COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 $.01 per share | |
Trading Symbol | CHMG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,752,375 | |
Entity Central Index Key | 0000763563 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and due from financial institutions | $ 22,984 | $ 22,247 |
Interest-earning deposits in other financial institutions | 71,878 | 14,600 |
Total cash and cash equivalents | 94,862 | 36,847 |
Equity investments, at estimated fair value | 3,093 | 3,046 |
Securities available for sale, at estimated fair value (amortized cost of $656,640, at March 31, 2024 and $669,092 at December 31, 2023, net of allowance for credit losses on securities of $0 at March 31, 2024 and December 31, 2023, respectively) | 566,028 | 583,993 |
Securities held to maturity | 785 | 785 |
FHLBNY and FRBNY Stock, at cost | 4,071 | 5,498 |
Loans, net of deferred loan fees | 2,003,610 | 1,972,664 |
Allowance for credit losses | (20,471) | (22,517) |
Loans, net | 1,983,139 | 1,950,147 |
Loans held for sale | 96 | 0 |
Premises and equipment, net | 14,183 | 14,571 |
Operating lease right-of-use assets | 6,018 | 5,648 |
Goodwill | 21,824 | 21,824 |
Bank-owned life insurance | 2,923 | 2,914 |
Interest rate swap assets | 25,806 | 23,942 |
Accrued interest receivable and other assets | 62,062 | 61,314 |
Total assets | 2,784,890 | 2,710,529 |
Deposits: | ||
Non-interest-bearing | 656,330 | 653,166 |
Interest-bearing | 1,824,442 | 1,776,261 |
Total deposits | 2,480,772 | 2,429,427 |
FHLBNY overnight advances | 0 | 31,920 |
FRB term advance | 50,000 | 0 |
Long term finance lease obligation | 2,979 | 3,050 |
Operating lease liabilities | 6,197 | 5,827 |
Dividends payable | 1,473 | 1,469 |
Interest rate swap liabilities | 25,811 | 23,981 |
Accrued interest payable and other liabilities | 20,530 | 19,614 |
Total liabilities | 2,587,762 | 2,515,288 |
Shareholders' equity: | ||
Common stock, $0.01 par value per share, 10,000,000 shares authorized; 5,310,076 issued at March 31, 2024 and December 31, 2023 | 53 | 53 |
Additional paid-in capital | 47,794 | 47,773 |
Retained earnings | 235,506 | 229,930 |
Treasury stock, at cost; 559,226 shares at March 31, 2024 and 572,663 shares at December 31, 2023 | (16,147) | (16,502) |
Accumulated other comprehensive loss | (70,078) | (66,013) |
Total shareholders' equity | 197,128 | 195,241 |
Total liabilities and shareholders' equity | $ 2,784,890 | $ 2,710,529 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Available-for-sale, amortized cost, net | $ 656,640 | $ 669,092 |
Available-for-sale, allowance for credit loss | 0 | 0 |
Securities held to maturity, estimated fair value | 785 | 785 |
Securities held to maturity, allowance for credit loss | $ 0 | $ 0 |
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) | 559,226 | 572,663 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest and dividend income: | ||
Loans, including fees | $ 27,198 | $ 22,289 |
Taxable securities | 3,557 | 3,583 |
Tax exempt securities | 258 | 261 |
Interest-earning deposits | 206 | 97 |
Total interest and dividend income | 31,219 | 26,230 |
Interest expense: | ||
Deposits | 12,145 | 5,387 |
Borrowed funds | 985 | 896 |
Total interest expense | 13,130 | 6,283 |
Net interest income | 18,089 | 19,947 |
Provision (credit) for credit losses | (2,040) | 277 |
Net interest income after provision for credit losses | 20,129 | 19,670 |
Non-interest income: | ||
Changes in fair value of equity investments | 101 | 72 |
Net gains (losses) on sales of loans held for sale | 32 | 5 |
Net gains on sales of other real estate owned | 9 | 10 |
Other | 800 | 682 |
Total non-interest income | 5,657 | 5,423 |
Non-interest expenses: | ||
Salaries and wages | 7,016 | 6,783 |
Pension and other employee benefits | 2,082 | 1,680 |
Other components of net periodic pension and postretirement benefits | (232) | (174) |
Net occupancy | 1,493 | 1,465 |
Furniture and equipment | 398 | 418 |
Data processing | 2,573 | 2,381 |
Professional services | 559 | 440 |
Marketing and advertising | 345 | 332 |
Other real estate owned | 49 | 38 |
FDIC insurance | 577 | 497 |
Loan expense | 255 | 232 |
Other | 1,583 | 1,744 |
Total non-interest expenses | 16,698 | 15,836 |
Income before income tax expense | 9,088 | 9,257 |
Income tax expense | 2,038 | 1,987 |
Net income | $ 7,050 | $ 7,270 |
Weighted average shares outstanding, basic (in shares) | 4,764 | 4,721 |
Weighted average shares outstanding, diluted (in shares) | 4,764 | 4,721 |
Basic earnings per share (in dollars per share) | $ 1.48 | $ 1.54 |
Diluted earnings per share (in dollars per share) | $ 1.48 | $ 1.54 |
WMG fee income | ||
Non-interest income: | ||
Revenues from contracts with customer | $ 2,703 | $ 2,580 |
Service charges on deposit accounts | ||
Non-interest income: | ||
Revenues from contracts with customer | 949 | 941 |
Interchange revenue from debit card transactions | ||
Non-interest income: | ||
Revenues from contracts with customer | $ 1,063 | $ 1,133 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 7,050 | $ 7,270 |
Other comprehensive income (loss): | ||
Unrealized holding gains (losses) on securities available for sale | (5,513) | 7,825 |
Tax effect | (1,443) | 2,050 |
Net of tax amount | (4,070) | 5,775 |
Change in funded status of defined benefit pension plan and other benefit plans: | ||
Reclassification adjustment for amortization of net actuarial loss | 7 | 12 |
Total before tax effect | 7 | 12 |
Tax effect | 2 | 3 |
Net of tax amount | 5 | 9 |
Total other comprehensive income (loss) | (4,065) | 5,784 |
Comprehensive income | $ 2,985 | $ 13,054 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative effect adjustment for the adoption of ASC 326 | [1] | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained Earnings Cumulative effect adjustment for the adoption of ASC 326 | [1] | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance | |
Beginning balance at Dec. 31, 2022 | $ 166,388 | $ (1,076) | $ 165,312 | $ 53 | $ 53 | $ 47,331 | $ 47,331 | $ 211,859 | $ (1,076) | $ 210,783 | $ (17,598) | $ (17,598) | $ (75,257) | $ (75,257) | |||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 7,270 | 7,270 | |||||||||||||||
Other comprehensive loss | 5,784 | 5,784 | |||||||||||||||
Restricted stock awards | 263 | 263 | |||||||||||||||
Restricted stock units for directors' deferred compensation plan | 5 | 5 | |||||||||||||||
Distribution of shares of treasury stock grants for employee restricted stock awards | 0 | (131) | 131 | ||||||||||||||
Cash dividends declared | (1,460) | (1,460) | |||||||||||||||
Distribution of treasury stock for directors' compensation | 96 | (147) | 243 | ||||||||||||||
Repurchase of shares of common stock | (98) | (98) | |||||||||||||||
Sale of shares of treasury stock | [2] | 169 | 66 | 103 | |||||||||||||
Ending balance at Mar. 31, 2023 | 177,341 | 53 | 47,387 | 216,593 | (17,219) | (69,473) | |||||||||||
Beginning balance at Dec. 31, 2023 | 195,241 | 53 | 47,773 | 229,930 | (16,502) | (66,013) | |||||||||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 7,050 | 7,050 | |||||||||||||||
Other comprehensive loss | (4,065) | (4,065) | |||||||||||||||
Restricted stock awards | 308 | 308 | |||||||||||||||
Restricted stock units for directors' deferred compensation plan | 5 | 5 | |||||||||||||||
Distribution of shares of treasury stock grants for employee restricted stock awards | 0 | (132) | 132 | ||||||||||||||
Cash dividends declared | (1,474) | (1,474) | |||||||||||||||
Distribution of treasury stock for directors' compensation | 0 | (217) | 217 | ||||||||||||||
Repurchase of shares of common stock | (82) | (82) | |||||||||||||||
Sale of shares of treasury stock | [2] | 145 | 57 | 88 | |||||||||||||
Ending balance at Mar. 31, 2024 | $ 197,128 | $ 53 | $ 47,794 | $ 235,506 | $ (16,147) | $ (70,078) | |||||||||||
[1]Implementation of ASC 326.[2]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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Distribution of shares of treasury stock for employee restricted stock awards (in shares) | 4,573 | 4,577 |
Cash dividends declared (in dollars per share) | $ 0.31 | $ 0.31 |
Distribution of shares of treasury stock for director restricted stock awards (in shares) | 7,515 | 8,492 |
Treasury stock acquired (in shares) | 1,707 | 2,148 |
Sale of shares of treasury stock (in shares) | 3,056 | 3,554 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 7,050 | $ 7,270 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
(Increases in) Amortization of right-of-use assets | (370) | 199 |
Provision (credit) for credit losses | (2,040) | 277 |
(Gains) on disposal of fixed assets | (27) | 0 |
Depreciation and amortization of fixed assets | 465 | 533 |
Amortization of premiums on securities, net | 510 | 656 |
Gain on sales of loans held for sale, net | (32) | (5) |
Proceeds from sales of loans held for sale | 1,677 | 210 |
Loans originated and held for sale | (1,741) | (205) |
Net change in fair value of equity investments | (101) | (72) |
Proceeds from sales of trading assets | 89 | 0 |
Purchase of equity investments | (35) | (47) |
Decrease (Increase) in other assets and accrued interest receivable | 926 | (132) |
Increase in accrued interest payable | 1,920 | 636 |
Expense related to restricted stock units for directors' deferred compensation plan | 5 | 5 |
Expense related to employee restricted stock awards | 308 | 394 |
Increases in (payments on) operating lease liabilities | 370 | (193) |
Net (gain) loss on interest rate swaps | (34) | 11 |
(Decrease) increase in other liabilities | (997) | 1,159 |
Income from bank owned life insurance | (9) | (10) |
Net cash provided by operating activities | 7,934 | 10,686 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities, calls, and principal paydowns on securities available for sale | 11,942 | 15,901 |
Proceeds from maturities and principal collected on securities held to maturity | 0 | 492 |
Purchases of securities available for sale | 0 | (2,199) |
Purchase of FHLBNY and FRBNY stock | (10,894) | (16,853) |
Redemption of FHLBNY and FRBNY stock | 12,321 | 17,137 |
Proceeds from sales of fixed assets | 31 | 0 |
Purchases of premises and equipment | (81) | (287) |
Net increase in loans | (31,185) | (44,114) |
Net cash used in investing activities | (17,866) | (29,923) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in demand, interest-bearing demand, savings, and insured money market deposits | 34,250 | (44,507) |
Net increase in time deposits | 17,095 | 49,709 |
Net change in FHLB overnight advances | (31,920) | (5,740) |
Payments made on finance leases | (71) | (69) |
Proceeds from FRB advances | 50,000 | 0 |
Purchase of treasury stock | (82) | (98) |
Sale of treasury stock | 145 | 169 |
Cash dividends paid | (1,470) | (1,455) |
Net cash provided by (used in) financing activities | 67,947 | (1,991) |
Net increase (decrease) in cash and cash equivalents | 58,015 | (21,228) |
Cash and cash equivalents, beginning of period | 36,847 | 55,869 |
Cash and cash equivalents, end of period | 94,862 | 34,641 |
Cash paid for: | ||
Interest | 11,210 | 5,647 |
Income taxes | 459 | 431 |
Supplemental disclosure of non-cash activity: | ||
Transfer of loans to other real estate owned | 233 | 0 |
Dividends declared, not yet paid | $ 1,473 | $ 1,460 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
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. Chemung Risk Management, Inc., (CRM), a wholly-owned subsidiary of the Corporation, was a Nevada-based captive insurance company which insured against certain risks unique to the operations of the Corporation and its subsidiaries and for which insurance may not have been currently available or economically feasible in today's insurance marketplace. CRM was dissolved by the Corporation, effective December 6, 2023. 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. 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 2023 Annual Report on Form 10-K for the year ended December 31, 2023. 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 March 2024, the U.S. Securities and Exchange Commission ("SEC") issued SEC Release No. 33-11275, adopting its final rule “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” This rule will require registrants to disclose limited climate-related information in registration statements and annual reports. In April 2024, the SEC voluntarily stayed the implementation of its final rule, pending judicial review. As a smaller reporting company, these disclosure requirements, once issued in the final rule, would apply to the Corporation's filings for the fiscal year beginning January 1, 2027. Accounting Standards Pending Adoption In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements , which modifies the disclosure or presentation requirements of a variety of Topics in the Accounting Standards Codification, in response to SEC Release No. 33-10532, Disclosure Update and Simplifications , issued on August 17, 2018. The SEC identified several disclosure requirements that overlap with U.S. GAAP, but require incremental information to comply with disclosure standards in Regulations S-X and Regulation S-K. ASU 2023-06 codifies specific amendments to align the codification with SEC regulations. The effective date for each amendment is that date on which each disclosure requirement is removed from Regulation S-K or Regulation S-X. The Corporation anticipates that certain amendments will pertain to the Corporation's financial disclosures or presentation, but cannot determine with certainty which amendments are applicable until removal from Regulation S-K or Regulation S-X. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , enhancing disclosure requirements for reportable segments, focusing on significant segment expenses, the identification of a segment's chief decision making officer, and the metrics used by the chief decision making officer in evaluating segment-level operating performance. The ASU is effective for fiscal years beginning after December 15, 2023. The Corporation will begin providing enhanced segment reporting disclosures in accordance with ASU 2023-07 for the fiscal year ending December 31, 2024, and for interim periods thereafter. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which will require public business entities to disclose annually a tabular rate reconciliation, including specific items such as state and local income tax, tax credits, nontaxable or nondeductible items, among others, and a separate disclosure requiring disaggregation of reconciling items as described above which equal or exceed 5% percent of the product of multiplying income from continuing operations by the applicable statutory income tax rate. The ASU is effective for all public business entities for annual periods beginning after December 31, 2024. Use of Analogous Accounting Standards Under U.S. GAAP, there is no specific guidance related to government assistance received by a for-profit entity that is not in the form of a loan, income tax credit, or revenue from a contract with a customer. Therefore, the Corporation must rely upon analogous accounting standards to determine appropriate treatment when such circumstances arise. During 2023, the Corporation accounted for the recognition of the Employee Retention Tax Credit (ERTC) using ASC 958-605, Revenue Recognition for Not-for-Profit entities. ASC 958-10-15-1 specifies that certain Subtopics within ASC 958-605 also apply to business entities. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2024 | |
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 non-forfeitable dividends are considered participating securities for this calculation. Restricted stock awards are grants of participating securities and are considered outstanding at grant date. Earnings per share information is adjusted to present comparative results for stock splits and stock dividends that occur. |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Amortized cost and estimated fair value of securities available for sale are as follows (in thousands): March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value U.S. Treasury notes and bonds $ 59,828 $ — $ 4,666 $ — $ 55,162 Mortgage-backed securities, residential 467,125 7 77,425 — 389,707 Obligations of states and political subdivisions 39,415 — 1,270 — 38,145 Corporate bonds and notes 25,750 — 4,818 — 20,932 SBA loan pools 64,522 57 2,497 — 62,082 Total $ 656,640 $ 64 $ 90,676 $ — $ 566,028 December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value U.S. Treasury notes and bonds $ 59,812 $ — $ 4,480 $ — $ 55,332 Mortgage-backed securities, residential 476,240 6 72,422 — 403,824 Obligations of states and political subdivisions 39,503 — 817 — 38,686 Corporate bonds and notes 25,750 — 5,081 — 20,669 SBA loan pools 67,787 75 2,380 — 65,482 Total $ 669,092 $ 81 $ 85,180 $ — $ 583,993 Amortized cost and estimated fair value of securities held to maturity are as follows (in thousands): March 31, 2024 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Allowance for Credit Losses Obligations of states and political subdivisions $ 785 $ — $ — $ 785 $ — December 31, 2023 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Allowance for Credit Losses Obligations of states and political subdivisions $ 785 $ — $ — $ 785 $ — 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): March 31, 2024 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 8,499 $ 8,297 $ — $ — After one, but within five years 97,948 90,687 145 145 After five, but within ten years 18,076 14,838 640 640 After ten years 470 417 — — 124,993 114,239 785 785 Mortgage-backed securities, residential 467,125 389,707 — — Collateralized mortgage obligations — — — — SBA loan pools 64,522 62,082 — — Total $ 656,640 $ 566,028 $ 785 $ 785 There were no proceeds from sales and calls of securities resulting in gains or losses for the three month periods ended March 31, 2024 and 2023. The following tables summarize the investment securities available for sale with unrealized losses at March 31, 2024 and December 31, 2023 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 March 31, 2024 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ — $ — $ 55,162 $ 4,666 $ 55,162 $ 4,666 Mortgage-backed securities, residential — — 388,878 77,425 388,878 77,425 Obligations of states and political subdivisions 1,154 24 36,991 1,246 38,145 1,270 Corporate bonds and notes — — 20,932 4,818 20,932 4,818 SBA loan pools 1,067 2 54,894 2,495 55,961 2,497 Total temporarily impaired securities $ 2,221 $ 26 $ 556,857 $ 90,650 $ 559,078 $ 90,676 Less than 12 months 12 months or longer Total December 31, 2023 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ — $ — $ 55,332 $ 4,480 $ 55,332 $ 4,480 Mortgage-backed securities, residential — — 402,986 72,422 402,986 72,422 Obligations of states and political subdivisions 17,891 241 20,686 576 38,577 817 Corporate bonds and notes 7,492 2,508 13,177 2,573 20,669 5,081 SBA loan pools 3,914 13 54,468 2,367 58,382 2,380 Total temporarily impaired securities $ 29,297 $ 2,762 $ 546,649 $ 82,418 $ 575,946 $ 85,180 Assessment of Available for Sale Debt Securities for Credit Risk Management assesses the decline in fair value of investment securities on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates both qualitative and quantitative factors to assess whether an impairment exists. The following is a discussion of the credit quality characteristics of portfolio segments carrying material unrealized losses as of March 31, 2024. Obli g ations of U.S. Governmental a g encies and sponsored enterprises : As of March 31, 2024, the majority of the Corporation’s unrealized losses in available for sale investment securities related to mortgage-backed securities, issued by government-sponsored entities and agencies. Declines in fair value are attributable to changes in interest rates and illiquidity, not credit quality. The Corporation does not have the intent, and it is not likely to be required to, sell these securities prior to their anticipated recovery. Because the Corporation considers these obligations to carry zero loss estimates, no allowance for credit losses has been recorded as of March 31, 2024. Corporate bonds and notes : The Corporation's corporate bonds and notes portfolio is comprised of subordinated debt issues of community and regional banks. Management considers the credit quality of these investments on an individual basis. Management reviewed the collectability of these securities, taking into consideration such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, and credit ratings when available, among other pertinent factors. All corporate bond debt securities continue to accrue interest and make payments as expected with no defaults or deferrals on the part of the issuers. Therefore, the Corporation considers the potential credit risk of these issuers to be immaterial, and has not recorded an allowance for credit losses on its corporate bonds and notes portfolio as of March 31, 2024. Equity Method Investments |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2024 | |
Credit Loss [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands): March 31, 2024 December 31, 2023 Commercial and agricultural: Commercial and industrial $ 279,414 $ 264,140 Agricultural 221 256 Commercial mortgages: Construction 141,604 138,887 Commercial mortgages, other 1,004,198 984,038 Residential mortgages 277,246 277,992 Consumer loans: Home equity lines and loans 87,608 87,056 Indirect consumer loans 204,081 210,423 Direct consumer loans 9,238 9,872 Total loans, net of deferred loan fees and costs 2,003,610 1,972,664 Allowance for credit losses (20,471) (22,517) Loans, net $ 1,983,139 $ 1,950,147 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. Accrued interest receivable on loans totaled $8.1 million as of March 31, 2024 and $7.8 million as of December 31, 2023. Accrued interest receivable on loans is included in the Accrued interest receivable and other assets line item on the Corporation's Consolidated Balance Sheets, and is excluded from the amortized cost basis of loans and estimate of the allowance for credit losses, as presented in this Note. The following tables present the activity in the allowance for credit losses by portfolio segment for the three month periods ended March 31, 2024 and March 31, 2023 (in thousands): Three Months Ended March 31, 2024 Allowance for credit losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance, January 1, 2024 $ 5,055 $ 12,026 $ 2,194 $ 3,242 $ 22,517 Charge-offs — — (16) (351) (367) Recoveries 37 1 22 125 185 Net recoveries (charge-offs) 37 1 6 (226) (182) Provision (credit) (1) (576) (1,660) (138) 510 (1,864) Ending balance, March 31, 2024 $ 4,516 $ 10,367 $ 2,062 $ 3,526 $ 20,471 (1) Additional provision related to off-balance sheet exposure was a credit of $176 thousand for the three months ended March 31, 2024. The Corporation performs an annual update to the loss drivers used in modeling its estimate of the allowance for credit losses. Annual updates for the model in 2024 were completed during the three month period ended March 31, 2024. Three Months Ended March 31, 2023 Allowance for credit losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance, January 1, 2023 $ 3,373 $ 11,576 $ 1,845 $ 2,865 $ 19,659 Cumulative effect adjustment for the adoption of ASC 326 909 (695) (16) 176 374 Beginning balance after cumulative effect adjustment 4,282 10,881 1,829 3,041 20,033 Charge-offs (190) — — (193) (383) Recoveries 6 — — 108 114 Net recoveries (charge-offs) (184) — — (85) (269) Provision (credit) (1) (45) 102 63 191 311 Ending balance, March 31, 2023 $ 4,053 $ 10,983 $ 1,892 $ 3,147 $ 20,075 (1) Additional provision related to off-balance sheet exposure was a credit of $34 thousand for the three months ended March 31, 2023. Unfunded Commitments The allowance for credit losses on unfunded commitments is recognized as a liability, and included in the Accrued interest payable and other liabilities line item on the Corporation's Consolidated Balance Sheets, with adjustments to the allowance recognized in the Provision for credit losses on the Consolidated Statements of Income. The Corporation established an allowance for credit losses on unfunded commitments in conjunction with its adoption of ASC 326- Financial Instruments-Credit Losses . The following table presents the activity in the allowance for credit losses on unfunded commitments for the three month periods ended March 31, 2024 and 2023 (in thousands): For the Three Months Ended Allowance for credit losses on unfunded commitments March 31, 2024 March 31, 2023 Beginning balance $ 919 $ — Impact of ASC 326 adoption — 1,082 Provision (credit) for credit losses on unfunded commitments (176) (34) Ending balance $ 743 $ 1,048 The following table presents the provision for credit losses on loans and unfunded commitments for the three month periods ended March 31, 2024 and March 31, 2023 (in thousands): For the Three Months Ended Provision (credit) for credit losses March 31, 2024 March 31, 2023 Provision (credit) for credit losses on loans $ (1,864) $ 311 Provision (credit) for credit losses on unfunded commitments (176) (34) Total provision (credit) for credit losses $ (2,040) $ 277 The following tables present the balance in the allowance for credit losses by portfolio segment, as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Allowance for credit losses Commercial and Commercial Residential Consumer Ending allowance balance attributable to loans: Agricultural Mortgages Mortgages Loans Total Individually analyzed $ 1,663 $ 24 $ — $ — $ 1,687 Collectively analyzed 2,853 10,343 2,062 3,526 18,784 Total ending allowance balance $ 4,516 $ 10,367 $ 2,062 $ 3,526 $ 20,471 December 31, 2023 Allowance for credit losses Commercial and Commercial Residential Consumer Ending allowance balance attributable to loans: Agricultural Mortgages Mortgages Loans Total Individually analyzed $ 1,928 $ 27 $ — $ — $ 1,955 Collectively analyzed 3,127 11,999 2,194 3,242 20,562 Total ending allowance balance $ 5,055 $ 12,026 $ 2,194 $ 3,242 $ 22,517 The following tables present the amortized cost basis of loans by portfolio segment, as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Amortized cost basis of loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Individually analyzed $ 1,746 $ 3,965 $ — $ — $ 5,711 Collectively analyzed 277,889 1,141,837 277,246 300,927 1,997,899 Total ending loans balance $ 279,635 $ 1,145,802 $ 277,246 $ 300,927 $ 2,003,610 December 31, 2023 Amortized cost basis of loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Individually analyzed $ 2,067 $ 5,968 $ — $ — $ 8,035 Collectively analyzed 262,329 1,116,957 277,992 307,351 1,964,629 Total ending loans balance $ 264,396 $ 1,122,925 $ 277,992 $ 307,351 $ 1,972,664 Modifications to Loans Made to Borrowers Experiencing Financial Difficulty Effective January 1, 2023, the Corporation adopted ASU 2022-02, Financial Instruments-Credit Losses (Topic 326)-Troubled Debt Restructurings and Vintage Disclosures . The Corporation may occasionally make modifications to loans where the borrower is considered to be experiencing financial difficulty. Types of modifications considered under ASU 2022-02 include principal reductions, interest rate reductions, term extensions, significant payment delays, or a combination thereof. There were no loan modifications to borrowers experiencing financial difficulty, as considered under the requirements of ASU 2022-02, made during the three month period ended March 31, 2024. The following tables summarize the amortized cost basis of loans modified during the three month period ended March 31, 2023 (in thousands): Three Months Ended March 31, 2023 Loans modified under ASU 2022-02: Principal Reduction Interest Rate Reduction Term Extension Payment Delay Combination Total (%) of Loan Class (1) Commercial mortgages: Commercial mortgages, other $ — $ — $ 277 $ — $ — $ 277 0.03 % (1) Represents the amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class. The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three month period ended March 31, 2023 (in thousands): Three Months Ended March 31, 2023 Effect of loan modifications under ASU 2022-02: Principal Reduction Weighted-average interest rate reduction (%) Weighted-average term extension Weighted-average payment delay Commercial mortgages: Commercial mortgages, other $— —% 60 months 0 The Corporation had no outstanding commitments to lend additional amounts to borrowers for which modifications subject to ASU 2022-02 were made during the three months ended March 31, 2024 and the year-ended December 31, 2023. During the three month period ended March 31, 2024, the Corporation had one loan, a commercial and industrial loan which was given a six month term extension during the three month period ended September 30, 2023, which experienced a payment default within twelve months of modification. There were no loans that defaulted during the three month period ended March 31, 2023 for which modifications were made subsequent to the adoption of ASU 2022-02 on January 1, 2023. The Corporation monitors the performance of loans that have previously been modified under the guidance of ASU 2022-02 in order to gauge the effectiveness of modifications, and to determine the degree to which borrowers continue to demonstrate financial weakness following modification. The following tables present the performance of such loans that have been modified in the twelve month period preceding March 31, 2024 and the three month period preceding March 31, 2023 (in thousands): Twelve Months Ended March 31, 2024 Past Due Status of Modifications under ASU 2022-02: 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ — $ — $ 675 $ 129 $ 804 Consumer loans: Home equity lines and loans — — — 116 116 Total $ — $ — $ 675 $ 245 $ 920 During the three months ended March 31, 2024, a commercial mortgage that was was granted a payment delay during the three months ended June 30, 2023 executed an early payoff. The amortized basis of the loan prior to the payoff was $1.9 million. Three Months Ended March 31, 2023 (1) Past Due Status of Modifications under ASU 2022-02: 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Loans Not Past Due Total Commercial mortgages, other $ — $ — $ — $ 277 $ 277 (1) Represents loans which were modified during the three month period subsequent to the adoption of ASU 2022-02 on January 1, 2023. Collateral Dependent Individually Analyzed Loans As of March 31, 2024, the amortized cost basis of individually analyzed loans totaled $5.7 million, of which $4.2 million were considered collateral dependent. As of December 31, 2023 the amortized basis of individually analyzed loans totaled $8.0 million, of which $6.3 million were considered collateral dependent. For collateral dependent loans where the borrower is experiencing financial difficulty and repayment is likely to be substantially provided through the sale or operation of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. Certain assets held as collateral may be exposed to future deterioration in fair value, particularly due to changes in real estate markets or usage. The Corporation closely monitors trends in real estate values throughout its market area to determine whether collateral values, after appropriate discounting, are likely to be sufficient to extinguish existing borrower indebtedness. The following table presents the amortized cost basis and related allowance for credit loss of individually analyzed loans considered to be collateral dependent as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Amortized Cost Basis Related Allowance Amortized Cost Basis Related Allowance Commercial and agricultural: Commercial and industrial (3) $ 282 $ 200 $ 353 $ 214 Agricultural (3) 2 1 26 26 Commercial mortgages: Construction (1) 2,207 — 2,209 — Commercial mortgages, other (1) (2) (3) 1,757 24 3,759 27 Total $ 4,248 $ 225 $ 6,347 $ 267 (1) Secured by commercial real estate (2) Secured by residential real estate (3) Secured by business assets The following tables present the average amortized cost basis and interest income recognized on loans individually analyzed, by class of loans, for the three month periods ended March 31, 2024 and 2023 (in thousands): Three Months Ended Three Months Ended With no related allowance recorded: Average Amortized Cost Basis Interest Income Recognized (1) Average Amortized Cost Basis Interest Income Recognized (1) Commercial and agricultural: Commercial and industrial $ 49 $ 1 $ 729 $ — Agricultural — — — — Commercial mortgages: Construction 2,208 — — — Commercial mortgages, other 2,733 — 4,053 7 Residential mortgages — — 715 9 Consumer loans: Home equity lines & loans — — 254 — With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,844 3 1,049 2 Agricultural 14 — — — Commercial mortgages: Commercial mortgages, other 25 — 36 — Total $ 6,873 $ 4 $ 6,836 $ 18 (1) Cash basis interest income approximates interest income recognized. The following table presents the amortized cost basis in nonaccrual loans without an associated allocation in the allowance for credit losses, total nonaccrual loans, and loans past due greater than 90 days and still accruing, by class of loan as of March 31, 2024 and December 31, 2023 (in thousands): Nonaccrual with No Allowance for Credit Losses Nonaccrual Loans Past Due 90 Days or More and Still Accruing March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Commercial and agricultural: Commercial and industrial $ 23 $ 76 $ 1,615 $ 1,904 $ 8 $ 10 Agricultural — — 2 26 — — Commercial mortgages: Construction 2,207 2,209 2,207 2,209 — — Commercial mortgages, other 1,734 3,732 1,758 3,760 — — Residential mortgages 1,118 1,315 1,118 1,315 — — Consumer loans: Home equity lines and loans 496 508 496 508 — — Indirect consumer loans 631 687 631 687 — — Direct consumer loans 8 2 8 2 — — Total $ 6,217 $ 8,529 $ 7,835 $ 10,411 $ 8 $ 10 The following tables present the aging of the amortized cost basis of loans as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 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 $ 181 $ 238 $ 683 $ 1,102 $ 278,312 $ 279,414 Agricultural — — — — 221 221 Commercial mortgages: Construction — — 2,207 2,207 139,397 141,604 Commercial mortgages, other 1,012 2,238 175 3,425 1,000,773 1,004,198 Residential mortgages 1,529 594 589 2,712 274,534 277,246 Consumer loans: Home equity lines and loans 612 100 282 994 86,614 87,608 Indirect consumer loans 1,063 379 379 1,821 202,260 204,081 Direct consumer loans 18 20 6 44 9,194 9,238 Total $ 4,415 $ 3,569 $ 4,321 $ 12,305 $ 1,991,305 $ 2,003,610 December 31, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 1,196 $ 31 $ 10 $ 1,237 $ 262,903 $ 264,140 Agricultural — — — — 256 256 Commercial mortgages: Construction 2,164 — 2,207 4,371 134,516 138,887 Commercial mortgages, other 1,022 103 261 1,386 982,652 984,038 Residential mortgages 2,244 201 585 3,030 274,962 277,992 Consumer loans: Home equity lines and loans 461 87 366 914 86,142 87,056 Indirect consumer loans 2,473 501 426 3,400 207,023 210,423 Direct consumer loans 2 20 — 22 9,850 9,872 Total $ 9,562 $ 943 $ 3,855 $ 14,360 $ 1,958,304 $ 1,972,664 Credit Quality Indicators The Corporation establishes a risk rating at origination for all commercial loans. The primary 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, and home equity lines and loans, once a loan is properly approved and closed, the Corporation evaluates credit quality based upon loan repayment. Retail loans that have been modified subject to ASU 2022-02, but are otherwise performing, are assigned a risk rating of Special Mention , as defined below. Retail loans are not rated until they become 90 days past due, or are modified under ASU 2022-02. 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 March 31, 2024, the risk category of the amortized cost basis of loans by class and vintage, as well as gross charge-offs by class and vintage for the period, were as follows (in thousands): Term Loans Amortized Cost by Origination Year Revolving Loans Amortized Cost Revolving Loans Converted to Term Total 2024 2023 2022 2021 2020 Prior Commercial & industrial Pass $ 10,885 $ 39,011 $ 34,108 $ 21,370 $ 12,349 $ 39,698 $ 92,497 $ 1,643 $ 251,561 Special mention — — 9,159 — 4,060 4,586 7,223 453 25,481 Substandard — 89 221 788 83 205 — 176 1,562 Doubtful 24 — — — — 764 22 — 810 Total 10,909 39,100 43,488 22,158 16,492 45,253 99,742 2,272 279,414 Gross charge-offs — — — — — — — — — Agricultural Pass — — 14 143 — — 62 — 219 Special mention — — — — — — — — — Substandard — 2 — — — — — — 2 Doubtful — — — — — — — — — Total — 2 14 143 — — 62 — 221 Gross charge-offs — — — — — — — — — Construction Pass 1,076 48,500 77,995 9,686 — 1,658 482 — 139,397 Special mention — — — — — — — — — Substandard — — — — — 2,207 — — 2,207 Doubtful — — — — — — — — — Total 1,076 48,500 77,995 9,686 — 3,865 482 — 141,604 Gross charge-offs — — — — — — — — — Commercial mortgages Pass 13,784 117,235 258,049 171,090 111,407 296,080 5,127 742 973,514 Special mention — — 2,522 8,092 2,590 8,082 2,001 — 23,287 Substandard — 2,412 1,081 339 1,012 2,432 97 — 7,373 Doubtful — — — — — 24 — — 24 Total 13,784 119,647 261,652 179,521 115,009 306,618 7,225 742 1,004,198 Gross charge-offs — — — — — — — — — Residential mortgages Not rated 4,014 20,000 57,204 59,311 70,050 65,549 — — 276,128 Substandard — — 75 342 247 454 — — 1,118 Total 4,014 20,000 57,279 59,653 70,297 66,003 — — 277,246 Gross charge-offs — — — — — 16 — — 16 Home equity lines and loans Not rated 3,298 12,904 15,846 5,577 3,009 12,494 32,773 1,095 86,996 Special mention — — 116 — — — — — 116 Substandard — — 76 — — 291 86 43 496 Total 3,298 12,904 16,038 5,577 3,009 12,785 32,859 1,138 87,608 Gross charge-offs — — — — — 11 — — 11 Indirect consumer Not rated 11,861 67,401 90,413 20,411 7,652 5,712 — — 203,450 Substandard — 139 208 141 49 94 — — 631 Total 11,861 67,540 90,621 20,552 7,701 5,806 — — 204,081 Gross charge-offs — 104 127 29 24 54 — — 338 Direct consumer Not rated 700 2,622 2,391 607 174 332 2,401 3 9,230 Substandard — — — 5 2 — 1 — 8 Total 700 2,622 2,391 612 176 332 2,402 3 9,238 Gross charge-offs — — — — — — 2 — 2 Total loans $ 45,642 $ 310,315 $ 549,478 $ 297,902 $ 212,684 $ 440,662 $ 142,772 $ 4,155 $ 2,003,610 Total gross charge-offs $ — $ 104 $ 127 $ 29 $ 24 $ 81 $ 2 $ — $ 367 Based on the analyses performed as of December 31, 2023, the risk category of the amortized cost basis of loans by class and vintage, as well as gross charge-offs by class and vintage for the period, were as follows (in thousands): Term Loans Amortized Cost by Origination Year Revolving Loans Amortized Cost Revolving Loans Converted to Term Total 2023 2022 2021 2020 2019 Prior Commercial & industrial Pass $ 41,925 $ 40,564 $ 21,742 $ 13,541 $ 31,233 $ 10,523 $ 77,176 $ 1,662 $ 238,366 Special mention 185 4,608 — 4,020 — 4,690 9,137 482 23,122 Substandard — 24 991 109 23 456 — 161 1,764 Doubtful — — — — — 790 75 23 888 Total 42,110 45,196 22,733 17,670 31,256 16,459 86,388 2,328 264,140 Gross charge-offs — — — — 9 272 — — 281 Agricultural Pass — 15 150 — — — 65 — 230 Special mention — — — — — — — — — Substandard — — — — — — — 26 26 Doubtful — — — — — — — — — Total — 15 150 — — — 65 26 256 Gross charge-offs — — — — — — — — — Construction Pass 46,951 68,483 19,066 — 28 1,669 481 — 136,678 Special mention — — — — — — — — — Substandard — — — — 2,207 2 — — 2,209 Doubtful — — — — — — — — — Total 46,951 68,483 19,066 — 2,235 1,671 481 — 138,887 Gross charge-offs — — — — — — — — — Commercial mortgages Pass 110,864 260,763 161,858 113,198 57,782 244,211 5,197 767 954,640 Special mention — 2,533 8,189 2,609 — 8,642 — — 21,973 Substandard 272 1,107 345 1,022 — 4,555 97 — 7,398 Doubtful — — — — — 27 — — 27 Total 111,136 264,403 170,392 116,829 57,782 257,435 5,294 767 984,038 Gross charge-offs — — — — — — — — — Residential mortgages Not rated 18,653 58,098 60,024 71,369 15,948 52,585 — — 276,677 Substandard — 75 346 — 169 725 — — 1,315 Total 18,653 58,173 60,370 71,369 16,117 53,310 — — 277,992 Gross charge-offs — 32 — — — — — — 32 Home equity lines and loans Not rated 13,552 16,384 5,821 3,134 2,867 10,400 33,275 1,115 86,548 Substandard — 77 — — — 293 25 113 508 Total 13,552 16,461 5,821 3,134 2,867 10,693 33,300 1,228 87,056 Gross charge-offs — — — — — — 6 — 6 Indirect consumer Not rated 72,264 98,008 23,015 9,192 3,870 3,387 — — 209,736 Substandard 119 246 135 48 36 103 — — 687 Total 72,383 98,254 23,150 9,240 3,906 3,490 — — 210,423 Gross charge-offs 184 375 215 121 21 55 — — 971 Direct consumer Not rated 3,005 2,745 785 256 53 324 2,697 5 9,870 Substandard — — — 2 — — — — 2 Total 3,005 2,745 785 258 53 324 2,697 5 9,872 Gross charge-offs 4 15 8 6 — 54 6 — 93 Total loans $ 307,790 $ 553,730 $ 302,467 $ 218,500 $ 114,216 $ 343,382 $ 128,225 $ 4,354 $ 1,972,664 Total gross charge-offs $ 188 $ 422 $ 223 $ 127 $ 30 $ 381 $ 12 $ — $ 1,383 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2024 | |
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). Individually Analyzed Loans : At the time a loan is considered individually analyzed, it is valued at the lower of cost or fair value. Individually analyzed loans carried at fair value have been partially charged-off or receive specific allocations as part of the allowance for credit 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. Individually analyzed loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. OREO : Assets acquired through or in lieu of loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. 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 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 twelve month period prior to a property being placed into OREO. On individually analyzed 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 March 31, 2024 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 $ 55,162 $ 55,162 $ — $ — Mortgage-backed securities, residential 389,707 — 389,707 — Obligations of states and political subdivisions 38,145 — 38,145 — Corporate bonds and notes 20,932 — 13,211 7,721 SBA loan pools 62,082 — 62,082 — Total available for sale securities $ 566,028 $ 55,162 $ 503,145 $ 7,721 Equity investments, at fair value $ 2,600 $ 2,600 $ — $ — Derivative assets $ 25,806 $ — $ 25,806 $ — Financial Liabilities: Derivative liabilities $ 25,811 $ — $ 25,811 $ — There were no transfers between Level 1 and Level 2 during the three month period ended March 31, 2024. Fair Value Measurement at December 31, 2023 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 $ 55,332 $ 55,332 $ — $ — Mortgage-backed securities, residential 403,824 — 403,824 — Obligations of states and political subdivisions 38,686 — 38,686 — Corporate bonds and notes 20,669 — 13,139 7,530 SBA loan pools 65,482 — 65,482 — Total available for sale securities $ 583,993 $ 55,332 $ 521,131 $ 7,530 Equity investments, at fair value $ 2,552 $ 2,552 $ — $ — Derivative assets $ 23,942 $ — $ 23,942 $ — Financial Liabilities: Derivative liabilities $ 23,981 $ — $ 23,981 $ — There were no transfers between Level 1 and Level 2 during the three month period ended March 31, 2023. The Corporation transfers assets and liabilities between Level 2 and Level 3 of the fair value hierarchy when the methodology to obtain fair value changes such that there are either more or fewer unobservable inputs as of the end of the reporting period, compared to the prior reporting period. Illiquidity in new issuances of comparable bonds and the size of issuances may lead to pricing difficulties, particularly for smaller corporate bond issuances and warrant transfer into Level 3 of assets previously measured using Level 2 inputs. The Corporation utilizes a "beginning of reporting period" timing assumption when recognizing transfers between hierarchy levels, consistent with ASC 820-10-50-2. There were no transfers between Level 2 and Level 3 during the three month period ended March 31, 2024. The Corporation transferred its investment in eight corporate subordinated debt issuances from Level 2 to Level 3 during the three month period ended March 31, 2023. The following table presents a reconciliation of assets and liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three months ended March 31, 2024 and March 31, 2023 (in thousands): Corporate bonds and notes: For the Three Months Ended Level 3 Financial Assets March 31, 2024 March 31, 2023 Balance of recurring Level 3 assets as of January 1, $ 7,530 $ — Total gains or losses for the period: — — Included in Other Comprehensive Income 191 (1,289) Transfers into Level 3 — 9,955 Transfers out of Level 3 — Balance of recurring Level 3 assets as of March 31, $ 7,721 $ 8,666 The following table presents quantitative information about recurring Level 3 fair value measurements as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Fair Value Valuation Techniques Unobservable Input Range [Weighted Average] at March 31, 2024 Corporate bonds and notes $ 7,721 Discounted cash flow Market discount rate 12.50% -12.50% [12.50%] December 31, 2023 Fair Value Valuation Techniques Unobservable Input Range [Weighted Average] at December 31, 2023 Corporate bonds and notes $ 7,530 Discounted cash flow Market discount rate 12.50% -12.50% [12.50%] FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts and estimated fair values of other financial instruments, as of March 31, 2024 and December 31, 2023, are as follows (in thousands): March 31, 2024 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value (1) Cash and due from financial institutions $ 22,984 $ 22,984 $ — $ — $ 22,984 Interest-earning deposits in other financial institutions 71,878 71,878 — — 71,878 Equity investments 3,093 3,093 — — 3,093 Securities available for sale 566,028 55,162 503,145 7,721 566,028 Securities held to maturity 785 — — 785 785 FHLBNY and FRBNY stock 4,071 — — — N/A Loans, net and loans held for sale 2,003,706 — — 1,896,266 1,896,266 Derivative assets 25,806 — 25,806 — 25,806 Financial liabilities: Deposits: Demand, savings, and insured money market deposits $ 1,851,412 $ 1,851,412 $ — $ — $ 1,851,412 Time deposits 629,360 — 626,423 — 626,423 FHLBNY overnight advances — — — — — FRB term advances 50,000 — 49,828 — 49,828 Derivative liabilities 25,811 — 25,811 — 25,811 (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, 2023 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value (1) Cash and due from financial institutions $ 22,247 $ 22,247 $ — $ — $ 22,247 Interest-earning deposits in other financial institutions 14,600 14,600 — — 14,600 Equity investments 3,046 3,046 — — 3,046 Securities available for sale 583,993 55,332 521,131 7,530 583,993 Securities held to maturity 785 — — 785 785 FHLBNY and FRBNY stock 5,498 — — — N/A Loans, net and loans held for sale 1,972,664 — — 1,875,390 1,875,390 Derivative assets 23,942 — 23,942 — 23,942 Financial liabilities: Deposits: Demand, savings, and insured money market deposits $ 1,817,162 $ 1,817,162 $ — $ — $ 1,817,162 Time deposits 612,265 — 609,863 — 609,863 FHLBNY overnight advances 31,920 — 31,925 — 31,925 Derivative liabilities 23,981 — 23,981 — 23,981 (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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, the weighted average remaining lease term was 7.56 years with a weighted average discount rate of 3.51%. Rent expense was $0.3 million for the three months ended March 31, 2024. 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 March 31, 2024 and December 31, 2023 consist of the following (in thousands): March 31, 2024 December 31, 2023 Operating lease right-of-use asset $ 5,648 $ 6,449 Less: accumulated amortization (200) (801) Less: lease termination — — Add: new lease agreement and modifications 570 — Operating lease right-of-use-assets, net $ 6,018 $ 5,648 The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2024 (in thousands): Year Amount 2024 $ 717 2025 959 2026 965 2027 977 2028 845 2029 and thereafter 2,590 Total minimum lease payments 7,053 Less: amount representing interest (856) Present value of net minimum lease payments $ 6,197 The Corporation had one operating lease that was signed on October 19, 2023, 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 March 31, 2024, the weighted average remaining lease term was 9.10 years with a weighted average discount rate of 3.42%. The Corporation has included these leases in premises and equipment March 31, 2024 December 31, 2023 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,955) (2,872) Net book value $ 2,617 $ 2,700 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 March 31, 2024 (in thousands): Year Amount 2024 $ 293 2025 409 2026 425 2027 428 2028 428 2029 and thereafter 1,560 Total minimum lease payments 3,543 Less: amount representing interest (564) Present value of net minimum lease payments $ 2,979 As of March 31, 2024, the Corporation had no finance leases that were signed, but had not yet commenced. Related Party Transactions The Bank leases its branch located at 2 Rush Street, Schenectady, New York, under a lease agreement through February, 2033 from a member of the Corporation's Board of Directors with monthly rent and CAM related expenses totaling $9 thousand per m |
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 March 31, 2024, the weighted average remaining lease term was 7.56 years with a weighted average discount rate of 3.51%. Rent expense was $0.3 million for the three months ended March 31, 2024. 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 March 31, 2024 and December 31, 2023 consist of the following (in thousands): March 31, 2024 December 31, 2023 Operating lease right-of-use asset $ 5,648 $ 6,449 Less: accumulated amortization (200) (801) Less: lease termination — — Add: new lease agreement and modifications 570 — Operating lease right-of-use-assets, net $ 6,018 $ 5,648 The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2024 (in thousands): Year Amount 2024 $ 717 2025 959 2026 965 2027 977 2028 845 2029 and thereafter 2,590 Total minimum lease payments 7,053 Less: amount representing interest (856) Present value of net minimum lease payments $ 6,197 The Corporation had one operating lease that was signed on October 19, 2023, 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 March 31, 2024, the weighted average remaining lease term was 9.10 years with a weighted average discount rate of 3.42%. The Corporation has included these leases in premises and equipment March 31, 2024 December 31, 2023 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,955) (2,872) Net book value $ 2,617 $ 2,700 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 March 31, 2024 (in thousands): Year Amount 2024 $ 293 2025 409 2026 425 2027 428 2028 428 2029 and thereafter 1,560 Total minimum lease payments 3,543 Less: amount representing interest (564) Present value of net minimum lease payments $ 2,979 As of March 31, 2024, the Corporation had no finance leases that were signed, but had not yet commenced. Related Party Transactions The Bank leases its branch located at 2 Rush Street, Schenectady, New York, under a lease agreement through February, 2033 from a member of the Corporation's Board of Directors with monthly rent and CAM related expenses totaling $9 thousand per m |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
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 three month periods ended March 31, 2024 and 2023 were as follows (in thousands): 2024 2023 Beginning of year $ 21,824 $ 21,824 Acquired goodwill — — Ending balance March 31, $ 21,824 $ 21,824 The Corporation had no aggregate amortization expense for the three month periods ended March 31, 2024 and 2023. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
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 as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 14,387 $ 61,128 $ 23,809 $ 78,790 Unused lines of credit $ 2,249 $ 327,681 $ 3,387 $ 332,439 Standby letters of credit $ — $ 18,201 $ — $ 11,317 Commitments to make real estate and home equity loans are generally made for periods of sixty days or less. As of March 31, 2024, the fixed rate real estate and home equity commitments to make loans have interest rates ranging from 5.63% to 7.38% and maturities ranging from four years to thirty years. Commitments to fund commercial draw notes are generally made for periods of three months to twenty-four months. As of March 31, 2024, the fixed rate commercial draw commitments have interest rates ranging from 2.79% to 8.17%. Because many commitments and almost all standby letters of credit expire without being funded in whole or in part, the contract amounts are not estimates of future cash flows. Loan commitments and unused lines of credit have off-balance sheet credit risk because only origination fees are recognized on the consolidated balance sheet until commitments are fulfilled or expire. The credit risk amounts are equal to the contractual amounts, assuming the amounts are fully advanced and collateral or other security is of no value. The Corporation does not anticipate losses as a result of these transactions. These commitments also have off-balance sheet interest rate risk in that the interest rate at which these commitments were made may not be at market rates on the date the commitments are fulfilled. In conjunction with the Corporation's adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326 ), an allowance for credit losses on unfunded commitments was established as of January 1, 2023. As of March 31, 2024 and December 31, 2023, the allowance for credit losses on unfunded commitments was $0.7 million and $0.9 million, respectively. In the normal course of business, there are various outstanding claims and legal proceedings involving the Corporation or its subsidiaries. The Corporation believes that it is not a party to any pending legal, arbitration, or regulatory proceedings that could have a material adverse impact on its financial results or liquidity. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2024 | |
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 January 1, 2024 $ (62,800) $ (3,213) $ (66,013) Other comprehensive income before reclassification (4,070) — (4,070) Amounts reclassified from accumulated other comprehensive income — 5 5 Net current period other comprehensive income (loss) (4,070) 5 (4,065) Balance at March 31, 2024 $ (66,870) $ (3,208) $ (70,078) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2023 $ (71,296) $ (3,961) $ (75,257) Other comprehensive income before reclassification 5,775 — 5,775 Amounts reclassified from accumulated other comprehensive income — 9 9 Net current period other comprehensive income 5,775 9 5,784 Balance at March 31, 2023 $ (65,521) $ (3,952) $ (69,473) 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 2024 2023 Amortization of defined pension plan and other benefit plan items: Prior service costs (a) $ — $ — Other components of net periodic pension and postretirement benefits Actuarial losses (a) 7 12 Other components of net periodic pension and postretirement benefits Tax effect (2) (3) Income tax expense Net of tax 5 9 Total reclassification for the period, net of tax $ 5 $ 9 (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 | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 (in thousands). Items outside the scope of ASC 606 are noted as such. Three Months Ended March 31, 2024 Revenue by Operating Segment: Non-interest income Core Banking WMG Holding Company and CFS (b) Total Service charges on deposit accounts Overdraft fees $ 710 $ — $ — $ 710 Other 239 — — 239 Interchange revenue from debit card transactions 1,063 — — 1,063 WMG fee income — 2,703 — 2,703 CFS fee and commission income — — 228 228 Net gains on sales of loans (a) 32 — — 32 Loan servicing fees (a) 36 — — 36 Changes in fair value of equity investments (a) 117 — (16) 101 Income from bank-owned life insurance (a) 9 — — 9 Other (a) 536 — — 536 Total non-interest income (loss) $ 2,742 $ 2,703 $ 212 $ 5,657 (a) Not within scope of ASC 606. (b) The Holding Company, and CFS column above includes amounts to eliminate transactions between segments. Three Months Ended March 31, 2023 Revenue by Operating Segment: Non-interest income Core Banking WMG Holding Company, CFS, and CRM (b)(c) Total Service charges on deposit accounts Overdraft fees $ 714 $ — $ — $ 714 Other 227 — — 227 Interchange revenue from debit card transactions 1,133 — — 1,133 WMG fee income — 2,580 — 2,580 CFS fee and commission income — — 241 241 Net gains on sales of loans (a) 5 — — 5 Loan servicing fees (a) 36 — — 36 Changes in fair value of equity investments (a) 78 — (6) 72 Income from bank-owned life insurance (a) 10 — — 10 Other (a) 448 — (43) 405 Total non-interest income $ 2,651 $ 2,580 $ 192 $ 5,423 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. (c) Chemung Risk Management, Inc. (CRM) was dissolved December 6, 2023. 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 transaction processing services provided to the 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. Net Gains/Losses on Sales of OREO: |
COMPONENTS OF QUARTERLY AND YEA
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Qualified Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 378 396 Expected return on plan assets (629) (596) Amortization of unrecognized transition obligation — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss — 6 Net periodic pension benefit $ (251) $ (194) Supplemental Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 11 12 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 3 2 Net periodic supplemental pension cost $ 14 $ 14 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 1 1 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 4 5 Net periodic postretirement, medical and life benefit $ 5 $ 6 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 Annual Report on Form 10-K, which was filed with the SEC on March 13, 2024. 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 and CFS columns below include amounts to eliminate transactions between segments (in thousands). Three months ended March 31, 2024 Core Banking WMG Holding Company, and CFS Consolidated Totals Interest and dividend income $ 31,211 $ — $ 8 $ 31,219 Interest expense 13,130 — — 13,130 Net interest income 18,081 — 8 18,089 Provision for credit losses (2,040) — — (2,040) Net interest income after provision for credit losses 20,121 — 8 20,129 Other non-interest income 2,742 2,703 212 5,657 Other non-interest expenses 14,539 1,895 264 16,698 Income (loss) before income tax expense (benefit) 8,324 808 (44) 9,088 Income tax expense (benefit) 1,870 182 (14) 2,038 Segment net income (loss) $ 6,454 $ 626 $ (30) $ 7,050 Segment assets $ 2,778,785 $ 2,898 $ 3,207 $ 2,784,890 Three months ended March 31, 2023 Core Banking WMG Holding Company, CFS, and CRM (1) Consolidated Totals Interest and dividend income $ 26,203 $ — $ 27 $ 26,230 Interest expense 6,283 — 6,283 Net interest income 19,920 — 27 19,947 Provision for credit losses 277 — — 277 Net interest income after provision for credit losses 19,643 — 27 19,670 Other non-interest income 2,651 2,580 192 5,423 Other non-interest expenses 13,696 1,798 342 15,836 Income (loss) before income tax expense (benefit) 8,598 782 (123) 9,257 Income tax expense (benefit) 1,831 177 (21) 1,987 Segment net income (loss) $ 6,767 $ 605 $ (102) $ 7,270 Segment assets $ 2,644,158 $ 2,538 $ 1,714 $ 2,654,183 (1) Chemung Risk Management, Inc. (CRM) was dissolved December 6, 2023. |
STOCK COMPENSATION
STOCK COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK COMPENSATION | STOCK COMPENSATION Pursuant to the Corporation's 2021 Equity Incentive Plan (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 closing price of the Corporation's stock on the grant date. During the three months ended March 31, 2024 and 2023, 12,088 and 13,069 shares, respectively, were re-issued from treasury to fund stock compensation. The expense related to these grants is recognized over a one year or a five year vesting period. Total expense related to the 2021 Plan of $0.3 million and $0.4 million was recognized during each of the three month periods ended March 31, 2024 and 2023, respectively. A summary of restricted stock activity for the three months ended March 31, 2024 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2024 62,984 $45.87 Granted 12,088 $48.11 Vested (13,208) $45.86 Forfeited or cancelled — — Nonvested at March 31, 2024 61,864 $46.31 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 7,050 | $ 7,270 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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. |
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. 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 2023 Annual Report on Form 10-K for the year ended December 31, 2023. 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 March 2024, the U.S. Securities and Exchange Commission ("SEC") issued SEC Release No. 33-11275, adopting its final rule “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” This rule will require registrants to disclose limited climate-related information in registration statements and annual reports. In April 2024, the SEC voluntarily stayed the implementation of its final rule, pending judicial review. As a smaller reporting company, these disclosure requirements, once issued in the final rule, would apply to the Corporation's filings for the fiscal year beginning January 1, 2027. Accounting Standards Pending Adoption In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements , which modifies the disclosure or presentation requirements of a variety of Topics in the Accounting Standards Codification, in response to SEC Release No. 33-10532, Disclosure Update and Simplifications , issued on August 17, 2018. The SEC identified several disclosure requirements that overlap with U.S. GAAP, but require incremental information to comply with disclosure standards in Regulations S-X and Regulation S-K. ASU 2023-06 codifies specific amendments to align the codification with SEC regulations. The effective date for each amendment is that date on which each disclosure requirement is removed from Regulation S-K or Regulation S-X. The Corporation anticipates that certain amendments will pertain to the Corporation's financial disclosures or presentation, but cannot determine with certainty which amendments are applicable until removal from Regulation S-K or Regulation S-X. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , enhancing disclosure requirements for reportable segments, focusing on significant segment expenses, the identification of a segment's chief decision making officer, and the metrics used by the chief decision making officer in evaluating segment-level operating performance. The ASU is effective for fiscal years beginning after December 15, 2023. The Corporation will begin providing enhanced segment reporting disclosures in accordance with ASU 2023-07 for the fiscal year ending December 31, 2024, and for interim periods thereafter. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which will require public business entities to disclose annually a tabular rate reconciliation, including specific items such as state and local income tax, tax credits, nontaxable or nondeductible items, among others, and a separate disclosure requiring disaggregation of reconciling items as described above which equal or exceed 5% percent of the product of multiplying income from continuing operations by the applicable statutory income tax rate. The ASU is effective for all public business entities for annual periods beginning after December 31, 2024. Use of Analogous Accounting Standards Under U.S. GAAP, there is no specific guidance related to government assistance received by a for-profit entity that is not in the form of a loan, income tax credit, or revenue from a contract with a customer. Therefore, the Corporation must rely upon analogous accounting standards to determine appropriate treatment when such circumstances arise. During 2023, the Corporation accounted for the recognition of the Employee Retention Tax Credit (ERTC) using ASC 958-605, Revenue Recognition for Not-for-Profit entities. ASC 958-10-15-1 specifies that certain Subtopics within ASC 958-605 also apply to business entities. |
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 non-forfeitable dividends are considered participating securities for this calculation. Restricted stock awards are grants of participating securities and are considered outstanding at grant date. Earnings per share information is adjusted to present comparative results for stock splits and stock dividends that occur. |
Fair Value Measurement | Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Corporation used the following methods and significant assumptions to estimate fair value on a recurring basis: Available for Sale Securities: The fair values of securities available for sale are usually determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or matrix pricing, which is a mathematical technique widely used to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3 inputs). Equity Investments: Securities that are held to fund a deferred compensation plan and securities that have a readily determinable fair market value, are recorded at fair value with changes in fair value included in earnings. The fair values of equity investments are determined by quoted market prices (Level 1 inputs). Individually Analyzed Loans : At the time a loan is considered individually analyzed, it is valued at the lower of cost or fair value. Individually analyzed loans carried at fair value have been partially charged-off or receive specific allocations as part of the allowance for credit 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. Individually analyzed loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. OREO : Assets acquired through or in lieu of loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. 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 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 twelve month period prior to a property being placed into OREO. On individually analyzed 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). |
Revenue | 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 transaction processing services provided to the 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. Net Gains/Losses on Sales of OREO: |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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): March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value U.S. Treasury notes and bonds $ 59,828 $ — $ 4,666 $ — $ 55,162 Mortgage-backed securities, residential 467,125 7 77,425 — 389,707 Obligations of states and political subdivisions 39,415 — 1,270 — 38,145 Corporate bonds and notes 25,750 — 4,818 — 20,932 SBA loan pools 64,522 57 2,497 — 62,082 Total $ 656,640 $ 64 $ 90,676 $ — $ 566,028 December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value U.S. Treasury notes and bonds $ 59,812 $ — $ 4,480 $ — $ 55,332 Mortgage-backed securities, residential 476,240 6 72,422 — 403,824 Obligations of states and political subdivisions 39,503 — 817 — 38,686 Corporate bonds and notes 25,750 — 5,081 — 20,669 SBA loan pools 67,787 75 2,380 — 65,482 Total $ 669,092 $ 81 $ 85,180 $ — $ 583,993 |
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): March 31, 2024 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Allowance for Credit Losses Obligations of states and political subdivisions $ 785 $ — $ — $ 785 $ — December 31, 2023 Amortized Cost Unrecognized Gains Unrecognized Losses Estimated Fair Value Allowance for Credit Losses Obligations of states and political subdivisions $ 785 $ — $ — $ 785 $ — |
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): March 31, 2024 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 8,499 $ 8,297 $ — $ — After one, but within five years 97,948 90,687 145 145 After five, but within ten years 18,076 14,838 640 640 After ten years 470 417 — — 124,993 114,239 785 785 Mortgage-backed securities, residential 467,125 389,707 — — Collateralized mortgage obligations — — — — SBA loan pools 64,522 62,082 — — Total $ 656,640 $ 566,028 $ 785 $ 785 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following tables summarize the investment securities available for sale with unrealized losses at March 31, 2024 and December 31, 2023 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 March 31, 2024 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ — $ — $ 55,162 $ 4,666 $ 55,162 $ 4,666 Mortgage-backed securities, residential — — 388,878 77,425 388,878 77,425 Obligations of states and political subdivisions 1,154 24 36,991 1,246 38,145 1,270 Corporate bonds and notes — — 20,932 4,818 20,932 4,818 SBA loan pools 1,067 2 54,894 2,495 55,961 2,497 Total temporarily impaired securities $ 2,221 $ 26 $ 556,857 $ 90,650 $ 559,078 $ 90,676 Less than 12 months 12 months or longer Total December 31, 2023 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury notes and bonds $ — $ — $ 55,332 $ 4,480 $ 55,332 $ 4,480 Mortgage-backed securities, residential — — 402,986 72,422 402,986 72,422 Obligations of states and political subdivisions 17,891 241 20,686 576 38,577 817 Corporate bonds and notes 7,492 2,508 13,177 2,573 20,669 5,081 SBA loan pools 3,914 13 54,468 2,367 58,382 2,380 Total temporarily impaired securities $ 29,297 $ 2,762 $ 546,649 $ 82,418 $ 575,946 $ 85,180 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Credit Loss [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): March 31, 2024 December 31, 2023 Commercial and agricultural: Commercial and industrial $ 279,414 $ 264,140 Agricultural 221 256 Commercial mortgages: Construction 141,604 138,887 Commercial mortgages, other 1,004,198 984,038 Residential mortgages 277,246 277,992 Consumer loans: Home equity lines and loans 87,608 87,056 Indirect consumer loans 204,081 210,423 Direct consumer loans 9,238 9,872 Total loans, net of deferred loan fees and costs 2,003,610 1,972,664 Allowance for credit losses (20,471) (22,517) Loans, net $ 1,983,139 $ 1,950,147 |
Schedules of Allowance for Credit Loss | The following tables present the activity in the allowance for credit losses by portfolio segment for the three month periods ended March 31, 2024 and March 31, 2023 (in thousands): Three Months Ended March 31, 2024 Allowance for credit losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance, January 1, 2024 $ 5,055 $ 12,026 $ 2,194 $ 3,242 $ 22,517 Charge-offs — — (16) (351) (367) Recoveries 37 1 22 125 185 Net recoveries (charge-offs) 37 1 6 (226) (182) Provision (credit) (1) (576) (1,660) (138) 510 (1,864) Ending balance, March 31, 2024 $ 4,516 $ 10,367 $ 2,062 $ 3,526 $ 20,471 (1) Additional provision related to off-balance sheet exposure was a credit of $176 thousand for the three months ended March 31, 2024. Three Months Ended March 31, 2023 Allowance for credit losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance, January 1, 2023 $ 3,373 $ 11,576 $ 1,845 $ 2,865 $ 19,659 Cumulative effect adjustment for the adoption of ASC 326 909 (695) (16) 176 374 Beginning balance after cumulative effect adjustment 4,282 10,881 1,829 3,041 20,033 Charge-offs (190) — — (193) (383) Recoveries 6 — — 108 114 Net recoveries (charge-offs) (184) — — (85) (269) Provision (credit) (1) (45) 102 63 191 311 Ending balance, March 31, 2023 $ 4,053 $ 10,983 $ 1,892 $ 3,147 $ 20,075 (1) Additional provision related to off-balance sheet exposure was a credit of $34 thousand for the three months ended March 31, 2023. The following table presents the activity in the allowance for credit losses on unfunded commitments for the three month periods ended March 31, 2024 and 2023 (in thousands): For the Three Months Ended Allowance for credit losses on unfunded commitments March 31, 2024 March 31, 2023 Beginning balance $ 919 $ — Impact of ASC 326 adoption — 1,082 Provision (credit) for credit losses on unfunded commitments (176) (34) Ending balance $ 743 $ 1,048 The following table presents the provision for credit losses on loans and unfunded commitments for the three month periods ended March 31, 2024 and March 31, 2023 (in thousands): For the Three Months Ended Provision (credit) for credit losses March 31, 2024 March 31, 2023 Provision (credit) for credit losses on loans $ (1,864) $ 311 Provision (credit) for credit losses on unfunded commitments (176) (34) Total provision (credit) for credit losses $ (2,040) $ 277 The following tables present the balance in the allowance for credit losses by portfolio segment, as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Allowance for credit losses Commercial and Commercial Residential Consumer Ending allowance balance attributable to loans: Agricultural Mortgages Mortgages Loans Total Individually analyzed $ 1,663 $ 24 $ — $ — $ 1,687 Collectively analyzed 2,853 10,343 2,062 3,526 18,784 Total ending allowance balance $ 4,516 $ 10,367 $ 2,062 $ 3,526 $ 20,471 December 31, 2023 Allowance for credit losses Commercial and Commercial Residential Consumer Ending allowance balance attributable to loans: Agricultural Mortgages Mortgages Loans Total Individually analyzed $ 1,928 $ 27 $ — $ — $ 1,955 Collectively analyzed 3,127 11,999 2,194 3,242 20,562 Total ending allowance balance $ 5,055 $ 12,026 $ 2,194 $ 3,242 $ 22,517 The following tables present the amortized cost basis of loans by portfolio segment, as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Amortized cost basis of loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Individually analyzed $ 1,746 $ 3,965 $ — $ — $ 5,711 Collectively analyzed 277,889 1,141,837 277,246 300,927 1,997,899 Total ending loans balance $ 279,635 $ 1,145,802 $ 277,246 $ 300,927 $ 2,003,610 December 31, 2023 Amortized cost basis of loans: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Individually analyzed $ 2,067 $ 5,968 $ — $ — $ 8,035 Collectively analyzed 262,329 1,116,957 277,992 307,351 1,964,629 Total ending loans balance $ 264,396 $ 1,122,925 $ 277,992 $ 307,351 $ 1,972,664 |
Schedule of Financing Receivable, Modified | The following tables summarize the amortized cost basis of loans modified during the three month period ended March 31, 2023 (in thousands): Three Months Ended March 31, 2023 Loans modified under ASU 2022-02: Principal Reduction Interest Rate Reduction Term Extension Payment Delay Combination Total (%) of Loan Class (1) Commercial mortgages: Commercial mortgages, other $ — $ — $ 277 $ — $ — $ 277 0.03 % (1) Represents the amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class. The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three month period ended March 31, 2023 (in thousands): Three Months Ended March 31, 2023 Effect of loan modifications under ASU 2022-02: Principal Reduction Weighted-average interest rate reduction (%) Weighted-average term extension Weighted-average payment delay Commercial mortgages: Commercial mortgages, other $— —% 60 months 0 |
Schedule of Recorded Investment in Past Due and Non-Accrual Status by Class of Loans | The following tables present the performance of such loans that have been modified in the twelve month period preceding March 31, 2024 and the three month period preceding March 31, 2023 (in thousands): Twelve Months Ended March 31, 2024 Past Due Status of Modifications under ASU 2022-02: 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ — $ — $ 675 $ 129 $ 804 Consumer loans: Home equity lines and loans — — — 116 116 Total $ — $ — $ 675 $ 245 $ 920 Three Months Ended March 31, 2023 (1) Past Due Status of Modifications under ASU 2022-02: 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Loans Not Past Due Total Commercial mortgages, other $ — $ — $ — $ 277 $ 277 (1) Represents loans which were modified during the three month period subsequent to the adoption of ASU 2022-02 on January 1, 2023. The following table presents the amortized cost basis in nonaccrual loans without an associated allocation in the allowance for credit losses, total nonaccrual loans, and loans past due greater than 90 days and still accruing, by class of loan as of March 31, 2024 and December 31, 2023 (in thousands): Nonaccrual with No Allowance for Credit Losses Nonaccrual Loans Past Due 90 Days or More and Still Accruing March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Commercial and agricultural: Commercial and industrial $ 23 $ 76 $ 1,615 $ 1,904 $ 8 $ 10 Agricultural — — 2 26 — — Commercial mortgages: Construction 2,207 2,209 2,207 2,209 — — Commercial mortgages, other 1,734 3,732 1,758 3,760 — — Residential mortgages 1,118 1,315 1,118 1,315 — — Consumer loans: Home equity lines and loans 496 508 496 508 — — Indirect consumer loans 631 687 631 687 — — Direct consumer loans 8 2 8 2 — — Total $ 6,217 $ 8,529 $ 7,835 $ 10,411 $ 8 $ 10 The following tables present the aging of the amortized cost basis of loans as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 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 $ 181 $ 238 $ 683 $ 1,102 $ 278,312 $ 279,414 Agricultural — — — — 221 221 Commercial mortgages: Construction — — 2,207 2,207 139,397 141,604 Commercial mortgages, other 1,012 2,238 175 3,425 1,000,773 1,004,198 Residential mortgages 1,529 594 589 2,712 274,534 277,246 Consumer loans: Home equity lines and loans 612 100 282 994 86,614 87,608 Indirect consumer loans 1,063 379 379 1,821 202,260 204,081 Direct consumer loans 18 20 6 44 9,194 9,238 Total $ 4,415 $ 3,569 $ 4,321 $ 12,305 $ 1,991,305 $ 2,003,610 December 31, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 1,196 $ 31 $ 10 $ 1,237 $ 262,903 $ 264,140 Agricultural — — — — 256 256 Commercial mortgages: Construction 2,164 — 2,207 4,371 134,516 138,887 Commercial mortgages, other 1,022 103 261 1,386 982,652 984,038 Residential mortgages 2,244 201 585 3,030 274,962 277,992 Consumer loans: Home equity lines and loans 461 87 366 914 86,142 87,056 Indirect consumer loans 2,473 501 426 3,400 207,023 210,423 Direct consumer loans 2 20 — 22 9,850 9,872 Total $ 9,562 $ 943 $ 3,855 $ 14,360 $ 1,958,304 $ 1,972,664 |
Schedule of Analysis of Collateral Dependent Loans | The following table presents the amortized cost basis and related allowance for credit loss of individually analyzed loans considered to be collateral dependent as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Amortized Cost Basis Related Allowance Amortized Cost Basis Related Allowance Commercial and agricultural: Commercial and industrial (3) $ 282 $ 200 $ 353 $ 214 Agricultural (3) 2 1 26 26 Commercial mortgages: Construction (1) 2,207 — 2,209 — Commercial mortgages, other (1) (2) (3) 1,757 24 3,759 27 Total $ 4,248 $ 225 $ 6,347 $ 267 (1) Secured by commercial real estate (2) Secured by residential real estate (3) |
Schedule of Impaired Financing Receivables | he following tables present the average amortized cost basis and interest income recognized on loans individually analyzed, by class of loans, for the three month periods ended March 31, 2024 and 2023 (in thousands): Three Months Ended Three Months Ended With no related allowance recorded: Average Amortized Cost Basis Interest Income Recognized (1) Average Amortized Cost Basis Interest Income Recognized (1) Commercial and agricultural: Commercial and industrial $ 49 $ 1 $ 729 $ — Agricultural — — — — Commercial mortgages: Construction 2,208 — — — Commercial mortgages, other 2,733 — 4,053 7 Residential mortgages — — 715 9 Consumer loans: Home equity lines & loans — — 254 — With an allowance recorded: Commercial and agricultural: Commercial and industrial 1,844 3 1,049 2 Agricultural 14 — — — Commercial mortgages: Commercial mortgages, other 25 — 36 — Total $ 6,873 $ 4 $ 6,836 $ 18 (1) Cash basis interest income approximates interest income recognized. |
Schedule of Risk Category of the Recorded Investment of Loans by Class of Loans | Based on the analyses performed as of March 31, 2024, the risk category of the amortized cost basis of loans by class and vintage, as well as gross charge-offs by class and vintage for the period, were as follows (in thousands): Term Loans Amortized Cost by Origination Year Revolving Loans Amortized Cost Revolving Loans Converted to Term Total 2024 2023 2022 2021 2020 Prior Commercial & industrial Pass $ 10,885 $ 39,011 $ 34,108 $ 21,370 $ 12,349 $ 39,698 $ 92,497 $ 1,643 $ 251,561 Special mention — — 9,159 — 4,060 4,586 7,223 453 25,481 Substandard — 89 221 788 83 205 — 176 1,562 Doubtful 24 — — — — 764 22 — 810 Total 10,909 39,100 43,488 22,158 16,492 45,253 99,742 2,272 279,414 Gross charge-offs — — — — — — — — — Agricultural Pass — — 14 143 — — 62 — 219 Special mention — — — — — — — — — Substandard — 2 — — — — — — 2 Doubtful — — — — — — — — — Total — 2 14 143 — — 62 — 221 Gross charge-offs — — — — — — — — — Construction Pass 1,076 48,500 77,995 9,686 — 1,658 482 — 139,397 Special mention — — — — — — — — — Substandard — — — — — 2,207 — — 2,207 Doubtful — — — — — — — — — Total 1,076 48,500 77,995 9,686 — 3,865 482 — 141,604 Gross charge-offs — — — — — — — — — Commercial mortgages Pass 13,784 117,235 258,049 171,090 111,407 296,080 5,127 742 973,514 Special mention — — 2,522 8,092 2,590 8,082 2,001 — 23,287 Substandard — 2,412 1,081 339 1,012 2,432 97 — 7,373 Doubtful — — — — — 24 — — 24 Total 13,784 119,647 261,652 179,521 115,009 306,618 7,225 742 1,004,198 Gross charge-offs — — — — — — — — — Residential mortgages Not rated 4,014 20,000 57,204 59,311 70,050 65,549 — — 276,128 Substandard — — 75 342 247 454 — — 1,118 Total 4,014 20,000 57,279 59,653 70,297 66,003 — — 277,246 Gross charge-offs — — — — — 16 — — 16 Home equity lines and loans Not rated 3,298 12,904 15,846 5,577 3,009 12,494 32,773 1,095 86,996 Special mention — — 116 — — — — — 116 Substandard — — 76 — — 291 86 43 496 Total 3,298 12,904 16,038 5,577 3,009 12,785 32,859 1,138 87,608 Gross charge-offs — — — — — 11 — — 11 Indirect consumer Not rated 11,861 67,401 90,413 20,411 7,652 5,712 — — 203,450 Substandard — 139 208 141 49 94 — — 631 Total 11,861 67,540 90,621 20,552 7,701 5,806 — — 204,081 Gross charge-offs — 104 127 29 24 54 — — 338 Direct consumer Not rated 700 2,622 2,391 607 174 332 2,401 3 9,230 Substandard — — — 5 2 — 1 — 8 Total 700 2,622 2,391 612 176 332 2,402 3 9,238 Gross charge-offs — — — — — — 2 — 2 Total loans $ 45,642 $ 310,315 $ 549,478 $ 297,902 $ 212,684 $ 440,662 $ 142,772 $ 4,155 $ 2,003,610 Total gross charge-offs $ — $ 104 $ 127 $ 29 $ 24 $ 81 $ 2 $ — $ 367 Based on the analyses performed as of December 31, 2023, the risk category of the amortized cost basis of loans by class and vintage, as well as gross charge-offs by class and vintage for the period, were as follows (in thousands): Term Loans Amortized Cost by Origination Year Revolving Loans Amortized Cost Revolving Loans Converted to Term Total 2023 2022 2021 2020 2019 Prior Commercial & industrial Pass $ 41,925 $ 40,564 $ 21,742 $ 13,541 $ 31,233 $ 10,523 $ 77,176 $ 1,662 $ 238,366 Special mention 185 4,608 — 4,020 — 4,690 9,137 482 23,122 Substandard — 24 991 109 23 456 — 161 1,764 Doubtful — — — — — 790 75 23 888 Total 42,110 45,196 22,733 17,670 31,256 16,459 86,388 2,328 264,140 Gross charge-offs — — — — 9 272 — — 281 Agricultural Pass — 15 150 — — — 65 — 230 Special mention — — — — — — — — — Substandard — — — — — — — 26 26 Doubtful — — — — — — — — — Total — 15 150 — — — 65 26 256 Gross charge-offs — — — — — — — — — Construction Pass 46,951 68,483 19,066 — 28 1,669 481 — 136,678 Special mention — — — — — — — — — Substandard — — — — 2,207 2 — — 2,209 Doubtful — — — — — — — — — Total 46,951 68,483 19,066 — 2,235 1,671 481 — 138,887 Gross charge-offs — — — — — — — — — Commercial mortgages Pass 110,864 260,763 161,858 113,198 57,782 244,211 5,197 767 954,640 Special mention — 2,533 8,189 2,609 — 8,642 — — 21,973 Substandard 272 1,107 345 1,022 — 4,555 97 — 7,398 Doubtful — — — — — 27 — — 27 Total 111,136 264,403 170,392 116,829 57,782 257,435 5,294 767 984,038 Gross charge-offs — — — — — — — — — Residential mortgages Not rated 18,653 58,098 60,024 71,369 15,948 52,585 — — 276,677 Substandard — 75 346 — 169 725 — — 1,315 Total 18,653 58,173 60,370 71,369 16,117 53,310 — — 277,992 Gross charge-offs — 32 — — — — — — 32 Home equity lines and loans Not rated 13,552 16,384 5,821 3,134 2,867 10,400 33,275 1,115 86,548 Substandard — 77 — — — 293 25 113 508 Total 13,552 16,461 5,821 3,134 2,867 10,693 33,300 1,228 87,056 Gross charge-offs — — — — — — 6 — 6 Indirect consumer Not rated 72,264 98,008 23,015 9,192 3,870 3,387 — — 209,736 Substandard 119 246 135 48 36 103 — — 687 Total 72,383 98,254 23,150 9,240 3,906 3,490 — — 210,423 Gross charge-offs 184 375 215 121 21 55 — — 971 Direct consumer Not rated 3,005 2,745 785 256 53 324 2,697 5 9,870 Substandard — — — 2 — — — — 2 Total 3,005 2,745 785 258 53 324 2,697 5 9,872 Gross charge-offs 4 15 8 6 — 54 6 — 93 Total loans $ 307,790 $ 553,730 $ 302,467 $ 218,500 $ 114,216 $ 343,382 $ 128,225 $ 4,354 $ 1,972,664 Total gross charge-offs $ 188 $ 422 $ 223 $ 127 $ 30 $ 381 $ 12 $ — $ 1,383 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 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 $ 55,162 $ 55,162 $ — $ — Mortgage-backed securities, residential 389,707 — 389,707 — Obligations of states and political subdivisions 38,145 — 38,145 — Corporate bonds and notes 20,932 — 13,211 7,721 SBA loan pools 62,082 — 62,082 — Total available for sale securities $ 566,028 $ 55,162 $ 503,145 $ 7,721 Equity investments, at fair value $ 2,600 $ 2,600 $ — $ — Derivative assets $ 25,806 $ — $ 25,806 $ — Financial Liabilities: Derivative liabilities $ 25,811 $ — $ 25,811 $ — There were no transfers between Level 1 and Level 2 during the three month period ended March 31, 2024. Fair Value Measurement at December 31, 2023 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 $ 55,332 $ 55,332 $ — $ — Mortgage-backed securities, residential 403,824 — 403,824 — Obligations of states and political subdivisions 38,686 — 38,686 — Corporate bonds and notes 20,669 — 13,139 7,530 SBA loan pools 65,482 — 65,482 — Total available for sale securities $ 583,993 $ 55,332 $ 521,131 $ 7,530 Equity investments, at fair value $ 2,552 $ 2,552 $ — $ — Derivative assets $ 23,942 $ — $ 23,942 $ — Financial Liabilities: Derivative liabilities $ 23,981 $ — $ 23,981 $ — |
Information Related To Level 3 Non-Recurring Fair Value Measurement | The following table presents a reconciliation of assets and liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three months ended March 31, 2024 and March 31, 2023 (in thousands): Corporate bonds and notes: For the Three Months Ended Level 3 Financial Assets March 31, 2024 March 31, 2023 Balance of recurring Level 3 assets as of January 1, $ 7,530 $ — Total gains or losses for the period: — — Included in Other Comprehensive Income 191 (1,289) Transfers into Level 3 — 9,955 Transfers out of Level 3 — Balance of recurring Level 3 assets as of March 31, $ 7,721 $ 8,666 The following table presents quantitative information about recurring Level 3 fair value measurements as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Fair Value Valuation Techniques Unobservable Input Range [Weighted Average] at March 31, 2024 Corporate bonds and notes $ 7,721 Discounted cash flow Market discount rate 12.50% -12.50% [12.50%] December 31, 2023 Fair Value Valuation Techniques Unobservable Input Range [Weighted Average] at December 31, 2023 Corporate bonds and notes $ 7,530 Discounted cash flow Market discount rate 12.50% -12.50% [12.50%] |
Schedule of Carrying Value and Estimated Fair Value of Financial Instruments | The carrying amounts and estimated fair values of other financial instruments, as of March 31, 2024 and December 31, 2023, are as follows (in thousands): March 31, 2024 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value (1) Cash and due from financial institutions $ 22,984 $ 22,984 $ — $ — $ 22,984 Interest-earning deposits in other financial institutions 71,878 71,878 — — 71,878 Equity investments 3,093 3,093 — — 3,093 Securities available for sale 566,028 55,162 503,145 7,721 566,028 Securities held to maturity 785 — — 785 785 FHLBNY and FRBNY stock 4,071 — — — N/A Loans, net and loans held for sale 2,003,706 — — 1,896,266 1,896,266 Derivative assets 25,806 — 25,806 — 25,806 Financial liabilities: Deposits: Demand, savings, and insured money market deposits $ 1,851,412 $ 1,851,412 $ — $ — $ 1,851,412 Time deposits 629,360 — 626,423 — 626,423 FHLBNY overnight advances — — — — — FRB term advances 50,000 — 49,828 — 49,828 Derivative liabilities 25,811 — 25,811 — 25,811 (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, 2023 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value (1) Cash and due from financial institutions $ 22,247 $ 22,247 $ — $ — $ 22,247 Interest-earning deposits in other financial institutions 14,600 14,600 — — 14,600 Equity investments 3,046 3,046 — — 3,046 Securities available for sale 583,993 55,332 521,131 7,530 583,993 Securities held to maturity 785 — — 785 785 FHLBNY and FRBNY stock 5,498 — — — N/A Loans, net and loans held for sale 1,972,664 — — 1,875,390 1,875,390 Derivative assets 23,942 — 23,942 — 23,942 Financial liabilities: Deposits: Demand, savings, and insured money market deposits $ 1,817,162 $ 1,817,162 $ — $ — $ 1,817,162 Time deposits 612,265 — 609,863 — 609,863 FHLBNY overnight advances 31,920 — 31,925 — 31,925 Derivative liabilities 23,981 — 23,981 — 23,981 (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) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Leased Branch Properties | Leased branch properties at March 31, 2024 and December 31, 2023 consist of the following (in thousands): March 31, 2024 December 31, 2023 Operating lease right-of-use asset $ 5,648 $ 6,449 Less: accumulated amortization (200) (801) Less: lease termination — — Add: new lease agreement and modifications 570 — Operating lease right-of-use-assets, net $ 6,018 $ 5,648 |
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 March 31, 2024 (in thousands): Year Amount 2024 $ 717 2025 959 2026 965 2027 977 2028 845 2029 and thereafter 2,590 Total minimum lease payments 7,053 Less: amount representing interest (856) Present value of net minimum lease payments $ 6,197 |
Schedule of Leases in Premises and Equipment | The Corporation has included these leases in premises and equipment March 31, 2024 December 31, 2023 Buildings $ 5,572 $ 5,572 Less: accumulated depreciation (2,955) (2,872) Net book value $ 2,617 $ 2,700 |
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 March 31, 2024 (in thousands): Year Amount 2024 $ 293 2025 409 2026 425 2027 428 2028 428 2029 and thereafter 1,560 Total minimum lease payments 3,543 Less: amount representing interest (564) Present value of net minimum lease payments $ 2,979 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The changes in goodwill included in the core banking segment during the three month periods ended March 31, 2024 and 2023 were as follows (in thousands): 2024 2023 Beginning of year $ 21,824 $ 21,824 Acquired goodwill — — Ending balance March 31, $ 21,824 $ 21,824 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 14,387 $ 61,128 $ 23,809 $ 78,790 Unused lines of credit $ 2,249 $ 327,681 $ 3,387 $ 332,439 Standby letters of credit $ — $ 18,201 $ — $ 11,317 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 January 1, 2024 $ (62,800) $ (3,213) $ (66,013) Other comprehensive income before reclassification (4,070) — (4,070) Amounts reclassified from accumulated other comprehensive income — 5 5 Net current period other comprehensive income (loss) (4,070) 5 (4,065) Balance at March 31, 2024 $ (66,870) $ (3,208) $ (70,078) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2023 $ (71,296) $ (3,961) $ (75,257) Other comprehensive income before reclassification 5,775 — 5,775 Amounts reclassified from accumulated other comprehensive income — 9 9 Net current period other comprehensive income 5,775 9 5,784 Balance at March 31, 2023 $ (65,521) $ (3,952) $ (69,473) |
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 2024 2023 Amortization of defined pension plan and other benefit plan items: Prior service costs (a) $ — $ — Other components of net periodic pension and postretirement benefits Actuarial losses (a) 7 12 Other components of net periodic pension and postretirement benefits Tax effect (2) (3) Income tax expense Net of tax 5 9 Total reclassification for the period, net of tax $ 5 $ 9 (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) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 (in thousands). Items outside the scope of ASC 606 are noted as such. Three Months Ended March 31, 2024 Revenue by Operating Segment: Non-interest income Core Banking WMG Holding Company and CFS (b) Total Service charges on deposit accounts Overdraft fees $ 710 $ — $ — $ 710 Other 239 — — 239 Interchange revenue from debit card transactions 1,063 — — 1,063 WMG fee income — 2,703 — 2,703 CFS fee and commission income — — 228 228 Net gains on sales of loans (a) 32 — — 32 Loan servicing fees (a) 36 — — 36 Changes in fair value of equity investments (a) 117 — (16) 101 Income from bank-owned life insurance (a) 9 — — 9 Other (a) 536 — — 536 Total non-interest income (loss) $ 2,742 $ 2,703 $ 212 $ 5,657 (a) Not within scope of ASC 606. (b) The Holding Company, and CFS column above includes amounts to eliminate transactions between segments. Three Months Ended March 31, 2023 Revenue by Operating Segment: Non-interest income Core Banking WMG Holding Company, CFS, and CRM (b)(c) Total Service charges on deposit accounts Overdraft fees $ 714 $ — $ — $ 714 Other 227 — — 227 Interchange revenue from debit card transactions 1,133 — — 1,133 WMG fee income — 2,580 — 2,580 CFS fee and commission income — — 241 241 Net gains on sales of loans (a) 5 — — 5 Loan servicing fees (a) 36 — — 36 Changes in fair value of equity investments (a) 78 — (6) 72 Income from bank-owned life insurance (a) 10 — — 10 Other (a) 448 — (43) 405 Total non-interest income $ 2,651 $ 2,580 $ 192 $ 5,423 (a) Not within scope of ASC 606. (b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments. (c) Chemung Risk Management, Inc. (CRM) was dissolved December 6, 2023. |
COMPONENTS OF QUARTERLY AND Y_2
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Qualified Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 378 396 Expected return on plan assets (629) (596) Amortization of unrecognized transition obligation — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss — 6 Net periodic pension benefit $ (251) $ (194) Supplemental Pension Plan Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 11 12 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 3 2 Net periodic supplemental pension cost $ 14 $ 14 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ — Interest cost on projected benefit obligation 1 1 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 4 5 Net periodic postretirement, medical and life benefit $ 5 $ 6 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Summarized Financial Information Showing Reconciliation of Segment Net Income Loss and Assets to Consolidated Results | The Holding Company and CFS columns below include amounts to eliminate transactions between segments (in thousands). Three months ended March 31, 2024 Core Banking WMG Holding Company, and CFS Consolidated Totals Interest and dividend income $ 31,211 $ — $ 8 $ 31,219 Interest expense 13,130 — — 13,130 Net interest income 18,081 — 8 18,089 Provision for credit losses (2,040) — — (2,040) Net interest income after provision for credit losses 20,121 — 8 20,129 Other non-interest income 2,742 2,703 212 5,657 Other non-interest expenses 14,539 1,895 264 16,698 Income (loss) before income tax expense (benefit) 8,324 808 (44) 9,088 Income tax expense (benefit) 1,870 182 (14) 2,038 Segment net income (loss) $ 6,454 $ 626 $ (30) $ 7,050 Segment assets $ 2,778,785 $ 2,898 $ 3,207 $ 2,784,890 Three months ended March 31, 2023 Core Banking WMG Holding Company, CFS, and CRM (1) Consolidated Totals Interest and dividend income $ 26,203 $ — $ 27 $ 26,230 Interest expense 6,283 — 6,283 Net interest income 19,920 — 27 19,947 Provision for credit losses 277 — — 277 Net interest income after provision for credit losses 19,643 — 27 19,670 Other non-interest income 2,651 2,580 192 5,423 Other non-interest expenses 13,696 1,798 342 15,836 Income (loss) before income tax expense (benefit) 8,598 782 (123) 9,257 Income tax expense (benefit) 1,831 177 (21) 1,987 Segment net income (loss) $ 6,767 $ 605 $ (102) $ 7,270 Segment assets $ 2,644,158 $ 2,538 $ 1,714 $ 2,654,183 (1) Chemung Risk Management, Inc. (CRM) was dissolved December 6, 2023. |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | A summary of restricted stock activity for the three months ended March 31, 2024 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2024 62,984 $45.87 Granted 12,088 $48.11 Vested (13,208) $45.86 Forfeited or cancelled — — Nonvested at March 31, 2024 61,864 $46.31 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Weighted average shares outstanding, basic (in shares) | 4,764,000 | 4,721,000 |
Weighted average shares outstanding, diluted (in shares) | 4,764,000 | 4,721,000 |
Dilutive common stock equivalents (in shares) | 0 | 0 |
SECURITIES - Securities Availab
SECURITIES - Securities Available for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized cost and estimated fair value of debt securities available-for-sale | ||
Amortized Cost | $ 656,640 | $ 669,092 |
Gross Unrealized Gains | 64 | 81 |
Gross Unrealized Losses | 90,676 | 85,180 |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 566,028 | 583,993 |
Amortized Cost | ||
Within one year | 8,499 | |
After one, but within five years | 97,948 | |
After five, but within ten years | 18,076 | |
After ten years | 470 | |
Total | 124,993 | |
Total | 656,640 | 669,092 |
Fair Value | ||
Within one year | 8,297 | |
After one, but within five years | 90,687 | |
After five, but within ten years | 14,838 | |
After ten years | 417 | |
Total | 114,239 | |
Total | 566,028 | 583,993 |
U.S. Treasury notes and bonds | ||
Amortized cost and estimated fair value of debt securities available-for-sale | ||
Amortized Cost | 59,828 | 59,812 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 4,666 | 4,480 |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 55,162 | 55,332 |
Amortized Cost | ||
Total | 59,828 | 59,812 |
Fair Value | ||
Total | 55,162 | 55,332 |
Mortgage-backed securities, residential | ||
Amortized cost and estimated fair value of debt securities available-for-sale | ||
Amortized Cost | 467,125 | 476,240 |
Gross Unrealized Gains | 7 | 6 |
Gross Unrealized Losses | 77,425 | 72,422 |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 389,707 | 403,824 |
Amortized Cost | ||
Without single maturity date | 467,125 | |
Total | 467,125 | 476,240 |
Fair Value | ||
Without single maturity date | 389,707 | |
Total | 389,707 | 403,824 |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Obligations of states and political subdivisions | ||
Amortized cost and estimated fair value of debt securities available-for-sale | ||
Amortized Cost | 39,415 | 39,503 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,270 | 817 |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 38,145 | 38,686 |
Amortized Cost | ||
Total | 39,415 | 39,503 |
Fair Value | ||
Total | 38,145 | 38,686 |
Corporate bonds and notes | ||
Amortized cost and estimated fair value of debt securities available-for-sale | ||
Amortized Cost | 25,750 | 25,750 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 4,818 | 5,081 |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 20,932 | 20,669 |
Amortized Cost | ||
Total | 25,750 | 25,750 |
Fair Value | ||
Total | 20,932 | 20,669 |
SBA loan pools | ||
Amortized cost and estimated fair value of debt securities available-for-sale | ||
Amortized Cost | 64,522 | 67,787 |
Gross Unrealized Gains | 57 | 75 |
Gross Unrealized Losses | 2,497 | 2,380 |
Allowance for Credit Losses | 0 | 0 |
Estimated Fair Value | 62,082 | 65,482 |
Amortized Cost | ||
Without single maturity date | 64,522 | |
Total | 64,522 | 67,787 |
Fair Value | ||
Without single maturity date | 62,082 | |
Total | $ 62,082 | $ 65,482 |
SECURITIES - Securities Held to
SECURITIES - Securities Held to Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized cost and estimated fair value of securities held to maturity | ||
Total | $ 785 | $ 785 |
Estimated Fair Value | 785 | 785 |
Amortized Cost | ||
Within one year | 0 | |
After one, but within five years | 145 | |
After five, but within ten years | 640 | |
After ten years | 0 | |
Total | 785 | |
Total | 785 | 785 |
Fair Value | ||
Within one year | 0 | |
After one, but within five years | 145 | |
After five, but within ten years | 640 | |
After ten years | 0 | |
Total | 785 | |
Total | 785 | 785 |
Obligations of states and political subdivisions | ||
Amortized cost and estimated fair value of securities held to maturity | ||
Total | 785 | 785 |
Unrecognized Gains | 0 | 0 |
Unrecognized Losses | 0 | 0 |
Estimated Fair Value | 785 | 785 |
Allowance for Credit Losses | 0 | 0 |
Amortized Cost | ||
Total | 785 | 785 |
Fair Value | ||
Total | 785 | $ 785 |
Mortgage-backed securities, residential | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Collateralized mortgage obligations | ||
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 - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |||
Debt securities, gain (loss) | $ 0 | $ 0 | |
Deferred Compensation Plan | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investments, fair value | 2,500,000 | $ 2,400,000 | |
Marketable Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investments, fair value | $ 600,000 | $ 600,000 |
SECURITIES - Investment Securit
SECURITIES - Investment Securities Available for Sale in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value | ||
Less than 12 months | $ 2,221 | $ 29,297 |
12 months or longer | 556,857 | 546,649 |
Total | 559,078 | 575,946 |
Unrealized Losses | ||
Less than 12 months | 26 | 2,762 |
12 months or longer | 90,650 | 82,418 |
Total | 90,676 | 85,180 |
U.S. Treasury notes and bonds | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
12 months or longer | 55,162 | 55,332 |
Total | 55,162 | 55,332 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | 4,666 | 4,480 |
Total | 4,666 | 4,480 |
Mortgage-backed securities, residential | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
12 months or longer | 388,878 | 402,986 |
Total | 388,878 | 402,986 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | 77,425 | 72,422 |
Total | 77,425 | 72,422 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 1,154 | 17,891 |
12 months or longer | 36,991 | 20,686 |
Total | 38,145 | 38,577 |
Unrealized Losses | ||
Less than 12 months | 24 | 241 |
12 months or longer | 1,246 | 576 |
Total | 1,270 | 817 |
Corporate bonds and notes | ||
Fair Value | ||
Less than 12 months | 0 | 7,492 |
12 months or longer | 20,932 | 13,177 |
Total | 20,932 | 20,669 |
Unrealized Losses | ||
Less than 12 months | 0 | 2,508 |
12 months or longer | 4,818 | 2,573 |
Total | 4,818 | 5,081 |
SBA loan pools | ||
Fair Value | ||
Less than 12 months | 1,067 | 3,914 |
12 months or longer | 54,894 | 54,468 |
Total | 55,961 | 58,382 |
Unrealized Losses | ||
Less than 12 months | 2 | 13 |
12 months or longer | 2,495 | 2,367 |
Total | $ 2,497 | $ 2,380 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | $ 2,003,610 | $ 1,972,664 | ||
Allowance for credit losses | (20,471) | (22,517) | $ (20,075) | $ (19,659) |
Loans, net | 1,983,139 | 1,950,147 | ||
Construction | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 141,604 | 138,887 | ||
Commercial mortgages, other | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 1,004,198 | 984,038 | ||
Home equity lines and loans | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 87,608 | 87,056 | ||
Indirect consumer loans | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 204,081 | 210,423 | ||
Direct consumer loans | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 9,238 | 9,872 | ||
Commercial and Agricultural | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 279,635 | 264,396 | ||
Allowance for credit losses | (4,516) | (5,055) | (4,053) | (3,373) |
Commercial Mortgages | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 1,145,802 | 1,122,925 | ||
Allowance for credit losses | (10,367) | (12,026) | (10,983) | (11,576) |
Loans, net | 1,900 | |||
Commercial Mortgages | Construction | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 141,604 | 138,887 | ||
Allowance for credit losses | 0 | 0 | ||
Commercial Mortgages | Commercial mortgages, other | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 1,004,198 | 984,038 | ||
Residential Mortgages | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 277,246 | 277,992 | ||
Allowance for credit losses | (2,062) | (2,194) | (1,892) | (1,845) |
Consumer Loans | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 300,927 | 307,351 | ||
Allowance for credit losses | (3,526) | (3,242) | $ (3,147) | $ (2,865) |
Consumer Loans | Home equity lines and loans | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 87,608 | 87,056 | ||
Consumer Loans | Indirect consumer loans | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 204,081 | 210,423 | ||
Consumer Loans | Direct consumer loans | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 9,238 | 9,872 | ||
Commercial & industrial | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 279,414 | 264,140 | ||
Commercial & industrial | Commercial and Agricultural | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 279,414 | 264,140 | ||
Agricultural | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | 221 | 256 | ||
Agricultural | Commercial and Agricultural | ||||
Composition of loan portfolio [Abstract] | ||||
Total loans, net of deferred loan fees and costs | $ 221 | $ 256 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) loan | Mar. 31, 2023 loan | Dec. 31, 2023 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest | $ 8,100 | $ 7,800 | |
Number of modified loans | loan | 0 | ||
Loans, net | $ 1,983,139 | 1,950,147 | |
Loans subsequently defaulted | loan | 0 | ||
Individually analyzed | $ 5,711 | 8,035 | |
Number of days past due after which a retail loan is rated | 90 days | ||
Commercial Mortgages | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, net | $ 1,900 | ||
Individually analyzed | $ 3,965 | 5,968 | |
Commercial and industrial | Defaulted Loan | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Number of modified loans | loan | 1 | ||
Weighted-average term extension (in months) | 6 months | ||
Collateral Pledged | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually analyzed | $ 4,248 | $ 6,347 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowances For Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 22,517 | $ 19,659 | $ 19,659 |
Charge-offs | (367) | (383) | (1,383) |
Recoveries | 185 | 114 | |
Net recoveries (charge-offs) | (182) | (269) | |
Provision (credit) | (1,864) | 311 | |
Ending balance | 20,471 | 20,075 | 22,517 |
Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 374 | 374 | |
Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 20,033 | 20,033 | |
Commercial and Agricultural | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 5,055 | 3,373 | 3,373 |
Charge-offs | 0 | (190) | |
Recoveries | 37 | 6 | |
Net recoveries (charge-offs) | 37 | (184) | |
Provision (credit) | (576) | (45) | |
Ending balance | 4,516 | 4,053 | 5,055 |
Commercial and Agricultural | Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 909 | 909 | |
Commercial and Agricultural | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,282 | 4,282 | |
Commercial Mortgages | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 12,026 | 11,576 | 11,576 |
Charge-offs | 0 | 0 | |
Recoveries | 1 | 0 | |
Net recoveries (charge-offs) | 1 | 0 | |
Provision (credit) | (1,660) | 102 | |
Ending balance | 10,367 | 10,983 | 12,026 |
Commercial Mortgages | Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | (695) | (695) | |
Commercial Mortgages | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 10,881 | 10,881 | |
Residential Mortgages | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 2,194 | 1,845 | 1,845 |
Charge-offs | (16) | 0 | (32) |
Recoveries | 22 | 0 | |
Net recoveries (charge-offs) | 6 | 0 | |
Provision (credit) | (138) | 63 | |
Ending balance | 2,062 | 1,892 | 2,194 |
Residential Mortgages | Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | (16) | (16) | |
Residential Mortgages | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,829 | 1,829 | |
Consumer Loans | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,242 | 2,865 | 2,865 |
Charge-offs | (351) | (193) | |
Recoveries | 125 | 108 | |
Net recoveries (charge-offs) | (226) | (85) | |
Provision (credit) | 510 | 191 | |
Ending balance | 3,526 | 3,147 | 3,242 |
Consumer Loans | Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 176 | 176 | |
Consumer Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,041 | 3,041 | |
Unfunded Loan Commitment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 919 | 0 | 0 |
Provision (credit) | (176) | (34) | |
Ending balance | 743 | 1,048 | 919 |
Unfunded Loan Commitment | Cumulative effect adjustment for the adoption of ASC 326 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 0 | $ 1,082 | 1,082 |
Ending balance | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Provision for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Provision (credit) for credit losses on unfunded commitments | $ (1,864) | $ 311 |
Loans And Unfunded Commitments | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Provision (credit) for credit losses on unfunded commitments | (2,040) | 277 |
Loans Portfolio Segment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Provision (credit) for credit losses on unfunded commitments | (1,864) | 311 |
Unfunded Loan Commitment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Provision (credit) for credit losses on unfunded commitments | $ (176) | $ (34) |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowances by Impairment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Allowance for credit losses | ||||
Individually analyzed | $ 1,687 | $ 1,955 | ||
Collectively analyzed | 18,784 | 20,562 | ||
Total ending allowance balance | 20,471 | 22,517 | $ 20,075 | $ 19,659 |
Amortized cost basis of loans: | ||||
Individually analyzed | 5,711 | 8,035 | ||
Collectively analyzed | 1,997,899 | 1,964,629 | ||
Total loans, net of deferred loan fees and costs | 2,003,610 | 1,972,664 | ||
Collateral Pledged | ||||
Allowance for credit losses | ||||
Total ending allowance balance | 225 | 267 | ||
Amortized cost basis of loans: | ||||
Individually analyzed | 4,248 | 6,347 | ||
Commercial and Agricultural | ||||
Allowance for credit losses | ||||
Individually analyzed | 1,663 | 1,928 | ||
Collectively analyzed | 2,853 | 3,127 | ||
Total ending allowance balance | 4,516 | 5,055 | 4,053 | 3,373 |
Amortized cost basis of loans: | ||||
Individually analyzed | 1,746 | 2,067 | ||
Collectively analyzed | 277,889 | 262,329 | ||
Total loans, net of deferred loan fees and costs | 279,635 | 264,396 | ||
Commercial Mortgages | ||||
Allowance for credit losses | ||||
Individually analyzed | 24 | 27 | ||
Collectively analyzed | 10,343 | 11,999 | ||
Total ending allowance balance | 10,367 | 12,026 | 10,983 | 11,576 |
Amortized cost basis of loans: | ||||
Individually analyzed | 3,965 | 5,968 | ||
Collectively analyzed | 1,141,837 | 1,116,957 | ||
Total loans, net of deferred loan fees and costs | 1,145,802 | 1,122,925 | ||
Residential Mortgages | ||||
Allowance for credit losses | ||||
Individually analyzed | 0 | 0 | ||
Collectively analyzed | 2,062 | 2,194 | ||
Total ending allowance balance | 2,062 | 2,194 | 1,892 | 1,845 |
Amortized cost basis of loans: | ||||
Individually analyzed | 0 | 0 | ||
Collectively analyzed | 277,246 | 277,992 | ||
Total loans, net of deferred loan fees and costs | 277,246 | 277,992 | ||
Consumer Loans | ||||
Allowance for credit losses | ||||
Individually analyzed | 0 | 0 | ||
Collectively analyzed | 3,526 | 3,242 | ||
Total ending allowance balance | 3,526 | 3,242 | $ 3,147 | $ 2,865 |
Amortized cost basis of loans: | ||||
Individually analyzed | 0 | 0 | ||
Collectively analyzed | 300,927 | 307,351 | ||
Total loans, net of deferred loan fees and costs | $ 300,927 | $ 307,351 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Modifications (Details) - Commercial Mortgages - Commercial mortgages, other $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 277 |
% of Loan Class | 0.03% |
Weighted-average interest rate reduction (%) | 0% |
Weighted-average term extension (in months) | 60 months |
Weighted-average payment delay (in months) | 0 months |
Principal Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 0 |
Principal Reduction | 0 |
Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | 0 |
Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | 277 |
Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | 0 |
Combination | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Receivables Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | $ 2,003,610 | $ 1,972,664 |
Nonaccrual with No Allowance for Credit Losses | 6,217 | 8,529 |
Nonaccrual | 7,835 | 10,411 |
Loans Past Due 90 Days or More and Still Accruing | 8 | 10 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 12,305 | 14,360 |
Total Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 245 | |
30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 4,415 | 9,562 |
30 - 59 Days Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | |
60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 3,569 | 943 |
60 - 89 Days Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 4,321 | 3,855 |
90 Days or More Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 675 | |
Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,991,305 | 1,958,304 |
Loans Not Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 920 | |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 141,604 | 138,887 |
Commercial mortgages, other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,004,198 | 984,038 |
Home equity lines and loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 87,608 | 87,056 |
Indirect consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 204,081 | 210,423 |
Direct consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 9,238 | 9,872 |
Commercial Mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,145,802 | 1,122,925 |
Commercial Mortgages | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 141,604 | 138,887 |
Nonaccrual with No Allowance for Credit Losses | 2,207 | 2,209 |
Nonaccrual | 2,207 | 2,209 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Commercial Mortgages | Construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 2,207 | 4,371 |
Commercial Mortgages | Construction | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 2,164 |
Commercial Mortgages | Construction | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Mortgages | Construction | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 2,207 | 2,207 |
Commercial Mortgages | Construction | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 139,397 | 134,516 |
Commercial Mortgages | Commercial mortgages, other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,004,198 | 984,038 |
Nonaccrual with No Allowance for Credit Losses | 1,734 | 3,732 |
Nonaccrual | 1,758 | 3,760 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Commercial Mortgages | Commercial mortgages, other | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 3,425 | 1,386 |
Commercial Mortgages | Commercial mortgages, other | Total Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 277 | |
Commercial Mortgages | Commercial mortgages, other | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,012 | 1,022 |
Commercial Mortgages | Commercial mortgages, other | 30 - 59 Days Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | |
Commercial Mortgages | Commercial mortgages, other | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 2,238 | 103 |
Commercial Mortgages | Commercial mortgages, other | 60 - 89 Days Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | |
Commercial Mortgages | Commercial mortgages, other | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 175 | 261 |
Commercial Mortgages | Commercial mortgages, other | 90 Days or More Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | |
Commercial Mortgages | Commercial mortgages, other | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,000,773 | 982,652 |
Commercial Mortgages | Commercial mortgages, other | Loans Not Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 277 | |
Residential Mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 277,246 | 277,992 |
Nonaccrual with No Allowance for Credit Losses | 1,118 | 1,315 |
Nonaccrual | 1,118 | 1,315 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Residential Mortgages | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 2,712 | 3,030 |
Residential Mortgages | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,529 | 2,244 |
Residential Mortgages | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 594 | 201 |
Residential Mortgages | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 589 | 585 |
Residential Mortgages | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 274,534 | 274,962 |
Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 300,927 | 307,351 |
Consumer Loans | Home equity lines and loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 87,608 | 87,056 |
Nonaccrual with No Allowance for Credit Losses | 496 | 508 |
Nonaccrual | 496 | 508 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Consumer Loans | Home equity lines and loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 994 | 914 |
Consumer Loans | Home equity lines and loans | Total Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 116 | |
Consumer Loans | Home equity lines and loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 612 | 461 |
Consumer Loans | Home equity lines and loans | 30 - 59 Days Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | |
Consumer Loans | Home equity lines and loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 100 | 87 |
Consumer Loans | Home equity lines and loans | 60 - 89 Days Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | |
Consumer Loans | Home equity lines and loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 282 | 366 |
Consumer Loans | Home equity lines and loans | 90 Days or More Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | |
Consumer Loans | Home equity lines and loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 86,614 | 86,142 |
Consumer Loans | Home equity lines and loans | Loans Not Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 116 | |
Consumer Loans | Indirect consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 204,081 | 210,423 |
Nonaccrual with No Allowance for Credit Losses | 631 | 687 |
Nonaccrual | 631 | 687 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Consumer Loans | Indirect consumer loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,821 | 3,400 |
Consumer Loans | Indirect consumer loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,063 | 2,473 |
Consumer Loans | Indirect consumer loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 379 | 501 |
Consumer Loans | Indirect consumer loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 379 | 426 |
Consumer Loans | Indirect consumer loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 202,260 | 207,023 |
Consumer Loans | Direct consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 9,238 | 9,872 |
Nonaccrual with No Allowance for Credit Losses | 8 | 2 |
Nonaccrual | 8 | 2 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Consumer Loans | Direct consumer loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 44 | 22 |
Consumer Loans | Direct consumer loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 18 | 2 |
Consumer Loans | Direct consumer loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 20 | 20 |
Consumer Loans | Direct consumer loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 6 | 0 |
Consumer Loans | Direct consumer loans | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 9,194 | 9,850 |
Commercial and Agricultural Sector | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 279,414 | 264,140 |
Nonaccrual with No Allowance for Credit Losses | 23 | 76 |
Nonaccrual | 1,615 | 1,904 |
Loans Past Due 90 Days or More and Still Accruing | 8 | 10 |
Commercial and Agricultural Sector | Commercial and industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 1,102 | 1,237 |
Commercial and Agricultural Sector | Commercial and industrial | Total Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 129 | |
Commercial and Agricultural Sector | Commercial and industrial | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 181 | 1,196 |
Commercial and Agricultural Sector | Commercial and industrial | 30 - 59 Days Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | |
Commercial and Agricultural Sector | Commercial and industrial | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 238 | 31 |
Commercial and Agricultural Sector | Commercial and industrial | 60 - 89 Days Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | |
Commercial and Agricultural Sector | Commercial and industrial | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 683 | 10 |
Commercial and Agricultural Sector | Commercial and industrial | 90 Days or More Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 675 | |
Commercial and Agricultural Sector | Commercial and industrial | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 278,312 | 262,903 |
Commercial and Agricultural Sector | Commercial and industrial | Loans Not Past Due | Restructured Debt | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 804 | |
Commercial and Agricultural Sector | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 221 | 256 |
Nonaccrual with No Allowance for Credit Losses | 0 | 0 |
Nonaccrual | 2 | 26 |
Loans Past Due 90 Days or More and Still Accruing | 0 | 0 |
Commercial and Agricultural Sector | Agricultural | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial and Agricultural Sector | Agricultural | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial and Agricultural Sector | Agricultural | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial and Agricultural Sector | Agricultural | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial and Agricultural Sector | Agricultural | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable | $ 221 | $ 256 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Collateral Dependent (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amortized Cost Basis | $ 5,711 | $ 8,035 | ||
Related Allowance | 20,471 | 22,517 | $ 20,075 | $ 19,659 |
Commercial and Agricultural | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amortized Cost Basis | 1,746 | 2,067 | ||
Related Allowance | 4,516 | 5,055 | 4,053 | 3,373 |
Commercial Mortgages | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amortized Cost Basis | 3,965 | 5,968 | ||
Related Allowance | 10,367 | 12,026 | 10,983 | 11,576 |
Commercial Mortgages | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amortized Cost Basis | 2,207 | 2,209 | ||
Related Allowance | 0 | 0 | ||
Consumer Loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amortized Cost Basis | 0 | 0 | ||
Related Allowance | 3,526 | 3,242 | $ 3,147 | $ 2,865 |
Collateral Pledged | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amortized Cost Basis | 4,248 | 6,347 | ||
Related Allowance | 225 | 267 | ||
Commercial Real Estate And Business Assets | Commercial and Agricultural | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amortized Cost Basis | 282 | 353 | ||
Related Allowance | 200 | 214 | ||
Business Assets | Commercial and Agricultural | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amortized Cost Basis | 2 | 26 | ||
Related Allowance | 1 | 26 | ||
Commercial Real Estate and Residential Real Estate | Commercial Mortgages | Commercial mortgages, other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Amortized Cost Basis | 1,757 | 3,759 | ||
Related Allowance | $ 24 | $ 27 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Average Amortized Cost Basis | ||
Average recorded investment, total | $ 6,873 | $ 6,836 |
Interest Income Recognized | ||
Total | 4 | 18 |
Residential Mortgages | ||
Average Amortized Cost Basis | ||
With no related allowance recorded | 0 | 715 |
Interest Income Recognized | ||
With no related allowance recorded | 0 | 9 |
Construction | Commercial Mortgages | ||
Average Amortized Cost Basis | ||
With no related allowance recorded | 2,208 | 0 |
Interest Income Recognized | ||
With no related allowance recorded | 0 | 0 |
Commercial mortgages, other | Commercial Mortgages | ||
Average Amortized Cost Basis | ||
With no related allowance recorded | 2,733 | 4,053 |
With an allowance recorded | 25 | 36 |
Interest Income Recognized | ||
With no related allowance recorded | 0 | 7 |
With an allowance recorded | 0 | 0 |
Home equity lines and loans | Consumer Loans | ||
Average Amortized Cost Basis | ||
With no related allowance recorded | 0 | 254 |
Interest Income Recognized | ||
With no related allowance recorded | 0 | 0 |
Commercial and Agricultural Sector | Commercial and industrial | ||
Average Amortized Cost Basis | ||
With no related allowance recorded | 49 | 729 |
With an allowance recorded | 1,844 | 1,049 |
Interest Income Recognized | ||
With no related allowance recorded | 1 | 0 |
With an allowance recorded | 3 | 2 |
Commercial and Agricultural Sector | Agricultural | ||
Average Amortized Cost Basis | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 14 | 0 |
Interest Income Recognized | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Credit Quality Indicator (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | $ 45,642 | $ 307,790 | |
2023 | 310,315 | 553,730 | |
2022 | 549,478 | 302,467 | |
2021 | 297,902 | 218,500 | |
2020 | 212,684 | 114,216 | |
Prior | 440,662 | 343,382 | |
Revolving Loans Amortized Cost | 142,772 | 128,225 | |
Revolving Loans Converted to Term | 4,155 | 4,354 | |
Total loans, net of deferred loan fees and costs | 2,003,610 | 1,972,664 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2024 | 0 | 188 | |
2023 | 104 | 422 | |
2022 | 127 | 223 | |
2021 | 29 | 127 | |
2020 | 24 | 30 | |
Prior | 81 | 381 | |
Revolving Loans Amortized Cost | 2 | 12 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 367 | $ 383 | 1,383 |
Construction | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 1,076 | 46,951 | |
2023 | 48,500 | 68,483 | |
2022 | 77,995 | 19,066 | |
2021 | 9,686 | 0 | |
2020 | 0 | 2,235 | |
Prior | 3,865 | 1,671 | |
Revolving Loans Amortized Cost | 482 | 481 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 141,604 | 138,887 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | |
Construction | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 1,076 | 46,951 | |
2023 | 48,500 | 68,483 | |
2022 | 77,995 | 19,066 | |
2021 | 9,686 | 0 | |
2020 | 0 | 28 | |
Prior | 1,658 | 1,669 | |
Revolving Loans Amortized Cost | 482 | 481 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 139,397 | 136,678 | |
Construction | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 0 | 0 | |
Construction | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 2,207 | |
Prior | 2,207 | 2 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 2,207 | 2,209 | |
Construction | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 0 | 0 | |
Commercial mortgages, other | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 13,784 | 111,136 | |
2023 | 119,647 | 264,403 | |
2022 | 261,652 | 170,392 | |
2021 | 179,521 | 116,829 | |
2020 | 115,009 | 57,782 | |
Prior | 306,618 | 257,435 | |
Revolving Loans Amortized Cost | 7,225 | 5,294 | |
Revolving Loans Converted to Term | 742 | 767 | |
Total loans, net of deferred loan fees and costs | 1,004,198 | 984,038 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | |
Commercial mortgages, other | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 13,784 | 110,864 | |
2023 | 117,235 | 260,763 | |
2022 | 258,049 | 161,858 | |
2021 | 171,090 | 113,198 | |
2020 | 111,407 | 57,782 | |
Prior | 296,080 | 244,211 | |
Revolving Loans Amortized Cost | 5,127 | 5,197 | |
Revolving Loans Converted to Term | 742 | 767 | |
Total loans, net of deferred loan fees and costs | 973,514 | 954,640 | |
Commercial mortgages, other | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 2,533 | |
2022 | 2,522 | 8,189 | |
2021 | 8,092 | 2,609 | |
2020 | 2,590 | 0 | |
Prior | 8,082 | 8,642 | |
Revolving Loans Amortized Cost | 2,001 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 23,287 | 21,973 | |
Commercial mortgages, other | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 272 | |
2023 | 2,412 | 1,107 | |
2022 | 1,081 | 345 | |
2021 | 339 | 1,022 | |
2020 | 1,012 | 0 | |
Prior | 2,432 | 4,555 | |
Revolving Loans Amortized Cost | 97 | 97 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 7,373 | 7,398 | |
Commercial mortgages, other | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 24 | 27 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 24 | 27 | |
Home equity lines and loans | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 3,298 | 13,552 | |
2023 | 12,904 | 16,461 | |
2022 | 16,038 | 5,821 | |
2021 | 5,577 | 3,134 | |
2020 | 3,009 | 2,867 | |
Prior | 12,785 | 10,693 | |
Revolving Loans Amortized Cost | 32,859 | 33,300 | |
Revolving Loans Converted to Term | 1,138 | 1,228 | |
Total loans, net of deferred loan fees and costs | 87,608 | 87,056 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 11 | 0 | |
Revolving Loans Amortized Cost | 0 | 6 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 11 | 6 | |
Home equity lines and loans | Not rated | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 3,298 | 13,552 | |
2023 | 12,904 | 16,384 | |
2022 | 15,846 | 5,821 | |
2021 | 5,577 | 3,134 | |
2020 | 3,009 | 2,867 | |
Prior | 12,494 | 10,400 | |
Revolving Loans Amortized Cost | 32,773 | 33,275 | |
Revolving Loans Converted to Term | 1,095 | 1,115 | |
Total loans, net of deferred loan fees and costs | 86,996 | 86,548 | |
Home equity lines and loans | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | ||
2023 | 0 | ||
2022 | 116 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total loans, net of deferred loan fees and costs | 116 | ||
Home equity lines and loans | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 77 | |
2022 | 76 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 291 | 293 | |
Revolving Loans Amortized Cost | 86 | 25 | |
Revolving Loans Converted to Term | 43 | 113 | |
Total loans, net of deferred loan fees and costs | 496 | 508 | |
Indirect consumer | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 11,861 | 72,383 | |
2023 | 67,540 | 98,254 | |
2022 | 90,621 | 23,150 | |
2021 | 20,552 | 9,240 | |
2020 | 7,701 | 3,906 | |
Prior | 5,806 | 3,490 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 204,081 | 210,423 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2024 | 0 | 184 | |
2023 | 104 | 375 | |
2022 | 127 | 215 | |
2021 | 29 | 121 | |
2020 | 24 | 21 | |
Prior | 54 | 55 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 338 | 971 | |
Indirect consumer | Not rated | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 11,861 | 72,264 | |
2023 | 67,401 | 98,008 | |
2022 | 90,413 | 23,015 | |
2021 | 20,411 | 9,192 | |
2020 | 7,652 | 3,870 | |
Prior | 5,712 | 3,387 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 203,450 | 209,736 | |
Indirect consumer | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 119 | |
2023 | 139 | 246 | |
2022 | 208 | 135 | |
2021 | 141 | 48 | |
2020 | 49 | 36 | |
Prior | 94 | 103 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 631 | 687 | |
Direct consumer | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 700 | 3,005 | |
2023 | 2,622 | 2,745 | |
2022 | 2,391 | 785 | |
2021 | 612 | 258 | |
2020 | 176 | 53 | |
Prior | 332 | 324 | |
Revolving Loans Amortized Cost | 2,402 | 2,697 | |
Revolving Loans Converted to Term | 3 | 5 | |
Total loans, net of deferred loan fees and costs | 9,238 | 9,872 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2024 | 0 | 4 | |
2023 | 0 | 15 | |
2022 | 0 | 8 | |
2021 | 0 | 6 | |
2020 | 0 | 0 | |
Prior | 0 | 54 | |
Revolving Loans Amortized Cost | 2 | 6 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 2 | 93 | |
Direct consumer | Not rated | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 700 | 3,005 | |
2023 | 2,622 | 2,745 | |
2022 | 2,391 | 785 | |
2021 | 607 | 256 | |
2020 | 174 | 53 | |
Prior | 332 | 324 | |
Revolving Loans Amortized Cost | 2,401 | 2,697 | |
Revolving Loans Converted to Term | 3 | 5 | |
Total loans, net of deferred loan fees and costs | 9,230 | 9,870 | |
Direct consumer | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 5 | 2 | |
2020 | 2 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost | 1 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 8 | 2 | |
Commercial & industrial | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 10,909 | 42,110 | |
2023 | 39,100 | 45,196 | |
2022 | 43,488 | 22,733 | |
2021 | 22,158 | 17,670 | |
2020 | 16,492 | 31,256 | |
Prior | 45,253 | 16,459 | |
Revolving Loans Amortized Cost | 99,742 | 86,388 | |
Revolving Loans Converted to Term | 2,272 | 2,328 | |
Total loans, net of deferred loan fees and costs | 279,414 | 264,140 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 9 | |
Prior | 0 | 272 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 281 | |
Commercial & industrial | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 10,885 | 41,925 | |
2023 | 39,011 | 40,564 | |
2022 | 34,108 | 21,742 | |
2021 | 21,370 | 13,541 | |
2020 | 12,349 | 31,233 | |
Prior | 39,698 | 10,523 | |
Revolving Loans Amortized Cost | 92,497 | 77,176 | |
Revolving Loans Converted to Term | 1,643 | 1,662 | |
Total loans, net of deferred loan fees and costs | 251,561 | 238,366 | |
Commercial & industrial | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 185 | |
2023 | 0 | 4,608 | |
2022 | 9,159 | 0 | |
2021 | 0 | 4,020 | |
2020 | 4,060 | 0 | |
Prior | 4,586 | 4,690 | |
Revolving Loans Amortized Cost | 7,223 | 9,137 | |
Revolving Loans Converted to Term | 453 | 482 | |
Total loans, net of deferred loan fees and costs | 25,481 | 23,122 | |
Commercial & industrial | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 89 | 24 | |
2022 | 221 | 991 | |
2021 | 788 | 109 | |
2020 | 83 | 23 | |
Prior | 205 | 456 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 176 | 161 | |
Total loans, net of deferred loan fees and costs | 1,562 | 1,764 | |
Commercial & industrial | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 24 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 764 | 790 | |
Revolving Loans Amortized Cost | 22 | 75 | |
Revolving Loans Converted to Term | 0 | 23 | |
Total loans, net of deferred loan fees and costs | 810 | 888 | |
Agricultural | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 2 | 15 | |
2022 | 14 | 150 | |
2021 | 143 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost | 62 | 65 | |
Revolving Loans Converted to Term | 0 | 26 | |
Total loans, net of deferred loan fees and costs | 221 | 256 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | |
Agricultural | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 15 | |
2022 | 14 | 150 | |
2021 | 143 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost | 62 | 65 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 219 | 230 | |
Agricultural | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 0 | 0 | |
Agricultural | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 2 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 26 | |
Total loans, net of deferred loan fees and costs | 2 | 26 | |
Agricultural | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 0 | 0 | |
Commercial and Agricultural | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 279,635 | 264,396 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Total | 0 | 190 | |
Commercial and Agricultural | Commercial & industrial | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 279,414 | 264,140 | |
Commercial and Agricultural | Agricultural | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 221 | 256 | |
Commercial Mortgages | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 1,145,802 | 1,122,925 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Total | 0 | 0 | |
Commercial Mortgages | Construction | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 141,604 | 138,887 | |
Commercial Mortgages | Commercial mortgages, other | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 1,004,198 | 984,038 | |
Residential Mortgages | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 4,014 | 18,653 | |
2023 | 20,000 | 58,173 | |
2022 | 57,279 | 60,370 | |
2021 | 59,653 | 71,369 | |
2020 | 70,297 | 16,117 | |
Prior | 66,003 | 53,310 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 277,246 | 277,992 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 32 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 16 | 0 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 16 | 0 | 32 |
Residential Mortgages | Not rated | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 4,014 | 18,653 | |
2023 | 20,000 | 58,098 | |
2022 | 57,204 | 60,024 | |
2021 | 59,311 | 71,369 | |
2020 | 70,050 | 15,948 | |
Prior | 65,549 | 52,585 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 276,128 | 276,677 | |
Residential Mortgages | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 75 | |
2022 | 75 | 346 | |
2021 | 342 | 0 | |
2020 | 247 | 169 | |
Prior | 454 | 725 | |
Revolving Loans Amortized Cost | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans, net of deferred loan fees and costs | 1,118 | 1,315 | |
Consumer Loans | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 300,927 | 307,351 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Total | 351 | $ 193 | |
Consumer Loans | Home equity lines and loans | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 87,608 | 87,056 | |
Consumer Loans | Indirect consumer | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | 204,081 | 210,423 | |
Consumer Loans | Direct consumer | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total loans, net of deferred loan fees and costs | $ 9,238 | $ 9,872 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial Assets: | ||
Total | $ 566,028 | $ 583,993 |
Derivative assets | 25,806 | 23,942 |
Financial Liabilities: | ||
Derivative liabilities | 25,811 | 23,981 |
Recurring | ||
Financial Assets: | ||
U.S. Treasury notes and bonds | 55,162 | 55,332 |
Mortgage-backed securities, residential | 389,707 | 403,824 |
Obligations of states and political subdivisions | 38,145 | 38,686 |
Corporate bonds and notes | 20,932 | 20,669 |
SBA loan pools | 62,082 | 65,482 |
Total | 566,028 | 583,993 |
Equity investments, at fair value | 2,600 | 2,552 |
Derivative assets | 25,806 | 23,942 |
Financial Liabilities: | ||
Derivative liabilities | 25,811 | 23,981 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial Assets: | ||
U.S. Treasury notes and bonds | 55,162 | 55,332 |
Mortgage-backed securities, residential | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Corporate bonds and notes | 0 | 0 |
SBA loan pools | 0 | 0 |
Total | 55,162 | 55,332 |
Equity investments, at fair value | 2,600 | 2,552 |
Derivative assets | 0 | 0 |
Financial Liabilities: | ||
Derivative liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial Assets: | ||
U.S. Treasury notes and bonds | 0 | 0 |
Mortgage-backed securities, residential | 389,707 | 403,824 |
Obligations of states and political subdivisions | 38,145 | 38,686 |
Corporate bonds and notes | 13,211 | 13,139 |
SBA loan pools | 62,082 | 65,482 |
Total | 503,145 | 521,131 |
Equity investments, at fair value | 0 | 0 |
Derivative assets | 25,806 | 23,942 |
Financial Liabilities: | ||
Derivative liabilities | 25,811 | 23,981 |
Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial Assets: | ||
U.S. Treasury notes and bonds | 0 | 0 |
Mortgage-backed securities, residential | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Corporate bonds and notes | 7,721 | 7,530 |
SBA loan pools | 0 | 0 |
Total | 7,721 | 7,530 |
Equity investments, at fair value | 0 | 0 |
Derivative assets | 0 | 0 |
Financial Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 investment | |
Fair Value Disclosures [Abstract] | |
Number of investments transferred | 8 |
FAIR VALUE - Unobservable Input
FAIR VALUE - Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 7,530 | $ 0 |
Included in other comprehensive income | 191 | (1,289) |
Transfers into Level 3 | 0 | 9,955 |
Transfers out of Level 3 | 0 | |
Ending balance | $ 7,721 | $ 8,666 |
FAIR VALUE - Quantitative Infor
FAIR VALUE - Quantitative Information (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Corporate bonds and notes | $ 7,721 | $ 7,530 | $ 8,666 | $ 0 |
Market discount rate | Corporate Bonds And Notes | Discounted cash flow | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Financial asset, measurement input | 0.1250 | |||
Market discount rate | Corporate Bonds And Notes | Discounted cash flow | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Financial asset, measurement input | 0.1250 | |||
Market discount rate | Corporate Bonds And Notes | Discounted cash flow | Weighted Average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Financial asset, measurement input | 0.1250 |
FAIR VALUE - Carrying Amounts a
FAIR VALUE - Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Cash and due from financial institutions | $ 22,984 | $ 22,247 |
Interest-earning deposits in other financial institutions | 71,878 | 14,600 |
Debt Securities, Available-for-Sale | 566,028 | 583,993 |
Securities held to maturity | 785 | 785 |
Loans, net and loans held for sale | 1,983,139 | 1,950,147 |
Derivative assets | 25,806 | 23,942 |
Deposits [Abstract] | ||
FHLBNY overnight advances | 0 | 31,920 |
FRB term advance | 50,000 | 0 |
Derivative liabilities | 25,811 | 23,981 |
Recurring | ||
Financial assets: | ||
Debt Securities, Available-for-Sale | 566,028 | 583,993 |
Derivative assets | 25,806 | 23,942 |
Deposits [Abstract] | ||
Derivative liabilities | 25,811 | 23,981 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Debt Securities, Available-for-Sale | 55,162 | 55,332 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Debt Securities, Available-for-Sale | 503,145 | 521,131 |
Derivative assets | 25,806 | 23,942 |
Deposits [Abstract] | ||
Derivative liabilities | 25,811 | 23,981 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Debt Securities, Available-for-Sale | 7,721 | 7,530 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Carrying Amount | ||
Financial assets: | ||
Cash and due from financial institutions | 22,984 | 22,247 |
Interest-earning deposits in other financial institutions | 71,878 | 14,600 |
Equity investments | 3,093 | 3,046 |
Debt Securities, Available-for-Sale | 566,028 | 583,993 |
Securities held to maturity | 785 | 785 |
FHLBNY and FRBNY stock | 4,071 | 5,498 |
Loans, net and loans held for sale | 2,003,706 | 1,972,664 |
Derivative assets | 25,806 | 23,942 |
Deposits [Abstract] | ||
Demand, savings, and insured money market deposits | 1,851,412 | 1,817,162 |
Time deposits | 629,360 | 612,265 |
FHLBNY overnight advances | 0 | 31,920 |
FRB term advance | 50,000 | |
Derivative liabilities | 25,811 | 23,981 |
Recurring | Estimated Fair Value | ||
Financial assets: | ||
Cash and due from financial institutions | 22,984 | 22,247 |
Interest-earning deposits in other financial institutions | 71,878 | 14,600 |
Equity investments | 3,093 | 3,046 |
Debt Securities, Available-for-Sale | 566,028 | 583,993 |
Securities held to maturity | 785 | 785 |
Loans, net and loans held for sale | 1,896,266 | 1,875,390 |
Derivative assets | 25,806 | 23,942 |
Deposits [Abstract] | ||
Demand, savings, and insured money market deposits | 1,851,412 | 1,817,162 |
Time deposits | 626,423 | 609,863 |
FHLBNY overnight advances | 0 | 31,925 |
FRB term advance | 49,828 | |
Derivative liabilities | 25,811 | 23,981 |
Recurring | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and due from financial institutions | 22,984 | 22,247 |
Interest-earning deposits in other financial institutions | 71,878 | 14,600 |
Equity investments | 3,093 | 3,046 |
Debt Securities, Available-for-Sale | 55,162 | 55,332 |
Securities held to maturity | 0 | 0 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Demand, savings, and insured money market deposits | 1,851,412 | 1,817,162 |
Time deposits | 0 | 0 |
FHLBNY overnight advances | 0 | 0 |
FRB term advance | 0 | |
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 |
Debt Securities, Available-for-Sale | 503,145 | 521,131 |
Securities held to maturity | 0 | 0 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 0 | 0 |
Derivative assets | 25,806 | 23,942 |
Deposits [Abstract] | ||
Demand, savings, and insured money market deposits | 0 | 0 |
Time deposits | 626,423 | 609,863 |
FHLBNY overnight advances | 0 | 31,925 |
FRB term advance | 49,828 | |
Derivative liabilities | 25,811 | 23,981 |
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 |
Debt Securities, Available-for-Sale | 7,721 | 7,530 |
Securities held to maturity | 785 | 785 |
FHLBNY and FRBNY stock | 0 | 0 |
Loans, net and loans held for sale | 1,896,266 | 1,875,390 |
Derivative assets | 0 | 0 |
Deposits [Abstract] | ||
Demand, savings, and insured money market deposits | 0 | 0 |
Time deposits | 0 | 0 |
FHLBNY overnight advances | 0 | 0 |
FRB term advance | 0 | |
Derivative liabilities | $ 0 | $ 0 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) lease | Mar. 31, 2023 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, weighted average remaining lease term (years) | 7 years 6 months 21 days | |
Operating lease, weighted average discount rate | 3.51% | |
Operating lease not yet commenced | lease | 1 | |
Finance lease, weighted average remaining lease term (years) | 9 years 1 month 6 days | |
Finance lease, weighted average discount rate | 3.42% | |
Finance lease not yet commenced | $ 0 | |
Operating lease, rent expense | 300,000 | |
2 Rush Street, Schenectady, New York | Director | ||
Lessee, Lease, Description [Line Items] | ||
Monthly rent and common area maintenance expense | 9,000 | |
Operating lease, rent expense | $ 27,000 | $ 26,000 |
LEASES - Leased Branch Properti
LEASES - Leased Branch Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 5,648 | $ 6,449 |
Less: accumulated amortization | (200) | (801) |
Less: lease termination | 0 | 0 |
Add: new lease agreement and modifications | 570 | 0 |
Operating lease right-of-use assets | $ 6,018 | $ 5,648 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
2024 | $ 717 | |
2025 | 959 | |
2026 | 965 | |
2027 | 977 | |
2028 | 845 | |
2027 and thereafter | 2,590 | |
Total minimum lease payments | 7,053 | |
Less: amount representing interest | (856) | |
Present value of net minimum lease payments | $ 6,197 | $ 5,827 |
LEASES - Premises and Equipment
LEASES - Premises and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
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 | (2,955) | (2,872) |
Net book value | $ 2,617 | $ 2,700 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payment Obligations Under Finance Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
2024 | $ 293 | |
2025 | 409 | |
2026 | 425 | |
2027 | 428 | |
2028 | 428 | |
2027 and thereafter | 1,560 | |
Total minimum lease payments | 3,543 | |
Less: amount representing interest | (564) | |
Present value of net minimum lease payments | $ 2,979 | $ 3,050 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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 - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 0 | $ 0 | |
Goodwill impairment charges | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Contractual Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
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 | $ 14,387 | $ 23,809 |
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 | 61,128 | 78,790 |
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 | 2,249 | 3,387 |
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 | 327,681 | 332,439 |
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 | $ 18,201 | $ 11,317 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Allowance for credit losses | $ 20,471 | $ 22,517 | $ 20,075 | $ 19,659 |
Unfunded Loan Commitment | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Allowance for credit losses | $ 743 | $ 919 | $ 1,048 | $ 0 |
Minimum | Fixed Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Interest rate on fixed-rate commitments to make loans | 5.63% | |||
Maturity period of fixed-rate commitments to make loans (years) | 4 years | |||
Commitments period to make fixed-rate commercial draw notes (months) | 3 months | |||
Interest rate on fixed-rate commitments to make commercial draw notes (in hundredths) | 2.79% | |||
Maximum | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Commitments period to make real estate and home equity loans (days) | 60 days | |||
Maximum | Fixed Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Interest rate on fixed-rate commitments to make loans | 7.38% | |||
Maturity period of fixed-rate commitments to make loans (years) | 30 years | |||
Commitments period to make fixed-rate commercial draw notes (months) | 24 months | |||
Interest rate on fixed-rate commitments to make commercial draw notes (in hundredths) | 8.17% |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||
Beginning balance | $ 195,241 | $ 166,388 |
Other comprehensive income before reclassification | (4,070) | 5,775 |
Amounts reclassified from accumulated other comprehensive income | 5 | 9 |
Total other comprehensive income (loss) | (4,065) | 5,784 |
Ending balance | 197,128 | 177,341 |
Total | ||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||
Beginning balance | (66,013) | (75,257) |
Total other comprehensive income (loss) | (4,065) | 5,784 |
Ending balance | (70,078) | (69,473) |
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 | (62,800) | (71,296) |
Other comprehensive income before reclassification | (4,070) | 5,775 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Total other comprehensive income (loss) | (4,070) | 5,775 |
Ending balance | (66,870) | (65,521) |
Defined Benefit and Other Benefit Plans | ||
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward] | ||
Beginning balance | (3,213) | (3,961) |
Other comprehensive income before reclassification | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 5 | 9 |
Total other comprehensive income (loss) | 5 | 9 |
Ending balance | $ (3,208) | $ (3,952) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Details about Accumulated Other Comprehensive Income Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax effect | $ (2,038) | $ (1,987) |
Total reclassification for the period, net of tax | 7,050 | 7,270 |
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 | 5 | 9 |
Prior service costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pension and other employee benefits | 0 | 0 |
Actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Pension and other employee benefits | 7 | 12 |
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 | (2) | (3) |
Total reclassification for the period, net of tax | $ 5 | $ 9 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Changes in fair value of equity investments | $ 101 | $ 72 |
Income from bank owned life insurance | 9 | 10 |
Other non-interest income | 5,657 | 5,423 |
Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Other non-interest income | 212 | 192 |
Overdraft fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 710 | 714 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 239 | 227 |
Interchange revenue from debit card transactions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 1,063 | 1,133 |
WMG fee income | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 2,703 | 2,580 |
CFS fee and commission income | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 228 | 241 |
Net gains on sales of loans | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 32 | 5 |
Loan servicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 36 | 36 |
Income from bank-owned life insurance | ||
Disaggregation of Revenue [Line Items] | ||
Income from bank owned life insurance | 9 | 10 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 536 | 405 |
Core Banking | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Changes in fair value of equity investments | 117 | 78 |
Other non-interest income | 2,742 | 2,651 |
Core Banking | Overdraft fees | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 710 | 714 |
Core Banking | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 239 | 227 |
Core Banking | Interchange revenue from debit card transactions | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 1,063 | 1,133 |
Core Banking | WMG fee income | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
Core Banking | CFS fee and commission income | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
Core Banking | Net gains on sales of loans | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 32 | 5 |
Core Banking | Loan servicing fees | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 36 | 36 |
Core Banking | Income from bank-owned life insurance | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Income from bank owned life insurance | 9 | 10 |
Core Banking | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 536 | 448 |
WMG | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Changes in fair value of equity investments | 0 | 0 |
Other non-interest income | 2,703 | 2,580 |
WMG | Overdraft fees | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
WMG | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
WMG | Interchange revenue from debit card transactions | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
WMG | WMG fee income | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 2,703 | 2,580 |
WMG | CFS fee and commission income | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
WMG | Net gains on sales of loans | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 0 | 0 |
WMG | Loan servicing fees | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 0 | 0 |
WMG | Income from bank-owned life insurance | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Income from bank owned life insurance | 0 | 0 |
WMG | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 0 | 0 |
Holding Company, CFS, and CRM | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Changes in fair value of equity investments | (16) | (6) |
Other non-interest income | 212 | 192 |
Holding Company, CFS, and CRM | Overdraft fees | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
Holding Company, CFS, and CRM | Other | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 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 |
Holding Company, CFS, and CRM | WMG fee income | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 0 | 0 |
Holding Company, CFS, and CRM | CFS fee and commission income | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customer | 228 | 241 |
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 |
Holding Company, CFS, and CRM | Loan servicing fees | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | 0 | 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 |
Holding Company, CFS, and CRM | Other | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from contact with customer | $ 0 | $ (43) |
COMPONENTS OF QUARTERLY AND Y_3
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Qualified Pension Plan | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost, benefits earned during the period | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 378 | 396 |
Expected return on plan assets | (629) | (596) |
Amortization of unrecognized transition obligation | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 |
Amortization of unrecognized net loss | 0 | 6 |
Net periodic pension benefit | (251) | (194) |
Supplemental Pension Plan | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost, benefits earned during the period | 0 | 0 |
Interest cost on projected benefit obligation | 11 | 12 |
Expected return on plan assets | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 |
Amortization of unrecognized net loss | 3 | 2 |
Net periodic pension benefit | 14 | 14 |
Postretirement Plan, Medical and Life | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost, benefits earned during the period | 0 | 0 |
Interest cost on projected benefit obligation | 1 | 1 |
Expected return on plan assets | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 |
Amortization of unrecognized net loss | 4 | 5 |
Net periodic pension benefit | $ 5 | $ 6 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 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 | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Interest and dividend income | $ 31,219 | $ 26,230 | |
Interest expense | 13,130 | 6,283 | |
Net interest income | 18,089 | 19,947 | |
Provision for credit losses | (2,040) | 277 | |
Net interest income after provision for credit losses | 20,129 | 19,670 | |
Other non-interest income | 5,657 | 5,423 | |
Other non-interest expenses | 16,698 | 15,836 | |
Income before income tax expense | 9,088 | 9,257 | |
Income tax expense (benefit) | 2,038 | 1,987 | |
Net income | 7,050 | 7,270 | |
Assets | 2,784,890 | 2,654,183 | $ 2,710,529 |
Operating Segments | Core Banking | |||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Interest and dividend income | 31,211 | 26,203 | |
Interest expense | 13,130 | 6,283 | |
Net interest income | 18,081 | 19,920 | |
Provision for credit losses | (2,040) | 277 | |
Net interest income after provision for credit losses | 20,121 | 19,643 | |
Other non-interest income | 2,742 | 2,651 | |
Other non-interest expenses | 14,539 | 13,696 | |
Income before income tax expense | 8,324 | 8,598 | |
Income tax expense (benefit) | 1,870 | 1,831 | |
Net income | 6,454 | 6,767 | |
Assets | 2,778,785 | 2,644,158 | |
Operating Segments | WMG | |||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Interest and dividend income | 0 | 0 | |
Interest expense | 0 | 0 | |
Net interest income | 0 | 0 | |
Provision for credit losses | 0 | 0 | |
Net interest income after provision for credit losses | 0 | 0 | |
Other non-interest income | 2,703 | 2,580 | |
Other non-interest expenses | 1,895 | 1,798 | |
Income before income tax expense | 808 | 782 | |
Income tax expense (benefit) | 182 | 177 | |
Net income | 626 | 605 | |
Assets | 2,898 | 2,538 | |
Intersegment Eliminations | |||
Reportable segments and reconciliation to consolidated results [Abstract] | |||
Interest and dividend income | 8 | 27 | |
Interest expense | 0 | ||
Net interest income | 8 | 27 | |
Provision for credit losses | 0 | 0 | |
Net interest income after provision for credit losses | 8 | 27 | |
Other non-interest income | 212 | 192 | |
Other non-interest expenses | 264 | 342 | |
Income before income tax expense | (44) | (123) | |
Income tax expense (benefit) | (14) | (21) | |
Net income | (30) | (102) | |
Assets | $ 3,207 | $ 1,714 |
STOCK COMPENSATION - Narrative
STOCK COMPENSATION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted Stock | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Granted (in shares) | 12,088 | 13,069 |
Weighted-average period for recognition (in years) | 3 years 9 months 21 days | |
Vesting period | 1 year | |
Total unrecognized compensation cost related to nonvested shares granted under the Plan | $ 2.1 | |
Total fair value of shares vested | $ 0.6 | $ 0.6 |
2021 Plan | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of shares authorized (in shares) | 170,000 | |
Weighted-average period for recognition (in years) | 1 year | |
Vesting period | 5 years | |
Expenses related to stock based compensation recognized | $ 0.3 | $ 0.4 |
STOCK COMPENSATION - Restricted
STOCK COMPENSATION - Restricted Stock Activity For Officers And Employees (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Shares | ||
Nonvested, beginning balance (in shares) | 62,984 | |
Granted (in shares) | 12,088 | 13,069 |
Vested (in shares) | (13,208) | |
Forfeited or cancelled (in shares) | 0 | |
Nonvested, ending balance (in shares) | 61,864 | |
Weighted–Average Grant Date Fair Value | ||
Nonvested, beginning balance (in dollars per share) | $ 45.87 | |
Granted (in dollars per share) | 48.11 | |
Vested (in dollars per share) | 45.86 | |
Forfeitures or cancelled (in dollars per share) | 0 | |
Nonvested, ending balance (in dollars per share) | $ 46.31 |
Uncategorized Items - chmg-2024
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |