COVER
COVER - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 $.01 per share | |
Trading Symbol | CHMG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,678,083 | |
Entity Central Index Key | 0000763563 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from financial institutions | $ 32,262 | $ 17,365 |
Interest-earning deposits in other financial institutions | 10,161 | 9,616 |
Total cash and cash equivalents | 42,423 | 26,981 |
Equity investments, at estimated fair value | 2,677 | 2,964 |
Securities available for sale, at estimated fair value | 640,352 | 792,026 |
Securities held to maturity, estimated fair value of $3,205 at September 30, 2022 and $3,796 at December 31, 2021 | 3,210 | 3,790 |
FHLBNY and FRBNY Stock, at cost | 3,872 | 4,218 |
Loans, net of deferred loan fees | 1,742,755 | 1,518,249 |
Allowance for loan losses | (18,631) | (21,025) |
Loans, net | 1,724,124 | 1,497,224 |
Loans held for sale | 0 | 396 |
Premises and equipment, net | 16,581 | 17,969 |
Operating lease right-of-use assets | 6,646 | 7,234 |
Goodwill | 21,824 | 21,824 |
Other intangible assets, net | 0 | 15 |
Bank-owned life insurance | 2,859 | 2,825 |
Accrued interest receivable and other assets | 86,854 | 41,009 |
Total assets | 2,551,422 | 2,418,475 |
Deposits: | ||
Non-interest-bearing | 747,972 | 739,607 |
Interest-bearing | 1,584,568 | 1,415,826 |
Total deposits | 2,332,540 | 2,155,433 |
FHLBNY overnight advances | 710 | 14,570 |
Long term finance lease obligation | 3,394 | 3,594 |
Operating lease liabilities | 6,810 | 7,378 |
Dividends payable | 1,450 | 1,450 |
Accrued interest payable and other liabilities | 51,000 | 24,595 |
Total liabilities | 2,395,904 | 2,207,020 |
Shareholders' equity: | ||
Common stock, $0.01 par value per share, 10,000,000 shares authorized; 5,310,076 issued at September 30, 2022 and December 31, 2021 | 53 | 53 |
Additional paid-in capital | 47,487 | 46,901 |
Retained earnings | 205,874 | 188,877 |
Treasury stock, at cost; 633,055 shares at September 30, 2022 and 636,720 shares at December 31, 2021 | (18,015) | (17,846) |
Accumulated other comprehensive loss | (79,881) | (6,530) |
Total shareholders' equity | 155,518 | 211,455 |
Total liabilities and shareholders' equity | $ 2,551,422 | $ 2,418,475 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, estimated fair value | $ 3,205 | $ 3,796 |
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) | 633,055 | 636,720 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest and dividend income: | ||||
Loans, including fees | $ 17,670,000 | $ 14,655,000 | $ 47,541,000 | $ 43,964,000 |
Taxable securities | 2,982,000 | 2,678,000 | 8,533,000 | 6,431,000 |
Tax exempt securities | 267,000 | 265,000 | 805,000 | 792,000 |
Interest-earning deposits | 80,000 | 35,000 | 116,000 | 131,000 |
Total interest and dividend income | 20,999,000 | 17,633,000 | 56,995,000 | 51,318,000 |
Interest expense: | ||||
Deposits | 1,805,000 | 768,000 | 3,322,000 | 2,521,000 |
Borrowed funds | 204,000 | 33,000 | 365,000 | 100,000 |
Total interest expense | 2,009,000 | 801,000 | 3,687,000 | 2,621,000 |
Net interest income | 18,990,000 | 16,832,000 | 53,308,000 | 48,697,000 |
Provision (credit) for loan losses | 1,255,000 | 356,000 | (1,634,000) | (53,000) |
Net interest income after provision for loan losses | 17,735,000 | 16,476,000 | 54,942,000 | 48,750,000 |
Non-interest income: | ||||
Changes in fair value of equity investments | (93,000) | 15,000 | (448,000) | 203,000 |
Net gains on sales of loans held for sale | 7,000 | 242,000 | 106,000 | 884,000 |
Net gains (losses) on sales of other real estate owned | 22,000 | 0 | 68,000 | (18,000) |
Income from bank-owned life insurance | 12,000 | 13,000 | 34,000 | 39,000 |
Other | 570,000 | 842,000 | 2,219,000 | 2,802,000 |
Total non-interest income | 5,036,000 | 5,970,000 | 16,018,000 | 18,083,000 |
Non-interest expenses: | ||||
Salaries and wages | 6,550,000 | 6,259,000 | 18,829,000 | 18,058,000 |
Pension and other employee benefits | 2,024,000 | 1,511,000 | 5,679,000 | 4,450,000 |
Other components of net periodic pension and postretirement benefits | (413,000) | (391,000) | (1,224,000) | (1,173,000) |
Net occupancy | 1,269,000 | 1,432,000 | 4,065,000 | 4,446,000 |
Furniture and equipment | 493,000 | 409,000 | 1,340,000 | 1,185,000 |
Data processing | 2,087,000 | 2,210,000 | 6,742,000 | 6,261,000 |
Professional services | 442,000 | 542,000 | 1,627,000 | 1,531,000 |
Amortization of intangible assets | 0 | 42,000 | 15,000 | 232,000 |
Marketing and advertising | 266,000 | 162,000 | 726,000 | 572,000 |
Other real estate owned | 12,000 | 7,000 | (17,000) | 24,000 |
FDIC insurance | 389,000 | 356,000 | 987,000 | 1,075,000 |
Loan expense | (64,000) | 196,000 | 327,000 | 720,000 |
Other | 1,522,000 | 1,365,000 | 4,491,000 | 3,923,000 |
Total non-interest expenses | 14,577,000 | 14,100,000 | 43,587,000 | 41,304,000 |
Income before income tax expense | 8,194,000 | 8,346,000 | 27,373,000 | 25,529,000 |
Income tax expense | 1,741,000 | 1,700,000 | 6,029,000 | 5,558,000 |
Net income | $ 6,453,000 | $ 6,646,000 | $ 21,344,000 | $ 19,971,000 |
Weighted average shares outstanding, basic (in shares) | 4,692 | 4,678 | 4,691 | 4,683 |
Weighted average shares outstanding, diluted (in shares) | 4,692 | 4,678 | 4,691 | 4,683 |
Basic earnings per share (in dollars per share) | $ 1.37 | $ 1.42 | $ 4.55 | $ 4.26 |
Diluted earnings per share (in dollars per share) | $ 1.37 | $ 1.42 | $ 4.55 | $ 4.26 |
WMG fee income | ||||
Non-interest income: | ||||
Revenues from contracts with customer | $ 2,403,000 | $ 2,765,000 | $ 7,788,000 | $ 8,246,000 |
Service charges on deposit accounts | ||||
Non-interest income: | ||||
Revenues from contracts with customer | 989,000 | 856,000 | 2,789,000 | 2,305,000 |
Interchange revenue from debit card transactions | ||||
Non-interest income: | ||||
Revenues from contracts with customer | $ 1,126,000 | $ 1,237,000 | $ 3,462,000 | $ 3,622,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,453 | $ 6,646 | $ 21,344 | $ 19,971 |
Other comprehensive loss | ||||
Net unrealized losses | (33,266) | (4,348) | (99,431) | (12,715) |
Tax effect | (8,719) | (1,139) | (26,050) | (3,246) |
Net of tax amount | (24,547) | (3,209) | (73,381) | (9,469) |
Change in funded status of defined benefit pension plan and other benefit plans: | ||||
Reclassification adjustment for amortization of prior service costs | 0 | (55) | 0 | (165) |
Reclassification adjustment for amortization of net actuarial loss | 16 | 57 | 41 | 169 |
Total before tax effect | 16 | 2 | 41 | 4 |
Tax effect | 5 | 1 | 11 | 2 |
Net of tax amount | 11 | 1 | 30 | 2 |
Total other comprehensive loss | (24,536) | (3,208) | (73,351) | (9,467) |
Comprehensive income (loss) | $ (18,083) | $ 3,438 | $ (52,007) | $ 10,504 |
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 Loss | |
Beginning balance 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 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 compensation | 132 | 27 | 105 | ||||
Distribution of shares of treasury stock for deferred directors' compensation | 3 | (72) | 75 | ||||
Repurchase of shares of common stock | (1,050) | (1,050) | |||||
Sale of shares of treasury stock | [1] | 317 | 99 | 218 | |||
Ending balance at Sep. 30, 2021 | 206,139 | 53 | 47,203 | 183,873 | (17,924) | (7,066) | |
Beginning balance 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 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 shares of common stock | (4) | (4) | |||||
Sale of shares of treasury stock | [1] | 85 | 33 | 52 | |||
Ending balance at Sep. 30, 2021 | 206,139 | 53 | 47,203 | 183,873 | (17,924) | (7,066) | |
Beginning balance at Dec. 31, 2021 | 211,455 | 53 | 46,901 | 188,877 | (17,846) | (6,530) | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income | 21,344 | 21,344 | |||||
Other comprehensive income | (73,351) | (73,351) | |||||
Restricted stock awards | 486 | 486 | |||||
Restricted stock units for directors' deferred compensation plan | 195 | 195 | |||||
Distribution of shares of treasury stock grants for employee restricted stock awards | 0 | (112) | 112 | ||||
Cash dividends declared | (4,347) | (4,347) | |||||
Distribution of treasury stock for directors' compensation | 105 | (139) | 244 | ||||
Repurchase of shares of common stock | (695) | (695) | |||||
Sale of shares of treasury stock | [1] | 328 | 124 | 204 | |||
Forfeiture of 48 shares of restricted stock awards | (2) | 32 | (34) | ||||
Ending balance at Sep. 30, 2022 | 155,518 | 53 | 47,487 | 205,874 | (18,015) | (79,881) | |
Beginning balance at Jun. 30, 2022 | 174,690 | 53 | 47,196 | 200,870 | (18,084) | (55,345) | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income | 6,453 | 6,453 | |||||
Other comprehensive income | (24,536) | (24,536) | |||||
Restricted stock awards | 153 | 153 | |||||
Restricted stock units for directors' deferred compensation plan | 95 | 95 | |||||
Cash dividends declared | (1,449) | (1,449) | |||||
Sale of shares of treasury stock | [1] | 112 | 41 | 71 | |||
Forfeiture of 48 shares of restricted stock awards | 2 | (2) | |||||
Ending balance at Sep. 30, 2022 | $ 155,518 | $ 53 | $ 47,487 | $ 205,874 | $ (18,015) | $ (79,881) | |
[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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.31 | $ 0.31 | $ 0.93 | $ 0.88 |
Distribution Of Shares Of Treasury Stock For Directors Compensation Shares | 8,575 | 9,291 | ||
Distribution of shares of treasury stock for employee stock compensation (in shares) | 3,860 | |||
Treasury stock acquired (in shares) | 97 | 15,388 | 28,803 | |
Sale of shares of treasury stock (in shares) | 2,540 | 1,887 | 7,222 | 7,911 |
Shares forfeited (in shares) | 48 | 729 | ||
Distribution of shares of treasury stock for deferred directors' compensation (in shares) | 2,707 | |||
Distribution of shares of treasury stock for employee restricted stock awards (in shares) | 3,985 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 21,344,000 | $ 19,971,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization (increase in) of right-of-use assets | 588,000 | 559,000 |
Amortization of intangible assets | 15,000 | 232,000 |
Provision for loan losses | (1,634,000) | (53,000) |
Loss (Gains) on disposal of fixed assets | 20,000 | (61,000) |
Depreciation and amortization of fixed assets | 1,691,000 | 1,896,000 |
Amortization of premiums on securities, net | 3,143,000 | 4,020,000 |
Gain on sales of loans held for sale, net | (106,000) | (884,000) |
Proceeds from sales of loans held for sale | 342,000 | 29,840,000 |
Loans originated and held for sale | 160,000 | |
Loans originated and held for sale | (29,010,000) | |
Net (gains) losses on sale of other real estate owned | (68,000) | 18,000 |
Net change in fair value of equity investments | 448,000 | (203,000) |
Proceeds from sales of trading assets | 36,000 | 41,000 |
Purchase of equity investments | (197,000) | (229,000) |
(Increase) Decrease in other assets and accrued interest receivable | (19,743,000) | 1,279,000 |
Increase in accrued interest payable | 133,000 | 27,000 |
Expense related to restricted stock units for directors' deferred compensation plan | 195,000 | 14,000 |
Expense related to employee stock compensation | 0 | 132,000 |
Expense related to employee restricted stock awards | 486,000 | 307,000 |
Increases in (payments on) operating leases | (568,000) | (37,000) |
Increase (decrease) in other liabilities | 26,434,000 | (1,242,000) |
Income from bank owned life insurance | (34,000) | (39,000) |
Net cash provided by operating activities | 32,685,000 | 26,578,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sales of securities available for sale | 0 | 0 |
Proceeds from maturities, calls, and principal paydowns on securities available for sale | 72,611,000 | 109,736,000 |
Proceeds from maturities and principal collected on securities held to maturity | 1,306,000 | 558,000 |
Purchases of securities available for sale | (23,502,000) | (333,376,000) |
Purchases of securities held to maturity | (735,000) | (1,287,000) |
Purchase of FHLBNY and FRBNY stock | (3,175,000) | (412,000) |
Redemption of FHLBNY and FRBNY stock | 3,521,000 | 0 |
Proceeds from sales of fixed assets | 125,000 | 451,000 |
Purchases of premises and equipment | (448,000) | (537,000) |
Proceeds from sale of other real estate owned | 279,000 | 128,000 |
Proceeds from bank owned life insurance | 0 | 286,000 |
Net increase in loans | (225,558,000) | 19,784,000 |
Net cash used in investing activities | (175,576,000) | (204,669,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in demand deposits, interest-bearing demand accounts, savings accounts, and insured money market accounts | 23,600,000 | 191,360,000 |
Increase (decrease) in time deposits | 153,507,000 | (55,312,000) |
Net proceeds from FHLB overnight advances | (13,860,000) | 0 |
Payments made on finance leases | (200,000) | (190,000) |
Purchase of treasury stock | (695,000) | (1,050,000) |
Sale of treasury stock | 328,000 | 315,000 |
Cash dividends paid | (4,347,000) | (3,873,000) |
Net cash provided by financing activities | 158,333,000 | 131,250,000 |
Net increase (decrease) in cash and cash equivalents | 15,442,000 | (46,841,000) |
Cash and cash equivalents, beginning of period | 26,981,000 | 108,538,000 |
Cash and cash equivalents, end of period | 42,423,000 | 61,697,000 |
Cash paid for: | ||
Interest | 3,554,000 | 2,594,000 |
Income taxes | 4,305,000 | 4,375,000 |
Supplemental disclosure of non-cash activity: | ||
Transfer of loans to other real estate owned | 292,000 | 80,000 |
Dividends declared, not yet paid | 1,450,000 | 1,445,000 |
Repurchase of common stock in lieu of employee payroll taxes | 53,000 | 80,000 |
Operating lease right-of-use assets | 0 | (498,000) |
Distribution of treasury stock for directors' compensation | 105,000 | 317,000 |
Distribution of treasury stock for deferred directors' compensation | 195,000 | 4,000 |
Forfeiture of shares of restricted stock awards | $ (2,000) | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
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 2021 Annual Report on Form 10-K for the year ended December 31, 2021. 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. The ASU supersedes current GAAP by replacing the incurred loss impairment method with a methodology that reflects lifetime expected credit losses and requires the consideration of a broader range of reasonable and supportable information to form credit loss estimates. In November 2019, the FASB adopted an amendment to postpone 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 delayed adoption. The Corporation has established a committee to oversee the implementation of CECL and has contracted a vendor to assist in model development and implementation, and is in the process of updating its policies and internal controls accordingly. Additionally the Corporation has contracted an independent third party to validate the selected model. The basis for the model of the quantitative portion of the estimation of expected credit losses is the historical loss experience amongst a curated group of peers. The Corporation utilized regression analyses of peer data, of which the Corporation was included, and where observed credit losses and selected economic factors were utilized to determine suitable loss drivers for modeling the lifetime rates of probability of default (PD). The chosen model utilizes a discounted cash flow (DCF) analysis for all loan portfolio segments as its foundation. Portfolio segments are the level at which loss assumptions are applied to a pool of loans based on the similarity of the risk characteristics inherent in the included instruments. The DCF analysis is run at the instrument-level and incorporates an array of loan-specific and segment-implied assumptions in order to determine the lifetime expected loss attributable to the instrument. The loss driver for each loan portfolio segment is derived from a readily available and reasonable economic forecast, which is applied over a four-quarter period, and incorporates an eight-quarter reversion to the historical mean on a straight-line basis beyond the reasonable forecast period. The selected model also incorporates qualitative factors in order to appropriately adjust for risk in a given portfolio segment that may not be fully captured through quantitative analysis. Determinations regarding qualitative adjustments are made based on management’s expectation of loss conditions differing from those already captured in the quantitative component of the model. The Corporation expects to recognize a one-time cumulative-effect adjustment to retained earnings upon adoption of CECL, effective January 1, 2023, in order to bring our allowance for credit losses (ACL) into conformity with the ASU, consistent with regulatory expectations set forth in interagency guidance. The Corporation is currently refining the assumptions built into its model, and is running parallel calculations on an ongoing basis. The Corporation estimates that under the ACL framework, the allowance for credit losses may increase, and the increase may be material, when compared to the amount being carried on the consolidated balance sheet at September 30, 2022. This increase encompasses the loans that the Corporation currently evaluates for impairment on an individual basis, loans evaluated collectively by pooled segment, and unfunded commitments made by the Corporation not currently carried on the balance sheet. Based on the composition and quality of the Corporation’s debt securities portfolio, management has determined there to be a zero loss estimate on securities that are backed by U.S. governmental agencies. In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method. The amendments in this ASU expand the current last-of-layer hedging model from a single-layer method to allow multiple hedged layers of a single closed portfolio. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method. In addition, ASU 2022-01 (1) expands the scope of the portfolio layer method to include non-prepayable assets, (2) specifies eligible hedging instruments in a single-layer hedge, (3) provides additional guidance on the accounting for and disclosure of hedge basis adjustments under the portfolio layer method and (4) specifies how edge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. ASU 2022-01 is effective for interim and annual periods beginning after December 15, 2022, although early adoption is permitted. Upon adoption, ASU 2022-01 is not expected to have a significant impact on the Corporation's financial condition or results of operations. In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU made certain targeted amendments specific to troubled debt restructurings (TDRs) by creditors and vintage disclosure related to gross write-offs. Upon adoption, the Corporation will be required to apply the loan and refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan, rather than applying the recognition and measurement guidance for TDRs. The ASU also requires companies to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within scope of Subtopic 326-20. ASU 2022-02 is effective for periods beginning after December 15, 2022. The Corporation will adopt ASU 2016-13 effective January 1, 2023 and will simultaneously implement ASU 2022-02. Risks and Uncertainties - COVID-19 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. As part of this analysis, management identified what it believes to be higher risk loans through a detailed analysis of industry codes. During 2020, management increased certain allowance qualitative factors 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. As part of this analysis, the Corporation released the final $1.2 million of the pandemic related portion of the allowance in the third quarter of 2022. In total, the Corporation released $4.3 million and utilized $0.5 million of the pandemic related allowance established in 2020. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2022 | |
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 shares, 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 nonforfeitable 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 4,692 and 4,678 weighted average shares outstanding for the three month periods ended September 30, 2022 and 2021, respectively. Earnings per share were computed by dividing net income by 4,691 and 4,683 weighted average shares outstanding for the nine month periods ended September 30, 2022 and 2021, respectively. Retroactive implementation of the Corporation's 2021 Equity Incentive Plan, approved June 8, 2021 by shareholders, required a change in methodology used to calculate weighted average outstanding shares in 2021. The change did not impact earnings per common share for the prior periods. There were no common stock equivalents during the three and nine month periods ended September 30, 2022 or 2021. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes and bonds $ 61,791 $ — $ 6,741 $ 55,050 Mortgage-backed securities, residential 530,372 — 89,738 440,634 Obligations of states and political subdivisions 39,916 — 3,036 36,880 Corporate bonds and notes 25,750 — 1,513 24,237 SBA loan pools 85,337 204 1,990 83,551 Total $ 743,166 $ 204 $ 103,018 $ 640,352 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes and bonds $ 61,084 $ 27 $ 680 $ 60,431 Mortgage-backed securities, residential 582,060 4,032 8,731 577,361 Obligations of states and political subdivisions 40,299 2,004 — 42,303 Corporate bonds and notes 22,750 180 82 22,848 SBA loan pools 89,216 344 477 89,083 Total $ 795,409 $ 6,587 $ 9,970 $ 792,026 Amortized cost and estimated fair value of securities held to maturity are as follows (in thousands): September 30, 2022 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 1,981 $ — $ — $ 1,981 Time deposits with other financial institutions 1,229 — 5 1,224 Total $ 3,210 $ — $ 5 $ 3,205 December 31, 2021 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 2,157 $ — $ — $ 2,157 Time deposits with other financial institutions 1,633 6 — 1,639 Total $ 3,790 $ 6 $ — $ 3,796 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, 2022 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 2,937 $ 2,862 $ 2,204 $ 2,199 After one, but within five years 103,872 93,767 1,006 1,006 After five, but within ten years 20,178 19,142 — — After ten years 470 396 — — 127,457 116,167 3,210 3,205 Mortgage-backed securities, residential 530,372 440,634 — — SBA loan pools 85,337 83,551 — — Total $ 743,166 $ 640,352 $ 3,210 $ 3,205 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, 2022 and 2021. The following tables summarize the investment securities available for sale with unrealized losses at September 30, 2022 and December 31, 2021 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, 2022 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ 18,733 $ 2,155 $ 36,317 $ 4,586 $ 55,050 $ 6,741 Mortgage-backed securities, residential 137,623 17,742 303,011 71,996 440,634 89,738 Obligations of states and political subdivisions 36,685 3,036 — — 36,685 3,036 Corporate bonds and notes 9,615 1,135 4,621 378 14,236 1,513 SBA loan pools 26,290 982 38,214 1,008 64,504 1,990 Total temporarily impaired securities $ 228,946 $ 25,050 $ 382,163 $ 77,968 $ 611,109 $ 103,018 Less than 12 months 12 months or longer Total December 31, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ 49,084 $ 680 $ — $ — $ 49,084 $ 680 Mortgage-backed securities, residential 293,720 4,502 122,050 4,229 415,770 8,731 Corporate bonds and notes 4,928 72 1,989 10 6,917 82 SBA loan pools 51,235 296 13,769 181 65,004 477 Total temporarily impaired securities $ 398,967 $ 5,550 $ 137,808 $ 4,420 $ 536,775 $ 9,970 Other-Than-Temporary Impairment As of September 30, 2022, the majority of the Corporation's unrealized losses in the investment securities portfolio related to mortgage-backed securities. At September 30, 2022, 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, 2022. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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, 2022 December 31, 2021 Commercial and agricultural: Commercial and industrial $ 262,014 $ 256,893 Agricultural 75 394 Commercial mortgages: Construction 105,330 82,204 Commercial mortgages, other 836,190 720,358 Residential mortgages 283,128 259,334 Consumer loans: Home equity lines and loans 76,871 70,670 Indirect consumer loans 168,214 118,569 Direct consumer loans 10,933 9,827 Total loans, net of deferred loan fees and costs 1,742,755 1,518,249 Interest receivable on loans 5,128 4,133 Total recorded investment in loans $ 1,747,883 $ 1,522,382 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, 2022 and December 31, 2021, the Corporation had outstanding PPP loan balances of $1.4 million and $43.2 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, 2022 and December 31, 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, 2022 and 2021 (in thousands): Three Months Ended September 30, 2022 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 3,564 $ 10,314 $ 1,714 $ 1,893 $ 17,485 Charge-offs — — — (277) (277) Recoveries 6 1 40 121 168 Net recoveries (charge-offs) 6 1 40 (156) (109) Provision (55) 671 42 597 1,255 Ending balance $ 3,515 $ 10,986 $ 1,796 $ 2,334 $ 18,631 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 The following tables present the activity in the allowance for loan losses by portfolio segment for the nine month periods ended September 30, 2022 and 2021 (in thousands): Nine Months Ended September 30, 2022 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 3,591 $ 13,556 $ 1,803 $ 2,075 $ 21,025 Charge-offs (20) (687) — (599) (1,306) Recoveries 37 3 40 466 546 Net recoveries (charge-offs) 17 (684) 40 (133) (760) Provision (93) (1,886) (47) 392 (1,634) Ending balance $ 3,515 $ 10,986 $ 1,796 $ 2,334 $ 18,631 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 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, 2022 and December 31, 2021 (in thousands): September 30, 2022 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,323 $ 41 $ — $ 41 $ 1,405 Collectively evaluated for impairment 2,192 10,945 1,796 2,293 17,226 Total ending allowance balance $ 3,515 $ 10,986 $ 1,796 $ 2,334 $ 18,631 December 31, 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 $ 1,394 $ 1,571 $ — $ 65 $ 3,030 Collectively evaluated for impairment 2,197 11,985 1,803 2,010 17,995 Total ending allowance balance $ 3,591 $ 13,556 $ 1,803 $ 2,075 $ 21,025 September 30, 2022 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 2,531 $ 4,313 $ 768 $ 277 $ 7,889 Loans collectively evaluated for impairment 260,388 940,188 283,076 256,342 1,739,994 Total ending loans balance $ 262,919 $ 944,501 $ 283,844 $ 256,619 $ 1,747,883 December 31, 2021 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 2,427 $ 7,967 $ 938 $ 315 $ 11,647 Loans collectively evaluated for impairment 255,586 796,858 259,029 199,262 1,510,735 Total ending loans balance $ 258,013 $ 804,825 $ 259,967 $ 199,577 $ 1,522,382 The following table presents loans individually evaluated for impairment recognized by class of loans as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 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 $ 570 $ 569 $ — $ 954 $ 948 $ — Commercial mortgages: Construction 12 12 — 129 130 — Commercial mortgages, other 4,261 4,260 — 6,940 4,278 — Residential mortgages 777 768 — 951 938 — Consumer loans: Home equity lines and loans 160 144 — 185 169 — With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,961 1,962 1,323 5,350 1,479 1,394 Commercial mortgages: Commercial mortgages, other 41 41 41 3,550 3,559 1,571 Consumer loans: Home equity lines and loans 133 133 41 146 146 65 Total $ 7,915 $ 7,889 $ 1,405 $ 18,205 $ 11,647 $ 3,030 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, 2022 and 2021 (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( 1) Average Recorded Investment Interest Income Recognized( 1) Average Recorded Investment Interest Income Recognized( 1) Average Recorded Investment Interest Income Recognized( 1) Commercial and agricultural: Commercial and industrial $ 585 $ — $ 1,378 $ 3 $ 761 $ — $ 1,645 $ 3 Commercial mortgages: Construction 55 — 151 1 88 — 167 5 Commercial mortgages, other 4,150 7 4,665 8 4,171 14 4,743 23 Residential mortgages 846 9 950 12 890 19 1,034 29 Consumer loans: Home equity lines & loans 149 — 184 2 157 — 299 5 With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,643 2 1,545 4 1,545 5 1,511 6 Commercial mortgages: Commercial mortgages, other 42 — 3,644 25 1,563 — 1,905 25 Consumer loans: Home equity lines and loans 134 — 155 — 139 — 160 — Total $ 7,604 $ 18 $ 12,672 $ 55 $ 9,314 $ 38 $ 11,464 $ 96 (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 loan as of September 30, 2022 and December 31, 2021 (in thousands): Non-accrual Loans Past Due 90 Days or More and Still Accruing September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Commercial and agricultural: Commercial and industrial $ 2,360 $ 1,932 $ — $ 4 Commercial mortgages: Construction 12 34 — — Commercial mortgages, other 3,840 3,844 — — Residential mortgages 699 1,039 — — Consumer loans: Home equity lines and loans 833 790 — — Indirect consumer loans 565 462 — — Direct consumer loans 1 13 — — Total $ 8,310 $ 8,114 $ — $ 4 The following tables present the aging of the recorded investment in loans as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 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 $ 12 $ — $ 101 $ 113 $ 262,731 $ 262,844 Agricultural — — — — 75 75 Commercial mortgages: Construction 12 — — 12 105,652 105,664 Commercial mortgages, other 246 17 531 794 838,043 838,837 Residential mortgages 1,952 316 396 2,664 281,180 283,844 Consumer loans: Home equity lines and loans 133 159 457 749 76,356 77,105 Indirect consumer loans 905 230 270 1,405 167,126 168,531 Direct consumer loans 3 1 — 4 10,979 10,983 Total $ 3,263 $ 723 $ 1,755 $ 5,741 $ 1,742,142 $ 1,747,883 December 31, 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 $ 413 $ 148 $ 26 $ 587 $ 257,031 $ 257,618 Agricultural — — — — 395 395 Commercial mortgages: Construction — — — — 82,435 82,435 Commercial mortgages, other 24 224 1,302 1,550 720,840 722,390 Residential mortgages 580 32 652 1,264 258,703 259,967 Consumer loans: Home equity lines and loans 256 69 424 749 70,105 70,854 Indirect consumer loans 1,179 424 255 1,858 116,997 118,855 Direct consumer loans 24 11 13 48 9,820 9,868 Total $ 2,476 $ 908 $ 2,672 $ 6,056 $ 1,516,326 $ 1,522,382 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 were considered current for COVID-19 related modifications and therefore not be treated as TDRs, until January 1, 2022. As of September 30, 2022 and December 31, 2021, the Corporation had a recorded investment in TDRs of $5.9 million and $10.3 million, respectively. There were specific reserves of $0.3 million and $1.9 million allocated for TDRs at September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022, TDRs totaling $1.4 million were accruing interest under the modified terms and $4.4 million were on non-accrual status. As of December 31, 2021, TDRs totaling $5.6 million were accruing interest under the modified terms and $4.7 million were on non-accrual status. The Corporation committed no additional amounts as of both September 30, 2022 and December 31, 2021, to customers with outstanding loans that are classified as TDRs. During the three months ended September 30, 2022, no loans were modified as TDRs. During the three month period ended September 30, 2021, the terms and conditions of two commercial mortgage loans were modified as TDRs. The modification of the terms of both of the loans in the three months ended September 30, 2021 included a postponement or reduction of the scheduled amortized payments for greater than a three month period. During the nine months ended September 30, 2022, no loans were modified as TDRs. During the nine month period ended September 30, 2021, the terms and conditions of six commercial mortgage loans were modified as TDRs. The modification of the terms of all of the loans in the nine months ended September 30, 2021 included a postponement or reduction of the scheduled amortized payments for greater than a three month period. The following table presents loans by class modified as TDRs that occurred during the three month period ended September 30, 2021 (dollars in thousands): September 30, 2021 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial mortgages: Commercial mortgages, other 2 $ 502 $ 502 Total 2 $ 502 $ 502 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 following table presents loans by class modified as TDRs that occurred during the nine month period ended September 30, 2021 (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 — $ — $ — Commercial mortgages: Commercial mortgages, other 6 $ 6,596 $ 6,596 Total 6 $ 6,596 $ 6,596 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. 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, 2022 and 2021. 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 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. Retail loans are not rated until they become 90 days past due. 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, 2022 and December 31, 2021, the risk category of the recorded investment of loans by class of loans is as follows (in thousands): September 30, 2022 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 255,235 $ 3,366 $ 3,313 $ 930 $ 262,844 Agricultural — 75 — — — 75 Commercial mortgages: Construction — 105,473 179 12 — 105,664 Commercial mortgages — 802,080 28,910 7,806 41 838,837 Residential mortgages 283,145 — — 699 — 283,844 Consumer loans: Home equity lines and loans 76,272 — — 833 — 77,105 Indirect consumer loans 167,966 — — 565 — 168,531 Direct consumer loans 10,983 — — — — 10,983 Total $ 538,366 $ 1,162,863 $ 32,455 $ 13,228 $ 971 $ 1,747,883 December 31, 2021 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 250,529 $ 2,892 $ 3,108 $ 1,089 $ 257,618 Agricultural — 395 — — — 395 Commercial mortgages: Construction — 82,404 — 31 — 82,435 Commercial mortgages — 672,741 31,072 17,458 1,119 722,390 Residential mortgages 258,928 — — 1,039 — 259,967 Consumer loans: Home equity lines and loans 70,064 — — 790 — 70,854 Indirect consumer loans 118,393 — — 462 — 118,855 Direct consumer loans 9,855 — — 13 — 9,868 Total $ 457,240 $ 1,006,069 $ 33,964 $ 22,901 $ 2,208 $ 1,522,382 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, 2022 and December 31, 2021 (in thousands): September 30, 2022 Consumer Loans Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 283,145 $ 76,272 $ 167,966 $ 10,982 Non-Performing 699 833 565 1 $ 283,844 $ 77,105 $ 168,531 $ 10,983 December 31, 2021 Consumer Loans Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 258,928 $ 70,064 $ 118,393 $ 9,855 Non-Performing 1,039 790 462 13 $ 259,967 $ 70,854 $ 118,855 $ 9,868 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs U.S. Treasury notes and bonds $ 55,050 $ 55,050 $ — $ — Mortgage-backed securities, residential 440,634 — 440,634 — Obligations of states and political subdivisions 36,880 — 36,880 — Corporate bonds and notes 24,237 — 24,237 — SBA loan pools 83,551 — 83,551 — Total available for sale securities $ 640,352 $ 55,050 $ 585,302 $ — Equity investments, at fair value $ 2,184 $ 2,184 $ — $ — Derivative assets 28,600 — 28,600 — Financial Liabilities: Derivative liabilities $ 28,603 $ — $ 28,603 $ — There were no transfers between Level 1 and Level 2 during the three and nine month periods ended September 30, 2022. Fair Value Measurement at December 31, 2021 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs U.S. Treasury notes and bonds $ 60,431 $ 60,431 $ — $ — Mortgage-backed securities, residential 577,361 — 577,361 — Obligations of states and political subdivisions 42,303 — 42,303 — Corporate bonds and notes 22,848 — 22,848 — SBA loan pools 89,083 — 89,083 — Total available for sale securities $ 792,026 $ 60,431 $ 731,595 $ — Equity investments, at fair value $ 2,404 $ 2,404 $ — $ — Derivative assets 9,498 — 9,498 — Financial Liabilities: Derivative liabilities $ 9,726 $ — $ 9,726 $ — There were no transfers between Level 1 and Level 2 during the three and nine month periods ended September 30, 2021. Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Measurement at September 30, 2022 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) Other real estate owned: Residential mortgages $ 124 $ — $ — $ 124 $ — Consumer loans: Home equity lines and loans 60 — — 60 — Total other real estate owned, net $ 184 $ — $ — $ 184 $ — Fair Value Measurement at December 31, 2021 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) Other real estate owned: Residential mortgages $ 143 $ — $ — $ 143 $ — Total other real estate owned, net $ 143 $ — $ — $ 143 $ — The following tables present information related to Level 3 non-recurring fair value measurement at September 30, 2022 and December 31, 2021 (in thousands): Description Fair Value at September 30, 2022 Valuation Technique Unobservable Inputs Range [Weighted Average] at September 30, 2022 OREO: Residential mortgages $ 124 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] Consumer loans: Home equity lines and loans 60 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] $ 184 Description Fair Value at December 31, 2021 Valuation Technique Unobservable Inputs Range [Weighted Average] at December 31, 2021 OREO: Residential mortgages $ 143 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] $ 143 FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts and estimated fair values of other financial instruments, at September 30, 2022 and December 31, 2021, are as follows (in thousands): September 30, 2022 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 $ 32,262 $ 32,262 $ — $ — $ 32,262 Interest-earning deposits in other financial institutions 10,161 10,161 — — 10,161 Equity investments 2,677 2,677 — — 2,677 Securities available for sale 640,352 55,050 585,302 — 640,352 Securities held to maturity 3,210 — 957 1,981 2,938 FHLBNY and FRBNY stock 3,872 — — — N/A Loans, net and loans held for sale 1,724,124 — — 1,697,283 1,697,283 Accrued interest receivable 7,112 142 1,842 5,128 7,112 Derivative Assets 28,600 — 28,600 — 28,600 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,982,676 $ 1,982,676 $ — $ — $ 1,982,676 Time deposits 349,864 — 348,585 — 348,585 Accrued interest payable 343 28 315 — 343 Derivative Liabilities 28,603 — 28,603 — 28,603 (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, 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 $ 17,365 $ 17,365 $ — $ — $ 17,365 Interest-earning deposits in other financial institutions 9,616 9,616 — — 9,616 Equity investments 2,964 2,964 — — 2,964 Securities available for sale 792,026 60,431 731,595 — 792,026 Securities held to maturity 3,790 — 1,639 2,157 3,796 FHLBNY and FRBNY stock 4,218 — — — N/A Loans, net and loans held for sale 1,497,620 — — 1,480,967 1,480,967 Accrued interest receivable 5,985 106 1,746 4,133 5,985 Derivative Asset 9,498 — 9,498 — 9,498 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,959,076 $ 1,959,076 $ — $ — $ 1,959,076 Time deposits 196,357 — 197,658 — 197,658 Accrued interest payable 210 10 200 — 210 Derivative Liabilities 9,726 — 9,726 — 9,726 (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, 2022 | |
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, 2022, the weighted average remaining lease term was 8.82 years with a weighted average discount rate of 3.35%. Rent expense was $0.2 million for the three months ended September 30, 2022. Rent expense was $0.7 million for the nine months ended September 30, 2022. 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, 2022 and December 31, 2021 consist of the following (in thousands): September 30, 2022 December 31, 2021 Operating lease right-of-use asset $ 7,234 $ 7,145 Less: accumulated amortization (588) (759) Less: lease termination — (313) Add: new lease agreement and modifications — 1,161 Operating lease right-of-use-assets, net $ 6,646 $ 7,234 The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of September 30, 2022 (in thousands): Year Amount 2022 $ 243 2023 992 2024 924 2025 841 2026 845 2027 and thereafter 4,022 Total minimum lease payments 7,867 Less: amount representing interest (1,057) Present value of net minimum lease payments $ 6,810 As of September 30, 2022, the Corporation had no operating leases that were signed, but had not yet commenced. Finance Leases The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of September 30, 2022, the weighted average remaining lease term was 10.45 years with a weighted average discount rate of 3.39%. The Corporation has included these leases in premises and equipment September 30, 2022 December 31, 2021 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,457) (2,208) Net book value $ 3,115 $ 3,364 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, 2022 (in thousands): Year Amount 2022 $ 98 2023 391 2024 391 2025 409 2026 425 2027 and thereafter 2,415 Total minimum lease payments 4,129 Less: amount representing interest (735) Present value of net minimum lease payments $ 3,394 As of September 30, 2022, 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 former member of the Corporation's B oard of Directors with monthly rent and CAM related expenses totaling $4 thousand per month. This Board member retired from the Corporation's Board of Directors as of June 7, 2022. Rent and CAM paid to this Board member while serving on the Board totaled $13 thousand for the three month period ended September 30, 2021. Rent and CAM paid to this Board member while serving on the Board totaled $25 thousand and $37 thousand for the nine month periods ended September 30, 2022 and 2021, 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, 2022, the weighted average remaining lease term was 8.82 years with a weighted average discount rate of 3.35%. Rent expense was $0.2 million for the three months ended September 30, 2022. Rent expense was $0.7 million for the nine months ended September 30, 2022. 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, 2022 and December 31, 2021 consist of the following (in thousands): September 30, 2022 December 31, 2021 Operating lease right-of-use asset $ 7,234 $ 7,145 Less: accumulated amortization (588) (759) Less: lease termination — (313) Add: new lease agreement and modifications — 1,161 Operating lease right-of-use-assets, net $ 6,646 $ 7,234 The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of September 30, 2022 (in thousands): Year Amount 2022 $ 243 2023 992 2024 924 2025 841 2026 845 2027 and thereafter 4,022 Total minimum lease payments 7,867 Less: amount representing interest (1,057) Present value of net minimum lease payments $ 6,810 As of September 30, 2022, the Corporation had no operating leases that were signed, but had not yet commenced. Finance Leases The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of September 30, 2022, the weighted average remaining lease term was 10.45 years with a weighted average discount rate of 3.39%. The Corporation has included these leases in premises and equipment September 30, 2022 December 31, 2021 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,457) (2,208) Net book value $ 3,115 $ 3,364 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, 2022 (in thousands): Year Amount 2022 $ 98 2023 391 2024 391 2025 409 2026 425 2027 and thereafter 2,415 Total minimum lease payments 4,129 Less: amount representing interest (735) Present value of net minimum lease payments $ 3,394 As of September 30, 2022, 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 former member of the Corporation's B oard of Directors with monthly rent and CAM related expenses totaling $4 thousand per month. This Board member retired from the Corporation's Board of Directors as of June 7, 2022. Rent and CAM paid to this Board member while serving on the Board totaled $13 thousand for the three month period ended September 30, 2021. Rent and CAM paid to this Board member while serving on the Board totaled $25 thousand and $37 thousand for the nine month periods ended September 30, 2022 and 2021, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021 were as follows (in thousands): 2022 2021 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, 2022 and December 31, 2021 (in thousands): At September 30, 2022 At December 31, 2021 Balance Acquired Accumulated Amortization Balance Acquired Accumulated Amortization Core deposit intangibles $ 5,975 $ 5,975 $ 5,975 $ 5,974 Other customer relationship intangibles 5,633 5,633 5,633 5,619 Total $ 11,608 $ 11,608 $ 11,608 $ 11,593 The Corporation had no aggregate amortization expense for the three month period ended September 30, 2022, and $42.0 thousand for the three month period ended September 30, 2021. Aggregate amortization expense was $15.0 thousand and $0.2 million for the nine month periods ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there is no remaining estimated aggregate amortization expense. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The 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, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 44,335 $ 87,929 $ 20,772 $ 46,558 Unused lines of credit 4,631 331,477 4,745 288,368 Standby letters of credit — 17,407 — 7,974 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, 2022, 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, 2022 | |
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, 2022 $ (51,329) $ (4,016) $ (55,345) Other comprehensive income before reclassification (24,547) — (24,547) Amounts reclassified from accumulated other comprehensive income — 11 11 Net current period other comprehensive income (loss) (24,547) 11 (24,536) Balance at September 30, 2022 $ (75,876) $ (4,005) $ (79,881) 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 January 1, 2022 $ (2,495) $ (4,035) $ (6,530) Other comprehensive income before reclassification (73,381) — (73,381) Amounts reclassified from accumulated other comprehensive income — 30 30 Net current period other comprehensive income (73,381) 30 (73,351) Balance at September 30, 2022 $ (75,876) $ (4,005) $ (79,881) 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) 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 2022 2021 Amortization of defined pension plan and other benefit plan items: Prior service costs (a) $ — $ (55) Other components of net periodic pension and postretirement benefits Actuarial losses (a) 16 57 Other components of net periodic pension and postretirement benefits Tax effect (5) (1) Income tax expense Net of tax 11 1 Total reclassification for the period, net of tax $ 11 $ 1 (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, 2022 | |
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, 2022 and 2021 (in thousands). Items outside the scope of ASC 606 are noted as such. Three Months Ended September 30, 2022 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 846 $ — $ — $ 846 Other 143 — — 143 Interchange revenue from debit card transactions 1,126 — — 1,126 WMG fee income — 2,403 — 2,403 CFS fee and commission income — — 251 251 Net gains (losses) on sales of OREO 22 — — 22 Net gains on sales of loans (a) 7 — — 7 Loan servicing fees (a) 38 — — 38 Changes in fair value of equity investments (a) (96) — 3 (93) Income from bank-owned life insurance (a) 12 — — 12 Other (a) 319 — (38) 281 Total non-interest income (loss) $ 2,417 $ 2,403 $ 216 $ 5,036 (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, 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 $ 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. Nine Months Ended September 30, 2022 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 2,246 $ — $ — $ 2,246 Other 543 — — 543 Interchange revenue from debit card transactions 3,462 — — 3,462 WMG fee income — 7,788 — 7,788 CFS fee and commission income — — 775 775 Net gains (losses) on sales of OREO 68 — — 68 Net gains on sales of loans (a) 106 — — 106 Loan servicing fees (a) 115 — — 115 Net gains on sales of securities (a) — — — — Changes in fair value of equity investments (a) (446) — (2) (448) Income from bank-owned life insurance (a) 34 — — 34 Other (a) 1,424 — (95) 1,329 Total non-interest income $ 7,552 $ 7,788 $ 678 $ 16,018 (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 on sales of OREO (18) — — (18) Net gains on sales of loans (a) 884 — — 884 Loan servicing fees (a) 108 — — 108 Net gains on sales of securities (a) — — — — Change in fair value of equity securities (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. 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, 2022 | |
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 2022 2021 2022 2021 Qualified Pension Plan Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 282 271 848 813 Expected return on plan assets (720) (673) (2,141) (2,019) Amortization of unrecognized transition obligation — — — — Amortization of unrecognized prior service cost — — — — Amortization of unrecognized net loss — 38 — 113 Net periodic pension benefit $ (438) $ (364) $ (1,293) $ (1,093) Supplemental Pension Plan Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 8 8 25 24 Expected return on plan assets — — — — Amortization of unrecognized prior service cost — — — — Amortization of unrecognized net loss 6 5 13 15 Net periodic supplemental pension cost $ 14 $ 13 $ 38 $ 39 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 1 1 3 5 Expected return on plan assets — — — — Amortization of unrecognized prior service cost — (55) — (165) Amortization of unrecognized net loss 10 14 28 41 Net periodic postretirement, medical and life benefit $ 11 $ (40) $ 31 $ (119) |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2022 | |
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 2021 Annual Report on Form 10-K, which was filed with the SEC on March 23, 2022. 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 columns below includes amounts to eliminate transactions between segments (in thousands). Three months ended September 30, 2022 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 20,983 $ — $ 16 $ 20,999 Interest expense 2,009 — — 2,009 Net interest income 18,974 — 16 18,990 Provision for loan losses 1,255 — — 1,255 Net interest income after provision for loan losses 17,719 — 16 17,735 Other non-interest income 2,417 2,403 216 5,036 Other non-interest expenses 12,559 1,715 303 14,577 Income (loss) before income tax expense (benefit) 7,577 688 (71) 8,194 Income tax expense (benefit) 1,590 167 (16) 1,741 Segment net income (loss) $ 5,987 $ 521 $ (55) $ 6,453 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 Legal accruals and settlements — — — — 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 Nine Months Ended September 30, 2022 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 56,965 $ — $ 30 $ 56,995 Interest expense 3,687 — — 3,687 Net interest income 53,278 — 30 53,308 Provision for loan losses (1,634) — — (1,634) Net interest income after provision for loan losses 54,912 — 30 54,942 Other non-interest income 7,552 7,788 678 16,018 Other non-interest expenses 37,316 5,180 1,091 43,587 Income (loss) before income tax expense (benefit) 25,148 2,608 (383) 27,373 Income tax expense (benefit) 5,523 605 (99) 6,029 Segment net income (loss) $ 19,625 $ 2,003 $ (284) $ 21,344 Segment assets $ 2,544,528 $ 2,804 $ 4,090 $ 2,551,422 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 $ 3,126 $ 6,122 $ 2,417,566 |
STOCK COMPENSATION
STOCK COMPENSATION | 9 Months Ended |
Sep. 30, 2022 | |
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. The 2021 Plan provides officers, employees and directors of the Corporation and the Bank with additional incentives to promote the growth and performance of the Corporation. The prior plan shall remain in existence solely for the purpose of administering outstanding grants. Under the terms of the 2021 Plan, the Corporation may make discretionary grants of restricted shares of the Corporation’s common stock to or for the benefit of employees selected to participate in the 2021 Plan, the chief executive officer and members of the Board of Directors. Awards are based on the performance, responsibility and contributions of the individual and are targeted at an average of the peer group. The maximum number of shares of the Corporation’s common stock that may be awarded as restricted shares related to the 2021 Plan may not exceed 170,000, upon which time a new plan may be created. Compensation expense for shares granted will be recognized over the vesting period of the award based upon the average closing price of the Corporation's stock for each of the prior 30 trading days ending on the grant date. During the nine months ended September 30, 2022 and 2021, 12,560 and 13,151 shares, respectively, were re-issued from treasury to fund stock compensation. The expense related to the grants made in the first quarter of 2022 is recognized over a one year vesting period. Expense related to this compensation of $0.2 million was recognized during each of the three month periods ended September 30, 2022 and 2021, respectively. Expense related to this compensation of $0.8 million and $0.7 million was recognized during the nine month periods ended September 30, 2022 and 2021, respectively. No shares were granted during the three month periods ended September 30, 2022 and 2021. A summary of restricted stock activity for the three and nine months ended September 30, 2022 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at July 1, 2022 47,607 $43.72 Granted — Vested — Forfeited or cancelled (48) $42.77 Nonvested at September 30, 2022 47,559 Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2022 37,837 $42.99 Granted 12,560 $45.55 Vested (2,109) $42.51 Forfeited or cancelled (729) $40.69 Nonvested at September 30, 2022 47,559 $43.77 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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 2021 Annual Report on Form 10-K for the year ended December 31, 2021. 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 | 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. The ASU supersedes current GAAP by replacing the incurred loss impairment method with a methodology that reflects lifetime expected credit losses and requires the consideration of a broader range of reasonable and supportable information to form credit loss estimates. In November 2019, the FASB adopted an amendment to postpone 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 delayed adoption. The Corporation has established a committee to oversee the implementation of CECL and has contracted a vendor to assist in model development and implementation, and is in the process of updating its policies and internal controls accordingly. Additionally the Corporation has contracted an independent third party to validate the selected model. The basis for the model of the quantitative portion of the estimation of expected credit losses is the historical loss experience amongst a curated group of peers. The Corporation utilized regression analyses of peer data, of which the Corporation was included, and where observed credit losses and selected economic factors were utilized to determine suitable loss drivers for modeling the lifetime rates of probability of default (PD). The chosen model utilizes a discounted cash flow (DCF) analysis for all loan portfolio segments as its foundation. Portfolio segments are the level at which loss assumptions are applied to a pool of loans based on the similarity of the risk characteristics inherent in the included instruments. The DCF analysis is run at the instrument-level and incorporates an array of loan-specific and segment-implied assumptions in order to determine the lifetime expected loss attributable to the instrument. The loss driver for each loan portfolio segment is derived from a readily available and reasonable economic forecast, which is applied over a four-quarter period, and incorporates an eight-quarter reversion to the historical mean on a straight-line basis beyond the reasonable forecast period. The selected model also incorporates qualitative factors in order to appropriately adjust for risk in a given portfolio segment that may not be fully captured through quantitative analysis. Determinations regarding qualitative adjustments are made based on management’s expectation of loss conditions differing from those already captured in the quantitative component of the model. The Corporation expects to recognize a one-time cumulative-effect adjustment to retained earnings upon adoption of CECL, effective January 1, 2023, in order to bring our allowance for credit losses (ACL) into conformity with the ASU, consistent with regulatory expectations set forth in interagency guidance. The Corporation is currently refining the assumptions built into its model, and is running parallel calculations on an ongoing basis. The Corporation estimates that under the ACL framework, the allowance for credit losses may increase, and the increase may be material, when compared to the amount being carried on the consolidated balance sheet at September 30, 2022. This increase encompasses the loans that the Corporation currently evaluates for impairment on an individual basis, loans evaluated collectively by pooled segment, and unfunded commitments made by the Corporation not currently carried on the balance sheet. Based on the composition and quality of the Corporation’s debt securities portfolio, management has determined there to be a zero loss estimate on securities that are backed by U.S. governmental agencies. In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method. The amendments in this ASU expand the current last-of-layer hedging model from a single-layer method to allow multiple hedged layers of a single closed portfolio. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method. In addition, ASU 2022-01 (1) expands the scope of the portfolio layer method to include non-prepayable assets, (2) specifies eligible hedging instruments in a single-layer hedge, (3) provides additional guidance on the accounting for and disclosure of hedge basis adjustments under the portfolio layer method and (4) specifies how edge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. ASU 2022-01 is effective for interim and annual periods beginning after December 15, 2022, although early adoption is permitted. Upon adoption, ASU 2022-01 is not expected to have a significant impact on the Corporation's financial condition or results of operations. In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU made certain targeted amendments specific to troubled debt restructurings (TDRs) by creditors and vintage disclosure related to gross write-offs. Upon adoption, the Corporation will be required to apply the loan and refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan, rather than applying the recognition and measurement guidance for TDRs. The ASU also requires companies to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within scope of Subtopic 326-20. ASU 2022-02 is effective for periods beginning after December 15, 2022. The Corporation will adopt ASU 2016-13 effective January 1, 2023 and will simultaneously implement ASU 2022-02. Risks and Uncertainties - COVID-19 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. As part of this analysis, management identified what it believes to be higher risk loans through a detailed analysis of industry codes. During 2020, management increased certain allowance qualitative factors 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. As part of this analysis, the Corporation released the final $1.2 million of the pandemic related portion of the allowance in the third quarter of 2022. In total, the Corporation released $4.3 million and utilized $0.5 million of the pandemic related allowance established in 2020. |
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 shares, 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 nonforfeitable 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, 2022 | |
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, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes and bonds $ 61,791 $ — $ 6,741 $ 55,050 Mortgage-backed securities, residential 530,372 — 89,738 440,634 Obligations of states and political subdivisions 39,916 — 3,036 36,880 Corporate bonds and notes 25,750 — 1,513 24,237 SBA loan pools 85,337 204 1,990 83,551 Total $ 743,166 $ 204 $ 103,018 $ 640,352 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes and bonds $ 61,084 $ 27 $ 680 $ 60,431 Mortgage-backed securities, residential 582,060 4,032 8,731 577,361 Obligations of states and political subdivisions 40,299 2,004 — 42,303 Corporate bonds and notes 22,750 180 82 22,848 SBA loan pools 89,216 344 477 89,083 Total $ 795,409 $ 6,587 $ 9,970 $ 792,026 |
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, 2022 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 1,981 $ — $ — $ 1,981 Time deposits with other financial institutions 1,229 — 5 1,224 Total $ 3,210 $ — $ 5 $ 3,205 December 31, 2021 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Obligations of states and political subdivisions $ 2,157 $ — $ — $ 2,157 Time deposits with other financial institutions 1,633 6 — 1,639 Total $ 3,790 $ 6 $ — $ 3,796 |
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | Securities not due at a single maturity date are shown separately (in thousands): September 30, 2022 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 2,937 $ 2,862 $ 2,204 $ 2,199 After one, but within five years 103,872 93,767 1,006 1,006 After five, but within ten years 20,178 19,142 — — After ten years 470 396 — — 127,457 116,167 3,210 3,205 Mortgage-backed securities, residential 530,372 440,634 — — SBA loan pools 85,337 83,551 — — Total $ 743,166 $ 640,352 $ 3,210 $ 3,205 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following tables summarize the investment securities available for sale with unrealized losses at September 30, 2022 and December 31, 2021 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, 2022 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ 18,733 $ 2,155 $ 36,317 $ 4,586 $ 55,050 $ 6,741 Mortgage-backed securities, residential 137,623 17,742 303,011 71,996 440,634 89,738 Obligations of states and political subdivisions 36,685 3,036 — — 36,685 3,036 Corporate bonds and notes 9,615 1,135 4,621 378 14,236 1,513 SBA loan pools 26,290 982 38,214 1,008 64,504 1,990 Total temporarily impaired securities $ 228,946 $ 25,050 $ 382,163 $ 77,968 $ 611,109 $ 103,018 Less than 12 months 12 months or longer Total December 31, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ 49,084 $ 680 $ — $ — $ 49,084 $ 680 Mortgage-backed securities, residential 293,720 4,502 122,050 4,229 415,770 8,731 Corporate bonds and notes 4,928 72 1,989 10 6,917 82 SBA loan pools 51,235 296 13,769 181 65,004 477 Total temporarily impaired securities $ 398,967 $ 5,550 $ 137,808 $ 4,420 $ 536,775 $ 9,970 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [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, 2022 December 31, 2021 Commercial and agricultural: Commercial and industrial $ 262,014 $ 256,893 Agricultural 75 394 Commercial mortgages: Construction 105,330 82,204 Commercial mortgages, other 836,190 720,358 Residential mortgages 283,128 259,334 Consumer loans: Home equity lines and loans 76,871 70,670 Indirect consumer loans 168,214 118,569 Direct consumer loans 10,933 9,827 Total loans, net of deferred loan fees and costs 1,742,755 1,518,249 Interest receivable on loans 5,128 4,133 Total recorded investment in loans $ 1,747,883 $ 1,522,382 |
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, 2022 and 2021 (in thousands): Three Months Ended September 30, 2022 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 3,564 $ 10,314 $ 1,714 $ 1,893 $ 17,485 Charge-offs — — — (277) (277) Recoveries 6 1 40 121 168 Net recoveries (charge-offs) 6 1 40 (156) (109) Provision (55) 671 42 597 1,255 Ending balance $ 3,515 $ 10,986 $ 1,796 $ 2,334 $ 18,631 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 The following tables present the activity in the allowance for loan losses by portfolio segment for the nine month periods ended September 30, 2022 and 2021 (in thousands): Nine Months Ended September 30, 2022 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 3,591 $ 13,556 $ 1,803 $ 2,075 $ 21,025 Charge-offs (20) (687) — (599) (1,306) Recoveries 37 3 40 466 546 Net recoveries (charge-offs) 17 (684) 40 (133) (760) Provision (93) (1,886) (47) 392 (1,634) Ending balance $ 3,515 $ 10,986 $ 1,796 $ 2,334 $ 18,631 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 |
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, 2022 and December 31, 2021 (in thousands): September 30, 2022 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,323 $ 41 $ — $ 41 $ 1,405 Collectively evaluated for impairment 2,192 10,945 1,796 2,293 17,226 Total ending allowance balance $ 3,515 $ 10,986 $ 1,796 $ 2,334 $ 18,631 December 31, 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 $ 1,394 $ 1,571 $ — $ 65 $ 3,030 Collectively evaluated for impairment 2,197 11,985 1,803 2,010 17,995 Total ending allowance balance $ 3,591 $ 13,556 $ 1,803 $ 2,075 $ 21,025 September 30, 2022 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 2,531 $ 4,313 $ 768 $ 277 $ 7,889 Loans collectively evaluated for impairment 260,388 940,188 283,076 256,342 1,739,994 Total ending loans balance $ 262,919 $ 944,501 $ 283,844 $ 256,619 $ 1,747,883 December 31, 2021 Loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 2,427 $ 7,967 $ 938 $ 315 $ 11,647 Loans collectively evaluated for impairment 255,586 796,858 259,029 199,262 1,510,735 Total ending loans balance $ 258,013 $ 804,825 $ 259,967 $ 199,577 $ 1,522,382 |
Schedule of Impaired Financing Receivables | The following table presents loans individually evaluated for impairment recognized by class of loans as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 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 $ 570 $ 569 $ — $ 954 $ 948 $ — Commercial mortgages: Construction 12 12 — 129 130 — Commercial mortgages, other 4,261 4,260 — 6,940 4,278 — Residential mortgages 777 768 — 951 938 — Consumer loans: Home equity lines and loans 160 144 — 185 169 — With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,961 1,962 1,323 5,350 1,479 1,394 Commercial mortgages: Commercial mortgages, other 41 41 41 3,550 3,559 1,571 Consumer loans: Home equity lines and loans 133 133 41 146 146 65 Total $ 7,915 $ 7,889 $ 1,405 $ 18,205 $ 11,647 $ 3,030 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, 2022 and 2021 (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( 1) Average Recorded Investment Interest Income Recognized( 1) Average Recorded Investment Interest Income Recognized( 1) Average Recorded Investment Interest Income Recognized( 1) Commercial and agricultural: Commercial and industrial $ 585 $ — $ 1,378 $ 3 $ 761 $ — $ 1,645 $ 3 Commercial mortgages: Construction 55 — 151 1 88 — 167 5 Commercial mortgages, other 4,150 7 4,665 8 4,171 14 4,743 23 Residential mortgages 846 9 950 12 890 19 1,034 29 Consumer loans: Home equity lines & loans 149 — 184 2 157 — 299 5 With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,643 2 1,545 4 1,545 5 1,511 6 Commercial mortgages: Commercial mortgages, other 42 — 3,644 25 1,563 — 1,905 25 Consumer loans: Home equity lines and loans 134 — 155 — 139 — 160 — Total $ 7,604 $ 18 $ 12,672 $ 55 $ 9,314 $ 38 $ 11,464 $ 96 (1) Cash basis interest income approximates interest income recognized. |
Schedule of Recorded Investment in Past Due and Non-Accrual Status by Class of Loans | The following table presents the recorded investment in non-accrual and loans past due 90 days or more and still accruing by class of loan as of September 30, 2022 and December 31, 2021 (in thousands): Non-accrual Loans Past Due 90 Days or More and Still Accruing September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Commercial and agricultural: Commercial and industrial $ 2,360 $ 1,932 $ — $ 4 Commercial mortgages: Construction 12 34 — — Commercial mortgages, other 3,840 3,844 — — Residential mortgages 699 1,039 — — Consumer loans: Home equity lines and loans 833 790 — — Indirect consumer loans 565 462 — — Direct consumer loans 1 13 — — Total $ 8,310 $ 8,114 $ — $ 4 The following tables present the aging of the recorded investment in loans as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 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 $ 12 $ — $ 101 $ 113 $ 262,731 $ 262,844 Agricultural — — — — 75 75 Commercial mortgages: Construction 12 — — 12 105,652 105,664 Commercial mortgages, other 246 17 531 794 838,043 838,837 Residential mortgages 1,952 316 396 2,664 281,180 283,844 Consumer loans: Home equity lines and loans 133 159 457 749 76,356 77,105 Indirect consumer loans 905 230 270 1,405 167,126 168,531 Direct consumer loans 3 1 — 4 10,979 10,983 Total $ 3,263 $ 723 $ 1,755 $ 5,741 $ 1,742,142 $ 1,747,883 December 31, 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 $ 413 $ 148 $ 26 $ 587 $ 257,031 $ 257,618 Agricultural — — — — 395 395 Commercial mortgages: Construction — — — — 82,435 82,435 Commercial mortgages, other 24 224 1,302 1,550 720,840 722,390 Residential mortgages 580 32 652 1,264 258,703 259,967 Consumer loans: Home equity lines and loans 256 69 424 749 70,105 70,854 Indirect consumer loans 1,179 424 255 1,858 116,997 118,855 Direct consumer loans 24 11 13 48 9,820 9,868 Total $ 2,476 $ 908 $ 2,672 $ 6,056 $ 1,516,326 $ 1,522,382 |
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 (dollars in thousands): September 30, 2021 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial mortgages: Commercial mortgages, other 2 $ 502 $ 502 Total 2 $ 502 $ 502 The following table presents loans by class modified as TDRs that occurred during the nine month period ended September 30, 2021 (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 — $ — $ — Commercial mortgages: Commercial mortgages, other 6 $ 6,596 $ 6,596 Total 6 $ 6,596 $ 6,596 |
Schedule of Risk Category of the Recorded Investment of Loans by Class of Loans | Based on the analyses performed as of September 30, 2022 and December 31, 2021, the risk category of the recorded investment of loans by class of loans is as follows (in thousands): September 30, 2022 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 255,235 $ 3,366 $ 3,313 $ 930 $ 262,844 Agricultural — 75 — — — 75 Commercial mortgages: Construction — 105,473 179 12 — 105,664 Commercial mortgages — 802,080 28,910 7,806 41 838,837 Residential mortgages 283,145 — — 699 — 283,844 Consumer loans: Home equity lines and loans 76,272 — — 833 — 77,105 Indirect consumer loans 167,966 — — 565 — 168,531 Direct consumer loans 10,983 — — — — 10,983 Total $ 538,366 $ 1,162,863 $ 32,455 $ 13,228 $ 971 $ 1,747,883 December 31, 2021 Not Rated Pass Special Mention Substandard Doubtful Total Commercial and agricultural: Commercial and industrial $ — $ 250,529 $ 2,892 $ 3,108 $ 1,089 $ 257,618 Agricultural — 395 — — — 395 Commercial mortgages: Construction — 82,404 — 31 — 82,435 Commercial mortgages — 672,741 31,072 17,458 1,119 722,390 Residential mortgages 258,928 — — 1,039 — 259,967 Consumer loans: Home equity lines and loans 70,064 — — 790 — 70,854 Indirect consumer loans 118,393 — — 462 — 118,855 Direct consumer loans 9,855 — — 13 — 9,868 Total $ 457,240 $ 1,006,069 $ 33,964 $ 22,901 $ 2,208 $ 1,522,382 |
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, 2022 and December 31, 2021 (in thousands): September 30, 2022 Consumer Loans Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 283,145 $ 76,272 $ 167,966 $ 10,982 Non-Performing 699 833 565 1 $ 283,844 $ 77,105 $ 168,531 $ 10,983 December 31, 2021 Consumer Loans Residential Mortgages Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 258,928 $ 70,064 $ 118,393 $ 9,855 Non-Performing 1,039 790 462 13 $ 259,967 $ 70,854 $ 118,855 $ 9,868 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs U.S. Treasury notes and bonds $ 55,050 $ 55,050 $ — $ — Mortgage-backed securities, residential 440,634 — 440,634 — Obligations of states and political subdivisions 36,880 — 36,880 — Corporate bonds and notes 24,237 — 24,237 — SBA loan pools 83,551 — 83,551 — Total available for sale securities $ 640,352 $ 55,050 $ 585,302 $ — Equity investments, at fair value $ 2,184 $ 2,184 $ — $ — Derivative assets 28,600 — 28,600 — Financial Liabilities: Derivative liabilities $ 28,603 $ — $ 28,603 $ — There were no transfers between Level 1 and Level 2 during the three and nine month periods ended September 30, 2022. Fair Value Measurement at December 31, 2021 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs U.S. Treasury notes and bonds $ 60,431 $ 60,431 $ — $ — Mortgage-backed securities, residential 577,361 — 577,361 — Obligations of states and political subdivisions 42,303 — 42,303 — Corporate bonds and notes 22,848 — 22,848 — SBA loan pools 89,083 — 89,083 — Total available for sale securities $ 792,026 $ 60,431 $ 731,595 $ — Equity investments, at fair value $ 2,404 $ 2,404 $ — $ — Derivative assets 9,498 — 9,498 — Financial Liabilities: Derivative liabilities $ 9,726 $ — $ 9,726 $ — |
Information Related To Level 3 Non-Recurring Fair Value Measurement | Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Measurement at September 30, 2022 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) Other real estate owned: Residential mortgages $ 124 $ — $ — $ 124 $ — Consumer loans: Home equity lines and loans 60 — — 60 — Total other real estate owned, net $ 184 $ — $ — $ 184 $ — Fair Value Measurement at December 31, 2021 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Gains (Losses) Other real estate owned: Residential mortgages $ 143 $ — $ — $ 143 $ — Total other real estate owned, net $ 143 $ — $ — $ 143 $ — The following tables present information related to Level 3 non-recurring fair value measurement at September 30, 2022 and December 31, 2021 (in thousands): Description Fair Value at September 30, 2022 Valuation Technique Unobservable Inputs Range [Weighted Average] at September 30, 2022 OREO: Residential mortgages $ 124 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] Consumer loans: Home equity lines and loans 60 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] $ 184 Description Fair Value at December 31, 2021 Valuation Technique Unobservable Inputs Range [Weighted Average] at December 31, 2021 OREO: Residential mortgages $ 143 Sales comparison Discount to appraised value 20.80% - 20.80% [20.80%] $ 143 |
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, 2022 and December 31, 2021, are as follows (in thousands): September 30, 2022 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 $ 32,262 $ 32,262 $ — $ — $ 32,262 Interest-earning deposits in other financial institutions 10,161 10,161 — — 10,161 Equity investments 2,677 2,677 — — 2,677 Securities available for sale 640,352 55,050 585,302 — 640,352 Securities held to maturity 3,210 — 957 1,981 2,938 FHLBNY and FRBNY stock 3,872 — — — N/A Loans, net and loans held for sale 1,724,124 — — 1,697,283 1,697,283 Accrued interest receivable 7,112 142 1,842 5,128 7,112 Derivative Assets 28,600 — 28,600 — 28,600 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,982,676 $ 1,982,676 $ — $ — $ 1,982,676 Time deposits 349,864 — 348,585 — 348,585 Accrued interest payable 343 28 315 — 343 Derivative Liabilities 28,603 — 28,603 — 28,603 (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, 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 $ 17,365 $ 17,365 $ — $ — $ 17,365 Interest-earning deposits in other financial institutions 9,616 9,616 — — 9,616 Equity investments 2,964 2,964 — — 2,964 Securities available for sale 792,026 60,431 731,595 — 792,026 Securities held to maturity 3,790 — 1,639 2,157 3,796 FHLBNY and FRBNY stock 4,218 — — — N/A Loans, net and loans held for sale 1,497,620 — — 1,480,967 1,480,967 Accrued interest receivable 5,985 106 1,746 4,133 5,985 Derivative Asset 9,498 — 9,498 — 9,498 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,959,076 $ 1,959,076 $ — $ — $ 1,959,076 Time deposits 196,357 — 197,658 — 197,658 Accrued interest payable 210 10 200 — 210 Derivative Liabilities 9,726 — 9,726 — 9,726 (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, 2022 | |
Leases [Abstract] | |
Schedule of Leased Branch Properties | Leased branch properties at September 30, 2022 and December 31, 2021 consist of the following (in thousands): September 30, 2022 December 31, 2021 Operating lease right-of-use asset $ 7,234 $ 7,145 Less: accumulated amortization (588) (759) Less: lease termination — (313) Add: new lease agreement and modifications — 1,161 Operating lease right-of-use-assets, net $ 6,646 $ 7,234 |
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, 2022 (in thousands): Year Amount 2022 $ 243 2023 992 2024 924 2025 841 2026 845 2027 and thereafter 4,022 Total minimum lease payments 7,867 Less: amount representing interest (1,057) Present value of net minimum lease payments $ 6,810 |
Schedule of Leases in Premises and Equipment | The Corporation has included these leases in premises and equipment September 30, 2022 December 31, 2021 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,457) (2,208) Net book value $ 3,115 $ 3,364 |
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, 2022 (in thousands): Year Amount 2022 $ 98 2023 391 2024 391 2025 409 2026 425 2027 and thereafter 2,415 Total minimum lease payments 4,129 Less: amount representing interest (735) Present value of net minimum lease payments $ 3,394 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021 were as follows (in thousands): 2022 2021 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, 2022 and December 31, 2021 (in thousands): At September 30, 2022 At December 31, 2021 Balance Acquired Accumulated Amortization Balance Acquired Accumulated Amortization Core deposit intangibles $ 5,975 $ 5,975 $ 5,975 $ 5,974 Other customer relationship intangibles 5,633 5,633 5,633 5,619 Total $ 11,608 $ 11,608 $ 11,608 $ 11,593 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 44,335 $ 87,929 $ 20,772 $ 46,558 Unused lines of credit 4,631 331,477 4,745 288,368 Standby letters of credit — 17,407 — 7,974 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 $ (51,329) $ (4,016) $ (55,345) Other comprehensive income before reclassification (24,547) — (24,547) Amounts reclassified from accumulated other comprehensive income — 11 11 Net current period other comprehensive income (loss) (24,547) 11 (24,536) Balance at September 30, 2022 $ (75,876) $ (4,005) $ (79,881) 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 January 1, 2022 $ (2,495) $ (4,035) $ (6,530) Other comprehensive income before reclassification (73,381) — (73,381) Amounts reclassified from accumulated other comprehensive income — 30 30 Net current period other comprehensive income (73,381) 30 (73,351) Balance at September 30, 2022 $ (75,876) $ (4,005) $ (79,881) 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) |
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 2022 2021 Amortization of defined pension plan and other benefit plan items: Prior service costs (a) $ — $ (55) Other components of net periodic pension and postretirement benefits Actuarial losses (a) 16 57 Other components of net periodic pension and postretirement benefits Tax effect (5) (1) Income tax expense Net of tax 11 1 Total reclassification for the period, net of tax $ 11 $ 1 (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 2022 2021 Amortization of defined pension plan and other benefit plan items: Prior service costs (a) $ — $ (165) Other components of net periodic pension and postretirement benefits Actuarial losses (a) 41 169 Other components of net periodic pension and postretirement benefits Tax effect (11) (2) Income tax expense Net of tax 30 2 Total reclassification for the period, net of tax $ 30 $ 2 (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, 2022 | |
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, 2022 and 2021 (in thousands). Items outside the scope of ASC 606 are noted as such. Three Months Ended September 30, 2022 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 846 $ — $ — $ 846 Other 143 — — 143 Interchange revenue from debit card transactions 1,126 — — 1,126 WMG fee income — 2,403 — 2,403 CFS fee and commission income — — 251 251 Net gains (losses) on sales of OREO 22 — — 22 Net gains on sales of loans (a) 7 — — 7 Loan servicing fees (a) 38 — — 38 Changes in fair value of equity investments (a) (96) — 3 (93) Income from bank-owned life insurance (a) 12 — — 12 Other (a) 319 — (38) 281 Total non-interest income (loss) $ 2,417 $ 2,403 $ 216 $ 5,036 (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, 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 $ 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. Nine Months Ended September 30, 2022 Revenue by Operating Segment: Core Banking WMG Holding Company, CFS, and CRM (b) Total Non-interest income Service charges on deposit accounts Overdraft fees $ 2,246 $ — $ — $ 2,246 Other 543 — — 543 Interchange revenue from debit card transactions 3,462 — — 3,462 WMG fee income — 7,788 — 7,788 CFS fee and commission income — — 775 775 Net gains (losses) on sales of OREO 68 — — 68 Net gains on sales of loans (a) 106 — — 106 Loan servicing fees (a) 115 — — 115 Net gains on sales of securities (a) — — — — Changes in fair value of equity investments (a) (446) — (2) (448) Income from bank-owned life insurance (a) 34 — — 34 Other (a) 1,424 — (95) 1,329 Total non-interest income $ 7,552 $ 7,788 $ 678 $ 16,018 (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 on sales of OREO (18) — — (18) Net gains on sales of loans (a) 884 — — 884 Loan servicing fees (a) 108 — — 108 Net gains on sales of securities (a) — — — — Change in fair value of equity securities (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. |
COMPONENTS OF QUARTERLY AND Y_2
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 2022 2021 2022 2021 Qualified Pension Plan Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 282 271 848 813 Expected return on plan assets (720) (673) (2,141) (2,019) Amortization of unrecognized transition obligation — — — — Amortization of unrecognized prior service cost — — — — Amortization of unrecognized net loss — 38 — 113 Net periodic pension benefit $ (438) $ (364) $ (1,293) $ (1,093) Supplemental Pension Plan Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 8 8 25 24 Expected return on plan assets — — — — Amortization of unrecognized prior service cost — — — — Amortization of unrecognized net loss 6 5 13 15 Net periodic supplemental pension cost $ 14 $ 13 $ 38 $ 39 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ — $ — $ — Interest cost on projected benefit obligation 1 1 3 5 Expected return on plan assets — — — — Amortization of unrecognized prior service cost — (55) — (165) Amortization of unrecognized net loss 10 14 28 41 Net periodic postretirement, medical and life benefit $ 11 $ (40) $ 31 $ (119) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 columns below includes amounts to eliminate transactions between segments (in thousands). Three months ended September 30, 2022 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 20,983 $ — $ 16 $ 20,999 Interest expense 2,009 — — 2,009 Net interest income 18,974 — 16 18,990 Provision for loan losses 1,255 — — 1,255 Net interest income after provision for loan losses 17,719 — 16 17,735 Other non-interest income 2,417 2,403 216 5,036 Other non-interest expenses 12,559 1,715 303 14,577 Income (loss) before income tax expense (benefit) 7,577 688 (71) 8,194 Income tax expense (benefit) 1,590 167 (16) 1,741 Segment net income (loss) $ 5,987 $ 521 $ (55) $ 6,453 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 Legal accruals and settlements — — — — 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 Nine Months Ended September 30, 2022 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 56,965 $ — $ 30 $ 56,995 Interest expense 3,687 — — 3,687 Net interest income 53,278 — 30 53,308 Provision for loan losses (1,634) — — (1,634) Net interest income after provision for loan losses 54,912 — 30 54,942 Other non-interest income 7,552 7,788 678 16,018 Other non-interest expenses 37,316 5,180 1,091 43,587 Income (loss) before income tax expense (benefit) 25,148 2,608 (383) 27,373 Income tax expense (benefit) 5,523 605 (99) 6,029 Segment net income (loss) $ 19,625 $ 2,003 $ (284) $ 21,344 Segment assets $ 2,544,528 $ 2,804 $ 4,090 $ 2,551,422 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 $ 3,126 $ 6,122 $ 2,417,566 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | A summary of restricted stock activity for the three and nine months ended September 30, 2022 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at July 1, 2022 47,607 $43.72 Granted — Vested — Forfeited or cancelled (48) $42.77 Nonvested at September 30, 2022 47,559 Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2022 37,837 $42.99 Granted 12,560 $45.55 Vested (2,109) $42.51 Forfeited or cancelled (729) $40.69 Nonvested at September 30, 2022 47,559 $43.77 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 33 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | |
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Charge offs | $ 277 | $ 234 | $ 1,306 | $ 650 | ||
Provision for loan losses | 1,255 | $ 356 | $ (1,634) | $ (53) | ||
COVID-19 | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Charge offs | $ 1,200 | $ 4,300 | ||||
Provision for loan losses | $ 500 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding, basic (in shares) | 4,692,000 | 4,678,000 | 4,691,000 | 4,683,000 |
Weighted average shares outstanding, diluted (in shares) | 4,692,000 | 4,678,000 | 4,691,000 | 4,683,000 |
Dilutive common stock equivalents (in shares) | 0 | 0 | 0 | 0 |
SECURITIES - Securities Availab
SECURITIES - Securities Available for Sale (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Amortized cost and estimated fair value of securities available for sale | |||
Amortized Cost | $ 743,166,000 | $ 795,409,000 | |
Unrealized Gains | 204,000 | 6,587,000 | |
Unrealized Losses | 103,018,000 | 9,970,000 | |
Estimated Fair Value | 640,352,000 | 792,026,000 | |
Amortized Cost | |||
Within one year | 2,937,000 | ||
After one, but within five years | 103,872,000 | ||
After five, but within ten years | 20,178,000 | ||
After ten years | 470,000 | ||
Total | 127,457,000 | ||
Amortized Cost | 743,166,000 | 795,409,000 | |
Fair Value | |||
Within one year | 2,862,000 | ||
After one, but within five years | 93,767,000 | ||
After five, but within ten years | 19,142,000 | ||
After ten years | 396,000 | ||
Total | 116,167,000 | ||
Total | 640,352,000 | 792,026,000 | |
Proceeds from sales and calls of securities resulting in gains or losses | |||
Proceeds | 0 | $ 0 | |
U.S. Treasury notes and bonds | |||
Amortized cost and estimated fair value of securities available for sale | |||
Amortized Cost | 61,791,000 | 61,084,000 | |
Unrealized Gains | 0 | 27,000 | |
Unrealized Losses | 6,741,000 | 680,000 | |
Estimated Fair Value | 55,050,000 | 60,431,000 | |
Amortized Cost | |||
Amortized Cost | 61,791,000 | 61,084,000 | |
Fair Value | |||
Total | 55,050,000 | 60,431,000 | |
Mortgage-backed securities, residential | |||
Amortized cost and estimated fair value of securities available for sale | |||
Amortized Cost | 530,372,000 | 582,060,000 | |
Unrealized Gains | 0 | 4,032,000 | |
Unrealized Losses | 89,738,000 | 8,731,000 | |
Estimated Fair Value | 440,634,000 | 577,361,000 | |
Amortized Cost | |||
Without single maturity date | 530,372,000 | ||
Amortized Cost | 530,372,000 | 582,060,000 | |
Fair Value | |||
Without single maturity date | 440,634,000 | ||
Total | 440,634,000 | 577,361,000 | |
Obligations of states and political subdivisions | |||
Amortized cost and estimated fair value of securities available for sale | |||
Amortized Cost | 39,916,000 | 40,299,000 | |
Unrealized Gains | 0 | 2,004,000 | |
Unrealized Losses | 3,036,000 | 0 | |
Estimated Fair Value | 36,880,000 | 42,303,000 | |
Amortized Cost | |||
Amortized Cost | 39,916,000 | 40,299,000 | |
Fair Value | |||
Total | 36,880,000 | 42,303,000 | |
Corporate bonds and notes | |||
Amortized cost and estimated fair value of securities available for sale | |||
Amortized Cost | 25,750,000 | 22,750,000 | |
Unrealized Gains | 0 | 180,000 | |
Unrealized Losses | 1,513,000 | 82,000 | |
Estimated Fair Value | 24,237,000 | 22,848,000 | |
Amortized Cost | |||
Amortized Cost | 25,750,000 | 22,750,000 | |
Fair Value | |||
Total | 24,237,000 | 22,848,000 | |
SBA loan pools | |||
Amortized cost and estimated fair value of securities available for sale | |||
Amortized Cost | 85,337,000 | 89,216,000 | |
Unrealized Gains | 204,000 | 344,000 | |
Unrealized Losses | 1,990,000 | 477,000 | |
Estimated Fair Value | 83,551,000 | 89,083,000 | |
Amortized Cost | |||
Without single maturity date | 85,337,000 | ||
Amortized Cost | 85,337,000 | 89,216,000 | |
Fair Value | |||
Without single maturity date | 83,551,000 | ||
Total | $ 83,551,000 | $ 89,083,000 |
SECURITIES - Securities Held to
SECURITIES - Securities Held to Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized cost and estimated fair value of securities held to maturity | ||
Amortized Cost | $ 3,210 | $ 3,790 |
Unrecognized Gains | 0 | 6 |
Unrecognized Losses | 5 | 0 |
Estimated Fair Value | 3,205 | 3,796 |
Amortized Cost | ||
Within one year | 2,204 | |
After one, but within five years | 1,006 | |
After five, but within ten years | 0 | |
After ten years | 0 | |
Total | 3,210 | |
Amortized Cost | 3,210 | 3,790 |
Fair Value | ||
Within one year | 2,199 | |
After one, but within five years | 1,006 | |
After five, but within ten years | 0 | |
After ten years | 0 | |
Total | 3,205 | |
Total | 3,205 | 3,796 |
Obligations of states and political subdivisions | ||
Amortized cost and estimated fair value of securities held to maturity | ||
Amortized Cost | 1,981 | 2,157 |
Unrecognized Gains | 0 | 0 |
Unrecognized Losses | 0 | 0 |
Estimated Fair Value | 1,981 | 2,157 |
Amortized Cost | ||
Amortized Cost | 1,981 | 2,157 |
Fair Value | ||
Total | 1,981 | 2,157 |
Time deposits with other financial institutions | ||
Amortized cost and estimated fair value of securities held to maturity | ||
Amortized Cost | 1,229 | 1,633 |
Unrecognized Gains | 0 | 6 |
Unrecognized Losses | 5 | 0 |
Estimated Fair Value | 1,224 | 1,639 |
Amortized Cost | ||
Amortized Cost | 1,229 | 1,633 |
Fair Value | ||
Total | 1,224 | $ 1,639 |
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, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less than 12 months | $ 228,946 | $ 398,967 |
12 months or longer | 382,163 | 137,808 |
Total | 611,109 | 536,775 |
Unrealized Losses | ||
Less than 12 months | 25,050 | 5,550 |
12 months or longer | 77,968 | 4,420 |
Total | 103,018 | 9,970 |
U.S. Treasury notes and bonds | ||
Fair Value | ||
Less than 12 months | 18,733 | 49,084 |
12 months or longer | 36,317 | 0 |
Total | 55,050 | 49,084 |
Unrealized Losses | ||
Less than 12 months | 2,155 | 680 |
12 months or longer | 4,586 | 0 |
Total | 6,741 | 680 |
Mortgage-backed securities, residential | ||
Fair Value | ||
Less than 12 months | 137,623 | 293,720 |
12 months or longer | 303,011 | 122,050 |
Total | 440,634 | 415,770 |
Unrealized Losses | ||
Less than 12 months | 17,742 | 4,502 |
12 months or longer | 71,996 | 4,229 |
Total | 89,738 | 8,731 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 36,685 | |
12 months or longer | 0 | |
Total | 36,685 | |
Unrealized Losses | ||
Less than 12 months | 3,036 | |
12 months or longer | 0 | |
Total | 3,036 | |
Corporate bonds and notes | ||
Fair Value | ||
Less than 12 months | 9,615 | 4,928 |
12 months or longer | 4,621 | 1,989 |
Total | 14,236 | 6,917 |
Unrealized Losses | ||
Less than 12 months | 1,135 | 72 |
12 months or longer | 378 | 10 |
Total | 1,513 | 82 |
SBA loan pools | ||
Fair Value | ||
Less than 12 months | 26,290 | 51,235 |
12 months or longer | 38,214 | 13,769 |
Total | 64,504 | 65,004 |
Unrealized Losses | ||
Less than 12 months | 982 | 296 |
12 months or longer | 1,008 | 181 |
Total | $ 1,990 | $ 477 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | $ 1,742,755 | $ 1,518,249 |
Interest receivable on loans | 5,128 | 4,133 |
Total recorded investment in loans | 1,747,883 | 1,522,382 |
Commercial and Agricultural | ||
Composition of loan portfolio [Abstract] | ||
Total recorded investment in loans | 262,919 | 258,013 |
Commercial Mortgages | ||
Composition of loan portfolio [Abstract] | ||
Total recorded investment in loans | 944,501 | 804,825 |
Commercial Mortgages | Construction | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 105,330 | 82,204 |
Total recorded investment in loans | 105,664 | 82,435 |
Commercial Mortgages | Commercial mortgages, other | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 836,190 | 720,358 |
Total recorded investment in loans | 838,837 | 722,390 |
Residential Mortgages | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 283,128 | 259,334 |
Total recorded investment in loans | 283,844 | 259,967 |
Consumer Loans | ||
Composition of loan portfolio [Abstract] | ||
Total recorded investment in loans | 256,619 | 199,577 |
Consumer Loans | Home equity lines and loans | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 76,871 | 70,670 |
Total recorded investment in loans | 77,105 | 70,854 |
Consumer Loans | Indirect consumer loans | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 168,214 | 118,569 |
Total recorded investment in loans | 168,531 | 118,855 |
Consumer Loans | Direct consumer loans | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 10,933 | 9,827 |
Total recorded investment in loans | 10,983 | 9,868 |
Commercial and industrial | Commercial and Agricultural | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 262,014 | 256,893 |
Total recorded investment in loans | 262,844 | 257,618 |
Agricultural | Commercial and Agricultural | ||
Composition of loan portfolio [Abstract] | ||
Total loans, net of deferred loan fees and costs | 75 | 394 |
Total recorded investment in loans | $ 75 | $ 395 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for loan losses | $ 0 | $ 0 |
Number of days past due after which a retail loan is rated | 90 days | |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payroll protection program loans | $ 1,400,000 | $ 43,200,000 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Allowance for loan losses, by portfolio segment [Roll Forward] | ||||
Beginning balance | $ 17,485 | $ 20,676 | $ 21,025 | $ 20,924 |
Charge-offs | (277) | (234) | (1,306) | (650) |
Recoveries | 168 | 142 | 546 | 719 |
Net recoveries (charge-offs) | (109) | (92) | (760) | 69 |
Provision | 1,255 | 356 | (1,634) | (53) |
Ending balance | 18,631 | 20,940 | 18,631 | 20,940 |
Commercial and Agricultural | ||||
Allowance for loan losses, by portfolio segment [Roll Forward] | ||||
Beginning balance | 3,564 | 3,628 | 3,591 | 4,493 |
Charge-offs | 0 | 0 | (20) | (25) |
Recoveries | 6 | 8 | 37 | 283 |
Net recoveries (charge-offs) | 6 | 8 | 17 | 258 |
Provision | (55) | (15) | (93) | (1,130) |
Ending balance | 3,515 | 3,621 | 3,515 | 3,621 |
Commercial Mortgages | ||||
Allowance for loan losses, by portfolio segment [Roll Forward] | ||||
Beginning balance | 10,314 | 12,963 | 13,556 | 11,496 |
Charge-offs | 0 | (44) | (687) | (44) |
Recoveries | 1 | 1 | 3 | 2 |
Net recoveries (charge-offs) | 1 | (43) | (684) | (42) |
Provision | 671 | 361 | (1,886) | 1,827 |
Ending balance | 10,986 | 13,281 | 10,986 | 13,281 |
Residential Mortgages | ||||
Allowance for loan losses, by portfolio segment [Roll Forward] | ||||
Beginning balance | 1,714 | 1,791 | 1,803 | 2,079 |
Charge-offs | 0 | 0 | 0 | (71) |
Recoveries | 40 | 0 | 40 | 10 |
Net recoveries (charge-offs) | 40 | 0 | 40 | (61) |
Provision | 42 | 80 | (47) | (147) |
Ending balance | 1,796 | 1,871 | 1,796 | 1,871 |
Consumer Loans | ||||
Allowance for loan losses, by portfolio segment [Roll Forward] | ||||
Beginning balance | 1,893 | 2,294 | 2,075 | 2,856 |
Charge-offs | (277) | (190) | (599) | (510) |
Recoveries | 121 | 133 | 466 | 424 |
Net recoveries (charge-offs) | (156) | (57) | (133) | (86) |
Provision | 597 | (70) | 392 | (603) |
Ending balance | $ 2,334 | $ 2,167 | $ 2,334 | $ 2,167 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowances by Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Allowance for loan losses: | ||||||
Total ending allowance balance | $ 18,631 | $ 17,485 | $ 21,025 | $ 20,940 | $ 20,676 | $ 20,924 |
Loans: | ||||||
Total recorded investment in loans | 1,747,883 | 1,522,382 | ||||
Individually evaluated for impairment | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 1,405 | 3,030 | ||||
Loans: | ||||||
Total recorded investment in loans | 7,889 | 11,647 | ||||
Collectively evaluated for impairment | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 17,226 | 17,995 | ||||
Loans: | ||||||
Total recorded investment in loans | 1,739,994 | 1,510,735 | ||||
Commercial and Agricultural | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 3,515 | 3,564 | 3,591 | 3,621 | 3,628 | 4,493 |
Loans: | ||||||
Total recorded investment in loans | 262,919 | 258,013 | ||||
Commercial and Agricultural | Individually evaluated for impairment | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 1,323 | 1,394 | ||||
Loans: | ||||||
Total recorded investment in loans | 2,531 | 2,427 | ||||
Commercial and Agricultural | Collectively evaluated for impairment | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 2,192 | 2,197 | ||||
Loans: | ||||||
Total recorded investment in loans | 260,388 | 255,586 | ||||
Commercial Mortgages | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 10,986 | 10,314 | 13,556 | 13,281 | 12,963 | 11,496 |
Loans: | ||||||
Total recorded investment in loans | 944,501 | 804,825 | ||||
Commercial Mortgages | Individually evaluated for impairment | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 41 | 1,571 | ||||
Loans: | ||||||
Total recorded investment in loans | 4,313 | 7,967 | ||||
Commercial Mortgages | Collectively evaluated for impairment | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 10,945 | 11,985 | ||||
Loans: | ||||||
Total recorded investment in loans | 940,188 | 796,858 | ||||
Residential Mortgages | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 1,796 | 1,714 | 1,803 | 1,871 | 1,791 | 2,079 |
Loans: | ||||||
Total recorded investment in loans | 283,844 | 259,967 | ||||
Residential Mortgages | Individually evaluated for impairment | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 0 | 0 | ||||
Loans: | ||||||
Total recorded investment in loans | 768 | 938 | ||||
Residential Mortgages | Collectively evaluated for impairment | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 1,796 | 1,803 | ||||
Loans: | ||||||
Total recorded investment in loans | 283,076 | 259,029 | ||||
Consumer Loans | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 2,334 | $ 1,893 | 2,075 | $ 2,167 | $ 2,294 | $ 2,856 |
Loans: | ||||||
Total recorded investment in loans | 256,619 | 199,577 | ||||
Consumer Loans | Individually evaluated for impairment | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 41 | 65 | ||||
Loans: | ||||||
Total recorded investment in loans | 277 | 315 | ||||
Consumer Loans | Collectively evaluated for impairment | ||||||
Allowance for loan losses: | ||||||
Total ending allowance balance | 2,293 | 2,010 | ||||
Loans: | ||||||
Total recorded investment in loans | $ 256,342 | $ 199,262 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Unpaid Principal Balance | |||||
Total | $ 7,915 | $ 7,915 | $ 18,205 | ||
Recorded Investment | |||||
Total | 7,889 | 7,889 | 11,647 | ||
Allowance for Loan Losses Allocated | 1,405 | 1,405 | 3,030 | ||
Average Recorded Investment | |||||
Average recorded investment, total | 7,604 | $ 12,672 | 9,314 | $ 11,464 | |
Interest Income Recognized | |||||
Total | 18 | 55 | 38 | 96 | |
Residential Mortgages | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 777 | 777 | 951 | ||
Recorded Investment | |||||
With no related allowance recorded | 768 | 768 | 938 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 846 | 950 | 890 | 1,034 | |
Interest Income Recognized | |||||
With no related allowance recorded | 9 | 12 | 19 | 29 | |
Construction | Commercial Mortgages | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 12 | 12 | 129 | ||
Recorded Investment | |||||
With no related allowance recorded | 12 | 12 | 130 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 55 | 151 | 88 | 167 | |
Interest Income Recognized | |||||
With no related allowance recorded | 0 | 1 | 0 | 5 | |
Commercial mortgages, other | Commercial Mortgages | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 4,261 | 4,261 | 6,940 | ||
With an allowance recorded | 41 | 41 | 3,550 | ||
Recorded Investment | |||||
With no related allowance recorded | 4,260 | 4,260 | 4,278 | ||
With an allowance recorded | 41 | 41 | 3,559 | ||
Allowance for Loan Losses Allocated | 41 | 41 | 1,571 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 4,150 | 4,665 | 4,171 | 4,743 | |
With an allowance recorded | 42 | 3,644 | 1,563 | 1,905 | |
Interest Income Recognized | |||||
With no related allowance recorded | 7 | 8 | 14 | 23 | |
With an allowance recorded | 0 | 25 | 0 | 25 | |
Home equity lines and loans | Consumer Loans | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 160 | 160 | 185 | ||
With an allowance recorded | 133 | 133 | 146 | ||
Recorded Investment | |||||
With no related allowance recorded | 144 | 144 | 169 | ||
With an allowance recorded | 133 | 133 | 146 | ||
Allowance for Loan Losses Allocated | 41 | 41 | 65 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 149 | 184 | 157 | 299 | |
With an allowance recorded | 134 | 155 | 139 | 160 | |
Interest Income Recognized | |||||
With no related allowance recorded | 0 | 2 | 0 | 5 | |
With an allowance recorded | 0 | 0 | 0 | 0 | |
Commercial and industrial | Commercial and Agricultural | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 570 | 570 | 954 | ||
With an allowance recorded | 1,961 | 1,961 | 5,350 | ||
Recorded Investment | |||||
With no related allowance recorded | 569 | 569 | 948 | ||
With an allowance recorded | 1,962 | 1,962 | 1,479 | ||
Allowance for Loan Losses Allocated | 1,323 | 1,323 | $ 1,394 | ||
Average Recorded Investment | |||||
With no related allowance recorded | 585 | 1,378 | 761 | 1,645 | |
With an allowance recorded | 1,643 | 1,545 | 1,545 | 1,511 | |
Interest Income Recognized | |||||
With no related allowance recorded | 0 | 3 | 0 | 3 | |
With an allowance recorded | $ 2 | $ 4 | $ 5 | $ 6 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Receivables Past Due (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | $ 8,310 | $ 8,114 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 4 |
Total recorded investment in loans | 1,747,883 | 1,522,382 |
30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 3,263 | 2,476 |
60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 723 | 908 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 1,755 | 2,672 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 5,741 | 6,056 |
Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 1,742,142 | 1,516,326 |
Commercial and Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 262,919 | 258,013 |
Commercial Mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 944,501 | 804,825 |
Commercial Mortgages | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 12 | 34 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total recorded investment in loans | 105,664 | 82,435 |
Commercial Mortgages | Construction | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 12 | 0 |
Commercial Mortgages | Construction | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Commercial Mortgages | Construction | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Commercial Mortgages | Construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 12 | 0 |
Commercial Mortgages | Construction | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 105,652 | 82,435 |
Commercial Mortgages | Commercial mortgages, other | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 3,840 | 3,844 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total recorded investment in loans | 838,837 | 722,390 |
Commercial Mortgages | Commercial mortgages, other | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 246 | 24 |
Commercial Mortgages | Commercial mortgages, other | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 17 | 224 |
Commercial Mortgages | Commercial mortgages, other | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 531 | 1,302 |
Commercial Mortgages | Commercial mortgages, other | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 794 | 1,550 |
Commercial Mortgages | Commercial mortgages, other | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 838,043 | 720,840 |
Residential Mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 699 | 1,039 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total recorded investment in loans | 283,844 | 259,967 |
Residential Mortgages | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 1,952 | 580 |
Residential Mortgages | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 316 | 32 |
Residential Mortgages | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 396 | 652 |
Residential Mortgages | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 2,664 | 1,264 |
Residential Mortgages | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 281,180 | 258,703 |
Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 256,619 | 199,577 |
Consumer Loans | Home equity lines and loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 833 | 790 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total recorded investment in loans | 77,105 | 70,854 |
Consumer Loans | Home equity lines and loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 133 | 256 |
Consumer Loans | Home equity lines and loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 159 | 69 |
Consumer Loans | Home equity lines and loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 457 | 424 |
Consumer Loans | Home equity lines and loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 749 | 749 |
Consumer Loans | Home equity lines and loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 76,356 | 70,105 |
Consumer Loans | Indirect consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 565 | 462 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total recorded investment in loans | 168,531 | 118,855 |
Consumer Loans | Indirect consumer loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 905 | 1,179 |
Consumer Loans | Indirect consumer loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 230 | 424 |
Consumer Loans | Indirect consumer loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 270 | 255 |
Consumer Loans | Indirect consumer loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 1,405 | 1,858 |
Consumer Loans | Indirect consumer loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 167,126 | 116,997 |
Consumer Loans | Direct consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1 | 13 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Total recorded investment in loans | 10,983 | 9,868 |
Consumer Loans | Direct consumer loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 3 | 24 |
Consumer Loans | Direct consumer loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 1 | 11 |
Consumer Loans | Direct consumer loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 0 | 13 |
Consumer Loans | Direct consumer loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 4 | 48 |
Consumer Loans | Direct consumer loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 10,979 | 9,820 |
Commercial and industrial | Commercial and Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 2,360 | 1,932 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 4 |
Total recorded investment in loans | 262,844 | 257,618 |
Commercial and industrial | Commercial and Agricultural | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 12 | 413 |
Commercial and industrial | Commercial and Agricultural | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 0 | 148 |
Commercial and industrial | Commercial and Agricultural | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 101 | 26 |
Commercial and industrial | Commercial and Agricultural | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 113 | 587 |
Commercial and industrial | Commercial and Agricultural | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 262,731 | 257,031 |
Agricultural | Commercial and Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 75 | 395 |
Agricultural | Commercial and Agricultural | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Agricultural | Commercial and Agricultural | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Agricultural | Commercial and Agricultural | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Agricultural | Commercial and Agricultural | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Agricultural | Commercial and Agricultural | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total recorded investment in loans | $ 75 | $ 395 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructuring Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) contract loan | Sep. 30, 2021 USD ($) loan contract | Sep. 30, 2022 USD ($) contract loan | Sep. 30, 2021 USD ($) contract loan | Dec. 31, 2021 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing receivable, troubled debt restructuring | $ 5,900,000 | $ 5,900,000 | $ 10,300,000 | ||
Financing receivable, troubled debt restructuring, purchased with credit deterioration, increase | 300,000 | 300,000 | 1,900,000 | ||
Financing receivable, modifications, recorded investment, still accruing | 1,400,000 | 1,400,000 | 5,600,000 | ||
Financing receivable, modifications, recorded investment, nonaccrual status | 4,400,000 | 4,400,000 | 4,700,000 | ||
Additional amounts committed to customers with loans classified as troubled debt restructurings | 0 | 0 | $ 0 | ||
Number of Loans | loan | 2 | 6 | |||
Increase in allowance for loan losses related to troubled debt restructurings | $ 200,000 | $ 1,900,000 | |||
Charge offs | $ 277,000 | $ 234,000 | $ 1,306,000 | $ 650,000 | |
Number of days past due after which a loan is considered to be in payment default | 90 days | ||||
Financing receivable, troubled debt restructuring, subsequent default, number of contracts | contract | 0 | 0 | 0 | 0 | |
Commercial Mortgages | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Charge offs | $ 0 | $ 44,000 | $ 687,000 | $ 44,000 | |
Commercial Mortgages | Commercial mortgages, other | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | loan | 0 | 2 | 0 | 6 | |
Charge offs | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 loan | Sep. 30, 2021 USD ($) loan | Sep. 30, 2022 loan | Sep. 30, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 2 | 6 | ||
Pre-Modification Outstanding Recorded Investment | $ 502 | $ 6,596 | ||
Post-Modification Outstanding Recorded Investment | $ 502 | $ 6,596 | ||
Commercial Mortgages | Commercial mortgages, other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 2 | 0 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 502 | $ 6,596 | ||
Post-Modification Outstanding Recorded Investment | $ 502 | $ 6,596 | ||
Commercial and industrial | Commercial and Agricultural | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | |||
Pre-Modification Outstanding Recorded Investment | $ 0 | |||
Post-Modification Outstanding Recorded Investment | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES - Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | $ 1,747,883 | $ 1,522,382 |
Loans, net and loans held for sale | 1,724,124 | 1,497,224 |
Not Rated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 538,366 | 457,240 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 1,162,863 | 1,006,069 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 32,455 | 33,964 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 13,228 | 22,901 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 971 | 2,208 |
Commercial and Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 262,919 | 258,013 |
Commercial and Agricultural | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 262,844 | 257,618 |
Commercial and Agricultural | Commercial and industrial | Not Rated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Commercial and Agricultural | Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 255,235 | 250,529 |
Commercial and Agricultural | Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 3,366 | 2,892 |
Commercial and Agricultural | Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 3,313 | 3,108 |
Commercial and Agricultural | Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 930 | 1,089 |
Commercial and Agricultural | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 75 | 395 |
Commercial and Agricultural | Agricultural | Not Rated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Commercial and Agricultural | Agricultural | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 75 | 395 |
Commercial and Agricultural | Agricultural | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Commercial and Agricultural | Agricultural | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Commercial and Agricultural | Agricultural | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Commercial Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 944,501 | 804,825 |
Commercial Mortgages | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 105,664 | 82,435 |
Commercial Mortgages | Construction | Not Rated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Commercial Mortgages | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 105,473 | 82,404 |
Commercial Mortgages | Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 179 | 0 |
Commercial Mortgages | Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 12 | 31 |
Commercial Mortgages | Construction | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Commercial Mortgages | Commercial mortgages, other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 838,837 | 722,390 |
Commercial Mortgages | Commercial mortgages, other | Not Rated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Commercial Mortgages | Commercial mortgages, other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 802,080 | 672,741 |
Commercial Mortgages | Commercial mortgages, other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 28,910 | 31,072 |
Commercial Mortgages | Commercial mortgages, other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 7,806 | 17,458 |
Commercial Mortgages | Commercial mortgages, other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 41 | 1,119 |
Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 283,844 | 259,967 |
Loans, net and loans held for sale | 283,844 | 259,967 |
Residential Mortgages | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, net and loans held for sale | 283,145 | 258,928 |
Residential Mortgages | Non-Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, net and loans held for sale | 699 | 1,039 |
Residential Mortgages | Not Rated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 283,145 | 258,928 |
Residential Mortgages | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Residential Mortgages | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Residential Mortgages | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 699 | 1,039 |
Residential Mortgages | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 256,619 | 199,577 |
Consumer Loans | Home equity lines and loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 77,105 | 70,854 |
Loans, net and loans held for sale | 77,105 | 70,854 |
Consumer Loans | Home equity lines and loans | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, net and loans held for sale | 76,272 | 70,064 |
Consumer Loans | Home equity lines and loans | Non-Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, net and loans held for sale | 833 | 790 |
Consumer Loans | Home equity lines and loans | Not Rated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 76,272 | 70,064 |
Consumer Loans | Home equity lines and loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Consumer Loans | Home equity lines and loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Consumer Loans | Home equity lines and loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 833 | 790 |
Consumer Loans | Home equity lines and loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Consumer Loans | Indirect consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 168,531 | 118,855 |
Loans, net and loans held for sale | 168,531 | 118,855 |
Consumer Loans | Indirect consumer loans | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, net and loans held for sale | 167,966 | 118,393 |
Consumer Loans | Indirect consumer loans | Non-Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, net and loans held for sale | 565 | 462 |
Consumer Loans | Indirect consumer loans | Not Rated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 167,966 | 118,393 |
Consumer Loans | Indirect consumer loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Consumer Loans | Indirect consumer loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Consumer Loans | Indirect consumer loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 565 | 462 |
Consumer Loans | Indirect consumer loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Consumer Loans | Direct consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 10,983 | 9,868 |
Consumer Loans | Direct consumer loans | Not Rated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 10,983 | 9,855 |
Consumer Loans | Direct consumer loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Consumer Loans | Direct consumer loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Consumer Loans | Direct consumer loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 13 |
Consumer Loans | Direct consumer loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total recorded investment in loans | 0 | 0 |
Consumer Loans | Other Direct Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, net and loans held for sale | 10,983 | 9,868 |
Consumer Loans | Other Direct Consumer Loans | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, net and loans held for sale | 10,982 | 9,855 |
Consumer Loans | Other Direct Consumer Loans | Non-Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, net and loans held for sale | $ 1 | $ 13 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Financial Assets: | |||||
Total | $ 640,352 | $ 640,352 | $ 792,026 | ||
Other real estate owned: | |||||
Net gains (losses) on sales of OREO | 22 | $ 0 | 68 | $ (18) | |
Recurring | |||||
Financial Assets: | |||||
U.S. Treasury notes and bonds | 55,050 | 55,050 | 60,431 | ||
Mortgage-backed securities, residential | 440,634 | 440,634 | 577,361 | ||
Obligations of states and political subdivisions | 36,880 | 36,880 | 42,303 | ||
Corporate bonds and notes | 24,237 | 24,237 | 22,848 | ||
SBA loan pools | 83,551 | 83,551 | 89,083 | ||
Total | 640,352 | 640,352 | 792,026 | ||
Equity investments, at fair value | 2,184 | 2,184 | 2,404 | ||
Derivative assets | 28,600 | 28,600 | 9,498 | ||
Financial Liabilities: | |||||
Derivative Liabilities | 28,603 | 28,603 | 9,726 | ||
Non-recurring | Other real estate owned: | |||||
Other real estate owned: | |||||
Total other real estate owned, net | 184 | 184 | 143 | ||
Net gains (losses) on sales of OREO | 0 | 0 | |||
Non-recurring | Residential Mortgages | Other real estate owned: | |||||
Other real estate owned: | |||||
Total other real estate owned, net | 124 | 124 | 143 | ||
Net gains (losses) on sales of OREO | 0 | 0 | |||
Non-recurring | Consumer Loans | Other real estate owned: | Home equity lines and loans | |||||
Other real estate owned: | |||||
Total other real estate owned, net | 60 | 60 | |||
Net gains (losses) on sales of OREO | 0 | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | |||||
Financial Assets: | |||||
U.S. Treasury notes and bonds | 55,050 | 55,050 | 60,431 | ||
Mortgage-backed securities, residential | 0 | 0 | 0 | ||
Obligations of states and political subdivisions | 0 | 0 | 0 | ||
Corporate bonds and notes | 0 | 0 | 0 | ||
SBA loan pools | 0 | 0 | 0 | ||
Total | 55,050 | 55,050 | 60,431 | ||
Equity investments, at fair value | 2,184 | 2,184 | 2,404 | ||
Derivative assets | 0 | 0 | 0 | ||
Financial Liabilities: | |||||
Derivative Liabilities | 0 | 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 | 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 | 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 | 0 | |||
Significant Other Observable Inputs (Level 2) | Recurring | |||||
Financial Assets: | |||||
U.S. Treasury notes and bonds | 0 | 0 | 0 | ||
Mortgage-backed securities, residential | 440,634 | 440,634 | 577,361 | ||
Obligations of states and political subdivisions | 36,880 | 36,880 | 42,303 | ||
Corporate bonds and notes | 24,237 | 24,237 | 22,848 | ||
SBA loan pools | 83,551 | 83,551 | 89,083 | ||
Total | 585,302 | 585,302 | 731,595 | ||
Equity investments, at fair value | 0 | 0 | 0 | ||
Derivative assets | 28,600 | 28,600 | 9,498 | ||
Financial Liabilities: | |||||
Derivative Liabilities | 28,603 | 28,603 | 9,726 | ||
Significant Other Observable Inputs (Level 2) | Non-recurring | Other real estate owned: | |||||
Other real estate owned: | |||||
Total other real estate owned, net | 0 | 0 | 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 | 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 | 0 | |||
Significant Unobservable Inputs (Level 3) | Recurring | |||||
Financial Assets: | |||||
U.S. Treasury notes and bonds | 0 | 0 | 0 | ||
Mortgage-backed securities, residential | 0 | 0 | 0 | ||
Obligations of states and political subdivisions | 0 | 0 | 0 | ||
Corporate bonds and notes | 0 | 0 | 0 | ||
SBA loan pools | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Equity investments, at fair value | 0 | 0 | 0 | ||
Derivative assets | 0 | 0 | 0 | ||
Financial Liabilities: | |||||
Derivative Liabilities | 0 | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Non-recurring | Other real estate owned: | |||||
Other real estate owned: | |||||
Total other real estate owned, net | 184 | 184 | 143 | ||
Significant Unobservable Inputs (Level 3) | Non-recurring | Residential Mortgages | Other real estate owned: | |||||
Other real estate owned: | |||||
Total other real estate owned, net | 124 | 124 | $ 143 | ||
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 | $ 60 | $ 60 |
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, 2022 | Dec. 31, 2021 | |
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 184 | $ 143 |
Residential mortgages | Sales comparison | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Assets, fair value disclosure | $ 124 | $ 143 |
Residential mortgages | Sales comparison | Minimum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Fair value inputs, discount to appraised value | 20.80% | 20.80% |
Residential mortgages | Sales comparison | Maximum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Fair value inputs, discount to appraised value | 20.80% | 20.80% |
Residential mortgages | Sales comparison | Weighted Average | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Fair value inputs, discount to appraised value | 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 | $ 60 | |
Home equity lines and loans | Sales comparison | Minimum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Fair value inputs, discount to appraised value | 20.80% | |
Home equity lines and loans | Sales comparison | Maximum | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Fair value inputs, discount to appraised value | 20.80% | |
Home equity lines and loans | Sales comparison | Weighted Average | ||
Information related to Level 3 non-recurring fair value measurement [Abstract] | ||
Fair value inputs, discount to appraised value | 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, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Cash and due from financial institutions | $ 32,262 | $ 17,365 |
Interest-earning deposits in other financial institutions | 10,161 | 9,616 |
Securities available for sale | 640,352 | 792,026 |
Securities held to maturity | 3,210 | 3,790 |
Loans, net and loans held for sale | 1,724,124 | 1,497,224 |
Accrued interest receivable | 5,128 | 4,133 |
Recurring | ||
Financial assets: | ||
Securities available for sale | 640,352 | 792,026 |
Derivative assets | 28,600 | 9,498 |
Deposits [Abstract] | ||
Derivative Liabilities | 28,603 | 9,726 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available for sale | 55,050 | 60,431 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Derivative Liabilities | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available for sale | 585,302 | 731,595 |
Derivative assets | 28,600 | 9,498 |
Deposits [Abstract] | ||
Derivative Liabilities | 28,603 | 9,726 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Derivative Liabilities | 0 | 0 |
Recurring | Carrying Amount | ||
Financial assets: | ||
Cash and due from financial institutions | 32,262 | 17,365 |
Interest-earning deposits in other financial institutions | 10,161 | 9,616 |
Equity investments | 2,677 | 2,964 |
Securities available for sale | 640,352 | 792,026 |
Securities held to maturity | 3,210 | 3,790 |
FHLBNY and FRBNY stock | 3,872 | 4,218 |
Loans, net and loans held for sale | 1,724,124 | 1,497,620 |
Accrued interest receivable | 7,112 | 5,985 |
Derivative assets | 28,600 | 9,498 |
Deposits [Abstract] | ||
Demand, savings, and insured money market accounts | 1,982,676 | 1,959,076 |
Time deposits | 349,864 | 196,357 |
Accrued interest payable | 343 | 210 |
Derivative Liabilities | 28,603 | 9,726 |
Recurring | Estimated Fair Value | ||
Financial assets: | ||
Cash and due from financial institutions | 32,262 | 17,365 |
Interest-earning deposits in other financial institutions | 10,161 | 9,616 |
Equity investments | 2,677 | 2,964 |
Securities available for sale | 640,352 | 792,026 |
Securities held to maturity | 2,938 | 3,796 |
Loans, net and loans held for sale | 1,697,283 | 1,480,967 |
Accrued interest receivable | 7,112 | 5,985 |
Derivative assets | 28,600 | 9,498 |
Deposits [Abstract] | ||
Demand, savings, and insured money market accounts | 1,982,676 | 1,959,076 |
Time deposits | 348,585 | 197,658 |
Accrued interest payable | 343 | 210 |
Derivative Liabilities | 28,603 | 9,726 |
Recurring | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and due from financial institutions | 32,262 | 17,365 |
Interest-earning deposits in other financial institutions | 10,161 | 9,616 |
Equity investments | 2,677 | 2,964 |
Securities available for sale | 55,050 | 60,431 |
Securities held to maturity | 0 | 0 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 0 | 0 |
Accrued interest receivable | 142 | 106 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Demand, savings, and insured money market accounts | 1,982,676 | 1,959,076 |
Time deposits | 0 | 0 |
Accrued interest payable | 28 | 10 |
Derivative Liabilities | 0 | 0 |
Recurring | Estimated Fair Value | 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 | 585,302 | 731,595 |
Securities held to maturity | 957 | 1,639 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 0 | 0 |
Accrued interest receivable | 1,842 | 1,746 |
Derivative assets | 28,600 | 9,498 |
Deposits [Abstract] | ||
Demand, savings, and insured money market accounts | 0 | 0 |
Time deposits | 348,585 | 197,658 |
Accrued interest payable | 315 | 200 |
Derivative Liabilities | 28,603 | 9,726 |
Recurring | Estimated Fair Value | 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 | 1,981 | 2,157 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 1,697,283 | 1,480,967 |
Accrued interest receivable | 5,128 | 4,133 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Demand, savings, and insured money market accounts | 0 | 0 |
Time deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivative Liabilities | $ 0 | $ 0 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease, weighted average remaining lease term (years) | 8 years 9 months 25 days | 8 years 9 months 25 days | ||
Operating lease, weighted average discount rate | 3.35% | 3.35% | ||
Operating lease, rent expense | $ 200,000 | $ 700,000 | ||
Operating lease not yet commenced | $ 0 | $ 0 | ||
Finance lease, weighted average remaining lease term (years) | 10 years 5 months 12 days | 10 years 5 months 12 days | ||
Finance lease, weighted average discount rate | 3.39% | 3.39% | ||
Finance lease not yet commenced | $ 0 | $ 0 | ||
1365 New Scotland Road, Slingerlands, New York | Director | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, rent expense | $ 13,000 | |||
Monthly rent and common area maintenance expense | 4,000 | |||
Rent and common area maintenance expense | 25,000 | 37,000 | ||
2 Rush Street, Schenectady, New York | Director | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, rent expense | $ 25,000 | $ 25,000 | ||
Monthly rent and common area maintenance expense | 8,000 | |||
Rent and common area maintenance expense | $ 76,000 | $ 76,000 |
LEASES - Leased Branch Properti
LEASES - Leased Branch Properties (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 7,234 | $ 7,145 |
Less: accumulated amortization | (588) | (759) |
Less: lease termination | 0 | (313) |
Add: new lease agreement and modifications | 0 | 1,161 |
Operating lease right-of-use assets | $ 6,646 | $ 7,234 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 243 | |
2023 | 992 | |
2024 | 924 | |
2025 | 841 | |
2026 | 845 | |
2027 and thereafter | 4,022 | |
Total minimum lease payments | 7,867 | |
Less: amount representing interest | (1,057) | |
Present value of net minimum lease payments | $ 6,810 | $ 7,378 |
LEASES - Premises and Equipment
LEASES - Premises and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Premises and equipment, net | Premises and equipment, net |
Buildings | $ 5,572 | $ 5,572 |
Less: accumulated depreciation | (2,457) | (2,208) |
Net book value | $ 3,115 | $ 3,364 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payment Obligations Under Finance Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 98 | |
2023 | 391 | |
2024 | 391 | |
2025 | 409 | |
2026 | 425 | |
2027 and thereafter | 2,415 | |
Total minimum lease payments | 4,129 | |
Less: amount representing interest | (735) | |
Present value of net minimum lease payments | $ 3,394 | $ 3,594 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Changes in Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill [Roll Forward] | ||
Beginning of year | $ 21,824 | $ 21,824 |
Acquired goodwill | 0 | 0 |
Ending balance | $ 21,824 | $ 21,824 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Acquired intangible assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Balance Acquired | $ 11,608 | $ 11,608 |
Accumulated Amortization | 11,608 | 11,593 |
Core deposit intangibles | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Balance Acquired | 5,975 | 5,975 |
Accumulated Amortization | 5,975 | 5,974 |
Other customer relationship intangibles | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Balance Acquired | 5,633 | 5,633 |
Accumulated Amortization | $ 5,633 | $ 5,619 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of intangible assets | $ 0 | $ 42,000 | $ 15,000 | $ 232,000 | |
Goodwill impairment charges | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Contractual Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Commitments to make loans | Fixed Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | $ 44,335 | $ 20,772 |
Commitments to make loans | Variable Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 87,929 | 46,558 |
Unused lines of credit | Fixed Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 4,631 | 4,745 |
Unused lines of credit | Variable Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 331,477 | 288,368 |
Standby letters of credit | Fixed Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | 0 | 0 |
Standby letters of credit | Variable Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance sheet risk | $ 17,407 | $ 7,974 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Apr. 30, 2020 | Sep. 30, 2022 | 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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||||
Beginning balance | $ 174,690 | $ 203,977 | $ 211,455 | $ 199,699 |
Other comprehensive income before reclassification | (24,547) | (3,209) | (73,381) | (9,469) |
Amounts reclassified from accumulated other comprehensive income | 11 | 1 | 30 | 2 |
Total other comprehensive loss | (24,536) | (3,208) | (73,351) | (9,467) |
Ending balance | 155,518 | 206,139 | 155,518 | 206,139 |
Total | ||||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||||
Beginning balance | (55,345) | (3,858) | (6,530) | 2,401 |
Total other comprehensive loss | (24,536) | (3,208) | (73,351) | (9,467) |
Ending balance | (79,881) | (7,066) | (79,881) | (7,066) |
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 balance | (51,329) | 2,867 | (2,495) | 9,127 |
Other comprehensive income before reclassification | (24,547) | (3,209) | (73,381) | (9,469) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Total other comprehensive loss | (24,547) | (3,209) | (73,381) | (9,469) |
Ending balance | (75,876) | (342) | (75,876) | (342) |
Defined Benefit and Other Benefit Plans | ||||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||||
Beginning balance | (4,016) | (6,725) | (4,035) | (6,726) |
Other comprehensive income before reclassification | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 11 | 1 | 30 | 2 |
Total other comprehensive loss | 11 | 1 | 30 | 2 |
Ending balance | $ (4,005) | $ (6,724) | $ (4,005) | $ (6,724) |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax effect | $ 1,741 | $ 1,700 | $ 6,029 | $ 5,558 |
Total reclassification for the period, net of tax | 6,453 | 6,646 | 21,344 | 19,971 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassification for the period, net of tax | 11 | 1 | 30 | 2 |
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 | 0 | (55) | 0 | (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 | 16 | 57 | 41 | 169 |
Defined Benefit and Other Benefit Plans | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax effect | (5) | (1) | (11) | (2) |
Total reclassification for the period, net of tax | $ 11 | $ 1 | $ 30 | $ 2 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net gains (losses) on sales of OREO | $ 22 | $ 0 | $ 68 | $ (18) |
Changes in fair value of equity investments | (93) | 15 | (448) | 203 |
Income from bank owned life insurance | 12 | 13 | 34 | 39 |
Other non-interest income | 5,036 | 5,970 | 16,018 | 18,083 |
Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Other non-interest income | 216 | 368 | 678 | 850 |
Overdraft fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 846 | 623 | 2,246 | 1,561 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 143 | 233 | 543 | 744 |
Interchange revenue from debit card transactions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 1,126 | 1,237 | 3,462 | 3,622 |
WMG fee income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 2,403 | 2,765 | 7,788 | 8,246 |
CFS fee and commission income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 251 | 346 | 775 | 796 |
Net gains (losses) on sales of OREO | ||||
Disaggregation of Revenue [Line Items] | ||||
Net gains (losses) on sales of OREO | 22 | 0 | 68 | (18) |
Net gains on sales of loans | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 7 | 242 | 106 | 884 |
Loan servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 38 | 38 | 115 | 108 |
Net gains on sales of securities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | 0 | ||
Income from bank-owned life insurance | ||||
Disaggregation of Revenue [Line Items] | ||||
Income from bank owned life insurance | 12 | 13 | 34 | 39 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 281 | 458 | 1,329 | 1,898 |
Core Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Changes in fair value of equity investments | (96) | (13) | (446) | 117 |
Other non-interest income | 2,417 | 2,837 | 7,552 | 8,987 |
Core Banking | Overdraft fees | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 846 | 623 | 2,246 | 1,561 |
Core Banking | Other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 143 | 233 | 543 | 744 |
Core Banking | Interchange revenue from debit card transactions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 1,126 | 1,237 | 3,462 | 3,622 |
Core Banking | WMG fee income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 0 | 0 | 0 | 0 |
Core Banking | CFS fee and commission income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 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 | 22 | 0 | 68 | (18) |
Core Banking | Net gains on sales of loans | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 7 | 242 | 106 | 884 |
Core Banking | Loan servicing fees | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 38 | 38 | 115 | 108 |
Core Banking | Net gains on sales of securities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | |||
Core Banking | Net gains on sales of securities | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | |||
Core Banking | Income from bank-owned life insurance | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Income from bank owned life insurance | 12 | 13 | 34 | 39 |
Core Banking | Other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 319 | 464 | 1,424 | 1,930 |
WMG | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Changes in fair value of equity investments | 0 | 0 | 0 | 0 |
Other non-interest income | 2,403 | 2,765 | 7,788 | 8,246 |
WMG | Overdraft fees | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 0 | 0 | 0 | 0 |
WMG | Other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 0 | 0 | 0 | 0 |
WMG | Interchange revenue from debit card transactions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 0 | 0 | 0 | 0 |
WMG | WMG fee income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 2,403 | 2,765 | 7,788 | 8,246 |
WMG | CFS fee and commission income | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 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 | Net gains on sales of securities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | |||
WMG | Net gains on sales of securities | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 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 |
Holding Company, CFS, and CRM | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Changes in fair value of equity investments | 3 | 28 | (2) | 86 |
Other non-interest income | 216 | 368 | 678 | 850 |
Holding Company, CFS, and CRM | Overdraft fees | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 0 | 0 | 0 | 0 |
Holding Company, CFS, and CRM | Other | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 0 | 0 | 0 | 0 |
Holding Company, CFS, and CRM | Interchange revenue from debit card transactions | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 0 | 0 | 0 | 0 |
Holding Company, CFS, and CRM | WMG fee income | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 0 | 0 | 0 | 0 |
Holding Company, CFS, and CRM | CFS fee and commission income | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customer | 251 | 346 | 775 | 796 |
Holding Company, CFS, and CRM | 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 |
Holding Company, CFS, and CRM | Net gains on sales of loans | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | 0 | 0 | 0 |
Holding Company, CFS, and CRM | Loan servicing fees | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | 0 | 0 | 0 |
Holding Company, CFS, and CRM | Net gains on sales of securities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | |||
Holding Company, CFS, and CRM | Net gains on sales of securities | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | 0 | |||
Holding Company, CFS, and CRM | Income from bank-owned life insurance | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Income from bank owned life insurance | 0 | 0 | 0 | 0 |
Holding Company, CFS, and CRM | Other | Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue not from contact with customer | $ (38) | $ (6) | $ (95) | $ (32) |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
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 | 282 | 271 | 848 | 813 |
Expected return on plan assets | (720) | (673) | (2,141) | (2,019) |
Amortization of unrecognized transition obligation | 0 | 0 | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 | 0 | 0 |
Amortization of unrecognized net loss | 0 | 38 | 0 | 113 |
Net periodic pension benefit | (438) | (364) | (1,293) | (1,093) |
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 | 8 | 25 | 24 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 | 0 | 0 |
Amortization of unrecognized net loss | 6 | 5 | 13 | 15 |
Net periodic pension benefit | 14 | 13 | 38 | 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 | 1 | 3 | 5 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | (55) | 0 | (165) |
Amortization of unrecognized net loss | 10 | 14 | 28 | 41 |
Net periodic pension benefit | $ 11 | $ (40) | $ 31 | $ (119) |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of primary business segments | 2 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Segment Net Income Loss and Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Reportable segments and reconciliation to consolidated results [Abstract] | |||||
Interest and dividend income | $ 20,999 | $ 17,633 | $ 56,995 | $ 51,318 | |
Interest expense | 2,009 | 801 | 3,687 | 2,621 | |
Net interest income | 18,990 | 16,832 | 53,308 | 48,697 | |
Provision for loan losses | 1,255 | 356 | (1,634) | (53) | |
Net interest income after provision for loan losses | 17,735 | 16,476 | 54,942 | 48,750 | |
Other non-interest income | 5,036 | 5,970 | 16,018 | 18,083 | |
Legal accruals and settlements | 0 | ||||
Other non-interest expenses | 14,100 | ||||
Other non-interest expenses | 14,577 | 14,100 | 43,587 | 41,304 | |
Income (loss) before income tax expense (benefit) | 8,194 | 8,346 | 27,373 | 25,529 | |
Income tax expense (benefit) | 1,741 | 1,700 | 6,029 | 5,558 | |
Segment net income (loss) | 6,453 | 6,646 | 21,344 | 19,971 | |
Segment assets | 2,551,422 | 2,417,566 | 2,551,422 | 2,417,566 | $ 2,418,475 |
Operating Segments | Core Banking | |||||
Reportable segments and reconciliation to consolidated results [Abstract] | |||||
Interest and dividend income | 20,983 | 17,627 | 56,965 | 51,298 | |
Interest expense | 2,009 | 801 | 3,687 | 2,621 | |
Net interest income | 18,974 | 16,826 | 53,278 | 48,677 | |
Provision for loan losses | 1,255 | 356 | (1,634) | (53) | |
Net interest income after provision for loan losses | 17,719 | 16,470 | 54,912 | 48,730 | |
Other non-interest income | 2,417 | 2,837 | 7,552 | 8,987 | |
Legal accruals and settlements | 0 | ||||
Other non-interest expenses | 12,124 | ||||
Other non-interest expenses | 12,559 | 37,316 | 35,401 | ||
Income (loss) before income tax expense (benefit) | 7,577 | 7,183 | 25,148 | 22,316 | |
Income tax expense (benefit) | 1,590 | 1,534 | 5,523 | 4,865 | |
Segment net income (loss) | 5,987 | 5,649 | 19,625 | 17,451 | |
Segment assets | 2,544,528 | 2,408,318 | 2,544,528 | 2,408,318 | |
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 for loan losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 0 | 0 | 0 | 0 | |
Other non-interest income | 2,403 | 2,765 | 7,788 | 8,246 | |
Legal accruals and settlements | 0 | ||||
Other non-interest expenses | 1,651 | ||||
Other non-interest expenses | 1,715 | 5,180 | 4,921 | ||
Income (loss) before income tax expense (benefit) | 688 | 1,114 | 2,608 | 3,325 | |
Income tax expense (benefit) | 167 | 156 | 605 | 735 | |
Segment net income (loss) | 521 | 958 | 2,003 | 2,590 | |
Segment assets | 2,804 | 3,126 | 2,804 | 3,126 | |
Intersegment Eliminations | |||||
Reportable segments and reconciliation to consolidated results [Abstract] | |||||
Interest and dividend income | 16 | 6 | 30 | 20 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income | 16 | 6 | 30 | 20 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 16 | 6 | 30 | 20 | |
Other non-interest income | 216 | 368 | 678 | 850 | |
Legal accruals and settlements | 0 | ||||
Other non-interest expenses | 325 | ||||
Other non-interest expenses | 303 | 1,091 | 982 | ||
Income (loss) before income tax expense (benefit) | (71) | 49 | (383) | (112) | |
Income tax expense (benefit) | (16) | 10 | (99) | (42) | |
Segment net income (loss) | (55) | 39 | (284) | (70) | |
Segment assets | $ 4,090 | $ 6,122 | $ 4,090 | $ 6,122 |
STOCK COMPENSATION - Narrative
STOCK COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of treasury shares reissued to fund stock compensation (in shares) | 12,560 | 13,151 | ||
Vesting period | 1 year | |||
Expenses related to stock based compensation recognized | $ 200 | $ 200 | $ 800 | $ 700 |
Restricted Stock | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Total unrecognized compensation cost related to nonvested shares granted under the Plan | $ 1,300 | $ 1,300 | ||
Weighted-average period for recognition (in years) | 3 years 5 months 19 days | |||
Total fair value of shares vested | $ 99 | $ 156 | ||
2021 Plan | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of shares authorized (in shares) | 170,000 | 170,000 | ||
Trading days period | 30 days |
STOCK COMPENSATION - Restricted
STOCK COMPENSATION - Restricted Stock Activity For Officers And Employees (Details) - Restricted Stock - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | |
Shares | |||
Nonvested, beginning balance (in shares) | 47,607 | 37,837 | |
Granted (in shares) | 0 | 0 | 12,560 |
Vested (in shares) | 0 | (2,109) | |
Forfeited or cancelled (in shares) | (48) | (729) | |
Nonvested, ending balance (in shares) | 47,559 | 47,559 | |
Weighted–Average Grant Date Fair Value | |||
Nonvested, beginning balance (in dollars per share) | $ 43.72 | $ 42.99 | |
Granted (in dollars per share) | 45.55 | ||
Vested (in dollars per share) | 42.51 | ||
Forfeitures or cancelled (in dollars per share) | 42.77 | 40.69 | |
Nonvested, ending balance (in dollars per share) | $ 43.77 | $ 43.77 |