Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 09, 2023 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-16540 | |
Entity Registrant Name | UNITED BANCORP, INC | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-1405357 | |
Entity Address, Address Line One | 201 South Fourth Street | |
Entity Address, City or Town | Martins Ferry | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43935-0010 | |
City Area Code | 740 | |
Local Phone Number | 633-0445 | |
Title of 12(b) Security | Common Stock, Par Value $1.00 | |
Trading Symbol | UBCP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,690,251 | |
Entity Central Index Key | 0000731653 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 7,355 | $ 8,279 |
Interest-bearing demand deposits | 74,408 | 21,801 |
Cash and cash equivalents | 81,763 | 30,080 |
Available-for-sale securities, amortized cost of $247,525 net of allowance for credit losses of $0 at June 30, 2023 | 236,053 | 217,624 |
Loans, net of allowance for credit losses of $4,281 and $2,052 at June 30, 2023 and December 31, 2022, respectively | 458,590 | 458,823 |
Premises and equipment | 12,161 | 12,144 |
Federal Home Loan Bank stock | 3,979 | 2,499 |
Foreclosed assets held for sale, net | 3,475 | 3,519 |
Core deposit other intangible asset | 335 | 410 |
Goodwill | 682 | 682 |
Accrued interest receivable | 3,547 | 3,403 |
Deferred federal income tax | 3,267 | 2,423 |
Bank-owned life insurance | 19,215 | 19,000 |
Other assets | 7,217 | 6,793 |
Total assets | 830,284 | 757,400 |
Deposits | ||
Demand | 361,385 | 402,341 |
Savings | 138,393 | 145,836 |
Time | 143,838 | 101,736 |
Total deposits | 643,616 | 649,913 |
Securities sold under repurchase agreements | 23,690 | 18,106 |
Subordinated debentures | 23,756 | 23,726 |
Advances Federal Home Loan Bank | 75,000 | |
Interest payable and other liabilities | 5,813 | 5,918 |
Total liabilities | 771,875 | 697,663 |
Stockholders' Equity | ||
Preferred stock, no par value, authorized 2,000,000 shares; no shares issued | 0 | 0 |
Common stock, $1 par value; authorized 10,000,000 shares; issued 6,043,851 shares at June 30, 2023, and 6,043,851 shares at December 31, 2022; outstanding - 5,696,495 and 5,740,251 shares at June 30, 2023 and December 31, 2022, respectively | 6,044 | 6,044 |
Additional paid-in capital | 25,328 | 24,814 |
Retained earnings | 41,223 | 41,945 |
Stock held by deferred compensation plan; 167,993 and 174,237 shares at June 30, 2023 and December 31, 2022 | (1,903) | (1,902) |
Accumulated other comprehensive loss | (9,722) | (9,336) |
Treasury stock, at cost 179,363 and 129,363 shares at June 30, 2023 and December 31, 2022, respectively | (2,561) | (1,828) |
Total stockholders' equity | 58,409 | 59,737 |
Total liabilities and stockholders' equity | $ 830,284 | $ 757,400 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Condensed Consolidated Balance Sheets | ||
Amortized Cost | $ 247,525 | |
Available-for-sale securities, allowance for credit losses | 0 | |
Loans, allowance for credit losses | 4,281 | $ 2,052 |
Loans, allowance for loan losses | $ 4,281 | $ 2,052 |
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized | 10,000,000 | 10,000,000 |
Common stock, issued | 6,043,851 | 6,043,851 |
Common shares, shares outstanding | 5,696,495 | 5,740,251 |
Stock held by deferred compensation plan, shares | 167,993 | 174,237 |
Treasury stock, shares | 179,363 | 129,363 |
Condensed Consolidated Statemen
Condensed 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 and dividend income | ||||
Loans, including fees | $ 6,126 | $ 4,914 | $ 11,935 | $ 9,705 |
Taxable securities | 685 | 402 | 1,361 | 670 |
Non-taxable securities | 1,501 | 1,035 | 2,857 | 1,926 |
Federal funds sold | 936 | 66 | 1,262 | 94 |
Dividends on Federal Home Loan Bank stock and other | 38 | 28 | 79 | 47 |
Total interest and dividend income | 9,286 | 6,445 | 17,494 | 12,442 |
Deposits | ||||
Demand | 532 | 106 | 952 | 179 |
Savings | 34 | 3 | 68 | 7 |
Time | 921 | 23 | 1,524 | 96 |
Borrowings | 1,454 | 345 | 2,182 | 682 |
Total interest expense | 2,941 | 477 | 4,726 | 964 |
Net interest income | 6,345 | 5,968 | 12,768 | 11,478 |
Credit for loan losses | ||||
Provision for (reversal of) credit loss expense - loans | (146) | (485) | (146) | (985) |
Net interest income after credit for loan losses | 6,491 | 6,453 | 12,914 | 12,463 |
Noninterest income | ||||
Service charges on deposit accounts | 777 | 746 | 1,498 | 1,427 |
Realized gains on sales of loans | 7 | 15 | 7 | 27 |
Other income | 262 | 227 | 557 | 521 |
Total noninterest income | 1,046 | 988 | 2,062 | 1,975 |
Noninterest expense | ||||
Salaries and employee benefits | 2,470 | 2,384 | 5,334 | 5,389 |
Net occupancy and equipment expense | 507 | 579 | 1,004 | 1,162 |
Professional services | 343 | 360 | 729 | 623 |
Insurance | 154 | 139 | 304 | 278 |
Deposit insurance premiums | 85 | 50 | 171 | 99 |
Franchise and other taxes | 138 | 137 | 278 | 272 |
Advertising | 100 | 123 | 200 | 153 |
Stationery and office supplies | 29 | 21 | 59 | 46 |
Amortization of core deposit premium | 38 | 38 | 75 | 75 |
Other expenses | 1,225 | 1,018 | 2,373 | 1,862 |
Total noninterest expense | 5,089 | 4,849 | 10,527 | 9,959 |
Income before federal income taxes | 2,448 | 2,592 | 4,449 | 4,479 |
Federal income taxes | 168 | 295 | 281 | 431 |
Net income | $ 2,280 | $ 2,297 | $ 4,168 | $ 4,048 |
Basic Earnings Per Share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.73 | $ 0.70 |
Diluted Earnings Per Share (in dollars per share) | 0.40 | 0.40 | 0.73 | 0.70 |
DIVIDENDS PER COMMON SHARE | $ 0.1650 | $ 0.1550 | $ 0.4775 | $ 0.4575 |
Condensed Consolidated Statem_2
Condensed 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 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||
Net income | $ 2,280 | $ 2,297 | $ 4,168 | $ 4,048 |
Unrealized holding losses on securities during the period, net of tax (benefit) of ($530), ($1,868), ($101) and ($3,927) for each respective period | (1,992) | (7,026) | (386) | (14,774) |
Comprehensive income (loss) | $ 288 | $ (4,729) | $ 3,782 | $ (10,726) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||
Unrealized holding gains (loss) on securities during the period, net of tax (benefit) | $ (530) | $ (1,868) | $ (101) | $ (3,927) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Treasury Stock And Deferred Compensation Cumulative effect of adoption of ASU 2016-13 | Treasury Stock And Deferred Compensation | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative effect of adoption of ASU 2016-13 | Total |
Cumulative effect of adoption of ASU 2016-13 | $ 6,054 | $ 23,635 | $ (2,799) | $ 37,847 | $ 6,964 | $ 71,701 | ||
Beginning Balance at Dec. 31, 2021 | 6,054 | 23,635 | (2,799) | 37,847 | 6,964 | 71,701 | ||
Net income | 4,048 | 4,048 | ||||||
Other comprehensive loss | (14,774) | (14,774) | ||||||
Cash dividends - per share | (2,726) | (2,726) | ||||||
Repurchase of common stock | (768) | (768) | ||||||
Deferred compensation plan activity | 51 | (51) | ||||||
Expense/shares repurchase related to share-based compensation plans | (10) | 842 | 832 | |||||
Ending Balance at Jun. 30, 2022 | 6,044 | 24,528 | (3,618) | 39,169 | (7,810) | 58,313 | ||
Cumulative effect of adoption of ASU 2016-13 | 6,054 | 24,457 | (3,641) | 37,815 | (784) | 63,901 | ||
Beginning Balance at Mar. 31, 2022 | 6,054 | 24,457 | (3,641) | 37,815 | (784) | 63,901 | ||
Net income | 2,297 | 2,297 | ||||||
Other comprehensive loss | (7,026) | (7,026) | ||||||
Cash dividends - per share | (943) | (943) | ||||||
Deferred compensation plan activity | (23) | 23 | ||||||
Expense/shares repurchase related to share-based compensation plans | (10) | 94 | 84 | |||||
Ending Balance at Jun. 30, 2022 | 6,044 | 24,528 | (3,618) | 39,169 | (7,810) | 58,313 | ||
Cumulative effect of adoption of ASU 2016-13 | 6,044 | 24,528 | (3,618) | 39,169 | (7,810) | 58,313 | ||
Cumulative effect of adoption of ASU 2016-13 | 6,044 | 24,814 | (3,730) | 41,945 | (9,336) | 59,737 | ||
Beginning Balance at Dec. 31, 2022 | 6,044 | 24,814 | (3,730) | 41,945 | (9,336) | 59,737 | ||
Net income | 4,168 | 4,168 | ||||||
Other comprehensive loss | (386) | (386) | ||||||
Cash dividends - per share | (2,800) | (2,800) | ||||||
Repurchase of common stock | (2,090) | (2,090) | ||||||
Deferred compensation plan activity | 1 | (1) | ||||||
Expense/shares repurchase related to share-based compensation plans | 513 | 513 | ||||||
Ending Balance at Jun. 30, 2023 | 6,044 | 25,328 | $ 733 | (4,464) | 41,223 | (9,722) | $ 733 | 58,409 |
Cumulative effect of adoption of ASU 2016-13 | 6,044 | 25,172 | (4,376) | 39,895 | (7,730) | 59,005 | ||
Beginning Balance at Mar. 31, 2023 | 6,044 | 25,172 | (4,376) | 39,895 | (7,730) | 59,005 | ||
Net income | 2,280 | 2,280 | ||||||
Other comprehensive loss | (1,992) | (1,992) | ||||||
Cash dividends - per share | (952) | (952) | ||||||
Deferred compensation plan activity | 88 | (88) | ||||||
Expense/shares repurchase related to share-based compensation plans | 68 | 68 | ||||||
Ending Balance at Jun. 30, 2023 | 6,044 | 25,328 | 733 | (4,464) | 41,223 | (9,722) | 733 | 58,409 |
Cumulative effect of adoption of ASU 2016-13 | $ 6,044 | $ 25,328 | $ 733 | $ (4,464) | $ 41,223 | $ (9,722) | $ 733 | $ 58,409 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Stockholders' Equity | ||||
Dividend per share | $ 0.1650 | $ 0.1550 | $ 0.4775 | $ 0.4575 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Operating Activities | |||||
Net income | $ 2,280 | $ 2,297 | $ 4,168 | $ 4,048 | |
Items not requiring (providing) cash | |||||
Accretion of premiums and discounts on securities, net | 267 | 255 | |||
Amortization of intangible asset | 75 | 75 | |||
Depreciation and amortization | 493 | 523 | |||
Expense related to share based compensation plans | 513 | 832 | |||
Provision for (reversal of) credit loss expense | (146) | (485) | (146) | (985) | |
Increase in value of bank-owned life insurance | (215) | (84) | |||
Gain on sale of loans | (7) | (15) | (7) | (27) | |
Proceeds from sale of loans held for sale | 361 | 1,017 | |||
Originations of loans held for sale | (354) | (990) | |||
Loss on sale or write down of foreclosed assets | 44 | 24 | |||
Amortization of debt instrument costs | 30 | 30 | |||
Net change in accrued interest receivable and other assets | (1,317) | (1,467) | |||
Net change in accrued expenses and other liabilities | (282) | (882) | |||
Net cash provided by operating activities | 3,630 | 2,369 | |||
Investing Activities | |||||
Maturities, prepayments and calls | 260 | 4,540 | |||
Purchases | (19,446) | (67,360) | |||
Net change in loans | (1,525) | (13,012) | |||
Purchase of FHLB stock | (3,149) | ||||
Redemption of Federal Home Loan Bank Stock | 1,669 | ||||
Purchases of premises and equipment | (526) | (360) | |||
Proceeds from sale of foreclosed and fixed assets | 16 | 162 | |||
Net cash used in investing activities | (22,701) | (76,030) | |||
Financing Activities | |||||
Net change in deposits | (6,297) | 2,172 | |||
Net change in securities sold under repurchase agreements | 5,584 | 8,775 | |||
Peoceeds from Federal Home Loan Bank advances | 75,000 | $ 0 | |||
Repurchase of common stock | (733) | (768) | |||
Cash dividends paid on common stock | (2,800) | (2,726) | |||
Net cash provided by financing activities | 70,754 | 7,453 | |||
Increase (Decrease) in Cash and Cash Equivalents | 51,683 | (66,208) | |||
Cash and Cash Equivalents, Beginning of Period | 30,080 | 82,999 | 82,999 | ||
Cash and Cash Equivalents, End of Period | $ 81,763 | $ 16,791 | 81,763 | 16,791 | $ 30,080 |
Supplemental Cash Flows Information | |||||
Interest paid on deposits and borrowings | $ 4,924 | 990 | |||
Federal income taxes paid | $ 300 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies These interim financial statements are prepared without audit and reflect all adjustments which, in the opinion of management, are necessary to present fairly the financial position of United Bancorp, Inc. (“Company”) at June 30, 2023, and its results of operations and cash flows for the interim periods presented. All such adjustments are normal and recurring in nature. The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not purport to contain all the necessary financial disclosures required by accounting principles generally accepted in the United States of America that might otherwise be necessary in the circumstances and should be read in conjunction with the Company’s consolidated financial statements and related notes for the year ended December 31, 2022 included in its Annual Report on Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Consolidated Financial Statements contained in its Annual Report on Form 10-K. The results of operations for the three and six months ended June 30,2023, are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet of the Company as of December 31, 2022 has been derived from the audited consolidated balance sheet of the Company as of that date. Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank”). All intercompany transactions and balances have been eliminated in consolidation. Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties in Ohio and Marshall and Ohio Counties in West Virginia and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Bridgeport, Colerain, Dellroy, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, Powhatan Point, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg, Tiltonsville, Ohio and Moundsville West Virginia. The Company’s primary deposit products are checking, savings and term certificate accounts and its primary lending products are residential mortgage, commercial and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary and fiscal policies, that are outside of management’s control. Revenue Recognition Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers The majority of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans, investment securities, as well as revenue related to mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within the Company’s disclosures. Descriptions of the Company’s revenue-generating activities that are within the scope of ASC 606, which are presented in the income statements as components of non-interest income are as follows: Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ. The allowance for credit losses and fair values of financial instruments are particularly subject to change. Investment Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Investment securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Unrealized gains or losses are reported as increases or decreases in other comprehensive income (loss), net of the deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Allowance for Credit Losses – Available for Sale Securities The Company measures expected credit losses on available-for-sale debt securities when the Company does not intend to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Economic forecast data is utilized to calculate the present value of expected cash flows. The Company utilizes independent firms to evaluate the Company’s State and Municipal Obligations and Subordinated Notes to measure any expected credit losses. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. The allowance for credit losses on available-for-sale debt securities is included within investment securities available-for-sale on the consolidated balance sheet. Changes in the allowance for credit losses are recorded within provision for credit losses on the consolidated statement of income. Losses are charged against the allowance when the Company believes the collectability of an available-for-sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities totaled $2.4 million at June 30, 2023 and is included within the line item accrued interest receivable on the balance sheet on the consolidated balance sheet. This amount is excluded from the estimate of expected credit losses. Available-for-sale debt securities are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available-for-sale debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed. Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for credit losses and any deferred fees or costs. Accrued interest receivable totaled $1.2 million at June 30, 2023 and was reported in the line item accrued interest receivable on the Consolidated Balance Sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is amortizing these amounts over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method. The loans receivable portfolio is segmented into commercial and industrial, which are typically utilized for general business purposes and commercial real estate, which are collaterized by real estate. Homogenouse loans consisting similar products that are smaller in amount and distributed over a large number of individual borrowers include residential real estate and consumer loans. For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest generally is either applied against principal or reported as interest income on a cash basis, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months), and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past-due status of all classes of loans receivable is determined based on contractual due dates for loan payments. Allowance for Credit Losses - Loans The allowance for credit losses (“ACL”) is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company uses the call report classification as its segment breakout and measures the allowance for credit losses using the Weighted Average Remaining Maturity method for all loan segments. Historical credit loss experience is the basis for the estimation of expected credit losses. We apply historical loss rates to pools of loans with similar risk characteristics. After consideration of the historic loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information at the balance sheet date. Our reasonable and supportable forecast adjustment is based on a 2 year unemployment forecast provided by Bloomberg and management judgment. For periods beyond our reasonable and supportable forecast, we revert back to historical annual loss rates for the remainder of the life of each pool after the forecast period. The qualitative adjustments for current conditions are based upon current level of inflation, changes in lending policies and practices, experience and ability of lending staff, quality of the Company’s loan review system, value of underlying collateral, the existence of and changes in concentrations and other external factors. These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. The ACL for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and therefore, should be individually assessed. We evaluate all commercial and industrial loans and residential and installment loans greater than $100,000 that meet the following criteria: 1) when it is determined that foreclosure is probable, 2) substandard, doubtful and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, 3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Specific reserves are established based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral when the loan is collateral dependent. Our individual loan evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are discounted to consider disposition costs when appropriate. A specific reserve is established or a charge-off is taken if the fair value of the loan is less than the loan balance. January 1, 2023 Loan Categories (in thousands) Pre-adoption Adoption Impact As Reported Commercial and Industrial $ 215 $ 755 $ 970 Commercial Real Estate 815 388 1,203 Residential Real Estate 816 1,379 2,195 Consumer 206 (103) 103 $ 2,052 $ 2,419 $ 4,471 Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Earnings Per Share Earnings per share (EPS) were computed as follows: Three Months Ended June 30, 2023 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 2,280 Less allocated earnings on non-vested restricted stock (16) Less allocated dividends on non-vested restricted stock (34) Net income allocated to common stockholders 2,230 5,496,049 Basic and diluted earnings per share $ 0.40 Three Months Ended June 30, 2022 Weighted- Net Average Per Share Income Shares Amount (In thousands) Net income $ 2,297 Less allocated earnings on non-vested restricted stock (40) Less allocated dividends on non-vested restricted stock (23) Net income allocated to common stockholders 2,234 5,484,701 Basic and diluted earnings per share $ 0.40 Six Months Ended June 30, 2023 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 4,168 Less allocated earnings on non-vested restricted stock (115) Less allocated dividends on non-vested restricted stock (94) Net income allocated to common stockholders 3,959 5,490,620 Basic and diluted earnings per share $ 0.73 Six Months Ended June 30, 2022 Weighted- Average Per Share Net Income Shares Amount (In thousands) Net income $ 4,048 Less allocated earnings on non-vested restricted stock (121) Less dividends on non-vested restricted stock (107) Net income allocated to common stockholders 3,820 5,483,282 Basic and diluted earnings per share $ 0.70 Income Taxes The Company is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before 2019. Accounting Pronouncements Adopted in 2023 In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” The Company adopted this guidance, and subsequent related updates, using the modified retrospective approach for all financial assets measured at amortized cost, including loans and available-for-sale debt securities and unfunded commitments. On January 1, 2023, the Company recorded a cumulative effect decrease to retained earnings of $2,088,000, net of tax, of which $1,911,000 related to loans, $177,000 related to unfunded commitments. The Company adopted the provisions of ASC 326 related to presenting other-than-temporary impairment on available-for-sale debt securities prior to January 1, 2023 using the prospective transition approach, though no such charges had been recorded on the securities held by the Company as of the date of adoption. The Company did not change the segmentation from the incurred loss method upon adoption of ASC 326. In January 2023, the Company 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. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty. Instead, these modifications are included in their historical loss rate which is applied to the current loan balance to arrive at the quantitative baseline portion of the Allowance for Credit Losses. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2023 | |
Securities | |
Securities | Note 2: Securities The amortized cost and fair values, together with gross unrealized gains and losses of securities are as follows: Gross Gross Allowance Unrealized Unrealized for Credit Amortized Cost Gains Losses Losses Fair Value (In thousands) Available-for-sale Securities: June 30, 2023: U.S. government agencies $ 45,000 $ — $ (1,350) $ — $ 43,650 State and municipal obligations 171,452 669 (6,561) — 165,560 Subordinated notesState and municipal obligations 31,073 — (4,230) — 26,843 Total debt securities $ 247,525 $ 669 $ (12,141) $ — $ 236,053 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: December 31, 2022: U.S. government agencies $ 45,000 $ — $ (968) $ 44,032 State and municipal obligations 152,447 459 (7,408) 145,498 Subordinated obligations 31,160 — (3,066) 28,094 Total debt securities $ 228,607 $ 459 $ (11,442) $ 217,624 The amortized cost and fair value of available-for-sale securities at June 30, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (In thousands) Under 1 year $ 5,000 $ 4,890 One to five years 42,624 41,111 Five to ten years 31,376 27,325 Over ten years 168,525 162,727 Totals $ 247,525 $ 236,053 The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $71.0 million and $68.7 million at June 30, 2023 and December 31, 2022, respectively. Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at June 30, 2023 was $159.8 million, which represented 68% of the Company’s available-for-sale investment portfolio. The total fair value of these investments at December 31, 2022 was $166.1 million, which represented less than 76% of the Company’s available-for-sale. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary and are a result of an increase in longer term interest rates. The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2023: June 30, 2023 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) U.S. Government agencies $ 14,667 $ (333) $ 28,983 $ (1,017) $ 43,650 $ (1,350) State and municipal obligations 49,406 (356) 46,415 (6,205) 95,821 (6,561) Subordinated notes 2,108 (392) 18,186 (3,838) 20,294 (4,230) Total temporarily impaired securities $ 66,181 $ (1,081) $ 93,584 $ (11,060) $ 159,765 $ (12,141) December 31, 2022 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) US government agencies $ 44,032 $ (968) $ — $ — $ 44,032 $ (968) Subordinated notes 11,185 (1,565) 10,300 (1,501) 21,485 (3,066) State and municipal obligations 100,599 (7,408) — — 100,599 (7,408) Total temporarily impaired securities $ 155,816 $ (9,941) $ 10,300 $ (1,501) $ 166,116 $ (11,442) The unrealized losses on the Company’s 125 investments in available for sale securities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2023. There were no sales of investment securities for the three and six months ended June 30, 2023 and 2022. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2023 | |
Loans and Allowance for Credit Losses | |
Loans and Allowance for Credit Losses | Note 3: Loans and Allowance for Credit Losses Categories of loans include: June 30, December 31, 2023 2022 (In thousands) Commercial and Industrial $ 89,961 $ 90,548 Commercial real estate 274,291 270,312 Residential real estate 92,072 94,012 Consumer loans 6,547 6,003 Total gross loans 462,871 460,875 Less allowance for credit losses (4,281) (2,052) Total loans $ 458,590 $ 458,823 The risk characteristics of each loan portfolio segment are as follows: Commercial and Industrial, and Commercial Real Estate Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans. Residential Real Estate and Consumer Residential real estate and consumer loans consist of two segments - residential mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner-occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Allowance for Credit Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2023 Commercial Commercial Real Estate Residential Consumer Total Allowance for credit losses: Balance, April 1, 2023 $ 990 $ 1,202 $ 2,156 $ 104 $ 4,452 Provision (credit) for credit loss exposure (93) (123) (64) 134 (146) Losses charged off — — — (33) (33) Recoveries 5 — — 3 8 Balance, June 30, 2023 $ 902 $ 1,079 $ 2,092 $ 208 $ 4,281 Balance, January 1, 2023 $ 215 $ 815 $ 816 $ 206 $ 2,052 Impact of adopting ASC 326 755 388 1,379 (103) 2,419 Provision (credit) for credit loss exposure (78) (124) (103) 159 (146) Losses charged off — — — (62) (62) Recoveries 10 — — 8 18 Balance, June 30, 2023 $ 902 $ 1,079 $ 2,092 $ 208 $ 4,281 Allocation: Ending balance: individually evaluated for credit losses $ 99 $ — $ — $ — $ 99 Ending balance: collectively evaluated for credit losses $ 803 $ 1,079 $ 2,092 $ 208 $ 4,182 Loans: Ending balance: individually evaluated for credit losses $ 99 $ — $ — $ — $ 99 Ending balance: collectively evaluated for credit losses $ 89,861 $ 274,291 $ 92,072 $ 6,547 $ 462,871 Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2022 Commercial Commercial Real Estate Residential Consumer Total Allowance for loan losses: Balance, April 1, 2022 $ 648 $ 1,289 $ 959 $ 278 $ 3,174 Provision (credit) charged to expense (151) (70) (145) (119) (485) Losses charged off — — — (39) (39) Recoveries — — — 3 3 Balance, June 30, 2022 $ 497 $ 1,219 $ 814 $ 123 $ 2,653 Balance, January 1, 2022 $ 1,046 $ 1,235 $ 1,121 $ 271 $ 3,673 Provision (credit) charged to expense (571) (16) (307) (91) (985) Losses charged off — — — (74) (74) Recoveries 22 — — 17 39 Balance, June 30, 2022 $ 497 $ 1,219 $ 814 $ 123 $ 2,653 Allocation: Ending balance: individually evaluated for impairment $ — $ 415 $ — $ — $ 415 Ending balance: collectively evaluated for impairment $ 497 $ 804 $ 814 $ 123 $ 2,238 Loans: Ending balance: individually evaluated for impairment $ — $ 3,803 $ — $ — $ 3,803 Ending balance: collectively evaluated for impairment $ 90,891 $ 270,825 $ 95,591 $ 6,279 $ 463,586 Allowance for Loan Losses and Recorded Investment in Loans As of December 31, 2022 Commercial Commercial Real Estate Residential Consumer Total (In thousands) Allowance for loan losses: Ending balance: individually evaluated for impairment $ — $ — $ –– $ –– $ — Ending balance: collectively evaluated for impairment $ 215 $ 815 $ 816 $ 206 $ 2,052 Loans: Ending balance: individually evaluated for impairment $ — $ 57 $ — $ — $ 57 Ending balance: collectively evaluated for impairment $ 90,548 $ 270,255 $ 94,012 $ 6,003 $ 460,875 The following tables show the portfolio quality indicators. Based on the most recent analysis performed, the following table presents the recorded investment in non-homogeneous loans by internal risk rating system as of June 30, 2023 (in thousands): Revolving Revolving Loans Loans Amortized Converted June 30, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Commercial and industrial Risk Rating Pass $ 10,469 $ 17,617 $ 15,589 $ 16,075 $ 7,235 $ 6,790 $ 15,935 $ — $ 89,710 Special Mention — 26 — — — 126 — — 152 Substandard — — — — — — 99 — 99 Doubtful — — — — — — — — — Total $ 10,469 $ 17,643 $ 15,589 $ 16,075 $ 7,235 $ 6,916 $ 16,034 $ — $ 89,961 Commercial and industrial Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Risk Rating Pass $ 5,005 $ 32,710 $ 49,603 $ 25,633 $ 27,749 $ 63,721 $ 65,536 $ — $ 269,957 Special Mention — — — 2,083 — 1,940 245 — 4,268 Substandard — — — — — 66 — — 66 Doubtful — — — — — — — — — Total $ 5,005 $ 32,710 $ 49,603 $ 27,716 $ 27,749 $ 65,727 $ 65,781 $ — $ 274,291 Commercial real estate Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — The Company monitors the credit risk profile by payment activity for residential and consumer loan classes. Loans past due 90 days or more and loans on nonaccrual status are considered nonperforming. Nonperforming loans are reviewed quarterly. The following table presents the amortized cost in residential and consumer loans based on payment activity: Revolving Revolving Loans Loans Amortized Converted June 30, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential Real Estate Payment Performance Performing $ 5,723 $ 19,036 $ 16,863 $ 20,349 $ 6,080 $ 23,828 $ — $ — $ 91,879 Nonperforming — — — — 24 169 — — 193 Total $ 5,723 $ 19,036 $ 16,863 $ 20,349 $ 6,104 $ 23,997 $ — $ — $ 92,072 Residential real estate Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Payment Performance Performing $ 1,529 $ 1,715 $ 852 $ 551 $ 403 $ 1,125 $ 372 $ — $ 6,547 Nonperforming — — — — — — — — — Total $ 1,529 $ 1,715 $ 852 $ 551 $ 403 $ 1,125 $ 372 $ — $ 6,547 Consumer Current period gross charge-offs $ 62 $ — $ — $ — $ — $ — $ — $ — $ 62 Total Payment Performance Performing $ 7,252 $ 20,751 $ 17,715 $ 20,900 $ 6,483 $ 24,953 $ 372 $ — $ 98,426 Nonperforming — — — — 24 169 — — 193 Total $ 7,252 $ 20,751 $ 17,715 $ 20,900 $ 6,507 $ 25,122 $ 372 $ — $ 98,619 December 31, 2022 Commercial Loan Class Commercial Real Estate Residential Consumer Total (In thousands) Pass Grade $ 90,548 $ 262,472 $ 94,012 $ 6,003 $ 453,035 Special Mention — 4,066 — — 4,066 Substandard — 3,774 — — 3,774 Doubtful — — — — — $ 90,548 $ 270,312 $ 94,012 $ 6,003 $ 460,875 To facilitate the monitoring of credit quality within the loan portfolio, and for purposes of analyzing historical loss rates used in the determination of the allowance for credit losses, the Company utilizes the following categories of credit grades: pass, special mention, substandard, and doubtful. The four categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on at least a quarterly basis. The Company assigns a special mention rating to loans that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or the Company’s credit position. The Company assigns a substandard rating to loans that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies noted are not addressed and corrected. The Company assigns a doubtful rating to loans that have all the attributes of a substandard rating 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 possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. The Company evaluates the loan risk grading system definitions and allowance for credit losses methodology on an ongoing basis. No significant changes were made to either during the past year to date period. Loan Portfolio Aging Analysis As of June 30, 2023 30-59 Days 60 ‑ 89 Days Greater Past Due Past Due Than 90 Days Total Past and and and Due and Total Loans Accruing Accruing Accruing Non Accrual Non Accrual Current Receivable (In thousands) Commercial $ 50 $ — $ — $ 99 $ 149 $ 89,812 $ 89,961 Commercial real estate — — — 51 51 274,240 274,291 Residential 154 79 — 248 481 91,591 92,072 Consumer 4 — — — 4 6,543 6,547 Total $ 208 $ 79 $ — $ 398 $ 685 $ 462,186 $ 462,871 Loan Portfolio Aging Analysis As of December 31, 2022 30 ‑ 59 Days 60 ‑ 89 Days Greater Past Due Past Due Than 90 Days Total Past and and and Due and Total Loans Accruing Accruing Accruing Non Accrual Non Accrual Current Receivable (In thousands) Commercial $ 126 $ — $ — $ — $ 126 $ 90,422 $ 90,548 Commercial real estate 158 — — 9 167 270,145 270,312 Residential 102 24 — 173 299 93,713 94,012 Consumer 15 — — — 15 5,988 6,003 Total $ 401 $ 24 $ — $ 182 $ 607 $ 460,268 $ 460,875 Nonperforming Loans The following table present the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest as of June 30, 2023: Loans Past Due Over 90 Days Total Nonaccrual with no ACL Nonaccrual with ACL Total Nonaccrual Still Accruing Nonperforming (In thousands) Commercial $ — $ 99 $ 99 $ — $ 99 Commercial real estate 51 — 51 — 51 Residential 248 — 248 — 248 Consumer — — — — — Total $ 299 $ 99 $ 398 $ — $ 398 The Company did recognized approximately $6,000 interest income on nonaccrual loans during the the period ended June 30, 2023. Impaired Loans For 2022, a loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Impaired Loans For the three months ended For the six months ended As of June 30, 2022 June 30, 2022 June 30, 2022 Unpaid Average Interest Average Interest Recorded Principal Specific Investment in Income Investment in Income Balance Balance Allowance Impaired Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial real estate 2,840 2,840 — 2,844 — 2,841 20 Residential — — — — — — — Consumer — — — — — — — 2,840 2,840 — 2,844 — 2,841 20 Loans with a specific valuation allowance: Commercial — — — — — — — Commercial real estate 963 963 415 983 — 983 — Residential — — — — — — –– Consumer –– –– –– –– –– — — 963 963 415 983 — 983 — Total: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial real estate $ 3,803 $ 3,803 $ 415 $ 3,827 $ — $ 3,824 $ 20 Residential $ — $ — $ — $ — $ — $ — $ — Consumer $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis was not materiality different than interest income recognized. For the TDRs noted in the tables below, the Company extended the maturity dates and granted interest rate concessions as part of each of those loan restructurings. The loans included in the tables are considered impaired and specific loss calculations are performed on the individual loans. In conjunction with the restructuring there were no amounts charged-off. Six Months ended June 30, 2022 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2022 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — During the six months ended June 30, 2022 there were no material defaults of any modified loans or troubled debt restructurings that were modified in the last 12 months. The Company generally considers TDR’s that become 90 days or more past due under the modified terms as subsequently defaulted. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2023 | |
Benefit Plans | |
Benefit Plans | Note 4: Benefit Plans Pension expense includes the following: Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 (In thousands) Service cost $ 76 $ 130 $ 152 $ 260 Interest cost 78 68 156 136 Expected return on assets (133) (144) (266) (288) Amortization (accretion) of prior service cost and net loss (10) 24 (20) 48 Pension expense $ 11 $ 78 $ (22) $ 156 All components of pension expense are reflected within the salaries and employee benefits line of the consolidated income statement. |
Off-balance-sheet Activities
Off-balance-sheet Activities | 6 Months Ended |
Jun. 30, 2023 | |
Off-balance-sheet Activities | |
Off-balance-sheet Activities | Note 5: Off-balance-sheet Activities Some financial instruments, such as loan commitments, credit lines, letters of credit and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contracts are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. A summary of the notional or contractual amounts of financial instruments with off-balance-sheet risk at the indicated dates is as follows: June 30, December 31, 2023 2022 (In thousands) Commercial loans unused lines of credit $ 94,089 $ 79,718 Commitment to originate loans 91,612 77,889 Consumer open end lines of credit 38,312 37,600 Standby lines of credit 261 136 The Company adopted the provisions of ASC 326 and recognized an initial implementation amount of $224,000. During the six months ended June 30, 2023, there was no change in the provision for credit expense for off balance sheet exposure. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 6: Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows: June 30, December 31, 2023 2022 (In thousands) Net unrealized loss on securities available-for-sale $ (11,472) $ (10,984) Net unrealized loss for unfunded status of defined benefit plan liability (835) (835) (12,307) (11,819) Less: Tax effect 2,585 2,483 Net-of-tax amount $ (9,722) $ (9,336) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 7: Fair Value Measurements The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company also utilizes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. The Company’s equity securities are classified within Level 1 of the hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2023 and December 31, 2022: Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2023 U.S. government agencies $ 43,650 $ — $ 43,650 $ — Subordinated Notes 26,843 — 26,843 — State and municipal obligations 165,560 — 165,560 — December 31, 2022 U.S. government agencies $ 44,032 $ — $ 44,032 $ — Subordinated Notes 28,094 — 28,094 — State and municipal obligations 145,498 — 145,498 — Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Collateral Dependent Collateral dependent loans consisted primarily of loans secured by nonresidential real estate. Management has determined fair value measurements on collateral dependent loans primarily through evaluations of appraisals performed. Due to the nature of the valuation inputs, impaired loans are classified within Level 3 of the hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Company’s Chief Lender by comparison to historical results. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value (based on current appraised value) at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Management has determined fair value measurements on other real estate owned primarily through evaluations of appraisals performed, and current and past offers for the other real estate under evaluation. Due to the nature of the valuation inputs, foreclosed assets held for sale are classified within Level 3 of the hierarchy. Appraisals of OREO are obtained when the real estate is acquired and subsequently as deemed necessary by the Company’s Chief lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender and are selected from the list of approved appraisers maintained by management. The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2023 and December 31, 2022. Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2023 Collateral dependent loans $ — $ — $ — $ — Foreclosed assets held for sale 3,475 — — 3,475 December 31, 2022 Collateral dependent loans $ 9 $ — $ — $ 9 Foreclosed assets held for sale 3,519 — — 3,519 Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation Unobservable 6/30/23 Technique Inputs Range (In thousands) Collateral-dependent loans $ — Market comparable properties Comparability adjustments 5% – 10% Foreclosed assets held for sale 3,475 Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation Unobservable 12/31/22 Technique Inputs Range (In thousands) Collateral-dependent loans $ 9 Market comparable properties Comparability adjustments 5% – 10% Foreclosed assets held for sale 3,519 Market comparable properties Marketability discount 10% – 35% There were no significant changes in the valuation techniques used during 2023. The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2023: Financial assets Cash and cash equivalents $ 81,763 $ 81,763 $ — $ — Loans, net of allowance 458,590 — — 436,337 Federal Home Loan Bank stock 3,979 — 3,979 — Accrued interest receivable 3,547 — 3,547 — Financial liabilities Deposits 643,616 — 642,184 — Securities sold under agreements to repurchase 23,690 — 23,690 — Subordinated debentures 23,756 — 21,805 — Advance Federal Home Loan Bank 75,000 — 74,072 — Interest payable 502 — 502 — Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2022: Financial assets Cash and cash equivalents $ 30,080 $ 30,080 $ — $ — Loans, net of allowance 458,823 — — 440,704 Federal Home Loan Bank stock 2,499 — 2,499 — Accrued interest receivable 3,403 — 3,403 — Financial liabilities Deposits 649,913 $ — $ 646,455 $ — Securities sold under agreements to repurchase 18,106 — 18,106 — Subordinated debentures 23,726 — 24,080 — Interest payable 304 — 304 — The following methods and assumptions were used to estimate the fair value of each class of financial instruments. Cash and Cash Equivalents, Accrued Interest Receivable and Federal Home Loan Bank Stock The carrying amounts approximate fair value. Loans Fair values of loans and leases are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Interest Payable The carrying amount approximates fair value. Securities sold under agreements to repurchase, Federal Home Loan Bank Advances and Subordinated Debentures Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Commitments to Originate Loans, Letters of Credit and Lines of Credit The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at June 30, 2023 and December 31, 2022. |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2023 | |
Repurchase Agreements | |
Repurchase Agreements | Note 8: Repurchase Agreements Securities sold under agreements to repurchase (“repurchase agreements”) with customers represent funds deposited by customers, generally on an overnight basis that are collateralized by investment securities owned by the Company. The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) Overnight and Greater than June 30, 2023 Continuous Up to 30 Days 30 ‑ 90 Days 90 Days Total Repurchase Agreements State and municipal obligations $ 23,690 $ — $ — $ — $ 23,690 Total $ 23,690 $ — $ — $ — $ 23,690 Overnight and Greater than December 31, 2022 Continuous Up to 30 Days 30 ‑ 90 Days 90 Days Total Repurchase Agreements State and municipal obligations $ 18,106 $ — $ — $ — $ 18,106 Total $ 18,106 $ — $ — $ — $ 18,106 These borrowings were collateralized with state and municipal obligations with a carrying value of $39.1 million at June 30, 2023 and $38.8 million at December 31, 2022. Declines in the fair value would require the Company to pledge additional securities. |
Core Deposits and Intangible As
Core Deposits and Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Core Deposits and Intangible Assets | |
Core Deposits and Intangible Assets | Note 9: Core Deposits and Intangible Assets The following table shows the changes in the carrying amount of goodwill for June 30, 2023 and December 31, 2022 (in thousands): June 30, December 31, 2023 2022 Balance beginning of year $ 682 $ 682 Additions from acquisition — — Balance, end of period $ 682 $ 682 Intangible assets in the consolidated balance sheets at June 30, 2023 and December 31, 2022 were as follows (in thousands): Six Months Ended June 30, 2023 Year Ended December 31, 2022 Gross Gross Intangible Accumulated Net Intangible Intangible Accumulated Net Intangible Assets Amortization Assets Assets Amortization Assets Core deposit intangibles $ 1,041 706 335 1,041 631 410 The estimated aggregate future amortization expense remaining as of June 30, 2022 is as follows (in thousands): 2023 $ 77 2024 150 2025 108 At each reporting date between annual goodwill impairment tests, the Company considers potential indicators of impairment. At the conclusion of the assessment, the Company determined that as of June 30, 2023 it was more likely than not that the fair value exceeded its carrying values. The Company will continue to monitor the overall economic conditions and any other triggering events or circumstances that may indicate an impairment of goodwill in the future. |
Advances from the Federal Home
Advances from the Federal Home Loan Bank | 6 Months Ended |
Jun. 30, 2023 | |
Advances from the Federal Home Loan Bank | |
Advances from the Federal Home Loan Bank | Note 10: Advances from the Federal Home Loan Bank At June 30, 2023, advance from the Federal Home Loan Bank were $75 million. The Company did not have any advances from the Federal Home Loan Bank at December 31, 2022. At June 30, 2023, required annual payments on Federal Home Loan Bank advances were for year ending December 31, 2026 $20 million (4.39% fixed rate), December 31, 2027 $35 million (4.24% fixed rate) and December 31, 2028 $20 million (4.11% fixed rate). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank”). All intercompany transactions and balances have been eliminated in consolidation. |
Nature of Operations | Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties in Ohio and Marshall and Ohio Counties in West Virginia and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Bridgeport, Colerain, Dellroy, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, Powhatan Point, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg, Tiltonsville, Ohio and Moundsville West Virginia. The Company’s primary deposit products are checking, savings and term certificate accounts and its primary lending products are residential mortgage, commercial and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary and fiscal policies, that are outside of management’s control. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers The majority of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans, investment securities, as well as revenue related to mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within the Company’s disclosures. Descriptions of the Company’s revenue-generating activities that are within the scope of ASC 606, which are presented in the income statements as components of non-interest income are as follows: Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. |
Use of Estimates | Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ. The allowance for credit losses and fair values of financial instruments are particularly subject to change. |
Investment Securities | Investment Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Investment securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Unrealized gains or losses are reported as increases or decreases in other comprehensive income (loss), net of the deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. |
Allowance for Credit Losses - Available for Sale Securities | Allowance for Credit Losses – Available for Sale Securities The Company measures expected credit losses on available-for-sale debt securities when the Company does not intend to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Economic forecast data is utilized to calculate the present value of expected cash flows. The Company utilizes independent firms to evaluate the Company’s State and Municipal Obligations and Subordinated Notes to measure any expected credit losses. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. The allowance for credit losses on available-for-sale debt securities is included within investment securities available-for-sale on the consolidated balance sheet. Changes in the allowance for credit losses are recorded within provision for credit losses on the consolidated statement of income. Losses are charged against the allowance when the Company believes the collectability of an available-for-sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities totaled $2.4 million at June 30, 2023 and is included within the line item accrued interest receivable on the balance sheet on the consolidated balance sheet. This amount is excluded from the estimate of expected credit losses. Available-for-sale debt securities are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available-for-sale debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed. |
Loans | Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for credit losses and any deferred fees or costs. Accrued interest receivable totaled $1.2 million at June 30, 2023 and was reported in the line item accrued interest receivable on the Consolidated Balance Sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is amortizing these amounts over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method. The loans receivable portfolio is segmented into commercial and industrial, which are typically utilized for general business purposes and commercial real estate, which are collaterized by real estate. Homogenouse loans consisting similar products that are smaller in amount and distributed over a large number of individual borrowers include residential real estate and consumer loans. For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest generally is either applied against principal or reported as interest income on a cash basis, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months), and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past-due status of all classes of loans receivable is determined based on contractual due dates for loan payments. |
Allowance for Credit Losses - Loans | Allowance for Credit Losses - Loans The allowance for credit losses (“ACL”) is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company uses the call report classification as its segment breakout and measures the allowance for credit losses using the Weighted Average Remaining Maturity method for all loan segments. Historical credit loss experience is the basis for the estimation of expected credit losses. We apply historical loss rates to pools of loans with similar risk characteristics. After consideration of the historic loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information at the balance sheet date. Our reasonable and supportable forecast adjustment is based on a 2 year unemployment forecast provided by Bloomberg and management judgment. For periods beyond our reasonable and supportable forecast, we revert back to historical annual loss rates for the remainder of the life of each pool after the forecast period. The qualitative adjustments for current conditions are based upon current level of inflation, changes in lending policies and practices, experience and ability of lending staff, quality of the Company’s loan review system, value of underlying collateral, the existence of and changes in concentrations and other external factors. These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve. The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. The ACL for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and therefore, should be individually assessed. We evaluate all commercial and industrial loans and residential and installment loans greater than $100,000 that meet the following criteria: 1) when it is determined that foreclosure is probable, 2) substandard, doubtful and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, 3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Specific reserves are established based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral when the loan is collateral dependent. Our individual loan evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are discounted to consider disposition costs when appropriate. A specific reserve is established or a charge-off is taken if the fair value of the loan is less than the loan balance. January 1, 2023 Loan Categories (in thousands) Pre-adoption Adoption Impact As Reported Commercial and Industrial $ 215 $ 755 $ 970 Commercial Real Estate 815 388 1,203 Residential Real Estate 816 1,379 2,195 Consumer 206 (103) 103 $ 2,052 $ 2,419 $ 4,471 Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. |
Earnings Per Share | Earnings Per Share Earnings per share (EPS) were computed as follows: Three Months Ended June 30, 2023 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 2,280 Less allocated earnings on non-vested restricted stock (16) Less allocated dividends on non-vested restricted stock (34) Net income allocated to common stockholders 2,230 5,496,049 Basic and diluted earnings per share $ 0.40 Three Months Ended June 30, 2022 Weighted- Net Average Per Share Income Shares Amount (In thousands) Net income $ 2,297 Less allocated earnings on non-vested restricted stock (40) Less allocated dividends on non-vested restricted stock (23) Net income allocated to common stockholders 2,234 5,484,701 Basic and diluted earnings per share $ 0.40 Six Months Ended June 30, 2023 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 4,168 Less allocated earnings on non-vested restricted stock (115) Less allocated dividends on non-vested restricted stock (94) Net income allocated to common stockholders 3,959 5,490,620 Basic and diluted earnings per share $ 0.73 Six Months Ended June 30, 2022 Weighted- Average Per Share Net Income Shares Amount (In thousands) Net income $ 4,048 Less allocated earnings on non-vested restricted stock (121) Less dividends on non-vested restricted stock (107) Net income allocated to common stockholders 3,820 5,483,282 Basic and diluted earnings per share $ 0.70 |
Income Taxes | Income Taxes The Company is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before 2019. |
Accounting Pronouncements Adopted in 2023 | Accounting Pronouncements Adopted in 2023 In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” The Company adopted this guidance, and subsequent related updates, using the modified retrospective approach for all financial assets measured at amortized cost, including loans and available-for-sale debt securities and unfunded commitments. On January 1, 2023, the Company recorded a cumulative effect decrease to retained earnings of $2,088,000, net of tax, of which $1,911,000 related to loans, $177,000 related to unfunded commitments. The Company adopted the provisions of ASC 326 related to presenting other-than-temporary impairment on available-for-sale debt securities prior to January 1, 2023 using the prospective transition approach, though no such charges had been recorded on the securities held by the Company as of the date of adoption. The Company did not change the segmentation from the incurred loss method upon adoption of ASC 326. In January 2023, the Company 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. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty. Instead, these modifications are included in their historical loss rate which is applied to the current loan balance to arrive at the quantitative baseline portion of the Allowance for Credit Losses. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Schedule of impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | January 1, 2023 Loan Categories (in thousands) Pre-adoption Adoption Impact As Reported Commercial and Industrial $ 215 $ 755 $ 970 Commercial Real Estate 815 388 1,203 Residential Real Estate 816 1,379 2,195 Consumer 206 (103) 103 $ 2,052 $ 2,419 $ 4,471 |
Schedule of earnings per share | Three Months Ended June 30, 2023 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 2,280 Less allocated earnings on non-vested restricted stock (16) Less allocated dividends on non-vested restricted stock (34) Net income allocated to common stockholders 2,230 5,496,049 Basic and diluted earnings per share $ 0.40 Three Months Ended June 30, 2022 Weighted- Net Average Per Share Income Shares Amount (In thousands) Net income $ 2,297 Less allocated earnings on non-vested restricted stock (40) Less allocated dividends on non-vested restricted stock (23) Net income allocated to common stockholders 2,234 5,484,701 Basic and diluted earnings per share $ 0.40 Six Months Ended June 30, 2023 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 4,168 Less allocated earnings on non-vested restricted stock (115) Less allocated dividends on non-vested restricted stock (94) Net income allocated to common stockholders 3,959 5,490,620 Basic and diluted earnings per share $ 0.73 Six Months Ended June 30, 2022 Weighted- Average Per Share Net Income Shares Amount (In thousands) Net income $ 4,048 Less allocated earnings on non-vested restricted stock (121) Less dividends on non-vested restricted stock (107) Net income allocated to common stockholders 3,820 5,483,282 Basic and diluted earnings per share $ 0.70 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Securities | |
Schedule of amortized cost and fair values, together with gross unrealized gains and losses of securities | Gross Gross Allowance Unrealized Unrealized for Credit Amortized Cost Gains Losses Losses Fair Value (In thousands) Available-for-sale Securities: June 30, 2023: U.S. government agencies $ 45,000 $ — $ (1,350) $ — $ 43,650 State and municipal obligations 171,452 669 (6,561) — 165,560 Subordinated notesState and municipal obligations 31,073 — (4,230) — 26,843 Total debt securities $ 247,525 $ 669 $ (12,141) $ — $ 236,053 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: December 31, 2022: U.S. government agencies $ 45,000 $ — $ (968) $ 44,032 State and municipal obligations 152,447 459 (7,408) 145,498 Subordinated obligations 31,160 — (3,066) 28,094 Total debt securities $ 228,607 $ 459 $ (11,442) $ 217,624 |
Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity | Amortized Fair Cost Value (In thousands) Under 1 year $ 5,000 $ 4,890 One to five years 42,624 41,111 Five to ten years 31,376 27,325 Over ten years 168,525 162,727 Totals $ 247,525 $ 236,053 |
Schedule of investments' gross unrealized losses and fair value, aggregated by investment category and length of time | June 30, 2023 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) U.S. Government agencies $ 14,667 $ (333) $ 28,983 $ (1,017) $ 43,650 $ (1,350) State and municipal obligations 49,406 (356) 46,415 (6,205) 95,821 (6,561) Subordinated notes 2,108 (392) 18,186 (3,838) 20,294 (4,230) Total temporarily impaired securities $ 66,181 $ (1,081) $ 93,584 $ (11,060) $ 159,765 $ (12,141) December 31, 2022 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) US government agencies $ 44,032 $ (968) $ — $ — $ 44,032 $ (968) Subordinated notes 11,185 (1,565) 10,300 (1,501) 21,485 (3,066) State and municipal obligations 100,599 (7,408) — — 100,599 (7,408) Total temporarily impaired securities $ 155,816 $ (9,941) $ 10,300 $ (1,501) $ 166,116 $ (11,442) |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans and Allowance for Credit Losses | |
Schedule of categories of loans | June 30, December 31, 2023 2022 (In thousands) Commercial and Industrial $ 89,961 $ 90,548 Commercial real estate 274,291 270,312 Residential real estate 92,072 94,012 Consumer loans 6,547 6,003 Total gross loans 462,871 460,875 Less allowance for credit losses (4,281) (2,052) Total loans $ 458,590 $ 458,823 |
Schedule of allowance for Credit Losses and Recorded Investment in Loans | Allowance for Credit Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2023 Commercial Commercial Real Estate Residential Consumer Total Allowance for credit losses: Balance, April 1, 2023 $ 990 $ 1,202 $ 2,156 $ 104 $ 4,452 Provision (credit) for credit loss exposure (93) (123) (64) 134 (146) Losses charged off — — — (33) (33) Recoveries 5 — — 3 8 Balance, June 30, 2023 $ 902 $ 1,079 $ 2,092 $ 208 $ 4,281 Balance, January 1, 2023 $ 215 $ 815 $ 816 $ 206 $ 2,052 Impact of adopting ASC 326 755 388 1,379 (103) 2,419 Provision (credit) for credit loss exposure (78) (124) (103) 159 (146) Losses charged off — — — (62) (62) Recoveries 10 — — 8 18 Balance, June 30, 2023 $ 902 $ 1,079 $ 2,092 $ 208 $ 4,281 Allocation: Ending balance: individually evaluated for credit losses $ 99 $ — $ — $ — $ 99 Ending balance: collectively evaluated for credit losses $ 803 $ 1,079 $ 2,092 $ 208 $ 4,182 Loans: Ending balance: individually evaluated for credit losses $ 99 $ — $ — $ — $ 99 Ending balance: collectively evaluated for credit losses $ 89,861 $ 274,291 $ 92,072 $ 6,547 $ 462,871 Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2022 Commercial Commercial Real Estate Residential Consumer Total Allowance for loan losses: Balance, April 1, 2022 $ 648 $ 1,289 $ 959 $ 278 $ 3,174 Provision (credit) charged to expense (151) (70) (145) (119) (485) Losses charged off — — — (39) (39) Recoveries — — — 3 3 Balance, June 30, 2022 $ 497 $ 1,219 $ 814 $ 123 $ 2,653 Balance, January 1, 2022 $ 1,046 $ 1,235 $ 1,121 $ 271 $ 3,673 Provision (credit) charged to expense (571) (16) (307) (91) (985) Losses charged off — — — (74) (74) Recoveries 22 — — 17 39 Balance, June 30, 2022 $ 497 $ 1,219 $ 814 $ 123 $ 2,653 Allocation: Ending balance: individually evaluated for impairment $ — $ 415 $ — $ — $ 415 Ending balance: collectively evaluated for impairment $ 497 $ 804 $ 814 $ 123 $ 2,238 Loans: Ending balance: individually evaluated for impairment $ — $ 3,803 $ — $ — $ 3,803 Ending balance: collectively evaluated for impairment $ 90,891 $ 270,825 $ 95,591 $ 6,279 $ 463,586 Allowance for Loan Losses and Recorded Investment in Loans As of December 31, 2022 Commercial Commercial Real Estate Residential Consumer Total (In thousands) Allowance for loan losses: Ending balance: individually evaluated for impairment $ — $ — $ –– $ –– $ — Ending balance: collectively evaluated for impairment $ 215 $ 815 $ 816 $ 206 $ 2,052 Loans: Ending balance: individually evaluated for impairment $ — $ 57 $ — $ — $ 57 Ending balance: collectively evaluated for impairment $ 90,548 $ 270,255 $ 94,012 $ 6,003 $ 460,875 |
Schedule of portfolio quality indicators | Revolving Revolving Loans Loans Amortized Converted June 30, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Commercial and industrial Risk Rating Pass $ 10,469 $ 17,617 $ 15,589 $ 16,075 $ 7,235 $ 6,790 $ 15,935 $ — $ 89,710 Special Mention — 26 — — — 126 — — 152 Substandard — — — — — — 99 — 99 Doubtful — — — — — — — — — Total $ 10,469 $ 17,643 $ 15,589 $ 16,075 $ 7,235 $ 6,916 $ 16,034 $ — $ 89,961 Commercial and industrial Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Risk Rating Pass $ 5,005 $ 32,710 $ 49,603 $ 25,633 $ 27,749 $ 63,721 $ 65,536 $ — $ 269,957 Special Mention — — — 2,083 — 1,940 245 — 4,268 Substandard — — — — — 66 — — 66 Doubtful — — — — — — — — — Total $ 5,005 $ 32,710 $ 49,603 $ 27,716 $ 27,749 $ 65,727 $ 65,781 $ — $ 274,291 Commercial real estate Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Revolving Revolving Loans Loans Amortized Converted June 30, 2023 2023 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential Real Estate Payment Performance Performing $ 5,723 $ 19,036 $ 16,863 $ 20,349 $ 6,080 $ 23,828 $ — $ — $ 91,879 Nonperforming — — — — 24 169 — — 193 Total $ 5,723 $ 19,036 $ 16,863 $ 20,349 $ 6,104 $ 23,997 $ — $ — $ 92,072 Residential real estate Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Payment Performance Performing $ 1,529 $ 1,715 $ 852 $ 551 $ 403 $ 1,125 $ 372 $ — $ 6,547 Nonperforming — — — — — — — — — Total $ 1,529 $ 1,715 $ 852 $ 551 $ 403 $ 1,125 $ 372 $ — $ 6,547 Consumer Current period gross charge-offs $ 62 $ — $ — $ — $ — $ — $ — $ — $ 62 Total Payment Performance Performing $ 7,252 $ 20,751 $ 17,715 $ 20,900 $ 6,483 $ 24,953 $ 372 $ — $ 98,426 Nonperforming — — — — 24 169 — — 193 Total $ 7,252 $ 20,751 $ 17,715 $ 20,900 $ 6,507 $ 25,122 $ 372 $ — $ 98,619 December 31, 2022 Commercial Loan Class Commercial Real Estate Residential Consumer Total (In thousands) Pass Grade $ 90,548 $ 262,472 $ 94,012 $ 6,003 $ 453,035 Special Mention — 4,066 — — 4,066 Substandard — 3,774 — — 3,774 Doubtful — — — — — $ 90,548 $ 270,312 $ 94,012 $ 6,003 $ 460,875 |
Schedule of loan portfolio aging analysis | Loan Portfolio Aging Analysis As of June 30, 2023 30-59 Days 60 ‑ 89 Days Greater Past Due Past Due Than 90 Days Total Past and and and Due and Total Loans Accruing Accruing Accruing Non Accrual Non Accrual Current Receivable (In thousands) Commercial $ 50 $ — $ — $ 99 $ 149 $ 89,812 $ 89,961 Commercial real estate — — — 51 51 274,240 274,291 Residential 154 79 — 248 481 91,591 92,072 Consumer 4 — — — 4 6,543 6,547 Total $ 208 $ 79 $ — $ 398 $ 685 $ 462,186 $ 462,871 Loan Portfolio Aging Analysis As of December 31, 2022 30 ‑ 59 Days 60 ‑ 89 Days Greater Past Due Past Due Than 90 Days Total Past and and and Due and Total Loans Accruing Accruing Accruing Non Accrual Non Accrual Current Receivable (In thousands) Commercial $ 126 $ — $ — $ — $ 126 $ 90,422 $ 90,548 Commercial real estate 158 — — 9 167 270,145 270,312 Residential 102 24 — 173 299 93,713 94,012 Consumer 15 — — — 15 5,988 6,003 Total $ 401 $ 24 $ — $ 182 $ 607 $ 460,268 $ 460,875 |
Schedule of amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest | The following table present the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest as of June 30, 2023: Loans Past Due Over 90 Days Total Nonaccrual with no ACL Nonaccrual with ACL Total Nonaccrual Still Accruing Nonperforming (In thousands) Commercial $ — $ 99 $ 99 $ — $ 99 Commercial real estate 51 — 51 — 51 Residential 248 — 248 — 248 Consumer — — — — — Total $ 299 $ 99 $ 398 $ — $ 398 |
Schedule of impaired loans | For the three months ended For the six months ended As of June 30, 2022 June 30, 2022 June 30, 2022 Unpaid Average Interest Average Interest Recorded Principal Specific Investment in Income Investment in Income Balance Balance Allowance Impaired Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial real estate 2,840 2,840 — 2,844 — 2,841 20 Residential — — — — — — — Consumer — — — — — — — 2,840 2,840 — 2,844 — 2,841 20 Loans with a specific valuation allowance: Commercial — — — — — — — Commercial real estate 963 963 415 983 — 983 — Residential — — — — — — –– Consumer –– –– –– –– –– — — 963 963 415 983 — 983 — Total: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial real estate $ 3,803 $ 3,803 $ 415 $ 3,827 $ — $ 3,824 $ 20 Residential $ — $ — $ — $ — $ — $ — $ — Consumer $ — $ — $ — $ — $ — $ — $ — |
Schedule of troubled debt restructurings on financing receivables | Six Months ended June 30, 2022 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2022 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Benefit Plans | |
Schedule of pension expense | Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 (In thousands) Service cost $ 76 $ 130 $ 152 $ 260 Interest cost 78 68 156 136 Expected return on assets (133) (144) (266) (288) Amortization (accretion) of prior service cost and net loss (10) 24 (20) 48 Pension expense $ 11 $ 78 $ (22) $ 156 |
Off-balance-sheet Activities (T
Off-balance-sheet Activities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Off-balance-sheet Activities | |
Schedule of the notional or contractual amounts of financial instruments with off-balance-sheet risk | June 30, December 31, 2023 2022 (In thousands) Commercial loans unused lines of credit $ 94,089 $ 79,718 Commitment to originate loans 91,612 77,889 Consumer open end lines of credit 38,312 37,600 Standby lines of credit 261 136 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of components of accumulated other comprehensive income (loss), included in stockholders' equity | June 30, December 31, 2023 2022 (In thousands) Net unrealized loss on securities available-for-sale $ (11,472) $ (10,984) Net unrealized loss for unfunded status of defined benefit plan liability (835) (835) (12,307) (11,819) Less: Tax effect 2,585 2,483 Net-of-tax amount $ (9,722) $ (9,336) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Schedule of fair value measurements of assets recognized in consolidated balance sheets measured at fair value on recurring basis | Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2023 U.S. government agencies $ 43,650 $ — $ 43,650 $ — Subordinated Notes 26,843 — 26,843 — State and municipal obligations 165,560 — 165,560 — December 31, 2022 U.S. government agencies $ 44,032 $ — $ 44,032 $ — Subordinated Notes 28,094 — 28,094 — State and municipal obligations 145,498 — 145,498 — |
Schedule of fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a non-recurring basis | Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2023 Collateral dependent loans $ — $ — $ — $ — Foreclosed assets held for sale 3,475 — — 3,475 December 31, 2022 Collateral dependent loans $ 9 $ — $ — $ 9 Foreclosed assets held for sale 3,519 — — 3,519 |
Schedule of quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements | Fair Value at Valuation Unobservable 6/30/23 Technique Inputs Range (In thousands) Collateral-dependent loans $ — Market comparable properties Comparability adjustments 5% – 10% Foreclosed assets held for sale 3,475 Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation Unobservable 12/31/22 Technique Inputs Range (In thousands) Collateral-dependent loans $ 9 Market comparable properties Comparability adjustments 5% – 10% Foreclosed assets held for sale 3,519 Market comparable properties Marketability discount 10% – 35% |
Schedule of estimated fair values of company's financial instruments | Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2023: Financial assets Cash and cash equivalents $ 81,763 $ 81,763 $ — $ — Loans, net of allowance 458,590 — — 436,337 Federal Home Loan Bank stock 3,979 — 3,979 — Accrued interest receivable 3,547 — 3,547 — Financial liabilities Deposits 643,616 — 642,184 — Securities sold under agreements to repurchase 23,690 — 23,690 — Subordinated debentures 23,756 — 21,805 — Advance Federal Home Loan Bank 75,000 — 74,072 — Interest payable 502 — 502 — Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2022: Financial assets Cash and cash equivalents $ 30,080 $ 30,080 $ — $ — Loans, net of allowance 458,823 — — 440,704 Federal Home Loan Bank stock 2,499 — 2,499 — Accrued interest receivable 3,403 — 3,403 — Financial liabilities Deposits 649,913 $ — $ 646,455 $ — Securities sold under agreements to repurchase 18,106 — 18,106 — Subordinated debentures 23,726 — 24,080 — Interest payable 304 — 304 — |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Repurchase Agreements | |
Schedule of repurchase agreements | Overnight and Greater than June 30, 2023 Continuous Up to 30 Days 30 ‑ 90 Days 90 Days Total Repurchase Agreements State and municipal obligations $ 23,690 $ — $ — $ — $ 23,690 Total $ 23,690 $ — $ — $ — $ 23,690 Overnight and Greater than December 31, 2022 Continuous Up to 30 Days 30 ‑ 90 Days 90 Days Total Repurchase Agreements State and municipal obligations $ 18,106 $ — $ — $ — $ 18,106 Total $ 18,106 $ — $ — $ — $ 18,106 |
Core Deposits and Intangible _2
Core Deposits and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Core Deposits and Intangible Assets | |
Schedule of changes in the carrying amount of goodwill | June 30, December 31, 2023 2022 Balance beginning of year $ 682 $ 682 Additions from acquisition — — Balance, end of period $ 682 $ 682 |
Schedule of intangible assets | Six Months Ended June 30, 2023 Year Ended December 31, 2022 Gross Gross Intangible Accumulated Net Intangible Intangible Accumulated Net Intangible Assets Amortization Assets Assets Amortization Assets Core deposit intangibles $ 1,041 706 335 1,041 631 410 |
Schedule of estimated aggregate future amortization expense for each of the next four years for intangible assets remaining | 2023 $ 77 2024 150 2025 108 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |||
Accrued interest receivable on available-for-sale debt securities | $ 2,400,000 | ||
Accrued interest receivable on loans receivable | 1,200,000 | ||
Amount of loans evaluated for determination of allowance for credit losses | 100,000 | ||
Retained earnings | 41,223,000 | $ 41,945,000 | |
Loans | $ 458,590,000 | $ 458,823,000 | |
Cumulative effect of adoption of ASU 2016-13 | ASU No. 2016-13 | |||
Summary of Significant Accounting Policies | |||
Retained earnings | $ 2,088,000 | ||
Cumulative effect of adoption of ASU 2016-13 | ASU No. 2016-13 | Loans other than unfunded loan commitments | |||
Summary of Significant Accounting Policies | |||
Loans | 1,911,000 | ||
Cumulative effect of adoption of ASU 2016-13 | ASU No. 2016-13 | Unfunded loan commitments | |||
Summary of Significant Accounting Policies | |||
Loans | $ 177,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | $ 4,281 | $ 2,052 | |
ASU No. 2016-13 | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | $ 2,052 | ||
ASU No. 2016-13 | Commercial and Industrial | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | 215 | ||
ASU No. 2016-13 | Commercial Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | 815 | ||
ASU No. 2016-13 | Residential Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | 816 | ||
ASU No. 2016-13 | Consumer | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Less allowance for credit losses | 206 | ||
ASU No. 2016-13 | Adoption Impact | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 2,419 | ||
ASU No. 2016-13 | Adoption Impact | Commercial and Industrial | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 755 | ||
ASU No. 2016-13 | Adoption Impact | Commercial Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 388 | ||
ASU No. 2016-13 | Adoption Impact | Residential Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 1,379 | ||
ASU No. 2016-13 | Adoption Impact | Consumer | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | (103) | ||
ASU No. 2016-13 | As Reported | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 4,471 | ||
ASU No. 2016-13 | As Reported | Commercial and Industrial | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 970 | ||
ASU No. 2016-13 | As Reported | Commercial Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 1,203 | ||
ASU No. 2016-13 | As Reported | Residential Real Estate | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | 2,195 | ||
ASU No. 2016-13 | As Reported | Consumer | |||
Impact of adoption of ASU 2016-13 on allowance for credit Losses on loans | |||
Loans, allowance for credit losses | $ 103 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share | ||||
Net income | $ 2,280 | $ 2,297 | $ 4,168 | $ 4,048 |
Less allocated earnings on non-vested restricted stock | (16) | (40) | (115) | (121) |
Less allocated dividends on non-vested restricted stock | (34) | (23) | (94) | (107) |
Net income allocated to common stockholders | $ 2,230 | $ 2,234 | $ 3,959 | $ 3,820 |
Weighted Average Shares Outstanding, Basic | 5,496,049 | 5,484,701 | 5,490,620 | 5,483,282 |
Weighted Average Shares Outstanding, Diluted | 5,496,049 | 5,484,701 | 5,490,620 | 5,483,282 |
Basic earnings per share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.73 | $ 0.70 |
Diluted earnings per share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.73 | $ 0.70 |
Securities - Amortized cost and
Securities - Amortized cost and fair values, together with gross unrealized gains and losses of securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Securities | ||
Amortized Cost | $ 247,525 | |
Amortized cost | 247,525 | $ 228,607 |
Gross Unrealized Gains | 669 | 459 |
Gross Unrealized Losses | (12,141) | (11,442) |
Allowance for Credit Losses | 0 | |
Fair Value | 236,053 | 217,624 |
U.S. government agencies | ||
Securities | ||
Amortized Cost | 45,000 | |
Amortized cost | 45,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1,350) | (968) |
Fair Value | 43,650 | 44,032 |
State and municipal obligations | ||
Securities | ||
Amortized Cost | 171,452 | |
Amortized cost | 152,447 | |
Gross Unrealized Gains | 669 | 459 |
Gross Unrealized Losses | (6,561) | (7,408) |
Fair Value | 165,560 | 145,498 |
Subordinated Notes | ||
Securities | ||
Amortized Cost | 31,073 | |
Amortized cost | 31,160 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (4,230) | (3,066) |
Fair Value | $ 26,843 | $ 28,094 |
Securities - Schedule of amorti
Securities - Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available-for-sale, Amortized Cost | ||
Under 1 year | $ 5,000 | |
One to five years | 42,624 | |
Five to ten year | 31,376 | |
Over ten years | 168,525 | |
Totals | 247,525 | $ 228,607 |
Available-for-sale, Fair Value | ||
Within one year | 4,890 | |
One to five years | 41,111 | |
Five to ten year | 27,325 | |
Over ten years | 162,727 | |
Totals | $ 236,053 | $ 217,624 |
Securities - Schedule of compan
Securities - Schedule of company's investments' gross unrealized losses and fair value, aggregated by investment category and length of time (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Securities | ||
Less than 12 Months, Fair Value | $ 66,181 | $ 155,816 |
Less than 12 Months, Unrealized Losses | (1,081) | (9,941) |
12 Months or More, Fair Value | 93,584 | 10,300 |
12 Months or More, Unrealized Losses | (11,060) | (1,501) |
Total, Fair Value | 159,765 | 166,116 |
Total, Unrealized Losses | (12,141) | (11,442) |
U.S. government agencies | ||
Securities | ||
Less than 12 Months, Fair Value | 14,667 | 44,032 |
Less than 12 Months, Unrealized Losses | (333) | (968) |
12 Months or More, Fair Value | 28,983 | 0 |
12 Months or More, Unrealized Losses | (1,017) | 0 |
Total, Fair Value | 43,650 | 44,032 |
Total, Unrealized Losses | (1,350) | (968) |
State and municipal obligations | ||
Securities | ||
Less than 12 Months, Fair Value | 49,406 | 100,599 |
Less than 12 Months, Unrealized Losses | (356) | (7,408) |
12 Months or More, Fair Value | 46,415 | 0 |
12 Months or More, Unrealized Losses | (6,205) | 0 |
Total, Fair Value | 95,821 | 100,599 |
Total, Unrealized Losses | (6,561) | (7,408) |
Subordinated Notes | ||
Securities | ||
Less than 12 Months, Fair Value | 2,108 | 11,185 |
Less than 12 Months, Unrealized Losses | (392) | (1,565) |
12 Months or More, Fair Value | 18,186 | 10,300 |
12 Months or More, Unrealized Losses | (3,838) | (1,501) |
Total, Fair Value | 20,294 | 21,485 |
Total, Unrealized Losses | $ (4,230) | $ (3,066) |
Securities - Additional Informa
Securities - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jan. 31, 2023 item | Dec. 31, 2022 USD ($) | |
Securities | ||||||
Carrying value of securities pledged | $ 71,000 | $ 71,000 | $ 68,700 | |||
Fair value of investment in debt securities | $ 159,800 | $ 159,800 | $ 166,100 | |||
Percentage of fair value of investment in debt | 68% | 68% | 76% | |||
Gain on sale of securities | $ 0 | $ 0 | $ 0 | $ 0 | ||
Number of investments in available for sale securities | item | 125 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Schedule of Categories of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Categories of loans | ||
Total gross loans | $ 462,871 | $ 460,875 |
Less allowance for credit losses | (4,281) | (2,052) |
Total loans | 458,590 | 458,823 |
Commercial and Industrial | ||
Categories of loans | ||
Total gross loans | 89,961 | 90,548 |
Commercial Real Estate | ||
Categories of loans | ||
Total gross loans | 274,291 | 270,312 |
Residential real estate | ||
Categories of loans | ||
Total gross loans | 92,072 | 94,012 |
Consumer loans | ||
Categories of loans | ||
Total gross loans | $ 6,547 | $ 6,003 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Schedule of Allowance for Credit Losses and Recorded Investment in Loans (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 | |
Allowance for credit losses: | |||||
Balance, beginning of period | $ 4,452 | $ 3,174 | $ 2,052 | $ 3,673 | |
Impact of adopting ASC 326 | 4,281 | 2,653 | 4,281 | 2,653 | $ 2,052 |
Provision (credit) for credit loss exposure | (146) | (485) | (146) | (985) | |
Losses charged off | (33) | (39) | (62) | (74) | |
Recoveries | 8 | 3 | 18 | 39 | |
Balance, end of period | 4,281 | 2,653 | 4,281 | 2,653 | |
Allocation: | |||||
Ending balance: individually evaluated for credit losses | 99 | 415 | 99 | 415 | |
Ending balance: collectively evaluated for credit losses | 4,182 | 2,238 | 4,182 | 2,238 | 2,052 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 99 | 3,803 | 99 | 3,803 | 57 |
Ending balance: collectively evaluated for impairment | 462,871 | 463,586 | 462,871 | 463,586 | 460,875 |
ASU No. 2016-13 | Adoption Impact | |||||
Allowance for credit losses: | |||||
Impact of adopting ASC 326 | 2,419 | 2,419 | |||
Balance, end of period | 2,419 | 2,419 | |||
Commercial | |||||
Allowance for credit losses: | |||||
Balance, beginning of period | 990 | 648 | 215 | 1,046 | |
Impact of adopting ASC 326 | 902 | 497 | 902 | 497 | 215 |
Provision (credit) for credit loss exposure | (93) | (151) | (78) | (571) | |
Recoveries | 5 | 10 | 22 | ||
Balance, end of period | 902 | 497 | 902 | 497 | |
Allocation: | |||||
Ending balance: individually evaluated for credit losses | 99 | 99 | |||
Ending balance: collectively evaluated for credit losses | 803 | 497 | 803 | 497 | 215 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 99 | 99 | |||
Ending balance: collectively evaluated for impairment | 89,861 | 90,891 | 89,861 | 90,891 | 90,548 |
Commercial | ASU No. 2016-13 | Adoption Impact | |||||
Allowance for credit losses: | |||||
Impact of adopting ASC 326 | 755 | 755 | |||
Balance, end of period | 755 | 755 | |||
Commercial Real Estate | |||||
Allowance for credit losses: | |||||
Balance, beginning of period | 1,202 | 1,289 | 815 | 1,235 | |
Impact of adopting ASC 326 | 1,079 | 1,219 | 1,079 | 1,219 | 815 |
Provision (credit) for credit loss exposure | (123) | (70) | (124) | (16) | |
Balance, end of period | 1,079 | 1,219 | 1,079 | 1,219 | |
Allocation: | |||||
Ending balance: individually evaluated for credit losses | 415 | 415 | 0 | ||
Ending balance: collectively evaluated for credit losses | 1,079 | 804 | 1,079 | 804 | 815 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 3,803 | 3,803 | 57 | ||
Ending balance: collectively evaluated for impairment | 274,291 | 270,825 | 274,291 | 270,825 | 270,255 |
Commercial Real Estate | ASU No. 2016-13 | Adoption Impact | |||||
Allowance for credit losses: | |||||
Impact of adopting ASC 326 | 388 | 388 | |||
Balance, end of period | 388 | 388 | |||
Residential | |||||
Allowance for credit losses: | |||||
Balance, beginning of period | 2,156 | 959 | 816 | 1,121 | |
Impact of adopting ASC 326 | 2,092 | 814 | 2,092 | 814 | 816 |
Provision (credit) for credit loss exposure | (64) | (145) | (103) | (307) | |
Balance, end of period | 2,092 | 814 | 2,092 | 814 | |
Allocation: | |||||
Ending balance: collectively evaluated for credit losses | 2,092 | 814 | 2,092 | 814 | 816 |
Loans: | |||||
Ending balance: collectively evaluated for impairment | 92,072 | 95,591 | 92,072 | 95,591 | 94,012 |
Residential | ASU No. 2016-13 | Adoption Impact | |||||
Allowance for credit losses: | |||||
Impact of adopting ASC 326 | 1,379 | 1,379 | |||
Balance, end of period | 1,379 | 1,379 | |||
Consumer | |||||
Allowance for credit losses: | |||||
Balance, beginning of period | 104 | 278 | 206 | 271 | |
Impact of adopting ASC 326 | 208 | 123 | 208 | 123 | 206 |
Provision (credit) for credit loss exposure | 134 | (119) | 159 | (91) | |
Losses charged off | (33) | (39) | (62) | (74) | |
Recoveries | 3 | 3 | 8 | 17 | |
Balance, end of period | 208 | 123 | 208 | 123 | |
Allocation: | |||||
Ending balance: collectively evaluated for credit losses | 208 | 123 | 208 | 123 | 206 |
Loans: | |||||
Ending balance: collectively evaluated for impairment | 6,547 | $ 6,279 | 6,547 | $ 6,279 | $ 6,003 |
Consumer | ASU No. 2016-13 | Adoption Impact | |||||
Allowance for credit losses: | |||||
Impact of adopting ASC 326 | (103) | (103) | |||
Balance, end of period | $ (103) | $ (103) |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Schedule of Portfolio Quality Indicators (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 | |
Loans and Allowance for Loan Losses | |||||
Total | $ 460,875 | ||||
Total gross loans | |||||
2023 | $ 7,252 | $ 7,252 | |||
2022 | 20,751 | 20,751 | |||
2021 | 17,715 | 17,715 | |||
2020 | 20,900 | 20,900 | |||
2019 | 6,507 | 6,507 | |||
Prior | 25,122 | 25,122 | |||
Revolving Loans Amortized Cost Basis | 372 | 372 | |||
Total | 462,871 | 462,871 | 460,875 | ||
Current period gross charge-offs | |||||
Total | 33 | $ 39 | 62 | $ 74 | |
Total | 98,619 | 98,619 | |||
Performing | |||||
Total gross loans | |||||
2023 | 7,252 | 7,252 | |||
2022 | 20,751 | 20,751 | |||
2021 | 17,715 | 17,715 | |||
2020 | 20,900 | 20,900 | |||
2019 | 6,483 | 6,483 | |||
Prior | 24,953 | 24,953 | |||
Revolving Loans Amortized Cost Basis | 372 | 372 | |||
Total | 98,426 | 98,426 | |||
Nonperforming | |||||
Total gross loans | |||||
2019 | 24 | 24 | |||
Prior | 169 | 169 | |||
Total | 193 | 193 | |||
Commercial and Industrial | |||||
Total gross loans | |||||
2023 | 5,723 | 5,723 | |||
2022 | 19,036 | 19,036 | |||
2021 | 16,863 | 16,863 | |||
2020 | 20,349 | 20,349 | |||
2019 | 6,104 | 6,104 | |||
Prior | 23,997 | 23,997 | |||
Total | 92,072 | 92,072 | |||
Commercial and Industrial | |||||
Loans and Allowance for Loan Losses | |||||
Total | 90,548 | ||||
Total gross loans | |||||
2023 | 10,469 | 10,469 | |||
2022 | 17,643 | 17,643 | |||
2021 | 15,589 | 15,589 | |||
2020 | 16,075 | 16,075 | |||
2019 | 7,235 | 7,235 | |||
Prior | 6,916 | 6,916 | |||
Revolving Loans Amortized Cost Basis | 16,034 | 16,034 | |||
Total | 89,961 | 89,961 | 90,548 | ||
Commercial Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total | 270,312 | ||||
Total gross loans | |||||
2023 | 5,005 | 5,005 | |||
2022 | 32,710 | 32,710 | |||
2021 | 49,603 | 49,603 | |||
2020 | 27,716 | 27,716 | |||
2019 | 27,749 | 27,749 | |||
Prior | 65,727 | 65,727 | |||
Revolving Loans Amortized Cost Basis | 65,781 | 65,781 | |||
Total | 274,291 | 274,291 | 270,312 | ||
Residential Real Estate and Consumer, Total | |||||
Total gross loans | |||||
2023 | 1,529 | 1,529 | |||
2022 | 1,715 | 1,715 | |||
2021 | 852 | 852 | |||
2020 | 551 | 551 | |||
2019 | 403 | 403 | |||
Prior | 1,125 | 1,125 | |||
Revolving Loans Amortized Cost Basis | 372 | 372 | |||
Total | 6,547 | 6,547 | |||
Residential | |||||
Loans and Allowance for Loan Losses | |||||
Total | 94,012 | ||||
Total gross loans | |||||
Total | 92,072 | 92,072 | 94,012 | ||
Residential | Performing | |||||
Total gross loans | |||||
2023 | 5,723 | 5,723 | |||
2022 | 19,036 | 19,036 | |||
2021 | 16,863 | 16,863 | |||
2020 | 20,349 | 20,349 | |||
2019 | 6,080 | 6,080 | |||
Prior | 23,828 | 23,828 | |||
Total | 91,879 | 91,879 | |||
Residential | Nonperforming | |||||
Total gross loans | |||||
2019 | 24 | 24 | |||
Prior | 169 | 169 | |||
Total | 193 | 193 | |||
Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Total | 6,003 | ||||
Total gross loans | |||||
Total | 6,547 | 6,547 | 6,003 | ||
Current period gross charge-offs | |||||
2023 | 62 | ||||
Total | 33 | $ 39 | 62 | $ 74 | |
Consumer | Performing | |||||
Total gross loans | |||||
2023 | 1,529 | 1,529 | |||
2022 | 1,715 | 1,715 | |||
2021 | 852 | 852 | |||
2020 | 551 | 551 | |||
2019 | 403 | 403 | |||
Prior | 1,125 | 1,125 | |||
Revolving Loans Amortized Cost Basis | 372 | 372 | |||
Total | 6,547 | 6,547 | |||
Pass Grade | |||||
Loans and Allowance for Loan Losses | |||||
Total | 453,035 | ||||
Pass Grade | Commercial and Industrial | |||||
Loans and Allowance for Loan Losses | |||||
Total | 90,548 | ||||
Total gross loans | |||||
2023 | 10,469 | 10,469 | |||
2022 | 17,617 | 17,617 | |||
2021 | 15,589 | 15,589 | |||
2020 | 16,075 | 16,075 | |||
2019 | 7,235 | 7,235 | |||
Prior | 6,790 | 6,790 | |||
Revolving Loans Amortized Cost Basis | 15,935 | 15,935 | |||
Total | 89,710 | 89,710 | |||
Pass Grade | Commercial Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total | 262,472 | ||||
Total gross loans | |||||
2023 | 5,005 | 5,005 | |||
2022 | 32,710 | 32,710 | |||
2021 | 49,603 | 49,603 | |||
2020 | 25,633 | 25,633 | |||
2019 | 27,749 | 27,749 | |||
Prior | 63,721 | 63,721 | |||
Revolving Loans Amortized Cost Basis | 65,536 | 65,536 | |||
Total | 269,957 | 269,957 | |||
Pass Grade | Residential | |||||
Loans and Allowance for Loan Losses | |||||
Total | 94,012 | ||||
Pass Grade | Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Total | 6,003 | ||||
Special Mention | |||||
Loans and Allowance for Loan Losses | |||||
Total | 4,066 | ||||
Special Mention | Commercial and Industrial | |||||
Total gross loans | |||||
2022 | 26 | 26 | |||
Prior | 126 | 126 | |||
Total | 152 | 152 | |||
Special Mention | Commercial Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total | 4,066 | ||||
Total gross loans | |||||
2020 | 2,083 | 2,083 | |||
Prior | 1,940 | 1,940 | |||
Revolving Loans Amortized Cost Basis | 245 | 245 | |||
Total | 4,268 | 4,268 | |||
Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total | 3,774 | ||||
Substandard | Commercial and Industrial | |||||
Total gross loans | |||||
Revolving Loans Amortized Cost Basis | 99 | 99 | |||
Total | 99 | 99 | |||
Substandard | Commercial Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total | $ 3,774 | ||||
Total gross loans | |||||
Prior | 66 | 66 | |||
Total | $ 66 | $ 66 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Schedule of Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Loans and Allowance for Loan Losses | ||
Non Accrual | $ 182 | |
Total Loans Receivable | 460,875 | |
Non Accrual | $ 398 | |
Total gross loans | 462,871 | 460,875 |
Interest income on nonaccrual loans | 6,000 | |
30 to 59 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 401 | |
Total gross loans | 208 | |
60 to 89 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 24 | |
Total gross loans | 79 | |
Greater Than 90 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 0 | |
Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 607 | |
Total gross loans | 685 | |
Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 460,268 | |
Total gross loans | 462,186 | |
Commercial | ||
Loans and Allowance for Loan Losses | ||
Non Accrual | 0 | |
Total Loans Receivable | 90,548 | |
Non Accrual | 99 | |
Total gross loans | 89,961 | 90,548 |
Commercial | 30 to 59 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 126 | |
Total gross loans | 50 | |
Commercial | 60 to 89 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 0 | |
Commercial | Greater Than 90 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 0 | |
Commercial | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 126 | |
Total gross loans | 149 | |
Commercial | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 90,422 | |
Total gross loans | 89,812 | |
Commercial Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non Accrual | 9 | |
Total Loans Receivable | 270,312 | |
Non Accrual | 51 | |
Total gross loans | 274,291 | 270,312 |
Commercial Real Estate | 30 to 59 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 158 | |
Total gross loans | 0 | |
Commercial Real Estate | 60 to 89 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 0 | |
Commercial Real Estate | Greater Than 90 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 0 | |
Commercial Real Estate | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 167 | |
Total gross loans | 51 | |
Commercial Real Estate | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 270,145 | |
Total gross loans | 274,240 | |
Residential | ||
Loans and Allowance for Loan Losses | ||
Non Accrual | 173 | |
Total Loans Receivable | 94,012 | |
Non Accrual | 248 | |
Total gross loans | 92,072 | 94,012 |
Residential | 30 to 59 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 102 | |
Total gross loans | 154 | |
Residential | 60 to 89 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 24 | |
Total gross loans | 79 | |
Residential | Greater Than 90 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 0 | |
Residential | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 299 | |
Total gross loans | 481 | |
Residential | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 93,713 | |
Total gross loans | 91,591 | |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Non Accrual | 0 | |
Total Loans Receivable | 6,003 | |
Non Accrual | 0 | |
Total gross loans | 6,547 | 6,003 |
Consumer | 30 to 59 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 15 | |
Total gross loans | 4 | |
Consumer | 60 to 89 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 0 | |
Consumer | Greater Than 90 Days Past Due and Accruing | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 0 | |
Total gross loans | 0 | |
Consumer | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | 15 | |
Total gross loans | 4 | |
Consumer | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Total Loans Receivable | $ 5,988 | |
Total gross loans | $ 6,543 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Recorded Balance | ||||
Recorded balance, loans without a specific valuation allowance | $ 2,840 | |||
Recorded balance, loans with a specific valuation allowance | 963 | |||
Unpaid Principal Balance | ||||
Unpaid principal balance, loans without a specific valuation allowance | 2,840 | |||
Unpaid principal balance, loans with a specific valuation allowance | 963 | |||
Specific Allowance | 415 | |||
Average Investment in Impaired Loans | ||||
Average investment in impaired loans, loans without a specific valuation allowance | $ 2,844 | $ 2,841 | ||
Average investment in impaired loans, loans with a specific valuation allowance | 983 | 983 | ||
Interest Income Recognized | ||||
Interest income recognized, loans without a specific valuation allowance | 20 | |||
Nonaccrual with no ACL | $ 299 | |||
Nonaccrual with ACL | 99 | |||
Total Nonaccrual | 398 | |||
Total Nonperforming | 398 | |||
Commercial and Industrial | ||||
Interest Income Recognized | ||||
Nonaccrual with ACL | 99 | |||
Total Nonaccrual | 99 | |||
Total Nonperforming | 99 | |||
Commercial Real Estate | ||||
Recorded Balance | ||||
Recorded balance, loans without a specific valuation allowance | 2,840 | |||
Recorded balance, loans with a specific valuation allowance | 963 | |||
Recorded balance, total | 3,803 | |||
Unpaid Principal Balance | ||||
Unpaid principal balance, loans without a specific valuation allowance | 2,840 | |||
Unpaid principal balance, loans with a specific valuation allowance | 963 | |||
Unpaid principal balance, total | 3,803 | |||
Specific Allowance | 415 | |||
Average Investment in Impaired Loans | ||||
Average investment in impaired loans, loans without a specific valuation allowance | 2,844 | 2,841 | ||
Average investment in impaired loans, loans with a specific valuation allowance | 983 | 983 | ||
Average investment in impaired loans, total | $ 3,827 | 3,824 | ||
Interest Income Recognized | ||||
Interest income recognized, loans without a specific valuation allowance | 20 | |||
Interest income recognized, total | $ 20 | |||
Nonaccrual with no ACL | 51 | |||
Total Nonaccrual | 51 | |||
Total Nonperforming | 51 | |||
Residential | ||||
Interest Income Recognized | ||||
Nonaccrual with no ACL | 248 | |||
Total Nonaccrual | 248 | |||
Total Nonperforming | 248 | |||
Consumer | ||||
Unpaid Principal Balance | ||||
Specific Allowance | $ 0 | |||
Interest Income Recognized | ||||
Total Nonaccrual | $ 0 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Schedule of Troubled Debt Restructurings on Financing Receivables (Details) - Commercial and Industrial $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) contract | |
Loans and Allowance for Loan Losses | |
Number of Contracts | contract | 0 |
Pre- Modification Outstanding Recorded Investment | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 |
Interest Only | 0 |
Term | 0 |
Combination | 0 |
Total Modification | $ 0 |
Benefit Plans - (Details)
Benefit Plans - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Components of net periodic benefit cost | ||||
Service cost | $ 76 | $ 130 | $ 152 | $ 260 |
Interest cost | 78 | 68 | 156 | 136 |
Expected return on assets | (133) | (144) | (266) | (288) |
Amortization (accretion) of prior service cost and net loss | (10) | 24 | (20) | 48 |
Pension expense | $ 11 | $ 78 | $ (22) | $ 156 |
Off-balance-sheet Activities (D
Off-balance-sheet Activities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASU No. 2016-13 | ||
Off-balance-sheet Activities | ||
Fair value amount of financial instruments with off-balance-sheet risk | $ 0 | |
ASU No. 2016-13 | As Reported | ||
Off-balance-sheet Activities | ||
Fair value amount of financial instruments with off-balance-sheet risk | 224,000 | |
Commercial loans unused lines of credit | ||
Off-balance-sheet Activities | ||
Fair value amount of financial instruments with off-balance-sheet risk | 94,089 | $ 79,718 |
Commitment to originate loans | ||
Off-balance-sheet Activities | ||
Fair value amount of financial instruments with off-balance-sheet risk | 91,612 | 77,889 |
Consumer open end lines of credit | ||
Off-balance-sheet Activities | ||
Fair value amount of financial instruments with off-balance-sheet risk | 38,312 | 37,600 |
Standby lines of credit | ||
Off-balance-sheet Activities | ||
Fair value amount of financial instruments with off-balance-sheet risk | $ 261 | $ 136 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accumulated Other Comprehensive Income (Loss) | ||
Net unrealized loss on securities available-for-sale | $ (11,472) | $ (10,984) |
Net unrealized loss for unfunded status of defined benefit plan liability | (835) | (835) |
Accumulated other comprehensive income (loss), before taxes, total | (12,307) | (11,819) |
Less: Tax effect | 2,585 | 2,483 |
Net-of-tax amount | $ (9,722) | $ (9,336) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | $ 43,650 | $ 44,032 |
Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | 26,843 | 28,094 |
State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | 165,560 | 145,498 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | 43,650 | 44,032 |
Significant Other Observable Inputs (Level 2) | Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | 26,843 | 28,094 |
Significant Other Observable Inputs (Level 2) | State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | 165,560 | 145,498 |
Significant Unobservable Inputs (Level 3) | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Fair Value | $ 0 | $ 0 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring basis - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent loans | $ 0 | $ 9 |
Foreclosed assets held for sale | 3,475 | 3,519 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent loans | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent loans | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent loans | 0 | 9 |
Foreclosed assets held for sale | $ 3,475 | $ 3,519 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Collateral-dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 9 | |
Valuation Technique | Market comparable properties | Market comparable properties |
Unobservable Inputs | Comparability adjustments | Comparability adjustments |
Collateral-dependent loans | Minimum | Market comparable properties | Comparability adjustments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 5% | 5% |
Collateral-dependent loans | Maximum | Market comparable properties | Comparability adjustments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 10% | 10% |
Foreclosed assets held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 3,475 | $ 3,519 |
Valuation Technique | Market comparable properties | Market comparable properties |
Unobservable Inputs | Marketability discount | Marketability discount |
Foreclosed assets held for sale | Minimum | Market comparable properties | Marketability discount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 10% | 10% |
Foreclosed assets held for sale | Maximum | Market comparable properties | Marketability discount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 35% | 35% |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | $ 81,763 | $ 30,080 |
Loans, net of allowance | 458,590 | 458,823 |
Federal Home Loan Bank stock | 3,979 | 2,499 |
Accrued interest receivable | 3,547 | 3,403 |
Financial liabilities | ||
Deposits | 643,616 | 649,913 |
Securities sold under agreements to repurchase | 23,690 | 18,106 |
Subordinated debentures | 23,756 | 23,726 |
Advance Federal Home Loan Bank | 75,000 | |
Interest payable | 502 | 304 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value | ||
Financial assets | ||
Cash and cash equivalents | 81,763 | 30,080 |
Loans, net of allowance | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Subordinated debentures | 0 | 0 |
Advance Federal Home Loan Bank | 0 | |
Interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair value | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Loans, net of allowance | 0 | 0 |
Federal Home Loan Bank stock | 3,979 | 2,499 |
Accrued interest receivable | 3,547 | 3,403 |
Financial liabilities | ||
Deposits | 642,184 | 646,455 |
Securities sold under agreements to repurchase | 23,690 | 18,106 |
Subordinated debentures | 21,805 | 24,080 |
Advance Federal Home Loan Bank | 74,072 | |
Interest payable | 502 | 304 |
Significant Unobservable Inputs (Level 3) | Fair value | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Loans, net of allowance | 436,337 | 440,704 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Subordinated debentures | 0 | 0 |
Advance Federal Home Loan Bank | 0 | |
Interest payable | $ 0 | $ 0 |
Repurchase Agreements - Remaini
Repurchase Agreements - Remaining Contractual Maturity of the Agreement (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Borrowings | ||
Securities sold under agreements to repurchase | $ 23,690 | $ 18,106 |
State and municipal obligations | ||
Borrowings | ||
Securities sold under agreements to repurchase | 23,690 | 18,106 |
Overnight and Continuous | ||
Borrowings | ||
Securities sold under agreements to repurchase | 23,690 | 18,106 |
Overnight and Continuous | State and municipal obligations | ||
Borrowings | ||
Securities sold under agreements to repurchase | 23,690 | 18,106 |
Up to 30 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | 0 |
Up to 30 Days | State and municipal obligations | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | 0 |
30-90 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | 0 |
30-90 Days | State and municipal obligations | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | 0 |
Greater than 90 Days | ||
Borrowings | ||
Securities sold under agreements to repurchase | 0 | 0 |
Greater than 90 Days | State and municipal obligations | ||
Borrowings | ||
Securities sold under agreements to repurchase | $ 0 | $ 0 |
Repurchase Agreements - Additio
Repurchase Agreements - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
State and municipal obligations | ||
Repurchase agreements borrowings | $ 39.1 | $ 38.8 |
Core Deposits and Intangible _3
Core Deposits and Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Changes in the carrying amount of goodwill | ||
Balance beginning of year | $ 682 | $ 682 |
Additions from acquisition | 0 | 0 |
Balance, end of period | $ 682 | $ 682 |
Core Deposits and Intangible _4
Core Deposits and Intangible Assets - Intangible assets (Details) - Core deposit intangibles - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Intangible assets | ||
Gross Intangible Assets | $ 1,041 | $ 1,041 |
Accumulated Amortization | 706 | 631 |
Net Intangible Assets | $ 335 | $ 410 |
Core Deposits and Intangible _5
Core Deposits and Intangible Assets - Future amortization expense (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Estimated aggregate future amortization expense | |
2023 | $ 77 |
2024 | 150 |
2025 | $ 108 |
Advances from the Federal Hom_2
Advances from the Federal Home Loan Bank (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Advances from the Federal Home Loan Bank | ||
Proceeds from advance from the Federal Home Loan Bank | $ 75,000 | $ 0 |
Required annual payments, for year ending December 31, 2026 | $ 20,000 | |
Fixed interest rate, for year ending December 31, 2026 | 4.39% | |
Required annual payments, for year ending December 31, 2027 | $ 35,000 | |
Fixed interest rate, for year ending December 31, 2027 | 4.24% | |
Required annual payments, for year ending December 31, 2028 | $ 20,000 | |
Fixed interest rate, for year ending December 31, 2028 | 4.11% |