Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 29, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 001-13349 | |
Entity Registrant Name | BAR HARBOR BANKSHARES | |
Entity Incorporation, State or Country Code | ME | |
Entity Tax Identification Number | 01-0393663 | |
Entity Address, Address Line One | PO Box 400 | |
Entity Address, Address Line Two | 82 Main Street | |
Entity Address, City or Town | Bar Harbor | |
Entity Address, State or Province | ME | |
Entity Address, Postal Zip Code | 04609-0400 | |
City Area Code | 207 | |
Local Phone Number | 288-3314 | |
Title of 12(b) Security | Common Stock, par value $2.00 per share | |
Trading Symbol | BHB | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,982,325 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000743367 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 41,440 | $ 27,566 |
Interest-bearing deposits with other banks | 132,278 | 198,441 |
Total cash and cash equivalents | 173,718 | 226,007 |
Securities: | ||
Securities available for sale | 621,849 | 585,046 |
Federal Home Loan Bank stock | 14,145 | 14,036 |
Total securities | 635,994 | 599,082 |
Loans held for sale | 7,942 | 23,988 |
Loans: | ||
Total loans | 2,515,560 | 2,562,885 |
Less: Allowance for credit losses | (22,815) | (19,082) |
Net loans | 2,492,745 | 2,543,803 |
Premises and equipment, net | 51,119 | 52,458 |
Goodwill | 119,477 | 119,477 |
Other intangible assets | 7,198 | 7,670 |
Cash surrender value of bank-owned life insurance | 78,886 | 77,870 |
Deferred tax assets, net | 4,349 | 1,745 |
Other assets | 68,247 | 73,662 |
Total assets | 3,639,675 | 3,725,762 |
Deposits: | ||
Demand | 599,598 | 544,636 |
NOW | 802,681 | 738,849 |
Savings | 578,361 | 521,638 |
Money market | 371,075 | 402,731 |
Time | 470,758 | 698,361 |
Total deposits | 2,822,473 | 2,906,215 |
Borrowings: | ||
Senior | 279,991 | 276,062 |
Subordinated | 60,042 | 59,961 |
Total borrowings | 340,033 | 336,023 |
Other liabilities | 61,597 | 72,183 |
Total liabilities | 3,224,103 | 3,314,421 |
Shareholders' equity | ||
Capital stock, par value $2.00; authorized 20,000,000 shares; issued 16,428,388 shares at June 30, 2021 and December 31, 2020 | 32,857 | 32,857 |
Additional paid-in capital | 190,801 | 190,084 |
Retained earnings | 201,994 | 195,607 |
Accumulated other comprehensive income | 7,694 | 11,016 |
Less: 1,456,175 and 1,512,465 shares of treasury stock at June 30, 2021 and December 31, 2020, respectively | (17,774) | (18,223) |
Total shareholders' equity | 415,572 | 411,341 |
Total liabilities and shareholders' equity | $ 3,639,675 | $ 3,725,762 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Capital stock, par value (in dollars per share) | $ 2 | $ 2 |
Capital stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Capital stock, shares issued (in shares) | 16,428,388 | 16,428,388 |
Treasury stock (in shares) | 1,456,175 | 1,512,465 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest and dividend income | ||||
Loans | $ 23,191 | $ 26,493 | $ 47,396 | $ 54,480 |
Securities and other | 3,992 | 4,942 | 7,971 | 10,449 |
Total interest and dividend income | 27,183 | 31,435 | 55,367 | 64,929 |
Interest expense | ||||
Deposits | 2,603 | 4,548 | 5,554 | 10,568 |
Borrowings | 1,826 | 2,297 | 3,637 | 5,208 |
Total interest expense | 4,429 | 6,845 | 9,191 | 15,776 |
Net interest income | 22,754 | 24,590 | 46,176 | 49,153 |
Provision for credit losses | (765) | 1,354 | (1,254) | 2,465 |
Net interest income after provision for loan losses | 23,519 | 23,236 | 47,430 | 46,688 |
Non-interest income | ||||
Trust and investment management fee income | 3,801 | 3,159 | 7,467 | 6,528 |
Customer service fees | 3,257 | 2,439 | 6,227 | 5,551 |
Gain on sales of securities, net | 50 | 1,351 | 50 | 1,486 |
Mortgage banking income | 1,553 | 1,124 | 4,123 | 1,581 |
Bank-owned life insurance income | 498 | 496 | 1,016 | 1,033 |
Customer derivative income | 86 | 513 | 496 | 1,101 |
Other income | 260 | 628 | 374 | 851 |
Total non-interest income | 9,505 | 9,710 | 19,753 | 18,131 |
Non-interest expense | ||||
Salaries and employee benefits | 11,356 | 11,909 | 23,532 | 23,793 |
Occupancy and equipment | 3,894 | 3,860 | 8,222 | 8,280 |
Loss (gain) on sales of premises and equipment, net | 1 | (2) | 9 | 90 |
Outside services | 533 | 442 | 965 | 976 |
Professional services | 151 | 337 | 709 | 1,009 |
Communication | 198 | 194 | 519 | 483 |
Marketing | 534 | 282 | 824 | 670 |
Amortization of intangible assets | 233 | 256 | 474 | 512 |
Loss on debt extinguishment | 1,351 | 0 | 1,351 | |
Acquisition, conversion and other expenses | 552 | 158 | 1,441 | 261 |
Other expenses | 4,272 | 3,479 | 7,520 | 7,200 |
Total non-interest expense | 21,724 | 22,266 | 44,215 | 44,625 |
Income before income taxes | 11,300 | 10,680 | 22,968 | 20,194 |
Income tax expense | 2,275 | 2,199 | 4,463 | 3,992 |
Net income | $ 9,025 | $ 8,481 | $ 18,505 | $ 16,202 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.60 | $ 0.55 | $ 1.24 | $ 1.05 |
Diluted (in dollars per share) | $ 0.60 | $ 0.55 | $ 1.23 | $ 1.04 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 14,965,398 | 15,423,997 | 14,949,564 | 15,500,033 |
Diluted (in shares) | 15,041,825 | 15,441,278 | 15,025,694 | 15,522,993 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 9,025 | $ 8,481 | $ 18,505 | $ 16,202 |
Other comprehensive income, before tax: | ||||
Changes in unrealized gain (loss) on securities available for sale | 3,557 | 2,421 | (3,628) | 7,662 |
Changes in unrealized gain (loss) on hedging derivatives | 1,963 | 626 | (696) | (1,639) |
Changes in unrealized loss on pension | 0 | 0 | 0 | 0 |
Income taxes related to other comprehensive income: | ||||
Changes in unrealized (gain) loss on securities available for sale | (830) | (569) | 842 | (1,709) |
Changes in unrealized (gain) loss on hedging derivatives | (460) | (147) | 160 | 296 |
Changes in unrealized loss on pension | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 4,230 | 2,331 | (3,322) | 4,610 |
Total comprehensive income | $ 13,255 | $ 10,812 | $ 15,183 | $ 20,812 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common stock amountImpact of CECL Adoption | Common stock amount | Additional paid-in capitalImpact of CECL Adoption | Additional paid-in capital | Retained earningsImpact of CECL Adoption | Retained earnings | Accumulated other comprehensive income (loss)Impact of CECL Adoption | Accumulated other comprehensive income (loss) | Treasury stockImpact of CECL Adoption | Treasury stock | Impact of CECL Adoption | Total |
Balance at beginning of period at Dec. 31, 2019 | $ 32,857 | $ 188,536 | $ 175,780 | $ 3,911 | $ (4,677) | $ 396,407 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 0 | 0 | 7,721 | 0 | 0 | 7,721 | ||||||
Other comprehensive (loss) income | 0 | 0 | 0 | 2,279 | 0 | 2,279 | ||||||
Cash dividends declared | 0 | 0 | (3,429) | 0 | 0 | (3,429) | ||||||
Treasury stock purchased | 0 | 0 | 0 | 0 | (130) | (130) | ||||||
Net issuance to employee stock plans, including related tax effects | 0 | 660 | 0 | 0 | 129 | 789 | ||||||
Recognition of stock based compensation | 0 | 118 | 0 | 0 | 0 | 118 | ||||||
Balance at end of period at Mar. 31, 2020 | 32,857 | 189,314 | 180,072 | 6,190 | (4,678) | 403,755 | ||||||
Balance at beginning of period at Dec. 31, 2019 | 32,857 | 188,536 | 175,780 | 3,911 | (4,677) | 396,407 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 16,202 | |||||||||||
Other comprehensive (loss) income | 4,610 | 4,610 | ||||||||||
Balance at end of period at Jun. 30, 2020 | 32,857 | 189,526 | 185,163 | 8,521 | (11,893) | 404,174 | ||||||
Balance at beginning of period at Mar. 31, 2020 | 32,857 | 189,314 | 180,072 | 6,190 | (4,678) | 403,755 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 0 | 0 | 8,481 | 0 | 0 | 8,481 | ||||||
Other comprehensive (loss) income | 0 | 0 | 0 | 2,331 | 0 | 2,331 | ||||||
Cash dividends declared | 0 | 0 | (3,390) | 0 | 0 | (3,390) | ||||||
Treasury stock purchased | 0 | 0 | 0 | 0 | (7,337) | (7,337) | ||||||
Net issuance to employee stock plans, including related tax effects | 0 | (254) | 0 | 0 | 122 | (132) | ||||||
Recognition of stock based compensation | 0 | 466 | 0 | 0 | 0 | 466 | ||||||
Balance at end of period at Jun. 30, 2020 | 32,857 | 189,526 | 185,163 | 8,521 | (11,893) | 404,174 | ||||||
Balance at beginning of period (Accounting Standards Update 2016-13) at Dec. 31, 2020 | $ 0 | $ 0 | $ (5,242) | $ 0 | $ 0 | $ (5,242) | ||||||
Balance at beginning of period at Dec. 31, 2020 | 32,857 | 190,084 | 195,607 | 11,016 | (18,223) | 411,341 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 0 | 0 | 9,480 | 0 | 0 | 9,480 | ||||||
Other comprehensive (loss) income | 0 | 0 | 0 | (7,552) | 0 | (7,552) | ||||||
Cash dividends declared | 0 | 0 | (3,284) | 0 | 0 | (3,284) | ||||||
Net issuance to employee stock plans, including related tax effects | 0 | (186) | 0 | 0 | 358 | 172 | ||||||
Recognition of stock based compensation | 0 | 666 | 0 | 0 | 0 | 666 | ||||||
Balance at end of period at Mar. 31, 2021 | 32,857 | 190,564 | 196,561 | 3,464 | (17,865) | 405,581 | ||||||
Balance at beginning of period (Accounting Standards Update 2016-13) at Dec. 31, 2020 | $ 0 | $ 0 | $ (5,242) | $ 0 | $ 0 | $ (5,242) | ||||||
Balance at beginning of period at Dec. 31, 2020 | 32,857 | 190,084 | 195,607 | 11,016 | (18,223) | 411,341 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 18,505 | |||||||||||
Other comprehensive (loss) income | (3,322) | (3,322) | ||||||||||
Balance at end of period at Jun. 30, 2021 | 32,857 | 190,801 | 201,994 | 7,694 | (17,774) | 415,572 | ||||||
Balance at beginning of period at Mar. 31, 2021 | 32,857 | 190,564 | 196,561 | 3,464 | (17,865) | 405,581 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 0 | 0 | 9,025 | 0 | 0 | 9,025 | ||||||
Other comprehensive (loss) income | 0 | 0 | 0 | 4,230 | 0 | 4,230 | ||||||
Cash dividends declared | 0 | 0 | (3,592) | 0 | 0 | (3,592) | ||||||
Net issuance to employee stock plans, including related tax effects | 0 | (94) | 0 | 0 | 91 | (3) | ||||||
Recognition of stock based compensation | 0 | 331 | 0 | 0 | 0 | 331 | ||||||
Balance at end of period at Jun. 30, 2021 | $ 32,857 | $ 190,801 | $ 201,994 | $ 7,694 | $ (17,774) | $ 415,572 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.24 | $ 0.22 | $ 0.22 | $ 0.22 |
Treasury stock purchased (in shares) | 399,622 | 6,069 | ||
Net issuance (in shares) | 22,241 | 34,049 | 30,987 | 27,786 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 18,505 | $ 16,202 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | (1,254) | 2,465 |
Net amortization of securities | 1,219 | 1,603 |
Change in unamortized net loan costs and premiums | (2,200) | 2,223 |
Premises and equipment depreciation | 2,341 | 2,380 |
Stock-based compensation expense | 997 | 584 |
Accretion of purchase accounting entries, net | (45) | (516) |
Amortization of other intangibles | 472 | 512 |
Income from cash surrender value of bank-owned life insurance policies | (1,016) | (1,033) |
Gain on sales of securities, net | (50) | (1,486) |
Decrease in right-of-use lease assets | 566 | (578) |
Decrease in lease liabilities | (520) | (625) |
Loss on other real estate owned | 82 | |
Loss on premises and equipment, net | 9 | 90 |
Net change in other assets and liabilities | (6,102) | (5,787) |
Net cash provided by operating activities | 12,922 | 16,116 |
Cash flows from investing activities: | ||
Proceeds from sales of securities available for sale | 4,050 | 87,521 |
Proceeds from maturities, calls and prepayments of securities available for sale | 69,900 | 63,096 |
Purchases of securities available for sale | (115,928) | (120,405) |
Net change in loans | 65,330 | (91,857) |
Purchase of FHLB stock | (790) | (4,044) |
Proceeds from sale of FHLB stock | 681 | 4,458 |
Purchase of premises and equipment, net | (1,008) | (2,221) |
Net investment in community limited partnerships | (917) | |
Acquisitions, net of cash acquired | (340) | |
Net cash provided by (used in) investing activities | 21,318 | (63,792) |
Cash flows from financing activities: | ||
Net change in deposits | (83,742) | (420) |
Net change in short-term senior borrowings | 14,324 | (119,774) |
Proceeds from long-term senior borrowings | 273,436 | |
Repayments of long-term senior borrowings | (14) | (67,188) |
Net change in short-term other borrowings | (10,390) | (10,986) |
Exercise of stock options | 169 | 657 |
Purchase of treasury and common stock | (7,467) | |
Cash dividends paid on common stock | (6,876) | (6,819) |
Net cash (used in) provided by financing activities | (86,529) | 61,439 |
Net change in cash and cash equivalents | (52,289) | 13,763 |
Cash and cash equivalents at beginning of year | 226,007 | 56,910 |
Cash and cash equivalents at end of year | 173,718 | 70,673 |
Supplemental cash flow information: | ||
Interest paid | 10,019 | 16,275 |
Income taxes paid, net | $ 5,622 | 3,112 |
Acquisition of non-cash assets and liabilities: | ||
Assets acquired | 1,171 | |
Liabilities acquired | $ (343) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1. BASIS OF PRESENTATION The consolidated financial statements (the “financial statements”) of Bar Harbor Bankshares and its subsidiaries (the “Company” or “Bar Harbor”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Bar Harbor Bankshares is a Maine Financial Institution Holding Company for the purposes of the laws of the state of Maine, and as such is subject to the jurisdiction of the Superintendent of the Maine Bureau of Financial Institutions. These financial statements include the accounts of the Company, its wholly owned subsidiary Bar Harbor Bank & Trust (the "Bank") and the Bank’s consolidated subsidiaries. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly owned and majority owned subsidiaries are consolidated unless GAAP requires otherwise. In addition, these interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to GAAP have been omitted. The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and note disclosures for the Company's Annual Report on Form 10-K for the year ended December 31, 2020 previously filed with the Securities and Exchange Commission (the "SEC"). In management's opinion, all adjustments necessary for a fair statement are reflected in the interim periods presented. Reclassifications: Summary of Significant Accounting Policies The disclosures below supplement updates the accounting policies previously disclosed in NOTE 1 – Summary of Significant Accounting Policies of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The updates reflect the adoption of the Financial Accounting Standards Board (FASB) Accounting Standards Updates (ASU) 2016-13, “Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments”, referred to as ASC 326 or, more commonly, referred to as Current Expected Credit Losses (CECL). Allowance for Credit Loss on AFS Debt Securities: A change in the allowance on AFS debt securities may be in full or a portion thereof, is recorded as expense (credit) within provision for credit losses on the consolidated statements of income. Losses are charged against the allowance when management believes the uncollectibility of an AFS debt security is confirmed based on the above described analysis. As of June 30, 2021 and January 1, 2021 (i.e. ASU 2016-13 adoption), there was no allowance carried on the Company's AFS debt securities. Refer to Note 2 of the consolidated financial statements for further discussion. Loans: For originated loans, loan fees and certain direct origination costs are deferred and amortized into interest income over the contractual term of the loan using the level-yield method over the estimated lives of the related loans. When a loan is paid off, the unamortized portion of deferred fees or costs are recognized in interest income. Interest income on originated loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans, interest income is accrued based upon the daily principal amount outstanding and is then further adjusted by the accretion of any discount or amortization of any premium associated with the loan that was recognized based on the acquisition date fair value. When a loan is paid off, the unamortized portion of any premiums or discounts on loans are recognized in interest income. Purchase Credit Deteriorated (PCD) Loans: The Company adopted CECL using the prospective transition approach for financial assets purchased with credit deterioration that were previously classified as purchased credit impaired (PCI) and accounted for under ASC 310-30. In accordance with the standard, the Company did not reassess whether PCI assets met the definition of PCD assets as of the date of adoption. On January 1, 2021, the amortized cost basis of the PCD assets representing the noncredit discount will be accreted into interest income using the level-yield method over the estimated lives of the related loans. The converted PCD assets of $12.5 million were then pooled by call report coding and an additional allowance was calculated on the pooled assets separately from other loan pools totaling $524 thousand. Non-performing loans: When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on the loan. The interest on non-accrual loans is accounted for using the cash-basis or cost-recovery method depending on corresponding credit risk, until qualifying for return to accrual status. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Previously, acquired loans that met the criteria for non-accrual of interest prior to the acquisition were considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company could reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans and any change in performance would have impacted accretable yield. After adoption of ASC 326 on January 1, 2021 the Company now treats these non-performing acquired loans that meet the criteria for non-accrual consistent with originated loans. Allowance for Credit Losses: Upon adoption of ASC 326 or CECL on January 1, 2021, the Company replaced the incurred loss impairment model that recognizes losses when it became probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged- off. The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, generally larger non-accruing commercial loans and TDRs. The Company uses the discounted cash flow (“DCF”) method to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis. For each loan segment, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, probability of default, and loss given default. The modeling of prepayment speeds is based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, property values, housing starts, and other relevant factors as loss drivers. For all DCF models, management has determined that due to historic volatility in economic data, two quarters currently represents a reasonable and supportable forecast period, followed by a six-period reversion to historical mean levels for each of the various economic indicators. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Specific instrument effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value ("NPV"). An allowance is established for the difference between the instrument’s NPV and amortized cost basis. The allowance evaluation also considers various qualitative factors, such as: (i) changes to lending policies, underwriting standards and/or management personnel performing such functions, (ii) delinquency and other credit quality trends, (iii) credit risk concentrations, if any, (iv) changes to the nature of the Company's business impacting the loan portfolio, (v) and other external factors, that may include, but are not limited to, results of internal loan reviews, stress testing, examinations by bank regulatory agencies, or other events such as a natural disaster. Arriving at an appropriate level of allowance involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. Individually Evaluated Loans : With the adoption of CECL, loans that do not share risk characteristics with existing pools are evaluated on an individual basis. For loans that are individually evaluated and collateral dependent, financial loans where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral. When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Accrued Interest Allowance for off-balance sheet credit exposures: Impact of Adoption The following table illustrates the adoption of CECL on January 1, 2021: Reclassification Pre-CECL Post-CECL to CECL Adoption Adoption Impact of Pre-CECL Portfolio Portfolio Portfolio CECL (in thousands) Adoption Segmentation Segmentation Segmentation Adoption Assets: Loans: Commercial construction $ 131,123 $ (13,241) $ 117,882 $ 117,882 $ — Commercial real estate 953,258 (953,258) — — — Commercial real estate owner occupied — 219,217 219,217 219,217 — Commercial real estate non-owner occupied — 716,776 716,776 716,776 — Tax exempt 63,431 (15,569) 47,862 47,862 — Commercial and industrial 377,638 (21,954) 355,684 355,684 — Residential real estate 923,891 71,325 995,216 995,216 — Home equity 102,464 (2,368) 100,096 100,096 — Consumer other 11,080 (928) 10,152 10,152 — Total loans $ 2,562,885 $ — $ 2,562,885 $ 2,562,885 $ — Allowance for credit losses on loans Commercial construction $ 1,044 $ (220) $ 824 $ 2,020 $ 1,196 Commercial real estate 10,199 (10,199) — — — Commercial real estate owner occupied — 1,783 1,783 2,491 708 Commercial real estate non-owner occupied — 7,864 7,864 5,856 (2,008) Tax exempt 80 (22) 58 98 40 Commercial and industrial 3,302 (165) 3,137 6,133 2,996 Residential real estate 4,078 932 5,010 6,742 1,732 Home equity 258 27 285 888 603 Consumer other 121 — 121 82 (39) Total allowance for credit losses on loans $ 19,082 $ — $ 19,082 $ 24,310 $ 5,228 Liabilities: Allowance for credit losses on unfunded commitments $ 359 $ — $ 359 $ 1,975 $ 1,616 Total allowance for credit losses $ 19,441 $ — $ 19,441 $ 26,285 $ 6,844 Retained earnings: Total increase in Allowance for credit losses $ 6,844 Tax effect (1,602) Decrease to retained earnings $ 5,242 Recent Accounting Pronouncements The following table provides a brief description of recent accounting standards updates ("ASU") that could have a material impact to the Company’s consolidated financial statements upon adoption: Standard Description Required Date Effect on financial statements Standards Adopted in 2021 ASU 2016-13, Measurement of Credit Losses on Financial Instruments ASU 2018‑19, Codification Improvements to ASU 2016-13 This ASU amends Topic 326, Financial Instruments- Credit Losses to replace the current incurred loss accounting model with a current expected credit loss approach ("CECL") for financial instruments measured at amortized cost and other commitments to extend credit, such as of balance sheet credit exposures (loan comitments, unused line of credit and stand-by letters of credit). The amendments require entities to consider all available relevant information when estimating current expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts. The resulting allowance for credit losses is to reflect the portion of the amortized cost basis that the entity does not expect to collect. The amendments also eliminate the current accounting model for purchased credit impaired loans and certain off-balance sheet exposures. Additional quantitative and qualitative disclosures are required upon adoption. January 1, 2022 Adoption of this ASU primarily changed how the Company estimates credit losses with the application of the expected credit loss model. The Company applied the standard's provisions as a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company has finalized its CECL implementation, recieved board approval of the final CECL model, completed modelling of off-balance sheet credit risks, completed formal governance and control documentation, and developed and presented revised disclosures for board approval. million. Equity was reduced by ASU 2018-14 Compensation- Disclosure Requirements for Defined Pension Plans Topic 715-20 This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other post-retirement benefit plans. January 1, 2021 Adoption of this ASU did not have a material impact on the Company's consolidated financial statements. The impact will be reflected in the Company’s annual 10-K disclosures of employee benefit plans. Standard Description Required Date Effect on financial statements Standards Adopted in 2021 ASU 2020-01, Investments—Equity Securities, Investments Equity Method and Joint Ventures, and Derivatives and Hedging In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which added Topic 321, Investments – Equity Securities, and made targeted improvements to address certain aspects of accounting for financial instruments. The amendments in this Update affect all entities that apply the guidance in Topics 321, 323, and 815 and (1) elect to apply the measurement alternative or (2) enter into a forward contract or purchase an option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting. December 15, 2020 The adoption had no material impact on the Company's consolidated financial statements. The Company’s equity method investments which primarily consist of community limited partnership investments are in compliance with the new guidance prospectively in 2021. Standard Description Required Date Effect on financial statements Standards Not Yet Adopted ASU 2020-04 Facilitation of the Effects of Reference Rate Reform, Topic 848, as amended in ASU 2021-01 This ASU provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate ("SOFR"). For instance, companies can (1) elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. A company that makes this election would not have to re-measure the contracts at the modification date or reassess a previous accounting determination. Companies can also (2) elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. Finally, companies can (3) make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. May be elected through December 31, 2022. The Company is currently evaluating all of its contracts, hedging relationships and other transactions that will be effected by reference rates are being discontinued. The following elections have been made in regards to our cash flow hedges as outlined on the next page. Rate Reform Elections Adherence to ISDA Fallback Protocol The ISDA 2020 IBOR Fallbacks Protocol (the “ISDA Fallback Protocol”) was made available for adherence on October 23, 2020 with an effective date of January 25, 2021. Once adhered to by both counterparties in a bilateral relationship and the effective date is reached, the ISDA Fallback Protocol represents a change to the contractual terms of derivatives governed by each respective ISDA agreement between the Company and a derivative counterparty. The change relates to reference rate reform and represents the potential for addition of or changes to contractual terms and was developed by a private-sector working group convened by a regulator as referenced in 848-20-15-5(g). For all of the Company’s interest rate swaps that meet the scope requirements of 848-10-15-3 and 848-10-15-3A and for which the Company adhered to the ISDA Fallback Protocol, the Company makes the following elections: • Modification related elections • Option to not reassess a previous accounting determination (paragraph 848-20-35-4) • Hedge accounting related modifications • Option to not dedesignate a hedging relationship due to a change in a critical term (paragraph 848-30-25-3) • Option to change the contractual terms of a hedging instrument, hedged item, or forecasted transaction and to not dedesignate a hedging relationship (paragraph 848-30-25-5) Cash flow hedges The Company amends the hedge documentation, without dedesignating and redesignating, for all outstanding cash flow hedging relationships for the following elections: • Probability of forecasted transactions: The Company elects the expedient in ASC 848-50-25-2 to assert probability of the hedged interest payments/receipts regardless of any expected modification in terms related to reference rate reform. • Assessment of effectiveness: In accordance with ASC 848-30-25-4, ASC 848-30-25-8, and ASC 848-50-35-1 through 35-24 the Company has the option to change the method of assessing effectiveness upon a change in the critical terms of the derivative or the hedged transactions and upon the end of relief under ASC 848. At this time the Company elects to continue the method of assessing effectiveness as documented in the original hedge documentation and elects to apply the expedient in ASC 848-50-35-17 so that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. For new hedging relationships designated subsequent to the date of this memorandum, the Company elects to apply the expedient in ASC 848-50-25-11 to assume that the reference rate will not be replaced for the remainder of the hedging relationship. New hedging activity The Company makes the same elections for each hedging relationship designated subsequent to March 31, 2021. Any hedging relationship-specific elections beyond the elections noted above will be documented in the respective inception hedge documentation. Subsequent election of optional expedients and exceptions after the March 31, 2021 will be documented in accordance with the elections being made here. |
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE | 6 Months Ended |
Jun. 30, 2021 | |
SECURITIES AVAILABLE FOR SALE | |
SECURITIES AVAILABLE FOR SALE | NOTE 2. SECURITIES AVAILABLE FOR SALE The following is a summary of securities available for sale: Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value June 30, 2021 Mortgage-backed securities: US Government-sponsored enterprises $ 196,476 $ 4,001 $ (2,116) $ 198,361 US Government agency 64,693 1,853 (203) 66,343 Private label 73,428 195 (88) 73,535 Obligations of states and political subdivisions thereof 184,229 4,196 (272) 188,153 Corporate bonds 93,582 2,735 (860) 95,457 Total securities available for sale $ 612,408 $ 12,980 $ (3,539) $ 621,849 Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value December 31, 2020 Mortgage-backed securities: US Government-sponsored enterprises $ 206,834 $ 6,018 $ (462) $ 212,390 US Government agency 82,878 2,870 (116) 85,632 Private label 19,810 40 (141) 19,709 Obligations of states and political subdivisions thereof 164,766 4,244 (6) 169,004 Corporate bonds 97,689 1,465 (843) 98,311 Total securities available for sale $ 571,977 $ 14,637 $ (1,568) $ 585,046 Credit Quality Information The Company monitors the credit quality of available for sale debt securities through credit ratings from various rating agencies and substantial price changes. Credit ratings express opinions about the credit quality of a security and are utilized by the Company to make informed decisions. Securities are triggered for further review in the quarter if the security has significant fluctuations in ratings, drops below investment grade, or significant pricing changes. For securities without credit ratings, the Company utilizes other financial information indicating the financial health of the underlying municipality, agency, or organization associated with the underlying security. As of June 30, 2021 the Company carried no allowance on available for sale debt securities in accordance with ASU 2016-13. The amortized cost and estimated fair value of available for sale securities segregated by contractual maturity at June 30, 2021 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable. Available for sale (in thousands) Amortized Cost Fair Value Within 1 year $ 6,765 $ 6,869 Over 1 year to 5 years 21,738 21,904 Over 5 years to 10 years 68,136 67,171 Over 10 years 181,172 187,666 Total bonds and obligations 277,811 283,610 Mortgage-backed securities 334,597 338,239 Total securities available for sale $ 612,408 $ 621,849 The following table presents the gains and losses from the sale of AFS securities for the periods presented: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2021 2020 2021 2020 Gross gains on sales of available for sale securities $ 50 $ 1,362 $ 50 $ 1,508 Gross losses on sales of available for sale securities — (11) — (22) Net gains on sale of available for sale securities $ 50 $ 1,351 $ 50 $ 1,486 Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value June 30, 2021 Mortgage-backed securities: US Government-sponsored enterprises $ 1,879 $ 91,739 $ 237 $ 3,743 $ 2,116 $ 95,482 US Government agency 189 13,512 14 3,190 203 16,702 Private label 83 51,718 5 19 88 51,737 Obligations of states and political subdivisions thereof 272 35,808 — — 272 35,808 Corporate bonds 16 6,984 844 16,406 860 23,390 Total securities available for sale $ 2,439 $ 199,761 $ 1,100 $ 23,358 $ 3,539 $ 223,119 Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value December 31, 2020 Mortgage-backed securities: US Government-sponsored enterprises $ 209 $ 40,285 $ 253 $ 4,323 $ 462 $ 44,608 US Government agency 45 6,776 71 3,297 116 10,073 Private label — — 141 19,514 141 19,514 Obligations of states and political subdivisions thereof 6 5,577 — — 6 5,577 Corporate bonds 555 21,774 288 11,712 843 33,486 Total securities available for sale $ 815 $ 74,412 $ 753 $ 38,846 $ 1,568 $ 113,258 The Company expects to recover its amortized cost basis on all securities in its AFS portfolio. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of June 30, 2021, prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover. The following summarizes, by investment security type, the impact of securities in an unrealized loss position for greater than 12 months at June 30, 2021: US Government-sponsored enterprises 44 out of the total 546 securities in the Company’s portfolios of AFS US Government-sponsored enterprises were in unrealized loss positions. Aggregate unrealized losses represented 1.08% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association and Federal Home Loan Mortgage Corporation guarantee the contractual cash flows of all of the Company’s US Government-sponsored enterprises. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. US Government agency 13 out of the total 157 securities in the Company’s portfolios of AFS US Government agency securities were in unrealized loss positions. Aggregate unrealized losses represented 0.31% of the amortized cost of securities in unrealized loss positions. The Government National Mortgage Association guarantees the contractual cash flows of all of the Company’s US Government agency securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. Private label 17 of the total 33 securities in the Company’s portfolio of AFS private label mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 0.12% of the amortized cost of securities in unrealized loss positions. Based upon the expectation that the Company will receive all of the future contractual cash flows related to the amortized cost on these securities, the Company does not consider there to be any additional other-than-temporary impairment with respect to these securities. Obligations of states and political subdivisions thereof 9 of the total 140 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.15% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for the risk. There were no material underlying credit downgrades during the quarter. All securities are performing. Corporate bonds 6 out of the total 31 securities in the Company’s portfolio of AFS corporate bonds were in an unrealized loss position. The aggregate unrealized loss represents 0.92% of the amortized cost of bonds in unrealized loss positions. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities. The most recent review includes all bond issuers and their current credit ratings, financial performance and capitalization. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 6 Months Ended |
Jun. 30, 2021 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES Upon adoption of ASC 326 or CECL, at January 1, 2021, the Company evaluates its risk characteristics of loans based on regulatory call report code with segmentation based on the underlying collateral for certain loan types. Prior to the adoption of ASC 326, under the incurred loss model, the Company evaluated its risk characteristics of loans based on purpose of the loans. The following is a summary of total loans by regulatory call report code segmentation based on underlying collateral for certain loan types: June 30, December 31, (in thousands) 2021 2020 Commercial construction $ 161,192 $ 117,882 Commercial real estate owner occupied 233,825 219,217 Commercial real estate non-owner occupied 713,889 716,776 Tax exempt 44,079 47,862 Commercial and industrial 370,074 355,684 Residential real estate 891,806 995,216 Home equity 90,440 100,096 Consumer other 10,255 10,152 Total loans 2,515,560 2,562,885 Allowance for credit losses 22,815 19,082 Net loans $ 2,492,745 $ 2,543,803 Total unamortized net costs and premiums included in loan totals were as follows: June 30, December 31, (in thousands) 2021 2020 Unamortized net loan origination costs $ 3,336 $ 5,157 Unamortized net premium on purchased loans (77) (85) Total unamortized net costs and premiums $ 3,259 $ 5,072 The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote. As of June 30, 2021 and December 31, 2020, accrued interest receivable for loans totaled $12.1 million and $11.4 million, respectively, and is included in the “other assets” line item on the Company’s consolidated balance sheets. The CARES Act and subsequent legislation established the Payroll Protection Program (PPP), administered directly by the Small Business Administration (SBA). The Company has participated in both 2020 and 2021 rounds of funding. As of June 30, 2021 and December 31, 2020, the Company had 1,250 and 746 PPP loans outstanding, with an outstanding principal balance of $65.9 million and $53.8 million, respectively. The increase reflects the 2021 round of funding of 1,233 PPP loans with and outstanding principal balance of $62.7 million. The PPP loans are fully guaranteed by the SBA and may be eligible for forgiveness by the SBA to the extent that the proceeds are used to cover eligible costs. PPP loans are included in the commercial and industrial portfolio segment. Characteristics of each loan portfolio segment are as follows: Commercial construction Commercial real estate owner occupied and non-owner occupied Tax Exempt Commercial and industrial loans Residential real estate Home equity - Consumer other Allowance for Credit Losses The Allowance for Credit Losses (ACL) is comprised of the allowance for loan losses and the allowance for unfunded commitments which is accounted for as a separate liability in other liabilities on the balance sheet. The level of the ACL represents management’s estimate of expected credit losses over the expected life of the loans at the balance sheet date. Upon adoption of CECL on January 1, 2021, the Company replaced the incurred loss impairment model that recognizes losses when it becomes probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off. The ACL is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, generally larger non-accruing commercial loans and TDRs. The Company’s activity in the allowance for credit losses for the periods ended are as follows: Three Months Ended June 30, 2021 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 1,792 $ — $ — $ 580 $ 2,372 Commercial real estate owner occupied 3,352 (108) 2 (694) 2,552 Commercial real estate non-owner occupied 5,902 — — (298) 5,604 Tax exempt 94 — — (3) 91 Commercial and industrial 5,040 (20) 13 192 5,225 Residential real estate 6,569 (21) 109 (588) 6,069 Home equity 823 (32) 36 (5) 822 Consumer other 81 (58) 6 51 80 Total $ 23,653 $ (239) $ 166 $ (765) $ 22,815 Six Months Ended June 30, 2021 Balance at Beginning of Impact of ASC Balance at (in thousands) Period 326 Charge Offs Recoveries Provision End of Period Commercial construction $ 824 $ 1,196 $ — $ 18 $ 334 $ 2,372 Commercial real estate owner occupied 1,783 708 (261) 2 320 2,552 Commercial real estate non-owner occupied 7,864 (2,008) — 4 (256) 5,604 Tax exempt 58 40 — — (7) 91 Commercial and industrial 3,137 2,996 (20) 14 (902) 5,225 Residential real estate 5,010 1,732 (61) 122 (734) 6,069 Home equity 285 603 (54) 47 (59) 822 Consumer other 121 (39) (59) 7 50 80 Total $ 19,082 $ 5,228 $ (455) $ 214 $ (1,254) $ 22,815 Three Months Ended June 30, 2020 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 395 $ — $ — $ 137 $ 532 Commercial real estate owner occupied 1,486 — — 38 1,524 Commercial real estate non-owner occupied 5,314 — 71 541 5,926 Tax exempt 57 — — 7 64 Commercial and industrial 3,323 (160) 5 (112) 3,056 Residential real estate 4,291 (20) — 720 4,991 Home equity 328 — — (10) 318 Consumer other 103 (40) 2 33 98 Total $ 15,297 $ (220) $ 78 $ 1,354 $ 16,509 Six Months Ended June 30, 2020 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 317 $ — $ — $ 215 $ 532 Commercial real estate owner occupied 2,368 — — (844) 1,524 Commercial real estate non-owner occupied 4,695 (825) 50 2,006 5,926 Tax exempt 67 — — (3) 64 Commercial and industrial 3,262 (375) 50 119 3,056 Residential real estate 4,213 (31) 10 799 4,991 Home equity 320 — — (2) 318 Consumer other 111 (200) 12 175 98 Total $ 15,353 $ (1,431) $ 122 $ 2,465 $ 16,509 Unfunded Commitments The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (other liabilities on the consolidated balance sheet), with adjustments to the reserve recognized in other non-interest expense in the consolidated statement of operations. The Company’s activity in the allowance for credit losses on unfunded commitments for the periods ended was as follows: (in thousands) Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Begininng Balance $ 1,819 $ 359 Impact of CECL adoption — 1,616 Provision for credit losses 102 (156) Ending Balance $ 1,921 $ 1,921 (in thousands) Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Begininng Balance $ 359 $ 314 Provision for credit losses (40) 5 Ending Balance $ 319 $ 319 Loan Origination/Risk Management: Credit Quality Indicators: The following are the definitions of the Company’s credit quality indicators: Pass: Special Mention: Substandard: Doubtful: Loss: The following tables present the Company’s loans by year of origination, loan segmentation and risk indicator as of June 30, 2021: (in thousands) 2021 2020 2019 2018 2017 Prior Total Commercial construction Risk rating: Pass $ 12,778 $ 68,262 $ 53,760 $ 26,392 $ — $ — $ 161,192 Special mention — — — — — — — Substandard — — — — — — — Total $ 12,778 $ 68,262 $ 53,760 $ 26,392 $ — $ — $ 161,192 Commercial real estate owner occupied Risk rating: Pass $ 4,866 $ 15,555 $ 35,811 $ 30,353 $ 20,769 $ 112,798 $ 220,152 Special mention — — 773 — — 1,618 2,391 Substandard — — — 261 261 10,397 10,919 Doubtful — — — 188 — 175 363 Total $ 4,866 $ 15,555 $ 36,584 $ 30,802 $ 21,030 $ 124,988 $ 233,825 Commercial real estate non-owner occupied Risk rating: Pass $ 65,282 $ 148,198 $ 98,572 $ 41,971 $ 150,092 $ 204,405 $ 708,520 Special mention — — — — — 1,472 1,472 Substandard — — — 150 150 3,408 3,708 Doubtful — — — — — 189 189 Total $ 65,282 $ 148,198 $ 98,572 $ 42,121 $ 150,242 $ 209,474 $ 713,889 Tax exempt Risk rating: Pass $ 833 $ 338 $ 1,125 $ 14,790 $ 5,463 $ 21,530 $ 44,079 Special mention — — — — — — — Substandard — — — — — — — Total $ 833 $ 338 $ 1,125 $ 14,790 $ 5,463 $ 21,530 $ 44,079 Commercial and industrial Risk rating: Pass $ 114,688 $ 59,804 $ 38,907 $ 17,769 $ 66,905 $ 51,081 $ 349,154 Special mention 345 259 806 702 215 1,105 3,432 Substandard 98 — 583 15,010 57 1,252 17,000 Doubtful — — — — 129 359 488 Total $ 115,131 $ 60,063 $ 40,296 $ 33,481 $ 67,306 $ 53,797 $ 370,074 (continued) (in thousands) 2021 2020 2019 2018 2017 Prior Total Residential real estate Performing $ 62,479 $ 130,710 $ 105,016 $ 78,567 $ 77,987 $ 428,092 $ 882,851 Nonperforming — — — 580 271 8,104 8,955 Total $ 62,479 $ 130,710 $ 105,016 $ 79,147 $ 78,258 $ 436,196 $ 891,806 Home equity Performing $ 5,888 $ 10,270 $ 10,912 $ 8,305 $ 7,203 $ 46,618 $ 89,196 Nonperforming — — — — — 1,244 1,244 Total $ 5,888 $ 10,270 $ 10,912 $ 8,305 $ 7,203 $ 47,862 $ 90,440 Consumer other Performing $ 2,673 $ 2,388 $ 1,265 $ 896 $ 369 $ 2,657 $ 10,248 Nonperforming — — — — — 7 7 Total $ 2,673 $ 2,388 $ 1,265 $ 896 $ 369 $ 2,664 $ 10,255 Total Loans $ 269,930 $ 435,784 $ 347,530 $ 235,934 $ 329,871 $ 896,511 $ 2,515,560 The following table summarizes credit risk exposure indicators by portfolio segment, under the incurred loss methodology, as of the period indicated: December 31, 2020 Commercial Commercial Residential Real Estate and Industrial Real Estate Consumer Total Grade: Pass $ 1,053,773 $ 422,016 $ — $ — $ 1,475,789 Performing — — 914,749 112,190 1,026,939 Special mention 6,075 2,771 — — 8,846 Substandard 22,267 15,180 — — 37,447 Doubtful 2,265 1,100 — — 3,365 Loss 1 2 — — 3 Non-performing — — 9,142 1,354 10,496 Total $ 1,084,381 $ 441,069 $ 923,891 $ 113,544 $ 2,562,885 Past Dues The following is a summary of past due loans for the periods ended: June 30, 2021 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ — $ — $ — $ — $ 161,192 $ 161,192 Commercial real estate owner occupied 573 8 71 652 233,173 233,825 Commercial real estate non-owner occupied 442 148 445 1,035 712,854 713,889 Tax exempt — — — — 44,079 44,079 Commercial and industrial — 47 205 252 369,822 370,074 Residential real estate 300 926 3,891 5,117 886,689 891,806 Home equity 475 259 151 885 89,555 90,440 Consumer other 21 1 — 22 10,233 10,255 Total $ 1,811 $ 1,389 $ 4,763 $ 7,963 $ 2,507,597 $ 2,515,560 December 31, 2020 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ 74 $ — $ 1 $ 75 $ 117,807 $ 117,882 Commercial real estate owner occupied 1,309 464 438 2,211 217,006 219,217 Commercial real estate non-owner occupied 503 674 624 1,801 714,975 716,776 Tax exempt — — — — 47,862 47,862 Commercial and industrial 161 — 193 354 355,330 355,684 Residential real estate 9,178 2,511 3,200 14,889 980,327 995,216 Home equity 1,062 614 375 2,051 98,045 100,096 Consumer other 20 — 2 22 10,130 10,152 Total $ 12,307 $ 4,263 $ 4,833 $ 21,403 $ 2,541,482 $ 2,562,885 Non-Accrual Loans The following is a summary of non-accrual loans for the periods ended: June 30, 2021 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ — $ — $ — Commercial real estate owner occupied 1,316 917 — Commercial real estate non-owner occupied 1,105 845 — Tax exempt — — — Commercial and industrial 952 583 — Residential real estate 8,955 3,594 449 Home equity 1,244 326 24 Consumer other 7 — — Total $ 13,579 $ 6,265 $ 473 December 31, 2020 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ 258 $ — $ — Commercial real estate owner occupied 2,400 929 — Commercial real estate non-owner occupied 383 118 — Tax exempt — — — Commercial and industrial 1,223 1,065 — Residential real estate 5,883 4,948 — Home equity 1,345 1,346 267 Consumer other 58 58 — Total $ 11,550 $ 8,464 $ 267 Collateral Dependent Loans Loans that do not share risk characteristics are evaluated on an individual basis. For loans that are individually evaluated and collateral dependent, financial loans where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. The following table presents the amortized cost basis of collateral-dependent loans by loan portfolio segment for the periods ended. June 30, 2021 December 31, 2020 (in thousands) Real Estate Other Real Estate Other Commercial construction $ — $ — $ 259 $ — Commercial real estate owner occupied 1,316 — 3,441 — Commercial real estate non-owner occupied 1,105 — 383 — Tax exempt — — — — Commercial and industrial 551 401 625 607 Residential real estate 8,955 — 7,432 — Home equity 1,244 — 1,493 — Consumer other 7 — 60 — Total $ 13,178 $ 401 $ 13,693 $ 607 Pre Adoption of ASC 326 – Impaired Loans For periods prior to the adoption of CECL, loans were considered impaired when, based on current information and events, it was probable the Company would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. The Company identified loan relationships having aggregate balances in excess of $150 thousand with potential credit weaknesses. Such loan relationships were identified primarily through the Company's analysis of internal loan evaluations, past due loan reports, TDRs and loans adversely classified. Each loan so identified was then individually evaluated for impairment. Substantially all impaired loans have historically been collateral dependent, meaning repayment of the loan was expected or was considered to be provided solely from the sale of the loan's underlying collateral. For such loans, the Company measured impairment based on the fair value of the loan's collateral, which is generally determined utilizing current appraisals. A specific reserve was established in an amount equal to the excess, if any, of the recorded investment in each impaired loan over the fair value of its underlying collateral, less estimated costs to sell. The Company's policy was to re-evaluate the fair value of collateral dependent loans at least every twelve months unless there is a known deterioration in the collateral's value, in which case a new appraisal is obtained. The tables reflects the activity associated with impaired loans in 2020 prior to the adoption of CECL. December 31, 2020 Recorded Unpaid Principal Related Average Recorded Interest (in thousands) Investment Balance Allowance Investment Income Recognized With no related allowance: Construction and land development $ — $ — $ — $ — $ — Other commercial real estate 2,001 2,047 — 1,610 — Commercial 1,095 1,254 — 1,140 4 Agricultural 361 150 — 114 2 Tax exempt loans — — — — — Residential real estate 2,745 3,165 — 1,077 17 Home equity — — — — — Other consumer — — — — — With an allowance recorded: Construction and land development 258 258 205 203 — Other commercial real estate 1,963 2,108 1,038 1,973 17 Commercial 282 289 164 73 — Agricultural — — — — — Tax exempt loans — — — — — Residential real estate 887 944 106 1,865 37 Home equity 13 13 — 12 1 Other consumer — — — — — Total Commercial real estate 4,222 4,413 1,243 3,786 17 Commercial and industrial 1,738 1,693 164 1,327 6 Residential real estate 3,632 4,109 106 2,942 54 Consumer 13 13 — 12 1 Total impaired loans $ 9,605 $ 10,228 $ 1,513 $ 8,067 $ 78 Troubled Debt Restructuring Loans The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring ("TDR"), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as non-performing at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. TDRs are evaluated individually for impairment and may result in a specific allowance amount allocated to an individual loan. The following tables include the recorded investment and number of modifications identified during the periods ended. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. Modifications may include adjustments to interest rates, payment amounts, extensions of maturity, court ordered concessions or other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. There were no modifications qualifying as TDR’s for the three and six months ended June 30, 2021 and no modifications qualifying as TDR’s for the three months ended June 30, 2020. Six Months Ended June 30, 2020 Pre-Modification Post-Modification Number of Outstanding Outstanding (in thousands) Modifications Balance Balance Reserve Commercial construction — $ — $ — $ — Commercial real estate owner occupied — — — — Commercial real estate non-owner occupied 1 54 252 — Tax exempt — — — — Commercial and industrial 3 41 196 — Residential real estate — — — — Home equity 1 26 25 — Consumer other 1 9 9 — Total 6 $ 130 $ 482 $ — The following tables summarize the types of loan concessions made for the periods presented: June 30, 2021 June 30, 2020 Post-Modification Post-Modification Number of Outstanding Number of Outstanding (in thousands) Modifications Balance Modifications Balance Interest rate, forbearance and maturity concession — $ — 4 $ 448 Forbearance and interest only payments — — 1 25 Maturity concession — — 1 9 Total — $ — 6 $ 482 For the three months ended June 30, 2021 there were no loans that were restructured that had subsequently defaulted during the period. The evaluation of certain loans individually for specific impairment includes loans that were previously classified as TDRs or continue to be classified as TDRs. Modifications in response to COVID-19 The Company began offering short-term loan modifications to assist borrowers during the COVID-19 national emergency. The CARES Act along with a joint agency statement issued by banking agencies, provides that short-term modifications made in response to COVID-19 do not need to be accounted for as a TDR. Accordingly, the Company does not account for such loan modifications as TDRs. See Note 1 - Basis of Presentation Foreclosure Residential mortgage loans collateralized by real estate that are in the process of foreclosure as of June 30, 2021 and December 31, 2020 totaled $1.1 million and $917 thousand, respectively. Mortgage Banking The Company had identified and designated loans with an unpaid principal balance of $7.9 million and $24.0 million as residential loans held for sale at June 30, 2021 and December 31, 2020, respectively. The interest rate exposure on loans held for sale are mitigated through forward delivery commitments with certain approved secondary market investors. Forward delivery commitments were $14.6 million, and $50.6 million, respectively. Refer to Note 8 for further discussion of the Company's forward delivery commitments. For the periods ended June 30, 2021 and December 31, 2020, the Company sold $56.1 million and $70.4 million, respectively, of residential mortgage loans on the secondary market, which resulted in a net gain on sale of loans (net of costs, including direct and indirect origination costs) of $2.9 million and $2.2 million, respectively. The Company sells residential loans on the secondary market with the Company primarily retaining the servicing of these loans. Servicing sold loans helps to maintain customer relationships and the Company earns fees over the servicing period. Loans serviced for others are not included in the accompanying consolidated balance sheets. The risks inherent in servicing assets relate primarily to level of prepayments that result from shifts in interest rates. The Company obtains third party valuations of its servicing assets portfolio quarterly, which assumptions are reflected in Fair Value disclosures. |
BORROWED FUNDS
BORROWED FUNDS | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | NOTE 4. BORROWED FUNDS Borrowed funds at June 30, 2021 and December 31, 2020 are summarized, as follows: June 30, 2021 December 31, 2020 Weighted Weighted (dollars in thousands) Carrying Value Average Rate Carrying Value Average Rate Short-term borrowings Advances from the FHLB $ 80,000 0.39 % $ 65,676 1.19 % Other borrowings 17,389 0.13 27,779 0.15 Total short-term borrowings 97,389 0.19 93,455 0.44 Long-term borrowings Advances from the FHLB 182,602 1.73 182,607 1.73 Subordinated borrowings 60,042 4.41 59,961 4.34 Total long-term borrowings 242,644 2.39 242,568 2.37 Total $ 340,033 1.13 % $ 336,023 1.41 % Short-term debt includes Federal Home Loan Bank of Boston (“FHLB”) advances with a maturity of less than one year. The Company also maintains a $1.0 million secured line of credit with the FHLB that bears a daily adjustable rate calculated by the FHLB. There was no outstanding balance on the FHLB line of credit for the periods ended June 30, 2021 and December 31, 2020. The Company has the capacity to borrow funds on a secured basis utilizing the Borrower in Custody program and the Discount Window at the Federal Reserve Bank of Boston (the “FRB”). At June 30, 2021, the Company’s available secured line of credit at the FRB was $74.3 million. The Company has pledged certain loans and securities to the FRB to support this arrangement. There were no outstanding advances with the FRB for the periods ended June 30, 2021 December 31, 2020. The Company maintains, with a correspondent bank, an unused unsecured federal funds line of credit that has an aggregate overnight borrowing capacity of $50.0 million as of June 30, 2021 and December 31, 2020. There was no outstanding balance on the line of credit as of June 30, 2021 and December 31, 2020. Long-term FHLB advances consist of advances with a maturity of more than one year. The advances outstanding at June 30, 2021 include callable advances of $20.0 million and amortizing advances of $302 thousand. The advances outstanding at December 31, 2020 included $20.0 million of callable advances and $307 million of amortizing advances. All FHLB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally all residential first mortgage loans and certain securities. A summary of maturities of FHLB advances as of June 30, 2021 is, as follows: June 30, 2021 Weighted Average (in thousands, except rates) Amount Rate 2021 $ 80,000 0.39 % 2022 75,000 1.87 2023 80,000 1.77 2024 7,300 1.16 2025 20,000 1.21 2026 and thereafter 302 2.58 Total FHLB advances $ 262,602 1.32 % On November 26, 2019, the Company executed a Subordinated Note Purchase Agreement with an aggregate of $40.0 million of subordinated notes (the "Notes") to accredited investors. The Notes have a maturity date of December 1, 2029 and bear a fixed interest rate of 4.625% through December 1, 2024 payable semi-annually in arrears. From December 1, 2024 and thereafter the interest rate shall be reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 3.27%. The Company has the option beginning with the interest payment date of December 1, 2024, and on any scheduled payment date thereafter, to redeem the Notes, in whole or in part upon prior approval of the Federal Reserve. Netted with subordinated borrowings is amortized subordinated debt issuance costs of $578 thousand as of June 30, 2021 and issuance costs of $659 thousand net of amortization as of December 31, 2020. The Company also has $20.6 million in floating Junior Subordinated Deferrable Interest Debentures ("Debentures") issued by NHTB Capital Trust II ("Trust II") and NHTB Capital Trust III ("Trust III"), which are both Connecticut statutory trusts. The Debentures were issued on March 30, 2004, carry a variable interest rate of 3-month LIBOR plus 2.79%, and mature in 2034. The debt is callable by the Company at the time when any interest payment is made. Trust II and Trust III are considered variable interest entities for which the Company is not the primary beneficiary. Accordingly, Trust II and Trust III are not consolidated into the Company’s financial statements. |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
DEPOSITS | NOTE 5. DEPOSITS A summary of time deposits is, as follows: (in thousands) June 30, 2021 December 31, 2020 Time less than $100,000 $ 203,004 $ 325,646 Time $100,000 through $250,000 194,247 278,940 Time $250,000 or more 73,507 93,775 Total $ 470,758 $ 698,361 At June 30, 2021 and December 31, 2020, the scheduled maturities by year for time deposits are, as follows: (in thousands) June 30, 2021 December 31, 2020 Within 1 year $ 361,912 $ 574,007 Over 1 year to 2 years 58,910 61,584 Over 2 years to 3 years 32,910 41,145 Over 3 years to 4 years 10,074 12,875 Over 4 years to 5 years 6,870 8,728 Over 5 years 82 22 Total $ 470,758 $ 698,361 Included in time deposits are brokered deposits of $31.4 million and $193.7 million at June 30, 2021 and December 31, 2020, respectively. Also included in time deposits are reciprocal deposits of $185.0 million and $125.0 million at June 30, 2021 and December 31, 2020, respectively. |
CAPITAL RATIOS AND SHAREHOLDERS
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | NOTE 6. CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY The actual and required capital ratios are, as follows: Regulatory Regulatory June 30, Minimum to be December 31, Minimum to be 2021 "Well-Capitalized" 2020 "Well-Capitalized" Company (consolidated) Total capital to risk-weighted assets 13.95 % 10.50 % 13.56 % 10.50 % Common equity tier 1 capital to risk-weighted assets 10.72 7.00 10.49 7.00 Tier 1 capital to risk-weighted assets 11.51 8.50 11.28 8.50 Tier 1 capital to average assets 8.36 5.00 8.12 5.00 Bank Total capital to risk-weighted assets 13.78 % 10.50 % 13.27 % 10.50 % Common equity tier 1 capital to risk-weighted assets 12.86 7.00 12.52 7.00 Tier 1 capital to risk-weighted assets 12.86 8.50 12.52 8.50 Tier 1 capital to average assets 9.34 5.00 9.02 5.00 At each date shown, the Company and the Bank met the conditions to be classified as “well-capitalized” under the relevant regulatory framework. To be categorized as "well-capitalized," an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table above. The Company and the Bank are subject to the Basel III rule that requires the Company and the Bank to assess their Common equity tier 1 capital to risk-weighted assets and the Company and the Bank each exceed the minimum to be "well-capitalized." Effective January 1, 2019 all banking organizations must maintain a minimum Common equity tier 1 risk-based capital ratio of 7.0%, a minimum Tier 1 risk-based capital ratio of 8.5% and a minimum Total risk-based capital ratio of 10.5%. Accumulated other comprehensive income (loss) Components of accumulated other comprehensive income is, as follows: (in thousands) June 30, 2021 December 31, 2020 Accumulated other comprehensive income, before tax: Net unrealized gain on AFS securities $ 9,441 $ 13,069 Net unrealized gain on hedging derivatives 2,448 3,144 Net unrealized loss on post-retirement plans (1,850) (1,850) Income taxes related to items of accumulated other comprehensive income: Net unrealized gain on AFS securities (2,204) (3,046) Net unrealized gain on hedging derivatives (573) (733) Net unrealized loss on post-retirement plans 432 432 Accumulated other comprehensive income $ 7,694 $ 11,016 The following table presents the components of other comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020: (in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2021 Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ 3,607 $ (842) $ 2,765 Less: reclassification adjustment for gains (losses) realized in net income 50 (12) 38 Net unrealized gain on AFS securities 3,557 (830) 2,727 Net unrealized gain on hedging derivatives: Net unrealized gain arising during the period 1,963 (460) 1,503 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on cash flow hedging derivatives 1,963 (460) 1,503 Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on post-retirement plans — — — Other comprehensive income $ 5,520 $ (1,290) $ 4,230 Three Months Ended June 30, 2020 Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ 3,772 $ (891) $ 2,881 Less: reclassification adjustment for gains (losses) realized in net income 1,351 (322) 1,029 Net unrealized gain on AFS securities 2,421 (569) 1,852 Net unrealized gain on derivative hedgess: Net unrealized gain arising during the period 626 (147) 479 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on cash flow derivative hedges 626 (147) 479 Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on post-retirement plans — — — Other comprehensive income $ 3,047 $ (716) $ 2,331 (in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2021 Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ (3,578) $ 830 $ (2,748) Less: reclassification adjustment for gains (losses) realized in net income 50 (12) 38 Net unrealized loss on AFS securities (3,628) 842 (2,786) Net unrealized loss on derivative hedges: Net unrealized loss arising during the period (696) 160 (536) Less: reclassification adjustment for (losses) gains realized in net income — — — Net unrealized loss on derivative hedges (696) 160 (536) Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on post-retirement plans — — — Other comprehensive income $ (4,324) $ 1,002 $ (3,322) Six Months Ended June 30, 2020 Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ 9,148 $ (2,064) $ 7,084 Less: reclassification adjustment for gains realized in net income 1,486 (355) 1,131 Net unrealized gain on AFS securities 7,662 (1,709) 5,953 Net unrealized loss on cash flow hedging derivatives: Net unrealized loss arising during the period (1,639) 296 (1,343) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on cash flow hedging derivatives (1,639) 296 (1,343) Net unrealized gain on post-retirement plans: Net unrealized gain arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on post-retirement plans — — — Other comprehensive income $ 6,023 $ (1,413) $ 4,610 The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax impacts, for the three and six months ended June 30, 2021 and 2020: Net unrealized Net loss on Net unrealized gain effective cash loss on AFS flow hedging on pension (in thousands) Securities derivatives plans Total Three Months Ended June 30, 2021 Balance at beginning of period $ 4,510 $ 372 $ (1,418) $ 3,464 Other comprehensive gain before reclassifications 2,765 1,503 — 4,268 Less: amounts reclassified from accumulated other comprehensive income 38 — — 38 Total other comprehensive income 2,727 1,503 — 4,230 Balance at end of period $ 7,237 $ 1,875 $ (1,418) $ 7,694 Three Months Ended June 30, 2020 Balance at beginning of period $ 9,560 $ (2,213) $ (1,157) $ 6,190 Other comprehensive gain before reclassifications 2,881 479 — 3,360 Less: amounts reclassified from accumulated other comprehensive income 1,029 — — 1,029 Total other comprehensive income 1,852 479 — 2,331 Balance at end of period $ 11,412 $ (1,734) $ (1,157) $ 8,521 Six Months Ended June 30, 2021 Balance at beginning of period $ 10,023 $ 2,411 $ (1,418) $ 11,016 Other comprehensive loss before reclassifications (2,748) (536) — (3,284) Less: amounts reclassified from accumulated other comprehensive income 38 — — 38 Total other comprehensive loss (2,786) (536) — (3,322) Balance at end of period $ 7,237 $ 1,875 $ (1,418) $ 7,694 Six Months Ended June 30, 2020 Balance at beginning of period $ 5,459 $ (391) $ (1,157) $ 3,911 Other comprehensive gain (loss) before reclassifications 7,084 (1,343) — 5,741 Less: amounts reclassified from accumulated other comprehensive income 1,131 — — 1,131 Total other comprehensive income (loss) 5,953 (1,343) — 4,610 Less: amounts reclassified from accumulated other comprehensive income for ASU 2018-02 — — — — Balance at end of period $ 11,412 $ (1,734) $ (1,157) $ 8,521 The following tables presents the amounts reclassified out of each component of accumulated other comprehensive income for three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, Affected Line Item where (in thousands) 2021 2020 2021 2020 Net Income is Presented Net realized gains on AFS securities: Before tax (1) $ 50 $ 1,351 $ 50 $ 1,486 Non-interest income Tax effect (12) (322) (12) (355) Tax expense Total reclassifications for the period $ 38 $ 1,029 $ 38 $ 1,131 (a) Net realized gains before tax include $50 thousand realized gains for the three and six months ended June 30, 2021. Net realized gains before tax include gross realized gains $1.4 million and realized losses of $11 thousand for the three months ended June 30, 2020 and gross realized gains of $1.5 million and realized losses of $22 thousand for the six months ended June 30, 2020. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 7. EARNINGS PER SHARE The following table presents the calculation of earnings per share: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share and share data) 2021 2020 2021 2020 Net income $ 9,025 $ 8,481 $ 18,505 $ 16,202 Average number of basic common shares outstanding 14,965,398 15,423,997 14,949,564 15,500,033 Plus: dilutive effect of stock options and awards outstanding 76,427 17,281 76,130 22,960 Average number of diluted common shares outstanding (1) 15,041,825 15,441,278 15,025,694 15,522,993 Earnings per share: Basic $ 0.60 $ 0.55 $ 1.24 $ 1.05 Diluted $ 0.60 $ 0.55 $ 1.23 $ 1.04 (1) Average diluted shares outstanding are computed using the treasury stock method. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES The Company uses derivative instruments to minimize fluctuations in earnings and cash flows caused by interest rate volatility. The Company’s interest rate risk management strategy involves modifying the re-pricing characteristics of certain assets or liabilities so the changes in interest rates do not have a significant effect on net interest income. Thus, all of the Company's derivative contracts are considered to be interest rate contracts. The Company recognizes its derivative instruments on the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company designates whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). The Company formally documents relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in fair value of derivative instruments that are highly effective and qualify as cash flow hedges are recorded in other comprehensive income or loss. The Company offers derivative products in the form of interest rate swaps, to commercial loan customers to facilitate their risk management strategies. These instruments are executed through Master Netting Arrangements ("MNA") with financial institution counterparties or Risk Participation Agreements ("RPA") with commercial bank counterparties, for which the Company assumes a pro rata share of the credit exposure associated with a borrower's performance related to the derivative contract with the counterparty. The following tables present information about derivative assets and liabilities at June 30, 2021 and December 31, 2020: June 30, 2021 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale fundings $ 75,000 3.5 $ (1,386) Other liabilities Interest rate swap on variable rate loans 50,000 4.7 10 Other assets Total cash flow hedges 125,000 (1,376) Fair value hedges: Interest rate swap on securities 37,190 7.0 1,183 Other assets Total fair value hedges 37,190 1,183 Economic hedges: Forward sale commitments 14,635 0.1 (45) Other liabilities Customer Loan Swaps-MNA Counterparty 262,271 6.3 (10,845) Other liabilities Customer Loan Swaps-RPA Counterparty 119,285 7.4 (6,621) Other liabilities Customer Loan Swaps-Customer 381,556 6.6 17,466 Other assets Total economic hedges 777,747 (45) Non-hedging derivatives: Interest rate lock commitments 10,464 0.1 25 Other assets Total non-hedging derivatives 10,464 25 Total $ 950,401 $ (213) December 31, 2020 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale fundings $ 75,000 4.0 $ (2,664) Other liabilities Total cash flow hedges 75,000 (2,664) Fair value hedges: Interest rate swap on securities 37,190 8.6 2,789 Other assets Total fair value hedges 37,190 2,789 Economic hedges: Forward sale commitments 50,629 0.2 (95) Other liabilities Customer Loan Swaps-MNA Counterparty 235,947 6.8 (15,938) Other liabilities Customer Loan Swaps-RPA Counterparty 119,285 7.9 (9,957) Other liabilities Customer Loan Swaps-Customer 355,232 7.1 25,895 Other assets Total economic hedges 761,093 (95) Non-hedging derivatives: Interest rate lock commitments 3,320 0.1 22 Other assets Total non-hedging derivatives 3,320 22 Total $ 876,603 $ 52 As of June 30, 2021 and December 31, 2020, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: Cumulative Amount of Fair Location of Hedged Item on Carrying Amount of Hedged Value Hedging Adjustment in Balance Sheet Assets Carrying Amount June 30, 2021 Interest rate swap on securities Securities Available for Sale $ 39,831 $ 2,641 December 31, 2020 Interest rate swap on securities Securities Available for Sale $ 40,209 $ 3,019 Information about derivative assets and liabilities for the three and six months ended June 30, 2021 and 2020, follows: Three Months Ended June 30, 2021 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (1,056) Interest expense $ — Interest expense $ (196) Interest rate swap on variable rate loans 221 Interest income — Interest income 89 Total cash flow hedges (835) — (107) Fair value hedges: Interest rate swap on securities 1,288 Interest income — Interest income (140) Total fair value hedges 1,288 — (140) Economic hedges: Forward commitments — Other income — Other income 40 Total economic hedges — — 40 Non-hedging derivatives: Interest rate lock commitments — Other income — Other income (20) Total non-hedging derivatives — — (20) Total $ 453 $ — $ (227) Six Months Ended June 30, 2021 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (981) Interest expense $ — Interest expense $ (384) Interest rate swap on variable rate loans (1,246) Interest income — Interest income 97 Total cash flow hedges (2,227) — (287) Fair value hedges: Interest rate swap on securities (1,525) Interest income — Interest income (276) Total fair value hedges (1,525) — (276) Economic hedges: Forward commitments — Other income — Other income 50 Total economic hedges — — 50 Non-hedging derivatives: Interest rate lock commitments — Other income — Other income 4 Total non-hedging derivatives — — 4 Total $ (3,752) $ — $ (509) The Company expects approximately $323 thousand of losses (pre-tax) related to the Company’s cash flow hedges to be reclassified to earnings from AOCI over the next 12 months. This reclassification is due to anticipated payments that will be made and/or received on the swaps based upon the forward curve as of June 30, 2021. Three Months Ended June 30, 2020 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (644) Interest expense $ — Interest expense $ 217 Total cash flow hedges (644) — 217 Fair value hedges: Interest rate swap on securities 1,122 Interest income — Interest income (23) Total economic hedges 1,122 — (23) Economic hedges: Forward commitments — Other income — Other income (54) Total economic hedges — — (54) Non-hedging derivatives: Interest rate lock commitments — Other income — Other Income (30) Total non-hedging derivatives — — (30) Total $ 478 $ — $ 110 Six Months Ended June 30, 2020 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (4,588) Interest expense $ — Interest expense $ 216 Total cash flow hedges (4,588) — 216 Fair value hedges: Interest rate swap on securities 3,335 Interest income — Interest income (41) Total economic hedges 3,335 — (41) Economic hedges: Forward commitments — Other income — Other income (43) Total economic hedges — — (43) Non-hedging derivatives: Interest rate lock commitments — Other income — Other Income 4 Total non-hedging derivatives — — 4 Total $ (1,253) $ — $ 136 The effect of cash flow hedging and fair value accounting on the consolidated statements of income for the three months ended June 30, 2021 and June 30, 2020: Three Months Ended June 30, 2021 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and exepense line items presented in the consolidated statements of income $ 23,191 $ 3,992 $ 2,603 $ 1,826 $ 9,505 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — (196) — Interest rate swap on variable rate loans 89 — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — (140) — — — Three Months Ended June 30, 2020 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and exepense line items presented in the consolidated statements of income $ 26,493 $ 4,942 $ 4,548 $ 2,297 $ 9,710 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — 217 — Interest rate swap on variable rate loans — — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — (23) — — — The effect of cash flow hedging and fair value accounting on the consolidated statements of income for the six months ended June 30, 2021 and June 30, 2020: Six Months Ended June 30, 2021 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and exepense line items presented in the consolidated statements of income $ 47,396 7,971 $ 5,554 3,637 $ 19,753 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — (384) — Interest rate swap on variable rate loans 97 — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — (276) — — — Six Months Ended June 30, 2020 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and exepense line items presented in the consolidated statements of income $ 54,480 10,449 $ 10,568 5,208 $ 18,131 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — 216 — Interest rate swap on variable rate loans — — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — (41) — — — Cash flow hedges Interest rate swaps on wholesale funding As of June 30, 2021 the Company has two interest rate swaps on wholesale borrowings (the "SWAPS") to limit its exposure to rising interest rates over a five year term on 3-month FHLB borrowings or brokered certificates, or a combination thereof at each maturity date. The first of the two agreements were entered in November 2019 with a $50.0 million notional amount and pays a fixed interest rate of 1.53%. A second agreement was entered on April 2020 with a $25.0 million notional amount and pays a fixed rate of 0.59%. The financial institution counterparty pays the Company interest on the three-month LIBOR rate. The Company designated the swaps as a cash flow hedge. Interest rate swap on variable rate loans In March 2021, the Company entered into a contract with a counterparty to manage interest rate risk associated with its variable rate loans. The instrument is specifically designed to hedge the risk of changes in its cash flows from interest receipts attributable to changes in a contractually specified interest rate, on an amount of the Company’s variable rate loan assets equal to $50 million. The interest rate swap will effectively fix the Company’s interest rate on $50 million of 1 month USD-LIBOR-BBA (or LIBOR less two days) based loan assets at 0.806% plus the credit spread on the loans that reprices on weighted average basis. The Company designated the swap as a cash flow hedge. Fair value hedges Interest rate swap on securities For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The Company utilizes interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of fixed rate callable securities available-for-sale. The hedging strategy on securities converts the fixed interest rates to LIBOR-based variable interest rates. These derivatives are designated as partial term hedges of selected cash flows covering specified periods of time prior to the call dates of the hedged securities. During 2019, the Company entered into eight swap transactions with a notional amount of $37.2 million designated as fair value hedges. These derivatives are intended to protect against the effects of changing interest rates on the fair values of fixed rate securities. The fixed rates on the transactions have a weighted average of 1.696%. Economic hedges Forward sale commitments The Company utilizes forward sale commitments on residential mortgage loans to hedge interest rate risk and the associated effects on the fair value of interest rate lock commitments and loans originated for sale. The forward sale commitments are accounted for as derivatives. The Company typically uses a combination of best efforts and mandatory delivery contracts. The contracts are loan sale agreements where the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. Generally, the Company may enter into contracts just prior to the loan closing with a customer. Customer loan derivatives The Company enters into customer loan derivatives to facilitate the risk management strategies for commercial banking customers. The Company mitigates this risk by entering into equal and offsetting loan swap agreements with highly rated third-party financial institutions. The loan swap agreements are free standing derivatives and are recorded at fair value in the Company's consolidated balance sheet. The Company is party to master netting arrangements with its financial institutional counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all loan swap agreements, as well as collateral or cash funds, in the event of default on, or termination of, any one contract. Collateral is provided by cash or securities received or posted by the counterparty with net liability positions, respectively, in accordance with contract thresholds. Currently, the Company has posted cash of $14.7 million with counterparties. Gross Amounts Offset in the Consolidated Balance Sheet Derivative Cash Collateral (in thousands) Liabilities Derivative Assets Pledged Net Amount As of June 30, 2021 Customer Loan Derivatives: MNA counterparty $ (10,845) $ 10,845 $ 14,700 $ 14,700 RPA counterparty (6,621) 6,621 — — Total $ (17,466) $ 17,466 $ 14,700 $ 14,700 Gross Amounts Offset in the Consolidated Balance Sheet Derivative Cash Collateral (in thousands) Liabilities Derivative Assets Pledged Net Amount As of December 31, 2020 Customer Loan Derivatives: MNA counterparty $ (15,938) $ 15,938 $ 23,450 $ 23,450 RPA counterparty (9,957) 9,957 — — Total $ (25,895) $ 25,895 $ 23,450 $ 23,450 Non-hedging derivatives Interest rate lock commitments The Company enters into interest rate lock commitments (“IRLCs”) for residential mortgage loans, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs relate to the origination of residential mortgage loans that are held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free standing derivatives which are carried at fair value with changes recorded in non-interest income in the Company’s Consolidated Statements of Income. Changes in the fair value of IRLCs subsequent to inception are based on; (i) changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and (ii) changes in the probability when the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 9. FAIR VALUE MEASUREMENTS A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities that are carried at fair value. Recurring Fair Value Measurements The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2021 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Mortgage-backed securities: US Government-sponsored enterprises $ — $ 198,361 $ — $ 198,361 US Government agency — 66,343 — 66,343 Private label — 73,535 — 73,535 Obligations of states and political subdivisions thereof — 188,153 — 188,153 Corporate bonds — 95,457 — 95,457 Derivative assets — 18,659 25 18,684 Derivative liabilities — (18,852) (45) (18,897) December 31, 2020 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Mortgage-backed securities: US Government-sponsored enterprises $ — $ 212,390 $ — $ 212,390 US Government agency — 85,632 — 85,632 Private label — 19,709 — 19,709 Obligations of states and political subdivisions thereof — 169,004 — 169,004 Corporate bonds — 98,311 — 98,311 Derivative assets — 28,684 22 28,706 Derivative liabilities — (28,559) (95) (28,654) Securities Available for Sale: Derivative Assets and Liabilities Cash Flow and Fair Value Hedges. Interest Rate Lock Commitments. fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. However, this value is adjusted by a factor which considers the likelihood of a loan in a lock position will ultimately close. The closing ratio is derived from the Company’s internal data and is adjusted using significant management judgment. As such, IRLCs are classified as Level 3 measurements. Forward Sale Commitments . Customer Loan Derivatives. Although the Company has determined that the majority of the inputs used to value its customer loan derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2021, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three and six months ended June 30, 2021: Assets (Liabilities) Interest Rate Lock Forward (in thousands) Commitments Commitments Three Months Ended June 30, 2021 Balance at beginning of period $ 46 $ (85) Realized gain recognized in non-interest income (21) 40 Balance at end of period $ 25 $ (45) Three Months Ended June 30, 2020 Balance at beginning of period $ 93 $ (73) Realized gain recognized in non-interest income (30) (53) Balance at end of period $ 63 $ (126) Six Months Ended June 30, 2021 Balance at beginning of period $ 22 $ (95) Realized loss recognized in non-interest income 3 50 Balance at end of period $ 25 $ (45) Six Months Ended June 30, 2020 Balance at beginning of period $ 59 $ (84) Realized loss recognized in non-interest income 4 (42) Balance at end of period $ 63 $ (126) Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is, as follows: Significant Fair Value Fair Value Unobservable (in thousands, except ratios) June 30, 2021 December 31, 2020 Valuation Techniques Unobservable Inputs Input Value Assets (Liabilities) Interest Rate Lock Commitment $ 25 $ 22 Historical trend Closing Ratio 90 % Pricing Model Origination Costs, per loan $ 1.7 Forward Commitments (45) (95) Quoted prices for similar loans in active markets Freddie Mac pricing system Pair-off contract price Total $ (20) $ (73) Non-Recurring Fair Value Measurements The Company is required, on a non-recurring basis, to adjust the carrying value or provide valuation allowances for certain assets using fair value measurements in accordance with GAAP. The following is a summary of applicable non-recurring fair value measurements: June 30, 2021 December 31, 2020 Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Fair Value Measurement Date as of June 30, 2021 Level 3 Level 3 Total Total Level 3 (in thousands) Inputs Inputs Gains (Losses) Gains (Losses) Inputs Assets Individually evaluated loans $ 10,348 $ 8,746 $ 208 $ (1,602) June 2021 Capitalized servicing rights 4,731 3,605 (38) (1,126) June 2021 Premises held for sale 971 962 — (9) December 2020 Total $ 16,050 $ 13,313 $ 170 $ (2,737) There are no liabilities measured at fair value on a non-recurring basis in 2021 and 2020. Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is, as follows: (in thousands, except ratios) Fair Value June 30, 2021 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 7,226 Fair value of collateral-appraised value Loss severity 10% to 70% Appraised value $71 to $1,792 Individually evaluated loans 3,122 Discount cash flow Discount rate 2.88% to 9.50% Cash flows $7 to $959 Capitalized servicing rights 4,731 Discounted cash flow Constant prepayment rate (CPR) 15.14 Discount rate 9.54 Premises held for sale 971 Fair value of asset less selling costs Appraised value $220 to $386 Selling Costs 6% Total $ 16,050 (b) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties. (c) The carrying value of premises held for sale was $0.0 million as of June 30, 2021 . (in thousands, except ratios) Fair Value Dec 31, 2020 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 6,128 Fair value of collateral-appraised value Loss severity 0% to 70% Appraised value $0 to $1730 Individually evaluated loans 2,618 Discount cash flow Discount rate 3.50% to 9.50% Cash flows $19 to $953 Capitalized servicing rights 3,605 Discounted cash flow Constant prepayment rate (CPR) 18.53% Discount rate 10.05% Premises held for sale 962 Fair value of asset less selling costs Appraised value $220 to $386 Selling Costs 6% Total $ 13,313 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties. There were no Level 1 or Level 2 non-recurring fair value measurements for the periods ended June 30, 2021 and December 31, 2020. Individually evaluated loans. Capitalized loan servicing rights . Other real estate owned (“OREO”). Premises held for sale. Summary of Estimated Fair Values of Financial Instruments The estimated fair values, and related carrying amounts, of the Company’s financial instruments are included in the table below. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. June 30, 2021 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 173,718 $ 173,718 $ 173,718 $ — $ — Securities available for sale 621,849 621,849 — 621,849 — FHLB stock 14,145 14,145 — 14,145 — Loans held for sale 7,942 7,942 — — 7,942 Net loans 2,492,745 2,472,108 — — 2,472,108 Accrued interest receivable 3,381 3,381 — 3,381 — Cash surrender value of bank-owned life insurance policies 78,886 78,886 — 78,886 — Derivative assets 18,684 18,684 — 18,659 25 Financial Liabilities Non-maturity deposits $ 2,351,715 $ 2,326,202 $ — $ 2,326,202 $ — Time deposits 470,758 469,775 — 469,775 — Securities sold under agreements to repurchase 17,389 17,389 — 17,389 — FHLB advances 262,602 266,290 — 266,290 — Subordinated borrowings 60,042 62,164 — 62,164 — Derivative liabilities 18,897 18,897 — 18,852 45 December 31, 2020 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 226,007 $ 226,007 $ 226,007 $ — $ — Securities available for sale 585,046 585,046 — 585,046 — FHLB stock 14,036 14,036 — 14,036 — Loans held for sale 23,988 24,163 — — 24,163 Net loans 2,543,803 2,547,970 — — 2,547,970 Accrued interest receivable 2,964 2,964 — 2,964 — Cash surrender value of bank-owned life insurance policies 77,870 77,870 — 77,870 — Derivative assets 28,706 28,706 — 28,684 22 Financial Liabilities Non-maturity deposits $ 2,207,854 $ 2,122,222 $ — $ 2,122,222 $ — Time deposits 698,361 694,700 — 694,700 — Short-term other borrowings 27,779 27,779 — 27,779 — FHLB advances 248,283 252,698 — 252,698 — Subordinated borrowings 59,961 57,091 — 57,091 — Derivative liabilities 28,654 28,654 — 28,559 95 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 10. REVENUE FROM CONTRACTS WITH CUSTOMER The Company has accounted for the various non-interest revenue streams and related contracts under ASC 606. Disaggregation of Revenue The following tables present disaggregation of the Company’s non-interest revenue by major business line and timing of revenue recognition for the transfer of products or services: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Major Products/Service Lines Trust management fees $ 3,474 $ 2,892 $ 6,649 $ 5,938 Financial services fees 327 267 818 590 Interchange fees 1,915 1,463 3,627 3,200 Customer deposit fees 1,130 789 2,179 1,899 Other customer service fees 212 187 421 452 Total $ 7,058 $ 5,598 $ 13,694 $ 12,079 Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Timing of Revenue Recognition Products and services transferred at a point in time $ 3,570 $ 2,620 $ 6,856 $ 5,892 Products and services transferred over time 3,488 2,978 6,838 6,187 Total $ 7,058 $ 5,598 $ 13,694 $ 12,079 Trust Management Fees The trust management business generates revenue through a range of fiduciary services including trust and estate administration, wealth advisory, and investment management to individuals, businesses, not-for-profit organizations, and municipalities. Revenue from these services are generally recognized over time and is typically based on a time elapsed measure of service. Certain fees, such as bill paying fees, distribution fees, real estate sale fees, and supplemental tax service fees, are recorded as revenue at a point in time upon the completion of the service. Financial Services Fees Bar Harbor Financial Services is a branch office of Infinex, an independent registered broker dealer offering securities and insurance products not affiliated with the Company or its subsidiaries. The Company has a revenue sharing agreement with Infinex for any financial service fee income generated. Financial services fees are recognized at a point in time upon the completion of service requirements. Interchange Fees The Company earns interchange fees from transaction fees that merchants pay whenever a customer uses a debit card to make a purchase from their store. The fees are paid to the card-issuing bank to cover handling costs, fraud, bad debt costs and the risk involved in approving the payment. Interchange fees are generally recognized as revenue at a point in time upon the completion of a debit card transaction. Customer Deposit Fees The Customer Deposit business offers a variety of deposit accounts with a range of interest rates, fee schedules and other terms, which are designed to meet the customer's financial needs. Additional depositor-related services provided to customers include ATM, bank-by-phone, internet banking, internet bill pay, mobile banking, and other cash management services which include remote deposit capture, ACH origination, and wire transfers. These customer deposit fees are generally recognized by the Company at a point in time upon the completion of the service. Other Customer Service Fees The Company has certain incentive and referral fee arrangements with independent third parties in which fees are earned for new account activity, product sales, or transaction volume generated for the respective third parties. The Company also earns a percentage of the fees generated from third-party credit card plans promoted through the Bank. Revenue from these incentive and referral fee arrangements are recognized over time using the right to invoice measure of progress. Contract Balances from Contracts with Customers The following table provides information about contract assets or receivables and contract liabilities or deferred revenues from contracts with customers: (in thousands) June 30, 2021 December 31, 2020 Balances from contracts with customers only: Other Assets $ 1,190 $ 1,121 Other Liabilities 2,545 2,785 The timing of revenue recognition, billings and cash collections results in contract assets or receivables and contract liabilities or deferred revenue on the consolidated balance sheets. For most customer contracts, fees are deducted directly from customer accounts and, therefore, there is no associated impact on the accounts receivable balance. For certain types of service contracts, the Company has an unconditional right to consideration under the service contract and an accounts receivable balance is recorded for services completed. When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. Costs to Obtain and Fulfill a Contract The Company currently expenses contract costs for processing and administrative fees for debit card transactions. The Company also expenses custody fees and transactional costs associated with securities transactions as well as third party tax preparation fees. The Company has elected the practical expedient in ASC 340-40-25-4, whereby the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets the Company otherwise would have recognized is one year or less. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 11. LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases” The Company elected the following practical expedients in conjunction with implementation of ASC 842 as follows: ● Package of practical expedients : o Lease classification as an operating lease under the prior standards is grandfathered. o Re-evaluation of embedded leases evaluated under the prior standards is not required. o No re-assessment of previously recorded initial direct lease costs. ● Election to exclude short-term leases (i.e., leases with initial terms of twelve months or less), from capitalization on the consolidated balance sheets. The following table presents the consolidated statements of condition classification of the Company’s ROU assets and lease liabilities: (in thousands) Classification June 30, 2021 December 31, 2020 Lease Right-of-Use Assets Operating lease right-of-use assets Other assets $ 9,773 $ 10,338 Lease Liabilities Operating lease liabilities Other liabilities 10,107 10,627 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used for the present value of the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. If there are multiple renewals typically only the next lease renewal is considered. Regarding the discount rate, ASC 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. The following table presents the weighted average lease term and discount rate of the Company’s leases: June 30, 2021 December 31, 2020 Weighted-average remaining lease term (in years) Operating leases 8.80 9.26 Weighted-average discount rate Operating leases 3.15 % 3.15 % The following table represents lease costs, which includes prepaids and expenses and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as real estate taxes, common area maintenance and utilities. Three Months Ended Six Months Ended (in thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Lease Costs Operating lease cost $ 322 $ 323 $ 642 $ 644 Variable lease cost 55 62 136 118 Total lease cost $ 377 $ 385 $ 778 $ 762 Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2021 are, as follows: (in thousands) Payments Twelve Months Ended: June 30, 2022 $ 1,307 June 30, 2023 1,319 June 30, 2024 1,327 June 30, 2025 1,176 June 30, 2026 1,073 Thereafter 4,531 Total future minimum lease payments 10,733 Amounts representing interest (626) Present value of net future minimum lease payments $ 10,107 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
BASIS OF PRESENTATION | |
Consolidation | The consolidated financial statements (the “financial statements”) of Bar Harbor Bankshares and its subsidiaries (the “Company” or “Bar Harbor”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Bar Harbor Bankshares is a Maine Financial Institution Holding Company for the purposes of the laws of the state of Maine, and as such is subject to the jurisdiction of the Superintendent of the Maine Bureau of Financial Institutions. These financial statements include the accounts of the Company, its wholly owned subsidiary Bar Harbor Bank & Trust (the "Bank") and the Bank’s consolidated subsidiaries. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly owned and majority owned subsidiaries are consolidated unless GAAP requires otherwise. In addition, these interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to GAAP have been omitted. The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and note disclosures for the Company's Annual Report on Form 10-K for the year ended December 31, 2020 previously filed with the Securities and Exchange Commission (the "SEC"). In management's opinion, all adjustments necessary for a fair statement are reflected in the interim periods presented. |
Reclassifications | Reclassifications: |
Allowance for Credit Loss on AFS Debt Securities | Allowance for Credit Loss on AFS Debt Securities: A change in the allowance on AFS debt securities may be in full or a portion thereof, is recorded as expense (credit) within provision for credit losses on the consolidated statements of income. Losses are charged against the allowance when management believes the uncollectibility of an AFS debt security is confirmed based on the above described analysis. As of June 30, 2021 and January 1, 2021 (i.e. ASU 2016-13 adoption), there was no allowance carried on the Company's AFS debt securities. Refer to Note 2 of the consolidated financial statements for further discussion. |
Loans | Loans: For originated loans, loan fees and certain direct origination costs are deferred and amortized into interest income over the contractual term of the loan using the level-yield method over the estimated lives of the related loans. When a loan is paid off, the unamortized portion of deferred fees or costs are recognized in interest income. Interest income on originated loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans, interest income is accrued based upon the daily principal amount outstanding and is then further adjusted by the accretion of any discount or amortization of any premium associated with the loan that was recognized based on the acquisition date fair value. When a loan is paid off, the unamortized portion of any premiums or discounts on loans are recognized in interest income. |
Purchase Credit Deteriorated (PCD) Loans | Purchase Credit Deteriorated (PCD) Loans: The Company adopted CECL using the prospective transition approach for financial assets purchased with credit deterioration that were previously classified as purchased credit impaired (PCI) and accounted for under ASC 310-30. In accordance with the standard, the Company did not reassess whether PCI assets met the definition of PCD assets as of the date of adoption. On January 1, 2021, the amortized cost basis of the PCD assets representing the noncredit discount will be accreted into interest income using the level-yield method over the estimated lives of the related loans. The converted PCD assets of $12.5 million were then pooled by call report coding and an additional allowance was calculated on the pooled assets separately from other loan pools totaling $524 thousand. |
Non-performing loans | Non-performing loans: When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on the loan. The interest on non-accrual loans is accounted for using the cash-basis or cost-recovery method depending on corresponding credit risk, until qualifying for return to accrual status. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Previously, acquired loans that met the criteria for non-accrual of interest prior to the acquisition were considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company could reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans and any change in performance would have impacted accretable yield. After adoption of ASC 326 on January 1, 2021 the Company now treats these non-performing acquired loans that meet the criteria for non-accrual consistent with originated loans. |
Allowance for Credit Losses | Allowance for Credit Losses: Upon adoption of ASC 326 or CECL on January 1, 2021, the Company replaced the incurred loss impairment model that recognizes losses when it became probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged- off. The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, generally larger non-accruing commercial loans and TDRs. The Company uses the discounted cash flow (“DCF”) method to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis. For each loan segment, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, probability of default, and loss given default. The modeling of prepayment speeds is based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, property values, housing starts, and other relevant factors as loss drivers. For all DCF models, management has determined that due to historic volatility in economic data, two quarters currently represents a reasonable and supportable forecast period, followed by a six-period reversion to historical mean levels for each of the various economic indicators. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Specific instrument effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value ("NPV"). An allowance is established for the difference between the instrument’s NPV and amortized cost basis. The allowance evaluation also considers various qualitative factors, such as: (i) changes to lending policies, underwriting standards and/or management personnel performing such functions, (ii) delinquency and other credit quality trends, (iii) credit risk concentrations, if any, (iv) changes to the nature of the Company's business impacting the loan portfolio, (v) and other external factors, that may include, but are not limited to, results of internal loan reviews, stress testing, examinations by bank regulatory agencies, or other events such as a natural disaster. Arriving at an appropriate level of allowance involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. |
Individually Evaluated Loans | Individually Evaluated Loans : With the adoption of CECL, loans that do not share risk characteristics with existing pools are evaluated on an individual basis. For loans that are individually evaluated and collateral dependent, financial loans where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral. When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. |
Accrued Interest | Accrued Interest |
Allowance for off-balance sheet credit exposures | Allowance for off-balance sheet credit exposures: |
Impact Of Adoption | Impact of Adoption The following table illustrates the adoption of CECL on January 1, 2021: Reclassification Pre-CECL Post-CECL to CECL Adoption Adoption Impact of Pre-CECL Portfolio Portfolio Portfolio CECL (in thousands) Adoption Segmentation Segmentation Segmentation Adoption Assets: Loans: Commercial construction $ 131,123 $ (13,241) $ 117,882 $ 117,882 $ — Commercial real estate 953,258 (953,258) — — — Commercial real estate owner occupied — 219,217 219,217 219,217 — Commercial real estate non-owner occupied — 716,776 716,776 716,776 — Tax exempt 63,431 (15,569) 47,862 47,862 — Commercial and industrial 377,638 (21,954) 355,684 355,684 — Residential real estate 923,891 71,325 995,216 995,216 — Home equity 102,464 (2,368) 100,096 100,096 — Consumer other 11,080 (928) 10,152 10,152 — Total loans $ 2,562,885 $ — $ 2,562,885 $ 2,562,885 $ — Allowance for credit losses on loans Commercial construction $ 1,044 $ (220) $ 824 $ 2,020 $ 1,196 Commercial real estate 10,199 (10,199) — — — Commercial real estate owner occupied — 1,783 1,783 2,491 708 Commercial real estate non-owner occupied — 7,864 7,864 5,856 (2,008) Tax exempt 80 (22) 58 98 40 Commercial and industrial 3,302 (165) 3,137 6,133 2,996 Residential real estate 4,078 932 5,010 6,742 1,732 Home equity 258 27 285 888 603 Consumer other 121 — 121 82 (39) Total allowance for credit losses on loans $ 19,082 $ — $ 19,082 $ 24,310 $ 5,228 Liabilities: Allowance for credit losses on unfunded commitments $ 359 $ — $ 359 $ 1,975 $ 1,616 Total allowance for credit losses $ 19,441 $ — $ 19,441 $ 26,285 $ 6,844 Retained earnings: Total increase in Allowance for credit losses $ 6,844 Tax effect (1,602) Decrease to retained earnings $ 5,242 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following table provides a brief description of recent accounting standards updates ("ASU") that could have a material impact to the Company’s consolidated financial statements upon adoption: Standard Description Required Date Effect on financial statements Standards Adopted in 2021 ASU 2016-13, Measurement of Credit Losses on Financial Instruments ASU 2018‑19, Codification Improvements to ASU 2016-13 This ASU amends Topic 326, Financial Instruments- Credit Losses to replace the current incurred loss accounting model with a current expected credit loss approach ("CECL") for financial instruments measured at amortized cost and other commitments to extend credit, such as of balance sheet credit exposures (loan comitments, unused line of credit and stand-by letters of credit). The amendments require entities to consider all available relevant information when estimating current expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts. The resulting allowance for credit losses is to reflect the portion of the amortized cost basis that the entity does not expect to collect. The amendments also eliminate the current accounting model for purchased credit impaired loans and certain off-balance sheet exposures. Additional quantitative and qualitative disclosures are required upon adoption. January 1, 2022 Adoption of this ASU primarily changed how the Company estimates credit losses with the application of the expected credit loss model. The Company applied the standard's provisions as a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company has finalized its CECL implementation, recieved board approval of the final CECL model, completed modelling of off-balance sheet credit risks, completed formal governance and control documentation, and developed and presented revised disclosures for board approval. million. Equity was reduced by ASU 2018-14 Compensation- Disclosure Requirements for Defined Pension Plans Topic 715-20 This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other post-retirement benefit plans. January 1, 2021 Adoption of this ASU did not have a material impact on the Company's consolidated financial statements. The impact will be reflected in the Company’s annual 10-K disclosures of employee benefit plans. Standard Description Required Date Effect on financial statements Standards Adopted in 2021 ASU 2020-01, Investments—Equity Securities, Investments Equity Method and Joint Ventures, and Derivatives and Hedging In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which added Topic 321, Investments – Equity Securities, and made targeted improvements to address certain aspects of accounting for financial instruments. The amendments in this Update affect all entities that apply the guidance in Topics 321, 323, and 815 and (1) elect to apply the measurement alternative or (2) enter into a forward contract or purchase an option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting. December 15, 2020 The adoption had no material impact on the Company's consolidated financial statements. The Company’s equity method investments which primarily consist of community limited partnership investments are in compliance with the new guidance prospectively in 2021. Standard Description Required Date Effect on financial statements Standards Not Yet Adopted ASU 2020-04 Facilitation of the Effects of Reference Rate Reform, Topic 848, as amended in ASU 2021-01 This ASU provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate ("SOFR"). For instance, companies can (1) elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. A company that makes this election would not have to re-measure the contracts at the modification date or reassess a previous accounting determination. Companies can also (2) elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. Finally, companies can (3) make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. May be elected through December 31, 2022. The Company is currently evaluating all of its contracts, hedging relationships and other transactions that will be effected by reference rates are being discontinued. The following elections have been made in regards to our cash flow hedges as outlined on the next page. Rate Reform Elections Adherence to ISDA Fallback Protocol The ISDA 2020 IBOR Fallbacks Protocol (the “ISDA Fallback Protocol”) was made available for adherence on October 23, 2020 with an effective date of January 25, 2021. Once adhered to by both counterparties in a bilateral relationship and the effective date is reached, the ISDA Fallback Protocol represents a change to the contractual terms of derivatives governed by each respective ISDA agreement between the Company and a derivative counterparty. The change relates to reference rate reform and represents the potential for addition of or changes to contractual terms and was developed by a private-sector working group convened by a regulator as referenced in 848-20-15-5(g). For all of the Company’s interest rate swaps that meet the scope requirements of 848-10-15-3 and 848-10-15-3A and for which the Company adhered to the ISDA Fallback Protocol, the Company makes the following elections: • Modification related elections • Option to not reassess a previous accounting determination (paragraph 848-20-35-4) • Hedge accounting related modifications • Option to not dedesignate a hedging relationship due to a change in a critical term (paragraph 848-30-25-3) • Option to change the contractual terms of a hedging instrument, hedged item, or forecasted transaction and to not dedesignate a hedging relationship (paragraph 848-30-25-5) Cash flow hedges The Company amends the hedge documentation, without dedesignating and redesignating, for all outstanding cash flow hedging relationships for the following elections: • Probability of forecasted transactions: The Company elects the expedient in ASC 848-50-25-2 to assert probability of the hedged interest payments/receipts regardless of any expected modification in terms related to reference rate reform. • Assessment of effectiveness: In accordance with ASC 848-30-25-4, ASC 848-30-25-8, and ASC 848-50-35-1 through 35-24 the Company has the option to change the method of assessing effectiveness upon a change in the critical terms of the derivative or the hedged transactions and upon the end of relief under ASC 848. At this time the Company elects to continue the method of assessing effectiveness as documented in the original hedge documentation and elects to apply the expedient in ASC 848-50-35-17 so that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. For new hedging relationships designated subsequent to the date of this memorandum, the Company elects to apply the expedient in ASC 848-50-25-11 to assume that the reference rate will not be replaced for the remainder of the hedging relationship. New hedging activity The Company makes the same elections for each hedging relationship designated subsequent to March 31, 2021. Any hedging relationship-specific elections beyond the elections noted above will be documented in the respective inception hedge documentation. Subsequent election of optional expedients and exceptions after the March 31, 2021 will be documented in accordance with the elections being made here. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Standards Update 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of impact of CECL adoption | Reclassification Pre-CECL Post-CECL to CECL Adoption Adoption Impact of Pre-CECL Portfolio Portfolio Portfolio CECL (in thousands) Adoption Segmentation Segmentation Segmentation Adoption Assets: Loans: Commercial construction $ 131,123 $ (13,241) $ 117,882 $ 117,882 $ — Commercial real estate 953,258 (953,258) — — — Commercial real estate owner occupied — 219,217 219,217 219,217 — Commercial real estate non-owner occupied — 716,776 716,776 716,776 — Tax exempt 63,431 (15,569) 47,862 47,862 — Commercial and industrial 377,638 (21,954) 355,684 355,684 — Residential real estate 923,891 71,325 995,216 995,216 — Home equity 102,464 (2,368) 100,096 100,096 — Consumer other 11,080 (928) 10,152 10,152 — Total loans $ 2,562,885 $ — $ 2,562,885 $ 2,562,885 $ — Allowance for credit losses on loans Commercial construction $ 1,044 $ (220) $ 824 $ 2,020 $ 1,196 Commercial real estate 10,199 (10,199) — — — Commercial real estate owner occupied — 1,783 1,783 2,491 708 Commercial real estate non-owner occupied — 7,864 7,864 5,856 (2,008) Tax exempt 80 (22) 58 98 40 Commercial and industrial 3,302 (165) 3,137 6,133 2,996 Residential real estate 4,078 932 5,010 6,742 1,732 Home equity 258 27 285 888 603 Consumer other 121 — 121 82 (39) Total allowance for credit losses on loans $ 19,082 $ — $ 19,082 $ 24,310 $ 5,228 Liabilities: Allowance for credit losses on unfunded commitments $ 359 $ — $ 359 $ 1,975 $ 1,616 Total allowance for credit losses $ 19,441 $ — $ 19,441 $ 26,285 $ 6,844 Retained earnings: Total increase in Allowance for credit losses $ 6,844 Tax effect (1,602) Decrease to retained earnings $ 5,242 |
SECURITIES AVAILABLE FOR SALE (
SECURITIES AVAILABLE FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SECURITIES AVAILABLE FOR SALE | |
Summary of Securities Available for Sale | Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value June 30, 2021 Mortgage-backed securities: US Government-sponsored enterprises $ 196,476 $ 4,001 $ (2,116) $ 198,361 US Government agency 64,693 1,853 (203) 66,343 Private label 73,428 195 (88) 73,535 Obligations of states and political subdivisions thereof 184,229 4,196 (272) 188,153 Corporate bonds 93,582 2,735 (860) 95,457 Total securities available for sale $ 612,408 $ 12,980 $ (3,539) $ 621,849 Gross Gross Unrealized Unrealized (in thousands) Amortized Cost Gains Losses Fair Value December 31, 2020 Mortgage-backed securities: US Government-sponsored enterprises $ 206,834 $ 6,018 $ (462) $ 212,390 US Government agency 82,878 2,870 (116) 85,632 Private label 19,810 40 (141) 19,709 Obligations of states and political subdivisions thereof 164,766 4,244 (6) 169,004 Corporate bonds 97,689 1,465 (843) 98,311 Total securities available for sale $ 571,977 $ 14,637 $ (1,568) $ 585,046 |
Schedule of Amortized Cost and Estimated Fair Value of Available for Sale (AFS) Securities, Segregated by Contractual Maturity | Available for sale (in thousands) Amortized Cost Fair Value Within 1 year $ 6,765 $ 6,869 Over 1 year to 5 years 21,738 21,904 Over 5 years to 10 years 68,136 67,171 Over 10 years 181,172 187,666 Total bonds and obligations 277,811 283,610 Mortgage-backed securities 334,597 338,239 Total securities available for sale $ 612,408 $ 621,849 |
Schedule of Gains and Losses from Sale of AFS Securities | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2021 2020 2021 2020 Gross gains on sales of available for sale securities $ 50 $ 1,362 $ 50 $ 1,508 Gross losses on sales of available for sale securities — (11) — (22) Net gains on sale of available for sale securities $ 50 $ 1,351 $ 50 $ 1,486 |
Schedule of Securities with Unrealized Losses, Segregated by the Duration of Continuous Unrealized Loss Positions | Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value June 30, 2021 Mortgage-backed securities: US Government-sponsored enterprises $ 1,879 $ 91,739 $ 237 $ 3,743 $ 2,116 $ 95,482 US Government agency 189 13,512 14 3,190 203 16,702 Private label 83 51,718 5 19 88 51,737 Obligations of states and political subdivisions thereof 272 35,808 — — 272 35,808 Corporate bonds 16 6,984 844 16,406 860 23,390 Total securities available for sale $ 2,439 $ 199,761 $ 1,100 $ 23,358 $ 3,539 $ 223,119 Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (in thousands) Losses Value Losses Value Losses Value December 31, 2020 Mortgage-backed securities: US Government-sponsored enterprises $ 209 $ 40,285 $ 253 $ 4,323 $ 462 $ 44,608 US Government agency 45 6,776 71 3,297 116 10,073 Private label — — 141 19,514 141 19,514 Obligations of states and political subdivisions thereof 6 5,577 — — 6 5,577 Corporate bonds 555 21,774 288 11,712 843 33,486 Total securities available for sale $ 815 $ 74,412 $ 753 $ 38,846 $ 1,568 $ 113,258 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Loans | June 30, December 31, (in thousands) 2021 2020 Commercial construction $ 161,192 $ 117,882 Commercial real estate owner occupied 233,825 219,217 Commercial real estate non-owner occupied 713,889 716,776 Tax exempt 44,079 47,862 Commercial and industrial 370,074 355,684 Residential real estate 891,806 995,216 Home equity 90,440 100,096 Consumer other 10,255 10,152 Total loans 2,515,560 2,562,885 Allowance for credit losses 22,815 19,082 Net loans $ 2,492,745 $ 2,543,803 |
Summary of Unamortized Net Costs and Premiums in Business Activity Loans | June 30, December 31, (in thousands) 2021 2020 Unamortized net loan origination costs $ 3,336 $ 5,157 Unamortized net premium on purchased loans (77) (85) Total unamortized net costs and premiums $ 3,259 $ 5,072 |
Schedule of Activity in the Allowance for Loan Losses | The Company’s activity in the allowance for credit losses for the periods ended are as follows: Three Months Ended June 30, 2021 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 1,792 $ — $ — $ 580 $ 2,372 Commercial real estate owner occupied 3,352 (108) 2 (694) 2,552 Commercial real estate non-owner occupied 5,902 — — (298) 5,604 Tax exempt 94 — — (3) 91 Commercial and industrial 5,040 (20) 13 192 5,225 Residential real estate 6,569 (21) 109 (588) 6,069 Home equity 823 (32) 36 (5) 822 Consumer other 81 (58) 6 51 80 Total $ 23,653 $ (239) $ 166 $ (765) $ 22,815 Six Months Ended June 30, 2021 Balance at Beginning of Impact of ASC Balance at (in thousands) Period 326 Charge Offs Recoveries Provision End of Period Commercial construction $ 824 $ 1,196 $ — $ 18 $ 334 $ 2,372 Commercial real estate owner occupied 1,783 708 (261) 2 320 2,552 Commercial real estate non-owner occupied 7,864 (2,008) — 4 (256) 5,604 Tax exempt 58 40 — — (7) 91 Commercial and industrial 3,137 2,996 (20) 14 (902) 5,225 Residential real estate 5,010 1,732 (61) 122 (734) 6,069 Home equity 285 603 (54) 47 (59) 822 Consumer other 121 (39) (59) 7 50 80 Total $ 19,082 $ 5,228 $ (455) $ 214 $ (1,254) $ 22,815 Three Months Ended June 30, 2020 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 395 $ — $ — $ 137 $ 532 Commercial real estate owner occupied 1,486 — — 38 1,524 Commercial real estate non-owner occupied 5,314 — 71 541 5,926 Tax exempt 57 — — 7 64 Commercial and industrial 3,323 (160) 5 (112) 3,056 Residential real estate 4,291 (20) — 720 4,991 Home equity 328 — — (10) 318 Consumer other 103 (40) 2 33 98 Total $ 15,297 $ (220) $ 78 $ 1,354 $ 16,509 Six Months Ended June 30, 2020 Balance at Beginning of Balance at (in thousands) Period Charge Offs Recoveries Provision End of Period Commercial construction $ 317 $ — $ — $ 215 $ 532 Commercial real estate owner occupied 2,368 — — (844) 1,524 Commercial real estate non-owner occupied 4,695 (825) 50 2,006 5,926 Tax exempt 67 — — (3) 64 Commercial and industrial 3,262 (375) 50 119 3,056 Residential real estate 4,213 (31) 10 799 4,991 Home equity 320 — — (2) 318 Consumer other 111 (200) 12 175 98 Total $ 15,353 $ (1,431) $ 122 $ 2,465 $ 16,509 |
Schedule of Loans by Risk Rating | (in thousands) 2021 2020 2019 2018 2017 Prior Total Commercial construction Risk rating: Pass $ 12,778 $ 68,262 $ 53,760 $ 26,392 $ — $ — $ 161,192 Special mention — — — — — — — Substandard — — — — — — — Total $ 12,778 $ 68,262 $ 53,760 $ 26,392 $ — $ — $ 161,192 Commercial real estate owner occupied Risk rating: Pass $ 4,866 $ 15,555 $ 35,811 $ 30,353 $ 20,769 $ 112,798 $ 220,152 Special mention — — 773 — — 1,618 2,391 Substandard — — — 261 261 10,397 10,919 Doubtful — — — 188 — 175 363 Total $ 4,866 $ 15,555 $ 36,584 $ 30,802 $ 21,030 $ 124,988 $ 233,825 Commercial real estate non-owner occupied Risk rating: Pass $ 65,282 $ 148,198 $ 98,572 $ 41,971 $ 150,092 $ 204,405 $ 708,520 Special mention — — — — — 1,472 1,472 Substandard — — — 150 150 3,408 3,708 Doubtful — — — — — 189 189 Total $ 65,282 $ 148,198 $ 98,572 $ 42,121 $ 150,242 $ 209,474 $ 713,889 Tax exempt Risk rating: Pass $ 833 $ 338 $ 1,125 $ 14,790 $ 5,463 $ 21,530 $ 44,079 Special mention — — — — — — — Substandard — — — — — — — Total $ 833 $ 338 $ 1,125 $ 14,790 $ 5,463 $ 21,530 $ 44,079 Commercial and industrial Risk rating: Pass $ 114,688 $ 59,804 $ 38,907 $ 17,769 $ 66,905 $ 51,081 $ 349,154 Special mention 345 259 806 702 215 1,105 3,432 Substandard 98 — 583 15,010 57 1,252 17,000 Doubtful — — — — 129 359 488 Total $ 115,131 $ 60,063 $ 40,296 $ 33,481 $ 67,306 $ 53,797 $ 370,074 (continued) (in thousands) 2021 2020 2019 2018 2017 Prior Total Residential real estate Performing $ 62,479 $ 130,710 $ 105,016 $ 78,567 $ 77,987 $ 428,092 $ 882,851 Nonperforming — — — 580 271 8,104 8,955 Total $ 62,479 $ 130,710 $ 105,016 $ 79,147 $ 78,258 $ 436,196 $ 891,806 Home equity Performing $ 5,888 $ 10,270 $ 10,912 $ 8,305 $ 7,203 $ 46,618 $ 89,196 Nonperforming — — — — — 1,244 1,244 Total $ 5,888 $ 10,270 $ 10,912 $ 8,305 $ 7,203 $ 47,862 $ 90,440 Consumer other Performing $ 2,673 $ 2,388 $ 1,265 $ 896 $ 369 $ 2,657 $ 10,248 Nonperforming — — — — — 7 7 Total $ 2,673 $ 2,388 $ 1,265 $ 896 $ 369 $ 2,664 $ 10,255 Total Loans $ 269,930 $ 435,784 $ 347,530 $ 235,934 $ 329,871 $ 896,511 $ 2,515,560 The following table summarizes credit risk exposure indicators by portfolio segment, under the incurred loss methodology, as of the period indicated: December 31, 2020 Commercial Commercial Residential Real Estate and Industrial Real Estate Consumer Total Grade: Pass $ 1,053,773 $ 422,016 $ — $ — $ 1,475,789 Performing — — 914,749 112,190 1,026,939 Special mention 6,075 2,771 — — 8,846 Substandard 22,267 15,180 — — 37,447 Doubtful 2,265 1,100 — — 3,365 Loss 1 2 — — 3 Non-performing — — 9,142 1,354 10,496 Total $ 1,084,381 $ 441,069 $ 923,891 $ 113,544 $ 2,562,885 |
Summary of Past Due Loans | June 30, 2021 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ — $ — $ — $ — $ 161,192 $ 161,192 Commercial real estate owner occupied 573 8 71 652 233,173 233,825 Commercial real estate non-owner occupied 442 148 445 1,035 712,854 713,889 Tax exempt — — — — 44,079 44,079 Commercial and industrial — 47 205 252 369,822 370,074 Residential real estate 300 926 3,891 5,117 886,689 891,806 Home equity 475 259 151 885 89,555 90,440 Consumer other 21 1 — 22 10,233 10,255 Total $ 1,811 $ 1,389 $ 4,763 $ 7,963 $ 2,507,597 $ 2,515,560 December 31, 2020 (in thousands) 30-59 60-89 90+ Total Past Due Current Total Loans Commercial construction $ 74 $ — $ 1 $ 75 $ 117,807 $ 117,882 Commercial real estate owner occupied 1,309 464 438 2,211 217,006 219,217 Commercial real estate non-owner occupied 503 674 624 1,801 714,975 716,776 Tax exempt — — — — 47,862 47,862 Commercial and industrial 161 — 193 354 355,330 355,684 Residential real estate 9,178 2,511 3,200 14,889 980,327 995,216 Home equity 1,062 614 375 2,051 98,045 100,096 Consumer other 20 — 2 22 10,130 10,152 Total $ 12,307 $ 4,263 $ 4,833 $ 21,403 $ 2,541,482 $ 2,562,885 |
Summary of Non-Accrual Loans | June 30, 2021 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ — $ — $ — Commercial real estate owner occupied 1,316 917 — Commercial real estate non-owner occupied 1,105 845 — Tax exempt — — — Commercial and industrial 952 583 — Residential real estate 8,955 3,594 449 Home equity 1,244 326 24 Consumer other 7 — — Total $ 13,579 $ 6,265 $ 473 December 31, 2020 Nonaccrual With No 90+ Days Past (in thousands) Nonaccrual Related Allowance Due and Accruing Commercial construction $ 258 $ — $ — Commercial real estate owner occupied 2,400 929 — Commercial real estate non-owner occupied 383 118 — Tax exempt — — — Commercial and industrial 1,223 1,065 — Residential real estate 5,883 4,948 — Home equity 1,345 1,346 267 Consumer other 58 58 — Total $ 11,550 $ 8,464 $ 267 |
Schedule of amortized cost basis of collateral-dependent loans | June 30, 2021 December 31, 2020 (in thousands) Real Estate Other Real Estate Other Commercial construction $ — $ — $ 259 $ — Commercial real estate owner occupied 1,316 — 3,441 — Commercial real estate non-owner occupied 1,105 — 383 — Tax exempt — — — — Commercial and industrial 551 401 625 607 Residential real estate 8,955 — 7,432 — Home equity 1,244 — 1,493 — Consumer other 7 — 60 — Total $ 13,178 $ 401 $ 13,693 $ 607 |
Summary of Impaired Loans | December 31, 2020 Recorded Unpaid Principal Related Average Recorded Interest (in thousands) Investment Balance Allowance Investment Income Recognized With no related allowance: Construction and land development $ — $ — $ — $ — $ — Other commercial real estate 2,001 2,047 — 1,610 — Commercial 1,095 1,254 — 1,140 4 Agricultural 361 150 — 114 2 Tax exempt loans — — — — — Residential real estate 2,745 3,165 — 1,077 17 Home equity — — — — — Other consumer — — — — — With an allowance recorded: Construction and land development 258 258 205 203 — Other commercial real estate 1,963 2,108 1,038 1,973 17 Commercial 282 289 164 73 — Agricultural — — — — — Tax exempt loans — — — — — Residential real estate 887 944 106 1,865 37 Home equity 13 13 — 12 1 Other consumer — — — — — Total Commercial real estate 4,222 4,413 1,243 3,786 17 Commercial and industrial 1,738 1,693 164 1,327 6 Residential real estate 3,632 4,109 106 2,942 54 Consumer 13 13 — 12 1 Total impaired loans $ 9,605 $ 10,228 $ 1,513 $ 8,067 $ 78 |
Schedule of Recorded Investment and Number of Modifications for TDRs | Six Months Ended June 30, 2020 Pre-Modification Post-Modification Number of Outstanding Outstanding (in thousands) Modifications Balance Balance Reserve Commercial construction — $ — $ — $ — Commercial real estate owner occupied — — — — Commercial real estate non-owner occupied 1 54 252 — Tax exempt — — — — Commercial and industrial 3 41 196 — Residential real estate — — — — Home equity 1 26 25 — Consumer other 1 9 9 — Total 6 $ 130 $ 482 $ — |
Summary of Loan Concessions | June 30, 2021 June 30, 2020 Post-Modification Post-Modification Number of Outstanding Number of Outstanding (in thousands) Modifications Balance Modifications Balance Interest rate, forbearance and maturity concession — $ — 4 $ 448 Forbearance and interest only payments — — 1 25 Maturity concession — — 1 9 Total — $ — 6 $ 482 |
Unfunded Loan Commitment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Activity in the Allowance for Loan Losses | (in thousands) Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Begininng Balance $ 1,819 $ 359 Impact of CECL adoption — 1,616 Provision for credit losses 102 (156) Ending Balance $ 1,921 $ 1,921 (in thousands) Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Begininng Balance $ 359 $ 314 Provision for credit losses (40) 5 Ending Balance $ 319 $ 319 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds | June 30, 2021 December 31, 2020 Weighted Weighted (dollars in thousands) Carrying Value Average Rate Carrying Value Average Rate Short-term borrowings Advances from the FHLB $ 80,000 0.39 % $ 65,676 1.19 % Other borrowings 17,389 0.13 27,779 0.15 Total short-term borrowings 97,389 0.19 93,455 0.44 Long-term borrowings Advances from the FHLB 182,602 1.73 182,607 1.73 Subordinated borrowings 60,042 4.41 59,961 4.34 Total long-term borrowings 242,644 2.39 242,568 2.37 Total $ 340,033 1.13 % $ 336,023 1.41 % |
Summary of Maturities of FHLB Advances | June 30, 2021 Weighted Average (in thousands, except rates) Amount Rate 2021 $ 80,000 0.39 % 2022 75,000 1.87 2023 80,000 1.77 2024 7,300 1.16 2025 20,000 1.21 2026 and thereafter 302 2.58 Total FHLB advances $ 262,602 1.32 % |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
Summary of Time Deposits | (in thousands) June 30, 2021 December 31, 2020 Time less than $100,000 $ 203,004 $ 325,646 Time $100,000 through $250,000 194,247 278,940 Time $250,000 or more 73,507 93,775 Total $ 470,758 $ 698,361 |
Time Deposit Maturities | (in thousands) June 30, 2021 December 31, 2020 Within 1 year $ 361,912 $ 574,007 Over 1 year to 2 years 58,910 61,584 Over 2 years to 3 years 32,910 41,145 Over 3 years to 4 years 10,074 12,875 Over 4 years to 5 years 6,870 8,728 Over 5 years 82 22 Total $ 470,758 $ 698,361 |
CAPITAL RATIOS AND SHAREHOLDE_2
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Actual and Required Capital Ratios | Regulatory Regulatory June 30, Minimum to be December 31, Minimum to be 2021 "Well-Capitalized" 2020 "Well-Capitalized" Company (consolidated) Total capital to risk-weighted assets 13.95 % 10.50 % 13.56 % 10.50 % Common equity tier 1 capital to risk-weighted assets 10.72 7.00 10.49 7.00 Tier 1 capital to risk-weighted assets 11.51 8.50 11.28 8.50 Tier 1 capital to average assets 8.36 5.00 8.12 5.00 Bank Total capital to risk-weighted assets 13.78 % 10.50 % 13.27 % 10.50 % Common equity tier 1 capital to risk-weighted assets 12.86 7.00 12.52 7.00 Tier 1 capital to risk-weighted assets 12.86 8.50 12.52 8.50 Tier 1 capital to average assets 9.34 5.00 9.02 5.00 |
Schedule of Components of Accumulated Other Comprehensive Income | (in thousands) June 30, 2021 December 31, 2020 Accumulated other comprehensive income, before tax: Net unrealized gain on AFS securities $ 9,441 $ 13,069 Net unrealized gain on hedging derivatives 2,448 3,144 Net unrealized loss on post-retirement plans (1,850) (1,850) Income taxes related to items of accumulated other comprehensive income: Net unrealized gain on AFS securities (2,204) (3,046) Net unrealized gain on hedging derivatives (573) (733) Net unrealized loss on post-retirement plans 432 432 Accumulated other comprehensive income $ 7,694 $ 11,016 |
Schedule of Components of Other Comprehensive Income (Loss) | The following table presents the components of other comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020: (in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2021 Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ 3,607 $ (842) $ 2,765 Less: reclassification adjustment for gains (losses) realized in net income 50 (12) 38 Net unrealized gain on AFS securities 3,557 (830) 2,727 Net unrealized gain on hedging derivatives: Net unrealized gain arising during the period 1,963 (460) 1,503 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on cash flow hedging derivatives 1,963 (460) 1,503 Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on post-retirement plans — — — Other comprehensive income $ 5,520 $ (1,290) $ 4,230 Three Months Ended June 30, 2020 Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ 3,772 $ (891) $ 2,881 Less: reclassification adjustment for gains (losses) realized in net income 1,351 (322) 1,029 Net unrealized gain on AFS securities 2,421 (569) 1,852 Net unrealized gain on derivative hedgess: Net unrealized gain arising during the period 626 (147) 479 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on cash flow derivative hedges 626 (147) 479 Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on post-retirement plans — — — Other comprehensive income $ 3,047 $ (716) $ 2,331 (in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2021 Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ (3,578) $ 830 $ (2,748) Less: reclassification adjustment for gains (losses) realized in net income 50 (12) 38 Net unrealized loss on AFS securities (3,628) 842 (2,786) Net unrealized loss on derivative hedges: Net unrealized loss arising during the period (696) 160 (536) Less: reclassification adjustment for (losses) gains realized in net income — — — Net unrealized loss on derivative hedges (696) 160 (536) Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on post-retirement plans — — — Other comprehensive income $ (4,324) $ 1,002 $ (3,322) Six Months Ended June 30, 2020 Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ 9,148 $ (2,064) $ 7,084 Less: reclassification adjustment for gains realized in net income 1,486 (355) 1,131 Net unrealized gain on AFS securities 7,662 (1,709) 5,953 Net unrealized loss on cash flow hedging derivatives: Net unrealized loss arising during the period (1,639) 296 (1,343) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on cash flow hedging derivatives (1,639) 296 (1,343) Net unrealized gain on post-retirement plans: Net unrealized gain arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized gain on post-retirement plans — — — Other comprehensive income $ 6,023 $ (1,413) $ 4,610 |
Schedule of Changes in Components of Accumulated Other Comprehensive Income (Loss) | Net unrealized Net loss on Net unrealized gain effective cash loss on AFS flow hedging on pension (in thousands) Securities derivatives plans Total Three Months Ended June 30, 2021 Balance at beginning of period $ 4,510 $ 372 $ (1,418) $ 3,464 Other comprehensive gain before reclassifications 2,765 1,503 — 4,268 Less: amounts reclassified from accumulated other comprehensive income 38 — — 38 Total other comprehensive income 2,727 1,503 — 4,230 Balance at end of period $ 7,237 $ 1,875 $ (1,418) $ 7,694 Three Months Ended June 30, 2020 Balance at beginning of period $ 9,560 $ (2,213) $ (1,157) $ 6,190 Other comprehensive gain before reclassifications 2,881 479 — 3,360 Less: amounts reclassified from accumulated other comprehensive income 1,029 — — 1,029 Total other comprehensive income 1,852 479 — 2,331 Balance at end of period $ 11,412 $ (1,734) $ (1,157) $ 8,521 Six Months Ended June 30, 2021 Balance at beginning of period $ 10,023 $ 2,411 $ (1,418) $ 11,016 Other comprehensive loss before reclassifications (2,748) (536) — (3,284) Less: amounts reclassified from accumulated other comprehensive income 38 — — 38 Total other comprehensive loss (2,786) (536) — (3,322) Balance at end of period $ 7,237 $ 1,875 $ (1,418) $ 7,694 Six Months Ended June 30, 2020 Balance at beginning of period $ 5,459 $ (391) $ (1,157) $ 3,911 Other comprehensive gain (loss) before reclassifications 7,084 (1,343) — 5,741 Less: amounts reclassified from accumulated other comprehensive income 1,131 — — 1,131 Total other comprehensive income (loss) 5,953 (1,343) — 4,610 Less: amounts reclassified from accumulated other comprehensive income for ASU 2018-02 — — — — Balance at end of period $ 11,412 $ (1,734) $ (1,157) $ 8,521 |
Reclassification out of Accumulated Other Comprehensive Income | Three Months Ended June 30, Six Months Ended June 30, Affected Line Item where (in thousands) 2021 2020 2021 2020 Net Income is Presented Net realized gains on AFS securities: Before tax (1) $ 50 $ 1,351 $ 50 $ 1,486 Non-interest income Tax effect (12) (322) (12) (355) Tax expense Total reclassifications for the period $ 38 $ 1,029 $ 38 $ 1,131 (a) Net realized gains before tax include $50 thousand realized gains for the three and six months ended June 30, 2021. Net realized gains before tax include gross realized gains $1.4 million and realized losses of $11 thousand for the three months ended June 30, 2020 and gross realized gains of $1.5 million and realized losses of $22 thousand for the six months ended June 30, 2020. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share and share data) 2021 2020 2021 2020 Net income $ 9,025 $ 8,481 $ 18,505 $ 16,202 Average number of basic common shares outstanding 14,965,398 15,423,997 14,949,564 15,500,033 Plus: dilutive effect of stock options and awards outstanding 76,427 17,281 76,130 22,960 Average number of diluted common shares outstanding (1) 15,041,825 15,441,278 15,025,694 15,522,993 Earnings per share: Basic $ 0.60 $ 0.55 $ 1.24 $ 1.05 Diluted $ 0.60 $ 0.55 $ 1.23 $ 1.04 (1) Average diluted shares outstanding are computed using the treasury stock method. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Information About Derivative Assets and Liabilities | June 30, 2021 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale fundings $ 75,000 3.5 $ (1,386) Other liabilities Interest rate swap on variable rate loans 50,000 4.7 10 Other assets Total cash flow hedges 125,000 (1,376) Fair value hedges: Interest rate swap on securities 37,190 7.0 1,183 Other assets Total fair value hedges 37,190 1,183 Economic hedges: Forward sale commitments 14,635 0.1 (45) Other liabilities Customer Loan Swaps-MNA Counterparty 262,271 6.3 (10,845) Other liabilities Customer Loan Swaps-RPA Counterparty 119,285 7.4 (6,621) Other liabilities Customer Loan Swaps-Customer 381,556 6.6 17,466 Other assets Total economic hedges 777,747 (45) Non-hedging derivatives: Interest rate lock commitments 10,464 0.1 25 Other assets Total non-hedging derivatives 10,464 25 Total $ 950,401 $ (213) December 31, 2020 Weighted Notional Average Fair Value Location Fair Amount Maturity Asset (Liability) Value Asset (in thousands) (in years) (in thousands) (Liability) Cash flow hedges: Interest rate swap on wholesale fundings $ 75,000 4.0 $ (2,664) Other liabilities Total cash flow hedges 75,000 (2,664) Fair value hedges: Interest rate swap on securities 37,190 8.6 2,789 Other assets Total fair value hedges 37,190 2,789 Economic hedges: Forward sale commitments 50,629 0.2 (95) Other liabilities Customer Loan Swaps-MNA Counterparty 235,947 6.8 (15,938) Other liabilities Customer Loan Swaps-RPA Counterparty 119,285 7.9 (9,957) Other liabilities Customer Loan Swaps-Customer 355,232 7.1 25,895 Other assets Total economic hedges 761,093 (95) Non-hedging derivatives: Interest rate lock commitments 3,320 0.1 22 Other assets Total non-hedging derivatives 3,320 22 Total $ 876,603 $ 52 |
Schedule of Amounts Recorded On The Balance Sheet | Cumulative Amount of Fair Location of Hedged Item on Carrying Amount of Hedged Value Hedging Adjustment in Balance Sheet Assets Carrying Amount June 30, 2021 Interest rate swap on securities Securities Available for Sale $ 39,831 $ 2,641 December 31, 2020 Interest rate swap on securities Securities Available for Sale $ 40,209 $ 3,019 |
Schedule of Derivative Instruments Gain (Loss) | Three Months Ended June 30, 2021 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (1,056) Interest expense $ — Interest expense $ (196) Interest rate swap on variable rate loans 221 Interest income — Interest income 89 Total cash flow hedges (835) — (107) Fair value hedges: Interest rate swap on securities 1,288 Interest income — Interest income (140) Total fair value hedges 1,288 — (140) Economic hedges: Forward commitments — Other income — Other income 40 Total economic hedges — — 40 Non-hedging derivatives: Interest rate lock commitments — Other income — Other income (20) Total non-hedging derivatives — — (20) Total $ 453 $ — $ (227) Six Months Ended June 30, 2021 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (981) Interest expense $ — Interest expense $ (384) Interest rate swap on variable rate loans (1,246) Interest income — Interest income 97 Total cash flow hedges (2,227) — (287) Fair value hedges: Interest rate swap on securities (1,525) Interest income — Interest income (276) Total fair value hedges (1,525) — (276) Economic hedges: Forward commitments — Other income — Other income 50 Total economic hedges — — 50 Non-hedging derivatives: Interest rate lock commitments — Other income — Other income 4 Total non-hedging derivatives — — 4 Total $ (3,752) $ — $ (509) The Company expects approximately $323 thousand of losses (pre-tax) related to the Company’s cash flow hedges to be reclassified to earnings from AOCI over the next 12 months. This reclassification is due to anticipated payments that will be made and/or received on the swaps based upon the forward curve as of June 30, 2021. Three Months Ended June 30, 2020 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (644) Interest expense $ — Interest expense $ 217 Total cash flow hedges (644) — 217 Fair value hedges: Interest rate swap on securities 1,122 Interest income — Interest income (23) Total economic hedges 1,122 — (23) Economic hedges: Forward commitments — Other income — Other income (54) Total economic hedges — — (54) Non-hedging derivatives: Interest rate lock commitments — Other income — Other Income (30) Total non-hedging derivatives — — (30) Total $ 478 $ — $ 110 Six Months Ended June 30, 2020 Amount of Amount of Gain (Loss) Gain (Loss) Recognized in Reclassified Location of Amount of Other Location of Gain (Loss) from Other Gain (Loss) Gain (Loss) Comprehensive Reclassified from Other Comprehensive Recognized in Recognized (in thousands) Income Comprehensive Income Income Income in Income Cash flow hedges: Interest rate swap on wholesale funding $ (4,588) Interest expense $ — Interest expense $ 216 Total cash flow hedges (4,588) — 216 Fair value hedges: Interest rate swap on securities 3,335 Interest income — Interest income (41) Total economic hedges 3,335 — (41) Economic hedges: Forward commitments — Other income — Other income (43) Total economic hedges — — (43) Non-hedging derivatives: Interest rate lock commitments — Other income — Other Income 4 Total non-hedging derivatives — — 4 Total $ (1,253) $ — $ 136 |
Schedule of Gain Loss in Statement of Income | Three Months Ended June 30, 2021 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and exepense line items presented in the consolidated statements of income $ 23,191 $ 3,992 $ 2,603 $ 1,826 $ 9,505 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — (196) — Interest rate swap on variable rate loans 89 — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — (140) — — — Three Months Ended June 30, 2020 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and exepense line items presented in the consolidated statements of income $ 26,493 $ 4,942 $ 4,548 $ 2,297 $ 9,710 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — 217 — Interest rate swap on variable rate loans — — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — (23) — — — Six Months Ended June 30, 2021 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and exepense line items presented in the consolidated statements of income $ 47,396 7,971 $ 5,554 3,637 $ 19,753 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — (384) — Interest rate swap on variable rate loans 97 — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — (276) — — — Six Months Ended June 30, 2020 Interest and Dividend Income Interest Expense (in thousands) Loans Securities and other Deposits Borrowings Non-interest Income Income and exepense line items presented in the consolidated statements of income $ 54,480 10,449 $ 10,568 5,208 $ 18,131 The effects of cash flow and fair value hedging: Gain (loss) on cash flow hedges: Interest rate swap on wholesale funding — — — 216 — Interest rate swap on variable rate loans — — — — — Gain (loss) on fair value hedges: Interest rate swap on securities — (41) — — — |
Schedule of Offsetting Liabilities | Gross Amounts Offset in the Consolidated Balance Sheet Derivative Cash Collateral (in thousands) Liabilities Derivative Assets Pledged Net Amount As of June 30, 2021 Customer Loan Derivatives: MNA counterparty $ (10,845) $ 10,845 $ 14,700 $ 14,700 RPA counterparty (6,621) 6,621 — — Total $ (17,466) $ 17,466 $ 14,700 $ 14,700 Gross Amounts Offset in the Consolidated Balance Sheet Derivative Cash Collateral (in thousands) Liabilities Derivative Assets Pledged Net Amount As of December 31, 2020 Customer Loan Derivatives: MNA counterparty $ (15,938) $ 15,938 $ 23,450 $ 23,450 RPA counterparty (9,957) 9,957 — — Total $ (25,895) $ 25,895 $ 23,450 $ 23,450 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | June 30, 2021 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Mortgage-backed securities: US Government-sponsored enterprises $ — $ 198,361 $ — $ 198,361 US Government agency — 66,343 — 66,343 Private label — 73,535 — 73,535 Obligations of states and political subdivisions thereof — 188,153 — 188,153 Corporate bonds — 95,457 — 95,457 Derivative assets — 18,659 25 18,684 Derivative liabilities — (18,852) (45) (18,897) December 31, 2020 Level 1 Level 2 Level 3 Total (in thousands) Inputs Inputs Inputs Fair Value Available for sale securities: Mortgage-backed securities: US Government-sponsored enterprises $ — $ 212,390 $ — $ 212,390 US Government agency — 85,632 — 85,632 Private label — 19,709 — 19,709 Obligations of states and political subdivisions thereof — 169,004 — 169,004 Corporate bonds — 98,311 — 98,311 Derivative assets — 28,684 22 28,706 Derivative liabilities — (28,559) (95) (28,654) |
Schedule of Changes in Level 3 Assets Measured on a Recurring Basis | Assets (Liabilities) Interest Rate Lock Forward (in thousands) Commitments Commitments Three Months Ended June 30, 2021 Balance at beginning of period $ 46 $ (85) Realized gain recognized in non-interest income (21) 40 Balance at end of period $ 25 $ (45) Three Months Ended June 30, 2020 Balance at beginning of period $ 93 $ (73) Realized gain recognized in non-interest income (30) (53) Balance at end of period $ 63 $ (126) Six Months Ended June 30, 2021 Balance at beginning of period $ 22 $ (95) Realized loss recognized in non-interest income 3 50 Balance at end of period $ 25 $ (45) Six Months Ended June 30, 2020 Balance at beginning of period $ 59 $ (84) Realized loss recognized in non-interest income 4 (42) Balance at end of period $ 63 $ (126) |
Schedule of Changes in Level 3 Liabilities Measured on a Recurring Basis | Assets (Liabilities) Interest Rate Lock Forward (in thousands) Commitments Commitments Three Months Ended June 30, 2021 Balance at beginning of period $ 46 $ (85) Realized gain recognized in non-interest income (21) 40 Balance at end of period $ 25 $ (45) Three Months Ended June 30, 2020 Balance at beginning of period $ 93 $ (73) Realized gain recognized in non-interest income (30) (53) Balance at end of period $ 63 $ (126) Six Months Ended June 30, 2021 Balance at beginning of period $ 22 $ (95) Realized loss recognized in non-interest income 3 50 Balance at end of period $ 25 $ (45) Six Months Ended June 30, 2020 Balance at beginning of period $ 59 $ (84) Realized loss recognized in non-interest income 4 (42) Balance at end of period $ 63 $ (126) |
Schedule of Quantitative Information, Valuation, Recurring | Significant Fair Value Fair Value Unobservable (in thousands, except ratios) June 30, 2021 December 31, 2020 Valuation Techniques Unobservable Inputs Input Value Assets (Liabilities) Interest Rate Lock Commitment $ 25 $ 22 Historical trend Closing Ratio 90 % Pricing Model Origination Costs, per loan $ 1.7 Forward Commitments (45) (95) Quoted prices for similar loans in active markets Freddie Mac pricing system Pair-off contract price Total $ (20) $ (73) |
Summary of Applicable Non-Recurring Fair Value Measurements | June 30, 2021 December 31, 2020 Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Fair Value Measurement Date as of June 30, 2021 Level 3 Level 3 Total Total Level 3 (in thousands) Inputs Inputs Gains (Losses) Gains (Losses) Inputs Assets Individually evaluated loans $ 10,348 $ 8,746 $ 208 $ (1,602) June 2021 Capitalized servicing rights 4,731 3,605 (38) (1,126) June 2021 Premises held for sale 971 962 — (9) December 2020 Total $ 16,050 $ 13,313 $ 170 $ (2,737) |
Schedule of Quantitative Information, Valuation, Non-recurring | (in thousands, except ratios) Fair Value June 30, 2021 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 7,226 Fair value of collateral-appraised value Loss severity 10% to 70% Appraised value $71 to $1,792 Individually evaluated loans 3,122 Discount cash flow Discount rate 2.88% to 9.50% Cash flows $7 to $959 Capitalized servicing rights 4,731 Discounted cash flow Constant prepayment rate (CPR) 15.14 Discount rate 9.54 Premises held for sale 971 Fair value of asset less selling costs Appraised value $220 to $386 Selling Costs 6% Total $ 16,050 (b) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties. (c) The carrying value of premises held for sale was $0.0 million as of June 30, 2021 . (in thousands, except ratios) Fair Value Dec 31, 2020 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Individually evaluated loans $ 6,128 Fair value of collateral-appraised value Loss severity 0% to 70% Appraised value $0 to $1730 Individually evaluated loans 2,618 Discount cash flow Discount rate 3.50% to 9.50% Cash flows $19 to $953 Capitalized servicing rights 3,605 Discounted cash flow Constant prepayment rate (CPR) 18.53% Discount rate 10.05% Premises held for sale 962 Fair value of asset less selling costs Appraised value $220 to $386 Selling Costs 6% Total $ 13,313 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties. |
Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments | June 30, 2021 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 173,718 $ 173,718 $ 173,718 $ — $ — Securities available for sale 621,849 621,849 — 621,849 — FHLB stock 14,145 14,145 — 14,145 — Loans held for sale 7,942 7,942 — — 7,942 Net loans 2,492,745 2,472,108 — — 2,472,108 Accrued interest receivable 3,381 3,381 — 3,381 — Cash surrender value of bank-owned life insurance policies 78,886 78,886 — 78,886 — Derivative assets 18,684 18,684 — 18,659 25 Financial Liabilities Non-maturity deposits $ 2,351,715 $ 2,326,202 $ — $ 2,326,202 $ — Time deposits 470,758 469,775 — 469,775 — Securities sold under agreements to repurchase 17,389 17,389 — 17,389 — FHLB advances 262,602 266,290 — 266,290 — Subordinated borrowings 60,042 62,164 — 62,164 — Derivative liabilities 18,897 18,897 — 18,852 45 December 31, 2020 Carrying Fair (in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 226,007 $ 226,007 $ 226,007 $ — $ — Securities available for sale 585,046 585,046 — 585,046 — FHLB stock 14,036 14,036 — 14,036 — Loans held for sale 23,988 24,163 — — 24,163 Net loans 2,543,803 2,547,970 — — 2,547,970 Accrued interest receivable 2,964 2,964 — 2,964 — Cash surrender value of bank-owned life insurance policies 77,870 77,870 — 77,870 — Derivative assets 28,706 28,706 — 28,684 22 Financial Liabilities Non-maturity deposits $ 2,207,854 $ 2,122,222 $ — $ 2,122,222 $ — Time deposits 698,361 694,700 — 694,700 — Short-term other borrowings 27,779 27,779 — 27,779 — FHLB advances 248,283 252,698 — 252,698 — Subordinated borrowings 59,961 57,091 — 57,091 — Derivative liabilities 28,654 28,654 — 28,559 95 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Major Products/Service Lines Trust management fees $ 3,474 $ 2,892 $ 6,649 $ 5,938 Financial services fees 327 267 818 590 Interchange fees 1,915 1,463 3,627 3,200 Customer deposit fees 1,130 789 2,179 1,899 Other customer service fees 212 187 421 452 Total $ 7,058 $ 5,598 $ 13,694 $ 12,079 Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Timing of Revenue Recognition Products and services transferred at a point in time $ 3,570 $ 2,620 $ 6,856 $ 5,892 Products and services transferred over time 3,488 2,978 6,838 6,187 Total $ 7,058 $ 5,598 $ 13,694 $ 12,079 |
Contract Balances from Contracts with Customers | (in thousands) June 30, 2021 December 31, 2020 Balances from contracts with customers only: Other Assets $ 1,190 $ 1,121 Other Liabilities 2,545 2,785 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
ROU Assets and Liabilities | (in thousands) Classification June 30, 2021 December 31, 2020 Lease Right-of-Use Assets Operating lease right-of-use assets Other assets $ 9,773 $ 10,338 Lease Liabilities Operating lease liabilities Other liabilities 10,107 10,627 |
Additional Information Regarding Leases | June 30, 2021 December 31, 2020 Weighted-average remaining lease term (in years) Operating leases 8.80 9.26 Weighted-average discount rate Operating leases 3.15 % 3.15 % Three Months Ended Six Months Ended (in thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Lease Costs Operating lease cost $ 322 $ 323 $ 642 $ 644 Variable lease cost 55 62 136 118 Total lease cost $ 377 $ 385 $ 778 $ 762 |
Future Minimum Payments for Leases | (in thousands) Payments Twelve Months Ended: June 30, 2022 $ 1,307 June 30, 2023 1,319 June 30, 2024 1,327 June 30, 2025 1,176 June 30, 2026 1,073 Thereafter 4,531 Total future minimum lease payments 10,733 Amounts representing interest (626) Present value of net future minimum lease payments $ 10,107 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | Jan. 01, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance on AFS debt securities | $ 0 | $ 0 | |||||
PCD assets | 12,500 | ||||||
PCD assets, allowance | $ 524 | ||||||
Deferred tax | 4,349 | $ 1,745 | |||||
Equity | 415,572 | $ 405,581 | 411,341 | $ 404,174 | $ 403,755 | $ 396,407 | |
Accounting Standards Update 2016-13 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance on AFS debt securities | $ 0 | ||||||
Reserve for unfunded commitments | 359 | ||||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Reserve for unfunded commitments | 1,616 | ||||||
Equity | $ (5,242) |
BASIS OF PRESENTATION - Impact
BASIS OF PRESENTATION - Impact of Adoption (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | $ 2,562,885 | $ 2,515,560 | ||||
Total allowance for credit losses on loans | 19,082 | 22,815 | $ 23,653 | $ 16,509 | $ 15,297 | $ 15,353 |
Decrease to retained earnings | 195,607 | 201,994 | ||||
Commercial real estate non-owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 5,926 | 5,314 | ||||
Tax exempt | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 47,862 | 44,079 | ||||
Total allowance for credit losses on loans | 58 | 91 | 94 | 64 | 57 | 67 |
Home equity | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 100,096 | 90,440 | ||||
Total allowance for credit losses on loans | 285 | 822 | 823 | 318 | 328 | 320 |
Total commercial loans | Commercial construction | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 117,882 | 161,192 | ||||
Total allowance for credit losses on loans | 824 | 2,372 | 1,792 | 532 | 395 | 317 |
Total commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 1,084,381 | |||||
Total commercial real estate | Commercial real estate owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 219,217 | 233,825 | ||||
Total allowance for credit losses on loans | 1,783 | 2,552 | 3,352 | 1,524 | 1,486 | 2,368 |
Total commercial real estate | Commercial real estate non-owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 716,776 | 713,889 | ||||
Total allowance for credit losses on loans | 7,864 | 5,604 | 5,902 | 5,926 | 4,695 | |
Total commercial and industrial | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 441,069 | |||||
Total commercial and industrial | Commercial and industrial | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 355,684 | 370,074 | ||||
Total allowance for credit losses on loans | 3,137 | 5,225 | 5,040 | 3,056 | 3,323 | 3,262 |
Total residential real estate | Residential mortgages | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 995,216 | 891,806 | ||||
Total allowance for credit losses on loans | 5,010 | 6,069 | 6,569 | 4,991 | 4,291 | 4,213 |
Total consumer | Consumer other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 10,152 | 10,255 | ||||
Total allowance for credit losses on loans | 121 | $ 80 | $ 81 | $ 98 | $ 103 | $ 111 |
Post-CECL Adoption Portfolio Segmentation | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 2,562,885 | |||||
Total allowance for credit losses on loans | 24,310 | |||||
Allowance for credit losses on OBS credit exposures | 1,975 | |||||
Total allowance for credit losses | 26,285 | |||||
Post-CECL Adoption Portfolio Segmentation | Commercial construction | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 117,882 | |||||
Total allowance for credit losses on loans | 2,020 | |||||
Post-CECL Adoption Portfolio Segmentation | Commercial real estate owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 219,217 | |||||
Total allowance for credit losses on loans | 2,491 | |||||
Post-CECL Adoption Portfolio Segmentation | Commercial real estate non-owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 716,776 | |||||
Total allowance for credit losses on loans | 5,856 | |||||
Post-CECL Adoption Portfolio Segmentation | Tax exempt | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 47,862 | |||||
Total allowance for credit losses on loans | 98 | |||||
Post-CECL Adoption Portfolio Segmentation | Commercial and industrial | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 355,684 | |||||
Total allowance for credit losses on loans | 6,133 | |||||
Post-CECL Adoption Portfolio Segmentation | Residential mortgages | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 995,216 | |||||
Total allowance for credit losses on loans | 6,742 | |||||
Post-CECL Adoption Portfolio Segmentation | Home equity | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 100,096 | |||||
Total allowance for credit losses on loans | 888 | |||||
Post-CECL Adoption Portfolio Segmentation | Consumer other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 10,152 | |||||
Total allowance for credit losses on loans | 82 | |||||
Impact of CECL Adoption | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 5,228 | |||||
Impact of CECL Adoption | Tax exempt | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 40 | |||||
Impact of CECL Adoption | Home equity | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 603 | |||||
Impact of CECL Adoption | Total commercial loans | Commercial construction | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 1,196 | |||||
Impact of CECL Adoption | Total commercial real estate | Commercial real estate owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 708 | |||||
Impact of CECL Adoption | Total commercial real estate | Commercial real estate non-owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | (2,008) | |||||
Impact of CECL Adoption | Total commercial and industrial | Commercial and industrial | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 2,996 | |||||
Impact of CECL Adoption | Total residential real estate | Residential mortgages | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 1,732 | |||||
Impact of CECL Adoption | Total consumer | Consumer other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | (39) | |||||
Accounting Standards Update 2016-13 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 2,562,885 | |||||
Total allowance for credit losses on loans | 19,082 | |||||
Allowance for credit losses on OBS credit exposures | 359 | |||||
Total allowance for credit losses | 19,441 | |||||
Accounting Standards Update 2016-13 | Commercial construction | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 117,882 | |||||
Total allowance for credit losses on loans | 824 | |||||
Accounting Standards Update 2016-13 | Commercial real estate owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 219,217 | |||||
Total allowance for credit losses on loans | 1,783 | |||||
Accounting Standards Update 2016-13 | Commercial real estate non-owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 716,776 | |||||
Total allowance for credit losses on loans | 7,864 | |||||
Accounting Standards Update 2016-13 | Tax exempt | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 47,862 | |||||
Total allowance for credit losses on loans | 58 | |||||
Accounting Standards Update 2016-13 | Commercial and industrial | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 355,684 | |||||
Total allowance for credit losses on loans | 3,137 | |||||
Accounting Standards Update 2016-13 | Residential mortgages | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 995,216 | |||||
Total allowance for credit losses on loans | 5,010 | |||||
Accounting Standards Update 2016-13 | Home equity | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 100,096 | |||||
Total allowance for credit losses on loans | 285 | |||||
Accounting Standards Update 2016-13 | Consumer other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 10,152 | |||||
Total allowance for credit losses on loans | 121 | |||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 5,228 | |||||
Allowance for credit losses on OBS credit exposures | 1,616 | |||||
Total allowance for credit losses | 6,844 | |||||
Total increase in Allowance for credit losses | 6,844 | |||||
Tax effect | (1,602) | |||||
Decrease to retained earnings | 5,242 | |||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Commercial construction | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 1,196 | |||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Commercial real estate owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 708 | |||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Commercial real estate non-owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | (2,008) | |||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Tax exempt | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 40 | |||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Commercial and industrial | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 2,996 | |||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Residential mortgages | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 1,732 | |||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Home equity | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | 603 | |||||
Accounting Standards Update 2016-13 | Impact of CECL Adoption | Consumer other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total allowance for credit losses on loans | (39) | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 2,562,885 | |||||
Total allowance for credit losses on loans | 19,082 | |||||
Allowance for credit losses on OBS credit exposures | 359 | |||||
Total allowance for credit losses | 19,441 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Commercial construction | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 131,123 | |||||
Total allowance for credit losses on loans | 1,044 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 953,258 | |||||
Total allowance for credit losses on loans | 10,199 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Tax exempt | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 63,431 | |||||
Total allowance for credit losses on loans | 80 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Commercial and industrial | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 377,638 | |||||
Total allowance for credit losses on loans | 3,302 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Residential mortgages | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 923,891 | |||||
Total allowance for credit losses on loans | 4,078 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Home equity | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 102,464 | |||||
Total allowance for credit losses on loans | 258 | |||||
Accounting Standards Update 2016-13 | Pre-CECL Adoption | Consumer other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 11,080 | |||||
Total allowance for credit losses on loans | 121 | |||||
Accounting Standards Update 2016-13 | Reclassification to CECL Portfolio Segmentation | Commercial construction | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | (13,241) | |||||
Total allowance for credit losses on loans | (220) | |||||
Accounting Standards Update 2016-13 | Reclassification to CECL Portfolio Segmentation | Commercial real estate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | (953,258) | |||||
Total allowance for credit losses on loans | (10,199) | |||||
Accounting Standards Update 2016-13 | Reclassification to CECL Portfolio Segmentation | Commercial real estate owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 219,217 | |||||
Total allowance for credit losses on loans | 1,783 | |||||
Accounting Standards Update 2016-13 | Reclassification to CECL Portfolio Segmentation | Commercial real estate non-owner occupied | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 716,776 | |||||
Total allowance for credit losses on loans | 7,864 | |||||
Accounting Standards Update 2016-13 | Reclassification to CECL Portfolio Segmentation | Tax exempt | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | (15,569) | |||||
Total allowance for credit losses on loans | (22) | |||||
Accounting Standards Update 2016-13 | Reclassification to CECL Portfolio Segmentation | Commercial and industrial | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | (21,954) | |||||
Total allowance for credit losses on loans | (165) | |||||
Accounting Standards Update 2016-13 | Reclassification to CECL Portfolio Segmentation | Residential mortgages | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | 71,325 | |||||
Total allowance for credit losses on loans | 932 | |||||
Accounting Standards Update 2016-13 | Reclassification to CECL Portfolio Segmentation | Home equity | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | (2,368) | |||||
Total allowance for credit losses on loans | 27 | |||||
Accounting Standards Update 2016-13 | Reclassification to CECL Portfolio Segmentation | Consumer other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total loans | $ (928) |
SECURITIES AVAILABLE FOR SALE -
SECURITIES AVAILABLE FOR SALE - Summary of Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investment Holdings [Line Items] | ||
Amortized Cost | $ 612,408 | $ 571,977 |
Gross Unrealized Gains | 12,980 | 14,637 |
Gross Unrealized Losses | (3,539) | (1,568) |
Fair Value | 621,849 | 585,046 |
US Government-sponsored enterprises | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 196,476 | 206,834 |
Gross Unrealized Gains | 4,001 | 6,018 |
Gross Unrealized Losses | (2,116) | (462) |
Fair Value | 198,361 | 212,390 |
US Government agency | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 64,693 | 82,878 |
Gross Unrealized Gains | 1,853 | 2,870 |
Gross Unrealized Losses | (203) | (116) |
Fair Value | 66,343 | 85,632 |
Private label | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 73,428 | 19,810 |
Gross Unrealized Gains | 195 | 40 |
Gross Unrealized Losses | (88) | (141) |
Fair Value | 73,535 | 19,709 |
Obligations of states and political subdivisions thereof | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 184,229 | 164,766 |
Gross Unrealized Gains | 4,196 | 4,244 |
Gross Unrealized Losses | (272) | (6) |
Fair Value | 188,153 | 169,004 |
Corporate bonds | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 93,582 | 97,689 |
Gross Unrealized Gains | 2,735 | 1,465 |
Gross Unrealized Losses | (860) | (843) |
Fair Value | $ 95,457 | $ 98,311 |
SECURITIES AVAILABLE FOR SALE_2
SECURITIES AVAILABLE FOR SALE - Maturity of Available for Sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Within 1 year | $ 6,765 | |
Over 1 year to 5 years | 21,738 | |
Over 5 years to 10 years | 68,136 | |
Over 10 years | 181,172 | |
Total bonds and obligations | 277,811 | |
Mortgage-backed securities | 334,597 | |
Amortized Cost | 612,408 | $ 571,977 |
Fair Value | ||
Within 1 year | 6,869 | |
Over 1 year to 5 years | 21,904 | |
Over 5 years to 10 years | 67,171 | |
Over 10 years | 187,666 | |
Total bonds and obligations | 283,610 | |
Mortgage-backed securities | 338,239 | |
Total securities available for sale | $ 621,849 | $ 585,046 |
SECURITIES AVAILABLE FOR SALE_3
SECURITIES AVAILABLE FOR SALE - Gains and Losses from AFS Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
SECURITIES AVAILABLE FOR SALE | ||||
Gross gains on sales of available for sale securities | $ 50 | $ 1,362 | $ 50 | $ 1,508 |
Gross losses on sales of available for sale securities | (11) | (22) | ||
Net gains on sale of available for sale securities | $ 50 | $ 1,351 | $ 50 | $ 1,486 |
SECURITIES AVAILABLE FOR SALE_4
SECURITIES AVAILABLE FOR SALE - Summary of Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Gross Unrealized Losses | ||
Less Than Twelve Months | $ 2,439 | $ 815 |
Over Twelve Months | 1,100 | 753 |
Total | 3,539 | 1,568 |
Fair Value | ||
Less Than Twelve Months | 199,761 | 74,412 |
Over Twelve Months | 23,358 | 38,846 |
Total | 223,119 | 113,258 |
US Government-sponsored enterprises | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 1,879 | 209 |
Over Twelve Months | 237 | 253 |
Total | 2,116 | 462 |
Fair Value | ||
Less Than Twelve Months | 91,739 | 40,285 |
Over Twelve Months | 3,743 | 4,323 |
Total | 95,482 | 44,608 |
US Government agency | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 189 | 45 |
Over Twelve Months | 14 | 71 |
Total | 203 | 116 |
Fair Value | ||
Less Than Twelve Months | 13,512 | 6,776 |
Over Twelve Months | 3,190 | 3,297 |
Total | 16,702 | 10,073 |
Private label | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 83 | |
Over Twelve Months | 5 | 141 |
Total | 88 | 141 |
Fair Value | ||
Less Than Twelve Months | 51,718 | |
Over Twelve Months | 19 | 19,514 |
Total | 51,737 | 19,514 |
Obligations of states and political subdivisions thereof | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 272 | 6 |
Total | 272 | 6 |
Fair Value | ||
Less Than Twelve Months | 35,808 | 5,577 |
Total | 35,808 | 5,577 |
Corporate bonds | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 16 | 555 |
Over Twelve Months | 844 | 288 |
Total | 860 | 843 |
Fair Value | ||
Less Than Twelve Months | 6,984 | 21,774 |
Over Twelve Months | 16,406 | 11,712 |
Total | $ 23,390 | $ 33,486 |
SECURITIES AVAILABLE FOR SALE_5
SECURITIES AVAILABLE FOR SALE - Basis for Impairment Conclusion (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)security | Jan. 01, 2021USD ($) | |
Investment Holdings [Line Items] | ||
Allowance on AFS debt securities | $ | $ 0 | $ 0 |
Accounting Standards Update 2016-13 | ||
Investment Holdings [Line Items] | ||
Allowance on AFS debt securities | $ | $ 0 | |
US Government-sponsored enterprises | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 44 | |
Available for sale securities portfolio, number of securities (security) | 546 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage) | 1.08% | |
US Government agency | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 13 | |
Available for sale securities portfolio, number of securities (security) | 157 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage) | 0.31% | |
Private label | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 17 | |
Available for sale securities portfolio, number of securities (security) | 33 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage) | 0.12% | |
Obligations of states and political subdivisions thereof | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 9 | |
Available for sale securities portfolio, number of securities (security) | 140 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage) | 0.15% | |
Corporate bonds | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 6 | |
Available for sale securities portfolio, number of securities (security) | 31 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses (percentage) | 0.92% |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Total Loans (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 2,515,560 | $ 2,562,885 | ||||
Allowance for credit losses | 22,815 | 19,082 | $ 23,653 | $ 16,509 | $ 15,297 | $ 15,353 |
Net loans | 2,492,745 | 2,543,803 | ||||
Accrued interest receivable for loans | 12,100 | 11,400 | ||||
Commercial real estate non-owner occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses | 5,926 | 5,314 | ||||
Tax exempt | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 44,079 | 47,862 | ||||
Allowance for credit losses | 91 | 58 | 94 | 64 | 57 | 67 |
Net loans | 44,079 | |||||
Home equity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 90,440 | 100,096 | ||||
Allowance for credit losses | $ 822 | $ 285 | 823 | 318 | 328 | 320 |
Paycheck Protection Program [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans outstanding | loan | 1,250 | 746 | ||||
Outstanding principal balance | $ 65,900 | $ 53,800 | ||||
Paycheck Protection Program, Round 2021 [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans outstanding | loan | 1,233 | |||||
Outstanding principal balance | 62,700 | |||||
Total commercial loans | Commercial construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 161,192 | 117,882 | ||||
Allowance for credit losses | 2,372 | 824 | 1,792 | 532 | 395 | 317 |
Net loans | 161,192 | |||||
Total commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 1,084,381 | |||||
Total commercial real estate | Commercial real estate owner occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 233,825 | 219,217 | ||||
Allowance for credit losses | 2,552 | 1,783 | 3,352 | 1,524 | 1,486 | 2,368 |
Net loans | 233,825 | |||||
Total commercial real estate | Commercial real estate non-owner occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 713,889 | 716,776 | ||||
Allowance for credit losses | 5,604 | 7,864 | 5,902 | 5,926 | 4,695 | |
Net loans | 713,889 | |||||
Total commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 441,069 | |||||
Total commercial and industrial | Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 370,074 | 355,684 | ||||
Allowance for credit losses | 5,225 | 3,137 | 5,040 | 3,056 | 3,323 | 3,262 |
Net loans | 370,074 | |||||
Total residential real estate | Residential mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 891,806 | 995,216 | ||||
Allowance for credit losses | 6,069 | 5,010 | 6,569 | 4,991 | 4,291 | 4,213 |
Total consumer | Consumer other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 10,255 | 10,152 | ||||
Allowance for credit losses | $ 80 | $ 121 | $ 81 | $ 98 | $ 103 | $ 111 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Unamortized Net Costs and Premiums (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Unamortized net loan origination costs | $ 3,336 | $ 5,157 |
Unamortized net premium on purchased loans | (77) | (85) |
Total unamortized net costs and premiums | $ 3,259 | $ 5,072 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Activity in the allowance for loan losses | ||||
Balance at beginning of period | $ 23,653 | $ 15,297 | $ 19,082 | $ 15,353 |
Charged-off loans | (239) | (220) | (455) | (1,431) |
Recoveries on charged-off loans | 166 | 78 | 214 | 122 |
Provision for credit losses | (765) | 1,354 | (1,254) | 2,465 |
Balance at end of period | 22,815 | 16,509 | 22,815 | 16,509 |
Impact of CECL Adoption | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 5,228 | |||
Commercial construction | Total commercial loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 1,792 | 395 | 824 | 317 |
Recoveries on charged-off loans | 18 | |||
Provision for credit losses | 580 | 137 | 334 | 215 |
Balance at end of period | 2,372 | 532 | 2,372 | 532 |
Commercial construction | Total commercial loans | Impact of CECL Adoption | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 1,196 | |||
Commercial real estate owner occupied | Total commercial real estate | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 3,352 | 1,486 | 1,783 | 2,368 |
Charged-off loans | (108) | (261) | ||
Recoveries on charged-off loans | 2 | 2 | ||
Provision for credit losses | (694) | 38 | 320 | (844) |
Balance at end of period | 2,552 | 1,524 | 2,552 | 1,524 |
Commercial real estate owner occupied | Total commercial real estate | Impact of CECL Adoption | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 708 | |||
Commercial real estate non-owner occupied | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 5,314 | |||
Recoveries on charged-off loans | 71 | |||
Provision for credit losses | 541 | |||
Balance at end of period | 5,926 | 5,926 | ||
Commercial real estate non-owner occupied | Total commercial real estate | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 5,902 | 7,864 | 4,695 | |
Charged-off loans | (825) | |||
Recoveries on charged-off loans | 4 | 50 | ||
Provision for credit losses | (298) | (256) | 2,006 | |
Balance at end of period | 5,604 | 5,926 | 5,604 | 5,926 |
Commercial real estate non-owner occupied | Total commercial real estate | Impact of CECL Adoption | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | (2,008) | |||
Tax exempt | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 94 | 57 | 58 | 67 |
Provision for credit losses | (3) | 7 | (7) | (3) |
Balance at end of period | 91 | 64 | 91 | 64 |
Tax exempt | Impact of CECL Adoption | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 40 | |||
Commercial and industrial | Total commercial and industrial | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 5,040 | 3,323 | 3,137 | 3,262 |
Charged-off loans | (20) | (160) | (20) | (375) |
Recoveries on charged-off loans | 13 | 5 | 14 | 50 |
Provision for credit losses | 192 | (112) | (902) | 119 |
Balance at end of period | 5,225 | 3,056 | 5,225 | 3,056 |
Commercial and industrial | Total commercial and industrial | Impact of CECL Adoption | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 2,996 | |||
Residential mortgages | Total residential real estate | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 6,569 | 4,291 | 5,010 | 4,213 |
Charged-off loans | (21) | (20) | (61) | (31) |
Recoveries on charged-off loans | 109 | 122 | 10 | |
Provision for credit losses | (588) | 720 | (734) | 799 |
Balance at end of period | 6,069 | 4,991 | 6,069 | 4,991 |
Residential mortgages | Total residential real estate | Impact of CECL Adoption | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 1,732 | |||
Home equity | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 823 | 328 | 285 | 320 |
Charged-off loans | (32) | (54) | ||
Recoveries on charged-off loans | 36 | 47 | ||
Provision for credit losses | (5) | (10) | (59) | (2) |
Balance at end of period | 822 | 318 | 822 | 318 |
Home equity | Impact of CECL Adoption | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 603 | |||
Consumer other | Total consumer | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 81 | 103 | 121 | 111 |
Charged-off loans | (58) | (40) | (59) | (200) |
Recoveries on charged-off loans | 6 | 2 | 7 | 12 |
Provision for credit losses | 51 | 33 | 50 | 175 |
Balance at end of period | 80 | 98 | 80 | 98 |
Consumer other | Total consumer | Impact of CECL Adoption | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | (39) | |||
Unfunded Loan Commitment | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 1,819 | 359 | 359 | 314 |
Provision for credit losses | 102 | (40) | (156) | 5 |
Balance at end of period | $ 1,921 | $ 319 | 1,921 | $ 319 |
Unfunded Loan Commitment | Impact of CECL Adoption | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | $ 1,616 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans by Credit Risk Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Credit quality information | ||
2021 | $ 269,930 | |
2020 | 435,784 | |
2019 | 347,530 | |
2018 | 235,934 | |
2017 | 329,871 | |
Prior | 896,511 | |
Total | 2,492,745 | $ 2,543,803 |
Total | 2,515,560 | 2,562,885 |
Total commercial real estate | ||
Credit quality information | ||
Total | 1,084,381 | |
Total commercial and industrial | ||
Credit quality information | ||
Total | 441,069 | |
Residential real estate | ||
Credit quality information | ||
Total | 923,891 | |
Consumer | ||
Credit quality information | ||
Total | 113,544 | |
Performing | ||
Credit quality information | ||
Total | 1,026,939 | |
Performing | Residential real estate | ||
Credit quality information | ||
Total | 914,749 | |
Performing | Consumer | ||
Credit quality information | ||
Total | 112,190 | |
Nonperforming | ||
Credit quality information | ||
Total | 10,496 | |
Nonperforming | Residential real estate | ||
Credit quality information | ||
Total | 9,142 | |
Nonperforming | Consumer | ||
Credit quality information | ||
Total | 1,354 | |
Pass | ||
Credit quality information | ||
Total | 1,475,789 | |
Pass | Total commercial real estate | ||
Credit quality information | ||
Total | 1,053,773 | |
Pass | Total commercial and industrial | ||
Credit quality information | ||
Total | 422,016 | |
Special mention | ||
Credit quality information | ||
Total | 8,846 | |
Special mention | Total commercial real estate | ||
Credit quality information | ||
Total | 6,075 | |
Special mention | Total commercial and industrial | ||
Credit quality information | ||
Total | 2,771 | |
Substandard | ||
Credit quality information | ||
Total | 37,447 | |
Substandard | Total commercial real estate | ||
Credit quality information | ||
Total | 22,267 | |
Substandard | Total commercial and industrial | ||
Credit quality information | ||
Total | 15,180 | |
Doubtful | ||
Credit quality information | ||
Total | 3,365 | |
Doubtful | Total commercial real estate | ||
Credit quality information | ||
Total | 2,265 | |
Doubtful | Total commercial and industrial | ||
Credit quality information | ||
Total | 1,100 | |
Loss | ||
Credit quality information | ||
Total | 3 | |
Loss | Total commercial real estate | ||
Credit quality information | ||
Total | 1 | |
Loss | Total commercial and industrial | ||
Credit quality information | ||
Total | 2 | |
Commercial construction | Total commercial loans | ||
Credit quality information | ||
2021 | 12,778 | |
2020 | 68,262 | |
2019 | 53,760 | |
2018 | 26,392 | |
Total | 161,192 | |
Total | 161,192 | 117,882 |
Commercial construction | Pass | Total commercial loans | ||
Credit quality information | ||
2021 | 12,778 | |
2020 | 68,262 | |
2019 | 53,760 | |
2018 | 26,392 | |
Total | 161,192 | |
Commercial real estate owner occupied | Total commercial real estate | ||
Credit quality information | ||
2021 | 4,866 | |
2020 | 15,555 | |
2019 | 36,584 | |
2018 | 30,802 | |
2017 | 21,030 | |
Prior | 124,988 | |
Total | 233,825 | |
Total | 233,825 | 219,217 |
Commercial real estate owner occupied | Pass | Total commercial real estate | ||
Credit quality information | ||
2021 | 4,866 | |
2020 | 15,555 | |
2019 | 35,811 | |
2018 | 30,353 | |
2017 | 20,769 | |
Prior | 112,798 | |
Total | 220,152 | |
Commercial real estate owner occupied | Special mention | Total commercial real estate | ||
Credit quality information | ||
2019 | 773 | |
Prior | 1,618 | |
Total | 2,391 | |
Commercial real estate owner occupied | Substandard | Total commercial real estate | ||
Credit quality information | ||
2018 | 261 | |
2017 | 261 | |
Prior | 10,397 | |
Total | 10,919 | |
Commercial real estate owner occupied | Doubtful | Total commercial real estate | ||
Credit quality information | ||
2018 | 188 | |
Prior | 175 | |
Total | 363 | |
Commercial real estate non-owner occupied | Total commercial real estate | ||
Credit quality information | ||
2021 | 65,282 | |
2020 | 148,198 | |
2019 | 98,572 | |
2018 | 42,121 | |
2017 | 150,242 | |
Prior | 209,474 | |
Total | 713,889 | |
Total | 713,889 | 716,776 |
Commercial real estate non-owner occupied | Pass | Total commercial real estate | ||
Credit quality information | ||
2021 | 65,282 | |
2020 | 148,198 | |
2019 | 98,572 | |
2018 | 41,971 | |
2017 | 150,092 | |
Prior | 204,405 | |
Total | 708,520 | |
Commercial real estate non-owner occupied | Special mention | Total commercial real estate | ||
Credit quality information | ||
Prior | 1,472 | |
Total | 1,472 | |
Commercial real estate non-owner occupied | Substandard | Total commercial real estate | ||
Credit quality information | ||
2018 | 150 | |
2017 | 150 | |
Prior | 3,408 | |
Total | 3,708 | |
Commercial real estate non-owner occupied | Doubtful | Total commercial real estate | ||
Credit quality information | ||
Prior | 189 | |
Total | 189 | |
Tax exempt | ||
Credit quality information | ||
2021 | 833 | |
2020 | 338 | |
2019 | 1,125 | |
2018 | 14,790 | |
2017 | 5,463 | |
Prior | 21,530 | |
Total | 44,079 | |
Total | 44,079 | 47,862 |
Tax exempt | Pass | ||
Credit quality information | ||
2021 | 833 | |
2020 | 338 | |
2019 | 1,125 | |
2018 | 14,790 | |
2017 | 5,463 | |
Prior | 21,530 | |
Total | 44,079 | |
Commercial and industrial | Total commercial and industrial | ||
Credit quality information | ||
2021 | 115,131 | |
2020 | 60,063 | |
2019 | 40,296 | |
2018 | 33,481 | |
2017 | 67,306 | |
Prior | 53,797 | |
Total | 370,074 | |
Total | 370,074 | 355,684 |
Commercial and industrial | Pass | Total commercial and industrial | ||
Credit quality information | ||
2021 | 114,688 | |
2020 | 59,804 | |
2019 | 38,907 | |
2018 | 17,769 | |
2017 | 66,905 | |
Prior | 51,081 | |
Total | 349,154 | |
Commercial and industrial | Special mention | Total commercial and industrial | ||
Credit quality information | ||
2021 | 345 | |
2020 | 259 | |
2019 | 806 | |
2018 | 702 | |
2017 | 215 | |
Prior | 1,105 | |
Total | 3,432 | |
Commercial and industrial | Substandard | Total commercial and industrial | ||
Credit quality information | ||
2021 | 98 | |
2019 | 583 | |
2018 | 15,010 | |
2017 | 57 | |
Prior | 1,252 | |
Total | 17,000 | |
Commercial and industrial | Doubtful | Total commercial and industrial | ||
Credit quality information | ||
2017 | 129 | |
Prior | 359 | |
Total | 488 | |
Residential mortgages | Residential real estate | ||
Credit quality information | ||
2021 | 62,479 | |
2020 | 130,710 | |
2019 | 105,016 | |
2018 | 79,147 | |
2017 | 78,258 | |
Prior | 436,196 | |
Total | 891,806 | |
Residential mortgages | Performing | Residential real estate | ||
Credit quality information | ||
2021 | 62,479 | |
2020 | 130,710 | |
2019 | 105,016 | |
2018 | 78,567 | |
2017 | 77,987 | |
Prior | 428,092 | |
Total | 882,851 | |
Residential mortgages | Nonperforming | Residential real estate | ||
Credit quality information | ||
2018 | 580 | |
2017 | 271 | |
Prior | 8,104 | |
Total | 8,955 | |
Home equity | ||
Credit quality information | ||
2021 | 5,888 | |
2020 | 10,270 | |
2019 | 10,912 | |
2018 | 8,305 | |
2017 | 7,203 | |
Prior | 47,862 | |
Total | 90,440 | $ 100,096 |
Home equity | Performing | ||
Credit quality information | ||
2021 | 5,888 | |
2020 | 10,270 | |
2019 | 10,912 | |
2018 | 8,305 | |
2017 | 7,203 | |
Prior | 46,618 | |
Total | 89,196 | |
Home equity | Nonperforming | ||
Credit quality information | ||
Prior | 1,244 | |
Total | 1,244 | |
Consumer other | Consumer | ||
Credit quality information | ||
2021 | 2,673 | |
2020 | 2,388 | |
2019 | 1,265 | |
2018 | 896 | |
2017 | 369 | |
Prior | 2,664 | |
Total | 10,255 | |
Consumer other | Performing | Consumer | ||
Credit quality information | ||
2021 | 2,673 | |
2020 | 2,388 | |
2019 | 1,265 | |
2018 | 896 | |
2017 | 369 | |
Prior | 2,657 | |
Total | 10,248 | |
Consumer other | Nonperforming | Consumer | ||
Credit quality information | ||
Prior | 7 | |
Total | $ 7 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 7,963 | $ 21,403 |
Current | 2,507,597 | 2,541,482 |
Total loans | 2,515,560 | 2,562,885 |
Past Due More Than 90 days and Accruing | 473 | 267 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,811 | 12,307 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,389 | 4,263 |
90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,763 | 4,833 |
Total commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,084,381 | |
Total commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 441,069 | |
Commercial construction | Total commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 75 | |
Current | 161,192 | 117,807 |
Total loans | 161,192 | 117,882 |
Commercial construction | Total commercial loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 74 | |
Commercial construction | Total commercial loans | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1 | |
Commercial real estate owner occupied | Total commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 652 | 2,211 |
Current | 233,173 | 217,006 |
Total loans | 233,825 | 219,217 |
Commercial real estate owner occupied | Total commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 573 | 1,309 |
Commercial real estate owner occupied | Total commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 8 | 464 |
Commercial real estate owner occupied | Total commercial real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 71 | 438 |
Commercial real estate non-owner occupied | Total commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,035 | 1,801 |
Current | 712,854 | 714,975 |
Total loans | 713,889 | 716,776 |
Commercial real estate non-owner occupied | Total commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 442 | 503 |
Commercial real estate non-owner occupied | Total commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 148 | 674 |
Commercial real estate non-owner occupied | Total commercial real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 445 | 624 |
Tax exempt | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 44,079 | 47,862 |
Total loans | 44,079 | 47,862 |
Commercial and industrial | Total commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 252 | 354 |
Current | 369,822 | 355,330 |
Total loans | 370,074 | 355,684 |
Commercial and industrial | Total commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 161 | |
Commercial and industrial | Total commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 47 | |
Commercial and industrial | Total commercial and industrial | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 205 | 193 |
Residential mortgages | Total residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,117 | 14,889 |
Current | 886,689 | 980,327 |
Total loans | 891,806 | 995,216 |
Past Due More Than 90 days and Accruing | 449 | |
Residential mortgages | Total residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 300 | 9,178 |
Residential mortgages | Total residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 926 | 2,511 |
Residential mortgages | Total residential real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,891 | 3,200 |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 885 | 2,051 |
Current | 89,555 | 98,045 |
Total loans | 90,440 | 100,096 |
Past Due More Than 90 days and Accruing | 24 | 267 |
Home equity | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 475 | 1,062 |
Home equity | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 259 | 614 |
Home equity | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 151 | 375 |
Consumer other | Total consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 22 | 22 |
Current | 10,233 | 10,130 |
Total loans | 10,255 | 10,152 |
Consumer other | Total consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 21 | 20 |
Consumer other | Total consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 1 | |
Consumer other | Total consumer | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 2 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Non-accrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Non-accrual loans | ||
Total loans | $ 13,579 | $ 11,550 |
Nonaccrual With No Related Allowance | 6,265 | 8,464 |
Nonaccrual, Past Due 90 days and Accruing | 473 | 267 |
Commercial construction | Total commercial loans | ||
Non-accrual loans | ||
Total loans | 258 | |
Commercial real estate owner occupied | Total commercial real estate | ||
Non-accrual loans | ||
Total loans | 1,316 | 2,400 |
Nonaccrual With No Related Allowance | 917 | 929 |
Commercial real estate non-owner occupied | Total commercial real estate | ||
Non-accrual loans | ||
Total loans | 1,105 | 383 |
Nonaccrual With No Related Allowance | 845 | 118 |
Commercial and industrial | Total commercial and industrial | ||
Non-accrual loans | ||
Total loans | 952 | 1,223 |
Nonaccrual With No Related Allowance | 583 | 1,065 |
Residential mortgages | Total residential real estate | ||
Non-accrual loans | ||
Total loans | 8,955 | 5,883 |
Nonaccrual With No Related Allowance | 3,594 | 4,948 |
Nonaccrual, Past Due 90 days and Accruing | 449 | |
Home equity | ||
Non-accrual loans | ||
Total loans | 1,244 | 1,345 |
Nonaccrual With No Related Allowance | 326 | 1,346 |
Nonaccrual, Past Due 90 days and Accruing | 24 | 267 |
Consumer other | Total consumer | ||
Non-accrual loans | ||
Total loans | $ 7 | 58 |
Nonaccrual With No Related Allowance | $ 58 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans Evaluated for Impairment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | $ 2,492,745 | $ 2,543,803 |
Real Estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 13,178 | 13,693 |
Other | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 401 | 607 |
Commercial construction | Total commercial loans | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 161,192 | |
Commercial construction | Total commercial loans | Real Estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 259 | |
Commercial real estate owner occupied | Total commercial real estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 233,825 | |
Commercial real estate owner occupied | Total commercial real estate | Real Estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 1,316 | 3,441 |
Commercial real estate non-owner occupied | Total commercial real estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 713,889 | |
Commercial real estate non-owner occupied | Total commercial real estate | Real Estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 1,105 | 383 |
Tax exempt | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 44,079 | |
Commercial and industrial | Total commercial and industrial | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 370,074 | |
Commercial and industrial | Total commercial and industrial | Real Estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 551 | 625 |
Commercial and industrial | Total commercial and industrial | Other | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 401 | 607 |
Residential mortgages | Total residential real estate | Real Estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 8,955 | 7,432 |
Home equity | Real Estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | 1,244 | 1,493 |
Consumer other | Total consumer | Real Estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Net Amount | $ 7 | $ 60 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2021 | |
Recorded Investment | ||
Total | $ 9,605 | |
Unpaid Principal Balance | ||
Total | 10,228 | |
Related Allowance | ||
With an allowance recorded | 1,513 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment | 8,067 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | ||
Interest Income Recognized | 78 | |
Specific reserve for loans individually evaluated, threshold | $ 150 | |
Commercial construction | ||
Recorded Investment | ||
With an allowance recorded | 258 | |
Unpaid Principal Balance | ||
With an allowance recorded | 258 | |
Related Allowance | ||
With an allowance recorded | 205 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average recorded investment, with related allowance | 203 | |
Other commercial real estate | ||
Recorded Investment | ||
With no related allowance | 2,001 | |
With an allowance recorded | 1,963 | |
Unpaid Principal Balance | ||
With no related allowance | 2,047 | |
With an allowance recorded | 2,108 | |
Related Allowance | ||
With an allowance recorded | 1,038 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average recorded investment, with no related allowance | 1,610 | |
Average recorded investment, with related allowance | 1,973 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | ||
Interest income recognized, with related allowance | 17 | |
Commercial | ||
Recorded Investment | ||
With no related allowance | 1,095 | |
With an allowance recorded | 282 | |
Unpaid Principal Balance | ||
With no related allowance | 1,254 | |
With an allowance recorded | 289 | |
Related Allowance | ||
With an allowance recorded | 164 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average recorded investment, with no related allowance | 1,140 | |
Average recorded investment, with related allowance | 73 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | ||
Interest income recognized, with no related allowance | 4 | |
Agricultural | ||
Recorded Investment | ||
With no related allowance | 361 | |
Unpaid Principal Balance | ||
With no related allowance | 150 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average recorded investment, with no related allowance | 114 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | ||
Interest income recognized, with no related allowance | 2 | |
Residential mortgages | ||
Recorded Investment | ||
With no related allowance | 2,745 | |
With an allowance recorded | 887 | |
Unpaid Principal Balance | ||
With no related allowance | 3,165 | |
With an allowance recorded | 944 | |
Related Allowance | ||
With an allowance recorded | 106 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average recorded investment, with no related allowance | 1,077 | |
Average recorded investment, with related allowance | 1,865 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | ||
Interest income recognized, with no related allowance | 17 | |
Interest income recognized, with related allowance | 37 | |
Home equity | ||
Recorded Investment | ||
With an allowance recorded | 13 | |
Unpaid Principal Balance | ||
With an allowance recorded | 13 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average recorded investment, with related allowance | 12 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | ||
Interest income recognized, with related allowance | 1 | |
Total commercial real estate | ||
Recorded Investment | ||
Total | 4,222 | |
Unpaid Principal Balance | ||
Total | 4,413 | |
Related Allowance | ||
With an allowance recorded | 1,243 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment | 3,786 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | ||
Interest Income Recognized | 17 | |
Total commercial and industrial | ||
Recorded Investment | ||
Total | 1,738 | |
Unpaid Principal Balance | ||
Total | 1,693 | |
Related Allowance | ||
With an allowance recorded | 164 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment | 1,327 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | ||
Interest Income Recognized | 6 | |
Total residential real estate | ||
Recorded Investment | ||
Total | 3,632 | |
Unpaid Principal Balance | ||
Total | 4,109 | |
Related Allowance | ||
With an allowance recorded | 106 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment | 2,942 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | ||
Interest Income Recognized | 54 | |
Total consumer | ||
Recorded Investment | ||
Total | 13 | |
Unpaid Principal Balance | ||
Total | 13 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Average Recorded Investment | 12 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | ||
Interest Income Recognized | $ 1 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDR, Recorded Investment and Number of Modifications (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021loan | Jun. 30, 2020loan | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | Dec. 31, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Borrower's sustained repayment performance period | 6 months | ||||
Number of Modifications | 0 | 0 | 0 | 6 | |
Pre-Modification Outstanding Recorded Investment | $ 130 | ||||
Post-Modification Outstanding Recorded Investment | $ 482 | ||||
Number of modifications which subsequently defaulted | loan | 0 | ||||
Interest rate, forbearance and maturity concession | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | loan | 4 | ||||
Post-Modification Outstanding Recorded Investment | $ 448 | ||||
Forbearance and interest only payments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | loan | 1 | ||||
Post-Modification Outstanding Recorded Investment | $ 25 | ||||
Maturity concession | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | loan | 1 | ||||
Post-Modification Outstanding Recorded Investment | $ 9 | ||||
Home equity | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | loan | 1 | ||||
Pre-Modification Outstanding Recorded Investment | $ 26 | ||||
Post-Modification Outstanding Recorded Investment | $ 25 | ||||
Total commercial real estate | Commercial real estate non-owner occupied | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | loan | 1 | ||||
Pre-Modification Outstanding Recorded Investment | $ 54 | ||||
Post-Modification Outstanding Recorded Investment | $ 252 | ||||
Total commercial and industrial | Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | loan | 3 | ||||
Pre-Modification Outstanding Recorded Investment | $ 41 | ||||
Post-Modification Outstanding Recorded Investment | $ 196 | ||||
Total residential real estate | Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Residential mortgage loans collateralized by real estate property in the process of foreclosure | $ 1,100 | $ 917 | |||
Total consumer | Consumer other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | loan | 1 | ||||
Pre-Modification Outstanding Recorded Investment | $ 9 | ||||
Post-Modification Outstanding Recorded Investment | $ 9 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Mortgage Banking (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total residential loans included in held for sale loans | $ 7,942 | $ 23,988 |
Residential mortgages | Total residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total residential loans included in held for sale loans | 7,900 | 24,000 |
Forward delivery commitments | 14,600 | 50,600 |
Sale of loans | 56,100 | 70,400 |
Net gains on sales of loans | $ 2,900 | $ 2,200 |
BORROWED FUNDS - Summary of Bor
BORROWED FUNDS - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Short-term borrowings | ||
Carrying Value | $ 97,389 | $ 93,455 |
Weighted Average Rate | 0.19% | 0.44% |
Long-term borrowings | ||
Carrying Value | $ 242,644 | $ 242,568 |
Weighted Average Rate | 2.39% | 2.37% |
Total borrowings | $ 340,033 | $ 336,023 |
Weighted Average Rate | 1.13% | 1.41% |
Advances from the FHLB | ||
Short-term borrowings | ||
Carrying Value | $ 80,000 | $ 65,676 |
Weighted Average Rate | 0.39% | 1.19% |
Long-term borrowings | ||
Carrying Value | $ 182,602 | $ 182,607 |
Weighted Average Rate | 1.73% | 1.73% |
Other borrowings | ||
Short-term borrowings | ||
Carrying Value | $ 17,389 | $ 27,779 |
Weighted Average Rate | 0.13% | 0.15% |
Subordinated borrowings | ||
Long-term borrowings | ||
Carrying Value | $ 60,042 | $ 59,961 |
Weighted Average Rate | 4.41% | 4.34% |
BORROWED FUNDS - Additional Inf
BORROWED FUNDS - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Outstanding advances of FRB | $ 97,389 | $ 93,455 |
Outstanding amount | 242,644 | 242,568 |
Financial Guarantee | NHTB Capital Trust II and NHTB Capital Trust III | ||
Debt Instrument [Line Items] | ||
Debentures issued by variable interest entities | $ 20,600 | |
LIBOR | Financial Guarantee | ||
Debt Instrument [Line Items] | ||
Interest rate margin | 2.79% | |
Callable Advances | ||
Debt Instrument [Line Items] | ||
Outstanding amount | $ 20,000 | 20,000 |
Amortizing Advances | ||
Debt Instrument [Line Items] | ||
Outstanding amount | 302 | 307,000 |
Advances from the FHLB | ||
Debt Instrument [Line Items] | ||
Line of credit maintained | 1,000 | |
Outstanding balance on the FHLB line of credit | 0 | 0 |
Outstanding advances of FRB | 80,000 | 65,676 |
Outstanding amount | 182,602 | 182,607 |
Federal Reserve Bank Advances | ||
Debt Instrument [Line Items] | ||
Line of credit maintained | 74,300 | |
Outstanding advances of FRB | 0 | 0 |
Federal Reserve Bank Advances | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Line of credit maintained | 50,000 | 50,000 |
Outstanding balance on unused unsecured federal funds line of credit | $ 0 | $ 0 |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of FHLB Advances (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Amount | |
2021 | $ 80,000 |
2022 | 75,000 |
2023 | 80,000 |
2024 | 7,300 |
2025 | 20,000 |
2026 and thereafter | 302 |
Total FHLB advances | $ 262,602 |
Weighted Average Rate | |
2021 | 0.39% |
2022 | 1.87% |
2023 | 1.77% |
2024 | 1.16% |
2025 | 1.21% |
2026 and thereafter | 2.58% |
Total FHLB advances | 1.32% |
BORROWED FUNDS - Subordinated a
BORROWED FUNDS - Subordinated and Junior Subordinated Borrowings (Details) - Subordinated borrowings - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Nov. 26, 2019 | |
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 659 | ||
Principal amount of debt issued | $ 40,000 | ||
Fixed interest rate | 4.625% | ||
Debt issuance costs | $ 578 | ||
SOFR | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 3.27% |
DEPOSITS - Components (Details)
DEPOSITS - Components (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Time less than $100,000 | $ 203,004 | $ 325,646 |
Time $100,000 through $250,000 | 194,247 | 278,940 |
Time $250,000 or more | 73,507 | 93,775 |
Total | $ 470,758 | $ 698,361 |
DEPOSITS - Maturities, Brokered
DEPOSITS - Maturities, Brokered, Reciprocal (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
Within 1 year | $ 361,912 | $ 574,007 |
Over 1 year to 2 years | 58,910 | 61,584 |
Over 2 years to 3 years | 32,910 | 41,145 |
Over 3 years to 4 years | 10,074 | 12,875 |
Over 4 years to 5 years | 6,870 | 8,728 |
Over 5 years | 82 | 22 |
Total | 470,758 | 698,361 |
Brokered deposits | 31,400 | 193,700 |
Reciprocal deposits | $ 185,000 | $ 125,000 |
CAPITAL RATIOS AND SHAREHOLDE_3
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Actual and Required Capital Ratios (Details) | Jun. 30, 2021 | Dec. 31, 2020 | Jan. 01, 2019 |
Actual | |||
Total capital to risk-weighted assets, ratio | 13.95 | 13.56 | |
Common equity tier 1 capital to risk-weighted assets, ratio | 10.72 | 10.49 | |
Tier 1 capital to risk-weighted assets, ratio | 11.51 | 11.28 | |
Tier 1 capital to average assets, ratio | 8.36 | 8.12 | |
Capital Required For Capital Adequacy [Abstract] | |||
Regulatory minimum to be well capitalized, Total capital to risk-weighted assets, ratio | 10.50 | 10.50 | |
Regulatory minimum to be well capitalized, Common equity tier 1 capital to risk-weighted assets, ratio | 7.00% | 7.00% | |
Regulatory minimum to be well capitalized, Tier 1 capital to risk-weighted assets, ratio | 8.50 | 8.50 | |
Regulatory minimum to be well capitalized, Tier 1 capital to average assets, ratio | 5 | 5 | |
Bank | |||
Actual | |||
Total capital to risk-weighted assets, ratio | 13.78 | 13.27 | |
Common equity tier 1 capital to risk-weighted assets, ratio | 12.86 | 12.52 | |
Tier 1 capital to risk-weighted assets, ratio | 12.86 | 12.52 | |
Tier 1 capital to average assets, ratio | 9.34 | 9.02 | |
Capital Required For Capital Adequacy [Abstract] | |||
Regulatory minimum to be well capitalized, Total capital to risk-weighted assets, ratio | 10.50 | 10.50 | |
Regulatory minimum to be well capitalized, Common equity tier 1 capital to risk-weighted assets, ratio | 7.00% | 7.00% | 7.00% |
Regulatory minimum to be well capitalized, Tier 1 capital to risk-weighted assets, ratio | 8.50 | 8.50 | 8.5 |
Regulatory minimum to be well capitalized, Tier 1 capital to average assets, ratio | 5 | 5 | 10.5 |
CAPITAL RATIOS AND SHAREHOLDE_4
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of AOCI (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income | $ 7,694 | $ 11,016 | ||||
Net unrealized gain (loss) on AFS securities | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income, before tax: | 9,441 | 13,069 | ||||
Income taxes related to items of accumulated other comprehensive income: | (2,204) | (3,046) | ||||
Accumulated other comprehensive income | 7,237 | $ 4,510 | 10,023 | $ 11,412 | $ 9,560 | $ 5,459 |
Net unrealized gain (loss) on hedging derivatives | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income, before tax: | 2,448 | 3,144 | ||||
Income taxes related to items of accumulated other comprehensive income: | (573) | (733) | ||||
Accumulated other comprehensive income | 1,875 | 372 | 2,411 | (1,734) | (2,213) | (391) |
Net unrealized gain (loss) on post-retirement plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income, before tax: | (1,850) | (1,850) | ||||
Income taxes related to items of accumulated other comprehensive income: | 432 | 432 | ||||
Accumulated other comprehensive income | $ (1,418) | $ (1,418) | $ (1,418) | $ (1,157) | $ (1,157) | $ (1,157) |
CAPITAL RATIOS AND SHAREHOLDE_5
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net unrealized gain (loss) arising during the period | ||||||
Before Tax | $ 453 | $ 478 | $ (3,752) | $ (1,253) | ||
Other comprehensive income | ||||||
Before Tax | 5,520 | 3,047 | (4,324) | 6,023 | ||
Tax Effect | (1,290) | (716) | 1,002 | (1,413) | ||
Total other comprehensive income (loss) | 4,230 | $ (7,552) | 2,331 | $ 2,279 | (3,322) | 4,610 |
Net unrealized gain (loss) on AFS securities | ||||||
Net unrealized gain (loss) arising during the period | ||||||
Before Tax | 3,607 | 3,772 | (3,578) | 9,148 | ||
Tax Effect | (842) | (891) | 830 | (2,064) | ||
Net of Tax | 2,765 | 2,881 | (2,748) | 7,084 | ||
Less: reclassification adjustment for gains (losses) realized in net income | ||||||
Before Tax | 50 | 1,351 | 50 | 1,486 | ||
Tax Effect | (12) | (322) | (12) | (355) | ||
Net of Tax | 38 | 1,029 | 38 | 1,131 | ||
Other comprehensive income | ||||||
Before Tax | 3,557 | 2,421 | (3,628) | 7,662 | ||
Tax Effect | (830) | (569) | 842 | (1,709) | ||
Total other comprehensive income (loss) | 2,727 | 1,852 | (2,786) | 5,953 | ||
Net unrealized gain (loss) on hedging derivatives | ||||||
Net unrealized gain (loss) arising during the period | ||||||
Before Tax | 1,963 | 626 | (696) | (1,639) | ||
Tax Effect | (460) | (147) | 160 | 296 | ||
Net of Tax | 1,503 | 479 | (536) | (1,343) | ||
Less: reclassification adjustment for gains (losses) realized in net income | ||||||
Net of Tax | 0 | 0 | 0 | 0 | ||
Other comprehensive income | ||||||
Before Tax | 1,963 | 626 | (696) | (1,639) | ||
Tax Effect | (460) | (147) | 160 | 296 | ||
Total other comprehensive income (loss) | 1,503 | 479 | (536) | (1,343) | ||
Net unrealized gain (loss) on post-retirement plans | ||||||
Net unrealized gain (loss) arising during the period | ||||||
Net of Tax | 0 | 0 | 0 | 0 | ||
Less: reclassification adjustment for gains (losses) realized in net income | ||||||
Net of Tax | 0 | 0 | 0 | 0 | ||
Other comprehensive income | ||||||
Total other comprehensive income (loss) | $ 0 | $ 0 | $ 0 | $ 0 |
CAPITAL RATIOS AND SHAREHOLDE_6
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||
Balance at beginning of period | $ 11,016 | $ 11,016 | ||||
Total other comprehensive income (loss) | $ 4,230 | (7,552) | $ 2,331 | $ 2,279 | (3,322) | $ 4,610 |
Balance at end of period | 7,694 | 7,694 | ||||
Net unrealized gain (loss) on AFS securities | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||
Balance at beginning of period | 4,510 | 10,023 | 9,560 | 5,459 | 10,023 | 5,459 |
Other comprehensive gain (loss) before reclassifications | 2,765 | 2,881 | (2,748) | 7,084 | ||
Less: amounts reclassified from accumulated other comprehensive income | 38 | 1,029 | 38 | 1,131 | ||
Total other comprehensive income (loss) | 2,727 | 1,852 | (2,786) | 5,953 | ||
Balance at end of period | 7,237 | 4,510 | 11,412 | 9,560 | 7,237 | 11,412 |
Net unrealized gain (loss) on hedging derivatives | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||
Balance at beginning of period | 372 | 2,411 | (2,213) | (391) | 2,411 | (391) |
Other comprehensive gain (loss) before reclassifications | 1,503 | 479 | (536) | (1,343) | ||
Less: amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||
Total other comprehensive income (loss) | 1,503 | 479 | (536) | (1,343) | ||
Balance at end of period | 1,875 | 372 | (1,734) | (2,213) | 1,875 | (1,734) |
Net unrealized gain (loss) on post-retirement plans | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||
Balance at beginning of period | (1,418) | (1,418) | (1,157) | (1,157) | (1,418) | (1,157) |
Other comprehensive gain (loss) before reclassifications | 0 | 0 | 0 | 0 | ||
Less: amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||
Total other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||
Balance at end of period | (1,418) | (1,418) | (1,157) | (1,157) | (1,418) | (1,157) |
Accumulated other comprehensive income (loss) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||
Balance at beginning of period | 3,464 | 11,016 | 6,190 | 3,911 | 11,016 | 3,911 |
Other comprehensive gain (loss) before reclassifications | 4,268 | 3,360 | (3,284) | 5,741 | ||
Less: amounts reclassified from accumulated other comprehensive income | 38 | 1,029 | 38 | 1,131 | ||
Total other comprehensive income (loss) | 4,230 | (7,552) | 2,331 | 2,279 | (3,322) | 4,610 |
Balance at end of period | $ 7,694 | $ 3,464 | $ 8,521 | $ 6,190 | $ 7,694 | 8,521 |
Accounting Standards Update 2018-02 | Net unrealized gain (loss) on AFS securities | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||
Less: amounts reclassified from accumulated other comprehensive income | 0 | |||||
Accounting Standards Update 2018-02 | Net unrealized gain (loss) on hedging derivatives | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||
Less: amounts reclassified from accumulated other comprehensive income | 0 | |||||
Accounting Standards Update 2018-02 | Net unrealized gain (loss) on post-retirement plans | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||
Less: amounts reclassified from accumulated other comprehensive income | 0 | |||||
Accounting Standards Update 2018-02 | Accumulated other comprehensive income (loss) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||
Less: amounts reclassified from accumulated other comprehensive income | $ 0 |
CAPITAL RATIOS AND SHAREHOLDE_7
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Amounts Reclassified Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Non-interest income | $ 9,505 | $ 9,710 | $ 19,753 | $ 18,131 |
Tax expense | (2,275) | (2,199) | (4,463) | (3,992) |
Available-for-sale Securities, Gross Realized Gains | 1,400 | 1,500 | ||
Available-for-sale Securities, Gross Realized Losses | 11 | 22 | ||
Reclassification out of AOCI | AFS securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Non-interest income | 50 | 1,351 | 50 | 1,486 |
Tax expense | (12) | (322) | (12) | (355) |
Net of tax | $ 38 | $ 1,029 | $ 38 | $ 1,131 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 9,025 | $ 9,480 | $ 8,481 | $ 7,721 | $ 18,505 | $ 16,202 |
Average number of basic common shares outstanding (in shares) | 14,965,398 | 15,423,997 | 14,949,564 | 15,500,033 | ||
Plus: dilutive effect of stock options and awards outstanding (in shares) | 76,427 | 17,281 | 76,130 | 22,960 | ||
Average number of diluted common shares outstanding (in shares) | 15,041,825 | 15,441,278 | 15,025,694 | 15,522,993 | ||
Earnings per share: | ||||||
Basic (in dollars per share) | $ 0.60 | $ 0.55 | $ 1.24 | $ 1.05 | ||
Diluted (in dollars per share) | $ 0.60 | $ 0.55 | $ 1.23 | $ 1.04 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | |
Derivative [Line Items] | |||||
Notional Amount | $ 950,401 | $ 876,603 | |||
Fair Value Asset (Liability) | (213) | 52 | |||
Interest rate swap on deposits | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 25,000 | $ 50,000 | |||
Designated as hedging instrument | Cash flow hedges | |||||
Derivative [Line Items] | |||||
Notional Amount | 125,000 | 75,000 | |||
Fair Value Asset (Liability) | (1,376) | (2,664) | |||
Designated as hedging instrument | Cash flow hedges | Interest rate cap agreements | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 75,000 | $ 75,000 | |||
Weighted Average Maturity (in years) | 3 years 6 months | 4 years | |||
Fair Value Asset (Liability) | $ (1,386) | $ (2,664) | |||
Designated as hedging instrument | Cash flow hedges | Interest rate swap on variable rate loans | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 50,000 | ||||
Weighted Average Maturity (in years) | 4 years 8 months 12 days | ||||
Fair Value Asset (Liability) | $ 10 | ||||
Designated as hedging instrument | Fair value hedges | |||||
Derivative [Line Items] | |||||
Notional Amount | 37,190 | 37,190 | |||
Fair Value Asset (Liability) | 1,183 | 2,789 | |||
Designated as hedging instrument | Fair value hedges | Interest rate swap on deposits | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 37,190 | $ 37,190 | $ 37,200 | ||
Weighted Average Maturity (in years) | 7 years | 8 years 7 months 6 days | |||
Fair Value Asset (Liability) | $ 1,183 | $ 2,789 | |||
Hedged Asset, Fair Value Hedge | 39,831 | 40,209 | |||
Cumulative amount of fair value hedging adjustment in carrying amount | 2,641 | 3,019 | |||
Designated as hedging instrument | Economic hedges | |||||
Derivative [Line Items] | |||||
Notional Amount | 777,747 | 761,093 | |||
Fair Value Asset (Liability) | (45) | (95) | |||
Designated as hedging instrument | Economic hedges | Forward sale commitments | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 14,635 | $ 50,629 | |||
Weighted Average Maturity (in years) | 1 month 6 days | 2 months 12 days | |||
Fair Value Asset (Liability) | $ (45) | $ (95) | |||
Designated as hedging instrument | Economic hedges | Customer loan derivative liability | MNA counterparty | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 262,271 | $ 235,947 | |||
Weighted Average Maturity (in years) | 6 years 3 months 18 days | 6 years 9 months 18 days | |||
Fair Value Asset (Liability) | $ (10,845) | $ (15,938) | |||
Designated as hedging instrument | Economic hedges | Customer loan derivative liability | RPA counterparty | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 119,285 | $ 119,285 | |||
Weighted Average Maturity (in years) | 7 years 4 months 24 days | 7 years 10 months 24 days | |||
Fair Value Asset (Liability) | $ (6,621) | $ (9,957) | |||
Designated as hedging instrument | Economic hedges | Customer loan derivative liability | Customer | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 381,556 | $ 355,232 | |||
Weighted Average Maturity (in years) | 6 years 7 months 6 days | 7 years 1 month 6 days | |||
Fair Value Asset (Liability) | $ 17,466 | $ 25,895 | |||
Not designated as hedging instrument | |||||
Derivative [Line Items] | |||||
Notional Amount | 10,464 | 3,320 | |||
Fair Value Asset (Liability) | 25 | 22 | |||
Not designated as hedging instrument | Interest rate lock commitments | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 10,464 | $ 3,320 | |||
Weighted Average Maturity (in years) | 1 month 6 days | 1 month 6 days | |||
Fair Value Asset (Liability) | $ 25 | $ 22 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Amount of Gain (Loss) recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | $ 453 | $ 478 | $ (3,752) | $ (1,253) |
Amount of Gain (Loss) Recognized in Income | (227) | 110 | (509) | 136 |
Loss reclassification from AOCI to Earnings expected over the next 12 months | 323 | |||
Designated as hedging instrument | Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | (835) | (644) | (2,227) | (4,588) |
Amount of Gain (Loss) Recognized in Income | (107) | 217 | (287) | 216 |
Designated as hedging instrument | Cash flow hedges | Interest rate swap on deposits | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | (1,056) | (644) | (981) | (4,588) |
Amount of Gain (Loss) Recognized in Income | (196) | 217 | (384) | 216 |
Designated as hedging instrument | Cash flow hedges | Interest rate swap on variable rate loans | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 221 | (1,246) | ||
Amount of Gain (Loss) Recognized in Income | 89 | 97 | ||
Designated as hedging instrument | Fair value hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 1,288 | 1,122 | (1,525) | 3,335 |
Amount of Gain (Loss) Recognized in Income | (140) | (23) | (276) | (41) |
Designated as hedging instrument | Fair value hedges | Interest rate swap on deposits | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 1,288 | 1,122 | (1,525) | 3,335 |
Amount of Gain (Loss) Recognized in Income | (140) | (23) | (276) | (41) |
Designated as hedging instrument | Economic hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | 40 | (54) | 50 | (43) |
Designated as hedging instrument | Economic hedges | Forward sale commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | 40 | (54) | 50 | (43) |
Not designated as hedging instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | (20) | (30) | 4 | 4 |
Not designated as hedging instrument | Interest rate lock commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (20) | $ (30) | $ 4 | $ 4 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Additional information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Dec. 31, 2019USD ($)item | Nov. 30, 2019USD ($) | |
Derivative [Line Items] | |||||||||
Acquisition, conversion and other expenses | $ 552 | $ 158 | $ 1,441 | $ 261 | |||||
Notional amount of interest rate swap | $ 950,401 | $ 950,401 | $ 876,603 | ||||||
Interest rate swap on variable rate loans | |||||||||
Derivative [Line Items] | |||||||||
Variable rate loan assets | $ 50,000 | ||||||||
Interest rate swap on variable rate loans | LIBOR less two days | |||||||||
Derivative [Line Items] | |||||||||
Variable interest rate | 0.806% | ||||||||
Interest rate swap on deposits | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Number of Instruments Held | item | 2 | 2 | |||||||
Term of interest rate swap | 5 years | ||||||||
Fixed rate of interest rate swap | 0.59% | 1.53% | |||||||
Notional amount of interest rate swap | $ 25,000 | $ 50,000 | |||||||
Designated as hedging instrument | Cash flow hedges | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of interest rate swap | $ 125,000 | $ 125,000 | 75,000 | ||||||
Designated as hedging instrument | Cash flow hedges | Interest rate cap agreements | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of interest rate swap | 75,000 | 75,000 | 75,000 | ||||||
Designated as hedging instrument | Cash flow hedges | Interest rate swap on variable rate loans | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of interest rate swap | 50,000 | 50,000 | |||||||
Designated as hedging instrument | Fair value hedges | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of interest rate swap | 37,190 | 37,190 | 37,190 | ||||||
Designated as hedging instrument | Fair value hedges | Interest rate swap on deposits | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Number of Instruments Held | item | 8 | ||||||||
Notional amount of interest rate swap | $ 37,190 | $ 37,190 | $ 37,190 | $ 37,200 | |||||
Fixed interest rate, weighted average | 1.696% |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Effect of cash flow hedging and fair value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Loans | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income and exepense line items presented in the consolidated statements of income | $ 23,191 | $ 26,493 | $ 47,396 | $ 54,480 |
Securities and other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income and exepense line items presented in the consolidated statements of income | 3,992 | 4,942 | 7,971 | 10,449 |
Deposits | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income and exepense line items presented in the consolidated statements of income | 2,603 | 4,548 | 5,554 | 10,568 |
Borrowings | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income and exepense line items presented in the consolidated statements of income | 1,826 | 2,297 | 3,637 | 5,208 |
Non-interest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income and exepense line items presented in the consolidated statements of income | 9,505 | 9,710 | 19,753 | 18,131 |
Interest rate swap on wholesale funding | Cash flow hedges | Borrowings | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on cash flow hedges: | (196) | 217 | (384) | 216 |
Interest rate swap on variable rate loans | Cash flow hedges | Loans | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on cash flow hedges: | 89 | 97 | ||
Interest rate swap on securities | Fair value hedges | Securities and other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on fair value hedges: | $ (140) | $ (23) | $ (276) | $ (41) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Cash Collateral Pledged | $ 14,700 | $ 23,450 |
Net Amount | 14,700 | 23,450 |
MNA counterparty | ||
Derivative [Line Items] | ||
Cash Collateral Pledged | 14,700 | 23,450 |
Net Amount | 14,700 | 23,450 |
Customer loan derivative liability | ||
Derivative [Line Items] | ||
Derivative liabilities | (17,466) | (25,895) |
Customer loan derivative liability | MNA counterparty | ||
Derivative [Line Items] | ||
Derivative liabilities | (10,845) | (15,938) |
Customer loan derivative liability | RPA counterparty | ||
Derivative [Line Items] | ||
Derivative liabilities | (6,621) | (9,957) |
Customer loan derivative asset | ||
Derivative [Line Items] | ||
Derivative Assets | 17,466 | 25,895 |
Customer loan derivative asset | MNA counterparty | ||
Derivative [Line Items] | ||
Derivative Assets | 10,845 | 15,938 |
Customer loan derivative asset | RPA counterparty | ||
Derivative [Line Items] | ||
Derivative Assets | $ 6,621 | $ 9,957 |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 621,849 | $ 585,046 |
US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 198,361 | 212,390 |
US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 66,343 | 85,632 |
Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 73,535 | 19,709 |
Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 188,153 | 169,004 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 95,457 | 98,311 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 621,849 | 585,046 |
Derivative assets | 18,659 | 28,684 |
Derivative liabilities | (18,852) | (28,559) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Derivative assets | 25 | 22 |
Derivative liabilities | (45) | (95) |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 18,684 | 28,706 |
Derivative liabilities | (18,897) | (28,654) |
Recurring | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 198,361 | 212,390 |
Recurring | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 66,343 | 85,632 |
Recurring | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 73,535 | 19,709 |
Recurring | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 188,153 | 169,004 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 95,457 | 98,311 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Recurring | Level 1 | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 1 | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 1 | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 1 | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 18,659 | 28,684 |
Derivative liabilities | (18,852) | (28,559) |
Recurring | Level 2 | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 198,361 | 212,390 |
Recurring | Level 2 | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 66,343 | 85,632 |
Recurring | Level 2 | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 73,535 | 19,709 |
Recurring | Level 2 | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 188,153 | 169,004 |
Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 95,457 | 98,311 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 25 | 22 |
Derivative liabilities | (45) | $ (95) |
Recurring | Level 3 | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 3 | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 3 | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage-backed securities available for sale | 0 | |
Recurring | Level 3 | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Net Derivative Asset (Liability), Gain (Loss), Statement of Income [Extensible List] | Noninterest Income | Noninterest Income | Noninterest Income | Noninterest Income |
Interest rate lock commitments | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Beginning balance | $ 46 | $ 93 | $ 22 | $ 59 |
Realized gain recognized in non-interest income | (21) | (30) | 3 | 4 |
Ending balance | 25 | 63 | 25 | 63 |
Forward Commitments | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Beginning balance | (85) | (73) | (95) | (84) |
Realized gain recognized in non-interest income | 40 | (53) | 50 | (42) |
Ending balance | $ (45) | $ (126) | $ (45) | $ (126) |
FAIR VALUE MEASUREMENTS - Unobs
FAIR VALUE MEASUREMENTS - Unobservable Inputs Recurring (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Derivative asset (liability), fair value | $ (213,000) | $ 52,000 |
Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Total | (20,000) | (73,000) |
Recurring | Level 3 | Interest rate lock commitments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Derivative asset (liability), fair value | $ 25,000 | 22,000 |
Closing Ratio | 90.00% | |
Origination Costs, per loan | $ 1,700 | |
Recurring | Level 3 | Forward Commitments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Derivative asset (liability), fair value | $ (45,000) | $ (95,000) |
FAIR VALUE MEASUREMENTS - Mea_2
FAIR VALUE MEASUREMENTS - Measured on Non-recurring Basis (Details) - Non-recurring - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Assets | |||
Liabilities measured at fair value | $ 0 | $ 0 | $ 0 |
Level 3 | |||
Assets | |||
Individually evaluated loans | 10,348,000 | 10,348,000 | 8,746,000 |
Capitalized servicing rights | 4,731,000 | 4,731,000 | 3,605,000 |
Premises held for sale | 971,000 | 971,000 | 962,000 |
Total | 16,050,000 | 16,050,000 | 13,313,000 |
Total Gains (Losses) | 170,000 | (2,737,000) | |
Level 3 | Impaired loans | |||
Assets | |||
Total Gains (Losses) | 208,000 | (1,602,000) | |
Level 3 | Capitalized servicing rights | |||
Assets | |||
Total Gains (Losses) | (38,000) | (1,126,000) | |
Level 3 | Assets held for sale | |||
Assets | |||
Premises held for sale | 971,000 | 971,000 | $ 962,000 |
Total Gains (Losses) | $ 0 | $ (9,000) |
FAIR VALUE MEASUREMENTS - Uno_2
FAIR VALUE MEASUREMENTS - Unobservable Inputs Non-recurring (Details) - Non-recurring - Level 3 - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Individually evaluated loans | $ 10,348 | $ 8,746 |
Capitalized servicing rights | 4,731 | 3,605 |
Premises held for sale | 971 | 962 |
Total | 16,050 | 13,313 |
Premises held for sale, carrying value | 0 | |
Fair value of collateral -appraised value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Individually evaluated loans | 7,226 | 6,128 |
Discount cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Individually evaluated loans | $ 3,122 | $ 2,618 |
Impaired loans | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Loss severity | 10.00% | 0.00% |
Appraised value | $ 71 | $ 0 |
Cash flows | $ 7 | $ 19 |
Discount rate | 2.88% | 3.50% |
Impaired loans | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Loss severity | 70.00% | 70.00% |
Appraised value | $ 1,792 | $ 1,730 |
Cash flows | $ 959 | $ 953 |
Discount rate | 9.50% | 9.50% |
Capitalized servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Constant prepayment rate (CPR) | 15.14% | 18.53% |
Discount rate | 9.54% | 10.05% |
Assets held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Premises held for sale | $ 971 | $ 962 |
Selling Costs | 6.00% | 6.00% |
Assets held for sale | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Appraised value | $ 220 | $ 220 |
Assets held for sale | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items} | ||
Appraised value | $ 386 | $ 386 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values and Carrying Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial Assets | ||
Securities available for sale | $ 621,849 | $ 585,046 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 173,718 | 226,007 |
Securities available for sale | 0 | |
FHLB stock | 0 | |
Loans held for sale | 0 | |
Net loans | 0 | |
Accrued interest receivable | 0 | |
Cash surrender value of bank-owned life insurance policies | 0 | |
Derivative assets | 0 | |
Financial Liabilities | ||
Securities sold under agreements to repurchase | 0 | |
FHLB advances | 0 | |
Derivative liabilities | 0 | |
Level 1 | Bank Non-maturity Deposits [Member] | ||
Financial Liabilities | ||
Non-maturity deposits | 0 | |
Level 1 | Bank Time Deposits [Member] | ||
Financial Liabilities | ||
Non-maturity deposits | 0 | |
Level 1 | Subordinated borrowings | ||
Financial Liabilities | ||
Subordinated borrowings | 0 | |
Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | |
Securities available for sale | 621,849 | 585,046 |
FHLB stock | 14,145 | 14,036 |
Loans held for sale | 0 | |
Net loans | 0 | |
Accrued interest receivable | 3,381 | 2,964 |
Cash surrender value of bank-owned life insurance policies | 78,886 | 77,870 |
Derivative assets | 18,659 | 28,684 |
Financial Liabilities | ||
Short-term other borrowings | 27,779 | |
Securities sold under agreements to repurchase | 17,389 | |
FHLB advances | 266,290 | 252,698 |
Derivative liabilities | 18,852 | 28,559 |
Level 2 | Bank Non-maturity Deposits [Member] | ||
Financial Liabilities | ||
Non-maturity deposits | 2,326,202 | 2,122,222 |
Level 2 | Bank Time Deposits [Member] | ||
Financial Liabilities | ||
Non-maturity deposits | 469,775 | 694,700 |
Level 2 | Subordinated borrowings | ||
Financial Liabilities | ||
Subordinated borrowings | 62,164 | 57,091 |
Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | |
Securities available for sale | 0 | |
FHLB stock | 0 | |
Loans held for sale | 7,942 | 24,163 |
Net loans | 2,472,108 | 2,547,970 |
Accrued interest receivable | 0 | |
Cash surrender value of bank-owned life insurance policies | 0 | |
Derivative assets | 25 | 22 |
Financial Liabilities | ||
Securities sold under agreements to repurchase | 0 | |
FHLB advances | 0 | |
Derivative liabilities | 45 | 95 |
Level 3 | Bank Non-maturity Deposits [Member] | ||
Financial Liabilities | ||
Non-maturity deposits | 0 | |
Level 3 | Bank Time Deposits [Member] | ||
Financial Liabilities | ||
Non-maturity deposits | 0 | |
Level 3 | Subordinated borrowings | ||
Financial Liabilities | ||
Subordinated borrowings | 0 | |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 173,718 | 226,007 |
Securities available for sale | 621,849 | 585,046 |
FHLB stock | 14,145 | 14,036 |
Loans held for sale | 7,942 | 23,988 |
Net loans | 2,492,745 | 2,543,803 |
Accrued interest receivable | 3,381 | 2,964 |
Cash surrender value of bank-owned life insurance policies | 78,886 | 77,870 |
Derivative assets | 18,684 | 28,706 |
Financial Liabilities | ||
Short-term other borrowings | 27,779 | |
Securities sold under agreements to repurchase | 17,389 | |
FHLB advances | 262,602 | 248,283 |
Derivative liabilities | 18,897 | 28,654 |
Carrying Amount | Bank Non-maturity Deposits [Member] | ||
Financial Liabilities | ||
Non-maturity deposits | 2,351,715 | 2,207,854 |
Carrying Amount | Bank Time Deposits [Member] | ||
Financial Liabilities | ||
Non-maturity deposits | 470,758 | 698,361 |
Carrying Amount | Subordinated borrowings | ||
Financial Liabilities | ||
Subordinated borrowings | 60,042 | 59,961 |
Total Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 173,718 | 226,007 |
Securities available for sale | 621,849 | 585,046 |
FHLB stock | 14,145 | 14,036 |
Loans held for sale | 7,942 | 24,163 |
Net loans | 2,472,108 | 2,547,970 |
Accrued interest receivable | 3,381 | 2,964 |
Cash surrender value of bank-owned life insurance policies | 78,886 | 77,870 |
Derivative assets | 18,684 | 28,706 |
Financial Liabilities | ||
Short-term other borrowings | 27,779 | |
Securities sold under agreements to repurchase | 17,389 | |
FHLB advances | 266,290 | 252,698 |
Derivative liabilities | 18,897 | 28,654 |
Total Fair Value | Bank Non-maturity Deposits [Member] | ||
Financial Liabilities | ||
Non-maturity deposits | 2,326,202 | 2,122,222 |
Total Fair Value | Bank Time Deposits [Member] | ||
Financial Liabilities | ||
Non-maturity deposits | 469,775 | 694,700 |
Total Fair Value | Subordinated borrowings | ||
Financial Liabilities | ||
Subordinated borrowings | $ 62,164 | $ 57,091 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 7,058 | $ 5,598 | $ 13,694 | $ 12,079 |
Products and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,570 | 2,620 | 6,856 | 5,892 |
Products and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,488 | 2,978 | 6,838 | 6,187 |
Trust management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,474 | 2,892 | 6,649 | 5,938 |
Financial services fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 327 | 267 | 818 | 590 |
Interchange fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,915 | 1,463 | 3,627 | 3,200 |
Customer deposit fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,130 | 789 | 2,179 | 1,899 |
Other customer service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 212 | $ 187 | $ 421 | $ 452 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Balances from Contracts with Customers (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Balances from contracts with customers only: | ||
Other Assets | $ 1,190 | $ 1,121 |
Other Liabilities | $ 2,545 | $ 2,785 |
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true |
LEASES - Assets and liabilities
LEASES - Assets and liabilities (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 9,773 | $ 10,338 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Asset | Other Asset | |
Operating lease liabilities | $ 10,107 | $ 10,627 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities | |
Lease, Practical Expedients, Package [true false] | true |
LEASES - Lease Term and Cost (D
LEASES - Lease Term and Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Leases [Abstract] | |||||
Weighted-average remaining lease term (in years) | 8 years 9 months 18 days | 8 years 9 months 18 days | 9 years 3 months 3 days | ||
Weighted-average discount rate | 3.15% | 3.15% | 3.15% | ||
Operating lease cost | $ 322 | $ 323 | $ 642 | $ 644 | |
Variable lease cost | 55 | 62 | 136 | 118 | |
Total lease cost | $ 377 | $ 385 | $ 778 | $ 762 |
LEASES - Future Minimum Payment
LEASES - Future Minimum Payments for Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract] | ||
June 30, 2022 | $ 1,307 | |
June 30, 2023 | 1,319 | |
June 30, 2024 | 1,327 | |
June 30, 2025 | 1,176 | |
June 30, 2026 | 1,073 | |
Thereafter | 4,531 | |
Total future minimum lease payments | 10,733 | |
Amounts representing interest | (626) | |
Operating lease liabilities | $ 10,107 | $ 10,627 |