COVER
COVER - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35741 | |
Entity Registrant Name | CHEMUNG FINANCIAL CORP | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 16-1237038 | |
Entity Address, Address Line One | One Chemung Canal Plaza | |
Entity Address, City or Town | Elmira | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14901 | |
City Area Code | 607 | |
Local Phone Number | 737-3711 | |
Title of 12(b) Security | Common stock, par value $.01 per share | |
Trading Symbol | CHMG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,664,078 | |
Entity Central Index Key | 0000763563 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from financial institutions | $ 28,859 | $ 29,467 |
Interest-earning deposits in other financial institutions | 32,838 | 79,071 |
Total cash and cash equivalents | 61,697 | 108,538 |
Equity investments, at estimated fair value | 2,933 | 2,542 |
Securities available for sale, at estimated fair value | 761,531 | 554,611 |
Securities held to maturity, estimated fair value of $3,194 at September 30, 2021 and $2,501 at December 31, 2020 | 3,183 | 2,469 |
FHLBNY and FRBNY Stock, at cost | 3,562 | 3,150 |
Loans, net of deferred loan fees | 1,516,668 | 1,536,463 |
Allowance for loan losses | (20,940) | (20,924) |
Loans, net | 1,495,728 | 1,515,539 |
Loans held for sale | 224 | 170 |
Premises and equipment, net | 18,370 | 20,119 |
Operating lease right-of-use assets | 7,084 | 7,145 |
Goodwill | 21,824 | 21,824 |
Other intangible assets, net | 26 | 258 |
Bank-owned life insurance | 2,812 | 3,059 |
Accrued interest receivable and other assets | 38,682 | 40,027 |
Total assets | 2,417,656 | 2,279,451 |
Deposits: | ||
Non-interest-bearing | 725,181 | 620,423 |
Interest-bearing | 1,448,641 | 1,417,351 |
Total deposits | 2,173,822 | 2,037,774 |
Long term finance lease obligation | 3,659 | 3,849 |
Operating lease liabilities | 7,227 | 7,264 |
Dividends payable | 1,445 | 1,214 |
Accrued interest payable and other liabilities | 25,364 | 29,651 |
Total liabilities | 2,211,517 | 2,079,752 |
Shareholders' equity: | ||
Common stock, $0.01 par value per share, 10,000,000 shares authorized; 5,310,076 issued at September 30, 2021 and December 31, 2020 | 53 | 53 |
Additional paid-in capital | 47,203 | 46,764 |
Retained earnings | 183,873 | 168,006 |
Treasury stock, at cost; 647,273 shares at September 30, 2021 and 642,239 shares at December 31, 2020 | (17,924) | (17,525) |
Accumulated other comprehensive income (loss) | (7,066) | 2,401 |
Total shareholders' equity | 206,139 | 199,699 |
Total liabilities and shareholders' equity | $ 2,417,656 | $ 2,279,451 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest and dividend income: | ||||
Loans, including fees | $ 14,655 | $ 14,876 | $ 43,964 | $ 43,770 |
Taxable securities | 2,678 | 1,474 | 6,431 | 4,358 |
Tax exempt securities | 265 | 263 | 792 | 799 |
Interest-earning deposits | 35 | 101 | 131 | 643 |
Total interest and dividend income | 17,633 | 16,714 | 51,318 | 49,570 |
Interest expense: | ||||
Deposits | 768 | 809 | 2,521 | 2,922 |
Borrowed funds | 33 | 36 | 100 | 126 |
Total interest expense | 801 | 845 | 2,621 | 3,048 |
Net interest income | 16,832 | 15,869 | 48,697 | 46,522 |
Provision (credit) for loan losses | 356 | 679 | (53) | 3,989 |
Net interest income after provision for loan losses | 16,476 | 15,190 | 48,750 | 42,533 |
Non-interest income: | ||||
Changes in fair value of equity investments | 15 | 57 | 203 | (33) |
Net gains on sales of loans held for sale | 242 | 553 | 884 | 916 |
Net gains (losses) on sales of other real estate owned | 0 | 6 | (18) | (71) |
Income from bank-owned life insurance | 13 | 14 | 39 | 147 |
Other | 842 | 471 | 2,802 | 1,940 |
Total non-interest income | 5,970 | 5,339 | 18,083 | 15,150 |
Non-interest expenses: | ||||
Salaries and wages | 6,259 | 6,088 | 18,058 | 17,678 |
Pension and other employee benefits | 1,511 | 1,245 | 4,450 | 4,095 |
Other components of net periodic pension and postretirement benefits | (391) | (254) | (1,173) | (762) |
Net occupancy | 1,432 | 1,454 | 4,446 | 4,406 |
Furniture and equipment | 409 | 538 | 1,185 | 1,573 |
Data processing | 2,210 | 1,777 | 6,261 | 5,630 |
Professional services | 542 | 453 | 1,531 | 1,313 |
Amortization of intangible assets | 42 | 120 | 232 | 371 |
Marketing and advertising | 162 | 140 | 572 | 546 |
Other real estate owned | 7 | 53 | 24 | 87 |
FDIC insurance | 356 | 247 | 1,075 | 726 |
Loan expense | 196 | 301 | 720 | 798 |
Other | 1,365 | 1,200 | 3,923 | 3,878 |
Total non-interest expenses | 14,100 | 13,362 | 41,304 | 40,339 |
Income before income tax expense | 8,346 | 7,167 | 25,529 | 17,344 |
Income tax expense | 1,700 | 1,456 | 5,558 | 3,315 |
Net income | $ 6,646 | $ 5,711 | $ 19,971 | $ 14,029 |
Weighted average shares outstanding, basic (in shares) | 4,684 | 4,773 | 4,687 | 4,836 |
Weighted average shares outstanding, diluted (in shares) | 4,684 | 4,773 | 4,687 | 4,836 |
Basic earnings per share (in dollars per share) | $ 1.42 | $ 1.19 | $ 4.26 | $ 2.90 |
Diluted earnings per share (in dollars per share) | $ 1.42 | $ 1.19 | $ 4.26 | $ 2.90 |
WMG fee income | ||||
Non-interest income: | ||||
Revenue from contract with customer, excluding assessed tax | $ 2,765 | $ 2,416 | $ 8,246 | $ 6,968 |
Service charges on deposit accounts | ||||
Non-interest income: | ||||
Revenue from contract with customer, excluding assessed tax | 856 | 740 | 2,305 | 2,294 |
Interchange revenue from debit card transactions | ||||
Non-interest income: | ||||
Revenue from contract with customer, excluding assessed tax | $ 1,237 | $ 1,082 | $ 3,622 | $ 2,989 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,646 | $ 5,711 | $ 19,971 | $ 14,029 |
Other comprehensive income (loss): | ||||
Net unrealized gains (losses) | (4,348) | (692) | (12,715) | 9,919 |
Tax effect | (1,139) | (176) | (3,246) | 2,530 |
Net of tax amount | (3,209) | (516) | (9,469) | 7,389 |
Change in funded status of defined benefit pension plan and other benefit plans: | ||||
Reclassification adjustment for amortization of prior service costs | (55) | (55) | (165) | (165) |
Reclassification adjustment for amortization of net actuarial loss | 57 | 77 | 169 | 231 |
Total before tax effect | 2 | 22 | 4 | 66 |
Tax effect | 1 | 6 | 2 | 14 |
Net of tax amount | 1 | 16 | 2 | 52 |
Total other comprehensive income (loss) | (3,208) | (500) | (9,467) | 7,441 |
Comprehensive income | $ 3,438 | $ 5,211 | $ 10,504 | $ 21,470 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | |
Beginning balances at Dec. 31, 2019 | $ 182,627 | $ 53 | $ 46,382 | $ 153,701 | $ (11,710) | $ (5,799) | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income | 14,029 | 14,029 | |||||
Other comprehensive (loss) income | 7,441 | 7,441 | |||||
Restricted stock awards | 431 | 431 | |||||
Restricted stock units for directors' deferred compensation plan | 25 | 25 | |||||
Distribution of treasury stock grants for employee restricted stock awards | 0 | (7) | 7 | ||||
Cash dividends declared | (3,743) | (3,743) | |||||
Distribution of treasury stock for directors' compensation | 350 | 144 | 206 | ||||
Distribution of shares of treasury stock for employee stock compensation | 100 | 41 | 59 | ||||
Distribution of shares of treasury stock for deferred directors' compensation | (12) | (180) | 168 | ||||
Repurchase of common stock | (5,137) | (5,137) | |||||
Sale of treasury stock | [1] | 894 | 51 | 843 | |||
Forfeiture of shares of restricted stock awards | 0 | 5 | (5) | ||||
Ending balances at Sep. 30, 2020 | 197,005 | 53 | 46,892 | 163,987 | (15,569) | 1,642 | |
Beginning balances at Jun. 30, 2020 | 194,589 | 53 | 46,758 | 159,505 | (13,869) | 2,142 | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income | 5,711 | 5,711 | |||||
Other comprehensive (loss) income | (500) | (500) | |||||
Restricted stock awards | 125 | 125 | |||||
Restricted stock units for directors' deferred compensation plan | 5 | 5 | |||||
Cash dividends declared | (1,229) | (1,229) | |||||
Repurchase of common stock | (1,816) | (1,816) | |||||
Sale of treasury stock | [1] | 120 | 4 | 116 | |||
Ending balances at Sep. 30, 2020 | 197,005 | 53 | 46,892 | 163,987 | (15,569) | 1,642 | |
Beginning balances at Dec. 31, 2020 | 199,699 | 53 | 46,764 | 168,006 | (17,525) | 2,401 | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income | 19,971 | 19,971 | |||||
Other comprehensive (loss) income | (9,467) | (9,467) | |||||
Restricted stock awards | 307 | 307 | |||||
Restricted stock units for directors' deferred compensation plan | 14 | 14 | |||||
Cash dividends declared | (4,104) | (4,104) | |||||
Distribution of treasury stock for directors' compensation | 317 | 64 | 253 | ||||
Distribution of shares of treasury stock for employee stock compensation | 132 | 27 | 105 | ||||
Distribution of shares of treasury stock for deferred directors' compensation | 3 | (72) | 75 | ||||
Repurchase of common stock | (1,050) | (1,050) | |||||
Sale of treasury stock | [1] | 317 | 99 | 218 | |||
Ending balances at Sep. 30, 2021 | 206,139 | 53 | 47,203 | 183,873 | (17,924) | (7,066) | |
Beginning balances at Jun. 30, 2021 | 203,977 | 53 | 47,081 | 178,673 | (17,972) | (3,858) | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income | 6,646 | 6,646 | |||||
Other comprehensive (loss) income | (3,208) | (3,208) | |||||
Restricted stock awards | 84 | 84 | |||||
Restricted stock units for directors' deferred compensation plan | 5 | 5 | |||||
Cash dividends declared | (1,446) | (1,446) | |||||
Repurchase of common stock | (4) | (4) | |||||
Sale of treasury stock | [1] | 85 | 33 | 52 | |||
Ending balances at Sep. 30, 2021 | $ 206,139 | $ 53 | $ 47,203 | $ 183,873 | $ (17,924) | $ (7,066) | |
[1] | All treasury stock sales were completed at the prevailing market price with the Chemung Canal Trust Company Profit Sharing, Savings, and Investment Plan which is a defined contribution plan sponsored by the Bank. |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Distribution of shares of treasury stock for employee restricted stock awards (in shares) | 255 | |||
Cash dividends declared (in dollars per share) | $ 0.31 | $ 0.26 | $ 0.88 | $ 0.78 |
Distribution of shares of treasury stock for directors' compensation (in shares) | 9,291 | 7,923 | ||
Distribution of shares of treasury stock for employee stock compensation (in shares) | 3,860 | 2,274 | ||
Distribution of shares of treasury stock for deferred directors’ compensation (in shares) | 2,707 | 6,426 | ||
Purchase of shares of treasury stock (in shares) | 97 | 64,185 | 28,803 | 186,206 |
Sale of shares of treasury stock (in shares) | 1,887 | 18,202 | 7,911 | 32,387 |
Forfeitures of shares of restricted stock awards (in shares) | 112 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 19,971 | $ 14,029 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of right-of-use assets | 559 | 527 |
Amortization of intangible assets | 232 | 371 |
Provision (credit) for loan losses | (53) | 3,989 |
(Gains) Loss on disposal of fixed assets | (61) | 7 |
Depreciation and amortization of fixed assets | 1,896 | 2,215 |
Amortization of premiums on securities, net | 4,020 | 1,003 |
Gain on sales of loans held for sale, net | (884) | (916) |
Proceeds from sales of loans held for sale | 29,840 | 17,216 |
Loans originated and held for sale | (29,010) | (17,174) |
Net losses on sale of other real estate owned | 18 | 71 |
Write-downs on other real estate owned | 0 | 38 |
Net change in fair value of equity investments | (203) | 33 |
Proceeds from sales of trading assets | 41 | 24 |
Purchase of equity investments | (229) | (174) |
Decrease (Increase) in other assets and accrued interest receivable | 1,279 | (10,264) |
Increase (decrease) in accrued interest payable | 27 | (38) |
Expense related to restricted stock units for directors' deferred compensation plan | 14 | 25 |
Expense related to employee stock compensation | 132 | 102 |
Expense related to employee restricted stock awards | 307 | 431 |
Payments on operating leases | (37) | (500) |
(Decrease) increase in other liabilities | (1,242) | 9,119 |
Income from bank owned life insurance | (39) | (147) |
Net cash provided by operating activities | 26,578 | 19,987 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities, calls, and principal paydowns on securities available for sale | 109,736 | 39,508 |
Proceeds from maturities and principal collected on securities held to maturity | 558 | 1,349 |
Purchases of securities available for sale | (333,376) | (142,797) |
Purchases of securities held to maturity | (1,287) | (1,286) |
Purchase of FHLBNY and FRBNY stock | (412) | (51) |
Proceeds from sales of fixed assets | 451 | 0 |
Purchases of premises and equipment | (537) | (696) |
Proceeds from sale of other real estate owned | 128 | 253 |
Proceeds from bank owned life insurance | 286 | 213 |
Net (increase) decrease in loans | 19,784 | (232,582) |
Net cash used in investing activities | (204,669) | (336,089) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in demand deposits, interest-bearing demand accounts, savings accounts, and insured money market accounts | 191,360 | 307,723 |
(Decrease) increase in time deposits | (55,312) | 44,327 |
Payments made on finance leases | (190) | (175) |
Purchase of treasury stock | (1,050) | (5,137) |
Sale of treasury stock | 315 | 894 |
Cash dividends paid | (3,873) | (3,777) |
Net cash provided by financing activities | 131,250 | 344,100 |
Net (decrease) increase in cash and cash equivalents | (46,841) | 27,998 |
Cash and cash equivalents, beginning of period | 108,538 | 121,904 |
Cash and cash equivalents, end of period | 61,697 | 149,902 |
Cash paid for: | ||
Interest | 2,594 | 3,086 |
Income taxes | 4,375 | 3,785 |
Supplemental disclosure of non-cash activity: | ||
Transfer of loans to other real estate owned | 80 | 431 |
Dividends declared, not yet paid | 1,445 | 1,229 |
Repurchase of common stock in lieu of employee payroll taxes | 80 | 54 |
Operating lease right-of-use assets | (498) | 0 |
Distribution of treasury stock for directors' compensation | 317 | 350 |
Distribution of treasury stock for deferred directors' compensation | 4 | (12) |
Forfeiture of shares of restricted stock awards | $ 0 | $ (5) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, estimated fair value | $ 3,194 | $ 2,501 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 5,310,076 | 5,310,076 |
Treasury stock, at cost (in shares) | 647,273 | 642,239 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization The Corporation, through its wholly-owned subsidiaries, the Bank and CFS, provides a wide range of banking, financing, fiduciary and other financial services to its clients. The Corporation and the Bank are subject to the regulations of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. CRM, a wholly-owned subsidiary of the Co rporation, which was formed and began operations on May 31, 2016, is a Nevada-based captive insurance company which insures against certain risks unique to the operations of the Corporation and its subsidiaries and for which insurance may not be currently available or economically feasible in today's insurance marketplace. CRM pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. CRM is subject to regulations of the State of Nevada and undergoes periodic examinations by the Nevada Division of Insurance. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 8 of Regulation S-X of the Exchange Act. These financial statements include the accounts of the Corporation and its subsidiaries, and all significant intercompany balances and transactions are eliminated in consolidation. Amounts in the prior periods' consolidated financial statements are reclassified whenever necessary to conform to the current period's presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included. The unaudited consolidated financial statements should be read in conjunction with the Corporation's 2020 Annual Report on Form 10-K for the year ended December 31, 2020. The results of operations for any interim periods are not necessarily indicative of the results which may be expected for the entire year or any other period. Reclassifications Amounts in the prior year financial statements are reclassified whenever necessary to conform to the current year's presentation. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2019, though entities may adopt the amendments earlier for fiscal years beginning after December 15, 2018. In November 2019, the FASB adopted changes to delay the effective date of ASU 2016-13 to January 2023 for certain entities, including certain Securities and Exchange Commission filers, public business entities, and private companies. As a smaller reporting company, the Corporation is eligible for the delay. The Corporation has established a committee to oversee the implementation of CECL and has selected a vendor to assist in the implementation process. The model chosen utilizes a loss driver analysis which includes reasonable and supportable forecasts to estimate future losses. This analysis includes different methods such as discounted cash flows, remaining life and vintage analysis, which are used depending on the nature of the portfolio segment. The Corporation is running its current incurred loss model and a CECL model concurrently. The Corporation is in the process of updating its policies and internal controls accordingly. The corporation expects to recognize a one-time cumulative-effect adjustment to our allowance for loan losses upon adoption of CECL, effective of January 1, 2023, consistent with regulatory expectations set forth in interagency guidance. Section 4013 of the CARES Act gives entities temporary relief from the accounting and disclosure requirements for troubled debt restructurings (TDRs) under ASC 310-40, Receivables: Troubled Debt Restructurings by Creditors, in certain situations. Section 4013 of the CARES Act permits the suspension of ASC 310-40 for loan modifications that are made by financial institutions in response to the COVID-19 pandemic if (1) the borrower was not more than 30 days past due as of December 31, 2019, and (2) the modifications are related to arrangements that defer or delay the payment of principal or interest, or change the interest rate on the loan. All loan modifications made by the Corporation in response to the COVID-19 pandemic have been in accordance with Section 4013 of the CARES Act. Adoption of New Accounting Standards On January 1, 2020, the Corporation adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The objective of the ASU is to simplify the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Additionally, the ASU removes the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. The adoption of the ASU did not have a significant impact on the Corporation's consolidated financial statements. Risks and Uncertainties - COVID-19 The COVID-19 pandemic has caused significant economic dislocation in the United States as many state and local governments have ordered non-essential businesses to close and residents to shelter in place at home. As of September 30, 2021 many restrictions have been removed or lessened and many non-essential businesses have been allowed to re-open in limited capacity adhering to social distancing and disinfection guidelines. However, these restrictions and other consequences have resulted in an unprecedented slow-down in economic activity and a related increase in unemployment. Since the COVID-19 pandemic began, millions of people have filed claims for unemployment and stock markets have remained volatile. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 pandemic on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be fully reopened. The Corporation's unaudited consolidated financial statements reflect estimates and assumptions that affect the reported amounts of assets and liabilities, including the amount of the allowance for loan losses established. Management evaluated the potential impact of the COVID-19 pandemic as it related to the loan portfolio and as part of this analysis, management identified what it believes to be higher risk loans through a detailed analysis of industry codes. Certain allowance qualitative factors were increased based on an assessment of the impact of the current pandemic on local, national and global economic conditions as well as the perceived risks inherent in specific industries and credit characteristics. Management has taken actions to identify and assess additional possible credit exposure due to the COVID-19 pandemic based upon the industry types within the current loan portfolio. While most industries have and will continue to experience adverse impacts as a result of the COVID-19 pandemic, Management has designated certain industries as most impacted by COVID-19. For a discussion of the effect of COVID-19 on our business, see pages 60-62 of this Form 10-Q. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE (shares in thousands)Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. Issuable shares, including those related to directors’ restricted stock units and directors’ stock compensation, are considered outstanding and are included in the computation of basic earnings per share. All outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends are considered participating securities for this calculation. Restricted stock awards are grants of participating securities and are considered outstanding at grant date. Earnings per share information is adjusted to present comparative results for stock splits and stock dividends that occur. Earnings per share were computed by dividing net income by 4,684 and 4,773 weighted average shares outstanding for the three month periods ended September 30, 2021 and 2020, respectively. Earnings per share were computed by dividing net income by 4,687 and 4,836 weighted average shares outstanding for the nine month periods ended September 30, 2021 and 2020, respectively. There were no common stock equivalents during the three and nine month periods ended September 30, 2021 or 2020. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Amortized cost and estimated fair value of securities available for sale are as follows (in thousands): September 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes and bonds $ 40,499 $ — $ 162 $ 40,337 Mortgage-backed securities, residential 588,555 5,397 7,826 586,126 Obligations of states and political subdivisions 40,331 2,021 — 42,352 Corporate bonds and notes 17,000 116 55 17,061 SBA loan pools 75,612 398 355 75,655 Total $ 761,997 $ 7,932 $ 8,398 $ 761,531 December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Mortgage-backed securities, residential $ 458,245 $ 9,822 $ 201 $ 467,866 Obligations of states and political subdivisions 40,662 2,743 — 43,405 Corporate bonds and notes 9,000 47 12 9,035 SBA loan pools 34,455 42 192 34,305 Total $ 542,362 $ 12,654 $ 405 $ 554,611 Amortized cost and estimated fair value of securities held to maturity are as follows (in thousands): September 30, 2021 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 1,300 $ — $ — $ 1,300 Time deposits with other financial institutions 1,883 11 — 1,894 Total $ 3,183 $ 11 $ — $ 3,194 December 31, 2020 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 326 $ — $ — $ 326 Time deposits with other financial institutions 2,143 32 — 2,175 Total $ 2,469 $ 32 $ — $ 2,501 The amortized cost and estimated fair value of debt securities are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (in thousands): September 30, 2021 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 686 $ 689 $ 1,523 $ 1,532 After one, but within five years 75,962 77,278 860 862 After five, but within ten years 20,712 21,285 800 800 After ten years 470 498 — — 97,830 99,750 3,183 3,194 Mortgage-backed securities, residential 588,555 586,126 — — SBA loan pools 75,612 75,655 — — Total $ 761,997 $ 761,531 $ 3,183 $ 3,194 There were no proceeds from sales and calls of securities resulting in gains or losses for the three and nine month periods ended September 30, 2021 and 2020. The following tables summarize the investment securities available for sale with unrealized losses at September 30, 2021 and December 31, 2020 by aggregated major security type and length of time in a continuous unrealized loss position (in thousands): Less than 12 months 12 months or longer Total September 30, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ 24,819 $ 162 $ — $ — $ 24,819 $ 162 Mortgage-backed securities, residential 383,380 7,707 4,146 119 387,526 7,826 Corporate bonds and notes 2,979 21 2,966 34 5,945 55 SBA loan pools 39,140 283 6,273 72 45,413 355 Total temporarily impaired securities $ 450,318 $ 8,173 $ 13,385 $ 225 $ 463,703 $ 8,398 Less than 12 months 12 months or longer Total December 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities, residential $ 70,037 $ 200 $ 970 $ 1 $ 71,007 $ 201 Corporate bonds and notes 2,988 12 — — 2,988 12 SBA loan pools 15,245 156 3,636 36 18,881 192 Total temporarily impaired securities $ 88,270 $ 368 $ 4,606 $ 37 $ 92,876 $ 405 Other-Than-Temporary Impairment As of September 30, 2021, the majority of the Corporation's unrealized losses in the investment securities portfolio related to mortgage-backed securities. At September 30, 2021, all of the unrealized losses related to mortgage-backed securities were issued by U.S. government sponsored entities, Fannie Mae and Freddie Mac. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Corporation does not have the intent to sell these securities and it is not likely that it will be required to sell these securities before their anticipated recovery, the Corporation does not consider these securities to be other-than-temporarily impaired at September 30, 2021. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands): September 30, 2021 December 31, 2020 Commercial and agricultural: Commercial and industrial $ 270,656 $ 368,663 Agricultural 419 283 Commercial mortgages: Construction 67,445 61,945 Commercial mortgages, other 721,709 654,663 Residential mortgages 253,991 239,401 Consumer loans: Home equity lines and loans 72,471 78,547 Indirect consumer loans 119,772 120,538 Direct consumer loans 10,205 12,423 Total loans, net of deferred loan fees and costs 1,516,668 1,536,463 Interest receivable on loans 4,261 5,035 Total recorded investment in loans $ 1,520,929 $ 1,541,498 The Corporation's concentrations of credit risk by loan type are reflected in the preceding table. The concentrations of credit risk with standby letters of credit, committed lines of credit and commitments to originate new loans generally follow the loan classifications in the table above. As of September 30, 2021 and December 31, 2020, the Corporation had outstanding PPP loan balances of $68.1 million and $150.9 million, respectively, which were included in commercial and industrial loans in the table above. These loans require no allowance for loan losses as of September 30, 2021 since they are government guaranteed loans. The following tables present the activity in the allowance for loan losses by portfolio segment for the three month periods ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, 2021 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 3,628 $ 12,963 $ 1,791 $ 2,294 $ 20,676 Charge-offs — (44) — (190) (234) Recoveries 8 1 — 133 142 Net recoveries (charge-offs) 8 (43) — (57) (92) Provision (15) 361 80 (70) 356 Ending balance $ 3,621 $ 13,281 $ 1,871 $ 2,167 $ 20,940 Three Months Ended September 30, 2020 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 8,327 $ 10,549 $ 1,891 $ 3,363 $ 24,130 Charge-offs (68) — (42) (216) (326) Recoveries 18 2 — 87 107 Net recoveries (charge-offs) (50) 2 (42) (129) (219) Provision 180 361 232 (94) 679 Ending balance $ 8,457 $ 10,912 $ 2,081 $ 3,140 $ 24,590 The following tables present the activity in the allowance for loan losses by portfolio segment for the nine month periods ended September 30, 2021 and 2020 (in thousands): Nine Months Ended September 30, 2021 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 4,493 $ 11,496 $ 2,079 $ 2,856 $ 20,924 Charge-offs (25) (44) (71) (510) (650) Recoveries 283 2 10 424 719 Net recoveries (charge-offs) 258 (42) (61) (86) 69 Provision (1,130) 1,827 (147) (603) (53) Ending balance $ 3,621 $ 13,281 $ 1,871 $ 2,167 $ 20,940 Nine Months Ended September 30, 2020 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 10,227 $ 8,869 $ 1,252 $ 3,130 $ 23,478 Charge-offs (134) (2,143) (56) (915) (3,248) Recoveries 27 2 49 293 371 Net recoveries (charge-offs) (107) (2,141) (7) (622) (2,877) Provision (1,663) 4,184 836 632 3,989 Ending balance $ 8,457 $ 10,912 $ 2,081 $ 3,140 $ 24,590 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,525 $ 1,800 $ — $ 73 $ 3,398 Collectively evaluated for impairment 2,096 11,481 1,871 2,094 17,542 Total ending allowance balance $ 3,621 $ 13,281 $ 1,871 $ 2,167 $ 20,940 December 31, 2020 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,401 $ 74 $ — $ 52 $ 1,527 Collectively evaluated for impairment 3,092 11,422 2,079 2,804 19,397 Total ending allowance balance $ 4,493 $ 11,496 $ 2,079 $ 2,856 $ 20,924 September 30, 2021 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 2,582 $ 8,356 $ 946 $ 333 $ 12,217 Loans collectively evaluated for impairment 269,290 783,120 253,695 202,607 1,508,712 Total ending loans balance $ 271,872 $ 791,476 $ 254,641 $ 202,940 $ 1,520,929 December 31, 2020 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 3,400 $ 5,117 $ 1,271 $ 801 $ 10,589 Loans collectively evaluated for impairment 366,852 714,028 238,742 211,287 1,530,909 Total ending loans balance $ 370,252 $ 719,145 $ 240,013 $ 212,088 $ 1,541,498 The following table presents loans individually evaluated for impairment recognized by class of loans as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 With no related allowance recorded: Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Commercial and agricultural: Commercial and industrial $ 995 $ 970 $ — $ 1,960 $ 1,963 $ — Commercial mortgages: Construction 143 143 — 188 189 — Commercial mortgages, other 7,312 4,651 — 6,814 4,760 — Residential mortgages 960 946 — 1,283 1,271 — Consumer loans: Home equity lines and loans 195 179 — 645 631 — With an allowance recorded: Commercial and agricultural: Commercial and industrial 5,487 1,612 1,525 5,228 1,437 1,401 Commercial mortgages: Commercial mortgages, other 3,554 3,562 1,800 258 168 74 Consumer loans: Home equity lines and loans 154 154 73 170 170 52 Total $ 18,800 $ 12,217 $ 3,398 $ 16,546 $ 10,589 $ 1,527 The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three and nine month periods ended September 30, 2021 and 2020 (in thousands): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended With no related allowance recorded: Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial and agricultural: Commercial and industrial $ 1,378 $ 3 $ 1,239 $ 2 $ 1,645 $ 3 $ 679 $ 2 Commercial mortgages: Construction 151 1 213 2 167 5 226 6 Commercial mortgages, other 4,665 8 4,515 — 4,743 23 3,938 — Residential mortgages 950 12 1,224 7 1,034 29 873 17 Consumer loans: Home equity lines & loans 184 2 650 2 299 5 399 5 With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,545 4 5,804 2 1,511 6 5,867 4 Commercial mortgages: Commercial mortgages, other 3,644 25 2,229 8 1,905 25 3,645 16 Consumer loans: Home equity lines and loans 155 — 175 — 160 — 88 — Total $ 12,672 $ 55 $ 16,049 $ 23 $ 11,464 $ 96 $ 15,715 $ 50 (1) Cash basis interest income approximates interest income recognized. The following table presents the recorded investment in non-accrual and loans past due 90 days or more and still accruing by class of loans as of September 30, 2021 and December 31, 2020 (in thousands): Non-accrual Loans Past Due 90 Days or More and Still Accruing September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Commercial and agricultural: Commercial and industrial $ 2,080 $ 2,167 $ 4 $ 2 Commercial mortgages: Construction 36 55 — — Commercial mortgages, other 4,212 4,415 — — Residential mortgages 845 1,632 — — Consumer loans: Home equity lines and loans 819 1,159 — — Indirect consumer loans 367 519 — — Direct consumer loans 14 5 — — Total $ 8,373 $ 9,952 $ 4 $ 2 The following tables present the aging of the recorded investment in loans as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 1,110 $ 1,375 $ 45 $ 2,530 $ 268,921 $ 271,451 Agricultural — — — — 421 421 Commercial mortgages: Construction — — — — 67,644 67,644 Commercial mortgages, other 2,056 2,615 217 4,888 718,944 723,832 Residential mortgages 1,226 131 436 1,793 252,848 254,641 Consumer loans: Home equity lines and loans 115 161 542 818 71,835 72,653 Indirect consumer loans 764 83 161 1,008 119,037 120,045 Direct consumer loans 13 7 8 28 10,214 10,242 Total $ 5,284 $ 4,372 $ 1,409 $ 11,065 $ 1,509,864 $ 1,520,929 December 31, 2020 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 520 $ 14 $ 30 $ 564 $ 369,404 $ 369,968 Agricultural — — — — 284 284 Commercial mortgages: Construction — — — — 62,164 62,164 Commercial mortgages, other 1,438 3,696 308 5,442 651,539 656,981 Residential mortgages 817 406 461 1,684 238,329 240,013 Consumer loans: Home equity lines and loans 521 41 474 1,036 77,725 78,761 Indirect consumer loans 1,268 198 252 1,718 119,135 120,853 Direct consumer loans 34 2 — 36 12,438 12,474 Total $ 4,598 $ 4,357 $ 1,525 $ 10,480 $ 1,531,018 $ 1,541,498 Troubled Debt Restructurings: A modification of a loan may result in classification as a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Corporation offers various types of modifications which may involve a change in the schedule of payments, a reduction in the interest rate, an extension of the maturity date, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, requesting additional collateral, releasing collateral for consideration, substituting or adding a new borrower or guarantor, a permanent reduction of the recorded investment in the loan or a permanent reduction of the interest on the loan. Under Section 4013 of the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 related modifications and therefore will not be treated as TDRs. At its highest point as of May 31, 2020, in conformance with Section 4013 of the CARES Act, total loan forbearances represented 15.77% of the Corporation's total loan portfolio, or $242.5 million. As of September 30, 2021, 11 loans totaling $3.0 million remained in modified status, representing 0.20% of the Corporation's total loan portfolio, of which 5 loans totaling $2.9 million had been modified more than once. As of September 30, 2021 and December 31, 2020, the Corporation has a recorded investment in TDRs of $10.8 million and $6.7 million, respectively. There were specific reserves of $2.2 million and $0.4 million allocated for TDRs at September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, TDRs totaling $5.7 million were accruing interest under the modified terms and $5.1 million were on non-accrual status. As of December 31, 2020, TDRs totaling $2.8 million were accruing interest under the modified terms and $3.9 million were on non-accrual status. The Corporation has committed no additional amounts as of both September 30, 2021 and December 31, 2020, to customers with outstanding loans that are classified as TDRs. During the three months ended September 30, 2021, the terms and conditions of two commercial and industrial loans were modified as TDRs. The modification of the terms of both of these loans included a postponement or reduction of the scheduled amortized payments for greater than a three month period. During the three month period ended September 30, 2020, the terms of certain loans were modified as TDRs. During the three months ended September 30, 2020, the modification of terms of one residential mortgage loan included the postponement of scheduled amortized payments for a period greater than three-months. Additionally, two commercial and industrial loans were modified with the maturity date extended on both loans and one with an extension at a stated rate lower than the current market rate for new debt with similar risk. In addition to the modifications noted above, during the nine months ended September 30, 2021 the terms and conditions of two commercial and industrial loans and two commercial mortgage loans were modified as TDRs. The modification of the terms of all of these loans included a postponement or reduction of the scheduled amortized payments for greater than a three month period. In addition to the modifications noted above, during the nine month period ended September 30, 2020 modifications included two commercial and industrial loans where deferral of payments were granted and both loans were risk rated Substandard while one loan was in non-accrual status prior to the modification. The modifications of four commercial mortgage loans included the deferral of payments with three of the the loans risk rated Substandard and in non-accrual status, three of the borrowers were over one year past due in real estate taxes and two of the loans were over 30 days past due in payments. The modifications of three residential mortgages included the deferral of payments while all three were in non-accrual status prior to the modifications, two were risk rated Substandard and one was over thirty days past due in payments. The modifications of three home equity lines and loans included the deferral of payments while all three loans were risk rated Substandard and in non-accrual status prior to the modifications. The following table presents loans by class modified as TDRs that occurred during the three month period ended September 30, 2021 and September 30, 2020 (dollars in thousands): September 30, 2021 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial and agricultural: Commercial and industrial 2 $ 502 $ 502 Total 2 $ 502 $ 502 September 30, 2020 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial and industrial 2 $ 1,138 $ 1,138 Residential mortgages 1 320 320 Total 3 $ 1,458 $ 1,458 The TDRs described above increased the allowance for loan losses by $0.2 million and resulted in no charge-offs during the three month period ended September 30, 2021. The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the three month period ended September 30, 2020. The following table presents loans by class modified as TDRs that occurred during the nine month period ended September 30, 2021 and September 30, 2020 (dollars in thousands): September 30, 2021 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial and agricultural: Commercial and industrial 2 $ 502 $ 502 Agricultural Commercial mortgages: Commercial mortgages, other 4 $ 6,094 $ 6,094 Total 6 $ 6,596 $ 6,596 September 30, 2020 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial and agricultural: Commercial and industrial 4 $ 2,068 $ 2,068 Agricultural Commercial mortgages: Commercial mortgages, other 4 1,297 1,297 Residential mortgages 4 997 997 Consumer loans: Home equity lines and loans 3 738 738 Total 15 $ 5,100 $ 5,100 The TDRs described above increased the allowance for loan losses by $1.9 million and resulted in no charge-offs during the nine month period ended September 30, 2021. The TDRs described above increased the allowance for loan losses by $0.1 million and resulted in no charge-offs during the nine month period ended September 30, 2020. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no payment defaults on any loans previously modified as TDRs within twelve months following the modification during the three and nine month periods ended September 30, 2021 and 2020. Credit Quality Indicators The Corporation establishes a risk rating at origination for all commercial loans. The main factors considered in assigning risk ratings include, but are not limited to: historic and future debt service coverage, collateral position, operating performance, liquidity, leverage, payment history, management ability, and the customer’s industry. Commercial relationship managers monitor all loans in their respective portfolios for any changes in the borrower’s ability to service its debt and affirm the risk ratings for the loans at least annually. For the retail loans, which include residential mortgages, indirect and direct consumer loans, home equity lines and loans, and credit cards, once a loan is properly approved and closed, the Corporation evaluates credit quality based upon loan repayment. The Corporation uses the risk rating system to identify criticized and classified loans. Commercial relationships within the criticized and classified risk ratings are analyzed quarterly. The Corporation uses the following definitions for criticized and classified loans (which are consistent with regulatory guidelines): Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capability of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Commercial loans not meeting the criteria above to be considered criticized or classified are considered to be pass rated loans. Loans listed as not rated are included in groups of homogeneous loans performing under terms of the loan notes. Based on the analyses performed as of September 30, 2021 and December 31, 2020, the risk category of the recorded investment of loans by class of loans is as follows (in thousands): September 30, 2021 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 264,526 $ 2,565 $ 3,166 $ 1,194 $ 271,451 Agricultural — 421 — — — 421 Commercial mortgages: Construction — 67,607 — 37 — 67,644 Commercial mortgages — 670,350 33,937 18,422 1,123 723,832 Residential mortgages 253,796 — — 845 — 254,641 Consumer loans: Home equity lines and loans 71,834 — — 819 — 72,653 Indirect consumer loans 119,678 — — 367 — 120,045 Direct consumer loans 10,228 — — 14 — 10,242 Total $ 455,536 $ 1,002,904 $ 36,502 $ 23,670 $ 2,317 $ 1,520,929 December 31, 2020 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 360,500 $ 2,999 $ 5,092 $ 1,377 $ 369,968 Agricultural — 284 — — — 284 Commercial mortgages: Construction — 59,885 — 2,279 — 62,164 Commercial mortgages — 616,090 23,631 16,128 1,132 656,981 Residential mortgages 238,381 — — 1,632 — 240,013 Consumer loans: Home equity lines and loans 77,602 — — 1,159 — 78,761 Indirect consumer loans 120,334 — — 519 — 120,853 Direct consumer loans 12,470 — — 4 — 12,474 Total $ 448,787 $ 1,036,759 $ 26,630 $ 26,813 $ 2,509 $ 1,541,498 The Corporation considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential and consumer loan classes, the Corporation also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the recorded investment in residential and consumer loans based on payment activity as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Consumer Loans Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 253,796 $ 71,834 $ 119,678 $ 10,228 Non-Performing 845 819 367 14 $ 254,641 $ 72,653 $ 120,045 $ 10,242 December 31, 2020 Consumer Loans Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 238,381 $ 77,602 $ 120,334 $ 12,470 Non-Performing 1,632 1,159 519 4 $ 240,013 $ 78,761 $ 120,853 $ 12,474 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Corporation used the following methods and significant assumptions to estimate fair value on a recurring basis: Available for Sale Securities: The fair values of securities available for sale are usually determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or matrix pricing, which is a mathematical technique widely used to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3 inputs). Equity Investments: Securities that are held to fund a deferred compensation plan and securities that have a readily determinable fair market value, are recorded at fair value with changes in fair value included in earnings. The fair values of equity investments are determined by quoted market prices (Level 1 inputs). Impaired Loans : At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value have been partially charged-off or receive specific allocations as part of the allowance for loan loss accounting. For collateral dependent loans, fair value is commonly based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, typically resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. OREO : Assets acquired through or instead of loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for both collateral dependent impaired loans and OREO are performed by certified general appraisers (commercial properties) or certified residential appraisers (residential properties) whose qualifications and licenses have been reviewed and verified by the Corporation. Once received, appraisals are reviewed for reasonableness of assumptions, approaches utilized, Uniform Standards of Professional Appraisal Practice and other regulatory compliance, as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals are generally completed within the previous 12 month period prior to a property being placed into OREO. On impaired loans, appraisal values are adjusted based on the age of the appraisal, the position of the lien, the type of the property and its condition. Derivatives : The fair values of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2 inputs). Derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices, and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counter-party's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation has considered the impact of any applicable credit enhancements, such as collateral postings. Although the Corporation has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize credit default rate assumptions (Level 3 inputs). Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement at September 30, 2021 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Obligations of U.S. Government and U.S. Government sponsored enterprises $ 40,337 $ 40,337 $ — $ — Mortgage-backed securities, residential 586,126 — 586,126 — Obligations of states and political subdivisions 42,352 — 42,352 — Corporate bonds and notes 17,061 — 17,061 — SBA loan pools 75,655 — 75,655 — Total available for sale securities $ 761,531 $ 40,337 $ 721,194 $ — Equity investments, at fair value $ 2,290 $ 2,290 $ — $ — Derivative assets 9,948 — 9,948 — Financial Liabilities: Derivative liabilities $ 10,310 $ — $ 10,310 $ — There were no transfers between Level 1 and Level 2 during the three and nine month periods ended September 30, 2021. Fair Value Measurement at December 31, 2020 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Mortgage-backed securities, residential $ 467,866 $ — $ 467,866 $ — Obligations of states and political subdivisions 43,405 — 43,405 — Corporate bonds and notes 9,035 — 9,035 — SBA loan pools 34,305 — 34,305 — Total available for sale securities $ 554,611 $ — $ 554,611 $ — Equity investments, at fair value $ 1,880 $ 1,880 $ — $ — Derivative assets 14,345 — 14,345 — Financial Liabilities: Derivative liabilities $ 14,702 $ — $ 14,702 $ — There were no transfers between Level 1 and Level 2 during the three and nine month periods ended September 30, 2020. Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Measurement at September 30, 2021 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Other real estate owned: Residential mortgages $ 124 $ — $ — $ 124 Consumer loans: Home equity lines and loans 47 — — 47 Total other real estate owned, net $ 171 $ — $ — $ 171 Fair Value Measurement at December 31, 2020 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Other real estate owned: Commercial mortgages: Commercial mortgages $ 111 $ — $ — $ 111 Residential mortgages 126 — — 126 Total other real estate owned, net $ 237 $ — $ — $ 237 The following tables present information related to Level 3 non-recurring fair value measurement at September 30, 2021 and December 31, 2020 (in thousands): Description Fair Value at September 30, 2021 Valuation Technique Unobservable Inputs Range [Weighted Average] at September 30, 2021 Impaired loans: OREO: Commercial mortgages: Residential mortgages $ 124 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] Consumer loans: Home equity lines and loans 47 Sales comparison Discount to appraised value 10.00% - 10.00% [10.00%] $ 171 Description Fair Value at December 31, 2020 Valuation Technique Unobservable Inputs Range [Weighted Average] at December 31, 2020 Impaired loans: OREO: Commercial mortgages: Commercial mortgages $ 111 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] Residential mortgages 126 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] $ 237 FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts and estimated fair values of other financial instruments, at September 30, 2021 and December 31, 2020, are as follows (in thousands): September 30, 2021 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 28,859 $ 28,859 $ — $ — $ 28,859 Interest-earning deposits in other financial institutions 32,838 32,838 — — 32,838 Equity investments 2,933 2,933 — — 2,933 Securities available for sale 761,531 40,337 721,194 — 761,531 Securities held to maturity 3,183 — 1,894 1,300 3,194 FHLBNY and FRBNY stock 3,562 — — — N/A Loans, net and loans held for sale 1,495,952 — — 1,483,417 1,483,417 Accrued interest receivable 6,040 73 1,706 4,261 6,040 Derivative Assets 9,948 — 9,948 — 9,948 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,943,403 $ 1,943,403 $ — $ — $ 1,943,403 Time deposits 230,419 — 232,107 — 232,107 Accrued interest payable 289 10 279 — 289 Derivative Liabilities 10,310 — 10,310 — 10,310 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. December 31, 2020 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 29,467 $ 29,467 $ — $ — $ 29,467 Interest-earning deposits in other financial institutions 79,071 79,071 — — 79,071 Equity investments 2,542 2,542 — — 2,542 Securities available for sale 554,611 — 554,611 — 554,611 Securities held to maturity 2,469 — 2,175 326 2,501 FHLBNY and FRBNY stock 3,150 — — — N/A Loans, net and loans held for sale 1,515,709 — — 1,514,318 1,514,318 Accrued interest receivable 6,271 — 1,356 4,915 6,271 Derivative Asset 14,345 — 14,345 — 14,345 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,752,043 $ 1,752,043 $ — $ — $ 1,752,043 Time deposits 285,731 — 288,398 — 288,398 Accrued interest payable 262 11 251 — 262 Derivative Liabilities 14,702 — 14,702 — 14,702 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Operating Leases The Corporation leases certain branch properties under long-term, operating lease agreements. The leases expire at various dates through 2033 and generally include renewal options. As of September 30, 2021, the weighted average remaining lease term was 9.40 years with a weighted average discount rate of 3.33%. Rent expense was $0.2 million for the three months ended September 30, 2021. Rent expense was $0.7 million for the nine months ended September 30, 2021. Certain leases provide for increases in future minimum annual rent payments as defined in the lease agreements. The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees. Leased branch properties at September 30, 2021 and December 31, 2020 consist of the following (in thousands): September 30, 2021 December 31, 2020 Operating lease right-of-use asset $ 7,145 $ 8,001 Less: accumulated amortization (559) (705) Change in lease agreements 498 (151) Operating lease right-of-use-assets, net $ 7,084 $ 7,145 The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of September 30, 2021 (in thousands): Year Amount 2021 $ 241 2022 970 2023 990 2024 923 2025 841 2026 and thereafter 4,501 Total minimum lease payments 8,466 Less: amount representing interest (1,239) Present value of net minimum lease payments $ 7,227 As of September 30, 2021, the Corporation had one operating lease that was signed, but had not yet commenced. The expected commencement date is October, 2021. Finance Leases The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of September 30, 2021, the weighted average remaining lease term was 11.36 years with a weighted average discount rate of 3.37%. The Corporation has included these leases in premises and equipment September 30, 2021 December 31, 2020 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,125) (1,875) Net book value $ 3,447 $ 3,697 The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of September 30, 2021 (in thousands): Year Amount 2021 $ 98 2022 391 2023 391 2024 391 2025 409 2026 and thereafter 2,840 Total minimum lease payments 4,520 Less: amount representing interest (861) Present value of net minimum lease payments $ 3,659 As of September 30, 2021, the Corporation had no finance leases that were signed, but had not yet commenced. Related Party Transactions The Bank leases its branch located at 1365 New Scotland Road, Slingerlands, New York, under a lease agreement through July, 2024 from a member of the Corporation's B oard of Directors with monthly rent and CAM related expenses totaling $4 thousand per month. Rent paid to this Board member totaled $13 thousand for each of the three month periods ended September 30, 2021 and 2020, respectively. Rent and CAM related expenses paid to this Board of Directors mem ber totaled $37 thousand and $40 thousand for the nine month periods ended September 30, 2021 and 2020, respectively. |
LEASES | LEASES Operating Leases The Corporation leases certain branch properties under long-term, operating lease agreements. The leases expire at various dates through 2033 and generally include renewal options. As of September 30, 2021, the weighted average remaining lease term was 9.40 years with a weighted average discount rate of 3.33%. Rent expense was $0.2 million for the three months ended September 30, 2021. Rent expense was $0.7 million for the nine months ended September 30, 2021. Certain leases provide for increases in future minimum annual rent payments as defined in the lease agreements. The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees. Leased branch properties at September 30, 2021 and December 31, 2020 consist of the following (in thousands): September 30, 2021 December 31, 2020 Operating lease right-of-use asset $ 7,145 $ 8,001 Less: accumulated amortization (559) (705) Change in lease agreements 498 (151) Operating lease right-of-use-assets, net $ 7,084 $ 7,145 The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of September 30, 2021 (in thousands): Year Amount 2021 $ 241 2022 970 2023 990 2024 923 2025 841 2026 and thereafter 4,501 Total minimum lease payments 8,466 Less: amount representing interest (1,239) Present value of net minimum lease payments $ 7,227 As of September 30, 2021, the Corporation had one operating lease that was signed, but had not yet commenced. The expected commencement date is October, 2021. Finance Leases The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of September 30, 2021, the weighted average remaining lease term was 11.36 years with a weighted average discount rate of 3.37%. The Corporation has included these leases in premises and equipment September 30, 2021 December 31, 2020 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,125) (1,875) Net book value $ 3,447 $ 3,697 The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of September 30, 2021 (in thousands): Year Amount 2021 $ 98 2022 391 2023 391 2024 391 2025 409 2026 and thereafter 2,840 Total minimum lease payments 4,520 Less: amount representing interest (861) Present value of net minimum lease payments $ 3,659 As of September 30, 2021, the Corporation had no finance leases that were signed, but had not yet commenced. Related Party Transactions The Bank leases its branch located at 1365 New Scotland Road, Slingerlands, New York, under a lease agreement through July, 2024 from a member of the Corporation's B oard of Directors with monthly rent and CAM related expenses totaling $4 thousand per month. Rent paid to this Board member totaled $13 thousand for each of the three month periods ended September 30, 2021 and 2020, respectively. Rent and CAM related expenses paid to this Board of Directors mem ber totaled $37 thousand and $40 thousand for the nine month periods ended September 30, 2021 and 2020, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The changes in goodwill included in the core banking segment during the nine month periods ended September 30, 2021 and 2020 were as follows (in thousands): 2021 2020 Beginning of year $ 21,824 $ 21,824 Acquired goodwill — — Ending balance September 30, $ 21,824 $ 21,824 Acquired intangible assets were as follows at September 30, 2021 and December 31, 2020 (in thousands): At September 30, 2021 At December 31, 2020 Balance Acquired Accumulated Amortization Balance Acquired Accumulated Amortization Core deposit intangibles $ 5,975 $ 5,975 $ 5,975 $ 5,962 Other customer relationship intangibles 5,633 5,607 5,633 5,388 Total $ 11,608 $ 11,582 $ 11,608 $ 11,350 Aggregate amortization expense was $42 thousand and $120 thousand for the three month periods ended September 30, 2021 and 2020, respectively. Aggregate amortization expense was $0.2 million and $0.4 millions for the nine month periods ended September 30, 2021 and 2020, respectively. The remaining estimated aggregate amortization expense at September 30, 2021 is listed below (in thousands): Year Estimated Expense 2021 $ 26 Total $ 26 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESThe Corporation is a party to certain financial instruments with off-balance sheet risk such as commitments under standby letters of credit, unused portions of lines of credit, overdraft protection and commitments to fund new loans. In accordance with GAAP, these financial instruments are not recorded in the financial statements. The Corporation's policy is to record such instruments when funded. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are generally used by the Corporation to manage clients' requests for funding and other client needs. The following table lists the contractual amounts of financial instruments with off-balance sheet risk at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 21,334 $ 49,839 $ 28,459 $ 39,056 Unused lines of credit 2,137 274,554 1,300 268,075 Standby letters of credit — 14,878 — 16,094 On February 4, 2020, the Corporation filed a lawsuit against Pioneer Bank, Albany, New York, in the Supreme Court of the State of New York in the County of Albany. As disclosed in the Corporation’s September 12, 2019 Current Report on Form 8-K, the Bank owns a participating interest totaling $4.2 million in an approximately $36.0 million commercial credit facility on which the borrower defaulted due to fraudulent activity. The Bank’s complaint alleges that Pioneer Bank, as lead bank, breached the participation agreement and engaged in fraud and negligent misrepresentation. The Corporation received a recovery of $0.5 million in April, 2020, and continues to pursue recovery of the remaining $3.7 million and accumulated expenses as a result of purchasing the participation interest. In the normal course of business, there are various outstanding claims and legal proceedings involving the Corporation or its subsidiaries. As of September 30, 2021, we believe that we are not a party to any additional pending legal, arbitration, or regulatory proceedings that could have a material adverse impact on our financial results or liquidity. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) represents the net unrealized holding gains or losses on securities available for sale and the funded status of the Corporation's defined benefit pension plan and other benefit plans, as of the consolidated balance sheet dates, net of the related tax effect. The following is a summary of the changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods indicated (in thousands): Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at July 1, 2021 $ 2,867 $ (6,725) $ (3,858) Other comprehensive income before reclassification (3,209) — (3,209) Amounts reclassified from accumulated other comprehensive income — 1 1 Net current period other comprehensive income (loss) (3,209) 1 (3,208) Balance at September 30, 2021 $ (342) $ (6,724) $ (7,066) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at July 1, 2020 $ 9,273 $ (7,131) 2,142 Other comprehensive income before reclassification (516) — (516) Amounts reclassified from accumulated other comprehensive income — 16 16 Net current period other comprehensive income (loss) (516) 16 (500) Balance at September 30, 2020 $ 8,757 $ (7,115) $ 1,642 Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2021 $ 9,127 $ (6,726) $ 2,401 Other comprehensive income before reclassification (9,469) — (9,469) Amounts reclassified from accumulated other comprehensive income — 2 2 Net current period other comprehensive income (9,469) 2 (9,467) Balance at September 30, 2021 $ (342) $ (6,724) $ (7,066) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2020 $ 1,368 $ (7,167) (5,799) Other comprehensive income before reclassification 7,389 — 7,389 Amounts reclassified from accumulated other comprehensive income — 52 52 Net current period other comprehensive income 7,389 52 7,441 Balance at September 30, 2020 $ 8,757 $ (7,115) $ 1,642 The following is the reclassification out of accumulated other comprehensive income for the periods indicated (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Components Three Months Ended Affected Line Item 2021 2020 Amortization of defined pension plan and other benefit plan items: Prior service costs (a) $ (55) $ (55) Other components of net periodic pension and postretirement benefits Actuarial losses (a) 57 77 Other components of net periodic pension and postretirement benefits Tax effect (1) (6) Income tax expense Net of tax 1 16 Total reclassification for the period, net of tax $ 1 $ 16 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other benefit plan costs (see Note 11 for additional information). Details about Accumulated Other Comprehensive Income (Loss) Components Nine Months Ended September 30, Affected Line Item 2021 2020 Amortization of defined pension plan and other benefit plan items: Prior service costs (a) $ (165) $ (165) Other components of net periodic pension and postretirement benefits Actuarial losses (a) 169 231 Other components of net periodic pension and postretirement benefits Tax effect (2) (14) Income tax expense Net of tax 2 52 Total reclassification for the period, net of tax $ 2 $ 52 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other benefit plan costs (see Note 11 for additional information). |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Corporation's revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. The following tables present the Corporation's non-interest income by revenue stream and reportable segment for the three and nine months ended September 30, 2021 and 2020 (in thousands). Items outside the scope of ASC 606 are noted as such. Three Months Ended September 30, 2021 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 623 $ — $ — $ 623 Other 233 — — 233 Interchange revenue from debit card transactions 1,237 — — 1,237 WMG fee income — 2,765 — 2,765 CFS fee and commission income — — 346 346 Net gains (losses) on sales of OREO — — — — Net gains on sales of loans (a) 242 — — 242 Loan servicing fees (a) 38 — — 38 Changes in fair value of equity investments (a) (13) — 28 15 Income from bank-owned life insurance (a) 13 — — 13 Other (a) 464 — (6) 458 Total non-interest income (loss) $ 2,837 $ 2,765 $ 368 $ 5,970 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. Three Months Ended September 30, 2020 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 668 $ — $ — $ 668 Other 72 — — 72 Interchange revenue from debit card transactions 1,082 — — 1,082 WMG fee income — 2,416 — 2,416 CFS fee and commission income — — 172 172 Net gains (losses) on sales of OREO 6 — — 6 Net gains on sales of loans (a) 553 — — 553 Loan servicing fees (a) 32 — — 32 Changes in fair value of equity investments (a) 71 — (14) 57 Income from bank-owned life insurance (a) 14 — — 14 Other (a) 320 — (53) 267 Total non-interest income $ 2,818 $ 2,416 $ 105 $ 5,339 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. Nine Months Ended September 30, 2021 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 1,561 $ — $ — $ 1,561 Other 744 — — 744 Interchange revenue from debit card transactions 3,622 — — 3,622 WMG fee income — 8,246 — 8,246 CFS fee and commission income — — 796 796 Net gains (losses) on sales of OREO (18) — — (18) Net gains on sales of loans (a) 884 — — 884 Loan servicing fees (a) 108 — — 108 Changes in fair value of equity investments (a) 117 — 86 203 Income from bank-owned life insurance (a) 39 — — 39 Other (a) 1,930 — (32) 1,898 Total non-interest income $ 8,987 $ 8,246 $ 850 $ 18,083 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. Nine Months Ended September 30, 2020 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 1,894 $ — $ — $ 1,894 Other 400 — — 400 Interchange revenue from debit card transactions 2,989 — — 2,989 WMG fee income — 6,968 — 6,968 CFS fee and commission income — — 502 502 Net gains on sales of OREO (71) — — (71) Net gains on sales of loans (a) 916 — — 916 Loan servicing fees (a) 88 — — 88 Change in fair value of equity securities (a) 49 — (82) (33) Income from bank-owned life insurance (a) 147 — — 147 Other (a) 1,383 — (33) 1,350 Total non-interest income $ 7,795 $ 6,968 $ 387 $ 15,150 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. A description of the Corporation's revenue streams accounted for under ASC 606 follows: Service Charges on Deposit Accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which included services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are recognized at the time the maintenance occurs. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance. Interchange Income from Debit Card Transactions: The Corporation earns interchange fees from debit cardholder transactions conducted through the MasterCard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to cardholder. WMG Fee Income (Gross): The Corporation earns wealth management fees from its contracts with customers to manage assets for investment, and/or to conduct transactions on their accounts. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management (AUM) at quarter-end. CFS Fee and Commission Income (Net): The Corporation earns fees from investment brokerage services provided to its customers by a third-party service provider. The Corporation receives commissions from the third-party service provider on a monthly basis based upon customer activity for the month. The Corporation (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers. Investment brokerage fees are presented net of related costs. The Corporation also earns fees from tax services provided to its customers. |
COMPONENTS OF QUARTERLY AND YEA
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS | COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS The components of net periodic expense for the Corporation’s pension and other benefit plans for the periods indicated are as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Qualified Pension Plan Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 271 322 813 966 Expected return on plan assets (673) (610) (2,019) (1,830) Amortization of unrecognized transition obligation — — — — Amortization of unrecognized prior service cost — — — — Amortization of unrecognized net loss 38 49 113 147 Net periodic pension benefit $ (364) $ (239) $ (1,093) $ (717) Supplemental Pension Plan Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 8 10 24 30 Expected return on plan assets — — — — Amortization of unrecognized prior service cost — — — — Amortization of unrecognized net loss 5 3 15 9 Net periodic supplemental pension cost $ 13 $ 13 $ 39 $ 39 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 1 2 5 6 Expected return on plan assets — — — — Amortization of unrecognized prior service cost (55) (55) (165) (165) Amortization of unrecognized net loss 14 25 41 75 Net periodic postretirement, medical and life benefit $ (40) $ (28) $ (119) $ (84) |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Corporation manages its operations through two primary business segments: core banking and WMG. The core banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate, and residential mortgage loans, primarily in the Corporation’s local markets, and to invest in securities. The WMG services segment provides revenues by providing trust and investment advisory services to clients. Accounting policies for the segments are the same as those described in Note 1 of the Corporation’s 2020 Annual Report on Form 10-K, which was filed with the SEC on March 24, 2021. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table. Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment.The Holding Company, CFS, and CRM column below includes amounts to eliminate transactions between segments (in thousands). Three months ended September 30, 2021 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 17,627 $ — $ 6 $ 17,633 Interest expense 801 — — 801 Net interest income 16,826 — 6 16,832 Provision for loan losses 356 — — 356 Net interest income after provision for loan losses 16,470 — 6 16,476 Other non-interest income 2,837 2,765 368 5,970 Other non-interest expenses 12,124 1,651 325 14,100 Income (loss) before income tax expense (benefit) 7,183 1,114 49 8,346 Income tax expense (benefit) 1,534 156 10 1,700 Segment net income (loss) $ 5,649 $ 958 $ 39 $ 6,646 Three months ended September 30, 2020 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 16,701 $ — $ 13 $ 16,714 Interest expense 845 — — 845 Net interest income 15,856 — 13 15,869 Provision for loan losses 679 — — 679 Net interest income after provision for loan losses 15,177 — 13 15,190 Other non-interest income 2,818 2,416 105 5,339 Other non-interest expenses 11,528 1,565 269 13,362 Income (loss) before income tax expense (benefit) 6,467 851 (151) 7,167 Income tax expense (benefit) 1,271 218 (33) 1,456 Segment net income (loss) $ 5,196 $ 633 $ (118) $ 5,711 Nine months ended September 30, 2021 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 51,298 $ — $ 20 $ 51,318 Interest expense 2,621 — — 2,621 Net interest income 48,677 — 20 48,697 Provision for loan losses (53) — — (53) Net interest income after provision for loan losses 48,730 — 20 48,750 Other non-interest income 8,987 8,246 850 18,083 Other non-interest expenses 35,401 4,921 982 41,304 Income (loss) before income tax expense (benefit) 22,316 3,325 (112) 25,529 Income tax expense (benefit) 4,865 735 (42) 5,558 Segment net income (loss) $ 17,451 $ 2,590 $ (70) $ 19,971 Segment assets $ 2,408,318 $ 3,216 $ 6,122 $ 2,417,656 Nine months ended September 30, 2020 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 49,527 $ — $ 43 $ 49,570 Interest expense 3,048 — — $ 3,048 Net interest income 46,479 — 43 46,522 Provision for loan losses 3,989 — — 3,989 Net interest income after provision for loan losses 42,490 — 43 42,533 Other non-interest income 7,795 6,968 387 15,150 Other non-interest expenses 34,690 4,814 835 40,339 Income (loss) before income tax expense (benefit) 15,595 2,154 (405) 17,344 Income tax expense (benefit) 2,884 552 (121) 3,315 Segment net income (loss) $ 12,711 $ 1,602 $ (284) $ 14,029 Segment assets $ 2,156,025 $ 3,153 $ 5,836 $ 2,165,014 |
STOCK COMPENSATION
STOCK COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK COMPENSATION | STOCK COMPENSATION On June 8, 2021, the Corporation's shareholders approved the Corporation's 2021 Equity Incentive Plan (the "2021 Plan") which provides for the grant of stock-based awards to officers, employees and directors of the Corporation and the Bank. A Form S-8 Registration Statement was filed with the SEC on June 18, 2021 registering shares to be awarded under the 2021 Plan. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date. No grants have been issued under the 2021 Plan during the nine months ended September 30, 2021. The Prior Plan shall remain in existence solely for the purpose of administering outstanding grants. Board of Directors' Stock Compensation During January 2021 and 2020, 9,291 and 7,923 shares, respectively, were re-issued from treasury to fund the stock component of directors' compensation for the respective prior year. An expense of $101 thousand and $67 thousand related to this compensation was recognized during the three month periods ended September 30, 2021 and 2020, respectively. An expense of $295 thousand and $232 thousand related to this compensation was recognized during the nine month periods ended September 30, 2021 and 2020, respectively. This expense is accrued as shares are earned. Officers' and Employees' Restricted Stock A summary of restricted stock activity for officers and employees for the three month period ended September 30, 2021 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at July 1, 2021 27,448 $ 40.18 Granted — Vested (261) 39.85 Forfeited or cancelled — Nonvested at September 30, 2021 27,187 $ 40.23 A summary of restricted stock activity for officers and employees for the nine month period ended September 30, 2021 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2021 31,830 $ 40.32 Granted — Vested (4,643) 41.15 Forfeited or cancelled — Nonvested at September 30, 2021 27,187 $ 40.23 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization | Organization The Corporation, through its wholly-owned subsidiaries, the Bank and CFS, provides a wide range of banking, financing, fiduciary and other financial services to its clients. The Corporation and the Bank are subject to the regulations of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. CRM, a wholly-owned subsidiary of the Co rporation, which was formed and began operations on May 31, 2016, is a Nevada-based captive insurance company which insures against certain risks unique to the operations of the Corporation and its subsidiaries and for which insurance may not be currently available or economically feasible in today's insurance marketplace. CRM pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. CRM is subject to regulations of the State of Nevada and undergoes periodic examinations by the Nevada Division of Insurance. |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 8 of Regulation S-X of the Exchange Act. These financial statements include the accounts of the Corporation and its subsidiaries, and all significant intercompany balances and transactions are eliminated in consolidation. Amounts in the prior periods' consolidated financial statements are reclassified whenever necessary to conform to the current period's presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included. The unaudited consolidated financial statements should be read in conjunction with the Corporation's 2020 Annual Report on Form 10-K for the year ended December 31, 2020. The results of operations for any interim periods are not necessarily indicative of the results which may be expected for the entire year or any other period. |
Reclassifications | Reclassifications Amounts in the prior year financial statements are reclassified whenever necessary to conform to the current year's presentation. |
Recent Accounting Pronouncements and Adoption of New Accounting Standards | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2019, though entities may adopt the amendments earlier for fiscal years beginning after December 15, 2018. In November 2019, the FASB adopted changes to delay the effective date of ASU 2016-13 to January 2023 for certain entities, including certain Securities and Exchange Commission filers, public business entities, and private companies. As a smaller reporting company, the Corporation is eligible for the delay. The Corporation has established a committee to oversee the implementation of CECL and has selected a vendor to assist in the implementation process. The model chosen utilizes a loss driver analysis which includes reasonable and supportable forecasts to estimate future losses. This analysis includes different methods such as discounted cash flows, remaining life and vintage analysis, which are used depending on the nature of the portfolio segment. The Corporation is running its current incurred loss model and a CECL model concurrently. The Corporation is in the process of updating its policies and internal controls accordingly. The corporation expects to recognize a one-time cumulative-effect adjustment to our allowance for loan losses upon adoption of CECL, effective of January 1, 2023, consistent with regulatory expectations set forth in interagency guidance. Section 4013 of the CARES Act gives entities temporary relief from the accounting and disclosure requirements for troubled debt restructurings (TDRs) under ASC 310-40, Receivables: Troubled Debt Restructurings by Creditors, in certain situations. Section 4013 of the CARES Act permits the suspension of ASC 310-40 for loan modifications that are made by financial institutions in response to the COVID-19 pandemic if (1) the borrower was not more than 30 days past due as of December 31, 2019, and (2) the modifications are related to arrangements that defer or delay the payment of principal or interest, or change the interest rate on the loan. All loan modifications made by the Corporation in response to the COVID-19 pandemic have been in accordance with Section 4013 of the CARES Act. Adoption of New Accounting Standards On January 1, 2020, the Corporation adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The objective of the ASU is to simplify the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Additionally, the ASU removes the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. The adoption of the ASU did not have a significant impact on the Corporation's consolidated financial statements. |
Earnings Per Common Share | Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. Issuable shares, including those related to directors’ restricted stock units and directors’ stock compensation, are considered outstanding and are included in the computation of basic earnings per share. All outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends are considered participating securities for this calculation. Restricted stock awards are grants of participating securities and are considered outstanding at grant date. Earnings per share information is adjusted to present comparative results for stock splits and stock dividends that occur. |
Fair Value Measurement | Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Corporation used the following methods and significant assumptions to estimate fair value on a recurring basis: Available for Sale Securities: The fair values of securities available for sale are usually determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or matrix pricing, which is a mathematical technique widely used to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3 inputs). Equity Investments: Securities that are held to fund a deferred compensation plan and securities that have a readily determinable fair market value, are recorded at fair value with changes in fair value included in earnings. The fair values of equity investments are determined by quoted market prices (Level 1 inputs). Impaired Loans : At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value have been partially charged-off or receive specific allocations as part of the allowance for loan loss accounting. For collateral dependent loans, fair value is commonly based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, typically resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. OREO : Assets acquired through or instead of loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for both collateral dependent impaired loans and OREO are performed by certified general appraisers (commercial properties) or certified residential appraisers (residential properties) whose qualifications and licenses have been reviewed and verified by the Corporation. Once received, appraisals are reviewed for reasonableness of assumptions, approaches utilized, Uniform Standards of Professional Appraisal Practice and other regulatory compliance, as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals are generally completed within the previous 12 month period prior to a property being placed into OREO. On impaired loans, appraisal values are adjusted based on the age of the appraisal, the position of the lien, the type of the property and its condition. Derivatives : The fair values of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2 inputs). Derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices, and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counter-party's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation has considered the impact of any applicable credit enhancements, such as collateral postings. Although the Corporation has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize credit default rate assumptions (Level 3 inputs). |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Estimated Fair Value of Securities Available for Sale | Amortized cost and estimated fair value of securities available for sale are as follows (in thousands): September 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes and bonds $ 40,499 $ — $ 162 $ 40,337 Mortgage-backed securities, residential 588,555 5,397 7,826 586,126 Obligations of states and political subdivisions 40,331 2,021 — 42,352 Corporate bonds and notes 17,000 116 55 17,061 SBA loan pools 75,612 398 355 75,655 Total $ 761,997 $ 7,932 $ 8,398 $ 761,531 December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Mortgage-backed securities, residential $ 458,245 $ 9,822 $ 201 $ 467,866 Obligations of states and political subdivisions 40,662 2,743 — 43,405 Corporate bonds and notes 9,000 47 12 9,035 SBA loan pools 34,455 42 192 34,305 Total $ 542,362 $ 12,654 $ 405 $ 554,611 |
Schedule of Amortized Cost and Estimated Fair Value of Securities Held to Maturity | Amortized cost and estimated fair value of securities held to maturity are as follows (in thousands): September 30, 2021 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 1,300 $ — $ — $ 1,300 Time deposits with other financial institutions 1,883 11 — 1,894 Total $ 3,183 $ 11 $ — $ 3,194 December 31, 2020 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 326 $ — $ — $ 326 Time deposits with other financial institutions 2,143 32 — 2,175 Total $ 2,469 $ 32 $ — $ 2,501 |
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of debt securities are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (in thousands): September 30, 2021 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 686 $ 689 $ 1,523 $ 1,532 After one, but within five years 75,962 77,278 860 862 After five, but within ten years 20,712 21,285 800 800 After ten years 470 498 — — 97,830 99,750 3,183 3,194 Mortgage-backed securities, residential 588,555 586,126 — — SBA loan pools 75,612 75,655 — — Total $ 761,997 $ 761,531 $ 3,183 $ 3,194 |
Schedule of Investment Securities Available for Sale in an Unrealized Loss Position | The following tables summarize the investment securities available for sale with unrealized losses at September 30, 2021 and December 31, 2020 by aggregated major security type and length of time in a continuous unrealized loss position (in thousands): Less than 12 months 12 months or longer Total September 30, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ 24,819 $ 162 $ — $ — $ 24,819 $ 162 Mortgage-backed securities, residential 383,380 7,707 4,146 119 387,526 7,826 Corporate bonds and notes 2,979 21 2,966 34 5,945 55 SBA loan pools 39,140 283 6,273 72 45,413 355 Total temporarily impaired securities $ 450,318 $ 8,173 $ 13,385 $ 225 $ 463,703 $ 8,398 Less than 12 months 12 months or longer Total December 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities, residential $ 70,037 $ 200 $ 970 $ 1 $ 71,007 $ 201 Corporate bonds and notes 2,988 12 — — 2,988 12 SBA loan pools 15,245 156 3,636 36 18,881 192 Total temporarily impaired securities $ 88,270 $ 368 $ 4,606 $ 37 $ 92,876 $ 405 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Composition of the Loan Portfolio by Type | The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands): September 30, 2021 December 31, 2020 Commercial and agricultural: Commercial and industrial $ 270,656 $ 368,663 Agricultural 419 283 Commercial mortgages: Construction 67,445 61,945 Commercial mortgages, other 721,709 654,663 Residential mortgages 253,991 239,401 Consumer loans: Home equity lines and loans 72,471 78,547 Indirect consumer loans 119,772 120,538 Direct consumer loans 10,205 12,423 Total loans, net of deferred loan fees and costs 1,516,668 1,536,463 Interest receivable on loans 4,261 5,035 Total recorded investment in loans $ 1,520,929 $ 1,541,498 |
Schedule of Allowance for Loan Losses by Portfolio Segment | The following tables present the activity in the allowance for loan losses by portfolio segment for the three month periods ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, 2021 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 3,628 $ 12,963 $ 1,791 $ 2,294 $ 20,676 Charge-offs — (44) — (190) (234) Recoveries 8 1 — 133 142 Net recoveries (charge-offs) 8 (43) — (57) (92) Provision (15) 361 80 (70) 356 Ending balance $ 3,621 $ 13,281 $ 1,871 $ 2,167 $ 20,940 Three Months Ended September 30, 2020 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 8,327 $ 10,549 $ 1,891 $ 3,363 $ 24,130 Charge-offs (68) — (42) (216) (326) Recoveries 18 2 — 87 107 Net recoveries (charge-offs) (50) 2 (42) (129) (219) Provision 180 361 232 (94) 679 Ending balance $ 8,457 $ 10,912 $ 2,081 $ 3,140 $ 24,590 The following tables present the activity in the allowance for loan losses by portfolio segment for the nine month periods ended September 30, 2021 and 2020 (in thousands): Nine Months Ended September 30, 2021 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 4,493 $ 11,496 $ 2,079 $ 2,856 $ 20,924 Charge-offs (25) (44) (71) (510) (650) Recoveries 283 2 10 424 719 Net recoveries (charge-offs) 258 (42) (61) (86) 69 Provision (1,130) 1,827 (147) (603) (53) Ending balance $ 3,621 $ 13,281 $ 1,871 $ 2,167 $ 20,940 Nine Months Ended September 30, 2020 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 10,227 $ 8,869 $ 1,252 $ 3,130 $ 23,478 Charge-offs (134) (2,143) (56) (915) (3,248) Recoveries 27 2 49 293 371 Net recoveries (charge-offs) (107) (2,141) (7) (622) (2,877) Provision (1,663) 4,184 836 632 3,989 Ending balance $ 8,457 $ 10,912 $ 2,081 $ 3,140 $ 24,590 |
Schedule of Allowance for Loan Losses and the Recorded Investment in Loans Based on Impairment Method | The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,525 $ 1,800 $ — $ 73 $ 3,398 Collectively evaluated for impairment 2,096 11,481 1,871 2,094 17,542 Total ending allowance balance $ 3,621 $ 13,281 $ 1,871 $ 2,167 $ 20,940 December 31, 2020 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,401 $ 74 $ — $ 52 $ 1,527 Collectively evaluated for impairment 3,092 11,422 2,079 2,804 19,397 Total ending allowance balance $ 4,493 $ 11,496 $ 2,079 $ 2,856 $ 20,924 September 30, 2021 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 2,582 $ 8,356 $ 946 $ 333 $ 12,217 Loans collectively evaluated for impairment 269,290 783,120 253,695 202,607 1,508,712 Total ending loans balance $ 271,872 $ 791,476 $ 254,641 $ 202,940 $ 1,520,929 December 31, 2020 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 3,400 $ 5,117 $ 1,271 $ 801 $ 10,589 Loans collectively evaluated for impairment 366,852 714,028 238,742 211,287 1,530,909 Total ending loans balance $ 370,252 $ 719,145 $ 240,013 $ 212,088 $ 1,541,498 |
Schedule of Impaired Financing Receivables | The following table presents loans individually evaluated for impairment recognized by class of loans as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 With no related allowance recorded: Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Commercial and agricultural: Commercial and industrial $ 995 $ 970 $ — $ 1,960 $ 1,963 $ — Commercial mortgages: Construction 143 143 — 188 189 — Commercial mortgages, other 7,312 4,651 — 6,814 4,760 — Residential mortgages 960 946 — 1,283 1,271 — Consumer loans: Home equity lines and loans 195 179 — 645 631 — With an allowance recorded: Commercial and agricultural: Commercial and industrial 5,487 1,612 1,525 5,228 1,437 1,401 Commercial mortgages: Commercial mortgages, other 3,554 3,562 1,800 258 168 74 Consumer loans: Home equity lines and loans 154 154 73 170 170 52 Total $ 18,800 $ 12,217 $ 3,398 $ 16,546 $ 10,589 $ 1,527 The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three and nine month periods ended September 30, 2021 and 2020 (in thousands): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended With no related allowance recorded: Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial and agricultural: Commercial and industrial $ 1,378 $ 3 $ 1,239 $ 2 $ 1,645 $ 3 $ 679 $ 2 Commercial mortgages: Construction 151 1 213 2 167 5 226 6 Commercial mortgages, other 4,665 8 4,515 — 4,743 23 3,938 — Residential mortgages 950 12 1,224 7 1,034 29 873 17 Consumer loans: Home equity lines & loans 184 2 650 2 299 5 399 5 With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,545 4 5,804 2 1,511 6 5,867 4 Commercial mortgages: Commercial mortgages, other 3,644 25 2,229 8 1,905 25 3,645 16 Consumer loans: Home equity lines and loans 155 — 175 — 160 — 88 — Total $ 12,672 $ 55 $ 16,049 $ 23 $ 11,464 $ 96 $ 15,715 $ 50 (1) Cash basis interest income approximates interest income recognized. The following table presents the recorded investment in non-accrual and loans past due 90 days or more and still accruing by class of loans as of September 30, 2021 and December 31, 2020 (in thousands): Non-accrual Loans Past Due 90 Days or More and Still Accruing September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Commercial and agricultural: Commercial and industrial $ 2,080 $ 2,167 $ 4 $ 2 Commercial mortgages: Construction 36 55 — — Commercial mortgages, other 4,212 4,415 — — Residential mortgages 845 1,632 — — Consumer loans: Home equity lines and loans 819 1,159 — — Indirect consumer loans 367 519 — — Direct consumer loans 14 5 — — Total $ 8,373 $ 9,952 $ 4 $ 2 |
Schedule of Recorded Investment in Past Due and Non-Accrual Status by Class of Loans | The following tables present the aging of the recorded investment in loans as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 1,110 $ 1,375 $ 45 $ 2,530 $ 268,921 $ 271,451 Agricultural — — — — 421 421 Commercial mortgages: Construction — — — — 67,644 67,644 Commercial mortgages, other 2,056 2,615 217 4,888 718,944 723,832 Residential mortgages 1,226 131 436 1,793 252,848 254,641 Consumer loans: Home equity lines and loans 115 161 542 818 71,835 72,653 Indirect consumer loans 764 83 161 1,008 119,037 120,045 Direct consumer loans 13 7 8 28 10,214 10,242 Total $ 5,284 $ 4,372 $ 1,409 $ 11,065 $ 1,509,864 $ 1,520,929 December 31, 2020 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 520 $ 14 $ 30 $ 564 $ 369,404 $ 369,968 Agricultural — — — — 284 284 Commercial mortgages: Construction — — — — 62,164 62,164 Commercial mortgages, other 1,438 3,696 308 5,442 651,539 656,981 Residential mortgages 817 406 461 1,684 238,329 240,013 Consumer loans: Home equity lines and loans 521 41 474 1,036 77,725 78,761 Indirect consumer loans 1,268 198 252 1,718 119,135 120,853 Direct consumer loans 34 2 — 36 12,438 12,474 Total $ 4,598 $ 4,357 $ 1,525 $ 10,480 $ 1,531,018 $ 1,541,498 |
Schedule of Loans by Class Modified as Troubled Debt Restructurings | The following table presents loans by class modified as TDRs that occurred during the three month period ended September 30, 2021 and September 30, 2020 (dollars in thousands): September 30, 2021 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial and agricultural: Commercial and industrial 2 $ 502 $ 502 Total 2 $ 502 $ 502 September 30, 2020 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial and industrial 2 $ 1,138 $ 1,138 Residential mortgages 1 320 320 Total 3 $ 1,458 $ 1,458 The following table presents loans by class modified as TDRs that occurred during the nine month period ended September 30, 2021 and September 30, 2020 (dollars in thousands): September 30, 2021 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial and agricultural: Commercial and industrial 2 $ 502 $ 502 Agricultural Commercial mortgages: Commercial mortgages, other 4 $ 6,094 $ 6,094 Total 6 $ 6,596 $ 6,596 September 30, 2020 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial and agricultural: Commercial and industrial 4 $ 2,068 $ 2,068 Agricultural Commercial mortgages: Commercial mortgages, other 4 1,297 1,297 Residential mortgages 4 997 997 Consumer loans: Home equity lines and loans 3 738 738 Total 15 $ 5,100 $ 5,100 |
Schedule of Risk Category of the Recorded Investment of Loans by Class of Loans | Based on the analyses performed as of September 30, 2021 and December 31, 2020, the risk category of the recorded investment of loans by class of loans is as follows (in thousands): September 30, 2021 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 264,526 $ 2,565 $ 3,166 $ 1,194 $ 271,451 Agricultural — 421 — — — 421 Commercial mortgages: Construction — 67,607 — 37 — 67,644 Commercial mortgages — 670,350 33,937 18,422 1,123 723,832 Residential mortgages 253,796 — — 845 — 254,641 Consumer loans: Home equity lines and loans 71,834 — — 819 — 72,653 Indirect consumer loans 119,678 — — 367 — 120,045 Direct consumer loans 10,228 — — 14 — 10,242 Total $ 455,536 $ 1,002,904 $ 36,502 $ 23,670 $ 2,317 $ 1,520,929 December 31, 2020 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 360,500 $ 2,999 $ 5,092 $ 1,377 $ 369,968 Agricultural — 284 — — — 284 Commercial mortgages: Construction — 59,885 — 2,279 — 62,164 Commercial mortgages — 616,090 23,631 16,128 1,132 656,981 Residential mortgages 238,381 — — 1,632 — 240,013 Consumer loans: Home equity lines and loans 77,602 — — 1,159 — 78,761 Indirect consumer loans 120,334 — — 519 — 120,853 Direct consumer loans 12,470 — — 4 — 12,474 Total $ 448,787 $ 1,036,759 $ 26,630 $ 26,813 $ 2,509 $ 1,541,498 |
Schedule of Recorded Investment in Residential and Consumer Loans Based on Payment Activity | The following tables present the recorded investment in residential and consumer loans based on payment activity as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Consumer Loans Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 253,796 $ 71,834 $ 119,678 $ 10,228 Non-Performing 845 819 367 14 $ 254,641 $ 72,653 $ 120,045 $ 10,242 December 31, 2020 Consumer Loans Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 238,381 $ 77,602 $ 120,334 $ 12,470 Non-Performing 1,632 1,159 519 4 $ 240,013 $ 78,761 $ 120,853 $ 12,474 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement at September 30, 2021 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Obligations of U.S. Government and U.S. Government sponsored enterprises $ 40,337 $ 40,337 $ — $ — Mortgage-backed securities, residential 586,126 — 586,126 — Obligations of states and political subdivisions 42,352 — 42,352 — Corporate bonds and notes 17,061 — 17,061 — SBA loan pools 75,655 — 75,655 — Total available for sale securities $ 761,531 $ 40,337 $ 721,194 $ — Equity investments, at fair value $ 2,290 $ 2,290 $ — $ — Derivative assets 9,948 — 9,948 — Financial Liabilities: Derivative liabilities $ 10,310 $ — $ 10,310 $ — There were no transfers between Level 1 and Level 2 during the three and nine month periods ended September 30, 2021. Fair Value Measurement at December 31, 2020 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Mortgage-backed securities, residential $ 467,866 $ — $ 467,866 $ — Obligations of states and political subdivisions 43,405 — 43,405 — Corporate bonds and notes 9,035 — 9,035 — SBA loan pools 34,305 — 34,305 — Total available for sale securities $ 554,611 $ — $ 554,611 $ — Equity investments, at fair value $ 1,880 $ 1,880 $ — $ — Derivative assets 14,345 — 14,345 — Financial Liabilities: Derivative liabilities $ 14,702 $ — $ 14,702 $ — |
Schedule of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Measurement at September 30, 2021 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Other real estate owned: Residential mortgages $ 124 $ — $ — $ 124 Consumer loans: Home equity lines and loans 47 — — 47 Total other real estate owned, net $ 171 $ — $ — $ 171 Fair Value Measurement at December 31, 2020 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Other real estate owned: Commercial mortgages: Commercial mortgages $ 111 $ — $ — $ 111 Residential mortgages 126 — — 126 Total other real estate owned, net $ 237 $ — $ — $ 237 |
Schedule of Nonrecurring Fair Value Measurement, Valuation Techniques | The following tables present information related to Level 3 non-recurring fair value measurement at September 30, 2021 and December 31, 2020 (in thousands): Description Fair Value at September 30, 2021 Valuation Technique Unobservable Inputs Range [Weighted Average] at September 30, 2021 Impaired loans: OREO: Commercial mortgages: Residential mortgages $ 124 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] Consumer loans: Home equity lines and loans 47 Sales comparison Discount to appraised value 10.00% - 10.00% [10.00%] $ 171 Description Fair Value at December 31, 2020 Valuation Technique Unobservable Inputs Range [Weighted Average] at December 31, 2020 Impaired loans: OREO: Commercial mortgages: Commercial mortgages $ 111 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] Residential mortgages 126 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] $ 237 |
Schedule of Carrying Value and Estimated Fair Value of Financial Instruments | The carrying amounts and estimated fair values of other financial instruments, at September 30, 2021 and December 31, 2020, are as follows (in thousands): September 30, 2021 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 28,859 $ 28,859 $ — $ — $ 28,859 Interest-earning deposits in other financial institutions 32,838 32,838 — — 32,838 Equity investments 2,933 2,933 — — 2,933 Securities available for sale 761,531 40,337 721,194 — 761,531 Securities held to maturity 3,183 — 1,894 1,300 3,194 FHLBNY and FRBNY stock 3,562 — — — N/A Loans, net and loans held for sale 1,495,952 — — 1,483,417 1,483,417 Accrued interest receivable 6,040 73 1,706 4,261 6,040 Derivative Assets 9,948 — 9,948 — 9,948 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,943,403 $ 1,943,403 $ — $ — $ 1,943,403 Time deposits 230,419 — 232,107 — 232,107 Accrued interest payable 289 10 279 — 289 Derivative Liabilities 10,310 — 10,310 — 10,310 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. December 31, 2020 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 29,467 $ 29,467 $ — $ — $ 29,467 Interest-earning deposits in other financial institutions 79,071 79,071 — — 79,071 Equity investments 2,542 2,542 — — 2,542 Securities available for sale 554,611 — 554,611 — 554,611 Securities held to maturity 2,469 — 2,175 326 2,501 FHLBNY and FRBNY stock 3,150 — — — N/A Loans, net and loans held for sale 1,515,709 — — 1,514,318 1,514,318 Accrued interest receivable 6,271 — 1,356 4,915 6,271 Derivative Asset 14,345 — 14,345 — 14,345 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,752,043 $ 1,752,043 $ — $ — $ 1,752,043 Time deposits 285,731 — 288,398 — 288,398 Accrued interest payable 262 11 251 — 262 Derivative Liabilities 14,702 — 14,702 — 14,702 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Leased Branch Properties | Leased branch properties at September 30, 2021 and December 31, 2020 consist of the following (in thousands): September 30, 2021 December 31, 2020 Operating lease right-of-use asset $ 7,145 $ 8,001 Less: accumulated amortization (559) (705) Change in lease agreements 498 (151) Operating lease right-of-use-assets, net $ 7,084 $ 7,145 |
Schedule of Undiscounted Cash Flows of the Operating Lease Liabilities | The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of September 30, 2021 (in thousands): Year Amount 2021 $ 241 2022 970 2023 990 2024 923 2025 841 2026 and thereafter 4,501 Total minimum lease payments 8,466 Less: amount representing interest (1,239) Present value of net minimum lease payments $ 7,227 |
Schedule of Leases in Premises and Equipment | The Corporation has included these leases in premises and equipment September 30, 2021 December 31, 2020 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,125) (1,875) Net book value $ 3,447 $ 3,697 |
Schedule of Future Minimum Financial Lease Payments | The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of September 30, 2021 (in thousands): Year Amount 2021 $ 98 2022 391 2023 391 2024 391 2025 409 2026 and thereafter 2,840 Total minimum lease payments 4,520 Less: amount representing interest (861) Present value of net minimum lease payments $ 3,659 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The changes in goodwill included in the core banking segment during the nine month periods ended September 30, 2021 and 2020 were as follows (in thousands): 2021 2020 Beginning of year $ 21,824 $ 21,824 Acquired goodwill — — Ending balance September 30, $ 21,824 $ 21,824 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Acquired intangible assets were as follows at September 30, 2021 and December 31, 2020 (in thousands): At September 30, 2021 At December 31, 2020 Balance Acquired Accumulated Amortization Balance Acquired Accumulated Amortization Core deposit intangibles $ 5,975 $ 5,975 $ 5,975 $ 5,962 Other customer relationship intangibles 5,633 5,607 5,633 5,388 Total $ 11,608 $ 11,582 $ 11,608 $ 11,350 |
Schedule of Expected Amortization Expense | The remaining estimated aggregate amortization expense at September 30, 2021 is listed below (in thousands): Year Estimated Expense 2021 $ 26 Total $ 26 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Amounts of Financial Instruments with Off-Balance Sheet Risk | The following table lists the contractual amounts of financial instruments with off-balance sheet risk at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 21,334 $ 49,839 $ 28,459 $ 39,056 Unused lines of credit 2,137 274,554 1,300 268,075 Standby letters of credit — 14,878 — 16,094 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The following is a summary of the changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods indicated (in thousands): Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at July 1, 2021 $ 2,867 $ (6,725) $ (3,858) Other comprehensive income before reclassification (3,209) — (3,209) Amounts reclassified from accumulated other comprehensive income — 1 1 Net current period other comprehensive income (loss) (3,209) 1 (3,208) Balance at September 30, 2021 $ (342) $ (6,724) $ (7,066) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at July 1, 2020 $ 9,273 $ (7,131) 2,142 Other comprehensive income before reclassification (516) — (516) Amounts reclassified from accumulated other comprehensive income — 16 16 Net current period other comprehensive income (loss) (516) 16 (500) Balance at September 30, 2020 $ 8,757 $ (7,115) $ 1,642 Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2021 $ 9,127 $ (6,726) $ 2,401 Other comprehensive income before reclassification (9,469) — (9,469) Amounts reclassified from accumulated other comprehensive income — 2 2 Net current period other comprehensive income (9,469) 2 (9,467) Balance at September 30, 2021 $ (342) $ (6,724) $ (7,066) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2020 $ 1,368 $ (7,167) (5,799) Other comprehensive income before reclassification 7,389 — 7,389 Amounts reclassified from accumulated other comprehensive income — 52 52 Net current period other comprehensive income 7,389 52 7,441 Balance at September 30, 2020 $ 8,757 $ (7,115) $ 1,642 |
Schedule of Reclassification Out of Accumulated Other Comprehensive Income | The following is the reclassification out of accumulated other comprehensive income for the periods indicated (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Components Three Months Ended Affected Line Item 2021 2020 Amortization of defined pension plan and other benefit plan items: Prior service costs (a) $ (55) $ (55) Other components of net periodic pension and postretirement benefits Actuarial losses (a) 57 77 Other components of net periodic pension and postretirement benefits Tax effect (1) (6) Income tax expense Net of tax 1 16 Total reclassification for the period, net of tax $ 1 $ 16 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other benefit plan costs (see Note 11 for additional information). Details about Accumulated Other Comprehensive Income (Loss) Components Nine Months Ended September 30, Affected Line Item 2021 2020 Amortization of defined pension plan and other benefit plan items: Prior service costs (a) $ (165) $ (165) Other components of net periodic pension and postretirement benefits Actuarial losses (a) 169 231 Other components of net periodic pension and postretirement benefits Tax effect (2) (14) Income tax expense Net of tax 2 52 Total reclassification for the period, net of tax $ 2 $ 52 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other benefit plan costs (see Note 11 for additional information). |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables present the Corporation's non-interest income by revenue stream and reportable segment for the three and nine months ended September 30, 2021 and 2020 (in thousands). Items outside the scope of ASC 606 are noted as such. Three Months Ended September 30, 2021 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 623 $ — $ — $ 623 Other 233 — — 233 Interchange revenue from debit card transactions 1,237 — — 1,237 WMG fee income — 2,765 — 2,765 CFS fee and commission income — — 346 346 Net gains (losses) on sales of OREO — — — — Net gains on sales of loans (a) 242 — — 242 Loan servicing fees (a) 38 — — 38 Changes in fair value of equity investments (a) (13) — 28 15 Income from bank-owned life insurance (a) 13 — — 13 Other (a) 464 — (6) 458 Total non-interest income (loss) $ 2,837 $ 2,765 $ 368 $ 5,970 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. Three Months Ended September 30, 2020 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 668 $ — $ — $ 668 Other 72 — — 72 Interchange revenue from debit card transactions 1,082 — — 1,082 WMG fee income — 2,416 — 2,416 CFS fee and commission income — — 172 172 Net gains (losses) on sales of OREO 6 — — 6 Net gains on sales of loans (a) 553 — — 553 Loan servicing fees (a) 32 — — 32 Changes in fair value of equity investments (a) 71 — (14) 57 Income from bank-owned life insurance (a) 14 — — 14 Other (a) 320 — (53) 267 Total non-interest income $ 2,818 $ 2,416 $ 105 $ 5,339 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. Nine Months Ended September 30, 2021 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 1,561 $ — $ — $ 1,561 Other 744 — — 744 Interchange revenue from debit card transactions 3,622 — — 3,622 WMG fee income — 8,246 — 8,246 CFS fee and commission income — — 796 796 Net gains (losses) on sales of OREO (18) — — (18) Net gains on sales of loans (a) 884 — — 884 Loan servicing fees (a) 108 — — 108 Changes in fair value of equity investments (a) 117 — 86 203 Income from bank-owned life insurance (a) 39 — — 39 Other (a) 1,930 — (32) 1,898 Total non-interest income $ 8,987 $ 8,246 $ 850 $ 18,083 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. Nine Months Ended September 30, 2020 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 1,894 $ — $ — $ 1,894 Other 400 — — 400 Interchange revenue from debit card transactions 2,989 — — 2,989 WMG fee income — 6,968 — 6,968 CFS fee and commission income — — 502 502 Net gains on sales of OREO (71) — — (71) Net gains on sales of loans (a) 916 — — 916 Loan servicing fees (a) 88 — — 88 Change in fair value of equity securities (a) 49 — (82) (33) Income from bank-owned life insurance (a) 147 — — 147 Other (a) 1,383 — (33) 1,350 Total non-interest income $ 7,795 $ 6,968 $ 387 $ 15,150 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. |
COMPONENTS OF QUARTERLY AND Y_2
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Costs | The components of net periodic expense for the Corporation’s pension and other benefit plans for the periods indicated are as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Qualified Pension Plan Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 271 322 813 966 Expected return on plan assets (673) (610) (2,019) (1,830) Amortization of unrecognized transition obligation — — — — Amortization of unrecognized prior service cost — — — — Amortization of unrecognized net loss 38 49 113 147 Net periodic pension benefit $ (364) $ (239) $ (1,093) $ (717) Supplemental Pension Plan Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 8 10 24 30 Expected return on plan assets — — — — Amortization of unrecognized prior service cost — — — — Amortization of unrecognized net loss 5 3 15 9 Net periodic supplemental pension cost $ 13 $ 13 $ 39 $ 39 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 1 2 5 6 Expected return on plan assets — — — — Amortization of unrecognized prior service cost (55) (55) (165) (165) Amortization of unrecognized net loss 14 25 41 75 Net periodic postretirement, medical and life benefit $ (40) $ (28) $ (119) $ (84) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Summarized Financial Information Showing Reconciliation of Segment Net Income Loss and Assets to Consolidated Results | The Holding Company, CFS, and CRM column below includes amounts to eliminate transactions between segments (in thousands). Three months ended September 30, 2021 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 17,627 $ — $ 6 $ 17,633 Interest expense 801 — — 801 Net interest income 16,826 — 6 16,832 Provision for loan losses 356 — — 356 Net interest income after provision for loan losses 16,470 — 6 16,476 Other non-interest income 2,837 2,765 368 5,970 Other non-interest expenses 12,124 1,651 325 14,100 Income (loss) before income tax expense (benefit) 7,183 1,114 49 8,346 Income tax expense (benefit) 1,534 156 10 1,700 Segment net income (loss) $ 5,649 $ 958 $ 39 $ 6,646 Three months ended September 30, 2020 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 16,701 $ — $ 13 $ 16,714 Interest expense 845 — — 845 Net interest income 15,856 — 13 15,869 Provision for loan losses 679 — — 679 Net interest income after provision for loan losses 15,177 — 13 15,190 Other non-interest income 2,818 2,416 105 5,339 Other non-interest expenses 11,528 1,565 269 13,362 Income (loss) before income tax expense (benefit) 6,467 851 (151) 7,167 Income tax expense (benefit) 1,271 218 (33) 1,456 Segment net income (loss) $ 5,196 $ 633 $ (118) $ 5,711 Nine months ended September 30, 2021 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 51,298 $ — $ 20 $ 51,318 Interest expense 2,621 — — 2,621 Net interest income 48,677 — 20 48,697 Provision for loan losses (53) — — (53) Net interest income after provision for loan losses 48,730 — 20 48,750 Other non-interest income 8,987 8,246 850 18,083 Other non-interest expenses 35,401 4,921 982 41,304 Income (loss) before income tax expense (benefit) 22,316 3,325 (112) 25,529 Income tax expense (benefit) 4,865 735 (42) 5,558 Segment net income (loss) $ 17,451 $ 2,590 $ (70) $ 19,971 Segment assets $ 2,408,318 $ 3,216 $ 6,122 $ 2,417,656 Nine months ended September 30, 2020 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 49,527 $ — $ 43 $ 49,570 Interest expense 3,048 — — $ 3,048 Net interest income 46,479 — 43 46,522 Provision for loan losses 3,989 — — 3,989 Net interest income after provision for loan losses 42,490 — 43 42,533 Other non-interest income 7,795 6,968 387 15,150 Other non-interest expenses 34,690 4,814 835 40,339 Income (loss) before income tax expense (benefit) 15,595 2,154 (405) 17,344 Income tax expense (benefit) 2,884 552 (121) 3,315 Segment net income (loss) $ 12,711 $ 1,602 $ (284) $ 14,029 Segment assets $ 2,156,025 $ 3,153 $ 5,836 $ 2,165,014 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | A summary of restricted stock activity for officers and employees for the three month period ended September 30, 2021 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at July 1, 2021 27,448 $ 40.18 Granted — Vested (261) 39.85 Forfeited or cancelled — Nonvested at September 30, 2021 27,187 $ 40.23 A summary of restricted stock activity for officers and employees for the nine month period ended September 30, 2021 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2021 31,830 $ 40.32 Granted — Vested (4,643) 41.15 Forfeited or cancelled — Nonvested at September 30, 2021 27,187 $ 40.23 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding, basic (in shares) | 4,684,000 | 4,773,000 | 4,687,000 | 4,836,000 |
Weighted average shares outstanding, diluted (in shares) | 4,684,000 | 4,773,000 | 4,687,000 | 4,836,000 |
Dilutive common stock equivalents (in shares) | 0 | 0 | 0 | 0 |
SECURITIES - Securities Availab
SECURITIES - Securities Available for Sale (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||||
Amortized Cost | $ 761,997,000 | $ 761,997,000 | $ 542,362,000 | ||
Unrealized Gains | 7,932,000 | 7,932,000 | 12,654,000 | ||
Unrealized Losses | 8,398,000 | 8,398,000 | 405,000 | ||
Estimated Fair Value | 761,531,000 | 761,531,000 | 554,611,000 | ||
Amortized Cost | |||||
Within one year | 686,000 | 686,000 | |||
After one, but within five years | 75,962,000 | 75,962,000 | |||
After five, but within ten years | 20,712,000 | 20,712,000 | |||
After ten years | 470,000 | 470,000 | |||
Total | 97,830,000 | 97,830,000 | |||
Amortized Cost | 761,997,000 | 761,997,000 | 542,362,000 | ||
Fair Value | |||||
Within one year | 689,000 | 689,000 | |||
After one, but within five years | 77,278,000 | 77,278,000 | |||
After five, but within ten years | 21,285,000 | 21,285,000 | |||
After ten years | 498,000 | 498,000 | |||
Total | 99,750,000 | 99,750,000 | |||
Fair value | 761,531,000 | 761,531,000 | 554,611,000 | ||
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract] | |||||
Proceeds form sale of securities resulting in gain (loss) | 0 | $ 0 | 0 | $ 0 | |
U.S. Treasury notes and bonds | |||||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||||
Amortized Cost | 40,499,000 | 40,499,000 | |||
Unrealized Gains | 0 | 0 | |||
Unrealized Losses | 162,000 | 162,000 | |||
Estimated Fair Value | 40,337,000 | 40,337,000 | |||
Amortized Cost | |||||
Amortized Cost | 40,499,000 | 40,499,000 | |||
Fair Value | |||||
Fair value | 40,337,000 | 40,337,000 | |||
Mortgage-backed securities, residential | |||||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||||
Amortized Cost | 588,555,000 | 588,555,000 | 458,245,000 | ||
Unrealized Gains | 5,397,000 | 5,397,000 | 9,822,000 | ||
Unrealized Losses | 7,826,000 | 7,826,000 | 201,000 | ||
Estimated Fair Value | 586,126,000 | 586,126,000 | 467,866,000 | ||
Amortized Cost | |||||
Without single maturity date | 588,555,000 | 588,555,000 | |||
Amortized Cost | 588,555,000 | 588,555,000 | 458,245,000 | ||
Fair Value | |||||
Without single maturity date | 586,126,000 | 586,126,000 | |||
Fair value | 586,126,000 | 586,126,000 | 467,866,000 | ||
Obligations of states and political subdivisions | |||||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||||
Amortized Cost | 40,331,000 | 40,331,000 | 40,662,000 | ||
Unrealized Gains | 2,021,000 | 2,021,000 | 2,743,000 | ||
Unrealized Losses | 0 | 0 | 0 | ||
Estimated Fair Value | 42,352,000 | 42,352,000 | 43,405,000 | ||
Amortized Cost | |||||
Amortized Cost | 40,331,000 | 40,331,000 | 40,662,000 | ||
Fair Value | |||||
Fair value | 42,352,000 | 42,352,000 | 43,405,000 | ||
Corporate bonds and notes | |||||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||||
Amortized Cost | 17,000,000 | 17,000,000 | 9,000,000 | ||
Unrealized Gains | 116,000 | 116,000 | 47,000 | ||
Unrealized Losses | 55,000 | 55,000 | 12,000 | ||
Estimated Fair Value | 17,061,000 | 17,061,000 | 9,035,000 | ||
Amortized Cost | |||||
Amortized Cost | 17,000,000 | 17,000,000 | 9,000,000 | ||
Fair Value | |||||
Fair value | 17,061,000 | 17,061,000 | 9,035,000 | ||
SBA loan pools | |||||
Amortized cost and estimated fair value of securities available for sale [Abstract] | |||||
Amortized Cost | 75,612,000 | 75,612,000 | 34,455,000 | ||
Unrealized Gains | 398,000 | 398,000 | 42,000 | ||
Unrealized Losses | 355,000 | 355,000 | 192,000 | ||
Estimated Fair Value | 75,655,000 | 75,655,000 | 34,305,000 | ||
Amortized Cost | |||||
Without single maturity date | 75,612,000 | 75,612,000 | |||
Amortized Cost | 75,612,000 | 75,612,000 | 34,455,000 | ||
Fair Value | |||||
Without single maturity date | 75,655,000 | 75,655,000 | |||
Fair value | $ 75,655,000 | $ 75,655,000 | $ 34,305,000 |
SECURITIES - Securities Held to
SECURITIES - Securities Held to Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized cost and estimated fair value of securities held to maturity [Abstract] | ||
Amortized Cost | $ 3,183 | $ 2,469 |
Unrecognized Gains | 11 | 32 |
Unrecognized Losses | 0 | 0 |
Estimated Fair Value | 3,194 | 2,501 |
Amortized Cost | ||
Within one year | 1,523 | |
After one, but within five years | 860 | |
After five, but within ten years | 800 | |
After ten years | 0 | |
Total | 3,183 | |
Securities held to maturity | 3,183 | 2,469 |
Fair Value | ||
Within one year | 1,532 | |
After one, but within five years | 862 | |
After five, but within ten years | 800 | |
After ten years | 0 | |
Total | 3,194 | |
Securities held to maturity | 3,194 | 2,501 |
Obligations of states and political subdivisions | ||
Amortized cost and estimated fair value of securities held to maturity [Abstract] | ||
Amortized Cost | 1,300 | 326 |
Unrecognized Gains | 0 | 0 |
Unrecognized Losses | 0 | 0 |
Estimated Fair Value | 1,300 | 326 |
Amortized Cost | ||
Securities held to maturity | 1,300 | 326 |
Fair Value | ||
Securities held to maturity | 1,300 | 326 |
Time deposits with other financial institutions | ||
Amortized cost and estimated fair value of securities held to maturity [Abstract] | ||
Amortized Cost | 1,883 | 2,143 |
Unrecognized Gains | 11 | 32 |
Unrecognized Losses | 0 | 0 |
Estimated Fair Value | 1,894 | 2,175 |
Amortized Cost | ||
Securities held to maturity | 1,883 | 2,143 |
Fair Value | ||
Securities held to maturity | 1,894 | $ 2,175 |
Mortgage-backed securities, residential | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
SBA loan pools | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | $ 0 |
SECURITIES - Investment Securit
SECURITIES - Investment Securities Available for Sale in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value | ||
Less than 12 months | $ 450,318 | $ 88,270 |
12 months or longer | 13,385 | 4,606 |
Total | 463,703 | 92,876 |
Unrealized Losses | ||
Less than 12 months | 8,173 | 368 |
12 months or longer | 225 | 37 |
Total | 8,398 | 405 |
U.S. Treasury notes and bonds | ||
Fair Value | ||
Less than 12 months | 24,819 | |
12 months or longer | 0 | |
Total | 24,819 | |
Unrealized Losses | ||
Less than 12 months | 162 | |
12 months or longer | 0 | |
Total | 162 | |
Mortgage-backed securities, residential | ||
Fair Value | ||
Less than 12 months | 383,380 | 70,037 |
12 months or longer | 4,146 | 970 |
Total | 387,526 | 71,007 |
Unrealized Losses | ||
Less than 12 months | 7,707 | 200 |
12 months or longer | 119 | 1 |
Total | 7,826 | 201 |
Corporate bonds and notes | ||
Fair Value | ||
Less than 12 months | 2,979 | 2,988 |
12 months or longer | 2,966 | 0 |
Total | 5,945 | 2,988 |
Unrealized Losses | ||
Less than 12 months | 21 | 12 |
12 months or longer | 34 | 0 |
Total | 55 | 12 |
SBA loan pools | ||
Fair Value | ||
Less than 12 months | 39,140 | 15,245 |
12 months or longer | 6,273 | 3,636 |
Total | 45,413 | 18,881 |
Unrealized Losses | ||
Less than 12 months | 283 | 156 |
12 months or longer | 72 | 36 |
Total | $ 355 | $ 192 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | $ 1,516,668 | $ 1,536,463 |
Interest receivable on loans | 4,261 | 5,035 |
Total ending loans balance | 1,520,929 | 1,541,498 |
Commercial and industrial | ||
Composition of loan portfolio [Abstract] | ||
Payroll protection program loans | 68,100 | 150,900 |
Commercial and agricultural: | ||
Composition of loan portfolio [Abstract] | ||
Total ending loans balance | 271,872 | 370,252 |
Commercial and agricultural: | Commercial and industrial | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 270,656 | 368,663 |
Total ending loans balance | 271,451 | 369,968 |
Commercial and agricultural: | Agricultural | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 419 | 283 |
Total ending loans balance | 421 | 284 |
Commercial mortgages: | ||
Composition of loan portfolio [Abstract] | ||
Total ending loans balance | 791,476 | 719,145 |
Commercial mortgages: | Construction | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 67,445 | 61,945 |
Total ending loans balance | 67,644 | 62,164 |
Commercial mortgages: | Commercial mortgages | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 721,709 | 654,663 |
Total ending loans balance | 723,832 | 656,981 |
Residential mortgages | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 253,991 | 239,401 |
Total ending loans balance | 254,641 | 240,013 |
Consumer loans: | ||
Composition of loan portfolio [Abstract] | ||
Total ending loans balance | 202,940 | 212,088 |
Consumer loans: | Home equity lines and loans | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 72,471 | 78,547 |
Total ending loans balance | 72,653 | 78,761 |
Consumer loans: | Indirect consumer loans | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 119,772 | 120,538 |
Total ending loans balance | 120,045 | 120,853 |
Consumer loans: | Direct consumer loans | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 10,205 | 12,423 |
Total ending loans balance | $ 10,242 | $ 12,474 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Allowance for loan losses, by portfolio segment [Roll Forward] | |||||
Beginning balance | $ 20,676 | $ 24,130 | $ 20,924 | $ 23,478 | |
Charge-offs | (234) | (326) | (650) | (3,248) | |
Recoveries | 142 | 107 | 719 | 371 | |
Net recoveries (charge-offs) | (92) | (219) | 69 | (2,877) | |
Provision | 356 | 679 | (53) | 3,989 | |
Ending balance | 20,940 | 24,590 | 20,940 | 24,590 | |
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 3,398 | 3,398 | $ 1,527 | ||
Collectively evaluated for impairment | 17,542 | 17,542 | 19,397 | ||
Total ending allowance balance | 20,940 | 24,590 | 20,940 | 24,590 | 20,924 |
Loans: | |||||
Loans individually evaluated for impairment | 12,217 | 12,217 | 10,589 | ||
Loans collectively evaluated for impairment | 1,508,712 | 1,508,712 | 1,530,909 | ||
Total ending loans balance | 1,520,929 | 1,520,929 | 1,541,498 | ||
Commercial and agricultural: | |||||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||||
Beginning balance | 3,628 | 8,327 | 4,493 | 10,227 | |
Charge-offs | 0 | (68) | (25) | (134) | |
Recoveries | 8 | 18 | 283 | 27 | |
Net recoveries (charge-offs) | 8 | (50) | 258 | (107) | |
Provision | (15) | 180 | (1,130) | (1,663) | |
Ending balance | 3,621 | 8,457 | 3,621 | 8,457 | |
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 1,525 | 1,525 | 1,401 | ||
Collectively evaluated for impairment | 2,096 | 2,096 | 3,092 | ||
Total ending allowance balance | 3,621 | 8,457 | 3,621 | 8,457 | 4,493 |
Loans: | |||||
Loans individually evaluated for impairment | 2,582 | 2,582 | 3,400 | ||
Loans collectively evaluated for impairment | 269,290 | 269,290 | 366,852 | ||
Total ending loans balance | 271,872 | 271,872 | 370,252 | ||
Commercial mortgages: | |||||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||||
Beginning balance | 12,963 | 10,549 | 11,496 | 8,869 | |
Charge-offs | (44) | 0 | (44) | (2,143) | |
Recoveries | 1 | 2 | 2 | 2 | |
Net recoveries (charge-offs) | (43) | 2 | (42) | (2,141) | |
Provision | 361 | 361 | 1,827 | 4,184 | |
Ending balance | 13,281 | 10,912 | 13,281 | 10,912 | |
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 1,800 | 1,800 | 74 | ||
Collectively evaluated for impairment | 11,481 | 11,481 | 11,422 | ||
Total ending allowance balance | 13,281 | 10,912 | 13,281 | 10,912 | 11,496 |
Loans: | |||||
Loans individually evaluated for impairment | 8,356 | 8,356 | 5,117 | ||
Loans collectively evaluated for impairment | 783,120 | 783,120 | 714,028 | ||
Total ending loans balance | 791,476 | 791,476 | 719,145 | ||
Residential mortgages | |||||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||||
Beginning balance | 1,791 | 1,891 | 2,079 | 1,252 | |
Charge-offs | 0 | (42) | (71) | (56) | |
Recoveries | 0 | 0 | 10 | 49 | |
Net recoveries (charge-offs) | 0 | (42) | (61) | (7) | |
Provision | 80 | 232 | (147) | 836 | |
Ending balance | 1,871 | 2,081 | 1,871 | 2,081 | |
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 1,871 | 1,871 | 2,079 | ||
Total ending allowance balance | 1,871 | 2,081 | 1,871 | 2,081 | 2,079 |
Loans: | |||||
Loans individually evaluated for impairment | 946 | 946 | 1,271 | ||
Loans collectively evaluated for impairment | 253,695 | 253,695 | 238,742 | ||
Total ending loans balance | 254,641 | 254,641 | 240,013 | ||
Consumer loans: | |||||
Allowance for loan losses, by portfolio segment [Roll Forward] | |||||
Beginning balance | 2,294 | 3,363 | 2,856 | 3,130 | |
Charge-offs | (190) | (216) | (510) | (915) | |
Recoveries | 133 | 87 | 424 | 293 | |
Net recoveries (charge-offs) | (57) | (129) | (86) | (622) | |
Provision | (70) | (94) | (603) | 632 | |
Ending balance | 2,167 | 3,140 | 2,167 | 3,140 | |
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 73 | 73 | 52 | ||
Collectively evaluated for impairment | 2,094 | 2,094 | 2,804 | ||
Total ending allowance balance | 2,167 | $ 3,140 | 2,167 | $ 3,140 | 2,856 |
Loans: | |||||
Loans individually evaluated for impairment | 333 | 333 | 801 | ||
Loans collectively evaluated for impairment | 202,607 | 202,607 | 211,287 | ||
Total ending loans balance | $ 202,940 | $ 202,940 | $ 212,088 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Unpaid Principal Balance | |||||
Unpaid principal balance, total | $ 18,800 | $ 18,800 | $ 16,546 | ||
Recorded Investment | |||||
Recorded investment, total | 12,217 | 12,217 | 10,589 | ||
Allowance for Loan Losses Allocated | 3,398 | 3,398 | 1,527 | ||
Average Recorded Investment | |||||
Average recorded investment, total | 12,672 | $ 16,049 | 11,464 | $ 15,715 | |
Interest Income Recognized | |||||
Interest income, accrual method, total | 55 | 23 | 96 | 50 | |
Commercial and agricultural: | Commercial and industrial | |||||
Unpaid Principal Balance | |||||
With no related allowance, unpaid principal balance | 995 | 995 | 1,960 | ||
With related allowance, unpaid principal balance | 5,487 | 5,487 | 5,228 | ||
Recorded Investment | |||||
With no related allowance, recorded investment | 970 | 970 | 1,963 | ||
With related allowance, recorded investment | 1,612 | 1,612 | 1,437 | ||
Allowance for Loan Losses Allocated | 1,525 | 1,525 | 1,401 | ||
Average Recorded Investment | |||||
With no related allowance, average recorded investment | 1,378 | 1,239 | 1,645 | 679 | |
With related allowance, average recorded investment | 1,545 | 5,804 | 1,511 | 5,867 | |
Interest Income Recognized | |||||
With no related allowance, interest income, accrual method | 3 | 2 | 3 | 2 | |
With related allowance, interest income, accrual method | 4 | 2 | 6 | 4 | |
Commercial mortgages: | Construction | |||||
Unpaid Principal Balance | |||||
With no related allowance, unpaid principal balance | 143 | 143 | 188 | ||
Recorded Investment | |||||
With no related allowance, recorded investment | 143 | 143 | 189 | ||
Average Recorded Investment | |||||
With no related allowance, average recorded investment | 151 | 213 | 167 | 226 | |
Interest Income Recognized | |||||
With no related allowance, interest income, accrual method | 1 | 2 | 5 | 6 | |
Commercial mortgages: | Commercial mortgages, other | |||||
Unpaid Principal Balance | |||||
With no related allowance, unpaid principal balance | 7,312 | 7,312 | 6,814 | ||
With related allowance, unpaid principal balance | 3,554 | 3,554 | 258 | ||
Recorded Investment | |||||
With no related allowance, recorded investment | 4,651 | 4,651 | 4,760 | ||
With related allowance, recorded investment | 3,562 | 3,562 | 168 | ||
Allowance for Loan Losses Allocated | 1,800 | 1,800 | 74 | ||
Average Recorded Investment | |||||
With no related allowance, average recorded investment | 4,665 | 4,515 | 4,743 | 3,938 | |
With related allowance, average recorded investment | 3,644 | 2,229 | 1,905 | 3,645 | |
Interest Income Recognized | |||||
With no related allowance, interest income, accrual method | 8 | 0 | 23 | 0 | |
With related allowance, interest income, accrual method | 25 | 8 | 25 | 16 | |
Residential mortgages | |||||
Unpaid Principal Balance | |||||
With no related allowance, unpaid principal balance | 960 | 960 | 1,283 | ||
Recorded Investment | |||||
With no related allowance, recorded investment | 946 | 946 | 1,271 | ||
Average Recorded Investment | |||||
With no related allowance, average recorded investment | 950 | 1,224 | 1,034 | 873 | |
Interest Income Recognized | |||||
With no related allowance, interest income, accrual method | 12 | 7 | 29 | 17 | |
Consumer loans: | Home equity lines and loans | |||||
Unpaid Principal Balance | |||||
With no related allowance, unpaid principal balance | 195 | 195 | 645 | ||
With related allowance, unpaid principal balance | 154 | 154 | 170 | ||
Recorded Investment | |||||
With no related allowance, recorded investment | 179 | 179 | 631 | ||
With related allowance, recorded investment | 154 | 154 | 170 | ||
Allowance for Loan Losses Allocated | 73 | 73 | $ 52 | ||
Average Recorded Investment | |||||
With no related allowance, average recorded investment | 184 | 650 | 299 | 399 | |
With related allowance, average recorded investment | 155 | 175 | 160 | 88 | |
Interest Income Recognized | |||||
With no related allowance, interest income, accrual method | 2 | 2 | 5 | 5 | |
With related allowance, interest income, accrual method | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Receivables Past Due (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | $ 8,373 | $ 9,952 |
Loans Past Due 90 Days or More and Still Accruing | 4 | 2 |
Total ending loans balance | 1,520,929 | 1,541,498 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 11,065 | 10,480 |
30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 5,284 | 4,598 |
60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 4,372 | 4,357 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1,409 | 1,525 |
Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1,509,864 | 1,531,018 |
Commercial and agricultural: | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loans balance | 271,872 | 370,252 |
Commercial and agricultural: | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 2,080 | 2,167 |
Loans Past Due 90 Days or More and Still Accruing | 4 | 2 |
Total ending loans balance | 271,451 | 369,968 |
Commercial and agricultural: | Commercial and industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 2,530 | 564 |
Commercial and agricultural: | Commercial and industrial | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1,110 | 520 |
Commercial and agricultural: | Commercial and industrial | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1,375 | 14 |
Commercial and agricultural: | Commercial and industrial | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 45 | 30 |
Commercial and agricultural: | Commercial and industrial | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 268,921 | 369,404 |
Commercial and agricultural: | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loans balance | 421 | 284 |
Commercial and agricultural: | Agricultural | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Commercial and agricultural: | Agricultural | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Commercial and agricultural: | Agricultural | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Commercial and agricultural: | Agricultural | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Commercial and agricultural: | Agricultural | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 421 | 284 |
Commercial mortgages: | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loans balance | 791,476 | 719,145 |
Commercial mortgages: | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 36 | 55 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total ending loans balance | 67,644 | 62,164 |
Commercial mortgages: | Construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Commercial mortgages: | Construction | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Commercial mortgages: | Construction | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Commercial mortgages: | Construction | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Commercial mortgages: | Construction | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 67,644 | 62,164 |
Commercial mortgages: | Commercial mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 4,212 | 4,415 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total ending loans balance | 723,832 | 656,981 |
Commercial mortgages: | Commercial mortgages | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 4,888 | 5,442 |
Commercial mortgages: | Commercial mortgages | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 2,056 | 1,438 |
Commercial mortgages: | Commercial mortgages | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 2,615 | 3,696 |
Commercial mortgages: | Commercial mortgages | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 217 | 308 |
Commercial mortgages: | Commercial mortgages | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 718,944 | 651,539 |
Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 845 | 1,632 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total ending loans balance | 254,641 | 240,013 |
Residential mortgages | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1,793 | 1,684 |
Residential mortgages | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1,226 | 817 |
Residential mortgages | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 131 | 406 |
Residential mortgages | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 436 | 461 |
Residential mortgages | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 252,848 | 238,329 |
Consumer loans: | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loans balance | 202,940 | 212,088 |
Consumer loans: | Home equity lines and loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 819 | 1,159 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total ending loans balance | 72,653 | 78,761 |
Consumer loans: | Home equity lines and loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 818 | 1,036 |
Consumer loans: | Home equity lines and loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 115 | 521 |
Consumer loans: | Home equity lines and loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 161 | 41 |
Consumer loans: | Home equity lines and loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 542 | 474 |
Consumer loans: | Home equity lines and loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 71,835 | 77,725 |
Consumer loans: | Indirect consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 367 | 519 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total ending loans balance | 120,045 | 120,853 |
Consumer loans: | Indirect consumer loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1,008 | 1,718 |
Consumer loans: | Indirect consumer loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 764 | 1,268 |
Consumer loans: | Indirect consumer loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 83 | 198 |
Consumer loans: | Indirect consumer loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 161 | 252 |
Consumer loans: | Indirect consumer loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 119,037 | 119,135 |
Consumer loans: | Direct consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 14 | 5 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total ending loans balance | 10,242 | 12,474 |
Consumer loans: | Direct consumer loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 28 | 36 |
Consumer loans: | Direct consumer loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 13 | 34 |
Consumer loans: | Direct consumer loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 7 | 2 |
Consumer loans: | Direct consumer loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 8 | 0 |
Consumer loans: | Direct consumer loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | $ 10,214 | $ 12,438 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructuring Narrative (Details) | May 31, 2020USD ($) | Sep. 30, 2021USD ($)borrowercontractloan | Sep. 30, 2020loancontractborrower | Sep. 30, 2021USD ($)borrowerloancontract | Sep. 30, 2020borrowercontract | Dec. 31, 2020USD ($) |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Loan forebearances, loan balance | $ | $ 242,500,000 | |||||
Financing receivable, troubled debt restructuring | $ | $ 10,800,000 | $ 10,800,000 | $ 6,700,000 | |||
Financing receivable, troubled debt restructuring, purchased with credit deterioration, increase | $ | 2,200,000 | 2,200,000 | 400,000 | |||
Financing receivable, modifications, recorded investment, still accruing | $ | 5,700,000 | 5,700,000 | 2,800,000 | |||
Financing receivable, modifications, recorded investment, nonaccrual status | $ | 5,100,000 | 5,100,000 | 3,900,000 | |||
Additional amounts committed to customers with loans classified as troubled debt restructurings | $ | $ 0 | $ 0 | $ 0 | |||
Number of loans | 2 | 3 | 6 | 15 | ||
Financing receivable, troubled debt restructuring, subsequent default, number of contracts | contract | 0 | 0 | 0 | 0 | ||
Payment deferral | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Financing receivable, modifications, number of days past due | 30 days | |||||
Commercial and industrial | Extended maturity | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 2 | |||||
Commercial and industrial | Interest rate below market reduction | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 1 | |||||
Residential mortgages | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 1 | |||||
Commercial mortgages | Payment deferral | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 4 | |||||
Financing receivable, modifications, number of borrowers | borrower | 3 | |||||
Residential mortgages | Payment deferral | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 3 | |||||
Residential mortgages | Non-accrual Status | Payment deferral | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 3 | |||||
Home equity lines and loans | Payment deferral | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 3 | |||||
Non-accrual Status | Commercial and industrial | Interest rate below market reduction | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | borrower | 1 | |||||
Substandard | Commercial and industrial | Interest rate below market reduction | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 2 | |||||
Substandard | Commercial mortgages | Non-accrual Status | Payment deferral | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 3 | |||||
Substandard | Commercial mortgages | Non-accrual Status | Payment deferral | 30 - 59 Days Past Due | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 2 | |||||
Substandard | Residential mortgages | Non-accrual Status | Payment deferral | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 2 | |||||
Substandard | Residential mortgages | Non-accrual Status | Payment deferral | 30 - 59 Days Past Due | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 1 | |||||
Substandard | Home equity lines and loans | Non-accrual Status | Payment deferral | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 3 | |||||
Commercial and consumer portfolio segment | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans remaining in modified status | borrower | 11 | 11 | ||||
Loan balance remaining in modified status | $ | $ 3,000,000 | $ 3,000,000 | ||||
Number of loans remaining in modified status, modified more than once | borrower | 5 | 5 | ||||
Loan balance remaining in modified status, modified more than once | $ | $ 2,900,000 | $ 2,900,000 | ||||
Commercial and agricultural: | Commercial and industrial | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | 2 | 2 | ||||
Commercial and agricultural: | Commercial mortgages | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of loans | borrower | 2 | |||||
Financing Receivable | Chemung | Customer Concentration Risk | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Concentration risk percentage (in percentage) | 15.77% | 0.20% |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructuring (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)borrower | Sep. 30, 2021USD ($)loanborrower | Sep. 30, 2020USD ($)borrower | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | 2 | 3 | 6 | 15 |
Pre-Modification Outstanding Recorded Investment | $ 502,000 | $ 1,458,000 | $ 6,596,000 | $ 5,100,000 |
Post-Modification Outstanding Recorded Investment | 502,000 | 1,458,000 | 6,596,000 | 5,100,000 |
Allowance for loan and lease losses, period increase (decrease) | 200,000 | 1,900,000 | 100,000 | |
Financing receivables, impaired, troubled debt restructuring, write-down | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial and agricultural: | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | 2 | 2 | 2 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 502,000 | $ 1,138,000 | $ 502,000 | $ 2,068,000 |
Post-Modification Outstanding Recorded Investment | $ 502,000 | $ 1,138,000 | $ 502,000 | $ 2,068,000 |
Commercial and agricultural: | Commercial mortgages | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | borrower | 2 | |||
Residential mortgages | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | borrower | 1 | 4 | ||
Pre-Modification Outstanding Recorded Investment | $ 320,000 | $ 997,000 | ||
Post-Modification Outstanding Recorded Investment | $ 320,000 | $ 997,000 | ||
Commercial mortgages: | Commercial mortgages | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | 4 | 4 | ||
Pre-Modification Outstanding Recorded Investment | $ 6,094,000 | $ 1,297,000 | ||
Post-Modification Outstanding Recorded Investment | $ 6,094,000 | $ 1,297,000 | ||
Consumer loans: | Home equity lines and loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | borrower | 3 | |||
Pre-Modification Outstanding Recorded Investment | $ 738,000 | |||
Post-Modification Outstanding Recorded Investment | $ 738,000 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | $ 1,520,929 | $ 1,541,498 |
Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 455,536 | 448,787 |
Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 1,002,904 | 1,036,759 |
Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 36,502 | 26,630 |
Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 23,670 | 26,813 |
Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 2,317 | 2,509 |
Commercial and agricultural: | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 271,872 | 370,252 |
Commercial and agricultural: | Commercial and industrial | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 271,451 | 369,968 |
Commercial and agricultural: | Commercial and industrial | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial and agricultural: | Commercial and industrial | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 264,526 | 360,500 |
Commercial and agricultural: | Commercial and industrial | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 2,565 | 2,999 |
Commercial and agricultural: | Commercial and industrial | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 3,166 | 5,092 |
Commercial and agricultural: | Commercial and industrial | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 1,194 | 1,377 |
Commercial and agricultural: | Agricultural | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 421 | 284 |
Commercial and agricultural: | Agricultural | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial and agricultural: | Agricultural | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 421 | 284 |
Commercial and agricultural: | Agricultural | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial and agricultural: | Agricultural | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial and agricultural: | Agricultural | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial mortgages: | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 791,476 | 719,145 |
Commercial mortgages: | Construction | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 67,644 | 62,164 |
Commercial mortgages: | Construction | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial mortgages: | Construction | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 67,607 | 59,885 |
Commercial mortgages: | Construction | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial mortgages: | Construction | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 37 | 2,279 |
Commercial mortgages: | Construction | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial mortgages: | Commercial mortgages | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 723,832 | 656,981 |
Commercial mortgages: | Commercial mortgages | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Commercial mortgages: | Commercial mortgages | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 670,350 | 616,090 |
Commercial mortgages: | Commercial mortgages | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 33,937 | 23,631 |
Commercial mortgages: | Commercial mortgages | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 18,422 | 16,128 |
Commercial mortgages: | Commercial mortgages | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 1,123 | 1,132 |
Residential mortgages | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 254,641 | 240,013 |
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 254,641 | 240,013 |
Residential mortgages | Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 253,796 | 238,381 |
Residential mortgages | Non-Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 845 | 1,632 |
Residential mortgages | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 253,796 | 238,381 |
Residential mortgages | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Residential mortgages | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Residential mortgages | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 845 | 1,632 |
Residential mortgages | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Consumer loans: | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 202,940 | 212,088 |
Consumer loans: | Home equity lines and loans | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 72,653 | 78,761 |
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 72,653 | 78,761 |
Consumer loans: | Home equity lines and loans | Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 71,834 | 77,602 |
Consumer loans: | Home equity lines and loans | Non-Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 819 | 1,159 |
Consumer loans: | Home equity lines and loans | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 71,834 | 77,602 |
Consumer loans: | Home equity lines and loans | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Consumer loans: | Home equity lines and loans | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Consumer loans: | Home equity lines and loans | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 819 | 1,159 |
Consumer loans: | Home equity lines and loans | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Consumer loans: | Indirect consumer loans | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 120,045 | 120,853 |
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 120,045 | 120,853 |
Consumer loans: | Indirect consumer loans | Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 119,678 | 120,334 |
Consumer loans: | Indirect consumer loans | Non-Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 367 | 519 |
Consumer loans: | Indirect consumer loans | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 119,678 | 120,334 |
Consumer loans: | Indirect consumer loans | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Consumer loans: | Indirect consumer loans | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Consumer loans: | Indirect consumer loans | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 367 | 519 |
Consumer loans: | Indirect consumer loans | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Consumer loans: | Direct consumer loans | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 10,242 | 12,474 |
Consumer loans: | Direct consumer loans | Not Rated | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 10,228 | 12,470 |
Consumer loans: | Direct consumer loans | Pass | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Consumer loans: | Direct consumer loans | Special Mention | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Consumer loans: | Direct consumer loans | Substandard | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 14 | 4 |
Consumer loans: | Direct consumer loans | Doubtful | ||
Finance receivable by credit quality indicator [Abstract] | ||
Total financing receivables | 0 | 0 |
Consumer loans: | Other Direct Consumer Loans | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 10,242 | 12,474 |
Consumer loans: | Other Direct Consumer Loans | Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | 10,228 | 12,470 |
Consumer loans: | Other Direct Consumer Loans | Non-Performing | ||
Residential and consumer finance receivable [Abstract] | ||
Residential and consumer loans receivable | $ 14 | $ 4 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Securities available for sale | $ 761,531 | $ 554,611 |
Recurring | ||
Financial Assets: | ||
Securities available for sale | 761,531 | 554,611 |
Equity investments, at fair value | 2,290 | 1,880 |
Derivative Asset | 9,948 | 14,345 |
Financial Liabilities: | ||
Derivative Liabilities | 10,310 | 14,702 |
Non-recurring | Other real estate owned: | ||
Other real estate owned: | ||
Total other real estate owned, net | 171 | 237 |
Non-recurring | Other real estate owned: | Commercial mortgages, other | ||
Other real estate owned: | ||
Total other real estate owned, net | 111 | |
Non-recurring | Residential mortgages | Other real estate owned: | ||
Other real estate owned: | ||
Total other real estate owned, net | 124 | 126 |
Non-recurring | Consumer loans: | Other real estate owned: | Home equity lines and loans | ||
Other real estate owned: | ||
Total other real estate owned, net | 47 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 40,337 | 0 |
Equity investments, at fair value | 2,290 | 1,880 |
Derivative Asset | 0 | 0 |
Financial Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring | Other real estate owned: | ||
Other real estate owned: | ||
Total other real estate owned, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring | Other real estate owned: | Commercial mortgages, other | ||
Other real estate owned: | ||
Total other real estate owned, net | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring | Residential mortgages | Other real estate owned: | ||
Other real estate owned: | ||
Total other real estate owned, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring | Consumer loans: | Other real estate owned: | Home equity lines and loans | ||
Other real estate owned: | ||
Total other real estate owned, net | 0 | |
Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 721,194 | 554,611 |
Equity investments, at fair value | 0 | 0 |
Derivative Asset | 9,948 | 14,345 |
Financial Liabilities: | ||
Derivative Liabilities | 10,310 | 14,702 |
Significant Other Observable Inputs (Level 2) | Non-recurring | Other real estate owned: | ||
Other real estate owned: | ||
Total other real estate owned, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Non-recurring | Other real estate owned: | Commercial mortgages, other | ||
Other real estate owned: | ||
Total other real estate owned, net | 0 | |
Significant Other Observable Inputs (Level 2) | Non-recurring | Residential mortgages | Other real estate owned: | ||
Other real estate owned: | ||
Total other real estate owned, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Non-recurring | Consumer loans: | Other real estate owned: | Home equity lines and loans | ||
Other real estate owned: | ||
Total other real estate owned, net | 0 | |
Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 0 | 0 |
Equity investments, at fair value | 0 | 0 |
Derivative Asset | 0 | 0 |
Financial Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Non-recurring | Other real estate owned: | ||
Other real estate owned: | ||
Total other real estate owned, net | 171 | 237 |
Significant Unobservable Inputs (Level 3) | Non-recurring | Other real estate owned: | Commercial mortgages, other | ||
Other real estate owned: | ||
Total other real estate owned, net | 111 | |
Significant Unobservable Inputs (Level 3) | Non-recurring | Residential mortgages | Other real estate owned: | ||
Other real estate owned: | ||
Total other real estate owned, net | 124 | 126 |
Significant Unobservable Inputs (Level 3) | Non-recurring | Consumer loans: | Other real estate owned: | Home equity lines and loans | ||
Other real estate owned: | ||
Total other real estate owned, net | 47 | |
U.S. Treasury notes and bonds | Recurring | ||
Financial Assets: | ||
Securities available for sale | 40,337 | |
U.S. Treasury notes and bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 40,337 | |
U.S. Treasury notes and bonds | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 0 | |
U.S. Treasury notes and bonds | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 0 | |
Mortgage-backed securities, residential | ||
Financial Assets: | ||
Securities available for sale | 586,126 | 467,866 |
Mortgage-backed securities, residential | Recurring | ||
Financial Assets: | ||
Securities available for sale | 586,126 | 467,866 |
Mortgage-backed securities, residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 0 | 0 |
Mortgage-backed securities, residential | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 586,126 | 467,866 |
Mortgage-backed securities, residential | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 0 | 0 |
Obligations of states and political subdivisions | ||
Financial Assets: | ||
Securities available for sale | 42,352 | 43,405 |
Obligations of states and political subdivisions | Recurring | ||
Financial Assets: | ||
Securities available for sale | 42,352 | 43,405 |
Obligations of states and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 0 | 0 |
Obligations of states and political subdivisions | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 42,352 | 43,405 |
Obligations of states and political subdivisions | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 0 | 0 |
Corporate bonds and notes | ||
Financial Assets: | ||
Securities available for sale | 17,061 | 9,035 |
Corporate bonds and notes | Recurring | ||
Financial Assets: | ||
Securities available for sale | 17,061 | 9,035 |
Corporate bonds and notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 0 | 0 |
Corporate bonds and notes | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 17,061 | 9,035 |
Corporate bonds and notes | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 0 | 0 |
SBA loan pools | ||
Financial Assets: | ||
Securities available for sale | 75,655 | 34,305 |
SBA loan pools | Recurring | ||
Financial Assets: | ||
Securities available for sale | 75,655 | 34,305 |
SBA loan pools | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 0 | 0 |
SBA loan pools | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial Assets: | ||
Securities available for sale | 75,655 | 34,305 |
SBA loan pools | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial Assets: | ||
Securities available for sale | $ 0 | $ 0 |
FAIR VALUE - Quantitative Infor
FAIR VALUE - Quantitative Information (Details) - Significant Unobservable Inputs (Level 3) - Other real estate owned: - Non-recurring - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 171 | $ 237 |
Residential mortgages | Sales comparison | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 124 | $ 126 |
Residential mortgages | Sales comparison | Minimum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value (in percentage) | 20.80% | 20.80% |
Residential mortgages | Sales comparison | Maximum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value (in percentage) | 20.80% | 20.80% |
Residential mortgages | Sales comparison | Weighted Average | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value (in percentage) | 20.80% | 20.80% |
Home equity lines and loans | Sales comparison | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 47 | |
Home equity lines and loans | Sales comparison | Minimum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value (in percentage) | 10.00% | |
Home equity lines and loans | Sales comparison | Maximum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value (in percentage) | 10.00% | |
Home equity lines and loans | Sales comparison | Weighted Average | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value (in percentage) | 10.00% | |
Commercial mortgages, other | Sales comparison | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 111 | |
Commercial mortgages, other | Sales comparison | Minimum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value (in percentage) | 20.80% | |
Commercial mortgages, other | Sales comparison | Maximum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value (in percentage) | 20.80% | |
Commercial mortgages, other | Sales comparison | Weighted Average | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Discount to appraised value (in percentage) | 20.80% |
FAIR VALUE - Carrying Amounts a
FAIR VALUE - Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Cash and due from financial institutions | $ 28,859 | $ 29,467 |
Interest-earning deposits in other financial institutions | 32,838 | 79,071 |
Securities available for sale | 761,531 | 554,611 |
Securities held to maturity | 3,194 | 2,501 |
Accrued interest receivable | 4,261 | 5,035 |
Recurring | ||
Financial assets: | ||
Securities available for sale | 761,531 | 554,611 |
Derivative Asset | 9,948 | 14,345 |
Financial liabilities: | ||
Derivative Liabilities | 10,310 | 14,702 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and due from financial institutions | 28,859 | 29,467 |
Interest-earning deposits in other financial institutions | 32,838 | 79,071 |
Equity investments | 2,933 | 2,542 |
Securities available for sale | 40,337 | 0 |
Securities held to maturity | 0 | 0 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 0 | 0 |
Accrued interest receivable | 73 | 0 |
Derivative Asset | 0 | 0 |
Financial liabilities: | ||
Demand, savings, and insured money market accounts | 1,943,403 | 1,752,043 |
Time deposits | 0 | 0 |
Accrued interest payable | 10 | 11 |
Derivative Liabilities | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and due from financial institutions | 0 | 0 |
Interest-earning deposits in other financial institutions | 0 | 0 |
Equity investments | 0 | 0 |
Securities available for sale | 721,194 | 554,611 |
Securities held to maturity | 1,894 | 2,175 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 0 | 0 |
Accrued interest receivable | 1,706 | 1,356 |
Derivative Asset | 9,948 | 14,345 |
Financial liabilities: | ||
Demand, savings, and insured money market accounts | 0 | 0 |
Time deposits | 232,107 | 288,398 |
Accrued interest payable | 279 | 251 |
Derivative Liabilities | 10,310 | 14,702 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and due from financial institutions | 0 | 0 |
Interest-earning deposits in other financial institutions | 0 | 0 |
Equity investments | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 1,300 | 326 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 1,483,417 | 1,514,318 |
Accrued interest receivable | 4,261 | 4,915 |
Derivative Asset | 0 | 0 |
Financial liabilities: | ||
Demand, savings, and insured money market accounts | 0 | 0 |
Time deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Recurring | Carrying Amount | ||
Financial assets: | ||
Cash and due from financial institutions | 28,859 | 29,467 |
Interest-earning deposits in other financial institutions | 32,838 | 79,071 |
Equity investments | 2,933 | 2,542 |
Securities available for sale | 761,531 | 554,611 |
Securities held to maturity | 3,183 | 2,469 |
FHLBNY and FRBNY stock | 3,562 | 3,150 |
Loans, net and loans held for sale | 1,495,952 | 1,515,709 |
Accrued interest receivable | 6,040 | 6,271 |
Derivative Asset | 9,948 | 14,345 |
Financial liabilities: | ||
Demand, savings, and insured money market accounts | 1,943,403 | 1,752,043 |
Time deposits | 230,419 | 285,731 |
Accrued interest payable | 289 | 262 |
Derivative Liabilities | 10,310 | 14,702 |
Recurring | Estimated Fair Value | ||
Financial assets: | ||
Cash and due from financial institutions | 28,859 | 29,467 |
Interest-earning deposits in other financial institutions | 32,838 | 79,071 |
Equity investments | 2,933 | 2,542 |
Securities available for sale | 761,531 | 554,611 |
Securities held to maturity | 3,194 | 2,501 |
Loans, net and loans held for sale | 1,483,417 | 1,514,318 |
Accrued interest receivable | 6,040 | 6,271 |
Derivative Asset | 9,948 | 14,345 |
Financial liabilities: | ||
Demand, savings, and insured money market accounts | 1,943,403 | 1,752,043 |
Time deposits | 232,107 | 288,398 |
Accrued interest payable | 289 | 262 |
Derivative Liabilities | $ 10,310 | $ 14,702 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)lease | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)lease | Sep. 30, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease, weighted average remaining lease term | 9 years 4 months 24 days | 9 years 4 months 24 days | ||
Operating lease, weighted average discount rate | 3.33% | 3.33% | ||
Operating lease, rent expense | $ 200 | $ 700 | ||
Number of operating lease agreements signed, but had not yet commenced. | lease | 1 | 1 | ||
Finance lease, weighted average remaining lease term | 11 years 4 months 9 days | 11 years 4 months 9 days | ||
Finance lease, weighted average discount rate | 3.37% | 3.37% | ||
Financial lease not yet commenced | lease | 0 | 0 | ||
1365 New Scotland Road, Slingerlands, New York | Director | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, rent expense | $ 13 | $ 13 | ||
Monthly rent and common area maintenance expense | $ 4 | |||
Rent and common area maintenance expense | 37 | $ 40 | ||
2 Rush Street, Schenectady, New York | Director | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, rent expense | $ 25 | $ 26 | ||
Monthly rent and common area maintenance expense | 8 | |||
Rent and common area maintenance expense | $ 76 | $ 80 |
LEASES - Leased Branch Properti
LEASES - Leased Branch Properties (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 7,145 | $ 8,001 |
Less: accumulated amortization | (559) | (705) |
Change in lease agreements | 498 | (151) |
Operating lease right-of-use-assets, net | $ 7,084 | $ 7,145 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 241 | |
2022 | 970 | |
2023 | 990 | |
2024 | 923 | |
2025 | 841 | |
2026 and thereafter | 4,501 | |
Total minimum lease payments | 8,466 | |
Less: amount representing interest | (1,239) | |
Present value of net minimum lease payments | $ 7,227 | $ 7,264 |
LEASES - Premises and Equipment
LEASES - Premises and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Net book value | |
Buildings | $ 5,572 | $ 5,572 |
Less: accumulated depreciation | (2,125) | (1,875) |
Net book value | $ 3,447 | $ 3,697 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payment Obligations Under Finance Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 98 | |
2022 | 391 | |
2023 | 391 | |
2024 | 391 | |
2025 | 409 | |
2026 and thereafter | 2,840 | |
Total minimum lease payments | 4,520 | |
Less: amount representing interest | (861) | |
Present value of net minimum lease payments | $ 3,659 | $ 3,849 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||||
Beginning of year | $ 21,824 | $ 21,824 | $ 21,824 | ||
Acquired goodwill | 0 | 0 | |||
Ending balance | $ 21,824 | $ 21,824 | 21,824 | 21,824 | 21,824 |
Finite-lived intangible assets, net [Abstract] | |||||
Balance Acquired | 11,608 | 11,608 | |||
Accumulated Amortization | 11,582 | 11,582 | 11,350 | ||
Aggregate amortization expense | 42 | $ 120 | 232 | $ 371 | |
Finite-lived intangible assets, future amortization expense [Abstract] | |||||
2021 | 26 | 26 | |||
Total | 26 | 26 | |||
Core deposit intangibles | |||||
Finite-lived intangible assets, net [Abstract] | |||||
Balance Acquired | 5,975 | 5,975 | |||
Accumulated Amortization | 5,975 | 5,975 | 5,962 | ||
Other customer relationship intangibles | |||||
Finite-lived intangible assets, net [Abstract] | |||||
Balance Acquired | 5,633 | 5,633 | |||
Accumulated Amortization | $ 5,607 | $ 5,607 | $ 5,388 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Contractual Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Commitments to make loans | Fixed Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet contractual amounts of financial instruments | $ 21,334 | $ 28,459 |
Commitments to make loans | Variable Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet contractual amounts of financial instruments | 49,839 | 39,056 |
Unused lines of credit | Fixed Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet contractual amounts of financial instruments | 2,137 | 1,300 |
Unused lines of credit | Variable Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet contractual amounts of financial instruments | 274,554 | 268,075 |
Standby letters of credit | Fixed Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet contractual amounts of financial instruments | 0 | 0 |
Standby letters of credit | Variable Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet contractual amounts of financial instruments | $ 14,878 | $ 16,094 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Apr. 30, 2020 | Sep. 30, 2021 | Feb. 04, 2020 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Participating credit facility receivable, ownership interest, amount | $ 4.2 | ||
Participating credit facility receivable, amount | $ 36 | ||
Pioneer Bank Litigation | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Litigation settlement, recovery received | $ 0.5 | ||
Loss contingency, damages sought | $ 3.7 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Summary of Changes in Accumulated Other Comprehensive Income or Loss by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||||
Beginning balances | $ 203,977 | $ 194,589 | $ 199,699 | $ 182,627 |
Other comprehensive income before reclassification | (3,209) | (516) | (9,469) | 7,389 |
Amounts reclassified from accumulated other comprehensive income | 1 | 16 | 2 | 52 |
Total other comprehensive income (loss) | (3,208) | (500) | (9,467) | 7,441 |
Ending balances | 206,139 | 197,005 | 206,139 | 197,005 |
Total | ||||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||||
Beginning balances | (3,858) | 2,142 | 2,401 | (5,799) |
Total other comprehensive income (loss) | (3,208) | (500) | (9,467) | 7,441 |
Ending balances | (7,066) | 1,642 | (7,066) | 1,642 |
Unrealized Gains and Losses on Securities Available for Sale | ||||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||||
Beginning balances | 2,867 | 9,273 | 9,127 | 1,368 |
Other comprehensive income before reclassification | (3,209) | (516) | (9,469) | 7,389 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | (3,209) | (516) | (9,469) | 7,389 |
Ending balances | (342) | 8,757 | (342) | 8,757 |
Defined Benefit and Other Benefit Plans | ||||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||||
Beginning balances | (6,725) | (7,131) | (6,726) | (7,167) |
Other comprehensive income before reclassification | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 1 | 16 | 2 | 52 |
Total other comprehensive income (loss) | 1 | 16 | 2 | 52 |
Ending balances | $ (6,724) | $ (7,115) | $ (6,724) | $ (7,115) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Details about Accumulated Other Comprehensive Income Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax effect | $ (1,700) | $ (1,456) | $ (5,558) | $ (3,315) |
Net income | 6,646 | 5,711 | 19,971 | 14,029 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | 1 | 16 | 2 | 52 |
Prior service costs | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pension and other employee benefits | (55) | (55) | (165) | (165) |
Actuarial losses | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pension and other employee benefits | 57 | 77 | 169 | 231 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax effect | (1) | (6) | (2) | (14) |
Net income | $ 1 | $ 16 | $ 2 | $ 52 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Revenue By Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net gains (losses) on sales of OREO | $ 0 | $ 6 | $ (18) | $ (71) |
Changes in fair value of equity investments | 15 | 57 | 203 | (33) |
Income from bank owned life insurance | 13 | 14 | 39 | 147 |
Total non-interest income | 5,970 | 5,339 | 18,083 | 15,150 |
Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Changes in fair value of equity investments | 28 | (14) | 86 | (82) |
Total non-interest income | 368 | 105 | 850 | 387 |
Overdraft fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 623 | 668 | 1,561 | 1,894 |
Overdraft fees | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 233 | 72 | 744 | 400 |
Other | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | 0 |
Interchange revenue from debit card transactions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 1,237 | 1,082 | 3,622 | 2,989 |
Interchange revenue from debit card transactions | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | 0 |
WMG fee income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 2,765 | 2,416 | 8,246 | 6,968 |
WMG fee income | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | 0 |
CFS fee and commission income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 346 | 172 | 796 | 502 |
CFS fee and commission income | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 346 | 172 | 796 | 502 |
Net gains (losses) on sales of OREO | ||||
Disaggregation of Revenue [Line Items] | ||||
Net gains (losses) on sales of OREO | 0 | 6 | (18) | (71) |
Net gains (losses) on sales of OREO | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net gains (losses) on sales of OREO | 0 | 0 | 0 | 0 |
Net gains on sales of loans | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 242 | 553 | 884 | 916 |
Net gains on sales of loans | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | 0 | 0 | 0 |
Loan servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 38 | 32 | 108 | 88 |
Loan servicing fees | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | 0 | 0 | 0 |
Income from bank-owned life insurance | ||||
Disaggregation of Revenue [Line Items] | ||||
Income from bank owned life insurance | 13 | 14 | 39 | 147 |
Income from bank-owned life insurance | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Income from bank owned life insurance | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 458 | 267 | 1,898 | 1,350 |
Other | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | (6) | (53) | (32) | (33) |
Core Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Changes in fair value of equity investments | (13) | 71 | 117 | 49 |
Total non-interest income | 2,837 | 2,818 | 8,987 | 7,795 |
Core Banking | Overdraft fees | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 623 | 668 | 1,561 | 1,894 |
Core Banking | Other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 233 | 72 | 744 | 400 |
Core Banking | Interchange revenue from debit card transactions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 1,237 | 1,082 | 3,622 | 2,989 |
Core Banking | WMG fee income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | 0 |
Core Banking | CFS fee and commission income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | 0 |
Core Banking | Net gains (losses) on sales of OREO | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net gains (losses) on sales of OREO | 0 | 6 | (18) | (71) |
Core Banking | Net gains on sales of loans | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 242 | 553 | 884 | 916 |
Core Banking | Loan servicing fees | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 38 | 32 | 108 | 88 |
Core Banking | Income from bank-owned life insurance | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Income from bank owned life insurance | 13 | 14 | 39 | 147 |
Core Banking | Other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 464 | 320 | 1,930 | 1,383 |
WMG | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Changes in fair value of equity investments | 0 | 0 | 0 | 0 |
Total non-interest income | 2,765 | 2,416 | 8,246 | 6,968 |
WMG | Overdraft fees | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | 0 |
WMG | Other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | 0 |
WMG | Interchange revenue from debit card transactions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | 0 |
WMG | WMG fee income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 2,765 | 2,416 | 8,246 | 6,968 |
WMG | CFS fee and commission income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | 0 |
WMG | Net gains (losses) on sales of OREO | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net gains (losses) on sales of OREO | 0 | 0 | 0 | 0 |
WMG | Net gains on sales of loans | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | 0 | 0 | 0 |
WMG | Loan servicing fees | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | 0 | 0 | 0 |
WMG | Income from bank-owned life insurance | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Income from bank owned life insurance | 0 | 0 | 0 | 0 |
WMG | Other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | $ 0 | $ 0 | $ 0 | $ 0 |
COMPONENTS OF QUARTERLY AND Y_3
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Qualified Pension Plan | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost, benefits earned during the period | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 271 | 322 | 813 | 966 |
Expected return on plan assets | (673) | (610) | (2,019) | (1,830) |
Amortization of unrecognized transition obligation | 0 | 0 | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 | 0 | 0 |
Amortization of unrecognized net loss | 38 | 49 | 113 | 147 |
Net periodic pension benefit | (364) | (239) | (1,093) | (717) |
Supplemental Pension Plan | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost, benefits earned during the period | 0 | 0 | 0 | 0 |
Interest cost on projected benefit obligation | 8 | 10 | 24 | 30 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 | 0 | 0 |
Amortization of unrecognized net loss | 5 | 3 | 15 | 9 |
Net periodic pension benefit | 13 | 13 | 39 | 39 |
Postretirement Plan, Medical and Life | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost, benefits earned during the period | 0 | 0 | 0 | 0 |
Interest cost on projected benefit obligation | 1 | 2 | 5 | 6 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of unrecognized prior service cost | (55) | (55) | (165) | (165) |
Amortization of unrecognized net loss | 14 | 25 | 41 | 75 |
Net periodic pension benefit | $ (40) | $ (28) | $ (119) | $ (84) |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of primary business segments | segment | 2 | ||||
Reportable segments and reconciliation to consolidated results [Abstract] | |||||
Interest and dividend income | $ 17,633 | $ 16,714 | $ 51,318 | $ 49,570 | |
Interest expense | 801 | 845 | 2,621 | 3,048 | |
Net interest income | 16,832 | 15,869 | 48,697 | 46,522 | |
Provision (credit) for loan losses | 356 | 679 | (53) | 3,989 | |
Net interest income after provision for loan losses | 16,476 | 15,190 | 48,750 | 42,533 | |
Other non-interest income | 5,970 | 5,339 | 18,083 | 15,150 | |
Other non-interest expenses | 14,100 | 13,362 | 41,304 | 40,339 | |
Income (loss) before income tax expense (benefit) | 8,346 | 7,167 | 25,529 | 17,344 | |
Income tax expense (benefit) | 1,700 | 1,456 | 5,558 | 3,315 | |
Segment net income (loss) | 6,646 | 5,711 | 19,971 | 14,029 | |
Segment assets | 2,417,656 | 2,165,014 | 2,417,656 | 2,165,014 | $ 2,279,451 |
Operating Segments | Core Banking | |||||
Reportable segments and reconciliation to consolidated results [Abstract] | |||||
Interest and dividend income | 17,627 | 16,701 | 51,298 | 49,527 | |
Interest expense | 801 | 845 | 2,621 | 3,048 | |
Net interest income | 16,826 | 15,856 | 48,677 | 46,479 | |
Provision (credit) for loan losses | 356 | 679 | (53) | 3,989 | |
Net interest income after provision for loan losses | 16,470 | 15,177 | 48,730 | 42,490 | |
Other non-interest income | 2,837 | 2,818 | 8,987 | 7,795 | |
Other non-interest expenses | 12,124 | 11,528 | 35,401 | 34,690 | |
Income (loss) before income tax expense (benefit) | 7,183 | 6,467 | 22,316 | 15,595 | |
Income tax expense (benefit) | 1,534 | 1,271 | 4,865 | 2,884 | |
Segment net income (loss) | 5,649 | 5,196 | 17,451 | 12,711 | |
Segment assets | 2,408,318 | 2,156,025 | 2,408,318 | 2,156,025 | |
Operating Segments | WMG | |||||
Reportable segments and reconciliation to consolidated results [Abstract] | |||||
Interest and dividend income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income | 0 | 0 | 0 | 0 | |
Provision (credit) for loan losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 0 | 0 | 0 | 0 | |
Other non-interest income | 2,765 | 2,416 | 8,246 | 6,968 | |
Other non-interest expenses | 1,651 | 1,565 | 4,921 | 4,814 | |
Income (loss) before income tax expense (benefit) | 1,114 | 851 | 3,325 | 2,154 | |
Income tax expense (benefit) | 156 | 218 | 735 | 552 | |
Segment net income (loss) | 958 | 633 | 2,590 | 1,602 | |
Segment assets | 3,216 | 3,153 | 3,216 | 3,153 | |
Intersegment Eliminations | |||||
Reportable segments and reconciliation to consolidated results [Abstract] | |||||
Interest and dividend income | 6 | 13 | 20 | 43 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income | 6 | 13 | 20 | 43 | |
Provision (credit) for loan losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 6 | 13 | 20 | 43 | |
Other non-interest income | 368 | 105 | 850 | 387 | |
Other non-interest expenses | 325 | 269 | 982 | 835 | |
Income (loss) before income tax expense (benefit) | 49 | (151) | (112) | (405) | |
Income tax expense (benefit) | 10 | (33) | (42) | (121) | |
Segment net income (loss) | 39 | (118) | (70) | (284) | |
Segment assets | $ 6,122 | $ 5,836 | $ 6,122 | $ 5,836 |
STOCK COMPENSATION - Narrative
STOCK COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
2021 Plan | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Shares granted (in share) | 0 | |||||
Restricted Stock | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Total unrecognized compensation cost related to nonvested shares granted under the Plan | $ 800 | $ 800 | ||||
Weighted-average period for recognition (in years) | 3 years 3 months 7 days | |||||
Total fair value of shares vested | $ 167 | $ 159 | ||||
Directors and President and Chief Executive Officer | ||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||
Number of treasury shares reissued to fund stock compensation (in shares) | 9,291 | 7,923 | ||||
Expenses related to stock based compensation recognized | $ 101 | $ 67 | $ 295 | $ 232 |
STOCK COMPENSATION - Restricted
STOCK COMPENSATION - Restricted Stock Activity For Officers And Employees (Details) - Restricted Stock - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Shares | ||
Nonvested, Beginning Balance (in shares) | 27,448 | 31,830 |
Granted (in shares) | 0 | 0 |
Vested (in shares) | (261) | (4,643) |
Forfeited or cancelled (in shares) | 0 | 0 |
Nonvested, Ending Balance (in shares) | 27,187 | 27,187 |
Weighted–Average Grant Date Fair Value | ||
Nonvested, Beginning Balance (in dollars per share) | $ 40.18 | $ 40.32 |
Vested (in dollars per share) | 39.85 | 41.15 |
Nonvested, Ending Balance (in dollars per share) | $ 40.23 | $ 40.23 |