Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FMAO | ||
Entity Registrant Name | FARMERS & MERCHANTS BANCORP, INC. | ||
Entity Central Index Key | 0000792966 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
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, Postal Zip Code | 43502 | ||
City Area Code | 419 | ||
Local Phone Number | 446-2501 | ||
Entity Incorporation, State or Country Code | OH | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Interactive Data Current | Yes | ||
Entity Address, State or Province | OH | ||
Title of 12(b) Security | Common Stock, No Par Value | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 13,608,422 | ||
Entity Public Float | $ 433,654,732 | ||
Auditor Name | FORVIS, LLP | ||
Auditor Location | Fort Wayne, Indiana | ||
Auditor Firm ID | 686 | ||
Documents Incorporated by Reference | Part III of Form 10-K – Portions of the definitive Proxy Statement for the 2023 Annual Meeting of Shareholders of Farmers & Merchants Bancorp, Inc. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 83,085 | $ 135,485 |
Federal funds sold | 1,324 | 45,338 |
Total cash and cash equivalents | 84,409 | 180,823 |
Interest-bearing time deposits | 4,442 | 10,913 |
Securities - available-for-sale | 390,789 | 429,931 |
Other securities, at cost | 9,799 | 8,162 |
Loans held for sale | 827 | 7,714 |
Loans, net | 2,336,074 | 1,841,177 |
Premises and equipment | 28,381 | 26,913 |
Construction in progress | 278 | |
Goodwill | 86,358 | 80,434 |
Mortgage servicing rights | 3,549 | 3,157 |
Other real estate owned | 159 | |
Bank owned life insurance | 33,073 | 27,558 |
Other assets | 37,372 | 21,359 |
Total Assets | 3,015,351 | 2,638,300 |
Deposits | ||
Noninterest-bearing | 532,794 | 473,689 |
Interest-bearing | ||
NOW accounts | 750,887 | 650,466 |
Savings | 627,203 | 597,828 |
Time | 557,980 | 471,479 |
Total deposits | 2,468,864 | 2,193,462 |
Federal funds purchased and securities sold under agreement to repurchase | 54,206 | 29,268 |
Federal Home Loan Bank (FHLB) advances | 127,485 | 24,065 |
Other borrowings | 10,000 | 40,000 |
Subordinated notes, net of unamortized issuance costs | 34,586 | 34,471 |
Dividend payable | 2,832 | 2,461 |
Accrued expenses and other liabilities | 19,238 | 17,406 |
Total liabilities | 2,717,211 | 2,341,133 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock - No par value 20,000,000 shares authorized; issued and outstanding 14,564,425 shares 12/31/22 and 14,063,999 shares 12/31/21 | 135,497 | 122,674 |
Treasury stock - 956,003 shares 12/31/22, 997,766 shares 12/31/21 | (11,573) | (11,724) |
Retained earnings | 212,449 | 189,401 |
Accumulated other comprehensive loss | (38,233) | (3,184) |
Total stockholders' equity | 298,140 | 297,167 |
Total Liabilities and Stockholders' Equity | $ 3,015,351 | $ 2,638,300 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 14,564,425 | 14,063,999 |
Common stock, shares outstanding | 14,564,425 | 14,063,999 |
Treasury Stock, shares | 956,003 | 997,766 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Income | |||
Loans, including fees | $ 94,264 | $ 71,645 | $ 65,317 |
Debt securities: | |||
U.S. Treasury and government agencies | 4,225 | 3,496 | 3,369 |
Municipalities | 1,415 | 1,170 | 1,079 |
Dividends | 318 | 174 | 142 |
Federal funds sold | 21 | 31 | 20 |
Other | 906 | 324 | 242 |
Total interest income | 101,149 | 76,840 | 70,169 |
Interest Expense | |||
Deposits | 9,883 | 5,418 | 8,638 |
Federal funds purchased and securities sold under agreements to repurchase | 1,197 | 649 | 775 |
Borrowed funds | 2,160 | 785 | 980 |
Subordinated notes | 1,122 | 490 | |
Total interest expense | 14,362 | 7,342 | 10,393 |
Net Interest Income Before Provision for Loan Losses | 86,787 | 69,498 | 59,776 |
Provision for Loan Losses | 4,600 | 3,444 | 6,981 |
Net Interest Income After Provision for Loan Losses | 82,187 | 66,054 | 52,795 |
Noninterest Income | |||
Net gain on sale of loans | 1,353 | 3,897 | 4,022 |
Net gain on sale of available-for-sale securities | 293 | 270 | |
Total noninterest income | 15,537 | 17,609 | 16,787 |
Noninterest Expense | |||
Salaries and wages | 22,700 | 20,184 | 18,488 |
Employee benefits | 6,903 | 7,322 | 5,601 |
Net occupancy expense | 2,566 | 2,184 | 2,271 |
Furniture and equipment | 4,207 | 3,324 | 3,143 |
Data processing | 3,956 | 3,501 | 1,768 |
Franchise taxes | 1,384 | 1,473 | 1,346 |
ATM expense | 2,217 | 1,846 | 1,690 |
Advertising | 1,646 | 1,436 | 1,332 |
Net (gain) loss on sale of other assets owned | (259) | 434 | 7 |
FDIC assessment | 905 | 1,073 | 633 |
Mortgage servicing rights amortization | 145 | 1,580 | 1,031 |
Consulting fees | 1,302 | 1,634 | 968 |
Other general and administrative | 9,577 | 8,175 | 6,098 |
Total noninterest expense | 57,249 | 54,166 | 44,376 |
Income Before Income Taxes | 40,475 | 29,497 | 25,206 |
Income Taxes | 7,960 | 6,002 | 5,111 |
Net Income | $ 32,515 | $ 23,495 | $ 20,095 |
Basic Earnings Per Share | $ 2.46 | $ 2.01 | $ 1.80 |
Diluted Earnings Per Share | 2.46 | 2.01 | 1.80 |
Dividends Declared | $ 0.8125 | $ 0.71 | $ 0.66 |
Customer Service Fees [Member] | |||
Noninterest Income | |||
Noninterest income | $ 9,958 | $ 9,671 | $ 8,893 |
Other Service Charges and Fees [Member] | |||
Noninterest Income | |||
Noninterest income | $ 4,226 | $ 3,748 | $ 3,602 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net Income | $ 7,188 | $ 8,954 | $ 8,271 | $ 8,102 | $ 7,683 | $ 5,920 | $ 4,983 | $ 4,909 | $ 32,515 | $ 23,495 | $ 20,095 |
Other Comprehensive Income (Loss) (Net of Tax): | |||||||||||
Net unrealized gain (loss) on available-for-sale securities | (44,366) | (10,948) | 6,091 | ||||||||
Reclassification adjustment for realized gain on sale of available-for-sale securities | (293) | (270) | |||||||||
Net unrealized gain (loss) on available-for-sale securities | (44,366) | (11,241) | 5,821 | ||||||||
Tax expense (benefit) | (9,317) | (2,360) | 1,222 | ||||||||
Other comprehensive income (loss) | (35,049) | (8,881) | 4,599 | ||||||||
Comprehensive Income (Loss) | $ (2,534) | $ 14,614 | $ 24,694 |
Consolidated Statements of Chan
Consolidated Statements of Changes to Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2019 | $ 230,258 | $ 81,535 | $ (12,456) | $ 160,081 | $ 1,098 |
Beginning balance, shares at Dec. 31, 2019 | 11,136,935 | ||||
Net income | 20,095 | 20,095 | |||
Other comprehensive income (loss) | 4,599 | 4,599 | |||
Issuance of common stock in acquisition | 825 | 500 | 325 | ||
Issuance of common stock in acquisition, shares | 40,049 | ||||
Purchase of treasury stock | (383) | (383) | |||
Purchase of treasury stock, shares | (16,779) | ||||
Issuance of restricted stock (Net of forfeitures) | 1 | $ (755) | 383 | 373 | |
Issuance of restricted stock (Net of forfeitures), Shares | 35,207 | ||||
Stock-based compensation expense | 1,024 | $ 1,024 | |||
Director stock awards | 48 | 24 | 24 | ||
Director stock awards, shares | 2,132 | ||||
Cash dividends declared | (7,307) | (7,307) | |||
Ending balance at Dec. 31, 2020 | 249,160 | $ 81,804 | (11,932) | 173,591 | 5,697 |
Ending balance, shares at Dec. 31, 2020 | 11,197,544 | ||||
Net income | 23,495 | 23,495 | |||
Other comprehensive income (loss) | (8,881) | (8,881) | |||
Issuance of common stock in acquisition | 41,078 | $ 41,078 | |||
Issuance of common stock in acquisition, shares | 1,833,845 | ||||
Purchase of treasury stock | (338) | (338) | |||
Purchase of treasury stock, shares | (14,611) | ||||
Issuance of restricted stock (Net of forfeitures) | $ (1,030) | 507 | 523 | ||
Issuance of restricted stock (Net of forfeitures), Shares | 46,175 | ||||
Stock-based compensation expense | 822 | $ 822 | |||
Director stock awards | 73 | 39 | 34 | ||
Director stock awards, shares | 3,280 | ||||
Cash dividends declared | (8,242) | (8,242) | |||
Ending balance at Dec. 31, 2021 | 297,167 | $ 122,674 | (11,724) | 189,401 | (3,184) |
Ending balance, shares at Dec. 31, 2021 | 13,066,233 | ||||
Net income | 32,515 | 32,515 | |||
Other comprehensive income (loss) | (35,049) | (35,049) | |||
Issuance of common stock in acquisition | 13,443 | $ 13,446 | (3) | ||
Issuance of common stock in acquisition, shares | 500,426 | ||||
Issuance of common stock in acquisition, net off repurchases | 500,301 | ||||
Purchase of treasury stock | (308) | (308) | |||
Purchase of treasury stock, shares | (9,488) | ||||
Issuance of restricted stock (Net of forfeitures) | $ (1,522) | 428 | 1,094 | ||
Issuance of restricted stock (Net of forfeitures), Shares | 48,496 | ||||
Stock-based compensation expense | 899 | $ 899 | |||
Director stock awards | 120 | 34 | 86 | ||
Director stock awards, shares | 2,880 | ||||
Cash dividends declared | (10,647) | (10,647) | |||
Ending balance at Dec. 31, 2022 | $ 298,140 | $ 135,497 | $ (11,573) | $ 212,449 | $ (38,233) |
Ending balance, shares at Dec. 31, 2022 | 13,608,422 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes to Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Issuance of shares of restricted stock, Shares | 56,496 | 48,750 | 37,382 |
Cash dividends declared, per share | $ 0.8125 | $ 0.71 | $ 0.66 |
Common Stock [Member] | |||
Issuance of shares of restricted stock, Shares | 56,496 | 48,750 | 37,382 |
Issuance of shares of restricted stock, forfeitures | 8,000 | 2,575 | 2,175 |
Issuance of shares of common stock in acquisition | 500,426 | 1,833,845 | 40,049 |
Issuance of shares, purchase of common stock in acquisition | 125 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | |||
Net income | $ 32,515 | $ 23,495 | $ 20,095 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation | 2,739 | 2,610 | 2,531 |
Amortization of premiums on available-for-sale securities, net | 2,090 | 2,203 | 1,289 |
Servicing rights amortization and impairment | 145 | 1,580 | 1,031 |
Amortization of core deposit intangible | 1,011 | 677 | 720 |
Amortization of customer list intangible | 123 | 123 | 16 |
Net amortization (accretion) of fair value adjustments | (4,531) | (1,231) | 455 |
Amortization of subordinated note issuance costs | 115 | 50 | |
Stock-based compensation expense | 899 | 822 | 1,024 |
Director stock awards | 120 | 73 | 48 |
Deferred income taxes | 171 | (1,805) | (1,691) |
Provision for loan loss | 4,600 | 3,444 | 6,981 |
Gain on sale of loans held for sale | (1,353) | (3,897) | (4,022) |
Originations of loans held for sale | (69,410) | (121,172) | (210,029) |
Proceeds from sale of loans held for sale | 77,650 | 125,095 | 210,559 |
(Gain) loss on sale of other assets owned | (259) | 434 | 7 |
Gain on sales of available-for-sale securities | (293) | (270) | |
Increase in cash surrender value of bank owned life insurance | (691) | (636) | (359) |
Gain on bank owned life insurance | (430) | ||
Change in other assets and other liabilities, net | (5,265) | 3,169 | (573) |
Net cash provided by operating activities | 40,669 | 34,741 | 27,382 |
Activity in available-for-sale securities: | |||
Maturities, prepayments and calls | 31,064 | 56,310 | 91,003 |
Sales | 9,292 | 11,843 | |
Purchases | (38,377) | (170,629) | (183,563) |
Activity in other securities, at cost: | |||
Purchases | (1,615) | (670) | (129) |
Purchase of bank owned life insurance | (10,000) | ||
Proceeds from bank owned life insurance | 816 | ||
Change in interest-bearing time deposits | 6,471 | 20,216 | (344) |
Proceeds from redemption of FHLB stock | 1,249 | 1,522 | |
Proceeds from sales of other assets owned | 440 | 457 | 226 |
Additions to premises and equipment | (2,600) | (1,965) | (3,222) |
Loan originations and principal collections, net | (395,610) | (167,867) | (84,354) |
Net cash used in investing activities | (389,904) | (265,694) | (177,724) |
Cash Flows from Financing Activities | |||
Net change in deposits | 165,861 | 170,785 | 307,648 |
Net change in federal funds purchased and securities sold under agreements to repurchase | 24,938 | (971) | (17,834) |
Proceeds of FHLB advances | 140,000 | ||
Repayment of FHLB advances | (37,394) | (157) | (7,493) |
Proceeds (Repayment) of other borrowings | (30,000) | 40,000 | |
Purchase of treasury stock | (308) | (338) | (383) |
Proceeds from issuance of subordinated notes | 34,421 | ||
Cash dividends paid on common stock | (10,276) | (7,670) | (7,186) |
Net cash provided by financing activities | 252,821 | 236,070 | 274,752 |
Net Increase (Decrease) in Cash and Cash Equivalents | (96,414) | 5,117 | 124,410 |
Cash and Cash Equivalents - Beginning of Year | 180,823 | 175,706 | 51,296 |
Cash and Cash Equivalents - End of Year | 84,409 | 180,823 | 175,706 |
Supplemental cash flow information: | |||
Interest paid | 13,748 | 7,048 | 10,093 |
Income taxes paid | 7,702 | 6,150 | 6,473 |
Supplemental noncash disclosures: | |||
Transfer of loans to other real estate owned | 287 | 71 | |
Cash dividends declared not paid | 2,832 | 2,461 | 1,889 |
Treasury stock repurchased | (308) | (338) | (383) |
Ossian Financial Services, Inc. [Member] | |||
Activity in other securities, at cost: | |||
Acquisition, 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 | ||
Perpetual Federal Savings Bank [Member] | |||
Activity in other securities, at cost: | |||
Acquisition, net of cash received | (12,588) | ||
Supplemental noncash disclosures: | |||
Fair value of assets acquired | 420,162 | ||
Less: common stock issued | 41,078 | ||
Cash paid for the capital stock | 59,234 | ||
Liabilities assumed | $ 319,850 | ||
Peoples Federal Savings And Loan [Member] | |||
Activity in other securities, at cost: | |||
Acquisition, net of cash received | 9,074 | ||
Supplemental noncash disclosures: | |||
Fair value of assets acquired | 141,818 | ||
Less: common stock issued | 13,446 | ||
Treasury stock repurchased | (3) | ||
Cash paid for the capital stock | 9,806 | ||
Liabilities assumed | $ 118,569 | ||
Adams County Financial Resources [Member] | |||
Supplemental noncash disclosures: | |||
Fair value of assets acquired | 825 | ||
Less: common stock issued | $ 825 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | Apr. 30, 2021 USD ($) |
Ossian Financial Services, Inc. [Member] | |
Purchase of assets | $ 20,001 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies Nature of Operations The Farmers & Merchants Bancorp, Inc. (the Company) through its bank subsidiary, The Farmers & Merchants State Bank (the Bank) provides a variety of financial services to individuals and small businesses through its offices in Northwest Ohio and Northeast Indiana. Consolidation Policy The consolidated financial statements include the accounts of Farmers & Merchants Bancorp, Inc. and its wholly-owned subsidiaries, The Farmers & Merchants State Bank (the Bank), a commercial banking institution and Farmers & Merchants Risk Management, Inc. (the Captive), a Captive insurance company. All significant inter-company balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of mortgage servicing rights and the valuation of goodwill. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. The Bank’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Bank has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions in the agricultural industry. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Bank to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Cash and Cash Equivalents For purposes of the consolidated statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. This includes cash on hand, amounts due from banks, and federal funds sold. Generally, federal funds sold are outstanding for one day periods. Restrictions on Cash and Amounts Due from Banks Effective March 26, 2020, the Bank is no longer required to maintain average balances on hand with the Federal Reserve Bank. The Company and its subsidiaries maintain cash balances with high quality financial institutions. At times such balances may be in excess of the federally insured limits. Securities Debt securities are classified as available-for-sale. Securities available-for-sale are carried at fair value with unrealized gains and losses reported in other comprehensive income (loss). Net realized gains and losses on securities available for sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income (loss). Gains and losses on sales of securities are determined on the specific-identification method. Declines in the fair value of securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The related write-downs are included in earnings as realized losses. Other Securities Other Securities consist of stock in the Federal Home Loan Banks of Cincinnati and Indianapolis (the “FHLBs”), which is held to enable the Bank to conduct business with the entities. The FHLBs sell and purchase their stock at par. The FHLBs stock is carried at cost and held as collateral security for all indebtedness of the Bank to the Federal Home Loan Bank. The FHLBs stock is evaluated for impairment as conditions warrant. Other Securities also include the Bank’s capital contributions to four Ohio Equity Funds for Housing Limited Partnership. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at the amount of unpaid principal, reduced by unearned discounts, unamortized premiums or discounts on purchased loans, and deferred loan fees and costs, as well as, by the allowance for loan losses. Interest income is accrued on a daily basis based on the principal outstanding. Generally, a loan is classified as nonaccrual and the accrual of interest income is generally discontinued when a loan becomes ninety days past due as to principal or interest and these loans are placed on a “cash basis” for purposes of income recognition. Management may elect to continue the accrual of interest when the estimated net realizable value of collateral is sufficient to cover the principal and accrued interest, and the loan is in the process of collection. When a loan is placed on nonaccrual status, all previously accrued and unpaid interest receivable is charged against income. Loan origination and commitment fees and certain direct loan origination costs are deferred and amortized as a net adjustment to the related loan’s yield. The Bank is generally amortizing these costs over the contractual life of such loans. Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged to income. Loans deemed to be uncollectable and changes in the allowance relating to loans are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based on management’s periodic review of the collectability of the loans in light of historical experiences, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are subject to revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. The unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and agricultural loans by either the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral if the loan is collateral dependent. 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. 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. Large groups of homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual consumer loans for impairment, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. For more information regarding the actual composition and classification of loans involved in the establishment of the allowance for loan loss, please see Note 4 provided here with the notes to consolidated financial statements. Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized in a valuation allowance by charges to income. S ervicing Assets Servicing assets are recognized as separate assets when rights are acquired through purchase or sale of financial assets. Capitalized servicing rights are amortized into noninterest expense in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. Fees received for servicing loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in operating income as loan payments are received. Costs of servicing loans are charged to expense as incurred. Goodwill and Other Intangible Assets Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed for impairment at least annually. If possible impairment is likely, the Bank will utilize the assistance of an independent third party for an appraisal and any such impairment is recognized in the period identified. Periodically, the Bank will have an independent third party assess the possibility of impairment of Goodwill. The goodwill impairment analysis consisted of a first step goodwill impairment test which was used to identify potential impairment by comparing the fair value of the relevant reporting entity with its carrying value, including goodwill. The analysis was performed under guidance of FASB ASC 350. In the quantitative testing completed as of November 30, 2022, the excess fair value of capital was $ 427.5 million or 137.2 % over the carrying value and was over 4.9 times the value of goodwill being carried. Therefore, the Bank concluded it is unlikely impairment of goodwill has occurred from the goodwill established from the Bank’s acquisition of Knisely on December 31, 2007, the acquisition of Bank of Geneva on January 1, 2019, the acquisition of Ossian State Bank on April 30, 2021, the acquisition of Perpetual Federal Savings Bank on October 1, 2021 and the acquisition of Peoples Federal Savings and Loan on October 1, 2022. Other intangible assets consist of core deposit and customer list intangible assets arising from business acquisitions. They are initially measured at fair value and then are amortized on a straight line method over their estimated useful lives and evaluated for impairment. These assets are included in other assets on the consolidated balance sheets. Off Balance Sheet Instruments In the ordinary course of business, the Bank has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. Foreclosed Real Estate Foreclosed real estate held for sale is carried at the lower of fair value minus estimated costs to sell, or cost. Costs of holding foreclosed real estate are charged to expense in the current period, except for significant property improvements, which are capitalized. Valuations are periodically performed by management and an allowance is established by a charge to noninterest expense if the carrying value exceeds the fair value minus the estimated costs to sell. Foreclosed real estate is classified as other real estate owned. The net loss from operations of foreclosed real estate held for sale is reported in noninterest expense. The Bank held no other real estate owned at December 31, 2022. At December 31, 2021 the Bank’s holding of other real estate owned totaled $ 159 thousand. Bank Premises and Equipment Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is based on the estimated useful lives of the various properties and is computed using straight line and accelerated methods. Costs for maintenance and repairs are charged to operations as incurred. Gains and losses on dispositions are included in current operations. Bank Owned Life Insurance Bank owned life insurance policies are carried at their cash surrender value. The Bank recognizes tax-free income from the periodic increases in the cash surrender value of these policies and from death benefits. Revenue Recognition Accounting Standards Codification 606, “Revenue from Contracts with Customer” (ASC 606) provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue generated from financial instruments, including loans and investment securities, are not included within the scope of ASC 606. The adoption of ASC 606 did not result in a change to the accounting for any of the Company’s revenue streams that are within scope of the amendments. Revenue-generating activities that are within the scope of ASC 606 that are presented as noninterest income in the Company’s consolidated statements of income include: o Customer service fees – these include miscellaneous service fees and transaction-based fees charged for certain services, such as debit card or credit card. Revenue is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services. o Other service charges and fees – these include service fees charged for deposit account maintenance and activity along with transaction-based fees charged for certain services, such as overdraft activities, returned check charges and wire transfers. Revenue is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services. Income Tax The Company’s income tax expense consists of the following components for federal and state: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in tax expense. Based on management’s analysis, the Company did not have any uncertain tax positions as of December 31, 2022 and 2021. With a few exceptions, the Company is no longer subject to U.S. Federal, state or local examinations by tax authorities for years before 2019. Earnings Per Share Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. See Note 12 for additional information. Stock-Based Compensation The fair value of restricted common stock is their fair market value on the date of grant. The fair value of restricted stock is amortized as compensation expense on a straight-line basis over the vesting period of the grants. Compensation expense recognized is included in salaries and wages in the consolidated statements of income. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation – put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Treasury Stock Common stock shares repurchased are recorded at market value on date of purchase. Restricted shares when awarded are removed from treasury stock using the weighted average method . Other Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of other comprehensive income (loss). The components of other comprehensive income (loss) and related tax effects are as follows: (In Thousands) 2022 2021 2020 Net unrealized gain (loss) on available-for-sale $ ( 44,366 ) $ ( 10,948 ) $ 6,091 Reclassification adjustment for gain on sale of - ( 293 ) ( 270 ) Net unrealized gain (loss) on available-for-sale ( 44,366 ) ( 11,241 ) 5,821 Tax expense (benefit) ( 9,317 ) ( 2,360 ) 1,222 Other comprehensive income (loss) $ ( 35,049 ) $ ( 8,881 ) $ 4,599 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 was 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 Current Expected Credit Losses (“CECL”) methodology applies to loans held for investment, held to maturity debt securities, and off balance-sheet credit exposures. The ASU allows for several different methods of computing the ALLL: closed pool, vintage, average charge-off, migration, probability of default / loss given default, discounted cash flow, and regression. Based on its analysis of observable data, the Company concluded the average charge-off method to be the most appropriate and statistically relevant. A 20-year lookback will be utilized as the historical loss period due to its inclusion of several economic cycles and relevance to real estate secured assets. The Company began working with its third-party service provider to review parallel reports 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. The Company has contracted with a third party to begin an independent validation of its processes and methodology. This validation will be performed on an annual basis. The ALLL has been computed through 2022 by applying historical loss rates, adjusted for qualitative factors, to pools of loans. Upon implementation of the ASU, the expected loss estimate will be made up of a historical lookback of actual losses applied over the life of the loan portfolio and adjusted for qualitative factors and forecasted losses based on economic and forward-looking data applied over a reasonable and supportable forecast period. The impact of the adoption of the ASU is estimated to be a one-time cumulative-effect adjustment to our reserves for loans and unfunded commitments in a range between $ 3 million and $ 7 million. This estimate may change as the Company continues to improve its processes and methodology. The qualitative impact of the new accounting standard will still be directed by many of the same factors that impacted the previous methodology for computing the ALLL including, but not limited to, quality and experience of staff, changes in the value of collateral, concentrations of credit in loan types or industries and changes to lending policies. In addition to this, the Company will also use reasonable and supportable forecasts. Examples of this are regression analyses of data from the Federal Open Market Committee quarterly economic projections for change in real GDP and of national unemployment. The Company does not anticipate any material changes to its business practices as a result of implementing the ASU. The Company adopted 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 adopted ASU 2022-02 on January 1, 2023. |
Business Combination & Asset Pu
Business Combination & Asset Purchase | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combination & Asset Purchase | Note 2 – Business Combination & Asset Purchase On October 1, 2022, the Company acquired Peoples-Sidney Financial Corporation (PPSF), the bank holding company for Peoples Federal Savings and Loan Bank, a community bank with three full-service offices in Sidney, Anna and Jackson Center, Ohio in addition to a separate drive-thru location in Sidney, Ohio. PPSF shareholders had 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 Farmers & Merchants Bancorp, Inc. (FMAO) shares in the merger was no less than 758,566 . Fractional shares of FMAO common stock were not issued in respect of fractional interests arising from the merger but were paid in cash pursuant to the merger agreement. PPSF had 1,167,025 shares outstanding on October 1, 2022. The share price of FMAO stock on October 1, 2022 was $ 26.87 . Total consideration for the acquisition was approximately $ 23.2 million consisting of which $ 9.8 million was in cash and $ 13.4 million in stock. As a result of the acquisition, the Company will have an opportunity to increase its deposit base in Sidney and the greater Shelby County and reduce transaction costs. The Company also expects to reduce costs through economies of scale. In 2022, the Company has incurred additional third-party acquisition-related costs of $ 2.4 million. These expenses are comprised primarily of data processing costs of $ 1.1 million, consulting fees of $ 542.9 thousand, employee benefits of $ 126.5 thousand and other general and administrative expense of $ 501.0 thousand in the Company’s consolidated statement of income for the year ended December 31, 2022. 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 $ 23.2 million, $ 6.0 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 $ 5.9 million, resulting from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of the Company and Peoples Federal Savings and Loan Bank. Of that total amount, none of the purchase price is deductible for tax purposes. The following table summarizes the consideration paid for Peoples Federal Savings and Loan Bank and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date Fair Value of Consideration Transferred (In Thousands) Cash $ 9,806 Common Shares ( 500,426 shares) 13,446 Treasury stock repurchased ( 125 shares) ( 3 ) Total $ 23,249 Recognized amounts of identifiable assets acquired and liabilities assumed Assets Cash and cash equivalents $ 18,881 Other securities, at cost 1,271 Loans, net 101,755 Premises and equipment 1,906 Goodwill 5,924 Other assets 12,081 Total Assets Purchased $ 141,818 Liabilities Deposits Noninterest bearing $ 7,139 Interest bearing 104,719 Total deposits 111,858 Federal Home Loan Bank (FHLB) advances 896 Accrued expenses and other liabilities 5,815 Total Liabilities Assumed $ 118,569 The fair value of the assets acquired includes loans with a fair value of $ 101.8 million. The gross principal and contractual interest due under the contracts is $ 116.1 million of which none is expected to be uncollectible. The loans have a weighted average life of 44.4 months. The fair value of building and land included in premises and equipment was written up $ 581 thousand with $ 597 thousand attributable to the buildings and is being amortized over the remaining life of each building. The combined average remaining life was 12.8 years. The fair value for certificates of deposit incorporates a valuation amount of $ 662 thousand which is being amortized over 1.1 years. The fair value of Federal Home Loan Bank (FHLB) advances included a valuation amount of $ 69 thousand which is being amortized over 5.2 years. The Company acquired no 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 be collected. Changes in accretable yield, or income expected to be collected, are as follows: 2022 (In Thousands) Beginning Balance Additions 856 Accretion ( 58 ) Reclassification from nonaccretable difference - Disposals - Ending Balance $ 798 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 increased its deposit base and reduced transaction costs. The Company also reduced costs through economies of scale. In 2021, the Company incurred additional third-party acquisition-related costs of $ 1.7 million. These expenses are comprised of employee benefits of $ 131.5 thousand, data processing costs of $ 444.9 thousand, consulting fees of $ 636.8 thousand and other general and administrative expense of $ 488.3 thousand in the Company’s consolidated statement of income for the year ended December 31, 2021. In 2022, the Company has incurred additional third-party acquisition-related costs of $ 148.5 thousand. These expenses are comprised of employee benefits of $ 90.8 thousand and other general and administrative expense of $ 57.7 thousand in the Company’s consolidated statement of income for the year ended December 31, 2022. 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 ( 1,833,845 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 December 31, 2021. The amounts of loans at October 1, 2021, December 31, 2021 and December 31, 2022 are as follows: 2021 (In Thousands) Balance - October 1, 2021 Consumer Real Estate $ 608 Agricultural Real Estate 118 Commercial Real Estate 234 Consumer 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 Consumer - Carrying amount, net of fair value adjustment of $ 190 $ 510 2022 (In Thousands) Balance - December 31, 2022 Consumer Real Estate $ 288 Agricultural Real Estate 107 Commercial Real Estate - Consumer - Carrying amount, net of fair value adjustment of $ 128 $ 267 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 Consumer 6 Total required payments receivable $ 1,407 Cash flows expected to be collected at acquisition $ 728 Basis in acquired loans at acquisition $ 965 During 2022, five consumer real estate purchased credit impaired loans were paid off in full. The associated discount originally recognized at acquisition of $ 62.1 thousand was included in the loan interest income in the Company’s consolidated statement of income for the year ended December 31, 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 $ 47.4 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 $ 127.7 thousand at December 31, 2022, $ 189.8 thousand at December 31, 2021 and $ 237.2 thousand at October 1, 2021. Changes in accretable yield, or income expected to be collected, are as follows: 2022 2021 (In Thousands) (In Thousands) Beginning Balance $ 5,262 $ - Additions 294 5,592 Accretion ( 1,318 ) ( 330 ) Reclassification from nonaccretable difference - - Disposals ( 2 ) - Ending Balance $ 4,236 $ 5,262 On April 30, 2021, the Company acquired Ossian Financial Services, Inc., (OSFI), 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 OSFI received $ 67.71 in cash for each share. OSFI 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 will have an opportunity to increase its deposit base and reduce transaction costs. The Company also expects to reduce costs through economies of scale. In 2020, the Company incurred $ 42.5 thousand of third-party acquisition-related costs. The expenses recognized in 2020 related to other general and administration expenses of $ 30.0 thousand and consulting fees of $ 12.5 thousand. These acquisition expenses were included in the Company’s 2020 consolidated statement of income. In 2021, the Company incurred additional third-party acquisition-related costs of $ 2.2 million. These expenses are comprised of employee benefits of $ 694.1 thousand, data processing costs of $ 938.9 thousand, consulting fees of $ 255.2 thousand, ATM expense of $ 13.8 thousand and other general and administrative expense of $ 255.0 thousand in the Company’s consolidated statement of income for the year ended December 31, 2021. In 2022, the Company has incurred additional third-party acquisition-related costs of $ 31.6 thousand. These expenses are included in other general and administrative expense in the Company’s consolidated statement of income for the year ended December 31, 2022. 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 is being 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 the buildings and is being accreted over the useful life of 39 years. The fair value for certificates of deposit incorporates a valuation amount of $ 59 thousand which is being accreted over 1.4 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 December 31, 2021. The amounts of loans at April 30, 2021, December 31, 2021 and December 31, 2022 are as follows: 2021 (In Thousands) Balance - April 30, 2021 Consumer Real Estate $ 24 Agricultural Real Estate 981 Commercial Real Estate 315 Commercial and 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 and Industrial 285 Carrying amount, net of fair value adjustment of $ 321 $ 208 2022 (In Thousands) Balance - December 31, 2022 Consumer Real Estate $ 19 Agricultural Real Estate - Commercial Real Estate - Commercial and Industrial - Carrying amount, net of fair value adjustment of $ 10 $ 9 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 and 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 year ended December 31, 2022. During the third quarter 2021, two agricultural real estate purchased credit impaired loans were paid off in full. The associated discount originally recognized at acquisition of $ 4.2 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 $ 10.1 thousand at December 31, 2022, $ 320.6 thousand at December 31, 2021 and $ 324.8 thousand at April 30, 2021. Changes in accretable yield, or income expected to be collected, are as follows: 2022 2021 (In Thousands) (In Thousands) Beginning Balance $ 645 $ - Additions 1 762 Accretion ( 176 ) ( 117 ) Reclassification from nonaccretable difference - - Disposals - - Ending Balance $ 470 $ 645 Changes in accretable yield, or income expected to be collected, for the acquisition of Bank of Geneva completed in 2019, are as follows: 2022 2021 (In Thousands) (In Thousands) Beginning Balance $ 1,198 $ 1,653 Additions 13 17 Accretion ( 426 ) ( 431 ) Reclassification from nonaccretable difference - - Disposals - ( 41 ) Ending Balance $ 785 $ 1,198 The results of operations of Ossian State Bank, Perpetual Federal Savings Bank and Peoples Federal Savings and Loan Bank have been included in the Company’s consolidated financial statements since the acquisition dates of April 30, 2021, October 1, 2021 and October 1, 2022, respectively. The following schedule includes pro-forma results for the years ended December 31, 2022, 2021 and 2020 as if all three acquisitions had occurred as of the beginning of the comparable prior reporting periods. 2022 2021 2020 Summary of Operations Net Interest Income - Before Provision for Loan Losses $ 90,290 $ 84,362 $ 81,636 Provision for Loan Losses 4,513 3,445 6,901 Net Interest Income After Provision for Loan Losses 85,777 80,917 74,735 Noninterest Income 14,099 18,931 17,668 Noninterest Expense 57,426 57,622 55,765 Income Before Income Taxes 42,450 42,226 36,638 Income Taxes 8,185 8,458 7,242 Net Income $ 34,265 $ 33,768 $ 29,396 Basic and Diluted Earnings Per Share $ 2.59 $ 2.57 $ 2.24 The pro-forma information includes adjustments for interest income on loans, amortization of intangibles arising from the transaction, interest expense on deposits acquired, premises expense for the branches acquired and the related income tax effects. 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 acquisition been consummated as of that time, nor is it intended to be a projection of future results. 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, the acquisition of Perpetual Federal Savings Bank resulted in the recognition of $ 668 thousand in core deposits and the acquisition of Peoples Federal Savings and Loan resulted in the recognition of $ 6.0 million 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 for the years ended December 31, 2022, 2021 and 2020 was $ 1.0 million, $ 677 thousand, and $ 720 thousand, respectively. Included in the 2020 amortization expense was $ 160 thousand related to the purchase of the Custar office on December 13, 2013. Future amortization expense of core deposit intangible assets is as follows: Geneva Ossian Perpetual Peoples Total (In thousands) 2023 $ 560 $ 140 $ 95 $ 861 $ 1,656 2024 560 140 95 861 1,656 2025 560 140 95 861 1,656 2026 - 140 95 861 1,096 2026 - 140 95 861 1,096 Thereafter - 47 74 1,506 1,627 Total $ 1,680 $ 747 $ 549 $ 5,811 $ 8,787 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 following table summarizes the consideration paid for ACFR and the amounts of the assets acquired: Fair Value of Consideration Transferred (In Thousands) Common Shares ( 40,049 shares) $ 825 Total $ 825 Recognized amounts of identifiable assets acquired and liabilities assumed Assets Premises and equipment $ 25 Customer list intangible 800 Total Assets Purchased $ 825 The customer list intangible amortization expense for the years ended December 31, 2022, 2021 and 2020 was $ 123 , $ 123 and $ 16 thousand, respectively. Future amortization expense of customer list intangible is as follows: (In thousands) 2023 $ 123 2024 123 2025 123 2026 123 2027 47 Thereafter - Total $ 539 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 3 – Securities The amortized cost and fair value of securities, with gross unrealized gains and losses, follows: (In Thousands) 2022 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value Available-for-Sale: U.S. Treasury $ 104,507 $ - $ ( 9,829 ) $ 94,678 U.S. Government agencies 156,817 - ( 17,050 ) 139,767 Mortgage-backed securities 101,068 - ( 14,141 ) 86,927 State and local governments 76,794 69 ( 7,446 ) 69,417 Total available-for-sale securities $ 439,186 $ 69 $ ( 48,466 ) $ 390,789 (In Thousands) 2021 Gross Gross Fair Amortized Unrealized Unrealized Market 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 Bank 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 other than temporarily impaired. 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 Bank currently does not hold any securities with other than temporary impairment. Information pertaining to securities with gross unrealized losses at December 31, 2022 and 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: 2022 (In Thousands) (In Thousands) Less Than Twelve Months Twelve Months & Over Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value U.S. Treasury $ ( 207 ) $ 9,121 $ ( 9,622 ) $ 85,557 U.S. Government agencies ( 1,081 ) 24,560 ( 15,969 ) 114,906 Mortgage-backed securities ( 2,454 ) 26,905 ( 11,687 ) 60,022 State and local governments ( 3,223 ) 38,771 ( 4,223 ) 25,610 Total available-for-sales securities $ ( 6,965 ) $ 99,357 $ ( 41,501 ) $ 286,095 2021 (In Thousands) (In Thousands) Less Than Twelve Months Twelve Months & Over Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value U.S. Treasury $ ( 1,598 ) $ 89,177 $ - $ - U.S. Government agencies ( 1,898 ) 86,739 ( 1,584 ) 41,738 Mortgage-backed securities ( 1,050 ) 63,157 ( 412 ) 16,434 State and local governments ( 296 ) 17,727 ( 225 ) 5,487 Total available-for-sales securities $ ( 4,842 ) $ 256,800 $ ( 2,221 ) $ 63,659 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 rate changes, 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. Sales of $ 9.3 and $ 11.8 million for 2021 and 2020, respectively, generated gross realized gains for the years ended December 31, as presented below: (In Thousands) 2022 2021 2020 Gross realized gains $ - $ 293 $ 270 Gross realized losses - - - Net realized gains $ - $ 293 $ 270 Tax expense related to net realized gains $ - $ 62 $ 57 The net realized gain on sales and related tax expense is a reclassification out of accumulated other comprehensive income (loss). The net realized gain is included in net gain on sale of securities available-for-sale and the related tax expense is included in income taxes in the consolidated statements of income. The amortized cost and fair value of debt securities at December 31, 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 $ 20,732 $ 20,283 After one year through five years 209,735 190,333 After five years through ten years 105,681 91,379 After ten years 1,970 1,867 Total $ 338,118 $ 303,862 Mortgage-backed securities 101,068 86,927 Total $ 439,186 $ 390,789 Investments with a carrying value and fair value of $ 134.8 million at December 31, 2022 and $ 115.0 million at December 31, 2021 were pledged to secure public deposits and securities sold under repurchase agreements. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans | Note 4 - Loans The Company had $ 827 thousand in loans held for sale at December 31, 2022 as compared to $ 7.7 million in loans held for sale at December 31, 2021. Loans at December 31 are summarized below: (In Thousands) Loans: 2022 2021 Consumer Real Estate $ 494,423 $ 395,873 Agricultural Real Estate 220,819 198,343 Agricultural 128,733 118,368 Commercial Real Estate 1,152,603 848,477 Commercial and Industrial 242,360 208,270 Consumer 89,147 57,737 Other 29,818 32,089 2,357,903 1,859,157 Less: Net deferred loan fees and costs ( 1,516 ) ( 1,738 ) 2,356,387 1,857,419 Less: Allowance for loan losses ( 20,313 ) ( 16,242 ) Loans - Net $ 2,336,074 $ 1,841,177 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 the future contracts. The risk related to weather is often mitigated by requiring 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, 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. During 2022, the remaining PPP balances were forgiven and consequently paid off. Included in commercial loans for 2021 are $ 2.9 million of Paycheck Protection Program (PPP) loans, administered by the Small Business Administration (SBA). The PPP provided loans to eligible business 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 other factors. 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 following is a maturity schedule by major category of loans excluding fair value adjustments at December 31, 2022: (In Thousands) After One Within Year Within After One Year Five Years Five Years Total Consumer Real Estate $ 8,890 $ 34,961 $ 456,556 $ 500,407 Agricultural Real Estate 525 7,116 214,297 221,938 Agricultural 59,119 47,113 22,544 128,776 Commercial Real Estate 26,670 336,890 789,304 1,152,864 Commercial and Industrial 81,552 108,729 52,715 242,996 Consumer 2,089 47,052 40,357 89,498 Other 235 1,219 28,375 29,829 $ 179,080 $ 583,080 $ 1,604,148 $ 2,366,308 The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of December 31, 2022: (In Thousands) Fixed Variable Rate Rate Consumer Real Estate $ 354,420 $ 140,003 Agricultural Real Estate 144,702 76,117 Agricultural 52,867 75,866 Commercial Real Estate 941,927 210,676 Commercial and Industrial 130,513 111,847 Consumer 88,972 175 Other 20,029 9,789 Other loans are included in the commercial and industrial category for the remainder of the tables in this Note 4, unless specifically noted separately. [Remainder of this page intentionally left blank.] The following table represents the contractual aging of the recorded investment in past due loans by portfolio classification of loans as of December 31, 2022 and 2021, net of deferred loan fees and costs: December 31, 2022 30-59 Days 60-89 Days Greater Than Total Current Total Recorded Investment > 90 Days and Accruing Consumer Real Estate $ 1,536 $ 635 $ 90 $ 2,261 $ 492,162 $ 494,423 $ - Agricultural Real Estate 118 2 1,550 1,670 218,844 220,514 - Agricultural 433 - 152 585 128,341 128,926 - Commercial Real Estate 74 - 180 254 1,150,257 1,150,511 - Commercial and Industrial 953 - 182 1,135 270,984 272,119 - Consumer 83 37 - 120 89,774 89,894 - Total $ 3,197 $ 674 $ 2,154 $ 6,025 $ 2,350,362 $ 2,356,387 $ - December 31, 2021 30-59 Days 60-89 Days Greater Than Total Current Total Recorded Investment > 90 Days and Accruing 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 portfolio class of loans as of December 31, 2022 and December 31, 2021: (In Thousands) 2022 2021 Consumer Real Estate $ 612 $ 824 Agricultural Real Estate 1,921 6,477 Agriculture 152 20 Commercial Real Estate 903 600 Commercial and Industrial 1,096 149 Consumer 5 6 Total $ 4,689 $ 8,076 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, based on the most recent analysis performed as of the time periods shown of December 31, 2022 and December 31, 2021. (In Thousands) Agricultural Real Estate Agricultural Commercial Real Estate Commercial and Industrial Other 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 1-2 $ 9,912 $ 8,720 $ 5,857 $ 4,178 $ 8,718 $ 10,894 $ 780 $ 4,604 $ - $ - 3 47,405 42,180 33,671 38,623 370,035 238,132 67,506 46,547 10,921 11,408 4 146,143 129,301 88,992 75,164 737,745 568,038 167,291 152,736 18,897 20,681 5 10,389 4,599 228 227 9,751 14,509 3,592 986 - - 6 6,665 13,233 178 312 24,262 15,537 3,132 3,176 - - 7 - - - - - - - - - - 8 - - - - - - - - - - Total $ 220,514 $ 198,033 $ 128,926 $ 118,504 $ 1,150,511 $ 847,110 $ 242,301 $ 208,049 $ 29,818 $ 32,089 For consumer residential real estate, the Company also evaluates credit quality based on the aging status of the loan, which 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 December 31, 2022 and December 31, 2021. (In Thousands) Consumer Real Estate 2022 2021 Grade Pass $ 492,575 $ 392,940 Special mention (5) 676 1,673 Substandard (6) 1,172 1,192 Doubtful (7) - - Total $ 494,423 $ 395,805 (In Thousands) Consumer - Credit Card Consumer - Other 2022 2021 2022 2021 Performing $ - $ 3,906 $ 89,853 $ 53,820 Nonperforming - 13 41 90 Total $ - $ 3,919 $ 89,894 $ 53,910 Information about impaired loans as of and for the years ended December 31, 2022 and 2021 is as follows: (In Thousands) 2022 2021 Impaired loans without a valuation allowance $ 4,194 $ 1,228 Impaired loans with a valuation allowance 4,663 10,711 Total impaired loans $ 8,857 $ 11,939 Valuation allowance related to impaired loans $ 1,996 $ 2,184 Total nonaccrual loans $ 4,689 $ 8,076 Total loans past-due ninety days or more and still accruing $ - $ - (In Thousands) 2022 2021 2020 Average investment in impaired loans $ 10,710 $ 12,247 $ 10,232 Interest income recognized on impaired loans $ 361 $ 292 $ 269 Interest income recognized on a cash basis on impaired $ 97 $ 188 $ 135 There were no additional funds committed to be advanced in connection with impaired loans. The Bank had approximately $ 3.6 million and $ 7.6 million of its impaired loans classified as troubled debt restructured as of December 31, 2022 and December 31, 2021. Modification programs focused 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 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. One of the three loans was charged off in December of 2022. The ALLL includes a $ 837 thousand specific allocation for one of the loans as of December 31, 2022. The fourth loan was a work-out loan that was included on Peoples TDR list which had some debt written off when the loan was granted. Two loans previously reported as TDR were paid off in April 2022. During 2021, there were three new loans considered TDR. One loan resulted in payment changes from a monthly payment to monthly interest only payments. One loan was considered TDR as a result of being in a deficiency balance upon sale of property. The loan is set for a 3 year term and a 10 year amortization. The ALLL includes a $ 825 thousand specific allocation on the principal balance of this loan as of December 31, 2021. The last loan was rewritten to improve collateral position. Capitalized interest, late charges and prepayment penalties were charged off immediately. The ALLL includes a $ 313 thousand specific allocation for this loan as of December 31, 2021. Two loans previously reported as TDR were paid off in June 2021 and three loans previously reported as TDR were fully charged off in March 2021. December 31, 2022 December 31, 2021 (In thousands) (In thousands) Troubled Debt Restructurings Number of Pre- Post- Troubled Debt Restructurings Number of Pre- Post- Consumer Real Estate 1 $ 95 $ 95 Consumer Real Estate - $ - $ - Agricultural Real Estate - - - Agricultural Real Estate 1 1,655 1,655 Agricultural - - - Agricultural - - - Commercial Real Estate 1 74 74 Commercial Real Estate 1 382 382 Commercial and Industrial 2 1,232 1,232 Commercial and Industrial 1 1,000 1,000 For the years ended December 31, 2022 and 2021, there were no TDR’s that subsequently defaulted after modification. For the Bank’s impaired TDR loans, the Bank may utilize a measurement incorporating the present value of expected future cash flows discounted at the loan's effective rate of interest or the fair value of collateral if the loan is collateral dependent. To determine the 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 and heavily relied upon. 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 down 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 portfolio class of loans as of December 31, 2022 and 2021: (In Thousands) 2022 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Interest Income Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 509 $ 509 $ - $ 355 $ 5 $ 12 Agricultural Real Estate 2,280 2,385 - 2,048 25 6 Agricultural 152 152 - 588 - 2 Commercial Real Estate 1,234 1,272 - 1,252 29 43 Commercial and Industrial 17 417 - 135 2 10 Consumer 2 2 - 15 1 - With a specific allowance recorded: Consumer Real Estate 60 60 6 15 - 1 Agricultural Real Estate - - - 1,388 - - Agricultural - - - - - - Commercial Real Estate 2,874 2,874 438 3,176 150 - Commercial and Industrial 1,564 1,564 1,551 1,736 149 23 Consumer 165 165 1 2 - - Totals: Consumer Real Estate $ 569 $ 569 $ 6 $ 370 $ 5 $ 13 Agricultural Real Estate $ 2,280 $ 2,385 $ - $ 3,436 $ 25 $ 6 Agricultural $ 152 $ 152 $ - $ 588 $ - $ 2 Commercial Real Estate $ 4,108 $ 4,146 $ 438 $ 4,428 $ 179 $ 43 Commercial and Industrial $ 1,581 $ 1,981 $ 1,551 $ 1,871 $ 151 $ 33 Consumer $ 167 $ 167 $ 1 $ 17 $ 1 $ - (In Thousands) 2021 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Interest Income 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 $ - As of December 31, 2022 the Company had no foreclosed residential real estate property obtained by physical possession or 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 proceedings are in process according to local jurisdictions as of December 31, 2021. The 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. The following is an analysis of the allowance for credit losses for the years ended December 31: (In Thousands) 2022 2021 2020 Allowance for Loan Losses Balance at beginning of year $ 16,242 $ 13,672 $ 7,228 Provision for loan loss 4,600 3,444 6,981 Loans charged off ( 827 ) ( 1,332 ) ( 720 ) Recoveries 298 458 183 Balance at ending of year $ 20,313 $ 16,242 $ 13,672 Allowance for Unfunded Loan Commitments $ 1,262 $ 1,041 $ 641 Total Allowance for Credit Losses $ 21,575 $ 17,283 $ 14,313 The Company segregates its Allowance for Loan and Lease Losses (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 AULC is reported within other liabilities on the balance sheet while the ALLL is netted within the loans on the consolidated balance sheet. The ACL presented above represents the full amount of reserves available to absorb possible credit losses. The following table breaks down the activity within ALLL for each loan portfolio segment and shows the contribution provided by both the recoveries and the provision along with the reduction of the allowance caused by charge-offs. [Remainder of this page intentionally left blank.] Additional analysis related to the allowance for credit losses as of December 31, 2022 and 2021 is as follows: (In Thousands) 2022 Consumer Agricultural Real Estate Agricultural Commercial Real Estate Commercial Consumer Unfunded Unallocated Total ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 857 $ 1,040 $ 709 $ 9,130 $ 3,847 $ 625 $ 1,041 $ 34 $ 17,283 Charge-Offs - - - - ( 418 ) ( 409 ) - - ( 827 ) Recoveries 20 - 7 9 93 169 - - 298 Provision 121 ( 691 ) 35 2,785 1,860 506 - ( 16 ) 4,600 Other Non-interest - - - - - - 221 - 221 Ending Balance $ 998 $ 349 $ 751 $ 11,924 $ 5,382 $ 891 $ 1,262 $ 18 $ 21,575 Ending balance: $ 6 $ - $ - $ 438 $ 1,551 $ 1 $ - $ - $ 1,996 Ending balance: $ 992 $ 349 $ 751 $ 11,486 $ 3,831 $ 890 $ 1,262 $ 18 $ 19,579 Ending balance: loans $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 494,423 $ 220,514 $ 128,926 $ 1,150,511 $ 272,119 $ 89,894 $ - $ - $ 2,356,387 Ending balance: $ 569 $ 2,280 $ 152 $ 4,108 $ 1,581 $ 167 $ - $ - $ 8,857 Ending balance: $ 493,449 $ 218,039 $ 128,774 $ 1,146,389 $ 270,493 $ 89,727 $ - $ - $ 2,346,871 Ending balance: loans $ 405 $ 195 $ - $ 14 $ 45 $ - $ - $ - $ 659 (In Thousands) 2021 Consumer Agricultural Real Estate Agricultural Commercial Real Estate Commercial Consumer Unfunded Unallocated Total ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 633 $ 958 $ 701 $ 7,415 $ 3,346 $ 606 $ 641 $ 13 $ 14,313 Charge-Offs ( 19 ) ( 105 ) ( 143 ) - ( 814 ) ( 251 ) - - ( 1,332 ) Recoveries 13 - 14 10 257 164 - - 458 Provision (Credit) 230 187 137 1,705 1,058 106 - 21 3,444 Other Non-interest - - - - - - 400 - 400 Ending Balance $ 857 $ 1,040 $ 709 $ 9,130 $ 3,847 $ 625 $ 1,041 $ 34 $ 17,283 Ending balance: $ - $ 691 $ 1 $ 664 $ 825 $ 3 $ - $ - $ 2,184 Ending balance: $ 857 $ 349 $ 708 $ 8,466 $ 3,022 $ 622 $ 1,041 $ 34 $ 15,099 Ending balance: loans $ 37 $ - $ - $ - $ - $ - $ - $ - $ 37 FINANCING RECEIVABLES: Ending balance $ 395,805 $ 198,033 $ 118,504 $ 847,110 $ 240,138 $ 57,829 $ - $ - $ 1,857,419 Ending balance: $ 604 $ 6,725 $ 20 $ 3,561 $ 1,003 $ 26 $ - $ - $ 11,939 Ending balance: $ 394,489 $ 191,107 $ 118,484 $ 843,299 $ 238,849 $ 57,803 $ - $ - $ 1,844,031 Ending balance: loans $ 712 $ 201 $ - $ 250 $ 286 $ - $ - $ - $ 1,449 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 5 – Premises and Equipment The major categories of banking premises and equipment and accumulated depreciation at December 31 are summarized below: (In Thousands) 2022 2021 Land $ 6,896 $ 6,652 Buildings (useful life 15 - 39 years) 34,501 30,929 Furnishings (useful life 3 - 15 years) 26,448 23,160 67,845 60,741 Less: Accumulated depreciation ( 39,464 ) ( 33,828 ) Premises and Equipment (Net) $ 28,381 $ 26,913 Depreciation expense for the years ended December 31, 2022, 2021, and 2020 amounted to $ 2.7 , $ 2.6 , and $ 2.5 million, respectively. Construction in progress of $ 278 thousand as of December 31, 2022 relates to the construction of three new offices which are expected to be operational by end of third quarter 2023. |
Servicing
Servicing | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Servicing | Note 6 - Servicing Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of loans serviced for others were $ 375.6 and $ 380.8 million at December 31, 2022 and 2021, respectively. The balance of capitalized servicing rights included in other assets at December 31, 2022 and 2021, was $ 3.5 and $ 3.6 million, respectively. The capitalized addition of servicing rights is included in net gain on sale of loans on the consolidated statement of income. The fair market value of the capitalized servicing rights as of December 31, 2022 and 2021 was $ 5.1 million and $ 3.2 million, respectively. The valuations were completed by stratifying the loans into like groups based on loan type and term. Impairment was measured by estimating the fair value of each stratum, taking into consideration an estimated level of prepayment based upon current market conditions. An average constant prepayment rate of 7.7 % and 21.7 % were utilized for 2022 and 2021, respectively. All strata did show positive values in 2022 compared to the carrying value using a discount yield of 5.94 %. In 2021, all strata did not show positive values compared to carrying value using a discount yield of 1.97 % which resulted in the need to establish a $ 414 thousand valuation allowance. The following summarizes mortgage servicing rights capitalized and amortized during each year: (In Thousands) 2022 2021 Beginning of Year $ 3,571 $ 3,320 Capitalized Additions 537 1,417 Amortization ( 559 ) ( 1,166 ) Ending Balance, December 31 3,549 3,571 Valuation Allowance - ( 414 ) Mortgage Servicing Rights net, December 31 $ 3,549 $ 3,157 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | Note 7 - Deposits Time deposits as of December 31 consist of the following: (In Thousands) 2022 2021 Time deposits under $250,000 $ 495,891 $ 397,102 Time deposits of $250,000 or more 62,089 74,377 $ 557,980 $ 471,479 At December 31, 2022 the scheduled maturities for time deposits are as follows: (In Thousands) 2023 $ 383,052 2024 91,267 2025 62,412 2026 13,862 2027 7,068 Thereafter 319 $ 557,980 |
Federal Funds Purchased and Sec
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer [Abstract] | |
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase | Note 8 – Federal Funds Purchased and Securities Sold Under Agreement to Repurchase The Bank’s policy requires qualifying securities to be used as collateral for the underlying repurchase agreements. As of December 31, 2022 and 2021, securities with a market value of $ 43.6 million and $ 31.1 million, respectively, were pledged to secure the repurchase agreements. The table below presents the daily securities sold under agreement to repurchase and the term repurchase agreements. It does not include the Bank’s federal funds purchased. Daily Securities Sold Under Agreement to Repurchase Amount Weighted Maximum Amount Approximate Approximate Outstanding Average Borrowings Average Weighted Average at End Rate End Outstanding Outstanding in Interest Rate of Period (000's) of Period Month End (000's) Period (000's) For the Period 2022 $ 1,115 0.95 % $ 1,450 $ 1,169 0.43 % 2021 $ 1,062 0.70 % $ 1,991 $ 1,514 0.43 % Term CD's Sold Under Agreement to Repurchase Amount Weighted Maximum Amount Approximate Approximate Outstanding Average Borrowings Average Weighted Average at End Rate End Outstanding Outstanding in Interest Rate of Period (000's) of Period Month End (000's) Period (000's) For the Period 2022 $ 30,518 0.97 % $ 34,504 $ 31,573 2.54 % 2021 $ 28,206 1.00 % $ 28,362 $ 28,315 2.56 % The Company had $ 22.6 million of federal funds purchased as of December 31, 2022 and no federal funds purchased as of December 31, 2021. The $ 31.6 million in Securities Sold Under Agreements to Repurchase were comprised of U.S. Treasuries and government agency securities. The table below shows the remaining contractual maturity in the repurchase agreements and the collateral pledged as of December 31, 2022. December 31, 2022 Remaining Contractual Maturity of the Agreements Overnight & Continuous Up to 30 days 30-90 days Greater Than Total Federal funds purchased $ 22,573 $ - $ - $ - $ 22,573 Repurchase agreements US Treasury & agency securities 1,115 30,518 31,633 Total $ 23,688 $ - $ - $ 30,518 $ 54,206 |
Borrowings and Subordinated Not
Borrowings and Subordinated Notes | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings and Subordinated Notes | Note 9 – Borrowings and Subordinated Notes Short Term Debt Due to the funding requirement for the acquisition of PFSB to be provided from the holding company, the Company secured borrowings from a correspondent bank. Two loans were secured, the first a $ 30 million 12-month term note and the second a 12-month line of credit for $ 10 million. Both loans were advanced on October 1, 2021. Interest on both loans is due quarterly and accrues at a rate of 2.50 % per annum with reporting and capital covenants included. The structure of the acquisition required all accounting of the transaction to be recorded at the Bank level as Perpetual did not have a holding company. The Company advanced funds from the Bank to the Company to facilitate payoff of the term note and line of credit balance after regulatory approval was granted in the second quarter of 2022. The line of credit remained open for future liquidity needs. On September 29, 2022, the line of credit was advanced for $ 10 million for the acquisition of PFSL Interest on the line of credit is due quarterly and accrues at a rate of 5.50 % per annum with reporting and capital covenants included. The line of credit matures on September 30, 2023 . Long Term Debt Federal Home Loan Bank Advances Long term debt consists of various loans from the Federal Home Loan Banks. Repayment structures vary, ranging from monthly installments, annual payments or upon maturity. Interest payments are due monthly. Total borrowings were $ 127.4 million excluding an additional $ 47 thousand for fair value related to the acquisitions for December 31, 2022 compared to $ 23.9 million excluding $ 197 thousand for fair value for December 31, 2021. With the acquisition of Peoples Federal Savings and Loan Bank, the Bank undertook $ 965 thousand in advances with varying maturity dates from 2022 through 2028 . With the acquisition of Perpetual Federal Savings Bank, the Bank undertook $ 6 million in advances due in 2024. The advances were secured by a pledge of $ 232.9 and $ 193.2 million of mortgage loans as of December 31, 2022 and 2021, respectively under a blanket collateral agreement. The advances are subject to pre-payment penalties and the provisions and conditions of the credit policy of the Federal Home Loan Bank. The Bank had access to $ 73.0 and $ 69.0 million unsecured borrowings through correspondent banks as of December 31, 2022 and December 31, 2021, respectively. The Bank also had access to $ 130.4 million and $ 94.2 million through a Cash Management Advance with the Federal Home Loan Bank as of December 31, 2022 and December 31, 2021 respectively. The Bank had unpledged securities, which could be sold or used as collateral, of $ 249.6 million and $ 313.6 million at the end of the same time periods, respectively. An additional $ 2.0 million at December 31, 2022, and $ 91.2 million at December 31, 2021, were available from the Federal Home Loan Bank based on current pledging. The table below shows the maturities of the borrowings exclusive of the fair value. (In Thousands) 2023 $ 71,507 2024 32,500 2025 11,500 2026 - 2027 9,064 Thereafter 2,867 Total $ 127,438 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 are intended to qualify as Tier 2 capital for regulatory purposes. The Company intends 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. December 31, 2022 December 31, 2021 (In Thousands) Principal Unamortized Note Issuance Costs Principal Unamortized Note Issuance Costs Subordinated Notes $ 35,000 $ ( 414 ) $ 35,000 $ ( 529 ) [Remainder of this page intentionally left blank.] |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes The components of income tax expense (benefit) for the years ended December 31 are as follows: (In Thousands) 2022 2021 2020 Current: Federal $ 7,430 $ 7,536 $ 6,289 State 359 271 513 Total current 7,789 7,807 6,802 Deferred: Federal 227 ( 1,746 ) ( 1,596 ) State ( 56 ) ( 59 ) ( 95 ) Total deferred 171 ( 1,805 ) ( 1,691 ) Total Income Tax $ 7,960 $ 6,002 $ 5,111 The following is a reconciliation of the statutory federal income tax rate to the effective tax rate: (In Thousands) 2022 2021 2020 Federal income tax at statutory rates $ 8,489 $ 6,194 $ 5,294 (Decrease) increase resulting from: State income tax, net of federal benefit 239 167 330 Tax exempt interest ( 133 ) ( 116 ) ( 146 ) Section 831 deduction ( 270 ) ( 294 ) ( 266 ) Other ( 365 ) 51 ( 101 ) Total Income Tax $ 7,960 $ 6,002 $ 5,111 Deferred tax assets and liabilities at December 31 are comprised of the following: (In Thousands) 2022 2021 Deferred Tax Assets: Allowance for loan losses $ 4,623 $ 3,629 Deferred compensation 570 561 Net unrealized loss on available-for-sale securities 10,163 846 Fair value adjustments 2,152 1,913 Other 554 277 Total deferred tax assets 18,062 7,226 Deferred Tax Liabilities: Accreted discounts on bonds 54 22 Depreciation 1,083 772 FHLB stock dividends 1,011 828 Intangible amortization 2,640 1,282 Mortgage servicing rights 787 778 Prepaids 500 471 Other 424 173 Total deferred tax liabilities 6,499 4,326 Net Deferred Tax Asset (Liability) $ 11,563 $ 2,900 As part of the Perpetual acquisition, a net operating loss (NOL) carryforward was acquired that is subject to a Section 382 limitation. At the end of 2021, $ 377,807 of this NOL remained. This NOL was used in 2022 and no balance remains. The Peoples Federal Savings and Loan acquisition included a NOL of $ 2,789,124 . At the end of 2022, $ 2,638,002 of this NOL remained. The Corporation has additional paid-in capital that is considered restricted resulting from the acquisition of Perpetual in 2021 of approximately $ 2,779,000 and from the acquisition of Peoples in 2022 of approximately $ 2,174,000 . No deferred tax liability is required to be recorded for the Corporation’s tax bad debt reserves arising before December 31, 1987, unless it is apparent that the reserves will reverse in the near future. Unrecognized deferred taxes on these reserves would total $ 1,040,000 . If the portion of retained earnings representing these reserves is used for any purpose other than to absorb bad debts, it will be added to future taxable income and the related tax will be recognized as expense. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 11 - Employee Benefit Plans The Bank has established a 401(k) profit sharing plan which allows eligible employees to save at a minimum one percent of eligible compensation on a pre-tax or post-tax basis, subject to certain Internal Revenue Service limitations. The Bank will match 50 % of employee 401(k) contributions up to six percent of total eligible compensation. In addition, the Bank may make a discretionary contribution from time to time as is deemed advisable. A participant is 100 % vested in the participant’s deferral contributions. Employer matching contributions are funded annually and are immediately vested. Beginning in 2022, nonelective employer contributions are immediately vested at 100 %. Employees are immediately eligible upon hire to contribute to the plan and receive matching contributions. In order to be eligible for discretionary contributions, employees must work 1,000 hours in the plan year and be employed on the last day of the year. Contributions expensed for the 401(k) profit sharing plan for both the employer matching contribution and the discretionary contribution were $ 1.7 million, $ 1.5 million and $ 1.0 million for 2022, 2021 and 2020, respectively. Restricted Stock Awards The Company has a Long-Term Stock Incentive Plan under which 56,496 shares of the Company’s restricted stock were issued to 109 employees during 2022, 48,750 shares of restricted stock were issued to 96 employees during 2021 and 37,382 shares of restricted stock were issued to 92 employees during 2020. Under the plan, the shares generally vest 100 % in three years. During the 3 year vesting period, the employees receive dividends or dividend equivalent compensation on the shares. Due to employee termination, there were 8,000 , 2,575 and 2,175 shares forfeited during 2022, 2021 and 2020, respectively. During 2022, three employees retired and received 3,775 shares from the shares awarded in 2019, 2020 and 2021. In 2021, seven employees retired and received 4,425 shares from the shares awarded in 2018, 2019 and 2020. During 2020, due to retirement, eight employees received 10,890 shares from awards granted in 2017, 2018, 2019 and 2020. In 2022, 26,900 shares awarded in 2019 were 100% vested and 60 employees received the stock. During 2021, 18,845 shares awarded in 2018 were 100% vested and 50 employees received the stock. During 2020, 21,340 shares awarded in 2017 were 100% vested and 53 employees received the stock. One employee received accelerated vesting of 1,050 shares awarded in 2019, 2018 and 2017. Also during 2020, 1,600 shares awarded in 2019 were 100% vested and three employees received the stock. One employee received immediate vesting of 551 shares of stock. Compensation expense applicable to the restricted stock awards totaled $ 899 thousand, $ 822 thousand and $ 1.0 million for the years ending December 31, 2022, 2021 and 2020, respectively. The table below summarizes the details of the restricted shares issued, vested, and forfeited for the years ending December 31, 2021, 2021 and 2020. Year Ended December 31, 2022 2021 2020 Number of Number of Employees Number of Number of Employees Number of Number of Employees Restricted shares issued 56,496 109 48,750 96 37,382 92 Restricted shares vested 26,900 60 18,845 50 23,491 58 Restricted shares awarded due to retirement 3,775 3 4,425 7 10,890 8 Restricted shares awarded for other - - - - 1,050 1 Restricted shares forfeited 8,000 9 2,575 4 2,175 5 The following table summarizes the activity of restricted stock awards as of December 31: Year Ended December 31, 2022 2021 2020 Number of Weighted Number of Weighted Number of Weighted Beginning of period 111,131 $ 23.02 88,226 $ 28.40 88,450 $ 31.52 Granted 56,496 30.46 48,750 22.70 37,382 21.80 Vested ( 30,675 ) 24.77 ( 23,270 ) 42.03 ( 35,431 ) 29.27 Forfeited ( 8,000 ) 30.15 ( 2,575 ) 24.28 ( 2,175 ) 21.92 Nonvested, end of period 128,952 $ 25.75 111,131 $ 23.02 88,226 $ 28.40 As of December 31, 2022, there was $ 2.1 million of unrecognized compensation cost related to the nonvested portion of restricted stock awards under the plan to be recognized over the next three years . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 12 – Earnings Per Share Basic earnings per share is 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 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 approximately $ 4,000 , 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. 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 each year. On June 5, 2020, each Director received 176 shares. On November 20, 2020, a new director received 20 prorated shares. 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. The table below presents basic and diluted earnings per share for the years ended December 31, 2021, 2020, and 2019. Year Ended December 31, December 31, December 31, 2022 2021 2020 Earnings per share Net income $ 32,515 $ 23,495 $ 20,095 Less: distributed earnings allocated to ( 97 ) ( 70 ) ( 57 ) Less: undistributed earnings allocated to ( 187 ) ( 121 ) ( 96 ) Net earnings available to common $ 32,231 $ 23,304 $ 19,942 Weighted average common shares outstanding 13,206,713 11,664,852 11,146,270 Less: average unvested restricted shares ( 115,291 ) ( 94,634 ) ( 84,879 ) Weighted average common shares outstanding 13,091,422 11,570,218 11,061,391 Basic and diluted earnings per share $ 2.46 $ 2.01 $ 1.80 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 13 – Related Party Transactions In the ordinary course of business, the Bank has granted loans to senior officers and directors and their affiliated companies amounting to $ 20.2 million and $ 20.1 million at December 31, 2022 and 2021, respectively. Two new loans were approved during 2022 of which no additional borrowings were utilized. During 2022, subsequent advances totaled $ 12.5 million and payments of $ 21.9 million were received. The difference in related borrowings amounted to $ 151 thousand, net increase. Deposits of directors, executive officers and companies in which they have a direct or indirect ownership as of December 31, 2022 and 2021, amounted to $ 41.5 million and $ 43.7 million, respectively. |
Off Balance Sheet Activities
Off Balance Sheet Activities | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off Balance Sheet Activities | Note 14 - Off Balance Sheet Activities Credit Related Financial Instruments The Bank is a party to credit related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing need of its customers. These financial instruments include commitments to extend credit, Standby Letters of Credit, and Commercial Letters of Credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Bank's exposure to credit loss is represented by the contractual amount of these commitments. The Bank follows the same credit policies in making commitments as it does for on-balance-sheet instruments. The allowance for credit losses as it relates to unfunded loan commitments (AULC) is included under other liabilities. The AULC as of both December 31, 2022 and 2021 was $ 1.0 million. At December 31, 2022 and 2021, the following financial instruments were outstanding whose contract amounts represent credit risk: (In Thousands) 2022 2021 Commitments to extend credit $ 691,501 $ 557,094 Credit card arrangements - 23,179 Standby letters of credit 1,046 983 Commitments to extend credit, credit card arrangements and Standby Letters of Credit all include exposure to some credit loss in the event of nonperformance of the customer. The Bank’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded in the financial statements. Due to the fact that these instruments have fixed maturity dates, and because many of them expire without being drawn upon, they generally do not present any significant liquidity risk to the Bank. On May 1, 2022, the Bank sold the credit card portfolio thus eliminating credit risk for 2022. Collateral Requirements To reduce credit risk related to the use of credit-related financial instruments, the Bank might deem it necessary to obtain collateral. The amount and nature of the collateral obtained is based on the Bank's credit evaluation of the customer. Collateral held varies but may include cash, securities, accounts receivable, inventory, property, plant, and real estate. Legal Contingencies Various legal claims also arise from time to time in the normal course of business, which, in the opinion of management, will have no material effect on the Company’s consolidated financial statements. |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Federal Home Loan Banks [Abstract] | |
Minimum Regulatory Capital Requirements | Note 15 - Minimum Regulatory Capital Requirements The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by the Basel III Capital Rules, the comprehensive capital framework for U.S. banking organizations, to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1 capital, Tier 1 capital and Total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to adjusted quarterly average assets (as defined). In connection with the adoption of the Basel III Capital Rules, we elected to opt-out of the requirement to include most components of accumulated other comprehensive income in Common Equity Tier 1. Common Equity Tier 1 is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities, and subject to transition provisions. The Common Equity Tier 1, Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, with certain exclusions, allocated by risk weight category, and certain off-balance-sheet items, among other things. The leverage ratio is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets, among other things. The Basel III Capital Rules require the Bank to maintain (i) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 4.5 %, plus a 2.5 % “capital conservation buffer” (which is added to the 4.5% Common Equity Tier 1 capital ratio, effectively resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 7.0 %), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0 %, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio, effectively resulting in a minimum Tier 1 capital ratio of 8.5 %), (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0 %, plus the capital conservation buffer (which is added to the 8.0% total capital ratio, effectively resulting in a minimum total capital ratio of 10.5 %) and (iv) a minimum leverage ratio of 4.0 %, calculated as the ratio of Tier 1 capital to average quarterly assets. The capital conservation buffer is designed to absorb losses during periods of economic stress and, as detailed above, effectively increases the minimum required risk-weighted capital ratios. Banking institutions with a ratio of Common Equity Tier 1 capital to risk-weighted assets below the effective minimum (4.5% plus the capital conservation buffer) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. Management believes, as of December 31, 2022, that the Bank meets all the capital adequacy requirements to which it is subject. As of December 31, 2022, the most recent notification from the FDIC indicated the Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. To remain categorized as well capitalized, the Bank will have to maintain minimum total risk-based, Tier I risk-based, Common Equity Tier 1 and Tier I leverage ratios as disclosed in the table to follow. There are no conditions or events since the most recent notification that management believes have changed the Bank’s prompt corrective action category. The following tables present actual and required capital ratios as of December 31, 2022 and December 31, 2021 under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2022 and December 31, 2021. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. The Bank’s actual and required capital amounts and ratios as of December 31, 2022 and December 31, 2021 are as follows: Actual Minimum Capital Required Required to be Considered (000's) (000's) (000's) As of December 31, 2022 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital $ 259,510 11.15 % $ 104,763 4.50 % $ 151,324 6.50 % Total Risk-Based Capital 281,085 12.07 % 186,245 8.00 % 232,806 10.00 % Tier 1 Capital 259,510 11.15 % 139,684 6.00 % 186,245 8.00 % Tier 1 Leverage Capital 259,510 9.03 % 114,972 4.00 % 143,714 5.00 % Actual Minimum Capital Required Required to be Considered (000's) (000's) (000's) As of December 31, 2021 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital $ 256,943 14.26 % $ 81,074 4.50 % $ 117,112 6.50 % Total Risk-Based Capital 274,226 15.22 % 144,138 8.00 % 180,173 10.00 % Tier 1 Capital 256,943 14.26 % 108,104 6.00 % 144,138 8.00 % Tier 1 Leverage Capital 256,943 10.25 % 100,317 4.00 % 125,396 5.00 % The above tables exclude the capital conservation buffer requirements. |
Restrictions of Dividends & Int
Restrictions of Dividends & Inter-company Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Restrictions of Dividends & Inter-company Borrowings | Note 16 - Restrictions of Dividends & Inter-company Borrowings The Bank is restricted as to the amount of dividends that can be paid. Dividends declared by the Bank that exceed the net income for the current year plus retained income for the preceding two years must be approved by federal and state regulatory agencies. Under this formula and excluding the $ 40 million of a special one time dividend approved by the Federal Reserve for the acquisition of Perpetual Federal Saving Bank, dividends of $ 42.9 million may be paid without prior regulatory approval. Regardless of formal regulatory restrictions, the Bank may not pay dividends that would result in its capital levels being reduced below the minimum requirements shown above. Under current Federal Reserve regulations, the Bank is limited as to the amount and type of loans it may make to the Company. These loans are subject to qualifying collateral requirements on which the amount of the loan may be based. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 17 - 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. The estimated fair values, and related carrying or notional amounts, for on and off-balance sheet financial instruments as of December 31, 2022 and 2021, are reflected below. The aggregate fair values in the table below do not represent the total market value of the Bank’s assets and liabilities. The table excludes the following: Bank Premises and Equipment, Goodwill, Mortgage Servicing Rights, Other Real Estate Owned, Other Assets, Other Liabilities and Accrued Expenses. (In Thousands) December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Amount Value Level 1 Level 2 Level 3 Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 84,409 $ 84,409 $ 84,409 $ - $ - $ 180,823 $ 180,823 $ 180,823 $ - $ - Interest-bearing time deposits 4,442 4,440 - 4,440 - 10,913 10,933 - 10,933 - Securities - available-for-sale 390,789 390,789 94,678 292,766 3,345 429,931 429,931 89,177 335,981 4,773 Other securities 9,799 9,799 - - 9,799 8,162 8,162 - - 8,162 Loans held for sale 827 815 - - 815 7,714 7,844 - - 7,844 Loans, net 2,336,074 2,171,152 - - 2,171,152 1,841,177 1,864,386 - - 1,864,386 Interest receivable 10,440 10,440 - - 10,440 7,209 7,209 - - 7,209 Financial Liabilities: Interest bearing deposits $ 1,378,090 $ 1,377,944 $ - $ - $ 1,377,944 $ 1,248,294 $ 1,248,044 $ - $ - $ 1,248,044 Noninterest bearing deposits 532,794 532,794 532,794 - - 473,689 473,689 - 473,689 - Time deposits 557,980 543,737 - - 543,737 471,479 475,810 - - 475,810 Total Deposits 2,468,864 2,454,475 532,794 - 1,921,681 2,193,462 2,197,543 - 473,689 1,723,854 Fed funds purchased and 54,206 54,206 - - 54,206 29,268 29,268 - - 29,268 Federal Home Loan Bank 127,485 125,761 - - 125,761 24,065 24,305 - - 24,305 Other borrowings 10,000 10,000 - 10,000 - 40,000 40,000 - 40,000 - Subordinated notes 34,586 30,993 - 30,993 - 34,471 35,000 - 35,000 - Interest payable 1,739 1,739 - - 1,739 1,125 1,125 - - 1,125 Fair Value Measurements The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and 2021, and the valuation techniques used by the Company to determine those fair values. There were no changes to valuation techniques during 2022. 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. The quoted prices are not adjusted. 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 ten 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 table summarizes financial assets measured at fair value on a recurring basis as of December 31, 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) Quoted Prices in Significant Significant Active Markets Observable Observable for Identical Inputs Inputs December 31, 2022 Assets (Level 1) (Level 2) (Level 3) Assets-(Securities Available-for-Sale) U.S. Treasury $ 94,678 $ - $ - U.S. Government agencies - 139,767 - Mortgage-backed securities - 86,927 - State and local governments - 66,072 3,345 Total Securities Available-for-Sale $ 94,678 $ 292,766 $ 3,345 Quoted Prices in Significant Significant Active Markets Observable Observable for Identical Inputs Inputs December 31, 2021 Assets (Level 1) (Level 2) (Level 3) 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 (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Governments Governments Governments Tax-Exempt Taxable Total Balance at January 1, 2022 $ 2,307 $ 2,466 $ 4,773 Change in Market Value ( 76 ) ( 203 ) ( 279 ) Purchases - - - Sales - - - Payments & Maturities ( 160 ) - ( 160 ) Reclassification and Adjustments - ( 989 ) ( 989 ) Balance at December 31, 2022 $ 2,071 $ 1,274 $ 3,345 (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Governments Governments Governments Tax-Exempt Taxable Total Balance at January 1, 2021 $ - $ 1,562 $ 1,562 Change in Market Value 44 ( 96 ) ( 52 ) Purchases 2,418 1,000 3,418 Sales - - - Payments & Maturities - - - Reclassification and Adjustments ( 155 ) - ( 155 ) Balance at December 31, 2021 $ 2,307 $ 2,466 $ 4,773 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. There was one security transferred out of Level 3 to Level 2 in 2022 and no transfers into or out of Level 3 during 2021. The 2021 tax exempt purchases were included in the acquisition of Ossian State Bank. The Company also has assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis. At December 31, 2022 and 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 December 31, 2022 and 2021, collateral dependent impaired loans categorized as Level 3 were $ 2,667 and $ 8,527 thousand, respectively. The specific allocation for collateral dependent impaired loans was $ 1,996 thousand as of December 31, 2022 and $ 2,184 thousand as of 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. In 2022, the valuation allowance was reversed as all strata were positive. Other real estate is reported at the lower of either the fair value of the real estate, minus the estimated costs to sell the asset, or the cost of the asset. The determination of the 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 collateral dependent impaired loans and other real estate owned as recorded at fair value: ($ in Thousands) Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2022 Quoted Prices in Markets for Significant Significant Balance at Identical Observable Inputs Unobservable Inputs December 31, 2022 Assets (Level 1) (Level 2) (Level 3) Collateral dependent impaired $ 2,667 $ - $ - $ 2,667 Mortgage servicing rights - - - - Other real estate owned - - - - - ($ in Thousands) Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2021 Quoted Prices in Markets for Significant Significant Balance at Identical Observable Inputs Unobservable Inputs December 31, 2021 Assets (Level 1) (Level 2) (Level 3) Collateral dependent impaired $ 8,527 $ - $ - $ 8,527 Mortgage servicing rights 3,157 - - 3,157 Other real estate owned - 99 - - 99 The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements: (In Thousands) Fair Value at December 31, 2022 Valuation Technique Unobservable Inputs Range State and local $ 3,345 Discounted Cash Flow Credit strength of underlying project or entity / Discount rate 2.08 - 5.01 % 4.38 %) Collateral dependent 2,667 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 20.00 - 29.01 % 24.13 %) Mortgage servicing - Discounted Cash Flow Constant prepayment rate and probability of default / Discount rate — % - Appraisals Discount to reflect current market — % Other real estate (In Thousands) Fair Value at December 31, 2021 Valuation Technique Unobservable Inputs Range State and local $ 4,773 Discounted Cash Flow Credit strength of underlying project or entity / Discount rate 0.21 - 1.77 % 1.33 %) Collateral dependent 8,527 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 20.00 - 53.95 % 34.78 %) Mortgage servicing 3,157 Discounted Cash Flow Constant prepayment rate and probability of default / Discount rate 1.94 - 27.70 % 18.44 %) Other real estate 99 Appraisals Discount to reflect current market 32.72 % 32.72 %) |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | Note 18 – Condensed Financial Statements of Parent Company Balance Sheets (In Thousands) 2022 2021 Assets Cash $ 16,901 $ 19,293 Interest-bearing time deposits 498 1,234 Related party receivables: Dividends and accounts receivable from subsidiary 2,114 4,636 Accrued interest receivable - municipals / interest 38 43 Securities - municipals 7,460 9,027 Investment in subsidiaries 319,371 340,733 Total Assets $ 346,382 $ 374,966 Liabilities Other borrowings $ 10,000 $ 40,000 Subordinated notes, net of unamortized issuance costs 34,586 34,471 Dividends payable 2,832 2,461 Accrued interest payable 618 743 Accrued expenses 206 124 Total Liabilities 48,242 77,799 Stockholders' Equity 298,140 297,167 Total Liabilities and Stockholders' Equity $ 346,382 $ 374,966 Statements of Income and Comprehensive Income (In Thousands) 2022 2021 2020 Income Dividends from subsidiaries $ 44,285 $ 23,200 $ 8,800 Interest - municipals / interest-bearing time deposits 308 253 382 Loss on sales of available-for-sale securities - 293 - Total income 44,593 23,746 9,182 Expenses Interest 1,588 743 - Operating expenses 1,176 1,335 923 Total expenses 2,764 2,078 923 Income Before Income Taxes and Equity in 41,829 21,668 8,259 Income Taxes (Benefit) ( 535 ) ( 347 ) ( 184 ) 42,364 22,015 8,443 Equity in undistributed earnings of subsidiaries ( 9,849 ) 1,480 11,652 Net Income 32,515 23,495 20,095 Other Comprehensive Income (Loss): Unrealized gains (losses) on securities, net of taxes ( 35,049 ) ( 8,881 ) 4,599 Comprehensive Income (Loss) $ ( 2,534 ) $ 14,614 $ 24,694 Statements of Cash Flows (In Thousands) 2022 2021 2020 Cash Flows from Operating Activities Net income $ 32,515 $ 23,495 $ 20,095 Adjustments to reconcile net income to net cash Equity in undistributed net income 9,849 ( 1,480 ) ( 11,652 ) Amortization of premiums on available-for-sale securities, net 61 81 154 Amortization of subordinated notes issuance fees 116 49 - Stock-based compensation expense 899 822 1,024 Director stock awards 120 73 48 Gain on sale of available-for-sale securities - ( 293 ) - Changes in assets and liabilities: Other assets and liabilities 2,560 ( 456 ) 1,742 Net cash provided by operating activities 46,120 22,291 11,411 Cash Flows from Investing Activities Activity in available-for-sale securities: Maturities, prepayments and calls 1,540 795 385 Sales - 7,773 - Purchases ( 398 ) - ( 745 ) Activity in certificates of deposit Maturities 1,234 493 - Purchases ( 498 ) - - Cash used for acquisitions ( 9,806 ) ( 79,235 ) - Net cash used in investing activities ( 7,928 ) ( 70,174 ) ( 360 ) Cash Flows from Financing Activities Proceeds (repayments) of other borrowings ( 30,000 ) 35,000 - Purchase of treasury stock ( 308 ) ( 338 ) ( 383 ) Proceeds from issuance of subordinated notes - 34,421 - Payment of dividends ( 10,276 ) ( 7,670 ) ( 7,186 ) Net cash provided by (used in) financing activities ( 40,584 ) 61,413 ( 7,569 ) Net Change in Cash and Cash Equivalents ( 2,392 ) 13,530 3,482 Cash and Cash Equivalents - Beginning of year 19,293 5,763 2,281 Cash and Cash Equivalents - End of year $ 16,901 $ 19,293 $ 5,763 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Note 19 – Quarterly Financial Data Quarterly Financial Data - UNAUDITED Quarter Ended in 2022 Mar 31 June 30 Sep 30 Dec 31 Summary of Income: Interest income $ 21,899 $ 23,911 $ 25,847 $ 29,492 Interest expense 2,116 2,047 3,264 6,935 Net Interest Income 19,783 21,864 22,583 22,557 Provision for loan loss 580 1,628 1,637 755 Net interest income after provision of loan loss 19,203 20,236 20,946 21,802 Other income (expense) ( 9,150 ) ( 9,915 ) ( 9,739 ) ( 12,908 ) Net income before income taxes 10,053 10,321 11,207 8,894 Income taxes 1,951 2,050 2,253 1,706 Net income $ 8,102 $ 8,271 $ 8,954 $ 7,188 Earnings per Common Share $ 0.62 $ 0.63 $ 0.68 $ 0.53 Average common shares outstanding 12,955,107 12,957,126 12,983,307 13,606,876 Quarter Ended in 2021 Mar 31 June 30 Sep 30 Dec 31 Summary of Income: Interest income $ 16,765 $ 17,530 $ 20,122 $ 22,423 Interest expense 1,728 1,554 1,672 2,388 Net Interest Income 15,037 15,976 18,450 20,035 Provision for loan loss 1,700 641 659 444 Net interest income after provision for loan loss 13,337 15,335 17,791 19,591 Other income (expense) ( 7,368 ) ( 9,033 ) ( 10,247 ) ( 9,909 ) Net income before income taxes 5,969 6,302 7,544 9,682 Income taxes 1,060 1,319 1,624 1,999 Net income $ 4,909 $ 4,983 $ 5,920 $ 7,683 Earnings per Common Share $ 0.44 $ 0.44 $ 0.53 $ 0.59 Average common shares outstanding 11,197,012 11,191,043 11,209,732 13,046,299 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 20 – Subsequent Events On January 24, 2023, the Company announced the authorization by its Board of Directors for the Company’s repurchase, either on the open market, or in privately negotiated transactions, of up to 650,000 shares of its outstanding common stock commencing January 24, 2023 and ending December 31, 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The Farmers & Merchants Bancorp, Inc. (the Company) through its bank subsidiary, The Farmers & Merchants State Bank (the Bank) provides a variety of financial services to individuals and small businesses through its offices in Northwest Ohio and Northeast Indiana. |
Consolidation Policy | Consolidation Policy The consolidated financial statements include the accounts of Farmers & Merchants Bancorp, Inc. and its wholly-owned subsidiaries, The Farmers & Merchants State Bank (the Bank), a commercial banking institution and Farmers & Merchants Risk Management, Inc. (the Captive), a Captive insurance company. All significant inter-company balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of mortgage servicing rights and the valuation of goodwill. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. The Bank’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Bank has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions in the agricultural industry. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Bank to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. This includes cash on hand, amounts due from banks, and federal funds sold. Generally, federal funds sold are outstanding for one day periods. |
Restrictions on Cash and Amounts Due from Banks | Restrictions on Cash and Amounts Due from Banks Effective March 26, 2020, the Bank is no longer required to maintain average balances on hand with the Federal Reserve Bank. The Company and its subsidiaries maintain cash balances with high quality financial institutions. At times such balances may be in excess of the federally insured limits. |
Securities | Securities Debt securities are classified as available-for-sale. Securities available-for-sale are carried at fair value with unrealized gains and losses reported in other comprehensive income (loss). Net realized gains and losses on securities available for sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income (loss). Gains and losses on sales of securities are determined on the specific-identification method. Declines in the fair value of securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The related write-downs are included in earnings as realized losses. |
Other Securities | Other Securities Other Securities consist of stock in the Federal Home Loan Banks of Cincinnati and Indianapolis (the “FHLBs”), which is held to enable the Bank to conduct business with the entities. The FHLBs sell and purchase their stock at par. The FHLBs stock is carried at cost and held as collateral security for all indebtedness of the Bank to the Federal Home Loan Bank. The FHLBs stock is evaluated for impairment as conditions warrant. Other Securities also include the Bank’s capital contributions to four Ohio Equity Funds for Housing Limited Partnership. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at the amount of unpaid principal, reduced by unearned discounts, unamortized premiums or discounts on purchased loans, and deferred loan fees and costs, as well as, by the allowance for loan losses. Interest income is accrued on a daily basis based on the principal outstanding. Generally, a loan is classified as nonaccrual and the accrual of interest income is generally discontinued when a loan becomes ninety days past due as to principal or interest and these loans are placed on a “cash basis” for purposes of income recognition. Management may elect to continue the accrual of interest when the estimated net realizable value of collateral is sufficient to cover the principal and accrued interest, and the loan is in the process of collection. When a loan is placed on nonaccrual status, all previously accrued and unpaid interest receivable is charged against income. Loan origination and commitment fees and certain direct loan origination costs are deferred and amortized as a net adjustment to the related loan’s yield. The Bank is generally amortizing these costs over the contractual life of such loans. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged to income. Loans deemed to be uncollectable and changes in the allowance relating to loans are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based on management’s periodic review of the collectability of the loans in light of historical experiences, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are subject to revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. The unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and agricultural loans by either the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral if the loan is collateral dependent. 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. 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. Large groups of homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual consumer loans for impairment, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. For more information regarding the actual composition and classification of loans involved in the establishment of the allowance for loan loss, please see Note 4 provided here with the notes to consolidated financial statements. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized in a valuation allowance by charges to income. |
Servicing Assets | S ervicing Assets Servicing assets are recognized as separate assets when rights are acquired through purchase or sale of financial assets. Capitalized servicing rights are amortized into noninterest expense in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. Fees received for servicing loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in operating income as loan payments are received. Costs of servicing loans are charged to expense as incurred. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed for impairment at least annually. If possible impairment is likely, the Bank will utilize the assistance of an independent third party for an appraisal and any such impairment is recognized in the period identified. Periodically, the Bank will have an independent third party assess the possibility of impairment of Goodwill. The goodwill impairment analysis consisted of a first step goodwill impairment test which was used to identify potential impairment by comparing the fair value of the relevant reporting entity with its carrying value, including goodwill. The analysis was performed under guidance of FASB ASC 350. In the quantitative testing completed as of November 30, 2022, the excess fair value of capital was $ 427.5 million or 137.2 % over the carrying value and was over 4.9 times the value of goodwill being carried. Therefore, the Bank concluded it is unlikely impairment of goodwill has occurred from the goodwill established from the Bank’s acquisition of Knisely on December 31, 2007, the acquisition of Bank of Geneva on January 1, 2019, the acquisition of Ossian State Bank on April 30, 2021, the acquisition of Perpetual Federal Savings Bank on October 1, 2021 and the acquisition of Peoples Federal Savings and Loan on October 1, 2022. Other intangible assets consist of core deposit and customer list intangible assets arising from business acquisitions. They are initially measured at fair value and then are amortized on a straight line method over their estimated useful lives and evaluated for impairment. These assets are included in other assets on the consolidated balance sheets. |
Off Balance Sheet Instruments | Off Balance Sheet Instruments In the ordinary course of business, the Bank has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. |
Foreclosed Real Estate | Foreclosed Real Estate Foreclosed real estate held for sale is carried at the lower of fair value minus estimated costs to sell, or cost. Costs of holding foreclosed real estate are charged to expense in the current period, except for significant property improvements, which are capitalized. Valuations are periodically performed by management and an allowance is established by a charge to noninterest expense if the carrying value exceeds the fair value minus the estimated costs to sell. Foreclosed real estate is classified as other real estate owned. The net loss from operations of foreclosed real estate held for sale is reported in noninterest expense. The Bank held no other real estate owned at December 31, 2022. At December 31, 2021 the Bank’s holding of other real estate owned totaled $ 159 thousand. |
Bank Premises and Equipment | Bank Premises and Equipment Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is based on the estimated useful lives of the various properties and is computed using straight line and accelerated methods. Costs for maintenance and repairs are charged to operations as incurred. Gains and losses on dispositions are included in current operations. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance policies are carried at their cash surrender value. The Bank recognizes tax-free income from the periodic increases in the cash surrender value of these policies and from death benefits. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification 606, “Revenue from Contracts with Customer” (ASC 606) provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue generated from financial instruments, including loans and investment securities, are not included within the scope of ASC 606. The adoption of ASC 606 did not result in a change to the accounting for any of the Company’s revenue streams that are within scope of the amendments. Revenue-generating activities that are within the scope of ASC 606 that are presented as noninterest income in the Company’s consolidated statements of income include: o Customer service fees – these include miscellaneous service fees and transaction-based fees charged for certain services, such as debit card or credit card. Revenue is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services. o Other service charges and fees – these include service fees charged for deposit account maintenance and activity along with transaction-based fees charged for certain services, such as overdraft activities, returned check charges and wire transfers. Revenue is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services. |
Income Tax | Income Tax The Company’s income tax expense consists of the following components for federal and state: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in tax expense. Based on management’s analysis, the Company did not have any uncertain tax positions as of December 31, 2022 and 2021. With a few exceptions, the Company is no longer subject to U.S. Federal, state or local examinations by tax authorities for years before 2019. |
Earnings Per Share | Earnings Per Share Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. See Note 12 for additional information. |
Stock-Based Compensation | Stock-Based Compensation The fair value of restricted common stock is their fair market value on the date of grant. The fair value of restricted stock is amortized as compensation expense on a straight-line basis over the vesting period of the grants. Compensation expense recognized is included in salaries and wages in the consolidated statements of income. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation – put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Treasury Stock | Treasury Stock Common stock shares repurchased are recorded at market value on date of purchase. Restricted shares when awarded are removed from treasury stock using the weighted average method . |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of other comprehensive income (loss). The components of other comprehensive income (loss) and related tax effects are as follows: (In Thousands) 2022 2021 2020 Net unrealized gain (loss) on available-for-sale $ ( 44,366 ) $ ( 10,948 ) $ 6,091 Reclassification adjustment for gain on sale of - ( 293 ) ( 270 ) Net unrealized gain (loss) on available-for-sale ( 44,366 ) ( 11,241 ) 5,821 Tax expense (benefit) ( 9,317 ) ( 2,360 ) 1,222 Other comprehensive income (loss) $ ( 35,049 ) $ ( 8,881 ) $ 4,599 |
Recent Accounting Pronouncements | 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 was 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 Current Expected Credit Losses (“CECL”) methodology applies to loans held for investment, held to maturity debt securities, and off balance-sheet credit exposures. The ASU allows for several different methods of computing the ALLL: closed pool, vintage, average charge-off, migration, probability of default / loss given default, discounted cash flow, and regression. Based on its analysis of observable data, the Company concluded the average charge-off method to be the most appropriate and statistically relevant. A 20-year lookback will be utilized as the historical loss period due to its inclusion of several economic cycles and relevance to real estate secured assets. The Company began working with its third-party service provider to review parallel reports 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. The Company has contracted with a third party to begin an independent validation of its processes and methodology. This validation will be performed on an annual basis. The ALLL has been computed through 2022 by applying historical loss rates, adjusted for qualitative factors, to pools of loans. Upon implementation of the ASU, the expected loss estimate will be made up of a historical lookback of actual losses applied over the life of the loan portfolio and adjusted for qualitative factors and forecasted losses based on economic and forward-looking data applied over a reasonable and supportable forecast period. The impact of the adoption of the ASU is estimated to be a one-time cumulative-effect adjustment to our reserves for loans and unfunded commitments in a range between $ 3 million and $ 7 million. This estimate may change as the Company continues to improve its processes and methodology. The qualitative impact of the new accounting standard will still be directed by many of the same factors that impacted the previous methodology for computing the ALLL including, but not limited to, quality and experience of staff, changes in the value of collateral, concentrations of credit in loan types or industries and changes to lending policies. In addition to this, the Company will also use reasonable and supportable forecasts. Examples of this are regression analyses of data from the Federal Open Market Committee quarterly economic projections for change in real GDP and of national unemployment. The Company does not anticipate any material changes to its business practices as a result of implementing the ASU. The Company adopted 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 adopted ASU 2022-02 on January 1, 2023. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Components of Other Comprehensive Income (Loss) and Related Tax Effects | The components of other comprehensive income (loss) and related tax effects are as follows: (In Thousands) 2022 2021 2020 Net unrealized gain (loss) on available-for-sale $ ( 44,366 ) $ ( 10,948 ) $ 6,091 Reclassification adjustment for gain on sale of - ( 293 ) ( 270 ) Net unrealized gain (loss) on available-for-sale ( 44,366 ) ( 11,241 ) 5,821 Tax expense (benefit) ( 9,317 ) ( 2,360 ) 1,222 Other comprehensive income (loss) $ ( 35,049 ) $ ( 8,881 ) $ 4,599 |
Business Combination & Asset _2
Business Combination & Asset Purchase (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Acquisition [Line Items] | |
Schedule of Pro-forma Results | The following schedule includes pro-forma results for the years ended December 31, 2022, 2021 and 2020 as if all three acquisitions had occurred as of the beginning of the comparable prior reporting periods. 2022 2021 2020 Summary of Operations Net Interest Income - Before Provision for Loan Losses $ 90,290 $ 84,362 $ 81,636 Provision for Loan Losses 4,513 3,445 6,901 Net Interest Income After Provision for Loan Losses 85,777 80,917 74,735 Noninterest Income 14,099 18,931 17,668 Noninterest Expense 57,426 57,622 55,765 Income Before Income Taxes 42,450 42,226 36,638 Income Taxes 8,185 8,458 7,242 Net Income $ 34,265 $ 33,768 $ 29,396 Basic and Diluted Earnings Per Share $ 2.59 $ 2.57 $ 2.24 |
Schedule of Future Amortization of Core Deposit Intangible Assets | Future amortization expense of core deposit intangible assets is as follows: Geneva Ossian Perpetual Peoples Total (In thousands) 2023 $ 560 $ 140 $ 95 $ 861 $ 1,656 2024 560 140 95 861 1,656 2025 560 140 95 861 1,656 2026 - 140 95 861 1,096 2026 - 140 95 861 1,096 Thereafter - 47 74 1,506 1,627 Total $ 1,680 $ 747 $ 549 $ 5,811 $ 8,787 |
Customer Lists [Member] | |
Business Acquisition [Line Items] | |
Schedule of Future Amortization of Core Deposit Intangible Assets | Future amortization expense of customer list intangible is as follows: (In thousands) 2023 $ 123 2024 123 2025 123 2026 123 2027 47 Thereafter - Total $ 539 |
Peoples Federal Savings and Loan [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 Peoples Federal Savings and Loan Bank and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date Fair Value of Consideration Transferred (In Thousands) Cash $ 9,806 Common Shares ( 500,426 shares) 13,446 Treasury stock repurchased ( 125 shares) ( 3 ) Total $ 23,249 Recognized amounts of identifiable assets acquired and liabilities assumed Assets Cash and cash equivalents $ 18,881 Other securities, at cost 1,271 Loans, net 101,755 Premises and equipment 1,906 Goodwill 5,924 Other assets 12,081 Total Assets Purchased $ 141,818 Liabilities Deposits Noninterest bearing $ 7,139 Interest bearing 104,719 Total deposits 111,858 Federal Home Loan Bank (FHLB) advances 896 Accrued expenses and other liabilities 5,815 Total Liabilities Assumed $ 118,569 |
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: 2022 (In Thousands) Beginning Balance Additions 856 Accretion ( 58 ) Reclassification from nonaccretable difference - Disposals - Ending Balance $ 798 |
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 ( 1,833,845 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 December 31, 2021. The amounts of loans at October 1, 2021, December 31, 2021 and December 31, 2022 are as follows: 2021 (In Thousands) Balance - October 1, 2021 Consumer Real Estate $ 608 Agricultural Real Estate 118 Commercial Real Estate 234 Consumer 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 Consumer - Carrying amount, net of fair value adjustment of $ 190 $ 510 2022 (In Thousands) Balance - December 31, 2022 Consumer Real Estate $ 288 Agricultural Real Estate 107 Commercial Real Estate - Consumer - Carrying amount, net of fair value adjustment of $ 128 $ 267 |
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 Consumer 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: 2022 2021 (In Thousands) (In Thousands) Beginning Balance $ 5,262 $ - Additions 294 5,592 Accretion ( 1,318 ) ( 330 ) Reclassification from nonaccretable difference - - Disposals ( 2 ) - Ending Balance $ 4,236 $ 5,262 |
Ossian Financial Services, Inc. [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 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 December 31, 2021. The amounts of loans at April 30, 2021, December 31, 2021 and December 31, 2022 are as follows: 2021 (In Thousands) Balance - April 30, 2021 Consumer Real Estate $ 24 Agricultural Real Estate 981 Commercial Real Estate 315 Commercial and 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 and Industrial 285 Carrying amount, net of fair value adjustment of $ 321 $ 208 2022 (In Thousands) Balance - December 31, 2022 Consumer Real Estate $ 19 Agricultural Real Estate - Commercial Real Estate - Commercial and Industrial - Carrying amount, net of fair value adjustment of $ 10 $ 9 |
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 and 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, are as follows: 2022 2021 (In Thousands) (In Thousands) Beginning Balance $ 645 $ - Additions 1 762 Accretion ( 176 ) ( 117 ) Reclassification from nonaccretable difference - - Disposals - - Ending Balance $ 470 $ 645 |
Limberlost Bancshares, 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, for the acquisition of Bank of Geneva completed in 2019, are as follows: 2022 2021 (In Thousands) (In Thousands) Beginning Balance $ 1,198 $ 1,653 Additions 13 17 Accretion ( 426 ) ( 431 ) Reclassification from nonaccretable difference - - Disposals - ( 41 ) Ending Balance $ 785 $ 1,198 |
Adams County Financial Resources [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 ACFR and the amounts of the assets acquired: Fair Value of Consideration Transferred (In Thousands) Common Shares ( 40,049 shares) $ 825 Total $ 825 Recognized amounts of identifiable assets acquired and liabilities assumed Assets Premises and equipment $ 25 Customer list intangible 800 Total Assets Purchased $ 825 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 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, follows: (In Thousands) 2022 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value Available-for-Sale: U.S. Treasury $ 104,507 $ - $ ( 9,829 ) $ 94,678 U.S. Government agencies 156,817 - ( 17,050 ) 139,767 Mortgage-backed securities 101,068 - ( 14,141 ) 86,927 State and local governments 76,794 69 ( 7,446 ) 69,417 Total available-for-sale securities $ 439,186 $ 69 $ ( 48,466 ) $ 390,789 (In Thousands) 2021 Gross Gross Fair Amortized Unrealized Unrealized Market 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 December 31, 2022 and 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: 2022 (In Thousands) (In Thousands) Less Than Twelve Months Twelve Months & Over Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value U.S. Treasury $ ( 207 ) $ 9,121 $ ( 9,622 ) $ 85,557 U.S. Government agencies ( 1,081 ) 24,560 ( 15,969 ) 114,906 Mortgage-backed securities ( 2,454 ) 26,905 ( 11,687 ) 60,022 State and local governments ( 3,223 ) 38,771 ( 4,223 ) 25,610 Total available-for-sales securities $ ( 6,965 ) $ 99,357 $ ( 41,501 ) $ 286,095 2021 (In Thousands) (In Thousands) Less Than Twelve Months Twelve Months & Over Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value U.S. Treasury $ ( 1,598 ) $ 89,177 $ - $ - U.S. Government agencies ( 1,898 ) 86,739 ( 1,584 ) 41,738 Mortgage-backed securities ( 1,050 ) 63,157 ( 412 ) 16,434 State and local governments ( 296 ) 17,727 ( 225 ) 5,487 Total available-for-sales securities $ ( 4,842 ) $ 256,800 $ ( 2,221 ) $ 63,659 |
Gross Realized Gains | gross realized gains for the years ended December 31, as presented below: (In Thousands) 2022 2021 2020 Gross realized gains $ - $ 293 $ 270 Gross realized losses - - - Net realized gains $ - $ 293 $ 270 Tax expense related to net realized gains $ - $ 62 $ 57 |
Amortized Cost and Fair Value of Debt Securities, by Contractual Maturity | The amortized cost and fair value of debt securities at December 31, 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 $ 20,732 $ 20,283 After one year through five years 209,735 190,333 After five years through ten years 105,681 91,379 After ten years 1,970 1,867 Total $ 338,118 $ 303,862 Mortgage-backed securities 101,068 86,927 Total $ 439,186 $ 390,789 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans | Loans at December 31 are summarized below: (In Thousands) Loans: 2022 2021 Consumer Real Estate $ 494,423 $ 395,873 Agricultural Real Estate 220,819 198,343 Agricultural 128,733 118,368 Commercial Real Estate 1,152,603 848,477 Commercial and Industrial 242,360 208,270 Consumer 89,147 57,737 Other 29,818 32,089 2,357,903 1,859,157 Less: Net deferred loan fees and costs ( 1,516 ) ( 1,738 ) 2,356,387 1,857,419 Less: Allowance for loan losses ( 20,313 ) ( 16,242 ) Loans - Net $ 2,336,074 $ 1,841,177 |
Contractual Maturity Schedule by Major Category of Loans Excluding Fair Value Adjustments | The following is a maturity schedule by major category of loans excluding fair value adjustments at December 31, 2022: (In Thousands) After One Within Year Within After One Year Five Years Five Years Total Consumer Real Estate $ 8,890 $ 34,961 $ 456,556 $ 500,407 Agricultural Real Estate 525 7,116 214,297 221,938 Agricultural 59,119 47,113 22,544 128,776 Commercial Real Estate 26,670 336,890 789,304 1,152,864 Commercial and Industrial 81,552 108,729 52,715 242,996 Consumer 2,089 47,052 40,357 89,498 Other 235 1,219 28,375 29,829 $ 179,080 $ 583,080 $ 1,604,148 $ 2,366,308 |
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 December 31, 2022: (In Thousands) Fixed Variable Rate Rate Consumer Real Estate $ 354,420 $ 140,003 Agricultural Real Estate 144,702 76,117 Agricultural 52,867 75,866 Commercial Real Estate 941,927 210,676 Commercial and Industrial 130,513 111,847 Consumer 88,972 175 Other 20,029 9,789 |
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 past due loans by portfolio classification of loans as of December 31, 2022 and 2021, net of deferred loan fees and costs: December 31, 2022 30-59 Days 60-89 Days Greater Than Total Current Total Recorded Investment > 90 Days and Accruing Consumer Real Estate $ 1,536 $ 635 $ 90 $ 2,261 $ 492,162 $ 494,423 $ - Agricultural Real Estate 118 2 1,550 1,670 218,844 220,514 - Agricultural 433 - 152 585 128,341 128,926 - Commercial Real Estate 74 - 180 254 1,150,257 1,150,511 - Commercial and Industrial 953 - 182 1,135 270,984 272,119 - Consumer 83 37 - 120 89,774 89,894 - Total $ 3,197 $ 674 $ 2,154 $ 6,025 $ 2,350,362 $ 2,356,387 $ - December 31, 2021 30-59 Days 60-89 Days Greater Than Total Current Total Recorded Investment > 90 Days and Accruing 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 portfolio class of loans as of December 31, 2022 and December 31, 2021: (In Thousands) 2022 2021 Consumer Real Estate $ 612 $ 824 Agricultural Real Estate 1,921 6,477 Agriculture 152 20 Commercial Real Estate 903 600 Commercial and Industrial 1,096 149 Consumer 5 6 Total $ 4,689 $ 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, based on the most recent analysis performed as of the time periods shown of December 31, 2022 and December 31, 2021. (In Thousands) Agricultural Real Estate Agricultural Commercial Real Estate Commercial and Industrial Other 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 1-2 $ 9,912 $ 8,720 $ 5,857 $ 4,178 $ 8,718 $ 10,894 $ 780 $ 4,604 $ - $ - 3 47,405 42,180 33,671 38,623 370,035 238,132 67,506 46,547 10,921 11,408 4 146,143 129,301 88,992 75,164 737,745 568,038 167,291 152,736 18,897 20,681 5 10,389 4,599 228 227 9,751 14,509 3,592 986 - - 6 6,665 13,233 178 312 24,262 15,537 3,132 3,176 - - 7 - - - - - - - - - - 8 - - - - - - - - - - Total $ 220,514 $ 198,033 $ 128,926 $ 118,504 $ 1,150,511 $ 847,110 $ 242,301 $ 208,049 $ 29,818 $ 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 December 31, 2022 and December 31, 2021. (In Thousands) Consumer Real Estate 2022 2021 Grade Pass $ 492,575 $ 392,940 Special mention (5) 676 1,673 Substandard (6) 1,172 1,192 Doubtful (7) - - Total $ 494,423 $ 395,805 (In Thousands) Consumer - Credit Card Consumer - Other 2022 2021 2022 2021 Performing $ - $ 3,906 $ 89,853 $ 53,820 Nonperforming - 13 41 90 Total $ - $ 3,919 $ 89,894 $ 53,910 |
Schedule of Impaired Loans | Information about impaired loans as of and for the years ended December 31, 2022 and 2021 is as follows: (In Thousands) 2022 2021 Impaired loans without a valuation allowance $ 4,194 $ 1,228 Impaired loans with a valuation allowance 4,663 10,711 Total impaired loans $ 8,857 $ 11,939 Valuation allowance related to impaired loans $ 1,996 $ 2,184 Total nonaccrual loans $ 4,689 $ 8,076 Total loans past-due ninety days or more and still accruing $ - $ - (In Thousands) 2022 2021 2020 Average investment in impaired loans $ 10,710 $ 12,247 $ 10,232 Interest income recognized on impaired loans $ 361 $ 292 $ 269 Interest income recognized on a cash basis on impaired $ 97 $ 188 $ 135 |
Impaired Loans Classified as Troubled Debt Restructured | December 31, 2022 December 31, 2021 (In thousands) (In thousands) Troubled Debt Restructurings Number of Pre- Post- Troubled Debt Restructurings Number of Pre- Post- Consumer Real Estate 1 $ 95 $ 95 Consumer Real Estate - $ - $ - Agricultural Real Estate - - - Agricultural Real Estate 1 1,655 1,655 Agricultural - - - Agricultural - - - Commercial Real Estate 1 74 74 Commercial Real Estate 1 382 382 Commercial and Industrial 2 1,232 1,232 Commercial and Industrial 1 1,000 1,000 |
Loans Individually Evaluated for Impairment by Portfolio Class of Loans | The following tables present loans individually evaluated for impairment by portfolio class of loans as of December 31, 2022 and 2021: (In Thousands) 2022 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Interest Income Recognized Cash Basis With no related allowance recorded: Consumer Real Estate $ 509 $ 509 $ - $ 355 $ 5 $ 12 Agricultural Real Estate 2,280 2,385 - 2,048 25 6 Agricultural 152 152 - 588 - 2 Commercial Real Estate 1,234 1,272 - 1,252 29 43 Commercial and Industrial 17 417 - 135 2 10 Consumer 2 2 - 15 1 - With a specific allowance recorded: Consumer Real Estate 60 60 6 15 - 1 Agricultural Real Estate - - - 1,388 - - Agricultural - - - - - - Commercial Real Estate 2,874 2,874 438 3,176 150 - Commercial and Industrial 1,564 1,564 1,551 1,736 149 23 Consumer 165 165 1 2 - - Totals: Consumer Real Estate $ 569 $ 569 $ 6 $ 370 $ 5 $ 13 Agricultural Real Estate $ 2,280 $ 2,385 $ - $ 3,436 $ 25 $ 6 Agricultural $ 152 $ 152 $ - $ 588 $ - $ 2 Commercial Real Estate $ 4,108 $ 4,146 $ 438 $ 4,428 $ 179 $ 43 Commercial and Industrial $ 1,581 $ 1,981 $ 1,551 $ 1,871 $ 151 $ 33 Consumer $ 167 $ 167 $ 1 $ 17 $ 1 $ - (In Thousands) 2021 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Interest Income 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 $ - |
Summary of Activities in Allowance for Credit Losses | The following is an analysis of the allowance for credit losses for the years ended December 31: (In Thousands) 2022 2021 2020 Allowance for Loan Losses Balance at beginning of year $ 16,242 $ 13,672 $ 7,228 Provision for loan loss 4,600 3,444 6,981 Loans charged off ( 827 ) ( 1,332 ) ( 720 ) Recoveries 298 458 183 Balance at ending of year $ 20,313 $ 16,242 $ 13,672 Allowance for Unfunded Loan Commitments $ 1,262 $ 1,041 $ 641 Total Allowance for Credit Losses $ 21,575 $ 17,283 $ 14,313 |
Analysis of Allowance for Credit Losses | Additional analysis related to the allowance for credit losses as of December 31, 2022 and 2021 is as follows: (In Thousands) 2022 Consumer Agricultural Real Estate Agricultural Commercial Real Estate Commercial Consumer Unfunded Unallocated Total ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 857 $ 1,040 $ 709 $ 9,130 $ 3,847 $ 625 $ 1,041 $ 34 $ 17,283 Charge-Offs - - - - ( 418 ) ( 409 ) - - ( 827 ) Recoveries 20 - 7 9 93 169 - - 298 Provision 121 ( 691 ) 35 2,785 1,860 506 - ( 16 ) 4,600 Other Non-interest - - - - - - 221 - 221 Ending Balance $ 998 $ 349 $ 751 $ 11,924 $ 5,382 $ 891 $ 1,262 $ 18 $ 21,575 Ending balance: $ 6 $ - $ - $ 438 $ 1,551 $ 1 $ - $ - $ 1,996 Ending balance: $ 992 $ 349 $ 751 $ 11,486 $ 3,831 $ 890 $ 1,262 $ 18 $ 19,579 Ending balance: loans $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCING RECEIVABLES: Ending balance $ 494,423 $ 220,514 $ 128,926 $ 1,150,511 $ 272,119 $ 89,894 $ - $ - $ 2,356,387 Ending balance: $ 569 $ 2,280 $ 152 $ 4,108 $ 1,581 $ 167 $ - $ - $ 8,857 Ending balance: $ 493,449 $ 218,039 $ 128,774 $ 1,146,389 $ 270,493 $ 89,727 $ - $ - $ 2,346,871 Ending balance: loans $ 405 $ 195 $ - $ 14 $ 45 $ - $ - $ - $ 659 (In Thousands) 2021 Consumer Agricultural Real Estate Agricultural Commercial Real Estate Commercial Consumer Unfunded Unallocated Total ALLOWANCE FOR CREDIT LOSSES: Beginning balance $ 633 $ 958 $ 701 $ 7,415 $ 3,346 $ 606 $ 641 $ 13 $ 14,313 Charge-Offs ( 19 ) ( 105 ) ( 143 ) - ( 814 ) ( 251 ) - - ( 1,332 ) Recoveries 13 - 14 10 257 164 - - 458 Provision (Credit) 230 187 137 1,705 1,058 106 - 21 3,444 Other Non-interest - - - - - - 400 - 400 Ending Balance $ 857 $ 1,040 $ 709 $ 9,130 $ 3,847 $ 625 $ 1,041 $ 34 $ 17,283 Ending balance: $ - $ 691 $ 1 $ 664 $ 825 $ 3 $ - $ - $ 2,184 Ending balance: $ 857 $ 349 $ 708 $ 8,466 $ 3,022 $ 622 $ 1,041 $ 34 $ 15,099 Ending balance: loans $ 37 $ - $ - $ - $ - $ - $ - $ - $ 37 FINANCING RECEIVABLES: Ending balance $ 395,805 $ 198,033 $ 118,504 $ 847,110 $ 240,138 $ 57,829 $ - $ - $ 1,857,419 Ending balance: $ 604 $ 6,725 $ 20 $ 3,561 $ 1,003 $ 26 $ - $ - $ 11,939 Ending balance: $ 394,489 $ 191,107 $ 118,484 $ 843,299 $ 238,849 $ 57,803 $ - $ - $ 1,844,031 Ending balance: loans $ 712 $ 201 $ - $ 250 $ 286 $ - $ - $ - $ 1,449 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Major Categories of Banking Premises and Equipment and Accumulated Depreciation | The major categories of banking premises and equipment and accumulated depreciation at December 31 are summarized below: (In Thousands) 2022 2021 Land $ 6,896 $ 6,652 Buildings (useful life 15 - 39 years) 34,501 30,929 Furnishings (useful life 3 - 15 years) 26,448 23,160 67,845 60,741 Less: Accumulated depreciation ( 39,464 ) ( 33,828 ) Premises and Equipment (Net) $ 28,381 $ 26,913 |
Servicing (Tables)
Servicing (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Summary of Mortgage Servicing Rights Capitalized and Amortized | The following summarizes mortgage servicing rights capitalized and amortized during each year: (In Thousands) 2022 2021 Beginning of Year $ 3,571 $ 3,320 Capitalized Additions 537 1,417 Amortization ( 559 ) ( 1,166 ) Ending Balance, December 31 3,549 3,571 Valuation Allowance - ( 414 ) Mortgage Servicing Rights net, December 31 $ 3,549 $ 3,157 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Time Deposits | Time deposits as of December 31 consist of the following: (In Thousands) 2022 2021 Time deposits under $250,000 $ 495,891 $ 397,102 Time deposits of $250,000 or more 62,089 74,377 $ 557,980 $ 471,479 |
Scheduled Maturities for Time Deposits | At December 31, 2022 the scheduled maturities for time deposits are as follows: (In Thousands) 2023 $ 383,052 2024 91,267 2025 62,412 2026 13,862 2027 7,068 Thereafter 319 $ 557,980 |
Federal Funds Purchased and S_2
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer [Abstract] | |
Daily Securities under Agreement to Repurchase | The table below presents the daily securities sold under agreement to repurchase and the term repurchase agreements. It does not include the Bank’s federal funds purchased. Daily Securities Sold Under Agreement to Repurchase Amount Weighted Maximum Amount Approximate Approximate Outstanding Average Borrowings Average Weighted Average at End Rate End Outstanding Outstanding in Interest Rate of Period (000's) of Period Month End (000's) Period (000's) For the Period 2022 $ 1,115 0.95 % $ 1,450 $ 1,169 0.43 % 2021 $ 1,062 0.70 % $ 1,991 $ 1,514 0.43 % Term CD's Sold Under Agreement to Repurchase Amount Weighted Maximum Amount Approximate Approximate Outstanding Average Borrowings Average Weighted Average at End Rate End Outstanding Outstanding in Interest Rate of Period (000's) of Period Month End (000's) Period (000's) For the Period 2022 $ 30,518 0.97 % $ 34,504 $ 31,573 2.54 % 2021 $ 28,206 1.00 % $ 28,362 $ 28,315 2.56 % |
Schedule of Remaining Contractual Maturity in Repurchase Agreements and Collateral Pledged | The table below shows the remaining contractual maturity in the repurchase agreements and the collateral pledged as of December 31, 2022. December 31, 2022 Remaining Contractual Maturity of the Agreements Overnight & Continuous Up to 30 days 30-90 days Greater Than Total Federal funds purchased $ 22,573 $ - $ - $ - $ 22,573 Repurchase agreements US Treasury & agency securities 1,115 30,518 31,633 Total $ 23,688 $ - $ - $ 30,518 $ 54,206 |
Borrowings and Subordinated N_2
Borrowings and Subordinated Notes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Borrowings Exclusive of Fair Value | The table below shows the maturities of the borrowings exclusive of the fair value. (In Thousands) 2023 $ 71,507 2024 32,500 2025 11,500 2026 - 2027 9,064 Thereafter 2,867 Total $ 127,438 |
Schedule of Subordinated Notes | December 31, 2022 December 31, 2021 (In Thousands) Principal Unamortized Note Issuance Costs Principal Unamortized Note Issuance Costs Subordinated Notes $ 35,000 $ ( 414 ) $ 35,000 $ ( 529 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31 are as follows: (In Thousands) 2022 2021 2020 Current: Federal $ 7,430 $ 7,536 $ 6,289 State 359 271 513 Total current 7,789 7,807 6,802 Deferred: Federal 227 ( 1,746 ) ( 1,596 ) State ( 56 ) ( 59 ) ( 95 ) Total deferred 171 ( 1,805 ) ( 1,691 ) Total Income Tax $ 7,960 $ 6,002 $ 5,111 |
Reconciliation of the Statutory Federal Income Tax Rate to the Effective Tax Rate | The following is a reconciliation of the statutory federal income tax rate to the effective tax rate: (In Thousands) 2022 2021 2020 Federal income tax at statutory rates $ 8,489 $ 6,194 $ 5,294 (Decrease) increase resulting from: State income tax, net of federal benefit 239 167 330 Tax exempt interest ( 133 ) ( 116 ) ( 146 ) Section 831 deduction ( 270 ) ( 294 ) ( 266 ) Other ( 365 ) 51 ( 101 ) Total Income Tax $ 7,960 $ 6,002 $ 5,111 |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at December 31 are comprised of the following: (In Thousands) 2022 2021 Deferred Tax Assets: Allowance for loan losses $ 4,623 $ 3,629 Deferred compensation 570 561 Net unrealized loss on available-for-sale securities 10,163 846 Fair value adjustments 2,152 1,913 Other 554 277 Total deferred tax assets 18,062 7,226 Deferred Tax Liabilities: Accreted discounts on bonds 54 22 Depreciation 1,083 772 FHLB stock dividends 1,011 828 Intangible amortization 2,640 1,282 Mortgage servicing rights 787 778 Prepaids 500 471 Other 424 173 Total deferred tax liabilities 6,499 4,326 Net Deferred Tax Asset (Liability) $ 11,563 $ 2,900 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Summary of Restricted Shares Issued, Vested and Forfeited | The table below summarizes the details of the restricted shares issued, vested, and forfeited for the years ending December 31, 2021, 2021 and 2020. Year Ended December 31, 2022 2021 2020 Number of Number of Employees Number of Number of Employees Number of Number of Employees Restricted shares issued 56,496 109 48,750 96 37,382 92 Restricted shares vested 26,900 60 18,845 50 23,491 58 Restricted shares awarded due to retirement 3,775 3 4,425 7 10,890 8 Restricted shares awarded for other - - - - 1,050 1 Restricted shares forfeited 8,000 9 2,575 4 2,175 5 |
Activity of Restricted Stock Awards | The following table summarizes the activity of restricted stock awards as of December 31: Year Ended December 31, 2022 2021 2020 Number of Weighted Number of Weighted Number of Weighted Beginning of period 111,131 $ 23.02 88,226 $ 28.40 88,450 $ 31.52 Granted 56,496 30.46 48,750 22.70 37,382 21.80 Vested ( 30,675 ) 24.77 ( 23,270 ) 42.03 ( 35,431 ) 29.27 Forfeited ( 8,000 ) 30.15 ( 2,575 ) 24.28 ( 2,175 ) 21.92 Nonvested, end of period 128,952 $ 25.75 111,131 $ 23.02 88,226 $ 28.40 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Calculation of Basic Earnings Per Share | The table below presents basic and diluted earnings per share for the years ended December 31, 2021, 2020, and 2019. Year Ended December 31, December 31, December 31, 2022 2021 2020 Earnings per share Net income $ 32,515 $ 23,495 $ 20,095 Less: distributed earnings allocated to ( 97 ) ( 70 ) ( 57 ) Less: undistributed earnings allocated to ( 187 ) ( 121 ) ( 96 ) Net earnings available to common $ 32,231 $ 23,304 $ 19,942 Weighted average common shares outstanding 13,206,713 11,664,852 11,146,270 Less: average unvested restricted shares ( 115,291 ) ( 94,634 ) ( 84,879 ) Weighted average common shares outstanding 13,091,422 11,570,218 11,061,391 Basic and diluted earnings per share $ 2.46 $ 2.01 $ 1.80 |
Off Balance Sheet Activities (T
Off Balance Sheet Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding Financial Instruments Whose Contract Amounts Represent Credit Risk | At December 31, 2022 and 2021, the following financial instruments were outstanding whose contract amounts represent credit risk: (In Thousands) 2022 2021 Commitments to extend credit $ 691,501 $ 557,094 Credit card arrangements - 23,179 Standby letters of credit 1,046 983 |
Minimum Regulatory Capital Re_2
Minimum Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Federal Home Loan Banks [Abstract] | |
Summary of Bank's Actual and Required Capital Amounts and Ratios | The Bank’s actual and required capital amounts and ratios as of December 31, 2022 and December 31, 2021 are as follows: Actual Minimum Capital Required Required to be Considered (000's) (000's) (000's) As of December 31, 2022 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital $ 259,510 11.15 % $ 104,763 4.50 % $ 151,324 6.50 % Total Risk-Based Capital 281,085 12.07 % 186,245 8.00 % 232,806 10.00 % Tier 1 Capital 259,510 11.15 % 139,684 6.00 % 186,245 8.00 % Tier 1 Leverage Capital 259,510 9.03 % 114,972 4.00 % 143,714 5.00 % Actual Minimum Capital Required Required to be Considered (000's) (000's) (000's) As of December 31, 2021 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital $ 256,943 14.26 % $ 81,074 4.50 % $ 117,112 6.50 % Total Risk-Based Capital 274,226 15.22 % 144,138 8.00 % 180,173 10.00 % Tier 1 Capital 256,943 14.26 % 108,104 6.00 % 144,138 8.00 % Tier 1 Leverage Capital 256,943 10.25 % 100,317 4.00 % 125,396 5.00 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2022 and 2021, are reflected below. The aggregate fair values in the table below do not represent the total market value of the Bank’s assets and liabilities. The table excludes the following: Bank Premises and Equipment, Goodwill, Mortgage Servicing Rights, Other Real Estate Owned, Other Assets, Other Liabilities and Accrued Expenses. (In Thousands) December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Amount Value Level 1 Level 2 Level 3 Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 84,409 $ 84,409 $ 84,409 $ - $ - $ 180,823 $ 180,823 $ 180,823 $ - $ - Interest-bearing time deposits 4,442 4,440 - 4,440 - 10,913 10,933 - 10,933 - Securities - available-for-sale 390,789 390,789 94,678 292,766 3,345 429,931 429,931 89,177 335,981 4,773 Other securities 9,799 9,799 - - 9,799 8,162 8,162 - - 8,162 Loans held for sale 827 815 - - 815 7,714 7,844 - - 7,844 Loans, net 2,336,074 2,171,152 - - 2,171,152 1,841,177 1,864,386 - - 1,864,386 Interest receivable 10,440 10,440 - - 10,440 7,209 7,209 - - 7,209 Financial Liabilities: Interest bearing deposits $ 1,378,090 $ 1,377,944 $ - $ - $ 1,377,944 $ 1,248,294 $ 1,248,044 $ - $ - $ 1,248,044 Noninterest bearing deposits 532,794 532,794 532,794 - - 473,689 473,689 - 473,689 - Time deposits 557,980 543,737 - - 543,737 471,479 475,810 - - 475,810 Total Deposits 2,468,864 2,454,475 532,794 - 1,921,681 2,193,462 2,197,543 - 473,689 1,723,854 Fed funds purchased and 54,206 54,206 - - 54,206 29,268 29,268 - - 29,268 Federal Home Loan Bank 127,485 125,761 - - 125,761 24,065 24,305 - - 24,305 Other borrowings 10,000 10,000 - 10,000 - 40,000 40,000 - 40,000 - Subordinated notes 34,586 30,993 - 30,993 - 34,471 35,000 - 35,000 - Interest payable 1,739 1,739 - - 1,739 1,125 1,125 - - 1,125 |
Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes financial assets measured at fair value on a recurring basis as of December 31, 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) Quoted Prices in Significant Significant Active Markets Observable Observable for Identical Inputs Inputs December 31, 2022 Assets (Level 1) (Level 2) (Level 3) Assets-(Securities Available-for-Sale) U.S. Treasury $ 94,678 $ - $ - U.S. Government agencies - 139,767 - Mortgage-backed securities - 86,927 - State and local governments - 66,072 3,345 Total Securities Available-for-Sale $ 94,678 $ 292,766 $ 3,345 Quoted Prices in Significant Significant Active Markets Observable Observable for Identical Inputs Inputs December 31, 2021 Assets (Level 1) (Level 2) (Level 3) 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 | (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Governments Governments Governments Tax-Exempt Taxable Total Balance at January 1, 2022 $ 2,307 $ 2,466 $ 4,773 Change in Market Value ( 76 ) ( 203 ) ( 279 ) Purchases - - - Sales - - - Payments & Maturities ( 160 ) - ( 160 ) Reclassification and Adjustments - ( 989 ) ( 989 ) Balance at December 31, 2022 $ 2,071 $ 1,274 $ 3,345 (In Thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and Local State and Local State and Local Governments Governments Governments Tax-Exempt Taxable Total Balance at January 1, 2021 $ - $ 1,562 $ 1,562 Change in Market Value 44 ( 96 ) ( 52 ) Purchases 2,418 1,000 3,418 Sales - - - Payments & Maturities - - - Reclassification and Adjustments ( 155 ) - ( 155 ) Balance at December 31, 2021 $ 2,307 $ 2,466 $ 4,773 |
Collateral Dependent Impaired Loans and Other Real Estate | The following table presents collateral dependent impaired loans and other real estate owned as recorded at fair value: ($ in Thousands) Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2022 Quoted Prices in Markets for Significant Significant Balance at Identical Observable Inputs Unobservable Inputs December 31, 2022 Assets (Level 1) (Level 2) (Level 3) Collateral dependent impaired $ 2,667 $ - $ - $ 2,667 Mortgage servicing rights - - - - Other real estate owned - - - - - ($ in Thousands) Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2021 Quoted Prices in Markets for Significant Significant Balance at Identical Observable Inputs Unobservable Inputs December 31, 2021 Assets (Level 1) (Level 2) (Level 3) Collateral dependent impaired $ 8,527 $ - $ - $ 8,527 Mortgage servicing rights 3,157 - - 3,157 Other real estate owned - 99 - - 99 |
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) Fair Value at December 31, 2022 Valuation Technique Unobservable Inputs Range State and local $ 3,345 Discounted Cash Flow Credit strength of underlying project or entity / Discount rate 2.08 - 5.01 % 4.38 %) Collateral dependent 2,667 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 20.00 - 29.01 % 24.13 %) Mortgage servicing - Discounted Cash Flow Constant prepayment rate and probability of default / Discount rate — % - Appraisals Discount to reflect current market — % Other real estate (In Thousands) Fair Value at December 31, 2021 Valuation Technique Unobservable Inputs Range State and local $ 4,773 Discounted Cash Flow Credit strength of underlying project or entity / Discount rate 0.21 - 1.77 % 1.33 %) Collateral dependent 8,527 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 20.00 - 53.95 % 34.78 %) Mortgage servicing 3,157 Discounted Cash Flow Constant prepayment rate and probability of default / Discount rate 1.94 - 27.70 % 18.44 %) Other real estate 99 Appraisals Discount to reflect current market 32.72 % 32.72 %) |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | Balance Sheets (In Thousands) 2022 2021 Assets Cash $ 16,901 $ 19,293 Interest-bearing time deposits 498 1,234 Related party receivables: Dividends and accounts receivable from subsidiary 2,114 4,636 Accrued interest receivable - municipals / interest 38 43 Securities - municipals 7,460 9,027 Investment in subsidiaries 319,371 340,733 Total Assets $ 346,382 $ 374,966 Liabilities Other borrowings $ 10,000 $ 40,000 Subordinated notes, net of unamortized issuance costs 34,586 34,471 Dividends payable 2,832 2,461 Accrued interest payable 618 743 Accrued expenses 206 124 Total Liabilities 48,242 77,799 Stockholders' Equity 298,140 297,167 Total Liabilities and Stockholders' Equity $ 346,382 $ 374,966 |
Schedule of Condensed Income and Comprehensive Income Statements | Statements of Income and Comprehensive Income (In Thousands) 2022 2021 2020 Income Dividends from subsidiaries $ 44,285 $ 23,200 $ 8,800 Interest - municipals / interest-bearing time deposits 308 253 382 Loss on sales of available-for-sale securities - 293 - Total income 44,593 23,746 9,182 Expenses Interest 1,588 743 - Operating expenses 1,176 1,335 923 Total expenses 2,764 2,078 923 Income Before Income Taxes and Equity in 41,829 21,668 8,259 Income Taxes (Benefit) ( 535 ) ( 347 ) ( 184 ) 42,364 22,015 8,443 Equity in undistributed earnings of subsidiaries ( 9,849 ) 1,480 11,652 Net Income 32,515 23,495 20,095 Other Comprehensive Income (Loss): Unrealized gains (losses) on securities, net of taxes ( 35,049 ) ( 8,881 ) 4,599 Comprehensive Income (Loss) $ ( 2,534 ) $ 14,614 $ 24,694 |
Schedule of Condensed Cash Flow Statement | Statements of Cash Flows (In Thousands) 2022 2021 2020 Cash Flows from Operating Activities Net income $ 32,515 $ 23,495 $ 20,095 Adjustments to reconcile net income to net cash Equity in undistributed net income 9,849 ( 1,480 ) ( 11,652 ) Amortization of premiums on available-for-sale securities, net 61 81 154 Amortization of subordinated notes issuance fees 116 49 - Stock-based compensation expense 899 822 1,024 Director stock awards 120 73 48 Gain on sale of available-for-sale securities - ( 293 ) - Changes in assets and liabilities: Other assets and liabilities 2,560 ( 456 ) 1,742 Net cash provided by operating activities 46,120 22,291 11,411 Cash Flows from Investing Activities Activity in available-for-sale securities: Maturities, prepayments and calls 1,540 795 385 Sales - 7,773 - Purchases ( 398 ) - ( 745 ) Activity in certificates of deposit Maturities 1,234 493 - Purchases ( 498 ) - - Cash used for acquisitions ( 9,806 ) ( 79,235 ) - Net cash used in investing activities ( 7,928 ) ( 70,174 ) ( 360 ) Cash Flows from Financing Activities Proceeds (repayments) of other borrowings ( 30,000 ) 35,000 - Purchase of treasury stock ( 308 ) ( 338 ) ( 383 ) Proceeds from issuance of subordinated notes - 34,421 - Payment of dividends ( 10,276 ) ( 7,670 ) ( 7,186 ) Net cash provided by (used in) financing activities ( 40,584 ) 61,413 ( 7,569 ) Net Change in Cash and Cash Equivalents ( 2,392 ) 13,530 3,482 Cash and Cash Equivalents - Beginning of year 19,293 5,763 2,281 Cash and Cash Equivalents - End of year $ 16,901 $ 19,293 $ 5,763 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | Quarterly Financial Data - UNAUDITED Quarter Ended in 2022 Mar 31 June 30 Sep 30 Dec 31 Summary of Income: Interest income $ 21,899 $ 23,911 $ 25,847 $ 29,492 Interest expense 2,116 2,047 3,264 6,935 Net Interest Income 19,783 21,864 22,583 22,557 Provision for loan loss 580 1,628 1,637 755 Net interest income after provision of loan loss 19,203 20,236 20,946 21,802 Other income (expense) ( 9,150 ) ( 9,915 ) ( 9,739 ) ( 12,908 ) Net income before income taxes 10,053 10,321 11,207 8,894 Income taxes 1,951 2,050 2,253 1,706 Net income $ 8,102 $ 8,271 $ 8,954 $ 7,188 Earnings per Common Share $ 0.62 $ 0.63 $ 0.68 $ 0.53 Average common shares outstanding 12,955,107 12,957,126 12,983,307 13,606,876 Quarter Ended in 2021 Mar 31 June 30 Sep 30 Dec 31 Summary of Income: Interest income $ 16,765 $ 17,530 $ 20,122 $ 22,423 Interest expense 1,728 1,554 1,672 2,388 Net Interest Income 15,037 15,976 18,450 20,035 Provision for loan loss 1,700 641 659 444 Net interest income after provision for loan loss 13,337 15,335 17,791 19,591 Other income (expense) ( 7,368 ) ( 9,033 ) ( 10,247 ) ( 9,909 ) Net income before income taxes 5,969 6,302 7,544 9,682 Income taxes 1,060 1,319 1,624 1,999 Net income $ 4,909 $ 4,983 $ 5,920 $ 7,683 Earnings per Common Share $ 0.44 $ 0.44 $ 0.53 $ 0.59 Average common shares outstanding 11,197,012 11,191,043 11,209,732 13,046,299 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2022 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Period for federal funds sold outstanding | 1 day | |||||||||||
Loan non-accrual classification period | 90 days | |||||||||||
Days to charged consumer loans to the value of the collateral | 90 days | |||||||||||
Maximum time for re-evaluation (in months) | 12 months | |||||||||||
Re-evaluation period for real estate | 2 years | |||||||||||
Amount of fair value of capital over carrying value | $ 427,500 | |||||||||||
Percentage of fair value of capital over carrying value | 137.20% | |||||||||||
Number of times fair value of capital in excess of carrying value of goodwill description | over 4.9 times | |||||||||||
Other real estate owned | $ 0 | $ 159 | $ 0 | $ 159 | ||||||||
Percentage of likelihood of realization of recognized tax benefit, minimum | 50% | |||||||||||
Provision for loan loss | $ 755 | $ 1,637 | $ 1,628 | $ 580 | $ 444 | $ 659 | $ 641 | $ 1,700 | $ 4,600 | $ 3,444 | $ 6,981 | |
Maximum [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Maturity period of cash equivalents | 3 months | |||||||||||
Maximum [Member] | Accounting Standards Update 2016-13 [Member] | One-time Cumulative-effect Adjustment [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Provision for loan loss | $ 7,000 | |||||||||||
Minimum [Member] | Accounting Standards Update 2016-13 [Member] | One-time Cumulative-effect Adjustment [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Provision for loan loss | $ 3,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Components of Other Comprehensive Income (Loss) and Related Tax Effects (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax [Abstract] | |||
Net unrealized gain (loss) on available-for-sale securities | $ (44,366) | $ (10,948) | $ 6,091 |
Reclassification adjustment for (gain) loss on sale of available-for-sale securities | (293) | (270) | |
Net unrealized gain (loss) on available-for-sale securities | (44,366) | (11,241) | 5,821 |
Tax expense (benefit) | (9,317) | (2,360) | 1,222 |
Other comprehensive income (loss) | $ (35,049) | $ (8,881) | $ 4,599 |
Business Combination & Asset _3
Business Combination & Asset Purchase - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 01, 2022 USD ($) Office $ / shares shares | Oct. 01, 2021 USD ($) Office $ / shares shares | Apr. 30, 2021 USD ($) Office $ / shares shares | Nov. 16, 2020 USD ($) shares | Jan. 01, 2019 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) Loan shares | Sep. 30, 2021 Loan | Dec. 31, 2022 USD ($) Loan shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | Nov. 30, 2020 USD ($) Client | |
Business Acquisition [Line Items] | ||||||||||||
Common stock, shares outstanding | shares | 14,063,999 | 14,564,425 | 14,063,999 | |||||||||
Remaining economic useful life | 7 years | |||||||||||
Goodwill | $ 80,434,000 | $ 86,358,000 | $ 80,434,000 | |||||||||
Amortization expense | 1,011,000 | 677,000 | $ 720,000 | |||||||||
Custar | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amortization expense | 160,000 | |||||||||||
Customer Lists [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amortization expense | 123,000 | 123,000 | 16,000 | |||||||||
Peoples Federal Savings and Loan [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of full-service offices | Office | 3 | |||||||||||
Common stock issued in exchange of each outstanding share | 0.6597 | |||||||||||
Cash payment for exchange of each share | $ / shares | $ 24 | |||||||||||
Minimum number of shares to be exchanged under merger agreement | shares | 758,566 | |||||||||||
Common stock, shares outstanding | shares | 1,167,025 | |||||||||||
Share price | $ / shares | $ 26.87 | |||||||||||
Total consideration for acquisition | $ 23,249,000 | |||||||||||
Cash paid for the capital stock | 9,806,000 | 9,806,000 | ||||||||||
Stock issued for acquisition | 13,446,000 | |||||||||||
Business combination, acquisition related costs | 2,400,000 | |||||||||||
Recognition of core deposit intangible asset with acquired purchase | $ 6,000,000 | |||||||||||
Goodwill | 5,924,000 | |||||||||||
Fair value of assets acquired | 101,800,000 | |||||||||||
Gross principal and contractual interest | 116,100,000 | |||||||||||
Acquisition expected to be uncollectible | $ 0 | |||||||||||
Loan receivable weighted average life | 44 months 12 days | |||||||||||
Business combination, premises and equipment written up value | $ 581,000 | |||||||||||
Business combination, average remaining life | 12 years 9 months 18 days | |||||||||||
Fair value for certificate of deposit, valuation amount | $ 662,000 | |||||||||||
Fair value for certificate of deposit, amortization period | 1 year 1 month 6 days | |||||||||||
Fair value of Federal Home Loan Bank (FHLB) advances, valuation amount | $ 69,000 | |||||||||||
Fair value of Federal Home Loan Bank (FHLB) advances, amortization period | 5 years 2 months 12 days | |||||||||||
Acquisition expected to be uncollectible | $ 0 | |||||||||||
Peoples Federal Savings and Loan [Member] | Building [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, premises and equipment written down value | 597,000 | |||||||||||
Peoples Federal Savings and Loan [Member] | Core Deposits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Recognition of core deposit intangible asset with acquired purchase | $ 6,000,000 | |||||||||||
Remaining economic useful life | 7 years | |||||||||||
Peoples Federal Savings and Loan [Member] | Data Processing [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 1,100,000 | |||||||||||
Peoples Federal Savings and Loan [Member] | Consulting Fees [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 542,900 | |||||||||||
Peoples Federal Savings and Loan [Member] | Employee Benefits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 126,500 | |||||||||||
Peoples Federal Savings and Loan [Member] | Other General and Administrative Expenses [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 501,000 | |||||||||||
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 | 59,234,000 | ||||||||||
Stock issued for acquisition | 41,078,000 | |||||||||||
Business combination, acquisition related costs | 148,500,000 | 1,700,000 | ||||||||||
Goodwill | 25,220,000 | |||||||||||
Fair value of assets acquired | 334,700,000 | |||||||||||
Gross principal and contractual interest | 403,300,000 | |||||||||||
Acquisition expected to be uncollectible | $ 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 | |||||||||||
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 | |||||||||||
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 | $ 237,200 | $ 189,800 | $ 127,700 | 189,800 | ||||||||
Number of commercial purchased credit impaired loans paid off | Loan | 2 | |||||||||||
Number of consumer purchased credit impaired loans paid off | Loan | 1 | 5 | ||||||||||
Discount recognized at acquisition related to commercial purchased credit-impaired loans | $ 47,400 | $ 62,100 | ||||||||||
Business acquisition, number of shares issued to purchase assets | shares | 500,426 | 1,833,845 | ||||||||||
Acquisition expected to be uncollectible | 5,600,000 | |||||||||||
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 | |||||||||||
Perpetual Federal Savings Bank [Member] | Data Processing [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 444,900 | |||||||||||
Perpetual Federal Savings Bank [Member] | Consulting Fees [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 636,800 | |||||||||||
Perpetual Federal Savings Bank [Member] | Employee Benefits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 90,800 | 131,500 | ||||||||||
Perpetual Federal Savings Bank [Member] | Other General and Administrative Expenses [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 57,700 | 488,300 | ||||||||||
Ossian State Bank [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of full-service offices | Office | 2 | |||||||||||
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 | |||||||||||
Business combination, acquisition related costs | 31,600 | 2,200,000 | 42,500 | |||||||||
Goodwill | 7,874,000 | |||||||||||
Fair value of assets acquired | 52,400,000 | |||||||||||
Gross principal and contractual interest | 63,700,000 | |||||||||||
Acquisition expected to be uncollectible | $ 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 | |||||||||||
Fair value for certificate of deposit, amortization period | 1 year 4 months 24 days | |||||||||||
Fair value adjustment of loans acquired and accounted | $ 324,800 | $ 320,600 | $ 10,100 | 320,600 | ||||||||
Discount recognized at acquisition related to commercial purchased credit-impaired loans | $ 311,000 | 4,200 | ||||||||||
Goodwill deductible for tax purpose, period | 15 years | |||||||||||
Number of agricultural real purchased credit impaired loans paid off | Loan | 2 | |||||||||||
Acquisition expected to be uncollectible | 1,100,000 | |||||||||||
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 | |||||||||||
Ossian Financial Services, Inc. [Member] | Data Processing [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 938,900 | |||||||||||
Ossian Financial Services, Inc. [Member] | Consulting Fees [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 255,200 | 12,500 | ||||||||||
Ossian Financial Services, Inc. [Member] | Employee Benefits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 694,100 | |||||||||||
Ossian Financial Services, Inc. [Member] | ATM Expense [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | 13,800 | |||||||||||
Ossian Financial Services, Inc. [Member] | Other General and Administrative Expenses [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business combination, acquisition related costs | $ 255,000 | $ 30,000 | ||||||||||
Bank of Geneva [Member] | Core Deposits [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Recognition of core deposit intangible asset with acquired purchase | $ 3,900,000 | |||||||||||
Adams County Financial Resources [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total consideration for acquisition | $ 825,000 | |||||||||||
Stock issued for acquisition | $ 825,000 | |||||||||||
Business acquisition, number of shares issued to purchase assets | 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 |
Business Combination & Asset _4
Business Combination & Asset Purchase - Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 01, 2022 | Oct. 01, 2021 | Apr. 30, 2021 | Nov. 16, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | ||||||
Goodwill | $ 86,358 | $ 80,434 | ||||
Peoples Federal Savings and Loan [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 9,806 | $ 9,806 | ||||
Common Shares | 13,446 | |||||
Treasury stock repurchased | (3) | |||||
Total | 23,249 | |||||
Assets | ||||||
Cash and cash equivalents | 18,881 | |||||
Other securities, at cost | 1,271 | |||||
Loans, net | 101,755 | |||||
Premises and equipment | 1,906 | |||||
Goodwill | 5,924 | |||||
Other assets | 12,081 | |||||
Total Assets Purchased | 141,818 | |||||
Deposits | ||||||
Noninterest bearing | 7,139 | |||||
Interest bearing | 104,719 | |||||
Total deposits | 111,858 | |||||
Federal Home Loan Bank (FHLB) advances | 896 | |||||
Accrued expenses and other liabilities | 5,815 | |||||
Total Liabilities Assumed | $ 118,569 | |||||
Perpetual Federal Savings Bank [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 59,234 | $ 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 | |||||
Adams County Financial Resources [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Common Shares | $ 825 | |||||
Total | 825 | |||||
Assets | ||||||
Premises and equipment | 25 | |||||
Customer list intangible | 800 | |||||
Total Assets Purchased | $ 825 |
Business Combination & Asset _5
Business Combination & Asset Purchase - Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized (Parenthetical) (Detail) - shares | Oct. 01, 2022 | Oct. 01, 2021 | Nov. 16, 2020 |
Perpetual Federal Savings Bank [Member] | |||
Business Acquisition [Line Items] | |||
Common stock issued in exchange of each outstanding share | 500,426 | 1,833,845 | |
Treasury stock repurchased | 125 | ||
Adams County Financial Resources [Member] | |||
Business Acquisition [Line Items] | |||
Common stock issued in exchange of each outstanding share | 40,049 |
Business Combination & Asset _6
Business Combination & Asset Purchase - Summary of Carrying Amount of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 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 | $ 267 | $ 510 | $ 728 | |
Perpetual Federal Savings Bank [Member] | Consumer Real Estate [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | 288 | 581 | 608 | |
Perpetual Federal Savings Bank [Member] | Agricultural Real Estate [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | 107 | 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] | Consumer [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 | 9 | 208 | $ 1,309 | |
Ossian Financial Services, Inc. [Member] | Consumer Real Estate [Member] | ||||
Business Acquisition [Line Items] | ||||
Carrying amount, net of fair value adjustment | $ 19 | 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 & Asset _7
Business Combination & Asset Purchase - Summary of Carrying Amount of Loans (Parenthetical) (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 01, 2021 | Apr. 30, 2021 |
Perpetual Federal Savings Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair value adjustment | $ 127,700 | $ 189,800 | $ 237,200 | |
Ossian Financial Services, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair value adjustment | $ 10,100 | $ 320,600 | $ 324,800 |
Business Combination & Asset _8
Business Combination & 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 |
Consumer [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 & Asset _9
Business Combination & Asset Purchase - Summary of Changes in Accretable Yield or Income Expected to be Collected (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Peoples Federal Savings and Loan [Member] | ||
Business Acquisition [Line Items] | ||
Additions | $ 856 | |
Accretion | (58) | |
Ending Balance | 798 | |
Perpetual Federal Savings Bank [Member] | ||
Business Acquisition [Line Items] | ||
Beginning Balance | 5,262 | |
Additions | 294 | $ 5,592 |
Accretion | (1,318) | (330) |
Disposals | (2) | |
Ending Balance | 4,236 | 5,262 |
Ossian Financial Services, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Beginning Balance | 645 | |
Additions | 1 | 762 |
Accretion | (176) | (117) |
Ending Balance | 470 | 645 |
Limberlost Bancshares, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Beginning Balance | 1,198 | 1,653 |
Additions | 13 | 17 |
Accretion | (426) | (431) |
Disposals | (41) | |
Ending Balance | $ 785 | $ 1,198 |
Business Combination & Asset_10
Business Combination & Asset Purchase - Schedule of Pro-forma Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of Operations | |||
Net Interest Income - Before Provision for Loan Losses | $ 90,290 | $ 84,362 | $ 81,636 |
Provision for Loan Losses | 4,513 | 3,445 | 6,901 |
Net Interest Income After Provision for Loan Losses | 85,777 | 80,917 | 74,735 |
Noninterest Income | 14,099 | 18,931 | 17,668 |
Noninterest Expense | 57,426 | 57,622 | 55,765 |
Income Before Income Taxes | 42,450 | 42,226 | 36,638 |
Income Taxes | 8,185 | 8,458 | 7,242 |
Net Income | $ 34,265 | $ 33,768 | $ 29,396 |
Basic and Diluted Earnings Per Share | $ 2.59 | $ 2.57 | $ 2.24 |
Business Combination & Asset_11
Business Combination & Asset Purchase - Schedule of Future Amortization of Core Deposit Intangible Assets (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Core Deposits [Member] | |
Business Acquisition [Line Items] | |
2023 | $ 1,656 |
2024 | 1,656 |
2025 | 1,656 |
2026 | 1,096 |
2027 | 1,096 |
Thereafter | 1,627 |
Total | 8,787 |
Core Deposits [Member] | Geneva [Member] | |
Business Acquisition [Line Items] | |
2023 | 560 |
2024 | 560 |
2025 | 560 |
Total | 1,680 |
Core Deposits [Member] | Ossian Financial Services, Inc. [Member] | |
Business Acquisition [Line Items] | |
2023 | 140 |
2024 | 140 |
2025 | 140 |
2026 | 140 |
2027 | 140 |
Thereafter | 47 |
Total | 747 |
Core Deposits [Member] | Perpetual Federal Savings Bank [Member] | |
Business Acquisition [Line Items] | |
2023 | 95 |
2024 | 95 |
2025 | 95 |
2026 | 95 |
2027 | 95 |
Thereafter | 74 |
Total | 549 |
Core Deposits [Member] | Peoples Federal Savings and Loan [Member] | |
Business Acquisition [Line Items] | |
2023 | 861 |
2024 | 861 |
2025 | 861 |
2026 | 861 |
2027 | 861 |
Thereafter | 1,506 |
Total | 5,811 |
Customer Lists [Member] | |
Business Acquisition [Line Items] | |
2023 | 123 |
2024 | 123 |
2025 | 123 |
2026 | 123 |
2027 | 47 |
Total | $ 539 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 439,186 | $ 433,962 |
Gross Unrealized Gains | 69 | 3,032 |
Gross Unrealized Losses | (48,466) | (7,063) |
Fair Value | 390,789 | 429,931 |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 104,507 | 90,775 |
Gross Unrealized Losses | (9,829) | (1,598) |
Fair Value | 94,678 | 89,177 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 156,817 | 159,673 |
Gross Unrealized Gains | 695 | |
Gross Unrealized Losses | (17,050) | (3,482) |
Fair Value | 139,767 | 156,886 |
Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 101,068 | 118,550 |
Gross Unrealized Gains | 839 | |
Gross Unrealized Losses | (14,141) | (1,462) |
Fair Value | 86,927 | 117,927 |
State and Local Governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 76,794 | 64,964 |
Gross Unrealized Gains | 69 | 1,498 |
Gross Unrealized Losses | (7,446) | (521) |
Fair Value | $ 69,417 | $ 65,941 |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Realized gains on sales | $ 9.3 | $ 11.8 | |
Investments pledged, carrying value | $ 134.8 | $ 115 | |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ (6,965) | $ (4,842) |
Fair Value, Less Than Twelve Months | 99,357 | 256,800 |
Gross Unrealized Losses, Twelve Months and Over | (41,501) | (2,221) |
Fair Value, Twelve Months and Over | 286,095 | 63,659 |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | (207) | (1,598) |
Fair Value, Less Than Twelve Months | 9,121 | 89,177 |
Gross Unrealized Losses, Twelve Months and Over | (9,622) | |
Fair Value, Twelve Months and Over | 85,557 | |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | (1,081) | (1,898) |
Fair Value, Less Than Twelve Months | 24,560 | 86,739 |
Gross Unrealized Losses, Twelve Months and Over | (15,969) | (1,584) |
Fair Value, Twelve Months and Over | 114,906 | 41,738 |
Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | (2,454) | (1,050) |
Fair Value, Less Than Twelve Months | 26,905 | 63,157 |
Gross Unrealized Losses, Twelve Months and Over | (11,687) | (412) |
Fair Value, Twelve Months and Over | 60,022 | 16,434 |
State and Local Governments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | (3,223) | (296) |
Fair Value, Less Than Twelve Months | 38,771 | 17,727 |
Gross Unrealized Losses, Twelve Months and Over | (4,223) | (225) |
Fair Value, Twelve Months and Over | $ 25,610 | $ 5,487 |
Securities - Gross Realized Gai
Securities - Gross Realized Gains (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-Sale, Realized Gain (Loss) [Abstract] | ||
Gross realized gains | $ 293 | $ 270 |
Net realized gains | 293 | 270 |
Tax expense related to net realized gains | $ 62 | $ 57 |
Securities - Amortized Cost a_2
Securities - Amortized Cost and Fair Value of Debt Securities, by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available-for-Sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, One year or less | $ 20,732 | |
Amortized Cost, After one year through five years | 209,735 | |
Amortized Cost, After five years through ten years | 105,681 | |
Amortized Cost, After ten years | 1,970 | |
Amortized Cost, Total | 338,118 | |
Amortized Cost, Mortgage-backed securities | 101,068 | |
Amortized Cost | 439,186 | $ 433,962 |
Fair Value, One year or less | 20,283 | |
Fair Value, After one year through five years | 190,333 | |
Fair Value, After five years through ten years | 91,379 | |
Fair Value, After ten years | 1,867 | |
Fair Value, Total | 303,862 | |
Fair Value, Mortgage-backed securities | 86,927 | |
Total, Fair Value | $ 390,789 | $ 429,931 |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for sale | $ 827,000 | $ 7,714,000 | $ 7,700,000 | |
Loans | 2,357,903,000 | 1,859,157,000 | ||
Allowance for loan losses | 20,313,000 | 16,242,000 | $ 13,672,000 | $ 7,228,000 |
Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 242,360,000 | 208,270,000 | ||
Allowance for loan losses | $ 0 | |||
Commercial and Industrial [Member] | PPP Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 2,900,000 |
Loans - Loans (Detail)
Loans - Loans (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Loans: | ||||
Loans - Gross | $ 2,357,903,000 | $ 1,859,157,000 | ||
Less: Net deferred loan fees and costs | (1,516,000) | (1,738,000) | ||
Loans after net deferred loan fees and costs | 2,356,387,000 | 1,857,419,000 | ||
Less: Allowance for loan losses | (20,313,000) | (16,242,000) | $ (13,672,000) | $ (7,228,000) |
Loans - Net | 2,336,074,000 | 1,841,177,000 | ||
Consumer Real Estate [Member] | ||||
Loans: | ||||
Loans - Gross | 494,423,000 | 395,873,000 | ||
Loans after net deferred loan fees and costs | 494,423,000 | 395,805,000 | ||
Agricultural Real Estate [Member] | ||||
Loans: | ||||
Loans - Gross | 220,819,000 | 198,343,000 | ||
Loans after net deferred loan fees and costs | 220,514,000 | 198,033,000 | ||
Agricultural [Member] | ||||
Loans: | ||||
Loans - Gross | 128,733,000 | 118,368,000 | ||
Loans after net deferred loan fees and costs | 128,926,000 | 118,504,000 | ||
Commercial Real Estate [Member] | ||||
Loans: | ||||
Loans - Gross | 1,152,603,000 | 848,477,000 | ||
Loans after net deferred loan fees and costs | 1,150,511,000 | 847,110,000 | ||
Commercial and Industrial [Member] | ||||
Loans: | ||||
Loans - Gross | 242,360,000 | 208,270,000 | ||
Loans after net deferred loan fees and costs | 242,301,000 | 208,049,000 | ||
Less: Allowance for loan losses | 0 | |||
Consumer [Member] | ||||
Loans: | ||||
Loans - Gross | 89,147,000 | 57,737,000 | ||
Loans after net deferred loan fees and costs | 89,894,000 | 57,829,000 | ||
Other Loan [Member] | ||||
Loans: | ||||
Loans - Gross | 29,818,000 | 32,089,000 | ||
Loans after net deferred loan fees and costs | $ 29,818,000 | $ 32,089,000 |
Loans - Contractual Maturity Sc
Loans - Contractual Maturity Schedule by Major Category of Loans Excluding Fair Value Adjustments (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | $ 2,366,308 |
Consumer Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 500,407 |
Agricultural Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 221,938 |
Agricultural [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 128,776 |
Commercial Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 1,152,864 |
Commercial and Industrial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 242,996 |
Consumer [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 89,498 |
Other Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 29,829 |
Major Category Of Receivables Due Within One Year [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 179,080 |
Major Category Of Receivables Due Within One Year [Member] | Consumer Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 8,890 |
Major Category Of Receivables Due Within One Year [Member] | Agricultural Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 525 |
Major Category Of Receivables Due Within One Year [Member] | Agricultural [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 59,119 |
Major Category Of Receivables Due Within One Year [Member] | Commercial Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 26,670 |
Major Category Of Receivables Due Within One Year [Member] | Commercial and Industrial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 81,552 |
Major Category Of Receivables Due Within One Year [Member] | Consumer [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 2,089 |
Major Category Of Receivables Due Within One Year [Member] | Other Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 235 |
Major Category Of Receivables Due Within One Year to Five Years [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 583,080 |
Major Category Of Receivables Due Within One Year to Five Years [Member] | Consumer Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 34,961 |
Major Category Of Receivables Due Within One Year to Five Years [Member] | Agricultural Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 7,116 |
Major Category Of Receivables Due Within One Year to Five Years [Member] | Agricultural [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 47,113 |
Major Category Of Receivables Due Within One Year to Five Years [Member] | Commercial Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 336,890 |
Major Category Of Receivables Due Within One Year to Five Years [Member] | Commercial and Industrial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 108,729 |
Major Category Of Receivables Due Within One Year to Five Years [Member] | Consumer [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 47,052 |
Major Category Of Receivables Due Within One Year to Five Years [Member] | Other Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 1,219 |
Major Category Of Receivables Over Five Years [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 1,604,148 |
Major Category Of Receivables Over Five Years [Member] | Consumer Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 456,556 |
Major Category Of Receivables Over Five Years [Member] | Agricultural Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 214,297 |
Major Category Of Receivables Over Five Years [Member] | Agricultural [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 22,544 |
Major Category Of Receivables Over Five Years [Member] | Commercial Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 789,304 |
Major Category Of Receivables Over Five Years [Member] | Commercial and Industrial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 52,715 |
Major Category Of Receivables Over Five Years [Member] | Consumer [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | 40,357 |
Major Category Of Receivables Over Five Years [Member] | Other Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans excluding fair value adjustments | $ 28,375 |
Loans - Distribution of Fixed R
Loans - Distribution of Fixed Rate Loans and Variable Rate Loans by Major Loan Category (Detail) $ in Thousands | Dec. 31, 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 | $ 354,420 |
Distribution of variable rate loans by major loan category, Variable Rate | 140,003 |
Agricultural Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 144,702 |
Distribution of variable rate loans by major loan category, Variable Rate | 76,117 |
Agricultural [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 52,867 |
Distribution of variable rate loans by major loan category, Variable Rate | 75,866 |
Commercial Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 941,927 |
Distribution of variable rate loans by major loan category, Variable Rate | 210,676 |
Commercial and Industrial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 130,513 |
Distribution of variable rate loans by major loan category, Variable Rate | 111,847 |
Consumer [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 88,972 |
Distribution of variable rate loans by major loan category, Variable Rate | 175 |
Other Loan [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Distribution of fixed rate loans by major loan category, Fixed Rate | 20,029 |
Distribution of variable rate loans by major loan category, Variable Rate | $ 9,789 |
Loans - Contractual Aging of Re
Loans - Contractual Aging of Recorded Investment in Past Due Loans by Portfolio Classification of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | $ 2,356,387 | $ 1,857,419 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 3,197 | 749 |
60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 674 | 131 |
Greater Than 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,154 | 575 |
Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 6,025 | 1,455 |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,350,362 | 1,855,964 |
Consumer Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 494,423 | 395,805 |
Consumer Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,536 | 228 |
Consumer Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 635 | |
Consumer Real Estate [Member] | Greater Than 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 90 | 246 |
Consumer Real Estate [Member] | Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,261 | 474 |
Consumer Real Estate [Member] | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 492,162 | 395,331 |
Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 220,514 | 198,033 |
Agricultural Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 118 | 436 |
Agricultural Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2 | |
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 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,670 | 436 |
Agricultural Real Estate [Member] | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 218,844 | 197,597 |
Agricultural [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 128,926 | 118,504 |
Agricultural [Member] | 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 433 | |
Agricultural [Member] | Greater Than 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 152 | |
Agricultural [Member] | Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 585 | |
Agricultural [Member] | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 128,341 | 118,504 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 1,150,511 | 847,110 |
Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 74 | |
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 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 254 | 180 |
Commercial Real Estate [Member] | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,150,257 | 846,930 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 272,119 | 240,138 |
Commercial and Industrial [Member] | 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 953 | 21 |
Commercial and Industrial [Member] | 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 131 | |
Commercial and Industrial [Member] | Greater Than 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 182 | 149 |
Commercial and Industrial [Member] | Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,135 | 301 |
Commercial and Industrial [Member] | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 270,984 | 239,837 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 89,894 | 57,829 |
Consumer [Member] | 30 to 59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 83 | 64 |
Consumer [Member] | 60 to 89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 37 | |
Consumer [Member] | Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 120 | 64 |
Consumer [Member] | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 89,774 | $ 57,765 |
Loans - Recorded Investment in
Loans - Recorded Investment in Nonaccrual Loans by Portfolio Class of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Investment in nonaccrual loans | $ 4,689 | $ 8,076 |
Consumer Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Investment in nonaccrual loans | 612 | 824 |
Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Investment in nonaccrual loans | 1,921 | 6,477 |
Agricultural [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Investment in nonaccrual loans | 152 | 20 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Investment in nonaccrual loans | 903 | 600 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Investment in nonaccrual loans | 1,096 | 149 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Investment in nonaccrual loans | $ 5 | $ 6 |
Loans (Tier Risk Rating System)
Loans (Tier Risk Rating System) - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | $ 2,356,387 | $ 1,857,419 |
Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 220,514 | 198,033 |
Agricultural [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 128,926 | 118,504 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 1,150,511 | 847,110 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 242,301 | 208,049 |
Other Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 29,818 | 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 | 9,912 | 8,720 |
1-2 [Member] | Agricultural [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 5,857 | 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 | 8,718 | 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 | 780 | 4,604 |
3 [Member] | Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 47,405 | 42,180 |
3 [Member] | Agricultural [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 33,671 | 38,623 |
3 [Member] | Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 370,035 | 238,132 |
3 [Member] | Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 67,506 | 46,547 |
3 [Member] | Other Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 10,921 | 11,408 |
4 [Member] | Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 146,143 | 129,301 |
4 [Member] | Agricultural [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 88,992 | 75,164 |
4 [Member] | Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 737,745 | 568,038 |
4 [Member] | Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 167,291 | 152,736 |
4 [Member] | Other Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 18,897 | 20,681 |
5 [Member] | Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 10,389 | 4,599 |
5 [Member] | Agricultural [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 228 | 227 |
5 [Member] | Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 9,751 | 14,509 |
5 [Member] | Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 3,592 | 986 |
6 [Member] | Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 6,665 | 13,233 |
6 [Member] | Agricultural [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 178 | 312 |
6 [Member] | Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 24,262 | 15,537 |
6 [Member] | Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | $ 3,132 | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | $ 2,356,387 | $ 1,857,419 |
Performing | 659 | 1,449 |
Consumer - Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Performing | 3,919 | |
Consumer - Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Performing | 89,894 | 53,910 |
Performing [Member] | Consumer - Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Performing | 3,906 | |
Performing [Member] | Consumer - Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Performing | 89,853 | 53,820 |
Nonperforming [Member] | Consumer - Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Performing | 13 | |
Nonperforming [Member] | Consumer - Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Performing | 41 | 90 |
Consumer Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 494,423 | 395,805 |
Performing | 405 | 712 |
Pass [Member] | Consumer Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 492,575 | 392,940 |
5 [Member] | Consumer Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | 676 | 1,673 |
6 [Member] | Consumer Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans after net deferred loan fees and costs | $ 1,172 | $ 1,192 |
Loans - Schedule of Impaired Lo
Loans - Schedule of Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Impaired loans without a valuation allowance | $ 4,194 | $ 1,228 | |
Impaired loans with a valuation allowance | 4,663 | 10,711 | |
Total impaired loans | 8,857 | 11,939 | |
Valuation allowance related to impaired loans | 1,996 | 2,184 | |
Total nonaccrual loans | 4,689 | 8,076 | |
Total loans past-due ninety days or more and still accruing | 0 | 0 | |
Average investment in impaired loans | 10,710 | 12,247 | $ 10,232 |
Interest income recognized on impaired loans | 361 | 292 | 269 |
Interest income recognized on a cash basis on impaired loans | $ 97 | $ 188 | $ 135 |
Loans (Impaired Loans) - Additi
Loans (Impaired Loans) - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||||
Jul. 30, 2021 | Apr. 30, 2022 Loan | Jun. 30, 2021 Loan | Mar. 31, 2021 Loan | Dec. 31, 2022 USD ($) Loan Contract | Dec. 31, 2021 USD ($) Loan | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Additional funds available to be advanced in connection with impaired loans | $ 0 | |||||||
Impaired loans classified as troubled debt restructured | $ 3,600,000 | $ 7,600,000 | ||||||
Number of contracts modified | Loan | 3 | 3 | ||||||
TDR impaired loans paid off | Loan | 2 | 2 | 3 | 1 | ||||
Term of loan | 5 years | 3 years | ||||||
Loan amortization period | 10 years | |||||||
Allowance for loan losses | $ 20,313,000 | $ 16,242,000 | $ 13,672,000 | $ 7,228,000 | ||||
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 | |||||||
Litigation and any deficiency charged off period | 150 days | |||||||
Delinquent period for charging down/allocated commercial and agricultural credits | 120 days | |||||||
Foreclosed residential real estate property | $ 159,000 | |||||||
Consumer Real Estate [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of contracts modified | Contract | 1 | |||||||
Foreclosed residential real estate property | $ 0 | 159,000 | ||||||
Residential real estate properties foreclosure proceedings | 255,000 | |||||||
Specific Allocation on Principal Balance [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Allowance for loan losses | $ 825,000 | |||||||
Principal Forgiveness [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of contracts modified | Contract | 0 | |||||||
Sale Of Property | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of contracts modified | Loan | 1 | |||||||
Payment Changes from Monthly Payment to Principal and Interest at Maturity [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of contracts modified | Loan | 1 | |||||||
Allowance for loan losses | $ 837,000 | $ 313,000 |
Loans - Impaired Loans Classifi
Loans - Impaired Loans Classified as Troubled Debt Restructured (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Contract Loan | Dec. 31, 2021 USD ($) Contract Loan | |
Financing Receivable Modifications [Line Items] | ||
Number of Contracts Modified in the Last 12 Months | Loan | 3 | 3 |
Consumer Real Estate [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts Modified in the Last 12 Months | Contract | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 95 | |
Post-Modification Outstanding Recorded Investment | $ 95 | |
Agricultural Real Estate [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts Modified in the Last 12 Months | Contract | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 1,655 | |
Post-Modification Outstanding Recorded Investment | $ 1,655 | |
Commercial and Industrial [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts Modified in the Last 12 Months | Contract | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 1,232 | $ 1,000 |
Post-Modification Outstanding Recorded Investment | $ 1,232 | $ 1,000 |
Commercial Real Estate [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Contracts Modified in the Last 12 Months | Contract | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 74 | $ 382 |
Post-Modification Outstanding Recorded Investment | $ 74 | $ 382 |
Loans - Loans Individually Eval
Loans - Loans Individually Evaluated for Impairment by Portfolio Class of Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | $ 4,194 | $ 1,228 | |
With a specific allowance recorded, Recorded Investment | 4,663 | 10,711 | |
Related Allowance | 1,996 | 2,184 | |
Recorded Investment | 8,857 | 11,939 | |
Average Recorded Investment | 10,710 | 12,247 | $ 10,232 |
Interest Income Recognized | 361 | 292 | 269 |
Interest Income Recognized Cash Basis | 97 | 188 | $ 135 |
Consumer Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 509 | 604 | |
With no related allowance recorded, Unpaid Principal Balance | 509 | 604 | |
With no related allowance recorded, Average Recorded Investment | 355 | 456 | |
With no related allowance recorded, Interest Income Recognized | 5 | 5 | |
With no related allowance recorded, Interest Income Recognized Cash Basis | 12 | 15 | |
With a specific allowance recorded, Recorded Investment | 60 | ||
With a specific allowance recorded, Unpaid Principal Balance | 60 | ||
Related Allowance | 6 | ||
With a specific allowance recorded, Average Recorded Investment | 15 | 59 | |
With a specific allowance recorded, Interest Income Recognized Cash Basis | 1 | ||
Recorded Investment | 569 | 604 | |
Unpaid Principal Balance | 569 | 604 | |
Average Recorded Investment | 370 | 515 | |
Interest Income Recognized | 5 | 5 | |
Interest Income Recognized Cash Basis | 13 | 15 | |
Agricultural Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 2,280 | 423 | |
With no related allowance recorded, Unpaid Principal Balance | 2,385 | 423 | |
With no related allowance recorded, Average Recorded Investment | 2,048 | 1,000 | |
With no related allowance recorded, Interest Income Recognized | 25 | 33 | |
With no related allowance recorded, Interest Income Recognized Cash Basis | 6 | ||
With a specific allowance recorded, Recorded Investment | 6,302 | ||
With a specific allowance recorded, Unpaid Principal Balance | 6,406 | ||
Related Allowance | 691 | ||
With a specific allowance recorded, Average Recorded Investment | 1,388 | 5,414 | |
With a specific allowance recorded, Interest Income Recognized | 54 | ||
Recorded Investment | 2,280 | 6,725 | |
Unpaid Principal Balance | 2,385 | 6,829 | |
Average Recorded Investment | 3,436 | 6,414 | |
Interest Income Recognized | 25 | 87 | |
Interest Income Recognized Cash Basis | 6 | ||
Agricultural [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 152 | ||
With no related allowance recorded, Unpaid Principal Balance | 152 | ||
With no related allowance recorded, Average Recorded Investment | 588 | 143 | |
With no related allowance recorded, Interest Income Recognized | 18 | ||
With no related allowance recorded, Interest Income Recognized Cash Basis | 2 | 3 | |
With a specific allowance recorded, Recorded Investment | 20 | ||
With a specific allowance recorded, Unpaid Principal Balance | 20 | ||
Related Allowance | 1 | ||
With a specific allowance recorded, Average Recorded Investment | 94 | ||
Recorded Investment | 152 | 20 | |
Unpaid Principal Balance | 152 | 20 | |
Average Recorded Investment | 588 | 237 | |
Interest Income Recognized | 18 | ||
Interest Income Recognized Cash Basis | 2 | 3 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 1,234 | 180 | |
With no related allowance recorded, Unpaid Principal Balance | 1,272 | 180 | |
With no related allowance recorded, Average Recorded Investment | 1,252 | 1,445 | |
With no related allowance recorded, Interest Income Recognized | 29 | 70 | |
With no related allowance recorded, Interest Income Recognized Cash Basis | 43 | 9 | |
With a specific allowance recorded, Recorded Investment | 2,874 | 3,381 | |
With a specific allowance recorded, Unpaid Principal Balance | 2,874 | 3,381 | |
Related Allowance | 438 | 664 | |
With a specific allowance recorded, Average Recorded Investment | 3,176 | 2,199 | |
With a specific allowance recorded, Interest Income Recognized | 150 | 70 | |
With a specific allowance recorded, Interest Income Recognized Cash Basis | 3 | ||
Recorded Investment | 4,108 | 3,561 | |
Unpaid Principal Balance | 4,146 | 3,561 | |
Average Recorded Investment | 4,428 | 3,644 | |
Interest Income Recognized | 179 | 140 | |
Interest Income Recognized Cash Basis | 43 | ||
Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 17 | 21 | |
With no related allowance recorded, Unpaid Principal Balance | 417 | 21 | |
With no related allowance recorded, Average Recorded Investment | 135 | 920 | |
With no related allowance recorded, Interest Income Recognized | 2 | 24 | |
With no related allowance recorded, Interest Income Recognized Cash Basis | 10 | 158 | |
With a specific allowance recorded, Recorded Investment | 1,564 | 982 | |
With a specific allowance recorded, Unpaid Principal Balance | 1,564 | 982 | |
Related Allowance | 1,551 | 825 | |
With a specific allowance recorded, Average Recorded Investment | 1,736 | 498 | |
With a specific allowance recorded, Interest Income Recognized | 149 | 17 | |
With a specific allowance recorded, Interest Income Recognized Cash Basis | 23 | ||
Recorded Investment | 1,581 | 1,003 | |
Unpaid Principal Balance | 1,981 | 1,003 | |
Average Recorded Investment | 1,871 | 1,418 | |
Interest Income Recognized | 151 | 41 | |
Interest Income Recognized Cash Basis | 33 | 158 | |
Consumer [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance recorded, Recorded Investment | 2 | 26 | |
With no related allowance recorded, Unpaid Principal Balance | 2 | 26 | |
With no related allowance recorded, Average Recorded Investment | 15 | 17 | |
With no related allowance recorded, Interest Income Recognized | 1 | ||
With a specific allowance recorded, Recorded Investment | 165 | ||
With a specific allowance recorded, Unpaid Principal Balance | 165 | ||
Related Allowance | 1 | 3 | |
With a specific allowance recorded, Average Recorded Investment | 2 | 2 | |
With a specific allowance recorded, Interest Income Recognized | 1 | ||
Recorded Investment | 167 | 26 | |
Unpaid Principal Balance | 167 | 26 | |
Average Recorded Investment | 17 | 19 | |
Interest Income Recognized | $ 1 | $ 1 |
Loans - Summary of Activities i
Loans - Summary of Activities in Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Loan Losses | |||||||||||
Balance at beginning of year | $ 16,242 | $ 13,672 | $ 16,242 | $ 13,672 | $ 7,228 | ||||||
Provision for loan loss | $ 755 | $ 1,637 | $ 1,628 | $ 580 | $ 444 | $ 659 | $ 641 | $ 1,700 | 4,600 | 3,444 | 6,981 |
Loans charged off | (827) | (1,332) | (720) | ||||||||
Recoveries | 298 | 458 | 183 | ||||||||
Balance at ending of year | 20,313 | 16,242 | 20,313 | 16,242 | 13,672 | ||||||
Allowance for Unfunded Loan Commitments & Letters of Credit | 1,262 | 1,041 | 1,262 | 1,041 | 641 | ||||||
Total Allowance for Credit Losses | $ 21,575 | $ 17,283 | $ 21,575 | $ 17,283 | $ 14,313 |
Loans - Analysis of Allowance f
Loans - Analysis of Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
ALLOWANCE FOR CREDIT LOSSES: | |||||||||||
Beginning balance | $ 17,283 | $ 14,313 | $ 17,283 | $ 14,313 | |||||||
Charge Offs | (827) | (1,332) | $ (720) | ||||||||
Recoveries | 298 | 458 | 183 | ||||||||
Provision (Credit) | $ 755 | $ 1,637 | $ 1,628 | 580 | $ 444 | $ 659 | $ 641 | 1,700 | 4,600 | 3,444 | 6,981 |
Other Non-interest expense related to unfunded | 221 | 400 | |||||||||
Ending Balance | 21,575 | 17,283 | 21,575 | 17,283 | 14,313 | ||||||
Ending balance: individually evaluated for impairment | 1,996 | 2,184 | 1,996 | 2,184 | |||||||
Ending balance: collectively evaluated for impairment | 19,579 | 15,099 | 19,579 | 15,099 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 0 | 37 | 0 | 37 | |||||||
FINANCING RECEIVABLES: | |||||||||||
Ending balance | 2,356,387 | 1,857,419 | 2,356,387 | 1,857,419 | |||||||
Ending balance: individually evaluated for impairment | 8,857 | 11,939 | 8,857 | 11,939 | |||||||
Ending balance: collectively evaluated for impairment | 2,346,871 | 1,844,031 | 2,346,871 | 1,844,031 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 659 | 1,449 | 659 | 1,449 | |||||||
Consumer Real Estate [Member] | |||||||||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||||
Beginning balance | 857 | 633 | 857 | 633 | |||||||
Charge Offs | (19) | ||||||||||
Recoveries | 20 | 13 | |||||||||
Provision (Credit) | 121 | 230 | |||||||||
Ending Balance | 998 | 857 | 998 | 857 | 633 | ||||||
Ending balance: individually evaluated for impairment | 6 | 6 | |||||||||
Ending balance: collectively evaluated for impairment | 992 | 857 | 992 | 857 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 0 | 37 | 0 | 37 | |||||||
FINANCING RECEIVABLES: | |||||||||||
Ending balance | 494,423 | 395,805 | 494,423 | 395,805 | |||||||
Ending balance: individually evaluated for impairment | 569 | 604 | 569 | 604 | |||||||
Ending balance: collectively evaluated for impairment | 493,449 | 394,489 | 493,449 | 394,489 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 405 | 712 | 405 | 712 | |||||||
Agricultural Real Estate [Member] | |||||||||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||||
Beginning balance | 1,040 | 958 | 1,040 | 958 | |||||||
Charge Offs | (105) | ||||||||||
Provision (Credit) | (691) | 187 | |||||||||
Ending Balance | 349 | 1,040 | 349 | 1,040 | 958 | ||||||
Ending balance: individually evaluated for impairment | 691 | 691 | |||||||||
Ending balance: collectively evaluated for impairment | 349 | 349 | 349 | 349 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | |||||||
FINANCING RECEIVABLES: | |||||||||||
Ending balance | 220,514 | 198,033 | 220,514 | 198,033 | |||||||
Ending balance: individually evaluated for impairment | 2,280 | 6,725 | 2,280 | 6,725 | |||||||
Ending balance: collectively evaluated for impairment | 218,039 | 191,107 | 218,039 | 191,107 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 195 | 201 | 195 | 201 | |||||||
Agricultural [Member] | |||||||||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||||
Beginning balance | 709 | 701 | 709 | 701 | |||||||
Charge Offs | (143) | ||||||||||
Recoveries | 7 | 14 | |||||||||
Provision (Credit) | 35 | 137 | |||||||||
Ending Balance | 751 | 709 | 751 | 709 | 701 | ||||||
Ending balance: individually evaluated for impairment | 1 | 1 | |||||||||
Ending balance: collectively evaluated for impairment | 751 | 708 | 751 | 708 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | |||||||
FINANCING RECEIVABLES: | |||||||||||
Ending balance | 128,926 | 118,504 | 128,926 | 118,504 | |||||||
Ending balance: individually evaluated for impairment | 152 | 20 | 152 | 20 | |||||||
Ending balance: collectively evaluated for impairment | 128,774 | 118,484 | 128,774 | 118,484 | |||||||
Commercial Real Estate [Member] | |||||||||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||||
Beginning balance | 9,130 | 7,415 | 9,130 | 7,415 | |||||||
Recoveries | 9 | 10 | |||||||||
Provision (Credit) | 2,785 | 1,705 | |||||||||
Ending Balance | 11,924 | 9,130 | 11,924 | 9,130 | 7,415 | ||||||
Ending balance: individually evaluated for impairment | 438 | 664 | 438 | 664 | |||||||
Ending balance: collectively evaluated for impairment | 11,486 | 8,466 | 11,486 | 8,466 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | |||||||
FINANCING RECEIVABLES: | |||||||||||
Ending balance | 1,150,511 | 847,110 | 1,150,511 | 847,110 | |||||||
Ending balance: individually evaluated for impairment | 4,108 | 3,561 | 4,108 | 3,561 | |||||||
Ending balance: collectively evaluated for impairment | 1,146,389 | 843,299 | 1,146,389 | 843,299 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 14 | 250 | 14 | 250 | |||||||
Commercial and Industrial [Member] | |||||||||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||||
Beginning balance | 3,847 | 3,346 | 3,847 | 3,346 | |||||||
Charge Offs | (418) | (814) | |||||||||
Recoveries | 93 | 257 | |||||||||
Provision (Credit) | 1,860 | 1,058 | |||||||||
Ending Balance | 5,382 | 3,847 | 5,382 | 3,847 | 3,346 | ||||||
Ending balance: individually evaluated for impairment | 1,551 | 825 | 1,551 | 825 | |||||||
Ending balance: collectively evaluated for impairment | 3,831 | 3,022 | 3,831 | 3,022 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | |||||||
FINANCING RECEIVABLES: | |||||||||||
Ending balance | 272,119 | 240,138 | 272,119 | 240,138 | |||||||
Ending balance: individually evaluated for impairment | 1,581 | 1,003 | 1,581 | 1,003 | |||||||
Ending balance: collectively evaluated for impairment | 270,493 | 238,849 | 270,493 | 238,849 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 45 | 286 | 45 | 286 | |||||||
Consumer [Member] | |||||||||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||||
Beginning balance | 625 | 606 | 625 | 606 | |||||||
Charge Offs | (409) | (251) | |||||||||
Recoveries | 169 | 164 | |||||||||
Provision (Credit) | 506 | 106 | |||||||||
Ending Balance | 891 | 625 | 891 | 625 | 606 | ||||||
Ending balance: individually evaluated for impairment | 1 | 3 | 1 | 3 | |||||||
Ending balance: collectively evaluated for impairment | 890 | 622 | 890 | 622 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | |||||||
FINANCING RECEIVABLES: | |||||||||||
Ending balance | 89,894 | 57,829 | 89,894 | 57,829 | |||||||
Ending balance: individually evaluated for impairment | 167 | 26 | 167 | 26 | |||||||
Ending balance: collectively evaluated for impairment | 89,727 | 57,803 | 89,727 | 57,803 | |||||||
Unallocated [Member] | |||||||||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||||
Beginning balance | 34 | 13 | 34 | 13 | |||||||
Provision (Credit) | (16) | 21 | |||||||||
Ending Balance | 18 | 34 | 18 | 34 | 13 | ||||||
Ending balance: collectively evaluated for impairment | 18 | 34 | 18 | 34 | |||||||
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | |||||||
Unfunded Loan Commitment & Letters of Credit [Member] | |||||||||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||||
Beginning balance | $ 1,041 | $ 641 | 1,041 | 641 | |||||||
Other Non-interest expense related to unfunded | 221 | 400 | |||||||||
Ending Balance | 1,262 | 1,041 | 1,262 | 1,041 | $ 641 | ||||||
Ending balance: collectively evaluated for impairment | 1,262 | 1,041 | 1,262 | 1,041 | |||||||
Ending balance: loans acquired with deteriorated credit quality | $ 0 | $ 0 | $ 0 | $ 0 |
Premises and Equipment - Major
Premises and Equipment - Major Categories of Banking Premises and Equipment and Accumulated Depreciation (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Premises and Equipment (Gross) | $ 67,845 | $ 60,741 |
Less: Accumulated depreciation | (39,464) | (33,828) |
Premises and Equipment (Net) | 28,381 | 26,913 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and Equipment (Gross) | 6,896 | 6,652 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and Equipment (Gross) | 34,501 | 30,929 |
Furnishings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and Equipment (Gross) | $ 26,448 | $ 23,160 |
Premises and Equipment - Majo_2
Premises and Equipment - Major Categories of Banking Premises and Equipment and Accumulated Depreciation (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 39 years |
Furnishings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Furnishings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Office | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Property, Plant and Equipment [Abstract] | |||
Depreciation Expenses | $ 2,700 | $ 2,600 | $ 2,500 |
Construction in progress | $ 278 | ||
Number of construction of new offices | Office | 3 |
Servicing - Additional Informat
Servicing - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Loans serviced for others unpaid principal amount | $ 375,600 | $ 380,800 |
Capitalized service right assets included in other assets | 3,500 | 3,600 |
Fair market value of the capitalized servicing rights | $ 5,100 | $ 3,200 |
Prepayment rate | 7.70% | 21.70% |
Discount yield | 5.94% | 1.97% |
Valuation allowance | $ 414 |
Servicing - Summary of Mortgage
Servicing - Summary of Mortgage Servicing Rights Capitalized and Amortized (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing Assets at Fair Value [Line Items] | ||
Beginning of Year | $ 3,157 | |
Valuation Allowance | $ (414) | |
End of Year | 3,549 | 3,157 |
Mortgage Servicing Rights [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Beginning of Year | 3,571 | 3,320 |
Capitalized Additions | 537 | 1,417 |
Amortization | (559) | (1,166) |
Valuation Allowance | (414) | |
End of Year | 3,549 | 3,571 |
Mortgage Servicing Rights net, December 31 | $ 3,549 | $ 3,157 |
Deposits - Time Deposits (Detai
Deposits - Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Time deposits under $250,000 | $ 495,891 | $ 397,102 |
Time deposits of $250,000 or more | 62,089 | 74,377 |
Total | $ 557,980 | $ 471,479 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities for Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Maturities of Time Deposits [Abstract] | ||
2023 | $ 383,052 | |
2024 | 91,267 | |
2025 | 62,412 | |
2026 | 13,862 | |
2027 | 7,068 | |
Thereafter | 319 | |
Total | $ 557,980 | $ 471,479 |
Federal Funds Purchased and S_3
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase - Additional Information (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Federal funds purchased | $ 22,573,000 | $ 0 |
Securities sold under agreements to repurchase | 31,600,000 | |
Pledged as Collateral | ||
Variable Interest Entity [Line Items] | ||
Securities sold under agreements to repurchase | $ 43,600,000 | $ 31,100,000 |
Federal Funds Purchased and S_4
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase - Daily Securities Sold under Agreement to Repurchase (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amount Outstanding at End of Period | $ 31,600 | |
Daily Securities Sold Under Agreement to Repurchase [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amount Outstanding at End of Period | $ 1,115 | $ 1,062 |
Weighted Average Rate End of Period | 0.95% | 0.70% |
Maximum Amount Borrowings Outstanding Month End | $ 1,450 | $ 1,991 |
Approximate Average Outstanding in Period | $ 1,169 | $ 1,514 |
Approximate Weighted Average Interest Rate For the Period | 0.43% | 0.43% |
Term CDs Sold Under Agreement to Repurchase [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amount Outstanding at End of Period | $ 30,518 | $ 28,206 |
Weighted Average Rate End of Period | 0.97% | 1% |
Maximum Amount Borrowings Outstanding Month End | $ 34,504 | $ 28,362 |
Approximate Average Outstanding in Period | $ 31,573 | $ 28,315 |
Approximate Weighted Average Interest Rate For the Period | 2.54% | 2.56% |
Federal Funds Purchased and S_5
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase - Schedule of Remaining Contractual Maturity in Repurchase Agreements and Collateral Pledged (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Federal funds purchased | $ 22,573,000 | $ 0 |
Repurchase agreements, Remaining contractual maturity of the agreements | 31,600,000 | |
Total | 54,206,000 | $ 29,268,000 |
US Treasury & Agency Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements, Remaining contractual maturity of the agreements | 31,633,000 | |
Overnight & Continuous [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Federal funds purchased | 22,573,000 | |
Total | 23,688,000 | |
Overnight & Continuous [Member] | US Treasury & Agency Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements, Remaining contractual maturity of the agreements | 1,115,000 | |
Greater Than 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 30,518,000 | |
Greater Than 90 Days [Member] | US Treasury & Agency Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements, Remaining contractual maturity of the agreements | $ 30,518,000 |
Borrowings and Subordinated N_3
Borrowings and Subordinated Notes - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Jul. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) | Sep. 29, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||
Number of loans secured | Loan | 2 | |||
Term note | $ 30,000 | |||
Line of credit | $ 10,000 | $ 10,000 | ||
Percentage of interest on loan accrues rate | 2.50% | |||
Percentage of line of credit accrues rate | 5.50% | |||
Maturity date | Sep. 30, 2023 | |||
Total borrowings excluding for fair value related to acquisition | $ 127,438 | $ 23,900 | ||
Total borrowings, fair value related to acquisition | 47 | 197 | ||
Advances, secured by mortgage loans | 659 | 1,449 | ||
Unsecured borrowings through correspondent banks | 73,000 | 69,000 | ||
Unpledged securities which could be sold or used as collateral | 249,600 | 313,600 | ||
Additional borrowings available from the Federal Home Loan Bank based on current pledging | 2,000 | $ 91,200 | ||
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 | $ 35,000 | |||
Fixed-to-floating interest rate | 3.25% | |||
Subordinated notes, due date | Jul. 30, 2031 | |||
Percentage of notes prices on principal amount | 100% | |||
Peoples Federal Savings And Loan Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Bank undertook amount | $ 965 | |||
Peoples Federal Savings And Loan Bank [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Bank loan maturity year | 2022 | |||
Peoples Federal Savings And Loan Bank [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Bank loan maturity year | 2028 | |||
Perpetual Federal Savings Bank {Member] | ||||
Debt Instrument [Line Items] | ||||
Bank undertook amount | $ 6,000 | |||
Mortgage Loans at Cost [Member] | Asset Pledged as Collateral without Right [Member] | Federal Home Loan Bank Advances [Member] | ||||
Debt Instrument [Line Items] | ||||
Advances, secured by mortgage loans | 232,900 | $ 193,200 | ||
Cash Management Advance | ||||
Debt Instrument [Line Items] | ||||
Unsecured borrowings through correspondent banks | $ 130,400 | $ 94,200 | ||
Term Note [Member] | ||||
Debt Instrument [Line Items] | ||||
Short term debt, term | 12-month | |||
Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Short term debt, term | 12-month |
Borrowings and Subordinated N_4
Borrowings and Subordinated Notes - Schedule of Maturities of Borrowings Exclusive of Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 71,507 | |
2024 | 32,500 | |
2025 | 11,500 | |
2027 | 9,064 | |
Thereafter | 2,867 | |
Total | $ 127,438 | $ 23,900 |
Borrowings and Subordinated N_5
Borrowings and Subordinated Notes - Schedule of Subordinated Notes (Detail) - Subordinated Notes - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal | $ 35,000 | $ 35,000 |
Unamortized Note Issuance Costs | $ (414) | $ (529) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||||||||||
Federal | $ 7,430 | $ 7,536 | $ 6,289 | ||||||||
State | 359 | 271 | 513 | ||||||||
Total current | 7,789 | 7,807 | 6,802 | ||||||||
Deferred: | |||||||||||
Federal | 227 | (1,746) | (1,596) | ||||||||
State | (56) | (59) | (95) | ||||||||
Total deferred | 171 | (1,805) | (1,691) | ||||||||
Total Income Tax | $ 1,706 | $ 2,253 | $ 2,050 | $ 1,951 | $ 1,999 | $ 1,624 | $ 1,319 | $ 1,060 | $ 7,960 | $ 6,002 | $ 5,111 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate to the Effective Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Federal income tax at statutory rates | $ 8,489 | $ 6,194 | $ 5,294 | ||||||||
(Decrease) increase resulting from: | |||||||||||
State income tax, net of federal benefit | 239 | 167 | 330 | ||||||||
Tax exempt interest | (133) | (116) | (146) | ||||||||
Section 831 deduction | (270) | (294) | (266) | ||||||||
Other | (365) | 51 | (101) | ||||||||
Total Income Tax | $ 1,706 | $ 2,253 | $ 2,050 | $ 1,951 | $ 1,999 | $ 1,624 | $ 1,319 | $ 1,060 | $ 7,960 | $ 6,002 | $ 5,111 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets: | ||
Allowance for loan losses | $ 4,623 | $ 3,629 |
Deferred compensation | 570 | 561 |
Net unrealized loss on available-for-sale securities | 10,163 | 846 |
Fair value adjustments | 2,152 | 1,913 |
Other | 554 | 277 |
Total deferred tax assets | 18,062 | 7,226 |
Deferred Tax Liabilities: | ||
Accreted discounts on bonds | 54 | 22 |
Depreciation | 1,083 | 772 |
FHLB stock dividends | 1,011 | 828 |
Intangible amortization | 2,640 | 1,282 |
Mortgage servicing rights | 787 | 778 |
Prepaids | 500 | 471 |
Other | 424 | 173 |
Total deferred tax liabilities | 6,499 | 4,326 |
Net Deferred Tax Asset | $ 11,563 | $ 2,900 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Perpetual Federal Savings Bank [Member] | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | $ 377,807 | |
Deferred taxes business combination allocated to additional paid in capital | $ 2,779,000 | |
Unrecognized deferred taxes | $ 1,040,000 | |
Peoples Federal Savings and Loan [Member] | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | 2,638,002 | |
Operating loss carryforward at acquisition | 2,789,124 | |
Deferred taxes business combination allocated to additional paid in capital | $ 2,174,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Employee shares | Dec. 31, 2021 USD ($) Employee shares | Dec. 31, 2020 USD ($) Employee shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Minimum percentage of eligible compensation on a pre-tax or post-tax basis for eligible employees to save | 1% | ||
Employee contribution matching percentage | 50% | ||
Percentage of total eligible compensation, contribution by Bank, maximum limit | 6% | ||
Vesting percentage in participant's deferral contributions and employer matching contributions | 100% | ||
Nonelective employer contribution vesting percentage | 100% | ||
Defined contribution plan employer matching contribution description | In order to be eligible for discretionary contributions, employees must work 1,000 hours in the plan year and be employed on the last day of the year. | ||
Employer matching contribution and the discretionary contribution | $ | $ 1,700 | $ 1,500 | $ 1,000 |
Restricted stock awards, shares issued | 56,496 | 48,750 | 37,382 |
Awards grants originated in 2019, 2018 and 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of employees, received the stock | Employee | 1 | ||
Number of shares vested | 1,050 | ||
Awards grants originated in 2018, 2019 and 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of employees, received the stock | Employee | 7 | ||
Number of shares vested | 4,425 | ||
Awards grants originated in 2017, 2018, 2019 and 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of employees, received the stock | Employee | 8 | ||
Four employees received shares from awards granted due to retirement | 10,890 | ||
Awards grants originated in 2019, 2020 and 2021 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of employees, received the stock | Employee | 3 | ||
Number of shares vested | 3,775 | ||
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted stock awards, shares issued | 56,496 | 48,750 | 37,382 |
Stock issued to number of employees | Employee | 109 | 96 | 92 |
Shares vest under the plan | 100% | 100% | 100% |
Shares forfeited due to employee termination | 8,000 | 2,575 | 2,175 |
Number of shares vested | 30,675 | 23,270 | 35,431 |
Number of employees, received the stock | Employee | 60 | 50 | 58 |
Number of shares vested | 3,775 | 4,425 | 10,890 |
Compensation expense | $ | $ 899 | $ 822 | $ 1,000 |
Unrecognized compensation cost related to the nonvested portion of restricted stock awards under the plan | $ | $ 2,100 | ||
Unrecognized compensation cost related to the nonvested portion of restricted stock awards under the plan, period for recognition | 3 years | ||
Restricted Stock Awards [Member] | 2018 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares vested | 18,845 | ||
Number of employees, received the stock | Employee | 50 | ||
Restricted Stock Awards [Member] | 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares vested | 26,900 | 1,600 | |
Number of employees, received the stock | Employee | 60 | ||
Restricted Stock Awards [Member] | 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares vested | 21,340 | ||
Number of employees, received the stock | Employee | 53 | ||
Restricted Stock Awards [Member] | Immediate Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of employees, received the stock | Employee | 1 | ||
Number of shares vested | 551 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Restricted Shares Issued, Vested and Forfeited (Detail) | 12 Months Ended | ||
Dec. 31, 2022 Employee shares | Dec. 31, 2021 Employee shares | Dec. 31, 2020 Employee shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards, shares issued | 56,496 | 48,750 | 37,382 |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards, shares issued | 56,496 | 48,750 | 37,382 |
Restricted shares vested | 26,900 | 18,845 | 23,491 |
Restricted shares awarded due to retirement | 3,775 | 4,425 | 10,890 |
Restricted shares awarded for other | 1,050 | ||
Restricted shares forfeited | 8,000 | 2,575 | 2,175 |
Restricted shares issued | Employee | 109 | 96 | 92 |
Restricted shares vested | Employee | 60 | 50 | 58 |
Restricted shares awarded due to retirement | Employee | 3 | 7 | 8 |
Restricted shares awarded for other | Employee | 1 | ||
Restricted shares forfeited | Employee | 9 | 4 | 5 |
Employee Benefit Plans - Activi
Employee Benefit Plans - Activity of Restricted Stock Awards (Detail) - Restricted Stock Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of Shares, Beginning of period | 111,131 | 88,226 | 88,450 |
Number of Shares, Granted | 56,496 | 48,750 | 37,382 |
Number of Shares, Vested | (30,675) | (23,270) | (35,431) |
Number of Shares, Forfeited | (8,000) | (2,575) | (2,175) |
Number of Shares, Nonvested, end of period | 128,952 | 111,131 | 88,226 |
Weighted average fair value per award, Beginning of period | $ 23.02 | $ 28.40 | $ 31.52 |
Weighted average fair value per award, Granted | 30.46 | 22.70 | 21.80 |
Weighted average fair value per award, Vested | 24.77 | 42.03 | 29.27 |
Weighted average fair value per award, Forfeited | 30.15 | 24.28 | 21.92 |
Weighted average fair value per award, Nonvested, end of period | $ 25.75 | $ 23.02 | $ 28.40 |
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 ($) shares | Nov. 20, 2020 shares | Jun. 05, 2020 USD ($) shares |
Earnings Per Share Basic [Line Items] | |||||
Compensation annual basis committee award | $ | $ 10,013 | $ 6,000 | $ 4,000 | ||
Number of directors received shares | shares | 240 | 272 | 20 | 176 | |
Number of directors received shares | Director | 12 | 10 | |||
Number of directors received prorated dollar value of shares | Director | 4 | ||||
Perpetual Federal Savings Bank {Member] | |||||
Earnings Per Share Basic [Line Items] | |||||
Compensation annual basis committee award | $ | $ 1,523 | ||||
Number of directors received shares | shares | 68 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 7,188 | $ 8,954 | $ 8,271 | $ 8,102 | $ 7,683 | $ 5,920 | $ 4,983 | $ 4,909 | $ 32,515 | $ 23,495 | $ 20,095 |
Less: distributed earnings allocated to participating securities | (97) | (70) | (57) | ||||||||
Less: undistributed earnings allocated to participating securities | (187) | (121) | (96) | ||||||||
Net earnings available to common shareholders | $ 32,231 | $ 23,304 | $ 19,942 | ||||||||
Weighted average common shares outstanding including participating securities | 13,206,713 | 11,664,852 | 11,146,270 | ||||||||
Less: average unvested restricted shares | (115,291) | (94,634) | (84,879) | ||||||||
Weighted average common shares outstanding | 13,606,876 | 12,983,307 | 12,957,126 | 12,955,107 | 13,046,299 | 11,209,732 | 11,191,043 | 11,197,012 | 13,091,422 | 11,570,218 | 11,061,391 |
Basic Earnings Per Share | $ 0.53 | $ 0.68 | $ 0.63 | $ 0.62 | $ 0.59 | $ 0.53 | $ 0.44 | $ 0.44 | $ 2.46 | $ 2.01 | $ 1.80 |
Diluted Earnings Per Share | $ 0.53 | $ 0.68 | $ 0.63 | $ 0.62 | $ 0.59 | $ 0.53 | $ 0.44 | $ 0.44 | $ 2.46 | $ 2.01 | $ 1.80 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Directors and Executive Officers [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) SecurityLoan | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | ||
Granted loans to affiliate companies | $ 20,200 | $ 20,100 |
Subsequent advances | 12,500 | |
Payment received | 21,900 | |
Difference in related borrowings amounts | 151 | |
Ownership interest amount | $ 41,500 | $ 43,700 |
Number of new loans approved | SecurityLoan | 2 |
Off Balance Sheet Activities -
Off Balance Sheet Activities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Allowance for credit losses relates to unfunded loan commitments | $ 1 | $ 1 |
Off Balance Sheet Activities _2
Off Balance Sheet Activities - Outstanding Financial Instruments Whose Contract Amounts Represent Credit Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Standby letters of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Concentration of Risk | $ 1,046 | $ 983 |
Commitments to extend credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Concentration of Risk | $ 691,501 | 557,094 |
Credit card arrangements [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Concentration of Risk | $ 23,179 |
Minimum Regulatory Capital Re_3
Minimum Regulatory Capital Requirements - Additional Information (Detail) | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2019 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Minimum ratio of capital to risk-weighted assets | 0.0800 | 0.0800 | 0.080 |
Minimum ratio of capital to risk-weighted assets including capital conservation buffer | 10.50% | ||
Minimum leverage ratio calculated as ratio of Tier 1 capital to average quarterly assets | 0.0903 | 0.1025 | 0.040 |
Common Equity Tier 1 Capital [Member] | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Minimum ratio of capital to risk-weighted assets | 0.045 | ||
Capital conservation buffer | 2.50% | ||
Minimum ratio of capital to risk-weighted assets including capital conservation buffer | 7% | ||
Tier 1 Capital [Member] | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Minimum ratio of capital to risk-weighted assets | 0.060 | ||
Minimum ratio of capital to risk-weighted assets including capital conservation buffer | 8.50% |
Minimum Regulatory Capital Re_4
Minimum Regulatory Capital Requirements - Summary of Bank's Actual and Required Capital Amounts and Ratios (Detail) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2019 |
Federal Home Loan Banks [Abstract] | |||
Common Equity Tier 1 Capital to Risk Weighted Assets Actual, Amount | $ 259,510 | $ 256,943 | |
Total Risk-Based Capital to Risk Weighted Assets Actual, Amount | 281,085 | 274,226 | |
Tier 1 Capital to Risk Weighted Assets Actual, Amount | 259,510 | 256,943 | |
Tier 1 leverage Capital to Adjusted Total Assets Actual, Amount | $ 259,510 | $ 256,943 | |
Common Equity Tier 1 Capital to Risk Weighted Assets Actual, Ratio | 11.15% | 14.26% | |
Total Risk-Based Capital to Risk Weighted Assets Actual, Ratio | 0.1207 | 0.1522 | |
Tier 1 Capital to Risk Weighted Assets Actual, Ratio | 0.1115 | 0.1426 | |
Tier 1 leverage Capital to Adjusted Total Assets Actual, Ratio | 0.0903 | 0.1025 | 0.040 |
Common Equity Tier 1 Capital For Capital Adequacy Purposes, Amount | $ 104,763 | $ 81,074 | |
Total Risk-Based Capital to Risk Weighted Assets For Capital Adequacy Purposes, Amount | 186,245 | 144,138 | |
Tier 1 Capital to Risk Weighted Assets For Capital Adequacy Purposes, Amount | 139,684 | 108,104 | |
Tier 1 leverage Capital to Adjusted Total Assets For Capital Adequacy Purposes, Amount | $ 114,972 | $ 100,317 | |
Common Equity Tier 1 Capital to Risk Weighted Assets For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | |
Total Risk-Based Capital to Risk Weighted Assets For Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 | 0.080 |
Tier 1 Capital to Risk Weighted Assets For Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 | |
Tier 1 leverage Capital to Adjusted Total Assets For Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 | |
Common Equity Tier 1 Capital to Risk Weighted Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Amount | $ 151,324 | $ 117,112 | |
Total Risk-Based Capital to Risk Weighted Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Amount | 232,806 | 180,173 | |
Tier 1 Capital to Risk Weighted Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Amount | 186,245 | 144,138 | |
Tier 1 leverage Capital to Adjusted Total Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Amount | $ 143,714 | $ 125,396 | |
Common Equity Tier 1 Capital to Risk Weighted Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% | |
Total Risk-Based Capital to Risk Weighted Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Ratio | 0.1000 | 0.1000 | |
Tier 1 Capital to Risk Weighted Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Ratio | 0.0800 | 0.0800 | |
Tier 1 leverage Capital to Adjusted Total Assets To Be Well Capitalized Under the Prompt Corrective Action Provisions, Ratio | 0.0500 | 0.0500 |
Restrictions of Dividends & I_2
Restrictions of Dividends & Inter-company Borrowings - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Class of Stock [Line Items] | |
Dividends may be paid without prior regulatory approval | $ 42.9 |
Perpetual Federal Savings Bank [Member] | |
Class of Stock [Line Items] | |
Dividend approved by federal reserve for the acquisition | $ 40 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Estimated Fair Values and Related Carrying or Notional Amounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Securities - available-for-sale | $ 390,789 | $ 429,931 |
Financial Liabilities: | ||
Other borrowings | 10,000 | 40,000 |
Subordinated notes, net of unamortized issuance costs | 34,586 | 34,471 |
Reported Value Measurement [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 84,409 | 180,823 |
Interest-bearing time deposits | 4,442 | 10,913 |
Securities - available-for-sale | 390,789 | 429,931 |
Other securities | 9,799 | 8,162 |
Loans held for sale | 827 | 7,714 |
Loans, net | 2,336,074 | 1,841,177 |
Interest receivable | 10,440 | 7,209 |
Financial Liabilities: | ||
Total Deposits | 2,468,864 | 2,193,462 |
Fed funds purchased and securities sold under agreement to repurchase | 54,206 | 29,268 |
Federal Home Loan Bank advances | 127,485 | 24,065 |
Other borrowings | 10,000 | 40,000 |
Subordinated notes, net of unamortized issuance costs | 34,586 | 34,471 |
Interest payable | 1,739 | 1,125 |
Fair Value [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 84,409 | 180,823 |
Interest-bearing time deposits | 4,440 | 10,933 |
Securities - available-for-sale | 390,789 | 429,931 |
Other securities | 9,799 | 8,162 |
Loans held for sale | 815 | 7,844 |
Loans, net | 2,171,152 | 1,864,386 |
Interest receivable | 10,440 | 7,209 |
Financial Liabilities: | ||
Total Deposits | 2,454,475 | 2,197,543 |
Fed funds purchased and securities sold under agreement to repurchase | 54,206 | 29,268 |
Federal Home Loan Bank advances | 125,761 | 24,305 |
Other borrowings | 10,000 | 40,000 |
Subordinated notes, net of unamortized issuance costs | 30,993 | 35,000 |
Interest payable | 1,739 | 1,125 |
Level 1 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 84,409 | 180,823 |
Securities - available-for-sale | 94,678 | 89,177 |
Financial Liabilities: | ||
Total Deposits | 532,794 | |
Level 2 [Member] | ||
Financial Assets: | ||
Interest-bearing time deposits | 4,440 | 10,933 |
Securities - available-for-sale | 292,766 | 335,981 |
Financial Liabilities: | ||
Total Deposits | 473,689 | |
Other borrowings | 10,000 | 40,000 |
Subordinated notes, net of unamortized issuance costs | 30,993 | 35,000 |
Level 3 [Member] | ||
Financial Assets: | ||
Securities - available-for-sale | 3,345 | 4,773 |
Other securities | 9,799 | 8,162 |
Loans held for sale | 815 | 7,844 |
Loans, net | 2,171,152 | 1,864,386 |
Interest receivable | 10,440 | 7,209 |
Financial Liabilities: | ||
Total Deposits | 1,921,681 | 1,723,854 |
Fed funds purchased and securities sold under agreement to repurchase | 54,206 | 29,268 |
Federal Home Loan Bank advances | 125,761 | 24,305 |
Interest payable | 1,739 | 1,125 |
Interest Bearing Deposits [Member] | Reported Value Measurement [Member] | ||
Financial Liabilities: | ||
Total Deposits | 1,378,090 | 1,248,294 |
Interest Bearing Deposits [Member] | Fair Value [Member] | ||
Financial Liabilities: | ||
Total Deposits | 1,377,944 | 1,248,044 |
Interest Bearing Deposits [Member] | Level 3 [Member] | ||
Financial Liabilities: | ||
Total Deposits | 1,377,944 | 1,248,044 |
Non Interest Bearing Deposits [Member] | Reported Value Measurement [Member] | ||
Financial Liabilities: | ||
Total Deposits | 532,794 | 473,689 |
Non Interest Bearing Deposits [Member] | Fair Value [Member] | ||
Financial Liabilities: | ||
Total Deposits | 532,794 | 473,689 |
Non Interest Bearing Deposits [Member] | Level 1 [Member] | ||
Financial Liabilities: | ||
Total Deposits | 532,794 | |
Non Interest Bearing Deposits [Member] | Level 2 [Member] | ||
Financial Liabilities: | ||
Total Deposits | 473,689 | |
Time Deposits [Member] | Reported Value Measurement [Member] | ||
Financial Liabilities: | ||
Total Deposits | 557,980 | 471,479 |
Time Deposits [Member] | Fair Value [Member] | ||
Financial Liabilities: | ||
Total Deposits | 543,737 | 475,810 |
Time Deposits [Member] | Level 3 [Member] | ||
Financial Liabilities: | ||
Total Deposits | $ 543,737 | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total Securities Available-for-Sale | $ 390,789 | $ 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 | 94,678 | 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 | 94,678 | 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 | 292,766 | 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 | 292,766 | 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 | 3,345 | 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 | 3,345 | 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 | 94,678 | 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 | 94,678 | 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 | 139,767 | 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 | 139,767 | 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 | 86,927 | 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 | 86,927 | 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 | 69,417 | 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 | 66,072 | 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 | 3,345 | 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 | $ 3,345 | $ 4,773 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Changes in the Level 3 Fair Value Category of Unobservable Inputs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
State and Local Governments Tax-Exempt [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 2,307 | $ 0 |
Change in Market Value | $ (76) | 44 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | |
Purchases | $ 0 | 2,418 |
Sales | 0 | 0 |
Payments & Maturities | (160) | 0 |
Reclassification and Adjustments | 0 | (155) |
Ending Balance | 2,071 | 2,307 |
State and Local Governments Taxable[Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 2,466 | 1,562 |
Change in Market Value | $ (203) | (96) |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | |
Purchases | $ 0 | 1,000 |
Sales | 0 | 0 |
Payments & Maturities | 0 | 0 |
Reclassification and Adjustments | (989) | 0 |
Ending Balance | 1,274 | 2,466 |
State and Local Governments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 4,773 | 1,562 |
Change in Market Value | $ (279) | (52) |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | |
Purchases | $ 0 | 3,418 |
Sales | 0 | 0 |
Payments & Maturities | (160) | 0 |
Reclassification and Adjustments | (989) | (155) |
Ending Balance | $ 3,345 | $ 4,773 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Transfer of assets into or out of level 3 | $ 1 | $ 0 |
Transfer of liabilities into or out of level 3 | 1 | 0 |
Collateral dependent impaired loans categorized as Level 3 | 8,857,000 | 11,939,000 |
Specific allocation for collateral dependent impaired loans | 1,996,000 | 2,184,000 |
Collateral Dependent [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Specific allocation for collateral dependent impaired loans | 1,996,000 | 2,184,000 |
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 | $ 2,667,000 | $ 8,527,000 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Collateral Dependent Impaired Loans and Other Real Estate (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis, Total | $ 0 | $ 159 |
Collateral Dependent Impaired Loans [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 | 2,667 | 8,527 |
Mortgage Servicing Rights [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 | 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 | 2,667 | 8,527 |
Fair Value on Nonrecurring Basis [Member] | Collateral Dependent Impaired Loans [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 | $ 2,667 | 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 | 3,157 | |
Fair Value on Nonrecurring Basis [Member] | Mortgage Servicing Rights [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 | 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 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements (Detail) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 390,789 | $ 429,931 |
Fair Value | 0 | 159 |
State and Local Governments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 69,417 | 65,941 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 3,345 | 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 | $ 3,345 | $ 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] | ||
Unobservable Inputs | us-gaap:MeasurementInputAppraisedValueMember | us-gaap:MeasurementInputAppraisedValueMember |
Fair Value | $ 2,667 | $ 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 | $ 3,157 | |
Valuation Technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |
Unobservable Inputs | us-gaap:MeasurementInputDiscountRateMember | |
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 | 2.08 | 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 | 1.94 | |
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 | 5.01 | 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 | 29.01 | 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 | 27.70 | |
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 | 4.38 | 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 | 24.13 | 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 | 18.44 | |
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] | Other Real Estate Owned-Residential [Member] | Weighted Average | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Discount rate | 32.72 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||||
Interest-bearing time deposits | $ 4,442 | $ 10,913 | ||
Related party receivables: | ||||
Total Assets | 3,015,351 | 2,638,300 | ||
Liabilities | ||||
Other borrowings | 10,000 | 40,000 | ||
Subordinated notes, net of unamortized issuance costs | 34,586 | 34,471 | ||
Dividends payable | 2,832 | 2,461 | ||
Total liabilities | 2,717,211 | 2,341,133 | ||
Stockholders' Equity | 298,140 | 297,167 | $ 249,160 | $ 230,258 |
Total Liabilities and Stockholders' Equity | 3,015,351 | 2,638,300 | ||
Farmers & Merchants State Bank [Member] | ||||
Assets | ||||
Cash | 16,901 | 19,293 | ||
Interest-bearing time deposits | 498 | 1,234 | ||
Related party receivables: | ||||
Dividends and accounts receivable from subsidiary | 2,114 | 4,636 | ||
Accrued interest receivable - municipals / interest bearing time deposits | 38 | 43 | ||
Securities - municipals | 7,460 | 9,027 | ||
Investment in subsidiaries | 319,371 | 340,733 | ||
Total Assets | 346,382 | 374,966 | ||
Liabilities | ||||
Other borrowings | 10,000 | 40,000 | ||
Subordinated notes, net of unamortized issuance costs | 34,586 | 34,471 | ||
Dividends payable | 2,832 | 2,461 | ||
Accrued interest payable | 618 | 743 | ||
Accrued expenses | 206 | 124 | ||
Total liabilities | 48,242 | 77,799 | ||
Stockholders' Equity | 298,140 | 297,167 | ||
Total Liabilities and Stockholders' Equity | $ 346,382 | $ 374,966 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Statements of Income and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income | |||||||||||
Interest - municipals / interest-bearing time deposits | $ 1,415 | $ 1,170 | $ 1,079 | ||||||||
Loss on sales of available-for-sale securities | 293 | 270 | |||||||||
Total interest income | $ 29,492 | $ 25,847 | $ 23,911 | $ 21,899 | $ 22,423 | $ 20,122 | $ 17,530 | $ 16,765 | 101,149 | 76,840 | 70,169 |
Expenses | |||||||||||
Interest | 6,935 | 3,264 | 2,047 | 2,116 | 2,388 | 1,672 | 1,554 | 1,728 | 14,362 | 7,342 | 10,393 |
Income Before Income Taxes | 8,894 | 11,207 | 10,321 | 10,053 | 9,682 | 7,544 | 6,302 | 5,969 | 40,475 | 29,497 | 25,206 |
Income Taxes (Benefit) | 1,706 | 2,253 | 2,050 | 1,951 | 1,999 | 1,624 | 1,319 | 1,060 | 7,960 | 6,002 | 5,111 |
Net Income | $ 7,188 | $ 8,954 | $ 8,271 | $ 8,102 | $ 7,683 | $ 5,920 | $ 4,983 | $ 4,909 | 32,515 | 23,495 | 20,095 |
Other Comprehensive Income (Loss): | |||||||||||
Comprehensive Income (Loss) | (2,534) | 14,614 | 24,694 | ||||||||
Farmers & Merchants State Bank [Member] | |||||||||||
Income | |||||||||||
Dividends from subsidiaries | 44,285 | 23,200 | 8,800 | ||||||||
Interest - municipals / interest-bearing time deposits | 308 | 253 | 382 | ||||||||
Loss on sales of available-for-sale securities | 293 | ||||||||||
Total interest income | 44,593 | 23,746 | 9,182 | ||||||||
Expenses | |||||||||||
Interest | 1,588 | 743 | |||||||||
Operating expenses | 1,176 | 1,335 | 923 | ||||||||
Total expenses | 2,764 | 2,078 | 923 | ||||||||
Income Before Income Taxes | 41,829 | 21,668 | 8,259 | ||||||||
Income Taxes (Benefit) | (535) | (347) | (184) | ||||||||
Income from operation before equity in undistributed earnings of subsidiary | 42,364 | 22,015 | 8,443 | ||||||||
Equity in undistributed earnings of subsidiaries | (9,849) | 1,480 | 11,652 | ||||||||
Net Income | 32,515 | 23,495 | 20,095 | ||||||||
Other Comprehensive Income (Loss): | |||||||||||
Unrealized gains (losses) on securities, net of taxes | (35,049) | (8,881) | 4,599 | ||||||||
Comprehensive Income (Loss) | $ (2,534) | $ 14,614 | $ 24,694 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | |||
Net income | $ 32,515 | $ 23,495 | $ 20,095 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of premiums on available-for-sale securities, net | 2,090 | 2,203 | 1,289 |
Amortization of subordinated note issuance costs | 115 | 50 | |
Stock-based compensation expense | 899 | 822 | 1,024 |
Director stock awards | 120 | 73 | 48 |
Gain on sales of available-for-sale securities | (293) | (270) | |
Changes in assets and liabilities: | |||
Other assets and liabilities | (5,265) | 3,169 | (573) |
Net cash provided by operating activities | 40,669 | 34,741 | 27,382 |
Activity in available-for-sale securities: | |||
Maturities, prepayments and calls | 31,064 | 56,310 | 91,003 |
Sales | 9,292 | 11,843 | |
Purchases | (38,377) | (170,629) | (183,563) |
Activity in certificates of deposit | |||
Net cash used in investing activities | (389,904) | (265,694) | (177,724) |
Cash Flows from Financing Activities | |||
Proceeds (repayments) of other borrowings | (30,000) | 40,000 | |
Purchase of treasury stock | (308) | (338) | (383) |
Proceeds from issuance of subordinated notes | 34,421 | ||
Payment of dividends | (10,276) | (7,670) | (7,186) |
Net cash provided by financing activities | 252,821 | 236,070 | 274,752 |
Net Increase (Decrease) in Cash and Cash Equivalents | (96,414) | 5,117 | 124,410 |
Cash and Cash Equivalents - Beginning of Year | 180,823 | 175,706 | 51,296 |
Cash and Cash Equivalents - End of Year | 84,409 | 180,823 | 175,706 |
Farmers & Merchants State Bank [Member] | |||
Cash Flows from Operating Activities | |||
Net income | 32,515 | 23,495 | 20,095 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed net income | 9,849 | (1,480) | (11,652) |
Amortization of premiums on available-for-sale securities, net | 61 | 81 | 154 |
Amortization of subordinated note issuance costs | 116 | 49 | |
Stock-based compensation expense | 899 | 822 | 1,024 |
Director stock awards | 120 | 73 | 48 |
Gain on sales of available-for-sale securities | (293) | ||
Changes in assets and liabilities: | |||
Other assets and liabilities | 2,560 | (456) | 1,742 |
Net cash provided by operating activities | 46,120 | 22,291 | 11,411 |
Activity in available-for-sale securities: | |||
Maturities, prepayments and calls | 1,540 | 795 | 385 |
Sales | 7,773 | ||
Purchases | (398) | (745) | |
Activity in certificates of deposit | |||
Maturities | 1,234 | 493 | |
Purchases | (498) | ||
Acquisition, net of cash received | (9,806) | (79,235) | |
Net cash used in investing activities | (7,928) | (70,174) | (360) |
Cash Flows from Financing Activities | |||
Proceeds (repayments) of other borrowings | (30,000) | 35,000 | |
Purchase of treasury stock | (308) | (338) | (383) |
Proceeds from issuance of subordinated notes | 34,421 | ||
Payment of dividends | (10,276) | (7,670) | (7,186) |
Net cash provided by financing activities | (40,584) | 61,413 | (7,569) |
Net Increase (Decrease) in Cash and Cash Equivalents | (2,392) | 13,530 | 3,482 |
Cash and Cash Equivalents - Beginning of Year | 19,293 | 5,763 | 2,281 |
Cash and Cash Equivalents - End of Year | $ 16,901 | $ 19,293 | $ 5,763 |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summary of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of Income: | |||||||||||
Interest income | $ 29,492 | $ 25,847 | $ 23,911 | $ 21,899 | $ 22,423 | $ 20,122 | $ 17,530 | $ 16,765 | $ 101,149 | $ 76,840 | $ 70,169 |
Interest expense | 6,935 | 3,264 | 2,047 | 2,116 | 2,388 | 1,672 | 1,554 | 1,728 | 14,362 | 7,342 | 10,393 |
Net Interest Income Before Provision for Loan Losses | 22,557 | 22,583 | 21,864 | 19,783 | 20,035 | 18,450 | 15,976 | 15,037 | 86,787 | 69,498 | 59,776 |
Provision for loan loss | 755 | 1,637 | 1,628 | 580 | 444 | 659 | 641 | 1,700 | 4,600 | 3,444 | 6,981 |
Net Interest Income After Provision for Loan Losses | 21,802 | 20,946 | 20,236 | 19,203 | 19,591 | 17,791 | 15,335 | 13,337 | 82,187 | 66,054 | 52,795 |
Other income (expense) | (12,908) | (9,739) | (9,915) | (9,150) | (9,909) | (10,247) | (9,033) | (7,368) | |||
Income Before Income Taxes | 8,894 | 11,207 | 10,321 | 10,053 | 9,682 | 7,544 | 6,302 | 5,969 | 40,475 | 29,497 | 25,206 |
Income Taxes | 1,706 | 2,253 | 2,050 | 1,951 | 1,999 | 1,624 | 1,319 | 1,060 | 7,960 | 6,002 | 5,111 |
Net Income | $ 7,188 | $ 8,954 | $ 8,271 | $ 8,102 | $ 7,683 | $ 5,920 | $ 4,983 | $ 4,909 | $ 32,515 | $ 23,495 | $ 20,095 |
Earnings per Common Share, Basic | $ 0.53 | $ 0.68 | $ 0.63 | $ 0.62 | $ 0.59 | $ 0.53 | $ 0.44 | $ 0.44 | $ 2.46 | $ 2.01 | $ 1.80 |
Earnings per Common Share, Diluted | $ 0.53 | $ 0.68 | $ 0.63 | $ 0.62 | $ 0.59 | $ 0.53 | $ 0.44 | $ 0.44 | $ 2.46 | $ 2.01 | $ 1.80 |
Average common shares outstanding | 13,606,876 | 12,983,307 | 12,957,126 | 12,955,107 | 13,046,299 | 11,209,732 | 11,191,043 | 11,197,012 | 13,091,422 | 11,570,218 | 11,061,391 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - shares | Jan. 24, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Subsequent Event [Line Items] | |||
Common stock, shares outstanding | 14,564,425 | 14,063,999 | |
Maximum [Member] | Subsequent Event [Member] | Board of Directors [Member] | |||
Subsequent Event [Line Items] | |||
Common stock, shares outstanding | 650,000 |