Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 28, 2024 | Jun. 30, 2023 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-21344 | ||
Document Period End Date | Dec. 31, 2023 | ||
Entity Registrant Name | FIRST KEYSTONE CORPORATION | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-2249083 | ||
Entity Address, Address Line One | 111 West Front Street | ||
Entity Address, City or Town | Berwick | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 18603 | ||
City Area Code | 570 | ||
Local Phone Number | 752-3671 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 102,550,198 | ||
Title of 12(g) Security | Common Stock, par value $2.00 per share | ||
Entity Common Stock, Shares Outstanding | 6,019,152 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Name | Baker Tilly US, LLP | ||
Auditor Firm ID | 23 | ||
Auditor Location | Iselin, New Jersey | ||
Entity Small Business | true | ||
Entity Central Index Key | 0000737875 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 9,462,000 | $ 9,441,000 |
Interest-bearing deposits in other banks | 7,551,000 | 1,297,000 |
Total cash and cash equivalents | 17,013,000 | 10,738,000 |
Debt securities available-for-sale, at fair value | 392,968,000 | 373,444,000 |
Marketable equity securities, at fair value | 1,482,000 | 1,699,000 |
Restricted investment in bank stocks, at cost | 10,885,000 | 7,136,000 |
Loans | 910,864,000 | 858,398,000 |
Loans held for sale | 214,000 | 71,000 |
Allowance for credit losses | (6,925,000) | (8,274,000) |
Net loans | 904,153,000 | 850,195,000 |
Premises and equipment, net | 19,611,000 | 19,024,000 |
Operating lease right-of-use assets | 1,472,000 | 1,541,000 |
Accrued interest receivable | 5,201,000 | 4,391,000 |
Cash surrender value of bank owned life insurance | 26,010,000 | 25,389,000 |
Investments in low-income housing partnerships | 5,961,000 | 3,763,000 |
Goodwill | 19,133,000 | 19,133,000 |
Deferred income taxes | 8,695,000 | 9,129,000 |
Other assets | 3,286,000 | 3,612,000 |
TOTAL ASSETS | 1,415,870,000 | 1,329,194,000 |
LIABILITIES | ||
Non-interest bearing | 198,569,000 | 231,754,000 |
Interest bearing | 781,870,000 | 761,745,000 |
Total deposits | 980,439,000 | 993,499,000 |
Short-term borrowings | 153,468,000 | 153,418,000 |
Long-term borrowings | 122,000,000 | 25,000,000 |
Subordinated debentures | 25,000,000 | 25,000,000 |
Operating lease liabilities | 1,976,000 | 2,029,000 |
Accrued interest payable | 2,823,000 | 563,000 |
Other liabilities | 8,549,000 | 9,299,000 |
TOTAL LIABILITIES | 1,294,255,000 | 1,208,808,000 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $2.00 per share; authorized 1,000,000 shares as of December 31, 2023 and December 31, 2022; issued 0 as of December 31, 2023 and December 31, 2022 | 0 | 0 |
Common stock, par value $2.00 per share; authorized 20,000,000 shares as of December 31, 2023 and December 31, 2022; issued 6,322,772 as of December 31, 2023 and 6,352,665 as of December 31, 2022; outstanding 6,091,161 as of December 31, 2023 and 6,121,054 as of December 31, 2022 | 12,705,000 | 12,502,000 |
Surplus | 44,004,000 | 42,439,000 |
Retained earnings | 100,260,000 | 100,712,000 |
Accumulated other comprehensive loss | (29,645,000) | (29,558,000) |
Treasury stock, at cost, 231,611 shares as of December 31, 2023 and December 31, 2022 | (5,709,000) | (5,709,000) |
TOTAL STOCKHOLDERS' EQUITY | 121,615,000 | 120,386,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,415,870,000 | $ 1,329,194,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 2 | $ 2 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 6,322,772 | 6,352,665 |
Common stock, shares outstanding | 6,091,161 | 6,121,054 |
Treasury stock, shares | 231,611 | 231,611 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INTEREST INCOME | ||
Interest and fees on loans | $ 42,747 | $ 35,372 |
Interest and dividend income on securities: | ||
Taxable | 12,311 | 7,394 |
Tax-exempt | 1,166 | 3,312 |
Dividends | 56 | 55 |
Dividend income on restricted investment in bank stocks | 669 | 264 |
Interest on interest-bearing deposits in other banks | 39 | 16 |
Total interest income | 56,988 | 46,413 |
INTEREST EXPENSE | ||
Interest on deposits | 17,108 | 5,259 |
Interest on short-term borrowings | 8,774 | 1,935 |
Interest on long-term borrowings | 896 | 628 |
Interest on subordinated debt | 1,094 | 1,091 |
Total interest expense | 27,872 | 8,913 |
Net interest income | 29,116 | 37,500 |
Credit for credit losses | (217) | (264) |
Net interest income after credit for credit losses | 29,333 | 37,764 |
NON-INTEREST INCOME | ||
Trust department | 931 | 975 |
Service charges and fees | 2,205 | 2,193 |
Increase in cash surrender value of life insurance | 621 | 597 |
ATM fees and debit card income | 2,195 | 2,146 |
Net gains (losses) on sales of mortgage loans | 65 | (7) |
Net securities losses | (118) | (846) |
Other | 257 | 273 |
Total non-interest income | 6,156 | 5,331 |
NON-INTEREST EXPENSE | ||
Salaries and employee benefits | 16,055 | 14,554 |
Occupancy, net | 2,119 | 1,936 |
Furniture and equipment expense | 637 | 594 |
Computer expense | 1,571 | 1,493 |
Professional services | 1,440 | 1,270 |
Pennsylvania shares tax | 861 | 1,238 |
FDIC insurance, net | 703 | 490 |
ATM and debit card fees | 1,146 | 899 |
Data processing fees | 1,304 | 915 |
Advertising | 528 | 389 |
Other | 2,881 | 2,999 |
Total non-interest expense | 29,245 | 26,777 |
Income before income tax expense | 6,244 | 16,318 |
Income tax expense | 684 | 2,294 |
NET INCOME | $ 5,560 | $ 14,024 |
Net income per share: | ||
Basic | $ 0.91 | $ 2.35 |
Diluted | 0.91 | 2.35 |
Dividends per share | $ 1.12 | $ 1.12 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net Income | $ 5,560 | $ 14,024 |
Other comprehensive loss: | ||
Unrealized net holding gains (losses) on debt securities available-for-sale arising during the period, net of income tax expense (benefit) | 3,563 | (37,720) |
Less reclassification adjustment for net (gains) losses included in net income, net of income tax benefit (expense) | (78) | 574 |
Fair value adjustment on derivatives | (3,572) | |
Total other comprehensive loss | (87) | (37,146) |
Total Comprehensive Income (Loss) | $ 5,473 | $ (23,122) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Other Comprehensive loss, Unrealized Holding gain (loss) on Securities Arising During Period, Tax | $ 947 | $ (10,027) |
Other Comprehensive loss, Reclassification Adjustment from AOCI for Sale of Securities, Tax | (21) | 153 |
Other Comprehensive Income (Loss), Fair value adjustment on derivatives | $ (950) | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance at Dec. 31, 2021 | $ 12,358 | $ 40,940 | $ 93,378 | $ 7,588 | $ (5,709) | $ 148,555 | ||
Balance (in shares) at Dec. 31, 2021 | 6,178,835 | |||||||
Net Income | 14,024 | 14,024 | ||||||
Other comprehensive loss, net of taxes | (37,146) | (37,146) | ||||||
Issuance of common stock under dividend reinvestment plan | $ 144 | 1,499 | 1,643 | |||||
Issuance of common stock under dividend reinvestment plan (in shares) | 71,928 | |||||||
Dividends | (6,690) | (6,690) | ||||||
Balance at Dec. 31, 2022 | $ 12,502 | 42,439 | $ 768 | 100,712 | (29,558) | (5,709) | $ 768 | 120,386 |
Balance (in shares) at Dec. 31, 2022 | 6,250,763 | |||||||
Net Income | 5,560 | 5,560 | ||||||
Other comprehensive loss, net of taxes | (87) | (87) | ||||||
Issuance of common stock under dividend reinvestment plan | $ 203 | 1,565 | 1,768 | |||||
Issuance of common stock under dividend reinvestment plan (in shares) | 101,902 | |||||||
Dividends | (6,780) | (6,780) | ||||||
Balance at Dec. 31, 2023 | $ 12,705 | $ 44,004 | $ 100,260 | $ (29,645) | $ (5,709) | $ 121,615 | ||
Balance (in shares) at Dec. 31, 2023 | 6,352,665 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Cash dividends, per share | $ 1.12 | $ 1.12 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 5,560,000 | $ 14,024,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Credit for credit losses on loans | (217,000) | (264,000) |
Credit for credit losses on unfunded commitments | (49,000) | (108,000) |
Depreciation and amortization | 798,000 | 1,056,000 |
Net premium amortization on securities | 1,519,000 | 3,008,000 |
Deferred income tax expense | 253,000 | 114,000 |
Common stock issued | 1,754,000 | 1,635,000 |
Net (gains) losses on sales of mortgage loans | (65,000) | 7,000 |
Proceeds from sales of mortgage loans originated for sale | 2,509,000 | 5,678,000 |
Originations of mortgage loans originated for sale | (2,586,000) | (7,846,000) |
Net securities losses | 118,000 | 846,000 |
Increase in accrued interest receivable | (810,000) | (30,000) |
Increase in cash surrender value of bank owned life insurance | (621,000) | (597,000) |
Net losses on disposals of premises and equipment | 19,000 | 16,000 |
Decrease (increase) in other assets | 661,000 | (342,000) |
Amortization of investment in low-income housing partnerships | 231,000 | 225,000 |
Increase in accrued interest payable | 2,260,000 | 312,000 |
(Decrease) increase in other liabilities | (5,429,000) | 429,000 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 5,905,000 | 18,163,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sales of equity securities and debt securities available-for-sale | 23,230,000 | 58,845,000 |
Proceeds from maturities and redemptions of debt securities available-for-sale | 41,700,000 | 51,943,000 |
Purchases of debt securities available-for-sale | (81,463,000) | (91,493,000) |
Net decrease in time deposits with other banks | 0 | 247,000 |
Net change in restricted investment in bank stocks | (3,749,000) | (5,217,000) |
Net increase in loans | (52,480,000) | (103,609,000) |
Purchase of premises and equipment | (1,656,000) | (1,892,000) |
Purchase of investment in real estate venture | (2,415,000) | (2,458,000) |
NET CASH USED IN INVESTING ACTIVITIES | (76,833,000) | (93,634,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net decrease in deposits | (13,060,000) | (84,470,000) |
Net increase in short-term borrowings | 50,000 | 126,041,000 |
Repayment of finance lease obligations | (7,000) | (10,000) |
Proceeds from long-term borrowings | 100,000,000 | 0 |
Repayment of long-term borrowings | (3,000,000) | (10,000,000) |
Dividends paid | (6,780,000) | (6,690,000) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 77,203,000 | 24,871,000 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 6,275,000 | (50,600,000) |
CASH AND CASH EQUIVALENTS, BEGINNING | 10,738,000 | 61,338,000 |
CASH AND CASH EQUIVALENTS, ENDING | 17,013,000 | 10,738,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid | 25,612,000 | 8,601,000 |
Income taxes paid | 318,000 | 2,289,000 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES | ||
Purchased securities settling after year-end | 0 | 5,434,000 |
Loans transferred from held for sale to held for investment portfolio | 0 | (7,900,000) |
Common stock subscription receivable | 14,000 | 8,000 |
Right-of-use assets obtained in exchange for lease liabilities | $ 33,000 | $ 598,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of First Keystone Corporation and Subsidiary (the “Corporation”) are in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to common practices within the banking industry. The significant accounting policies follow: Principles of Consolidation The consolidated financial statements include the accounts of First Keystone Corporation and its wholly-owned subsidiary, First Keystone Community Bank (the “Bank”). All significant inter-company balances and transactions have been eliminated in consolidation. Nature of Operations The Corporation, headquartered in Berwick, Pennsylvania, provides a full range of banking, trust and related services through its wholly-owned Bank subsidiary and is subject to competition from other financial institutions in connection with these services. The Bank serves a customer base which includes individuals, businesses, governments, and public and institutional customers primarily located in the Northeast Region of Pennsylvania. The Bank has 19 full service offices and 20 Automated Teller Machines (“ATM”) located in Columbia, Luzerne, Montour, Monroe, and Northampton counties. The Corporation must also adhere to certain federal and state banking laws and regulations and are subject to periodic examinations made by various state and federal agencies. Segment Reporting The Bank acts as an independent community financial services provider, and offers traditional banking and related financial services to individual, business, government, and public and institutional customers. Through its branch and ATM network, as well as online banking, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of other financial services. The Bank also performs personal, corporate, pension and fiduciary services through its trust department. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, trust and mortgage banking operations of the Corporation. As such, discrete financial information is not available and segment reporting would not be meaningful. Significant Concentrations of Credit Risk The majority of the Corporation’s activities involve customers located primarily in Columbia, Luzerne, Montour, Monroe, Northampton, and Lehigh counties in Pennsylvania. The types of securities in which the Corporation invests are presented in Note 2 – Securities. Credit risk as it relates to investment activities is moderated through the monitoring of ratings, geographic concentrations, etc. residing in the portfolio and the observance of minimum rating levels in the investment policy. Note 3 – Loans and Allowance for Credit Losses summarizes the types of lending in which the Corporation engages. The inherent risks associated with lending activities are mitigated by adhering to established underwriting practices and policies, as well as portfolio diversification and thorough monitoring of the loan portfolio. It is management’s opinion that the investment and loan portfolios were well balanced at December 31, 2023, to the extent necessary to avoid any significant concentrations of credit risk. Use of Estimates The preparation of these consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include the determination of allowance for securities losses, the assessment of possible impairment of equity securities, the determination of the allowance for credit losses, the assessment of goodwill for possible impairment, and the valuation of deferred taxes. Subsequent Events The Corporation has evaluated events and transactions occurring subsequent to the consolidated balance sheet date of December 31, 2023, for items that should potentially be recognized or disclosed in the consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. On February 27, 2024, the Board of Directors declared a dividend of $0.28 per share for the first quarter of 2024. The dividend is payable on March 28, 2024 to shareholders of record as of March 14, 2024. Cash and Cash Equivalents For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and due from banks, interest-bearing deposits in other banks, and federal funds sold. The Corporation considers cash classified as interest-bearing deposits with other banks as a cash equivalent since they are represented by cash accounts essentially on a demand basis and mature within one year. Federal funds are also included as a cash equivalent because they are generally purchased and sold for one-day periods. Debt Securities The Corporation classifies its debt securities as either “Held-to-Maturity” or “Available-for-Sale” at the time of purchase. Debt securities are accounted for on a trade date basis. Debt securities are classified as Held-to-Maturity when the Corporation has the ability and positive intent to hold the securities to maturity. Debt securities classified as Held-to-Maturity are carried at cost adjusted for amortization of premium and accretion of discount to maturity. At December 31, 2023 and 2022, all debt securities held were classified as available-for-sale. Debt securities not classified as Held-to-Maturity are included in the Available-for-Sale category and are carried at fair value. The amount of any unrealized gain or loss, net of the effect of deferred income taxes, is reported as accumulated other comprehensive loss (AOCI) in the consolidated balance sheets and consolidated statements of changes in stockholders’ equity. Management’s decision to sell Available-for-Sale securities is based on changes in economic conditions controlling the sources and applications of funds, terms, availability of and yield of alternative investments, interest rate risk and the need for liquidity. The cost of debt securities classified as Held-to-Maturity or Available-for-Sale is adjusted for amortization of premiums to the earliest call date and accretion of discounts to expected maturity. Such amortization and accretion, as well as interest and dividends, are included in interest and dividend income on securities. Realized gains and losses are included in net securities gains and losses in the consolidated statements of income. The cost of securities sold, redeemed or matured is based on the specific identification method. The Corporation invests in various forms of agency debt including residential and commercial mortgage-backed securities and callable debt. The mortgage-backed agency securities are issued by Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”), Government National Mortgage Association (“GNMA”) or Small Business Administration (“SBA”). The other mortgage-backed securities consist of private (non-agency) residential and commercial mortgage-backed securities. The municipal securities consist of general obligations and revenue bonds. Asset-backed securities consist of private (non-agency) student loan pools backed by the Federal Family Education Loan Program (“FFELP”) which carry a 97% federal government guarantee. Corporate debt securities consist of senior debt and subordinated debt holdings. Available-for-sale debt securities are required to be individually evaluated for impairment in accordance with ASC 326, Financial Instruments – Credit Losses. Management evaluates debt securities for impairment where there has been a decline in fair value below the amortized cost basis of a debt security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the debt security. The credit loss component would be recognized through the provision for credit losses and the creation of an allowance for credit losses. Consideration is given to (1) the financial condition and near-term prospects of the issuer, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) our intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or whether it is more-likely-than-not that we will be required to sell the debt security prior to recovering its fair value, (5) the anticipated outlook for changes in the general level of interest rates, (6) credit ratings, (7) third party guarantees, and (8) collateral values. In analyzing an issuer’s financial condition, management considers whether the debt securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the debt securities. All issues of U.S. Treasury and Agency-Backed debt securities have the full faith and credit backing of the United States Government or one of its agencies. All other debt securities that do not have a zero expected credit loss are evaluated quarterly to determine whether there is a credit loss associated with a decline in fair value. Equity Securities In accordance with ASC 825-10, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. Equity securities without readily determinable fair values are recorded at cost less impairment, if any. Management evaluates equity securities for impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Equity securities without readily determinable fair values are generally evaluated for impairment under FASB ASC 321, Equity Securities. In determining impairment under the FASB ASC 321 model, management considers many factors, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the equity security or more likely than not will be required to sell the equity security before its anticipated recovery. The assessment of whether an impairment exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. If an impairment loss on an equity security is considered to exist, a loss in the amount of the difference between the cost and fair value of the security is recognized. Once the impairment is recorded, this becomes the new cost basis of the equity security and cannot be adjusted upward if there is a subsequent recovery in the fair value of the security. Restricted Investment in Bank Stocks The Corporation owns restricted stock investments in the Federal Home Loan Bank of Pittsburgh (“FHLB-Pittsburgh”) and Atlantic Community Bankers Bank (“ACBB”). These investments do not have a readily determinable fair value because their ownership is restricted and they can be sold back only to the FHLB-Pittsburgh, ACBB or to another member institution. Therefore, these investments are carried at cost. At December 31, 2023, the Corporation held $10,850,000 in stock of FHLB-Pittsburgh and $35,000 in stock of ACBB. At December 31, 2022, the Corporation held $7,101,000 in stock of FHLB-Pittsburgh and $35,000 in stock of ACBB. Management evaluates the restricted investment in bank stocks for impairment on a quarterly basis. Management’s determination of whether these investments are impaired is based on management’s assessment of the ultimate recoverability of the cost of these investments rather than by recognizing temporary declines in value. The following factors were evaluated to determine the ultimate recoverability of the cost of the Corporation’s restricted investment in bank stocks; (i) the significance of the decline in net assets of the correspondent bank as compared to the capital stock amount for the correspondent bank and the length of time this situation has persisted; (ii) commitments by the correspondent bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of the correspondent bank; (iii) the impact of legislative and regulatory changes on the institutions and, accordingly, on the customer base of the correspondent bank; and (iv) the liquidity position of the correspondent bank. Based on the analysis of these factors, management determined that no impairment charge was necessary related to the restricted investment in bank stocks during 2023 or 2022. Loans Net loans are stated at their outstanding recorded investment, net of deferred fees and costs, unearned income The loans receivable portfolio is segmented into the following segments: Real Estate (including both Real Estate Lending The Corporation engages in real estate lending to commercial borrowers in its primary market area and surrounding areas. The commercial component of the Corporation’s Real Estate portfolio is secured primarily by commercial retail space, commercial office buildings, residential housing and hotels. Generally, these loans have terms that do not exceed twenty years , have loan-to-value ratios of up to eighty percent of the value of the collateral property, and are typically supported by personal guarantees of the borrowers. In underwriting these loans, the Corporation performs a thorough analysis of the financial condition of the Real estate loans secured by commercial properties generally present a higher level of risk than loans secured by residential real estate. Repayment of loans secured by commercial real estate is typically dependent upon the The residential component of the Corporation’s Real Estate portfolio is comprised of one-to-four family residential mortgage loan originations, home equity term loans and home equity lines of credit. These loans are generated by the Corporation’s marketing efforts, its present customers, walk-in customers and referrals. These loans are originated primarily with customers from the Corporation’s market area. The Corporation’s one-to-four family residential mortgage originations are secured principally by properties located in its primary market area and surrounding areas. The Corporation offers fixed-rate mortgage loans with terms up to a maximum of thirty years for both permanent structures and those under construction. Loans with terms of thirty years typically have a maximum loan-to-value of eighty percent and a maximum term of fifteen years. In general, home equity In underwriting one-to-four family residential mortgage loans, the Corporation evaluates the borrower’s ability to make monthly payments, the borrower’s prior loan repayment history and the value of the property securing the loan. Residential mortgage loans, home equity term loans and home equity lines of credit generally present a lower Residential mortgage loans held for sale are carried at the lower of cost or market on an aggregate basis determined by independent pricing from appropriate federal or state agency investors. These loans are sold without recourse. Loans held for sale amounted to $214,000 and $71,000 at December 31, 2023 and 2022, respectively. Agricultural Lending The Corporation originates agricultural loans to individuals in the farming industry for funding the production of crops or to purchase or refinance capital assets such as farmland, livestock, machinery, equipment, and farm real estate improvements. Agricultural loans are typical secured by collateral related to the farming activities. These loans originate from customers within the Corporation’s primary market area or the surrounding areas. In underwriting agricultural loans, an analysis is performed regarding the borrower’s ability to repay the loan, Commercial and Industrial Lending The Corporation originates commercial and industrial loans principally to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes, which include short-term loans and lines of credit to finance machinery and equipment, inventory and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and are reviewed annually. Commercial and industrial loans are generally secured with short-term assets; however, in many cases, In underwriting commercial and industrial loans, an analysis is performed to evaluate the borrower’s character and capacity to repay the loan, the adequacy of the borrower’s capital and collateral, as well as the conditions affecting the borrower. Evaluation of the borrower’s past, present and future cash flows is also an important aspect of the Corporation’s analysis of the borrower’s ability to repay. Commercial and industrial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions. Commercial and industrial loans are typically made on the basis of the borrower’s ability to make repayment from cash flows from the borrower’s primary business activities. As a result, the availability of funds for the repayment of commercial and industrial loans is dependent on the success of the business itself, which in turn, is likely to be dependent upon the general economic environment. As an addition to the commercial loans receivable portfolio, the Corporation may purchase the guaranteed portion of loans secured by the U.S. Government. The originating bank retains the unguaranteed portion of the loan. The loans are sponsored by one of the various government agencies including the SBA, United States Department of Agriculture (“USDA”), and the Farm Service Agency (“FSA”). Government Guaranteed Loans ("GGLs") carry no credit risk due to an unconditional and irrevocable guarantee (which is supported by the full faith and credit of the U.S. Government) on all principal and the balance of interest accruing through ninety days beyond the date that demand is made to the originating bank for repurchase of the loan. As of December 31, 2023, the Company's balance of GGLs was $4,470,000 , compared to $4,631,000 at December 31, 2022. Consumer Lending The Corporation offers a variety of secured and unsecured consumer loans, including vehicle loans, stock secured loans and loans secured by financial institution deposits. These loans originate primarily with customers from the Corporation’s market area. Consumer loan terms vary according to the type and value of collateral and creditworthiness of the borrower. In underwriting personal loans, a thorough analysis is performed regarding the borrower’s willingness and financial ability to repay the loan as agreed. The ability and willingness to repay is assessed based upon the borrower’s employment history, current financial condition and credit background. Consumer loans may entail greater credit risk than residential real estate loans, particularly in the case of personal loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, repossessed collateral for a defaulted personal loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, personal loan collections are dependent on the borrower’s continuing financial stability and therefore, are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. State and Political Subdivisions Lending The Corporation, from time to time, may originate loans to state and political subdivisions that are within the Corporation’s primary market area or surrounding areas. These loans may be either taxable or tax-free. These loans may be issued for the purpose of land improvement, infrastructure changes, bond refinances, or the purchase of equipment. State and political loans are typically secured by the taxing power of the borrowing entity. In some cases, the loans may also be secured by the property/item being purchased. Audited financial statements are required as part of the underwriting for all state and political loans and a full analysis of all components of the audited statements is performed. If the loan is to be classified as tax-free, a letter from the entity’s solicitor stating such is required, as well. The risk associated with these types of loans is considerably less than commercial loan transactions. Repayment is based on the full faith, credit, and ability of the borrowing entity to tax and then collect the payments. Delinquency or loss on these types of loans is de minimus. Delinquent Loans Generally, a loan is considered to be past-due when scheduled loan payments are in arrears 10 days or more. 15 days exists for improvement in the status of the loan. Past-due loans are continually evaluated with the determination for charge-off being made when no reasonable chance remains that the status of the loan can be improved. Commercial and industrial loans and real estate loans issued for commercial purpose are charged off in whole or in part when they become sufficiently delinquent based upon the terms of the underlying loan contract and when a Real estate loans issued for residential purposes and consumer loans are charged off when they become sufficiently delinquent based upon the terms of the underlying loan contract and when the value of the underlying collateral is not sufficient to support the loan balance and a loss is expected. At that time, the amount of estimated collateral deficiency, if any, is charged off for loans secured by collateral, and all other loans are charged off in full. Existing loans in which the borrower has declared bankruptcy are considered on a case by case basis to Generally, a loan is classified as non-accrual and the accrual of interest on such a loan is discontinued when the Allowance for Credit Losses The allowance for credit losses (“ACL”) is an estimate of losses arising from borrowers’ inability to make loan payments as required, which is calculated via a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio. The Corporation completed a one-time adjustment to The ACL is maintained at a level estimated by management to be adequate to absorb potential loan losses. Modeling of the ACL uses sophisticated statistical techniques to arrive at reasonable and supportable forecasts of expected losses. The Corporation has contracted with a third-party vendor to assist in developing models for the ACL related to the Corporation’s loan portfolio under Accounting Standards Update (“ASU”) 2016-13. The Corporation has opted to utilize the Weighted Average Remaining Maturity (“WARM”) method to calculate the ACL which uses an average annual charge-off rate. This average annual charge-off rate contains loss content over several vintages and is used as a foundation for estimating the credit loss content for loans by segmented pools at the balance sheet date and is used to determine a historical charge-off rate. When estimating expected credit losses, the Corporation considers forward-looking information that is both reasonable, supportable, and relevant to assessing the collectability of cash flows. Reasonable and supportable forecasts may extend over the entire contractual term of a loan or a period shorter than the contractual term. Reasonable and supportable forecasts may vary by portfolio segment or individual forecast input. These forecasts may include data from internal sources, external sources, or a combination of both. When the contractual term of a loan extends beyond the reasonable and supportable period, ASC Topic 326 The methodology used to determine the ACL also includes a qualitative component in which the Corporation adjusts expected credit loss estimates for information not already captured in the loss estimation process. These qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Changes in the The Corporation’s ACL is calculated by collectively evaluating and individually evaluating loans. The Corporation collectively evaluates applicable loans based on segments according to their homogeneous characteristics, aligned with the segmentation of the FDIC Bank Call Report. The Corporation collectively evaluates loans and determines applicable loss rates based on the following segments/classes: Real Estate ● Construction, land development, and other land loans ● Residential construction (loans to build homes, both speculative and owner-occupied, and 1-4 ● family lot loans) ● Agribusiness, farmland, or secured by farmland ● Revolving, open-end, 1-4 family residential properties (and extended under lines of credit) ● Loans secured by first liens ● Loans secured by junior liens ● Secured by multifamily (5 or more) residential properties ● Loans secured by owner occupied, non-farm, non-residential properties ● Loans secured by other non-farm, non-residential properties Agricultural ● Loans to finance agricultural production and other loans for farmers Commercial and Industrial ● Commercial and industrial loans Consumer ● Other revolving credit plans ● Automobile loans ● Other consumer loans State and Political Subdivisions ● Obligations (other than securities or leases) of states and political subdivisions in the U.S. In accordance with ASC 326-20-30-2, the Corporation will evaluate individual loans for expected credit losses when the loans do not share similar risk characteristics with loans evaluated using the collective method. Management ● The present value of expected cash flows, discounted at the loan’s effective interest rate (i.e. the contractual interest rate adjusted for any net deferred loan fees or costs, premium, or discount existing at the origination or acquisition of the loan) ● The loan’s observable market price ● The fair value of the collateral if the loan is deemed to be collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the liquidation of the underlying collateral and there are no other available and reliable sources of repayment. Management will consider estimated costs to sell, on a discounted basis, in the measurement of impairment if these costs are expected to reduce the cash flows available to repay the loan. Any portion of the recorded investment for a collateral dependent loan (including any capitalized accrued interest, net deferred loan fees or costs, and unamortized premium or discount) exceeding the fair value of the collateral that can be identified as uncollectible is deemed a confirmed loss and will be charged off against the ACL Loans that have been individually measured for impairment may have a portion of the allowance allocated to ASU 2022-02, Loan Modifications Experiencing Financial Difficulty, eliminated the accounting guidance for losses. Any modifications of loans to borrowers experiencing financial difficulty that are classified as non-accrual or are otherwise designated as collateral dependent are individually evaluated for determination of expected credit losses. The most common types of concessions granted upon modification of a loan to a borrower experiencing financial difficulties include: (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the There may be certain types of loans for which the expectation of credit loss is zero after evaluating historical loss information, making necessary adjustments for current conditions and reasonable and supportable forecasts, and A loan that is fully secured by cash or cash equivalents, such as a certificate of deposit issued by the lending institution, would likely have zero credit loss expectations. Similarly, the guaranteed portion of an SBA loan purchased on the secondary market through the SBA’s fiscal and transfer agent would likely have zero credit loss expectations because these financial assets are unconditionally guaranteed by the U.S. government. ASC Topic 326 introduces the concept of purchased credit deteriorated (“PCD”) assets. PCD assets are acquired financial assets that, at acquisition, have experienced more-than-insignificant deterioration in credit quality A reserve for unfunded lending commitments is provided for possible credit losses on off-balance sheet credit exposures. Off-balance sheet credit exposures primarily include undrawn portions of revolving lines of credit and The Corporation made a policy election to exclude accrued interest receivable from the amortized cost basis of The Corporation is subject to periodic examination by its federal and state examiners, and may be required by The Corporation utilizes a risk grading matrix as a tool for managing credit risk in the loan portfolio and assigns an asset quality rating (risk grade) to all loans. An asset quality rating is assigned using the guidance provided in the The commercial loan grading system focuses on a borrower’s financial strength and performance, experience and depth of management, primary and secondary sources of repayment, the nature of the business and the outlook for The loan grading system for residential real estate secured and consumer loans focuses on the borrower’s credit score and credit history, debt-to-income ratio and income sources, collateral position and loan-to-value ratio. Risk grade characteristics are as follows: Risk Grade 1 – MINIMAL RISK through Risk Grade 6 – MANAGEMENT ATTENTION (Pass Grade Categories) Risk is evaluated via examination of several attributes including but not limited to financial trends, strengths and weaknesses, likelihood of repayment when considering both cash flow and collateral, sources of repayment, At the low-risk end of the rating scale, a risk grade of 1 – Minimal Risk is the grade reserved for loans with Risk Grade 7 − SPECIAL MENTION (Non-Pass Category) Assets in this category are adequately collateralized but have potential weakness which may, if not checked or Risk Grade 8 − SUBSTANDARD (Non-Pass Category) Generally, these assets are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have “well-defined” weaknesses that jeopardize the full These loans are characterized by the distinct possibility that the Corporation will sustain some loss if the Risk Grade 9 − DOUBTFUL (Non-Pass Category) Generally, loans graded doubtful have all the weaknesses inherent in a substandard loan with the added factor that the weaknesses are pronounced to a point whereby the basis of current information, conditions, and values, Premises and Equipment, net Premises and equipment are stated at cost less accumulated depreciation computed principally utilizing the straight-line method over the estimated useful lives of the assets. Long-lived assets are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying value may not be recovered. Maintenance and minor repairs are charged to operations as incurred. The cost and accumulated depreciation of the premises and equipment retired or sold are eliminated from the property accounts at the time of retirement or sale, and the resul |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2023 | |
SECURITIES | |
SECURITIES | NOTE 2 — SECURITIES Debt Securities There was no allowance for credit losses for Available-For-Sale debt securities as of December 31, 2023; therefore, it is not present in the table below. The amortized cost, related estimated fair value, and unrealized gains and losses for debt securities classified as Available-For-Sale were as follows at December 31, 2023 and 2022: Debt Securities Available-for-Sale (Dollars in thousands) Gross Gross Amortized Unrealized Unrealized Fair December 31, 2023: Cost Gains Losses Value U.S. Treasury securities $ 7,881 $ — $ (840) $ 7,041 Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgage-backed 152,510 — (14,518) 137,992 Other 7,560 126 (54) 7,632 Other mortgage backed securities 36,623 168 (2,741) 34,050 Obligations of state and political subdivisions 97,899 18 (10,214) 87,703 Asset-backed securities 82,852 150 (840) 82,162 Corporate debt securities 40,647 74 (4,333) 36,388 Total $ 425,972 $ 536 $ (33,540) $ 392,968 Debt Securities Available-for-Sale (Dollars in thousands) Gross Gross Amortized Unrealized Unrealized Fair December 31, 2022: Cost Gains Losses Value U.S. Treasury securities $ 7,853 $ — $ (1,052) $ 6,801 Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgage-backed 146,707 — (15,032) 131,675 Other 10,992 233 (45) 11,180 Other mortgage backed securities 36,767 — (3,079) 33,688 Obligations of state and political subdivisions 125,176 266 (14,753) 110,689 Asset-backed securities 37,526 — (1,108) 36,418 Corporate debt securities 45,838 183 (3,028) 42,993 Total $ 410,859 $ 682 $ (38,097) $ 373,444 Debt securities available-for-sale with an aggregate fair value of $249,114,000 at December 31, 2023 and $315,836,000 at December 31, 2022, were pledged to secure public funds, trust funds, securities sold under agreements to repurchase and the Federal Discount Window aggregating $182,050,000 at December 31, 2023 and $241,385,000 at December 31, 2022. The amortized cost and fair value of securities, by contractual maturity, are shown below at December 31, 2023. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Available-for-Sale Amortized Cost Fair Value 1 year or less $ 9,283 $ 9,282 Over 1 year through 5 years 27,963 26,457 Over 5 years through 10 years 66,364 58,915 Over 10 years 133,230 126,272 Mortgage-backed securities 189,132 172,042 Total $ 425,972 $ 392,968 At December 31, 2023 and 2022, the Corporation had holdings of securities from the following issuers in excess of ten percent of consolidated stockholders’ equity (excluding holdings of the U.S. Government and U.S. Government Agencies and Corporations). (Dollars in thousands) Fair December 31, 2023: Value Issuer Sallie Mae Bank $ 25,737 Nelnet Student Loan Trust 15,486 Navient Student Loan Trust 13,179 (Dollars in thousands) Fair December 31, 2022: Value Issuer Sallie Mae Bank $ 17,362 Proceeds from sales of investments in debt securities available-for-sale during 2023 and 2022 were $23,230,000 and $58,675,000 respectively. Gross gains realized on these sales were $447,000 and $221,000 respectively. Gross losses on these sales were $348,000 and $974,000 respectively. The summary below shows the gross unrealized losses and fair value of the Corporation’s debt securities, aggregated by investment category, of which individual securities have been in a continuous unrealized loss position for less than 12 months or 12 months or more as of December 31, 2023 and 2022: December 31, 2023 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available-for-Sale: Value Loss Value Loss Value Loss U.S. Treasury securities $ — $ — $ 7,041 $ (840) $ 7,041 $ (840) Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgage-backed 23,103 (242) 102,608 (14,276) 125,711 (14,518) Other — — 3,029 (54) 3,029 (54) Other mortgage-backed debt securities 1,568 (1) 25,042 (2,740) 26,610 (2,741) Obligations of state and political subdivisions — — 82,113 (10,214) 82,113 (10,214) Asset-backed securities 52,862 (342) 12,726 (498) 65,588 (840) Corporate debt securities 2,813 (270) 30,501 (4,063) 33,314 (4,333) Total $ 80,346 $ (855) $ 263,060 $ (32,685) $ 343,406 $ (33,540) December 31, 2022 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available-for-Sale: Value Loss Value Loss Value Loss U.S. Treasury securities $ — $ — $ 6,801 $ (1,052) $ 6,801 $ (1,052) Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgage-backed 61,067 (2,184) 65,174 (12,848) 126,241 (15,032) Other 1,589 (2) 3,168 (43) 4,757 (45) Other mortgage-backed debt securities 16,167 (962) 17,521 (2,117) 33,688 (3,079) Obligations of state and political subdivisions 56,565 (5,881) 35,704 (8,872) 92,269 (14,753) Asset-backed securities 24,136 (405) 12,282 (703) 36,418 (1,108) Corporate debt securities 15,827 (1,073) 18,345 (1,955) 34,172 (3,028) Total $ 175,351 $ (10,507) $ 158,995 $ (27,590) $ 334,346 $ (38,097) There were 177 individual debt securities in an unrealized loss position as of December 31, 2023, with a combined decline in value representing 7.75% of the debt securities portfolio. There were 183 individual debt securities in an unrealized loss position as of December 31, 2022, with their combined decline in value representing 9.11% of the debt securities portfolio. The Corporation made a policy election to exclude accrued interest receivable from the amortized cost basis of debt securities available for sale. Accrued interest receivable on debt securities available for sale is reported as a component of accrued interest receivable on the Corporation’s consolidated balance sheet and totaled $2,487,000 as of December 31, 2023. Accrued interest receivable on debt securities available for sale is excluded from the estimate of credit losses. All debt securities available for sale in an unrealized loss position, as of December 31, 2023, continue to perform as scheduled and we do not believe that there is a credit loss or that a provision for credit losses is necessary. Also, as part of our evaluation of our intent and ability to hold debt securities for a period of time sufficient to allow for any anticipated recovery in the market, we consider our investment strategies, cash flow needs, liquidity position, capital adequacy and interest rate risk position. We do not currently intend to sell the debt securities within the portfolio and it is not more-likely-than-not that we will be required to sell the debt securities. Management continues to monitor all of our debt securities with a high degree of scrutiny. There can be no assurance that we will not conclude in future periods that conditions existing at that time indicate some or all of its debt securities may be sold or would require a charge to earnings as a provision for credit losses in such periods. Equity Securities At December 31, 2023 and 2022, the Corporation had $1,482,000 and $1,699,000, respectively, in equity securities recorded at fair value. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during 2023 and 2022: (Dollars in thousands) December 31, 2023 December 31, 2022 Net losses from market value fluctuations recognized during the period on equity securities $ (217) $ (93) Less: Net gains recognized during the period on equity securities sold during the period — 27 Net losses recognized during the reporting period on equity securities still held at the reporting date $ (217) $ (120) The Corporation monitors the equity securities portfolio monthly with particular attention given to securities in a continuous loss position of at least ten percent for over twelve months. Based on the factors described above, management did not consider any equity securities to be impaired at December 31, 2023 or 2022. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | NOTE 3 — LOANS AND ALLOWANCE FOR CREDIT LOSSES The following table presents the classes of the loan portfolio summarized by risk rating and year of origination and gross charge offs by loan portfolio summarized by year of origination as of December 31, 2023. (Dollars in thousands) Real Estate: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ 110,819 $ 186,729 $ 132,724 $ 110,038 $ 54,543 $ 192,686 $ 787,539 7 Special Mention — — — — — — — 8 Substandard — 86 587 3,661 9,452 9,598 23,384 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs 130 176 153 116 (13) 8 570 Total Real Estate Loans $ 110,949 $ 186,991 $ 133,464 $ 113,815 $ 63,982 $ 202,292 $ 811,493 Agricultural: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ — $ 59 $ — $ — $ — $ 611 $ 670 7 Special Mention — — — — — — — 8 Substandard — — — — — — — 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs — 1 — — — — 1 Total Agricultural Loans $ — $ 60 $ — $ — $ — $ 611 $ 671 Commercial and Industrial: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ 12,672 $ 10,186 $ 5,776 $ 7,439 $ 6,833 $ 22,927 $ 65,833 7 Special Mention — — — — — — — 8 Substandard — — — — — 650 650 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs 95 83 24 17 208 (1) 426 Total Commercial and Industrial Loans $ 12,767 $ 10,269 $ 5,800 $ 7,456 $ 7,041 $ 23,576 $ 66,909 Consumer: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ 2,415 $ 1,238 $ 926 $ 206 $ 110 $ 802 $ 5,697 7 Special Mention 58 — — — — — 58 8 Substandard — — — — — — — 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs 38 20 8 2 1 — 69 Total Consumer Loans $ 2,511 $ 1,258 $ 934 $ 208 $ 111 $ 802 $ 5,824 State and Political Subdivisions: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ 731 $ 4,095 $ 14,139 $ 1,905 $ — $ 5,303 $ 26,173 7 Special Mention — — — — — — — 8 Substandard — — — — — — — 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs 2 1 4 1 — — 8 Total State and Political Subdivision Loans $ 733 $ 4,096 $ 14,143 $ 1,906 $ — $ 5,303 $ 26,181 Total Loans: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ 126,637 $ 202,307 $ 153,565 $ 119,588 $ 61,486 $ 222,329 $ 885,912 7 Special Mention 58 — — — — — 58 8 Substandard — 86 587 3,661 9,452 10,248 24,034 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs 265 281 189 136 196 7 1,074 Total Loans $ 126,960 $ 202,674 $ 154,341 $ 123,385 $ 71,134 $ 232,584 $ 911,078 2023 2022 2021 2020 2019 Prior Total Gross Charge Offs: Real Estate $ — $ — $ — $ — $ — $ — $ — Agricultural — — — — — — — Commercial and Industrial — — — — — — — Consumer 2 23 13 2 4 13 57 State and Political Subdivisions — — — — — — — Total Gross Charge Offs $ 2 $ 23 $ 13 $ 2 $ 4 $ 13 $ 57 State and Political Subdivision loans include loans categorized as tax-free in the amount of $26,181,000 as of December 31, 2023. Commercial and Industrial loans include $4,470,000 of GGLs as of December 31, 2023. Loans held for sale are included in the Real Estate loans category and carried a balance of $214,000 as of December 31, 2023. The activity in the allowance for credit losses by loan class (post adoption of ASU No. 2016-13), is summarized below for the year ended December 31, 2023. (Dollars in thousands) State and Real Commercial Political Estate Agricultural and Industrial Consumer Subdivisions Total As of and for the year ended December 31, 2023: Allowance for Credit Losses: Balance at December 31, 2022 $ 7,483 $ 6 $ 504 $ 84 $ 197 $ 8,274 CECL adoption adjustment (717) (4) (261) 11 (148) (1,119) Beginning balance January 1, 2023 6,766 2 243 95 49 7,155 Charge-offs — — — (57) — (57) Recoveries 37 — 2 5 — 44 (Credit) Provision (264) (1) 20 35 (7) (217) Ending Balance $ 6,539 $ 1 $ 265 $ 78 $ 42 $ 6,925 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 6,539 $ 1 $ 265 $ 78 $ 42 $ 6,925 Reserve for Unfunded Lending Commitments $ 140 $ — $ 25 $ — $ 1 $ 166 Loans Receivable: Ending Balance $ 811,493 $ 671 $ 66,909 $ 5,824 $ 26,181 $ 911,078 Ending balance: individually evaluated for impairment $ 4,005 $ 309 $ 611 $ — $ — $ 4,925 Ending balance: collectively evaluated for impairment $ 807,488 $ 362 $ 66,298 $ 5,824 $ 26,181 $ 906,153 The Corporation’s activity in the allowance for credit losses on unfunded commitments for the year ended December 31, 2023 was as follows: (Dollars in thousands) 2023 Balance at December 31, 2022 $ 68 CECL adoption adjustment 147 Credit for credit losses on unfunded commitments (49) Balance at December 31, 2023 $ 166 The recorded investment, unpaid principal balance, and the related allowance of the Corporation’s individually evaluated loans are summarized below at December 31, 2023. (Dollars in thousands) December 31, 2023 Recorded Recorded Unpaid Unpaid Investment Investment Principal Principal Total With With No Total Balance With Balance With Unpaid Related Related Recorded Related No Related Principal Related Allowance Allowance Investment Allowance Allowance Balance Allowance Real Estate $ — $ 4,005 $ 4,005 $ — $ 5,994 $ 5,994 $ — Agricultural — 309 309 — 309 309 — Commercial and Industrial — 611 611 — 611 611 — Total $ — $ 4,925 $ 4,925 $ — $ 6,914 $ 6,914 $ — The recorded investment represents the loan balance reflected on the consolidated balance sheets net of any charge-offs. The unpaid balance is equal to the gross amount due on the loan. The average recorded investment and interest income recognized for the Corporation’s individually evaluated loans are summarized below for the years ended December 31, 2023. (Dollars in thousands) Year Ended December 31, 2023 Average Average Interest Interest Recorded Recorded Income Income Investment Investment Total Recognized Recognized Total With With No Average With With No Interest Related Related Recorded Related Related Income Allowance Allowance Investment Allowance Allowance Recognized Real Estate $ — $ 4,380 $ 4,380 $ — $ — $ — Agricultural — 309 309 — 24 24 Commercial and Industrial — 643 643 — — — Total $ — $ 5,332 $ 5,332 $ — $ 24 $ 24 Of the $24,000 in interest income recognized on individually evaluated loans for the year ended December 31, 2023, $0 in interest income was recognized with respect to non-accrual loans. (Dollars in thousands) December 31, 2023 Real Estate Other Real Estate $ 4,005 $ — Agricultural — 309 Commercial and Industrial — 611 Total $ 4,005 $ 920 Total non-performing assets (which includes loans receivable on non-accrual status, foreclosed assets held for resale and loans past-due 90 days or more and still accruing interest) as of December 31, 2023 and 2022 were as follows: (Dollars in thousands) December 31, December 31, 2023 2022 Real Estate $ 4,005 $ 4,387 Agricultural — — Commercial and Industrial 611 664 Consumer — — State and Political Subdivisions — — Total non-accrual loans 4,616 5,051 Foreclosed assets held for resale — — Loans past-due 90 days or more and still accruing interest 1,065 308 Total non-performing assets $ 5,681 $ 5,359 If interest on non-accrual loans had been accrued at original contract rates, interest income would have increased by $2,488,000 in 2023 and $2,174,000 in 2022. There were no foreclosed assets held for resale at December 31, 2023 or December 31, 2022. Consumer mortgage loans secured by residential real estate for which the Corporation has entered into formal foreclosure proceedings but for which physical possession of the property has yet to be obtained amounted to $138,000 at December 31, 2023 and $41,000 at December 31, 2022. These balances were not included in foreclosed assets held for resale at December 31, 2023 or December 31, 2022. The following tables present the classes of the loan portfolio summarized by the past-due status at December 31, 2023 and 2022: (Dollars in thousands) 90 Days Or Greater Past Due 90 Days Current- and Still 30-59 Days 60-89 Days or Greater Total 29 Days Total Accruing Past Due Past Due Past Due Past Due Past Due Loans Interest December 31, 2023: Real Estate $ 2,155 $ 379 $ 5,069 $ 7,603 $ 803,890 $ 811,493 $ 1,065 Agricultural — — — — 671 671 — Commercial and Industrial 6 — 591 597 66,312 66,909 — Consumer 21 4 — 25 5,799 5,824 — State and Political Subdivisions — — — — 26,181 26,181 — Total $ 2,182 $ 383 $ 5,660 $ 8,225 $ 902,853 $ 911,078 $ 1,065 (Dollars in thousands) 90 Days Or Greater Past Due 90 Days Current- and Still 30-59 Days 60-89 Days or Greater Total 29 Days Total Accruing Past Due Past Due Past Due Past Due Past Due Loans Interest December 31, 2022: Real Estate $ 2,682 $ 59 $ 4,694 $ 7,435 $ 757,445 $ 764,880 $ 308 Agricultural — — — — 860 860 — Commercial and Industrial 61 63 640 764 55,313 56,077 — Consumer 11 2 — 13 5,694 5,707 — State and Political Subdivisions — — — — 30,945 30,945 — Total $ 2,754 $ 124 $ 5,334 $ 8,212 $ 850,257 $ 858,469 $ 308 Pre-ASU No. 2016-13 Disclosures: The following table presents the classes of the loan portfolio summarized by risk rating as of December 31, 2022: Commercial and Industrial Commercial Real Estate December 31, December 31, 2022 2022 Grade: 1-6 Pass $ 85,845 $ 591,309 7 Special Mention — 634 8 Substandard 725 18,781 9 Doubtful — — Add (deduct): Unearned discount — — Net deferred loan fees and costs 429 825 Total loans $ 86,999 $ 611,549 Residential Real Estate Including Home Equity Consumer December 31, December 31, 2022 2022 Grade: 1-6 Pass $ 153,902 $ 5,349 7 Special Mention — — 8 Substandard 795 — 9 Doubtful — — Add (deduct): Unearned discount — — Net deferred loan fees and costs (191) 66 Total loans $ 154,506 $ 5,415 Total Loans December 31, 2022 Grade: 1-6 Pass $ 836,405 7 Special Mention 634 8 Substandard 20,301 9 Doubtful — Add (deduct): Unearned discount — Net deferred loan fees and costs 1,129 Total loans $ 858,469 The activity in the allowance for loan losses by loan class (prior to adoption of ASU No. 2016-13), is summarized below for the year ended December 31, 2022. (Dollars in thousands) Commercial Commercial Residential and Industrial Real Estate Real Estate Consumer Unallocated Total As of and for the year ended December 31, 2022: Allowance for Loan Losses: Beginning balance $ 681 $ 5,408 $ 1,539 $ 84 $ 968 $ 8,680 Charge-offs (158) (3) (12) (33) — (206) Recoveries 3 40 16 5 — 64 Provision (Credit) 178 487 14 25 (968) (264) Ending Balance $ 704 $ 5,932 $ 1,557 $ 81 $ — $ 8,274 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 704 $ 5,932 $ 1,557 $ 81 $ — $ 8,274 Loans Receivable: Ending Balance $ 86,999 $ 611,549 $ 154,506 $ 5,415 $ — $ 858,469 Ending balance: individually evaluated for impairment $ 973 $ 9,495 $ 739 $ — $ — $ 11,207 Ending balance: collectively evaluated for impairment $ 86,026 $ 602,054 $ 153,767 $ 5,415 $ — $ 847,262 The outstanding recorded investment of loans categorized as TDRs as of December 31, 2022 was $7,480,000. There were no unfunded commitments on TDRs at December 31, 2022. During the year ended December 31, 2022, two loans with a combined post modification balance of $515,000 were modified as TDRs. The loan modifications for the year ended December 31, 2022 consisted of two payment modifications. The following table presents the outstanding recorded investment of TDRs at the dates indicated: (Dollars in thousands) December 31, 2022 Non-accrual TDRs $ 1,324 Accruing TDRs 6,156 Total $ 7,480 At December 31, 2022, three commercial and industrial loans classified as TDRs with a combined recorded investment of $664,000 and five commercial real estate loans classified as TDRs with a combined recorded investment of $684,000 were not in compliance with the terms of their restructure. Of the loans that were modified as TDRs within the twelve months preceding December 31, 2022, no loans experienced payment defaults during the year ended December 31, 2022. The following table presents information regarding the loan modifications categorized as TDRs during the year ended December 31, 2022. (Dollars in thousands) Year Ended December 31, 2022 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Recorded Contracts Investment Investment Investment Commercial Real Estate 2 $ 481 $ 515 $ 501 Total 2 $ 481 $ 515 $ 501 The following table provides detail regarding the types of loan modifications made for loans categorized as TDRs during the year ended December 31, 2022 with the total number of each type of modification performed. Year Ended December 31, 2022 Rate Term Payment Number Modification Modification Modification Modified Commercial Real Estate — — 2 2 Total — — 2 2 (Dollars in thousands) December 31, 2022 Recorded Recorded Unpaid Unpaid Investment Investment Principal Principal Total With With No Total Balance With Balance With Unpaid Related Related Recorded Related No Related Principal Related Allowance Allowance Investment Allowance Allowance Balance Allowance Commercial and Industrial $ — $ 973 $ 973 $ — $ 973 $ 973 $ — Commercial Real Estate — 9,495 9,495 — 12,430 12,430 — Residential Real Estate — 739 739 — 771 771 — Total $ — $ 11,207 $ 11,207 $ — $ 14,174 $ 14,174 $ — At December 31, 2022, $7,480,000 of loans classified as TDRs were included in impaired loans with a total allocated allowance of $0 at December 31, 2022. The recorded investment represents the loan balance reflected on the consolidated balance sheets net of any charge-offs. The unpaid balance is equal to the gross amount due on the loan. The average recorded investment and interest income recognized for the Corporation’s impaired loans are summarized below for the year ended December 31, 2022. (Dollars in thousands) Year Ended December 31, 2022 Average Average Interest Interest Recorded Recorded Income Income Investment Investment Total Recognized Recognized Total With With No Average With With No Interest Related Related Recorded Related Related Income Allowance Allowance Investment Allowance Allowance Recognized Commercial and Industrial $ — $ 992 $ 992 $ — $ 14 $ 14 Commercial Real Estate — 10,741 10,741 — 294 294 Residential Real Estate — 841 841 — 1 1 Total $ — $ 12,574 $ 12,574 $ — $ 309 $ 309 Of the $309,000 in interest income recognized on impaired loans for the year ended December 31, 2022, $0 in interest income was recognized with respect to non-accrual loans. . |
PREMISES AND EQUIPMENT, NET
PREMISES AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
PREMISES AND EQUIPMENT, NET | |
PREMISES AND EQUIPMENT | NOTE 4 — PREMISES AND EQUIPMENT, NET Premises and equipment, net at December 31, 2023 and 2022 is as follows: (Dollars in thousands) Estimated Useful Life (in years) 2023 2022 Land N/A $ 3,744 $ 3,744 Buildings 5-40 23,197 22,114 Leasehold improvements 1-20 338 335 Equipment 3-25 8,352 7,937 35,631 34,130 Less: Accumulated depreciation 16,020 15,106 Total $ 19,611 $ 19,024 Depreciation amounted to $1,050,000 for 2023 and $1,026,000 for 2022 in the consolidated statements of income. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
DEPOSITS | |
DEPOSITS | NOTE 5 — DEPOSITS Major classifications of deposits at December 31, 2023 and 2022 consisted of: (Dollars in thousands) December 31, December 31, 2023 2022 Non-interest bearing demand $ 198,569 $ 231,754 Interest bearing demand 275,472 335,559 Savings 212,280 260,086 Time certificates of deposits less than $250,000 259,841 151,575 Time certificates of deposits $250,000 or greater 33,185 13,400 Other time 1,092 1,125 Total deposits $ 980,439 $ 993,499 Total deposits decreased $13,060,000 to $980,439,000 as of December 31, 2023 due to decreases in non-interest bearing demand, interest bearing demand and savings accounts while time deposits increased due to higher rate CD offerings in 2023. The decrease in deposits was mainly the result of a $60,884,000 decrease in municipal deposits offset by an increase of $40,250,000 in brokered CDs, along with other normal fluctuations in deposits during 2023. As of December 31, 2023 the Corporation had $65,250,000 in brokered deposits (CDs) as compared to $20,000,000 at December 31, 2022. The following is a schedule reflecting classification and remaining maturities of time deposits at December 31, 2023: (Dollars in thousands) Year Ending 2024 $ 210,589 2025 27,592 2026 28,108 2027 3,020 2028 19,309 Thereafter 5,500 Total time deposits $ 294,118 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM BORROWINGS. | |
SHORT-TERM BORROWINGS | NOTE 6 — SHORT-TERM BORROWINGS Short-term borrowings include federal funds purchased, securities sold under agreements to repurchase, Federal Discount Window, and FHLB advances, which generally represent overnight or less than 30 -day borrowings. Short-term borrowings and weighted-average interest rates at and for the years ended December 31, 2023 and 2022 are as follows: (Dollars in thousands) December 31, 2023 December 31, 2022 Average Average Amount Rate Amount Rate Federal funds purchased $ — 6.57 % $ — — % Securities sold under agreements to repurchase 19,708 3.28 % 20,368 0.84 % Federal Discount Window 1 4.99 % — 2.78 % Federal Home Loan Bank of Pittsburgh 133,759 5.45 % 133,050 2.82 % Total $ 153,468 5.21 % $ 153,418 2.21 % At December 31, 2023, the maximum borrowing capacity of federal funds purchased and the Federal Discount Window was $15,000,000 and $8,547,000, respectively. Please refer to Note 7 ― Long-Term Borrowings for the Corporation’s maximum borrowing capacity at FHLB. Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing agreements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability on the Corporation’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is not offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Corporation does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Corporation be in default (e.g., fails to make an interest payment to the counterparty). The collateral is held by a correspondent bank in the counterparty’s custodial account. The counterparty has the right to sell or repledge the investment securities. The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreements as of December 31, 2023 and 2022. (Dollars in thousands) Gross Net Amounts Amounts of Liabilities Offset Presented Gross in the in the Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral Net Liabilities Sheet Sheet Instruments Pledge Amount December 31, 2023 Repurchase agreements (a) $ 19,708 $ — $ 19,708 $ (19,708) $ — $ — December 31, 2022 Repurchase agreements (a) $ 20,368 $ — $ 20,368 $ (20,368) $ — $ — (a) As of December 31, 2023 and 2022, the fair value of securities pledged in connection with repurchase agreements was $28,902,000 and $34,160,000 , respectively . The following table presents the remaining contractual maturity of the master netting arrangement or repurchase agreements as of December 31, 2023. (Dollars in thousands) Remaining Contractual Maturity of the Agreements Overnight Greater Greater and Up to 30 -90 than Continuous 30 days Days 90 Days Total December 31, 2023: Repurchase agreements and repurchase-to-maturity transactions: U.S. Treasury and/or agency securities $ 19,708 $ — $ — $ — $ 19,708 Total $ 19,708 $ — $ — $ — $ 19,708 |
LONG-TERM BORROWINGS
LONG-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
LONG-TERM BORROWINGS | |
LONG-TERM BORROWINGS | NOTE 7 — LONG-TERM BORROWINGS Long-term borrowings are comprised of advances from FHLB. Under terms of a blanket agreement, collateral for the FHLB loans is certain qualifying assets of the Bank. The qualifying assets are real estate mortgages and certain investment securities. A schedule of long-term borrowings by maturity as of December 31, 2023 and 2022 follows: (Dollars in thousands) 2023 2022 Due 2023, 2.96% $ — $ 3,000 Due 2024, 1.68% 20,000 20,000 Due 2026, 4.62% to 4.92% 60,000 — Due 2028, 4.46% to 5.14% 42,000 2,000 Total long-term borrowings $ 122,000 $ 25,000 The Corporation’s long-term borrowings consist of notes at fixed interest rates. Upon any default, under the terms of a master agreement, FHLB may declare all indebtedness of the Corporation immediately due. In addition, FHLB shall not be required to fund advances under any outstanding commitments. Irrevocable standby letters of credit may be issued to a customer/beneficiary by the FHLB on the Corporation’s behalf in order to secure public/municipal unit deposits, provide credit enhancement to certain transaction types, or to support payment obligations to third parties. These irrevocable standby letters of credit are supported by an irrevocable and independent guarantee by the FHLB for the Corporation’s pledging obligation to secure public/municipal unit deposits which eliminates the need for the Corporation to pledge collateral in the amount necessary to secure these funds. There were no irrevocable standby letters of credit which could be drawn on through FHLB’s close of business on December 31, 2023 or 2022. Any irrevocable standby letters of credit are issued as necessary in an amount appropriate to secure specific public/municipal unit deposits. Under terms of a blanket agreement, collateral for the FHLB loans and letters of credit consists of certain qualifying assets of the Bank. Principal qualifying assets are certain real estate mortgages and investment securities. As of December 31, 2023, loans of $740,384,000 were pledged to FHLB which resulted in a FHLB maximum borrowing capacity of $517,782,000. As of December 31, 2023, no securities were pledged as collateral to FHLB to secure FHLB loans and letters of credit. |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 12 Months Ended |
Dec. 31, 2023 | |
SUBORDINATED DEBENTURES | |
SUBORDINATED DEBENTURES | NOTE 8 — SUBORDINATED DEBENTURES On December 10, 2020, the Corporation issued $25,000,000 aggregate principal amount of Subordinated Notes due 2030 (the “2020 Notes”) to accredited investors. The 2020 Notes are intended to be treated as Tier 2 capital for regulatory capital purposes. The Corporation utilized the net proceeds it received from the sale of the 2020 Notes to support organic growth and for general corporate purposes. The 2020 Notes bear a fixed interest rate of 4.375% per year for the first five years and then float based on a benchmark rate (as defined). Interest is payable semi-annually in arrears on June 30 and December 31 of each year, which began on June 30, 2021, for the first five years after issuance and will be payable quarterly in arrears thereafter on March 31, June 30, September 30 and December 31. The 2020 Notes will mature on December 31, 2030 and are redeemable in whole or in part, without premium or penalty, at any time on or after December 31, 2025 and prior to December 31, 2030. Additionally, if all or any portion of the 2020 Notes cease to be deemed Tier 2 capital, the Corporation may redeem, in whole and not in part, at any time upon giving not less than ten days’ notice, an amount equal to one hundred percent (100%) of the principal amount outstanding plus accrued but unpaid interest to but excluding the date fixed for redemption. Holders of the 2020 Notes may not accelerate the maturity of the 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar law of the Corporation or the Bank. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | NOTE 9 — INCOME TAXES The current and deferred components of the income tax expense consisted of the following: (Dollars in thousands) 2023 2022 Federal Current $ 431 $ 2,180 Deferred 253 114 Income tax expense $ 684 $ 2,294 The following is a reconciliation between the income tax expense and the amount of income taxes which would have been provided at the statutory rate of 21%: (Dollars in thousands) 2023 2022 Amount Rate Amount Rate Federal income tax at statutory rate $ 1,311 21.0 % $ 3,427 21.0 % Tax-exempt income (106) (1.7) (749) (4.6) Low-income housing credits (484) (7.7) (249) (1.5) Bank owned life insurance income (130) (2.1) (125) (0.7) Prior year tax adjustments 82 1.3 — — Other 11 0.2 (10) (0.1) Income tax expense and rate $ 684 11.0 % $ 2,294 14.1 % The components of the net deferred tax asset at December 31, 2023 and 2022 are as follows: (Dollars in thousands) 2023 2022 Deferred Tax Assets: Net unrealized losses on debt securities available-for-sale and derivatives $ 7,880 $ 7,857 Allowance for loan losses 1,454 1,738 Provision for unfunded commitments 35 14 Deferred compensation 218 238 Contributions 4 6 Accrued rent expense 106 103 Operating lease liabilities 415 426 Finance lease liabilities — 1 Limited partnership investments 322 313 Impairment loss on securities 4 4 Deferred health insurance 53 48 Capital and net operating loss carry forwards 285 258 Valuation allowance related to state net operating losses (285) (258) Total 10,491 10,748 Deferred Tax Liabilities: Loan fees and costs 225 237 Net unrealized gains on marketable equity securities 231 319 Operating lease right-of-use assets 415 426 Accumulated depreciation 438 287 Accretion 172 36 Mortgage servicing rights 58 57 Intangibles 257 257 Total 1,796 1,619 Net Deferred Tax Asset $ 8,695 $ 9,129 A valuation allowance for deferred tax assets was recorded in the amount of $285,000 and $258,000 at December 31, 2023 and 2022, respectively. The valuation allowance relates to state net operating loss carryforwards for which realizability is uncertain. At December 31, 2023 and 2022, the Corporation had state net operating loss carryforwards, net of a valuation allowance, of $0, which are available to offset future state taxable income, and expire at various dates through 2043. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible and tax planning strategies, management believes it is more likely than not that the Corporation will realize the benefits of these deferred tax assets, net of any valuation allowance at December 31, 2023. The Corporation did not have any uncertain tax positions at December 31, 2023 and 2022. The Corporation and its subsidiary file a consolidated federal income tax return. The Corporation is no longer subject to examination by Federal or State taxing authorities for the years before 2020. |
EMPLOYEE BENEFIT PLANS AND DEFE
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION AGREEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION AGREEMENTS | |
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION AGREEMENTS | NOTE 10 — EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION AGREEMENTS The Corporation maintains a 401k Plan which has a combined tax qualified savings feature and profit sharing feature for the benefit of its employees. Effective January 1, 2014, the Plan became a Safe Harbor Plan. Under the savings feature, the Corporation makes safe harbor matching contributions of 100% of the first 3% of compensation an employee contributes to the Plan and 50% of the next 2% of compensation an employee contributes to the Plan. The safe harbor matching contributions amounted to $405,000 and $352,000 in 2023 and 2022, respectively. Under the profit sharing feature, contributions, at the discretion of the Board of Directors, are funded currently and amounted to $306,000 and $442,000 in 2023 and 2022, respectively. The Corporation also has non-qualified deferred compensation agreements with one of its current officers and five retired officers. These agreements are essentially unsecured promises by the Corporation to make monthly payments to the officers over fifteen |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 — COMMITMENTS AND CONTINGENCIES In the normal course of business, there are various pending legal actions and proceedings that are not reflected in the consolidated financial statements. Management does not believe the outcome of these actions and proceedings will have a material effect on the consolidated financial position of the Corporation. The Corporation currently leases two branch banking facilities and one parcel of land under operating leases. At December 31, 2023, right-of-use assets and lease liabilities were recorded related to these operating leases totaling $1,472,000 and $1,976,000, respectively, in the consolidated balance sheets. Options to extend or terminate a lease may be included in our lease agreements. When it is reasonably certain that we will exercise those options, the right-of-use asset and lease liability will reflect the renewal or termination option. No significant assumptions or judgements were made in determining whether a contract contained a lease or in the consideration of lease versus non-lease components. None of the leases contained an implicit rate; therefore, our incremental borrowing rate was used for each of the leases. The Corporation recognized total operating lease costs for the years ended December 31, 2023 and 2022 of $220,000 and $191,000, respectively. Cash payments totaled $204,000 and $177,000 for the years ended December 31, 2023 and 2022, respectively, in the consolidated statements of income. The Corporation’s one finance lease for equipment expired as of August 31, 2023. The equipment will continue to depreciate for an additional two years. At December 31, 2023, right-of-use assets and lease liabilities were recorded related to this finance lease totaling $32,000 and $0, respectively. Amounts recognized as right-of-use assets related to finance leases are included in premises options to extend or terminate the lease are not applicable. No significant assumptions or judgements were made in determining whether a contract contained a lease or in the consideration of lease versus non-lease components. The lease does not contain an implicit rate; therefore, our incremental borrowing rate was used for the lease. Total finance lease costs that were recognized by the Corporation for the years ended December 31, 2023 and 2022 were immaterial. Cash payments totaled $7,000 and $10,000 for the years ended December 31, 2023 and 2022, respectively. The following table displays the weighted-average term and discount rates for operating and finance leases outstanding as of December 31, 2023 and 2022. December 31, December 31, December 31, December 31, 2023 2022 2023 2022 Operating Operating Finance Finance Weighted-average term (years) 19.75 20.56 - 0.67 Weighted-average discount rate 4.22% 4.23% -% 0.68% A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: (Dollars in thousands) December 31, December 31, December 31, December 31, 2023 2022 2023 2022 Minimum Lease Payments due: Operating Operating Finance Finance Within one year $ 175 $ 175 $ — $ 7 After one but within two years 140 140 — — After two but within three years 140 140 — — After three but within four years 154 140 — — After four but within five years 157 154 — — After five years 2,317 2,474 — — Total undiscounted cash flows 3,083 3,223 — 7 Discount on cash flows (1,107) (1,194) — (1) Total lease liability $ 1,976 $ 2,029 $ — $ 6 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 12 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Corporation uses various financial instruments, including derivatives, to manage its exposure to interest rate risk. The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash receipts and cash payments principally related to specific assets and short-term wholesale funding positions. The Corporation entered into four swap contracts effective September 20, 2023. Fair Values of Derivative Instruments on the Statement of Financial Condition The tables below present the fair value of the Corporation’s derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2023, and December 31, 2022: (Dollars in thousands) December 31, 2023 Derivative Assets Derivative Liabilities Location Fair Value Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Other Assets $ — Other Liabilities $ 4,501 Total $ — $ 4,501 (Dollars in thousands) December 31, 2022 Derivative Assets Derivative Liabilities Location Fair Value Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Other Assets $ — Other Liabilities $ — Total $ — $ — The following table presents the derivative liabilities subject to an enforceable master netting arrangement as of December 31, 2023 and 2022. Gross Net Amounts Amounts of Liabilities Offset Presented Gross in the in the (Dollars in thousands) Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral Net Liabilities Sheet Sheet Instruments Pledge Amount December 31, 2023 Derivatives $ 4,501 $ — $ 4,501 $ — $ (4,501) $ — December 31, 2022 Derivatives $ — $ — $ — $ — $ — $ — The following table presents the remaining contractual maturity of the master netting arrangements as of December 31, 2023. Remaining Contractual Maturity of the Agreements Greater (Dollars in thousands) Up to 1 to 3 3 to 5 than 1 Year Years Years 5 Years Total December 31, 2023: Derivatives $ — $ — $ 4,501 $ — $ 4,501 Total $ — $ — $ 4,501 $ — $ 4,501 Fair Value Hedges of Interest Rate Risk The Corporation is exposed to changes in the fair value of certain of its fixed-rate assets due to changes in benchmark interest rates. The Corporation uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rates. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Corporation receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. Such derivatives are used to hedge the changes in fair value of certain of its pools of fixed rate assets. As of December 31, 2023, the Corporation had a total of two interest rate swaps with a combined notional amount of $50,000,000 hedging fixed-rate available-for-sale debt securities. As of December 31, 2023, and December 31, 2022, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges: (Dollars in thousands) December 31, December 31, 2023 2022 Carrying amount of hedged assets: Closed Portfolio Amount Closed Portfolio Amount Available-for-sale - Municipals $ 50,964 $ — Available-for-sale - MBS 35,806 — Total $ 86,770 $ — Interest rate swaps notional amount $ 50,000 $ — (Dollars in thousands) December 31, December 31, 2023 2022 Cumulative amount of fair value hedging adjustment included in the carrying amount of assets: Available-for-sale - Municipals $ (1,230) $ — Available-for-sale - MBS (407) — Total $ (1,637) $ — The table below presents the pre-tax effects of the Corporation’s derivative instruments designated as fair value hedges on the consolidated statements of income for the years ended December 31, 2023, and 2022: (Dollars in thousands) December 31, 2023 2022 Amount of loss recognized in other comprehensive loss $ (1,637) $ — Amount of gain, net of fair value re-measurements, included in interest income 168 — Cash Flow Hedges of Interest Rate Risk The Corporation uses derivatives to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Corporation has entered into interest rate swaps as part of its interest rate risk management strategy. These interest rate products are designated as cash flow hedges. As of December 31, 2023, the Corporation had a total of two interest rate swaps with a combined notional amount of $100,000,000 hedging specific short-term wholesale funding positions. For derivatives designated as cash flow hedges, the gain or loss on the derivatives is recorded in other comprehensive loss and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. During the next twelve months, it is estimated that an additional $404,000 will be reclassified as a decrease to interest expense. Interest rate swaps designated as cash flow hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Corporation receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For cash flow hedges on the Corporation’s short-term wholesale funding positions, amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Corporation’s hedged variable rate short-term wholesale funding positions. During the year ended December 31, 2023, the Corporation reclassified $274,000 as a reduction in interest expense. The table below presents the pre-tax effects of the Corporation’s derivative instruments designated as cash flow hedges on the Consolidated Statements of Income for the years ended December 31, 2023, and 2022: (Dollars in thousands) December 31, 2023 2022 Amount of loss recognized in other comprehensive loss $ (2,885) $ — Amount of gain reclassified from accumulated other comprehensive loss to interest expense 274 — Interest rate swaps notional amount $ 100,000 $ — Credit Risk-Related Contingent Features The Corporation has agreements with each of its derivative counterparties that contain a provision where if the Corporation defaults on any of its indebtedness, then the Corporation could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty. The Corporation also has agreements with its derivative counterparties that contain a provision where if the Corporation fails to maintain its status as a well-capitalized institution, then the Corporation could be required to terminate its derivative positions with the counterparty. As of December 31, 2023, the Corporation’s derivatives were in a net liability position resulting in the Corporation having collateral in the amount of $4,650,000 posted with the counterparty at December 31, 2023. As of December 31, 2022, the Corporation had no derivatives in a net liability position and accordingly did not have to post any collateral. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 13 — RELATED PARTY TRANSACTIONS Certain directors, executive officers and immediate family members of First Keystone Corporation and its subsidiary, and companies in which they are principal owners (i.e., at least 10% ownership), were indebted to the Corporation at December 31, 2023 and 2022. The loans do not involve more than the normal risk of collectability nor present other unfavorable features. A summary of the activity on the related party loans consists of the following: (Dollars in thousands) 2023 2022 Balance at January 1 $ 9,647 $ 11,184 Additions 909 3,645 Deductions (1,358) (5,182) Balance at December 31 $ 9,198 $ 9,647 The summary of activity on the related party loans represent funds drawn and outstanding at the date of the consolidated financial statements. Commitments by the Bank to related parties on lines of credit and letters of credit for 2023 and 2022, presented an additional off-balance sheet risk to the extent of undisbursed funds in the amounts of $4,653,000 and $4,492,000 respectively, on the above loans. Deposits from certain officers, directors and immediate family members and/or their related companies held by the Bank amounted to $26,988,000 and $27,248,000 at December 31, 2023 and 2022, respectively. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2023 | |
REGULATORY MATTERS | |
REGULATORY MATTERS | NOTE 14 — REGULATORY MATTERS Under Pennsylvania banking law, the Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At December 31, 2023, $23,404,000 of retained earnings were available for dividends without prior regulatory approval, subject to the regulatory capital requirements discussed below. Regulations also limit the amount of loans and advances from the Bank to the Corporation to 10% of consolidated net assets. The Corporation is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and possibly additional discretionary — actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific capital guidelines that involve quantitative measures of the Corporation’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Corporation’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Management believes, as of December 31, 2023 and 2022, that the Corporation and the Bank met all capital adequacy requirements to which they are subject. On July 2, 2013, the Board of Governors of the Federal Reserve System finalized its rule implementing the Basel III regulatory capital framework, which the FDIC adopted on July 9, 2013. Under the rule, minimum requirements increased both the quantity and quality of capital held by banking organizations. Consistent with the Basel III framework, the rule included a new minimum ratio of common equity tier 1 capital to risk-weighted assets of 4.5 percent, and a common equity tier 1 conservation buffer of 2.5 percent of risk-weighted assets, that applies to all supervised financial institutions, which was phased in over a three year period beginning January 1, 2016, with the full 2.5 percent required as of January 1, 2019. The rule also raised the minimum ratio of tier 1 capital to risk-weighted assets from 4 percent to 6 percent, and includes a minimum leverage ratio of 4 percent for all banking organizations. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total capital, tier I capital and common equity tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of tier I capital (as defined) to average assets (as defined). As of December 31, 2023 the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as Well Capitalized under the regulatory framework for prompt corrective action. To be categorized as Well Capitalized, the Bank must maintain minimum total risk-based, tier 1 risk-based, common equity tier 1 risk-based and tier 1 leverage ratios as set forth in the table. There are no conditions or events since the notification that management believes have changed the Bank’s category. (Dollars in thousands) For Capital Minimum Capital To Be Well Capitalized Adequacy Adequacy with Under Prompt Corrective Actual Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023: Total Capital (to Risk-Weighted Assets) $ 151,381 15.68 % $ 77,247 8.00 % $ 101,386 10.50 % $ 96,558 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 144,290 14.94 % $ 57,935 6.00 % $ 82,074 8.50 % $ 77,247 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 144,290 14.94 % $ 43,451 4.50 % $ 67,591 7.00 % $ 62,763 6.50 % Tier 1 Capital (to Average Assets) $ 144,290 10.38 % $ 55,615 4.00 % $ 55,615 4.00 % $ 69,518 5.00 % (Dollars in thousands) For Capital Minimum Capital To Be Well Capitalized Adequacy Adequacy with Under Prompt Corrective Actual Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022: Total Capital (to Risk-Weighted Assets) $ 148,223 16.15 % $ 73,429 8.00 % $ 96,375 10.50 % $ 91,786 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 139,881 15.24 % $ 55,071 6.00 % $ 78,018 8.50 % $ 73,429 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 139,881 15.24 % $ 41,304 4.50 % $ 64,250 7.00 % $ 59,661 6.50 % Tier 1 Capital (to Average Assets) $ 139,881 10.38 % $ 53,908 4.00 % $ 53,908 4.00 % $ 67,385 5.00 % The capital conservation buffer phase-in began January 1, 2016. The capital conservation buffer of 2.50% was fully phased in effective January 1, 2019. The Corporation’s capital ratios are not materially different from those of the Bank. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK | NOTE 15 — FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK Financial Instruments with Off-Balance Sheet Risk The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. The Corporation does not engage in trading activities with respect to any of its financial instruments with off-balance sheet risk. The Corporation’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Corporation may require collateral or other security to support financial instruments with off-balance sheet credit risk. The contract or notional amounts at December 31, 2023 and 2022 were as follows: (Dollars in thousands) December 31, 2023 December 31, 2022 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 116,954 $ 121,938 Financial standby letters of credit $ 2,120 $ 2,124 Performance standby letters of credit $ 3,688 $ 3,472 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses that may require payment of a fee. Since some of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, owner-occupied income-producing commercial properties, and residential real estate. Standby letters of credit are conditional commitments issued by the Corporation to guarantee payment to a third party when a customer either fails to repay an obligation or fails to perform some non-financial obligation. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Corporation may hold collateral (similar to the items held as collateral for commitments to extend credit) to support standby letters of credit for which collateral is deemed necessary. Financial Instruments with Concentrations of Credit Risk The Corporation originates primarily commercial and residential real estate loans to customers predominately in the Corporation’s five county, Pennsylvania market area. The ability of the majority of the Corporation’s customers to honor their contractual loan obligations is dependent on the economy and real estate market in this area. At December 31, 2023, the Corporation had $811,493,000 in loans secured by real estate, which represented 89.1% of total loans. The real estate loan portfolio is largely secured by lessors of residential buildings and dwellings, lessors of non-residential buildings, and lessors of hotels/motels. As of December 31, 2023 and 2022, management is of the opinion that there were no concentrations exceeding 10% of total loans with regard to loans to borrowers who were engaged in similar activities that were similarly impacted by economic or other conditions. As all financial instruments are subject to some level of credit risk, the Corporation requires collateral and/or guarantees for all loans. Collateral may include, but is not limited to property, plant, and equipment, commercial and/or residential real estate property, land, and pledge of securities. In the event of a borrower’s default, the collateral supporting the loan may be seized in order to recoup losses associated with the loan. The Corporation also establishes an allowance for credit losses that constitutes the amount available to absorb losses within the loan portfolio that may exist due to deficiencies in collateral values. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 16 — STOCKHOLDERS’ EQUITY The Corporation also offers to its shareholders a Dividend Reinvestment and Stock Purchase Plan. Participation in this plan by shareholders began in 2001. The plan provides First Keystone shareholders a convenient and economical way to purchase additional shares of common stock by reinvesting dividends. A plan participant can elect full dividend reinvestment or partial dividend reinvestment provided at least 25 shares are enrolled in the plan. In addition, plan participants may make additional voluntary cash purchases of common stock under the plan of not less than $100 per calendar quarter or more than $2,500 in any calendar quarter. Shares transferred under this Dividend Reinvestment and Stock Purchase Plan were 101,902 in 2023 and 71,928 in 2022. Remaining shares authorized in the plan were 220,705 as of December 31, 2023. Shares of First Keystone common stock are purchased for the plan either in the open market by an independent broker on behalf of the plan, directly from First Keystone as original issue shares, or through negotiated transactions. A combination of the previous methods could also occur. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 17 — FAIR VALUE MEASUREMENTS Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell the asset or transfer the liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. This guidance provides additional information on determining when the volume and level of activity for the asset or liability has significantly decreased. The guidance also includes information on identifying circumstances when a transaction may not be considered orderly. Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed and significant adjustments to the related prices may be necessary to estimate fair value in accordance with the fair value measurement and disclosure guidance. This guidance clarifies that when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value. Fair value is 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. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own belief about the assumptions market participants would use in pricing the asset or liability based upon the best information available in the circumstances. Fair value measurement and disclosure guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs Level 2 Inputs Level 3 Inputs: A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth as follows. Financial Assets Measured at Fair Value on a Recurring Basis At December 31, 2023 and 2022, securities measured at fair value on a recurring basis and the valuation methods used are as follows: (Dollars in thousands) December 31, 2023 Level 1 Level 2 Level 3 Total Debt Securities Available-for-Sale: U.S. Treasury securities $ 7,041 $ — $ — $ 7,041 Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgaged-backed — 137,992 — 137,992 Other — 7,632 — 7,632 Other mortgage backed debt securities — 34,050 — 34,050 Obligations of state and political subdivisions — 87,703 — 87,703 Asset-backed securities — 82,162 — 82,162 Corporate debt securities — 36,388 — 36,388 Total debt securities available-for-sale 7,041 385,927 — 392,968 Marketable equity securities 1,482 — — 1,482 Total recurring fair value measurements $ 8,523 $ 385,927 $ — $ 394,450 (Dollars in thousands) December 31, 2022 Level 1 Level 2 Level 3 Total Debt Securities Available-for-Sale: U.S. Treasury securities $ 6,801 $ — $ — $ 6,801 Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgaged-backed — 131,675 — 131,675 Other — 11,180 — 11,180 Other mortgage backed debt securities — 33,688 — 33,688 Obligations of state and political subdivisions — 110,689 — 110,689 Asset-backed securities — 36,418 — 36,418 Corporate debt securities — 42,993 — 42,993 Total debt securities available-for-sale 6,801 366,643 — 373,444 Marketable equity securities 1,699 — — 1,699 Total recurring fair value measurements $ 8,500 $ 366,643 $ — $ 375,143 The estimated fair values of equity securities and US Treasury debt securities classified as Level 1 are derived from quoted market prices in active markets; the equity securities consist mainly of stocks held in other banks. The estimated fair values of all other debt securities classified as Level 2 are obtained from nationally-recognized third-party pricing agencies. The estimated fair values are derived primarily from cash flow models, which include assumptions for interest rates, credit losses, and prepayment speeds. The significant inputs utilized in the cash flow models are based on market data obtained from sources independent of the Corporation (observable inputs), and are therefore classified as Level 2 within the fair value hierarchy. The Corporation does not have any Level 3 inputs for securities. There were no transfers between Level 1 and Level 2 during 2023 and 2022. Financial Assets Measured at Fair Value on a Nonrecurring Basis Periodically, non-recurring adjustments may be applied to the carrying value of loans based on the fair value measurements for partial charge-offs of the uncollectible portions of these loans. Nonrecurring adjustments can also include certain specific allocation amounts for individually evaluated collateral-dependent loans as calculated when establishing the allowance for credit losses. The Corporation’s valuation procedure for any individually evaluated loans greater than $250,000 requires an appraisal to be obtained and reviewed annually at year end unless the Board of Directors waives such requirement for a specific loan, in favor of obtaining a Certificate of Inspection instead, defined as an internal evaluation completed by the Corporation. A quarterly collateral evaluation is performed which may include a site visit, property pictures and discussions with realtors and other similar business professionals to ascertain current values. For individually evaluated loans less than $250,000 upon classification and annually at year end, the Corporation completes a Certificate of Inspection, which includes an onsite inspection, and considers value indicators such as insured values, tax assessed values, recent sales comparisons and a review of the previous evaluations. These assets are included as Level 3 fair values, based upon the lowest level that is significant to the fair value measurements. The fair value consists of the individually evaluated loan balances less the valuation allowance and/or charge-offs. There were no transfers between valuation levels in 2023 and 2022. Following the adoption of ASU No. 2016-13, at December 31, 2023, individually evaluated loans measured at fair value on a nonrecurring basis were as follows: (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2023 Individually evaluated loans: Real Estate $ — $ — $ 1,990 $ 1,990 Total individually evaluated loans $ — $ — $ 1,990 $ 1,990 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2022 Impaired loans: Commercial Real Estate $ — $ — $ 5,167 $ 5,167 Residential Real Estate — — 30 30 Total impaired loans $ — $ — $ 5,197 $ 5,197 Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis There were no foreclosed assets held for resale measured at fair value on a nonrecurring basis at December 31, 2023 or December 31, 2022. The Corporation’s foreclosed asset valuation procedure requires an appraisal or a Certificate of Inspection, which considers the sales prices of similar properties in the proximate vicinity, to be completed periodically with the exception of those cases in which the Bank has obtained a sales agreement. These assets are included as Level 3 fair values, based upon the lowest level that is significant to the fair value measurements. There were no transfers between valuation levels in 2023 and 2022. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Corporation has utilized Level 3 inputs to determine the fair value: (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements Post-ASU No. 2016-13 Adoption: Fair Value Weighted December 31, 2023 Estimate Valuation Technique Unobservable Input Range Average Individually evaluated loans - collateral dependent $ 1,990 Appraisal of collateral 1,3 Certificate of Inspection 1,3 Appraisal adjustments 2 Qualitative Adjustments 4 (5%) – (5%) (5%) Pre-ASU No. 2016-13 Adoption: December 31, 2022 Impaired loans - collateral dependent $ 2,370 Appraisal of collateral 1,3 Certificate of Inspection 1,3 Appraisal adjustments 2 Qualitative Adjustments 4 (0%) – (5%) (5%) Impaired loans - other $ 2,827 Discounted cash flow Discount rate (4%) – (7%) (6%) 1. Fair value is generally determined through independent appraisals or Certificates of Inspection of the underlying collateral, as defined by Bank regulators. 2. Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value. 3. Includes qualitative adjustments by management and estimated liquidation expenses. 4. Collateral values may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. Fair Value of Financial Instruments Measured on a Nonrecurring Basis (Dollars in thousands) Carrying Fair Value Measurements at December 31, 2023 Amount Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Cash and due from banks $ 9,462 $ 9,462 $ — $ — $ 9,462 Interest-bearing deposits in other banks 7,551 — 7,551 — 7,551 Restricted investment in bank stocks 10,885 — 10,885 — 10,885 Net loans 904,153 — — 885,840 885,840 Mortgage servicing rights 265 — — 265 265 Accrued interest receivable 5,201 — 5,201 — 5,201 FINANCIAL LIABILITIES: Demand, savings and other deposits 686,321 — 686,321 — 686,321 Time deposits 294,118 — 292,073 — 292,073 Short-term borrowings 153,468 — 153,509 — 153,509 Long-term borrowings 122,000 — 125,343 — 125,343 Subordinated debentures 25,000 — 22,762 — 22,762 Accrued interest payable 2,823 — 2,823 — 2,823 Derivative Liabilities 4,501 — 4,501 — 4,501 (Dollars in thousands) Carrying Fair Value Measurements at December 31, 2022 Amount Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Cash and due from banks $ 9,441 $ 9,441 $ — $ — $ 9,441 Interest-bearing deposits in other banks 1,297 — 1,297 — 1,297 Restricted investment in bank stocks 7,136 — 7,136 — 7,136 Net loans 850,195 — — 810,104 810,104 Mortgage servicing rights 319 — — 319 319 Accrued interest receivable 4,391 — 4,391 — 4,391 FINANCIAL LIABILITIES: Demand, savings and other deposits 827,399 — 827,399 — 827,399 Time deposits 166,100 — 160,472 — 160,472 Short-term borrowings 153,418 — 153,209 — 153,209 Long-term borrowings 25,000 — 24,090 — 24,090 Subordinated debentures 25,000 — 22,365 — 22,365 Accrued interest payable 563 — 563 — 563 Derivative Liabilities — — — — — |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | NOTE 18 — REVENUE RECOGNITION The Corporation has elected to apply the guidance outlined in FASB ASC 606 regarding the measurement or recognition of revenue. The main types of revenue contracts included in non-interest income within the consolidated statements of income which are subject to ASC 606 are as follows: Deposit related fees and service charges Service charges and fees on deposits, which are included as liabilities in the consolidated balance sheets, consist of fees related to monthly fees for various retail and business checking accounts, automated teller machine (“ATM”) fees (charged for withdrawals by our deposit customers from other bank ATMs) and insufficient funds fees (“NSF”) (which are charged when customers overdraw their accounts beyond available funds). All deposit liabilities are considered to have one-day terms and therefore related fees are recognized in income at the time when the services are provided to the customers. The Corporation elected to adopt practical expedient related to incremental costs of obtaining deposit contracts. As such, any costs associated with acquiring the deposits, except for certificate of deposits (“CDs”) with maturities in excess of one year, are recognized as an expense within the non-interest expense in the consolidated statements of income when incurred as the amortization period of the deposit liabilities that otherwise would have been recognized is one year or less. Wealth/Asset/Trust Management Fees Wealth management services are delivered to individuals, corporations and retirement funds located primarily within the Corporation’s geographic markets. The Trust Department of the Corporation conducts the wealth management operations, which provides a broad range of personal and corporate fiduciary services, including the administration of estates. Assets held in a fiduciary capacity by the Trust Department are not assets of the Corporation and, therefore, are not included in the Corporation’s consolidated financial statements. Wealth management fees, which are contractually agreed with each customer, are earned each month and recognized on a cash basis based on average fair value of the trust assets under management. The services provided under such a contract are considered a single performance obligation under ASC 606 because they embody a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. Wealth management fees charged by the Trust Department follow a tiered structure based on the type and size of the assets under management. Wealth management fees are included within non-interest income in the consolidated statements of income. As of December 31, 2023 and 2022, the fair value of trust assets under management was $109,064,000 and $111,172,000, respectively. The costs of acquiring asset management customers are incremental and recognized within the non-interest expense of the consolidated statements of income. Interchange Fees and Surcharges Interchange fees are related to the acceptance and settlement of debit card transactions, both point-of-sale and ATM, to cover operating costs and risks associated with the approval and settlement of the transactions. Interchange fees vary by type of transaction and each merchant sector. Net income recognized from interchange fees is included in non-interest income on the consolidated statements of income. A surcharge is assessed for use of the Corporation’s ATMs by non-customers. All interchange fees and surcharges are recognized as received on a daily basis for the prior business day’s transactions. All expenses related to the settlement of debit card transactions (both point-of-sale and ATM) are recognized on a monthly basis and included in non-interest expense on the consolidated statements of income. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL. | |
GOODWILL | Impairment testing is performed on an annual basis, using either a qualitative or quantitative approach. The assumptions used in the impairment test of goodwill are susceptible to change based on changes in economic conditions and other factors, including our stock price. Any change in the assumptions utilized to determine the carrying value of goodwill could adversely affect our results of operations. Goodwill was evaluated for impairment at December 31, 2023, and it was determined that goodwill was not impaired. Management evaluated the need for an interim goodwill impairment analysis and determined that there were no triggering events or negative factors affecting goodwill since the previous test that would indicate goodwill was impaired as of December 31, 2023. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY FINANCIAL INFORMATION | |
PARENT COMPANY FINANCIAL INFORMATION | NOTE 20 — PARENT COMPANY FINANCIAL INFORMATION Condensed financial information for First Keystone Corporation (parent company only) was as follows: BALANCE SHEETS (Dollars in thousands) December 31, 2023 2022 ASSETS Cash $ 9,753 $ 13,860 Investment in banking subsidiary 135,301 129,456 Marketable equity securities 1,482 1,699 Prepaid expenses and other assets 551 854 TOTAL ASSETS $ 147,087 $ 145,869 LIABILITIES (Receivable) advances from banking subsidiary $ (307) $ 168 Subordinated Debentures 25,000 25,000 Accrued expenses and other liabilities 779 315 TOTAL LIABILITIES 25,472 25,483 STOCKHOLDERS’ EQUITY Common stock 12,705 12,502 Surplus 44,004 42,439 Retained earnings 100,260 100,712 Accumulated other comprehensive loss (29,645) (29,558) Treasury stock, at cost (5,709) (5,709) TOTAL STOCKHOLDERS’ EQUITY 121,615 120,386 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 147,087 $ 145,869 STATEMENTS OF INCOME (Dollars in thousands) Years Ended December 31, 2023 2022 INCOME Dividends from subsidiary bank $ 1,526 $ 6,102 Net securities losses (217) (93) Other income 94 98 TOTAL INCOME 1,403 6,107 EXPENSE Interest on subordinated debt 1,094 1,091 Other expense 217 195 TOTAL EXPENSE 1,311 1,286 INCOME BEFORE INCOME TAX BENEFIT 92 4,821 INCOME TAX BENEFIT (303) (275) 395 5,096 EQUITY IN UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY 5,165 8,928 NET INCOME $ 5,560 $ 14,024 STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Dollars in thousands) Years Ended December 31, 2023 2022 Net Income $ 5,560 $ 14,024 Other comprehensive loss: Equity in other comprehensive loss of banking subsidiary (87) (37,146) Total other comprehensive loss (87) (37,146) Total Comprehensive Income (Loss) $ 5,473 $ (23,122) STATEMENTS OF CASH FLOWS (Dollars in thousands) Years Ended December 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 5,560 $ 14,024 Adjustments to reconcile net income to net cash provided by operating activities: Losses on securities 217 93 Deferred income tax benefit (88) (34) Equity in undistributed earnings of banking subsidiary (5,165) (8,928) Increase in prepaid/accrued expenses and other assets/liabilities 869 47 Decrease in advances from banking subsidiary (474) (245) NET CASH PROVIDED BY OPERATING ACTIVITIES 919 4,957 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sales of equity securities — 170 NET CASH PROVIDED BY INVESTING ACTIVITIES — 170 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 1,754 1,635 Dividends paid (6,780) (6,690) NET CASH USED IN FINANCING ACTIVITIES (5,026) (5,055) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (4,107) 72 CASH AND CASH EQUIVALENTS, BEGINNING 13,860 13,788 CASH AND CASH EQUIVALENTS, ENDING $ 9,753 $ 13,860 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of First Keystone Corporation and its wholly-owned subsidiary, First Keystone Community Bank (the “Bank”). All significant inter-company balances and transactions have been eliminated in consolidation. |
Nature of Operations | Nature of Operations The Corporation, headquartered in Berwick, Pennsylvania, provides a full range of banking, trust and related services through its wholly-owned Bank subsidiary and is subject to competition from other financial institutions in connection with these services. The Bank serves a customer base which includes individuals, businesses, governments, and public and institutional customers primarily located in the Northeast Region of Pennsylvania. The Bank has 19 full service offices and 20 Automated Teller Machines (“ATM”) located in Columbia, Luzerne, Montour, Monroe, and Northampton counties. The Corporation must also adhere to certain federal and state banking laws and regulations and are subject to periodic examinations made by various state and federal agencies. |
Segment Reporting | Segment Reporting The Bank acts as an independent community financial services provider, and offers traditional banking and related financial services to individual, business, government, and public and institutional customers. Through its branch and ATM network, as well as online banking, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of other financial services. The Bank also performs personal, corporate, pension and fiduciary services through its trust department. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, trust and mortgage banking operations of the Corporation. As such, discrete financial information is not available and segment reporting would not be meaningful. |
Significant Concentrations of Credit Risk | Significant Concentrations of Credit Risk The majority of the Corporation’s activities involve customers located primarily in Columbia, Luzerne, Montour, Monroe, Northampton, and Lehigh counties in Pennsylvania. The types of securities in which the Corporation invests are presented in Note 2 – Securities. Credit risk as it relates to investment activities is moderated through the monitoring of ratings, geographic concentrations, etc. residing in the portfolio and the observance of minimum rating levels in the investment policy. Note 3 – Loans and Allowance for Credit Losses summarizes the types of lending in which the Corporation engages. The inherent risks associated with lending activities are mitigated by adhering to established underwriting practices and policies, as well as portfolio diversification and thorough monitoring of the loan portfolio. It is management’s opinion that the investment and loan portfolios were well balanced at December 31, 2023, to the extent necessary to avoid any significant concentrations of credit risk. |
Use of Estimates | Use of Estimates The preparation of these consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include the determination of allowance for securities losses, the assessment of possible impairment of equity securities, the determination of the allowance for credit losses, the assessment of goodwill for possible impairment, and the valuation of deferred taxes. |
Subsequent Events | Subsequent Events The Corporation has evaluated events and transactions occurring subsequent to the consolidated balance sheet date of December 31, 2023, for items that should potentially be recognized or disclosed in the consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. On February 27, 2024, the Board of Directors declared a dividend of $0.28 per share for the first quarter of 2024. The dividend is payable on March 28, 2024 to shareholders of record as of March 14, 2024. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and due from banks, interest-bearing deposits in other banks, and federal funds sold. The Corporation considers cash classified as interest-bearing deposits with other banks as a cash equivalent since they are represented by cash accounts essentially on a demand basis and mature within one year. Federal funds are also included as a cash equivalent because they are generally purchased and sold for one-day periods. |
Debt Securities | Debt Securities The Corporation classifies its debt securities as either “Held-to-Maturity” or “Available-for-Sale” at the time of purchase. Debt securities are accounted for on a trade date basis. Debt securities are classified as Held-to-Maturity when the Corporation has the ability and positive intent to hold the securities to maturity. Debt securities classified as Held-to-Maturity are carried at cost adjusted for amortization of premium and accretion of discount to maturity. At December 31, 2023 and 2022, all debt securities held were classified as available-for-sale. Debt securities not classified as Held-to-Maturity are included in the Available-for-Sale category and are carried at fair value. The amount of any unrealized gain or loss, net of the effect of deferred income taxes, is reported as accumulated other comprehensive loss (AOCI) in the consolidated balance sheets and consolidated statements of changes in stockholders’ equity. Management’s decision to sell Available-for-Sale securities is based on changes in economic conditions controlling the sources and applications of funds, terms, availability of and yield of alternative investments, interest rate risk and the need for liquidity. The cost of debt securities classified as Held-to-Maturity or Available-for-Sale is adjusted for amortization of premiums to the earliest call date and accretion of discounts to expected maturity. Such amortization and accretion, as well as interest and dividends, are included in interest and dividend income on securities. Realized gains and losses are included in net securities gains and losses in the consolidated statements of income. The cost of securities sold, redeemed or matured is based on the specific identification method. The Corporation invests in various forms of agency debt including residential and commercial mortgage-backed securities and callable debt. The mortgage-backed agency securities are issued by Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”), Government National Mortgage Association (“GNMA”) or Small Business Administration (“SBA”). The other mortgage-backed securities consist of private (non-agency) residential and commercial mortgage-backed securities. The municipal securities consist of general obligations and revenue bonds. Asset-backed securities consist of private (non-agency) student loan pools backed by the Federal Family Education Loan Program (“FFELP”) which carry a 97% federal government guarantee. Corporate debt securities consist of senior debt and subordinated debt holdings. Available-for-sale debt securities are required to be individually evaluated for impairment in accordance with ASC 326, Financial Instruments – Credit Losses. Management evaluates debt securities for impairment where there has been a decline in fair value below the amortized cost basis of a debt security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the debt security. The credit loss component would be recognized through the provision for credit losses and the creation of an allowance for credit losses. Consideration is given to (1) the financial condition and near-term prospects of the issuer, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) our intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or whether it is more-likely-than-not that we will be required to sell the debt security prior to recovering its fair value, (5) the anticipated outlook for changes in the general level of interest rates, (6) credit ratings, (7) third party guarantees, and (8) collateral values. In analyzing an issuer’s financial condition, management considers whether the debt securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the debt securities. All issues of U.S. Treasury and Agency-Backed debt securities have the full faith and credit backing of the United States Government or one of its agencies. All other debt securities that do not have a zero expected credit loss are evaluated quarterly to determine whether there is a credit loss associated with a decline in fair value. |
Equity Securities | Equity Securities In accordance with ASC 825-10, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. Equity securities without readily determinable fair values are recorded at cost less impairment, if any. Management evaluates equity securities for impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Equity securities without readily determinable fair values are generally evaluated for impairment under FASB ASC 321, Equity Securities. In determining impairment under the FASB ASC 321 model, management considers many factors, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the equity security or more likely than not will be required to sell the equity security before its anticipated recovery. The assessment of whether an impairment exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. If an impairment loss on an equity security is considered to exist, a loss in the amount of the difference between the cost and fair value of the security is recognized. Once the impairment is recorded, this becomes the new cost basis of the equity security and cannot be adjusted upward if there is a subsequent recovery in the fair value of the security. |
Restricted Investment in Bank Stocks | Restricted Investment in Bank Stocks The Corporation owns restricted stock investments in the Federal Home Loan Bank of Pittsburgh (“FHLB-Pittsburgh”) and Atlantic Community Bankers Bank (“ACBB”). These investments do not have a readily determinable fair value because their ownership is restricted and they can be sold back only to the FHLB-Pittsburgh, ACBB or to another member institution. Therefore, these investments are carried at cost. At December 31, 2023, the Corporation held $10,850,000 in stock of FHLB-Pittsburgh and $35,000 in stock of ACBB. At December 31, 2022, the Corporation held $7,101,000 in stock of FHLB-Pittsburgh and $35,000 in stock of ACBB. Management evaluates the restricted investment in bank stocks for impairment on a quarterly basis. Management’s determination of whether these investments are impaired is based on management’s assessment of the ultimate recoverability of the cost of these investments rather than by recognizing temporary declines in value. The following factors were evaluated to determine the ultimate recoverability of the cost of the Corporation’s restricted investment in bank stocks; (i) the significance of the decline in net assets of the correspondent bank as compared to the capital stock amount for the correspondent bank and the length of time this situation has persisted; (ii) commitments by the correspondent bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of the correspondent bank; (iii) the impact of legislative and regulatory changes on the institutions and, accordingly, on the customer base of the correspondent bank; and (iv) the liquidity position of the correspondent bank. Based on the analysis of these factors, management determined that no impairment charge was necessary related to the restricted investment in bank stocks during 2023 or 2022. |
Loans | Loans Net loans are stated at their outstanding recorded investment, net of deferred fees and costs, unearned income The loans receivable portfolio is segmented into the following segments: Real Estate (including both Real Estate Lending The Corporation engages in real estate lending to commercial borrowers in its primary market area and surrounding areas. The commercial component of the Corporation’s Real Estate portfolio is secured primarily by commercial retail space, commercial office buildings, residential housing and hotels. Generally, these loans have terms that do not exceed twenty years , have loan-to-value ratios of up to eighty percent of the value of the collateral property, and are typically supported by personal guarantees of the borrowers. In underwriting these loans, the Corporation performs a thorough analysis of the financial condition of the Real estate loans secured by commercial properties generally present a higher level of risk than loans secured by residential real estate. Repayment of loans secured by commercial real estate is typically dependent upon the The residential component of the Corporation’s Real Estate portfolio is comprised of one-to-four family residential mortgage loan originations, home equity term loans and home equity lines of credit. These loans are generated by the Corporation’s marketing efforts, its present customers, walk-in customers and referrals. These loans are originated primarily with customers from the Corporation’s market area. The Corporation’s one-to-four family residential mortgage originations are secured principally by properties located in its primary market area and surrounding areas. The Corporation offers fixed-rate mortgage loans with terms up to a maximum of thirty years for both permanent structures and those under construction. Loans with terms of thirty years typically have a maximum loan-to-value of eighty percent and a maximum term of fifteen years. In general, home equity In underwriting one-to-four family residential mortgage loans, the Corporation evaluates the borrower’s ability to make monthly payments, the borrower’s prior loan repayment history and the value of the property securing the loan. Residential mortgage loans, home equity term loans and home equity lines of credit generally present a lower Residential mortgage loans held for sale are carried at the lower of cost or market on an aggregate basis determined by independent pricing from appropriate federal or state agency investors. These loans are sold without recourse. Loans held for sale amounted to $214,000 and $71,000 at December 31, 2023 and 2022, respectively. Agricultural Lending The Corporation originates agricultural loans to individuals in the farming industry for funding the production of crops or to purchase or refinance capital assets such as farmland, livestock, machinery, equipment, and farm real estate improvements. Agricultural loans are typical secured by collateral related to the farming activities. These loans originate from customers within the Corporation’s primary market area or the surrounding areas. In underwriting agricultural loans, an analysis is performed regarding the borrower’s ability to repay the loan, Commercial and Industrial Lending The Corporation originates commercial and industrial loans principally to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes, which include short-term loans and lines of credit to finance machinery and equipment, inventory and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and are reviewed annually. Commercial and industrial loans are generally secured with short-term assets; however, in many cases, In underwriting commercial and industrial loans, an analysis is performed to evaluate the borrower’s character and capacity to repay the loan, the adequacy of the borrower’s capital and collateral, as well as the conditions affecting the borrower. Evaluation of the borrower’s past, present and future cash flows is also an important aspect of the Corporation’s analysis of the borrower’s ability to repay. Commercial and industrial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions. Commercial and industrial loans are typically made on the basis of the borrower’s ability to make repayment from cash flows from the borrower’s primary business activities. As a result, the availability of funds for the repayment of commercial and industrial loans is dependent on the success of the business itself, which in turn, is likely to be dependent upon the general economic environment. As an addition to the commercial loans receivable portfolio, the Corporation may purchase the guaranteed portion of loans secured by the U.S. Government. The originating bank retains the unguaranteed portion of the loan. The loans are sponsored by one of the various government agencies including the SBA, United States Department of Agriculture (“USDA”), and the Farm Service Agency (“FSA”). Government Guaranteed Loans ("GGLs") carry no credit risk due to an unconditional and irrevocable guarantee (which is supported by the full faith and credit of the U.S. Government) on all principal and the balance of interest accruing through ninety days beyond the date that demand is made to the originating bank for repurchase of the loan. As of December 31, 2023, the Company's balance of GGLs was $4,470,000 , compared to $4,631,000 at December 31, 2022. Consumer Lending The Corporation offers a variety of secured and unsecured consumer loans, including vehicle loans, stock secured loans and loans secured by financial institution deposits. These loans originate primarily with customers from the Corporation’s market area. Consumer loan terms vary according to the type and value of collateral and creditworthiness of the borrower. In underwriting personal loans, a thorough analysis is performed regarding the borrower’s willingness and financial ability to repay the loan as agreed. The ability and willingness to repay is assessed based upon the borrower’s employment history, current financial condition and credit background. Consumer loans may entail greater credit risk than residential real estate loans, particularly in the case of personal loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, repossessed collateral for a defaulted personal loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, personal loan collections are dependent on the borrower’s continuing financial stability and therefore, are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. State and Political Subdivisions Lending The Corporation, from time to time, may originate loans to state and political subdivisions that are within the Corporation’s primary market area or surrounding areas. These loans may be either taxable or tax-free. These loans may be issued for the purpose of land improvement, infrastructure changes, bond refinances, or the purchase of equipment. State and political loans are typically secured by the taxing power of the borrowing entity. In some cases, the loans may also be secured by the property/item being purchased. Audited financial statements are required as part of the underwriting for all state and political loans and a full analysis of all components of the audited statements is performed. If the loan is to be classified as tax-free, a letter from the entity’s solicitor stating such is required, as well. The risk associated with these types of loans is considerably less than commercial loan transactions. Repayment is based on the full faith, credit, and ability of the borrowing entity to tax and then collect the payments. Delinquency or loss on these types of loans is de minimus. |
Delinquent Loans | Delinquent Loans Generally, a loan is considered to be past-due when scheduled loan payments are in arrears 10 days or more. 15 days exists for improvement in the status of the loan. Past-due loans are continually evaluated with the determination for charge-off being made when no reasonable chance remains that the status of the loan can be improved. Commercial and industrial loans and real estate loans issued for commercial purpose are charged off in whole or in part when they become sufficiently delinquent based upon the terms of the underlying loan contract and when a Real estate loans issued for residential purposes and consumer loans are charged off when they become sufficiently delinquent based upon the terms of the underlying loan contract and when the value of the underlying collateral is not sufficient to support the loan balance and a loss is expected. At that time, the amount of estimated collateral deficiency, if any, is charged off for loans secured by collateral, and all other loans are charged off in full. Existing loans in which the borrower has declared bankruptcy are considered on a case by case basis to Generally, a loan is classified as non-accrual and the accrual of interest on such a loan is discontinued when the |
Allowance for Loan Losses | Allowance for Credit Losses The allowance for credit losses (“ACL”) is an estimate of losses arising from borrowers’ inability to make loan payments as required, which is calculated via a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio. The Corporation completed a one-time adjustment to The ACL is maintained at a level estimated by management to be adequate to absorb potential loan losses. Modeling of the ACL uses sophisticated statistical techniques to arrive at reasonable and supportable forecasts of expected losses. The Corporation has contracted with a third-party vendor to assist in developing models for the ACL related to the Corporation’s loan portfolio under Accounting Standards Update (“ASU”) 2016-13. The Corporation has opted to utilize the Weighted Average Remaining Maturity (“WARM”) method to calculate the ACL which uses an average annual charge-off rate. This average annual charge-off rate contains loss content over several vintages and is used as a foundation for estimating the credit loss content for loans by segmented pools at the balance sheet date and is used to determine a historical charge-off rate. When estimating expected credit losses, the Corporation considers forward-looking information that is both reasonable, supportable, and relevant to assessing the collectability of cash flows. Reasonable and supportable forecasts may extend over the entire contractual term of a loan or a period shorter than the contractual term. Reasonable and supportable forecasts may vary by portfolio segment or individual forecast input. These forecasts may include data from internal sources, external sources, or a combination of both. When the contractual term of a loan extends beyond the reasonable and supportable period, ASC Topic 326 The methodology used to determine the ACL also includes a qualitative component in which the Corporation adjusts expected credit loss estimates for information not already captured in the loss estimation process. These qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Changes in the The Corporation’s ACL is calculated by collectively evaluating and individually evaluating loans. The Corporation collectively evaluates applicable loans based on segments according to their homogeneous characteristics, aligned with the segmentation of the FDIC Bank Call Report. The Corporation collectively evaluates loans and determines applicable loss rates based on the following segments/classes: Real Estate ● Construction, land development, and other land loans ● Residential construction (loans to build homes, both speculative and owner-occupied, and 1-4 ● family lot loans) ● Agribusiness, farmland, or secured by farmland ● Revolving, open-end, 1-4 family residential properties (and extended under lines of credit) ● Loans secured by first liens ● Loans secured by junior liens ● Secured by multifamily (5 or more) residential properties ● Loans secured by owner occupied, non-farm, non-residential properties ● Loans secured by other non-farm, non-residential properties Agricultural ● Loans to finance agricultural production and other loans for farmers Commercial and Industrial ● Commercial and industrial loans Consumer ● Other revolving credit plans ● Automobile loans ● Other consumer loans State and Political Subdivisions ● Obligations (other than securities or leases) of states and political subdivisions in the U.S. In accordance with ASC 326-20-30-2, the Corporation will evaluate individual loans for expected credit losses when the loans do not share similar risk characteristics with loans evaluated using the collective method. Management ● The present value of expected cash flows, discounted at the loan’s effective interest rate (i.e. the contractual interest rate adjusted for any net deferred loan fees or costs, premium, or discount existing at the origination or acquisition of the loan) ● The loan’s observable market price ● The fair value of the collateral if the loan is deemed to be collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the liquidation of the underlying collateral and there are no other available and reliable sources of repayment. Management will consider estimated costs to sell, on a discounted basis, in the measurement of impairment if these costs are expected to reduce the cash flows available to repay the loan. Any portion of the recorded investment for a collateral dependent loan (including any capitalized accrued interest, net deferred loan fees or costs, and unamortized premium or discount) exceeding the fair value of the collateral that can be identified as uncollectible is deemed a confirmed loss and will be charged off against the ACL Loans that have been individually measured for impairment may have a portion of the allowance allocated to ASU 2022-02, Loan Modifications Experiencing Financial Difficulty, eliminated the accounting guidance for losses. Any modifications of loans to borrowers experiencing financial difficulty that are classified as non-accrual or are otherwise designated as collateral dependent are individually evaluated for determination of expected credit losses. The most common types of concessions granted upon modification of a loan to a borrower experiencing financial difficulties include: (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the There may be certain types of loans for which the expectation of credit loss is zero after evaluating historical loss information, making necessary adjustments for current conditions and reasonable and supportable forecasts, and A loan that is fully secured by cash or cash equivalents, such as a certificate of deposit issued by the lending institution, would likely have zero credit loss expectations. Similarly, the guaranteed portion of an SBA loan purchased on the secondary market through the SBA’s fiscal and transfer agent would likely have zero credit loss expectations because these financial assets are unconditionally guaranteed by the U.S. government. ASC Topic 326 introduces the concept of purchased credit deteriorated (“PCD”) assets. PCD assets are acquired financial assets that, at acquisition, have experienced more-than-insignificant deterioration in credit quality A reserve for unfunded lending commitments is provided for possible credit losses on off-balance sheet credit exposures. Off-balance sheet credit exposures primarily include undrawn portions of revolving lines of credit and The Corporation made a policy election to exclude accrued interest receivable from the amortized cost basis of The Corporation is subject to periodic examination by its federal and state examiners, and may be required by The Corporation utilizes a risk grading matrix as a tool for managing credit risk in the loan portfolio and assigns an asset quality rating (risk grade) to all loans. An asset quality rating is assigned using the guidance provided in the The commercial loan grading system focuses on a borrower’s financial strength and performance, experience and depth of management, primary and secondary sources of repayment, the nature of the business and the outlook for The loan grading system for residential real estate secured and consumer loans focuses on the borrower’s credit score and credit history, debt-to-income ratio and income sources, collateral position and loan-to-value ratio. Risk grade characteristics are as follows: Risk Grade 1 – MINIMAL RISK through Risk Grade 6 – MANAGEMENT ATTENTION (Pass Grade Categories) Risk is evaluated via examination of several attributes including but not limited to financial trends, strengths and weaknesses, likelihood of repayment when considering both cash flow and collateral, sources of repayment, At the low-risk end of the rating scale, a risk grade of 1 – Minimal Risk is the grade reserved for loans with Risk Grade 7 − SPECIAL MENTION (Non-Pass Category) Assets in this category are adequately collateralized but have potential weakness which may, if not checked or Risk Grade 8 − SUBSTANDARD (Non-Pass Category) Generally, these assets are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have “well-defined” weaknesses that jeopardize the full These loans are characterized by the distinct possibility that the Corporation will sustain some loss if the Risk Grade 9 − DOUBTFUL (Non-Pass Category) Generally, loans graded doubtful have all the weaknesses inherent in a substandard loan with the added factor that the weaknesses are pronounced to a point whereby the basis of current information, conditions, and values, |
Premises and Equipment, net | Premises and Equipment, net Premises and equipment are stated at cost less accumulated depreciation computed principally utilizing the straight-line method over the estimated useful lives of the assets. Long-lived assets are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying value may not be recovered. Maintenance and minor repairs are charged to operations as incurred. The cost and accumulated depreciation of the premises and equipment retired or sold are eliminated from the property accounts at the time of retirement or sale, and the resulting gain or loss is reflected in current operations. |
Mortgage Servicing Rights | Mortgage Servicing Rights The Corporation originates and sells real estate loans to investors in the secondary mortgage market. After the sale, the Corporation may retain the right to service these loans. The mortgage loans sold and serviced for others are not included in the consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $82,489,000 and $87,671,000 at December 31, 2023 and 2022, respectively. When originated mortgage loans are sold and servicing is retained, a servicing asset is capitalized based on relative fair value at the date of the sale. Servicing assets are amortized as an offset to other fees in proportion to, and over the period of, estimated net servicing income. The servicing asset is included in other assets in the consolidated balance sheets and amounted to $265,000 at December 31, 2023 and $319,000 at December 31, 2022. The amount of servicing income earned was $213,000 and $230,000 at December 31, 2023 and 2022, respectively. Amortization recognized in relation to mortgage servicing rights was $72,000 and $88,000 at December 31, 2023 and 2022, respectively. Both income and amortization are included in service charges and fees on the consolidated statements of income. Gains or losses on sales of mortgage loans are recognized based on the differences between the selling price and the carrying value of the related mortgage loans sold. |
Bank Owned Life Insurance | Bank Owned Life Insurance The cash surrender value of bank owned life insurance is carried as an asset, and changes in cash surrender value are recorded as non-interest income in the consolidated statements of income. The Corporation entered into agreements to provide post-retirement benefits to two retired employees in the form of life insurance payable to the employee’s beneficiaries upon their death through endorsement split dollar life insurance arrangements. The Corporation’s accrued liabilities for this benefit agreement as of December 31, 2023 and 2022 which are included in other liabilities in the Corporation’s consolidated balance sheets were $62,000 and $53,000, respectively. The related (expense) income for this benefit agreement amounted to $(9,000) in 2023 and $3,000 in 2022. The expense recognized in 2023 was the result of service costs associated with the benefit agreement. |
Investments in Low-Income Housing Partnerships | Investments in Low-Income Housing Partnerships The Corporation is a limited partner in real estate ventures that own and operate affordable residential low-income housing apartment buildings for elderly and mentally challenged adult residents. The investments are accounted for under the cost method. Under the cost method, the Corporation recognizes tax credits as they are allocated and amortizes the initial cost of the investment over the period that the tax credits are allocated to the Corporation. The amount of tax credits allocated to the Corporation were $484,000 and $249,000 in 2023 and 2022, respectively, and the amortization of the investments in the limited partnerships were $231,000 and $225,000 in 2023 and 2022, respectively. During 2021, the Corporation became a limited partner in a real estate venture with an initial investment of $435,000. In 2023 and 2022, capital contributions and other fees related to the project in the combined amount of $2,429,000 and $2,458,000, respectively, were made in relation to the new real estate venture. The new limited partnership began amortizing in December 2023. |
Goodwill | Goodwill Goodwill resulted from the acquisition of the Pocono Community Bank in November 2007 and of certain fixed and operating assets acquired and deposit liabilities assumed of the branch of another financial institution in Danville, Pennsylvania, in January 2004. Such goodwill represents the excess cost of the acquired assets relative to the assets fair value at the dates of acquisition. During the first quarter of 2008, $152,000 of liabilities related to the Pocono acquisition were recorded as a purchase accounting adjustment resulting in an increase in the excess purchase price. The amount was comprised of the finalization of severance agreements and contract terminations related to the acquisition. In accordance with current accounting standards, goodwill is not amortized. Management performs an annual evaluation for impairment. Any impairment of goodwill results in a charge to income. The Corporation periodically assesses whether events or changes in circumstances indicate that the carrying amounts of goodwill and other intangible assets may be impaired. Goodwill is evaluated for impairment at the reporting unit level and an impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. |
Foreclosed Assets Held for Resale | Foreclosed Assets Held for Resale Real estate properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell on the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed and if fair value less cost to sell declines subsequent to foreclosure, a valuation allowance is recorded through expense. Revenues derived from and costs to maintain the assets and subsequent gains and losses on sales are included in non-interest expense on the consolidated statements of income. |
Income Taxes | Income Taxes The Corporation accounts for income taxes in accordance with income tax accounting guidance FASB ASC Topic 740, Income Taxes. Current income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Corporation determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Corporation accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50%; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. The Corporation recognizes interest and penalties on income taxes, if any, as a component of income tax expense in the consolidated statements of income. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Corporation. At December 31, 2023 and 2022, there were no potential common shares outstanding. The following table sets forth the computation of basic and diluted earnings per share. (In thousands, except earnings per share) Year Ended December 31, 2023 2022 Net income $ 5,560 $ 14,024 Weighted-average common shares outstanding 6,054 5,974 Basic and diluted earnings per share $ 0.91 $ 2.35 |
Treasury Stock | Treasury Stock The purchase of the Corporation’s common stock is recorded at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on a first-in-first-out basis. |
Trust Assets And Revenues | Trust Assets and Revenues Property held by the Corporation in a fiduciary or agency capacity for its customers is not included in the accompanying consolidated financial statements since such items are not assets of the Corporation. Assets held in trust were $109,064,000 and $111,172,000 at December 31, 2023 and 2022, respectively. Trust Department income is generally recognized on a cash basis and is not materially different than if it were reported on an accrual basis (see Table 5 – Non-Interest Income for details). |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Corporation is required to present accumulated other comprehensive income (loss) in a full set of general-purpose financial statements for all periods presented. Accumulated other comprehensive income (loss) is comprised of net unrealized holding (losses) gains on the debt securities available-for-sale and derivative portfolios. The Corporation has elected to report these effects on the consolidated statements of comprehensive income (loss). |
Advertising Costs | Advertising Costs It is the Corporation’s policy to expense advertising costs in the period in which they are incurred. |
Recent Accounting Standards Updates | Recent Accounting Standards Updates: Adopted ASUs In January of 2023, the Corporation adopted ASU No. 2016-13, Financial Instruments-Credit Losses (Topic about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Corporation took steps to prepare for the implementation over the January 1, 2023 As Reported Under ASU Pre- Impact of Assets: Allowance For Credit Losses $ (7,155) $ (8,274) $ 1,119 Deferred Income Taxes 8,925 9,129 (204) A Liabilities: Other Liabilities 9,446 9,299 147 B Equity: Retained Earnings 101,480 100,712 768 C A. Effect on deferred tax assets related to the adjustment to the allowance for credit losses and reserve for unfunded lending commitments from the adoption of ASU 2016-13 using a 21% tax rate B. Adjustment to the reserve for unfunded lending commitments related to the adoption of ASU 2016-13 C. Adjustment to undistributed profits related to the adoption of ASU 2016-13 In January of 2023, the Corporation adopted ASU No. 2022-02, Financial Instruments-Credit Losses (Topic Pending ASUs In March of 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-02, Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the exercise significant influence over the operating and financial policies of the underlying project, 3. substantially all of the projected benefits are from income tax credits and other income tax benefits, 4. the investor’s projected yield based solely on the cash flows from the income tax credits and other income tax benefits is positive, and 5. the investor is a In December of 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires enhanced income tax disclosures related to the rate reconciliation and information related to income taxes paid. The ASU was issued to enhance transparency and decision usefulness of income tax disclosures. The standard requires: 1. consistent categories and greater disaggregation of information in the rate reconciliation, and 2. income taxes paid, net of refunds received, disaggregated by jurisdiction based on an established threshold. The amendments in this ASU will be applied on a prospective basis and retrospective application is permitted. The amendments in this update are effective for public business entities for fiscal years, and interim periods within those fiscal years beginning after December 15, 2024. Early adoption is permitted for all entities in any interim period. The Corporation is currently evaluating the provisions of ASU 2023-09 and does not expect the adoption of the standard to have a material impact on the Corporation’s financial statements. |
Transfer of Financial Assets | Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control over assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Corporation has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the consolidated balance sheets when they are funded. |
Reclassifications | Reclassifications Certain amounts previously reported have been reclassified, when necessary, to conform with presentations used in the 2023 consolidated financial statements. Such reclassifications have no effect on the Corporation’s net income. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of basic and diluted earnings per share | (In thousands, except earnings per share) Year Ended December 31, 2023 2022 Net income $ 5,560 $ 14,024 Weighted-average common shares outstanding 6,054 5,974 Basic and diluted earnings per share $ 0.91 $ 2.35 |
Schedule of the effect of the adoption of the ASU | January 1, 2023 As Reported Under ASU Pre- Impact of Assets: Allowance For Credit Losses $ (7,155) $ (8,274) $ 1,119 Deferred Income Taxes 8,925 9,129 (204) A Liabilities: Other Liabilities 9,446 9,299 147 B Equity: Retained Earnings 101,480 100,712 768 C A. Effect on deferred tax assets related to the adjustment to the allowance for credit losses and reserve for unfunded lending commitments from the adoption of ASU 2016-13 using a 21% tax rate B. Adjustment to the reserve for unfunded lending commitments related to the adoption of ASU 2016-13 C. Adjustment to undistributed profits related to the adoption of ASU 2016-13 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SECURITIES | |
Schedule of amortized cost, related estimated fair value, and unrealized gains and losses for debt securities classified as Available-For-Sale | Debt Securities Available-for-Sale (Dollars in thousands) Gross Gross Amortized Unrealized Unrealized Fair December 31, 2023: Cost Gains Losses Value U.S. Treasury securities $ 7,881 $ — $ (840) $ 7,041 Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgage-backed 152,510 — (14,518) 137,992 Other 7,560 126 (54) 7,632 Other mortgage backed securities 36,623 168 (2,741) 34,050 Obligations of state and political subdivisions 97,899 18 (10,214) 87,703 Asset-backed securities 82,852 150 (840) 82,162 Corporate debt securities 40,647 74 (4,333) 36,388 Total $ 425,972 $ 536 $ (33,540) $ 392,968 Debt Securities Available-for-Sale (Dollars in thousands) Gross Gross Amortized Unrealized Unrealized Fair December 31, 2022: Cost Gains Losses Value U.S. Treasury securities $ 7,853 $ — $ (1,052) $ 6,801 Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgage-backed 146,707 — (15,032) 131,675 Other 10,992 233 (45) 11,180 Other mortgage backed securities 36,767 — (3,079) 33,688 Obligations of state and political subdivisions 125,176 266 (14,753) 110,689 Asset-backed securities 37,526 — (1,108) 36,418 Corporate debt securities 45,838 183 (3,028) 42,993 Total $ 410,859 $ 682 $ (38,097) $ 373,444 |
Schedule of amortized cost and estimated fair value of debt securities, by contractual maturity | (Dollars in thousands) Available-for-Sale Amortized Cost Fair Value 1 year or less $ 9,283 $ 9,282 Over 1 year through 5 years 27,963 26,457 Over 5 years through 10 years 66,364 58,915 Over 10 years 133,230 126,272 Mortgage-backed securities 189,132 172,042 Total $ 425,972 $ 392,968 |
Schedule of Holdings Of Securities From Issuers In Excess Of Ten Percent Of Consolidated Stockholders Equity | (Dollars in thousands) Fair December 31, 2023: Value Issuer Sallie Mae Bank $ 25,737 Nelnet Student Loan Trust 15,486 Navient Student Loan Trust 13,179 (Dollars in thousands) Fair December 31, 2022: Value Issuer Sallie Mae Bank $ 17,362 |
Schedule of unrealized losses and fair value of the corporations debt securities | December 31, 2023 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available-for-Sale: Value Loss Value Loss Value Loss U.S. Treasury securities $ — $ — $ 7,041 $ (840) $ 7,041 $ (840) Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgage-backed 23,103 (242) 102,608 (14,276) 125,711 (14,518) Other — — 3,029 (54) 3,029 (54) Other mortgage-backed debt securities 1,568 (1) 25,042 (2,740) 26,610 (2,741) Obligations of state and political subdivisions — — 82,113 (10,214) 82,113 (10,214) Asset-backed securities 52,862 (342) 12,726 (498) 65,588 (840) Corporate debt securities 2,813 (270) 30,501 (4,063) 33,314 (4,333) Total $ 80,346 $ (855) $ 263,060 $ (32,685) $ 343,406 $ (33,540) December 31, 2022 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available-for-Sale: Value Loss Value Loss Value Loss U.S. Treasury securities $ — $ — $ 6,801 $ (1,052) $ 6,801 $ (1,052) Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgage-backed 61,067 (2,184) 65,174 (12,848) 126,241 (15,032) Other 1,589 (2) 3,168 (43) 4,757 (45) Other mortgage-backed debt securities 16,167 (962) 17,521 (2,117) 33,688 (3,079) Obligations of state and political subdivisions 56,565 (5,881) 35,704 (8,872) 92,269 (14,753) Asset-backed securities 24,136 (405) 12,282 (703) 36,418 (1,108) Corporate debt securities 15,827 (1,073) 18,345 (1,955) 34,172 (3,028) Total $ 175,351 $ (10,507) $ 158,995 $ (27,590) $ 334,346 $ (38,097) |
Schedule of realized gains and losses recognized in net income on equity securities | (Dollars in thousands) December 31, 2023 December 31, 2022 Net losses from market value fluctuations recognized during the period on equity securities $ (217) $ (93) Less: Net gains recognized during the period on equity securities sold during the period — 27 Net losses recognized during the reporting period on equity securities still held at the reporting date $ (217) $ (120) |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Schedule of classes of the loan portfolio summarized by risk rating | (Dollars in thousands) Real Estate: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ 110,819 $ 186,729 $ 132,724 $ 110,038 $ 54,543 $ 192,686 $ 787,539 7 Special Mention — — — — — — — 8 Substandard — 86 587 3,661 9,452 9,598 23,384 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs 130 176 153 116 (13) 8 570 Total Real Estate Loans $ 110,949 $ 186,991 $ 133,464 $ 113,815 $ 63,982 $ 202,292 $ 811,493 Agricultural: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ — $ 59 $ — $ — $ — $ 611 $ 670 7 Special Mention — — — — — — — 8 Substandard — — — — — — — 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs — 1 — — — — 1 Total Agricultural Loans $ — $ 60 $ — $ — $ — $ 611 $ 671 Commercial and Industrial: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ 12,672 $ 10,186 $ 5,776 $ 7,439 $ 6,833 $ 22,927 $ 65,833 7 Special Mention — — — — — — — 8 Substandard — — — — — 650 650 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs 95 83 24 17 208 (1) 426 Total Commercial and Industrial Loans $ 12,767 $ 10,269 $ 5,800 $ 7,456 $ 7,041 $ 23,576 $ 66,909 Consumer: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ 2,415 $ 1,238 $ 926 $ 206 $ 110 $ 802 $ 5,697 7 Special Mention 58 — — — — — 58 8 Substandard — — — — — — — 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs 38 20 8 2 1 — 69 Total Consumer Loans $ 2,511 $ 1,258 $ 934 $ 208 $ 111 $ 802 $ 5,824 State and Political Subdivisions: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ 731 $ 4,095 $ 14,139 $ 1,905 $ — $ 5,303 $ 26,173 7 Special Mention — — — — — — — 8 Substandard — — — — — — — 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs 2 1 4 1 — — 8 Total State and Political Subdivision Loans $ 733 $ 4,096 $ 14,143 $ 1,906 $ — $ 5,303 $ 26,181 Total Loans: 2023 2022 2021 2020 2019 Prior Total 1-6 Pass $ 126,637 $ 202,307 $ 153,565 $ 119,588 $ 61,486 $ 222,329 $ 885,912 7 Special Mention 58 — — — — — 58 8 Substandard — 86 587 3,661 9,452 10,248 24,034 9 Doubtful — — — — — — — Unearned discount — — — — — — — Net deferred loan fees and costs 265 281 189 136 196 7 1,074 Total Loans $ 126,960 $ 202,674 $ 154,341 $ 123,385 $ 71,134 $ 232,584 $ 911,078 2023 2022 2021 2020 2019 Prior Total Gross Charge Offs: Real Estate $ — $ — $ — $ — $ — $ — $ — Agricultural — — — — — — — Commercial and Industrial — — — — — — — Consumer 2 23 13 2 4 13 57 State and Political Subdivisions — — — — — — — Total Gross Charge Offs $ 2 $ 23 $ 13 $ 2 $ 4 $ 13 $ 57 Commercial and Industrial Commercial Real Estate December 31, December 31, 2022 2022 Grade: 1-6 Pass $ 85,845 $ 591,309 7 Special Mention — 634 8 Substandard 725 18,781 9 Doubtful — — Add (deduct): Unearned discount — — Net deferred loan fees and costs 429 825 Total loans $ 86,999 $ 611,549 Residential Real Estate Including Home Equity Consumer December 31, December 31, 2022 2022 Grade: 1-6 Pass $ 153,902 $ 5,349 7 Special Mention — — 8 Substandard 795 — 9 Doubtful — — Add (deduct): Unearned discount — — Net deferred loan fees and costs (191) 66 Total loans $ 154,506 $ 5,415 Total Loans December 31, 2022 Grade: 1-6 Pass $ 836,405 7 Special Mention 634 8 Substandard 20,301 9 Doubtful — Add (deduct): Unearned discount — Net deferred loan fees and costs 1,129 Total loans $ 858,469 |
Loans individually or collectively evaluated for their impairment and related allowance, by loan class | The activity in the allowance for credit losses by loan class (post adoption of ASU No. 2016-13), is summarized below for the year ended December 31, 2023. (Dollars in thousands) State and Real Commercial Political Estate Agricultural and Industrial Consumer Subdivisions Total As of and for the year ended December 31, 2023: Allowance for Credit Losses: Balance at December 31, 2022 $ 7,483 $ 6 $ 504 $ 84 $ 197 $ 8,274 CECL adoption adjustment (717) (4) (261) 11 (148) (1,119) Beginning balance January 1, 2023 6,766 2 243 95 49 7,155 Charge-offs — — — (57) — (57) Recoveries 37 — 2 5 — 44 (Credit) Provision (264) (1) 20 35 (7) (217) Ending Balance $ 6,539 $ 1 $ 265 $ 78 $ 42 $ 6,925 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 6,539 $ 1 $ 265 $ 78 $ 42 $ 6,925 Reserve for Unfunded Lending Commitments $ 140 $ — $ 25 $ — $ 1 $ 166 Loans Receivable: Ending Balance $ 811,493 $ 671 $ 66,909 $ 5,824 $ 26,181 $ 911,078 Ending balance: individually evaluated for impairment $ 4,005 $ 309 $ 611 $ — $ — $ 4,925 Ending balance: collectively evaluated for impairment $ 807,488 $ 362 $ 66,298 $ 5,824 $ 26,181 $ 906,153 (Dollars in thousands) 2023 Balance at December 31, 2022 $ 68 CECL adoption adjustment 147 Credit for credit losses on unfunded commitments (49) Balance at December 31, 2023 $ 166 (Dollars in thousands) December 31, 2023 Recorded Recorded Unpaid Unpaid Investment Investment Principal Principal Total With With No Total Balance With Balance With Unpaid Related Related Recorded Related No Related Principal Related Allowance Allowance Investment Allowance Allowance Balance Allowance Real Estate $ — $ 4,005 $ 4,005 $ — $ 5,994 $ 5,994 $ — Agricultural — 309 309 — 309 309 — Commercial and Industrial — 611 611 — 611 611 — Total $ — $ 4,925 $ 4,925 $ — $ 6,914 $ 6,914 $ — (Dollars in thousands) Year Ended December 31, 2023 Average Average Interest Interest Recorded Recorded Income Income Investment Investment Total Recognized Recognized Total With With No Average With With No Interest Related Related Recorded Related Related Income Allowance Allowance Investment Allowance Allowance Recognized Real Estate $ — $ 4,380 $ 4,380 $ — $ — $ — Agricultural — 309 309 — 24 24 Commercial and Industrial — 643 643 — — — Total $ — $ 5,332 $ 5,332 $ — $ 24 $ 24 (Dollars in thousands) Commercial Commercial Residential and Industrial Real Estate Real Estate Consumer Unallocated Total As of and for the year ended December 31, 2022: Allowance for Loan Losses: Beginning balance $ 681 $ 5,408 $ 1,539 $ 84 $ 968 $ 8,680 Charge-offs (158) (3) (12) (33) — (206) Recoveries 3 40 16 5 — 64 Provision (Credit) 178 487 14 25 (968) (264) Ending Balance $ 704 $ 5,932 $ 1,557 $ 81 $ — $ 8,274 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 704 $ 5,932 $ 1,557 $ 81 $ — $ 8,274 Loans Receivable: Ending Balance $ 86,999 $ 611,549 $ 154,506 $ 5,415 $ — $ 858,469 Ending balance: individually evaluated for impairment $ 973 $ 9,495 $ 739 $ — $ — $ 11,207 Ending balance: collectively evaluated for impairment $ 86,026 $ 602,054 $ 153,767 $ 5,415 $ — $ 847,262 |
Schedule of recorded investment, unpaid principal balance, related allowance, average recorded investment, and interest income recognized with respect to the Corporation's impaired loans | (Dollars in thousands) December 31, 2022 Recorded Recorded Unpaid Unpaid Investment Investment Principal Principal Total With With No Total Balance With Balance With Unpaid Related Related Recorded Related No Related Principal Related Allowance Allowance Investment Allowance Allowance Balance Allowance Commercial and Industrial $ — $ 973 $ 973 $ — $ 973 $ 973 $ — Commercial Real Estate — 9,495 9,495 — 12,430 12,430 — Residential Real Estate — 739 739 — 771 771 — Total $ — $ 11,207 $ 11,207 $ — $ 14,174 $ 14,174 $ — (Dollars in thousands) Year Ended December 31, 2022 Average Average Interest Interest Recorded Recorded Income Income Investment Investment Total Recognized Recognized Total With With No Average With With No Interest Related Related Recorded Related Related Income Allowance Allowance Investment Allowance Allowance Recognized Commercial and Industrial $ — $ 992 $ 992 $ — $ 14 $ 14 Commercial Real Estate — 10,741 10,741 — 294 294 Residential Real Estate — 841 841 — 1 1 Total $ — $ 12,574 $ 12,574 $ — $ 309 $ 309 |
Schedule of financial receivables that are collateral-dependent loans | (Dollars in thousands) December 31, 2023 Real Estate Other Real Estate $ 4,005 $ — Agricultural — 309 Commercial and Industrial — 611 Total $ 4,005 $ 920 |
Schedule of total non-performing assets | (Dollars in thousands) December 31, December 31, 2023 2022 Real Estate $ 4,005 $ 4,387 Agricultural — — Commercial and Industrial 611 664 Consumer — — State and Political Subdivisions — — Total non-accrual loans 4,616 5,051 Foreclosed assets held for resale — — Loans past-due 90 days or more and still accruing interest 1,065 308 Total non-performing assets $ 5,681 $ 5,359 |
Schedule of the classes of the loan portfolio, including non-accrual loans and TDRs, summarized by past-due status | The following tables present the classes of the loan portfolio summarized by the past-due status at December 31, 2023 and 2022: (Dollars in thousands) 90 Days Or Greater Past Due 90 Days Current- and Still 30-59 Days 60-89 Days or Greater Total 29 Days Total Accruing Past Due Past Due Past Due Past Due Past Due Loans Interest December 31, 2023: Real Estate $ 2,155 $ 379 $ 5,069 $ 7,603 $ 803,890 $ 811,493 $ 1,065 Agricultural — — — — 671 671 — Commercial and Industrial 6 — 591 597 66,312 66,909 — Consumer 21 4 — 25 5,799 5,824 — State and Political Subdivisions — — — — 26,181 26,181 — Total $ 2,182 $ 383 $ 5,660 $ 8,225 $ 902,853 $ 911,078 $ 1,065 (Dollars in thousands) 90 Days Or Greater Past Due 90 Days Current- and Still 30-59 Days 60-89 Days or Greater Total 29 Days Total Accruing Past Due Past Due Past Due Past Due Past Due Loans Interest December 31, 2022: Real Estate $ 2,682 $ 59 $ 4,694 $ 7,435 $ 757,445 $ 764,880 $ 308 Agricultural — — — — 860 860 — Commercial and Industrial 61 63 640 764 55,313 56,077 — Consumer 11 2 — 13 5,694 5,707 — State and Political Subdivisions — — — — 30,945 30,945 — Total $ 2,754 $ 124 $ 5,334 $ 8,212 $ 850,257 $ 858,469 $ 308 |
Schedule of the outstanding recorded investment of TDRs | (Dollars in thousands) December 31, 2022 Non-accrual TDRs $ 1,324 Accruing TDRs 6,156 Total $ 7,480 |
Schedule of the loan modifications categorized as TDRs | (Dollars in thousands) Year Ended December 31, 2022 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Recorded Contracts Investment Investment Investment Commercial Real Estate 2 $ 481 $ 515 $ 501 Total 2 $ 481 $ 515 $ 501 |
Schedule of loan modifications made for loans categorized as TDRs | Year Ended December 31, 2022 Rate Term Payment Number Modification Modification Modification Modified Commercial Real Estate — — 2 2 Total — — 2 2 |
PREMISES AND EQUIPMENT, NET (Ta
PREMISES AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREMISES AND EQUIPMENT, NET | |
Schedule of Premises and equipment, net | Premises and equipment, net at December 31, 2023 and 2022 is as follows: (Dollars in thousands) Estimated Useful Life (in years) 2023 2022 Land N/A $ 3,744 $ 3,744 Buildings 5-40 23,197 22,114 Leasehold improvements 1-20 338 335 Equipment 3-25 8,352 7,937 35,631 34,130 Less: Accumulated depreciation 16,020 15,106 Total $ 19,611 $ 19,024 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DEPOSITS | |
Schedule of major classifications of deposits | Major classifications of deposits at December 31, 2023 and 2022 consisted of: (Dollars in thousands) December 31, December 31, 2023 2022 Non-interest bearing demand $ 198,569 $ 231,754 Interest bearing demand 275,472 335,559 Savings 212,280 260,086 Time certificates of deposits less than $250,000 259,841 151,575 Time certificates of deposits $250,000 or greater 33,185 13,400 Other time 1,092 1,125 Total deposits $ 980,439 $ 993,499 |
Schedule of classification and remaining maturities of time deposits | The following is a schedule reflecting classification and remaining maturities of time deposits at December 31, 2023: (Dollars in thousands) Year Ending 2024 $ 210,589 2025 27,592 2026 28,108 2027 3,020 2028 19,309 Thereafter 5,500 Total time deposits $ 294,118 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM BORROWINGS. | |
Schedule of Short-term borrowings and weighted-average interest rates | (Dollars in thousands) December 31, 2023 December 31, 2022 Average Average Amount Rate Amount Rate Federal funds purchased $ — 6.57 % $ — — % Securities sold under agreements to repurchase 19,708 3.28 % 20,368 0.84 % Federal Discount Window 1 4.99 % — 2.78 % Federal Home Loan Bank of Pittsburgh 133,759 5.45 % 133,050 2.82 % Total $ 153,468 5.21 % $ 153,418 2.21 % |
Schedule of short-term borrowings subject to an enforceable master netting arrangement or repurchase agreements | (Dollars in thousands) Gross Net Amounts Amounts of Liabilities Offset Presented Gross in the in the Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral Net Liabilities Sheet Sheet Instruments Pledge Amount December 31, 2023 Repurchase agreements (a) $ 19,708 $ — $ 19,708 $ (19,708) $ — $ — December 31, 2022 Repurchase agreements (a) $ 20,368 $ — $ 20,368 $ (20,368) $ — $ — (a) As of December 31, 2023 and 2022, the fair value of securities pledged in connection with repurchase agreements was $28,902,000 and $34,160,000 , respectively . |
Schedule of the remaining contractual maturity of the master netting arrangement or repurchase agreements | (Dollars in thousands) Remaining Contractual Maturity of the Agreements Overnight Greater Greater and Up to 30 -90 than Continuous 30 days Days 90 Days Total December 31, 2023: Repurchase agreements and repurchase-to-maturity transactions: U.S. Treasury and/or agency securities $ 19,708 $ — $ — $ — $ 19,708 Total $ 19,708 $ — $ — $ — $ 19,708 |
LONG-TERM BORROWINGS (Tables)
LONG-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LONG-TERM BORROWINGS | |
Schedule of long-term borrowings by maturity | (Dollars in thousands) 2023 2022 Due 2023, 2.96% $ — $ 3,000 Due 2024, 1.68% 20,000 20,000 Due 2026, 4.62% to 4.92% 60,000 — Due 2028, 4.46% to 5.14% 42,000 2,000 Total long-term borrowings $ 122,000 $ 25,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of current and deferred components of the income tax expense | (Dollars in thousands) 2023 2022 Federal Current $ 431 $ 2,180 Deferred 253 114 Income tax expense $ 684 $ 2,294 |
Schedule of reconciliation between the income tax expense and the amount of income taxes | (Dollars in thousands) 2023 2022 Amount Rate Amount Rate Federal income tax at statutory rate $ 1,311 21.0 % $ 3,427 21.0 % Tax-exempt income (106) (1.7) (749) (4.6) Low-income housing credits (484) (7.7) (249) (1.5) Bank owned life insurance income (130) (2.1) (125) (0.7) Prior year tax adjustments 82 1.3 — — Other 11 0.2 (10) (0.1) Income tax expense and rate $ 684 11.0 % $ 2,294 14.1 % |
Schedule of components of the net deferred tax asset | (Dollars in thousands) 2023 2022 Deferred Tax Assets: Net unrealized losses on debt securities available-for-sale and derivatives $ 7,880 $ 7,857 Allowance for loan losses 1,454 1,738 Provision for unfunded commitments 35 14 Deferred compensation 218 238 Contributions 4 6 Accrued rent expense 106 103 Operating lease liabilities 415 426 Finance lease liabilities — 1 Limited partnership investments 322 313 Impairment loss on securities 4 4 Deferred health insurance 53 48 Capital and net operating loss carry forwards 285 258 Valuation allowance related to state net operating losses (285) (258) Total 10,491 10,748 Deferred Tax Liabilities: Loan fees and costs 225 237 Net unrealized gains on marketable equity securities 231 319 Operating lease right-of-use assets 415 426 Accumulated depreciation 438 287 Accretion 172 36 Mortgage servicing rights 58 57 Intangibles 257 257 Total 1,796 1,619 Net Deferred Tax Asset $ 8,695 $ 9,129 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of weighted-average term and discount rates for operating and finance leases | December 31, December 31, December 31, December 31, 2023 2022 2023 2022 Operating Operating Finance Finance Weighted-average term (years) 19.75 20.56 - 0.67 Weighted-average discount rate 4.22% 4.23% -% 0.68% |
Schedule of maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows | (Dollars in thousands) December 31, December 31, December 31, December 31, 2023 2022 2023 2022 Minimum Lease Payments due: Operating Operating Finance Finance Within one year $ 175 $ 175 $ — $ 7 After one but within two years 140 140 — — After two but within three years 140 140 — — After three but within four years 154 140 — — After four but within five years 157 154 — — After five years 2,317 2,474 — — Total undiscounted cash flows 3,083 3,223 — 7 Discount on cash flows (1,107) (1,194) — (1) Total lease liability $ 1,976 $ 2,029 $ — $ 6 |
Schedule of maturity analysis of finance lease liabilities and reconciliation of the undiscounted cash flows | (Dollars in thousands) December 31, December 31, December 31, December 31, 2023 2022 2023 2022 Minimum Lease Payments due: Operating Operating Finance Finance Within one year $ 175 $ 175 $ — $ 7 After one but within two years 140 140 — — After two but within three years 140 140 — — After three but within four years 154 140 — — After four but within five years 157 154 — — After five years 2,317 2,474 — — Total undiscounted cash flows 3,083 3,223 — 7 Discount on cash flows (1,107) (1,194) — (1) Total lease liability $ 1,976 $ 2,029 $ — $ 6 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Schedule of fair value of the Company's derivative financial instruments | (Dollars in thousands) December 31, 2023 Derivative Assets Derivative Liabilities Location Fair Value Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Other Assets $ — Other Liabilities $ 4,501 Total $ — $ 4,501 (Dollars in thousands) December 31, 2022 Derivative Assets Derivative Liabilities Location Fair Value Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps Other Assets $ — Other Liabilities $ — Total $ — $ — |
Schedule of derivative liabilities subject to an enforceable master netting arrangement | Gross Net Amounts Amounts of Liabilities Offset Presented Gross in the in the (Dollars in thousands) Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral Net Liabilities Sheet Sheet Instruments Pledge Amount December 31, 2023 Derivatives $ 4,501 $ — $ 4,501 $ — $ (4,501) $ — December 31, 2022 Derivatives $ — $ — $ — $ — $ — $ — |
Schedule of the remaining contractual maturity of the master netting arrangements | Remaining Contractual Maturity of the Agreements Greater (Dollars in thousands) Up to 1 to 3 3 to 5 than 1 Year Years Years 5 Years Total December 31, 2023: Derivatives $ — $ — $ 4,501 $ — $ 4,501 Total $ — $ — $ 4,501 $ — $ 4,501 |
Schedule of cumulative amount of fair value hedging adjustment included carrying amount of hedged assets | (Dollars in thousands) December 31, December 31, 2023 2022 Carrying amount of hedged assets: Closed Portfolio Amount Closed Portfolio Amount Available-for-sale - Municipals $ 50,964 $ — Available-for-sale - MBS 35,806 — Total $ 86,770 $ — Interest rate swaps notional amount $ 50,000 $ — |
Schedule of cumulative amount of fair value hedging adjustment included carrying amount of assets | (Dollars in thousands) December 31, December 31, 2023 2022 Cumulative amount of fair value hedging adjustment included in the carrying amount of assets: Available-for-sale - Municipals $ (1,230) $ — Available-for-sale - MBS (407) — Total $ (1,637) $ — |
Schedule of pre-tax effects of the Company's derivative instruments designated as fair value hedges | (Dollars in thousands) December 31, 2023 2022 Amount of loss recognized in other comprehensive loss $ (1,637) $ — Amount of gain, net of fair value re-measurements, included in interest income 168 — |
Schedule of pre-tax effects of the Company's derivative instruments designated as cash flow hedges | (Dollars in thousands) December 31, 2023 2022 Amount of loss recognized in other comprehensive loss $ (2,885) $ — Amount of gain reclassified from accumulated other comprehensive loss to interest expense 274 — Interest rate swaps notional amount $ 100,000 $ — |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
Schedule of of the activity on the related party loans | (Dollars in thousands) 2023 2022 Balance at January 1 $ 9,647 $ 11,184 Additions 909 3,645 Deductions (1,358) (5,182) Balance at December 31 $ 9,198 $ 9,647 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REGULATORY MATTERS | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | (Dollars in thousands) For Capital Minimum Capital To Be Well Capitalized Adequacy Adequacy with Under Prompt Corrective Actual Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023: Total Capital (to Risk-Weighted Assets) $ 151,381 15.68 % $ 77,247 8.00 % $ 101,386 10.50 % $ 96,558 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 144,290 14.94 % $ 57,935 6.00 % $ 82,074 8.50 % $ 77,247 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 144,290 14.94 % $ 43,451 4.50 % $ 67,591 7.00 % $ 62,763 6.50 % Tier 1 Capital (to Average Assets) $ 144,290 10.38 % $ 55,615 4.00 % $ 55,615 4.00 % $ 69,518 5.00 % (Dollars in thousands) For Capital Minimum Capital To Be Well Capitalized Adequacy Adequacy with Under Prompt Corrective Actual Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022: Total Capital (to Risk-Weighted Assets) $ 148,223 16.15 % $ 73,429 8.00 % $ 96,375 10.50 % $ 91,786 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 139,881 15.24 % $ 55,071 6.00 % $ 78,018 8.50 % $ 73,429 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 139,881 15.24 % $ 41,304 4.50 % $ 64,250 7.00 % $ 59,661 6.50 % Tier 1 Capital (to Average Assets) $ 139,881 10.38 % $ 53,908 4.00 % $ 53,908 4.00 % $ 67,385 5.00 % |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK | |
Schedule of Financial instruments whose contract amounts representing credit risk | (Dollars in thousands) December 31, 2023 December 31, 2022 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 116,954 $ 121,938 Financial standby letters of credit $ 2,120 $ 2,124 Performance standby letters of credit $ 3,688 $ 3,472 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
Schedule of securities measured at fair value on a recurring basis | At December 31, 2023 and 2022, securities measured at fair value on a recurring basis and the valuation methods used are as follows: (Dollars in thousands) December 31, 2023 Level 1 Level 2 Level 3 Total Debt Securities Available-for-Sale: U.S. Treasury securities $ 7,041 $ — $ — $ 7,041 Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgaged-backed — 137,992 — 137,992 Other — 7,632 — 7,632 Other mortgage backed debt securities — 34,050 — 34,050 Obligations of state and political subdivisions — 87,703 — 87,703 Asset-backed securities — 82,162 — 82,162 Corporate debt securities — 36,388 — 36,388 Total debt securities available-for-sale 7,041 385,927 — 392,968 Marketable equity securities 1,482 — — 1,482 Total recurring fair value measurements $ 8,523 $ 385,927 $ — $ 394,450 (Dollars in thousands) December 31, 2022 Level 1 Level 2 Level 3 Total Debt Securities Available-for-Sale: U.S. Treasury securities $ 6,801 $ — $ — $ 6,801 Obligations of U.S. Government Agencies and Sponsored Agencies: Mortgaged-backed — 131,675 — 131,675 Other — 11,180 — 11,180 Other mortgage backed debt securities — 33,688 — 33,688 Obligations of state and political subdivisions — 110,689 — 110,689 Asset-backed securities — 36,418 — 36,418 Corporate debt securities — 42,993 — 42,993 Total debt securities available-for-sale 6,801 366,643 — 373,444 Marketable equity securities 1,699 — — 1,699 Total recurring fair value measurements $ 8,500 $ 366,643 $ — $ 375,143 |
Schedule of individually evaluated loans measured at fair value on a nonrecurring basis | (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2023 Individually evaluated loans: Real Estate $ — $ — $ 1,990 $ 1,990 Total individually evaluated loans $ — $ — $ 1,990 $ 1,990 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2022 Impaired loans: Commercial Real Estate $ — $ — $ 5,167 $ 5,167 Residential Real Estate — — 30 30 Total impaired loans $ — $ — $ 5,197 $ 5,197 |
Schedule of fair value measurement inputs and valuation techniques | (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements Post-ASU No. 2016-13 Adoption: Fair Value Weighted December 31, 2023 Estimate Valuation Technique Unobservable Input Range Average Individually evaluated loans - collateral dependent $ 1,990 Appraisal of collateral 1,3 Certificate of Inspection 1,3 Appraisal adjustments 2 Qualitative Adjustments 4 (5%) – (5%) (5%) Pre-ASU No. 2016-13 Adoption: December 31, 2022 Impaired loans - collateral dependent $ 2,370 Appraisal of collateral 1,3 Certificate of Inspection 1,3 Appraisal adjustments 2 Qualitative Adjustments 4 (0%) – (5%) (5%) Impaired loans - other $ 2,827 Discounted cash flow Discount rate (4%) – (7%) (6%) 1. Fair value is generally determined through independent appraisals or Certificates of Inspection of the underlying collateral, as defined by Bank regulators. 2. Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value. 3. Includes qualitative adjustments by management and estimated liquidation expenses. 4. Collateral values may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Schedule of fair value of financial instruments, including financial assets and financial liabilities | (Dollars in thousands) Carrying Fair Value Measurements at December 31, 2023 Amount Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Cash and due from banks $ 9,462 $ 9,462 $ — $ — $ 9,462 Interest-bearing deposits in other banks 7,551 — 7,551 — 7,551 Restricted investment in bank stocks 10,885 — 10,885 — 10,885 Net loans 904,153 — — 885,840 885,840 Mortgage servicing rights 265 — — 265 265 Accrued interest receivable 5,201 — 5,201 — 5,201 FINANCIAL LIABILITIES: Demand, savings and other deposits 686,321 — 686,321 — 686,321 Time deposits 294,118 — 292,073 — 292,073 Short-term borrowings 153,468 — 153,509 — 153,509 Long-term borrowings 122,000 — 125,343 — 125,343 Subordinated debentures 25,000 — 22,762 — 22,762 Accrued interest payable 2,823 — 2,823 — 2,823 Derivative Liabilities 4,501 — 4,501 — 4,501 (Dollars in thousands) Carrying Fair Value Measurements at December 31, 2022 Amount Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Cash and due from banks $ 9,441 $ 9,441 $ — $ — $ 9,441 Interest-bearing deposits in other banks 1,297 — 1,297 — 1,297 Restricted investment in bank stocks 7,136 — 7,136 — 7,136 Net loans 850,195 — — 810,104 810,104 Mortgage servicing rights 319 — — 319 319 Accrued interest receivable 4,391 — 4,391 — 4,391 FINANCIAL LIABILITIES: Demand, savings and other deposits 827,399 — 827,399 — 827,399 Time deposits 166,100 — 160,472 — 160,472 Short-term borrowings 153,418 — 153,209 — 153,209 Long-term borrowings 25,000 — 24,090 — 24,090 Subordinated debentures 25,000 — 22,365 — 22,365 Accrued interest payable 563 — 563 — 563 Derivative Liabilities — — — — — |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | BALANCE SHEETS (Dollars in thousands) December 31, 2023 2022 ASSETS Cash $ 9,753 $ 13,860 Investment in banking subsidiary 135,301 129,456 Marketable equity securities 1,482 1,699 Prepaid expenses and other assets 551 854 TOTAL ASSETS $ 147,087 $ 145,869 LIABILITIES (Receivable) advances from banking subsidiary $ (307) $ 168 Subordinated Debentures 25,000 25,000 Accrued expenses and other liabilities 779 315 TOTAL LIABILITIES 25,472 25,483 STOCKHOLDERS’ EQUITY Common stock 12,705 12,502 Surplus 44,004 42,439 Retained earnings 100,260 100,712 Accumulated other comprehensive loss (29,645) (29,558) Treasury stock, at cost (5,709) (5,709) TOTAL STOCKHOLDERS’ EQUITY 121,615 120,386 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 147,087 $ 145,869 |
Schedule of condensed statements of Income | STATEMENTS OF INCOME (Dollars in thousands) Years Ended December 31, 2023 2022 INCOME Dividends from subsidiary bank $ 1,526 $ 6,102 Net securities losses (217) (93) Other income 94 98 TOTAL INCOME 1,403 6,107 EXPENSE Interest on subordinated debt 1,094 1,091 Other expense 217 195 TOTAL EXPENSE 1,311 1,286 INCOME BEFORE INCOME TAX BENEFIT 92 4,821 INCOME TAX BENEFIT (303) (275) 395 5,096 EQUITY IN UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY 5,165 8,928 NET INCOME $ 5,560 $ 14,024 |
Schedule of condensed statements of comprehensive (loss) income | STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Dollars in thousands) Years Ended December 31, 2023 2022 Net Income $ 5,560 $ 14,024 Other comprehensive loss: Equity in other comprehensive loss of banking subsidiary (87) (37,146) Total other comprehensive loss (87) (37,146) Total Comprehensive Income (Loss) $ 5,473 $ (23,122) |
Schedule of condensed statements of cash flows | STATEMENTS OF CASH FLOWS (Dollars in thousands) Years Ended December 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 5,560 $ 14,024 Adjustments to reconcile net income to net cash provided by operating activities: Losses on securities 217 93 Deferred income tax benefit (88) (34) Equity in undistributed earnings of banking subsidiary (5,165) (8,928) Increase in prepaid/accrued expenses and other assets/liabilities 869 47 Decrease in advances from banking subsidiary (474) (245) NET CASH PROVIDED BY OPERATING ACTIVITIES 919 4,957 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sales of equity securities — 170 NET CASH PROVIDED BY INVESTING ACTIVITIES — 170 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 1,754 1,635 Dividends paid (6,780) (6,690) NET CASH USED IN FINANCING ACTIVITIES (5,026) (5,055) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (4,107) 72 CASH AND CASH EQUIVALENTS, BEGINNING 13,860 13,788 CASH AND CASH EQUIVALENTS, ENDING $ 9,753 $ 13,860 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Net income | $ 5,560 | $ 14,024 |
Weighted-average common shares outstanding, basic | 6,054 | 5,974 |
Basic earnings per share | $ 0.91 | $ 2.35 |
Diluted earnings per share | $ 0.91 | $ 2.35 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2008 USD ($) | Dec. 31, 2023 USD ($) employee shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Feb. 27, 2024 $ / shares | Jan. 20, 2024 USD ($) | |
Tax Credits On Investments In Low Income Housing Partnerships | $ 484,000 | $ 249,000 | ||||
Amortization Of Investments In Limited Partnerships | $ 231,000 | 225,000 | ||||
Number of retired employees | employee | 2 | |||||
Goodwill impairment | $ 0 | |||||
Loan Payments Delinquency Period Beyond Which Loans Considered Past Due | 10 days | |||||
Loan Payments Delinquency Period Beyond Which Loans May Be Considered Non Accrual | 90 days | |||||
Assets Held-in-trust | $ 109,064,000 | 111,172,000 | ||||
Loans Receivable Held-for-sale, Amount | 214,000 | 71,000 | ||||
Unpaid principal balance | 911,078,000 | 858,469,000 | ||||
Purchase of investment in real estate venture | (2,415,000) | (2,458,000) | $ (435,000) | |||
Amount of capital contributions | 2,429,000 | $ 2,458,000 | ||||
Reserve For Unfunded Lending Commitments | $ 166,000 | |||||
Number of common stock shares outstanding potential | shares | 0 | 0 | ||||
Retained earnings | $ 100,260,000 | $ 100,712,000 | ||||
Allowance for credit losses | 6,925,000 | 8,274,000 | 8,680,000 | |||
Mortgage Loan Service [Member] | ||||||
Loans Serviced For Others | 82,489,000 | 87,671,000 | ||||
Servicing Asset at Fair Value, Amount | 265,000 | 319,000 | ||||
Fees and Commissions, Mortgage Banking and Servicing | 213,000 | 230,000 | ||||
Amortization of Mortgage Servicing Rights (MSRs) | 72,000 | 88,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Retained earnings | 768,000 | |||||
Allowance for credit losses | (1,119,000) | |||||
Subsequent Event | ||||||
Loan Amount | $ 9,455,000 | |||||
Dividends Payable, Amount Per Share | $ / shares | $ 0.28 | |||||
Unfunded Loan Commitment [Member] | ||||||
Reserve For Unfunded Lending Commitments | $ 166,000 | 68,000 | ||||
Minimum | ||||||
Loan Payments, Delinquency Period, at which time Delinquency Notice is Automatically Generated | 10 | |||||
Maximum | ||||||
Loan Payments, Delinquency Period, at which time Delinquency Notice is Automatically Generated | P10D | |||||
commercial real estate | ||||||
Unpaid principal balance | 611,549,000 | |||||
Allowance for credit losses | 5,932,000 | 5,408,000 | ||||
commercial real estate | Maximum | ||||||
Term of Loan Offering | 20 years | |||||
Maximum loan to value ratio | 80% | |||||
residential real estate | ||||||
Loans Receivable Held-for-sale, Amount | $ 214,000 | 71,000 | ||||
Unpaid principal balance | 154,506,000 | |||||
Allowance for credit losses | 1,557,000 | $ 1,539,000 | ||||
residential real estate | Maximum | ||||||
Maximum loan to value ratio | 80% | |||||
Maximum loan to value ratio with PMI | 95% | |||||
residential real estate | Maximum | Held for Investment [Member] | ||||||
Term of Loan Offering | 20 years | |||||
residential real estate | Maximum | Residential Mortgage [Member] | ||||||
Term of Loan Offering | 30 years | |||||
residential real estate | Maximum | Home Equity Loan [Member] | ||||||
Term of Loan Offering | 15 years | |||||
Maximum loan to value ratio | 80% | |||||
residential real estate | Maximum | Home Equity Line of Credit [Member] | ||||||
Term of Loan Offering | 20 years | |||||
Maximum loan to value ratio | 80% | |||||
Agricultural | ||||||
Unpaid principal balance | $ 671,000 | 860,000 | ||||
Allowance for credit losses | $ 1,000 | 6,000 | ||||
Agricultural | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Allowance for credit losses | (4,000) | |||||
Agricultural | Maximum | ||||||
Term of Loan Offering | 10 years | |||||
Maximum loan to value ratio | 70% | |||||
Bank Owned Life Insurance [Member] | ||||||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 62,000 | 53,000 | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | (9,000) | 3,000 | ||||
Pocono Community Bank [Member] | ||||||
Goodwill, Purchase Accounting Adjustments | $ 152,000 | |||||
Federal Home Loan Bank of Pittsburgh [Member] | ||||||
Restricted Investment in Bank Stocks | 10,850,000 | 7,101,000 | ||||
Atlantic Central Bankers Bank [Member] | ||||||
Restricted Investment in Bank Stocks | $ 35,000 | 35,000 | ||||
Full Service Offices [Member] | ||||||
Number of Stores | 19 | |||||
Automated Teller [Member] | ||||||
Number of Stores | 20 | |||||
GGLs | ||||||
Unpaid principal balance | $ 4,470,000 | $ 4,631,000 | ||||
Originated For Resale [Member] | residential real estate | Maximum | Residential Mortgage [Member] | ||||||
Term of Loan Offering | 30 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASU (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | $ (6,925,000) | $ (8,274,000) | $ (8,680,000) |
Deferred income taxes | 8,695,000 | 9,129,000 | |
Other Liabilities | 8,549,000 | 9,299,000 | |
Retained earnings | $ 100,260,000 | $ 100,712,000 | |
Effective tax rate | 11% | 14.10% | |
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | $ (7,155,000) | ||
Deferred income taxes | 8,925,000 | ||
Other Liabilities | 9,446,000 | ||
Retained earnings | 101,480,000 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | 1,119,000 | ||
Deferred income taxes | (204,000) | ||
Other Liabilities | 147,000 | ||
Retained earnings | $ 768,000 | ||
Effective tax rate | 21% |
SECURITIES - Amortized cost, re
SECURITIES - Amortized cost, related estimated fair value, and unrealized gains and losses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available-for-Sale Securities | ||
Amortized Cost | $ 425,972 | $ 410,859 |
Gross Unrealized Gains | 536 | 682 |
Gross Unrealized Losses | (33,540) | (38,097) |
Total | 392,968 | 373,444 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 0 | |
Other mortgage backed securities | ||
Available-for-Sale Securities | ||
Amortized Cost | 36,623 | 36,767 |
Gross Unrealized Gains | 168 | 0 |
Gross Unrealized Losses | (2,741) | (3,079) |
Total | 34,050 | 33,688 |
U.S. Treasury and/or agency securities | ||
Available-for-Sale Securities | ||
Amortized Cost | 7,881 | 7,853 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (840) | (1,052) |
Total | 7,041 | 6,801 |
Obligations of U.S. Government Agencies and Sponsored Agencies Mortgage-Backed | ||
Available-for-Sale Securities | ||
Amortized Cost | 152,510 | 146,707 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (14,518) | (15,032) |
Total | 137,992 | 131,675 |
Obligations of U.S. Government Agencies and Sponsored Agencies Other | ||
Available-for-Sale Securities | ||
Amortized Cost | 7,560 | 10,992 |
Gross Unrealized Gains | 126 | 233 |
Gross Unrealized Losses | (54) | (45) |
Total | 7,632 | 11,180 |
Obligations of state and political subdivisions | ||
Available-for-Sale Securities | ||
Amortized Cost | 97,899 | 125,176 |
Gross Unrealized Gains | 18 | 266 |
Gross Unrealized Losses | (10,214) | (14,753) |
Total | 87,703 | 110,689 |
Asset backed securities | ||
Available-for-Sale Securities | ||
Amortized Cost | 82,852 | 37,526 |
Gross Unrealized Gains | 150 | 0 |
Gross Unrealized Losses | (840) | (1,108) |
Total | 82,162 | 36,418 |
Corporate debt securities | ||
Available-for-Sale Securities | ||
Amortized Cost | 40,647 | 45,838 |
Gross Unrealized Gains | 74 | 183 |
Gross Unrealized Losses | (4,333) | (3,028) |
Total | $ 36,388 | $ 42,993 |
SECURITIES - Aging of amortized
SECURITIES - Aging of amortized cost and fair value of debt securities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Available-For-Sale - Amortized cost | |
Within 1 Year | $ 9,283 |
1 - 5 Years | 27,963 |
5 - 10 Years | 66,364 |
After 10 Years | 133,230 |
Total | 425,972 |
Available-For-Sale - Estimated fair value | |
Within 1 Year | 9,282 |
1 - 5 Years | 26,457 |
5 - 10 Years | 58,915 |
After 10 Years | 126,272 |
Total | 392,968 |
Mortgage backed securities | |
Available-For-Sale - Amortized cost | |
Total | 189,132 |
Available-For-Sale - Estimated fair value | |
Total | $ 172,042 |
SECURITIES - Securities From Is
SECURITIES - Securities From Issuers In Excess Of Ten Percent Of Consolidated Stockholders' Equity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale, Excluding Accrued Interest | $ 392,968 | $ 373,444 |
Stockholders' Equity | Securities Holdings Concentration Risk | Sallie Mae Bank securities | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 25,737 | $ 17,362 |
Stockholders' Equity | Securities Holdings Concentration Risk | Nelnet Student Loan Trust | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 15,486 | |
Stockholders' Equity | Securities Holdings Concentration Risk | Navient Student Loan Trust | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | $ 13,179 |
SECURITIES - Continuous unreali
SECURITIES - Continuous unrealized loss position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Less Than 12 Months | ||
Fair Value | $ 80,346 | $ 175,351 |
Unrealized Loss | (855) | (10,507) |
12 Months or More | ||
Fair Value | 263,060 | 158,995 |
Unrealized Loss | (32,685) | (27,590) |
Total | ||
Fair Value | 343,406 | 334,346 |
Unrealized Loss | (33,540) | (38,097) |
Other mortgage backed debt securities | ||
Less Than 12 Months | ||
Fair Value | 1,568 | 16,167 |
Unrealized Loss | (1) | (962) |
12 Months or More | ||
Fair Value | 25,042 | 17,521 |
Unrealized Loss | (2,740) | (2,117) |
Total | ||
Fair Value | 26,610 | 33,688 |
Unrealized Loss | (2,741) | (3,079) |
U.S. Treasury and/or agency securities | ||
Less Than 12 Months | ||
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
12 Months or More | ||
Fair Value | 7,041 | 6,801 |
Unrealized Loss | (840) | (1,052) |
Total | ||
Fair Value | 7,041 | 6,801 |
Unrealized Loss | (840) | (1,052) |
Obligations of U.S. Government Agencies and Sponsored Agencies Mortgage-Backed | ||
Less Than 12 Months | ||
Fair Value | 23,103 | 61,067 |
Unrealized Loss | (242) | (2,184) |
12 Months or More | ||
Fair Value | 102,608 | 65,174 |
Unrealized Loss | (14,276) | (12,848) |
Total | ||
Fair Value | 125,711 | 126,241 |
Unrealized Loss | (14,518) | (15,032) |
Obligations of U.S. Government Agencies and Sponsored Agencies Other | ||
Less Than 12 Months | ||
Fair Value | 0 | 1,589 |
Unrealized Loss | 0 | (2) |
12 Months or More | ||
Fair Value | 3,029 | 3,168 |
Unrealized Loss | (54) | (43) |
Total | ||
Fair Value | 3,029 | 4,757 |
Unrealized Loss | (54) | (45) |
Obligations of state and political subdivisions | ||
Less Than 12 Months | ||
Fair Value | 0 | 56,565 |
Unrealized Loss | 0 | (5,881) |
12 Months or More | ||
Fair Value | 82,113 | 35,704 |
Unrealized Loss | (10,214) | (8,872) |
Total | ||
Fair Value | 82,113 | 92,269 |
Unrealized Loss | (10,214) | (14,753) |
Asset backed securities | ||
Less Than 12 Months | ||
Fair Value | 52,862 | 24,136 |
Unrealized Loss | (342) | (405) |
12 Months or More | ||
Fair Value | 12,726 | 12,282 |
Unrealized Loss | (498) | (703) |
Total | ||
Fair Value | 65,588 | 36,418 |
Unrealized Loss | (840) | (1,108) |
Corporate debt securities | ||
Less Than 12 Months | ||
Fair Value | 2,813 | 15,827 |
Unrealized Loss | (270) | (1,073) |
12 Months or More | ||
Fair Value | 30,501 | 18,345 |
Unrealized Loss | (4,063) | (1,955) |
Total | ||
Fair Value | 33,314 | 34,172 |
Unrealized Loss | $ (4,333) | $ (3,028) |
SECURITIES - Unrealized and rea
SECURITIES - Unrealized and realized gains (losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SECURITIES | ||
Net losses from market value fluctuations recognized during the period on equity securities | $ (217) | $ (93) |
Less: Net gains recognized during the period on equity securities sold during the period | 0 | 27 |
Net losses recognized during the reporting period on equity securities still held at the reporting date | $ (217) | $ (120) |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | |
Debt securities available-for-sale, at fair value | $ 392,968,000 | $ 373,444,000 |
Aggregate carrying value | 182,050,000 | 241,385,000 |
Proceeds from sales of debt securities available-for-sale | 23,230,000 | 58,675,000 |
Accrued interest receivable on debt securities | 2,487,000 | |
Marketable equity securities, at fair value | 1,482,000 | 1,699,000 |
Gain on debt securities | 447,000 | 221,000 |
Loss on debt securities | $ 348,000 | $ 974,000 |
Number of securities in loss position | item | 177 | 183 |
Percentage decline in value | 7.75% | 9.11% |
Minimum percentage of equity held | 10% | 10% |
Asset Pledged as Collateral | ||
Debt securities available-for-sale, at fair value | $ 249,114,000 | $ 315,836,000 |
Marketable Equity Securities | ||
Marketable equity securities, at fair value | 1,482,000 | 1,699,000 |
Sallie Mae Bank securities | Securities Holdings Concentration Risk | Stockholders' Equity | ||
Debt securities available-for-sale, at fair value | $ 25,737,000 | $ 17,362,000 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Total | $ 911,078 | $ 858,469 |
Financing Receivable, Deferred Income, by Origination Year [Abstract] | ||
2023 | 265 | |
2022 | 281 | |
2021 | 189 | |
2020 | 136 | |
2019 | 196 | |
Prior | 7 | |
Loans and Leases Receivable, Deferred Income, Total | 1,074 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
2023 | 126,960 | |
2022 | 202,674 | |
2021 | 154,341 | |
2020 | 123,385 | |
2019 | 71,134 | |
Prior | 232,584 | |
Financing Receivable, Total | 911,078 | 858,469 |
Financing Receivable, Gross Charge Offs, by Origination Year [Abstract] | ||
Total Gross Charge Offs | 57 | 206 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 2 | |
2022 | 23 | |
2021 | 13 | |
2020 | 2 | |
2019 | 4 | |
Prior | 13 | |
Total Gross Charge Offs | 57 | 206 |
GGLs | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Total | 4,470 | 4,631 |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 4,470 | 4,631 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 126,637 | |
2022 | 202,307 | |
2021 | 153,565 | |
2020 | 119,588 | |
2019 | 61,486 | |
Prior | 222,329 | |
Financing Receivable, Total | 885,912 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 885,912 | |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 58 | |
Financing Receivable, Total | 58 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 58 | |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 86 | |
2021 | 587 | |
2020 | 3,661 | |
2019 | 9,452 | |
Prior | 10,248 | |
Financing Receivable, Total | 24,034 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 24,034 | |
Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Total | 811,493 | 764,880 |
Financing Receivable, Deferred Income, by Origination Year [Abstract] | ||
2023 | 130 | |
2022 | 176 | |
2021 | 153 | |
2020 | 116 | |
2019 | (13) | |
Prior | 8 | |
Loans and Leases Receivable, Deferred Income, Total | 570 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
2023 | 110,949 | |
2022 | 186,991 | |
2021 | 133,464 | |
2020 | 113,815 | |
2019 | 63,982 | |
Prior | 202,292 | |
Financing Receivable, Total | 811,493 | 764,880 |
Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 110,819 | |
2022 | 186,729 | |
2021 | 132,724 | |
2020 | 110,038 | |
2019 | 54,543 | |
Prior | 192,686 | |
Financing Receivable, Total | 787,539 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 787,539 | |
Real Estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 86 | |
2021 | 587 | |
2020 | 3,661 | |
2019 | 9,452 | |
Prior | 9,598 | |
Financing Receivable, Total | 23,384 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 23,384 | |
Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Total | 671 | 860 |
Financing Receivable, Deferred Income, by Origination Year [Abstract] | ||
2022 | 1 | |
Loans and Leases Receivable, Deferred Income, Total | 1 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
2022 | 60 | |
Prior | 611 | |
Financing Receivable, Total | 671 | 860 |
Agricultural | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 59 | |
Prior | 611 | |
Financing Receivable, Total | 670 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 670 | |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Total | 66,909 | 56,077 |
Financing Receivable, Deferred Income, by Origination Year [Abstract] | ||
2023 | 95 | |
2022 | 83 | |
2021 | 24 | |
2020 | 17 | |
2019 | 208 | |
Prior | (1) | |
Loans and Leases Receivable, Deferred Income, Total | 426 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
2023 | 12,767 | |
2022 | 10,269 | |
2021 | 5,800 | |
2020 | 7,456 | |
2019 | 7,041 | |
Prior | 23,576 | |
Financing Receivable, Total | 66,909 | 56,077 |
Commercial and Industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 12,672 | |
2022 | 10,186 | |
2021 | 5,776 | |
2020 | 7,439 | |
2019 | 6,833 | |
Prior | 22,927 | |
Financing Receivable, Total | 65,833 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 65,833 | |
Commercial and Industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Prior | 650 | |
Financing Receivable, Total | 650 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 650 | |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Total | 86,999 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 86,999 | |
Financing Receivable, Gross Charge Offs, by Origination Year [Abstract] | ||
Total Gross Charge Offs | 158 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Total Gross Charge Offs | 158 | |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Total | 5,824 | 5,707 |
Financing Receivable, Deferred Income, by Origination Year [Abstract] | ||
2023 | 38 | |
2022 | 20 | |
2021 | 8 | |
2020 | 2 | |
2019 | 1 | |
Loans and Leases Receivable, Deferred Income, Total | 69 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
2023 | 2,511 | |
2022 | 1,258 | |
2021 | 934 | |
2020 | 208 | |
2019 | 111 | |
Prior | 802 | |
Financing Receivable, Total | 5,824 | 5,707 |
Financing Receivable, Gross Charge Offs, by Origination Year [Abstract] | ||
Total Gross Charge Offs | 57 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 2 | |
2022 | 23 | |
2021 | 13 | |
2020 | 2 | |
2019 | 4 | |
Prior | 13 | |
Total Gross Charge Offs | 57 | |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 2,415 | |
2022 | 1,238 | |
2021 | 926 | |
2020 | 206 | |
2019 | 110 | |
Prior | 802 | |
Financing Receivable, Total | 5,697 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 5,697 | |
Consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 58 | |
Financing Receivable, Total | 58 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 58 | |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Total | 5,415 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 5,415 | |
Financing Receivable, Gross Charge Offs, by Origination Year [Abstract] | ||
Total Gross Charge Offs | 33 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Total Gross Charge Offs | 33 | |
State and Political Subdivisions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Total | 26,181 | 30,945 |
Financing Receivable, Deferred Income, by Origination Year [Abstract] | ||
2023 | 2 | |
2022 | 1 | |
2021 | 4 | |
2020 | 1 | |
Loans and Leases Receivable, Deferred Income, Total | 8 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
2023 | 733 | |
2022 | 4,096 | |
2021 | 14,143 | |
2020 | 1,906 | |
Prior | 5,303 | |
Financing Receivable, Total | 26,181 | 30,945 |
State and Political Subdivisions | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2023 | 731 | |
2022 | 4,095 | |
2021 | 14,139 | |
2020 | 1,905 | |
Prior | 5,303 | |
Financing Receivable, Total | 26,173 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | $ 26,173 | |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Total | 611,549 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 611,549 | |
Financing Receivable, Gross Charge Offs, by Origination Year [Abstract] | ||
Total Gross Charge Offs | 3 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Total Gross Charge Offs | 3 | |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Total | 154,506 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract] | ||
Financing Receivable, Total | 154,506 | |
Financing Receivable, Gross Charge Offs, by Origination Year [Abstract] | ||
Total Gross Charge Offs | 12 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Total Gross Charge Offs | $ 12 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Activity in allowance for credit losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance, Beginning balance | $ 8,274,000 | $ 8,680,000 |
Charge-offs | (57,000) | (206,000) |
Recoveries | 44,000 | 64,000 |
(Credit) Provision | (217,000) | (264,000) |
Allowance, Ending Balance | 6,925,000 | 8,274,000 |
Total | 911,078,000 | 858,469,000 |
Reserve For Unfunded Lending Commitments | 166,000 | |
Ending Balance | 911,078,000 | 858,469,000 |
Unfunded Loan Commitment | ||
Reserve For Unfunded Lending Commitments | 166,000 | 68,000 |
Reserve For Unfunded Lending Commitments | 166,000 | 68,000 |
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | ||
Allowance, Beginning balance | 7,155,000 | |
Allowance, Ending Balance | 7,155,000 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Allowance, Beginning balance | (1,119,000) | |
Allowance, Ending Balance | (1,119,000) | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Unfunded Loan Commitment | ||
Reserve For Unfunded Lending Commitments | 147,000 | |
Loans Individually Evaluated For Impairment [Member] | ||
Total | 4,925,000 | 11,207,000 |
Ending Balance | 4,925,000 | 11,207,000 |
Loans Collectively Evaluated For Impairment [Member] | ||
Allowance, Beginning balance | 8,274,000 | |
Allowance, Ending Balance | 6,925,000 | 8,274,000 |
Total | 906,153,000 | 847,262,000 |
Ending Balance | 906,153,000 | 847,262,000 |
Real Estate | ||
Allowance, Beginning balance | 7,483,000 | |
Recoveries | 37,000 | |
(Credit) Provision | (264,000) | |
Allowance, Ending Balance | 6,539,000 | 7,483,000 |
Total | 811,493,000 | 764,880,000 |
Reserve For Unfunded Lending Commitments | 140,000 | |
Ending Balance | 811,493,000 | 764,880,000 |
Real Estate | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | ||
Allowance, Beginning balance | 6,766,000 | |
Allowance, Ending Balance | 6,766,000 | |
Real Estate | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Allowance, Beginning balance | (717,000) | |
Allowance, Ending Balance | (717,000) | |
Real Estate | Loans Individually Evaluated For Impairment [Member] | ||
Total | 4,005,000 | |
Ending Balance | 4,005,000 | |
Real Estate | Loans Collectively Evaluated For Impairment [Member] | ||
Allowance, Ending Balance | 6,539,000 | |
Total | 807,488,000 | |
Ending Balance | 807,488,000 | |
Agricultural | ||
Allowance, Beginning balance | 6,000 | |
(Credit) Provision | (1,000) | |
Allowance, Ending Balance | 1,000 | 6,000 |
Total | 671,000 | 860,000 |
Ending Balance | 671,000 | 860,000 |
Agricultural | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | ||
Allowance, Beginning balance | 2,000 | |
Allowance, Ending Balance | 2,000 | |
Agricultural | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Allowance, Beginning balance | (4,000) | |
Allowance, Ending Balance | (4,000) | |
Agricultural | Loans Individually Evaluated For Impairment [Member] | ||
Total | 309,000 | |
Ending Balance | 309,000 | |
Agricultural | Loans Collectively Evaluated For Impairment [Member] | ||
Allowance, Ending Balance | 1,000 | |
Total | 362,000 | |
Ending Balance | 362,000 | |
Commercial and industrial | ||
Allowance, Beginning balance | 704,000 | 681,000 |
Charge-offs | (158,000) | |
Recoveries | 3,000 | |
(Credit) Provision | 178,000 | |
Allowance, Ending Balance | 704,000 | |
Total | 86,999,000 | |
Ending Balance | 86,999,000 | |
Commercial and industrial | Loans Individually Evaluated For Impairment [Member] | ||
Total | 973,000 | |
Ending Balance | 973,000 | |
Commercial and industrial | Loans Collectively Evaluated For Impairment [Member] | ||
Allowance, Beginning balance | 704,000 | |
Allowance, Ending Balance | 704,000 | |
Total | 86,026,000 | |
Ending Balance | 86,026,000 | |
Commercial and Industrial | ||
Allowance, Beginning balance | 504,000 | |
Recoveries | 2,000 | |
(Credit) Provision | 20,000 | |
Allowance, Ending Balance | 265,000 | 504,000 |
Total | 66,909,000 | 56,077,000 |
Reserve For Unfunded Lending Commitments | 25,000 | |
Ending Balance | 66,909,000 | 56,077,000 |
Commercial and Industrial | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | ||
Allowance, Beginning balance | 243,000 | |
Allowance, Ending Balance | 243,000 | |
Commercial and Industrial | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Allowance, Beginning balance | (261,000) | |
Allowance, Ending Balance | (261,000) | |
Commercial and Industrial | Loans Individually Evaluated For Impairment [Member] | ||
Total | 611,000 | |
Ending Balance | 611,000 | |
Commercial and Industrial | Loans Collectively Evaluated For Impairment [Member] | ||
Allowance, Ending Balance | 265,000 | |
Total | 66,298,000 | |
Ending Balance | 66,298,000 | |
commercial real estate | ||
Allowance, Beginning balance | 5,932,000 | 5,408,000 |
Charge-offs | (3,000) | |
Recoveries | 40,000 | |
(Credit) Provision | 487,000 | |
Allowance, Ending Balance | 5,932,000 | |
Total | 611,549,000 | |
Ending Balance | 611,549,000 | |
commercial real estate | Loans Individually Evaluated For Impairment [Member] | ||
Total | 9,495,000 | |
Ending Balance | 9,495,000 | |
commercial real estate | Loans Collectively Evaluated For Impairment [Member] | ||
Allowance, Beginning balance | 5,932,000 | |
Allowance, Ending Balance | 5,932,000 | |
Total | 602,054,000 | |
Ending Balance | 602,054,000 | |
residential real estate | ||
Allowance, Beginning balance | 1,557,000 | 1,539,000 |
Charge-offs | (12,000) | |
Recoveries | 16,000 | |
(Credit) Provision | 14,000 | |
Allowance, Ending Balance | 1,557,000 | |
Total | 154,506,000 | |
Ending Balance | 154,506,000 | |
residential real estate | Loans Individually Evaluated For Impairment [Member] | ||
Total | 739,000 | |
Ending Balance | 739,000 | |
residential real estate | Loans Collectively Evaluated For Impairment [Member] | ||
Allowance, Beginning balance | 1,557,000 | |
Allowance, Ending Balance | 1,557,000 | |
Total | 153,767,000 | |
Ending Balance | 153,767,000 | |
Consumer | ||
Allowance, Beginning balance | 84,000 | |
Charge-offs | (57,000) | |
Recoveries | 5,000 | |
(Credit) Provision | 35,000 | |
Allowance, Ending Balance | 78,000 | 84,000 |
Total | 5,824,000 | 5,707,000 |
Ending Balance | 5,824,000 | 5,707,000 |
Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | ||
Allowance, Beginning balance | 95,000 | |
Allowance, Ending Balance | 95,000 | |
Consumer | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Allowance, Beginning balance | 11,000 | |
Allowance, Ending Balance | 11,000 | |
Consumer | Loans Collectively Evaluated For Impairment [Member] | ||
Allowance, Ending Balance | 78,000 | |
Total | 5,824,000 | |
Ending Balance | 5,824,000 | |
Consumer | ||
Allowance, Beginning balance | 81,000 | 84,000 |
Charge-offs | (33,000) | |
Recoveries | 5,000 | |
(Credit) Provision | 25,000 | |
Allowance, Ending Balance | 81,000 | |
Total | 5,415,000 | |
Ending Balance | 5,415,000 | |
Consumer | Loans Collectively Evaluated For Impairment [Member] | ||
Allowance, Beginning balance | 81,000 | |
Allowance, Ending Balance | 81,000 | |
Total | 5,415,000 | |
Ending Balance | 5,415,000 | |
State and Political Subdivisions | ||
Allowance, Beginning balance | 197,000 | |
(Credit) Provision | (7,000) | |
Allowance, Ending Balance | 42,000 | 197,000 |
Total | 26,181,000 | 30,945,000 |
Reserve For Unfunded Lending Commitments | 1,000 | |
Ending Balance | 26,181,000 | 30,945,000 |
State and Political Subdivisions | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | ||
Allowance, Beginning balance | 49,000 | |
Allowance, Ending Balance | 49,000 | |
State and Political Subdivisions | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Allowance, Beginning balance | (148,000) | |
Allowance, Ending Balance | (148,000) | |
State and Political Subdivisions | Loans Collectively Evaluated For Impairment [Member] | ||
Allowance, Ending Balance | 42,000 | |
Total | 26,181,000 | |
Ending Balance | $ 26,181,000 | |
Unallocated Financing Receivables | ||
Allowance, Beginning balance | 968,000 | |
(Credit) Provision | $ (968,000) |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Activity in allowance for credit losses on unfunded commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Provision for credit losses on unfunded commitments | $ (49) | $ (108) |
Unfunded Loan Commitment | ||
Beginning balance | 68 | |
CECL adoption adjustment | 166 | 68 |
Provision for credit losses on unfunded commitments | (49) | |
Ending balance | 166 | $ 68 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Unfunded Loan Commitment | ||
CECL adoption adjustment | 147 | |
Ending balance | $ 147 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES- Impaired loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Recorded Investment | $ 7,480,000 | ||
Unpaid principal balance | $ 911,078,000 | 858,469,000 | |
Related allowance | 6,925,000 | 8,274,000 | $ 8,680,000 |
Recorded Investment | |||
With no related allowance recorded | 4,925,000 | 11,207,000 | |
Total | 4,925,000 | 11,207,000 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 6,914,000 | ||
With no related allowance recorded | 14,174,000 | ||
Total | 6,914,000 | 14,174,000 | |
Average Recorded Investment | |||
With no related allowance recorded | 5,332,000 | ||
Total | 5,332,000 | ||
With no related allowance recorded | 12,574,000 | ||
Total | 12,574,000 | ||
Interest Income Recognized | |||
With no related allowance recorded | 24,000 | ||
Total | 24,000 | ||
With no related allowance recorded | 309,000 | ||
Total | 309,000 | ||
Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Unpaid principal balance | 811,493,000 | 764,880,000 | |
Related allowance | 6,539,000 | 7,483,000 | |
Recorded Investment | |||
With no related allowance recorded | 4,005,000 | ||
Total | 4,005,000 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 5,994,000 | ||
Total | 5,994,000 | ||
Average Recorded Investment | |||
With no related allowance recorded | 4,380,000 | ||
Total | 4,380,000 | ||
Agricultural | |||
Financing Receivable, Modifications [Line Items] | |||
Unpaid principal balance | 671,000 | 860,000 | |
Related allowance | 1,000 | 6,000 | |
Recorded Investment | |||
With no related allowance recorded | 309,000 | ||
Total | 309,000 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 309,000 | ||
Total | 309,000 | ||
Average Recorded Investment | |||
With no related allowance recorded | 309,000 | ||
Total | 309,000 | ||
Interest Income Recognized | |||
With no related allowance recorded | 24,000 | ||
Total | 24,000 | ||
Commercial and Industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Unpaid principal balance | 66,909,000 | 56,077,000 | |
Related allowance | 265,000 | 504,000 | |
Recorded Investment | |||
With no related allowance recorded | 611,000 | 973,000 | |
Total | 611,000 | 973,000 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 611,000 | ||
With no related allowance recorded | 973,000 | ||
Total | 611,000 | 973,000 | |
Average Recorded Investment | |||
With no related allowance recorded | 643,000 | ||
Total | $ 643,000 | ||
With no related allowance recorded | 992,000 | ||
Total | 992,000 | ||
Interest Income Recognized | |||
With no related allowance recorded | 14,000 | ||
Total | 14,000 | ||
Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Unpaid principal balance | 86,999,000 | ||
Related allowance | 704,000 | 681,000 | |
Commercial Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Unpaid principal balance | 611,549,000 | ||
Related allowance | 5,932,000 | 5,408,000 | |
Recorded Investment | |||
With no related allowance recorded | 9,495,000 | ||
Total | 9,495,000 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 12,430,000 | ||
Total | 12,430,000 | ||
Average Recorded Investment | |||
With no related allowance recorded | 10,741,000 | ||
Total | 10,741,000 | ||
Interest Income Recognized | |||
With no related allowance recorded | 294,000 | ||
Total | 294,000 | ||
Residential Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Unpaid principal balance | 154,506,000 | ||
Related allowance | 1,557,000 | $ 1,539,000 | |
Recorded Investment | |||
With no related allowance recorded | 739,000 | ||
Total | 739,000 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 771,000 | ||
Total | 771,000 | ||
Average Recorded Investment | |||
With no related allowance recorded | 841,000 | ||
Total | 841,000 | ||
Interest Income Recognized | |||
With no related allowance recorded | 1,000 | ||
Total | $ 1,000 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Collateral dependent loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Collateral-dependent loans | ||
Total | $ 911,078 | $ 858,469 |
Real Estate | ||
Collateral-dependent loans | ||
Total | 4,005 | |
Other | ||
Collateral-dependent loans | ||
Total | 920 | |
Real Estate | ||
Collateral-dependent loans | ||
Total | 811,493 | 764,880 |
Real Estate | Real Estate | ||
Collateral-dependent loans | ||
Total | 4,005 | |
Agricultural | ||
Collateral-dependent loans | ||
Total | 671 | 860 |
Agricultural | Other | ||
Collateral-dependent loans | ||
Total | 309 | |
Commercial and Industrial | ||
Collateral-dependent loans | ||
Total | 66,909 | $ 56,077 |
Commercial and Industrial | Other | ||
Collateral-dependent loans | ||
Total | $ 611 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Non-performing assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Total non-accrual loans | $ 4,616 | $ 5,051 |
Loans past-due 90 days or more and still accruing interest | 1,065 | 308 |
Total non-performing assets | 5,681 | 5,359 |
Real Estate | ||
Total non-accrual loans | 4,005 | 4,387 |
Loans past-due 90 days or more and still accruing interest | 1,065 | 308 |
Agricultural | ||
Loans past-due 90 days or more and still accruing interest | 0 | 0 |
Commercial and Industrial | ||
Total non-accrual loans | 611 | 664 |
Loans past-due 90 days or more and still accruing interest | 0 | 0 |
Consumer | ||
Loans past-due 90 days or more and still accruing interest | 0 | 0 |
State and Political Subdivisions | ||
Loans past-due 90 days or more and still accruing interest | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES- Past due (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current - 29 Days Past Due | $ 902,853 | $ 850,257 |
Total | 911,078 | 858,469 |
90 Days or Greater Past Due and Still Accruing Interest | 1,065 | 308 |
Financial Asset, 30 to 59 Days Past Due | ||
Total | 2,182 | 2,754 |
Financing Receivables, 60 to 89 Days Past Due | ||
Total | 383 | 124 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Total | 5,660 | 5,334 |
Financial Asset, Past Due | ||
Total | 8,225 | 8,212 |
Real Estate | ||
Current - 29 Days Past Due | 803,890 | 757,445 |
Total | 811,493 | 764,880 |
90 Days or Greater Past Due and Still Accruing Interest | 1,065 | 308 |
Real Estate | Financial Asset, 30 to 59 Days Past Due | ||
Total | 2,155 | 2,682 |
Real Estate | Financing Receivables, 60 to 89 Days Past Due | ||
Total | 379 | 59 |
Real Estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Total | 5,069 | 4,694 |
Real Estate | Financial Asset, Past Due | ||
Total | 7,603 | 7,435 |
Agricultural | ||
Current - 29 Days Past Due | 671 | 860 |
Total | 671 | 860 |
90 Days or Greater Past Due and Still Accruing Interest | 0 | 0 |
Agricultural | Financial Asset, 30 to 59 Days Past Due | ||
Total | 0 | |
Agricultural | Financing Receivables, 60 to 89 Days Past Due | ||
Total | 0 | |
Agricultural | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Total | 0 | 0 |
Commercial and Industrial | ||
Current - 29 Days Past Due | 66,312 | 55,313 |
Total | 66,909 | 56,077 |
90 Days or Greater Past Due and Still Accruing Interest | 0 | 0 |
Commercial and Industrial | Financial Asset, 30 to 59 Days Past Due | ||
Total | 6 | 61 |
Commercial and Industrial | Financing Receivables, 60 to 89 Days Past Due | ||
Total | 63 | |
Commercial and Industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Total | 591 | 640 |
Commercial and Industrial | Financial Asset, Past Due | ||
Total | 597 | 764 |
Commercial and industrial | ||
Total | 86,999 | |
Consumer | ||
Current - 29 Days Past Due | 5,799 | 5,694 |
Total | 5,824 | 5,707 |
90 Days or Greater Past Due and Still Accruing Interest | 0 | 0 |
Consumer | Financial Asset, 30 to 59 Days Past Due | ||
Total | 21 | 11 |
Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Total | 4 | 2 |
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Total | 0 | 0 |
Consumer | Financial Asset, Past Due | ||
Total | 25 | 13 |
Consumer | ||
Total | 5,415 | |
State and Political Subdivisions | ||
Current - 29 Days Past Due | 26,181 | 30,945 |
Total | 26,181 | 30,945 |
90 Days or Greater Past Due and Still Accruing Interest | 0 | 0 |
State and Political Subdivisions | Financial Asset, 30 to 59 Days Past Due | ||
Total | 0 | |
State and Political Subdivisions | Financing Receivables, 60 to 89 Days Past Due | ||
Total | 0 | |
State and Political Subdivisions | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Total | $ 0 | 0 |
Commercial Real Estate | ||
Total | 611,549 | |
Residential Real Estate | ||
Total | $ 154,506 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Classes of the loan portfolio summarized by risk rating (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Financing Receivable, Recorded Investment [Line Items] | |
Net deferred loan fees and costs | $ 1,129 |
Total loans | 858,469 |
Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Loans and Leases Receivable, Gross, Total | 836,405 |
Special Mention | |
Financing Receivable, Recorded Investment [Line Items] | |
Loans and Leases Receivable, Gross, Total | 634 |
Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Loans and Leases Receivable, Gross, Total | 20,301 |
Commercial and Industrial | |
Financing Receivable, Recorded Investment [Line Items] | |
Net deferred loan fees and costs | 429 |
Total loans | 86,999 |
Commercial and Industrial | Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Loans and Leases Receivable, Gross, Total | 85,845 |
Commercial and Industrial | Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Loans and Leases Receivable, Gross, Total | 725 |
Commercial Real Estate | |
Financing Receivable, Recorded Investment [Line Items] | |
Net deferred loan fees and costs | 825 |
Total loans | 611,549 |
Commercial Real Estate | Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Loans and Leases Receivable, Gross, Total | 591,309 |
Commercial Real Estate | Special Mention | |
Financing Receivable, Recorded Investment [Line Items] | |
Loans and Leases Receivable, Gross, Total | 634 |
Commercial Real Estate | Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Loans and Leases Receivable, Gross, Total | 18,781 |
Residential Real Estate | |
Financing Receivable, Recorded Investment [Line Items] | |
Net deferred loan fees and costs | (191) |
Total loans | 154,506 |
Residential Real Estate | Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Loans and Leases Receivable, Gross, Total | 153,902 |
Residential Real Estate | Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Loans and Leases Receivable, Gross, Total | 795 |
Consumer | |
Financing Receivable, Recorded Investment [Line Items] | |
Net deferred loan fees and costs | 66 |
Total loans | 5,415 |
Consumer | Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Loans and Leases Receivable, Gross, Total | $ 5,349 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDRs recorded investment (Details) | Dec. 31, 2022 USD ($) |
Financing Receivable, Modifications, Recorded Investment | $ 7,480,000 |
Non-accrual TDRs | |
Financing Receivable, Modifications, Recorded Investment | 1,324,000 |
Accruing TDRs | |
Financing Receivable, Modifications, Recorded Investment | $ 6,156,000 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES- Loan modifications categorized as TDRs (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) loan | |
Number of contracts | loan | 2 |
Pre-Modification Outstanding Recorded Investment | $ 481,000 |
Post-Modification Outstanding Recorded Investment | 515,000 |
Recorded Investment | $ 501,000 |
commercial real estate | |
Number of contracts | loan | 2 |
Pre-Modification Outstanding Recorded Investment | $ 481,000 |
Post-Modification Outstanding Recorded Investment | 515,000 |
Recorded Investment | $ 501,000 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Types of loan modifications (Details) - 12 months ended Dec. 31, 2022 | loan | contract |
Financing Receivable, Modifications, Number of Contracts | 2 | |
Payment Modification | ||
Financing Receivable, Modifications, Number of Contracts | 2 | 2 |
commercial real estate | ||
Financing Receivable, Modifications, Number of Contracts | 2 | |
commercial real estate | Payment Modification | ||
Financing Receivable, Modifications, Number of Contracts | 2 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) contract | Dec. 31, 2022 USD ($) loan contract | Dec. 31, 2022 USD ($) contract | |
Loans Receivable Held-for-sale, Amount | $ 214,000 | $ 71,000 | $ 71,000 | $ 71,000 |
Loans transferred from held for sale portfolio | 0 | 7,900,000 | ||
Accrued interest exclude from the amortized cost basis of loans | 2,476,000 | 1,941,000 | 1,941,000 | 1,941,000 |
Reserve For Unfunded Lending Commitments | 166,000 | |||
Transfer of Loans Held-for-sale to Portfolio Loans | 0 | 7,900,000 | ||
Foreclosed Assets Held For Resale | 0 | |||
Financing Receivable, Modifications, Recorded Investment | 7,480,000 | $ 7,480,000 | 7,480,000 | |
Modified value of TDR | 515,000 | |||
Number of contracts | loan | 2 | |||
Impaired Financing Receivable Related Allowance Attributable to TDR | 0 | |||
Impaired Financing Receivable, Interest Income, Accrual Method | 24,000 | |||
Impaired Financing Receivable, Interest Income, Accrual Method | 309,000 | |||
Impaired Financing Receivable Interest Income Non-accrual Method | 0 | 0 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 515,000 | |||
Interest on non-accrual loans, Estimate of accrual amount | $ 2,488,000 | 2,174,000 | ||
Minimum | ||||
Loan Payments, Delinquency Period, at which time Delinquency Notice is Automatically Generated | 10 | |||
Maximum | ||||
Loan Payments, Delinquency Period, at which time Delinquency Notice is Automatically Generated | P10D | |||
TDRs | ||||
Financing Receivable, Modifications, Unfunded Commitments | 0 | |||
Unfunded Loan Commitment | ||||
Reserve For Unfunded Lending Commitments | $ 166,000 | 68,000 | $ 68,000 | $ 68,000 |
Payment Modification | ||||
Number of contracts | 2 | 2 | ||
Commercial and Industrial | ||||
Reserve For Unfunded Lending Commitments | 25,000 | |||
Impaired Financing Receivable, Interest Income, Accrual Method | 14,000 | |||
Number of loans modified as troubled debt restructuring within previous 12 months, with subsequent payment default | loan | 0 | |||
Commercial and Industrial | GGLs | ||||
Government Guaranteed Loans. | 4,470,000 | |||
Commercial and industrial | ||||
Financing Receivable Modification Not In Compliance Of Terms | $ 664,000 | |||
Number of TDRs not in compliance with restructure | contract | 3 | 3 | 3 | |
Political Subdivision Loans | ||||
Tax free loans | $ 26,181,000 | |||
Commercial Real Estate | ||||
Modified value of TDR | $ 515,000 | |||
Number of contracts | loan | 2 | |||
Financing Receivable Modification Not In Compliance Of Terms | $ 684,000 | |||
Number of TDRs not in compliance with restructure | contract | 5 | 5 | 5 | |
Impaired Financing Receivable, Interest Income, Accrual Method | $ 294,000 | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 515,000 | |||
Commercial Real Estate | Maximum | ||||
Term of loan offering | 20 years | |||
Maximum loan to value ratio | 80% | |||
Commercial Real Estate | Payment Modification | ||||
Number of contracts | loan | 2 | |||
Residential Real Estate | ||||
Loans Receivable Held-for-sale, Amount | $ 214,000 | 71,000 | $ 71,000 | $ 71,000 |
Consumer Mortgage Loans Secured by Residential Real Estate in Process of Foreclosure | $ 138,000 | 41,000 | $ 41,000 | $ 41,000 |
Impaired Financing Receivable, Interest Income, Accrual Method | $ 1,000 | |||
Residential Real Estate | Maximum | ||||
Maximum loan to value ratio | 80% | |||
Maximum loan to value ratio with PMI | 95% | |||
Residential Real Estate | Residential Mortgage | Maximum | ||||
Term of loan offering | 30 years | |||
Residential Real Estate | Residential Mortgage | Originated For Resale | Maximum | ||||
Term of loan offering | 30 years | |||
Residential Real Estate | Home Equity Loan | Maximum | ||||
Term of loan offering | 15 years | |||
Maximum loan to value ratio | 80% | |||
Residential Real Estate | Home Equity Line of Credit | Maximum | ||||
Term of loan offering | 20 years | |||
Maximum loan to value ratio | 80% | |||
Agricultural | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 24,000 | |||
Agricultural | Maximum | ||||
Term of loan offering | 10 years | |||
Maximum loan to value ratio | 70% |
PREMISES AND EQUIPMENT, NET (De
PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 35,631 | $ 34,130 |
Less: Accumulated depreciation | 16,020 | 15,106 |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, Net, Total | $ 19,611 | 19,024 |
Property, Plant and Equipment, Useful Life | 2 years | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 3,744 | 3,744 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 23,197 | $ 22,114 |
Building [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | 5 years |
Building [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | 40 years |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 338 | $ 335 |
Leasehold Improvements [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 1 year | 1 year |
Leasehold Improvements [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | 20 years |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 8,352 | $ 7,937 |
Equipment [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | 3 years |
Equipment [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years | 25 years |
PREMISES AND EQUIPMENT, NET - A
PREMISES AND EQUIPMENT, NET - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
PREMISES AND EQUIPMENT, NET | ||
Depreciation expense | $ 1,050,000 | $ 1,026,000 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
DEPOSITS | ||
Non-interest bearing demand | $ 198,569,000 | $ 231,754,000 |
Interest bearing demand | 275,472,000 | 335,559,000 |
Savings | 212,280,000 | 260,086,000 |
Time certificates of deposits less than $250,000 | 259,841,000 | 151,575,000 |
Time certificates of deposits $250,000 or greater | 33,185,000 | 13,400,000 |
Other time | 1,092,000 | 1,125,000 |
Total deposits | $ 980,439,000 | $ 993,499,000 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
DEPOSITS [Line Items] | ||
Increase (Decrease) in Deposits | $ (13,060,000) | $ (84,470,000) |
Deposits. | 980,439,000 | 993,499,000 |
Increase (decrease) in municipal deposits | (60,884,000) | |
Increase (decrease) in brokered CDs | 40,250,000 | |
Brokered CD's | ||
DEPOSITS [Line Items] | ||
Brokered deposits | $ 65,250,000 | $ 20,000,000 |
DEPOSITS - Summary of classific
DEPOSITS - Summary of classification and remaining maturities of time deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
DEPOSITS | |
2024 | $ 210,589 |
2025 | 27,592 |
2026 | 28,108 |
2027 | 3,020 |
2028 | 19,309 |
Thereafter | 5,500 |
Total time deposits | $ 294,118 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SHORT-TERM BORROWINGS | ||
Short-term borrowings, Amount | $ 153,468 | $ 153,418 |
Short-term borrowings, Average Rate | 5.21% | 2.21% |
Federal Funds Purchased | ||
SHORT-TERM BORROWINGS | ||
Short-term borrowings, Average Rate | 6.57% | |
Securities sold under agreements to repurchase | ||
SHORT-TERM BORROWINGS | ||
Short-term borrowings, Amount | $ 19,708 | $ 20,368 |
Short-term borrowings, Average Rate | 3.28% | 0.84% |
Federal Discount Window | ||
SHORT-TERM BORROWINGS | ||
Short-term borrowings, Amount | $ 1 | |
Short-term borrowings, Average Rate | 4.99% | 2.78% |
Federal Home Loan Bank | ||
SHORT-TERM BORROWINGS | ||
Short-term borrowings, Amount | $ 133,759 | $ 133,050 |
Short-term borrowings, Average Rate | 5.45% | 2.82% |
SHORT-TERM BORROWINGS - Repurch
SHORT-TERM BORROWINGS - Repurchase Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Repurchase agreements | ||
Gross Amounts of Recognized Liabilities | $ 19,708 | $ 20,368 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 19,708 | 20,368 |
Financial Instruments | (19,708) | (20,368) |
Cash Collateral Pledge | 0 | 0 |
Net Amount | $ 0 | $ 0 |
SHORT-TERM BORROWINGS - Remaini
SHORT-TERM BORROWINGS - Remaining contractual maturity of repurchase agreements (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Repurchase agreements and repurchase-to-maturity transactions: | |
Remaining Contractual Maturity of the Agreements | $ 19,708 |
U.S. Treasury and/or agency securities | |
Repurchase agreements and repurchase-to-maturity transactions: | |
Remaining Contractual Maturity of the Agreements | 19,708 |
Overnight and Continuous | |
Repurchase agreements and repurchase-to-maturity transactions: | |
Remaining Contractual Maturity of the Agreements | 19,708 |
Overnight and Continuous | U.S. Treasury and/or agency securities | |
Repurchase agreements and repurchase-to-maturity transactions: | |
Remaining Contractual Maturity of the Agreements | 19,708 |
Up to 30 days | |
Repurchase agreements and repurchase-to-maturity transactions: | |
Remaining Contractual Maturity of the Agreements | 0 |
Up to 30 days | U.S. Treasury and/or agency securities | |
Repurchase agreements and repurchase-to-maturity transactions: | |
Remaining Contractual Maturity of the Agreements | 0 |
30 - 90 Days | |
Repurchase agreements and repurchase-to-maturity transactions: | |
Remaining Contractual Maturity of the Agreements | 0 |
30 - 90 Days | U.S. Treasury and/or agency securities | |
Repurchase agreements and repurchase-to-maturity transactions: | |
Remaining Contractual Maturity of the Agreements | 0 |
Greater than 90 Days | |
Repurchase agreements and repurchase-to-maturity transactions: | |
Remaining Contractual Maturity of the Agreements | 0 |
Greater than 90 Days | U.S. Treasury and/or agency securities | |
Repurchase agreements and repurchase-to-maturity transactions: | |
Remaining Contractual Maturity of the Agreements | $ 0 |
SHORT-TERM BORROWINGS - Additio
SHORT-TERM BORROWINGS - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||
Fair value of securities pledged | $ 28,902,000 | $ 34,160,000 |
Federal Funds Purchased | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 15,000,000 | |
Federal Discount Window | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,547,000 | |
Maximum | ||
Short-term Debt [Line Items] | ||
Federal funds purchased, securities sold under agreements to repurchase and Federal Home Loan Bank advances, maturity | 30 days |
LONG-TERM BORROWINGS (Details)
LONG-TERM BORROWINGS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Long-term borrowings | $ 122,000 | $ 25,000 |
Due 2023, 2.96% | ||
Long-term borrowings | 3,000 | |
Interest rate for first five years | 2.96% | |
Due 2024, 1.68% | ||
Long-term borrowings | $ 20,000 | 20,000 |
Interest rate for first five years | 1.68% | |
Due 2026, 4.62% to 4.92% | ||
Long-term borrowings | $ 60,000 | |
Due 2026, 4.62% to 4.92% | Minimum | ||
Interest rate for first five years | 4.62% | |
Due 2026, 4.62% to 4.92% | Maximum | ||
Interest rate for first five years | 4.92% | |
Due 2028, 4.46% to 5.14% | ||
Long-term borrowings | $ 42,000 | $ 2,000 |
Due 2028, 4.46% to 5.14% | Minimum | ||
Interest rate for first five years | 4.46% | |
Due 2028, 4.46% to 5.14% | Maximum | ||
Interest rate for first five years | 5.14% |
LONG-TERM BORROWINGS - Addition
LONG-TERM BORROWINGS - Additional Information (Details) | Dec. 31, 2023 USD ($) |
Short-term Debt [Line Items] | |
Maximum borrowing capacity | $ 517,782,000 |
Investment securities pledged as collateral to FHLB | 0 |
Asset Pledged as Collateral | |
Short-term Debt [Line Items] | |
Loans Pledged For Federal Home Loan Bank Loans and Letter of Credit Facilities | 740,384,000 |
Letter of Credit | |
Short-term Debt [Line Items] | |
Irrevocable standby letters of credit | $ 0 |
SUBORDINATED DEBT (Details)
SUBORDINATED DEBT (Details) - Subordinated Debt | Dec. 10, 2020 USD ($) |
Subordinated debt | |
Aggregate principal amount | $ 25,000,000 |
Stated interest rate for first five years | 4.375% |
Period of time for fixed interest rate and semi-annual payments (in years) | 5 years |
Minimum period of time for notice of redemption | 10 days |
Redemption price as a percent of principle amount | 100% |
INCOME TAXES - Summary of curre
INCOME TAXES - Summary of current and deferred components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Federal | ||
Current | $ 431 | $ 2,180 |
Deferred | 253 | 114 |
Income tax expense | $ 684 | $ 2,294 |
INCOME TAXES - Summary of recon
INCOME TAXES - Summary of reconciliation between the income tax expense and the amount of income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Amount | ||
Federal income tax at statutory rate | $ 1,311 | $ 3,427 |
Tax-exempt income | (106) | (749) |
Low-income housing credits | (484) | (249) |
Bank owned life insurance income | (130) | (125) |
Prior year tax adjustments | 82 | |
Other | 11 | (10) |
Income tax expense and rate | $ 684 | $ 2,294 |
Rate | ||
Federal income tax at statutory rate | 21% | 21% |
Tax-exempt income | (1.70%) | (4.60%) |
Low-income housing credits | (7.70%) | (1.50%) |
Bank owned life insurance income | (2.10%) | (0.70%) |
Prior year tax adjustments | 1.30% | |
Other | 0.20% | (0.10%) |
Income tax expense and rate | 11% | 14.10% |
INCOME TAXES - Summary of compo
INCOME TAXES - Summary of components of the net deferred tax asset and liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets: | ||
Net unrealized losses on debt securities available-for-sale and derivatives | $ 7,880,000 | $ 7,857,000 |
Allowance for loan losses | 1,454,000 | 1,738,000 |
Provision for unfunded commitments | 35,000 | 14,000 |
Deferred compensation | 218,000 | 238,000 |
Contributions | 4,000 | 6,000 |
Accrued rent expense | 106,000 | 103,000 |
Operating lease liabilities | 415,000 | 426,000 |
Finance lease liabilities | 0 | 1,000 |
Limited partnership investments | 322,000 | 313,000 |
Impairment loss on securities | 4,000 | 4,000 |
Deferred health insurance | 53,000 | 48,000 |
Capital and net operating loss carry forwards | 285,000 | 258,000 |
Valuation allowance related to state net operating losses | (285,000) | (258,000) |
Total | 10,491,000 | 10,748,000 |
Deferred Tax Liabilities: | ||
Loan fees and costs | 225,000 | 237,000 |
Net unrealized gains on marketable equity securities | 231,000 | 319,000 |
Operating lease right-of-use assets | 415,000 | 426,000 |
Accumulated depreciation | 438,000 | 287,000 |
Accretion | 172,000 | 36,000 |
Mortgage servicing rights | 58,000 | 57,000 |
Intangibles | 257,000 | 257,000 |
Total | 1,796,000 | 1,619,000 |
Net Deferred Tax Asset | $ 8,695,000 | $ 9,129,000 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INCOME TAXES | ||
Deferred Tax Assets, Valuation Allowance | $ 285,000 | $ 258,000 |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local, Net | $ 0 | $ 0 |
State Net Operating Loss Carryforwards Offset Future State Taxable Income Expiration Term | 2043 | 2043 |
EMPLOYEE BENEFIT PLANS AND DE_2
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION AGREEMENTS (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) employee | Dec. 31, 2022 USD ($) | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Number of current officers who are part of a non-qualified deferred compensation plan | employee | 1 | |
Number of retired officers who are part of a non-qualified deferred compensation plan. | employee | 5 | |
Minimum | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Number of years for which monthly payments will be made | 15 years | |
Maximum | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Number of years for which monthly payments will be made | 20 years | |
Safe Harbor Matching Contributions Plan | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 405,000 | $ 352,000 |
Profit Sharing Feature Contributions | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 306,000 | 442,000 |
Officers | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Deferred Compensation Arrangement with Individual, Recorded Liability | 759,000 | 848,000 |
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 31,000 | $ 36,000 |
First Portion Contribution | Safe Harbor Matching Contributions Plan | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Employer match | 100% | |
Employee contribution | 3% | |
Second Portion Contribution | Safe Harbor Matching Contributions Plan | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Employer match | 50% | |
Employee contribution | 2% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Weighted average term and discount rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
COMMITMENTS AND CONTINGENCIES | ||
Operating Lease, Weighted-average term (years) | 19 years 9 months | 20 years 6 months 21 days |
Operating Lease, Weighted-average discount rate | 4.22% | 4.23% |
Finance Lease, Weighted-average term (years) | 0 years | 8 months 1 day |
Finance Lease, Weighted-average discount rate | 0.68% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Maturity analysis of operating lease liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
COMMITMENTS AND CONTINGENCIES | ||
Within one year | $ 175,000 | $ 175,000 |
After one but within two years | 140,000 | 140,000 |
After two but within three years | 140,000 | 140,000 |
After three but within four years | 154,000 | 140,000 |
After four but within five years | 157,000 | 154,000 |
After five years | 2,317,000 | 2,474,000 |
Total undiscounted cash flows | 3,083,000 | 3,223,000 |
Discount on cash flows | (1,107,000) | (1,194,000) |
Total lease liability | 1,976,000 | 2,029,000 |
Finance Lease, Minimum Lease Payments due: | ||
Within one year | 7,000 | |
Total undiscounted cash flows | 7,000 | |
Discount on cash flows | (1,000) | |
Total lease liability | $ 0 | $ 6,000 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2023 lease | Dec. 31, 2023 USD ($) lease | Dec. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 1,472,000 | $ 1,541,000 | |
Operating Lease, Liability | 1,976,000 | 2,029,000 | |
Operating Lease, Cost | 220,000 | 191,000 | |
Operating Lease, Payments | $ 204,000 | 177,000 | |
Number of finance leases | lease | 1 | ||
Number of years equipment will be depreciated | 2 years | ||
Finance lease, Right-of-Use Asset | $ 32,000 | ||
Finance lease, Right-of-Use Asset, Balance sheet location | Premises and equipment, net | ||
Finance Lease, Liability | $ 0 | $ 6,000 | |
Finance Lease Liability, Balance sheet location | (Receivable) advances from banking subsidiary | (Receivable) advances from banking subsidiary | |
Finance lease principal payments | $ 7,000 | $ 10,000 | |
Banking Facilities | |||
Lessee, Lease, Description [Line Items] | |||
Number of Operating Leases | lease | 2 | ||
Land | |||
Lessee, Lease, Description [Line Items] | |||
Number of Operating Leases | lease | 1 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narratives (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Sep. 20, 2023 item | Dec. 31, 2022 USD ($) | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||
Collateral Already Posted, Aggregate Fair Value | $ 4,650,000 | ||
Derivative, Net Liability Position, Aggregate Fair Value | $ 0 | ||
Designated as hedging instruments | Interest rate swaps | |||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||
Number of instruments | item | 4 | ||
Notional amount | $ 50,000,000 | ||
Designated as hedging instruments | Fair Value Hedges | Interest rate swaps | |||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||
Number of instruments | item | 2 | ||
Notional amount | $ 50,000,000 | ||
Designated as hedging instruments | Cash Flow Hedges | Interest rate swaps | |||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||
Number of instruments | item | 2 | ||
Notional amount | $ 100,000,000 | ||
Estimated additional amount to be reclassified | 404,000 | ||
Amount of gain reclassified from accumulated other comprehensive loss to interest expense | $ 274,000 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | |
Designated as hedging instruments | ||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||
Derivative Liabilities | $ 4,501 | |
Designated as hedging instruments | Interest rate swaps | ||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||
Derivative Liabilities | $ 4,501 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Master Netting Arrangements (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative liabilities | ||
Gross Amounts of Recognized Liabilities | $ 4,501 | |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | $ 4,501 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | |
Cash Collateral Pledge | $ (4,501) | |
Contractual Obligation, Fiscal Year Maturity [Abstract] | ||
Remaining Contractual Maturity of the Agreements 3 to 5 Years | 4,501 | |
Total | $ 4,501 | |
Designated as hedging instruments | Interest rate swaps | ||
Derivative liabilities | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Contractual Obligation, Fiscal Year Maturity [Abstract] | ||
Remaining Contractual Maturity of the Agreements 3 to 5 Years | $ 4,501 | |
Total | $ 4,501 |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Cumulative basis adjustment for fair value hedges (Details) - Designated as hedging instruments $ in Thousands | Dec. 31, 2023 USD ($) |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Closed Portfolio Amount | $ 86,770 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of assets | (1,637) |
Available-for-sale - Municipals | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Closed Portfolio Amount | 50,964 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of assets | (1,230) |
Available-for-sale - MBS | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Closed Portfolio Amount | 35,806 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of assets | (407) |
Interest rate swaps | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Notional amount | $ 50,000 |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value Hedges (Details) - Designated as hedging instruments - Fair Value Hedges - Interest rate swaps $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Amount of gain recognized in other comprehensive loss | $ (1,637) |
Amount of gain (loss) , net of fair value re-measurements, included in interest income | $ 168 |
DERIVATIVE INSTRUMENTS AND HE_8
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Cash Flow Hedges (Details) - Designated as hedging instruments - Interest rate swaps | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Notional amount | $ 50,000,000 |
Cash Flow Hedges | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Amount of loss recognized in other comprehensive loss | (2,885,000) |
Amount of gain reclassified from accumulated other comprehensive loss to interest expense | 274,000 |
Notional amount | $ 100,000,000 |
RELATED PARTY TRANSACTIONS - Lo
RELATED PARTY TRANSACTIONS - Loan activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | ||
Balance at January 1 | $ 9,647 | $ 11,184 |
Additions | 909 | 3,645 |
Deductions | (1,358) | (5,182) |
Balance at December 31 | $ 9,198 | $ 9,647 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional information (Details) - Related Party [Member] - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Related Party Deposit Liabilities | $ 26,988,000 | $ 27,248,000 |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 4,653,000 | $ 4,492,000 |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total Capital (to Risk-Weighted Assets) | ||
Actual | $ 151,381 | $ 148,223 |
For capital adequacy purposes | 77,247 | 73,429 |
Minimum capital adequacy with capital buffer | 101,386 | 96,375 |
To be well capitalized under prompt corrective action provisions | $ 96,558 | $ 91,786 |
Total - Actual | 0.1568 | 0.1615 |
For capital adequacy purposes | 0.0800 | 0.0800 |
Total - Minimum capital adequacy with capital buffer | 0.1050 | 0.1050 |
Total - To be well capitalized under prompt corrective action provisions | 0.1000 | 0.1000 |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual | $ 144,290 | $ 139,881 |
For capital adequacy purposes | 57,935 | 55,071 |
Minimum capital adequacy with capital buffer | 82,074 | 78,018 |
To be well capitalized under prompt corrective action provisions | $ 77,247 | $ 73,429 |
Tier 1 - Actual | 0.1494 | 0.1524 |
Tier 1 - For capital adequacy purposes | 0.0600 | 0.0600 |
Tier 1 - Minimum capital adequacy with capital buffer | 0.0850 | 0.0850 |
Tier 1 - To be well capitalized under prompt corrective action provisions | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual | $ 144,290 | $ 139,881 |
For capital adequacy purposes | 43,451 | 41,304 |
Minimum Capital Adequacy With Capital Buffer | 67,591 | 64,250 |
To be well capitalized under prompt corrective action provisions | $ 62,763 | $ 59,661 |
Common Equity Tier 1 - Actual | 0.1494 | 0.1524 |
Common Equity Tier 1 - For Capital Adequacy Purposes | 0.0450 | 0.0450 |
Common Equity Tier 1 - Minimum Capital Adequacy With Capital Buffer | 0.0700 | 0.0700 |
Common Equity Tier 1 - To be well capitalized under prompt corrective action provisions | 0.0650 | 0.0650 |
Tier 1 Capital (to Average Assets) | ||
Actual | $ 144,290 | $ 139,881 |
For capital adequacy purposes | 55,615 | 53,908 |
Minimum capital adequacy with capital buffer | 55,615 | 53,908 |
To be well capitalized under prompt corrective action provisions | $ 69,518 | $ 67,385 |
Actual | 0.1038 | 0.1038 |
Tier 1 - For capital adequacy purposes | 0.0400 | 0.0400 |
Tier 1 - Minimum capital adequacy with capital buffer | 0.0400 | 0.0400 |
To be well capitalized under prompt corrective action provisions | 0.0500 | 0.0500 |
REGULATORY MATTERS - Additional
REGULATORY MATTERS - Additional information (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
REGULATORY MATTERS | |
Amount Available for Dividend Distribution without Affecting Capital Adequacy Requirements | $ 23,404,000 |
Capital Conservation Buffer Rate | 2.50% |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Concentration Risk, Credit Risk, Financial Instrument, Off-Balance Sheet Risk | $ 116,954 | $ 121,938 |
Financial standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Concentration Risk, Credit Risk, Financial Instrument, Off-Balance Sheet Risk | 2,120 | 2,124 |
Performance standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Concentration Risk, Credit Risk, Financial Instrument, Off-Balance Sheet Risk | $ 3,688 | $ 3,472 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK - Additional Information (Details) - Credit Concentration Risk | Dec. 31, 2022 USD ($) |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Loans Receivable, Secure by Commercial and Residential Real Estate | $ 811,493,000 |
Loans Receivable, Percentage of Loans Secure by Commercial and Residential Real Estate | 89.10% |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Purchase And Dividend Reinvestment Plan Shares Transferred And Held | 101,902 | 71,928 |
Share Purchase And Dividend Reinvestment Plan Number Of Shares Authorized | 220,705 | |
Share Based Compensation Arrangement By Share Based Payment Award Minimum Number Of Qualifying Shares | 25 | |
Minimum | ||
Share Purchase And Dividend Reinvestment Plan Quarterly Voluntary Investment | $ 100 | |
Maximum | ||
Share Purchase And Dividend Reinvestment Plan Quarterly Voluntary Investment | $ 2,500 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | $ 392,968,000 | $ 373,444,000 |
Marketable equity securities | 1,482,000 | 1,699,000 |
Transfer in or out of Level 3 | 0 | 0 |
U.S. Treasury and/or agency securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 7,041,000 | 6,801,000 |
Obligations of U.S. Government Agencies and Sponsored Agencies Other | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 7,632,000 | 11,180,000 |
Asset backed securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 82,162,000 | 36,418,000 |
Corporate debt securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 36,388,000 | 42,993,000 |
Marketable Equity Securities | ||
Available-for-Sale Securities: | ||
Marketable equity securities | 1,482,000 | 1,699,000 |
Fair Value, Measurements, Recurring | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 392,968,000 | 373,444,000 |
Total recurring fair value measurements | 394,450,000 | 375,143,000 |
Fair Value, Measurements, Recurring | U.S. Treasury and/or agency securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 7,041,000 | 6,801,000 |
Fair Value, Measurements, Recurring | Mortgage Backed Obligations Of Us Government Corporations And Agencies | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 137,992,000 | 131,675,000 |
Fair Value, Measurements, Recurring | Obligations of U.S. Government Agencies and Sponsored Agencies Other | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 7,632,000 | 11,180,000 |
Fair Value, Measurements, Recurring | Other Mortgage Backed Debt Securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 34,050,000 | 33,688,000 |
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 87,703,000 | 110,689,000 |
Fair Value, Measurements, Recurring | Asset backed securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 82,162,000 | 36,418,000 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 36,388,000 | 42,993,000 |
Fair Value, Measurements, Recurring | Marketable Equity Securities | ||
Available-for-Sale Securities: | ||
Marketable equity securities | 1,482,000 | 1,699,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 7,041,000 | 6,801,000 |
Total recurring fair value measurements | 8,523,000 | 8,500,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | U.S. Treasury and/or agency securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 7,041,000 | 6,801,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Mortgage Backed Obligations Of Us Government Corporations And Agencies | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Obligations of U.S. Government Agencies and Sponsored Agencies Other | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Other Mortgage Backed Debt Securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Obligations of state and political subdivisions | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Asset backed securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Corporate debt securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Marketable Equity Securities | ||
Available-for-Sale Securities: | ||
Marketable equity securities | 1,482,000 | 1,699,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 385,927,000 | 366,643,000 |
Total recurring fair value measurements | 385,927,000 | 366,643,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. Treasury and/or agency securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Mortgage Backed Obligations Of Us Government Corporations And Agencies | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 137,992,000 | 131,675,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Obligations of U.S. Government Agencies and Sponsored Agencies Other | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 7,632,000 | 11,180,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Mortgage Backed Debt Securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 34,050,000 | 33,688,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Obligations of state and political subdivisions | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 87,703,000 | 110,689,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Asset backed securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 82,162,000 | 36,418,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate debt securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 36,388,000 | 42,993,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Marketable Equity Securities | ||
Available-for-Sale Securities: | ||
Marketable equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | U.S. Treasury and/or agency securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Mortgage Backed Obligations Of Us Government Corporations And Agencies | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Obligations of U.S. Government Agencies and Sponsored Agencies Other | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Other Mortgage Backed Debt Securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Obligations of state and political subdivisions | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Asset backed securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Corporate debt securities | ||
Available-for-Sale Securities: | ||
Debt Securities Available-for-Sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Marketable Equity Securities | ||
Available-for-Sale Securities: | ||
Marketable equity securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Nonre
FAIR VALUE MEASUREMENTS - Nonrecurring - Impaired loans measured at FV (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Minimum impaired loan balance that requires an appraisal to be obtained and reviewed annually for impaired loan valuation procedure | $ 250,000 | |
Maximum impaired loan balance for which the bank completes a Certificate of Inspection | 250,000 | |
Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans | 1,990,000 | |
Impaired loans | $ 5,197,000 | |
Fair Value, Inputs, Level 1 | Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans | 0 | |
Impaired loans | 0 | |
Fair Value, Inputs, Level 2 | Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans | 0 | |
Impaired loans | 0 | |
Fair Value, Inputs, Level 3 | Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans | 1,990,000 | |
Impaired loans | 5,197,000 | |
Commercial real estate | Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans | 1,990,000 | |
Impaired loans | 5,167,000 | |
Commercial real estate | Fair Value, Inputs, Level 1 | Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans | 0 | |
Impaired loans | 0 | |
Commercial real estate | Fair Value, Inputs, Level 2 | Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans | 0 | |
Impaired loans | 0 | |
Commercial real estate | Fair Value, Inputs, Level 3 | Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans | $ 1,990,000 | |
Impaired loans | 5,167,000 | |
Residential Real Estate | Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 30,000 | |
Residential Real Estate | Fair Value, Inputs, Level 1 | Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Residential Real Estate | Fair Value, Inputs, Level 2 | Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Residential Real Estate | Fair Value, Inputs, Level 3 | Fair Value Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 30,000 |
FAIR VALUE MEASUREMENTS - Quant
FAIR VALUE MEASUREMENTS - Quantitative information about Level 3 FV measurements (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Impaired loans - collateral dependent | Appraisal Of Collateral, Certificate of Inspection | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Estimate | $ 1,990 | $ 2,370 |
Valuation Technique | Appraisal of collateral1,3Certificate of Inspection1,3 | Appraisal of collateral1,3Certificate of Inspection1,3 |
Unobservable Input | Appraisal adjustments2Qualitative Adjustments4 | Appraisal adjustments2Qualitative Adjustments4 |
Impaired loans - collateral dependent | Minimum | Appraisal Of Collateral, Certificate of Inspection | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Comparability Adjustments | (5.00%) | 0% |
Impaired loans - collateral dependent | Maximum | Appraisal Of Collateral, Certificate of Inspection | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Comparability Adjustments | (5.00%) | (5.00%) |
Impaired loans - collateral dependent | Weighted Average | Appraisal Of Collateral, Certificate of Inspection | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Comparability Adjustments | (5.00%) | (5.00%) |
Impaired Loans Receivable Discounted Cash Flow | Discounted Cash Flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Valuation Technique | Discounted cash flow | |
Unobservable Input | Discount rate | |
Impaired loans - other | Discounted Cash Flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Estimate | $ 2,827 | |
Impaired loans - other | Minimum | Discounted Cash Flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Comparability Adjustments | (4.00%) | |
Impaired loans - other | Maximum | Discounted Cash Flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Comparability Adjustments | (7.00%) | |
Impaired loans - other | Weighted Average | Discounted Cash Flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Comparability Adjustments | (6.00%) |
FAIR VALUE MEASUREMENTS - FV of
FAIR VALUE MEASUREMENTS - FV of Financial instruments., nonrecurring (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
FINANCIAL LIABILITIES: (Fair Value) | ||
Accrued interest payable | $ 2,823 | $ 563 |
Derivative Liabilities | 4,501 | |
Estimate of Fair Value Measurement [Member] | Fair Value Measurements, Nonrecurring | Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member] | ||
FINANCIAL ASSETS: (Fair Value) | ||
Cash and due from banks | 9,462 | 9,441 |
Interest-bearing deposits in other banks | 7,551 | 1,297 |
Restricted investment in bank stocks | 10,885 | 7,136 |
Net loans | 885,840 | 810,104 |
Mortgage servicing rights | 265 | 319 |
Accrued interest receivable | 5,201 | 4,391 |
FINANCIAL LIABILITIES: (Fair Value) | ||
Demand, savings and other deposits | 686,321 | 827,399 |
Time deposits | 292,073 | 160,472 |
Short-term borrowings | 153,509 | 153,209 |
Long-term borrowings | 125,343 | 24,090 |
Subordinated debentures | 22,762 | 22,365 |
Accrued interest payable | 2,823 | 563 |
Derivative Liabilities | 4,501 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value Measurements, Nonrecurring | Fair Value, Inputs, Level 1 | ||
FINANCIAL ASSETS: (Fair Value) | ||
Cash and due from banks | 9,462 | 9,441 |
Interest-bearing deposits in other banks | 0 | 0 |
Restricted investment in bank stocks | 0 | 0 |
Net loans | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Accrued interest receivable | 0 | 0 |
FINANCIAL LIABILITIES: (Fair Value) | ||
Demand, savings and other deposits | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value Measurements, Nonrecurring | Fair Value, Inputs, Level 2 | ||
FINANCIAL ASSETS: (Fair Value) | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 7,551 | 1,297 |
Restricted investment in bank stocks | 10,885 | 7,136 |
Net loans | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Accrued interest receivable | 5,201 | 4,391 |
FINANCIAL LIABILITIES: (Fair Value) | ||
Demand, savings and other deposits | 686,321 | 827,399 |
Time deposits | 292,073 | 160,472 |
Short-term borrowings | 153,509 | 153,209 |
Long-term borrowings | 125,343 | 24,090 |
Subordinated debentures | 22,762 | 22,365 |
Accrued interest payable | 2,823 | 563 |
Derivative Liabilities | 4,501 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
FINANCIAL ASSETS: (Fair Value) | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 |
Restricted investment in bank stocks | 0 | 0 |
Net loans | 885,840 | 810,104 |
Mortgage servicing rights | 265 | 319 |
Accrued interest receivable | 0 | 0 |
FINANCIAL LIABILITIES: (Fair Value) | ||
Demand, savings and other deposits | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Reported Value Measurement [Member] | Fair Value Measurements, Nonrecurring | ||
FINANCIAL ASSETS: (Fair Value) | ||
Cash and due from banks | 9,462 | 9,441 |
Interest-bearing deposits in other banks | 7,551 | 1,297 |
Restricted investment in bank stocks | 10,885 | 7,136 |
Net loans | 904,153 | 850,195 |
Mortgage servicing rights | 265 | 319 |
Accrued interest receivable | 5,201 | 4,391 |
FINANCIAL LIABILITIES: (Fair Value) | ||
Demand, savings and other deposits | 686,321 | 827,399 |
Time deposits | 294,118 | 166,100 |
Short-term borrowings | 153,468 | 153,418 |
Long-term borrowings | 122,000 | 25,000 |
Subordinated debentures | 25,000 | 25,000 |
Accrued interest payable | 2,823 | 563 |
Derivative Liabilities | $ 4,501 | $ 0 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
REVENUE RECOGNITION | ||
Fair value of trust assets | $ 109,064,000 | $ 111,172,000 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
GOODWILL. | ||
Goodwill | $ 19,133,000 | $ 19,133,000 |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION (BALANCE SHEETS) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | |||
Investment in banking subsidiary | $ 5,961 | $ 3,763 | |
Marketable equity securities | 1,482 | 1,699 | |
TOTAL ASSETS | 1,415,870 | 1,329,194 | |
LIABILITIES | |||
(Receivable) advances from banking subsidiary | 8,549 | 9,299 | |
Subordinated Debentures | 25,000 | 25,000 | |
TOTAL LIABILITIES | 1,294,255 | 1,208,808 | |
STOCKHOLDERS' EQUITY | |||
Common stock | 12,705 | 12,502 | |
Surplus | 44,004 | 42,439 | |
Retained earnings | 100,260 | 100,712 | |
Accumulated other comprehensive loss | (29,645) | (29,558) | |
Treasury stock, at cost | (5,709) | (5,709) | |
TOTAL STOCKHOLDERS' EQUITY | 121,615 | 120,386 | $ 148,555 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,415,870 | 1,329,194 | |
Parent Company [Member] | Reportable Legal Entities [Member] | |||
ASSETS | |||
Cash | 9,753 | 13,860 | |
Investment in banking subsidiary | 135,301 | 129,456 | |
Marketable equity securities | 1,482 | 1,699 | |
Prepaid expenses and other assets | 551 | 854 | |
TOTAL ASSETS | 147,087 | 145,869 | |
LIABILITIES | |||
(Receivable) advances from banking subsidiary | $ (307) | $ 168 | |
Other Liability, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | |
Subordinated Debentures | $ 25,000 | $ 25,000 | |
Accrued expenses and other liabilities | 779 | 315 | |
TOTAL LIABILITIES | 25,472 | 25,483 | |
STOCKHOLDERS' EQUITY | |||
Common stock | 12,705 | 12,502 | |
Surplus | 44,004 | 42,439 | |
Retained earnings | 100,260 | 100,712 | |
Accumulated other comprehensive loss | (29,645) | (29,558) | |
Treasury stock, at cost | (5,709) | (5,709) | |
TOTAL STOCKHOLDERS' EQUITY | 121,615 | 120,386 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 147,087 | $ 145,869 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION (STATEMENTS OF INCOME) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INCOME | ||
Net securities losses | $ (217) | $ (120) |
INCOME BEFORE INCOME TAX BENEFIT | 6,244 | 16,318 |
INCOME TAX BENEFIT | 684 | 2,294 |
NET INCOME | 5,560 | 14,024 |
Reportable Legal Entities [Member] | Parent Company [Member] | ||
INCOME | ||
Dividends from subsidiary bank | 1,526 | 6,102 |
Net securities losses | (217) | (93) |
Other income | 94 | 98 |
TOTAL INCOME | 1,403 | 6,107 |
Interest on subordinated debt | 1,094 | 1,091 |
Other expense | 217 | 195 |
TOTAL EXPENSE | 1,311 | 1,286 |
INCOME BEFORE INCOME TAX BENEFIT | 92 | 4,821 |
INCOME TAX BENEFIT | (303) | (275) |
Income Before Equity in Undistributed Net Income of Subsidiary | 395 | 5,096 |
EQUITY IN UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY | 5,165 | 8,928 |
NET INCOME | $ 5,560 | $ 14,024 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION (STATEMENTS OF COMPREHENSIVE INCOME (LOSS)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net Income | $ 5,560 | $ 14,024 |
Other comprehensive loss: | ||
Total other comprehensive loss | (87) | (37,146) |
Total Comprehensive Income (Loss) | 5,473 | (23,122) |
Reportable Legal Entities [Member] | Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net Income | 5,560 | 14,024 |
Other comprehensive loss: | ||
Equity in other comprehensive loss of banking subsidiary | (87) | (37,146) |
Total other comprehensive loss | (87) | (37,146) |
Total Comprehensive Income (Loss) | $ 5,473 | $ (23,122) |
PARENT COMPANY FINANCIAL INFO_6
PARENT COMPANY FINANCIAL INFORMATION (STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | $ 5,560 | $ 14,024 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Losses on securities | 217 | 120 |
Deferred income tax benefit | 253 | 114 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 5,905 | 18,163 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
NET CASH USED IN INVESTING ACTIVITIES | (76,833) | (93,634) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividends paid | (6,780) | (6,690) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 77,203 | 24,871 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 6,275 | (50,600) |
CASH AND CASH EQUIVALENTS, BEGINNING | 10,738 | 61,338 |
CASH AND CASH EQUIVALENTS, ENDING | 17,013 | 10,738 |
Reportable Legal Entities [Member] | Parent Company [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | 5,560 | 14,024 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Losses on securities | 217 | 93 |
Deferred income tax benefit | (88) | (34) |
Equity in undistributed earnings of banking subsidiary | (5,165) | (8,928) |
Increase in prepaid/accrued expenses and other assets/liabilities | 869 | 47 |
Decrease in advances from banking subsidiary | (474) | (245) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 919 | 4,957 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sales of equity securities | 170 | |
NET CASH USED IN INVESTING ACTIVITIES | 170 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock | 1,754 | 1,635 |
Dividends paid | (6,780) | (6,690) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | (5,026) | (5,055) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (4,107) | 72 |
CASH AND CASH EQUIVALENTS, BEGINNING | 13,860 | 13,788 |
CASH AND CASH EQUIVALENTS, ENDING | $ 9,753 | $ 13,860 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 5,560 | $ 14,024 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |