Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 | 1500 Nitterhouse Drive | |
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 | 4,350,689 | |
Entity Central Index Key | 0000723646 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 17,861 | $ 17,883 |
Short-term interest-earning deposits in other banks | 46,971 | 47,016 |
Total cash and cash equivalents | 64,832 | 64,899 |
Long-term interest-earning deposits in other banks | 8,978 | 13,975 |
Debt securities available for sale, at fair value | 439,471 | 486,836 |
Equity securities | 380 | 411 |
Restricted stock | 694 | 644 |
Loans held for sale | 126 | 283 |
Loans | 1,145,162 | 1,051,041 |
Allowance for credit losses | (14,615) | (14,175) |
Net Loans | 1,130,547 | 1,036,866 |
Premises and equipment, net | 29,279 | 30,026 |
Right of use asset | 4,982 | 6,010 |
Bank owned life insurance | 22,530 | 22,311 |
Goodwill | 9,016 | 9,016 |
Deferred tax asset, net | 14,730 | 15,630 |
Other assets | 10,600 | 12,672 |
Total assets | 1,736,165 | 1,699,579 |
Deposits | ||
Noninterest-bearing checking | 287,385 | 299,231 |
Money management, savings, and interest checking | 1,136,008 | 1,194,827 |
Time | 89,742 | 57,390 |
Total deposits | 1,513,135 | 1,551,448 |
Short-term borrowings | 70,000 | |
Subordinate notes | 19,643 | 19,623 |
Lease liability | 5,104 | 6,144 |
Other liabilities | 8,513 | 8,167 |
Total liabilities | 1,616,395 | 1,585,382 |
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 4,349,988 shares outstanding at June 30, 2023 and 4,710,972 shares issued and 4,390,397 shares outstanding at December 31, 2022 | 4,711 | 4,711 |
Capital stock no par value, 5,000,000 shares authorized with no shares issued and outstanding | ||
Additional paid-in capital | 43,422 | 43,535 |
Retained earnings | 129,452 | 125,892 |
Accumulated other comprehensive loss | (47,961) | (51,287) |
Treasury stock, 360,984 shares at June 30, 2023 and 320,575 shares at December 31, 2022, at cost | (9,854) | (8,654) |
Total shareholders' equity | 119,770 | 114,197 |
Total liabilities and shareholders' equity | $ 1,736,165 | $ 1,699,579 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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 | 4,349,988 | 4,390,397 |
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 | 360,984 | 320,575 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest income | ||||
Loans, including fees | $ 14,069 | $ 9,754 | $ 26,405 | $ 18,821 |
Interest and dividends on investments: | ||||
Taxable interest | 3,327 | 2,168 | 6,777 | 4,010 |
Tax exempt interest | 313 | 524 | 679 | 1,049 |
Dividend income | 11 | 8 | 19 | 9 |
Interesting-earnings deposits in other banks | 791 | 421 | 1,214 | 520 |
Total interest income | 18,511 | 12,875 | 35,094 | 24,409 |
Interest expense | ||||
Deposits | 4,378 | 504 | 7,808 | 967 |
Short-term borrowings | 677 | 728 | ||
Subordinate notes | 261 | 260 | 526 | 523 |
Total interest expense | 5,316 | 764 | 9,062 | 1,490 |
Net interest income | 13,195 | 12,111 | 26,032 | 22,919 |
Provision for credit losses - loans | 524 | 991 | ||
Provision for credit losses - unfunded commitments | 8 | 70 | ||
Net interest income after credit loss expense | 12,663 | 12,111 | 24,971 | 22,919 |
Noninterest income | ||||
Investment and trust services fees | 1,959 | 1,918 | 3,793 | 3,746 |
Loan service charges | 120 | 240 | 422 | 356 |
Gain on sale of loans | 45 | 255 | 118 | 509 |
Deposit service charges and fees | 616 | 634 | 1,199 | 1,257 |
Other service charges and fees | 430 | 437 | 862 | 849 |
Debit card income | 547 | 438 | 1,050 | 896 |
Increase in cash surrender value of Bank owned life insurance | 111 | 109 | 220 | 217 |
Net losses on sales of debt securities | (517) | (19) | (1,119) | (19) |
Change in fair value of equity securities | (8) | 4 | (32) | 15 |
Other | 226 | 75 | 241 | 150 |
Total noninterest income | 3,529 | 4,091 | 6,754 | 7,976 |
Noninterest Expense | ||||
Salaries and employee benefits | 7,283 | 7,045 | 14,220 | 13,410 |
Net occupancy | 1,112 | 979 | 2,222 | 1,952 |
Marketing and advertising | 550 | 460 | 1,069 | 957 |
Legal and professional | 454 | 484 | 1,005 | 999 |
Data processing | 1,118 | 1,261 | 2,178 | 2,398 |
Pennsylvania bank shares tax | 174 | 335 | 397 | 478 |
FDIC Insurance | 198 | 170 | 380 | 353 |
ATM/debit card processing | 307 | 360 | 601 | 706 |
Telecommunications | 98 | 106 | 197 | 199 |
Nonservice pension | (29) | 69 | (59) | 138 |
Lease termination | 495 | 495 | ||
Other | 888 | 760 | 1,962 | 1,706 |
Total noninterest expense | 12,648 | 12,029 | 24,667 | 23,296 |
Income before federal income taxes | 3,544 | 4,173 | 7,058 | 7,599 |
Federal income tax expense | 568 | 595 | 790 | 1,009 |
Net income | $ 2,976 | $ 3,578 | $ 6,268 | $ 6,590 |
Per share | ||||
Basic earnings per share | $ 0.68 | $ 0.80 | $ 1.43 | $ 1.48 |
Diluted earnings per share | $ 0.68 | $ 0.80 | $ 1.42 | $ 1.47 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | |||||
Net income | $ 2,976 | $ 3,578 | $ 6,268 | $ 6,590 | |
Debt Securities: | |||||
Unrealized (losses) gains arising during the period | (5,534) | (20,965) | 3,092 | (48,683) | |
Reclassification adjustment for losses included in net income | [1] | 517 | 19 | 1,119 | 19 |
Net unrealized (losses)/gains | (5,017) | (20,946) | 4,211 | (48,664) | |
Tax effect | 1,052 | 4,400 | (885) | 10,221 | |
Net of tax amount | (3,965) | (16,546) | 3,326 | (38,443) | |
Total other comprehensive (loss) income | (3,965) | (16,546) | 3,326 | (38,443) | |
Total Comprehensive (Loss) Income | $ (989) | $ (12,968) | $ 9,594 | $ (31,853) | |
[1] Reclassified to net losses on sales of debt securities |
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] Impact of Adoption, Adjustment [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Impact of Adoption, Adjustment [Member] | Total |
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 | |||||||
Net income | 6,590 | 6,590 | ||||||
Other comprehensive income | (38,443) | (38,443) | ||||||
Cash dividends declared | (2,848) | (2,848) | ||||||
Acquisition of treasury stock | $ (1,461) | (1,461) | ||||||
Acquisition of treasury stock, shares | (48,040) | |||||||
Treasury shares issued under dividend reinvestment plan | 128 | $ 521 | 649 | |||||
Treasury shares issued under dividend reinvestment plan, shares | 20,512 | |||||||
Stock Compensation Plans: | ||||||||
Treasury shares issued | (186) | $ 210 | 24 | |||||
Treasury shares issued, shares | 8,365 | |||||||
Compensation expense | 221 | 221 | ||||||
Balance at Jun. 30, 2022 | $ 4,711 | 43,248 | 120,354 | (38,990) | $ (7,526) | 121,797 | ||
Balance, shares at Jun. 30, 2022 | 4,422,280 | |||||||
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 | |||||||
Net income | 3,578 | 3,578 | ||||||
Other comprehensive income | (16,546) | (16,546) | ||||||
Cash dividends declared | (1,427) | (1,427) | ||||||
Acquisition of treasury stock | $ (1,441) | (1,441) | ||||||
Acquisition of treasury stock, shares | (47,431) | |||||||
Treasury shares issued under dividend reinvestment plan | 49 | $ 284 | 333 | |||||
Treasury shares issued under dividend reinvestment plan, shares | 11,133 | |||||||
Stock Compensation Plans: | ||||||||
Treasury shares issued | (30) | $ 42 | 12 | |||||
Treasury shares issued, shares | 1,660 | |||||||
Compensation expense | 152 | 152 | ||||||
Balance at Jun. 30, 2022 | $ 4,711 | 43,248 | 120,354 | (38,990) | $ (7,526) | 121,797 | ||
Balance, shares at Jun. 30, 2022 | 4,422,280 | |||||||
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2022 | $ 98 | $ 98 | ||||||
Balance at Dec. 31, 2022 | $ 4,711 | 43,535 | 125,892 | (51,287) | (8,654) | $ 114,197 | ||
Balance, shares at Dec. 31, 2022 | 4,390,397 | 4,390,397 | ||||||
Net income | 6,268 | $ 6,268 | ||||||
Other comprehensive income | 3,326 | 3,326 | ||||||
Cash dividends declared | (2,806) | (2,806) | ||||||
Acquisition of treasury stock | $ (2,394) | (2,394) | ||||||
Acquisition of treasury stock, shares | (84,414) | |||||||
Treasury shares issued under dividend reinvestment plan | 32 | $ 779 | 811 | |||||
Treasury shares issued under dividend reinvestment plan, shares | 28,679 | |||||||
Stock Compensation Plans: | ||||||||
Treasury shares issued | (398) | $ 415 | 17 | |||||
Treasury shares issued, shares | 15,326 | |||||||
Compensation expense | 253 | 253 | ||||||
Balance at Jun. 30, 2023 | $ 4,711 | 43,422 | 129,452 | (47,961) | $ (9,854) | $ 119,770 | ||
Balance, shares at Jun. 30, 2023 | 4,349,988 | 4,349,988 | ||||||
Balance at Mar. 31, 2023 | $ 4,711 | 43,356 | 127,877 | (43,996) | (8,365) | $ 123,583 | ||
Balance, shares at Mar. 31, 2023 | 4,402,675 | |||||||
Net income | 2,976 | 2,976 | ||||||
Other comprehensive income | (3,965) | (3,965) | ||||||
Cash dividends declared | (1,401) | (1,401) | ||||||
Acquisition of treasury stock | $ (2,078) | (2,078) | ||||||
Acquisition of treasury stock, shares | (74,306) | |||||||
Treasury shares issued under dividend reinvestment plan | (17) | $ 550 | 533 | |||||
Treasury shares issued under dividend reinvestment plan, shares | 20,195 | |||||||
Stock Compensation Plans: | ||||||||
Treasury shares issued | (35) | $ 39 | 4 | |||||
Treasury shares issued, shares | 1,424 | |||||||
Compensation expense | 118 | 118 | ||||||
Balance at Jun. 30, 2023 | $ 4,711 | $ 43,422 | $ 129,452 | $ (47,961) | $ (9,854) | $ 119,770 | ||
Balance, shares at Jun. 30, 2023 | 4,349,988 | 4,349,988 |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements Of Changes In Shareholders' Equity [Abstract] | ||||
Dividend declared per share | $ 0.32 | $ 0.32 | $ 0.64 | $ 0.64 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 6,268 | $ 6,590 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 988 | 544 |
Net amortization of loans and investment securities | 1,720 | 2,121 |
Amortization of subordinate debt issuance costs | 20 | 17 |
Provision for credit losses | 1,061 | |
Change in fair value of equity securities | 32 | (15) |
Realized losses on sales of debt securities | 1,119 | 19 |
Loans originated for sale | (8,341) | (28,850) |
Proceeds from sale of loans | 8,616 | 30,132 |
Gain on sale of loans held for sale | (118) | (509) |
Increase in cash surrender value of life insurance | (220) | (217) |
Decrease in fair value of derivative | (13) | |
Stock based compensation | 253 | 221 |
Decrease in other assets | 1,573 | 606 |
Increase (decrease) in other liabilities | 414 | (1,360) |
Net cash provided by operating activities | 13,385 | 9,286 |
Cash flows from investing activities | ||
Net decrease (increase) in long-term interest-earning deposits in other banks | 4,997 | (1,984) |
Proceeds from sales and calls of investment securities available for sale | 40,117 | 82 |
Proceeds from maturities and pay-downs of securities available for sale | 16,062 | 20,600 |
Purchase of investment securities available for sale | (7,248) | (51,496) |
Net increase in restricted stock | (50) | (149) |
Net increase in loans | (94,417) | (35,827) |
Capital expenditures | (228) | (8,584) |
Net cash used in investing activities | (40,767) | (77,358) |
Cash flows from financing activities | ||
Net (decrease) increase in demand deposits, interest-bearing checking, and savings accounts | (70,665) | 106,000 |
Net increase (decrease) in time deposits | 32,352 | (11,172) |
Net increase in short-term borrowings | 70,000 | |
Dividends paid | (2,806) | (2,848) |
Purchase of Treasury shares | (2,394) | (1,461) |
Cash received from option exercises | 17 | 24 |
Treasury shares issued under dividend reinvestment plan | 811 | 649 |
Net cash provided by financing activities | 27,315 | 91,192 |
(Decrease) increase in cash and cash equivalents | (67) | 23,120 |
Cash and cash equivalents at the beginning of the period | 64,899 | 175,149 |
Cash and cash equivalents at the end of the period | 64,832 | 198,269 |
Cash paid during the year for: | ||
Interest on deposits and other borrowed funds | 7,813 | 1,503 |
Income taxes | 1,316 | 43 |
Noncash Activities | ||
Lease liabilities arising from obtaining right-of-use assets | 426 | |
Noncash extinguishment of lease liability | 537 | |
Noncash decrease in right-of-use asset | $ 507 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023, 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 2022 Annual Report on Form 10-K. The consolidated results of operations for the three- and six-month periods ended June 30, 2023 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, 2022 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 For the Six Months Ended June 30, June 30, (Dollars and shares in thousands, except per share data) 2023 2022 2023 2022 Weighted average shares outstanding (basic) 4,380 4,450 4,388 4,448 Impact of common stock equivalents 8 16 13 21 Weighted average shares outstanding (diluted) 4,388 4,466 4,401 4,469 Anti-dilutive options excluded from calculation 74 30 25 30 Net income $ 2,976 $ 3,578 $ 6,268 $ 6,590 Basic earnings per share $ 0.68 $ 0.80 $ 1.43 $ 1.48 Diluted earnings per share $ 0.68 $ 0.80 $ 1.42 $ 1.47 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements Recently adopted 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) 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. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities. Management does not intend to sell or believes that it is more likely than not they will be required to sell. The Corporation adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet (OBS) credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation adopted the ASU as of January 1, 2023 and recorded a decrease to the allowance for credit loss (ACL) for loans of $ 536 thousand, an increase of $ 412 thousand to the ACL for unfunded commitments, an increase of $ 98 thousand to retained earnings, and a deferred tax liability of $ 26 thousand. The following table illustrates the impact of ASC 326: As Reported Pre-ASC Impact of Under 326 ASC 326 ASC 326 Adoption Adoption (Dollars in thousands) Assets: Loans First liens $ 1,555 $ 459 $ 1,096 Junior liens & lines of credit 727 234 493 Construction 248 343 ( 95 ) Commercial real estate 8,077 7,493 584 Commercial 2,939 4,846 ( 1,907 ) Consumer 93 133 ( 40 ) Unallocated — 667 ( 667 ) Allowance for credit losses on loans $ 13,639 $ 14,175 $ ( 536 ) Liabilities: Allowance for credit losses on OBS credit exposures $ 1,887 $ 1,475 $ 412 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 adopted the ASU on January 1, 2023 and did not elect the fair value option on any financial instruments. ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures Description ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification ("ASC") 310-40, "Receivables - Troubled Debt Restructurings by Creditors" for entities that have adopted the current expected credit loss model introduced by ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." ASU 2022-02 also required that public business entities disclosure current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, "Financial Instruments - Credit Losses - Measured at Amortized Cost." Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation adopted the standard on January 1, 2023 and it decreased the balance of loans individually evaluated by $ 3.0 million, and decreased the balance of performing TDR loans by the same amount. Recently issued but not yet effective accounting standards ASU 2023-01, Leases (Topic 842): Common Control Arrangements Description This ASU requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with a related party (on the basis of legally enforceable terms and conditions). Effective Date January 1, 2024 Effect on the Consolidated Financial Statements The ASU is not expected to have an impact on the Corporation's financial statements. ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Description This ASU permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Effective Date January 1, 2024 Effect on the Consolidated Financial Statements The ASU is not expected to have an impact on the Corporation's financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2023 | |
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: June 30, December 31, (Dollars in thousands) 2023 2022 Net unrealized losses on debt securities $ ( 57,286 ) $ ( 61,497 ) Tax effect 12,029 12,914 Net of tax amount $ ( 45,257 ) $ ( 48,583 ) Accumulated pension adjustment $ ( 3,423 ) $ ( 3,423 ) Tax effect 719 719 Net of tax amount $ ( 2,704 ) $ ( 2,704 ) Total accumulated other comprehensive (loss) $ ( 47,961 ) $ ( 51,287 ) |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Investments | Note 4. Investments Available for Sale (AFS) Securities The amortized cost and estimated fair value of AFS securities as of June 30, 2023 and December 31, 2022 are as follows : (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair June 30, 2023 cost gains losses Value U.S. Treasury $ 83,849 $ — $ ( 11,157 ) $ 72,692 Municipal 161,978 — ( 25,622 ) 136,356 Corporate 26,326 — ( 3,496 ) 22,830 Agency mortgage & asset-backed 152,013 36 ( 12,164 ) 139,885 Non-Agency mortgage & asset-backed 72,591 7 ( 4,890 ) 67,708 Total $ 496,757 $ 43 $ ( 57,329 ) $ 439,471 (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair December 31, 2022 cost gains losses value U.S. Treasury $ 101,980 $ — $ ( 11,723 ) $ 90,257 Municipal 186,007 14 ( 30,566 ) 155,455 Corporate 26,316 — ( 2,077 ) 24,239 Agency mortgage & asset-backed 163,274 19 ( 12,358 ) 150,935 Non-Agency mortgage & asset-backed 70,756 1 ( 4,807 ) 65,950 Total $ 548,333 $ 34 $ ( 61,531 ) $ 486,836 At June 30 , 2023 and December 31, 2022, the fair value of debt securities pledged to secure public funds and trust deposits totaled $ 151.7 million and $ 208.9 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 June 30, 2023, 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 $ — $ — Due after one year through five years 31,288 27,477 Due after five years through ten years 123,670 106,461 Due after ten years 117,195 97,940 272,153 231,878 Mortgage & asset-backed 224,604 207,593 $ 496,757 $ 439,471 The composition of the net realized gains (losses) on debt securities for the three and six months ended are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2023 2022 2023 2022 Proceeds $ 7,262 $ 82 $ 40,117 $ 82 Gross gains realized $ — $ — $ 12 $ — Gross losses realized ( 517 ) ( 19 ) ( 1,131 ) ( 19 ) Net (losses) gains realized $ ( 517 ) $ ( 19 ) $ ( 1,119 ) $ ( 19 ) Tax benefit (provision) on net (losses) gains realized $ 109 $ 4 $ 235 $ 4 Impairment : The debt securities portfolio contained 570 securities with $ 434.0 million of temporarily impaired fair value and $ 57.3 million in unrealized losses at June 30, 2023. The total unrealized loss position has decreased $ 4.2 million since year-end 2022 due primarily to the Bank realizing $ 1.1 million of losses due to restructuring of the portfolio and a decrease in long-term market interest rates. AFS securities in an unrealized loss position are evaluated for credit impairment at least quarterly. For these securities, the Bank considers: (1) the extent to which the fair value is less than amortized cost; (2) adverse conditions specifically related to the security, industry or geographic area; (3) the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future; (4) failure of the issuer of the security to make scheduled interest or principal payments; and (5) any changes to the rating of the security by a rating agency. 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 Bank does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost. The impairment identified on debt securities and subject to evaluation at June 30, 2023, was determined not to be attributable to credit related factors; therefore, the Bank does not have an allowance for credit loss for these investments. During 2023, approximately $ 40 million of securities was sold as part of a portfolio restructuring to take advantage of higher market interest rates. The loss on these sales was $ 1.1 million. The following table reflects 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 June 30, 2023 and December 31, 2022: June 30, 2023 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 $ — $ — — $ 72,692 $ ( 11,157 ) 28 $ 72,692 $ ( 11,157 ) 28 Municipal 842 ( 161 ) 2 135,515 ( 25,461 ) 166 136,357 ( 25,622 ) 168 Corporate 4,279 ( 521 ) 11 18,551 ( 2,975 ) 40 22,830 ( 3,496 ) 51 Agency mortgage & asset-backed 14,773 ( 474 ) 48 121,344 ( 11,690 ) 205 136,117 ( 12,164 ) 253 Non-Agency mortgage & asset-backed 26,547 ( 1,307 ) 27 39,473 ( 3,583 ) 43 66,020 ( 4,890 ) 70 Total temporarily impaired $ 46,441 $ ( 2,463 ) 88 $ 387,575 $ ( 54,866 ) 482 $ 434,016 $ ( 57,329 ) 570 December 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 $ 17,598 $ ( 183 ) 3 $ 72,659 $ ( 11,540 ) 28 $ 90,257 $ ( 11,723 ) 31 Municipal 73,644 ( 9,586 ) 90 80,503 ( 20,981 ) 104 154,147 ( 30,566 ) 194 Corporate 12,221 ( 851 ) 25 10,368 ( 1,226 ) 21 22,589 ( 2,077 ) 46 Agency mortgage & asset-backed 55,393 ( 2,747 ) 139 88,953 ( 9,611 ) 113 144,346 ( 12,358 ) 252 Non-Agency mortgage & asset-backed 49,301 ( 3,092 ) 52 14,207 ( 1,715 ) 16 63,508 ( 4,807 ) 68 Total temporarily impaired $ 208,157 $ ( 16,459 ) 309 $ 266,690 $ ( 45,072 ) 282 $ 474,847 $ ( 61,531 ) 591 Equity Securities at Fair Value The Corporation owns one equity investment with a readily determinable fair value. At June 30, 2023 and December 31, 2022, this investment was reported at fair value of $ 380 thousand and $ 411 thousand, respectively, with changes in value reported through income. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2023 | |
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 mortgage loans include long-term loans to individuals and businesses secured by mortgages on the borrower’s real property. 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 loans are made to businesses of various sizes for a variety of purposes including construction, property, plant and equipment, and working capital. Commercial loans also include 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, home equity 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. The Bank usually holds a first lien position on these properties but may hold a second lien position in some home equity loans or lines of credit. 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 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 motel, 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 loans ongoing monitoring of cash flow and other financial performance indicators occur 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 1.00 % 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: June 30, December 31, (Dollars in thousands) 2023 2022 Residential Real Estate 1-4 Family Consumer first liens $ 106,546 $ 82,795 Commercial first lien 63,218 61,702 Total first liens 169,764 144,497 Consumer junior liens and lines of credit 68,463 69,561 Commercial junior liens and lines of credit 3,888 4,127 Total junior liens and lines of credit 72,351 73,688 Total residential real estate 1-4 family 242,115 218,185 Residential real estate - construction Consumer 7,868 13,908 Commercial 10,165 10,485 Total residential real estate construction 18,033 24,393 Commercial real estate 638,132 566,662 Commercial 240,555 235,602 Total commercial 878,687 802,264 Consumer 6,327 6,199 1,145,162 1,051,041 Less: Allowance for credit losses ( 14,615 ) ( 14,175 ) Net Loans $ 1,130,547 $ 1,036,866 Included in the loan balances are the following: Net unamortized deferred loan costs $ 1,751 $ 2,027 Loans pledged as collateral for borrowings and commitments from: FHLB $ 609,064 $ 585,601 Federal Reserve Bank 88,182 92,922 $ 697,246 $ 678,523 Paycheck Protection Program (included in commercial loans) $ 78 $ 179 |
Loan Quality And Allowance For
Loan Quality And Allowance For Credit Losses | 6 Months Ended |
Jun. 30, 2023 | |
Loan Quality And Allowance For Credit Losses [Abstract] | |
Loan Quality and Allowance for Credit Losses | Note 6. Loan Quality and Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the collectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience, derived from peer group data, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in: lending policy, procedures and practice; economic conditions; nature and volume of loans; experience of lending team; volume of past due loans; quality of the loan review system; concentrations of credit; and other external factors. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Bank measures the ALC using the following inputs to calculate the quantitative component for the pool: Segregating loans into homogeneous pools by the FRB Call Code which is primarily a collateral-based and secondarily a purpose-based segmentation. The average remaining life of each pool is calculated using the weighted average remaining maturity method (WARM). The WARM method produces an estimated remaining balance by pool, by year, until maturity. Using third party data, the Bank determines a reasonable and supportable economic forecast that it believes is likely to exist for the next 4 quarters. A historical credit loss rate is calculated for each pool, using the average historical loss, by FRB Call Code, for a peer group of Pennsylvania community banks over the last eight quarters. The historical loss rate is calculated over a historical period the Bank believes best represents a period that will be similar to the next 4 quarters. The historical peer credit loss rate is applied to each WARM bucket though the initial 4 quarter forecast period. At the end of the forecast period, the credit loss rate applied to each WARM bucket reverts to the peer group historical loss rate for the respective pool. Collectively these estimated losses represent the quantitative component of the pooled reserve. This risk factor for each portfolio segment are presented in Note 5 of the accompanying financial statements. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the pool evaluation. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the sale of the collateral, the expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for any discounts and selling costs as appropriate. Management monitors loan performance on a monthly basis and performs a quarterly evaluation of the adequacy of the Allowance for Credit Loss for loans (ACL). The Bank begins enhanced monitoring of all loans rated 6–OAEM or worse and obtains a new appraisal or asset valuation for any loans placed on nonaccrual and rated 7 - Substandard or worse. Management, at its discretion, may determine that additional adjustments to the appraisal or valuation are required. Valuation adjustments will be made as necessary based on factors, including, but not limited to: the economy, deferred maintenance, industry, type of property/equipment, age of the appraisal, etc. and the knowledge Management has about a particular situation. In addition, the cost to sell or liquidate the collateral is also estimated and deducted from the valuation in order to determine the net realizable value to the Bank. When determining the ACL, certain factors involved in the evaluation are inherently subjective and require material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows. Management monitors the adequacy of the ACL on an ongoing basis and reports its adequacy quarterly to the Board Enterprise Risk Management Committee of the Board of Directors. Management believes the ACL at June 30, 2023 is adequate. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a modification will be executed with an individual borrower or the extension or renewal options are included int eh original or modified contract at the reporting date and are not unconditionally cancellable by the Bank. The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, and current economic trends, among other factors. Management utilizes a risk rating scale ranging from 1-Prime to 9-Loss to evaluate loan quality. This risk rating scale is used primarily for commercial purpose loans. Consumer purpose loans are identified as either performing or nonperforming based on the payment status of the loans. Nonperforming consumer loans are loans that are nonaccrual or 90 days or more past due and still accruing. The Bank uses the following definitions for risk ratings: Pass (1-5 ): are considered pass credits with lower or average risk and are not otherwise classified. OAEM (6) : Loans classified as OAEM have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard (7) : Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful (8) : Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following table presents loans by year of origination and internally assigned risk ratings: (Dollars in thousands, except per share) Revolving Revolving Term Loans Loans Loans Amortized Cost Basis by Origination Year Amortized Converted As of June 30 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate 1-4 family: Commercial: Risk rating: Pass (1-5) $ 5,901 $ 9,647 $ 12,319 $ 9,919 $ 2,615 $ 24,539 $ 2,064 $ — $ 67,004 OAEM (6) — — — — — — — — — Substandard (7) — — — — — — 102 — 102 Doubtful (8) — — — — — — — — — Total Commercial 5,901 9,647 12,319 9,919 2,615 24,539 2,166 — 67,106 Consumer: Performing 18,695 29,125 16,198 11,070 5,772 30,601 46,357 17,097 174,915 Nonperforming — — — — — 94 — — 94 Total Consumer 18,695 29,125 16,198 11,070 5,772 30,695 46,357 17,097 175,009 Total $ 24,596 $ 38,772 $ 28,517 $ 20,989 $ 8,387 $ 55,234 $ 48,523 $ 17,097 $ 242,115 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate construction: Commercial: Risk rating: Pass (1-5) $ 2,450 $ 3,465 $ 984 $ 236 $ 530 $ 1,590 $ — $ — $ 9,255 OAEM (6) — — 910 — — — — — 910 Substandard (7) — — — — — — — — — Doubtful (8) — — — — — — — — — Total Commercial 2,450 3,465 1,894 236 530 1,590 — — 10,165 Consumer: Performing 2,227 5,641 — — — — — — 7,868 Nonperforming — — — — — — — — — Total Consumer 2,227 5,641 — — — — — — 7,868 Total $ 4,677 $ 9,106 $ 1,894 $ 236 $ 530 $ 1,590 $ — $ — $ 18,033 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk rating: Pass (1-5) $ 90,721 $ 118,926 $ 99,902 $ 52,720 $ 41,114 $ 224,465 $ 6,378 $ — $ 634,226 OAEM (6) — — — — — 1,085 — — 1,085 Substandard (7) — — — — — 2,771 50 — 2,821 Doubtful (8) — — — — — — — — — Total $ 90,721 $ 118,926 $ 99,902 $ 52,720 $ 41,114 $ 228,321 $ 6,428 $ — $ 638,132 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial: Risk rating: Pass (1-5) $ 21,936 $ 36,927 $ 45,142 $ 25,698 $ 4,642 $ 68,894 $ 32,299 $ — $ 235,538 OAEM (6) — — — — — — — — — Substandard (7) — 359 — — — 3,701 957 — 5,017 Doubtful (8) — — — — — — — — — Total $ 21,936 $ 37,286 $ 45,142 $ 25,698 $ 4,642 $ 72,595 $ 33,256 $ — $ 240,555 Current period gross charge-offs $ ( 6 ) $ — $ ( 81 ) $ — $ — $ — $ — $ — $ ( 87 ) Consumer: Performing 1,069 848 2,140 224 139 12 1,895 — 6,327 Nonperforming — — — — — — — — — Total $ 1,069 $ 848 $ 2,140 $ 224 $ 139 $ 12 $ 1,895 $ — $ 6,327 Current period gross charge-offs $ ( 22 ) $ ( 16 ) $ ( 6 ) $ — $ — $ — $ ( 32 ) $ — $ ( 76 ) The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days and still accruing as of June 30, 2023: (Dollars in thousands) Nonaccrual and Loans Past Due Over 90 Days+ Loans Past Due Nonaccrual Nonaccrual Over 90 Days Without ACL With ACL Still Accruing June 30, 2023 Residential Real Estate 1-4 Family First liens $ 102 $ — $ 94 Junior liens and lines of credit — — — Total 102 — 94 Residential real estate - construction — — — Commercial real estate — — — Commercial — — — Consumer — — — Total $ 102 $ — $ 94 The following table reports the risk rating for those loans in the portfolio that were assigned an individual risk rating at December 31, 2022: Pass OAEM Substandard Doubtful (Dollars in thousands) (1-5) (6) (7) (8) Total December 31, 2022 Residential Real Estate 1-4 Family First liens $ 144,377 $ — $ 120 $ — $ 144,497 Junior liens and lines of credit 73,688 — — — 73,688 Total 218,065 — 120 — 218,185 Residential real estate - construction 24,393 — — — 24,393 Commercial real estate 562,665 1,095 2,902 — 566,662 Commercial 228,085 2,751 4,766 — 235,602 Consumer 6,199 — — — 6,199 Total $ 1,039,407 $ 3,846 $ 7,788 $ — $ 1,051,041 At June 30, 2023 and December 31, 2022, the Bank had $ 94 thousand of residential properties in the process of foreclosure. The following table presents the aging of payments of the loan portfolio : (Dollars in thousands) Loans Past Due Total Total 30-59 Days 60-89 Days 90 Days+ Past Due Current Loans June 30, 2023 Residential Real Estate 1-4 Family First liens $ 72 $ 364 $ 196 $ 632 $ 169,132 $ 169,764 Junior liens and lines of credit 202 — — 202 72,149 72,351 Total 274 364 196 834 241,281 242,115 Residential real estate - construction — — — — 18,033 18,033 Commercial real estate 235 — — 235 637,897 638,132 Commercial 612 — — 612 239,943 240,555 Consumer 30 6 — 36 6,291 6,327 Total $ 1,151 $ 370 $ 196 $ 1,717 $ 1,143,445 $ 1,145,162 Total Past Due & Total December 31, 2022 30-59 Days 60-89 Days 90 Days+ Nonaccrual Nonaccrual Current Loans Residential Real Estate 1-4 Family First liens $ 340 $ 177 $ — $ 120 $ 637 $ 143,860 $ 144,497 Junior liens and lines of credit 490 — — — 490 73,198 73,688 Total 830 177 — 120 1,127 217,058 218,185 Residential real estate - construction — — — — — 24,393 24,393 Commercial real estate 649 — — — 649 566,013 566,662 Commercial 681 50 — — 731 234,871 235,602 Consumer 29 5 13 — 47 6,152 6,199 Total $ 2,189 $ 232 $ 13 $ 120 $ 2,421 $ 1,048,487 $ 1,051,041 The following table presents, by class, the activity in the Allowance for Credit Losses (ACL) 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 ACL at March 31, 2023 $ 1,624 $ 690 $ 190 $ 8,236 $ 3,275 $ 94 $ — $ 14,109 Charge-offs — — — — ( 1 ) ( 42 ) — ( 43 ) Recoveries — — 3 — 12 10 — 25 Provision 96 ( 7 ) ( 16 ) 847 ( 432 ) 36 — 524 ACL at June 30, 2023 $ 1,720 $ 683 $ 177 $ 9,083 $ 2,854 $ 98 $ — $ 14,615 ALL at December 31, 2022 $ 459 $ 234 $ 343 $ 7,493 $ 4,846 $ 133 $ 667 $ 14,175 Impact of adopting ASU 2016-13 1,096 493 ( 95 ) 584 ( 1,907 ) ( 40 ) ( 667 ) ( 536 ) Charge-offs — — — — ( 87 ) ( 76 ) — ( 163 ) Recoveries 2 — 42 — 79 25 — 148 Provision 163 ( 44 ) ( 113 ) 1,006 ( 77 ) 56 — 991 ACL at June 30, 2023 $ 1,720 $ 683 $ 177 $ 9,083 $ 2,854 $ 98 $ — $ 14,615 ALL at March 31, 2022 $ 480 $ 253 $ 329 $ 7,962 $ 5,183 $ 125 $ 718 $ 15,050 Charge-offs — — — — ( 62 ) ( 22 ) — ( 84 ) Recoveries 32 — — — 7 10 — 49 Provision ( 47 ) ( 8 ) ( 40 ) 134 ( 52 ) 6 7 — ALL at June 30, 2022 $ 465 $ 245 $ 289 $ 8,096 $ 5,076 $ 119 $ 725 $ 15,015 ALL at December 31, 2021 $ 475 $ 252 $ 325 $ 8,168 $ 5,127 $ 130 $ 589 $ 15,066 Charge-offs ( 20 ) — — — ( 63 ) ( 46 ) — ( 129 ) Recoveries 47 1 — — 12 18 — 78 Provision ( 37 ) ( 8 ) ( 36 ) ( 72 ) — 17 136 — ALL at June 30, 2022 $ 465 $ 245 $ 289 $ 8,096 $ 5,076 $ 119 $ 725 $ 15,015 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 December 31, 2022: Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total December 31, 2022 Loans evaluated for ALL: Individually $ 619 $ — $ — $ 2,331 $ — $ — $ — $ 2,950 Collectively 143,878 73,688 24,393 564,331 235,602 6,199 — 1,048,091 Total $ 144,497 $ 73,688 $ 24,393 $ 566,662 $ 235,602 $ 6,199 $ — $ 1,051,041 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 459 234 343 7,493 4,846 133 667 14,175 ALL at December 31, 2022 $ 459 $ 234 $ 343 $ 7,493 $ 4,846 $ 133 $ 667 $ 14,175 At June 30, 2023, there were no loans evaluated individually for the ACL. On January 1, 2023, The Bank adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. As of June 30, 2023, the Bank did not have any loans made to borrowers experiencing financial difficulties and there were no loans modifications made to borrowers experiencing financial difficulties during the first half of 2023. Prior to the adoption of ASU 2022-02, certain modified loans were reported as TDRs and impaired. The following table presents impaired loans as of December 31, 2022. Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related December 31, 2022 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 619 $ 619 $ — $ — $ — Junior liens and lines of credit — — — — — Total 619 619 — — — Residential real estate - construction — — — — — Commercial real estate 2,331 2,331 — — — Commercial — — — — — Total $ 2,950 $ 2,950 $ — $ — $ — The following table presents TDR loans as of December 31, 2022: 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 December 31, 2022 Residential real estate - construction — $ — $ — $ — — $ — Residential real estate 5 619 619 — — — Commercial real estate - owner occupied 3 783 783 — — — Commercial real estate - farm land 3 1,466 1,466 — — — Commercial real estate - construction and land development — — — — — — Commercial real estate - other 1 82 82 — — — Total 12 $ 2,950 $ 2,950 $ — — $ — *The performing status is determined by the loans compliance with the modified terms. Nonperforming is considered 90 days or more past due. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
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 may include 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 June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Operating lease cost $ 212 $ 200 $ 429 $ 373 Short-term lease cost 4 126 8 252 Variable lease cost 37 28 74 53 Total lease cost $ 253 $ 354 $ 511 $ 678 Supplemental Lease Information: Six Months Ended June 30, (Dollars in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 413 $ 359 Weighted-average remaining lease term (years) 11.9 10.2 Weighted-average discount rate 3.37 % 3.29 % Lease Obligations: Future undiscounted lease payments for operating leases with initial terms of one year or more as of June 30, 2023 are as follows: (Dollars in thousands) 2023 $ 374 2024 717 2025 666 2026 564 2027 421 2028 and beyond 3,598 Undiscounted cash flow 6,340 Imputed Interest ( 1,236 ) Total lease liability $ 5,104 A lease termination expense of $ 525 thousand was recorded in the second quarter of 2023. The lease termination was a long-term real estate lease held for a new community banking office that will not be constructed. Due to the lease termination, the right of use asset decreased $ 507 thousand and the lease liability decreased $ 537 thousand. |
Other Real Estate Owned
Other Real Estate Owned | 6 Months Ended |
Jun. 30, 2023 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | Note 8. Other Real Estate Owned The Bank had no other real estate owned at June 30, 2023 and December 31, 2022. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2023 | |
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) June 30, 2023 December 31, 2022 Notional amount Balance Sheet Location Fair Value Notional amount Balance Sheet Location Fair Value Derivatives not designated as hedging instruments Other Contracts $ 6,367 Other Liabilities $ 3 $ 6,465 Other Liabilities $ 3 Total derivatives not designated as hedging instruments $ 3 $ 3 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 Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Other Contracts Other income $ 2 $ 5 $ - $ 13 As of June 30, 2023, 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 $ 3 thousand. |
Pension
Pension | 6 Months Ended |
Jun. 30, 2023 | |
Pension [Abstract] | |
Pension | Note 10. Pension The components of pension expense for the periods presented are as follows: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2023 2022 2023 2022 Components of net periodic cost: Service cost $ 53 $ 85 $ 108 $ 171 Interest cost 201 168 403 336 Expected return on plan assets ( 230 ) ( 248 ) ( 462 ) ( 497 ) Recognized net actuarial loss — 149 — 299 Total pension expense $ 24 $ 154 $ 49 $ 309 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 | 6 Months Ended |
Jun. 30, 2023 | |
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. Collateral Dependent Loans : The fair value of collateral dependent loans with specific allocations of the allowance for credit 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. Collateral dependent loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. No partial charge-offs on these loans was taken in the first quarter of 2023. Collateral dependent 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 June 30, 2023 and December 31, 2022 are as follows: (Dollars in thousands) Fair Value at June 30, 2023 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 380 $ — $ — $ 380 Available for sale: U.S. Treasury 72,692 — — 72,692 Municipal — 136,356 — 136,356 Corporate — 22,830 — 22,830 Agency mortgage & asset-backed — 139,885 — 139,885 Non-Agency mortgage & asset-backed — 67,708 — 67,708 Total assets $ 73,072 $ 366,779 $ — $ 439,851 (Dollars in thousands) Fair Value at December 31, 2022 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 411 $ — $ — $ 411 Available for sale: U.S. Treasury 90,257 — — 90,257 Municipal — 155,455 — 155,455 Corporate — 24,239 — 24,239 Agency mortgage and asset-backed — 150,935 — 150,935 Non-Agency mortgage and asset-backed — 65,950 — 65,950 Total assets $ 90,668 $ 396,579 $ — $ 487,247 The fair value of derivative liabilities measured at fair value at June 30, 2023 and December 31, 2022 was $ 3 thousand during each period and was considered immaterial. Nonrecurring Fair Value Measurements The Corporation did no t record any assets or liabilities at fair value for which measurement of the fair value was made on a nonrecurring basis at June 30, 2023. 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 June 30, 2023. The carrying amounts and estimated fair value of financial instruments not carried at fair value are as follows: June 30, 2023 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 64,832 $ 64,832 $ 64,832 $ — $ — Long-term interest-bearing deposits in other banks 8,978 8,978 8,978 — — Loans held for sale 126 126 — 126 — Net loans 1,130,547 1,081,607 — — 1,081,607 Accrued interest receivable 6,147 6,147 — — 6,147 Financial liabilities: Deposits $ 1,513,135 $ 1,511,696 $ — $ 1,511,696 $ — Short-term borrowings 70,000 70,000 — 70,000 — Subordinate notes 19,643 18,132 — 18,132 — Accrued interest payable 1,441 1,441 — 1,441 — December 31, 2022 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 64,899 $ 64,899 $ 64,899 $ — $ — Long-term interest-bearing deposits in other banks 13,975 13,975 13,975 — — Loans held for sale 283 287 — 287 — Net loans 1,036,866 986,141 — — 986,141 Accrued interest receivable 6,354 6,354 — — 6,354 Financial liabilities: Deposits $ 1,551,448 $ 1,550,030 $ — $ 1,550,030 $ — Subordinate notes 19,623 17,876 — 17,876 — Accrued interest payable 192 192 — 192 — |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Deposits | Note 12. Deposits June 30, December 31, (Dollars in thousands) 2023 2022 Noninterest-bearing checking $ 287,385 $ 299,231 Interest-bearing checking 445,003 496,533 Money management 573,582 569,585 Savings 117,423 128,709 Total interest-bearing checking and savings 1,136,008 1,194,827 Time deposits 89,742 57,390 Total deposits $ 1,513,135 $ 1,551,448 Overdrawn deposit accounts reclassified as loans $ 158 $ 103 Time deposits greater than $250,000 at June 30, 2023 and December 31, 2022 were $ 16.3 million and $ 8.8 million, respectively. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2023 | |
Borrowings [Abstract] | |
Borrowings | Note 13. Borrowings At June 30, 2023, the Bank had $ 70.0 million borrowed from the Federal Reserve’s Bank Term Funding Program (BTFP) to temporarily support its liquidity position. This borrowing is comprised of $ 50.0 million with a rate of 4.38 % due March 22, 2024, and $ 20.0 million with a rate of 4.71 % due May 10, 2024. At June 30, 2023, the fair value of debt securities pledged for the BTFP was $ 69.7 million. At June 30, 2023, 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 $ 357 thousand at June 30, 2023, which is being amortized on a pro-rata basis, based on the maturity date 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 | 6 Months Ended |
Jun. 30, 2023 | |
Capital Ratios [Abstract] | |
Capital Ratios | Note 14. 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 2.5 % 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 June 30, 2023 was 7.50 % compared to the regulatory buffer of 2.5 %. 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 June 30, 2023, 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 June 30, 2023 and December 31, 2022 for the Corporation and the Bank: Regulatory Ratios Adequately Well June 30, December 31, Capitalized Capitalized (Dollars in thousands) 2023 2022 Minimum Minimum Common Equity Tier 1 Risk-based Capital Ratio (1) Franklin Financial Services Corporation 13.88 % 14.22 % N/A N/A Farmers & Merchants Trust Company 14.25 % 14.63 % 4.50 % 6.50 % Tier 1 Risk-based Capital Ratio (2) Franklin Financial Services Corporation 13.88 % 14.22 % N/A N/A Farmers & Merchants Trust Company 14.25 % 14.63 % 6.00 % 8.00 % Total Risk-based Capital Ratio (3) Franklin Financial Services Corporation 16.84 % 17.21 % N/A N/A Farmers & Merchants Trust Company 15.50 % 15.88 % 8.00 % 10.00 % Tier 1 Leverage Ratio (4) Franklin Financial Services Corporation 9.39 % 8.95 % N/A N/A Farmers & Merchants Trust Company 9.64 % 9.21 % 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 | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 15. 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 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. Commissions from the sale of investment and insurance products are recognized upon the completion of the transaction. The following table presents Investment and Trust Service Fees for the three and six months ended June 30, 2023 and 2022: For the Three Months Ended For the Six Months Ended (Dollars in thousands) June 30, June 30, Investment and Trust Service Fees 2023 2022 2023 2022 Asset Management Fees $ 1,844 $ 1,744 $ 3,481 $ 3,368 Estate Management Fees 61 129 152 302 Commissions 54 45 160 76 Total $ 1,959 $ 1,918 $ 3,793 $ 3,746 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 | 6 Months Ended |
Jun. 30, 2023 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 1 Note 16. 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: June 30, December 31, (Dollars in thousands) 2023 2022 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 356,488 $ 275,867 Consumer commitments to extend credit (secured) 95,459 93,124 Consumer commitments to extend credit (unsecured) 4,907 5,247 $ 456,854 $ 374,238 Standby letters of credit $ 28,264 $ 30,734 ACL - Unfunded Commitments* $ 1,957 $ 1,475 *Reported in Other Liabilities on the Consolidated Balance Sheet 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. On January 1, 2023, the Corporation adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, referred to as the current expected credit loss (CECL) methodology. Upon adoption, $ 412 thousand was added to the allowance for credit losses (ACL) – unfunded commitments. For the second quarter of 2023, the provision for credit losses-unfunded commitments was $ 8 thousand compared to $ 0 for the second quarter of 2022. Year-to-date 2023, the provision for credit losses on unfunded commitments was $ 70 thousand compared to $ 0 for the same period in 2022. 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 June 30, 2023, 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 | 6 Months Ended |
Jun. 30, 2023 | |
Reclassification [Abstract] | |
Reclassification | Note 17. 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) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023, 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 2022 Annual Report on Form 10-K. The consolidated results of operations for the three- and six-month periods ended June 30, 2023 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, 2022 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 For the Six Months Ended June 30, June 30, (Dollars and shares in thousands, except per share data) 2023 2022 2023 2022 Weighted average shares outstanding (basic) 4,380 4,450 4,388 4,448 Impact of common stock equivalents 8 16 13 21 Weighted average shares outstanding (diluted) 4,388 4,466 4,401 4,469 Anti-dilutive options excluded from calculation 74 30 25 30 Net income $ 2,976 $ 3,578 $ 6,268 $ 6,590 Basic earnings per share $ 0.68 $ 0.80 $ 1.43 $ 1.48 Diluted earnings per share $ 0.68 $ 0.80 $ 1.42 $ 1.47 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policy) | 6 Months Ended |
Jun. 30, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements, Policy | Recently adopted 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) 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. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities. Management does not intend to sell or believes that it is more likely than not they will be required to sell. The Corporation adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet (OBS) credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation adopted the ASU as of January 1, 2023 and recorded a decrease to the allowance for credit loss (ACL) for loans of $ 536 thousand, an increase of $ 412 thousand to the ACL for unfunded commitments, an increase of $ 98 thousand to retained earnings, and a deferred tax liability of $ 26 thousand. The following table illustrates the impact of ASC 326: As Reported Pre-ASC Impact of Under 326 ASC 326 ASC 326 Adoption Adoption (Dollars in thousands) Assets: Loans First liens $ 1,555 $ 459 $ 1,096 Junior liens & lines of credit 727 234 493 Construction 248 343 ( 95 ) Commercial real estate 8,077 7,493 584 Commercial 2,939 4,846 ( 1,907 ) Consumer 93 133 ( 40 ) Unallocated — 667 ( 667 ) Allowance for credit losses on loans $ 13,639 $ 14,175 $ ( 536 ) Liabilities: Allowance for credit losses on OBS credit exposures $ 1,887 $ 1,475 $ 412 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 adopted the ASU on January 1, 2023 and did not elect the fair value option on any financial instruments. ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures Description ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification ("ASC") 310-40, "Receivables - Troubled Debt Restructurings by Creditors" for entities that have adopted the current expected credit loss model introduced by ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." ASU 2022-02 also required that public business entities disclosure current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, "Financial Instruments - Credit Losses - Measured at Amortized Cost." Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation adopted the standard on January 1, 2023 and it decreased the balance of loans individually evaluated by $ 3.0 million, and decreased the balance of performing TDR loans by the same amount. Recently issued but not yet effective accounting standards ASU 2023-01, Leases (Topic 842): Common Control Arrangements Description This ASU requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with a related party (on the basis of legally enforceable terms and conditions). Effective Date January 1, 2024 Effect on the Consolidated Financial Statements The ASU is not expected to have an impact on the Corporation's financial statements. ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Description This ASU permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Effective Date January 1, 2024 Effect on the Consolidated Financial Statements The ASU is not expected to have an impact on the Corporation's financial statements. |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Basis Of Presentation [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars and shares in thousands, except per share data) 2023 2022 2023 2022 Weighted average shares outstanding (basic) 4,380 4,450 4,388 4,448 Impact of common stock equivalents 8 16 13 21 Weighted average shares outstanding (diluted) 4,388 4,466 4,401 4,469 Anti-dilutive options excluded from calculation 74 30 25 30 Net income $ 2,976 $ 3,578 $ 6,268 $ 6,590 Basic earnings per share $ 0.68 $ 0.80 $ 1.43 $ 1.48 Diluted earnings per share $ 0.68 $ 0.80 $ 1.42 $ 1.47 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
Schedule of Impact of ASC 326 | Recently adopted 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) 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. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities. Management does not intend to sell or believes that it is more likely than not they will be required to sell. The Corporation adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet (OBS) credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation adopted the ASU as of January 1, 2023 and recorded a decrease to the allowance for credit loss (ACL) for loans of $ 536 thousand, an increase of $ 412 thousand to the ACL for unfunded commitments, an increase of $ 98 thousand to retained earnings, and a deferred tax liability of $ 26 thousand. The following table illustrates the impact of ASC 326: As Reported Pre-ASC Impact of Under 326 ASC 326 ASC 326 Adoption Adoption (Dollars in thousands) Assets: Loans First liens $ 1,555 $ 459 $ 1,096 Junior liens & lines of credit 727 234 493 Construction 248 343 ( 95 ) Commercial real estate 8,077 7,493 584 Commercial 2,939 4,846 ( 1,907 ) Consumer 93 133 ( 40 ) Unallocated — 667 ( 667 ) Allowance for credit losses on loans $ 13,639 $ 14,175 $ ( 536 ) Liabilities: Allowance for credit losses on OBS credit exposures $ 1,887 $ 1,475 $ 412 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 adopted the ASU on January 1, 2023 and did not elect the fair value option on any financial instruments. ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures Description ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification ("ASC") 310-40, "Receivables - Troubled Debt Restructurings by Creditors" for entities that have adopted the current expected credit loss model introduced by ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." ASU 2022-02 also required that public business entities disclosure current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, "Financial Instruments - Credit Losses - Measured at Amortized Cost." Effective Date January 1, 2023 Effect on the Consolidated Financial Statements The Corporation adopted the standard on January 1, 2023 and it decreased the balance of loans individually evaluated by $ 3.0 million, and decreased the balance of performing TDR loans by the same amount. Recently issued but not yet effective accounting standards ASU 2023-01, Leases (Topic 842): Common Control Arrangements Description This ASU requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with a related party (on the basis of legally enforceable terms and conditions). Effective Date January 1, 2024 Effect on the Consolidated Financial Statements The ASU is not expected to have an impact on the Corporation's financial statements. ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Description This ASU permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Effective Date January 1, 2024 Effect on the Consolidated Financial Statements The ASU is not expected to have an impact on the Corporation's financial statements. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | June 30, December 31, (Dollars in thousands) 2023 2022 Net unrealized losses on debt securities $ ( 57,286 ) $ ( 61,497 ) Tax effect 12,029 12,914 Net of tax amount $ ( 45,257 ) $ ( 48,583 ) Accumulated pension adjustment $ ( 3,423 ) $ ( 3,423 ) Tax effect 719 719 Net of tax amount $ ( 2,704 ) $ ( 2,704 ) Total accumulated other comprehensive (loss) $ ( 47,961 ) $ ( 51,287 ) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Unrealized Gain (Loss) On Investments | (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair June 30, 2023 cost gains losses Value U.S. Treasury $ 83,849 $ — $ ( 11,157 ) $ 72,692 Municipal 161,978 — ( 25,622 ) 136,356 Corporate 26,326 — ( 3,496 ) 22,830 Agency mortgage & asset-backed 152,013 36 ( 12,164 ) 139,885 Non-Agency mortgage & asset-backed 72,591 7 ( 4,890 ) 67,708 Total $ 496,757 $ 43 $ ( 57,329 ) $ 439,471 (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair December 31, 2022 cost gains losses value U.S. Treasury $ 101,980 $ — $ ( 11,723 ) $ 90,257 Municipal 186,007 14 ( 30,566 ) 155,455 Corporate 26,316 — ( 2,077 ) 24,239 Agency mortgage & asset-backed 163,274 19 ( 12,358 ) 150,935 Non-Agency mortgage & asset-backed 70,756 1 ( 4,807 ) 65,950 Total $ 548,333 $ 34 $ ( 61,531 ) $ 486,836 |
Amortized Cost And Fair Value Of Debt Securities, By Contractual Maturity | (Dollars in thousands) Amortized cost Fair value Due in one year or less $ — $ — Due after one year through five years 31,288 27,477 Due after five years through ten years 123,670 106,461 Due after ten years 117,195 97,940 272,153 231,878 Mortgage & asset-backed 224,604 207,593 $ 496,757 $ 439,471 |
Composition Of Net Realized Securities Gains (Losses) | For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2023 2022 2023 2022 Proceeds $ 7,262 $ 82 $ 40,117 $ 82 Gross gains realized $ — $ — $ 12 $ — Gross losses realized ( 517 ) ( 19 ) ( 1,131 ) ( 19 ) Net (losses) gains realized $ ( 517 ) $ ( 19 ) $ ( 1,119 ) $ ( 19 ) Tax benefit (provision) on net (losses) gains realized $ 109 $ 4 $ 235 $ 4 |
Schedule Of Unrealized Loss On Investments | June 30, 2023 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 $ — $ — — $ 72,692 $ ( 11,157 ) 28 $ 72,692 $ ( 11,157 ) 28 Municipal 842 ( 161 ) 2 135,515 ( 25,461 ) 166 136,357 ( 25,622 ) 168 Corporate 4,279 ( 521 ) 11 18,551 ( 2,975 ) 40 22,830 ( 3,496 ) 51 Agency mortgage & asset-backed 14,773 ( 474 ) 48 121,344 ( 11,690 ) 205 136,117 ( 12,164 ) 253 Non-Agency mortgage & asset-backed 26,547 ( 1,307 ) 27 39,473 ( 3,583 ) 43 66,020 ( 4,890 ) 70 Total temporarily impaired $ 46,441 $ ( 2,463 ) 88 $ 387,575 $ ( 54,866 ) 482 $ 434,016 $ ( 57,329 ) 570 December 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 $ 17,598 $ ( 183 ) 3 $ 72,659 $ ( 11,540 ) 28 $ 90,257 $ ( 11,723 ) 31 Municipal 73,644 ( 9,586 ) 90 80,503 ( 20,981 ) 104 154,147 ( 30,566 ) 194 Corporate 12,221 ( 851 ) 25 10,368 ( 1,226 ) 21 22,589 ( 2,077 ) 46 Agency mortgage & asset-backed 55,393 ( 2,747 ) 139 88,953 ( 9,611 ) 113 144,346 ( 12,358 ) 252 Non-Agency mortgage & asset-backed 49,301 ( 3,092 ) 52 14,207 ( 1,715 ) 16 63,508 ( 4,807 ) 68 Total temporarily impaired $ 208,157 $ ( 16,459 ) 309 $ 266,690 $ ( 45,072 ) 282 $ 474,847 $ ( 61,531 ) 591 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans [Abstract] | |
Schedule Of Loans Outstanding | June 30, December 31, (Dollars in thousands) 2023 2022 Residential Real Estate 1-4 Family Consumer first liens $ 106,546 $ 82,795 Commercial first lien 63,218 61,702 Total first liens 169,764 144,497 Consumer junior liens and lines of credit 68,463 69,561 Commercial junior liens and lines of credit 3,888 4,127 Total junior liens and lines of credit 72,351 73,688 Total residential real estate 1-4 family 242,115 218,185 Residential real estate - construction Consumer 7,868 13,908 Commercial 10,165 10,485 Total residential real estate construction 18,033 24,393 Commercial real estate 638,132 566,662 Commercial 240,555 235,602 Total commercial 878,687 802,264 Consumer 6,327 6,199 1,145,162 1,051,041 Less: Allowance for credit losses ( 14,615 ) ( 14,175 ) Net Loans $ 1,130,547 $ 1,036,866 Included in the loan balances are the following: Net unamortized deferred loan costs $ 1,751 $ 2,027 Loans pledged as collateral for borrowings and commitments from: FHLB $ 609,064 $ 585,601 Federal Reserve Bank 88,182 92,922 $ 697,246 $ 678,523 Paycheck Protection Program (included in commercial loans) $ 78 $ 179 |
Loan Quality And Allowance Fo_2
Loan Quality And Allowance For Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loan Quality And Allowance For Credit Losses [Abstract] | |
Schedule of loans by Year of origination and Internally Assigned Risk Ratings | (Dollars in thousands, except per share) Revolving Revolving Term Loans Loans Loans Amortized Cost Basis by Origination Year Amortized Converted As of June 30 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate 1-4 family: Commercial: Risk rating: Pass (1-5) $ 5,901 $ 9,647 $ 12,319 $ 9,919 $ 2,615 $ 24,539 $ 2,064 $ — $ 67,004 OAEM (6) — — — — — — — — — Substandard (7) — — — — — — 102 — 102 Doubtful (8) — — — — — — — — — Total Commercial 5,901 9,647 12,319 9,919 2,615 24,539 2,166 — 67,106 Consumer: Performing 18,695 29,125 16,198 11,070 5,772 30,601 46,357 17,097 174,915 Nonperforming — — — — — 94 — — 94 Total Consumer 18,695 29,125 16,198 11,070 5,772 30,695 46,357 17,097 175,009 Total $ 24,596 $ 38,772 $ 28,517 $ 20,989 $ 8,387 $ 55,234 $ 48,523 $ 17,097 $ 242,115 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate construction: Commercial: Risk rating: Pass (1-5) $ 2,450 $ 3,465 $ 984 $ 236 $ 530 $ 1,590 $ — $ — $ 9,255 OAEM (6) — — 910 — — — — — 910 Substandard (7) — — — — — — — — — Doubtful (8) — — — — — — — — — Total Commercial 2,450 3,465 1,894 236 530 1,590 — — 10,165 Consumer: Performing 2,227 5,641 — — — — — — 7,868 Nonperforming — — — — — — — — — Total Consumer 2,227 5,641 — — — — — — 7,868 Total $ 4,677 $ 9,106 $ 1,894 $ 236 $ 530 $ 1,590 $ — $ — $ 18,033 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk rating: Pass (1-5) $ 90,721 $ 118,926 $ 99,902 $ 52,720 $ 41,114 $ 224,465 $ 6,378 $ — $ 634,226 OAEM (6) — — — — — 1,085 — — 1,085 Substandard (7) — — — — — 2,771 50 — 2,821 Doubtful (8) — — — — — — — — — Total $ 90,721 $ 118,926 $ 99,902 $ 52,720 $ 41,114 $ 228,321 $ 6,428 $ — $ 638,132 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial: Risk rating: Pass (1-5) $ 21,936 $ 36,927 $ 45,142 $ 25,698 $ 4,642 $ 68,894 $ 32,299 $ — $ 235,538 OAEM (6) — — — — — — — — — Substandard (7) — 359 — — — 3,701 957 — 5,017 Doubtful (8) — — — — — — — — — Total $ 21,936 $ 37,286 $ 45,142 $ 25,698 $ 4,642 $ 72,595 $ 33,256 $ — $ 240,555 Current period gross charge-offs $ ( 6 ) $ — $ ( 81 ) $ — $ — $ — $ — $ — $ ( 87 ) Consumer: Performing 1,069 848 2,140 224 139 12 1,895 — 6,327 Nonperforming — — — — — — — — — Total $ 1,069 $ 848 $ 2,140 $ 224 $ 139 $ 12 $ 1,895 $ — $ 6,327 Current period gross charge-offs $ ( 22 ) $ ( 16 ) $ ( 6 ) $ — $ — $ — $ ( 32 ) $ — $ ( 76 ) |
Schedule of nonaccrual loans and loans past due over 90 days and still on accrual by class of loans | (Dollars in thousands) Nonaccrual and Loans Past Due Over 90 Days+ Loans Past Due Nonaccrual Nonaccrual Over 90 Days Without ACL With ACL Still Accruing June 30, 2023 Residential Real Estate 1-4 Family First liens $ 102 $ — $ 94 Junior liens and lines of credit — — — Total 102 — 94 Residential real estate - construction — — — Commercial real estate — — — Commercial — — — Consumer — — — Total $ 102 $ — $ 94 |
Internal Credit Rating For The Loan Portfolio | Pass OAEM Substandard Doubtful (Dollars in thousands) (1-5) (6) (7) (8) Total December 31, 2022 Residential Real Estate 1-4 Family First liens $ 144,377 $ — $ 120 $ — $ 144,497 Junior liens and lines of credit 73,688 — — — 73,688 Total 218,065 — 120 — 218,185 Residential real estate - construction 24,393 — — — 24,393 Commercial real estate 562,665 1,095 2,902 — 566,662 Commercial 228,085 2,751 4,766 — 235,602 Consumer 6,199 — — — 6,199 Total $ 1,039,407 $ 3,846 $ 7,788 $ — $ 1,051,041 |
Aging Of Payments Of The Loan Portfolio | (Dollars in thousands) Loans Past Due Total Total 30-59 Days 60-89 Days 90 Days+ Past Due Current Loans June 30, 2023 Residential Real Estate 1-4 Family First liens $ 72 $ 364 $ 196 $ 632 $ 169,132 $ 169,764 Junior liens and lines of credit 202 — — 202 72,149 72,351 Total 274 364 196 834 241,281 242,115 Residential real estate - construction — — — — 18,033 18,033 Commercial real estate 235 — — 235 637,897 638,132 Commercial 612 — — 612 239,943 240,555 Consumer 30 6 — 36 6,291 6,327 Total $ 1,151 $ 370 $ 196 $ 1,717 $ 1,143,445 $ 1,145,162 Total Past Due & Total December 31, 2022 30-59 Days 60-89 Days 90 Days+ Nonaccrual Nonaccrual Current Loans Residential Real Estate 1-4 Family First liens $ 340 $ 177 $ — $ 120 $ 637 $ 143,860 $ 144,497 Junior liens and lines of credit 490 — — — 490 73,198 73,688 Total 830 177 — 120 1,127 217,058 218,185 Residential real estate - construction — — — — — 24,393 24,393 Commercial real estate 649 — — — 649 566,013 566,662 Commercial 681 50 — — 731 234,871 235,602 Consumer 29 5 13 — 47 6,152 6,199 Total $ 2,189 $ 232 $ 13 $ 120 $ 2,421 $ 1,048,487 $ 1,051,041 |
Allowance for Credit Losses (ACL), By Loan Segment | Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total ACL at March 31, 2023 $ 1,624 $ 690 $ 190 $ 8,236 $ 3,275 $ 94 $ — $ 14,109 Charge-offs — — — — ( 1 ) ( 42 ) — ( 43 ) Recoveries — — 3 — 12 10 — 25 Provision 96 ( 7 ) ( 16 ) 847 ( 432 ) 36 — 524 ACL at June 30, 2023 $ 1,720 $ 683 $ 177 $ 9,083 $ 2,854 $ 98 $ — $ 14,615 ALL at December 31, 2022 $ 459 $ 234 $ 343 $ 7,493 $ 4,846 $ 133 $ 667 $ 14,175 Impact of adopting ASU 2016-13 1,096 493 ( 95 ) 584 ( 1,907 ) ( 40 ) ( 667 ) ( 536 ) Charge-offs — — — — ( 87 ) ( 76 ) — ( 163 ) Recoveries 2 — 42 — 79 25 — 148 Provision 163 ( 44 ) ( 113 ) 1,006 ( 77 ) 56 — 991 ACL at June 30, 2023 $ 1,720 $ 683 $ 177 $ 9,083 $ 2,854 $ 98 $ — $ 14,615 ALL at March 31, 2022 $ 480 $ 253 $ 329 $ 7,962 $ 5,183 $ 125 $ 718 $ 15,050 Charge-offs — — — — ( 62 ) ( 22 ) — ( 84 ) Recoveries 32 — — — 7 10 — 49 Provision ( 47 ) ( 8 ) ( 40 ) 134 ( 52 ) 6 7 — ALL at June 30, 2022 $ 465 $ 245 $ 289 $ 8,096 $ 5,076 $ 119 $ 725 $ 15,015 ALL at December 31, 2021 $ 475 $ 252 $ 325 $ 8,168 $ 5,127 $ 130 $ 589 $ 15,066 Charge-offs ( 20 ) — — — ( 63 ) ( 46 ) — ( 129 ) Recoveries 47 1 — — 12 18 — 78 Provision ( 37 ) ( 8 ) ( 36 ) ( 72 ) — 17 136 — ALL at June 30, 2022 $ 465 $ 245 $ 289 $ 8,096 $ 5,076 $ 119 $ 725 $ 15,015 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 December 31, 2022: Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total December 31, 2022 Loans evaluated for ALL: Individually $ 619 $ — $ — $ 2,331 $ — $ — $ — $ 2,950 Collectively 143,878 73,688 24,393 564,331 235,602 6,199 — 1,048,091 Total $ 144,497 $ 73,688 $ 24,393 $ 566,662 $ 235,602 $ 6,199 $ — $ 1,051,041 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 459 234 343 7,493 4,846 133 667 14,175 ALL at December 31, 2022 $ 459 $ 234 $ 343 $ 7,493 $ 4,846 $ 133 $ 667 $ 14,175 |
Impaired Financing Receivables | Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related December 31, 2022 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 619 $ 619 $ — $ — $ — Junior liens and lines of credit — — — — — Total 619 619 — — — Residential real estate - construction — — — — — Commercial real estate 2,331 2,331 — — — Commercial — — — — — Total $ 2,950 $ 2,950 $ — $ — $ — |
Troubled Debt Restructuring Loans | 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 December 31, 2022 Residential real estate - construction — $ — $ — $ — — $ — Residential real estate 5 619 619 — — — Commercial real estate - owner occupied 3 783 783 — — — Commercial real estate - farm land 3 1,466 1,466 — — — Commercial real estate - construction and land development — — — — — — Commercial real estate - other 1 82 82 — — — Total 12 $ 2,950 $ 2,950 $ — — $ — *The performing status is determined by the loans compliance with the modified terms. Nonperforming is considered 90 days or more past due. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule Of Lease Costs | Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Operating lease cost $ 212 $ 200 $ 429 $ 373 Short-term lease cost 4 126 8 252 Variable lease cost 37 28 74 53 Total lease cost $ 253 $ 354 $ 511 $ 678 |
Schedule Of Measurement Of Lease Liabilities | Six Months Ended June 30, (Dollars in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 413 $ 359 Weighted-average remaining lease term (years) 11.9 10.2 Weighted-average discount rate 3.37 % 3.29 % |
Schedule Of Future Minimum Payments Operating Leases | (Dollars in thousands) 2023 $ 374 2024 717 2025 666 2026 564 2027 421 2028 and beyond 3,598 Undiscounted cash flow 6,340 Imputed Interest ( 1,236 ) Total lease liability $ 5,104 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivatives [Abstract] | |
Schedule Of Fair Value Of Derivative Instruments | Fair Value of Derivative Instruments Derivative Liabilities (Dollars in thousands) June 30, 2023 December 31, 2022 Notional amount Balance Sheet Location Fair Value Notional amount Balance Sheet Location Fair Value Derivatives not designated as hedging instruments Other Contracts $ 6,367 Other Liabilities $ 3 $ 6,465 Other Liabilities $ 3 Total derivatives not designated as hedging instruments $ 3 $ 3 |
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 Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Other Contracts Other income $ 2 $ 5 $ - $ 13 |
Pension (Tables)
Pension (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Pension [Abstract] | |
Schedule Of Net Periodic Pension Costs | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2023 2022 2023 2022 Components of net periodic cost: Service cost $ 53 $ 85 $ 108 $ 171 Interest cost 201 168 403 336 Expected return on plan assets ( 230 ) ( 248 ) ( 462 ) ( 497 ) Recognized net actuarial loss — 149 — 299 Total pension expense $ 24 $ 154 $ 49 $ 309 |
Fair Value Measurements And F_2
Fair Value Measurements And Fair Values Of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 380 $ — $ — $ 380 Available for sale: U.S. Treasury 72,692 — — 72,692 Municipal — 136,356 — 136,356 Corporate — 22,830 — 22,830 Agency mortgage & asset-backed — 139,885 — 139,885 Non-Agency mortgage & asset-backed — 67,708 — 67,708 Total assets $ 73,072 $ 366,779 $ — $ 439,851 (Dollars in thousands) Fair Value at December 31, 2022 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 411 $ — $ — $ 411 Available for sale: U.S. Treasury 90,257 — — 90,257 Municipal — 155,455 — 155,455 Corporate — 24,239 — 24,239 Agency mortgage and asset-backed — 150,935 — 150,935 Non-Agency mortgage and asset-backed — 65,950 — 65,950 Total assets $ 90,668 $ 396,579 $ — $ 487,247 |
Fair Value, By Balance Sheet Grouping | June 30, 2023 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 64,832 $ 64,832 $ 64,832 $ — $ — Long-term interest-bearing deposits in other banks 8,978 8,978 8,978 — — Loans held for sale 126 126 — 126 — Net loans 1,130,547 1,081,607 — — 1,081,607 Accrued interest receivable 6,147 6,147 — — 6,147 Financial liabilities: Deposits $ 1,513,135 $ 1,511,696 $ — $ 1,511,696 $ — Short-term borrowings 70,000 70,000 — 70,000 — Subordinate notes 19,643 18,132 — 18,132 — Accrued interest payable 1,441 1,441 — 1,441 — December 31, 2022 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 64,899 $ 64,899 $ 64,899 $ — $ — Long-term interest-bearing deposits in other banks 13,975 13,975 13,975 — — Loans held for sale 283 287 — 287 — Net loans 1,036,866 986,141 — — 986,141 Accrued interest receivable 6,354 6,354 — — 6,354 Financial liabilities: Deposits $ 1,551,448 $ 1,550,030 $ — $ 1,550,030 $ — Subordinate notes 19,623 17,876 — 17,876 — Accrued interest payable 192 192 — 192 — |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Schedule Of Deposits | June 30, December 31, (Dollars in thousands) 2023 2022 Noninterest-bearing checking $ 287,385 $ 299,231 Interest-bearing checking 445,003 496,533 Money management 573,582 569,585 Savings 117,423 128,709 Total interest-bearing checking and savings 1,136,008 1,194,827 Time deposits 89,742 57,390 Total deposits $ 1,513,135 $ 1,551,448 Overdrawn deposit accounts reclassified as loans $ 158 $ 103 |
Capital Ratios (Tables)
Capital Ratios (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Capital Ratios [Abstract] | |
Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements | Regulatory Ratios Adequately Well June 30, December 31, Capitalized Capitalized (Dollars in thousands) 2023 2022 Minimum Minimum Common Equity Tier 1 Risk-based Capital Ratio (1) Franklin Financial Services Corporation 13.88 % 14.22 % N/A N/A Farmers & Merchants Trust Company 14.25 % 14.63 % 4.50 % 6.50 % Tier 1 Risk-based Capital Ratio (2) Franklin Financial Services Corporation 13.88 % 14.22 % N/A N/A Farmers & Merchants Trust Company 14.25 % 14.63 % 6.00 % 8.00 % Total Risk-based Capital Ratio (3) Franklin Financial Services Corporation 16.84 % 17.21 % N/A N/A Farmers & Merchants Trust Company 15.50 % 15.88 % 8.00 % 10.00 % Tier 1 Leverage Ratio (4) Franklin Financial Services Corporation 9.39 % 8.95 % N/A N/A Farmers & Merchants Trust Company 9.64 % 9.21 % 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 (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition [Abstract] | |
Schedule of Investment and Trust Fees | For the Three Months Ended For the Six Months Ended (Dollars in thousands) June 30, June 30, Investment and Trust Service Fees 2023 2022 2023 2022 Asset Management Fees $ 1,844 $ 1,744 $ 3,481 $ 3,368 Estate Management Fees 61 129 152 302 Commissions 54 45 160 76 Total $ 1,959 $ 1,918 $ 3,793 $ 3,746 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments And Contingencies [Abstract] | |
Outstanding Commitments | June 30, December 31, (Dollars in thousands) 2023 2022 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 356,488 $ 275,867 Consumer commitments to extend credit (secured) 95,459 93,124 Consumer commitments to extend credit (unsecured) 4,907 5,247 $ 456,854 $ 374,238 Standby letters of credit $ 28,264 $ 30,734 ACL - Unfunded Commitments* $ 1,957 $ 1,475 *Reported in Other Liabilities on the Consolidated Balance Sheet |
Basis Of Presentation (Details)
Basis Of Presentation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basis Of Presentation [Abstract] | ||||
Weighted average shares outstanding (basic) | 4,380 | 4,450 | 4,388 | 4,448 |
Impact of common stock equivalents | 8 | 16 | 13 | 21 |
Weighted average shares outstanding (diluted) | 4,388 | 4,466 | 4,401 | 4,469 |
Anti-dilutive options excluded from calculation | 74 | 30 | 25 | 30 |
Net income | $ 2,976 | $ 3,578 | $ 6,268 | $ 6,590 |
Basic earnings per share | $ 0.68 | $ 0.80 | $ 1.43 | $ 1.48 |
Diluted earnings per share | $ 0.68 | $ 0.80 | $ 1.42 | $ 1.47 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | $ 14,615 | $ 14,175 | |||||
Allowance for credit losses | 14,615 | $ 14,109 | $ 15,015 | $ 15,050 | $ 15,066 | ||
Retained earnings | 129,452 | 125,892 | |||||
Loans evaluated for allowance individually | 2,950 | ||||||
Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | (536) | ||||||
Retained earnings | $ 98 | ||||||
Increase of deferred tax liabilities | 26 | ||||||
Loans evaluated for allowance individually | 3,000 | ||||||
Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 14,175 | ||||||
Accounting Standards Update 2016-13 [Member] | Restatement Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 412 | ||||||
Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | (536) | ||||||
First Liens [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | 459 | ||||||
First Liens [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | 1,096 | ||||||
Junior Liens & Lines Of Credit [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | 234 | ||||||
Junior Liens & Lines Of Credit [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | 493 | ||||||
OBS [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 1,475 | ||||||
OBS [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 412 | ||||||
Residential Real Estate - Construction [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | 343 | ||||||
Allowance for credit losses | 177 | 190 | 289 | 329 | 325 | ||
Residential Real Estate - Construction [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | (95) | ||||||
Residential Real Estate - Construction [Member] | Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 343 | ||||||
Residential Real Estate - Construction [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | (95) | ||||||
Commercial Real Estate [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | 7,493 | ||||||
Allowance for credit losses | 9,083 | 8,236 | 8,096 | 7,962 | 8,168 | ||
Loans evaluated for allowance individually | 2,331 | ||||||
Commercial Real Estate [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | 584 | ||||||
Commercial Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 7,493 | ||||||
Commercial Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 584 | ||||||
Commercial [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | 4,846 | ||||||
Allowance for credit losses | 2,854 | 3,275 | 5,076 | 5,183 | 5,127 | ||
Commercial [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | (1,907) | ||||||
Commercial [Member] | Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 4,846 | ||||||
Commercial [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | (1,907) | ||||||
Consumer [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | 133 | ||||||
Allowance for credit losses | 98 | $ 94 | 119 | 125 | 130 | ||
Consumer [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | (40) | ||||||
Consumer [Member] | Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | 133 | ||||||
Consumer [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | (40) | ||||||
Unallocated [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | 667 | ||||||
Allowance for credit losses | $ 725 | $ 718 | $ 589 | ||||
Unallocated [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan losses | (667) | ||||||
Unallocated [Member] | Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | $ 667 | ||||||
Unallocated [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses | $ (667) |
Recent Accounting Pronounceme_5
Recent Accounting Pronouncements (Schedule of Impact of ASC 326) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | $ 14,615 | $ 14,175 | ||||
Allowance for credit losses | 14,615 | $ 14,109 | $ 15,015 | $ 15,050 | $ 15,066 | |
Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | (536) | |||||
As Reported Under ASC 326, Adjusted Balance [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 13,639 | |||||
Accounting Standards Update 2016-13 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 14,175 | |||||
Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | (536) | |||||
OBS [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 1,475 | |||||
OBS [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 412 | |||||
OBS [Member] | As Reported Under ASC 326, Adjusted Balance [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 1,887 | |||||
First Liens [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 459 | |||||
First Liens [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 1,096 | |||||
First Liens [Member] | As Reported Under ASC 326, Adjusted Balance [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 1,555 | |||||
Junior Liens & Lines Of Credit [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 234 | |||||
Junior Liens & Lines Of Credit [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 493 | |||||
Junior Liens & Lines Of Credit [Member] | As Reported Under ASC 326, Adjusted Balance [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 727 | |||||
Residential Real Estate [Member] | First Liens [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 459 | |||||
Allowance for credit losses | 1,720 | 1,624 | 465 | 480 | 475 | |
Residential Real Estate [Member] | First Liens [Member] | Accounting Standards Update 2016-13 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 459 | |||||
Residential Real Estate [Member] | First Liens [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 1,096 | |||||
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 234 | |||||
Allowance for credit losses | 683 | 690 | 245 | 253 | 252 | |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Accounting Standards Update 2016-13 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 234 | |||||
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 493 | |||||
Residential Real Estate - Construction [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 343 | |||||
Allowance for credit losses | 177 | 190 | 289 | 329 | 325 | |
Residential Real Estate - Construction [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | (95) | |||||
Residential Real Estate - Construction [Member] | As Reported Under ASC 326, Adjusted Balance [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 248 | |||||
Residential Real Estate - Construction [Member] | Accounting Standards Update 2016-13 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 343 | |||||
Residential Real Estate - Construction [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | (95) | |||||
Commercial Real Estate [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 7,493 | |||||
Allowance for credit losses | 9,083 | 8,236 | 8,096 | 7,962 | 8,168 | |
Commercial Real Estate [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 584 | |||||
Commercial Real Estate [Member] | As Reported Under ASC 326, Adjusted Balance [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 8,077 | |||||
Commercial Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 7,493 | |||||
Commercial Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 584 | |||||
Commercial [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 4,846 | |||||
Allowance for credit losses | 2,854 | 3,275 | 5,076 | 5,183 | 5,127 | |
Commercial [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | (1,907) | |||||
Commercial [Member] | As Reported Under ASC 326, Adjusted Balance [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 2,939 | |||||
Commercial [Member] | Accounting Standards Update 2016-13 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 4,846 | |||||
Commercial [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | (1,907) | |||||
Consumer [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 133 | |||||
Allowance for credit losses | 98 | $ 94 | 119 | 125 | 130 | |
Consumer [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | (40) | |||||
Consumer [Member] | As Reported Under ASC 326, Adjusted Balance [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 93 | |||||
Consumer [Member] | Accounting Standards Update 2016-13 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | 133 | |||||
Consumer [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | (40) | |||||
Unallocated [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | 667 | |||||
Allowance for credit losses | $ 725 | $ 718 | $ 589 | |||
Unallocated [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for loan losses | (667) | |||||
Unallocated [Member] | Accounting Standards Update 2016-13 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | $ 667 | |||||
Unallocated [Member] | Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | $ (667) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Schedule Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total accumulated other comprehensive (loss) | $ (47,961) | $ (51,287) |
Accumulated Other Comprehensive Income (Loss), Debt Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive loss, Before tax | (57,286) | (61,497) |
Accumulated other comprehensive loss, Tax effect | 12,029 | 12,914 |
Total accumulated other comprehensive (loss) | (45,257) | (48,583) |
Accumulated Other Comprehensive Income (Loss), Pension [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive loss, Before tax | (3,423) | (3,423) |
Accumulated other comprehensive loss, Tax effect | 719 | 719 |
Total accumulated other comprehensive (loss) | $ (2,704) | $ (2,704) |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) item security | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) security | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair value | $ 439,471 | $ 439,471 | $ 486,836 | ||
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% | ||||
Number of debt securities | security | 570 | 570 | 591 | ||
Fair value of temporarily impaired securities | $ 434,016 | $ 434,016 | $ 474,847 | ||
Unrealized Losses | 57,329 | 57,329 | 61,531 | ||
Decrease in unrealized loss position | 4,200 | ||||
Equity securities | 380 | 380 | 411 | ||
Debt Securities, Available-for-sale, Realized Gain (Loss) | (517) | $ (19) | (1,119) | $ (19) | |
Proceeds from Sale of Debt Securities, Available-for-sale | 7,262 | $ 82 | 40,117 | $ 82 | |
Corporate [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair value | $ 22,830 | $ 22,830 | $ 24,239 | ||
Number of debt securities | security | 51 | 51 | 46 | ||
Fair value of temporarily impaired securities | $ 22,830 | $ 22,830 | $ 22,589 | ||
Unrealized Losses | 3,496 | 3,496 | 2,077 | ||
Public Funds And Trust Deposits [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Fair value | $ 151,700 | $ 151,700 | $ 208,900 | ||
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 | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 496,757 | $ 548,333 |
Gross unrealized gains | 43 | 34 |
Gross unrealized losses | (57,329) | (61,531) |
Fair value | 439,471 | 486,836 |
U.S Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 83,849 | 101,980 |
Gross unrealized losses | (11,157) | (11,723) |
Fair value | 72,692 | 90,257 |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 161,978 | 186,007 |
Gross unrealized gains | 14 | |
Gross unrealized losses | (25,622) | (30,566) |
Fair value | 136,356 | 155,455 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 26,326 | 26,316 |
Gross unrealized losses | (3,496) | (2,077) |
Fair value | 22,830 | 24,239 |
Agency Mortgage-Backed & Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 152,013 | 163,274 |
Gross unrealized gains | 36 | 19 |
Gross unrealized losses | (12,164) | (12,358) |
Fair value | 139,885 | 150,935 |
Non-Agency Mortgage & Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 72,591 | 70,756 |
Gross unrealized gains | 7 | 1 |
Gross unrealized losses | (4,890) | (4,807) |
Fair value | $ 67,708 | $ 65,950 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Debt Securities, By Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 496,757 | $ 548,333 |
Fair Value | 439,471 | $ 486,836 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due after one year through five years, Amortized cost | 31,288 | |
Due after five years through ten years, Amortized cost | 123,670 | |
Due after ten years, Amortized cost | 117,195 | |
Amortized cost | 272,153 | |
Due after one year through five years, Fair value | 27,477 | |
Due after five years through ten years, Fair value | 106,461 | |
Due after ten years, Fair value | 97,940 | |
Fair Value | 231,878 | |
Mortgage And Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Mortgage-backed securities, Amortized cost | 224,604 | |
Mortgage-backed securities, Fair value | $ 207,593 |
Investments (Composition Of Net
Investments (Composition Of Net Realized Securities Gains (Losses)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments [Abstract] | ||||
Proceeds | $ 7,262 | $ 82 | $ 40,117 | $ 82 |
Gross gains realized | 12 | |||
Gross losses realized | (517) | (19) | (1,131) | (19) |
Net (losses) gains realized | (517) | (19) | (1,119) | (19) |
Tax benefit (provision) on net (losses) gains realized | $ 109 | $ 4 | $ 235 | $ 4 |
Investments (Schedule Of Unreal
Investments (Schedule Of Unrealized Loss On Investments) (Details) $ in Thousands | Jun. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 46,441 | $ 208,157 |
Less than 12 months: Unrealized Losses | $ (2,463) | $ (16,459) |
Less than 12 months: Count | security | 88 | 309 |
12 months or more: Fair Value | $ 387,575 | $ 266,690 |
12 months or more: Unrealized Losses | $ (54,866) | $ (45,072) |
12 months or more: Count | security | 482 | 282 |
Fair Value | $ 434,016 | $ 474,847 |
Unrealized Losses | $ (57,329) | $ (61,531) |
Count | security | 570 | 591 |
U.S Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 17,598 | |
Less than 12 months: Unrealized Losses | $ (183) | |
Less than 12 months: Count | security | 3 | |
12 months or more: Fair Value | $ 72,692 | $ 72,659 |
12 months or more: Unrealized Losses | $ (11,157) | $ (11,540) |
12 months or more: Count | security | 28 | 28 |
Fair Value | $ 72,692 | $ 90,257 |
Unrealized Losses | $ (11,157) | $ (11,723) |
Count | security | 28 | 31 |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 842 | $ 73,644 |
Less than 12 months: Unrealized Losses | $ (161) | $ (9,586) |
Less than 12 months: Count | security | 2 | 90 |
12 months or more: Fair Value | $ 135,515 | $ 80,503 |
12 months or more: Unrealized Losses | $ (25,461) | $ (20,981) |
12 months or more: Count | security | 166 | 104 |
Fair Value | $ 136,357 | $ 154,147 |
Unrealized Losses | $ (25,622) | $ (30,566) |
Count | security | 168 | 194 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 4,279 | $ 12,221 |
Less than 12 months: Unrealized Losses | $ (521) | $ (851) |
Less than 12 months: Count | security | 11 | 25 |
12 months or more: Fair Value | $ 18,551 | $ 10,368 |
12 months or more: Unrealized Losses | $ (2,975) | $ (1,226) |
12 months or more: Count | security | 40 | 21 |
Fair Value | $ 22,830 | $ 22,589 |
Unrealized Losses | $ (3,496) | $ (2,077) |
Count | security | 51 | 46 |
Agency Mortgage-Backed & Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 14,773 | $ 55,393 |
Less than 12 months: Unrealized Losses | $ (474) | $ (2,747) |
Less than 12 months: Count | security | 48 | 139 |
12 months or more: Fair Value | $ 121,344 | $ 88,953 |
12 months or more: Unrealized Losses | $ (11,690) | $ (9,611) |
12 months or more: Count | security | 205 | 113 |
Fair Value | $ 136,117 | $ 144,346 |
Unrealized Losses | $ (12,164) | $ (12,358) |
Count | security | 253 | 252 |
Non-Agency Mortgage & Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 26,547 | $ 49,301 |
Less than 12 months: Unrealized Losses | $ (1,307) | $ (3,092) |
Less than 12 months: Count | security | 27 | 52 |
12 months or more: Fair Value | $ 39,473 | $ 14,207 |
12 months or more: Unrealized Losses | $ (3,583) | $ (1,715) |
12 months or more: Count | security | 43 | 16 |
Fair Value | $ 66,020 | $ 63,508 |
Unrealized Losses | $ (4,890) | $ (4,807) |
Count | security | 70 | 68 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
PPP Program, guarantee percentage | 100% |
PPP program, interest rate | 1% |
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 | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 1,145,162 | $ 1,051,041 |
Less: Allowance for credit losses | (14,615) | (14,175) |
Net Loans | 1,130,547 | 1,036,866 |
Net unamortized deferred loan costs | 1,751 | 2,027 |
Total | 697,246 | 678,523 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 242,115 | 218,185 |
Total | 242,115 | |
Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 18,033 | 24,393 |
Less: Allowance for credit losses | (343) | |
Total | 18,033 | |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 638,132 | 566,662 |
Less: Allowance for credit losses | (7,493) | |
Total | 638,132 | |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 240,555 | 235,602 |
Less: Allowance for credit losses | (4,846) | |
Total | 240,555 | |
Total Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 878,687 | 802,264 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,327 | 6,199 |
Less: Allowance for credit losses | (133) | |
Total | 6,327 | |
Consumer First Liens [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 106,546 | 82,795 |
Consumer Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 68,463 | 69,561 |
Consumer [Member] | Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,868 | 13,908 |
Commercial First Lien [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 63,218 | 61,702 |
Commercial Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,888 | 4,127 |
Commercial [Member] | Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 10,165 | 10,485 |
First Liens [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: Allowance for credit losses | (459) | |
First Liens [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 169,764 | 144,497 |
Less: Allowance for credit losses | (459) | |
Junior Lines And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 72,351 | 73,688 |
PPP [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 78 | 179 |
FHLB [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net loans | 609,064 | 585,601 |
Federal Reserve Bank Advances [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net loans | $ 88,182 | $ 92,922 |
Loan Quality And Allowance Fo_3
Loan Quality And Allowance For Credit Losses (Narrative) (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Loan Quality And Allowance For Credit Losses [Abstract] | ||
Loan Deferral Or Modification, Granted, Amount | $ 94,000 | $ 94,000 |
Loan Quality and Allowance fo_4
Loan Quality and Allowance for Credit Losses (Schedule of loans by Year of origination and Internally Assigned Risk Ratings) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | $ 697,246 | $ 678,523 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 24,596 | |
2022 | 38,772 | |
2021 | 28,517 | |
2020 | 20,989 | |
2019 | 8,387 | |
Prior | 55,234 | |
Revolving Loans Amortized Cost Basis | 48,523 | |
Revolving Loans Converted to Term | 17,097 | |
Total | 242,115 | |
Residential Real Estate [Member] | Residential Real Estate Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 5,901 | |
2022 | 9,647 | |
2021 | 12,319 | |
2020 | 9,919 | |
2019 | 2,615 | |
Prior | 24,539 | |
Revolving Loans Amortized Cost Basis | 2,166 | |
Total | 67,106 | |
Residential Real Estate [Member] | Residential Real Estate Commercial [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 5,901 | |
2022 | 9,647 | |
2021 | 12,319 | |
2020 | 9,919 | |
2019 | 2,615 | |
Prior | 24,539 | |
Revolving Loans Amortized Cost Basis | 2,064 | |
Total | 67,004 | |
Residential Real Estate [Member] | Residential Real Estate Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Revolving Loans Amortized Cost Basis | 102 | |
Total | 102 | |
Residential Real Estate [Member] | Residential Real Estate Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 18,695 | |
2022 | 29,125 | |
2021 | 16,198 | |
2020 | 11,070 | |
2019 | 5,772 | |
Prior | 30,695 | |
Revolving Loans Amortized Cost Basis | 46,357 | |
Revolving Loans Converted to Term | 17,097 | |
Total | 175,009 | |
Residential Real Estate [Member] | Residential Real Estate Consumer [Member] | Nonperforming [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Prior | 94 | |
Total | 94 | |
Residential Real Estate [Member] | Residential Real Estate Consumer [Member] | Performing [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 18,695 | |
2022 | 29,125 | |
2021 | 16,198 | |
2020 | 11,070 | |
2019 | 5,772 | |
Prior | 30,601 | |
Revolving Loans Amortized Cost Basis | 46,357 | |
Revolving Loans Converted to Term | 17,097 | |
Total | 174,915 | |
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 4,677 | |
2022 | 9,106 | |
2021 | 1,894 | |
2020 | 236 | |
2019 | 530 | |
Prior | 1,590 | |
Total | 18,033 | |
Residential Real Estate - Construction [Member] | Residential Real Estate Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 2,450 | |
2022 | 3,465 | |
2021 | 1,894 | |
2020 | 236 | |
2019 | 530 | |
Prior | 1,590 | |
Total | 10,165 | |
Residential Real Estate - Construction [Member] | Residential Real Estate Commercial [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 2,450 | |
2022 | 3,465 | |
2021 | 984 | |
2020 | 236 | |
2019 | 530 | |
Prior | 1,590 | |
Total | 9,255 | |
Residential Real Estate - Construction [Member] | Residential Real Estate Commercial [Member] | OAEM [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2021 | 910 | |
Total | 910 | |
Residential Real Estate - Construction [Member] | Residential Real Estate Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 2,227 | |
2022 | 5,641 | |
Total | 7,868 | |
Residential Real Estate - Construction [Member] | Residential Real Estate Consumer [Member] | Performing [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 2,227 | |
2022 | 5,641 | |
Total | 7,868 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 90,721 | |
2022 | 118,926 | |
2021 | 99,902 | |
2020 | 52,720 | |
2019 | 41,114 | |
Prior | 228,321 | |
Revolving Loans Amortized Cost Basis | 6,428 | |
Total | 638,132 | |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 90,721 | |
2022 | 118,926 | |
2021 | 99,902 | |
2020 | 52,720 | |
2019 | 41,114 | |
Prior | 224,465 | |
Revolving Loans Amortized Cost Basis | 6,378 | |
Total | 634,226 | |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Prior | 2,771 | |
Revolving Loans Amortized Cost Basis | 50 | |
Total | 2,821 | |
Commercial Real Estate [Member] | OAEM [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Prior | 1,085 | |
Total | 1,085 | |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 21,936 | |
2022 | 37,286 | |
2021 | 45,142 | |
2020 | 25,698 | |
2019 | 4,642 | |
Prior | 72,595 | |
Revolving Loans Amortized Cost Basis | 33,256 | |
Total | 240,555 | |
Current period gross charge-offs, 2023 | (6) | |
Current period gross charge-offs, 2021 | (81) | |
Current period gross charge-offs, Total | (87) | |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 21,936 | |
2022 | 36,927 | |
2021 | 45,142 | |
2020 | 25,698 | |
2019 | 4,642 | |
Prior | 68,894 | |
Revolving Loans Amortized Cost Basis | 32,299 | |
Total | 235,538 | |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2022 | 359 | |
Prior | 3,701 | |
Revolving Loans Amortized Cost Basis | 957 | |
Total | 5,017 | |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 1,069 | |
2022 | 848 | |
2021 | 2,140 | |
2020 | 224 | |
2019 | 139 | |
Prior | 12 | |
Revolving Loans Amortized Cost Basis | 1,895 | |
Total | 6,327 | |
Current period gross charge-offs, 2023 | (22) | |
Current period gross charge-offs, 2022 | (16) | |
Current period gross charge-offs, 2021 | (6) | |
Current period gross charge-offs, Revolving loans amortized cost basis | (32) | |
Current period gross charge-offs, Total | (76) | |
Consumer [Member] | Performing [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
2023 | 1,069 | |
2022 | 848 | |
2021 | 2,140 | |
2020 | 224 | |
2019 | 139 | |
Prior | 12 | |
Revolving Loans Amortized Cost Basis | 1,895 | |
Total | $ 6,327 |
Loan Quality And Allowance Fo_5
Loan Quality And Allowance For Credit Losses (Schedule of nonaccrual loans and loans past due over 90 days and still on accrual by class of loans) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Nonaccrual, with ACL | $ 102 |
90 Days+ Past Due [Member] | |
Financing Receivable, Impaired [Line Items] | |
Loans past due 90 days or more and still accruing | 94 |
Residential Real Estate [Member] | |
Financing Receivable, Impaired [Line Items] | |
Nonaccrual, with ACL | 102 |
Residential Real Estate [Member] | 90 Days+ Past Due [Member] | |
Financing Receivable, Impaired [Line Items] | |
Loans past due 90 days or more and still accruing | 94 |
First Liens [Member] | Residential Real Estate [Member] | |
Financing Receivable, Impaired [Line Items] | |
Nonaccrual, with ACL | 102 |
First Liens [Member] | Residential Real Estate [Member] | 90 Days+ Past Due [Member] | |
Financing Receivable, Impaired [Line Items] | |
Loans past due 90 days or more and still accruing | $ 94 |
Loan Quality And Allowance Fo_6
Loan Quality And Allowance For Credit Losses (Internal Credit Rating For The Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | $ 1,145,162 | $ 1,051,041 |
Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 1,039,407 | |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 7,788 | |
OAEM [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 3,846 | |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 242,115 | 218,185 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 218,065 | |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 120 | |
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 169,764 | 144,497 |
Residential Real Estate [Member] | First Liens [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 144,377 | |
Residential Real Estate [Member] | First Liens [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 120 | |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 72,351 | 73,688 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 73,688 | |
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 18,033 | 24,393 |
Residential Real Estate - Construction [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 24,393 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 638,132 | 566,662 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 562,665 | |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 2,902 | |
Commercial Real Estate [Member] | OAEM [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 1,095 | |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 240,555 | 235,602 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 228,085 | |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 4,766 | |
Commercial [Member] | OAEM [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | 2,751 | |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | $ 6,327 | 6,199 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | $ 6,199 |
Loan Quality And Allowance Fo_7
Loan Quality And Allowance For Credit Losses (Aging Of Payments Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 697,246 | $ 678,523 |
Non-accrual loans | 120 | |
Total Loans | 1,145,162 | 1,051,041 |
Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,143,445 | 1,048,487 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,151 | 2,189 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 370 | 232 |
90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 196 | 13 |
Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,717 | 2,421 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 242,115 | |
Non-accrual loans | 120 | |
Total Loans | 242,115 | 218,185 |
Residential Real Estate [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 241,281 | 217,058 |
Residential Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 274 | 830 |
Residential Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 364 | 177 |
Residential Real Estate [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 196 | |
Residential Real Estate [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 834 | 1,127 |
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 120 | |
Total Loans | 169,764 | 144,497 |
Residential Real Estate [Member] | First Liens [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 169,132 | 143,860 |
Residential Real Estate [Member] | First Liens [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 72 | 340 |
Residential Real Estate [Member] | First Liens [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 364 | 177 |
Residential Real Estate [Member] | First Liens [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 196 | |
Residential Real Estate [Member] | First Liens [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 632 | 637 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 72,351 | 73,688 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 72,149 | 73,198 |
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 | 202 | 490 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 202 | 490 |
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 18,033 | |
Total Loans | 18,033 | 24,393 |
Residential Real Estate - Construction [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 18,033 | 24,393 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 638,132 | |
Total Loans | 638,132 | 566,662 |
Commercial Real Estate [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 637,897 | 566,013 |
Commercial Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 235 | 649 |
Commercial Real Estate [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 235 | 649 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 240,555 | |
Total Loans | 240,555 | 235,602 |
Commercial [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 239,943 | 234,871 |
Commercial [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 612 | 681 |
Commercial [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 50 | |
Commercial [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 612 | 731 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 6,327 | |
Total Loans | 6,327 | 6,199 |
Consumer [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 6,291 | 6,152 |
Consumer [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 30 | 29 |
Consumer [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 6 | 5 |
Consumer [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 13 | |
Consumer [Member] | Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 36 | $ 47 |
Loan Quality And Allowance Fo_8
Loan Quality And Allowance For Credit Losses (Allowance for Credit Losses (ACL), By Loan Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | $ 14,109 | $ 15,050 | $ 15,066 | ||
Charge-offs | (43) | (84) | $ (163) | (129) | |
Recoveries | 25 | 49 | 148 | 78 | |
Provision | 524 | 991 | |||
Allowance, Ending Balance | 14,615 | 15,015 | 14,615 | 15,015 | |
Loans evaluated for allowance individually | $ 2,950 | ||||
Loans evaluated for allowance collectively | 1,048,091 | ||||
Total Loans | 1,145,162 | 1,145,162 | 1,051,041 | ||
Allowance established for loan evaluated collectively | 14,175 | ||||
Total Allowance | 14,615 | 14,615 | 14,175 | ||
Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans evaluated for allowance individually | 3,000 | ||||
Total Allowance | (536) | ||||
Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Loans | 242,115 | 242,115 | 218,185 | ||
Residential Real Estate - Construction [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 190 | 329 | 325 | ||
Recoveries | 3 | 42 | |||
Provision | (16) | (40) | (113) | (36) | |
Allowance, Ending Balance | 177 | 289 | 177 | 289 | |
Loans evaluated for allowance collectively | 24,393 | ||||
Total Loans | 18,033 | 18,033 | 24,393 | ||
Allowance established for loan evaluated collectively | 343 | ||||
Total Allowance | 343 | ||||
Residential Real Estate - Construction [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Allowance | (95) | ||||
Commercial Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 8,236 | 7,962 | 8,168 | ||
Provision | 847 | 134 | 1,006 | (72) | |
Allowance, Ending Balance | 9,083 | 8,096 | 9,083 | 8,096 | |
Loans evaluated for allowance individually | 2,331 | ||||
Loans evaluated for allowance collectively | 564,331 | ||||
Total Loans | 638,132 | 638,132 | 566,662 | ||
Allowance established for loan evaluated collectively | 7,493 | ||||
Total Allowance | 7,493 | ||||
Commercial Real Estate [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Allowance | 584 | ||||
Commercial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 3,275 | 5,183 | 5,127 | ||
Charge-offs | (1) | (62) | (87) | (63) | |
Recoveries | 12 | 7 | 79 | 12 | |
Provision | (432) | (52) | (77) | ||
Allowance, Ending Balance | 2,854 | 5,076 | 2,854 | 5,076 | |
Loans evaluated for allowance collectively | 235,602 | ||||
Total Loans | 240,555 | 240,555 | 235,602 | ||
Allowance established for loan evaluated collectively | 4,846 | ||||
Total Allowance | 4,846 | ||||
Commercial [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Allowance | (1,907) | ||||
Consumer [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 94 | 125 | 130 | ||
Charge-offs | (42) | (22) | (76) | (46) | |
Recoveries | 10 | 10 | 25 | 18 | |
Provision | 36 | 6 | 56 | 17 | |
Allowance, Ending Balance | 98 | 119 | 98 | 119 | |
Loans evaluated for allowance collectively | 6,199 | ||||
Total Loans | 6,327 | 6,327 | 6,199 | ||
Allowance established for loan evaluated collectively | 133 | ||||
Total Allowance | 133 | ||||
Consumer [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Allowance | (40) | ||||
Unallocated [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 718 | 589 | |||
Provision | 7 | 136 | |||
Allowance, Ending Balance | 725 | 725 | |||
Allowance established for loan evaluated collectively | 667 | ||||
Total Allowance | 667 | ||||
Unallocated [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Allowance | (667) | ||||
First Liens [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Allowance | 459 | ||||
First Liens [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Allowance | 1,096 | ||||
First Liens [Member] | Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 1,624 | 480 | 475 | ||
Charge-offs | (20) | ||||
Recoveries | 32 | 2 | 47 | ||
Provision | 96 | (47) | 163 | (37) | |
Allowance, Ending Balance | 1,720 | 465 | 1,720 | 465 | |
Loans evaluated for allowance individually | 619 | ||||
Loans evaluated for allowance collectively | 143,878 | ||||
Total Loans | 169,764 | 169,764 | 144,497 | ||
Allowance established for loan evaluated collectively | 459 | ||||
Total Allowance | 459 | ||||
Junior Liens & Lines Of Credit [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Allowance | 234 | ||||
Junior Liens & Lines Of Credit [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Allowance | 493 | ||||
Junior Liens & Lines Of Credit [Member] | Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 690 | 253 | 252 | ||
Recoveries | 1 | ||||
Provision | (7) | (8) | (44) | (8) | |
Allowance, Ending Balance | 683 | $ 245 | 683 | $ 245 | |
Loans evaluated for allowance collectively | 73,688 | ||||
Total Loans | 72,351 | 72,351 | 73,688 | ||
Allowance established for loan evaluated collectively | 234 | ||||
Total Allowance | $ 234 | ||||
Accounting Standards Update 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 14,175 | ||||
Accounting Standards Update 2016-13 [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Ending Balance | (536) | (536) | |||
Accounting Standards Update 2016-13 [Member] | Residential Real Estate - Construction [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 343 | ||||
Accounting Standards Update 2016-13 [Member] | Residential Real Estate - Construction [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Ending Balance | (95) | (95) | |||
Accounting Standards Update 2016-13 [Member] | Commercial Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 7,493 | ||||
Accounting Standards Update 2016-13 [Member] | Commercial Real Estate [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Ending Balance | 584 | 584 | |||
Accounting Standards Update 2016-13 [Member] | Commercial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 4,846 | ||||
Accounting Standards Update 2016-13 [Member] | Commercial [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Ending Balance | (1,907) | (1,907) | |||
Accounting Standards Update 2016-13 [Member] | Consumer [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 133 | ||||
Accounting Standards Update 2016-13 [Member] | Consumer [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Ending Balance | (40) | (40) | |||
Accounting Standards Update 2016-13 [Member] | Unallocated [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 667 | ||||
Accounting Standards Update 2016-13 [Member] | Unallocated [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Ending Balance | (667) | (667) | |||
Accounting Standards Update 2016-13 [Member] | First Liens [Member] | Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 459 | ||||
Accounting Standards Update 2016-13 [Member] | First Liens [Member] | Residential Real Estate [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Ending Balance | 1,096 | 1,096 | |||
Accounting Standards Update 2016-13 [Member] | Junior Liens & Lines Of Credit [Member] | Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 234 | ||||
Accounting Standards Update 2016-13 [Member] | Junior Liens & Lines Of Credit [Member] | Residential Real Estate [Member] | Impact of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Ending Balance | $ 493 | $ 493 |
Loan Quality And Allowance Fo_9
Loan Quality And Allowance For Credit Losses (Impaired Financing Receivables) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment With No Allowance | $ 2,950 |
Unpaid Principal Balance With No Allowance | 2,950 |
Residential Real Estate [Member] | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment With No Allowance | 619 |
Unpaid Principal Balance With No Allowance | 619 |
Residential Real Estate [Member] | First Liens [Member] | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment With No Allowance | 619 |
Unpaid Principal Balance With No Allowance | 619 |
Commercial Real Estate [Member] | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment With No Allowance | 2,331 |
Unpaid Principal Balance With No Allowance | $ 2,331 |
Loan Quality And Allowance F_10
Loan Quality And Allowance For Credit Losses (Troubled Debt Restructuring Loans) (Details) contract in Thousands, $ in Thousands | Dec. 31, 2022 USD ($) contract |
Financing Receivable, Modifications [Line Items] | |
Troubled Debt Restructurings: Number of Contracts | contract | 12 |
Troubled Debt Restructurings: Recorded Investment | $ 2,950 |
Performing [Member] | |
Financing Receivable, Modifications [Line Items] | |
Troubled Debt Restructurings: Recorded Investment | $ 2,950 |
Residential Real Estate [Member] | |
Financing Receivable, Modifications [Line Items] | |
Troubled Debt Restructurings: Number of Contracts | contract | 5 |
Troubled Debt Restructurings: Recorded Investment | $ 619 |
Residential Real Estate [Member] | Performing [Member] | |
Financing Receivable, Modifications [Line Items] | |
Troubled Debt Restructurings: Recorded Investment | $ 619 |
Commercial Real Estate - Owner Occupied [Member] | |
Financing Receivable, Modifications [Line Items] | |
Troubled Debt Restructurings: Number of Contracts | contract | 3 |
Troubled Debt Restructurings: Recorded Investment | $ 783 |
Commercial Real Estate - Owner Occupied [Member] | Performing [Member] | |
Financing Receivable, Modifications [Line Items] | |
Troubled Debt Restructurings: Recorded Investment | $ 783 |
Commercial Real Estate - Farm Land [Member] | |
Financing Receivable, Modifications [Line Items] | |
Troubled Debt Restructurings: Number of Contracts | contract | 3 |
Troubled Debt Restructurings: Recorded Investment | $ 1,466 |
Commercial Real Estate - Farm Land [Member] | Performing [Member] | |
Financing Receivable, Modifications [Line Items] | |
Troubled Debt Restructurings: Recorded Investment | $ 1,466 |
Commercial Real Estate [Member] | |
Financing Receivable, Modifications [Line Items] | |
Troubled Debt Restructurings: Number of Contracts | contract | 1 |
Troubled Debt Restructurings: Recorded Investment | $ 82 |
Commercial Real Estate [Member] | Performing [Member] | |
Financing Receivable, Modifications [Line Items] | |
Troubled Debt Restructurings: Recorded Investment | $ 82 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) item | Jun. 30, 2022 USD ($) | |
Leases [Abstract] | ||
Number of leases with a variable payment based on an index | item | 1 | |
Lessee, Operating Lease, Option to Extend | may contain renewal options after the initial term | |
Lessee, Operating Lease, Restriction or Covenant | None of the leases contain any restrictive covenants | |
Lease termination expenses | $ 525 | |
Noncash decrease in right-of-use asset | 507 | |
Noncash extinguishment of lease liability | $ 537 |
Leases (Schedule Of Lease Costs
Leases (Schedule Of Lease Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 212 | $ 200 | $ 429 | $ 373 |
Short-term lease cost | 4 | 126 | 8 | 252 |
Variable lease cost | 37 | 28 | 74 | 53 |
Total lease cost | $ 253 | $ 354 | $ 511 | $ 678 |
Leases (Schedule Of Measurement
Leases (Schedule Of Measurement Of Lease Liabilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 413 | $ 359 |
Weighted-average remaining lease term (years) | 11 years 10 months 24 days | 10 years 2 months 12 days |
Weighted-average discount rate | 3.37% | 3.29% |
Leases (Schedule Of Future Mini
Leases (Schedule Of Future Minimum Payments Operating Leases) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 374 | |
2024 | 717 | |
2025 | 666 | |
2026 | 564 | |
2027 | 421 | |
2028 and beyond | 3,598 | |
Undiscounted cash flow | 6,340 | |
Imputed Interest | (1,236) | |
Total lease liability | $ 5,104 | $ 6,144 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Other Real Estate Owned [Abstract] | ||
Other real estate owned | $ 0 | $ 0 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Derivatives [Abstract] | |
Derivative, net | $ 3 |
Derivatives (Schedule Of Fair V
Derivatives (Schedule Of Fair Value Of Derivative Instruments) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 3 | $ 3 |
Other Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,367 | 6,465 |
Fair Value | $ 3 | $ 3 |
Derivatives (Schedule Of Effect
Derivatives (Schedule Of Effect Of Derivative Instruments On The Statement Of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | |
Other Contracts [Member] | Other Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ 2 | $ 5 | $ 13 |
Pension (Details)
Pension (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pension [Abstract] | ||||
Service cost | $ 53 | $ 85 | $ 108 | $ 171 |
Interest cost | 201 | 168 | 403 | 336 |
Expected return on plan assets | (230) | (248) | (462) | (497) |
Recognized net actuarial loss | 149 | 299 | ||
Total pension expense | $ 24 | $ 154 | $ 49 | $ 309 |
Fair Value Measurements And F_3
Fair Value Measurements And Fair Values Of Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |||
Derivative liabilities | $ 3,000 | $ 3,000 | |
Assets, Fair Value Disclosure | 0 | ||
Total liabilities | $ 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 ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | $ 380,000 | $ 411,000 |
Available for sale | 439,471,000 | 486,836,000 |
Total assets | 0 | |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 439,851,000 | 487,247,000 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 73,072,000 | 90,668,000 |
Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 366,779,000 | 396,579,000 |
Equity Securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 380,000 | 411,000 |
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 | 380,000 | 411,000 |
U.S Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 72,692,000 | 90,257,000 |
U.S Treasury [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 72,692,000 | 90,257,000 |
U.S Treasury [Member] | Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 72,692,000 | 90,257,000 |
Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 136,356,000 | 155,455,000 |
Municipal [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 136,356,000 | 155,455,000 |
Municipal [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 136,356,000 | 155,455,000 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 22,830,000 | 24,239,000 |
Corporate [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 22,830,000 | 24,239,000 |
Corporate [Member] | Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 22,830,000 | 24,239,000 |
Agency Mortgage-Backed & Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 139,885,000 | 150,935,000 |
Agency Mortgage-Backed & Asset-Backed [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 139,885,000 | 150,935,000 |
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 | 139,885,000 | 150,935,000 |
Non-Agency Mortgage & Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 67,708,000 | 65,950,000 |
Non-Agency Mortgage & Asset-Backed [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 67,708,000 | 65,950,000 |
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 | $ 67,708,000 | $ 65,950,000 |
Fair Value Measurements And F_5
Fair Value Measurements And Fair Values Of Financial Instruments (Schedule Of Fair Value On A Nonrecurring Basis) (Details) | Jun. 30, 2023 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 0 |
Fair Value Measurements And F_6
Fair Value Measurements And Fair Values Of Financial Instruments (Fair Value Inputs, Assets, Quantitative Information) (Details) | Jun. 30, 2023 USD ($) |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Assets, Fair Value Disclosure | $ 0 |
Fair Value Measurements And F_7
Fair Value Measurements And Fair Values Of Financial Instruments (Fair Value, By Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 64,832 | $ 64,899 |
Long-term interest-bearing deposits in other banks | 8,978 | 13,975 |
Loans held for sale | 126 | 283 |
Net loans | 1,130,547 | 1,036,866 |
Accrued interest receivable | 6,147 | 6,354 |
Deposits | 1,513,135 | 1,551,448 |
Short-term borrowings | 70,000 | |
Subordinate notes | 19,643 | 19,623 |
Accrued interest payable | 1,441 | 192 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 64,832 | 64,899 |
Long-term interest-bearing deposits in other banks | 8,978 | 13,975 |
Loans held for sale | 126 | 287 |
Net loans | 1,081,607 | 986,141 |
Accrued interest receivable | 6,147 | 6,354 |
Deposits | 1,511,696 | 1,550,030 |
Short-term borrowings | 70,000 | |
Subordinate notes | 18,132 | 17,876 |
Accrued interest payable | 1,441 | 192 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 64,832 | 64,899 |
Long-term interest-bearing deposits in other banks | 8,978 | 13,975 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for sale | 126 | 287 |
Deposits | 1,511,696 | 1,550,030 |
Short-term borrowings | 70,000 | |
Subordinate notes | 18,132 | 17,876 |
Accrued interest payable | 1,441 | 192 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net loans | 1,081,607 | 986,141 |
Accrued interest receivable | $ 6,147 | $ 6,354 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Time deposits greater than $250,000 | $ 16.3 | $ 8.8 |
Deposits (Schedule Of Deposits)
Deposits (Schedule Of Deposits) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Deposits [Abstract] | |||
Noninterest-bearing checking | $ 287,385 | $ 299,231 | |
Interest-bearing checking | 445,003 | 496,533 | |
Money Management | 573,582 | 569,585 | |
Savings | 117,423 | 128,709 | |
Total interest-bearing checking and savings | 1,136,008 | 1,194,827 | |
Time deposits | 89,742 | 57,390 | |
Total deposits | 1,513,135 | 1,551,448 | |
Overdrawn deposit accounts reclassified as loans | 158 | $ 103 | |
Increase (Decrease) in Deposits [Abstract] | |||
Change, Time Deposit | $ 32,352 | $ (11,172) |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Amount borrowed | $ 70,000 | ||
Subordinate notes | 19,643 | $ 19,623 | |
Debt issuance costs | $ 357,000 | ||
Redemption period | 5 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% | ||
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 | ||
Federal Reserve Bank Advances [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Amount borrowed | 70,000 | ||
Fair value of debt securities pledged | 69,700 | ||
Federal Reserve Bank Advances [Member] | Maturing March 22, 2024 [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Amount borrowed | $ 50,000 | ||
Interest rate | 4.38% | ||
Federal Reserve Bank Advances [Member] | Maturing May 10, 2024 [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Amount borrowed | $ 20,000 | ||
Interest rate | 4.71% |
Capital Ratios (Narrative) (Det
Capital Ratios (Narrative) (Details) $ in Billions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) | 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% | |
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 | 7.50% |
Capital Ratios (Schedule Of The
Capital Ratios (Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements) (Details) | Jun. 30, 2023 | Dec. 31, 2022 |
Franklin Financial Services Corporation [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | 0.1388 | 0.1422 |
Tier 1 Risk-based Capital Ratio: Ratio | 0.1388 | 0.1422 |
Total Risk-based Capital Ratio: Ratio | 0.1684 | 0.1721 |
Tier 1 Leverage Ratio: Ratio | 0.0939 | 0.0895 |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | 0.1425 | 0.1463 |
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 | 0.1425 | 0.1463 |
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 | 0.1550 | 0.1588 |
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 | 0.0964 | 0.0921 |
Tier 1 Leverage Ratio: Adequately Capitalized Minimum: Ratio | 0.0400 | |
Tier 1 Leverage Ratio: Well Capitalized Minimum: Ratio | 0.05 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Investment and Trust Fees) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Investment and trust services fees | $ 1,959 | $ 1,918 | $ 3,793 | $ 3,746 |
Estate management services Fees recognition period | 18 months | |||
Asset Management Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment and trust services fees | 1,844 | 1,744 | $ 3,481 | 3,368 |
Estate Management Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment and trust services fees | 61 | 129 | 152 | 302 |
Commissions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment and trust services fees | $ 54 | $ 45 | $ 160 | $ 76 |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Allowance for credit losses | $ 14,615 | $ 15,015 | $ 14,615 | $ 15,015 | $ 14,109 | $ 15,050 | $ 15,066 | |
Provision for credit losses - unfunded commitments | 8 | 70 | ||||||
Accounting Standards Update 2016-13 [Member] | ||||||||
Allowance for credit losses | $ 14,175 | |||||||
Restatement Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
Allowance for credit losses | 412 | 412 | ||||||
Unfunded Loan Commitment [Member] | ||||||||
Allowance for credit losses | 1,957 | 1,957 | $ 1,475 | |||||
Unfunded Loan Commitment [Member] | Accounting Standards Update 2016-13 [Member] | ||||||||
Provision for credit losses - unfunded commitments | $ 8 | $ 0 | $ 70 | $ 0 |
Commitments And Contingencies_3
Commitments And Contingencies (Outstanding Commitments ) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||||||
Allowance for credit losses | $ 14,615 | $ 14,109 | $ 15,015 | $ 15,050 | $ 15,066 | |
Commercial Commitments To Extend Credit [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments outstanding | 356,488 | $ 275,867 | ||||
Consumer Commitments To Extend Credit (Secured) [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments outstanding | 95,459 | 93,124 | ||||
Consumer Commitments To Extend Credit (Unsecured) [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments outstanding | 4,907 | 5,247 | ||||
Commitments To Extend Credit [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments outstanding | 456,854 | 374,238 | ||||
Standby Letters of Credit [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments outstanding | 28,264 | 30,734 | ||||
Unfunded Loan Commitment [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Allowance for credit losses | $ 1,957 | $ 1,475 |