Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 21, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | FMAO | |
Entity Registrant Name | FARMERS & MERCHANTS BANCORP, INC. | |
Entity Central Index Key | 0000792966 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 13,606,651 | |
Entity File Number | 001-38084 | |
Entity Tax Identification Number | 34-1469491 | |
Entity Address, Address Line One | 307 North Defiance Street | |
Entity Address, City or Town | Archbold | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43502 | |
City Area Code | 419 | |
Local Phone Number | 446-2501 | |
Entity Incorporation, State or Country Code | OH | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, No Par Value | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 69,680 | $ 135,485 |
Federal funds sold | 990 | 45,338 |
Total cash and cash equivalents | 70,670 | 180,823 |
Interest-bearing time deposits | 5,187 | 10,913 |
Securities - available-for-sale | 395,485 | 429,931 |
Other securities, at cost | 8,227 | 8,162 |
Loans held for sale | 2,182 | 7,714 |
Loans, net | 2,122,626 | 1,841,177 |
Premises and equipment | 26,484 | 26,913 |
Goodwill | 80,434 | 80,434 |
Mortgage servicing rights | 3,583 | 3,157 |
Other real estate owned | 159 | |
Bank owned life insurance | 28,051 | 27,558 |
Other assets | 40,831 | 21,359 |
Total Assets | 2,783,760 | 2,638,300 |
Deposits | ||
Noninterest-bearing | 506,928 | 473,689 |
Interest-bearing | ||
NOW accounts | 705,888 | 650,466 |
Savings | 607,375 | 597,828 |
Time | 462,845 | 471,479 |
Total deposits | 2,283,036 | 2,193,462 |
Federal funds purchased and securities sold under agreements to repurchase | 55,802 | 29,268 |
Federal Home Loan Bank (FHLB) advances | 102,147 | 24,065 |
Other borrowings | 10,000 | 40,000 |
Subordinated notes, net of unamortized issuance costs | 34,557 | 34,471 |
Dividend payable | 2,727 | 2,461 |
Accrued expenses and other liabilities | 14,913 | 17,406 |
Total liabilities | 2,503,182 | 2,341,133 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock - No par value 20,000,000 shares authorized; issued andoutstanding 14,063,999 shares 9/30/22 and 12/31/21 | 121,811 | 122,674 |
Treasury stock - 956,499 shares 9/30/22, 997,766 shares 12/31/21 | (11,547) | (11,724) |
Retained earnings | 208,051 | 189,401 |
Accumulated other comprehensive loss | (37,737) | (3,184) |
Total stockholders' equity | 280,578 | 297,167 |
Total Liabilities and Stockholders' Equity | $ 2,783,760 | $ 2,638,300 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Common stock, no par value | ||
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 14,063,999 | 14,063,999 |
Common stock, shares outstanding | 14,063,999 | 14,063,999 |
Treasury Stock, shares | 956,499 | 997,766 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest Income | ||||
Loans, including fees | $ 24,119 | $ 18,766 | $ 66,962 | $ 50,637 |
Debt securities: | ||||
U.S. Treasury and government agencies | 1,049 | 924 | 3,107 | 2,532 |
Municipalities | 373 | 284 | 995 | 881 |
Dividends | 93 | 44 | 192 | 125 |
Federal funds sold | 10 | 19 | 21 | |
Other | 213 | 94 | 382 | 221 |
Total interest income | 25,847 | 20,122 | 71,657 | 54,417 |
Interest Expense | ||||
Deposits | 2,166 | 1,221 | 4,905 | 3,837 |
Federal funds purchased and securities sold under agreements to repurchase | 416 | 165 | 734 | 494 |
Borrowed funds | 398 | 87 | 951 | 424 |
Subordinated notes | 284 | 199 | 837 | 199 |
Total interest expense | 3,264 | 1,672 | 7,427 | 4,954 |
Net Interest Income - Before Provision for Loan Losses | 22,583 | 18,450 | 64,230 | 49,463 |
Provision for Loan Losses | 1,637 | 659 | 3,845 | 3,000 |
Net Interest Income After Provision for Loan Losses | 20,946 | 17,791 | 60,385 | 46,463 |
Noninterest Income | ||||
Net gain on sale of loans | 327 | 822 | 1,188 | 2,823 |
Net gain on sale of available-for-sale securities | 293 | |||
Total noninterest income | 3,732 | 4,074 | 11,395 | 13,092 |
Noninterest Expense | ||||
Salaries and wages | 5,479 | 5,442 | 16,347 | 14,423 |
Employee benefits | 1,392 | 1,621 | 4,992 | 5,530 |
Net occupancy expense | 693 | 529 | 1,813 | 1,652 |
Furniture and equipment | 1,047 | 903 | 3,111 | 2,542 |
Data processing | 781 | 1,548 | 2,039 | 2,481 |
Franchise taxes | 254 | 372 | 1,429 | 1,112 |
ATM expense | 580 | 460 | 1,656 | 1,368 |
Advertising | 578 | 439 | 1,115 | 1,005 |
Net (gain) loss on sale of other assets owned | 219 | (271) | 421 | |
FDIC assessment | 271 | 296 | 655 | 808 |
Mortgage servicing rights amortization - net | (50) | 285 | 35 | 1,314 |
Consulting fees | 254 | 256 | 665 | 873 |
Other general and administrative | 2,192 | 1,951 | 6,613 | 6,211 |
Total noninterest expense | 13,471 | 14,321 | 40,199 | 39,740 |
Income Before Income Taxes | 11,207 | 7,544 | 31,581 | 19,815 |
Income Taxes | 2,253 | 1,624 | 6,254 | 4,003 |
Net Income | $ 8,954 | $ 5,920 | $ 25,327 | $ 15,812 |
Basic Earnings Per Share | $ 0.68 | $ 0.53 | $ 1.94 | $ 1.41 |
Diluted Earnings Per Share | 0.68 | 0.53 | 1.94 | 1.41 |
Dividends Declared | $ 0.2100 | $ 0.1800 | $ 0.6025 | $ 0.5200 |
Customer Service Fees [Member] | ||||
Noninterest Income | ||||
Noninterest income | $ 2,300 | $ 2,242 | $ 7,096 | $ 7,254 |
Other Service Charges and Fees [Member] | ||||
Noninterest Income | ||||
Noninterest income | $ 1,105 | $ 1,010 | $ 3,111 | $ 2,722 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income | $ 8,954 | $ 5,920 | $ 25,327 | $ 15,812 |
Other Comprehensive Income (Loss) (Net of Tax): | ||||
Net unrealized gain (loss) on available-for-sale securities | (8,197) | 173 | (43,738) | (5,778) |
Reclassification adjustment for realized gain on sale of available-for-sale securities | (293) | |||
Net unrealized gain (loss) on available-for-sale securities | (8,197) | 173 | (43,738) | (6,071) |
Tax expense (benefit) | (1,721) | 36 | (9,185) | (1,275) |
Other comprehensive income (loss) | (6,476) | 137 | (34,553) | (4,796) |
Comprehensive Income (Loss) | $ 2,478 | $ 6,057 | $ (9,226) | $ 11,016 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes to Stockholder's Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2020 | $ 249,160 | $ 81,804 | $ (11,932) | $ 173,591 | $ 5,697 |
Beginning balance, shares at Dec. 31, 2020 | 11,197,544 | ||||
Net income | 4,909 | 4,909 | |||
Other comprehensive income (loss) | (5,554) | (5,554) | |||
Purchase of treasury stock | (23) | (23) | |||
Purchase of treasury stock, shares | (950) | ||||
Issuance of share of restricted stock and forfeiture of share of restricted stock | $ 1 | (7) | 6 | ||
Issuance of share of restricted stock and forfeiture of share of restricted stock, shares | 150 | ||||
Stock-based compensation expense | 225 | $ 225 | |||
Cash dividends declared | (1,889) | (1,889) | |||
Ending balance at Mar. 31, 2021 | 246,828 | $ 82,030 | (11,962) | 176,617 | 143 |
Ending balance, shares at Mar. 31, 2021 | 11,196,744 | ||||
Beginning balance at Dec. 31, 2020 | 249,160 | $ 81,804 | (11,932) | 173,591 | 5,697 |
Beginning balance, shares at Dec. 31, 2020 | 11,197,544 | ||||
Net income | 15,812 | ||||
Ending balance at Sep. 30, 2021 | 254,746 | $ 81,382 | (11,718) | 184,181 | 901 |
Ending balance, shares at Sep. 30, 2021 | 11,232,320 | ||||
Beginning balance at Mar. 31, 2021 | 246,828 | $ 82,030 | (11,962) | 176,617 | 143 |
Beginning balance, shares at Mar. 31, 2021 | 11,196,744 | ||||
Net income | 4,983 | 4,983 | |||
Other comprehensive income (loss) | 621 | 621 | |||
Purchase of treasury stock | (201) | (201) | |||
Purchase of treasury stock, shares | (8,929) | ||||
Issuance of share of restricted stock and forfeiture of share of restricted stock | $ 58 | (47) | (11) | ||
Issuance of share of restricted stock and forfeiture of share of restricted stock, shares | (1,975) | ||||
Stock-based compensation expense | 171 | $ 171 | |||
Director stock award | 71 | 38 | 33 | ||
Director stock awards, shares | 3,212 | ||||
Cash dividends declared | (1,888) | (1,888) | |||
Ending balance at Jun. 30, 2021 | 250,585 | $ 82,259 | (12,172) | 179,734 | 764 |
Ending balance, shares at Jun. 30, 2021 | 11,189,052 | ||||
Net income | 5,920 | 5,920 | |||
Other comprehensive income (loss) | 137 | 137 | |||
Purchase of treasury stock | (107) | (107) | |||
Purchase of treasury stock, shares | (4,732) | ||||
Issuance of share of restricted stock and forfeiture of share of restricted stock | $ (1,090) | 561 | 529 | ||
Issuance of share of restricted stock and forfeiture of share of restricted stock, shares | 48,000 | ||||
Stock-based compensation expense | 213 | $ 213 | |||
Cash dividends declared | (2,002) | (2,002) | |||
Ending balance at Sep. 30, 2021 | 254,746 | $ 81,382 | (11,718) | 184,181 | 901 |
Ending balance, shares at Sep. 30, 2021 | 11,232,320 | ||||
Beginning balance at Dec. 31, 2021 | 297,167 | $ 122,674 | (11,724) | 189,401 | (3,184) |
Beginning balance, shares at Dec. 31, 2021 | 13,066,233 | ||||
Net income | 8,102 | 8,102 | |||
Other comprehensive income (loss) | (16,542) | (16,542) | |||
Issuance of share of restricted stock and forfeiture of share of restricted stock | $ (1) | (15) | 16 | ||
Issuance of share of restricted stock and forfeiture of share of restricted stock, shares | (150) | ||||
Stock-based compensation expense | 213 | $ 213 | |||
Cash dividends declared | (2,462) | (2,462) | |||
Ending balance at Mar. 31, 2022 | 286,478 | $ 122,886 | (11,739) | 195,057 | (19,726) |
Ending balance, shares at Mar. 31, 2022 | 13,066,083 | ||||
Beginning balance at Dec. 31, 2021 | 297,167 | $ 122,674 | (11,724) | 189,401 | (3,184) |
Beginning balance, shares at Dec. 31, 2021 | 13,066,233 | ||||
Net income | 25,327 | ||||
Ending balance at Sep. 30, 2022 | 280,578 | $ 121,811 | (11,547) | 208,051 | (37,737) |
Ending balance, shares at Sep. 30, 2022 | 13,107,500 | ||||
Beginning balance at Mar. 31, 2022 | 286,478 | $ 122,886 | (11,739) | 195,057 | (19,726) |
Beginning balance, shares at Mar. 31, 2022 | 13,066,083 | ||||
Net income | 8,271 | 8,271 | |||
Other comprehensive income (loss) | (11,535) | (11,535) | |||
Purchase of treasury stock | (54) | (54) | |||
Purchase of treasury stock, shares | (1,388) | ||||
Issuance of share of restricted stock and forfeiture of share of restricted stock | $ 40 | (63) | 23 | ||
Issuance of share of restricted stock and forfeiture of share of restricted stock, shares | (1,750) | ||||
Stock-based compensation expense | 219 | $ 219 | |||
Director stock award | 120 | 34 | 86 | ||
Director stock awards, shares | 2,880 | ||||
Cash dividends declared | (2,626) | (2,626) | |||
Ending balance at Jun. 30, 2022 | 280,873 | $ 123,145 | (11,822) | 200,811 | (31,261) |
Ending balance, shares at Jun. 30, 2022 | 13,065,825 | ||||
Net income | 8,954 | 8,954 | |||
Other comprehensive income (loss) | (6,476) | (6,476) | |||
Purchase of treasury stock | (254) | (254) | |||
Purchase of treasury stock, shares | (8,100) | ||||
Issuance of share of restricted stock and forfeiture of share of restricted stock | $ (1,542) | 529 | 1,013 | ||
Issuance of share of restricted stock and forfeiture of share of restricted stock, shares | 49,775 | ||||
Stock-based compensation expense | 208 | $ 208 | |||
Cash dividends declared | (2,727) | (2,727) | |||
Ending balance at Sep. 30, 2022 | $ 280,578 | $ 121,811 | $ (11,547) | $ 208,051 | $ (37,737) |
Ending balance, shares at Sep. 30, 2022 | 13,107,500 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes to Stockholder's Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Cash dividends declared, per share | $ 0.2100 | $ 0.2025 | $ 0.19 | $ 0.1800 | $ 0.17 | $ 0.17 |
Common Stock [Member] | ||||||
Issuance of shares of restricted stock, Shares | 53,375 | 500 | 48,000 | 750 | ||
Issuance of shares of restricted stock, forfeitures | 3,600 | 1,750 | 650 | 1,975 | 600 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||||
Net income | $ 25,327 | $ 15,812 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||
Depreciation | 2,148 | 2,073 | |||
Amortization of premiums on available-for-sale securities, net | 1,632 | 1,598 | |||
Servicing rights amortization and impairment | $ (50) | $ 285 | 35 | 1,314 | |
Amortization of core deposit intangible | 597 | 478 | |||
Amortization of customer list intangible | 92 | 92 | |||
Net amortization (accretion) of fair value adjustments | (3,392) | (170) | |||
Amortization of subordinated note issuance costs | 86 | 20 | |||
Stock-based compensation expense | 640 | 609 | |||
Director stock award | 120 | 71 | |||
Provision for loan loss | 1,637 | 659 | 3,845 | 3,000 | $ 3,444 |
Gain on sale of loans held for sale | (327) | (822) | (1,188) | (2,823) | |
Originations of loans held for sale | (61,285) | (86,720) | |||
Proceeds from sale of loans held for sale | 68,005 | 93,548 | |||
(Gain) Loss on sale of other assets owned | 219 | (271) | 421 | ||
Gain on sales of securities available-for-sale | (293) | ||||
Increase in cash surrender value of bank owned life insurance | (493) | (475) | |||
Change in other assets and other liabilities, net | (13,929) | (1,278) | |||
Net cash provided by operating activities | 21,969 | 27,277 | |||
Activity in available-for-sale securities: | |||||
Maturities, prepayments and calls | 25,061 | 41,305 | |||
Sales | 9,291 | ||||
Purchases | (35,986) | (146,634) | |||
Activity in other securities, at cost: | |||||
Purchases | (65) | (207) | |||
Proceeds from redemption of FHLB stock | 1,522 | ||||
Change in interest-bearing time deposits | 5,726 | 10,257 | |||
Proceeds from sale of other assets owned | 430 | 196 | |||
Additions to premises and equipment | (1,706) | (1,418) | |||
Loan originations and principal collections, net | (283,836) | (141,116) | |||
Net cash used in investing activities | (290,376) | (226,576) | |||
Cash Flows from Financing Activities | |||||
Net change in deposits | 91,432 | 154,042 | |||
Net change in federal funds purchased and securities sold under agreements to repurchase | 26,534 | (638) | |||
Proceeds from FHLB advances | 100,000 | ||||
Repayment of FHLB advances | (21,855) | (157) | |||
Repayment of other borrowings | (30,000) | ||||
Purchase of treasury stock | (308) | (331) | |||
Proceeds from issuance of subordinated notes | 34,421 | ||||
Cash dividends paid on common stock | (7,549) | (5,666) | |||
Net cash provided by financing activities | 158,254 | 181,671 | |||
Net Decrease in Cash and Cash Equivalents | (110,153) | (17,628) | |||
Cash and Cash Equivalents - Beginning of year | 180,823 | 175,706 | 175,706 | ||
Cash and Cash Equivalents - End of period | $ 70,670 | $ 158,078 | 70,670 | 158,078 | $ 180,823 |
Supplemental cash flow information: | |||||
Interest paid | 7,765 | 4,559 | |||
Income taxes paid | 5,700 | 5,100 | |||
Supplemental noncash disclosures: | |||||
Transfer of loans to other real estate owned | 209 | ||||
Cash dividends declared not paid | $ 2,627 | 2,002 | |||
Ossian Financial Services, Inc. [Member] | |||||
Activity in other securities, at cost: | |||||
Acquisition of Ossian Financial Services, Inc., net of cash received | 228 | ||||
Supplemental noncash disclosures: | |||||
Fair value of assets acquired | 137,058 | ||||
Cash paid for the capital stock | 20,001 | ||||
Liabilities assumed | $ 117,057 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) $ in Thousands | Apr. 30, 2021 USD ($) |
Ossian Financial Services, Inc. [Member] | |
Purchase of assets | $ 20,001 |
Basis of Presentation and Other
Basis of Presentation and Other | 9 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Other | NOTE 1 BASIS OF PRESENTAT ION AND OTHER The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10Q and Rule 10-01 of Regulation S-X; accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2022 are not necessarily indicative of the results that are expected for the year ended December 31, 2022. The condensed consolidated balance sheet of the Company as of December 31, 2021, has been derived from the audited consolidated balance sheet of the Company as of that date. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. The Company’s principal source of revenue is interest income from loans and investment securities. The Company also earns noninterest income from various banking and financial services offered primarily through Farmers & Merchants State Bank. Interest income is primarily recognized on an accrual basis according to nondiscretionary formulas written in contracts, such as loan agreements or investment security contracts. The Company also earns noninterest income from various banking and financial services provided to business and consumer clients such as deposit account, debit card, and mortgage banking services. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed. |
Business Combination and Asset
Business Combination and Asset Purchase | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Business Combination and Asset Purchase | NOTE 2 BUSINESS COMBINATION AND ASSET PURCHASE On October 1, 2021, the Company acquired Perpetual Federal Savings Bank, (PFSB), a community bank with one full-service office in Urbana, Ohio. Shareholders of PFSB elected to receive either 1.7766 shares of FMAO stock or $ 41.20 per share in cash for each PFSB share owned, subject to adjustment based upon 1,833,999 shares of FMAO to be issued in the merger. PFSB had 2,470,032 shares outstanding on October 1, 2021. The share price of Farmers & Merchants Bancorp, Inc. (FMAO) stock on October 1, 2021 was $ 22.40 . Total consideration for the acquisition was approximately $ 100.3 million consisting of $ 59.2 million in cash and $ 41.1 million in stock. As a result of the acquisition, the Company has had an opportunity to increase its deposit base and reduce transaction costs. The Company has reduced costs through economies of scale. Under the acquisition method of accounting, the total purchase was allocated to net tangible and intangible assets based on their current estimated fair values on the date of acquisition. Of the total purchase price of $ 100.3 million, $ 668 thousand has been allocated to core deposit intangible included in other assets and is being amortized over seven years on a straight line basis. Goodwill of $ 25.2 million, resulting from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of the Company and Perpetual Federal Savings Bank. Of that total amount, none of the purchase price is deductible for tax purposes. The following table summarizes the consideration paid for Perpetual Federal Savings Bank and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. Fair Value of Consideration Transferred (In Thousands) Cash $ 59,234 Common Shares 41,078 Total $ 100,312 Recognized amounts of identifiable assets acquired and liabilities assumed Assets Cash and cash equivalents $ 44,975 Federal funds sold 1,672 Interest-bearing time deposits 6,250 Other securities, at cost 2,794 Loans, net 334,661 Premises and equipment 615 Goodwill 25,220 Other assets 3,975 Total Assets Purchased $ 420,162 Liabilities Deposits Noninterest bearing $ 2,018 Interest bearing 309,090 Total deposits 311,108 Federal Home Loan Bank (FHLB) advances 6,218 Accrued expenses and other liabilities 2,524 Total Liabilities Assumed $ 319,850 The fair value of the assets acquired includes loans with a fair value of $ 334.7 million. The gross principal and contractual interest due under the contracts is $ 403.3 million, of which $ 5.6 million is expected to be uncollectible. The loans have a weighted average life of 52 months. The fair value of building and land included in premises and equipment was written down by $ 4 thousand with $ 297 thousand attributable to the buildings and is being amortized over the useful life of 16.2 years. The fair value for certificates of deposit incorporates a valuation amount of $ 3.9 million which is being accreted over 1.6 years. The fair value of Federal Home Loan Bank (FHLB) advances included a valuation amount of $ 218 thousand which is being accreted over 2.6 years. The Company acquired loans in the acquisition that had evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. Loans purchased with evidence of credit deterioration since origination and for which it was probable that all contractually required payments would not be collected were considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date included information such as past-due and nonaccrual status, borrower credit scores and recent loan to value percentages. Purchased credit-impaired loans were accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which included estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans was not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporated the estimate of current key assumptions, such as default rates, severity and prepayment speeds. The carrying amount of those loans is included in loans, net on the balance sheet at September 30, 2022. The amounts of loans at October 1, 2021, December 31, 2021 and September 30, 2022 are as follows: (In Thousands) Balance - October 1, 2021 Consumer Real Estate $ 608 Agricultural Real Estate 118 Commercial Real Estate 234 Commercial & Industrial 5 Carrying amount, net of fair value adjustment of $ 237 $ 728 Balance - December 31, 2021 Consumer Real Estate $ 581 Agricultural Real Estate 114 Commercial Real Estate 5 Commercial & Industrial - Carrying amount, net of fair value adjustment of $ 190 $ 510 Balance - September 30, 2022 Consumer Real Estate $ 336 Agricultural Real Estate 108 Commercial Real Estate - Commercial & Industrial - Carrying amount, net of fair value adjustment of $ 141 $ 303 Loans acquired during 2021 for which it was probable at acquisition that all contractually required payments would not be collected are as follows: (In Thousands) Contractually required payments receivable at acquisition Consumer Real Estate $ 962 Agricultural Real Estate 146 Commercial Real Estate 293 Commercial & Industrial 6 Total required payments receivable $ 1,407 Cash flows expected to be collected at acquisition $ 728 Basis in acquired loans at acquisition $ 965 During the third quarter 2022, the associated discount of $ 1 thousand for one consumer real estate purchased credit impaired loan was included in the loan interest income in the Company's consolidated statement of income. Two consumer real estate purchased credit impaired loans with an associated discount of $ 36 thousand were paid off during the second quarter 2022 in addition to one consumer real estate purchased credit impaired loan with an associated discount of $ 12 thousand was paid off during the first quarter 2022 and has been included in the loan interest income in the Company’s consolidated statement of income for the nine months ended September 30, 2022. During the fourth quarter 2021, two commercial real estate and one consumer purchased credit impaired loans were paid off in full. The associated discount originally recognized at acquisition of $ 47 thousand was included in the loan interest income in the Company’s consolidated statement of income for the year ended December 31, 2021. The balance of the fair value adjustment for loans acquired and accounted for under this guidance (ASC 310-30) was $ 141 thousand at September 30, 2022, $ 190 thousand at December 31, 2021 and $ 237 thousand at October 1, 2021. Changes in accretable yield, or income expected to be collected, are as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (In Thousands) (In Thousands) (In Thousands) (In Thousands) Beginning Balance $ 4,710 $ - $ 5,262 $ - Additions 28 - 125 - Accretion ( 330 ) - ( 979 ) - Reclassification from nonaccretable difference - - - - Disposals ( 2 ) - ( 2 ) - Ending Balance $ 4,406 $ - $ 4,406 $ - On April 30, 2021, the Company acquired Ossian Financial Services, Inc., (OFSI), the bank holding company for Ossian State Bank, a community bank based in Ossian, Indiana. Ossian State Bank operated two full-service offices in the northeast Indiana communities of Ossian and Bluffton. Shareholders of OFSI received $ 67.71 in cash for each share. OFSI had 295,388 shares outstanding on April 30, 2021. Total consideration for the acquisition was approximately $ 20.0 million in cash. As a result of the acquisition, the Company has increased its deposit base and is working to reduce transaction costs. The Company has reduced costs through economies of scale. Under the acquisition method of accounting, the total purchase was allocated to net tangible and intangible assets based on their current estimated fair values on the date of acquisition. Of the total purchase price of $ 20.0 million, $ 980.2 thousand has been allocated to core deposit intangible included in other assets and will be amortized over seven years on a straight line basis. Goodwill of $ 7.9 million which resulted from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of the Company and Ossian State Bank and is deductible for tax purposes over 15 years. The following table summarizes the consideration paid for Ossian State Bank and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. Fair Value of Consideration Transferred (In Thousands) Cash $ 20,001 Total $ 20,001 Recognized amounts of identifiable assets acquired and liabilities assumed Assets Cash and cash equivalents $ 20,229 Interest-bearing time deposits 20,226 Securities - available-for-sale 30,243 Other securities, at cost 281 Loans, net 52,403 Premises and equipment 494 Goodwill 7,874 Other assets 5,308 Total Assets Purchased $ 137,058 Liabilities Deposits Noninterest bearing $ 34,509 Interest bearing 81,535 Total deposits 116,044 Accrued expenses and other liabilities 1,013 Total Liabilities Assumed $ 117,057 The fair value of the assets acquired includes loans with a fair value of $ 52.4 million. The gross principal and contractual interest due under the contracts is $ 63.7 million, of which $ 1.1 million is expected to be uncollectible. The loans have a weighted average life of 52 months. The fair value of building and land included in premises and equipment was written down by $ 596 thousand with $ 244 thousand attributable to buildings and will be accreted over the useful life of 39 years, The fair value for certificates of deposit incorporates a valuation amount of $ 59 thousand which will be accreted over 1.4 years. Certain transferred loans evidenced deterioration of credit quality since origination and management deemed it probable, at acquisition, that all contractually required payments would not be collected. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and nonaccrual status, borrower credit scores and recent loan to value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current key assumptions, such as default rates, severity and prepayment speeds. The carrying amount of those loans is included in loans, net on the balance sheet at September 30, 2022. The amounts of loans at April 30, 2021, December 31, 2021 and September 30, 2022 are as follows: (In Thousands) Balance - April 30, 2021 Consumer Real Estate $ 24 Agricultural Real Estate 981 Commercial Real Estate 315 Commercial & Industrial 314 Carrying amount, net of fair value adjustment of $ 325 $ 1,309 Balance - December 31, 2021 Consumer Real Estate $ 22 Agricultural Real Estate - Commercial Real Estate 222 Commercial & Industrial 285 Carrying amount, net of fair value adjustment of $ 321 $ 208 Balance - September 30, 2022 Consumer Real Estate $ 20 Agricultural Real Estate - Commercial Real Estate - Commercial & Industrial - Carrying amount, net of fair value adjustment of $ 10 $ 10 Loans acquired during 2021 for which it was probable at acquisition that all contractually required payments would not be collected are as follows: (In Thousands) Contractually required payments receivable at acquisition Consumer Real Estate $ 28 Agricultural Real Estate 1,142 Commercial Real Estate 527 Commercial & Industrial 360 Total required payments receivable $ 2,057 Cash flows expected to be collected at acquisition $ 1,309 Basis in acquired loans at acquisition $ 1,634 During the third quarter 2022, the associated discount of $ 311 thousand for six purchased credit impaired loans between two relationships was included in the loan interest income in the Company's consolidated statement of income for the three and nine months ended September 30, 2022. The balance of the fair value adjustment for loans acquired and accounted for under this guidance (ASC 310-30) was $ 10 thousand at September 30, 2022, $ 321 thousand at December 31, 2021 and $ 325 thousand at April 30, 2021. Changes in accretable yield, or income expected to be collected, are as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (In Thousands) (In Thousands) (In Thousands) (In Thousands) Beginning Balance $ 557 $ 733 $ 645 $ - Additions 1 - 1 762 Accretion ( 44 ) ( 44 ) ( 132 ) ( 73 ) Reclassification from nonaccretable difference - - - - Disposals - - - - Ending Balance $ 514 $ 689 $ 514 $ 689 The results of operations of Ossian State Bank and Perpetual Federal Savings Bank have been included in the Company’s consolidated financial statements since the acquisition dates of April 30, 2021 and October 1, 2021, respectively. The following schedule includes pro-forma results for the three and nine months ended September 30, 2022 and 2021 as if the Ossian State Bank and Perpetual Federal Savings Bank acquisitions had occurred as of the beginning of the comparable prior reporting period. (in thousands of dollars, except per share data) (in thousands of dollars, except per share data) Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Summary of Operations Net Interest Income - Before Provision for Loan Losses $ 22,583 $ 22,124 $ 64,230 $ 61,019 Provision for Loan Losses 1,637 659 3,845 3,001 Net Interest Income After Provision for Loan Losses 20,946 21,465 60,385 58,018 Noninterest Income 3,732 4,664 11,394 14,031 Noninterest Expense 12,941 14,167 39,668 41,436 Income Before Income Taxes 11,737 11,962 32,111 30,613 Income Taxes 2,320 2,433 6,321 6,101 Net Income $ 9,417 $ 9,529 $ 25,790 $ 24,512 Basic and Diluted Earnings Per Share $ 0.72 $ 0.73 $ 1.97 $ 1.88 The pro-forma information includes adjustments for interest income on loans, amortization of intangibles arising from the transactions, interest expense on deposits acquired, premises expense for the branches acquired and the related income tax effects. The pro-forma information for the quarter and nine months ended September 30, 2022 includes approximately $ 2.9 million and $ 7.5 million, respectively, net of tax, of operating revenue from Ossian State Bank and Perpetual Federal Savings Bank since January 1, 2022. The pro-forma financial information is presented for informational purposes only and is not indicative of the results of operations that actually would have been achieved had the acquisitions been consummated as of that time, nor is it intended to be a projection of future results. On January 1, 2019, the Company acquired Limberlost Bancshares, Inc. (“Limberlost”), the bank holding company for Bank of Geneva, a community bank based in Geneva, Indiana. Bank of Geneva operated six full-service offices in the northeast Indiana communities of Geneva, Berne, Decatur, Monroe, Portland and Monroeville. Shareholders of Limberlost received 1,830 shares of FMAO common stock and $ 8,465.00 in cash for each share. Limberlost had 1,000 shares outstanding on January 1, 2019. The share price of Farmers & Merchants Bancorp, Inc. (FMAO) stock on January 1, 2019 was $ 38.49 . Total consideration for the acquisition was approximately $ 78.9 million consisting of $ 8.5 million in cash and $ 70.4 million in stock. As a result of the acquisition, the Company has had an opportunity to increase its deposit base and reduce transaction costs. The Company has also reduced costs through economies of scale. Under the acquisition method of accounting, the total purchase was allocated to net tangible and intangible assets based on their current estimated fair values on the date of acquisition. Of the total purchase price of $ 78.9 million, $ 3.9 million has been allocated to core deposit intangible included in other assets and is being amortized over seven years on a straight line basis. Goodwill of $ 43.3 million resulting from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of the Company and Bank of Geneva. Of that total amount, none of the purchase price is deductible for tax purposes. Changes in accretable yield, or income expected to be collected, for the three and nine months ended are as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (In Thousands) (In Thousands) (In Thousands) (In Thousands) Beginning Balance $ 994 $ 1,439 $ 1,198 $ 1,653 Additions 2 3 10 8 Accretion ( 107 ) ( 108 ) ( 319 ) ( 323 ) Reclassification from nonaccretable difference - - - - Disposals - - - ( 4 ) Ending Balance $ 889 $ 1,334 $ 889 $ 1,334 As mentioned previously, the acquisition of Bank of Geneva resulted in the recognition of $ 3.9 million in core deposit intangible assets, the acquisition of Ossian State Bank resulted in the recognition of $ 980.2 thousand in core deposits assets and the acquisition of Perpetual Federal Savings Bank resulted in the recognition of $ 668 thousand in core deposits which are all being amortized over its remaining economic useful life of 7 years on a straight line basis. Core deposit intangible is included in other assets on the consolidated balance sheets. The amortization expense of the core deposit intangible for the nine months ended September 30, 2021 was $ 478 thousand. Of the $ 795 thousand to be expensed in 2022 , $ 597 thousand has been expensed for the nine months ended September 30, 2022 . Annual amortization of core deposit intangible assets is as follows: (In Thousands) Geneva Ossian Perpetual Total 2022 $ 560 $ 140 $ 95 $ 795 2023 560 140 95 795 2024 560 140 95 795 2025 560 140 95 795 2026 - 140 95 235 Thereafter - 187 169 356 $ 2,240 $ 887 $ 644 3,771 On November 16, 2020, FM Investment Services, a division of the Bank, purchased the assets and clients of Adams County Financial Resources (ACFR), a full-service registered investment advisory firm located in Geneva, Indiana. ACFR was founded in 1994 by R. Lee Flueckiger and provides clients and their families with financial confidence through personalized investment planning and services. As of November 30, 2020, ACFR had approximately $ 83 million of assets under management and over 450 clients. Total consideration for the purchase was $ 825 thousand which consisted of 40,049 shares of stock. Under the acquisition method of accounting, the total purchase is allocated to net tangible and intangible assets based on their current estimated fair values on the date of acquisition. Of the total purchase price of $ 825 thousand, $ 800 thousand has been allocated to customer list intangible, included in other assets, to be amortized over 6.5 years on a straight line basis. The amortization expense of the customer list intangible for the nine months ended September 30, 2021 was $ 92 thousand. Of the $ 123 thousand to be expensed in 2022 , $ 92 thousand has been expensed for the nine months ended September 30, 2022 . Annual amortization expense of customer list intangible is as follows: (In Thousands) Adams County Financial Resources 2022 $ 123 2023 123 2024 123 2025 123 2026 123 Thereafter 47 $ 662 |
Securities
Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | NOTE 3 SECURITIES Mortgage-backed securities, as shown in the following tables, are all government sponsored enterprises. The amortized cost and fair value of securities, with gross unrealized gains and losses at September 30, 2022 and December 31, 2021, are as follows: (In Thousands) September 30, 2022 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value Available-for-Sale: U.S. Treasury $ 105,219 $ - $ ( 10,057 ) $ 95,162 U.S. Government agencies 154,905 - ( 16,885 ) 138,020 Mortgage-backed securities 104,242 - ( 13,978 ) 90,264 State and local governments 78,888 46 ( 6,895 ) 72,039 Total available-for-sale securities $ 443,254 $ 46 $ ( 47,815 ) $ 395,485 (In Thousands) December 31, 2021 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value Available-for-Sale: U.S. Treasury $ 90,775 $ - $ ( 1,598 ) $ 89,177 U.S. Government agencies 159,673 695 ( 3,482 ) 156,886 Mortgage-backed securities 118,550 839 ( 1,462 ) 117,927 State and local governments 64,964 1,498 ( 521 ) 65,941 Total available-for-sale securities $ 433,962 $ 3,032 $ ( 7,063 ) $ 429,931 Investment securities will at times depreciate to an unrealized loss position. The Company utilizes the following criteria to assess whether impairment is other than temporary. No one item by itself will necessarily signal that a security should be recognized as an other than temporary impairment. 1. The fair value of the security has significantly declined from book value. 2. A downgrade has occurred that lowered the credit rating to below investment grade (below Baa3 by Moody and BBB – by Standard and Poors.) 3. Dividends have been reduced or eliminated or scheduled interest payments have not been made. 4. The underwater security has longer than 10 years to maturity and the loss position had existed for more than 3 years. 5. Management does not possess both the intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. If the impairment is judged to be other than temporary, the cost basis of the individual security shall be written down to fair value, thereby establishing a new cost basis. The new cost basis shall not be changed for subsequent recoveries in fair value. The amount of the write down shall be included in current earnings as a realized loss. The recovery in fair value, if any, shall be recognized in earnings when the security is sold. The table below is presented by category of security and length of time in a continuous loss position. The Company currently does not hold any securities with other than temporary impairment. Information pertaining to securities with gross unrealized losses at September 30, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: (In Thousands) September 30, 2022 Less Than Twelve Months Twelve Months & Over Total Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized Fair Losses Value Losses Value Losses Value U.S. Treasury $ ( 1,522 ) $ 29,827 $ ( 8,535 ) $ 65,335 $ ( 10,057 ) $ 95,162 U.S. Government agencies ( 1,066 ) 22,597 ( 15,819 ) 115,423 ( 16,885 ) 138,020 Mortgage-backed securities ( 3,176 ) 33,338 ( 10,802 ) 56,926 ( 13,978 ) 90,264 State and local governments ( 3,840 ) 51,876 ( 3,055 ) 18,257 ( 6,895 ) 70,133 Total available-for-sale securities $ ( 9,604 ) $ 137,638 $ ( 38,211 ) $ 255,941 $ ( 47,815 ) $ 393,579 (In Thousands) December 31, 2021 Less Than Twelve Months Twelve Months & Over Total Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized Fair Losses Value Losses Value Losses Value U.S. Treasury $ ( 1,598 ) $ 89,177 $ - $ - $ ( 1,598 ) $ 89,177 U.S. Government agencies ( 1,898 ) 86,739 ( 1,584 ) 41,738 ( 3,482 ) 128,477 Mortgage-backed securities ( 1,050 ) 63,157 ( 412 ) 16,434 ( 1,462 ) 79,591 State and local governments ( 296 ) 17,727 ( 225 ) 5,487 ( 521 ) 23,214 Total available-for-sale securities $ ( 4,842 ) $ 256,800 $ ( 2,221 ) $ 63,659 $ ( 7,063 ) $ 320,459 Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality, values have only been impacted by changes in interest rates since the securities were purchased, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date. Below are the gross realized gains and losses for the three and nine months ended September 30, 2022 and September 30, 2021. Three Months Nine Months (In Thousands) (In Thousands) 2022 2021 2022 2021 Gross realized gains $ - $ - $ - $ 293 Gross realized losses - - - - Net realized gains $ - $ - $ - $ 293 Tax expense related to net realized gains $ - $ - $ - $ 62 The net realized gains on sales and related tax expense is a reclassification out of accumulated other comprehensive income (loss). The net realized gains are included in net gains on sale of available-for-sale securities and the related tax expense is included in income taxes in the condensed consolidated statements of income and comprehensive income (loss). The amortized cost and fair value of debt securities at September 30, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (In Thousands) Amortized Cost Fair Value One year or less $ 17,262 $ 16,909 After one year through five years 184,900 168,802 After five years through ten years 131,050 113,882 After ten years 5,800 5,628 Total $ 339,012 $ 305,221 Mortgage-backed securities 104,242 90,264 Total $ 443,254 $ 395,485 Investments with a carrying value of $ 133.0 million and $ 115.0 million at September 30, 2022 and December 31, 2021, respectively, were pledged to secure public deposits and securities sold under repurchase agreements. Other securities include Federal Home Loan Bank of Cincinnati and Indianapolis stock in the amount of $ 6.8 million as of September 30, 2022 and $ 7.3 million as of December 31, 2021 . Other securities also includes Ohio Equity Fund for Housing Limited Partnership funding of $ 1.5 million as of September 30, 2022 out of a total of $ 4.0 million committed and $ 820 thousand as of December 31, 2021 out of a total $ 3.0 million committed. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Loans | NOTE 4 LOANS Loan balances as of September 30, 2022 and December 31, 2021 are summarized below: (In Thousands) Loans: September 30, 2022 December 31, 2021 Consumer Real Estate $ 416,001 $ 395,873 Agricultural Real Estate 205,089 198,343 Agricultural 128,615 118,368 Commercial Real Estate 1,063,661 848,477 Commercial and Industrial 229,388 208,270 Consumer 70,602 57,737 Other 30,662 32,089 2,144,018 1,859,157 Less: Net deferred loan fees and costs ( 1,402 ) ( 1,738 ) 2,142,616 1,857,419 Less: Allowance for loan losses ( 19,990 ) ( 16,242 ) Loans - Net $ 2,122,626 $ 1,841,177 Other loans primarily fund public improvements in the Bank’s service area. The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of September 30, 2022: (In Thousands) Fixed Variable Consumer Real Estate $ 293,912 $ 122,089 Agricultural Real Estate 130,078 75,011 Agricultural 50,658 77,957 Commercial Real Estate 871,664 191,997 Commercial and Industrial 113,171 116,217 Consumer 67,154 3,448 Other 20,862 9,800 As of September 30, 2022 and December 31, 2021 one to four family residential mortgage loans amounting to $ 182.7 million and $ 193.2 million, respectively, have been pledged as security for future loans and existing loans the Bank has received from the Federal Home Loan Bank. Unless listed separately, Other loans are included in the Commercial and Industrial category for the remainder of the tables in this Note 4. The following table represents the contractual aging of the recorded investment (in thousands) in past due loans by portfolio classification of loans as of September 30, 2022 and December 31, 2021, net of deferred loan fees and costs: September 30, 2022 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Consumer Real Estate $ 1,056 $ 167 $ 216 $ 1,439 $ 414,605 $ 416,044 $ - Agricultural Real Estate 189 216 1,550 1,955 202,832 204,787 - Agricultural 435 88 831 1,354 127,464 128,818 - Commercial Real Estate 1 - 180 181 1,061,723 1,061,904 - Commercial and Industrial 203 52 23 278 259,722 260,000 - Consumer 14 45 47 106 70,957 71,063 - Total $ 1,898 $ 568 $ 2,847 $ 5,313 $ 2,137,303 $ 2,142,616 $ - December 31, 2021 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > Consumer Real Estate $ 228 $ - $ 246 $ 474 $ 395,331 $ 395,805 $ - Agricultural Real Estate 436 - - 436 197,597 198,033 - Agricultural - - - - 118,504 118,504 - Commercial Real Estate - - 180 180 846,930 847,110 - Commercial and Industrial 21 131 149 301 239,837 240,138 - Consumer 64 - - 64 57,765 57,829 - Total $ 749 $ 131 $ 575 $ 1,455 $ 1,855,964 $ 1,857,419 $ - The following table presents the recorded investment in nonaccrual loans by class of loans as of September 30, 2022 and December 31, 2021: (In Thousands) September 30, December 31, Consumer Real Estate $ 636 $ 824 Agricultural Real Estate 2,214 6,477 Agricultural 1,334 20 Commercial Real Estate 1,178 600 Commercial & Industrial 57 149 Consumer 51 6 Total $ 5,470 $ 8,076 Following are the characteristics and underwriting criteria for each major type of loan the Bank offers: Consumer Real Estate: Purchase, refinance, or equity financing of one to four family owner occupied dwelling. Success in repayment is subject to borrower’s income, debt level, character in fulfilling payment obligations, employment, and others. Agricultural Real Estate: Purchase of farm real estate or for permanent improvements to the farm real estate. Cash flow from the farm operation is the repayment source and is therefore subject to the financial success of the farm operation. Agricultural: Loans for the production and housing of crops, fruits, vegetables, and livestock or to fund the purchase or re-finance of capital assets such as machinery and equipment and livestock. The production of crops and livestock is especially vulnerable to commodity prices and weather. The vulnerability to commodity prices is offset by the farmer’s ability to hedge their position by the use of various pricing mechanisms. The risk related to weather is often mitigated by crop insurance. Commercial Real Estate: Construction, purchase, and refinance of business purpose real estate. Risks include potential construction delays and overruns, vacancies, collateral value subject to market value fluctuations, interest rate, market demands, borrower’s ability to repay in orderly fashion, and others. The Bank does employ stress testing on higher balance loans to mitigate risk by ensuring the customer’s ability to repay in a changing rate environment before granting loan approval. Commercial and Industrial: Loans to proprietorships, partnerships, limited liability companies or corporations to provide temporary working capital and seasonal loans as well as long term loans for capital asset acquisition. Risks include adequacy of cash flow, reasonableness of projections, financial leverage, economic trends, management ability and estimated capital expenditures during the fiscal year. The Bank does employ stress testing on higher balance loans to mitigate risk by ensuring the customer's ability to repay in a changing rate environment before granting loan approval. Included in commercial loans for September 2022 and December 2021 were Paycheck Protection Program (PPP) loans, administered by the Small Business Administration (SBA), in the amounts of $ 7 thousand and $ 2.9 million, respectively. The PPP provided loans to eligible businesses through financial institutions like the Bank, with loans being eligible for forgiveness of some or all of the principal amount by the SBA if the borrower meets certain requirements. The SBA guarantees repayment of the loans to the Bank if the borrower’s loan is not forgiven and is then not repaid by the customer. Therefore, there is no allowance for loan losses related to these loans. Consumer: Funding for individual and family purposes. Success in repayment is subject to borrower’s income, debt level, character in fulfilling payment obligations, employment, and others. Other: Primarily funds public improvements in the Bank’s service area. Repayment ability is based on the continuance of the taxation revenue as the source of repayment. The Bank uses a nine tier risk rating system to grade its loans. The grade of a loan may change during the life of the loan. The risk ratings are described as follows. 1. Zero (0) Unclassified. Any loan which has not been assigned a classification. 2. One (1) Excellent. Credit to premier customers having the highest credit rating based on an extremely strong financial condition, which compares favorably with industry standards (upper quartile of RMA ratios). Financial statements indicate a sound earnings and financial ratio trend for several years with satisfactory profit margins and excellent liquidity exhibited. Prime credits may also be borrowers with loans fully secured by highly liquid collateral such as traded stocks, bonds, certificates of deposit, savings account, etc. No credit or collateral exceptions exist, and the loan adheres to The Bank's loan policy in every respect. Financing alternatives would be readily available and would qualify for unsecured credit. This rate is summarized by high liquidity, minimum risk, strong ratios, and low handling costs. 3. Two (2) Good. Desirable loans of somewhat less stature than rate 1, but with strong financial statements. Loan supported by financial statements containing strong balance sheets and a history of profitability. Probability of serious financial deterioration is unlikely. Possessing a sound repayment source (and a secondary source), which would allow repayment in a reasonable period of time. Individual loans backed by liquid personal assets, established history and unquestionable character. 4. Three (3) Satisfactory. Satisfactory loans of average or slightly above average risk – having some deficiency or vulnerability to changing economic conditions, but still fully collectible. Projects should normally demonstrate acceptable debt service coverage. There may be some weakness but with offsetting features of other support readily available. Loans that are meeting the terms of repayment. Loans may be rated 3 when there is no recent information on which to base a current risk evaluation and the following conditions apply: At inception, the loan was properly underwritten and did not possess an unwarranted level of credit risk; a. At inception, the loan was secured with collateral possessing a loan-to-value adequate to protect The Bank from loss; b. The loan exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance; c. During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the business is in an industry which is known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk rating is warranted. 5. Four (4) Satisfactory / Monitored. A “4” (Satisfactory/Monitored) risk rating may be established for a loan considered satisfactory but which is of average credit risk due to financial weakness or uncertainty. The loans warrant a higher than average level of monitoring to ensure that weaknesses do not advance. The level of risk in Satisfactory/Monitored classification is considered acceptable and within normal underwriting guidelines, so long as the loan is given management supervision. 6. Five (5) Special Mention. Loans that possess some credit deficiency or potential weakness which deserve close attention, but which do not yet warrant substandard classification. Such loans pose unwarranted financial risk that, if not corrected, could weaken the loan and increase risk in the future. The key distinctions of a 5 (Special Mention) classification are that (1) it is indicative of an unwarranted level of risk, and (2) weaknesses are considered “potential” versus “defined” impairments to the primary source of loan repayment and collateral. 7. Six (6) Substandard. One or more of the following characteristics may be exhibited in loans classified substandard: a. Loans which possess a defined credit weakness and the likelihood that a loan will be paid from the primary source are uncertain. Financial deterioration is underway and very close attention is warranted to ensure that the loan is collected without loss. b. Loans are inadequately protected by the current net worth and paying capacity of the borrower. c. The primary source of repayment is weakened, and The Bank is forced to rely on a secondary source of repayment such as collateral liquidation or guarantees. d. Loans are characterized by the distinct possibility that The Bank will sustain some loss if deficiencies are not corrected. e. Unusual courses of action are needed to maintain a high probability of repayment. f. The borrower is not generating enough cash flow to repay loan principal; however, continues to make interest payments. g. The lender is forced into a subordinate position or unsecured collateral position due to flaws in documentation. h. Loans have been restructured so that payment schedules, terms and collateral represent concessions to the borrower when compared to the normal loan terms. i. The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan. j. There is significant deterioration in the market conditions and the borrower is highly vulnerable to these conditions. 8. Seven (7) Doubtful. One or more of the following characteristics may be exhibited in loans classified Doubtful: a. Loans have all of the weaknesses of those classified as Substandard. Additionally, however, these weaknesses make collection or liquidation in full based on existing conditions improbable. b. The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment. c. The possibility of loss is high, but, because of certain important pending factors which may strengthen the loan, loss classification is deferred until its exact status is known. A Doubtful classification is established deferring the realization of the loss. 9. Eight (8) Loss. Loans are considered uncollectable and of such little value that continuing to carry them as assets on the institution’s financial statements is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. [ Remainder of this page intentionally left blank ] The following table represents the risk category of loans by portfolio class, net of deferred fees and costs, based on the most recent analysis performed as of September 30, 2022 and December 31, 2021: (In Thousands) Agricultural Commercial Commercial Real Estate Agricultural Real Estate and Industrial Other September 30, 2022 1-2 $ 9,608 $ 5,358 $ 14,227 $ 1,195 $ - 3 50,781 33,381 303,291 66,129 11,110 4 127,806 88,476 705,358 155,223 19,552 5 5,024 240 15,322 3,214 - 6 11,568 1,363 23,706 3,577 - 7 - - - - - 8 - - - - - Total $ 204,787 $ 128,818 $ 1,061,904 $ 229,338 $ 30,662 Agricultural Commercial Commercial Real Estate Agricultural Real Estate and Industrial Other December 31, 2021 1-2 $ 8,720 $ 4,178 $ 10,894 $ 4,604 $ - 3 42,180 38,623 238,132 46,547 11,408 4 129,301 75,164 568,038 152,736 20,681 5 4,599 227 14,509 986 - 6 13,233 312 15,537 3,176 - 7 - - - - - 8 - - - - - Total $ 198,033 $ 118,504 $ 847,110 $ 208,049 $ 32,089 For consumer residential real estate, and other, the Company also evaluates credit quality based on the aging status of the loan, as was previously stated, and by payment activity. The following tables present the recorded investment in those classes based on payment activity and assigned risk grading as of September 30, 2022 and December 31, 2021. (In Thousands) Consumer Consumer Real Estate Real Estate September 30, December 31, Grade Pass $ 414,490 $ 392,940 Special Mention (5) 555 1,673 Substandard (6) 999 1,192 Doubtful (7) - - Total $ 416,044 $ 395,805 (In Thousands) Consumer - Credit Consumer - Other September 30, December 31, September 30, December 31, Performing $ 1 $ 3,906 $ 71,003 $ 53,820 Nonperforming - 13 59 90 Total $ 1 $ 3,919 $ 71,062 $ 53,910 Information about impaired loans as of September 30, 2022, December 31, 2021 and September 30, 2021 are as follows: (In Thousands) September 30, 2022 December 31, 2021 September 30, 2021 Impaired loans without a valuation allowance $ 5,835 $ 1,228 $ 2,461 Impaired loans with a valuation allowance 4,918 10,711 9,388 Total impaired loans $ 10,753 $ 11,939 $ 11,849 Valuation allowance related to impaired loans $ 2,436 $ 2,184 $ 2,400 Total non-accrual loans $ 5,470 $ 8,076 $ 6,248 Total loans past-due ninety days or more and $ - $ - $ - Quarter ended average investment in impaired $ 10,662 $ 11,676 $ 11,639 Year to date average investment in impaired $ 11,059 $ 12,247 $ 12,360 There were no additional funds available to be advanced in connection with impaired loans as of September 30, 2022. The Bank had approximately $ 4.0 million of its impaired loans classified as troubled debt restructured (TDR) as of September 30, 2022 , $ 7.6 million as of December 31, 2021 and $ 6.0 million as of September 30, 2021. Modification programs focus on payment pattern changes and/or modified maturity dates with most receiving a combination of the two concessions. The modifications did no t result in the contractual forgiveness of principal. During the third quarter of 2022, three new loans were considered TDR as a result of the continuance of interest only payment modifications. These three loans stem from a single relationship with a borrower. This relationship has a Small Business Administration (SBA) guaranty and consequently the request for the continuance of the interest only period was also approved by the SBA as were previous requests. During the third quarter of 2021, one new loan was considered TDR as a result of being in a deficiency balance upon the sale of property. The loan is set for a 3 year term and 10 year amortization. The ALLL included $ 1.0 million for the specific allocation on the principal balance of this loan. Year to date 2021, there were two new loans considered TDR with two previously reported TDR loans paid off in June 2021. Three Months Pre- Post- Nine Months Pre- Post- September 30, 2022 Number of Modification Modification September 30, 2022 Number of Modification Modification (in thousands) Contracts Outstanding Outstanding (in thousands) Contracts Outstanding Outstanding Troubled Debt Modified in the Recorded Recorded Troubled Debt Modified in the Recorded Recorded Restructurings Last Three Months Investment Investment Restructurings Last Nine Months Investment Investment Commercial Real Estate 1 $ 74 $ 74 Commercial Real Estate 1 $ 74 $ 74 Commercial and 2 1,232 1,232 Commercial and 2 1,232 1,232 Three Months Pre- Post- Nine Months Pre- Post- September 30, 2021 Number of Modification Modification September 30, 2021 Number of Modification Modification (in thousands) Contracts Outstanding Outstanding (in thousands) Contracts Outstanding Outstanding Troubled Debt Modified in the Recorded Recorded Troubled Debt Modified in the Recorded Recorded Restructurings Last Three Months Investment Investment Restructurings Last Nine Months Investment Investment Commercial Real Estate - $ - $ - Commercial Real Estate 1 $ 382 $ 382 Commercial and 1 1,000 1,000 Commercial and 1 1,000 1,000 For the three months ended September 30, 2022 and 2021 , there were no TDRs that subsequently defaulted after modification. For the nine month period ended September 30, 2022 , there were two impaired agriculture real estate loans of $ 4.5 million that were classified as TDR and paid off. For the nine month period ended September 30, 2021, there was one impaired commercial real estate loan of $ 86 thousand and one impaired commercial loan of $ 480 thousand that were classified as TDR paid off as well as three impaired commercial loans of $ 809 thousand that were classified as TDR charged off. For the majority of the Bank’s impaired loans, the Bank will apply the fair value of collateral or use a measurement incorporating the present value of expected future cash flows discounted at the loan’s effective rate of interest. To determine fair value of collateral, collateral asset values securing an impaired loan are periodically evaluated. Maximum time of re-evaluation is every 12 months for chattels and titled vehicles and every two years for real estate. In this process, third party evaluations are obtained. Until such time that updated appraisals are received, the Bank may discount the collateral value used. The Bank uses the following guidelines as stated in policy to determine when to realize a charge-off, whether a partial or full loan balance. A charge-off in whole or in part is realized when unsecured consumer loans, credit card credits and overdraft lines of credit reach 90 days delinquency. At 90 days delinquent, secured consumer loans are charged down to the value of the collateral, if repossession of the collateral is assured and/or in the process of repossession. Consumer mortgage loan deficiencies are charged down upon the sale of the collateral or sooner upon the recognition of collateral deficiency. A broker’s price opinion or appraisal will be completed on all home loans in litigation and any deficiency will be charged off before reaching 150 days delinquent. Commercial and agricultural credits are charged down/allocated at 120 days delinquency, unless an established and approved work-out plan is in place or litigation of the credit will likely result in recovery of the loan balance. Upon notification of bankruptcy, unsecured debt is charged off. Additional charge-off may be realized as further unsecured positions are recognized. The following tables present loans individually evaluated for impairment by class of loans for the three and nine months ended September 30, 2022 and September 30, 2021 and for the year ended December 31, 2021. (In Thousands) QTD QTD QTD Interest Three Months Ended September 30, 2022 Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 624 $ 624 $ - $ 352 $ 1 $ 5 Agricultural Real Estate 2,588 2,693 - 2,467 6 1 Agricultural 1,334 1,334 - 1,309 - - Commercial Real Estate 1,251 1,251 - 1,505 9 14 Commercial and Industrial 21 21 - 63 - - Consumer 17 17 - 17 - - With a specific allowance recorded: Consumer Real Estate - - - - - - Agricultural Real Estate - - - - - - Agricultural - - - - - - Commercial Real Estate 2,936 2,936 500 2,960 39 - Commercial and Industrial 1,982 1,982 1,936 1,989 72 - Consumer - - - - - - Totals: Consumer Real Estate $ 624 $ 624 $ - $ 352 $ 1 $ 5 Agricultural Real Estate $ 2,588 $ 2,693 $ - $ 2,467 $ 6 $ 1 Agricultural $ 1,334 $ 1,334 $ - $ 1,309 $ - $ - Commercial Real Estate $ 4,187 $ 4,187 $ 500 $ 4,465 $ 48 $ 14 Commercial and Industrial $ 2,003 $ 2,003 $ 1,936 $ 2,052 $ 72 $ - Consumer $ 17 $ 17 $ - $ 17 $ - $ - (In Thousands) Interest Year Ended December 31, 2021 Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 604 $ 604 $ - $ 456 $ 5 $ 15 Agricultural Real Estate 423 423 - 1,000 33 - Agricultural - - - 143 18 3 Commercial Real Estate 180 180 - 1,445 70 9 Commercial and Industrial 21 21 - 920 24 158 Consumer - - - 17 - - With a specific allowance recorded: Consumer Real Estate - - - 59 - - Agricultural Real Estate 6,302 6,406 691 5,414 54 - Agricultural 20 20 1 94 - - Commercial Real Estate 3,381 3,381 664 2,199 70 3 Commercial and Industrial 982 982 825 498 17 - Consumer 26 26 3 2 1 - Totals: Consumer Real Estate $ 604 $ 604 $ - $ 515 $ 5 $ 15 Agricultural Real Estate $ 6,725 $ 6,829 $ 691 $ 6,414 $ 87 $ - Agricultural $ 20 $ 20 $ 1 $ 237 $ 18 $ 3 Commercial Real Estate $ 3,561 $ 3,561 $ 664 $ 3,644 $ 140 $ 12 Commercial and Industrial $ 1,003 $ 1,003 $ 825 $ 1,418 $ 41 $ 158 Consumer $ 26 $ 26 $ 3 $ 19 $ 1 $ - (In Thousands) QTD QTD QTD Interest Three Months Ended September 30, 2021 Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 714 $ 714 $ - $ 453 $ 1 $ 3 Agricultural Real Estate 1,207 1,207 - 1,047 19 - Agricultural 130 130 - 130 4 - Commercial Real Estate 180 180 - 2,519 4 1 Commercial and Industrial 215 215 - 525 - 1 Consumer 15 15 - 16 - - With a specific allowance recorded: Consumer Real Estate - - - - - - Agricultural Real Estate 4,844 4,844 636 5,104 4 - Agricultural 117 117 54 117 - - Commercial Real Estate 3,427 3,427 710 1,395 31 - Commercial and Industrial 1,000 1,000 1,000 333 2 - Consumer - - - - - - Totals: Consumer Real Estate $ 714 $ 714 $ - $ 453 $ 1 $ 3 Agricultural Real Estate $ 6,051 $ 6,051 $ 636 $ 6,151 $ 23 $ - Agricultural $ 247 $ 247 $ 54 $ 247 $ 4 $ - Commercial Real Estate $ 3,607 $ 3,607 $ 710 $ 3,914 $ 35 $ 1 Commercial and Industrial $ 1,215 $ 1,215 $ 1,000 $ 858 $ 2 $ 1 Consumer $ 15 $ 15 $ - $ 16 $ - $ - (In Thousands) YTD YTD YTD Interest Nine Months Ended September 30, 2022 Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 624 $ 624 $ - $ 372 $ 3 $ 10 Agricultural Real Estate 2,588 2,693 - 1,953 19 6 Agricultural 1,334 1,334 - 591 - 2 Commercial Real Estate 1,251 1,251 - 1,162 20 33 Commercial and Industrial 21 21 - 175 2 10 Consumer 17 17 - 18 1 - With a specific allowance recorded: Consumer Real Estate - - - - - - Agricultural Real Estate - - - 1,850 - - Agricultural - - - - - - Commercial Real Estate 2,936 2,936 500 3,270 113 - Commercial and Industrial 1,982 1,982 1,936 1,665 138 - Consumer - - - 3 - - Totals: Consumer Real Estate $ 624 $ 624 $ - $ 372 $ 3 $ 10 Agricultural Real Estate $ 2,588 $ 2,693 $ - $ 3,803 $ 19 $ 6 Agricultural $ 1,334 $ 1,334 $ - $ 591 $ - $ 2 Commercial Real Estate $ 4,187 $ 4,187 $ 500 $ 4,432 $ 133 $ 33 Commercial and Industrial $ 2,003 $ 2,003 $ 1,936 $ 1,840 $ 140 $ 10 Consumer $ 17 $ 17 $ - $ 21 $ 1 $ - (In Thousands) YTD YTD YTD Interest Nine Months Ended September 30, 2021 Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 714 $ 714 $ - $ 485 $ 4 $ 10 Agricultural Real Estate 1,207 1,207 - 1,191 53 - Agricultural 130 130 - 161 8 - Commercial Real Estate 180 180 - 1,768 38 7 Commercial and Industrial 215 215 - 1,206 24 4 Consumer 15 15 - 19 1 - With a specific allowance recorded: Consumer Real Estate - - - - - - Agricultural Real Estate 4,844 4,844 636 5,273 15 - Agricultural 117 117 54 123 4 - Commercial Real Estate 3,427 3,427 710 1,800 58 3 Commercial and Industrial 1,000 1,000 1,000 334 2 - Consumer - - - - - - Totals: Consumer Real Estate $ 714 $ 714 $ - $ 485 $ 4 $ 10 Agricultural Real Estate $ 6,051 $ 6,051 $ 636 $ 6,464 $ 68 $ - Agricultural $ 247 $ 247 $ 54 $ 284 $ 12 $ - Commercial Real Estate $ 3,607 $ 3,607 $ 710 $ 3,568 $ 96 $ 10 Commercial and Industrial $ 1,215 $ 1,215 $ 1,000 $ 1,540 $ 26 $ 4 Consumer $ 15 $ 15 $ - $ 19 $ 1 $ - As of September 30, 2022 , the Company had no foreclosed residential real estate property obtained by physical possession and $ 211 thousand of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process according to local jurisdictions. This compares to the Company having $ 159 thousand of foreclosed residential real estate property obtained by physical possession and $ 255 thousand of consumer mortgage loans secured by residential real estate properties for which foreclosure proceeding were in process according to local jurisdictions as of December 31, 2021. As of September 30, 2021 , the Company had $ 167 thousand of foreclosed residential real estate property obtained by physical possession and $ 129 thousand of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings were in process according to local jurisdictions. The Allowance for Loan and Lease Losses (ALLL) has a direct impact on the provision expense. An increase in the ALLL is funded through recoveries and provision expense. The following tables summarize the activities in the allowance for credit losses. (In Thousands) Nine Months Ended Twelve Months Ended September 30, 2022 December 31, 2021 Allowance for Loan & Lease Losses Balance at beginning of year $ 16,242 $ 13,672 Provision for loan loss 3,845 3,444 Loans charged off ( 334 ) ( 1,332 ) Recoveries 237 458 Allowance for Loan & Lease Losses $ 19,990 $ 16,242 Allowance for Unfunded Loan Commitments & $ 1,118 $ 1,041 Total Allowance for Credit Losses $ 21,108 $ 17,283 The Company segregates its ALLL into two reserves: The ALLL and the Allowance for Unfunded Loan Commitments and Letters of Credit (AULC). When combined, these reserves constitute the total Allowance for Credit Losses (ACL). The ALLL does not include an accretable yield of $ 5.8 and $ 7.1 million as of September 30, 2022 and December 31, 2021 , respectively, nor a nonaccretable yield of $ 151 and $ 510 thousand as of September 30, 2022 and December 31, 2021, respectively, related to the acquisitions of Bank of Geneva in 2019 and Ossian State Bank and Perpetual Federal Savings Bank in 2021 as previously discussed in Note 2. The AULC is reported within other liabilities while the ALLL is netted within the loans, net asset line on the Company’s consolidated balance sheet. The ACL presented above represents the full amount of reserves available to absorb possible credit losses. [ Remainder of this page intentionally left blank ] The following table breaks down the activity within ACL for each loan portfolio classification and shows the contribution provided by both the recoveries and the provision along with the reduction of the allowance caused by charge-offs. Additional analysis, presented in thousands, related to the allowance for credit losses for the three and nine months ended September 30, 2022 and September 30, 2021 in addition to the ending balances as of December 31, 2021 is as follows: Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total Three Months Ended September 30, 2022 ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 939 $ 346 $ 754 $ 10,427 $ 5,365 $ 567 $ 1,167 $ 26 $ 19,591 Charge Offs - - - - - ( 123 ) - - ( 123 ) Recoveries 6 - 1 2 8 35 - - 52 Provision (Credit) ( 19 ) 10 1 1,122 297 246 - ( 20 ) 1,637 Other Non-interest expense related to - - - - - - ( 49 ) - ( 49 ) Ending Balance $ 926 $ 356 $ 756 $ 11,551 $ 5,670 $ 725 $ 1,118 $ 6 $ 21,108 Ending balance: individually evaluated $ - $ - $ - $ 500 $ 1,936 $ - $ - $ - $ 2,436 Ending balance: collectively evaluated $ 926 $ 356 $ 756 $ 11,051 $ 3,734 $ 725 $ 1,118 $ 6 $ 18,672 Ending balance: loans acquired with $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 416,044 $ 204,787 $ 128,818 $ 1,061,904 $ 260,000 $ 71,063 $ - $ - $ 2,142,616 Ending balance: individually evaluated $ 624 $ 2,588 $ 1,334 $ 4,187 $ 2,003 $ 17 $ - $ - $ 10,753 Ending balance: collectively evaluated $ 414,951 $ 202,003 $ 127,484 $ 1,057,699 $ 257,948 $ 71,046 $ - $ - $ 2,131,131 Ending balance: loans acquired with $ 469 $ 196 $ - $ 18 $ 49 $ - $ - $ - $ 732 December 31, 2021 Consumer Agricultural Real Estate Agricultural Commercial Real Estate Commercial Consumer Unfunded Unallocated Total ALLOWANCE FOR CREDIT LOSSES: Ending Balance $ 857 $ 1,040 $ 709 $ 9,130 $ 3,847 $ 625 $ 1,041 $ 34 $ 17,283 Ending balance: individually evaluated for $ - $ 691 $ 1 $ 664 $ 825 $ 3 $ - $ - $ 2,184 Ending balance: collectively evaluated for $ 857 $ 349 $ 708 $ 8,466 $ 3,022 $ 622 $ 1,041 $ 34 $ 15,099 Ending balance: loans acquired with deteriorated $ 37 $ - $ - $ - $ - $ - $ - $ - $ 37 FINANCING RECEIVABLES: Ending balance $ 395,805 $ 198,033 $ 118,504 $ 847,110 $ 240,138 $ 57,829 $ - $ - $ 1,857,419 Ending balance: individually evaluated for $ 604 $ 6,725 $ 20 $ 3,561 $ 1,003 $ 26 $ - $ - $ 11,939 Ending balance: collectively evaluated for $ 394,489 $ 191,107 $ 118,484 $ 843,299 $ 238,849 $ 57,803 $ - $ - $ 1,844,031 Ending balance: loans acquired with $ 712 $ 201 $ - $ 250 $ 286 $ - $ - $ - $ 1,449 Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total Three Months Ended September 30, 2021 ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 649 $ 1,217 $ 720 $ 8,831 $ 2,837 $ 613 $ 1,145 $ 220 $ 16,232 Charge Offs ( 2 ) - ( 1 ) - ( 5 ) ( 95 ) - - ( 103 ) Recoveries 3 - 1 3 9 39 - - 55 Provision (Credit) 146 ( 291 ) ( 33 ) ( 469 ) 973 49 - 284 659 Other Non-interest expense related to - - - - - - ( 106 ) - ( 106 ) Ending Balance $ 796 $ 926 $ 687 $ 8,365 $ 3,814 $ 606 $ 1,039 $ 504 $ 16,737 Ending balance: individually evaluated $ - $ 636 $ 54 $ 710 $ 1,000 $ - $ - $ - $ 2,400 Ending balance: collectively evaluated $ 796 $ 290 $ 633 $ 7,655 $ 2,814 $ 606 $ 1,039 $ 504 $ 14,337 Ending balance: loans acquired with $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 202,370 $ 179,051 $ 105,722 $ 727,418 $ 225,382 $ 55,619 $ - $ - $ 1,495,562 Ending balance: individually evaluated $ 714 $ 6,051 $ 247 $ 3,607 $ 1,215 $ 15 $ - $ - $ 11,849 Ending balance: collectively evaluated $ 201,595 $ 173,000 $ 105,475 $ 723,577 $ 223,803 $ 55,604 $ - $ - $ 1,483,054 Ending balance: loans acquired with $ 61 $ - $ - $ 234 $ 364 $ - $ - $ - $ 659 Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total Nine Months Ended September 30, 2022 ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 857 $ 1,040 $ 709 $ 9,130 $ 3,847 $ 625 $ 1,041 $ 34 $ 17,283 Charge Offs - - - - ( 6 ) ( 328 ) - - ( 334 ) Recoveries 15 - 1 7 82 132 - - 237 Provision (Credit) 54 ( 684 ) 46 2,414 1,747 296 - ( 28 ) 3,845 Other Non-interest expense related to - - - - - |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 5 EARNINGS PER SHARE Basic earnings per share are calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities (i.e. unvested restricted stock), not subject to performance based measures. Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding. Application of the two-class method for participating securities results in a more dilutive basic earnings per share as the participating securities are allocated the same amount of income as if they are outstanding for purposes of basic earnings per share. There is no additional potential dilution in calculating diluted earnings per share, therefore basic and diluted earnings per share are the same amounts. Other than the restricted stock plan, the Company has no other employee stock based compensation plans. The Compensation Committee of the Company has determined that it is appropriate to award shares of the common stock of the Company to Outside Directors and Employees that are officers of the Company or the Bank who also serve as Directors of the Company and the Bank as a portion of their retainer for services rendered as Directors of the Company and the Bank. The Committee believes that it is appropriate to award the Directors shares equal to a specific dollar amount, rounded to the nearest whole share on an annual basis commencing on June 5, 2020 and thereafter on the first Friday of June in each year. Directors receive a prorated dollar value of shares for a partial year of service. The value for the shares is to be based upon the closing price for shares on June 4, 2020 and thereafter on the first Thursday in June in each year. On June 4, 2021, ten Directors received approximately $ 6,000 worth of shares which equated to 272 shares while four Directors received a prorated dollar value of shares. On October 1, 2021, a new Director was added as a result of the Perpetual Federal Savings Bank acquisition and received 68 prorated shares worth approximately $ 1,523 . On June 3, 2022, twelve Directors each received $ 10,013 which equated to 240 shares. The use of stock for Directors’ retainer, does not have an effect on diluted earnings per share as it is immediately vested. (in thousands of dollars) (in thousands of dollars) Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Earnings per share Net income $ 8,954 $ 5,920 $ 25,327 $ 15,812 Less: distributed earnings allocated to participating ( 26 ) ( 20 ) ( 67 ) ( 49 ) Less: undistributed earnings allocated to participating ( 42 ) ( 31 ) ( 148 ) ( 77 ) Net earnings available to common shareholders $ 8,886 $ 5,869 $ 25,112 $ 15,686 Weighted average common shares outstanding including 13,083,145 11,209,732 13,071,859 11,199,309 Less: average unvested restricted shares ( 99,838 ) ( 96,197 ) ( 111,209 ) ( 89,075 ) Weighted average common shares outstanding 12,983,307 11,113,535 12,960,650 11,110,234 Basic and diluted earnings per share $ 0.68 $ 0.53 $ 1.94 $ 1.41 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 6 FAIR VALUE OF FINANCIAL INSTRUMENTS Fair values of financial instruments are management's estimate of the values at which the instruments could be exchanged in a transaction between willing parties. These estimates are subjective and may vary significantly from amounts that would be realized in actual transactions. In addition, other significant assets are not considered financial assets including deferred tax assets, premises, equipment and intangibles. Further, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on the fair value estimates and have not been considered in any of the estimates. [ Remainder of this page intentionally left blank ] The estimated fair values, and related carrying or notional amounts, for on and off-balance sheet financial instruments as of September 30, 2022 and December 31, 2021 are reflected below. (In Thousands) September 30, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 70,670 $ 70,670 $ 70,670 $ - $ - Interest-bearing time deposits 5,187 5,187 - 5,187 - Securities - available-for-sale 395,485 395,485 95,162 296,957 3,366 Other securities 8,227 8,227 - - 8,227 Loans held for sale 2,182 2,219 - - 2,219 Loans, net 2,122,626 2,080,950 - - 2,080,950 Interest receivable 9,856 9,856 - - 9,856 Financial Liabilities: Interest bearing deposits $ 1,313,263 $ 1,313,263 $ - $ - $ 1,313,263 Non-interest bearing deposits 506,928 506,928 - 506,928 - Time deposits 462,845 449,985 - - 449,985 Total Deposits 2,283,036 2,270,176 - 506,928 1,763,248 Federal funds purchased and securities sold under 55,802 55,802 - - 55,802 Federal Home Loan Bank advances 102,147 103,588 - - 103,588 Other borrowings 10,000 10,000 - 10,000 - Subordinated notes, net of unamortized issuance costs 34,557 35,003 - 35,003 - Interest payable 787 787 - - 787 (In Thousands) December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 180,823 $ 180,823 $ 180,823 $ - $ - Interest-bearing time deposits 10,913 10,933 - 10,933 - Securities - available-for-sale 429,931 429,931 89,177 335,981 4,773 Other securities 8,162 8,162 - - 8,162 Loans held for sale 7,714 7,844 - - 7,844 Loans, net 1,841,177 1,864,386 - - 1,864,386 Interest receivable 7,209 7,209 - - 7,209 Financial Liabilities: Interest bearing deposits $ 1,248,294 $ 1,248,044 $ - $ - $ 1,248,044 Non-interest bearing deposits 473,689 473,689 - 473,689 - Time deposits 471,479 475,810 - - 475,810 Total Deposits 2,193,462 2,197,543 - 473,689 1,723,854 Federal funds purchased and securities sold under 29,268 29,268 - - 29,268 Federal Home Loan Bank advances 24,065 24,305 - - 24,305 Other borrowings 40,000 40,000 - 40,000 - Subordinated notes, net of unamortized issuance costs 34,471 35,000 - 35,000 - Interest payable 1,125 1,125 - - 1,125 Fair Value Measurements: In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities in active markets that the Company has the ability to access. Available-for-sale securities, when quoted prices are available in an active market, securities are valued using the quoted price and are classified as Level 1. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Available-for-sale securities classified as Level 2 are valued using the prices obtained from an independent pricing service. The prices are not adjusted. Securities of obligations of state and political subdivisions are valued using a type of matrix, or grid, pricing in which securities are benchmarked against the treasury rate based on credit rating. Substantially all assumptions used by the independent pricing service are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. The Bank holds some local municipals that the Bank evaluates based on the credit strength of the underlying project. The fair value is determined by valuing similar credit payment streams at similar rates. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Company's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset. The following summarizes financial assets measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021, segregated by level or the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured at Fair Value on a Recurring Basis (In Thousands) September 30, 2022 Quoted Prices in Significant Significant Assets - (Securities Available-for-Sale) U.S. Treasury $ 95,162 $ - $ - U.S. Government agencies - 138,020 - Mortgage-backed securities - 90,264 - State and local governments - 68,673 3,366 Total Securities Available-for-Sale $ 95,162 $ 296,957 $ 3,366 December 31, 2021 Quoted Prices in Significant Significant Assets - (Securities Available-for-Sale) U.S. Treasury $ 89,177 $ - $ - U.S. Government agencies - 156,886 - Mortgage-backed securities - 117,927 - State and local governments - 61,168 4,773 Total Securities Available-for-Sale $ 89,177 $ 335,981 $ 4,773 The following tables represent the changes in the Level 3 fair-value category of which unobservable inputs are relied upon as of the three and nine month periods ended September 30, 2022 and September 30, 2021 . During the three month period ended March 31, 2022, there was one security transferred from Level 3 to Level 2. (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Balance at July 1, 2022 $ 2,089 $ 1,325 $ 3,414 Change in Market Value ( 19 ) ( 29 ) ( 48 ) Purchases - - - Payments & Maturities - - - Reclassification & Adjustments - - - Balance at September 30, 2022 $ 2,070 $ 1,296 $ 3,366 (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Balance at July 1, 2021 $ 2,410 $ 1,538 $ 3,948 Change in Market Value ( 9 ) ( 17 ) ( 26 ) Purchases - - - Payments & Maturities ( 155 ) - ( 155 ) Reclassification & Adjustments - - - Balance at September 30, 2021 $ 2,246 $ 1,521 $ 3,767 (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Balance at January 1, 2022 $ 2,307 $ 2,466 $ 4,773 Change in Market Value ( 77 ) ( 181 ) ( 258 ) Purchases - - - Payments & Maturities ( 160 ) - ( 160 ) Reclassification & Adjustments - ( 989 ) ( 989 ) Balance at September 30, 2022 $ 2,070 $ 1,296 $ 3,366 (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Balance at January 1, 2021 $ - $ 1,562 $ 1,562 Change in Market Value ( 17 ) ( 41 ) ( 58 ) Purchases 2,418 - 2,418 Payments & Maturities ( 155 ) - ( 155 ) Reclassification & Adjustments - - - Balance at September 30, 2021 $ 2,246 $ 1,521 $ 3,767 Most of the Company's available-for-sale securities, including any bonds issued by local municipalities, have CUSIP numbers or have similar characteristics of those in the municipal markets, making them marketable and comparable as Level 2. The Company also has assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis. At September 30, 2022 and December 31, 2021, such assets consist primarily of collateral dependent impaired loans. Collateral dependent impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The Company estimates the fair value of the loans based on the present value of expected future cash flows using management's best estimate of key assumptions. These assumptions include future payment ability, timing of payment streams, and estimated realizable values of available collateral (typically based on outside appraisals.) At September 30, 2022 and December 31, 2021 , fair value of collateral dependent impaired loans categorized as Level 3 was $ 2.5 million and $ 8.5 million, respectively. The specific allocation for impaired loans was $ 2.4 million and $ 2.2 million as of September 30, 2022 and December 31, 2021, respectively, which are accounted for in the allowance for loan losses (see Note 4). During 2021, impairment was recognized on mortgage servicing rights based upon the independent third party’s quarterly valuations. A valuation allowance was established by strata to quantify the likely impairment of the value of the mortgage servicing rights to the Company. If the carrying amount of an individual strata exceeds the fair value, impairment was recorded on that strata so the servicing asset was carried at fair value. Impairment was $ 1 thousand at September 30, 2022 and $ 414 thousand at December 31, 2021. Other real estate is reported at either the lower of the fair value of the real estate minus the estimated costs to sell the asset or the cost of the asset. The determination of fair value of the real estate relies primarily on appraisals from third parties. If the fair value of the real estate, minus the estimated costs to sell the asset, is less than the asset's cost, the deficiency is recognized as a valuation allowance against the asset through a charge to expense. The valuation allowance is therefore increased or decreased, through charges or credits to expense, for changes in the asset's fair value or estimated selling costs. The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements: (In Thousands) Range Fair Value at (Weighted September 30, 2022 Valuation Technique Unobservable Inputs Average) State and local government $ 3,366 Discounted Cash Flow Credit strength of underlying project or Discount rate 2.13 - 4.59 % ( 3.96 %) Collateral dependent 2,482 Collateral based Discount to reflect current market 20.00 - 23.87 % ( 23.80 %) Mortgage servicing rights 52 Discounted Cash Flow Constant prepayment rate and probability of default / Discount rate 0.09 - 1.85 % ( 1.81 %) Other real estate owned - - Appraisals Discount to reflect current — % (In Thousands) Range Fair Value at (Weighted December 31, 2021 Valuation Technique Unobservable Inputs Average) State and local government $ 4,773 Discounted Cash Flow Credit strength of underlying project or Discount rate 0.21 - 1.77 % ( 1.33 %) Collateral dependent 8,527 Collateral based Discount to reflect current market 20.00 - 53.95 % ( 34.78 %) Mortgage servicing rights 3,157 Discounted Cash Flow Constant prepayment rate and probability of default / Discount rate 1.94 - 27.70 % ( 18.44 %) Other real estate owned - 99 Appraisals Discount to reflect current 32.72 % ( 32.72 %) The following table presents assets measured at fair value on a nonrecurring basis at September 30, 2022 and December 31, 2021: Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2022 (In Thousands) Balance at Quoted Prices Significant Significant Collateral dependent $ 2,482 $ - $ - $ 2,482 Mortgage servicing rights 52 - - 52 Other real estate - - - - Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2021 (In Thousands) Balance at Quoted Prices Significant Significant Collateral dependent $ 8,527 $ - $ - $ 8,527 Mortgage servicing rights 3,157 - - 3,157 Other real estate 99 - - 99 |
Federal Funds Purchased and Sec
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 9 Months Ended |
Sep. 30, 2022 | |
Brokers And Dealers [Abstract] | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | NOTE 7 FEDERAL FUNDS PURCHASED AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE The Company had $ 20.4 million in federal funds purchased as of September 30, 2022 and no federal funds purchased as of December 31, 2021 . During the same time periods, the Company had $ 35.4 million and $ 29.3 million in securities sold under agreement to repurchase. September 30, 2022 Remaining Contractual Maturity of the Agreements (In Thousands) Overnight & Continuous Up to 30 days 30-90 days Greater Than Total Federal funds purchased $ 20,356 $ - $ - $ - $ 20,356 Repurchase agreements US Treasury & agency securities $ 1,359 $ - $ 5,069 $ 29,018 $ 35,446 Total $ 21,715 $ - $ 5,069 $ 29,018 $ 55,802 December 31, 2021 Remaining Contractual Maturity of the Agreements (In Thousands) Overnight & Continuous Up to 30 days 30-90 days Greater Than Total Federal funds purchased $ - $ - $ - $ - $ - Repurchase agreements US Treasury & agency securities $ 1,062 $ - $ 3,900 $ 24,306 $ 29,268 Total $ 1,062 $ - $ 3,900 $ 24,306 $ 29,268 |
Subordinated Notes
Subordinated Notes | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Subordinated Notes | NOTE 8 SUBORDINATED NOTES On July 30, 2021, the Company announced the completion of a private placement of $ 35 million aggregate principal amount of its 3.25 % fixed-to-floating rate subordinated notes due July 30, 2031 (the “Notes”) to various accredited investors (the “Offering”). The price for the Notes was 100 % of the principal amount of the Notes. The Notes qualify as Tier 2 capital for regulatory purposes in proportionate amounts until July 30, 2026. The Company intended to use the net proceeds from the Offering for general corporate purposes, including financing acquisitions and organic growth. Interest on the Notes will accrue at a rate equal to (i) 3.25% per annum from the original issue date to, but excluding, the five-year anniversary, payable semi-annually in arrears, and (ii) a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term SOFR (as defined in the Notes), plus a spread of 263 basis points from and including the five-year anniversary until maturity, payable quarterly in arrears. Beginning on or after the fifth anniversary of the issue date through maturity, the Notes may be redeemed, at the Company’s option, on any scheduled interest payment date. Any redemption will be at a redemption price equal to 100 % of the principal amount of Notes being redeemed, plus accrued and unpaid interest. September 30, 2022 December 31, 2021 (In Thousands) Principal Unamortized Note Issuance Costs Principal Unamortized Note Issuance Costs Subordinated Notes $ 35,000 $ ( 443 ) $ 35,000 $ ( 529 ) |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | NOTE 9 SUBSEQUENT EVENT On June 14, 2022, Farmers & Merchants Bancorp, Inc., an Ohio corporation (“F&M”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Peoples-Sidney Financial Corporation, a Delaware corporation (“PPSF”), which provides for the merger of PPSF with and into F&M (the “Merger”) and the merger of PPSF’s wholly-owned banking subsidiary, Peoples Federal Savings and Loan Association (“Peoples Bank”), with and into F&M’s wholly-owned banking subsidiary, The Farmers & Merchants State Bank (“F&M Bank”). All of the outstanding shares of PPSF’s common stock will be converted into the right to receive the cash or stock consideration as described in, and subject to, the terms and conditions of the Merger Agreement. Based on the closing price of F&M’s common stock on June 14, 2022, of $ 34.28 per share, the transaction value for the shares of common stock and cash to be paid is approximately $ 27 million. The transaction is expected to be a tax-free stock exchange for PPSF’s shareholders who will be receiving F&M’s common stock pursuant to the Merger. Subject to PPSF’s shareholders’ approval of the Merger, regulatory approvals and other customary closing conditions, the parties anticipate completing the Merger in the third or fourth quarter of 2022. A copy of the Merger Agreement is filed as Exhibit 2.1 and incorporated herein by reference. The Boards of Directors of each of F&M and PPSF have approved the Merger Agreement. The members of the Board of Directors of PPSF have entered into a Voting Agreement pursuant to which each of them has agreed to vote their shares of PPSF common stock in favor of the Merger. A copy of the form of Voting Agreement is attached to the Merger Agreement as Exhibit B. Subject to the terms and conditions of the Merger Agreement, upon the completion of the Merger, PPSF shareholders will have the opportunity to elect to receive either 0.6597 shares of FMAO stock or $ 24.00 per share in cash for each PPSF share owned, subject to a requirement under the Merger Agreement that the minimum number of PPSF Shares exchanged for F&M Shares in the Merger shall be no less than 758,566 . Fractional shares of F&M common stock will not be issued in respect of fractional interests arising from the Merger but will be paid in cash pursuant to the Merger Agreement. During the year, the Company incurred third party acquisition related costs of $ 357.1 thousand which are included in the Company's consolidated statement of income for the three and nine months ended September 30, 2022. These expenses are comprised primarily of professional fees and to a lesser extent, SEC filing fees and other costs. The closing of the merger was October 1, 2022, with system conversion slated for December 3-5th. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 10 RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The ASU is effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). FASB subsequently approved a delay in adoption for Smaller Reporting Companies. The Company has completed an analysis to determine that it qualifies as a Smaller Reporting Company. As such, adoption can be postponed until periods beginning after December 15, 2022 (i.e., January 1, 2023, for calendar year entities). Early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company began working with a third-party service provider to review methodology options starting in June 2019. At the end of first quarter 2022, the Company evaluated and refined its methodology and produced a parallel report for the calculation of the ALLL under the ASU guidance. Management continues to refine the methodology as necessary as the Company works towards ASU implementation and adoption. The Company will adopt ASU 2016-13 on January 1, 2023. In March 2022, the FASB issued ASU 2022-02 "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." This ASU eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40 and requires entities to evaluate all receivable modifications under ASC 310-20 to determine whether a modification made to a borrower results in a new loan or a continuation of the existing loan. The amended guidance adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The amended guidance also requires disclosure of current period gross charge-offs by year of origination within the vintage disclosures required by ASC 326. The amended guidance is effective for the Company on January 1, 2023, with early adoption permitted. The Company will adopt ASU 2022-02 on January 1, 2023. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 10 RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The ASU is effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). FASB subsequently approved a delay in adoption for Smaller Reporting Companies. The Company has completed an analysis to determine that it qualifies as a Smaller Reporting Company. As such, adoption can be postponed until periods beginning after December 15, 2022 (i.e., January 1, 2023, for calendar year entities). Early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company began working with a third-party service provider to review methodology options starting in June 2019. At the end of first quarter 2022, the Company evaluated and refined its methodology and produced a parallel report for the calculation of the ALLL under the ASU guidance. Management continues to refine the methodology as necessary as the Company works towards ASU implementation and adoption. The Company will adopt ASU 2016-13 on January 1, 2023. In March 2022, the FASB issued ASU 2022-02 "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." This ASU eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40 and requires entities to evaluate all receivable modifications under ASC 310-20 to determine whether a modification made to a borrower results in a new loan or a continuation of the existing loan. The amended guidance adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The amended guidance also requires disclosure of current period gross charge-offs by year of origination within the vintage disclosures required by ASC 326. The amended guidance is effective for the Company on January 1, 2023, with early adoption permitted. The Company will adopt ASU 2022-02 on January 1, 2023. |
Business Combination and Asse_2
Business Combination and Asset Purchase (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Acquisition [Line Items] | |
Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized | The following table summarizes the consideration paid for Ossian State Bank and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. Fair Value of Consideration Transferred (In Thousands) Cash $ 20,001 Total $ 20,001 Recognized amounts of identifiable assets acquired and liabilities assumed Assets Cash and cash equivalents $ 20,229 Interest-bearing time deposits 20,226 Securities - available-for-sale 30,243 Other securities, at cost 281 Loans, net 52,403 Premises and equipment 494 Goodwill 7,874 Other assets 5,308 Total Assets Purchased $ 137,058 Liabilities Deposits Noninterest bearing $ 34,509 Interest bearing 81,535 Total deposits 116,044 Accrued expenses and other liabilities 1,013 Total Liabilities Assumed $ 117,057 |
Summary of Carrying Amount of Loans | The carrying amount of those loans is included in loans, net on the balance sheet at September 30, 2022. The amounts of loans at April 30, 2021, December 31, 2021 and September 30, 2022 are as follows: (In Thousands) Balance - April 30, 2021 Consumer Real Estate $ 24 Agricultural Real Estate 981 Commercial Real Estate 315 Commercial & Industrial 314 Carrying amount, net of fair value adjustment of $ 325 $ 1,309 Balance - December 31, 2021 Consumer Real Estate $ 22 Agricultural Real Estate - Commercial Real Estate 222 Commercial & Industrial 285 Carrying amount, net of fair value adjustment of $ 321 $ 208 Balance - September 30, 2022 Consumer Real Estate $ 20 Agricultural Real Estate - Commercial Real Estate - Commercial & Industrial - Carrying amount, net of fair value adjustment of $ 10 $ 10 |
Summary of Loans Acquired and Contractually Required Payments Receivable | Loans acquired during 2021 for which it was probable at acquisition that all contractually required payments would not be collected are as follows: (In Thousands) Contractually required payments receivable at acquisition Consumer Real Estate $ 28 Agricultural Real Estate 1,142 Commercial Real Estate 527 Commercial & Industrial 360 Total required payments receivable $ 2,057 Cash flows expected to be collected at acquisition $ 1,309 Basis in acquired loans at acquisition $ 1,634 |
Summary of Changes in Accretable Yield or Income Expected to be Collected | Changes in accretable yield, or income expected to be collected, for the three and nine months ended are as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (In Thousands) (In Thousands) (In Thousands) (In Thousands) Beginning Balance $ 994 $ 1,439 $ 1,198 $ 1,653 Additions 2 3 10 8 Accretion ( 107 ) ( 108 ) ( 319 ) ( 323 ) Reclassification from nonaccretable difference - - - - Disposals - - - ( 4 ) Ending Balance $ 889 $ 1,334 $ 889 $ 1,334 |
Schedule of Pro-forma Results | The following schedule includes pro-forma results for the three and nine months ended September 30, 2022 and 2021 as if the Ossian State Bank and Perpetual Federal Savings Bank acquisitions had occurred as of the beginning of the comparable prior reporting period. (in thousands of dollars, except per share data) (in thousands of dollars, except per share data) Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Summary of Operations Net Interest Income - Before Provision for Loan Losses $ 22,583 $ 22,124 $ 64,230 $ 61,019 Provision for Loan Losses 1,637 659 3,845 3,001 Net Interest Income After Provision for Loan Losses 20,946 21,465 60,385 58,018 Noninterest Income 3,732 4,664 11,394 14,031 Noninterest Expense 12,941 14,167 39,668 41,436 Income Before Income Taxes 11,737 11,962 32,111 30,613 Income Taxes 2,320 2,433 6,321 6,101 Net Income $ 9,417 $ 9,529 $ 25,790 $ 24,512 Basic and Diluted Earnings Per Share $ 0.72 $ 0.73 $ 1.97 $ 1.88 |
Schedule of Annual Amortization of Core Deposit Intangible Assets | Annual amortization of core deposit intangible assets is as follows: (In Thousands) Geneva Ossian Perpetual Total 2022 $ 560 $ 140 $ 95 $ 795 2023 560 140 95 795 2024 560 140 95 795 2025 560 140 95 795 2026 - 140 95 235 Thereafter - 187 169 356 $ 2,240 $ 887 $ 644 3,771 |
Customer Lists [Member] | |
Business Acquisition [Line Items] | |
Schedule of Annual Amortization of Core Deposit Intangible Assets | Annual amortization expense of customer list intangible is as follows: (In Thousands) Adams County Financial Resources 2022 $ 123 2023 123 2024 123 2025 123 2026 123 Thereafter 47 $ 662 |
Perpetual Federal Savings Bank [Member] | |
Business Acquisition [Line Items] | |
Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized | The following table summarizes the consideration paid for Perpetual Federal Savings Bank and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. Fair Value of Consideration Transferred (In Thousands) Cash $ 59,234 Common Shares 41,078 Total $ 100,312 Recognized amounts of identifiable assets acquired and liabilities assumed Assets Cash and cash equivalents $ 44,975 Federal funds sold 1,672 Interest-bearing time deposits 6,250 Other securities, at cost 2,794 Loans, net 334,661 Premises and equipment 615 Goodwill 25,220 Other assets 3,975 Total Assets Purchased $ 420,162 Liabilities Deposits Noninterest bearing $ 2,018 Interest bearing 309,090 Total deposits 311,108 Federal Home Loan Bank (FHLB) advances 6,218 Accrued expenses and other liabilities 2,524 Total Liabilities Assumed $ 319,850 |
Summary of Carrying Amount of Loans | The carrying amount of those loans is included in loans, net on the balance sheet at September 30, 2022. The amounts of loans at October 1, 2021, December 31, 2021 and September 30, 2022 are as follows: (In Thousands) Balance - October 1, 2021 Consumer Real Estate $ 608 Agricultural Real Estate 118 Commercial Real Estate 234 Commercial & Industrial 5 Carrying amount, net of fair value adjustment of $ 237 $ 728 Balance - December 31, 2021 Consumer Real Estate $ 581 Agricultural Real Estate 114 Commercial Real Estate 5 Commercial & Industrial - Carrying amount, net of fair value adjustment of $ 190 $ 510 Balance - September 30, 2022 Consumer Real Estate $ 336 Agricultural Real Estate 108 Commercial Real Estate - Commercial & Industrial - Carrying amount, net of fair value adjustment of $ 141 $ 303 |
Summary of Loans Acquired and Contractually Required Payments Receivable | Loans acquired during 2021 for which it was probable at acquisition that all contractually required payments would not be collected are as follows: (In Thousands) Contractually required payments receivable at acquisition Consumer Real Estate $ 962 Agricultural Real Estate 146 Commercial Real Estate 293 Commercial & Industrial 6 Total required payments receivable $ 1,407 Cash flows expected to be collected at acquisition $ 728 Basis in acquired loans at acquisition $ 965 |
Summary of Changes in Accretable Yield or Income Expected to be Collected | Changes in accretable yield, or income expected to be collected, are as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (In Thousands) (In Thousands) (In Thousands) (In Thousands) Beginning Balance $ 4,710 $ - $ 5,262 $ - Additions 28 - 125 - Accretion ( 330 ) - ( 979 ) - Reclassification from nonaccretable difference - - - - Disposals ( 2 ) - ( 2 ) - Ending Balance $ 4,406 $ - $ 4,406 $ - |
Ossian Financial Services, Inc. [Member] | |
Business Acquisition [Line Items] | |
Summary of Changes in Accretable Yield or Income Expected to be Collected | Changes in accretable yield, or income expected to be collected, are as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (In Thousands) (In Thousands) (In Thousands) (In Thousands) Beginning Balance $ 557 $ 733 $ 645 $ - Additions 1 - 1 762 Accretion ( 44 ) ( 44 ) ( 132 ) ( 73 ) Reclassification from nonaccretable difference - - - - Disposals - - - - Ending Balance $ 514 $ 689 $ 514 $ 689 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments Debt And Equity Securities [Abstract] | |
Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses | The amortized cost and fair value of securities, with gross unrealized gains and losses at September 30, 2022 and December 31, 2021, are as follows: (In Thousands) September 30, 2022 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value Available-for-Sale: U.S. Treasury $ 105,219 $ - $ ( 10,057 ) $ 95,162 U.S. Government agencies 154,905 - ( 16,885 ) 138,020 Mortgage-backed securities 104,242 - ( 13,978 ) 90,264 State and local governments 78,888 46 ( 6,895 ) 72,039 Total available-for-sale securities $ 443,254 $ 46 $ ( 47,815 ) $ 395,485 (In Thousands) December 31, 2021 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value Available-for-Sale: U.S. Treasury $ 90,775 $ - $ ( 1,598 ) $ 89,177 U.S. Government agencies 159,673 695 ( 3,482 ) 156,886 Mortgage-backed securities 118,550 839 ( 1,462 ) 117,927 State and local governments 64,964 1,498 ( 521 ) 65,941 Total available-for-sale securities $ 433,962 $ 3,032 $ ( 7,063 ) $ 429,931 |
Gross Unrealized Losses, Aggregated by Investment Category and Length of Time | Information pertaining to securities with gross unrealized losses at September 30, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: (In Thousands) September 30, 2022 Less Than Twelve Months Twelve Months & Over Total Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized Fair Losses Value Losses Value Losses Value U.S. Treasury $ ( 1,522 ) $ 29,827 $ ( 8,535 ) $ 65,335 $ ( 10,057 ) $ 95,162 U.S. Government agencies ( 1,066 ) 22,597 ( 15,819 ) 115,423 ( 16,885 ) 138,020 Mortgage-backed securities ( 3,176 ) 33,338 ( 10,802 ) 56,926 ( 13,978 ) 90,264 State and local governments ( 3,840 ) 51,876 ( 3,055 ) 18,257 ( 6,895 ) 70,133 Total available-for-sale securities $ ( 9,604 ) $ 137,638 $ ( 38,211 ) $ 255,941 $ ( 47,815 ) $ 393,579 (In Thousands) December 31, 2021 Less Than Twelve Months Twelve Months & Over Total Gross Unrealized Fair Gross Unrealized Fair Gross Unrealized Fair Losses Value Losses Value Losses Value U.S. Treasury $ ( 1,598 ) $ 89,177 $ - $ - $ ( 1,598 ) $ 89,177 U.S. Government agencies ( 1,898 ) 86,739 ( 1,584 ) 41,738 ( 3,482 ) 128,477 Mortgage-backed securities ( 1,050 ) 63,157 ( 412 ) 16,434 ( 1,462 ) 79,591 State and local governments ( 296 ) 17,727 ( 225 ) 5,487 ( 521 ) 23,214 Total available-for-sale securities $ ( 4,842 ) $ 256,800 $ ( 2,221 ) $ 63,659 $ ( 7,063 ) $ 320,459 |
Gross Realized Gains and Losses | Below are the gross realized gains and losses for the three and nine months ended September 30, 2022 and September 30, 2021. Three Months Nine Months (In Thousands) (In Thousands) 2022 2021 2022 2021 Gross realized gains $ - $ - $ - $ 293 Gross realized losses - - - - Net realized gains $ - $ - $ - $ 293 Tax expense related to net realized gains $ - $ - $ - $ 62 |
Amortized Cost and Fair Value of Debt Securities, by Contractual Maturity | The amortized cost and fair value of debt securities at September 30, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (In Thousands) Amortized Cost Fair Value One year or less $ 17,262 $ 16,909 After one year through five years 184,900 168,802 After five years through ten years 131,050 113,882 After ten years 5,800 5,628 Total $ 339,012 $ 305,221 Mortgage-backed securities 104,242 90,264 Total $ 443,254 $ 395,485 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Loans | Loan balances as of September 30, 2022 and December 31, 2021 are summarized below: (In Thousands) Loans: September 30, 2022 December 31, 2021 Consumer Real Estate $ 416,001 $ 395,873 Agricultural Real Estate 205,089 198,343 Agricultural 128,615 118,368 Commercial Real Estate 1,063,661 848,477 Commercial and Industrial 229,388 208,270 Consumer 70,602 57,737 Other 30,662 32,089 2,144,018 1,859,157 Less: Net deferred loan fees and costs ( 1,402 ) ( 1,738 ) 2,142,616 1,857,419 Less: Allowance for loan losses ( 19,990 ) ( 16,242 ) Loans - Net $ 2,122,626 $ 1,841,177 |
Distribution of Fixed Rate Loans and Variable Rate Loans by Major Loan Category | The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of September 30, 2022: (In Thousands) Fixed Variable Consumer Real Estate $ 293,912 $ 122,089 Agricultural Real Estate 130,078 75,011 Agricultural 50,658 77,957 Commercial Real Estate 871,664 191,997 Commercial and Industrial 113,171 116,217 Consumer 67,154 3,448 Other 20,862 9,800 |
Contractual Aging of Recorded Investment in Past Due Loans by Portfolio Classification of Loans | The following table represents the contractual aging of the recorded investment (in thousands) in past due loans by portfolio classification of loans as of September 30, 2022 and December 31, 2021, net of deferred loan fees and costs: September 30, 2022 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Consumer Real Estate $ 1,056 $ 167 $ 216 $ 1,439 $ 414,605 $ 416,044 $ - Agricultural Real Estate 189 216 1,550 1,955 202,832 204,787 - Agricultural 435 88 831 1,354 127,464 128,818 - Commercial Real Estate 1 - 180 181 1,061,723 1,061,904 - Commercial and Industrial 203 52 23 278 259,722 260,000 - Consumer 14 45 47 106 70,957 71,063 - Total $ 1,898 $ 568 $ 2,847 $ 5,313 $ 2,137,303 $ 2,142,616 $ - December 31, 2021 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > Consumer Real Estate $ 228 $ - $ 246 $ 474 $ 395,331 $ 395,805 $ - Agricultural Real Estate 436 - - 436 197,597 198,033 - Agricultural - - - - 118,504 118,504 - Commercial Real Estate - - 180 180 846,930 847,110 - Commercial and Industrial 21 131 149 301 239,837 240,138 - Consumer 64 - - 64 57,765 57,829 - Total $ 749 $ 131 $ 575 $ 1,455 $ 1,855,964 $ 1,857,419 $ - |
Recorded Investment in Nonaccrual Loans by Portfolio Class of Loans | The following table presents the recorded investment in nonaccrual loans by class of loans as of September 30, 2022 and December 31, 2021: (In Thousands) September 30, December 31, Consumer Real Estate $ 636 $ 824 Agricultural Real Estate 2,214 6,477 Agricultural 1,334 20 Commercial Real Estate 1,178 600 Commercial & Industrial 57 149 Consumer 51 6 Total $ 5,470 $ 8,076 |
Risk Category of Loans by Portfolio Class | The following table represents the risk category of loans by portfolio class, net of deferred fees and costs, based on the most recent analysis performed as of September 30, 2022 and December 31, 2021: (In Thousands) Agricultural Commercial Commercial Real Estate Agricultural Real Estate and Industrial Other September 30, 2022 1-2 $ 9,608 $ 5,358 $ 14,227 $ 1,195 $ - 3 50,781 33,381 303,291 66,129 11,110 4 127,806 88,476 705,358 155,223 19,552 5 5,024 240 15,322 3,214 - 6 11,568 1,363 23,706 3,577 - 7 - - - - - 8 - - - - - Total $ 204,787 $ 128,818 $ 1,061,904 $ 229,338 $ 30,662 Agricultural Commercial Commercial Real Estate Agricultural Real Estate and Industrial Other December 31, 2021 1-2 $ 8,720 $ 4,178 $ 10,894 $ 4,604 $ - 3 42,180 38,623 238,132 46,547 11,408 4 129,301 75,164 568,038 152,736 20,681 5 4,599 227 14,509 986 - 6 13,233 312 15,537 3,176 - 7 - - - - - 8 - - - - - Total $ 198,033 $ 118,504 $ 847,110 $ 208,049 $ 32,089 |
Recorded Investment for Consumer Loans, Credit Quality based on Status of Loan and Payment Activity | The following tables present the recorded investment in those classes based on payment activity and assigned risk grading as of September 30, 2022 and December 31, 2021. (In Thousands) Consumer Consumer Real Estate Real Estate September 30, December 31, Grade Pass $ 414,490 $ 392,940 Special Mention (5) 555 1,673 Substandard (6) 999 1,192 Doubtful (7) - - Total $ 416,044 $ 395,805 (In Thousands) Consumer - Credit Consumer - Other September 30, December 31, September 30, December 31, Performing $ 1 $ 3,906 $ 71,003 $ 53,820 Nonperforming - 13 59 90 Total $ 1 $ 3,919 $ 71,062 $ 53,910 |
Schedule of Impaired Loans | Information about impaired loans as of September 30, 2022, December 31, 2021 and September 30, 2021 are as follows: (In Thousands) September 30, 2022 December 31, 2021 September 30, 2021 Impaired loans without a valuation allowance $ 5,835 $ 1,228 $ 2,461 Impaired loans with a valuation allowance 4,918 10,711 9,388 Total impaired loans $ 10,753 $ 11,939 $ 11,849 Valuation allowance related to impaired loans $ 2,436 $ 2,184 $ 2,400 Total non-accrual loans $ 5,470 $ 8,076 $ 6,248 Total loans past-due ninety days or more and $ - $ - $ - Quarter ended average investment in impaired $ 10,662 $ 11,676 $ 11,639 Year to date average investment in impaired $ 11,059 $ 12,247 $ 12,360 |
Impaired Loans Classified as Troubled Debt Restructured | Three Months Pre- Post- Nine Months Pre- Post- September 30, 2022 Number of Modification Modification September 30, 2022 Number of Modification Modification (in thousands) Contracts Outstanding Outstanding (in thousands) Contracts Outstanding Outstanding Troubled Debt Modified in the Recorded Recorded Troubled Debt Modified in the Recorded Recorded Restructurings Last Three Months Investment Investment Restructurings Last Nine Months Investment Investment Commercial Real Estate 1 $ 74 $ 74 Commercial Real Estate 1 $ 74 $ 74 Commercial and 2 1,232 1,232 Commercial and 2 1,232 1,232 Three Months Pre- Post- Nine Months Pre- Post- September 30, 2021 Number of Modification Modification September 30, 2021 Number of Modification Modification (in thousands) Contracts Outstanding Outstanding (in thousands) Contracts Outstanding Outstanding Troubled Debt Modified in the Recorded Recorded Troubled Debt Modified in the Recorded Recorded Restructurings Last Three Months Investment Investment Restructurings Last Nine Months Investment Investment Commercial Real Estate - $ - $ - Commercial Real Estate 1 $ 382 $ 382 Commercial and 1 1,000 1,000 Commercial and 1 1,000 1,000 For the three months ended |
Loans Individually Evaluated for Impairment by Portfolio Class of Loans | The following tables present loans individually evaluated for impairment by class of loans for the three and nine months ended September 30, 2022 and September 30, 2021 and for the year ended December 31, 2021. (In Thousands) QTD QTD QTD Interest Three Months Ended September 30, 2022 Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 624 $ 624 $ - $ 352 $ 1 $ 5 Agricultural Real Estate 2,588 2,693 - 2,467 6 1 Agricultural 1,334 1,334 - 1,309 - - Commercial Real Estate 1,251 1,251 - 1,505 9 14 Commercial and Industrial 21 21 - 63 - - Consumer 17 17 - 17 - - With a specific allowance recorded: Consumer Real Estate - - - - - - Agricultural Real Estate - - - - - - Agricultural - - - - - - Commercial Real Estate 2,936 2,936 500 2,960 39 - Commercial and Industrial 1,982 1,982 1,936 1,989 72 - Consumer - - - - - - Totals: Consumer Real Estate $ 624 $ 624 $ - $ 352 $ 1 $ 5 Agricultural Real Estate $ 2,588 $ 2,693 $ - $ 2,467 $ 6 $ 1 Agricultural $ 1,334 $ 1,334 $ - $ 1,309 $ - $ - Commercial Real Estate $ 4,187 $ 4,187 $ 500 $ 4,465 $ 48 $ 14 Commercial and Industrial $ 2,003 $ 2,003 $ 1,936 $ 2,052 $ 72 $ - Consumer $ 17 $ 17 $ - $ 17 $ - $ - (In Thousands) Interest Year Ended December 31, 2021 Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 604 $ 604 $ - $ 456 $ 5 $ 15 Agricultural Real Estate 423 423 - 1,000 33 - Agricultural - - - 143 18 3 Commercial Real Estate 180 180 - 1,445 70 9 Commercial and Industrial 21 21 - 920 24 158 Consumer - - - 17 - - With a specific allowance recorded: Consumer Real Estate - - - 59 - - Agricultural Real Estate 6,302 6,406 691 5,414 54 - Agricultural 20 20 1 94 - - Commercial Real Estate 3,381 3,381 664 2,199 70 3 Commercial and Industrial 982 982 825 498 17 - Consumer 26 26 3 2 1 - Totals: Consumer Real Estate $ 604 $ 604 $ - $ 515 $ 5 $ 15 Agricultural Real Estate $ 6,725 $ 6,829 $ 691 $ 6,414 $ 87 $ - Agricultural $ 20 $ 20 $ 1 $ 237 $ 18 $ 3 Commercial Real Estate $ 3,561 $ 3,561 $ 664 $ 3,644 $ 140 $ 12 Commercial and Industrial $ 1,003 $ 1,003 $ 825 $ 1,418 $ 41 $ 158 Consumer $ 26 $ 26 $ 3 $ 19 $ 1 $ - (In Thousands) QTD QTD QTD Interest Three Months Ended September 30, 2021 Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 714 $ 714 $ - $ 453 $ 1 $ 3 Agricultural Real Estate 1,207 1,207 - 1,047 19 - Agricultural 130 130 - 130 4 - Commercial Real Estate 180 180 - 2,519 4 1 Commercial and Industrial 215 215 - 525 - 1 Consumer 15 15 - 16 - - With a specific allowance recorded: Consumer Real Estate - - - - - - Agricultural Real Estate 4,844 4,844 636 5,104 4 - Agricultural 117 117 54 117 - - Commercial Real Estate 3,427 3,427 710 1,395 31 - Commercial and Industrial 1,000 1,000 1,000 333 2 - Consumer - - - - - - Totals: Consumer Real Estate $ 714 $ 714 $ - $ 453 $ 1 $ 3 Agricultural Real Estate $ 6,051 $ 6,051 $ 636 $ 6,151 $ 23 $ - Agricultural $ 247 $ 247 $ 54 $ 247 $ 4 $ - Commercial Real Estate $ 3,607 $ 3,607 $ 710 $ 3,914 $ 35 $ 1 Commercial and Industrial $ 1,215 $ 1,215 $ 1,000 $ 858 $ 2 $ 1 Consumer $ 15 $ 15 $ - $ 16 $ - $ - (In Thousands) YTD YTD YTD Interest Nine Months Ended September 30, 2022 Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 624 $ 624 $ - $ 372 $ 3 $ 10 Agricultural Real Estate 2,588 2,693 - 1,953 19 6 Agricultural 1,334 1,334 - 591 - 2 Commercial Real Estate 1,251 1,251 - 1,162 20 33 Commercial and Industrial 21 21 - 175 2 10 Consumer 17 17 - 18 1 - With a specific allowance recorded: Consumer Real Estate - - - - - - Agricultural Real Estate - - - 1,850 - - Agricultural - - - - - - Commercial Real Estate 2,936 2,936 500 3,270 113 - Commercial and Industrial 1,982 1,982 1,936 1,665 138 - Consumer - - - 3 - - Totals: Consumer Real Estate $ 624 $ 624 $ - $ 372 $ 3 $ 10 Agricultural Real Estate $ 2,588 $ 2,693 $ - $ 3,803 $ 19 $ 6 Agricultural $ 1,334 $ 1,334 $ - $ 591 $ - $ 2 Commercial Real Estate $ 4,187 $ 4,187 $ 500 $ 4,432 $ 133 $ 33 Commercial and Industrial $ 2,003 $ 2,003 $ 1,936 $ 1,840 $ 140 $ 10 Consumer $ 17 $ 17 $ - $ 21 $ 1 $ - (In Thousands) YTD YTD YTD Interest Nine Months Ended September 30, 2021 Unpaid Average Interest Income Recorded Principal Related Recorded Income Recognized Investment Balance Allowance Investment Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 714 $ 714 $ - $ 485 $ 4 $ 10 Agricultural Real Estate 1,207 1,207 - 1,191 53 - Agricultural 130 130 - 161 8 - Commercial Real Estate 180 180 - 1,768 38 7 Commercial and Industrial 215 215 - 1,206 24 4 Consumer 15 15 - 19 1 - With a specific allowance recorded: Consumer Real Estate - - - - - - Agricultural Real Estate 4,844 4,844 636 5,273 15 - Agricultural 117 117 54 123 4 - Commercial Real Estate 3,427 3,427 710 1,800 58 3 Commercial and Industrial 1,000 1,000 1,000 334 2 - Consumer - - - - - - Totals: Consumer Real Estate $ 714 $ 714 $ - $ 485 $ 4 $ 10 Agricultural Real Estate $ 6,051 $ 6,051 $ 636 $ 6,464 $ 68 $ - Agricultural $ 247 $ 247 $ 54 $ 284 $ 12 $ - Commercial Real Estate $ 3,607 $ 3,607 $ 710 $ 3,568 $ 96 $ 10 Commercial and Industrial $ 1,215 $ 1,215 $ 1,000 $ 1,540 $ 26 $ 4 Consumer $ 15 $ 15 $ - $ 19 $ 1 $ - |
Summary of Activities in Allowance for Credit Losses | The following tables summarize the activities in the allowance for credit losses. (In Thousands) Nine Months Ended Twelve Months Ended September 30, 2022 December 31, 2021 Allowance for Loan & Lease Losses Balance at beginning of year $ 16,242 $ 13,672 Provision for loan loss 3,845 3,444 Loans charged off ( 334 ) ( 1,332 ) Recoveries 237 458 Allowance for Loan & Lease Losses $ 19,990 $ 16,242 Allowance for Unfunded Loan Commitments & $ 1,118 $ 1,041 Total Allowance for Credit Losses $ 21,108 $ 17,283 |
Analysis of Allowance for Credit Losses | Additional analysis, presented in thousands, related to the allowance for credit losses for the three and nine months ended September 30, 2022 and September 30, 2021 in addition to the ending balances as of December 31, 2021 is as follows: Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total Three Months Ended September 30, 2022 ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 939 $ 346 $ 754 $ 10,427 $ 5,365 $ 567 $ 1,167 $ 26 $ 19,591 Charge Offs - - - - - ( 123 ) - - ( 123 ) Recoveries 6 - 1 2 8 35 - - 52 Provision (Credit) ( 19 ) 10 1 1,122 297 246 - ( 20 ) 1,637 Other Non-interest expense related to - - - - - - ( 49 ) - ( 49 ) Ending Balance $ 926 $ 356 $ 756 $ 11,551 $ 5,670 $ 725 $ 1,118 $ 6 $ 21,108 Ending balance: individually evaluated $ - $ - $ - $ 500 $ 1,936 $ - $ - $ - $ 2,436 Ending balance: collectively evaluated $ 926 $ 356 $ 756 $ 11,051 $ 3,734 $ 725 $ 1,118 $ 6 $ 18,672 Ending balance: loans acquired with $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 416,044 $ 204,787 $ 128,818 $ 1,061,904 $ 260,000 $ 71,063 $ - $ - $ 2,142,616 Ending balance: individually evaluated $ 624 $ 2,588 $ 1,334 $ 4,187 $ 2,003 $ 17 $ - $ - $ 10,753 Ending balance: collectively evaluated $ 414,951 $ 202,003 $ 127,484 $ 1,057,699 $ 257,948 $ 71,046 $ - $ - $ 2,131,131 Ending balance: loans acquired with $ 469 $ 196 $ - $ 18 $ 49 $ - $ - $ - $ 732 December 31, 2021 Consumer Agricultural Real Estate Agricultural Commercial Real Estate Commercial Consumer Unfunded Unallocated Total ALLOWANCE FOR CREDIT LOSSES: Ending Balance $ 857 $ 1,040 $ 709 $ 9,130 $ 3,847 $ 625 $ 1,041 $ 34 $ 17,283 Ending balance: individually evaluated for $ - $ 691 $ 1 $ 664 $ 825 $ 3 $ - $ - $ 2,184 Ending balance: collectively evaluated for $ 857 $ 349 $ 708 $ 8,466 $ 3,022 $ 622 $ 1,041 $ 34 $ 15,099 Ending balance: loans acquired with deteriorated $ 37 $ - $ - $ - $ - $ - $ - $ - $ 37 FINANCING RECEIVABLES: Ending balance $ 395,805 $ 198,033 $ 118,504 $ 847,110 $ 240,138 $ 57,829 $ - $ - $ 1,857,419 Ending balance: individually evaluated for $ 604 $ 6,725 $ 20 $ 3,561 $ 1,003 $ 26 $ - $ - $ 11,939 Ending balance: collectively evaluated for $ 394,489 $ 191,107 $ 118,484 $ 843,299 $ 238,849 $ 57,803 $ - $ - $ 1,844,031 Ending balance: loans acquired with $ 712 $ 201 $ - $ 250 $ 286 $ - $ - $ - $ 1,449 Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total Three Months Ended September 30, 2021 ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 649 $ 1,217 $ 720 $ 8,831 $ 2,837 $ 613 $ 1,145 $ 220 $ 16,232 Charge Offs ( 2 ) - ( 1 ) - ( 5 ) ( 95 ) - - ( 103 ) Recoveries 3 - 1 3 9 39 - - 55 Provision (Credit) 146 ( 291 ) ( 33 ) ( 469 ) 973 49 - 284 659 Other Non-interest expense related to - - - - - - ( 106 ) - ( 106 ) Ending Balance $ 796 $ 926 $ 687 $ 8,365 $ 3,814 $ 606 $ 1,039 $ 504 $ 16,737 Ending balance: individually evaluated $ - $ 636 $ 54 $ 710 $ 1,000 $ - $ - $ - $ 2,400 Ending balance: collectively evaluated $ 796 $ 290 $ 633 $ 7,655 $ 2,814 $ 606 $ 1,039 $ 504 $ 14,337 Ending balance: loans acquired with $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 202,370 $ 179,051 $ 105,722 $ 727,418 $ 225,382 $ 55,619 $ - $ - $ 1,495,562 Ending balance: individually evaluated $ 714 $ 6,051 $ 247 $ 3,607 $ 1,215 $ 15 $ - $ - $ 11,849 Ending balance: collectively evaluated $ 201,595 $ 173,000 $ 105,475 $ 723,577 $ 223,803 $ 55,604 $ - $ - $ 1,483,054 Ending balance: loans acquired with $ 61 $ - $ - $ 234 $ 364 $ - $ - $ - $ 659 Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total Nine Months Ended September 30, 2022 ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 857 $ 1,040 $ 709 $ 9,130 $ 3,847 $ 625 $ 1,041 $ 34 $ 17,283 Charge Offs - - - - ( 6 ) ( 328 ) - - ( 334 ) Recoveries 15 - 1 7 82 132 - - 237 Provision (Credit) 54 ( 684 ) 46 2,414 1,747 296 - ( 28 ) 3,845 Other Non-interest expense related to - - - - - - 77 - 77 Ending Balance $ 926 $ 356 $ 756 $ 11,551 $ 5,670 $ 725 $ 1,118 $ 6 $ 21,108 Ending balance: individually evaluated $ - $ - $ - $ 500 $ 1,936 $ - $ - $ - $ 2,436 Ending balance: collectively evaluated $ 926 $ 356 $ 756 $ 11,051 $ 3,734 $ 725 $ 1,118 $ 6 $ 18,672 Ending balance: loans acquired with $ - FINANCING RECEIVABLES: Ending balance $ 416,044 $ 204,787 $ 128,818 $ 1,061,904 $ 260,000 $ 71,063 $ - $ - $ 2,142,616 Ending balance: individually evaluated $ 624 $ 2,588 $ 1,334 $ 4,187 $ 2,003 $ 17 $ - $ - $ 10,753 Ending balance: collectively evaluated $ 414,951 $ 202,003 $ 127,484 $ 1,057,699 $ 257,948 $ 71,046 $ - $ - $ 2,131,131 Ending balance: loans acquired with $ 469 $ 196 $ - $ 18 $ 49 $ - $ - $ - $ 732 Consumer Agricultural Agricultural Commercial Commercial Consumer Unfunded Unallocated Total Nine Months Ended September 30, 2021 ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 633 $ 958 $ 701 $ 7,415 $ 3,346 $ 606 $ 641 $ 13 $ 14,313 Charge Offs ( 2 ) - ( 143 ) - ( 814 ) ( 195 ) - - ( 1,154 ) Recoveries 9 - 7 8 19 137 - - 180 Provision (Credit) 156 ( 32 ) 122 942 1,263 58 - 491 3,000 Other Non-interest expense related to - - - - - - 398 - 398 Ending Balance $ 796 $ 926 $ 687 $ 8,365 $ 3,814 $ 606 $ 1,039 $ 504 $ 16,737 Ending balance: individually evaluated $ - $ 636 $ 54 $ 710 $ 1,000 $ - $ - $ - $ 2,400 Ending balance: collectively evaluated $ 796 $ 290 $ 633 $ 7,655 $ 2,814 $ 606 $ 1,039 $ 504 $ 14,337 Ending balance: loans acquired with $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 202,370 $ 179,051 $ 105,722 $ 727,418 $ 225,382 $ 55,619 $ - $ - $ 1,495,562 Ending balance: individually evaluated $ 714 $ 6,051 $ 247 $ 3,607 $ 1,215 $ 15 $ - $ - $ 11,849 Ending balance: collectively evaluated $ 201,595 $ 173,000 $ 105,475 $ 723,577 $ 223,803 $ 55,604 $ - $ - $ 1,483,054 Ending balance: loans acquired with $ 61 $ - $ - $ 234 $ 364 $ - $ - $ - $ 659 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Calculation of Basic Earnings Per Share | (in thousands of dollars) (in thousands of dollars) Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Earnings per share Net income $ 8,954 $ 5,920 $ 25,327 $ 15,812 Less: distributed earnings allocated to participating ( 26 ) ( 20 ) ( 67 ) ( 49 ) Less: undistributed earnings allocated to participating ( 42 ) ( 31 ) ( 148 ) ( 77 ) Net earnings available to common shareholders $ 8,886 $ 5,869 $ 25,112 $ 15,686 Weighted average common shares outstanding including 13,083,145 11,209,732 13,071,859 11,199,309 Less: average unvested restricted shares ( 99,838 ) ( 96,197 ) ( 111,209 ) ( 89,075 ) Weighted average common shares outstanding 12,983,307 11,113,535 12,960,650 11,110,234 Basic and diluted earnings per share $ 0.68 $ 0.53 $ 1.94 $ 1.41 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values and Related Carrying or Notional Amounts | The estimated fair values, and related carrying or notional amounts, for on and off-balance sheet financial instruments as of September 30, 2022 and December 31, 2021 are reflected below. (In Thousands) September 30, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 70,670 $ 70,670 $ 70,670 $ - $ - Interest-bearing time deposits 5,187 5,187 - 5,187 - Securities - available-for-sale 395,485 395,485 95,162 296,957 3,366 Other securities 8,227 8,227 - - 8,227 Loans held for sale 2,182 2,219 - - 2,219 Loans, net 2,122,626 2,080,950 - - 2,080,950 Interest receivable 9,856 9,856 - - 9,856 Financial Liabilities: Interest bearing deposits $ 1,313,263 $ 1,313,263 $ - $ - $ 1,313,263 Non-interest bearing deposits 506,928 506,928 - 506,928 - Time deposits 462,845 449,985 - - 449,985 Total Deposits 2,283,036 2,270,176 - 506,928 1,763,248 Federal funds purchased and securities sold under 55,802 55,802 - - 55,802 Federal Home Loan Bank advances 102,147 103,588 - - 103,588 Other borrowings 10,000 10,000 - 10,000 - Subordinated notes, net of unamortized issuance costs 34,557 35,003 - 35,003 - Interest payable 787 787 - - 787 (In Thousands) December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 180,823 $ 180,823 $ 180,823 $ - $ - Interest-bearing time deposits 10,913 10,933 - 10,933 - Securities - available-for-sale 429,931 429,931 89,177 335,981 4,773 Other securities 8,162 8,162 - - 8,162 Loans held for sale 7,714 7,844 - - 7,844 Loans, net 1,841,177 1,864,386 - - 1,864,386 Interest receivable 7,209 7,209 - - 7,209 Financial Liabilities: Interest bearing deposits $ 1,248,294 $ 1,248,044 $ - $ - $ 1,248,044 Non-interest bearing deposits 473,689 473,689 - 473,689 - Time deposits 471,479 475,810 - - 475,810 Total Deposits 2,193,462 2,197,543 - 473,689 1,723,854 Federal funds purchased and securities sold under 29,268 29,268 - - 29,268 Federal Home Loan Bank advances 24,065 24,305 - - 24,305 Other borrowings 40,000 40,000 - 40,000 - Subordinated notes, net of unamortized issuance costs 34,471 35,000 - 35,000 - Interest payable 1,125 1,125 - - 1,125 |
Financial Assets Measured at Fair Value on Recurring Basis | The following summarizes financial assets measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021, segregated by level or the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured at Fair Value on a Recurring Basis (In Thousands) September 30, 2022 Quoted Prices in Significant Significant Assets - (Securities Available-for-Sale) U.S. Treasury $ 95,162 $ - $ - U.S. Government agencies - 138,020 - Mortgage-backed securities - 90,264 - State and local governments - 68,673 3,366 Total Securities Available-for-Sale $ 95,162 $ 296,957 $ 3,366 December 31, 2021 Quoted Prices in Significant Significant Assets - (Securities Available-for-Sale) U.S. Treasury $ 89,177 $ - $ - U.S. Government agencies - 156,886 - Mortgage-backed securities - 117,927 - State and local governments - 61,168 4,773 Total Securities Available-for-Sale $ 89,177 $ 335,981 $ 4,773 |
Changes in the Level 3 Fair-Value Category of Unobservable Inputs | The following tables represent the changes in the Level 3 fair-value category of which unobservable inputs are relied upon as of the three and nine month periods ended September 30, 2022 and September 30, 2021 . During the three month period ended March 31, 2022, there was one security transferred from Level 3 to Level 2. (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Balance at July 1, 2022 $ 2,089 $ 1,325 $ 3,414 Change in Market Value ( 19 ) ( 29 ) ( 48 ) Purchases - - - Payments & Maturities - - - Reclassification & Adjustments - - - Balance at September 30, 2022 $ 2,070 $ 1,296 $ 3,366 (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Balance at July 1, 2021 $ 2,410 $ 1,538 $ 3,948 Change in Market Value ( 9 ) ( 17 ) ( 26 ) Purchases - - - Payments & Maturities ( 155 ) - ( 155 ) Reclassification & Adjustments - - - Balance at September 30, 2021 $ 2,246 $ 1,521 $ 3,767 (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Balance at January 1, 2022 $ 2,307 $ 2,466 $ 4,773 Change in Market Value ( 77 ) ( 181 ) ( 258 ) Purchases - - - Payments & Maturities ( 160 ) - ( 160 ) Reclassification & Adjustments - ( 989 ) ( 989 ) Balance at September 30, 2022 $ 2,070 $ 1,296 $ 3,366 (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Balance at January 1, 2021 $ - $ 1,562 $ 1,562 Change in Market Value ( 17 ) ( 41 ) ( 58 ) Purchases 2,418 - 2,418 Payments & Maturities ( 155 ) - ( 155 ) Reclassification & Adjustments - - - Balance at September 30, 2021 $ 2,246 $ 1,521 $ 3,767 |
Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements: (In Thousands) Range Fair Value at (Weighted September 30, 2022 Valuation Technique Unobservable Inputs Average) State and local government $ 3,366 Discounted Cash Flow Credit strength of underlying project or Discount rate 2.13 - 4.59 % ( 3.96 %) Collateral dependent 2,482 Collateral based Discount to reflect current market 20.00 - 23.87 % ( 23.80 %) Mortgage servicing rights 52 Discounted Cash Flow Constant prepayment rate and probability of default / Discount rate 0.09 - 1.85 % ( 1.81 %) Other real estate owned - - Appraisals Discount to reflect current — % (In Thousands) Range Fair Value at (Weighted December 31, 2021 Valuation Technique Unobservable Inputs Average) State and local government $ 4,773 Discounted Cash Flow Credit strength of underlying project or Discount rate 0.21 - 1.77 % ( 1.33 %) Collateral dependent 8,527 Collateral based Discount to reflect current market 20.00 - 53.95 % ( 34.78 %) Mortgage servicing rights 3,157 Discounted Cash Flow Constant prepayment rate and probability of default / Discount rate 1.94 - 27.70 % ( 18.44 %) Other real estate owned - 99 Appraisals Discount to reflect current 32.72 % ( 32.72 %) |
Assets Measured at Fair Value on Nonrecurring Basis | The following table presents assets measured at fair value on a nonrecurring basis at September 30, 2022 and December 31, 2021: Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2022 (In Thousands) Balance at Quoted Prices Significant Significant Collateral dependent $ 2,482 $ - $ - $ 2,482 Mortgage servicing rights 52 - - 52 Other real estate - - - - Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2021 (In Thousands) Balance at Quoted Prices Significant Significant Collateral dependent $ 8,527 $ - $ - $ 8,527 Mortgage servicing rights 3,157 - - 3,157 Other real estate 99 - - 99 |
Federal Funds Purchased and S_2
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Brokers And Dealers [Abstract] | |
Schedule of Remaining Contractual Maturity in Repurchase Agreements | September 30, 2022 Remaining Contractual Maturity of the Agreements (In Thousands) Overnight & Continuous Up to 30 days 30-90 days Greater Than Total Federal funds purchased $ 20,356 $ - $ - $ - $ 20,356 Repurchase agreements US Treasury & agency securities $ 1,359 $ - $ 5,069 $ 29,018 $ 35,446 Total $ 21,715 $ - $ 5,069 $ 29,018 $ 55,802 December 31, 2021 Remaining Contractual Maturity of the Agreements (In Thousands) Overnight & Continuous Up to 30 days 30-90 days Greater Than Total Federal funds purchased $ - $ - $ - $ - $ - Repurchase agreements US Treasury & agency securities $ 1,062 $ - $ 3,900 $ 24,306 $ 29,268 Total $ 1,062 $ - $ 3,900 $ 24,306 $ 29,268 |
Subordinated Notes (Tables)
Subordinated Notes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Notes | September 30, 2022 December 31, 2021 (In Thousands) Principal Unamortized Note Issuance Costs Principal Unamortized Note Issuance Costs Subordinated Notes $ 35,000 $ ( 443 ) $ 35,000 $ ( 529 ) |
Business Combination and Asse_3
Business Combination and Asset Purchase - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Oct. 01, 2021 USD ($) Office $ / shares shares | Apr. 30, 2021 USD ($) Office $ / shares shares | Nov. 16, 2020 USD ($) shares | Jan. 01, 2019 USD ($) Office $ / shares shares | Sep. 30, 2022 USD ($) Loan shares | Jun. 30, 2022 USD ($) Loan | Mar. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) shares | Nov. 30, 2020 USD ($) Client | |
Business Acquisition [Line Items] | ||||||||||||
Common stock, shares outstanding | shares | 14,063,999 | 14,063,999 | 14,063,999 | 14,063,999 | ||||||||
Goodwill | $ 80,434,000 | $ 80,434,000 | $ 80,434,000 | $ 80,434,000 | ||||||||
Pro-forma operating revenue, net of tax | 2,900,000 | 7,500,000 | ||||||||||
Amortization expense | 597,000 | $ 478,000 | ||||||||||
Core Deposits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amortization expense | 597,000 | 478,000 | ||||||||||
Amortization expense for 2022 | 795,000 | 795,000 | ||||||||||
Customer Lists [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amortization expense | 92,000 | $ 92,000 | ||||||||||
Amortization expense for 2022 | 123,000 | 123,000 | ||||||||||
Perpetual Federal Savings Bank [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of full-service offices | Office | 1 | |||||||||||
Common stock issued in exchange of each outstanding share | 1.7766 | |||||||||||
Cash payment for exchange of each share | $ / shares | $ 41.20 | |||||||||||
Business acquisition share owned subject to adjustment | shares | 1,833,999 | |||||||||||
Common stock, shares outstanding | shares | 2,470,032 | |||||||||||
Share price | $ / shares | $ 22.40 | |||||||||||
Total consideration for acquisition | $ 100,312,000 | |||||||||||
Cash paid for the capital stock | 59,234,000 | |||||||||||
Stock issued for acquisition | 41,078,000 | |||||||||||
Goodwill | 25,220,000 | |||||||||||
Fair value of assets acquired | 334,700,000 | 334,700,000 | ||||||||||
Gross principal and contractual interest | 403,300,000 | 403,300,000 | ||||||||||
Acquisition expected to be uncollectible | 5,600,000 | $ 5,600,000 | ||||||||||
Loan receivable weighted average life | 52 months | |||||||||||
Business combination, premises and equipment written down value | $ 4,000 | |||||||||||
Business combination, average remaining life | 16 years 2 months 12 days | |||||||||||
Fair value for certificate of deposit, valuation amount | 3,900,000 | $ 3,900,000 | ||||||||||
Fair value for certificate of deposit, amortization period | 1 year 7 months 6 days | |||||||||||
Fair value of Federal Home Loan Bank (FHLB) advances, valuation amount | 218,000 | $ 218,000 | ||||||||||
Fair value of Federal Home Loan Bank (FHLB) advances, amortization period | 2 years 7 months 6 days | |||||||||||
Fair value adjustment of loans acquired and accounted | 237,000 | $ 141,000 | $ 190,000 | $ 141,000 | 190,000 | |||||||
Number of commercial purchased credit impaired loans paid off | Loan | 2 | |||||||||||
Number of consumer purchased credit impaired loans paid off | Loan | 1 | 2 | 1 | 1 | ||||||||
Discount recognized at acquisition related to commercial purchased credit-impaired loans | $ 1,000 | $ 36,000 | $ 12,000 | 47,000 | ||||||||
Perpetual Federal Savings Bank [Member] | Building [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, premises and equipment written down value | 297,000 | |||||||||||
Perpetual Federal Savings Bank [Member] | Core Deposits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Recognition of core deposit intangible asset with acquired purchase | $ 668,000 | |||||||||||
Remaining economic useful life | 7 years | |||||||||||
Amortization expense for 2022 | 95,000 | 95,000 | ||||||||||
Ossian State Bank [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of full-service offices | Office | 2 | |||||||||||
Ossian State Bank [Member] | Core Deposits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Recognition of core deposit tangible asset with acquired purchase | 980,200 | |||||||||||
Ossian Financial Services, Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash payment for exchange of each share | $ / shares | $ 67.71 | |||||||||||
Common stock, shares outstanding | shares | 295,388 | |||||||||||
Total consideration for acquisition | $ 20,001,000 | |||||||||||
Cash paid for the capital stock | 20,001,000 | |||||||||||
Goodwill | 7,874,000 | |||||||||||
Fair value of assets acquired | 52,400,000 | 52,400,000 | ||||||||||
Gross principal and contractual interest | 63,700,000 | 63,700,000 | ||||||||||
Acquisition expected to be uncollectible | 1,100,000 | $ 1,100,000 | ||||||||||
Loan receivable weighted average life | 52 months | |||||||||||
Business combination, premises and equipment written down value | $ 596,000 | |||||||||||
Business combination, average remaining life | 39 years | |||||||||||
Fair value for certificate of deposit, valuation amount | 59,000 | $ 59,000 | ||||||||||
Fair value for certificate of deposit, amortization period | 1 year 4 months 24 days | |||||||||||
Fair value adjustment of loans acquired and accounted | $ 325,000 | $ 10,000 | $ 321,000 | $ 10,000 | $ 321,000 | |||||||
Number of consumer purchased credit impaired loans paid off | Loan | 6 | |||||||||||
Discount recognized at acquisition related to commercial purchased credit-impaired loans | $ 311,000 | |||||||||||
Goodwill deductible for tax purpose, period | 15 years | |||||||||||
Ossian Financial Services, Inc. [Member] | Building [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, premises and equipment written down value | 244,000 | |||||||||||
Ossian Financial Services, Inc. [Member] | Core Deposits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Recognition of core deposit intangible asset with acquired purchase | $ 980,200 | |||||||||||
Remaining economic useful life | 7 years | |||||||||||
Amortization expense for 2022 | 140,000 | 140,000 | ||||||||||
Bank of Geneva [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of full-service offices | Office | 6 | |||||||||||
Bank of Geneva [Member] | Core Deposits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Recognition of core deposit intangible asset with acquired purchase | $ 3,900,000 | |||||||||||
Remaining economic useful life | 7 years | |||||||||||
Limberlost Bancshares, Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash payment for exchange of each share | $ / shares | $ 8,465 | |||||||||||
Common stock, shares outstanding | shares | 1,000 | |||||||||||
Share price | $ / shares | $ 38.49 | |||||||||||
Total consideration for acquisition | $ 78,900,000 | |||||||||||
Cash paid for the capital stock | 8,500,000 | |||||||||||
Stock issued for acquisition | 70,400,000 | |||||||||||
Goodwill | $ 43,300,000 | |||||||||||
Common stock issued in exchange of each outstanding share | shares | 1,830,000 | |||||||||||
Limberlost Bancshares, Inc. [Member] | Core Deposits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Recognition of core deposit intangible asset with acquired purchase | $ 3,900,000 | |||||||||||
Remaining economic useful life | 7 years | |||||||||||
Perpetual Federal Savings Bank [Member] | Core Deposits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Recognition of core deposit tangible asset with acquired purchase | $ 668,000 | |||||||||||
Adams County Financial Resources [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total consideration for acquisition | $ 825,000 | |||||||||||
Common stock issued in exchange of each outstanding share | shares | 40,049 | |||||||||||
Assets under management amount | $ 83,000,000 | |||||||||||
Number of clients assets under management | Client | 450 | |||||||||||
Adams County Financial Resources [Member] | Customer Lists [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Recognition of core deposit intangible asset with acquired purchase | $ 800,000 | |||||||||||
Remaining economic useful life | 6 years 6 months | |||||||||||
Amortization expense for 2022 | $ 123,000 | $ 123,000 |
Business Combination and Asse_4
Business Combination and Asset Purchase - Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized (Detail) - USD ($) $ in Thousands | Oct. 01, 2021 | Apr. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||||
Goodwill | $ 80,434 | $ 80,434 | ||
Perpetual Federal Savings Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 59,234 | |||
Common Shares | 41,078 | |||
Total | 100,312 | |||
Assets | ||||
Cash and cash equivalents | 44,975 | |||
Federal funds sold | 1,672 | |||
Interest-bearing time deposits | 6,250 | |||
Other securities, at cost | 2,794 | |||
Loans, net | 334,661 | |||
Premises and equipment | 615 | |||
Goodwill | 25,220 | |||
Other assets | 3,975 | |||
Total Assets Purchased | 420,162 | |||
Deposits | ||||
Noninterest bearing | 2,018 | |||
Interest bearing | 309,090 | |||
Total deposits | 311,108 | |||
Federal Home Loan Bank (FHLB) advances | 6,218 | |||
Accrued expenses and other liabilities | 2,524 | |||
Total Liabilities Assumed | $ 319,850 | |||
Ossian Financial Services, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 20,001 | |||
Total | 20,001 | |||
Assets | ||||
Cash and cash equivalents | 20,229 | |||
Interest-bearing time deposits | 20,226 | |||
Securities - available-for-sale | 30,243 | |||
Other securities, at cost | 281 | |||
Loans, net | 52,403 | |||
Premises and equipment | 494 | |||
Goodwill | 7,874 | |||
Other assets | 5,308 | |||
Total Assets Purchased | 137,058 | |||
Deposits | ||||
Noninterest bearing | 34,509 | |||
Interest bearing | 81,535 | |||
Total deposits | 116,044 | |||
Accrued expenses and other liabilities | 1,013 | |||
Total Liabilities Assumed | $ 117,057 |
Business Combination and Asse_5
Business Combination and Asset Purchase - Summary of Carrying Amount of Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Oct. 01, 2021 | Apr. 30, 2021 |
Perpetual Federal Savings Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | $ 303 | $ 510 | $ 728 | |
Perpetual Federal Savings Bank [Member] | Consumer Real Estate [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | 336 | 581 | 608 | |
Perpetual Federal Savings Bank [Member] | Agricultural Real Estate [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | 108 | 114 | 118 | |
Perpetual Federal Savings Bank [Member] | Commercial Real Estate [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | 5 | 234 | ||
Perpetual Federal Savings Bank [Member] | Commercial and Industrial [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | $ 5 | |||
Ossian Financial Services, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | 10 | 208 | $ 1,309 | |
Ossian Financial Services, Inc. [Member] | Consumer Real Estate [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | $ 20 | 22 | 24 | |
Ossian Financial Services, Inc. [Member] | Agricultural Real Estate [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | 981 | |||
Ossian Financial Services, Inc. [Member] | Commercial Real Estate [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | 222 | 315 | ||
Ossian Financial Services, Inc. [Member] | Commercial and Industrial [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | $ 285 | $ 314 |
Business Combination and Asse_6
Business Combination and Asset Purchase - Summary of Carrying Amount of Loans (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Oct. 01, 2021 | Apr. 30, 2021 |
Perpetual Federal Savings Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair value adjustment | $ 141 | $ 190 | $ 237 | |
Ossian Financial Services, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair value adjustment | $ 10 | $ 321 | $ 325 |
Business Combination and Asse_7
Business Combination and Asset Purchase - Summary of Loans Acquired and Contractually Required Payments Receivable (Detail) $ in Thousands | Dec. 31, 2021 USD ($) |
Perpetual Federal Savings Bank [Member] | |
Business Acquisition [Line Items] | |
Total required payments receivable | $ 1,407 |
Cash flows expected to be collected at acquisition | 728 |
Basis in acquired loans at acquisition | 965 |
Ossian Financial Services, Inc. [Member] | |
Business Acquisition [Line Items] | |
Total required payments receivable | 2,057 |
Cash flows expected to be collected at acquisition | 1,309 |
Basis in acquired loans at acquisition | 1,634 |
Consumer Real Estate [Member] | Perpetual Federal Savings Bank [Member] | |
Business Acquisition [Line Items] | |
Total required payments receivable | 962 |
Consumer Real Estate [Member] | Ossian Financial Services, Inc. [Member] | |
Business Acquisition [Line Items] | |
Total required payments receivable | 28 |
Agricultural Real Estate [Member] | Perpetual Federal Savings Bank [Member] | |
Business Acquisition [Line Items] | |
Total required payments receivable | 146 |
Agricultural Real Estate [Member] | Ossian Financial Services, Inc. [Member] | |
Business Acquisition [Line Items] | |
Total required payments receivable | 1,142 |
Commercial Real Estate [Member] | Perpetual Federal Savings Bank [Member] | |
Business Acquisition [Line Items] | |
Total required payments receivable | 293 |
Commercial Real Estate [Member] | Ossian Financial Services, Inc. [Member] | |
Business Acquisition [Line Items] | |
Total required payments receivable | 527 |
Commercial and Industrial [Member] | Perpetual Federal Savings Bank [Member] | |
Business Acquisition [Line Items] | |
Total required payments receivable | 6 |
Commercial and Industrial [Member] | Ossian Financial Services, Inc. [Member] | |
Business Acquisition [Line Items] | |
Total required payments receivable | $ 360 |
Business Combination and Asse_8
Business Combination and Asset Purchase - Summary of Changes in Accretable Yield or Income Expected to be Collected (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Perpetual Federal Savings Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Beginning Balance | $ 4,710 | $ 5,262 | |||
Additions | 28 | 125 | |||
Accretion | (330) | (979) | |||
Disposals | (2) | (2) | |||
Ending Balance | 4,406 | 4,406 | $ 5,262 | ||
Ossian Financial Services, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Beginning Balance | 557 | $ 733 | 645 | ||
Additions | 1 | 1 | $ 762 | ||
Accretion | (44) | (44) | (132) | (73) | |
Ending Balance | 514 | 689 | 514 | 689 | 645 |
Limberlost Bancshares, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Beginning Balance | 994 | 1,439 | 1,198 | 1,653 | 1,653 |
Additions | 2 | 3 | 10 | 8 | |
Accretion | (107) | (108) | (319) | (323) | |
Disposals | (4) | ||||
Ending Balance | $ 889 | $ 1,334 | $ 889 | $ 1,334 | $ 1,198 |
Business Combination and Asse_9
Business Combination and Asset Purchase - Schedule of Pro-forma Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Summary of Operations | ||||
Net Interest Income - Before Provision for Loan Losses | $ 22,583 | $ 22,124 | $ 64,230 | $ 61,019 |
Provision for Loan Losses | 1,637 | 659 | 3,845 | 3,001 |
Net Interest Income After Provision for Loan Losses | 20,946 | 21,465 | 60,385 | 58,018 |
Noninterest Income | 3,732 | 4,664 | 11,394 | 14,031 |
Noninterest Expense | 12,941 | 14,167 | 39,668 | 41,436 |
Income Before Income Taxes | 11,737 | 11,962 | 32,111 | 30,613 |
Income Taxes | 2,320 | 2,433 | 6,321 | 6,101 |
Net Income | $ 9,417 | $ 9,529 | $ 25,790 | $ 24,512 |
Basic and Diluted Earnings Per Share | $ 0.72 | $ 0.73 | $ 1.97 | $ 1.88 |
Business Combination and Ass_10
Business Combination and Asset Purchase - Schedule of Annual Amortization of Core Deposit Intangible Assets (Detail) $ in Thousands | Sep. 30, 2022 USD ($) |
Core Deposits [Member] | |
Business Acquisition [Line Items] | |
2022 | $ 795 |
2023 | 795 |
2024 | 795 |
2025 | 795 |
2026 | 235 |
Thereafter | 356 |
Finite-Lived Intangible Assets, Net | 3,771 |
Core Deposits [Member] | Geneva [Member] | |
Business Acquisition [Line Items] | |
2022 | 560 |
2023 | 560 |
2024 | 560 |
2025 | 560 |
Finite-Lived Intangible Assets, Net | 2,240 |
Core Deposits [Member] | Ossian [Member] | |
Business Acquisition [Line Items] | |
2022 | 140 |
2023 | 140 |
2024 | 140 |
2025 | 140 |
2026 | 140 |
Thereafter | 187 |
Finite-Lived Intangible Assets, Net | 887 |
Core Deposits [Member] | Perpetual Federal Savings Bank [Member] | |
Business Acquisition [Line Items] | |
2022 | 95 |
2023 | 95 |
2024 | 95 |
2025 | 95 |
2026 | 95 |
Thereafter | 169 |
Finite-Lived Intangible Assets, Net | 644 |
Customer Lists [Member] | |
Business Acquisition [Line Items] | |
2022 | 123 |
Customer Lists [Member] | Adams County Financial Resources [Member] | |
Business Acquisition [Line Items] | |
2022 | 123 |
2023 | 123 |
2024 | 123 |
2025 | 123 |
2026 | 123 |
Thereafter | 47 |
Finite-Lived Intangible Assets, Net | $ 662 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 443,254 | $ 433,962 |
Gross Unrealized Gains | 46 | 3,032 |
Gross Unrealized Losses | (47,815) | (7,063) |
Fair Value | 395,485 | 429,931 |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 105,219 | 90,775 |
Gross Unrealized Losses | (10,057) | (1,598) |
Fair Value | 95,162 | 89,177 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 154,905 | 159,673 |
Gross Unrealized Gains | 695 | |
Gross Unrealized Losses | (16,885) | (3,482) |
Fair Value | 138,020 | 156,886 |
Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 104,242 | 118,550 |
Gross Unrealized Gains | 839 | |
Gross Unrealized Losses | (13,978) | (1,462) |
Fair Value | 90,264 | 117,927 |
State and Local Governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 78,888 | 64,964 |
Gross Unrealized Gains | 46 | 1,498 |
Gross Unrealized Losses | (6,895) | (521) |
Fair Value | $ 72,039 | $ 65,941 |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Investments pledged, carrying value | $ 133,000 | $ 115,000 |
Other securities | 8,227 | 8,162 |
Total committed securities | 4,000 | 3,000 |
Federal Home Loan Bank of Cincinnati and Indianapolis Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Other securities | 6,800 | 7,300 |
Ohio Equity Fund for Housing Limited Partnership [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Other securities | $ 1,500 | $ 820 |
Minimum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Underwater security | 10 years | |
Loss position existed | 3 years |
Securities - Gross Unrealized L
Securities - Gross Unrealized Losses, Aggregated by Investment Category and Length of Time (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ (9,604) | $ (4,842) |
Fair Value, Less Than Twelve Months | 137,638 | 256,800 |
Gross Unrealized Losses, Twelve Months and Over | (38,211) | (2,221) |
Fair Value, Twelve Months and Over | 255,941 | 63,659 |
Gross Unrealized Losses, Total | (47,815) | (7,063) |
Fair Value, Total | 393,579 | 320,459 |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | (1,522) | (1,598) |
Fair Value, Less Than Twelve Months | 29,827 | 89,177 |
Gross Unrealized Losses, Twelve Months and Over | (8,535) | |
Fair Value, Twelve Months and Over | 65,335 | |
Gross Unrealized Losses, Total | (10,057) | (1,598) |
Fair Value, Total | 95,162 | 89,177 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | (1,066) | (1,898) |
Fair Value, Less Than Twelve Months | 22,597 | 86,739 |
Gross Unrealized Losses, Twelve Months and Over | (15,819) | (1,584) |
Fair Value, Twelve Months and Over | 115,423 | 41,738 |
Gross Unrealized Losses, Total | (16,885) | (3,482) |
Fair Value, Total | 138,020 | 128,477 |
Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | (3,176) | (1,050) |
Fair Value, Less Than Twelve Months | 33,338 | 63,157 |
Gross Unrealized Losses, Twelve Months and Over | (10,802) | (412) |
Fair Value, Twelve Months and Over | 56,926 | 16,434 |
Gross Unrealized Losses, Total | (13,978) | (1,462) |
Fair Value, Total | 90,264 | 79,591 |
State and Local Governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | (3,840) | (296) |
Fair Value, Less Than Twelve Months | 51,876 | 17,727 |
Gross Unrealized Losses, Twelve Months and Over | (3,055) | (225) |
Fair Value, Twelve Months and Over | 18,257 | 5,487 |
Gross Unrealized Losses, Total | (6,895) | (521) |
Fair Value, Total | $ 70,133 | $ 23,214 |
Securities - Gross Realized Gai
Securities - Gross Realized Gains and Losses (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2021 USD ($) | |
Available For Sale Securities Gross Realized Gain Loss [Abstract] | |
Gross realized gains | $ 293 |
Net realized gains | 293 |
Tax expense related to net realized gains | $ 62 |
Securities - Amortized Cost a_2
Securities - Amortized Cost and Fair Value of Debt Securities, by Contractual Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Available For Sale Securities Debt Maturities [Abstract] | ||
Amortized Cost, One year or less | $ 17,262 | |
Amortized Cost, After one year through five years | 184,900 | |
Amortized Cost, After five years through ten years | 131,050 | |
Amortized Cost, After ten years | 5,800 | |
Amortized Cost, Total | 339,012 | |
Amortized Cost, Mortgage-backed securities | 104,242 | |
Amortized Cost | 443,254 | $ 433,962 |
Fair Value, One year or less | 16,909 | |
Fair Value, After one year through five years | 168,802 | |
Fair Value, After five years through ten years | 113,882 | |
Fair Value, After ten years | 5,628 | |
Fair Value, Total | 305,221 | |
Fair Value, Mortgage-backed securities | 90,264 | |
Total, Fair Value | $ 395,485 | $ 429,931 |
Loans - Loans (Detail)
Loans - Loans (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Loans: | ||||
Loans - Gross | $ 2,144,018,000 | $ 1,859,157,000 | ||
Less: Net deferred loan fees and costs | (1,402,000) | (1,738,000) | ||
Loans after net deferred loan fees and costs | 2,142,616,000 | 1,857,419,000 | $ 1,495,562,000 | |
Less: Allowance for loan losses | (19,990,000) | (16,242,000) | $ (13,672,000) | |
Loans - Net | 2,122,626,000 | 1,841,177,000 | ||
Consumer Real Estate [Member] | ||||
Loans: | ||||
Loans - Gross | 416,001,000 | 395,873,000 | ||
Loans after net deferred loan fees and costs | 416,044,000 | 395,805,000 | 202,370,000 | |
Agricultural Real Estate [Member] | ||||
Loans: | ||||
Loans - Gross | 205,089,000 | 198,343,000 | ||
Loans after net deferred loan fees and costs | 204,787,000 | 198,033,000 | 179,051,000 | |
Agricultural [Member] | ||||
Loans: | ||||
Loans - Gross | 128,615,000 | 118,368,000 | ||
Loans after net deferred loan fees and costs | 128,818,000 | 118,504,000 | 105,722,000 | |
Commercial Real Estate [Member] | ||||
Loans: | ||||
Loans - Gross | 1,063,661,000 | 848,477,000 | ||
Loans after net deferred loan fees and costs | 1,061,904,000 | 847,110,000 | 727,418,000 | |
Commercial and Industrial [Member] | ||||
Loans: | ||||
Loans - Gross | 229,388,000 | 208,270,000 | ||
Loans after net deferred loan fees and costs | 229,338,000 | 208,049,000 | ||
Less: Allowance for loan losses | 0 | |||
Consumer [Member] | ||||
Loans: | ||||
Loans - Gross | 70,602,000 | 57,737,000 | ||
Loans after net deferred loan fees and costs | 71,063,000 | 57,829,000 | $ 55,619,000 | |
Other Loan [Member] | ||||
Loans: | ||||
Loans - Gross | 30,662,000 | 32,089,000 | ||
Loans after net deferred loan fees and costs | $ 30,662,000 | $ 32,089,000 |
Loans - Distribution of Fixed R
Loans - Distribution of Fixed Rate Loans and Variable Rate Loans by Major Loan Category (Detail) $ in Thousands | Sep. 30, 2022 USD ($) |
Consumer Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | $ 293,912 |
Distribution of variable rate loans by major loan category, Variable Rate | 122,089 |
Agricultural Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 130,078 |
Distribution of variable rate loans by major loan category, Variable Rate | 75,011 |
Agricultural [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 50,658 |
Distribution of variable rate loans by major loan category, Variable Rate | 77,957 |
Commercial Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 871,664 |
Distribution of variable rate loans by major loan category, Variable Rate | 191,997 |
Commercial and Industrial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 113,171 |
Distribution of variable rate loans by major loan category, Variable Rate | 116,217 |
Consumer [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 67,154 |
Distribution of variable rate loans by major loan category, Variable Rate | 3,448 |
Other Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 20,862 |
Distribution of variable rate loans by major loan category, Variable Rate | $ 9,800 |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Residential mortgage loan | $ 732,000 | $ 1,449,000 | $ 659,000 | |
Loans | 2,144,018,000 | 1,859,157,000 | ||
Allowance for loan losses | 19,990,000 | 16,242,000 | $ 13,672,000 | |
Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 229,388,000 | 208,270,000 | ||
Allowance for loan losses | 0 | |||
Commercial and Industrial [Member] | PPP Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 7,000 | 2,900,000 | ||
Asset Pledged as Collateral without Right [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Residential mortgage loan | $ 182,700,000 | $ 193,200,000 |
Loans - Contractual Aging of Re
Loans - Contractual Aging of Recorded Investment in Past Due Loans by Portfolio Classification of Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | $ 2,142,616 | $ 1,857,419 | $ 1,495,562 |
Recorded Investment > 90 Days and Accruing | 0 | 0 | 0 |
30 to 59 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 1,898 | 749 | |
60 to 89 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 568 | 131 | |
Greater Than 90 Days [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 2,847 | 575 | |
Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 5,313 | 1,455 | |
Current [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 2,137,303 | 1,855,964 | |
Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 416,044 | 395,805 | 202,370 |
Consumer Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 1,056 | 228 | |
Consumer Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 167 | ||
Consumer Real Estate [Member] | Greater Than 90 Days [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 216 | 246 | |
Consumer Real Estate [Member] | Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 1,439 | 474 | |
Consumer Real Estate [Member] | Current [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 414,605 | 395,331 | |
Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 204,787 | 198,033 | 179,051 |
Agricultural Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 189 | 436 | |
Agricultural Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 216 | ||
Agricultural Real Estate [Member] | Greater Than 90 Days [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 1,550 | ||
Agricultural Real Estate [Member] | Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 1,955 | 436 | |
Agricultural Real Estate [Member] | Current [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 202,832 | 197,597 | |
Agricultural [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 128,818 | 118,504 | 105,722 |
Agricultural [Member] | 30 to 59 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 435 | ||
Agricultural [Member] | 60 to 89 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 88 | ||
Agricultural [Member] | Greater Than 90 Days [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 831 | ||
Agricultural [Member] | Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 1,354 | ||
Agricultural [Member] | Current [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 127,464 | 118,504 | |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 1,061,904 | 847,110 | 727,418 |
Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 1 | ||
Commercial Real Estate [Member] | Greater Than 90 Days [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 180 | 180 | |
Commercial Real Estate [Member] | Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 181 | 180 | |
Commercial Real Estate [Member] | Current [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 1,061,723 | 846,930 | |
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 260,000 | 240,138 | 225,382 |
Commercial and Industrial [Member] | 30 to 59 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 203 | 21 | |
Commercial and Industrial [Member] | 60 to 89 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 52 | 131 | |
Commercial and Industrial [Member] | Greater Than 90 Days [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 23 | 149 | |
Commercial and Industrial [Member] | Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 278 | 301 | |
Commercial and Industrial [Member] | Current [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 259,722 | 239,837 | |
Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 71,063 | 57,829 | $ 55,619 |
Consumer [Member] | 30 to 59 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 14 | 64 | |
Consumer [Member] | 60 to 89 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 45 | ||
Consumer [Member] | Greater Than 90 Days [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 47 | ||
Consumer [Member] | Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | 106 | 64 | |
Consumer [Member] | Current [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Past Due | $ 70,957 | $ 57,765 |
Loans - Recorded Investment in
Loans - Recorded Investment in Nonaccrual Loans by Portfolio Class of Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Investment in nonaccrual loans | $ 5,470 | $ 8,076 | $ 6,248 |
Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Investment in nonaccrual loans | 636 | 824 | |
Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Investment in nonaccrual loans | 2,214 | 6,477 | |
Agricultural [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Investment in nonaccrual loans | 1,334 | 20 | |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Investment in nonaccrual loans | 1,178 | 600 | |
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Investment in nonaccrual loans | 57 | 149 | |
Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Investment in nonaccrual loans | $ 51 | $ 6 |
Loans (Tier Risk Rating System)
Loans (Tier Risk Rating System) - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
Minimum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Repayment period of loan with a reasonable reduction of principal balance | 2 years |
Loans - Risk Category of Loans
Loans - Risk Category of Loans by Portfolio Class (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | $ 2,142,616 | $ 1,857,419 | $ 1,495,562 |
Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 204,787 | 198,033 | 179,051 |
Agricultural [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 128,818 | 118,504 | 105,722 |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 1,061,904 | 847,110 | $ 727,418 |
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 229,338 | 208,049 | |
Other Loan [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 30,662 | 32,089 | |
1-2 [Member] | Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 9,608 | 8,720 | |
1-2 [Member] | Agricultural [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 5,358 | 4,178 | |
1-2 [Member] | Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 14,227 | 10,894 | |
1-2 [Member] | Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 1,195 | 4,604 | |
3 [Member] | Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 50,781 | 42,180 | |
3 [Member] | Agricultural [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 33,381 | 38,623 | |
3 [Member] | Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 303,291 | 238,132 | |
3 [Member] | Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 66,129 | 46,547 | |
3 [Member] | Other Loan [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 11,110 | 11,408 | |
4 [Member] | Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 127,806 | 129,301 | |
4 [Member] | Agricultural [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 88,476 | 75,164 | |
4 [Member] | Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 705,358 | 568,038 | |
4 [Member] | Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 155,223 | 152,736 | |
4 [Member] | Other Loan [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 19,552 | 20,681 | |
5 [Member] | Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 5,024 | 4,599 | |
5 [Member] | Agricultural [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 240 | 227 | |
5 [Member] | Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 15,322 | 14,509 | |
5 [Member] | Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 3,214 | 986 | |
6 [Member] | Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 11,568 | 13,233 | |
6 [Member] | Agricultural [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 1,363 | 312 | |
6 [Member] | Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 23,706 | 15,537 | |
6 [Member] | Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | $ 3,577 | $ 3,176 |
Loans - Recorded Investment for
Loans - Recorded Investment for Consumer Loans, Credit Quality based on Status of Loan and Payment Activity (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | $ 2,142,616 | $ 1,857,419 | $ 1,495,562 |
Performing | 732 | 1,449 | 659 |
Consumer - Credit [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Performing | 1 | 3,919 | |
Consumer - Credit [Member] | Performing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Performing | 1 | 3,906 | |
Consumer - Credit [Member] | Nonperforming [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Performing | 13 | ||
Consumer - Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Performing | 71,062 | 53,910 | |
Consumer - Other [Member] | Performing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Performing | 71,003 | 53,820 | |
Consumer - Other [Member] | Nonperforming [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Performing | 59 | 90 | |
Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 416,044 | 395,805 | 202,370 |
Performing | 469 | 712 | $ 61 |
Pass [Member] | Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 414,490 | 392,940 | |
Special Mention [Member] | Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | 555 | 1,673 | |
Substandard [Member] | Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans after net deferred loan fees and costs | $ 999 | $ 1,192 |
Loans - Schedule of Impaired Lo
Loans - Schedule of Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Receivables [Abstract] | ||||||
Impaired loans without a valuation allowance | $ 5,835 | $ 1,228 | $ 2,461 | $ 5,835 | $ 2,461 | $ 1,228 |
Impaired loans with a valuation allowance | 4,918 | 10,711 | 9,388 | 4,918 | 9,388 | 10,711 |
Total impaired loans | 10,753 | 11,939 | 11,849 | 10,753 | 11,849 | 11,939 |
Valuation allowance related to impaired loans | 2,436 | 2,184 | 2,400 | 2,436 | 2,400 | 2,184 |
Total non-accrual loans | 5,470 | 8,076 | 6,248 | 5,470 | 6,248 | 8,076 |
Total loans past-due ninety days or more and still accruing | 0 | 0 | 0 | 0 | 0 | 0 |
Average investment in impaired loans | $ 10,662 | $ 11,676 | $ 11,639 | $ 11,059 | $ 12,360 | $ 12,247 |
Loans (Impaired Loans) - Additi
Loans (Impaired Loans) - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jul. 30, 2021 | Jun. 30, 2021 Loan | Sep. 30, 2022 USD ($) Contract Loan | Sep. 30, 2021 USD ($) Contract Loan | Sep. 30, 2022 USD ($) Contract Loan | Sep. 30, 2021 USD ($) Loan Contract | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Additional funds available to be advanced in connection with impaired loans | $ 0 | $ 0 | ||||||
Impaired loans classified as troubled debt restructured | $ 4,000,000 | $ 6,000,000 | 4,000,000 | $ 6,000,000 | $ 7,600,000 | |||
Number of contracts modified | Loan | 3 | 1 | 2 | |||||
TDR impaired loans paid off | Loan | 2 | |||||||
Term of loan | 5 years | 3 years | ||||||
Loan amortization period | 10 years | |||||||
Allowance for loan losses | $ 19,990,000 | $ 19,990,000 | 16,242,000 | $ 13,672,000 | ||||
TDR loans, subsequently defaulted during the period | 0 | 0 | ||||||
Maximum time for re-evaluation (in months) | 12 months | |||||||
Re-evaluation period for real estate | 2 years | |||||||
Unsecured consumer loans, credit card credits and overdraft lines of credit reach | 90 days | |||||||
Delinquent period for charging down consumer loans | 90 days | |||||||
Delinquent period for charging down/allocated commercial and agricultural credits | 120 days | |||||||
Foreclosed residential real estate property | 159,000 | |||||||
Maximum [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Litigation and any deficiency charged off period | 150 days | |||||||
Agricultural Real Estate [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Impaired loans classified as troubled debt restructured | $ 4,500,000 | $ 4,500,000 | ||||||
TDR impaired loans paid off | Loan | 2 | |||||||
Commercial and Industrial [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Impaired loans classified as troubled debt restructured | $ 480,000 | $ 480,000 | ||||||
Number of contracts modified | Contract | 2 | 1 | 2 | 1 | ||||
TDR impaired loans paid off | Loan | 1 | |||||||
Allowance for loan losses | $ 0 | $ 0 | ||||||
TDR impaired loans charged off | Loan | 3 | |||||||
TDR impaired loans charged off amount | $ 809,000 | |||||||
Commercial Real Estate [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Impaired loans classified as troubled debt restructured | $ 86,000 | $ 86,000 | ||||||
Number of contracts modified | Contract | 1 | 1 | 1 | |||||
TDR impaired loans paid off | Loan | 1 | |||||||
Consumer Real Estate [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Foreclosed residential real estate property | $ 0 | 167,000 | $ 0 | $ 167,000 | 159,000 | |||
Residential real estate properties foreclosure proceedings | $ 211,000 | 129,000 | $ 211,000 | 129,000 | $ 255,000 | |||
Principal Forgiveness [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of contracts modified | Contract | 0 | |||||||
Specific Allocation on Principal Balance [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Allowance for loan losses | $ 1,000,000 | $ 1,000,000 |
Loans - Impaired Loans Classifi
Loans - Impaired Loans Classified as Troubled Debt Restructured (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) Contract Loan | Sep. 30, 2021 USD ($) Contract Loan | Sep. 30, 2022 USD ($) Contract | Sep. 30, 2021 USD ($) Loan Contract | |
Financing Receivable Modifications [Line Items] | ||||
Number of contracts modified | Loan | 3 | 1 | 2 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | 0 | 0 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts modified | Contract | 1 | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 74 | $ 74 | $ 382 | |
Post-Modification Outstanding Recorded Investment | $ 74 | $ 74 | $ 382 | |
Commercial and Industrial [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts modified | Contract | 2 | 1 | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 1,232 | $ 1,000 | $ 1,232 | $ 1,000 |
Post-Modification Outstanding Recorded Investment | $ 1,232 | $ 1,000 | $ 1,232 | $ 1,000 |
Loans - Loans Individually Eval
Loans - Loans Individually Evaluated for Impairment by Portfolio Class of Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Impaired [Line Items] | ||||||
With no related allowance recorded, Recorded Investment | $ 5,835 | $ 1,228 | $ 2,461 | $ 5,835 | $ 2,461 | $ 1,228 |
With a specific allowance recorded, Recorded Investment | 4,918 | 10,711 | 9,388 | 4,918 | 9,388 | 10,711 |
Related Allowance | 2,436 | 2,184 | 2,400 | 2,436 | 2,400 | 2,184 |
Recorded Investment | 10,753 | 11,939 | 11,849 | 10,753 | 11,849 | 11,939 |
Average Recorded Investment | 10,662 | 11,676 | 11,639 | 11,059 | 12,360 | 12,247 |
Consumer Real Estate [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With no related allowance recorded, Recorded Investment | 624 | 604 | 714 | 624 | 714 | 604 |
With no related allowance recorded, Unpaid Principal Balance | 624 | 604 | 714 | 624 | 714 | 604 |
With no related allowance recorded, Average Recorded Investment | 352 | 453 | 372 | 485 | 456 | |
With no related allowance recorded, Interest Income Recognized | 1 | 1 | 3 | 4 | 5 | |
With no related allowance recorded, Interest Income Recognized Cash Basis | 5 | 3 | 10 | 10 | 15 | |
With a specific allowance recorded, Average Recorded Investment | 59 | |||||
Recorded Investment | 624 | 604 | 714 | 624 | 714 | 604 |
Unpaid Principal Balance | 624 | 604 | 714 | 624 | 714 | 604 |
Average Recorded Investment | 352 | 453 | 372 | 485 | 515 | |
Interest Income Recognized | 1 | 1 | 3 | 4 | 5 | |
Interest Income Recognized Cash Basis | 5 | 3 | 10 | 10 | 15 | |
Agricultural Real Estate [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With no related allowance recorded, Recorded Investment | 2,588 | 423 | 1,207 | 2,588 | 1,207 | 423 |
With no related allowance recorded, Unpaid Principal Balance | 2,693 | 423 | 1,207 | 2,693 | 1,207 | 423 |
With no related allowance recorded, Average Recorded Investment | 2,467 | 1,047 | 1,953 | 1,191 | 1,000 | |
With no related allowance recorded, Interest Income Recognized | 6 | 19 | 19 | 53 | ||
With no related allowance recorded, Interest Income Recognized Cash Basis | 1 | 6 | ||||
With a specific allowance recorded, Recorded Investment | 6,302 | 4,844 | 4,844 | 6,302 | ||
With a specific allowance recorded, Unpaid Principal Balance | 6,406 | 4,844 | 4,844 | 6,406 | ||
Related Allowance | 691 | 636 | 636 | 691 | ||
With a specific allowance recorded, Average Recorded Investment | 5,104 | 1,850 | 5,273 | 5,414 | ||
With a specific allowance recorded, Interest Income Recognized | 4 | 15 | 54 | |||
Recorded Investment | 2,588 | 6,725 | 6,051 | 2,588 | 6,051 | 6,725 |
Unpaid Principal Balance | 2,693 | 6,829 | 6,051 | 2,693 | 6,051 | 6,829 |
Average Recorded Investment | 2,467 | 6,151 | 3,803 | 6,464 | 6,414 | |
Interest Income Recognized | 6 | 23 | 19 | 68 | 87 | |
Interest Income Recognized Cash Basis | 1 | 6 | ||||
With no related allowance recorded, Adjusted Interest Income Recognized | 33 | |||||
Agricultural [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With no related allowance recorded, Recorded Investment | 1,334 | 130 | 1,334 | 130 | ||
With no related allowance recorded, Unpaid Principal Balance | 1,334 | 130 | 1,334 | 130 | ||
With no related allowance recorded, Average Recorded Investment | 1,309 | 130 | 591 | 161 | 143 | |
With no related allowance recorded, Interest Income Recognized | 4 | 8 | 18 | |||
With no related allowance recorded, Interest Income Recognized Cash Basis | 2 | 3 | ||||
With a specific allowance recorded, Recorded Investment | 20 | 117 | 117 | 20 | ||
With a specific allowance recorded, Unpaid Principal Balance | 20 | 117 | 117 | 20 | ||
Related Allowance | 1 | 54 | 54 | 1 | ||
With a specific allowance recorded, Average Recorded Investment | 117 | 123 | 94 | |||
With a specific allowance recorded, Interest Income Recognized | 4 | |||||
Recorded Investment | 1,334 | 20 | 247 | 1,334 | 247 | 20 |
Unpaid Principal Balance | 1,334 | 20 | 247 | 1,334 | 247 | 20 |
Average Recorded Investment | 1,309 | 247 | 591 | 284 | 237 | |
Interest Income Recognized | 4 | 12 | 18 | |||
Interest Income Recognized Cash Basis | 2 | 3 | ||||
Commercial Real Estate [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With no related allowance recorded, Recorded Investment | 1,251 | 180 | 180 | 1,251 | 180 | 180 |
With no related allowance recorded, Unpaid Principal Balance | 1,251 | 180 | 180 | 1,251 | 180 | 180 |
With no related allowance recorded, Average Recorded Investment | 1,505 | 2,519 | 1,162 | 1,768 | 1,445 | |
With no related allowance recorded, Interest Income Recognized | 9 | 4 | 20 | 38 | 70 | |
With no related allowance recorded, Interest Income Recognized Cash Basis | 14 | 1 | 33 | 7 | 9 | |
With a specific allowance recorded, Recorded Investment | 2,936 | 3,381 | 3,427 | 2,936 | 3,427 | 3,381 |
With a specific allowance recorded, Unpaid Principal Balance | 2,936 | 3,381 | 3,427 | 2,936 | 3,427 | 3,381 |
Related Allowance | 500 | 664 | 710 | 500 | 710 | 664 |
With a specific allowance recorded, Average Recorded Investment | 2,960 | 1,395 | 3,270 | 1,800 | 2,199 | |
With a specific allowance recorded, Interest Income Recognized | 39 | 31 | 113 | 58 | 70 | |
With a specific allowance recorded, Interest Income Recognized Cash Basis | 3 | 3 | ||||
Recorded Investment | 4,187 | 3,561 | 3,607 | 4,187 | 3,607 | 3,561 |
Unpaid Principal Balance | 4,187 | 3,561 | 3,607 | 4,187 | 3,607 | 3,561 |
Average Recorded Investment | 4,465 | 3,914 | 4,432 | 3,568 | 3,644 | |
Interest Income Recognized | 48 | 35 | 133 | 96 | 140 | |
Interest Income Recognized Cash Basis | 14 | 1 | 33 | 10 | 12 | |
Commercial and Industrial [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With no related allowance recorded, Recorded Investment | 21 | 21 | 215 | 21 | 215 | 21 |
With no related allowance recorded, Unpaid Principal Balance | 21 | 21 | 215 | 21 | 215 | 21 |
With no related allowance recorded, Average Recorded Investment | 63 | 525 | 175 | 1,206 | 920 | |
With no related allowance recorded, Interest Income Recognized | 2 | 24 | 24 | |||
With no related allowance recorded, Interest Income Recognized Cash Basis | 1 | 10 | 4 | 158 | ||
With a specific allowance recorded, Recorded Investment | 1,982 | 982 | 1,000 | 1,982 | 1,000 | 982 |
With a specific allowance recorded, Unpaid Principal Balance | 1,982 | 982 | 1,000 | 1,982 | 1,000 | 982 |
Related Allowance | 1,936 | 825 | 1,000 | 1,936 | 1,000 | 825 |
With a specific allowance recorded, Average Recorded Investment | 1,989 | 333 | 1,665 | 334 | 498 | |
With a specific allowance recorded, Interest Income Recognized | 72 | 2 | 138 | 2 | 17 | |
Recorded Investment | 2,003 | 1,003 | 1,215 | 2,003 | 1,215 | 1,003 |
Unpaid Principal Balance | 2,003 | 1,003 | 1,215 | 2,003 | 1,215 | 1,003 |
Average Recorded Investment | 2,052 | 858 | 1,840 | 1,540 | 1,418 | |
Interest Income Recognized | 72 | 2 | 140 | 26 | 41 | |
Interest Income Recognized Cash Basis | 1 | 10 | 4 | 158 | ||
Consumer [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With no related allowance recorded, Recorded Investment | 17 | 15 | 17 | 15 | ||
With no related allowance recorded, Unpaid Principal Balance | 17 | 15 | 17 | 15 | ||
With no related allowance recorded, Average Recorded Investment | 17 | 16 | 18 | 19 | 17 | |
With no related allowance recorded, Interest Income Recognized | 1 | 1 | ||||
With a specific allowance recorded, Recorded Investment | 26 | 26 | ||||
With a specific allowance recorded, Unpaid Principal Balance | 26 | 26 | ||||
Related Allowance | 3 | 3 | ||||
With a specific allowance recorded, Average Recorded Investment | 3 | 2 | ||||
With a specific allowance recorded, Interest Income Recognized | 1 | |||||
Recorded Investment | 17 | 26 | 15 | 17 | 15 | 26 |
Unpaid Principal Balance | 17 | $ 26 | 15 | 17 | 15 | 26 |
Average Recorded Investment | $ 17 | $ 16 | 21 | 19 | 19 | |
Interest Income Recognized | $ 1 | $ 1 | $ 1 |
Loans - Summary of Activities i
Loans - Summary of Activities in Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | |
Allowance for Loan Losses | ||||||||
Balance at beginning of year | $ 16,242 | $ 13,672 | $ 13,672 | |||||
Provision for loan loss | $ 1,637 | $ 659 | 3,845 | 3,000 | 3,444 | |||
Loans charged off | (123) | (103) | (334) | (1,154) | (1,332) | |||
Recoveries | 52 | 55 | 237 | 180 | 458 | |||
Balance at ending of year | 19,990 | 19,990 | 16,242 | |||||
Allowance for Unfunded Loan Commitments & Letters of Credit | 1,118 | 1,118 | 1,041 | |||||
Total Allowance for Credit Losses | $ 21,108 | $ 16,737 | $ 21,108 | $ 16,737 | $ 17,283 | $ 19,591 | $ 16,232 | $ 14,313 |
Loans (ALLL) - Additional Infor
Loans (ALLL) - Additional Information (Detail) - Geneva in 2019 and Ossian State Bank in 2021 [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accretable yield related to acquisition | $ 5,800 | $ 7,100 |
Reclassification from nonaccretable difference | $ 151 | $ 510 |
Loans - Analysis of Allowance f
Loans - Analysis of Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
ALLOWANCE FOR CREDIT LOSSES: | |||||
Beginning balance | $ 19,591 | $ 16,232 | $ 17,283 | $ 14,313 | $ 14,313 |
Charge Offs | (123) | (103) | (334) | (1,154) | (1,332) |
Recoveries | 52 | 55 | 237 | 180 | 458 |
Provision (Credit) | 1,637 | 659 | 3,845 | 3,000 | 3,444 |
Other Non-interest expense related to unfunded | (49) | (106) | 77 | 398 | |
Ending Balance | 21,108 | 16,737 | 21,108 | 16,737 | 17,283 |
Ending balance: individually evaluated for impairment | 2,436 | 2,400 | 2,436 | 2,400 | 2,184 |
Ending balance: collectively evaluated for impairment | 18,672 | 14,337 | 18,672 | 14,337 | 15,099 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 37 |
FINANCING RECEIVABLES: | |||||
Ending balance | 2,142,616 | 1,495,562 | 2,142,616 | 1,495,562 | 1,857,419 |
Ending balance: individually evaluated for impairment | 10,753 | 11,849 | 10,753 | 11,849 | 11,939 |
Ending balance: collectively evaluated for impairment | 2,131,131 | 1,483,054 | 2,131,131 | 1,483,054 | 1,844,031 |
Ending balance: loans acquired with deteriorated credit quality | 732 | 659 | 732 | 659 | 1,449 |
Consumer Real Estate [Member] | |||||
ALLOWANCE FOR CREDIT LOSSES: | |||||
Beginning balance | 939 | 649 | 857 | 633 | 633 |
Charge Offs | (2) | (2) | |||
Recoveries | 6 | 3 | 15 | 9 | |
Provision (Credit) | (19) | 146 | 54 | 156 | |
Ending Balance | 926 | 796 | 926 | 796 | 857 |
Ending balance: collectively evaluated for impairment | 926 | 796 | 926 | 796 | 857 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 37 |
FINANCING RECEIVABLES: | |||||
Ending balance | 416,044 | 202,370 | 416,044 | 202,370 | 395,805 |
Ending balance: individually evaluated for impairment | 624 | 714 | 624 | 714 | 604 |
Ending balance: collectively evaluated for impairment | 414,951 | 201,595 | 414,951 | 201,595 | 394,489 |
Ending balance: loans acquired with deteriorated credit quality | 469 | 61 | 469 | 61 | 712 |
Agricultural Real Estate [Member] | |||||
ALLOWANCE FOR CREDIT LOSSES: | |||||
Beginning balance | 346 | 1,217 | 1,040 | 958 | 958 |
Provision (Credit) | 10 | (291) | (684) | (32) | |
Ending Balance | 356 | 926 | 356 | 926 | 1,040 |
Ending balance: individually evaluated for impairment | 636 | 636 | 691 | ||
Ending balance: collectively evaluated for impairment | 356 | 290 | 356 | 290 | 349 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 |
FINANCING RECEIVABLES: | |||||
Ending balance | 204,787 | 179,051 | 204,787 | 179,051 | 198,033 |
Ending balance: individually evaluated for impairment | 2,588 | 6,051 | 2,588 | 6,051 | 6,725 |
Ending balance: collectively evaluated for impairment | 202,003 | 173,000 | 202,003 | 173,000 | 191,107 |
Ending balance: loans acquired with deteriorated credit quality | 196 | 196 | 201 | ||
Agricultural [Member] | |||||
ALLOWANCE FOR CREDIT LOSSES: | |||||
Beginning balance | 754 | 720 | 709 | 701 | 701 |
Charge Offs | (1) | (143) | |||
Recoveries | 1 | 1 | 1 | 7 | |
Provision (Credit) | 1 | (33) | 46 | 122 | |
Ending Balance | 756 | 687 | 756 | 687 | 709 |
Ending balance: individually evaluated for impairment | 54 | 54 | 1 | ||
Ending balance: collectively evaluated for impairment | 756 | 633 | 756 | 633 | 708 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 |
FINANCING RECEIVABLES: | |||||
Ending balance | 128,818 | 105,722 | 128,818 | 105,722 | 118,504 |
Ending balance: individually evaluated for impairment | 1,334 | 247 | 1,334 | 247 | 20 |
Ending balance: collectively evaluated for impairment | 127,484 | 105,475 | 127,484 | 105,475 | 118,484 |
Commercial Real Estate [Member] | |||||
ALLOWANCE FOR CREDIT LOSSES: | |||||
Beginning balance | 10,427 | 8,831 | 9,130 | 7,415 | 7,415 |
Recoveries | 2 | 3 | 7 | 8 | |
Provision (Credit) | 1,122 | (469) | 2,414 | 942 | |
Ending Balance | 11,551 | 8,365 | 11,551 | 8,365 | 9,130 |
Ending balance: individually evaluated for impairment | 500 | 710 | 500 | 710 | 664 |
Ending balance: collectively evaluated for impairment | 11,051 | 7,655 | 11,051 | 7,655 | 8,466 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 |
FINANCING RECEIVABLES: | |||||
Ending balance | 1,061,904 | 727,418 | 1,061,904 | 727,418 | 847,110 |
Ending balance: individually evaluated for impairment | 4,187 | 3,607 | 4,187 | 3,607 | 3,561 |
Ending balance: collectively evaluated for impairment | 1,057,699 | 723,577 | 1,057,699 | 723,577 | 843,299 |
Ending balance: loans acquired with deteriorated credit quality | 18 | 234 | 18 | 234 | 250 |
Commercial and Industrial [Member] | |||||
ALLOWANCE FOR CREDIT LOSSES: | |||||
Beginning balance | 5,365 | 2,837 | 3,847 | 3,346 | 3,346 |
Charge Offs | (5) | (6) | (814) | ||
Recoveries | 8 | 9 | 82 | 19 | |
Provision (Credit) | 297 | 973 | 1,747 | 1,263 | |
Ending Balance | 5,670 | 3,814 | 5,670 | 3,814 | 3,847 |
Ending balance: individually evaluated for impairment | 1,936 | 1,000 | 1,936 | 1,000 | 825 |
Ending balance: collectively evaluated for impairment | 3,734 | 2,814 | 3,734 | 2,814 | 3,022 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 |
FINANCING RECEIVABLES: | |||||
Ending balance | 260,000 | 225,382 | 260,000 | 225,382 | 240,138 |
Ending balance: individually evaluated for impairment | 2,003 | 1,215 | 2,003 | 1,215 | 1,003 |
Ending balance: collectively evaluated for impairment | 257,948 | 223,803 | 257,948 | 223,803 | 238,849 |
Ending balance: loans acquired with deteriorated credit quality | 49 | 364 | 49 | 364 | 286 |
Consumer [Member] | |||||
ALLOWANCE FOR CREDIT LOSSES: | |||||
Beginning balance | 567 | 613 | 625 | 606 | 606 |
Charge Offs | (123) | (95) | (328) | (195) | |
Recoveries | 35 | 39 | 132 | 137 | |
Provision (Credit) | 246 | 49 | 296 | 58 | |
Ending Balance | 725 | 606 | 725 | 606 | 625 |
Ending balance: individually evaluated for impairment | 3 | ||||
Ending balance: collectively evaluated for impairment | 725 | 606 | 725 | 606 | 622 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 |
FINANCING RECEIVABLES: | |||||
Ending balance | 71,063 | 55,619 | 71,063 | 55,619 | 57,829 |
Ending balance: individually evaluated for impairment | 17 | 15 | 17 | 15 | 26 |
Ending balance: collectively evaluated for impairment | 71,046 | 55,604 | 71,046 | 55,604 | 57,803 |
Unallocated [Member] | |||||
ALLOWANCE FOR CREDIT LOSSES: | |||||
Beginning balance | 26 | 220 | 34 | 13 | 13 |
Provision (Credit) | (20) | 284 | (28) | 491 | |
Ending Balance | 6 | 504 | 6 | 504 | 34 |
Ending balance: collectively evaluated for impairment | 6 | 504 | 6 | 504 | 34 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 |
Unfunded Loan Commitment & Letters of Credit [Member] | |||||
ALLOWANCE FOR CREDIT LOSSES: | |||||
Beginning balance | 1,167 | 1,145 | 1,041 | 641 | 641 |
Other Non-interest expense related to unfunded | (49) | (106) | 77 | 398 | |
Ending Balance | 1,118 | 1,039 | 1,118 | 1,039 | 1,041 |
Ending balance: collectively evaluated for impairment | 1,118 | 1,039 | 1,118 | 1,039 | 1,041 |
Ending balance: loans acquired with deteriorated credit quality | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | Jun. 03, 2022 USD ($) Director shares | Jun. 04, 2021 USD ($) Director shares | Oct. 01, 2021 USD ($) shares |
Earnings Per Share [Abstract] | |||
Number of directors received shares | shares | 240 | 272 | 68 |
Number of directors received shares | 12 | 10 | |
Number of directors received prorated dollar value of shares | 4 | ||
Compensation annual basis committee award | $ | $ 10,013 | $ 6,000 | $ 1,523 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||||||
Net income | $ 8,954 | $ 8,271 | $ 8,102 | $ 5,920 | $ 4,983 | $ 4,909 | $ 25,327 | $ 15,812 |
Less: distributed earnings allocated to participating securities | (26) | (20) | (67) | (49) | ||||
Less: undistributed earnings allocated to participating securities | (42) | (31) | (148) | (77) | ||||
Net earnings available to common shareholders | $ 8,886 | $ 5,869 | $ 25,112 | $ 15,686 | ||||
Weighted average common shares outstanding including participating securities | 13,083,145 | 11,209,732 | 13,071,859 | 11,199,309 | ||||
Less: average unvested restricted shares | (99,838) | (96,197) | (111,209) | (89,075) | ||||
Weighted average common shares outstanding | 12,983,307 | 11,113,535 | 12,960,650 | 11,110,234 | ||||
Basic earnings per share | $ 0.68 | $ 0.53 | $ 1.94 | $ 1.41 | ||||
Diluted earnings per share | $ 0.68 | $ 0.53 | $ 1.94 | $ 1.41 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Estimated Fair Values and Related Carrying or Notional Amounts (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Securities - available-for-sale | $ 395,485 | $ 429,931 |
Financial Liabilities: | ||
Other borrowings | 10,000 | 40,000 |
Subordinated notes, net of unamortized issuance costs | 34,557 | 34,471 |
Reported Value Measurement [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 70,670 | 180,823 |
Interest-bearing time deposits | 5,187 | 10,913 |
Securities - available-for-sale | 395,485 | 429,931 |
Other securities | 8,227 | 8,162 |
Loans held for sale | 2,182 | 7,714 |
Loans, net | 2,122,626 | 1,841,177 |
Interest receivable | 9,856 | 7,209 |
Financial Liabilities: | ||
Total Deposits | 2,283,036 | 2,193,462 |
Federal funds purchased and securities sold under agreement to repurchase | 55,802 | 29,268 |
Federal Home Loan Bank advances | 102,147 | 24,065 |
Other borrowings | 10,000 | 40,000 |
Subordinated notes, net of unamortized issuance costs | 34,557 | 34,471 |
Interest payable | 787 | 1,125 |
Fair Value [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 70,670 | 180,823 |
Interest-bearing time deposits | 5,187 | 10,933 |
Securities - available-for-sale | 395,485 | 429,931 |
Other securities | 8,227 | 8,162 |
Loans held for sale | 2,219 | 7,844 |
Loans, net | 2,080,950 | 1,864,386 |
Interest receivable | 9,856 | 7,209 |
Financial Liabilities: | ||
Total Deposits | 2,270,176 | 2,197,543 |
Federal funds purchased and securities sold under agreement to repurchase | 55,802 | 29,268 |
Federal Home Loan Bank advances | 103,588 | 24,305 |
Other borrowings | 10,000 | 40,000 |
Subordinated notes, net of unamortized issuance costs | 35,003 | 35,000 |
Interest payable | 787 | 1,125 |
Level 1 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 70,670 | 180,823 |
Securities - available-for-sale | 95,162 | 89,177 |
Level 2 [Member] | ||
Financial Assets: | ||
Interest-bearing time deposits | 5,187 | 10,933 |
Securities - available-for-sale | 296,957 | 335,981 |
Financial Liabilities: | ||
Total Deposits | 506,928 | 473,689 |
Other borrowings | 10,000 | 40,000 |
Subordinated notes, net of unamortized issuance costs | 35,003 | 35,000 |
Level 3 [Member] | ||
Financial Assets: | ||
Securities - available-for-sale | 3,366 | 4,773 |
Other securities | 8,227 | 8,162 |
Loans held for sale | 2,219 | 7,844 |
Loans, net | 2,080,950 | 1,864,386 |
Interest receivable | 9,856 | 7,209 |
Financial Liabilities: | ||
Total Deposits | 1,763,248 | 1,723,854 |
Federal funds purchased and securities sold under agreement to repurchase | 55,802 | 29,268 |
Federal Home Loan Bank advances | 103,588 | 24,305 |
Interest payable | 787 | 1,125 |
Interest Bearing Deposits [Member] | Reported Value Measurement [Member] | ||
Financial Liabilities: | ||
Total Deposits | 1,313,263 | 1,248,294 |
Interest Bearing Deposits [Member] | Fair Value [Member] | ||
Financial Liabilities: | ||
Total Deposits | 1,313,263 | 1,248,044 |
Interest Bearing Deposits [Member] | Level 3 [Member] | ||
Financial Liabilities: | ||
Total Deposits | 1,313,263 | 1,248,044 |
Non Interest Bearing Deposits [Member] | Reported Value Measurement [Member] | ||
Financial Liabilities: | ||
Total Deposits | 506,928 | 473,689 |
Non Interest Bearing Deposits [Member] | Fair Value [Member] | ||
Financial Liabilities: | ||
Total Deposits | 506,928 | 473,689 |
Non Interest Bearing Deposits [Member] | Level 2 [Member] | ||
Financial Liabilities: | ||
Total Deposits | 506,928 | 473,689 |
Time Deposits [Member] | Reported Value Measurement [Member] | ||
Financial Liabilities: | ||
Total Deposits | 462,845 | 471,479 |
Time Deposits [Member] | Fair Value [Member] | ||
Financial Liabilities: | ||
Total Deposits | 449,985 | 475,810 |
Time Deposits [Member] | Level 3 [Member] | ||
Financial Liabilities: | ||
Total Deposits | $ 449,985 | $ 475,810 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | $ 395,485 | $ 429,931 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 95,162 | 89,177 |
Level 1 [Member] | Fair Value on a Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 95,162 | 89,177 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 296,957 | 335,981 |
Level 2 [Member] | Fair Value on a Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 296,957 | 335,981 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 3,366 | 4,773 |
Level 3 [Member] | Fair Value on a Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 3,366 | 4,773 |
U.S. Treasury [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 95,162 | 89,177 |
U.S. Treasury [Member] | Level 1 [Member] | Fair Value on a Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 95,162 | 89,177 |
U.S. Government Agencies [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 138,020 | 156,886 |
U.S. Government Agencies [Member] | Level 2 [Member] | Fair Value on a Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 138,020 | 156,886 |
Mortgage-backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 90,264 | 117,927 |
Mortgage-backed Securities [Member] | Level 2 [Member] | Fair Value on a Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 90,264 | 117,927 |
State and Local Governments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 72,039 | 65,941 |
State and Local Governments [Member] | Level 2 [Member] | Fair Value on a Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 68,673 | 61,168 |
State and Local Governments [Member] | Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | 3,366 | 4,773 |
State and Local Governments [Member] | Level 3 [Member] | Fair Value on a Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | $ 3,366 | $ 4,773 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2022 Security | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Security transfer from Level 3 to Level 2 | Security | 1 | |||
Collateral dependent impaired loans categorized as Level 3 | $ 10,753 | $ 11,939 | $ 11,849 | |
Specific allocation for collateral dependent impaired loans | 2,436 | 2,184 | $ 2,400 | |
Impairment | 1 | 414 | ||
Collateral Dependent [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Specific allocation for collateral dependent impaired loans | 2,400 | 2,200 | ||
Level 3 [Member] | Collateral Dependent [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans categorized as Level 3 | $ 2,500 | $ 8,500 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Changes in the Level 3 Fair Value Category of Unobservable Inputs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
State and Local Governments Tax-Exempt [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning Balance | $ 2,089 | $ 2,410 | $ 2,307 | $ 0 |
Change in Market Value | (19) | (9) | (77) | (17) |
Purchases | 0 | 0 | 0 | 2,418 |
Payments & Maturities | 0 | (155) | (160) | (155) |
Reclassification & Adjustments | 0 | 0 | 0 | |
Ending Balance | 2,070 | 2,246 | 2,070 | 2,246 |
State and Local Governments Taxable[Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning Balance | 1,325 | 1,538 | 2,466 | 1,562 |
Change in Market Value | (29) | (17) | (181) | (41) |
Purchases | 0 | 0 | 0 | 0 |
Payments & Maturities | 0 | 0 | 0 | |
Reclassification & Adjustments | 0 | 0 | (989) | 0 |
Ending Balance | 1,296 | 1,521 | 1,296 | 1,521 |
State and Local Governments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning Balance | 3,414 | 3,948 | 4,773 | 1,562 |
Change in Market Value | (48) | (26) | (258) | (58) |
Purchases | 0 | 0 | 0 | 2,418 |
Payments & Maturities | 0 | (155) | (160) | (155) |
Reclassification & Adjustments | 0 | 0 | (989) | 0 |
Ending Balance | $ 3,366 | $ 3,767 | $ 3,366 | $ 3,767 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements (Detail) $ in Thousands | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 395,485 | $ 429,931 |
State and Local Governments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 72,039 | 65,941 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 3,366 | 4,773 |
Level 3 [Member] | State and Local Governments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 3,366 | $ 4,773 |
Valuation Technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Unobservable Inputs | us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputDiscountRateMember |
Level 3 [Member] | Collateral Dependent Impaired Loans [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 2,482 | $ 8,527 |
Valuation Technique | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember |
Level 3 [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 52 | $ 3,157 |
Valuation Technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Unobservable Inputs | us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputDiscountRateMember |
Level 3 [Member] | Other Real Estate Owned-Residential [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 99 | |
Valuation Technique | us-gaap:MarketApproachValuationTechniqueMember | |
Unobservable Inputs | us-gaap:MeasurementInputAppraisedValueMember | |
Discount rate | 32.72 | |
Level 3 [Member] | Minimum [Member] | State and Local Governments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate | 2.13 | 0.21 |
Level 3 [Member] | Minimum [Member] | Collateral Dependent Impaired Loans [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate | 20 | 20 |
Level 3 [Member] | Minimum [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate | 0.09 | 1.94 |
Level 3 [Member] | Weighted Average | State and Local Governments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate | 3.96 | 1.33 |
Level 3 [Member] | Weighted Average | Collateral Dependent Impaired Loans [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate | 23.80 | 34.78 |
Level 3 [Member] | Weighted Average | Mortgage Servicing Rights [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate | 1.81 | 18.44 |
Level 3 [Member] | Weighted Average | Other Real Estate Owned-Residential [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate | 32.72 | |
Level 3 [Member] | Maximum [Member] | State and Local Governments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate | 4.59 | 1.77 |
Level 3 [Member] | Maximum [Member] | Collateral Dependent Impaired Loans [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate | 23.87 | 53.95 |
Level 3 [Member] | Maximum [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate | 1.85 | 27.70 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Level 3 [Member] | Collateral Dependent Impaired Loans [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis, Total | $ 2,482 | $ 8,527 |
Level 3 [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis, Total | 52 | 3,157 |
Other Real Estate Owned-Residential [Member] | Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis, Total | 99 | |
Fair Value on Nonrecurring Basis [Member] | Collateral Dependent Impaired Loans [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis, Total | 2,482 | 8,527 |
Fair Value on Nonrecurring Basis [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis, Total | 52 | 3,157 |
Fair Value on Nonrecurring Basis [Member] | Level 3 [Member] | Collateral Dependent Impaired Loans [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis, Total | 2,482 | 8,527 |
Fair Value on Nonrecurring Basis [Member] | Level 3 [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis, Total | $ 52 | 3,157 |
Fair Value on Nonrecurring Basis [Member] | Other Real Estate Owned-Residential [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis, Total | 99 | |
Fair Value on Nonrecurring Basis [Member] | Other Real Estate Owned-Residential [Member] | Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis, Total | $ 99 |
Federal Funds Purchased and S_3
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase - Additional Information (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Fees And Commissions Income [Abstract] | ||
Federal funds purchased | $ 20,356,000 | $ 0 |
Securities sold under agreements to repurchase | $ 35,400,000 | $ 29,300,000 |
Federal Funds Purchased and S_4
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase - Schedule of Remaining Contractual Maturity in Repurchase Agreements (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Federal funds purchased | $ 20,356,000 | $ 0 |
Repurchase agreements, Remaining contractual maturity of the agreements | 35,400,000 | 29,300,000 |
Total | 55,802,000 | 29,268,000 |
Overnight & Continuous [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Federal funds purchased | 20,356,000 | |
Total | 21,715,000 | 1,062,000 |
30-90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 5,069,000 | 3,900,000 |
Greater Than 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 29,018,000 | 24,306,000 |
US Treasury & Agency Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements, Remaining contractual maturity of the agreements | 35,446,000 | 29,268,000 |
US Treasury & Agency Securities [Member] | Overnight & Continuous [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements, Remaining contractual maturity of the agreements | 1,359,000 | 1,062,000 |
US Treasury & Agency Securities [Member] | 30-90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements, Remaining contractual maturity of the agreements | 5,069,000 | 3,900,000 |
US Treasury & Agency Securities [Member] | Greater Than 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements, Remaining contractual maturity of the agreements | $ 29,018,000 | $ 24,306,000 |
Subordinated Notes - Additional
Subordinated Notes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | ||
Debt instrument basis points | 2.63% | |
Debt instrument, frequency of periodic payment | semi-annually | |
Term of loan | 5 years | 3 years |
Redemption price of principal amount of notes redeemed | 100% | |
Private Placement | ||
Debt Instrument [Line Items] | ||
Subordinated notes | $ 35 | |
Fixed-to-floating interest rate | 3.25% | |
Percentage of notes prices on principal amount | 100% |
Subordinated Notes - Schedule o
Subordinated Notes - Schedule of Subordinated Notes (Detail) - Subordinated Notes - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal | $ 35,000 | $ 35,000 |
Unamortized Note Issuance Costs | $ (443) | $ (529) |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Jun. 14, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | |
Subsequent Event [Line Items] | |||
Business combination, acquisition related costs | $ 357,100 | $ 357,100 | |
Merger Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Maximum number of shares exchanged in merger agreement | 758,566 | ||
PPSF [Member] | Merger Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Share price per share | $ 34.28 | ||
Transaction value for common stock and cash | $ 27,000,000 | ||
Number of shares elect to receive in merger agreement | 0.6597 | ||
Share price | $ 24 |