Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 001-38884 | |
Entity Registrant Name | FRANKLIN FINANCIAL SERVICES CORPORATION | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 25-1440803 | |
Entity Address, Address Line One | 20 South Main Street | |
Entity Address, City or Town | Chambersburg | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17201-0819 | |
City Area Code | 717 | |
Local Phone Number | 264-6116 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | FRAF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,457,959 | |
Entity Central Index Key | 0000723646 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 18,209 | $ 10,463 |
Short-term interest-bearing deposits in other banks | 155,500 | 164,686 |
Total cash and cash equivalents | 173,709 | 175,149 |
Long-term interest-bearing deposits in other banks | 10,742 | 10,492 |
Debt securities available for sale, at fair value | 511,477 | 529,811 |
Equity securities | 492 | 481 |
Restricted stock | 507 | 495 |
Loans held for sale | 3,142 | 2,827 |
Loans | 1,000,977 | 998,812 |
Allowance for loan losses | (15,050) | (15,066) |
Net Loans | 985,927 | 983,746 |
Premises and equipment, net | 23,198 | 19,190 |
Right of use asset | 4,658 | 4,759 |
Bank owned life insurance | 21,982 | 21,874 |
Goodwill | 9,016 | 9,016 |
Deferred tax asset, net | 9,135 | 3,314 |
Other assets | 13,076 | 12,652 |
Total assets | 1,767,061 | 1,773,806 |
Deposits | ||
Noninterest-bearing checking | 303,382 | 298,403 |
Money management, savings, and interest checking | 1,223,753 | 1,211,703 |
Time | 69,251 | 74,253 |
Total deposits | 1,596,386 | 1,584,359 |
Subordinate notes | 19,598 | 19,588 |
Lease liability | 4,763 | 4,857 |
Other liabilities | 9,178 | 7,937 |
Total liabilities | 1,629,925 | 1,616,741 |
Commitments and contingent liabilities | ||
Shareholders' equity | ||
Common stock, $1 par value per share, 15,000,000 shares authorized with 4,710,972 shares issued and 4,456,918 shares outstanding at March 31, 2022 and 4,710,972 shares issued and 4,441,443 shares outstanding at December 31, 2021 | 4,711 | 4,711 |
Capital stock no par value, 5,000,000 shares authorized with no shares issued and outstanding | ||
Additional paid-in capital | 43,077 | 43,085 |
Retained earnings | 118,203 | 116,612 |
Accumulated other comprehensive loss | (22,444) | (547) |
Treasury stock, 254,054 shares at March 31, 2022 and 269,529 shares at December 31, 2021, at cost | (6,411) | (6,796) |
Total shareholders' equity | 137,136 | 157,065 |
Total liabilities and shareholders' equity | $ 1,767,061 | $ 1,773,806 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets [Abstract] | ||
Common Stock, Par Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 15,000,000 | 15,000,000 |
Common Stock, Shares, Issued | 4,710,972 | 4,710,972 |
Common Stock, Shares, Outstanding | 4,456,918 | 4,441,443 |
Capital Stock, No Par Value | ||
Capital Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Capital Stock, Shares, Issued | 0 | 0 |
Capital Stock, Shares, Outstanding | 0 | 0 |
Treasury Stock, Shares | 254,054 | 269,529 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income | ||
Loans, including fees | $ 9,067 | $ 9,381 |
Interest and dividends on investments: | ||
Taxable interest | 1,843 | 1,623 |
Tax exempt interest | 525 | 532 |
Dividend income | 1 | 3 |
Interesting-bearing deposits in other banks | 98 | 53 |
Total interest income | 11,534 | 11,592 |
Interest expense | ||
Deposits | 463 | 485 |
Subordinate notes | 263 | 263 |
Total interest expense | 726 | 748 |
Net interest income | 10,808 | 10,844 |
(Provision for loan losses | (800) | |
Net interest income after provision for loan losses | 10,808 | 11,644 |
Noninterest income | ||
Investment and trust services fees | 1,828 | 1,636 |
Loan service charges | 116 | 196 |
Gain on sale of loans | 254 | 782 |
Deposit service charges and fees | 623 | 468 |
Other service charges and fees | 412 | 396 |
Debit card income | 458 | 517 |
Increase in cash surrender value of Bank owned life insurance | 108 | 115 |
Change in fair value of equity securities | 11 | 54 |
Other | 74 | 63 |
Total noninterest income | 3,884 | 4,227 |
Noninterest Expense | ||
Salaries and employee benefits | 6,366 | 5,658 |
Net occupancy | 974 | 910 |
Marketing and advertising | 497 | 345 |
Legal and professional | 515 | 475 |
Data processing | 1,137 | 929 |
Pennsylvania bank shares tax | 143 | 92 |
FDIC Insurance | 183 | 202 |
ATM/debit card processing | 346 | 296 |
Telecommunications | 92 | 129 |
Nonservice pension | 69 | 205 |
Other | 944 | 924 |
Total noninterest expense | 11,266 | 10,165 |
Income before federal income taxes | 3,426 | 5,706 |
Federal income tax expense | 414 | 876 |
Net income | $ 3,012 | $ 4,830 |
Per share | ||
Basic earnings per share | $ 0.68 | $ 1.10 |
Diluted earnings per share | $ 0.67 | $ 1.09 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Net income | $ 3,012 | $ 4,830 |
Debt Securities: | ||
Unrealized losses arising during the period | (27,718) | (10,577) |
Tax effect | 5,821 | 2,221 |
Net of tax amount | (21,897) | (8,356) |
Total other comprehensive loss | (21,897) | (8,356) |
Total Comprehensive Loss | $ (18,885) | $ (3,526) |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2020 | $ 4,711 | $ 42,589 | $ 102,520 | $ 3,190 | $ (7,834) | $ 145,176 |
Balance, shares at Dec. 31, 2020 | 4,389,355 | |||||
Net income | 4,830 | 4,830 | ||||
Other comprehensive income | (8,356) | (8,356) | ||||
Cash dividends declared | (1,318) | (1,318) | ||||
Acquisition of treasury stock | $ (13) | (13) | ||||
Acquisition of treasury stock, shares | (474) | |||||
Treasury shares issued under dividend reinvestment plan | 40 | $ 285 | 325 | |||
Treasury shares issued under dividend reinvestment plan, shares | 11,682 | |||||
Stock Compensation Plans: | ||||||
Treasury shares issued | (164) | 171 | 7 | |||
Treasury shares issued, shares | 7,020 | |||||
Compensation expense | 48 | 48 | ||||
Balance at Mar. 31, 2021 | $ 4,711 | 42,513 | 106,032 | (5,166) | (7,391) | 140,699 |
Balance, shares at Mar. 31, 2021 | 4,407,583 | |||||
Balance at Dec. 31, 2021 | $ 4,711 | 43,085 | 116,612 | (547) | (6,796) | $ 157,065 |
Balance, shares at Dec. 31, 2021 | 4,441,443 | 4,441,443 | ||||
Net income | 3,012 | $ 3,012 | ||||
Other comprehensive income | (21,897) | (21,897) | ||||
Cash dividends declared | (1,421) | (1,421) | ||||
Acquisition of treasury stock | $ (20) | (20) | ||||
Acquisition of treasury stock, shares | (609) | |||||
Treasury shares issued under dividend reinvestment plan | 78 | $ 236 | 314 | |||
Treasury shares issued under dividend reinvestment plan, shares | 9,379 | |||||
Stock Compensation Plans: | ||||||
Treasury shares issued | (156) | 169 | 13 | |||
Treasury shares issued, shares | 6,705 | |||||
Compensation expense | 70 | 70 | ||||
Balance at Mar. 31, 2022 | $ 4,711 | $ 43,077 | $ 118,203 | $ (22,444) | $ (6,411) | $ 137,136 |
Balance, shares at Mar. 31, 2022 | 4,456,918 | 4,456,918 |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements Of Changes In Shareholders' Equity [Abstract] | ||
Dividend declared per share | $ 0.32 | $ 0.30 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 3,012 | $ 4,830 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 267 | 324 |
Net amortization of loans and investment securities | 711 | 124 |
Amortization of subordinate debt issuance costs | 10 | 10 |
(Provision for loan losses | (800) | |
Change in fair value of equity securities | (11) | (54) |
Loans originated for sale | (14,086) | (28,992) |
Proceeds from sale of loans | 14,025 | 34,521 |
Gain on sale of loans held for sale | (254) | (782) |
Increase in cash surrender value of life insurance | (108) | (115) |
Increase in fair value of derivative | (8) | (23) |
Stock option compensation | 70 | 48 |
(Increase) decrease in other assets | (581) | 691 |
Increase in other liabilities | 1,399 | 667 |
Net cash provided by operating activities | 4,446 | 10,449 |
Cash flows from investing activities | ||
Net (Increase) decrease in long-term interest-bearing deposits in other banks | (250) | 1,746 |
Proceeds from maturities and pay-downs of securities available for sale | 1,227 | 9,367 |
Purchase of investment securities available for sale | (11,525) | (45,827) |
Net increase in restricted stock | (12) | |
Net (increase) decrease in loans | (1,978) | 9,439 |
Capital expenditures | (4,261) | (168) |
Net cash used in investing activities | (16,799) | (25,443) |
Cash flows from financing activities | ||
Net increase in demand deposits, interest-bearing checking, and savings accounts | 17,029 | 69,285 |
Net decrease in time deposits | (5,002) | (2,816) |
Dividends paid | (1,421) | (1,318) |
Purchase of Treasury shares | (20) | (13) |
Cash received from option exercises | 13 | 7 |
Treasury shares issued under dividend reinvestment plan | 314 | 325 |
Net cash provided by financing activities | 10,913 | 65,470 |
(Decrease) increase in cash and cash equivalents | (1,440) | 50,476 |
Cash and cash equivalents at the beginning of the period | 175,149 | 57,146 |
Cash and cash equivalents at the end of the period | 173,709 | 107,622 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid during the year for: Interest on deposits and other borrowed funds | 475 | $ 513 |
Noncash Activities | ||
Lease liabilities arising from obtaining right-of-use assets | $ 30 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note 1. Basis of Presentation The consolidated financial statements include the accounts of Franklin Financial Services Corporation (the Corporation), and its wholly owned subsidiaries, Farmers and Merchants Trust Company of Chambersburg (the Bank) and Franklin Future Fund Inc. Farmers and Merchants Trust Company of Chambersburg is a commercial bank that has one wholly owned subsidiary, Franklin Financial Properties Corp. Franklin Financial Properties Corp. holds real estate assets that are leased by the Bank. Franklin Future Fund Inc. is a non-bank investment company. The activities of the non-bank subsidiary are not significant to the consolidated totals. All significant intercompany transactions and account balances have been eliminated. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations, and cash flows as of March 31, 2022, and for all other periods presented have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2021 Annual Report on Form 10-K. The consolidated results of operations for the three-month period ended March 31, 2022 are not necessarily indicative of the operating results for the full year. Management has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The consolidated balance sheet at December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete consolidated financial statements. For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks and cash items with original maturities less than 90 days. Earnings per share are computed based on the weighted average number of shares outstanding during each period end. A reconciliation of the weighted average shares outstanding used to calculate basic earnings per share and diluted earnings per share follows: For the Three Months Ended March 31, (Dollars and shares in thousands, except per share data) 2022 2021 Weighted average shares outstanding (basic) 4,446 4,396 Impact of common stock equivalents 24 19 Weighted average shares outstanding (diluted) 4,470 4,415 Anti-dilutive options excluded from calculation 30 61 Net income $ 3,012 $ 4,830 Basic earnings per share $ 0.68 $ 1.10 Diluted earnings per share $ 0.67 $ 1.09 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements Recently issued but not yet effective accounting standards ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Description This standard requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements We have formed an implementation team led by the Corporation's Risk Management function. The team is reviewing the requirements of the ASU and evaluating methods and models for implementation. As of the beginning of the first reporting period in which the new standard is adopted, the Corporation expects to recognize a one-time cumulative-effect adjustment to the allowance for loan losses, which will flow through retained earnings. After adoption, the new standard will result in earlier recognition of additions to the allowance for loan losses and possibly a larger allowance for loan loss balance with a corresponding increase in the provision for loan losses in results of operations; however, the Corporation is continuing to evaluate the impact of the pending adoption of the new standard on its consolidated financial statements. A third-party vendor has been selected to assist with the CECL calculations and the implementation process has started. The Corporation is running the CECL model in test mode in 2022. ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief Description This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05 has the same effective date as ASU 2016-13. On October 16, 2019, FASB approved its August 2019 proposal to grant certain small public companies a delay in the effective date of ASU 2016-13. For the Corporation, the delay makes the ASU effective January 2023. Since the Corporation currently meets the SEC definition of a small reporting company, the delay will be applied to the Corporation. Early adoption is permitted. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation continues to review the ASU as part of its adoption of ASU 2016-13. ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debit Restructurings and Vintage Disclosures Description This ASU will eliminate the recognition and measurement accounting guidance for Troubled Debt Restructurings (TDRs) by creditors in Subtopic 310-40, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation is reviewing the ASU as part of its adoption of ASU 2016-13. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Description This ASU provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the LIBOR or other interbank offered rate on financial reporting. To help with the transition to new reference rates, the ASU provides optional expedients and exceptions for applying GAAP to affected contract modifications and hedge accounting relationships. The main provisions include: (1) a change in a contract's reference interest rate would be accounted for as a continuation of that contract rather than as the creation of a new one for contracts, including loans, debts, leases, and other arrangements that meet specific criteria, and (2) when updating its hedging strategies in response to reference rate reform, an entity would be allowed to preserve its accounting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. Because the guidance is meant to help entities through the transition period, it will be in effect for a limited time and will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients that are retained through the end of the hedging relationship. Effective Date March 12, 2020 through December 31, 2022 Effect on the Consolidated Financial Statements The Corporation continues to review the ASU as part of its adoption but does not expect it to have a material effect on the consolidated financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 3. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), net of income tax effects, included in shareholders' equity are as follows: March 31, December 31, (Dollars in thousands) 2022 2021 Net unrealized gains on debt securities $ ( 23,624 ) $ 4,094 Tax effect 4,961 ( 860 ) Net of tax amount $ ( 18,663 ) $ 3,234 Accumulated pension adjustment $ ( 4,786 ) $ ( 4,786 ) Tax effect 1,005 1,005 Net of tax amount $ ( 3,781 ) $ ( 3,781 ) Total accumulated other comprehensive loss $ ( 22,444 ) $ ( 547 ) |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Abstract] | |
Investments | Note 4. Investments Available for Sale (AFS) Securities The amortized cost and estimated fair value of AFS securities as of March 31, 2022 and December 31, 2021 are as follows : (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair March 31, 2022 cost gains losses value U.S. Treasury $ 84,725 $ — $ ( 5,713 ) $ 79,012 Municipal 205,912 811 ( 10,920 ) 195,803 Corporate 25,300 69 ( 639 ) 24,730 Agency mortgage & asset-backed 174,496 117 ( 6,208 ) 168,405 Non-Agency mortgage & asset-backed 44,668 11 ( 1,152 ) 43,527 Total $ 535,101 $ 1,008 $ ( 24,632 ) $ 511,477 (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair December 31, 2021 cost gains losses value U.S. Treasury $ 84,896 $ 88 $ ( 698 ) $ 84,286 Municipal 206,501 7,148 ( 1,422 ) 212,227 Corporate 24,794 333 ( 188 ) 24,939 Agency mortgage & asset-backed 178,614 1,157 ( 2,086 ) 177,685 Non-Agency mortgage & asset-backed 30,912 34 ( 272 ) 30,674 Total $ 525,717 $ 8,760 $ ( 4,666 ) $ 529,811 At March 31 , 2022 and December 31, 2021, the fair value of debt securities pledged to secure public funds and trust deposits totaled $ 153.8 million and $ 160.3 million, respectively. The Bank has no investment in a single issuer that exceeds 10 % of shareholders’ equity, except for securities issued by the U.S. Treasury and U.S. government sponsored entities. The amortized cost and estimated fair value of debt securities at March 31, 2022, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities. Securities not due at a single maturity date are presented separately. (Dollars in thousands) Amortized cost Fair value Due in one year or less $ 1,667 $ 1,682 Due after one year through five years 8,933 8,848 Due after five years through ten years 144,994 137,312 Due after ten years 160,343 151,703 315,937 299,545 Mortgage & asset-backed 219,164 211,932 $ 535,101 $ 511,477 Impairment : The debt securities portfolio contained 464 securities with $ 442.0 million of temporarily impaired fair value and $ 24.6 million in unrealized losses at March 31, 2022. The total unrealized loss position has increased $ 20.0 million since year-end 2021. For securities with an unrealized loss, Management applies a systematic methodology in order to perform an assessment of the potential for other-than-temporary impairment. In the case of debt securities, investments considered for other-than-temporary impairment: (1) had a specified maturity or repricing date; (2) were generally expected to be redeemed at par; and (3) were expected to achieve a recovery in market value within a reasonable period of time. In addition, the Bank considers whether it intends to sell these securities or whether it will be forced to sell these securities before the earlier of amortized cost recovery or maturity. The municipal bond portfolio, which has the largest unrealized loss, is well diversified geographically ( 203 issuers) and is comprised primarily of general obligation bonds ( 63 %). Many municipal bonds have credit enhancements in the form of private bond insurance or other credit support. The largest geographic municipal bond exposure is in the states of Texas ( 14 %), California ( 11 %), Pennsylvania ( 11 %), and Michigan ( 10 %). The average rating of the municipal portfolio from Moody’s is AA. No municipal bonds are rated below investment grade. The impairment identified on debt securities and subject to assessment at March 31, 2022, was deemed to be temporary and required no further adjustments to the financial statements, unless otherwise noted. The following table reflects temporary impairment in the AFS portfolio, aggregated by investment category, length of time that individual securities have been in a continuous unrealized loss position and the number of securities in each category as of March 31, 2022 and December 31, 2021: March 31, 2022 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Treasury $ 79,012 $ ( 5,713 ) 28 $ — $ — — $ 79,012 $ ( 5,713 ) 28 Municipal 143,337 ( 8,389 ) 158 18,653 ( 2,531 ) 21 161,990 ( 10,920 ) 179 Corporate 13,989 ( 420 ) 27 3,781 ( 219 ) 7 17,770 ( 639 ) 34 Agency mortgage & asset-backed 124,484 ( 4,592 ) 165 26,240 ( 1,616 ) 28 150,724 ( 6,208 ) 193 Non-Agency mortgage & asset-backed 28,847 ( 981 ) 25 3,698 ( 171 ) 5 32,545 ( 1,152 ) 30 Total temporarily impaired $ 389,669 $ ( 20,095 ) 403 $ 52,372 $ ( 4,537 ) 61 $ 442,041 $ ( 24,632 ) 464 December 31, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Treasury $ 76,383 $ ( 698 ) 21 $ — $ — — $ 76,383 $ ( 698 ) 21 Municipal 38,997 ( 910 ) 44 15,404 ( 512 ) 16 54,401 ( 1,422 ) 60 Corporate 8,954 ( 132 ) 17 1,694 ( 56 ) 3 10,648 ( 188 ) 20 Agency mortgage & asset-backed 96,923 ( 1,669 ) 94 15,991 ( 417 ) 18 112,914 ( 2,086 ) 112 Non-Agency mortgage & asset-backed 15,215 ( 215 ) 11 1,964 ( 57 ) 3 17,179 ( 272 ) 14 Total temporarily impaired $ 236,472 $ ( 3,624 ) 187 $ 35,053 $ ( 1,042 ) 40 $ 271,525 $ ( 4,666 ) 227 The following table represents the cumulative credit losses on debt securities recognized in earnings for: Three Months Ended (Dollars in thousands) March 31, 2022 2021 Balance of cumulative credit-related OTTI at January 1 $ 257 $ 272 Decreases for previously recognized credit losses on securities that paid off — ( 15 ) Balance of credit-related OTTI at March 31 $ 257 $ 257 Equity Securities at Fair Value The Corporation owns one equity investment with a readily determinable fair value. At March 31, 2022 and December 31, 2021, this investment was reported at fair value of $ 492 thousand and $ 481 thousand, respectively, with changes in value reported through income. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2022 | |
Loans [Abstract] | |
Loans | Note 5. Loans The Bank reports its loan portfolio based on the primary collateral of the loan. It further classifies these loans by the primary purpose, either consumer or commercial. The Bank’s residential real estate loans include long-term loans to individuals and businesses secured by mortgages on the borrower’s real property and include home equity loans. Construction loans are made to finance the purchase of land and the construction of residential and commercial buildings thereon and are secured by mortgages on real estate. Commercial real estate loans include construction, owner and non-owner occupied properties and farm real estate. Commercial loans are made to businesses of various sizes for a variety of purposes including property, plant and equipment, working capital and loans to government municipalities. Commercial lending is concentrated in the Bank’s primary market, but also includes purchased loan participations. Consumer loans are comprised of installment loans and unsecured personal lines of credit. Each class of loans involves a different kind of risk. However, risk factors such as changes in interest rates, general economic conditions and changes in collateral values are common across all classes. The risk of each loan class is presented below. Residential Real Estate 1-4 Family The largest risk in residential real estate loans to retail customers is the borrower’s inability to repay the loan due to the loss of the primary source of income. The Bank attempts to mitigate this risk through prudent underwriting standards including employment history, current financial condition and credit history. These loans are generally owner occupied and serve as the borrower’s primary residence. Commercial purpose loans, secured by residential real estate, are usually dependent upon repayment from the rental income or other business purposes. These loans are generally non-owner occupied. In addition to the real estate collateral, these loans may have personal guarantees or UCC filings on other business assets. If a payment default occurs on a 1-4 family residential real estate loan, the collateral serves as a source of repayment, but may be subject to a change in value due to economic conditions. Residential Real Estate Construction This class includes loans to individuals for construction of a primary residence and to contractors and developers to improve real estate and construct residential properties. Construction loans to individuals generally bear the same risk as 1-4 family residential loans. Additional risks may include cost overruns, delays in construction or contractor problems. Loans to contractors and developers are primarily dependent on the sale of improved lots or finished homes for repayment. Risks associated with these loans include the borrower’s character and capacity to complete a development, the effect of economic conditions on the valuation of lots or homes, cost overruns, delays in construction or contractor problems. In addition to real estate collateral, these loans may have personal guarantees or UCC filings on other business assets, depending on the financial strength and experience of the developer. Real estate construction loans are monitored on a regular basis by either an independent third party or the responsible loan officer, depending on the size and complexity of the project. This monitoring process includes at a minimum, the submission of invoices or American Institute of Architects (AIA) documents detailing the cost incurred by the borrower, on-site inspections, and an authorizing signature for disbursement of funds. Commercial Real Estate Commercial real estate loans may be secured by various types of commercial property including retail space, office buildings, warehouses, hotels and motels, manufacturing facilities, and agricultural land. Commercial real estate loans present a higher level of risk than residential real estate loans. Repayment of these loans is normally dependent on cash-flow generated by the operation of a business that utilizes the real estate. The successful operation of the business, and therefore repayment ability, may be affected by general economic conditions outside of the control of the operator. On most commercial real estate loans ongoing monitoring of cash flow and other financial performance indictors is completed annually through financial statement analysis. In addition, the value of the collateral may be negatively affected by economic conditions and may be insufficient to repay the loan in the event of default. In the event of foreclosure, commercial real estate may be more difficult to liquidate than residential real estate. Commercial Commercial loans are made for various business purposes to finance equipment, inventory, accounts receivables, and operating liquidity. These loans are generally secured by business assets or equipment, non-real estate collateral and/or personal guarantees. Commercial loans present a higher level of credit risk than other loans because repayment ability is usually dependent on cash-flow from a business operation that can be affected by general economic conditions. On most Commercial real estate loans ongoing monitoring of cash flow and other financial performance indictors is completed at least annually through financial statement analysis. In the event of a default, collateral for these loans may be more difficult to liquidate, and the valuation of the collateral may decline more quickly than loans secured by other types of collateral. Loans to governmental municipalities are also included in the Commercial class. These loans generally have less risk than Commercial & Industrial (C&I) loans due to the taxing authority of the municipality and its ability to assess fees on services. This class also includes loans made as part of the Paycheck Protection Program (PPP). The PPP is a small business loan program, administered by the Small Business Administration (SBA). The PPP loans are 100 percent guaranteed by the SBA and have a maturity of two years or five years with a fixed interest rate of 1 % for the life of the loan. Because the PPP loans are 100 % guaranteed by the SBA, they present no credit risk to the Bank once the SBA guarantee is fulfilled. However, if the SBA does not grant loan forgiveness, the PPP loan would present the same risk factors as any other commercial loan. Consumer These loans are made for a variety of reasons to consumers and include term loans and personal lines-of credit. The loans may be secured or unsecured. Repayment is primarily dependent on the income of the borrower and to a lesser extent the sale of collateral. The underwriting of these loans is based on the consumer’s ability and willingness to repay and is determined by the borrower’s employment history, current financial condition and credit background. Collateral for these loans, if any, usually depreciates quickly and therefore, may not be adequate to repay the loan if it is repossessed. Therefore, the overall health of the economy, including unemployment rates and wages, will have an effect on the credit quality in this loan class. A summary of loans outstanding, by class, at the end of the reporting periods is as follows: March 31, December 31, (Dollars in thousands) 2022 2021 Residential Real Estate 1-4 Family Consumer first liens $ 72,246 $ 71,828 Commercial first lien 61,814 60,655 Total first liens 134,060 132,483 Consumer junior liens and lines of credit 67,780 67,103 Commercial junior liens and lines of credit 4,538 4,841 Total junior liens and lines of credit 72,318 71,944 Total residential real estate 1-4 family 206,378 204,427 Residential real estate - construction Consumer 8,382 8,278 Commercial 13,050 12,379 Total residential real estate construction 21,432 20,657 Commercial real estate 524,138 522,779 Commercial 243,008 244,543 Total commercial 767,146 767,322 Consumer 6,021 6,406 1,000,977 998,812 Less: Allowance for loan losses ( 15,050 ) ( 15,066 ) Net Loans $ 985,927 $ 983,746 Included in the loan balances are the following: Net unamortized deferred loan costs $ 1,964 $ 1,289 Loans pledged as collateral for borrowings and commitments from: FHLB $ 605,267 $ 614,828 Federal Reserve Bank 52,480 45,453 $ 657,747 $ 660,281 Paycheck Protection Program (included in commercial loans) $ 2,932 $ 7,755 |
Loan Quality And Allowance For
Loan Quality And Allowance For Loan Losses | 3 Months Ended |
Mar. 31, 2022 | |
Loan Quality And Allowance For Loan Losses [Abstract] | |
Loan Quality And Allowance For Loan Losses | Note 6. Loan Quality and Allowance for Loan Losses The following table presents, by class, the activity in the Allowance for Loan Losses (ALL) for the periods shown: Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total ALL at December 31, 2021 $ 475 $ 252 $ 325 $ 8,168 $ 5,127 $ 130 $ 589 $ 15,066 Charge-offs ( 20 ) — — — ( 1 ) ( 24 ) — ( 45 ) Recoveries 15 1 — — 5 8 — 29 Provision 10 — 4 ( 206 ) 52 11 129 — ALL at March 31, 2022 $ 480 $ 253 $ 329 $ 7,962 $ 5,183 $ 125 $ 718 $ 15,050 ALL at December 31, 2020 $ 555 $ 226 $ 294 $ 9,163 $ 5,679 $ 97 $ 775 $ 16,789 Charge-offs — — — ( 13 ) ( 5 ) ( 18 ) — ( 36 ) Recoveries — 169 — — 7 7 — 183 Provision ( 108 ) ( 184 ) 24 ( 365 ) ( 208 ) 27 14 ( 800 ) ALL at March 31, 2021 $ 447 $ 211 $ 318 $ 8,785 $ 5,473 $ 113 $ 789 $ 16,136 The following table presents, by class, loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of the periods shown : Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total March 31, 2022 Loans evaluated for ALL: Individually $ 651 $ — $ 422 $ 10,293 $ — $ — $ — $ 11,366 Collectively 133,409 72,318 21,010 513,845 243,008 6,021 — 989,611 Total $ 134,060 $ 72,318 $ 21,432 $ 524,138 $ 243,008 $ 6,021 $ — $ 1,000,977 ALL established for loans evaluated: Individually $ — $ — $ — $ 662 $ — $ — $ — $ 662 Collectively 480 253 329 7,300 5,183 125 718 14,388 ALL at March 31, 2022 $ 480 $ 253 $ 329 $ 7,962 $ 5,183 $ 125 $ 718 $ 15,050 December 31, 2021 Loans evaluated for ALL: Individually $ 661 $ — $ 424 $ 10,520 $ — $ — $ — $ 11,605 Collectively 131,822 71,944 20,233 512,259 244,543 6,406 — 987,207 Total $ 132,483 $ 71,944 $ 20,657 $ 522,779 $ 244,543 $ 6,406 $ — $ 998,812 ALL established for loans evaluated: Individually $ — $ — $ — $ 698 $ — $ — $ — $ 698 Collectively 475 252 325 7,470 5,127 130 589 14,368 ALL at December 31, 2021 $ 475 $ 252 $ 325 $ 8,168 $ 5,127 $ 130 $ 589 $ 15,066 The following table shows additional information about those loans considered to be impaired as of the periods shown: Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related March 31, 2022 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 651 $ 651 $ — $ — $ — Junior liens and lines of credit — — — — — Total 651 651 — — — Residential real estate - construction 422 531 — — — Commercial real estate 4,751 5,224 5,542 5,796 662 Commercial — — — — — Total $ 5,824 $ 6,406 $ 5,542 $ 5,796 $ 662 December 31, 2021 Residential Real Estate 1-4 Family First liens $ 661 $ 661 $ — $ — $ — Junior liens and lines of credit — — — — — Total 661 661 — — — Residential real estate - construction 424 729 — — — Commercial real estate 4,942 5,405 5,578 5,764 698 Commercial — — — — — Total $ 6,027 $ 6,795 $ 5,578 $ 5,764 $ 698 The following table shows the average balance of impaired loans and related interest income for the periods shown: Three Months Ended March 31, 2022 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Residential Real Estate 1-4 Family First liens $ 656 $ 7 Junior liens and lines of credit — — Total 656 7 Residential real estate - construction 423 — Commercial real estate 10,256 43 Commercial — — Total $ 11,335 $ 50 Three Months Ended March 31, 2021 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Residential Real Estate 1-4 Family First liens $ 634 $ 8 Junior liens and lines of credit — — Total 634 8 Residential real estate - construction 512 — Commercial real estate 16,043 91 Commercial — — Total $ 17,189 $ 99 At March 31, 2022, the Bank had $ 38.0 thousand of residential properties in the process of foreclosure compared to $ 38.0 thousand at the end of 2021. The following table presents the aging of payments of the loan portfolio : (Dollars in thousands) Loans Past Due and Still Accruing Total Current 30-59 Days 60-89 Days 90 Days+ Total Non-Accrual Loans March 31, 2022 Residential Real Estate 1-4 Family First liens $ 133,720 $ 204 $ 120 $ 16 $ 340 $ — $ 134,060 Junior liens and lines of credit 72,265 12 3 — 15 38 72,318 Total 205,985 216 123 16 355 38 206,378 Residential real estate - construction 21,010 — — — — 422 21,432 Commercial real estate 516,816 446 — — 446 6,876 524,138 Commercial 242,688 260 — — 260 60 243,008 Consumer 6,007 8 2 4 14 — 6,021 Total $ 992,506 $ 930 $ 125 $ 20 $ 1,075 $ 7,396 $ 1,000,977 December 31, 2021 Residential Real Estate 1-4 Family First liens $ 132,224 $ 96 $ 113 $ — $ 209 $ 50 $ 132,483 Junior liens and lines of credit 71,788 118 — — 118 38 71,944 Total 204,012 214 113 — 327 88 204,427 Residential real estate - construction 20,233 — — — — 424 20,657 Commercial real estate 515,487 293 187 — 480 6,812 522,779 Commercial 244,377 106 — — 106 60 244,543 Consumer 6,368 27 11 — 38 — 6,406 Total $ 990,477 $ 640 $ 311 $ — $ 951 $ 7,384 $ 998,812 The following table reports the risk rating for those loans in the portfolio that are assigned an individual risk rating. Consumer purpose loans are assigned a rating of either pass or substandard based on the performance status of the loans. Substandard consumer loans are comprised of loans 90 days or more past due and still accruing, and nonaccrual loans. Commercial purpose loans may be assigned any rating in accordance with the Bank’s internal risk rating system. Pass OAEM Substandard Doubtful (Dollars in thousands) (1-5) (6) (7) (8) Total March 31, 2022 Residential Real Estate 1-4 Family First liens $ 134,060 $ — $ — $ — $ 134,060 Junior liens and lines of credit 72,280 — 38 — 72,318 Total 206,340 — 38 — 206,378 Residential real estate - construction 21,010 — 422 — 21,432 Commercial real estate 488,884 18,722 16,532 — 524,138 Commercial 240,182 2,647 179 — 243,008 Consumer 6,021 — — — 6,021 Total $ 962,437 $ 21,369 $ 17,171 $ — $ 1,000,977 December 31, 2021 Residential Real Estate 1-4 Family First liens $ 132,433 $ — $ 50 $ — $ 132,483 Junior liens and lines of credit 71,906 — 38 — 71,944 Total 204,339 — 88 — 204,427 Residential real estate - construction 20,233 — 424 — 20,657 Commercial real estate 486,903 19,006 16,870 — 522,779 Commercial 244,315 49 179 — 244,543 Consumer 6,406 — — — 6,406 Total $ 962,196 $ 19,055 $ 17,561 $ — $ 998,812 The following table presents information on the Bank’s Troubled Debt Restructuring (TDR) loans as of: Troubled Debt Restructurings Within the Last 12 Months That Have Defaulted (Dollars in thousands) Troubled Debt Restructurings On Modified Terms Number of Recorded Number of Recorded Contracts Investment Performing* Nonperforming* Contracts Investment March 31, 2022 Residential real estate - construction 1 $ 422 $ — $ 422 — $ — Residential real estate 5 650 650 — — — Commercial real estate - owner occupied 4 1,147 1,147 — — — Commercial real estate - farm land 4 1,496 1,496 — — — Commercial real estate - construction and land development 1 1,360 1,360 — — — Commercial real estate 2 287 98 189 — — Total 17 $ 5,362 $ 4,751 $ 611 — $ — December 31, 2021 Residential real estate - construction 1 $ 424 $ — $ 424 — $ — Residential real estate 5 661 661 — — — Commercial real estate - owner occupied 4 1,161 1,161 — — — Commercial real estate - farm land 4 1,664 1,664 — — — Commercial real estate - construction and land development 1 1,360 1,360 — — — Commercial real estate 2 294 294 — — — Total 17 $ 5,564 $ 5,140 $ 424 — $ — *The performing status is determined by the loan’s compliance with the modified terms . There were no new TDR loans during the first quarter of 2022. The following table reports new TDR loans during 2021, concession granted and the recorded investment as of March 31, 2022 : New During Period Twelve Months Ended Number of Pre-TDR After-TDR Recorded December 31, 2021 Contracts Modification Modification Investment Concession Residential real estate 1 $ 41 $ 50 $ 47 multiple |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 7. Leases The Corporation leases various assets in the course of its operations that are subject to recognition on the balance sheet. The Corporation considers all of its leases to be operating leases and it has no finance leases. The leased assets are comprised of equipment, and buildings and land (collectively real estate). The equipment leases are shorter-term than the real estate leases, and generally have a fixed payment over a defined term without renewal options. Certain equipment leases have purchase options and it was determined the option was not reasonably certain to be exercised. The real estate leases are longer-term and may contain renewal options after the initial term, but none of the real estate leases contain a purchase option. The renewal options on real estate leases were reviewed and if it was determined the option was reasonably certain to be renewed, the option term was considered in the determination of the lease liability. There is only one real estate lease with a variable payment based on an index included in the lease liability. None of the leases contain any restrictive covenants and there are no significant leases that have not yet commenced. The discount rate used to determine the lease liability is based on the Bank’s fully secured borrowing rate from the Federal Home Loan Bank for a term similar to the lease term. Operating lease expense is included in net occupancy expense in the consolidated statements of income. Lease costs: The components of total lease cost were as follows: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Operating lease cost $ 173 $ 174 Short-term lease cost 123 — Variable lease cost 25 24 Total lease cost $ 321 $ 198 Supplemental Lease Information: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 166 $ 162 Weighted-average remaining lease term (years) 10.8 11.5 Weighted-average discount rate 3.37 % 3.34 % Lease Obligations: Future undiscounted lease payments for operating leases with initial terms of one year or more as of March 31, 2022 are as follows: (Dollars in thousands) 2022 $ 487 2023 660 2024 639 2025 588 2026 479 2027 and beyond 2,917 Undiscounted cash flow 5,770 Imputed Interest ( 1,007 ) Total lease liability $ 4,763 |
Other Real Estate Owned
Other Real Estate Owned | 3 Months Ended |
Mar. 31, 2022 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | Note 8. Other Real Estate Owned The Bank had no other real estate owned at March 31, 2022 and December 31, 2021. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2022 | |
Derivatives [Abstract] | |
Derivatives | Note 9. Derivatives The Corporation is exposed to certain risks arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities. The Corporation’s existing credit derivatives result from participations in interest rate swaps provided by external lenders as part of loan participation arrangements. Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain lenders which participate in loans. The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the Balance Sheet. Fair Value of Derivative Instruments Derivative Liabilities (Dollars in thousands) March 31, 2022 December 31, 2021 Notional amount Balance Sheet Location Fair Value Notional amount Balance Sheet Location Fair Value Derivatives not designated as hedging instruments Other Contracts $ 6,606 Other Liabilities $ 13 $ 6,653 Other Liabilities $ 21 Total derivatives not designated as hedging instruments $ 13 $ 21 The table below presents the effect of the Corporation’s derivative financial instruments that are not designated as hedging instruments on the Income Statement. Effect of Derivatives as Hedging Instruments on the Income Statement Derivatives Not Designated as Hedging Instruments under Subtopic 815-20 Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Three Months Ended March 31, 2022 March 31, 2021 Other Contracts Other income $ 8 $ 23 As of March 31, 2022, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $ 13 thousand. |
Pension
Pension | 3 Months Ended |
Mar. 31, 2022 | |
Pension [Abstract] | |
Pension | Note 10. Pension The components of pension expense for the periods presented are as follows: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Components of net periodic cost: Service cost $ 86 $ 99 Interest cost 168 87 Expected return on plan assets ( 249 ) ( 274 ) Settlement expense — 108 Recognized net actuarial loss 150 285 Total pension expense $ 155 $ 305 The service cost component of pension expense is recorded in the salaries and employee benefits line and all other cost components are recorded in the nonservice pension line of the Consolidated Statements of Income. |
Fair Value Measurements And Fai
Fair Value Measurements And Fair Values Of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Fair Value Measurements And Fair Values Of Financial Instruments | Note 11. Fair Value Measurements and Fair Values of Financial Instruments Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period-ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates maybe different than the amounts reported at each year-end. The Corporation uses the exit price notion to measure the fair value of financial instruments. FASB ASC Topic 820, “Financial Instruments”, requires disclosure of the fair value of financial assets and liabilities, including those financial assets and liabilities that are not measured and reported at fair value on a recurring and nonrecurring basis. The Corporation does not report any nonfinancial assets at fair value. FASB ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC Topic 820 are as follows: Level 1 : Valuation is based on unadjusted, quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 : Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. There may be substantial differences in the assumptions used for securities within the same level. For example, prices for U.S. Agency securities have fewer assumptions and are closer to level 1 valuations than the private label mortgage-backed securities that require more assumptions and are closer to level 3 valuations. Level 3 : Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Corporation’s assumptions regarding what market participants would assume when pricing a financial instrument. An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information regarding the fair value of the Corporation’s financial instruments should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’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 Corporation’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Corporation’s financial instruments measured at fair value on a recurring and nonrecurring basis. Equity Securities : Equity securities are valued using quoted market prices from nationally recognized markets (Level 1). Equity securities are measured at fair value on a recurring basis. Investment securities : Fair values of investment securities available-for-sale were primarily measured using information from a third-party pricing service. This service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications. Level 2 investment securities are primarily comprised of debt securities issued by states and municipalities, corporations, mortgage-backed securities issued by government agencies, and government-sponsored enterprises. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. Investment securities are measured at fair value on a recurring basis. Impaired Loans : The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals conducted by an independent, licensed appraiser, less cost to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach (Level 2). If the appraiser makes an adjustment to account for differences between the comparable sales and income data available for similar loans, or if management adjusts the appraised value, then the fair value is considered Level 3. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. No partial charge-offs on impaired loans were taken in the first quarter of 2022. Impaired loans are measured at fair value on a nonrecurring basis. Recurring Fair Value Measurements For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2022 and December 31, 2021 are as follows: (Dollars in thousands) Fair Value at March 31, 2022 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 492 $ — $ — $ 492 Available for sale: U.S. Government and Agency securities 79,012 — — 79,012 Municipal securities — 195,803 — 195,803 Corporate securities — 24,730 — 24,730 Agency mortgage and asset-backed securities — 168,405 — 168,405 Non-Agency mortgage and asset-backed securities — 43,527 — 43,527 Total assets $ 79,504 $ 432,465 $ — $ 511,969 (Dollars in thousands) Fair Value at December 31, 2021 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 481 $ — $ — $ 481 Available for sale: U.S. Government and Agency securities 84,286 — — 84,286 Municipal securities — 212,227 — 212,227 Corporate securities — 24,939 — 24,939 Agency mortgage and asset-backed securities — 177,685 — 177,685 Non-Agency mortgage and asset-backed securities — 30,674 — 30,674 Total assets $ 84,767 $ 445,525 $ — $ 530,292 The fair value of derivative liabilities measured at fair value at March 31, 2022 and December 31, 2021 was $ 13 thousand and $ 21 thousand, respectively, and was considered immaterial. Nonrecurring Fair Value Measurements For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2022 and December 31, 2021 are as follows: (Dollars in Thousands) Fair Value at March 31, 2022 Asset Description Level 1 Level 2 Level 3 Total Impaired loans (1) $ — $ — $ 4,880 $ 4,880 Total assets $ — $ — $ 4,880 $ 4,880 (Dollars in Thousands) Fair Value at December 31, 2021 Asset Description Level 1 Level 2 Level 3 Total Impaired loans (1) $ — $ — $ 4,880 $ 4,880 Total assets $ — $ — $ 4,880 $ 4,880 (1) Includes assets that may have been charged-down to fair value during the reporting period or have a specific reserve established. The Corporation did no t record any liabilities at fair value for which measurement of the fair value was made on a nonrecurring basis at March 31, 2022. For financial assets and liabilities measured at fair value on a recurring basis, there were no transfers of financial assets or liabilities between Level 1 and Level 2 during the period ending March 31, 2022. The following table presents additional quantitative information about Level 3 assets measured at fair value on a nonrecurring basis at March 31, 2022 and December 31, 2021: (Dollars in thousands) Range March 31, 2022 Fair Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans $ 4,880 Appraisal Appraisal Adjustment on: Real estate assets 20 % ( 20 %) Cost to sell 8 % Non-real estate assets 50 % - 100 % ( 83 %) Cost to sell 8 % Range December 31, 2021 Fair Value Valuation Technique Unobservable Input (Weighted Average) Impaired Loans $ 4,880 Appraisal Appraisal Adjustment on: Real estate assets 20 % ( 20 %) Cost to sell 8 % Non-real estate assets 50 % - 100 % ( 83 %) Cost to sell 8 % The carrying amounts and estimated fair value of financial instruments not carried at fair value are as follows: March 31, 2022 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 173,709 $ 173,709 $ 173,709 $ — $ — Long-term interest-bearing deposits in other banks 10,742 10,742 10,742 — — Loans held for sale 3,142 3,195 — 3,195 — Net loans 985,927 975,150 — — 975,150 Accrued interest receivable 3,080 3,080 — — 3,080 Financial liabilities: Deposits $ 1,596,386 $ 1,528,444 $ — $ 1,528,444 $ — Subordinate notes 19,598 19,009 — 19,009 — Accrued interest payable 334 334 — 334 — December 31, 2021 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 175,149 $ 175,149 $ 175,149 $ — $ — Long-term interest-bearing deposits in other banks 10,492 10,492 10,492 — — Loans held for sale 2,827 2,940 — 2,940 — Net loans 983,746 1,003,580 — — 1,003,580 Accrued interest receivable 5,217 5,217 — — 5,217 Financial liabilities: Deposits $ 1,584,359 $ 1,616,128 $ — $ 1,616,128 $ — Subordinate notes 19,588 19,909 — 19,909 — Accrued interest payable 83 83 — 83 — |
Subordinated Notes
Subordinated Notes | 3 Months Ended |
Mar. 31, 2022 | |
Subordinated Notes [Abstract] | |
Subordinated Notes | Note 12. Subordinated Notes At March 31, 2022, t he Corporation had $ 20.0 million of unsecured subordinated debt notes payable, $ 15.0 million which mature on September 1, 2030 and $ 5.0 million which mature on September 1, 2035. The notes are recorded on the consolidated balance sheet net of remaining debt issuance costs totaling $ 402.0 thousand at March 31, 2022, which is being amortized on a pro-rata basis over a 5 -year and 10 -year period, based on the call dates of the notes, on an effective interest method. The subordinated notes totaling $ 15.0 million have a fixed interest rate of 5.00 % through September 1, 2025, then convert to a variable rate of 90-day Secured Overnight Financing Rate (SOFR) plus 4.93 % for the applicable interest periods through maturity. The subordinated notes totaling $ 5.0 million have a fixed interest rate of 5.25 % through September 1, 2030, then convert to a variable rate of 90-day SOFR plus 4.92 % for the applicable interest periods through maturity. The Corporation may, at its option, redeem the notes, in whole or in part, at any time 5 -years prior to the maturity. The notes are structured to qualify as Tier 2 Capital for the Corporation and there are no debt covenants on the notes. |
Capital Ratios
Capital Ratios | 3 Months Ended |
Mar. 31, 2022 | |
Capital Ratios [Abstract] | |
Capital Ratios | Note 13. Capital Ratios Capital adequacy for the Bank is currently defined by regulatory agencies through the use of several minimum required ratios. The capital ratios to be considered “well capitalized” are: (1) Common Equity Tier 1 (CET1) of 6.5 %, (2) Tier 1 Leverage of 5 %, (3) Tier 1 Risk-Based Capital of 8 %, and (4) Total Risk-Based Capital of 10 %. In addition, a capital conservation buffer of 2.50 % is applicable to all of the capital ratios except for the Tier 1 Leverage ratio. The capital conservation buffer is equal to the lowest value of the three applicable capital ratios less the regulatory minimum for each respective capital measurement. The Bank’s capital conservation buffer at March 31, 2022 was 8.30 % compared to the regulatory buffer of 2.50 %. Compliance with the capital conservation buffer is required in order to avoid limitations to certain capital distributions and is in addition to the minimum required capital requirements. As of March 31, 2022, the Bank was “well capitalized.” In 2019, the Community Bank Leverage Ratio (CBLR) was approved by federal banking agencies as an optional capital measure available to Qualifying Community Banking Organizations (QCBO). If a bank qualifies as a QCBO and maintains a CBLR of 9 % or greater, the bank would be considered “well-capitalized” for regulatory capital purposes and exempt from complying with the risk-based capital rule described above. The CBLR rule took effect January 1, 2020 and banks could opt-in through an election in the first quarter 2020 regulatory filing. The Bank met the criteria of a QCBO but did not opt-in to the CBLR. The consolidated asset limit on small bank holding companies is $ 3.0 billion and a company with assets under that limit is not subject to the consolidated capital rules but may file reports that include capital amounts and ratios. The Corporation has elected to file those reports. The following table summarizes the regulatory capital requirements and results as of March 31, 2022 and December 31, 2021 for the Corporation and the Bank: Regulatory Ratios Adequately Well March 31, December 31, Capitalized Capitalized (Dollars in thousands) 2022 2021 Minimum Minimum Common Equity Tier 1 Risk-based Capital Ratio (1) Franklin Financial Services Corporation 14.94 % 15.20 % N/A N/A Farmers & Merchants Trust Company 15.05 % 15.28 % 4.50 % 6.50 % Tier 1 Risk-based Capital Ratio (2) Franklin Financial Services Corporation 14.94 % 15.20 % N/A N/A Farmers & Merchants Trust Company 15.05 % 15.28 % 6.00 % 8.00 % Total Risk-based Capital Ratio (3) Franklin Financial Services Corporation 18.09 % 18.41 % N/A N/A Farmers & Merchants Trust Company 16.30 % 16.54 % 8.00 % 10.00 % Tier 1 Leverage Ratio (4) Franklin Financial Services Corporation 8.59 % 8.52 % N/A N/A Farmers & Merchants Trust Company 8.65 % 8.57 % 4.00 % 5.00 % (1) Common equity Tier 1 capital/ total risk-weighted assets (2) Tier 1 capital / total risk-weighted assets (3) Total risk-based capital / total risk-weighted assets, (4) Tier 1 capital / average quarterly assets |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 14. Revenue Recognition All of the Corporation’s revenue from contracts with customers within the scope of ASC 606 is recognized in non-interest income as presented in its consolidated statements of income. Revenue generating activities that fall within the scope of ASC 606 are described as follows: Investment and Trust Service Fees – these represent fees from wealth management (assets under management), fees from the management and settlement of estates and commissions from the sale of investment and insurance products. Asset management fees are generally assessed based on a tiered fee schedule, based on the value of assets under management, and are recognized monthly when the service obligation is completed. Fees recognized were $ 1.6 million for the first quarter of 2022, compared to $ 1.5 million in the first quarter of 2021. Fees for estate management services are based on the estimated fair value of the estate. These fees are generally recognized monthly over an 18 -month period that Management has determined to represent the average time to fulfill the performance obligations of the contract. Management has the discretion to adjust this time period as needed based upon the nature and complexity of an individual estate. Fees recognized were $ 173 thousand for the first quarter of 2022, compared to $ 84 thousand in the first quarter of 2021. Commissions from the sale of investment and insurance products are recognized upon the completion of the transaction. Commissions recognized were $ 31 thousand for the first quarter of 2022, compared to $ 37 thousand for the first quarter of 2021. Loan Service Charges – these represent fees on loans for services or charges that occur after the loan has been booked, for example, late payment fees. These also include fees for mortgages settled for third-party mortgage companies. All of these fees are transactional in nature and are recognized upon completion of the transaction which represents the performance obligation. Deposit Service Charges and Fees – these represent fees from deposit customers for transaction based, account maintenance, and overdraft services. Transaction based fees include, but are not limited to, stop payment fees and overdraft fees. These fees are recognized at the time of the transaction when the performance obligation has been fulfilled. Account maintenance fees and account analysis fees are earned over the course of a month, representing the period of the performance obligation, and are recognized monthly. Debit Card Income – this represents interchange fees from cardholder transactions conducted through the card payment network. Cardholders use the debit card to conduct point-of-sale transactions that produce interchange fees. The fees are transaction based and the fee is recognized with the processing of the transaction. These fees are reported net of cardholder rewards. Other Service Charges and Fees – these are comprised primarily of merchant card fees, credit card fees, ATM surcharges and interchange fees and wire transfer fees. Merchant card fees represent fees the Bank earns from a third party for enrolling a customer in the processor’s program. Credit card fees represent a fee earned by the Bank for a successful referral to a card-issuing company. ATM surcharges and interchange fees are the result of Bank customers conducting ATM transactions that generate fee income and are processed through multiple card networks. All of these fees are transaction based and are recognized at the time of the transaction. Gains/Losses on the Sale of Other Real Estate – these are recognized when control of the property transfers to the buyer. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into longer-term revenue contracts with customers, and therefore, does not experience significant contract balances. Contract Acquisition Costs The Corporation expenses all contract acquisition costs as costs are incurred. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 1 Note 15. Commitments and Contingencies In the normal course of business, the Bank is a party to financial instruments that are not reflected in the accompanying financial statements and are commonly referred to as off-balance-sheet instruments. These financial instruments are entered into primarily to meet the financing needs of the Bank’s customers and include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk not recognized in the consolidated balance sheet. The Corporation’s exposure to credit loss in the event of nonperformance by other parties to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contract or notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as they do for on-balance-sheet instruments. The Bank had the following outstanding commitments for the periods presented: March 31, December 31, (Dollars in thousands) 2022 2021 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 281,285 $ 288,075 Consumer commitments to extend credit (secured) 90,243 82,095 Consumer commitments to extend credit (unsecured) 5,310 5,389 $ 376,838 $ 375,559 Standby letters of credit $ 26,487 $ 23,284 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses with the exception of home equity lines and personal lines of credit and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank, is based on Management’s credit evaluation of the counterparty. Collateral for most commercial commitments varies but may include accounts receivable, inventory, property, plant, and equipment, and income-producing commercial properties. Collateral for secured consumer commitments consists of liens on residential real estate. Standby letters of credit are instruments issued by the Bank, which guarantee the beneficiary payment by the Bank in the event of default by the Bank’s customer in the nonperformance of an obligation or service. Most standby letters of credit are extended for one-year periods. Generally, the credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral supporting those commitments for which collateral is deemed necessary primarily in the form of certificates of deposit and liens on real estate. Management believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. In the second quarter of 2018, the Bank established a $ 2.4 million allowance against letters of credit issued in connection with a commercial borrower that declared bankruptcy. In the first quarter of 2020, the Bank reversed $ 250 thousand of this reserve as one letter of credit was cancelled. In the second quarter of 2021, the Bank reversed $ 636 thousand of this reserve as a second letter of credit was cancelled. At March 31, 2022, this reserve was $ 1.5 million. Except for the liability recorded for standby letters of credit, liabilities for credit loss associated with off-balance sheet commitments were not material at March 31, 2022 and December 31, 2021. Most of the Bank’s business activity is with customers located within its primary market and does not involve any significant concentrations of credit to any one entity or industry. Legal Proceedings The nature of the Corporation’s business generates a certain amount of litigation. The Corporation establishes accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable, and the amount of the loss can be reasonably estimated. When the Corporation is able to do so, it also determines estimates of possible losses, whether in excess of any accrued liability or where there is no accrued liability. These assessments are based on the analysis of currently available information and are subject to significant judgment and a variety of assumptions and uncertainties. As new information is obtained, the Corporation may change its assessments and, as a result, take or adjust the amounts of its accruals and change its estimates of possible losses or ranges of possible losses. Due to the inherent subjectivity of the assessments and the unpredictability of outcomes of legal proceedings, any amounts that may be accrued or included in estimates of possible losses or ranges of possible losses may not represent the actual loss to the Corporation from any legal proceeding. Its exposure and ultimate losses may be higher, possibly significantly higher, than amounts it may accrue or amounts it may estimate. In management’s opinion, the Corporation does not anticipate, at the present time, that the ultimate aggregate liability, if any, arising out of all litigation to which the Corporation is a party at this time will have a material adverse effect on its financial position. The Corporation cannot now determine, however, whether or not any claim asserted against it will have a material adverse effect on its results of operations in any future reporting period, which will depend on, among other things, the amount of loss resulting from the claim and the amount of income otherwise reported for the reporting period. Thus, at March 31, 2022, the Corporation is unable to provide an evaluation of the likelihood of an unfavorable outcome or an estimate of the amount or range of potential loss with respect to such other matters and, accordingly, have not yet established any specific accrual for such other matters. |
Reclassification
Reclassification | 3 Months Ended |
Mar. 31, 2022 | |
Reclassification [Abstract] | |
Reclassification | Note 16. Reclassification Certain prior period amounts may have been reclassified to conform to the current year presentation. Such reclassifications did not affect prior year net income or shareholders’ equity . |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2022 | |
Basis Of Presentation [Abstract] | |
Consolidation | The consolidated financial statements include the accounts of Franklin Financial Services Corporation (the Corporation), and its wholly owned subsidiaries, Farmers and Merchants Trust Company of Chambersburg (the Bank) and Franklin Future Fund Inc. Farmers and Merchants Trust Company of Chambersburg is a commercial bank that has one wholly owned subsidiary, Franklin Financial Properties Corp. Franklin Financial Properties Corp. holds real estate assets that are leased by the Bank. Franklin Future Fund Inc. is a non-bank investment company. The activities of the non-bank subsidiary are not significant to the consolidated totals. All significant intercompany transactions and account balances have been eliminated. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations, and cash flows as of March 31, 2022, and for all other periods presented have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2021 Annual Report on Form 10-K. The consolidated results of operations for the three-month period ended March 31, 2022 are not necessarily indicative of the operating results for the full year. Management has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The consolidated balance sheet at December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete consolidated financial statements. For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks and cash items with original maturities less than 90 days. |
Earnings Per Share | Earnings per share are computed based on the weighted average number of shares outstanding during each period end. A reconciliation of the weighted average shares outstanding used to calculate basic earnings per share and diluted earnings per share follows: For the Three Months Ended March 31, (Dollars and shares in thousands, except per share data) 2022 2021 Weighted average shares outstanding (basic) 4,446 4,396 Impact of common stock equivalents 24 19 Weighted average shares outstanding (diluted) 4,470 4,415 Anti-dilutive options excluded from calculation 30 61 Net income $ 3,012 $ 4,830 Basic earnings per share $ 0.68 $ 1.10 Diluted earnings per share $ 0.67 $ 1.09 |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Basis Of Presentation [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | For the Three Months Ended March 31, (Dollars and shares in thousands, except per share data) 2022 2021 Weighted average shares outstanding (basic) 4,446 4,396 Impact of common stock equivalents 24 19 Weighted average shares outstanding (diluted) 4,470 4,415 Anti-dilutive options excluded from calculation 30 61 Net income $ 3,012 $ 4,830 Basic earnings per share $ 0.68 $ 1.10 Diluted earnings per share $ 0.67 $ 1.09 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Recently issued but not yet effective accounting standards ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Description This standard requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements We have formed an implementation team led by the Corporation's Risk Management function. The team is reviewing the requirements of the ASU and evaluating methods and models for implementation. As of the beginning of the first reporting period in which the new standard is adopted, the Corporation expects to recognize a one-time cumulative-effect adjustment to the allowance for loan losses, which will flow through retained earnings. After adoption, the new standard will result in earlier recognition of additions to the allowance for loan losses and possibly a larger allowance for loan loss balance with a corresponding increase in the provision for loan losses in results of operations; however, the Corporation is continuing to evaluate the impact of the pending adoption of the new standard on its consolidated financial statements. A third-party vendor has been selected to assist with the CECL calculations and the implementation process has started. The Corporation is running the CECL model in test mode in 2022. ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief Description This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05 has the same effective date as ASU 2016-13. On October 16, 2019, FASB approved its August 2019 proposal to grant certain small public companies a delay in the effective date of ASU 2016-13. For the Corporation, the delay makes the ASU effective January 2023. Since the Corporation currently meets the SEC definition of a small reporting company, the delay will be applied to the Corporation. Early adoption is permitted. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation continues to review the ASU as part of its adoption of ASU 2016-13. ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debit Restructurings and Vintage Disclosures Description This ASU will eliminate the recognition and measurement accounting guidance for Troubled Debt Restructurings (TDRs) by creditors in Subtopic 310-40, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation is reviewing the ASU as part of its adoption of ASU 2016-13. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Description This ASU provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the LIBOR or other interbank offered rate on financial reporting. To help with the transition to new reference rates, the ASU provides optional expedients and exceptions for applying GAAP to affected contract modifications and hedge accounting relationships. The main provisions include: (1) a change in a contract's reference interest rate would be accounted for as a continuation of that contract rather than as the creation of a new one for contracts, including loans, debts, leases, and other arrangements that meet specific criteria, and (2) when updating its hedging strategies in response to reference rate reform, an entity would be allowed to preserve its accounting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. Because the guidance is meant to help entities through the transition period, it will be in effect for a limited time and will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients that are retained through the end of the hedging relationship. Effective Date March 12, 2020 through December 31, 2022 Effect on the Consolidated Financial Statements The Corporation continues to review the ASU as part of its adoption but does not expect it to have a material effect on the consolidated financial statements. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | March 31, December 31, (Dollars in thousands) 2022 2021 Net unrealized gains on debt securities $ ( 23,624 ) $ 4,094 Tax effect 4,961 ( 860 ) Net of tax amount $ ( 18,663 ) $ 3,234 Accumulated pension adjustment $ ( 4,786 ) $ ( 4,786 ) Tax effect 1,005 1,005 Net of tax amount $ ( 3,781 ) $ ( 3,781 ) Total accumulated other comprehensive loss $ ( 22,444 ) $ ( 547 ) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Abstract] | |
Unrealized Gain (Loss) On Investments | (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair March 31, 2022 cost gains losses value U.S. Treasury $ 84,725 $ — $ ( 5,713 ) $ 79,012 Municipal 205,912 811 ( 10,920 ) 195,803 Corporate 25,300 69 ( 639 ) 24,730 Agency mortgage & asset-backed 174,496 117 ( 6,208 ) 168,405 Non-Agency mortgage & asset-backed 44,668 11 ( 1,152 ) 43,527 Total $ 535,101 $ 1,008 $ ( 24,632 ) $ 511,477 (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair December 31, 2021 cost gains losses value U.S. Treasury $ 84,896 $ 88 $ ( 698 ) $ 84,286 Municipal 206,501 7,148 ( 1,422 ) 212,227 Corporate 24,794 333 ( 188 ) 24,939 Agency mortgage & asset-backed 178,614 1,157 ( 2,086 ) 177,685 Non-Agency mortgage & asset-backed 30,912 34 ( 272 ) 30,674 Total $ 525,717 $ 8,760 $ ( 4,666 ) $ 529,811 |
Amortized Cost And Fair Value Of Debt Securities, By Contractual Maturity | (Dollars in thousands) Amortized cost Fair value Due in one year or less $ 1,667 $ 1,682 Due after one year through five years 8,933 8,848 Due after five years through ten years 144,994 137,312 Due after ten years 160,343 151,703 315,937 299,545 Mortgage & asset-backed 219,164 211,932 $ 535,101 $ 511,477 |
Schedule Of Unrealized Loss On Investments | March 31, 2022 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Treasury $ 79,012 $ ( 5,713 ) 28 $ — $ — — $ 79,012 $ ( 5,713 ) 28 Municipal 143,337 ( 8,389 ) 158 18,653 ( 2,531 ) 21 161,990 ( 10,920 ) 179 Corporate 13,989 ( 420 ) 27 3,781 ( 219 ) 7 17,770 ( 639 ) 34 Agency mortgage & asset-backed 124,484 ( 4,592 ) 165 26,240 ( 1,616 ) 28 150,724 ( 6,208 ) 193 Non-Agency mortgage & asset-backed 28,847 ( 981 ) 25 3,698 ( 171 ) 5 32,545 ( 1,152 ) 30 Total temporarily impaired $ 389,669 $ ( 20,095 ) 403 $ 52,372 $ ( 4,537 ) 61 $ 442,041 $ ( 24,632 ) 464 December 31, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Treasury $ 76,383 $ ( 698 ) 21 $ — $ — — $ 76,383 $ ( 698 ) 21 Municipal 38,997 ( 910 ) 44 15,404 ( 512 ) 16 54,401 ( 1,422 ) 60 Corporate 8,954 ( 132 ) 17 1,694 ( 56 ) 3 10,648 ( 188 ) 20 Agency mortgage & asset-backed 96,923 ( 1,669 ) 94 15,991 ( 417 ) 18 112,914 ( 2,086 ) 112 Non-Agency mortgage & asset-backed 15,215 ( 215 ) 11 1,964 ( 57 ) 3 17,179 ( 272 ) 14 Total temporarily impaired $ 236,472 $ ( 3,624 ) 187 $ 35,053 $ ( 1,042 ) 40 $ 271,525 $ ( 4,666 ) 227 |
Other Than Temporary Impairment, Credit Losses Recognized In Earnings | Three Months Ended (Dollars in thousands) March 31, 2022 2021 Balance of cumulative credit-related OTTI at January 1 $ 257 $ 272 Decreases for previously recognized credit losses on securities that paid off — ( 15 ) Balance of credit-related OTTI at March 31 $ 257 $ 257 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Loans [Abstract] | |
Schedule Of Loans Outstanding | March 31, December 31, (Dollars in thousands) 2022 2021 Residential Real Estate 1-4 Family Consumer first liens $ 72,246 $ 71,828 Commercial first lien 61,814 60,655 Total first liens 134,060 132,483 Consumer junior liens and lines of credit 67,780 67,103 Commercial junior liens and lines of credit 4,538 4,841 Total junior liens and lines of credit 72,318 71,944 Total residential real estate 1-4 family 206,378 204,427 Residential real estate - construction Consumer 8,382 8,278 Commercial 13,050 12,379 Total residential real estate construction 21,432 20,657 Commercial real estate 524,138 522,779 Commercial 243,008 244,543 Total commercial 767,146 767,322 Consumer 6,021 6,406 1,000,977 998,812 Less: Allowance for loan losses ( 15,050 ) ( 15,066 ) Net Loans $ 985,927 $ 983,746 Included in the loan balances are the following: Net unamortized deferred loan costs $ 1,964 $ 1,289 Loans pledged as collateral for borrowings and commitments from: FHLB $ 605,267 $ 614,828 Federal Reserve Bank 52,480 45,453 $ 657,747 $ 660,281 Paycheck Protection Program (included in commercial loans) $ 2,932 $ 7,755 |
Loan Quality And Allowance Fo_2
Loan Quality And Allowance For Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Loan Quality And Allowance For Loan Losses [Abstract] | |
Allowance For Loan Losses, By Loan Segment | The following table presents, by class, the activity in the Allowance for Loan Losses (ALL) for the periods shown: Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total ALL at December 31, 2021 $ 475 $ 252 $ 325 $ 8,168 $ 5,127 $ 130 $ 589 $ 15,066 Charge-offs ( 20 ) — — — ( 1 ) ( 24 ) — ( 45 ) Recoveries 15 1 — — 5 8 — 29 Provision 10 — 4 ( 206 ) 52 11 129 — ALL at March 31, 2022 $ 480 $ 253 $ 329 $ 7,962 $ 5,183 $ 125 $ 718 $ 15,050 ALL at December 31, 2020 $ 555 $ 226 $ 294 $ 9,163 $ 5,679 $ 97 $ 775 $ 16,789 Charge-offs — — — ( 13 ) ( 5 ) ( 18 ) — ( 36 ) Recoveries — 169 — — 7 7 — 183 Provision ( 108 ) ( 184 ) 24 ( 365 ) ( 208 ) 27 14 ( 800 ) ALL at March 31, 2021 $ 447 $ 211 $ 318 $ 8,785 $ 5,473 $ 113 $ 789 $ 16,136 The following table presents, by class, loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of the periods shown : Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total March 31, 2022 Loans evaluated for ALL: Individually $ 651 $ — $ 422 $ 10,293 $ — $ — $ — $ 11,366 Collectively 133,409 72,318 21,010 513,845 243,008 6,021 — 989,611 Total $ 134,060 $ 72,318 $ 21,432 $ 524,138 $ 243,008 $ 6,021 $ — $ 1,000,977 ALL established for loans evaluated: Individually $ — $ — $ — $ 662 $ — $ — $ — $ 662 Collectively 480 253 329 7,300 5,183 125 718 14,388 ALL at March 31, 2022 $ 480 $ 253 $ 329 $ 7,962 $ 5,183 $ 125 $ 718 $ 15,050 December 31, 2021 Loans evaluated for ALL: Individually $ 661 $ — $ 424 $ 10,520 $ — $ — $ — $ 11,605 Collectively 131,822 71,944 20,233 512,259 244,543 6,406 — 987,207 Total $ 132,483 $ 71,944 $ 20,657 $ 522,779 $ 244,543 $ 6,406 $ — $ 998,812 ALL established for loans evaluated: Individually $ — $ — $ — $ 698 $ — $ — $ — $ 698 Collectively 475 252 325 7,470 5,127 130 589 14,368 ALL at December 31, 2021 $ 475 $ 252 $ 325 $ 8,168 $ 5,127 $ 130 $ 589 $ 15,066 |
Impaired Financing Receivables | The following table shows additional information about those loans considered to be impaired as of the periods shown: Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related March 31, 2022 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 651 $ 651 $ — $ — $ — Junior liens and lines of credit — — — — — Total 651 651 — — — Residential real estate - construction 422 531 — — — Commercial real estate 4,751 5,224 5,542 5,796 662 Commercial — — — — — Total $ 5,824 $ 6,406 $ 5,542 $ 5,796 $ 662 December 31, 2021 Residential Real Estate 1-4 Family First liens $ 661 $ 661 $ — $ — $ — Junior liens and lines of credit — — — — — Total 661 661 — — — Residential real estate - construction 424 729 — — — Commercial real estate 4,942 5,405 5,578 5,764 698 Commercial — — — — — Total $ 6,027 $ 6,795 $ 5,578 $ 5,764 $ 698 The following table shows the average balance of impaired loans and related interest income for the periods shown: Three Months Ended March 31, 2022 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Residential Real Estate 1-4 Family First liens $ 656 $ 7 Junior liens and lines of credit — — Total 656 7 Residential real estate - construction 423 — Commercial real estate 10,256 43 Commercial — — Total $ 11,335 $ 50 Three Months Ended March 31, 2021 Average Interest (Dollars in thousands) Recorded Income Investment Recognized Residential Real Estate 1-4 Family First liens $ 634 $ 8 Junior liens and lines of credit — — Total 634 8 Residential real estate - construction 512 — Commercial real estate 16,043 91 Commercial — — Total $ 17,189 $ 99 |
Aging Of Payments Of The Loan Portfolio | At March 31, 2022, the Bank had $ 38.0 thousand of residential properties in the process of foreclosure compared to $ 38.0 thousand at the end of 2021. The following table presents the aging of payments of the loan portfolio : (Dollars in thousands) Loans Past Due and Still Accruing Total Current 30-59 Days 60-89 Days 90 Days+ Total Non-Accrual Loans March 31, 2022 Residential Real Estate 1-4 Family First liens $ 133,720 $ 204 $ 120 $ 16 $ 340 $ — $ 134,060 Junior liens and lines of credit 72,265 12 3 — 15 38 72,318 Total 205,985 216 123 16 355 38 206,378 Residential real estate - construction 21,010 — — — — 422 21,432 Commercial real estate 516,816 446 — — 446 6,876 524,138 Commercial 242,688 260 — — 260 60 243,008 Consumer 6,007 8 2 4 14 — 6,021 Total $ 992,506 $ 930 $ 125 $ 20 $ 1,075 $ 7,396 $ 1,000,977 December 31, 2021 Residential Real Estate 1-4 Family First liens $ 132,224 $ 96 $ 113 $ — $ 209 $ 50 $ 132,483 Junior liens and lines of credit 71,788 118 — — 118 38 71,944 Total 204,012 214 113 — 327 88 204,427 Residential real estate - construction 20,233 — — — — 424 20,657 Commercial real estate 515,487 293 187 — 480 6,812 522,779 Commercial 244,377 106 — — 106 60 244,543 Consumer 6,368 27 11 — 38 — 6,406 Total $ 990,477 $ 640 $ 311 $ — $ 951 $ 7,384 $ 998,812 |
Internal Credit Rating For The Loan Portfolio | The following table reports the risk rating for those loans in the portfolio that are assigned an individual risk rating. Consumer purpose loans are assigned a rating of either pass or substandard based on the performance status of the loans. Substandard consumer loans are comprised of loans 90 days or more past due and still accruing, and nonaccrual loans. Commercial purpose loans may be assigned any rating in accordance with the Bank’s internal risk rating system. Pass OAEM Substandard Doubtful (Dollars in thousands) (1-5) (6) (7) (8) Total March 31, 2022 Residential Real Estate 1-4 Family First liens $ 134,060 $ — $ — $ — $ 134,060 Junior liens and lines of credit 72,280 — 38 — 72,318 Total 206,340 — 38 — 206,378 Residential real estate - construction 21,010 — 422 — 21,432 Commercial real estate 488,884 18,722 16,532 — 524,138 Commercial 240,182 2,647 179 — 243,008 Consumer 6,021 — — — 6,021 Total $ 962,437 $ 21,369 $ 17,171 $ — $ 1,000,977 December 31, 2021 Residential Real Estate 1-4 Family First liens $ 132,433 $ — $ 50 $ — $ 132,483 Junior liens and lines of credit 71,906 — 38 — 71,944 Total 204,339 — 88 — 204,427 Residential real estate - construction 20,233 — 424 — 20,657 Commercial real estate 486,903 19,006 16,870 — 522,779 Commercial 244,315 49 179 — 244,543 Consumer 6,406 — — — 6,406 Total $ 962,196 $ 19,055 $ 17,561 $ — $ 998,812 |
Troubled Debt Restructuring Loans | The following table presents information on the Bank’s Troubled Debt Restructuring (TDR) loans as of: Troubled Debt Restructurings Within the Last 12 Months That Have Defaulted (Dollars in thousands) Troubled Debt Restructurings On Modified Terms Number of Recorded Number of Recorded Contracts Investment Performing* Nonperforming* Contracts Investment March 31, 2022 Residential real estate - construction 1 $ 422 $ — $ 422 — $ — Residential real estate 5 650 650 — — — Commercial real estate - owner occupied 4 1,147 1,147 — — — Commercial real estate - farm land 4 1,496 1,496 — — — Commercial real estate - construction and land development 1 1,360 1,360 — — — Commercial real estate 2 287 98 189 — — Total 17 $ 5,362 $ 4,751 $ 611 — $ — December 31, 2021 Residential real estate - construction 1 $ 424 $ — $ 424 — $ — Residential real estate 5 661 661 — — — Commercial real estate - owner occupied 4 1,161 1,161 — — — Commercial real estate - farm land 4 1,664 1,664 — — — Commercial real estate - construction and land development 1 1,360 1,360 — — — Commercial real estate 2 294 294 — — — Total 17 $ 5,564 $ 5,140 $ 424 — $ — *The performing status is determined by the loan’s compliance with the modified terms . There were no new TDR loans during the first quarter of 2022. The following table reports new TDR loans during 2021, concession granted and the recorded investment as of March 31, 2022 : New During Period Twelve Months Ended Number of Pre-TDR After-TDR Recorded December 31, 2021 Contracts Modification Modification Investment Concession Residential real estate 1 $ 41 $ 50 $ 47 multiple |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule Of Lease Costs | Three Months Ended March 31, (Dollars in thousands) 2022 2021 Operating lease cost $ 173 $ 174 Short-term lease cost 123 — Variable lease cost 25 24 Total lease cost $ 321 $ 198 |
Schedule Of Measurement Of Lease Liabilities | Three Months Ended March 31, (Dollars in thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 166 $ 162 Weighted-average remaining lease term (years) 10.8 11.5 Weighted-average discount rate 3.37 % 3.34 % |
Schedule Of Future Minimum Payments Operating Leases | (Dollars in thousands) 2022 $ 487 2023 660 2024 639 2025 588 2026 479 2027 and beyond 2,917 Undiscounted cash flow 5,770 Imputed Interest ( 1,007 ) Total lease liability $ 4,763 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivatives [Abstract] | |
Schedule Of Fair Value Of Derivative Instruments | Fair Value of Derivative Instruments Derivative Liabilities (Dollars in thousands) March 31, 2022 December 31, 2021 Notional amount Balance Sheet Location Fair Value Notional amount Balance Sheet Location Fair Value Derivatives not designated as hedging instruments Other Contracts $ 6,606 Other Liabilities $ 13 $ 6,653 Other Liabilities $ 21 Total derivatives not designated as hedging instruments $ 13 $ 21 |
Schedule Of Effect Of Derivative Instruments On The Statement Of Income | Effect of Derivatives as Hedging Instruments on the Income Statement Derivatives Not Designated as Hedging Instruments under Subtopic 815-20 Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivatives (Dollars in thousands) Three Months Ended March 31, 2022 March 31, 2021 Other Contracts Other income $ 8 $ 23 |
Pension (Tables)
Pension (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Pension [Abstract] | |
Schedule Of Net Periodic Pension Costs | Three Months Ended March 31, (Dollars in thousands) 2022 2021 Components of net periodic cost: Service cost $ 86 $ 99 Interest cost 168 87 Expected return on plan assets ( 249 ) ( 274 ) Settlement expense — 108 Recognized net actuarial loss 150 285 Total pension expense $ 155 $ 305 |
Fair Value Measurements And F_2
Fair Value Measurements And Fair Values Of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis | (Dollars in thousands) Fair Value at March 31, 2022 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 492 $ — $ — $ 492 Available for sale: U.S. Government and Agency securities 79,012 — — 79,012 Municipal securities — 195,803 — 195,803 Corporate securities — 24,730 — 24,730 Agency mortgage and asset-backed securities — 168,405 — 168,405 Non-Agency mortgage and asset-backed securities — 43,527 — 43,527 Total assets $ 79,504 $ 432,465 $ — $ 511,969 (Dollars in thousands) Fair Value at December 31, 2021 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 481 $ — $ — $ 481 Available for sale: U.S. Government and Agency securities 84,286 — — 84,286 Municipal securities — 212,227 — 212,227 Corporate securities — 24,939 — 24,939 Agency mortgage and asset-backed securities — 177,685 — 177,685 Non-Agency mortgage and asset-backed securities — 30,674 — 30,674 Total assets $ 84,767 $ 445,525 $ — $ 530,292 |
Schedule Of Fair Value On A Nonrecurring Basis | (Dollars in Thousands) Fair Value at March 31, 2022 Asset Description Level 1 Level 2 Level 3 Total Impaired loans (1) $ — $ — $ 4,880 $ 4,880 Total assets $ — $ — $ 4,880 $ 4,880 (Dollars in Thousands) Fair Value at December 31, 2021 Asset Description Level 1 Level 2 Level 3 Total Impaired loans (1) $ — $ — $ 4,880 $ 4,880 Total assets $ — $ — $ 4,880 $ 4,880 (1) Includes assets that may have been charged-down to fair value during the reporting period or have a specific reserve established. |
Fair Value Inputs, Assets, Quantitative Information | (Dollars in thousands) Range March 31, 2022 Fair Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans $ 4,880 Appraisal Appraisal Adjustment on: Real estate assets 20 % ( 20 %) Cost to sell 8 % Non-real estate assets 50 % - 100 % ( 83 %) Cost to sell 8 % Range December 31, 2021 Fair Value Valuation Technique Unobservable Input (Weighted Average) Impaired Loans $ 4,880 Appraisal Appraisal Adjustment on: Real estate assets 20 % ( 20 %) Cost to sell 8 % Non-real estate assets 50 % - 100 % ( 83 %) Cost to sell 8 % |
Capital Ratios (Tables)
Capital Ratios (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Capital Ratios [Abstract] | |
Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements | Regulatory Ratios Adequately Well March 31, December 31, Capitalized Capitalized (Dollars in thousands) 2022 2021 Minimum Minimum Common Equity Tier 1 Risk-based Capital Ratio (1) Franklin Financial Services Corporation 14.94 % 15.20 % N/A N/A Farmers & Merchants Trust Company 15.05 % 15.28 % 4.50 % 6.50 % Tier 1 Risk-based Capital Ratio (2) Franklin Financial Services Corporation 14.94 % 15.20 % N/A N/A Farmers & Merchants Trust Company 15.05 % 15.28 % 6.00 % 8.00 % Total Risk-based Capital Ratio (3) Franklin Financial Services Corporation 18.09 % 18.41 % N/A N/A Farmers & Merchants Trust Company 16.30 % 16.54 % 8.00 % 10.00 % Tier 1 Leverage Ratio (4) Franklin Financial Services Corporation 8.59 % 8.52 % N/A N/A Farmers & Merchants Trust Company 8.65 % 8.57 % 4.00 % 5.00 % (1) Common equity Tier 1 capital/ total risk-weighted assets (2) Tier 1 capital / total risk-weighted assets (3) Total risk-based capital / total risk-weighted assets, (4) Tier 1 capital / average quarterly assets |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies [Abstract] | |
Outstanding Commitments | March 31, December 31, (Dollars in thousands) 2022 2021 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 281,285 $ 288,075 Consumer commitments to extend credit (secured) 90,243 82,095 Consumer commitments to extend credit (unsecured) 5,310 5,389 $ 376,838 $ 375,559 Standby letters of credit $ 26,487 $ 23,284 |
Basis Of Presentation (Schedule
Basis Of Presentation (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basis Of Presentation [Abstract] | ||
Weighted average shares outstanding (basic) | 4,446 | 4,396 |
Impact of common stock equivalents | 24 | 19 |
Weighted average shares outstanding (diluted) | 4,470 | 4,415 |
Anti-dilutive options excluded from calculation | 30 | 61 |
Net income | $ 3,012 | $ 4,830 |
Basic earnings per share | $ 0.68 | $ 1.10 |
Diluted earnings per share | $ 0.67 | $ 1.09 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total accumulated other comprehensive loss | $ (22,444) | $ (547) |
Accumulated Other Comprehensive Income (Loss), Debt Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss, Before tax | (23,624) | 4,094 |
Accumulated other comprehensive loss, Tax effect | 4,961 | (860) |
Total accumulated other comprehensive loss | (18,663) | 3,234 |
Accumulated Other Comprehensive Income (Loss), Pension [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss, Before tax | (4,786) | (4,786) |
Accumulated other comprehensive loss, Tax effect | 1,005 | 1,005 |
Total accumulated other comprehensive loss | $ (3,781) | $ (3,781) |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)itemsecurity | Dec. 31, 2021USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | $ 511,477 | $ 529,811 |
Number of investments in a single issuer exceeds 10% of shareholders' equity | item | 0 | |
Percent of shareholders equity benchmark for investments in a single issuer | 10.00% | |
Number of debt securities | security | 464 | 227 |
Fair value of temporarily impaired securities | $ 442,041 | $ 271,525 |
Unrealized Losses | 24,632 | 4,666 |
Total unrealized loss position increased over prior year | $ 20,000 | |
Number Of Bond Issuers | item | 203 | |
Number Of Bonds Below Investment Grade | item | 0 | |
General Obligation Bonds | 63.00% | |
Equity securities | $ 492 | 481 |
Texas [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percent of Investment Portfolio | 14.00% | |
Pennsylvania [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percent of Investment Portfolio | 11.00% | |
CALIFORNIA | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percent of Investment Portfolio | 11.00% | |
MICHIGAN | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percent of Investment Portfolio | 10.00% | |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | $ 24,730 | $ 24,939 |
Number of debt securities | security | 34 | 20 |
Fair value of temporarily impaired securities | $ 17,770 | $ 10,648 |
Unrealized Losses | 639 | 188 |
Public Funds And Trust Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | $ 153,800 | $ 160,300 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of equity investments | item | 1 |
Investments (Unrealized Gain (L
Investments (Unrealized Gain (Loss) On Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 535,101 | $ 525,717 |
Gross unrealized gains | 1,008 | 8,760 |
Gross unrealized losses | (24,632) | (4,666) |
Fair value | 511,477 | 529,811 |
U.S Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 84,725 | 84,896 |
Gross unrealized gains | 88 | |
Gross unrealized losses | (5,713) | (698) |
Fair value | 79,012 | 84,286 |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 205,912 | 206,501 |
Gross unrealized gains | 811 | 7,148 |
Gross unrealized losses | (10,920) | (1,422) |
Fair value | 195,803 | 212,227 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 25,300 | 24,794 |
Gross unrealized gains | 69 | 333 |
Gross unrealized losses | (639) | (188) |
Fair value | 24,730 | 24,939 |
Agency Mortgage-Backed & asset-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 174,496 | 178,614 |
Gross unrealized gains | 117 | 1,157 |
Gross unrealized losses | (6,208) | (2,086) |
Fair value | 168,405 | 177,685 |
Non-Agency mortgage & asset-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 44,668 | 30,912 |
Gross unrealized gains | 11 | 34 |
Gross unrealized losses | (1,152) | (272) |
Fair value | $ 43,527 | $ 30,674 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Debt Securities, By Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 535,101 | $ 525,717 |
Fair Value | 511,477 | $ 529,811 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized cost | 1,667 | |
Due after one year through five years, Amortized cost | 8,933 | |
Due after five years through ten years, Amortized cost | 144,994 | |
Due after ten years, Amortized cost | 160,343 | |
Amortized cost | 315,937 | |
Due in one year or less, Fair value | 1,682 | |
Due after one year through five years, Fair value | 8,848 | |
Due after five years through ten years, Fair value | 137,312 | |
Due after ten years, Fair value | 151,703 | |
Fair Value | 299,545 | |
Mortgage And Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Mortgage-backed securities, Amortized cost | 219,164 | |
Mortgage-backed securities, Fair value | $ 211,932 |
Investments (Schedule Of Unreal
Investments (Schedule Of Unrealized Loss On Investments) (Details) $ in Thousands | Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 389,669 | $ 236,472 |
Less than 12 months: Unrealized Losses | $ (20,095) | $ (3,624) |
Less than 12 months: Count | security | 403 | 187 |
12 months or more: Fair Value | $ 52,372 | $ 35,053 |
12 months or more: Unrealized Losses | $ (4,537) | $ (1,042) |
12 months or more: Count | security | 61 | 40 |
Fair Value | $ 442,041 | $ 271,525 |
Unrealized Losses | $ (24,632) | $ (4,666) |
Count | security | 464 | 227 |
U.S Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 79,012 | $ 76,383 |
Less than 12 months: Unrealized Losses | $ (5,713) | $ (698) |
Less than 12 months: Count | security | 28 | 21 |
Fair Value | $ 79,012 | $ 76,383 |
Unrealized Losses | $ (5,713) | $ (698) |
Count | security | 28 | 21 |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 143,337 | $ 38,997 |
Less than 12 months: Unrealized Losses | $ (8,389) | $ (910) |
Less than 12 months: Count | security | 158 | 44 |
12 months or more: Fair Value | $ 18,653 | $ 15,404 |
12 months or more: Unrealized Losses | $ (2,531) | $ (512) |
12 months or more: Count | security | 21 | 16 |
Fair Value | $ 161,990 | $ 54,401 |
Unrealized Losses | $ (10,920) | $ (1,422) |
Count | security | 179 | 60 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 13,989 | $ 8,954 |
Less than 12 months: Unrealized Losses | $ (420) | $ (132) |
Less than 12 months: Count | security | 27 | 17 |
12 months or more: Fair Value | $ 3,781 | $ 1,694 |
12 months or more: Unrealized Losses | $ (219) | $ (56) |
12 months or more: Count | security | 7 | 3 |
Fair Value | $ 17,770 | $ 10,648 |
Unrealized Losses | $ (639) | $ (188) |
Count | security | 34 | 20 |
Agency Mortgage-Backed & asset-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 124,484 | $ 96,923 |
Less than 12 months: Unrealized Losses | $ (4,592) | $ (1,669) |
Less than 12 months: Count | security | 165 | 94 |
12 months or more: Fair Value | $ 26,240 | $ 15,991 |
12 months or more: Unrealized Losses | $ (1,616) | $ (417) |
12 months or more: Count | security | 28 | 18 |
Fair Value | $ 150,724 | $ 112,914 |
Unrealized Losses | $ (6,208) | $ (2,086) |
Count | security | 193 | 112 |
Non-Agency mortgage & asset-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 28,847 | $ 15,215 |
Less than 12 months: Unrealized Losses | $ (981) | $ (215) |
Less than 12 months: Count | security | 25 | 11 |
12 months or more: Fair Value | $ 3,698 | $ 1,964 |
12 months or more: Unrealized Losses | $ (171) | $ (57) |
12 months or more: Count | security | 5 | 3 |
Fair Value | $ 32,545 | $ 17,179 |
Unrealized Losses | $ (1,152) | $ (272) |
Count | security | 30 | 14 |
Investments (Other Than Tempora
Investments (Other Than Temporary Impairment, Credit Losses Recognized In Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments [Abstract] | ||
Beginning balance of cumulative credit-related OTTI | $ 257 | $ 272 |
Decreases for previously recognized credit losses on securities that paid off | (15) | |
Ending balance of credit-related OTTI | $ 257 | $ 257 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
PPP Program, guarantee percentage | 100.00% |
PPP program, interest rate | 1.00% |
Minimum [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
PPP Program, maturity period | 2 years |
Maximum [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
PPP Program, maturity period | 5 years |
Loans (Schedule Of Loans Outsta
Loans (Schedule Of Loans Outstanding) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 1,000,977 | $ 998,812 |
Less: Allowance for loan losses | (15,050) | (15,066) |
Net Loans | 985,927 | 983,746 |
Net unamortized deferred loan costs | 1,964 | 1,289 |
Loans pledged as collateral for borrowings and commitments from: FHLB | 605,267 | 614,828 |
Loans pledged as collateral for borrowings and commitments from :Federal Reserve Bank | 52,480 | 45,453 |
Total | 657,747 | 660,281 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 206,378 | 204,427 |
Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 21,432 | 20,657 |
Less: Allowance for loan losses | (329) | (325) |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 524,138 | 522,779 |
Less: Allowance for loan losses | (7,962) | (8,168) |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 243,008 | 244,543 |
Less: Allowance for loan losses | (5,183) | (5,127) |
Total Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 767,146 | 767,322 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,021 | 6,406 |
Less: Allowance for loan losses | (125) | (130) |
Consumer First Liens [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 72,246 | 71,828 |
Consumer Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 67,780 | 67,103 |
Consumer [Member] | Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,382 | 8,278 |
Commercial First Lien [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 61,814 | 60,655 |
Commercial Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,538 | 4,841 |
Commercial [Member] | Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 13,050 | 12,379 |
First Liens [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 134,060 | 132,483 |
Less: Allowance for loan losses | (480) | (475) |
Junior Lines And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 72,318 | 71,944 |
PPP [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 2,932 | $ 7,755 |
Loan Quality And Allowance Fo_3
Loan Quality And Allowance For Loan Losses (Narrative) (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Loan Quality And Allowance For Loan Losses [Abstract] | ||
Loan Deferral Or Modification, Granted, Amount | $ 38,000 | $ 38,000 |
Loan Quality And Allowance Fo_4
Loan Quality And Allowance For Loan Losses (Allowance For Loan Losses, By Loan Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | $ 15,066 | $ 16,789 | |
Charge-offs | (45) | (36) | |
Recoveries | 29 | 183 | |
Provision | (800) | ||
Allowance, Ending Balance | 15,050 | 16,136 | |
Loans evaluated for allowance individually | 11,366 | $ 11,605 | |
Loans evaluated for allowance collectively | 989,611 | 987,207 | |
Total Loans | 1,000,977 | 998,812 | |
Allowance established for loans evaluated individually | 662 | 698 | |
Allowance established for loan evaluated collectively | 14,388 | 14,368 | |
Total Allowance | 15,050 | 15,066 | |
Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Loans | 206,378 | 204,427 | |
Residential Real Estate - Construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 325 | 294 | |
Provision | 4 | 24 | |
Allowance, Ending Balance | 329 | 318 | |
Loans evaluated for allowance individually | 422 | 424 | |
Loans evaluated for allowance collectively | 21,010 | 20,233 | |
Total Loans | 21,432 | 20,657 | |
Allowance established for loan evaluated collectively | 329 | 325 | |
Total Allowance | 329 | 325 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 8,168 | 9,163 | |
Charge-offs | (13) | ||
Provision | (206) | (365) | |
Allowance, Ending Balance | 7,962 | 8,785 | |
Loans evaluated for allowance individually | 10,293 | 10,520 | |
Loans evaluated for allowance collectively | 513,845 | 512,259 | |
Total Loans | 524,138 | 522,779 | |
Allowance established for loans evaluated individually | 662 | 698 | |
Allowance established for loan evaluated collectively | 7,300 | 7,470 | |
Total Allowance | 7,962 | 8,168 | |
Commercial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 5,127 | 5,679 | |
Charge-offs | (1) | (5) | |
Recoveries | 5 | 7 | |
Provision | 52 | (208) | |
Allowance, Ending Balance | 5,183 | 5,473 | |
Loans evaluated for allowance collectively | 243,008 | 244,543 | |
Total Loans | 243,008 | 244,543 | |
Allowance established for loan evaluated collectively | 5,183 | 5,127 | |
Total Allowance | 5,183 | 5,127 | |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 130 | 97 | |
Charge-offs | (24) | (18) | |
Recoveries | 8 | 7 | |
Provision | 11 | 27 | |
Allowance, Ending Balance | 125 | 113 | |
Loans evaluated for allowance collectively | 6,021 | 6,406 | |
Total Loans | 6,021 | 6,406 | |
Allowance established for loan evaluated collectively | 125 | 130 | |
Total Allowance | 125 | 130 | |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 589 | 775 | |
Provision | 129 | 14 | |
Allowance, Ending Balance | 718 | 789 | |
Allowance established for loan evaluated collectively | 718 | 589 | |
Total Allowance | 718 | 589 | |
First Liens [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 475 | 555 | |
Charge-offs | (20) | ||
Recoveries | 15 | ||
Provision | 10 | (108) | |
Allowance, Ending Balance | 480 | 447 | |
Loans evaluated for allowance individually | 651 | 661 | |
Loans evaluated for allowance collectively | 133,409 | 131,822 | |
Total Loans | 134,060 | 132,483 | |
Allowance established for loan evaluated collectively | 480 | 475 | |
Total Allowance | 480 | 475 | |
Junior Liens & Lines Of Credit [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance, Beginning Balance | 252 | 226 | |
Recoveries | 1 | 169 | |
Provision | (184) | ||
Allowance, Ending Balance | 253 | $ 211 | |
Loans evaluated for allowance collectively | 72,318 | 71,944 | |
Total Loans | 72,318 | 71,944 | |
Allowance established for loan evaluated collectively | 253 | 252 | |
Total Allowance | $ 253 | $ 252 |
Loan Quality And Allowance Fo_5
Loan Quality And Allowance For Loan Losses (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | $ 5,824 | $ 6,027 | |
Unpaid Principal Balance With No Allowance | 6,406 | 6,795 | |
Recorded Investment With Allowance | 5,542 | 5,578 | |
Unpaid Principal Balance With Allowance | 5,796 | 5,764 | |
Related Allowance | 662 | 698 | |
Average Recorded Investment | 11,335 | $ 17,189 | |
Interest Income Recognized | 50 | 99 | |
Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 651 | 661 | |
Unpaid Principal Balance With No Allowance | 651 | 661 | |
Average Recorded Investment | 656 | 634 | |
Interest Income Recognized | 7 | 8 | |
Residential Real Estate [Member] | First Liens [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 651 | 661 | |
Unpaid Principal Balance With No Allowance | 651 | 661 | |
Average Recorded Investment | 656 | 634 | |
Interest Income Recognized | 7 | 8 | |
Residential Real Estate - Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 422 | 424 | |
Unpaid Principal Balance With No Allowance | 531 | 729 | |
Average Recorded Investment | 423 | 512 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 4,751 | 4,942 | |
Unpaid Principal Balance With No Allowance | 5,224 | 5,405 | |
Recorded Investment With Allowance | 5,542 | 5,578 | |
Unpaid Principal Balance With Allowance | 5,796 | 5,764 | |
Related Allowance | 662 | $ 698 | |
Average Recorded Investment | 10,256 | 16,043 | |
Interest Income Recognized | $ 43 | $ 91 |
Loan Quality And Allowance Fo_6
Loan Quality And Allowance For Loan Losses (Aging Of Payments Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 7,396 | $ 7,384 |
Total Loans | 1,000,977 | 998,812 |
Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 992,506 | 990,477 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 930 | 640 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 125 | 311 |
90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 20 | |
Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,075 | 951 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 38 | 88 |
Total Loans | 206,378 | 204,427 |
Residential Real Estate [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 205,985 | 204,012 |
Residential Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 216 | 214 |
Residential Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 123 | 113 |
Residential Real Estate [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 16 | |
Residential Real Estate [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 355 | 327 |
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 50 | |
Total Loans | 134,060 | 132,483 |
Residential Real Estate [Member] | First Liens [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 133,720 | 132,224 |
Residential Real Estate [Member] | First Liens [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 204 | 96 |
Residential Real Estate [Member] | First Liens [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 120 | 113 |
Residential Real Estate [Member] | First Liens [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 16 | |
Residential Real Estate [Member] | First Liens [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 340 | 209 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 38 | 38 |
Total Loans | 72,318 | 71,944 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 72,265 | 71,788 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 12 | 118 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3 | |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 15 | 118 |
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 422 | 424 |
Total Loans | 21,432 | 20,657 |
Residential Real Estate - Construction [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 21,010 | 20,233 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 6,876 | 6,812 |
Total Loans | 524,138 | 522,779 |
Commercial Real Estate [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 516,816 | 515,487 |
Commercial Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 446 | 293 |
Commercial Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 187 | |
Commercial Real Estate [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 446 | 480 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 60 | 60 |
Total Loans | 243,008 | 244,543 |
Commercial [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 242,688 | 244,377 |
Commercial [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 260 | 106 |
Commercial [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 260 | 106 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 6,021 | 6,406 |
Consumer [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 6,007 | 6,368 |
Consumer [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 8 | 27 |
Consumer [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 2 | 11 |
Consumer [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 4 | |
Consumer [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 14 | $ 38 |
Loan Quality And Allowance Fo_7
Loan Quality And Allowance For Loan Losses (Internal Credit Rating For The Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | $ 1,000,977 | $ 998,812 |
Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 962,437 | 962,196 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 21,369 | 19,055 |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 17,171 | 17,561 |
Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 206,378 | 204,427 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 206,340 | 204,339 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 38 | 88 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 134,060 | 132,483 |
Residential Real Estate [Member] | First Liens [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 134,060 | 132,433 |
Residential Real Estate [Member] | First Liens [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 50 | |
Residential Real Estate [Member] | First Liens [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 72,318 | 71,944 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 72,280 | 71,906 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 38 | 38 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 21,432 | 20,657 |
Residential Real Estate - Construction [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 21,010 | 20,233 |
Residential Real Estate - Construction [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 422 | 424 |
Residential Real Estate - Construction [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 524,138 | 522,779 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 488,884 | 486,903 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 18,722 | 19,006 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 16,532 | 16,870 |
Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 243,008 | 244,543 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 240,182 | 244,315 |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 2,647 | 49 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 179 | 179 |
Commercial [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 6,021 | 6,406 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 6,021 | 6,406 |
Consumer [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount |
Loan Quality And Allowance Fo_8
Loan Quality And Allowance For Loan Losses (Troubled Debt Restructuring Loans) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)contract | Mar. 31, 2022USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Number of Contracts | contract | 17 | 17 |
Troubled Debt Restructurings: Recorded Investment | $ 5,564 | $ 5,362 |
Performing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Recorded Investment | 5,140 | 4,751 |
Nonperforming [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Recorded Investment | $ 424 | $ 611 |
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Number of Contracts | contract | 1 | 1 |
Troubled Debt Restructurings: Recorded Investment | $ 424 | $ 422 |
Residential Real Estate - Construction [Member] | Nonperforming [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Recorded Investment | $ 424 | $ 422 |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Number of Contracts | contract | 5 | 5 |
Troubled Debt Restructurings: Recorded Investment | $ 661 | $ 650 |
Residential Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Recorded Investment | $ 661 | $ 650 |
Commercial Real Estate - Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Number of Contracts | contract | 4 | 4 |
Troubled Debt Restructurings: Recorded Investment | $ 1,161 | $ 1,147 |
Commercial Real Estate - Owner Occupied [Member] | Performing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Recorded Investment | $ 1,161 | $ 1,147 |
Commercial Real Estate - Farm Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Number of Contracts | contract | 4 | 4 |
Troubled Debt Restructurings: Recorded Investment | $ 1,664 | $ 1,496 |
Troubled Debt Restructurings, New During Period, Number of Contracts | contract | 1 | |
New During Period, Pre-TDR Modification | $ 41 | |
New During Period, After-TDR Modification | 50 | |
New During Period, Recorded Investment | 47 | |
Commercial Real Estate - Farm Land [Member] | Performing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Recorded Investment | $ 1,664 | $ 1,496 |
Commercial Real Estate - Construction And Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Number of Contracts | contract | 1 | 1 |
Troubled Debt Restructurings: Recorded Investment | $ 1,360 | $ 1,360 |
Commercial Real Estate - Construction And Land [Member] | Performing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Recorded Investment | $ 1,360 | $ 1,360 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Number of Contracts | contract | 2 | 2 |
Troubled Debt Restructurings: Recorded Investment | $ 294 | $ 287 |
Commercial Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Recorded Investment | $ 294 | 98 |
Commercial Real Estate [Member] | Nonperforming [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructurings: Recorded Investment | $ 189 |
Leases (Schedule Of Lease Costs
Leases (Schedule Of Lease Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 173 | $ 174 |
Short-term lease cost | 123 | |
Variable lease cost | 25 | 24 |
Total lease cost | $ 321 | $ 198 |
Leases (Schedule Of Measurement
Leases (Schedule Of Measurement Of Lease Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 166 | $ 162 |
Weighted-average remaining lease term (years) | 10 years 9 months 18 days | 11 years 6 months |
Weighted-average discount rate | 3.37% | 3.34% |
Leases (Schedule Of Future Mini
Leases (Schedule Of Future Minimum Payments Operating Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 487 | |
2023 | 660 | |
2024 | 639 | |
2025 | 588 | |
2026 | 479 | |
2027 and beyond | 2,917 | |
Undiscounted cash flow | 5,770 | |
Imputed Interest | (1,007) | |
Total lease liability | $ 4,763 | $ 4,857 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Other Real Estate Owned [Abstract] | ||
Other real estate owned | $ 0 | $ 0 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Derivatives [Abstract] | |
Derivative, net | $ 13 |
Derivatives (Schedule Of Fair V
Derivatives (Schedule Of Fair Value Of Derivative Instruments) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 13 | $ 21 |
Other Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,606 | 6,653 |
Fair Value | $ 13 | $ 21 |
Derivatives (Schedule Of Effect
Derivatives (Schedule Of Effect Of Derivative Instruments On The Statement Of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Contracts [Member] | Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ 8 | $ 23 |
Pension (Schedule Of Net Period
Pension (Schedule Of Net Periodic Pension Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension [Abstract] | ||
Service cost | $ 86 | $ 99 |
Interest cost | 168 | 87 |
Expected return on plan assets | (249) | (274) |
Settlement expense | 108 | |
Recognized net actuarial loss | 150 | 285 |
Total pension expense | $ 155 | $ 305 |
Fair Value Measurements And F_3
Fair Value Measurements And Fair Values Of Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | ||
Derivative liabilities | $ 13,000 | $ 21,000 |
Total liabilities | 0 | |
Assets, Level 1 to Level 2 Transfers | 0 | |
Liabilities, Level 1 to Level 2 Transfers | 0 | |
Partial charge-offs on impaired loans | $ 0 |
Fair Value Measurements And F_4
Fair Value Measurements And Fair Values Of Financial Instruments (Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | $ 492 | $ 481 |
Available for sale | 511,477 | 529,811 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 511,969 | 530,292 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 79,504 | 84,767 |
Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 432,465 | 445,525 |
Equity Securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 492 | 481 |
Equity Securities [Member] | Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 492 | 481 |
U.S. Government And Agency [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 79,012 | 84,286 |
U.S. Government And Agency [Member] | Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 79,012 | 84,286 |
Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 195,803 | 212,227 |
Municipal [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 195,803 | 212,227 |
Municipal [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 195,803 | 212,227 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 24,730 | 24,939 |
Corporate [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 24,730 | 24,939 |
Corporate [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 24,730 | 24,939 |
Agency Mortgage-Backed & asset-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 168,405 | 177,685 |
Agency Mortgage-Backed & asset-backed [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 168,405 | 177,685 |
Agency Mortgage-Backed & asset-backed [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 168,405 | 177,685 |
Non-Agency mortgage & asset-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 43,527 | 30,674 |
Non-Agency mortgage & asset-backed [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 43,527 | 30,674 |
Non-Agency mortgage & asset-backed [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | $ 43,527 | $ 30,674 |
Fair Value Measurements And F_5
Fair Value Measurements And Fair Values Of Financial Instruments (Schedule Of Fair Value On A Nonrecurring Basis) (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 4,880 | $ 4,880 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 4,880 | 4,880 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 4,880 | 4,880 |
Impaired Loans [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 4,880 | $ 4,880 |
Fair Value Measurements And F_6
Fair Value Measurements And Fair Values Of Financial Instruments (Fair Value Inputs, Assets, Quantitative Information) (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 4,880 | $ 4,880 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 4,880 | 4,880 |
Level 3 [Member] | Cost to Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quantitative Information Percentage | 8.00% | |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 4,880 | 4,880 |
Impaired Loans [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 4,880 | $ 4,880 |
Impaired Loans [Member] | Level 3 [Member] | Cost to Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quantitative Information Percentage | 8.00% | 8.00% |
Impaired Loans [Member] | Level 3 [Member] | Minimum [Member] | Cost to Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quantitative Information Percentage | 50.00% | |
Impaired Loans, Real Estate Assets [Member] | Level 3 [Member] | Appraisal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quantitative Information Percentage | 20.00% | 20.00% |
Impaired Loans, Real Estate Assets [Member] | Level 3 [Member] | Weighted Average [Member] | Appraisal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quantitative Information Percentage | 20.00% | 20.00% |
Impaired Loans, Non-Real Estate Assets [Member] | Level 3 [Member] | Appraisal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quantitative Information Percentage | 50.00% | |
Impaired Loans, Non-Real Estate Assets [Member] | Level 3 [Member] | Cost to Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quantitative Information Percentage | 8.00% | |
Impaired Loans, Non-Real Estate Assets [Member] | Level 3 [Member] | Maximum [Member] | Appraisal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quantitative Information Percentage | 100.00% | 100.00% |
Impaired Loans, Non-Real Estate Assets [Member] | Level 3 [Member] | Weighted Average [Member] | Appraisal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quantitative Information Percentage | 83.00% | 83.00% |
Subordinated Notes (Narrative)
Subordinated Notes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Subordinate notes | $ 19,598 | $ 19,588 |
Debt issuance costs | $ 402,000 | |
Redemption period | 5 years | |
Minimum [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Amortization period | 5 years | |
Maximum [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Amortization period | 10 years | |
Maturing September 1, 2030 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Subordinate notes | $ 15,000 | |
Maturing September 1, 2035 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Subordinate notes | 5,000 | |
Through September 1, 2025 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Subordinate notes | $ 15,000 | |
Interest rate | 5.00% | |
After September 1, 2025 [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Basis spread on variable rate | 4.93% | |
Through September 1, 2030 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Subordinate notes | $ 5,000 | |
Interest rate | 5.25% | |
After September 1, 2030 [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Basis spread on variable rate | 4.92% | |
Subordinated Debt [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Subordinate notes | $ 20,000 |
Capital Ratios (Narrative) (Det
Capital Ratios (Narrative) (Details) $ in Billions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($) | Dec. 31, 2021 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital Ratios, Basel III, Capital Conservation Buffer, Year Three | 2.50% | |
Community Bank Leverage Ratio, Minimum | 9.00% | |
Consolidated asset limit on small bank holding companies | $ 3 | |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 0.065 | |
Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 0.08 | |
Tier 1 Leverage Ratio: Well Capitalized Minimum: Ratio | 0.05 | |
Total Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 0.10 | |
Capital ratios, capital conservation buffer | 8.30% |
Capital Ratios (Schedule Of The
Capital Ratios (Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements) (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
Franklin Financial Services Corporation [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | 0.1494 | 0.1520 |
Tier 1 Risk-based Capital Ratio: Ratio | 0.1494 | 0.1520 |
Total Risk-based Capital Ratio: Ratio | 0.1809 | 0.1841 |
Tier 1 Leverage Ratio: Ratio | 0.0859 | 0.0852 |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | 0.1505 | 0.1528 |
Common Equity Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 0.0450 | |
Common Equity Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 0.065 | |
Tier 1 Risk-based Capital Ratio: Ratio | 0.1505 | 0.1528 |
Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 0.0600 | |
Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 0.08 | |
Total Risk-based Capital Ratio: Ratio | 0.1630 | 0.1654 |
Total Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 0.0800 | |
Total Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 0.10 | |
Tier 1 Leverage Ratio: Ratio | 0.0865 | 0.0857 |
Tier 1 Leverage Ratio: Adequately Capitalized Minimum: Ratio | 0.0400 | |
Tier 1 Leverage Ratio: Well Capitalized Minimum: Ratio | 0.05 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Investment and trust services fees | $ 1,828 | $ 1,636 |
Estate management services Fees recognition period | 18 months | |
Asset Management Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Investment and trust services fees | $ 1,600 | 1,500 |
Estate Management Services Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Investment and trust services fees | 173 | 84 |
Commisions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Investment and trust services fees | $ 31 | $ 37 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2020 |
Commitments And Contingencies [Abstract] | ||||
Allowance against letters of credit | $ 2,400 | $ 1,500 | ||
Letters of credit cancelled | $ 636 | $ 250 |
Commitments And Contingencies_3
Commitments And Contingencies (Outstanding Commitments ) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Commercial Commitments To Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | $ 281,285 | $ 288,075 |
Consumer Commitments To Extend Credit (Secured) [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 90,243 | 82,095 |
Consumer Commitments To Extend Credit (Unsecured) [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 5,310 | 5,389 |
Commitments To Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 376,838 | 375,559 |
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | $ 26,487 | $ 23,284 |