 | |
Number of Securities, Total | security | 2 | |
Fair Value, Total | $ 8,258 | |
Unrealized Losses, Total | $ (23) | |
Obligations of State and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Number of Securities, Less Than 12 Months | security | 1 | |
Fair Value, Less Than 12 Months | $ 1,456 | |
Unrealized Losses, Less Than 12 Months | $ (11) | |
Number of Securities, 12 Months or More | security | 7 | 7 |
Fair Value, 12 Months or More | $ 5,962 | $ 5,052 |
Unrealized Losses, 12 Months or More | $ (911) | $ (850) |
Number of Securities, Total | security | 7 | 8 |
Fair Value, Total | $ 5,962 | $ 6,508 |
Unrealized Losses, Total | $ (911) | $ (861) |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Number of Securities, 12 Months or More | security | 9 | 9 |
Fair Value, 12 Months or More | $ 14,416 | $ 13,828 |
Unrealized Losses, 12 Months or More | $ (3,176) | $ (3,780) |
Number of Securities, Total | security | 9 | 9 |
Fair Value, Total | $ 14,416 | $ 13,828 |
Unrealized Losses, Total | $ (3,176) | $ (3,780) |
Mortgage-Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Number of Securities, 12 Months or More | security | 33 | 34 |
Fair Value, 12 Months or More | $ 31,634 | $ 33,055 |
Unrealized Losses, 12 Months or More | $ (2,544) | $ (2,202) |
Number of Securities, Total | security | 33 | 34 |
Fair Value, Total | $ 31,634 | $ 33,055 |
Unrealized Losses, Total | $ (2,544) | $ (2,202) |
Number of Securities, Less Than 12 Months. | security | 6 | |
Fair Value, Less Than 12 Months | $ 17,894 | |
Unrealized Losses, Less Than 12 Months | $ (480) | |
Number of Securities, 12 Months or More | security | 16 | |
Fair Value, 12 Months or More | $ 50,843 | |
Unrealized Losses, 12 Months or More | $ (4,100) | |
Number of Securities, Total | security | 22 | |
Fair Value, Total | $ 68,737 | |
Unrealized Losses, Total | $ (4,580) |
SECURITIES (Aggregation by cred
SECURITIES (Aggregation by credit quality indicator) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Held-to-Maturity Securities | ||
Amortized Cost of HTM Securities, Total | $ 198,680 | $ 200,644 |
Obligations of U.S. Government Agencies and Corporations | ||
Schedule of Held-to-Maturity Securities | ||
Amortized Cost of HTM Securities, Total | 29,755 | $ 29,520 |
Mortgage-Backed Securities | ||
Schedule of Held-to-Maturity Securities | ||
Amortized Cost of HTM Securities, Total | 168,925 | |
Fitch, AAA Rating | ||
Schedule of Held-to-Maturity Securities | ||
Amortized Cost of HTM Securities, Total | 198,680 | |
Fitch, AAA Rating | Obligations of U.S. Government Agencies and Corporations | ||
Schedule of Held-to-Maturity Securities | ||
Amortized Cost of HTM Securities, Total | 29,755 | |
Fitch, AAA Rating | Mortgage-Backed Securities | ||
Schedule of Held-to-Maturity Securities | ||
Amortized Cost of HTM Securities, Total | $ 168,925 |
LOANS AND RELATED ALLOWANCE F_3
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Financing Receivable, Allowance for Credit Losses | ||
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. | |
Interest income on nonaccrual loans | $ 0 | $ 12,000 |
Unfunded commitments | 63,500,000 | 56,000,000 |
Unfunded commitments, allowance for credit loss | $ 463,000 | 419,000 |
Home Equity Lines of Credit | ||
Financing Receivable, Allowance for Credit Losses | ||
Maximum loan-to-value ratio | 90% | |
Home Equity Installments | ||
Financing Receivable, Allowance for Credit Losses | ||
Maximum loan-to-value ratio | 80% | |
Commercial Portfolio Segment | Commercial Loan | ||
Financing Receivable, Allowance for Credit Losses | ||
Maximum loan-to-value ratio | 80% | |
Commercial Portfolio Segment | Home Equity Lines of Credit | ||
Financing Receivable, Allowance for Credit Losses | ||
Loan period for lending, maximum | 20 years | |
Commercial Portfolio Segment | Home Equity Installments | ||
Financing Receivable, Allowance for Credit Losses | ||
Loan period for lending, maximum | 15 years | |
Consumer Portfolio Segment | Mortgage Loan | ||
Financing Receivable, Allowance for Credit Losses | ||
Maximum loan-to-value ratio | 80% | |
Loan period for lending, maximum | 25 years | |
Loan balance in the process of foreclosure | $ 0 | $ 0 |
Real Estate Portfolio Segment | Commercial Loan | ||
Financing Receivable, Allowance for Credit Losses | ||
Loan period for lending, maximum | 20 years |
LOANS AND RELATED ALLOWANCE F_4
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Loan Portfolio by Class) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | $ 536,716 | $ 525,394 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | 69,178 | 65,821 |
Commercial Loan | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | 236,442 | 223,077 |
1-4 family residential construction | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | 5,002 | 5,085 |
Other construction loans | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | 45,025 | 47,504 |
Mortgage Loan | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | 160,439 | 162,385 |
Obligations of State and Political Subdivisions | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | 16,630 | 17,232 |
Personal Loan | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | $ 4,000 | $ 4,290 |
LOANS AND RELATED ALLOWANCE F_5
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Allowance for Credit Loss Activity By Loan Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 5,677 | |
Initial allowance on loans purchased with credit deterioration | $ 354 | |
Credit loss expense | 120 | 243 |
Loans charged off | (9) | (26) |
Recoveries collected | 4 | 19 |
Total ending allowance balance | 5,792 | 5,374 |
Prior adaption | ||
Beginning Balance | 4,027 | |
Impact of adopting ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 757 | |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 740 | |
Credit loss expense | 40 | (2) |
Total ending allowance balance | 780 | 632 |
Prior adaption | ||
Beginning Balance | 297 | |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | Impact of adopting ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 337 | |
Commercial Loan | Commercial Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 2,799 | |
Initial allowance on loans purchased with credit deterioration | 106 | |
Credit loss expense | 144 | 176 |
Total ending allowance balance | 2,943 | 2,596 |
Prior adaption | ||
Beginning Balance | 1,110 | |
Commercial Loan | Commercial Portfolio Segment | Impact of adopting ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,204 | |
1-4 family residential construction | Commercial Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 104 | |
Credit loss expense | 1 | (26) |
Total ending allowance balance | 105 | 157 |
Prior adaption | ||
Beginning Balance | 69 | |
1-4 family residential construction | Commercial Portfolio Segment | Impact of adopting ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 114 | |
Other construction loans | Commercial Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 778 | |
Credit loss expense | (30) | 101 |
Total ending allowance balance | 748 | 771 |
Prior adaption | ||
Beginning Balance | 1,077 | |
Other construction loans | Commercial Portfolio Segment | Impact of adopting ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (407) | |
Mortgage Loan | Consumer Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,157 | |
Initial allowance on loans purchased with credit deterioration | 248 | |
Credit loss expense | (50) | (23) |
Loans charged off | (19) | |
Recoveries collected | 1 | 18 |
Total ending allowance balance | 1,108 | 1,112 |
Prior adaption | ||
Beginning Balance | 1,385 | |
Mortgage Loan | Consumer Portfolio Segment | Impact of adopting ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (497) | |
Obligations of State and Political Subdivisions | Commercial Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 39 | |
Credit loss expense | 18 | |
Total ending allowance balance | 57 | |
Obligations of State and Political Subdivisions | Consumer Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Total ending allowance balance | 45 | |
Prior adaption | ||
Beginning Balance | 54 | |
Obligations of State and Political Subdivisions | Consumer Portfolio Segment | Impact of adopting ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (9) | |
Personal Loan | Commercial Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Credit loss expense | 17 | |
Loans charged off | (7) | |
Recoveries collected | 1 | |
Total ending allowance balance | 61 | |
Prior adaption | ||
Beginning Balance | 35 | |
Personal Loan | Commercial Portfolio Segment | Impact of adopting ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 15 | |
Personal Loan | Consumer Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 60 | |
Credit loss expense | (3) | |
Loans charged off | (9) | |
Recoveries collected | 3 | |
Total ending allowance balance | $ 51 |
LOANS AND RELATED ALLOWANCE F_6
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Collateral-Dependent Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | $ 536,716 | $ 525,394 |
Real Estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | 122 | 4,934 |
Commercial Loan | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | 236,442 | 223,077 |
Commercial Loan | Real Estate | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | 4,877 | |
Mortgage Loan | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | 160,439 | 162,385 |
Mortgage Loan | Real Estate | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Financing receivables, gross | $ 122 | $ 57 |
LOANS AND RELATED ALLOWANCE F_7
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - (Amortized Cost Basis of Loans Nonaccrual Status) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable | ||
Nonaccrual with No Allowance for Credit Loss | $ 122 | $ 4,934 |
Nonaccrual | 90 | 18 |
Loans Past Due Greater than 90 Days and Accruing | 35 | |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Nonaccrual | 90 | 18 |
Commercial Loan | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Nonaccrual with No Allowance for Credit Loss | 4,877 | |
Mortgage Loan | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable | ||
Nonaccrual with No Allowance for Credit Loss | 122 | $ 57 |
Loans Past Due Greater than 90 Days and Accruing | $ 35 |
LOANS AND RELATED ALLOWANCE F_8
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Loan Portfolio Summarized by the Past Due Status) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | $ 536,716 | $ 525,394 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 533 | 625 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 413 | 531 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 13 | 90 |
Greater than 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 107 | 4 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 69,178 | 65,821 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 80 | 73 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 8 | 73 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | Greater than 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 72 | |
Commercial Loan | Commercial Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 236,442 | 223,077 |
Commercial Loan | Commercial Portfolio Segment | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 117 | |
Commercial Loan | Commercial Portfolio Segment | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 117 | |
Construction Loan | Commercial Portfolio Segment | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 3 | |
Construction Loan | Commercial Portfolio Segment | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 3 | |
Mortgage Loan | Consumer Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 160,439 | 162,385 |
Mortgage Loan | Consumer Portfolio Segment | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 436 | 426 |
Mortgage Loan | Consumer Portfolio Segment | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 398 | 332 |
Mortgage Loan | Consumer Portfolio Segment | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 3 | 90 |
Mortgage Loan | Consumer Portfolio Segment | Greater than 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 35 | 4 |
Obligations of State and Political Subdivisions | Commercial Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 16,630 | 17,232 |
Personal Loan | Consumer Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 4,000 | 4,290 |
Personal Loan | Consumer Portfolio Segment | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 14 | 9 |
Personal Loan | Consumer Portfolio Segment | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | 4 | $ 9 |
Personal Loan | Consumer Portfolio Segment | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivables, gross | $ 10 |
LOANS AND RELATED ALLOWANCE F_9
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | $ 536,716 | $ 525,394 |
Pass | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 512,076 | 498,105 |
Special Mention | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 22,953 | 21,410 |
Substandard | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 1,615 | 5,879 |
Doubtful | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 72 | |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 69,178 | 65,821 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | Pass | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 64,843 | 62,952 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 4,245 | 2,851 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | Substandard | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 18 | 18 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 72 | |
Commercial Loan | Commercial Portfolio Segment | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 236,442 | 223,077 |
Commercial Loan | Commercial Portfolio Segment | Pass | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 221,899 | 203,590 |
Commercial Loan | Commercial Portfolio Segment | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 13,624 | 13,682 |
Commercial Loan | Commercial Portfolio Segment | Substandard | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 919 | 5,805 |
1-4 family residential construction | Commercial Portfolio Segment | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 5,002 | 5,085 |
1-4 family residential construction | Commercial Portfolio Segment | Pass | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 4,999 | 5,085 |
1-4 family residential construction | Commercial Portfolio Segment | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 3 | |
Other construction loans | Commercial Portfolio Segment | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 45,025 | 47,504 |
Other construction loans | Commercial Portfolio Segment | Pass | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 40,156 | 42,845 |
Other construction loans | Commercial Portfolio Segment | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 4,869 | 4,659 |
Mortgage Loan | Consumer Portfolio Segment | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 160,439 | 162,385 |
Mortgage Loan | Consumer Portfolio Segment | Pass | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 159,549 | 162,111 |
Mortgage Loan | Consumer Portfolio Segment | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 212 | 218 |
Mortgage Loan | Consumer Portfolio Segment | Substandard | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 678 | 56 |
Obligations of State and Political Subdivisions | Commercial Portfolio Segment | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 16,630 | 17,232 |
Obligations of State and Political Subdivisions | Commercial Portfolio Segment | Pass | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 16,630 | 17,232 |
Personal Loan | Consumer Portfolio Segment | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | 4,000 | 4,290 |
Personal Loan | Consumer Portfolio Segment | Pass | ||
Financing Receivable, Recorded Investment | ||
Financing receivables, gross | $ 4,000 | $ 4,290 |
LOANS AND RELATED ALLOWANCE _10
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Amortized Cost Basis by Risk Category ) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | $ 1,210 | $ 10,820 |
Originated two years prior to current fiscal year | 10,772 | 5,537 |
Originated three years prior to current fiscal year | 5,121 | 11,793 |
Originated four years prior to current fiscal year | 11,185 | 4,971 |
Originated five years prior to current fiscal year | 4,567 | 3,975 |
Originated more than five years prior to current fiscal year | 4,400 | 848 |
Revolving Loans Amortized Cost Basis | 31,923 | 27,877 |
Total | 69,178 | 65,821 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 1,210 | 10,750 |
Originated two years prior to current fiscal year | 10,704 | 5,123 |
Originated three years prior to current fiscal year | 4,735 | 11,793 |
Originated four years prior to current fiscal year | 11,185 | 4,971 |
Originated five years prior to current fiscal year | 4,567 | 3,903 |
Originated more than five years prior to current fiscal year | 4,310 | 830 |
Revolving Loans Amortized Cost Basis | 28,132 | 25,582 |
Total | 64,843 | 62,952 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 70 | |
Originated two years prior to current fiscal year | 68 | 414 |
Originated three years prior to current fiscal year | 386 | |
Originated five years prior to current fiscal year | 72 | |
Revolving Loans Amortized Cost Basis | 3,791 | 2,295 |
Total | 4,245 | 2,851 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated more than five years prior to current fiscal year | 18 | 18 |
Total | 18 | 18 |
Commercial, Financial and Agricultural | Commercial Portfolio Segment | Doubtful | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated more than five years prior to current fiscal year | 72 | |
Total | 72 | |
Commercial Loan | Commercial Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 15,940 | 36,375 |
Originated two years prior to current fiscal year | 36,572 | 58,396 |
Originated three years prior to current fiscal year | 57,811 | 23,561 |
Originated four years prior to current fiscal year | 27,845 | 24,723 |
Originated five years prior to current fiscal year | 19,606 | 17,817 |
Originated more than five years prior to current fiscal year | 75,670 | 59,302 |
Revolving Loans Amortized Cost Basis | 2,983 | 2,887 |
Revolving Loans Converted to Term | 15 | 16 |
Total | 236,442 | 223,077 |
Commercial Loan | Commercial Portfolio Segment | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 15,940 | 36,375 |
Originated two years prior to current fiscal year | 36,572 | 53,927 |
Originated three years prior to current fiscal year | 53,395 | 23,561 |
Originated four years prior to current fiscal year | 27,845 | 15,952 |
Originated five years prior to current fiscal year | 15,691 | 17,606 |
Originated more than five years prior to current fiscal year | 69,653 | 53,465 |
Revolving Loans Amortized Cost Basis | 2,788 | 2,688 |
Revolving Loans Converted to Term | 15 | 16 |
Total | 221,899 | 203,590 |
Commercial Loan | Commercial Portfolio Segment | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated two years prior to current fiscal year | 4,469 | |
Originated three years prior to current fiscal year | 4,416 | |
Originated four years prior to current fiscal year | 3,894 | |
Originated five years prior to current fiscal year | 3,915 | 211 |
Originated more than five years prior to current fiscal year | 5,098 | 4,909 |
Revolving Loans Amortized Cost Basis | 195 | 199 |
Total | 13,624 | 13,682 |
Commercial Loan | Commercial Portfolio Segment | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated four years prior to current fiscal year | 4,877 | |
Originated more than five years prior to current fiscal year | 919 | 928 |
Total | 919 | 5,805 |
1-4 family residential construction | Commercial Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 282 | 1,674 |
Originated two years prior to current fiscal year | 1,305 | 3,411 |
Originated three years prior to current fiscal year | 3,415 | |
Total | 5,002 | 5,085 |
1-4 family residential construction | Commercial Portfolio Segment | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 282 | 1,674 |
Originated two years prior to current fiscal year | 1,305 | 3,411 |
Originated three years prior to current fiscal year | 3,412 | |
Total | 4,999 | 5,085 |
1-4 family residential construction | Commercial Portfolio Segment | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated three years prior to current fiscal year | 3 | |
Total | 3 | |
Other construction loans | Commercial Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 64 | 5,254 |
Originated two years prior to current fiscal year | 5,603 | 7,405 |
Originated three years prior to current fiscal year | 7,792 | 17,930 |
Originated four years prior to current fiscal year | 13,907 | 7,011 |
Originated five years prior to current fiscal year | 6,973 | 276 |
Originated more than five years prior to current fiscal year | 3,341 | 3,088 |
Revolving Loans Amortized Cost Basis | 7,203 | 6,390 |
Revolving Loans Converted to Term | 142 | 150 |
Total | 45,025 | 47,504 |
Other construction loans | Commercial Portfolio Segment | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 64 | 5,254 |
Originated two years prior to current fiscal year | 5,603 | 7,405 |
Originated three years prior to current fiscal year | 7,792 | 17,928 |
Originated four years prior to current fiscal year | 13,907 | 2,354 |
Originated five years prior to current fiscal year | 2,332 | 276 |
Originated more than five years prior to current fiscal year | 3,113 | 3,088 |
Revolving Loans Amortized Cost Basis | 7,203 | 6,390 |
Revolving Loans Converted to Term | 142 | 150 |
Total | 40,156 | 42,845 |
Other construction loans | Commercial Portfolio Segment | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated three years prior to current fiscal year | 2 | |
Originated four years prior to current fiscal year | 4,657 | |
Originated five years prior to current fiscal year | 4,641 | |
Originated more than five years prior to current fiscal year | 228 | |
Total | 4,869 | 4,659 |
Mortgage Loan | Consumer Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 2,660 | 27,062 |
Originated two years prior to current fiscal year | 26,247 | 43,005 |
Originated three years prior to current fiscal year | 42,317 | 19,173 |
Originated four years prior to current fiscal year | 18,410 | 14,577 |
Originated five years prior to current fiscal year | 14,050 | 5,524 |
Originated more than five years prior to current fiscal year | 48,614 | 44,633 |
Revolving Loans Amortized Cost Basis | 7,859 | 8,084 |
Revolving Loans Converted to Term | 282 | 327 |
Total | 160,439 | 162,385 |
Financing Receivable Excluding Accrued Interest Allowance For Credit Loss Write-off By Origination Year [Abstract] | ||
Originated more than five years prior to current fiscal year | (19) | |
Total | (19) | |
Mortgage Loan | Consumer Portfolio Segment | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 2,660 | 27,062 |
Originated two years prior to current fiscal year | 26,247 | 43,005 |
Originated three years prior to current fiscal year | 42,317 | 19,173 |
Originated four years prior to current fiscal year | 18,410 | 14,577 |
Originated five years prior to current fiscal year | 14,050 | 5,524 |
Originated more than five years prior to current fiscal year | 47,724 | 44,359 |
Revolving Loans Amortized Cost Basis | 7,859 | 8,084 |
Revolving Loans Converted to Term | 282 | 327 |
Total | 159,549 | 162,111 |
Mortgage Loan | Consumer Portfolio Segment | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated more than five years prior to current fiscal year | 212 | 218 |
Total | 212 | 218 |
Mortgage Loan | Consumer Portfolio Segment | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated more than five years prior to current fiscal year | 678 | 56 |
Total | 678 | 56 |
Obligations of State and Political Subdivisions | Commercial Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 1,226 | |
Originated two years prior to current fiscal year | 643 | |
Originated three years prior to current fiscal year | 3,866 | |
Originated four years prior to current fiscal year | 2,283 | |
Originated five years prior to current fiscal year | 4,926 | |
Originated more than five years prior to current fiscal year | 3,686 | |
Total | 16,630 | |
Obligations of State and Political Subdivisions | Commercial Portfolio Segment | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 1,226 | |
Originated two years prior to current fiscal year | 643 | |
Originated three years prior to current fiscal year | 3,866 | |
Originated four years prior to current fiscal year | 2,283 | |
Originated five years prior to current fiscal year | 4,926 | |
Originated more than five years prior to current fiscal year | 3,686 | |
Total | 16,630 | |
Obligations of State and Political Subdivisions | Consumer Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 350 | |
Originated two years prior to current fiscal year | 3,876 | |
Originated three years prior to current fiscal year | 2,413 | |
Originated four years prior to current fiscal year | 5,094 | |
Originated five years prior to current fiscal year | 12 | |
Originated more than five years prior to current fiscal year | 5,486 | |
Revolving Loans Amortized Cost Basis | 1 | |
Total | 17,232 | |
Obligations of State and Political Subdivisions | Consumer Portfolio Segment | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 350 | |
Originated two years prior to current fiscal year | 3,876 | |
Originated three years prior to current fiscal year | 2,413 | |
Originated four years prior to current fiscal year | 5,094 | |
Originated five years prior to current fiscal year | 12 | |
Originated more than five years prior to current fiscal year | 5,486 | |
Revolving Loans Amortized Cost Basis | 1 | |
Total | 17,232 | |
Personal Loan | Consumer Portfolio Segment | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 354 | 2,385 |
Originated two years prior to current fiscal year | 2,044 | 1,093 |
Originated three years prior to current fiscal year | 906 | 362 |
Originated four years prior to current fiscal year | 286 | 87 |
Originated five years prior to current fiscal year | 60 | 63 |
Originated more than five years prior to current fiscal year | 241 | 187 |
Revolving Loans Amortized Cost Basis | 87 | 91 |
Revolving Loans Converted to Term | 22 | 22 |
Total | 4,000 | 4,290 |
Financing Receivable Excluding Accrued Interest Allowance For Credit Loss Write-off By Origination Year [Abstract] | ||
Originated current fiscal year | (4) | |
Originated two years prior to current fiscal year | (2) | |
Originated four years prior to current fiscal year | (4) | |
Originated more than five years prior to current fiscal year | 9 | (18) |
Total | 9 | (28) |
Personal Loan | Consumer Portfolio Segment | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Originated current fiscal year | 354 | 2,385 |
Originated two years prior to current fiscal year | 2,044 | 1,093 |
Originated three years prior to current fiscal year | 906 | 362 |
Originated four years prior to current fiscal year | 286 | 87 |
Originated five years prior to current fiscal year | 60 | 63 |
Originated more than five years prior to current fiscal year | 241 | 187 |
Revolving Loans Amortized Cost Basis | 87 | 91 |
Revolving Loans Converted to Term | 22 | 22 |
Total | $ 4,000 | $ 4,290 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) | 3 Months Ended | ||||||
May 12, 2023 | Apr. 30, 2018 | Nov. 30, 2015 | Sep. 08, 2006 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Goodwill included in acquisition price | $ 9,812,000 | $ 9,812,000 | |||||
Amortization of intangible assets | 22,000 | $ 11,000 | |||||
Goodwill impairment loss | 0 | 0 | |||||
Branch Office in Richfield, PA | |||||||
Acquisition date | Sep. 08, 2006 | ||||||
Goodwill included in acquisition price | $ 2,000,000 | ||||||
FNBPA Bancorp, Inc | |||||||
Acquisition date | Nov. 30, 2015 | ||||||
Goodwill included in acquisition price | $ 3,400,000 | ||||||
Core deposit intangible | $ 303,000 | ||||||
Intangible assets amortization period | 10 years | ||||||
Amortization of intangible assets | 3,000 | 4,000 | |||||
Liverpool Community Bank | |||||||
Acquisition date | Apr. 30, 2018 | ||||||
Goodwill included in acquisition price | $ 3,600,000 | ||||||
Core deposit intangible | $ 289,000 | ||||||
Intangible assets amortization period | 10 years | ||||||
Amortization of intangible assets | 6,000 | 7,000 | |||||
Path Valley Branch office Acquisition | |||||||
Acquisition date | May 12, 2023 | ||||||
Goodwill included in acquisition price | $ 765,000 | ||||||
Core deposit intangible | $ 303,000 | ||||||
Intangible assets amortization period | 10 years | ||||||
Amortization of intangible assets | $ 13,000 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Amortization Schedule for Intangible Assets) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | May 12, 2023 | Apr. 30, 2018 | Nov. 30, 2015 | |
Finite-Lived Intangible Assets | |||||||
Amortization of intangible assets | $ 22,000 | $ 11,000 | |||||
Path Valley Branch office Acquisition | |||||||
Finite-Lived Intangible Assets | |||||||
Beginning Balance at Acquisition Date | $ 303,000 | ||||||
Amortization of intangible assets | 13,000 | 0 | |||||
Path Valley Branch office Acquisition | Core Deposits | |||||||
Finite-Lived Intangible Assets | |||||||
Beginning Balance at Acquisition Date | $ 303,000 | ||||||
Amortization of intangible assets | 13,000 | $ 37,000 | |||||
Unamortized balance | 253,000 | 266,000 | |||||
Scheduled remaining amortization expense for years ended: | |||||||
December 31, 2024 | 38,000 | ||||||
December 31, 2025 | 46,000 | ||||||
December 31, 2026 | 40,000 | ||||||
December 31, 2027 | 35,000 | ||||||
December 31, 2028 | 29,000 | ||||||
Thereafter | 65,000 | ||||||
FNBPA Bancorp, Inc | |||||||
Finite-Lived Intangible Assets | |||||||
Beginning Balance at Acquisition Date | $ 303,000 | ||||||
Amortization of intangible assets | 3,000 | 4,000 | |||||
FNBPA Bancorp, Inc | Core Deposits | |||||||
Finite-Lived Intangible Assets | |||||||
Beginning Balance at Acquisition Date | $ 303,000 | ||||||
Amortization of intangible assets | 3,000 | 37,000 | $ 250,000 | ||||
Unamortized balance | 13,000 | 16,000 | |||||
Scheduled remaining amortization expense for years ended: | |||||||
December 31, 2024 | 8,000 | ||||||
December 31, 2025 | 5,000 | ||||||
Liverpool Community Bank | |||||||
Finite-Lived Intangible Assets | |||||||
Beginning Balance at Acquisition Date | $ 289,000 | ||||||
Amortization of intangible assets | 6,000 | $ 7,000 | |||||
Liverpool Community Bank | Core Deposits | |||||||
Finite-Lived Intangible Assets | |||||||
Beginning Balance at Acquisition Date | $ 289,000 | ||||||
Amortization of intangible assets | 6,000 | 61,000 | $ 167,000 | ||||
Unamortized balance | 55,000 | $ 61,000 | |||||
Scheduled remaining amortization expense for years ended: | |||||||
December 31, 2024 | 17,000 | ||||||
December 31, 2025 | 17,000 | ||||||
December 31, 2026 | 12,000 | ||||||
December 31, 2027 | 7,000 | ||||||
December 31, 2028 | $ 2,000 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
DEPOSITS | ||
Time deposits at or above FDIC limit | $ 32.3 | $ 33.4 |
BORROWINGS (Schedule of Borrowi
BORROWINGS (Schedule of Borrowings) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
BORROWINGS | ||
Securities sold under agreements to repurchase | $ 17,214 | $ 12,810 |
Short-term debt | 40,000 | 40,000 |
Long-term debt with FHLB | 20,000 | 20,000 |
Total borrowings | $ 77,214 | $ 72,810 |
BORROWINGS (Scheduled Maturitie
BORROWINGS (Scheduled Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Scheduled Maturities | ||
2024 | $ 15,000 | |
2025 | 5,000 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Long-term Debt, Total | $ 20,000 | $ 20,000 |
Weighted Average Interest Rate | ||
2024 | 2.29% | |
2025 | 2.41% | |
2026 | 0% | |
2027 | 0% | |
2028 | 0% | |
Thereafter | 0% | |
Weighted average interest rate | 2.32% |
STOCK COMPENSATION PLAN (Detail
STOCK COMPENSATION PLAN (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Stock-based compensation expense | $ 34,000 | $ 32,000 | |
Weighted average exercise price | $ 17.80 | $ 17.76 | |
Long-Term Incentive Plan | |||
Shares available for grant | 177,100 | ||
Long-Term Incentive Plan | Maximum | |||
Shares authorized under share-based payment awards | 300,000 | ||
Employee Stock Purchase Plan | |||
Number of share per year in addition to prior unissued shares | 5,000 | ||
Shares issued during period under employee stock purchase plans | 0 | 0 | |
Shares reserved for future issuance | 152,420 | ||
Employee Stock Purchase Plan | Maximum | |||
Shares authorized under share-based payment awards | 250,000 | ||
Option price as a percentage of fair value | 100% | ||
Employee Stock Purchase Plan | Minimum | |||
Option price as a percentage of fair value | 95% | ||
Employee Stock Option | |||
Stock options awarded | 0 | ||
Employee Stock Option | Long-Term Incentive Plan | |||
Stock Options compensation costs not yet recognized | $ 0 | ||
Award expiration period | 10 years | ||
Award expiration date | Feb. 17, 2025 | ||
Exercise price, upper range limit | $ 17.80 | ||
Weighted average remaining contractual life | 11 months | ||
Cash received from option exercises | $ 0 | ||
Employee Stock Option | Long-Term Incentive Plan | Maximum | |||
Award vesting period | 5 years | ||
Employee Stock Option | Long-Term Incentive Plan | Minimum | |||
Award vesting period | 3 years | ||
Restricted Stock | |||
Number of shares awarded | 9,628 | ||
Award vesting period | 3 years | ||
Restricted stocks. compensation costs not yet recognized | $ 266,000 | ||
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 | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of shares | |
Beginning Balance | shares | 25,322 |
Vested | shares | (6,141) |
Forfeited | shares | 0 |
Granted | shares | 9,628 |
Ending Balance | shares | 28,809 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 16.21 |
Vested | $ / shares | 16.55 |
Forfeited | $ / shares | 0 |
Granted | $ / shares | 12.35 |
Ending Balance | $ / shares | $ 14.85 |
STOCK COMPENSATION PLAN (Stock
STOCK COMPENSATION PLAN (Stock Options Activity) (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding Roll Forward | |
Outstanding beginning balance, Shares | shares | 50,425 |
Granted, Shares | shares | 0 |
Exercised, Shares | shares | 0 |
Forfeited, Shares | shares | (24,225) |
Outstanding ending balance, Shares | shares | 26,200 |
Beginning, weighted average exercise price | $ / shares | $ 17.76 |
Granted, Weighted average exercise price | $ / shares | 0 |
Exercised, Weighted average exercise price | $ / shares | 0 |
Expired, Weighted average exercise price | $ / shares | 17.72 |
Ending, weighted average exercise price | $ / shares | $ 17.80 |
FAIR VALUE MEASUREMENT (Fair Va
FAIR VALUE MEASUREMENT (Fair Value Measurements by Level of Valuation Inputs) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | $ 66,639 | $ 67,564 |
Equity securities | 1,060 | 1,073 |
Obligations of U.S. Government Agencies and Corporations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 14,127 | 14,173 |
Obligations of State and Political Subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 6,462 | 6,508 |
Corporate Debt Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 14,416 | 13,828 |
Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 66,639 | 67,564 |
Fair Value, Measurements, Recurring | Obligations of U.S. Government Agencies and Corporations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 14,127 | 14,173 |
Fair Value, Measurements, Recurring | Obligations of State and Political Subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 6,462 | 6,508 |
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 14,416 | 13,828 |
Fair Value, Measurements, Recurring | Mortgage-Backed Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 31,634 | 33,055 |
Fair Value, Measurements, Recurring | Equity Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Equity securities | 1,060 | 1,073 |
Fair Value, Measurements, Recurring | (Level 1) Quoted Prices in Active Markets for Identical Assets | Equity Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Equity securities | 1,060 | 1,073 |
Fair Value, Measurements, Recurring | (Level 2) Significant Other Observable Inputs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 60,145 | 61,411 |
Fair Value, Measurements, Recurring | (Level 2) Significant Other Observable Inputs | Obligations of U.S. Government Agencies and Corporations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 14,127 | 14,173 |
Fair Value, Measurements, Recurring | (Level 2) Significant Other Observable Inputs | Obligations of State and Political Subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 6,462 | 6,508 |
Fair Value, Measurements, Recurring | (Level 2) Significant Other Observable Inputs | Corporate Debt Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 7,922 | 7,675 |
Fair Value, Measurements, Recurring | (Level 2) Significant Other Observable Inputs | Mortgage-Backed Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 31,634 | 33,055 |
Fair Value, Measurements, Recurring | (Level 3) Significant Other Unobservable Inputs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 6,494 | 6,153 |
Fair Value, Measurements, Recurring | (Level 3) Significant Other Unobservable Inputs | Corporate Debt Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities available for sale | 6,494 | 6,153 |
Fair Value, Measurements, Recurring | Mortgage Servicing Rights | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage servicing rights | 81 | 83 |
Fair Value, Measurements, Recurring | Mortgage Servicing Rights | (Level 3) Significant Other Unobservable Inputs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage servicing rights | $ 81 | $ 83 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
FAIR VALUE MEASUREMENT | ||
Beginning balance | $ 6,153 | $ 7,145 |
Total gain (loss) included in OCI | 341 | (496) |
Purchases | 0 | 0 |
Principal payments and other | 0 | 0 |
Sales | 0 | 0 |
Ending balance | $ 6,494 | $ 6,649 |
FAIR VALUE MEASUREMENT (Carryin
FAIR VALUE MEASUREMENT (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Interest bearing deposits with banks | $ 8,352 | $ 11,741 |
Debt securities available for sale | 66,639 | 67,564 |
Debt securities held to maturity | 193,182 | 198,147 |
Restricted investment in bank stock | 2,018 | 1,707 |
Financial liabilities: | ||
Time deposits | 538,650 | 552,018 |
Short-term borrowings | 57,214 | 52,810 |
Long-term debt | 20,000 | 20,000 |
Other interest bearing liabilities | 884 | 951 |
Carrying Value | ||
Financial assets: | ||
Cash and due from banks | 5,085 | 17,189 |
Interest bearing deposits with banks | 8,352 | 11,741 |
Debt securities available for sale | 66,639 | 67,564 |
Debt securities held to maturity | 198,680 | 200,644 |
Loans, net of allowance for credit losses | 530,924 | 519,717 |
Accrued interest receivable | 2,621 | 2,438 |
Financial liabilities: | ||
Time deposits | 198,177 | 197,387 |
Securities sold under agreements to repurchase | 17,214 | 12,810 |
Short-term borrowings | 40,000 | 40,000 |
Long-term debt | 20,000 | 20,000 |
Other interest bearing liabilities | 884 | 951 |
Accrued interest payable | 1,809 | 1,397 |
Off-balance sheet financial instruments: | ||
Commitments to extend credit | 0 | 0 |
Letters of credit | 0 | 0 |
Fair Value | ||
Financial assets: | ||
Cash and due from banks | 5,085 | 17,189 |
Interest bearing deposits with banks | 8,352 | 11,741 |
Debt securities available for sale | 66,639 | 67,564 |
Debt securities held to maturity | 193,182 | 198,147 |
Loans, net of allowance for credit losses | 511,280 | 500,439 |
Accrued interest receivable | 2,621 | 2,438 |
Financial liabilities: | ||
Time deposits | 194,800 | 194,219 |
Short-term borrowings | 39,853 | 39,868 |
Long-term debt | 19,748 | 19,638 |
Other interest bearing liabilities | 880 | 947 |
Accrued interest payable | 1,809 | 1,397 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities held to maturity | $ 193,182 | $ 198,147 |
Time deposits | 538,650 | 552,018 |
Short-term borrowings | 57,214 | 52,810 |
Long-term debt | 20,000 | 20,000 |
Other interest bearing liabilities | 884 | 951 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities held to maturity | 198,680 | 200,644 |
Loans, net of allowance for credit losses | 530,924 | 519,717 |
Time deposits | 198,177 | 197,387 |
Short-term borrowings | 40,000 | 40,000 |
Long-term debt | 20,000 | 20,000 |
Other interest bearing liabilities | 884 | 951 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities held to maturity | 193,182 | 198,147 |
Loans, net of allowance for credit losses | 511,280 | 500,439 |
Time deposits | 194,800 | 194,219 |
Short-term borrowings | 39,853 | 39,868 |
Long-term debt | 19,748 | 19,638 |
Other interest bearing liabilities | 880 | 947 |
Fair Value | (Level 2) Significant Other Observable Inputs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt securities held to maturity | 193,182 | 198,147 |
Time deposits | 194,800 | 194,219 |
Short-term borrowings | 39,853 | 39,868 |
Long-term debt | 19,748 | 19,638 |
Other interest bearing liabilities | 880 | 947 |
Fair Value | (Level 3) Significant Other Unobservable Inputs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Loans, net of allowance for credit losses | $ 511,280 | $ 500,439 |
COMMITMENTS, CONTINGENT LIABI_2
COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Loss Contingencies | ||
Letter of Credit expiration period | 1 year | |
Commitments to Grant Loans | ||
Loss Contingencies | ||
Outstanding loans commitments and other unused lines of credit | $ 139.7 | $ 137.4 |
Outstanding Letters of Credit | ||
Loss Contingencies | ||
Outstanding loans commitments and other unused lines of credit | 3.7 | 3.6 |
Commercial Letter Of Credit | ||
Loss Contingencies | ||
Outstanding loans commitments and other unused lines of credit | $ 10.4 | $ 9.3 |
DERIVATIVES (Details)
DERIVATIVES (Details) - Designated as Hedging Instrument - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Apr. 30, 2023 | |
Notional Amount | $ 0 | $ 0 | $ 20,000,000 |
Interest rate swaps, ineffectiveness | no amount of ineffectiveness was included in net income |
DERIVATIVES (Effect of Cash Flo
DERIVATIVES (Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2023 | ||
Derivative Instruments, Gain (Loss) | |||
Amount of Gain Recognized in OCI on Derivatives | $ 1 | $ 2 | |
Amount of Gain reclassified from OCI into Income | $ (214) | [1],[2] | (269) |
Interest Rate Contracts | |||
Derivative Instruments, Gain (Loss) | |||
Amount of Gain Recognized in OCI on Derivatives | 2 | ||
Amount of Gain reclassified from OCI into Income | $ (269) | ||
[1] Amounts are included in interest expense on short-term borrowings and repurchase agreements and in other non-interest income on the Consolidated Statements of 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 ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2023 | ||
Derivative Instruments, Gain (Loss) | |||
Amount reclassified from AOCI into income | $ 214,000 | [1],[2] | $ 269,000 |
Interest Income (Expense) | |||
Derivative Instruments, Gain (Loss) | |||
Amounts reclassified from accumulated other comprehensive income | $ 214,000 | ||
[1] Amounts are included in interest expense on short-term borrowings and repurchase agreements and in other non-interest income on the Consolidated Statements of Income. Income tax amounts are included in the provision for income taxes on the Consolidated Statements of Income. |
BRANCH ACQUISITION - Narratives
BRANCH ACQUISITION - Narratives (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | May 12, 2023 |
BRANCH ACQUISITION | |||
Goodwill | $ 9,812,000 | $ 9,812,000 | |
Path Valley Branch office Acquisition | |||
BRANCH ACQUISITION | |||
Goodwill | $ 765,000 | ||
Core deposit intangible | $ 303,000 | ||
Core deposit intangible amortization period | 10 years |
BRANCH ACQUISITION (Details)
BRANCH ACQUISITION (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | May 12, 2023 |
Assets: | |||
Goodwill | $ 9,812,000 | $ 9,812,000 | |
Path Valley Branch office Acquisition | |||
Assets: | |||
Cash received at settlement | $ 17,384,000 | ||
Fixed assets | 248,000 | ||
Goodwill | 765,000 | ||
Core deposit intangible | 303,000 | ||
Other assets purchased | 3,000 | ||
Total assets | 18,703,000 | ||
Liabilities: | |||
Deposits purchased | 18,697,000 | ||
Other liabilities assumed | 6,000 | ||
Total liabilities | $ 18,703,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | Apr. 16, 2024 $ / shares |
SUBSEQUENT EVENTS | |
Dividends payable, date declared | Apr. 16, 2024 |
Dividends payable per share | $ 0.22 |
Dividends payable, date of record | May 17, 2024 |
Dividends payable, date to be paid | May 31, 2024 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 1,355 | $ 1,733 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |