Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-16084 | |
Entity Registrant Name | CITIZENS & NORTHERN CORPORATION | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-2451943 | |
Entity Address, Address Line One | 90-92 MAIN STREET | |
Entity Address, City or Town | WELLSBORO | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 16901 | |
City Area Code | 570 | |
Local Phone Number | 724-3411 | |
Title of 12(b) Security | Common Stock Par Value $1.00 | |
Trading Symbol | CZNC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 15,751,005 | |
Entity Central Index Key | 0000810958 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and due from banks: | ||
Noninterest-bearing | $ 26,589 | $ 24,780 |
Interest-bearing | 172,406 | 77,077 |
Total cash and due from banks | 198,995 | 101,857 |
Available-for-sale debt securities, at fair value | 437,857 | 349,332 |
Loans receivable | 1,575,708 | 1,644,209 |
Allowance for loan losses | (12,700) | (11,385) |
Loans, net | 1,563,008 | 1,632,824 |
Bank-owned life insurance | 30,530 | 30,096 |
Accrued interest receivable | 7,307 | 8,293 |
Bank premises and equipment, net | 20,526 | 21,526 |
Foreclosed assets held for sale | 1,374 | 1,338 |
Deferred tax asset, net | 5,128 | 2,705 |
Goodwill | 52,505 | 52,505 |
Core deposit intangibles, net | 3,450 | 3,851 |
Other assets | 34,216 | 34,773 |
TOTAL ASSETS | 2,354,896 | 2,239,100 |
Deposits: | ||
Noninterest-bearing | 521,561 | 465,332 |
Interest-bearing | 1,418,580 | 1,355,137 |
Total deposits | 1,940,141 | 1,820,469 |
Short-term borrowings | 1,875 | 20,022 |
Long-term borrowings - FHLB advances | 38,680 | 54,608 |
Senior notes, net | 14,685 | 0 |
Subordinated debt, net | 32,988 | 16,553 |
Accrued interest and other liabilities | 27,125 | 27,692 |
TOTAL LIABILITIES | 2,055,494 | 1,939,344 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $1,000 par value; authorized 30,000 shares; $1,000 liquidation preference per share; no shares issued | 0 | 0 |
Common stock, par value $1.00 per share; authorized 20,000,000 shares; issued 16,030,172 and outstanding 15,750,250 at September 30, 2021; issued 15,982,815 and outstanding 15,911,984 at December 31, 2020 | 16,030 | 15,983 |
Paid-in capital | 144,172 | 143,644 |
Retained earnings | 139,715 | 129,703 |
Treasury stock, at cost; 279,922 shares at September 30, 2021 and 70,831 shares at December 31, 2020 | (6,920) | (1,369) |
Accumulated other comprehensive income | 6,405 | 11,795 |
TOTAL STOCKHOLDERS' EQUITY | 299,402 | 299,756 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 2,354,896 | $ 2,239,100 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, authorized shares (in shares) | 30,000 | 30,000 |
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 16,030,172 | 15,982,815 |
Common stock, shares outstanding (in shares) | 15,750,250 | 15,911,984 |
Treasury stock, shares (in shares) | 279,922 | 70,831 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest and fees on loans: | ||||
Taxable | $ 18,529 | $ 19,158 | $ 56,095 | $ 47,745 |
Tax-exempt | 450 | 450 | 1,300 | 1,348 |
Income from available-for-sale debt securities: | ||||
Taxable | 1,304 | 1,483 | 3,604 | 4,451 |
Tax-exempt | 668 | 561 | 1,973 | 1,505 |
Other interest and dividend income | 122 | 99 | 283 | 252 |
Total interest and dividend income | 21,073 | 21,751 | 63,255 | 55,301 |
INTEREST EXPENSE | ||||
Interest on deposits | 1,063 | 1,787 | 3,558 | 5,726 |
Interest on short-term borrowings | 0 | 73 | 22 | 335 |
Interest on long-term borrowings - FHLB advances | 87 | 362 | 330 | 970 |
Interest on senior notes, net | 118 | 0 | 175 | 0 |
Interest on subordinated debt, net | 346 | 247 | 947 | 460 |
Total interest expense | 1,614 | 2,469 | 5,032 | 7,491 |
Net interest income | 19,459 | 19,282 | 58,223 | 47,810 |
Provision for loan losses | 1,530 | 1,941 | 2,533 | 3,293 |
Net interest income after provision for loan losses | 17,929 | 17,341 | 55,690 | 44,517 |
NONINTEREST INCOME | ||||
Brokerage and insurance revenue | 560 | 382 | 1,392 | 1,121 |
Net gains from sale of loans | 797 | 2,052 | 2,786 | 3,931 |
Increase in cash surrender value of life insurance | 139 | 159 | 434 | 361 |
Other noninterest income | 665 | 996 | 2,837 | 2,583 |
Sub-total | 6,359 | 6,970 | 19,441 | 17,779 |
Realized gains on available-for-sale debt securities, net | 23 | 25 | 25 | 25 |
Total noninterest income | 6,382 | 6,995 | 19,466 | 17,804 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 9,427 | 8,703 | 27,821 | 23,064 |
Net occupancy and equipment expense | 1,217 | 1,189 | 3,740 | 3,267 |
Data processing and telecommunications expense | 1,475 | 1,482 | 4,342 | 3,959 |
Automated teller machine and interchange expense | 357 | 340 | 1,049 | 912 |
Pennsylvania shares tax | 482 | 422 | 1,463 | 1,267 |
Professional fees | 538 | 422 | 1,683 | 1,265 |
Merger-related expenses | 0 | 6,402 | 0 | 7,526 |
Other noninterest expense | 1,850 | 2,090 | 6,356 | 6,100 |
Total noninterest expense | 15,346 | 21,050 | 46,454 | 47,360 |
Income before income tax provision | 8,965 | 3,286 | 28,702 | 14,961 |
Income tax provision | 1,566 | 438 | 5,456 | 2,509 |
NET INCOME | $ 7,399 | $ 2,848 | $ 23,246 | $ 12,452 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $ 0.47 | $ 0.18 | $ 1.46 | $ 0.86 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | $ 0.47 | $ 0.18 | $ 1.46 | $ 0.86 |
Trust revenue | ||||
NONINTEREST INCOME | ||||
Revenue | $ 1,821 | $ 1,595 | $ 5,254 | $ 4,639 |
Service charges on deposit accounts | ||||
NONINTEREST INCOME | ||||
Revenue | 1,249 | 1,045 | 3,337 | 3,126 |
Interchange revenue from debit card transactions | ||||
NONINTEREST INCOME | ||||
Revenue | 975 | 828 | 2,854 | 2,277 |
Loan servicing fees, net | ||||
NONINTEREST INCOME | ||||
Revenue | $ 153 | $ (87) | $ 547 | $ (259) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 7,399 | $ 2,848 | $ 23,246 | $ 12,452 |
Unrealized holding (losses) gains on available-for-sale debt securities | (3,608) | (95) | (6,781) | 9,980 |
Reclassification adjustment for (gains) realized in income | (23) | (25) | (25) | (25) |
Other comprehensive (loss) income on available-for-sale debt securities | (3,631) | (120) | (6,806) | 9,955 |
Changes from plan amendments and actuarial gains and losses | 0 | 0 | (5) | 88 |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost | (5) | (8) | (13) | (22) |
Other comprehensive (loss) income on unfunded retirement obligations | (5) | (8) | (18) | 66 |
Other comprehensive (loss) income before income tax | (3,636) | (128) | (6,824) | 10,021 |
Income tax related to other comprehensive loss (income) | 765 | 26 | 1,434 | (2,103) |
Net other comprehensive (loss) income | (2,871) | (102) | (5,390) | 7,918 |
Comprehensive income | $ 4,528 | $ 2,746 | $ 17,856 | $ 20,370 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 23,246 | $ 12,452 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 2,533 | 3,293 |
Realized gains on available-for-sale debt securities, net | (25) | (25) |
Net amortization of securities | 1,554 | 1,020 |
Increase in cash surrender value of life insurance | (434) | (361) |
Depreciation and amortization of bank premises and equipment | 1,602 | 1,429 |
Net accretion of purchase accounting adjustments | (1,827) | (1,547) |
Stock-based compensation | 970 | 672 |
Deferred income taxes | (989) | 649 |
Decrease in fair value of servicing rights | 9 | 617 |
Gains on sales of loans, net | (2,786) | (3,931) |
Origination of loans held for sale | (86,428) | (123,547) |
Proceeds from sales of loans held for sale | 87,483 | 126,268 |
Decrease (increase) in accrued interest receivable and other assets | 295 | (1,194) |
Decrease in accrued interest payable and other liabilities | (50) | (856) |
Other | (18) | (339) |
Net Cash Provided by Operating Activities | 25,135 | 14,600 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash and cash equivalents provided by business combination | 0 | 75,955 |
Purchase of certificates of deposit | (3,000) | (2,500) |
Proceeds from maturities of certificates of deposit | 0 | 250 |
Proceeds from sales of available-for-sale debt securities | 2,027 | 20,535 |
Proceeds from calls and maturities of available-for-sale debt securities | 48,262 | 71,009 |
Purchase of available-for-sale debt securities | (145,445) | (65,853) |
Redemption of Federal Home Loan Bank of Pittsburgh stock | 1,934 | 5,712 |
Purchase of Federal Home Loan Bank of Pittsburgh stock | (1,614) | (4,571) |
Net decrease (increase) in loans | 68,018 | (45,564) |
Proceeds from bank owned life insurance | 287 | 0 |
Proceeds from sales of premises and equipment | 575 | 0 |
Purchase of premises and equipment | (1,173) | (2,550) |
Proceeds from sale of foreclosed assets | 303 | 1,347 |
Other | 176 | 178 |
Net Cash (Used in) Provided by Investing Activities | (29,650) | 53,948 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 120,386 | 137,543 |
Net decrease in short-term borrowings | (18,082) | (79,213) |
Proceeds from long-term borrowings - FHLB advances | 0 | 25,891 |
Repayments of long-term borrowings - FHLB advances | (15,571) | (5,136) |
Proceeds from issuance of senior notes, net of issuance costs | 14,663 | 0 |
Proceeds from issuance of subordinated debt, net of issuance costs | 24,437 | 0 |
Redemption of subordinated debt | (8,000) | 0 |
Sale of treasury stock | 212 | 124 |
Purchases of treasury stock | (7,412) | (163) |
Common dividends paid | (11,980) | (10,568) |
Net Cash Provided by Financing Activities | 98,653 | 68,478 |
INCREASE IN CASH AND CASH EQUIVALENTS | 94,138 | 137,026 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 96,017 | 31,122 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 190,155 | $ 168,148 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Increase in accrued purchase of available-for-sale debt securities | $ 1,704 | $ 287 |
Accrued sale of available-for-sale securities | 0 | 488 |
Accrued income from life insurance claim | 0 | 279 |
Assets acquired through foreclosure of real estate loans | 317 | 0 |
Leased assets obtained in exchange for new operating lease liabilities | 739 | 167 |
Interest paid | 6,063 | 7,635 |
Income taxes paid | 8,076 | 2,975 |
NONCASH INVESTING ASSETS ACQUIRED IN BUSINESS COMBINATION: | ||
Available-for-sale debt securities | 0 | 10,754 |
Loans receivable | 0 | 464,236 |
Bank-owned life insurance | 0 | 11,170 |
Foreclosed assets held for sale | 0 | 860 |
NONCASH FINANCING ACTIVITY RELATED TO BUSINESS COMBINATION: | ||
Common stock issued | 0 | 41,429 |
Liabilities assumed: | ||
Deposits | 0 | 481,796 |
Short-term borrowings | 0 | 33,950 |
Long-term borrowings | 0 | 30,025 |
Subordinated debt | $ 0 | $ 10,091 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Treasury Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance (in shares) at Dec. 31, 2019 | 13,934,996 | 218,551 | ||||
Balance at Dec. 31, 2019 | $ 13,935 | $ (4,173) | $ 104,519 | $ 126,480 | $ 3,691 | $ 244,452 |
Net income | 12,452 | 12,452 | ||||
Other comprehensive income (loss), net | 7,918 | 7,918 | ||||
Cash dividends declared on common stock | (11,708) | (11,708) | ||||
Shares issued for dividend reinvestment plan (in shares) | (56,649) | |||||
Shares issued for dividend reinvestment plan | $ 1,094 | 46 | 1,140 | |||
Shares issued from treasury and redeemed related to exercise of stock options (in shares) | (9,652) | |||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 186 | (62) | 124 | |||
Restricted stock granted (in shares) | (70,940) | |||||
Restricted stock granted | $ 1,370 | (1,370) | 0 | |||
Forfeiture of restricted stock (in shares) | 5,290 | |||||
Forfeiture of restricted stock | $ (100) | 100 | 0 | |||
Stock-based compensation expense | 672 | 672 | ||||
Purchase of restricted stock for tax withholding (in shares) | 5,862 | |||||
Purchase of restricted stock for tax withholding | $ (163) | (163) | ||||
Shares issued for acquisition of Covenant Financial, Inc., net of equity issuance costs (in shares) | 2,047,819 | |||||
Shares issued for acquisition of Covenant Financial, Inc., net of equity issuance costs | $ 2,048 | 39,381 | 41,429 | |||
Balance (in shares) at Sep. 30, 2020 | 15,982,815 | 92,462 | ||||
Balance at Sep. 30, 2020 | $ 15,983 | $ (1,786) | 143,286 | 127,224 | 11,609 | 296,316 |
Balance (in shares) at Jun. 30, 2020 | 13,934,996 | 127,839 | ||||
Balance at Jun. 30, 2020 | $ 13,935 | $ (2,470) | 103,954 | 128,661 | 11,711 | 255,791 |
Net income | 2,848 | 2,848 | ||||
Other comprehensive income (loss), net | (102) | (102) | ||||
Cash dividends declared on common stock | (4,285) | (4,285) | ||||
Shares issued for dividend reinvestment plan (in shares) | (21,949) | |||||
Shares issued for dividend reinvestment plan | $ 423 | (36) | 387 | |||
Restricted stock granted (in shares) | (15,076) | |||||
Restricted stock granted | $ 291 | (291) | 0 | |||
Forfeiture of restricted stock (in shares) | 1,648 | |||||
Forfeiture of restricted stock | $ (30) | 30 | 0 | |||
Stock-based compensation expense | 248 | 248 | ||||
Shares issued for acquisition of Covenant Financial, Inc., net of equity issuance costs (in shares) | 2,047,819 | |||||
Shares issued for acquisition of Covenant Financial, Inc., net of equity issuance costs | $ 2,048 | 39,381 | 41,429 | |||
Balance (in shares) at Sep. 30, 2020 | 15,982,815 | 92,462 | ||||
Balance at Sep. 30, 2020 | $ 15,983 | $ (1,786) | 143,286 | 127,224 | 11,609 | 296,316 |
Balance (in shares) at Dec. 31, 2020 | 15,982,815 | 70,831 | ||||
Balance at Dec. 31, 2020 | $ 15,983 | $ (1,369) | 143,644 | 129,703 | 11,795 | 299,756 |
Net income | 23,246 | 23,246 | ||||
Other comprehensive income (loss), net | (5,390) | (5,390) | ||||
Cash dividends declared on common stock | (13,234) | (13,234) | ||||
Shares issued for dividend reinvestment plan (in shares) | 36,368 | (16,833) | ||||
Shares issued for dividend reinvestment plan | $ 36 | $ 415 | 803 | 1,254 | ||
Shares issued from treasury and redeemed related to exercise of stock options (in shares) | (12,414) | |||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 240 | (28) | 212 | |||
Restricted stock granted (in shares) | 10,989 | (67,402) | ||||
Restricted stock granted | $ 11 | $ 1,308 | (1,319) | 0 | ||
Forfeiture of restricted stock (in shares) | 5,290 | |||||
Forfeiture of restricted stock | $ (102) | 102 | 0 | |||
Stock-based compensation expense | 970 | 970 | ||||
Purchase of restricted stock for tax withholding (in shares) | 8,350 | |||||
Purchase of restricted stock for tax withholding | $ (174) | (174) | ||||
Treasury stock purchased (in shares) | 292,100 | |||||
Treasury stock purchased | $ (7,238) | (7,238) | ||||
Balance (in shares) at Sep. 30, 2021 | 16,030,172 | 279,922 | ||||
Balance at Sep. 30, 2021 | $ 16,030 | $ (6,920) | 144,172 | 139,715 | 6,405 | 299,402 |
Balance (in shares) at Jun. 30, 2021 | 16,030,172 | 72,660 | ||||
Balance at Jun. 30, 2021 | $ 16,030 | $ (1,746) | 143,817 | 136,756 | 9,276 | 304,133 |
Net income | 7,399 | 7,399 | ||||
Other comprehensive income (loss), net | (2,871) | (2,871) | ||||
Cash dividends declared on common stock | (4,440) | (4,440) | ||||
Shares issued for dividend reinvestment plan (in shares) | (16,833) | |||||
Shares issued for dividend reinvestment plan | $ 415 | 10 | 425 | |||
Shares issued from treasury and redeemed related to exercise of stock options (in shares) | (7,000) | |||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 135 | 135 | ||||
Stock-based compensation expense | 345 | 345 | ||||
Purchase of restricted stock for tax withholding (in shares) | 691 | |||||
Purchase of restricted stock for tax withholding | $ (17) | (17) | ||||
Treasury stock purchased (in shares) | 230,404 | |||||
Treasury stock purchased | $ (5,707) | (5,707) | ||||
Balance (in shares) at Sep. 30, 2021 | 16,030,172 | 279,922 | ||||
Balance at Sep. 30, 2021 | $ 16,030 | $ (6,920) | $ 144,172 | $ 139,715 | $ 6,405 | $ 299,402 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Retained Earnings | ||||
Common stock, dividends, per share (in dollars per share) | $ 0.28 | $ 0.27 | $ 0.83 | $ 0.81 |
BASIS OF INTERIM PRESENTATION A
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | |
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | 1. BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS The consolidated financial statements include the accounts of Citizens & Northern Corporation and its subsidiaries, Citizens & Northern Bank (“C&N Bank”), Bucktail Life Insurance Company and Citizens & Northern Investment Corporation (collectively, “Corporation”). The consolidated financial statements also include C&N Bank’s wholly-owned subsidiaries, C&N Financial Services Corporation and Northern Tier Holding LLC. C&N Bank is the sole member of Northern Tier Holding LLC. All material intercompany balances and transactions have been eliminated in consolidation. The consolidated financial information included herein, except the consolidated balance sheet dated December 31, 2020, is unaudited. Such information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows and changes in stockholders’ equity for the interim periods; however, the information does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for a complete set of financial statements. Certain 2020 information has been reclassified for consistency with the 2021 presentation. Operating results reported for the nine-month period ended September 30, 2021 might not be indicative of the results for the year ending December 31, 2021. The Corporation evaluates subsequent events through the date of filing with the Securities and Exchange Commission. RECENT ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board (FASB) issues Accounting Standards Updates (ASUs) to the FASB Accounting Standards Codification (ASC). This section provides a summary description of recent ASUs that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the near future. Recently Issued But Not Yet Effective Accounting Pronouncements ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), as modified by subsequent ASUs, changes accounting for credit losses on loans receivable and debt securities from an incurred loss methodology to an expected credit loss methodology. Among other things, ASU 2016-13 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. Accordingly, ASU 2016-13 requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, though the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on debt securities and purchased financial assets with credit deterioration. The effect of implementing this ASU is recorded through a cumulative-effect adjustment to retained earnings. The Corporation has formed a cross functional management team and is working with an outside vendor assessing alternative loss estimation methodologies and the Corporation’s data and system needs to evaluate the impact that adoption of this standard will have on the Corporation’s financial condition and results of operations. In November 2019, the FASB approved a delay of the required implementation date of ASU 2016-13 for smaller reporting companies, including the Corporation, resulting in a required implementation date for the Corporation of January 1, 2023. ASU 2020-04, Reference Rate Reform (Topic 848) provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The guidance includes a general principle that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. Some specific optional expedients are as follows: ● Simplifies accounting for contract modifications, including modifications to loans receivable and debt, by prospectively adjusting the effective interest rate. ● Simplifies the assessment of hedge effectiveness and allows hedging relationships affected by reference rate reform to continue. The amendments in ASU 2020-04 are effective as of March 12, 2020 through December 31, 2022. The Corporation has formed a cross functional management team to evaluate and implement changes to contracts with rates indexed to LIBOR and expects to apply the amendments prospectively for applicable loan and other contracts within the effective period of ASU 2020-04. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2021 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | 2. BUSINESS COMBINATIONS Acquisition of Covenant Financial, Inc. On July 1, 2020, the Corporation completed its acquisition of Covenant Financial, Inc. (“Covenant”). Covenant was the holding company for Covenant Bank, which operated banking offices in Bucks and Chester Counties of Pennsylvania. The Covenant acquisition has contributed significantly to growth in the size of the Corporation’s balance sheet and in net interest income and noninterest expenses. In connection with the transaction, the Corporation recorded goodwill of $24.1 million and a core deposit intangible asset of $3.1 million. Total loans acquired on July 1, 2020 were valued at $464.2 million, while total deposits assumed were valued at $481.8 million, borrowings were valued at $64.0 million and subordinated debt was valued at $10.1 million. The Corporation acquired available-for-sale debt securities valued at $10.8 million and bank-owned life insurance valued at $11.2 million. The assets purchased and liabilities assumed in the merger were recorded at their estimated fair values at the time of closing, subject to refinement for up to one year after the closing date. There were no adjustments to the fair value measurements of assets acquired or liabilities assumed in the nine months ended September 30, 2021. Merger-related expenses related to the acquisition of Covenant totaled $6,402,000 in the third quarter 2020 and $7,526,000 in the nine months ended September 30, 2020. There were no merger-related expenses in the nine months ended September 30, 2021. |
PER SHARE DATA
PER SHARE DATA | 9 Months Ended |
Sep. 30, 2021 | |
PER SHARE DATA | |
PER SHARE DATA | 3. PER SHARE DATA Basic earnings per common share are calculated using the two-class method to determine income attributable to common shareholders. Unvested restricted stock awards that contain nonforfeitable rights to dividends are considered participating securities under the two-class method. Distributed dividends and an allocation of undistributed net income to participating securities reduce the amount of income attributable to common shareholders. Income attributable to common shareholders is then divided by weighted-average common shares outstanding for the period to determine basic earnings per common share. Diluted earnings per common share are calculated under the more dilutive of either the treasury method or the two-class method. Diluted earnings per common share is computed using weighted-average common shares outstanding, plus weighted-average common shares available from the exercise of all dilutive stock options, less the number of shares that could be repurchased with the proceeds of stock option exercises based on the average share price of the Corporation’s common stock during the period. (In Thousands, Except Share and Per Share Data) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Basic Net income $ 7,399 $ 2,848 $ 23,246 $ 12,452 Less: Dividends and undistributed earnings allocated to participating securities (63) (18) (189) (74) Net income attributable to common shares $ 7,336 $ 2,830 $ 23,057 $ 12,378 Basic weighted-average common shares outstanding 15,703,932 15,778,391 15,806,897 14,388,797 Basic earnings per common share (a) $ 0.47 $ 0.18 $ 1.46 $ 0.86 Diluted Net income attributable to common shares $ 7,336 $ 2,830 $ 23,057 $ 12,378 Basic weighted-average common shares outstanding 15,703,932 15,778,391 15,806,897 14,388,797 Dilutive effect of potential common stock arising from stock options 6,413 1,330 6,232 4,632 Diluted weighted-average common shares outstanding 15,710,345 15,779,721 15,813,129 14,393,429 Diluted earnings per common share (a) $ 0.47 $ 0.18 $ 1.46 $ 0.86 Weighted-average nonvested restricted shares outstanding 133,053 102,629 129,456 85,611 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the consolidated statements of income, less earnings allocated to non-vested restricted shares with nonforfeitable dividends (participating securities). Anti-dilutive stock options are excluded from earnings per share calculations. There were no anti-dilutive instruments in the three-month and nine month periods ended September 30, 2021. Weighted-average common shares available from anti-dilutive instruments totaled 39,012 shares in the three-month period ended September 30, 2020 and 19,506 shares in the nine-month period ended September 30, 2020. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2021 | |
COMPREHENSIVE INCOME | |
COMPREHENSIVE INCOME | 4. COMPREHENSIVE INCOME Comprehensive income is the total of (1) net income, and (2) all other changes in equity from non-stockholder sources, which are referred to as other comprehensive income (loss). The components of other comprehensive income (loss), and the related tax effects, are as follows: (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended September 30, 2021 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (3,608) $ 759 $ (2,849) Reclassification adjustment for (gains) realized in income (23) 5 (18) Other comprehensive loss from available-for-sale debt securities (3,631) 764 (2,867) Unfunded pension and postretirement obligations, Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (5) 1 (4) Total other comprehensive loss $ (3,636) $ 765 $ (2,871) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended September 30, 2020 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (95) $ 19 $ (76) Reclassification adjustment for (gains) realized in income (25) 5 (20) Other comprehensive loss from available-for-sale debt securities (120) 24 (96) Unfunded pension and postretirement obligations, Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (8) 2 (6) Total other comprehensive loss $ (128) $ 26 $ (102) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Nine Months Ended September 30, 2021 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (6,781) $ 1,425 $ (5,356) Reclassification adjustment for (gains) realized in income (25) 5 (20) Other comprehensive loss from available-for-sale debt securities (6,806) 1,430 (5,376) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses (5) 1 (4) Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (13) 3 (10) Other comprehensive loss on unfunded retirement obligations (18) 4 (14) Total other comprehensive loss $ (6,824) $ 1,434 $ (5,390) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Nine Months Ended September 30, 2020 Available-for-sale debt securities: Unrealized holding gains on available-for-sale debt securities $ 9,980 $ (2,095) $ 7,885 Reclassification adjustment for (gains) realized in income (25) 5 (20) Other comprehensive income from available-for-sale debt securities 9,955 (2,090) 7,865 Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 88 (18) 70 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (22) 5 (17) Other comprehensive income on unfunded retirement obligations 66 (13) 53 Total other comprehensive income $ 10,021 $ (2,103) $ 7,918 The amounts shown in the table immediately above are included in the following line items in the consolidated statements of income: Affected Line Item in the Description Consolidated Statements of Income Reclassification adjustment for (gains) realized in income (before-tax) Realized gains on available-for-sale debt securities, net Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (before-tax) Other noninterest expense Income tax effect Income tax provision Changes in the components of accumulated other comprehensive income are as follows and are presented net of tax: (In Thousands) Accumulated Unrealized Unfunded Other Losses Retirement Comprehensive on Securities Obligations Income Three Months Ended September 30, 2021 Balance, beginning of period $ 9,167 $ 109 $ 9,276 Other comprehensive loss during three months ended September 30, 2021 (2,867) (4) (2,871) Balance, end of period $ 6,300 $ 105 $ 6,405 Three Months Ended September 30, 2020 Balance, beginning of period $ 11,472 $ 239 $ 11,711 Other comprehensive loss during three months ended September 30, 2020 (96) (6) (102) Balance, end of period $ 11,376 $ 233 $ 11,609 (In Thousands) Unrealized Accumulated Gains Unfunded Other (Losses) Retirement Comprehensive on Securities Obligations Income Nine Months Ended September 30, 2021 Balance, beginning of period $ 11,676 $ 119 $ 11,795 Other comprehensive loss during nine months ended September 30, 2021 (5,376) (14) (5,390) Balance, end of period $ 6,300 $ 105 $ 6,405 Nine Months Ended September 30, 2020 Balance, beginning of period $ 3,511 $ 180 $ 3,691 Other comprehensive income during nine months ended September 30, 2020 7,865 53 7,918 Balance, end of period $ 11,376 $ 233 $ 11,609 |
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS | 9 Months Ended |
Sep. 30, 2021 | |
CASH AND DUE FROM BANKS | |
CASH AND DUE FROM BANKS | 5. CASH AND DUE FROM BANKS Cash and due from banks at September 30, 2021 and December 31, 2020 include the following: (In Thousands) September 30, December 31, 2021 2020 Cash and cash equivalents $ 190,155 $ 96,017 Certificates of deposit 8,840 5,840 Total cash and due from banks $ 198,995 $ 101,857 Certificates of deposit are issues by U.S. banks with original maturities greater than three months. Each certificate of deposit is fully FDIC-insured. The Corporation maintains cash and cash equivalents with certain financial institutions in excess of the FDIC insurance limit. Historically, C&N Bank has been required to maintain reserves against deposit liabilities in the form of cash and balances with the Federal Reserve Bank of Philadelphia. The reserves are based on deposit levels, account activity, and other services provided by the Federal Reserve Bank. In March 2020, the Federal Reserve Board reduced reserve requirements for U.S. banks to 0%. Accordingly, C&N Bank had no required reserves at September 30, 2021 and December 31, 2020. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
SECURITIES | |
SECURITIES | 6. SECURITIES Amortized cost and fair value of available-for-sale debt securities at September 30, 2021 and December 31, 2020 are summarized as follows: (In Thousands) September 30, 2021 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 25,088 $ 60 $ (80) $ 25,068 Obligations of U.S. Government agencies 23,935 666 (289) 24,312 Obligations of states and political subdivisions: Tax-exempt 135,362 4,390 (508) 139,244 Taxable 69,426 1,516 (449) 70,493 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 59,920 978 (269) 60,629 Residential collateralized mortgage obligations 43,811 820 (38) 44,593 Commercial mortgage-backed securities 72,341 1,963 (786) 73,518 Total available-for-sale debt securities $ 429,883 $ 10,393 $ (2,419) $ 437,857 (In Thousands) December 31, 2020 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 12,184 $ 0 $ (2) $ 12,182 Obligations of U.S. Government agencies 25,349 1,003 (8) 26,344 Obligations of states and political subdivisions: Tax-exempt 116,427 6,000 (26) 122,401 Taxable 45,230 2,246 (24) 47,452 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 36,853 1,323 0 38,176 Residential collateralized mortgage obligations 56,048 1,428 (9) 57,467 Commercial mortgage-backed securities 42,461 2,849 0 45,310 Total available-for-sale debt securities $ 334,552 $ 14,849 $ (69) $ 349,332 The following table presents gross unrealized losses and fair value of available-for-sale debt securities with unrealized loss positions that are not deemed to be other-than-temporarily impaired, aggregated by length of time that individual securities have been in a continuous unrealized loss position at September 30, 2021 and December 31, 2020: September 30, 2021 Less Than 12 Months 12 Months or More Total (In Thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Obligations of the U.S. Treasury $ 11,001 $ (80) $ 0 $ 0 $ 11,001 $ (80) Obligations of U.S. Government agencies 12,210 (289) 0 0 12,210 (289) Obligations of states and political subdivisions: Tax-exempt 41,145 (508) 0 0 41,145 (508) Taxable 25,561 (365) 2,200 (84) 27,761 (449) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 36,651 (269) 0 0 36,651 (269) Residential collateralized mortgage obligations 4,745 (38) 0 0 4,745 (38) Commercial mortgage-backed securities 34,931 (786) 0 0 34,931 (786) Total temporarily impaired available-for-sale debt securities $ 166,244 $ (2,335) $ 2,200 $ (84) $ 168,444 $ (2,419) December 31, 2020 Less Than 12 Months 12 Months or More Total (In Thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Obligations of the U.S. Treasury $ 9,159 $ (2) $ 0 $ 0 $ 9,159 $ (2) Obligations of U.S. Government agencies 4,992 (8) 0 0 4,992 (8) Obligations of states and political subdivisions: Tax-exempt 3,811 (26) 0 0 3,811 (26) Taxable 5,235 (24) 0 0 5,235 (24) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, Residential collateralized mortgage obligations 2,861 (9) 0 0 2,861 (9) Total temporarily impaired available-for-sale debt securities $ 26,058 $ (69) $ 0 $ 0 $ 26,058 $ (69) Gross realized gains and losses from available-for-sale debt securities were as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Gross realized gains from sales $ 23 $ 26 $ 27 $ 78 Gross realized losses from sales 0 (1) (2) (53) Net realized gains $ 23 $ 25 $ 25 $ 25 The amortized cost and fair value of available-for-sale debt securities by contractual maturity are shown in the following table as of September 30, 2021. Actual maturities may differ from contractual maturities because counterparties may have the right to call or prepay obligations with or without call or prepayment penalties. (In Thousands) September 30, 2021 Amortized Fair Cost Value Due in one year or less $ 15,531 $ 15,641 Due from one year through five years 51,151 52,150 Due from five years through ten years 65,651 67,498 Due after ten years 121,478 123,828 Sub-total 253,811 259,117 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 59,920 60,629 Residential collateralized mortgage obligations 43,811 44,593 Commercial mortgage-backed securities 72,341 73,518 Total $ 429,883 $ 437,857 The Corporation’s mortgage-backed securities and collateralized mortgage obligations have stated maturities that may differ from actual maturities due to borrowers’ ability to prepay obligations. Cash flows from such investments are dependent upon the performance of the underlying mortgage loans and are generally influenced by the level of interest rates. In the table above, mortgage-backed securities and collateralized mortgage obligations are shown in one period. Investment securities carried at $254,062,000 at September 30, 2021 and $247,373,000 at December 31, 2020 were pledged as collateral for public deposits, trusts and certain other deposits as provided by law. See Note 9 for information concerning securities pledged to secure borrowing arrangements and Note 12 for information related to securities pledged against interest rate swap obligations. Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to (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) whether the Corporation intends to sell the security or more likely than not will be required to sell the security before its anticipated recovery. A summary of information management considered in evaluating debt and equity securities for OTTI at September 30, 2021 is provided below. Debt Securities At September 30, 2021 and December 31, 2020, management performed an assessment for possible OTTI of the Corporation’s debt securities on an issue-by-issue basis, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. The extent of individual analysis applied to each security depended on the size of the Corporation’s investment, as well as management’s perception of the credit risk associated with each security. Based on the results of the assessment, management believes impairment of debt securities at September 30, 2021 and December 31, 2020 to be temporary. Equity Securities C&N Bank is a member of the Federal Home Loan Bank of Pittsburgh (FHLB-Pittsburgh), which is one of 11 regional Federal Home Loan Banks. As a member, C&N Bank is required to purchase and maintain stock in FHLB-Pittsburgh. There is no active market for FHLB-Pittsburgh stock, and it must ordinarily be redeemed by FHLB-Pittsburgh in order to be liquidated. C&N Bank’s investment in FHLB-Pittsburgh stock, included in Other Assets in the consolidated balance sheets, was $9,400,000 at September 30, 2021 and $9,720,000 at December 31, 2020. The Corporation evaluated its holding of FHLB-Pittsburgh stock for impairment and deemed the stock to not be impaired at September 30, 2021 and December 31, 2020. In making this determination, management concluded that recovery of total outstanding par value, which equals the carrying value, is expected. The decision was based on review of financial information that FHLB-Pittsburgh has made publicly available. The Corporation has a marketable equity security included in other assets in the consolidated balance sheets with a carrying value of $981,000 at September 30, 2021 and $1,000,000 at December 31, 2020, consisting exclusively of one mutual fund. There was an unrealized loss on the mutual fund of $19,000 at September 30, 2021 and no unrealized gain or loss on the mutual fund at December 31, 2020. Changes in the unrealized gains or losses on this security are included in other noninterest income in the consolidated statements of income. |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2021 | |
LOANS | |
LOANS | 7. LOANS The loans receivable portfolio is segmented into commercial, residential mortgage and consumer loans. Loans outstanding at September 30, 2021 and December 31, 2020 are summarized by segment, and by classes within each segment, as follows: Summary of Loans by Type (In Thousands) September 30, December 31, 2021 2020 Commercial: Commercial loans secured by real estate $ 553,389 $ 531,810 Commercial and industrial 152,244 159,577 Paycheck Protection Program - 1st Draw 5,747 132,269 Paycheck Protection Program - 2nd Draw 56,981 0 Political subdivisions 73,503 53,221 Commercial construction and land 53,267 42,874 Loans secured by farmland 10,812 11,736 Multi-family (5 or more) residential 52,962 55,811 Agricultural loans 3,092 3,164 Other commercial loans 17,312 17,289 Total commercial 979,309 1,007,751 Residential mortgage: Residential mortgage loans - first liens 494,376 532,947 Residential mortgage loans - junior liens 24,303 27,311 Home equity lines of credit 38,465 39,301 1-4 Family residential construction 21,719 20,613 Total residential mortgage 578,863 620,172 Consumer 17,536 16,286 Total 1,575,708 1,644,209 Less: allowance for loan losses (12,700) (11,385) Loans, net $ 1,563,008 $ 1,632,824 In the table above, outstanding loan balances are presented net of deferred loan origination fees, net, of $5,719,000 at September 30, 2021 and $6,286,000 at December 31, 2020. The Corporation grants loans to individuals as well as commercial and tax-exempt entities. Commercial, residential and personal loans are made to customers geographically concentrated in northcentral Pennsylvania, the southern tier of New York State, southeastern Pennsylvania and southcentral Pennsylvania. Although the Corporation has a diversified loan portfolio, a significant portion of its debtors’ ability to honor their contracts is dependent on the local economic conditions within the region. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act is a $2 trillion stimulus package designed to provide relief to U.S. businesses and consumers struggling as a result of the pandemic. A provision in the CARES Act includes creation of the Paycheck Protection Program (“PPP”) through the Small Business Administration (“SBA”) and Treasury Department. Under the PPP, the Corporation, as an SBA-certified lender, provides SBA-guaranteed loans to small businesses to pay their employees, rent, mortgage interest, and utilities. PPP loans will be forgiven subject to clients’ providing documentation evidencing their compliant use of funds and otherwise complying with the terms of the program. Information related to PPP loans advanced pursuant to the CARES Act are labeled “1st Draw” within the tables. Section 4013 of the CARES Act provides that, from the period beginning March 1, 2020 until 60 days after the date on which the national emergency concerning the coronavirus (COVID-19) pandemic declared by the President of the United States under the National Emergencies Act terminates (the “applicable period”), the Corporation may elect to suspend U.S. GAAP for loan modifications related to the pandemic that would otherwise be categorized as troubled debt restructurings (TDRs) and suspend any determination of a loan modified as a result of the effects of the pandemic as being a TDR, including impairment for accounting purposes. The suspension is applicable for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. The suspension is not applicable to any adverse impact on the credit of a borrower that is not related to the pandemic. In addition, the banking regulators and other financial regulators, on March 22, 2020 and revised April 7, 2020, issued a joint interagency statement titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of the COVID-19 pandemic. Pursuant to the interagency statement, loan modifications that do not meet the conditions of Section 4013 of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. Specifically, the agencies confirmed with the FASB staff that short-term modifications made in good faith in response to the pandemic to borrowers who were current prior to any relief are not TDRs under U.S. GAAP. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. Appropriate allowances for loan and lease losses are expected to be maintained. With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to the pandemic as past due because of the deferral. The interagency statement also states that during short-term pandemic-related loan modifications, these loans generally should not be reported as nonaccrual. On December 27, 2020, the President of the United States signed into law the Consolidated Appropriations Act, 2021 (the “CAA”), which includes provisions that broadly address additional COVID-19 responses and relief. Among the additional relief measures included are certain extensions to elements of the CARES Act, including extension of temporary relief from troubled debt restructurings established under Section 4013 of the CARES Act to the earlier of a) January 1, 2022, or b) the date that is 60 days after the date on which the national COVID-19 emergency terminates. The CAA also includes additional funding for the PPP with additional eligibility requirements for borrowers with generally the same loan terms as provided under the CARES Act. Information related to PPP loans advanced pursuant to the CAA are labeled “2nd Draw” within the tables. The maximum term of PPP loans is five years. Most of the Corporation’s 1st Draw PPP loans have two-year terms, while 2nd Draw PPP loans have five-year terms and the Corporation will be repaid sooner to the extent the loans are forgiven. The interest rate on PPP loans is 1%, and the Corporation has received fees from the SBA ranging between 1% and 5% per loan, depending on the size of the loan. Fees on PPP loans, net of origination costs and a market rate adjustment on PPP loans acquired from Covenant, are recognized in interest income as a yield adjustment over the term of the loans. The Corporation began accepting and processing applications for loans under the PPP on April 3, 2020. Covenant also engaged in PPP lending starting in early April 2020. As of September 30, 2021, the recorded investment in 1st Draw PPP loans was $5,747,000, including contractual principal balances of $5,982,000, increased by a market rate adjustment on PPP loans acquired from Covenant of $2,000 and reduced by net deferred origination fees of $237,000. The recorded investment in 2nd Draw PPP loans was $56,981,000, including contractual principal balances of $59,190,000 reduced by net deferred origination fees of $2,208,000. Accretion of fees received on PPP loans, net of amortization of the market rate adjustment on PPP loans acquired from Covenant, was $1,409,000 in the three-month period ended September 30, 2021 and $467,000 in the three-month period ended September 30, 2020. Accretion of fees received on PPP loans, net of amortization of the market rate adjustment on PPP loans acquired from Covenant, was $3,975,000 in the nine-month period ended September 30, 2021 and $804,000 in the nine-month period ended September 30, 2020. To work with clients impacted by COVID-19, the Corporation offers short-term loan modifications on a case-by-case basis to borrowers who were current in their payments at the inception of the loan modification program. Prior to the merger, Covenant had a similar program in place, and these modified loans have been incorporated into the Corporation’s program. These efforts have been designed to assist borrowers as they deal with the crisis and help the Corporation mitigate credit risk. For loans subject to the program, each borrower is required to resume making regularly scheduled loan payments at the end of the modification period and the deferred amounts will be moved to the end of the loan term. Consistent with Section 4013 of the CARES Act, the modified loans have not been reported as past due, nonaccrual or as TDRs at September 30, 2021. Most of the initial modifications under the program became effective in 2020 and provided a deferral of interest or principal and interest for 90-to-180 days. At September 30, 2021, there were no loans in deferral status under the program. At December 31, 2020, there were 45 loans with a total recorded investment of $37,397,000, in deferral status under the program. As described in Note 2, effective July 1, 2020, the Corporation acquired loans pursuant to its acquisition of Covenant, and effective April 1, 2019, the Corporation acquired loans pursuant to the acquisition of Monument Bancorp, Inc. (“Monument”). The acquired loans were recorded at their initial fair value, with adjustments made to the gross amortized cost of loans based on movements in interest rates (market rate adjustment) and based on credit fair value adjustments on non-impaired loans and impaired loans. Subsequent to the acquisitions, the Corporation has recognized amortization and accretion of a portion of the market rate adjustments and credit adjustments on non-impaired (performing) loans, and a partial recovery of purchased credit impaired (PCI) loans. For the three-month and nine-month periods ended September 30, 2021 and 2020, adjustments to the initial market rate and credit fair value adjustments of performing loans were recognized as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ (5) $ (1,103) $ 718 $ (1,415) Market rate adjustment recorded in acquisition 0 2,909 0 2,909 Amortization recognized in interest income (368) (452) (1,091) (140) Adjustments to gross amortized cost of loans at end of period $ (373) $ 1,354 $ (373) $ 1,354 Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (4,502) $ (878) $ (5,979) $ (1,216) Credit adjustment recorded in acquisition 0 (7,219) 0 (7,219) Accretion recognized in interest income 666 970 2,143 1,308 Adjustments to gross amortized cost of loans at end of period $ (3,836) $ (7,127) $ (3,836) $ (7,127) A summary of PCI loans held at September 30, 2021 and December 31, 2020 is as follows: (In Thousands) September 30, December 31, 2021 2020 Outstanding balance $ 10,064 $ 10,316 Carrying amount 6,624 6,841 The Corporation maintains an allowance for loan losses that represents management’s estimate of the losses inherent in the loan portfolio as of the balance sheet date and recorded as a reduction of the investment in loans. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Corporation’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. In the process of evaluating the loan portfolio, management also considers the Corporation’s exposure to losses from unfunded loan commitments. As of September 30, 2021 and December 31, 2020, management determined that no allowance for credit losses related to unfunded loan commitments was required. Transactions within the allowance for loan losses, summarized by segment and class, for the three-month and nine-month periods ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, 2021 June 30, 2021 September 30, 2021 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 3,452 $ 0 $ 0 $ 368 $ 3,820 Commercial and industrial 2,781 (1,194) 6 947 2,540 Commercial construction and land 452 0 0 107 559 Loans secured by farmland 113 0 0 (1) 112 Multi-family (5 or more) residential 150 0 0 46 196 Agricultural loans 25 0 0 8 33 Other commercial loans 145 0 0 28 173 Total commercial 7,118 (1,194) 6 1,503 7,433 Residential mortgage: Residential mortgage loans - first liens 3,536 0 1 29 3,566 Residential mortgage loans - junior liens 327 0 0 (6) 321 Home equity lines of credit 294 0 0 (11) 283 1-4 Family residential construction 198 0 0 (9) 189 Total residential mortgage 4,355 0 1 3 4,359 Consumer 231 (26) 8 24 237 Unallocated 671 0 0 0 671 Total Allowance for Loan Losses $ 12,375 $ (1,220) $ 15 $ 1,530 $ 12,700 Three Months Ended September 30, 2020 June 30, 2020 September 30, 2020 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 2,426 $ 0 $ 0 $ (40) $ 2,386 Commercial and industrial 2,496 (2,219) 0 1,974 2,251 Commercial construction and land 420 0 0 20 440 Loans secured by farmland 146 0 0 (25) 121 Multi-family (5 or more) residential 163 0 0 64 227 Agricultural loans 40 0 0 (3) 37 Other commercial loans 167 0 0 0 167 Total commercial 5,858 (2,219) 0 1,990 5,629 Residential mortgage: Residential mortgage loans - first liens 3,531 0 26 (92) 3,465 Residential mortgage loans - junior liens 365 0 0 (7) 358 Home equity lines of credit 287 0 1 1 289 1-4 Family residential construction 137 0 0 32 169 Total residential mortgage 4,320 0 27 (66) 4,281 Consumer 263 (30) 8 17 258 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 11,026 $ (2,249) $ 35 $ 1,941 $ 10,753 For the three months ended September 30, 2021, the provision for loan losses was $1,530,000, a decrease in expense of $411,000 as compared to $1,941,000 for the three months ended September 30, 2020. The third quarter 2021 provision included a net charge of $611,000 related to specific loans (net charge-offs of $1,205,000 offset by a net decrease in specific allowances on loans of $594,000), and an increase of $919,000 in the collectively determined portion of the allowance. In the third quarter 2021, the Corporation recorded a partial charge-off of $1,194,000 on a commercial loan with an outstanding balance of $3,496,000 at the time of the charge-off. The partial charge-off amount exceeded the specific allowance of $583,000 that had been established on this loan at June 30, 2021. The provision for loan losses in the third quarter 2020 included the net impact of a charge-off of $2,219,000 on a commercial loan of $3,500,000 for which the previously-established allowance had been $1,193,000. December 31, September 30, Nine Months Ended September 30, 2021 2020 Provision 2021 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 3,051 $ 0 $ 2 $ 767 $ 3,820 Commercial and industrial 2,245 (1,194) 20 1,469 2,540 Commercial construction and land 454 0 0 105 559 Loans secured by farmland 120 0 0 (8) 112 Multi-family (5 or more) residential 236 0 0 (40) 196 Agricultural loans 34 0 0 (1) 33 Other commercial loans 168 0 0 5 173 Total commercial 6,308 (1,194) 22 2,297 7,433 Residential mortgage: Residential mortgage loans - first liens 3,524 (11) 3 50 3,566 Residential mortgage loans - junior liens 349 0 0 (28) 321 Home equity lines of credit 281 0 2 0 283 1-4 Family residential construction 99 0 0 90 189 Total residential mortgage 4,253 (11) 5 112 4,359 Consumer 239 (73) 33 38 237 Unallocated 585 0 0 86 671 Total Allowance for Loan Losses $ 11,385 $ (1,278) $ 60 $ 2,533 $ 12,700 December 31, September 30, Nine Months Ended September 30, 2020 2019 Provision 2020 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 1,921 $ 0 $ 0 $ 465 $ 2,386 Commercial and industrial 1,391 (2,236) 0 3,096 2,251 Commercial construction and land 966 (107) 0 (419) 440 Loans secured by farmland 158 0 0 (37) 121 Multi-family (5 or more) residential 156 0 0 71 227 Agricultural loans 41 0 0 (4) 37 Other commercial loans 155 0 0 12 167 Total commercial 4,788 (2,343) 0 3,184 5,629 Residential mortgage: Residential mortgage loans - first liens 3,405 0 28 32 3,465 Residential mortgage loans - junior liens 384 0 1 (27) 358 Home equity lines of credit 276 0 3 10 289 1-4 Family residential construction 117 0 0 52 169 Total residential mortgage 4,182 0 32 67 4,281 Consumer 281 (100) 35 42 258 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 9,836 $ (2,443) $ 67 $ 3,293 $ 10,753 For the nine months ended September 30, 2021, the provision for loan losses was $2,533,000, a decrease in expense of $760,000 as compared to $3,293,000 recorded for the nine months ended September 30, 2020. The provision for the nine months ended September 30, 2021, includes the impact of a charge-off of $1,194,000 on a commercial loan with an ouststanding balance of $3,496,000, as previously discussed. In comparison, the provision for loan losses in the first nine months of 2020 included the impact of the $2,219,000 charge-off of a commercial loan of $3,500,000. In determining the larger loan relationships for detailed assessment under the specific allowance component, the Corporation uses an internal risk rating system. Under the risk rating system, the Corporation classifies problem or potential problem loans as “Special Mention,” “Substandard,” or “Doubtful” on the basis of currently existing facts, conditions and values. Substandard loans include those characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Corporation to sufficient risk to warrant classification as Substandard or Doubtful, but possess weaknesses that deserve management’s close attention, are deemed to be Special Mention. Risk ratings are updated any time that conditions or the situation warrants. Loans not classified are included in the “Pass” column in the table that follows. The following tables summarize the aggregate credit quality classification of outstanding loans by risk rating as of September 30, 2021 and December 31, 2020: September 30, 2021 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 519,673 $ 15,055 $ 14,473 $ 0 $ 4,188 $ 553,389 Commercial and Industrial 136,858 8,578 6,028 0 780 152,244 Paycheck Protection Program - 1st Draw 5,747 0 0 0 0 5,747 Paycheck Protection Program - 2nd Draw 56,981 0 0 0 0 56,981 Political subdivisions 73,503 0 0 0 0 73,503 Commercial construction and land 52,504 715 48 0 0 53,267 Loans secured by farmland 9,639 194 979 0 0 10,812 Multi-family (5 or more) residential 48,154 2,352 878 0 1,578 52,962 Agricultural loans 2,533 0 559 0 0 3,092 Other commercial loans 17,307 5 0 0 0 17,312 Total commercial 922,899 26,899 22,965 0 6,546 979,309 Residential Mortgage: Residential mortgage loans - first liens 482,710 5,066 6,528 0 72 494,376 Residential mortgage loans - junior liens 23,676 107 514 0 6 24,303 Home equity lines of credit 37,889 59 517 0 0 38,465 1-4 Family residential construction 21,719 0 0 0 0 21,719 Total residential mortgage 565,994 5,232 7,559 0 78 578,863 Consumer 17,505 0 31 0 0 17,536 Totals $ 1,506,398 $ 32,131 $ 30,555 $ 0 $ 6,624 $ 1,575,708 December 31, 2020 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 494,876 $ 17,374 $ 15,262 $ 0 $ 4,298 $ 531,810 Commercial and Industrial 143,500 8,025 7,268 0 784 159,577 Paycheck Protection Program - 1st Draw 132,269 0 0 0 0 132,269 Political subdivisions 53,221 0 0 0 0 53,221 Commercial construction and land 42,110 715 49 0 0 42,874 Loans secured by farmland 10,473 405 858 0 0 11,736 Multi-family (5 or more) residential 50,563 2,405 1,229 0 1,614 55,811 Agricultural loans 2,569 0 595 0 0 3,164 Other commercial loans 17,289 0 0 0 0 17,289 Total commercial 946,870 28,924 25,261 0 6,696 1,007,751 Residential Mortgage: Residential Mortgage loans - first liens 516,685 6,192 9,994 0 76 532,947 Residential Mortgage loans - junior liens 26,480 141 621 0 69 27,311 Home equity lines of credit 38,529 59 713 0 0 39,301 1-4 Family residential construction 20,613 0 0 0 0 20,613 Total residential mortgage 602,307 6,392 11,328 0 145 620,172 Consumer 16,172 0 114 0 0 16,286 Totals $ 1,565,349 $ 35,316 $ 36,703 $ 0 $ 6,841 $ 1,644,209 The following tables present a summary of loan balances and the related allowance for loan losses summarized by portfolio segment and class for each impairment method used as of September 30, 2021 and December 31, 2020. September 30, 2021 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 11,303 $ 542,086 $ 553,389 $ 672 $ 3,148 $ 3,820 Commercial and industrial 3,598 148,646 152,244 72 2,468 2,540 Paycheck Protection Program - 1st Draw 0 5,747 5,747 0 0 0 Paycheck Protection Program - 2nd Draw 0 56,981 56,981 0 0 0 Political subdivisions 0 73,503 73,503 0 0 0 Commercial construction and land 0 53,267 53,267 0 559 559 Loans secured by farmland 84 10,728 10,812 0 112 112 Multi-family (5 or more) residential 1,578 51,384 52,962 0 196 196 Agricultural loans 0 3,092 3,092 0 33 33 Other commercial loans 0 17,312 17,312 0 173 173 Total commercial 16,563 962,746 979,309 744 6,689 7,433 Residential mortgage: Residential mortgage loans - first liens 1,134 493,242 494,376 0 3,566 3,566 Residential mortgage loans - junior liens 317 23,986 24,303 139 182 321 Home equity lines of credit 0 38,465 38,465 0 283 283 1-4 Family residential construction 0 21,719 21,719 0 189 189 Total residential mortgage 1,451 577,412 578,863 139 4,220 4,359 Consumer 0 17,536 17,536 0 237 237 Unallocated 671 Total $ 18,014 $ 1,557,694 $ 1,575,708 $ 883 $ 11,146 $ 12,700 December 31, 2020 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 11,962 $ 519,848 $ 531,810 $ 692 $ 2,359 $ 3,051 Commercial and industrial 1,359 158,218 159,577 71 2,174 2,245 Paycheck Protection Program - 1st Draw 0 132,269 132,269 0 0 0 Political subdivisions 0 53,221 53,221 0 0 0 Commercial construction and land 0 42,874 42,874 0 454 454 Loans secured by farmland 84 11,652 11,736 0 120 120 Multi-family (5 or more) residential 1,614 54,197 55,811 0 236 236 Agricultural loans 0 3,164 3,164 0 34 34 Other commercial loans 0 17,289 17,289 0 168 168 Total commercial 15,019 992,732 1,007,751 763 5,545 6,308 Residential mortgage: Residential mortgage loans - first liens 2,385 530,562 532,947 9 3,515 3,524 Residential mortgage loans - junior liens 414 26,897 27,311 153 196 349 Home equity lines of credit 0 39,301 39,301 0 281 281 1-4 Family residential construction 0 20,613 20,613 0 99 99 Total residential mortgage 2,799 617,373 620,172 162 4,091 4,253 Consumer 0 16,286 16,286 0 239 239 Unallocated 585 Total $ 17,818 $ 1,626,391 $ 1,644,209 $ 925 $ 9,875 $ 11,385 Summary information related to impaired loans at September 30, 2021 and December 31, 2020 is provided in the table immediately below. (In Thousands) September 30, 2021 December 31, 2020 Unpaid Unpaid Principal Recorded Related Principal Recorded Related Balance Investment Allowance Balance Investment Allowance With no related allowance recorded: Commercial loans secured by real estate $ 7,068 $ 4,823 $ 0 $ 7,168 $ 5,398 $ 0 Commercial and industrial 5,930 3,526 0 1,781 1,287 0 Residential mortgage loans - first liens 786 760 0 1,248 1,248 0 Residential mortgage loans - junior liens 65 18 0 160 105 0 Loans secured by farmland 84 84 0 84 84 0 Multi-family (5 or more) residential 2,734 1,578 0 2,770 1,614 0 Total with no related allowance recorded 16,667 10,789 0 13,211 9,736 0 With a related allowance recorded: Commercial loans secured by real estate 6,480 6,480 672 6,501 6,501 691 Commercial and industrial 72 72 72 72 72 72 Residential mortgage loans - first liens 374 374 0 1,200 1,200 9 Residential mortgage loans - junior liens 299 299 139 309 309 153 Total with a related allowance recorded 7,225 7,225 883 8,082 8,082 925 Total $ 23,892 $ 18,014 $ 883 $ 21,293 $ 17,818 $ 925 In the table immediately above, loans to two borrowers are presented under the Residential mortgage loans – first liens and Residential mortgage loans – junior liens classes. Each of these loans is collateralized by one property, and the allowance associated with each of these loans was determined based on an analysis of the total amounts of the Corporation’s exposure in comparison to the estimated net proceeds if the Corporation were to sell the property. The total allowance related to these two borrowers was $139,000 at September 30, 2021 and $153,000 at December 31, 2020. The average balance of impaired loans, excluding purchased credit impaired loans, and interest income recognized on these impaired loans is as follows: (In Thousands) Interest Income Recognized on Average Investment in Impaired Loans Impaired Loans on a Cash Basis Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 2021 2020 2021 2020 Commercial: Commercial loans secured by real estate $ 11,252 $ 7,298 $ 11,811 $ 3,779 $ 172 $ 65 $ 401 $ 81 Commercial and industrial 3,844 2,235 2,566 3,178 4 1 25 21 Commercial construction and land 48 49 48 678 2 1 2 14 Loans secured by farmland 84 253 84 397 0 2 1 26 Multi-family (5 or more) residential 1,578 0 1,584 0 31 0 122 0 Agricultural loans 66 76 67 76 0 2 3 4 Other commercial loans 0 0 0 25 0 0 0 1 Total commercial 16,872 9,911 16,160 8,133 209 71 554 147 Residential mortgage: Residential mortgage loans - first lien 1,322 2,159 1,830 1,579 11 27 68 70 Residential mortgage loans - junior lien 386 384 417 386 1 5 10 18 Home equity lines of credit 0 65 0 65 0 0 0 2 Total residential mortgage 1,708 2,608 2,247 2,030 12 32 78 90 Total $ 18,580 $ 12,519 $ 18,407 $ 10,163 $ 221 $ 103 $ 632 $ 237 The breakdown by portfolio segment and class of nonaccrual loans and loans past due ninety days or more and still accruing is as follows: (In Thousands) September 30, 2021 December 31, 2020 Past Due Past Due 90+ Days and 90+ Days and Accruing Nonaccrual Accruing Nonaccrual Commercial: Commercial loans secured by real estate $ 752 $ 11,205 $ 395 $ 11,550 Commercial and industrial 99 3,232 142 970 Commercial construction and land 0 48 0 49 Loans secured by farmland 30 84 188 84 Multi-family (5 or more) residential 0 1,578 0 1,614 Agricultural loans 66 0 0 0 Other commercial 0 0 71 0 Total commercial 947 16,147 796 14,267 Residential mortgage: Residential mortgage loans - first liens 832 4,569 838 6,387 Residential mortgage loans - junior liens 71 305 52 378 Home equity lines of credit 64 289 233 299 Total residential mortgage 967 5,163 1,123 7,064 Consumer 10 31 56 85 Totals $ 1,924 $ 21,341 $ 1,975 $ 21,416 The amounts shown in the table immediately above include loans classified as troubled debt restructurings (desc |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 8. GOODWILL AND OTHER INTANGIBLE ASSETS Information related to core deposit intangibles is as follows: (In Thousands) September 30, December 31, 2021 2020 Gross amount $ 6,639 $ 6,639 Accumulated amortization (3,189) (2,788) Net $ 3,450 $ 3,851 Amortization expense related to core deposit intangibles is included in other noninterest expense in the consolidated statements of income, as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Amortization expense $ 133 $ 208 $ 401 $ 332 Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired. At September 30, 2021 and December 31, 2020, the net carrying value of goodwill was $52,505,000. Changes in the carrying amount of goodwill are summarized in the following table: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Balance, beginning of period $ 52,505 $ 28,388 $ 52,505 $ 28,388 Goodwill arising in business combination 0 24,138 0 24,138 Balance, end of period $ 52,505 $ 52,526 $ 52,505 $ 52,526 |
BORROWED FUNDS
BORROWED FUNDS | 9 Months Ended |
Sep. 30, 2021 | |
BORROWED FUNDS | |
BORROWED FUNDS | 9. BORROWED FUNDS SHORT-TERM BORROWINGS Short-term borrowings (initial maturity within one year) include the following: (In Thousands) September 30, December 31, 2021 2020 FHLB-Pittsburgh borrowings $ 0 $ 18,066 Customer repurchase agreements 1,875 1,956 Total short-term borrowings $ 1,875 $ 20,022 The Corporation had available credit with other correspondent banks totaling $45,000,000 at September 30, 2021 and December 31, 2020. These lines of credit are primarily unsecured. No amounts were outstanding at September 30, 2021 or December 31, 2020. The Corporation has a line of credit with the Federal Reserve Bank of Philadelphia’s Discount Window. At September 30, 2021, the Corporation had available credit in the amount of $14,482,000 on this line with no outstanding advances. At December 31, 2020, the Corporation had available credit in the amount of $14,654,000 on this line with no outstanding advances. As collateral for this line, the Corporation has pledged available-for-sale securities with a carrying value of $14,936,000 at September 30, 2021 and $15,126,000 at December 31, 2020. The Corporation engages in repurchase agreements with certain commercial customers. These agreements provide that the Corporation sells specified investment securities to the customers on an overnight basis and repurchases them on the following business day. The weighted average rate paid by the Corporation on customer repurchase agreements was 0.10%at September 30, 2021 and December 31, 2020. The carrying value of the underlying securities was $1,900,000 at September 30, 2021 and $1,980,000 at December 31, 2020. The FHLB-Pittsburgh loan facility is collateralized by qualifying loans secured by real estate with a book value totaling $1,044,507,000 at September 30, 2021 and $1,049,690,000 at December 31, 2020. Also, the FHLB-Pittsburgh loan facility requires the Corporation to invest in established amounts of FHLB-Pittsburgh stock. The carrying values of the Corporation’s holdings of FHLB-Pittsburgh stock (included in other assets in the consolidated balance sheets) were $9,400,000 at September 30, 2021 and $9,720,000 at December 31, 2020. In addition to the short-term and long-term borrowings shown in these tables, there are letters of credit from FHLB-Pittsburgh outstanding in the amount of $5,584,000 at September 30, 2021 and $400,000 at December 31, 2020. The Corporation’s total credit facility with FHLB-Pittsburgh was $752,847,000 at September 30, 2021, including an unused (available) amount of $709,012,000. At December 31, 2020, the Corporation’s total credit facility with FHLB-Pittsburgh was $771,199,000, including an unused (available) amount of $698,977,000. At September 30, 2021, there were no outstanding short-term borrowings from FHLB-Pittsburgh. At December 31, 2020, short-term borrowings from FHLB-Pittsburgh included five advances totaling $18,000,000 par value, with a weighted average effective interest rate of 0.43%. LONG-TERM BORROWINGS – FHLB ADVANCES Long-term borrowings from FHLB-Pittsburgh are as follows: (In Thousands) September 30, December 31, 2021 2020 Loans maturing in 2021 with a weighted-average rate of 0.94% $ 10,520 $ 26,098 Loans maturing in 2022 with a weighted-average rate of 0.60% 15,510 15,682 Loans maturing in 2023 with a weighted-average rate of 0.73% 7,145 7,224 Loans maturing in 2024 with a weighted-average rate of 0.75% 5,109 5,137 Loan maturing in 2025 with an average rate of 4.91% 396 467 Total long-term FHLB-Pittsburgh borrowings $ 38,680 $ 54,608 Note: Weighted-average rates are presented as of September 30, 2021. SENIOR NOTES On May 19, 2021, the Corporation issued and sold $15.0 million in aggregate principal amount of 2.75% Fixed Rate Senior Unsecured Notes due 2026 (the "Senior Notes"). The Senior Notes mature on June 1, 2026 and bear interest at a fixed annual rate of 2.75%. The Corporation is not entitled to redeem the Senior Notes, in whole or in part, at any time and the Senior Notes are not subject to redemption by the holders. The Senior Notes are unsecured and unsubordinated obligations of the Corporation only and are not obligations of, and are not guaranteed by, any subsidiary of the Corporation. The Senior Notes were recorded, net of debt issuance costs of $337,000, at an initial carrying amount of $14,663,000. Debt issuance costs are amortized over the term of the Senior Notes as an adjustment of the effective interest rate. Amortization of debt issuance costs associated with the Senior Notes totaling $15,000 in the third quarter 2021 and $22,000 in the nine-month period ended September 30, 2021 was included in interest expense in the unaudited consolidated statements of income. At September 30, 2021 and December 31, 2020, outstanding Senior Notes are as follows: (In Thousands) September 30, December 31, 2021 2020 Senior Notes with an aggregate par value of $15,000,000; bearing interest at 2.75% with an effective interest rate of 3.23%; maturing in June 2026 $ 14,685 $ 0 Total carrying value $ 14,685 $ 0 SUBORDINATED DEBT On May 19, 2021, the Corporation issued and sold $25.0 million in aggregate principal amount of 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 (the "Subordinated Notes"). The Subordinated Notes mature on June 1, 2031 and bear interest at a fixed annual rate of 3.25%, to June 1, 2026. From June 1, 2026 to maturity or early redemption, the interest rate will reset quarterly to an interest rate per annum equal to the three-month Secured Overnight Financing Rate provided by the Federal Reserve Bank of New York plus 259 basis points. The Corporation is entitled to redeem the Subordinated Notes, in whole or in part, at any time on or after June 1, 2026, and to redeem the Subordinated Notes at any time in whole upon certain other events. Any redemption of the Subordinated Notes will be subject to prior regulatory approval to the extent required. The Subordinated Notes are not subject to redemption at the option of the holders. The Subordinated Notes are unsecured, subordinated obligations of the Corporation only and are not obligations of, and are not guaranteed by, any subsidiary of the Corporation. The Subordinated Notes rank junior in right to payment to the Corporation's current and future senior indebtedness, including the Senior Notes (described above). The Subordinated Notes are intended to qualify as Tier 2 capital for regulatory capital purposes. The Subordinated Notes were recorded, net of debt issuance costs of $563,000, at an initial carrying amount of $24,437,000. Debt issuance costs are amortized through June 1, 2026 as an adjustment of the effective interest rate. Amortization of debt issuance costs associated with the Subordinated Notes totaling $25,000 in the third quarter 2021 and $38,000 in the nine-month period ended September 30, 2021 was included in interest expense in the unaudited consolidated statements of income. At September 30, 2021 and December 31, 2020, the carrying amounts of subordinated debt agreements are as follows: (In Thousands) September 30, December 31, 2021 2020 Agreements with an aggregate par value of $8,000,000; bearing interest at 6.25% with an effective interest rate of 5.49%; redeemed at par in June 2021 $ 0 $ 8,027 Agreements with an aggregate par value of $6,500,000; bearing interest at 6.50%; maturing in April 2027 and redeemable at par in April 2022 6,500 6,500 Agreement with a par value of $2,000,000; bearing interest at 6.50% with an effective interest rate of 5.60%; maturing in July 2027 and redeemable at par in July 2022 2,013 2,026 Agreements with a par value of $25,000,000; bearing interest at 3.25% with an effective interest rate of 3.74% ; maturing in June 2031 and redeemable at par in June 2026 24,475 0 Total carrying value $ 32,988 $ 16,553 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2021 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | 10. STOCK-BASED COMPENSATION PLANS The Corporation has a Stock Incentive Plan for a selected group of officers and an Independent Directors Stock Incentive Plan. The 2021 restricted stock awards under the Stock Incentive Plan vest ratably over three years, and the 2021 restricted stock issued under the Independent Directors Stock Incentive Plan vests over one year. Following is a summary of restricted stock awards granted in the nine-month period ended September 30, 2021: (Dollars in Thousands) Aggregate Grant Date Number of Fair Shares Value 1st quarter 2021 awards: Time-based awards to independent directors 10,989 $ 220 Time-based awards to employees 46,178 924 Performance-based awards to employees 17,224 345 2nd quarter 2021 awards, Time-based awards to employees 4,000 100 Total 78,391 $ 1,589 Compensation cost related to restricted stock is recognized based on the fair value of the stock at the grant date over the vesting period, adjusted for estimated and actual forfeitures. Total annual stock-based compensation for the year ending December 31, 2021 is estimated to total $1,314,000. Total stock-based compensation expense attributable to restricted stock awards amounted to $345,000 in the third quarter 2021 and $248,000 in the third quarter 2020. Total stock-based compensation expense attributable to restricted stock awards amounted to $970,000 in the nine-month period ended September 30, 2021 and $672,000 in the nine-month period ended September 30, 2020. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
CONTINGENCIES | |
CONTINGENCIES | 11. CONTINGENCIES Litigation Matters In the normal course of business, the Corporation is subject to pending and threatened lawsuits in which claims for monetary damages have been asserted. In management’s opinion, the Corporation’s financial position and results of operations would not be materially affected by the outcome of such pending legal proceedings. Trust Department Tax Reporting Contingency The Corporation has incurred operational losses from compliance oversight related to trust department tax preparation and administration activities that occurred prior to 2020. In 2020, the Corporation made changes in internal controls and personnel responsible for trust department tax administration activities. Management implemented the changes in internal controls and personnel in an effort to mitigate and prevent the likelihood of new instances of non-compliance from trust department tax administration activities. There were no losses related to trust department tax compliance matters in the third quarter 2021. Losses related to a state tax reporting matter totaled $200,000 in the third quarter 2020. Losses related to trust department tax compliance matters totaled $107,000 in the nine months ended September 30, 2021, and $500,000 in the nine-month period ended September 30, 2020. These losses are included in other noninterest expense in the consolidated statements of income. The balance of accrued interest and other liabilities in the consolidated balance sheets includes $429,000 at September 30, 2021 and $322,000 at December 31, 2020 related to specific tax compliance matters that have been identified; however, no estimate can be made of the amount of additional expenses that may be incurred related to these matters. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | 12. DERIVATIVE FINANCIAL INSTRUMENTS The Corporation is a party to derivative financial instruments. These financial instruments consist of interest rate swap agreements which contain master netting and collateral provisions designed to protect the party at risk. Interest rate swaps with commercial banking customers were executed to facilitate their respective risk management strategies. Under the terms of these arrangements, the commercial banking customers effectively exchanged their floating interest rate exposures on loans into fixed interest rate exposures. Those interest rate swaps have been simultaneously economically hedged by offsetting interest rate swaps with a third party, such that the Corporation has effectively exchanged its fixed interest rate exposures for floating rate exposures. These derivatives are not designated as hedges and are not speculative. Rather, these derivatives result from a service provided to certain customers. As the interest rate swaps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The aggregate notional amount of interest rate swaps was $123,990,000 at September 30, 2021 and $135,740,000 at December 31, 2020. There were no interest rate swaps originated in the nine-month periods ended September 30, 2021 and 2020. There were no gross amounts of interest rate swap-related assets and liabilities not offset in the consolidated balance sheets at September 30, 2021. The net impact on the consolidated statements of income from interest rate swaps was a reduction in interest income on loans of $335,000 in the third quarter 2021 and $1,013,000 in the nine months ended September 30, 2021 as compared to a reduction in interest income on loans of $351,000 in the third quarter 2020 and the nine months ended September 30, 2020. The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the consolidated balance sheets at September 30, 2021 and December 31, 2020: (In Thousands) At September 30, 2021 At December 31, 2020 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Notional Fair Notional Fair Notional Fair Notional Fair Amount Value (1) Amount Value (2) Amount Value (1) Amount Value (2) Interest rate swap agreements $ 61,995 $ 3,902 $ 61,995 $ 3,902 $ 67,870 $ 6,566 $ 67,870 $ 6,566 (1) Included in other assets in the consolidated balance sheets. (2) Included in accrued interest and other liabilities in the consolidated balance sheets. The Corporation’s agreement with its derivative counterparty provides that if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Corporation could also be declared in default on its derivative obligations. Further, if the Corporation were to fail to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Corporation would be required to settle its obligations under the agreements. Available-for-sale securities with a carrying value of $7,069,000 were pledged as collateral against the Corporation’s liability related to the interest rate swaps at September 30, 2021. |
FAIR VALUE MEASUREMENTS AND FAI
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 13. FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS The Corporation measures certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB topic 820, “Fair Value Measurements and Disclosures” establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs used in determining valuations into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Corporation for identical assets or liabilities. These generally provide the most reliable evidence and are used to measure fair value whenever available. Level 2 – Fair value is based on significant inputs, other than Level 1 inputs, that are observable either directly or indirectly for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities and other observable inputs. Level 3 – Fair value is based on significant unobservable inputs. Examples of valuation methodologies that would result in Level 3 classification include option pricing models, discounted cash flows and other similar techniques. The Corporation monitors and evaluates available data relating to fair value measurements on an ongoing basis and recognizes transfers among the levels of the fair value hierarchy as of the date of an event or change in circumstances that affects the valuation method chosen. Examples of such changes may include the market for a particular asset or liability becoming active or inactive, changes in the availability of quoted prices, or changes in the availability of other market data. At September 30, 2021 and December 31, 2020, assets and liabilities measured at fair value and the valuation methods used are as follows: September 30, 2021 Quoted Prices Other in Active Observable Unobservable Total Markets Inputs Inputs Fair (In Thousands) (Level 1) (Level 2) (Level 3) Value Recurring fair value measurements, assets: AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of the U.S. Treasury $ 0 $ 25,068 $ 0 $ 25,068 Obligations of U.S. Government agencies 0 24,312 0 24,312 Obligations of states and political subdivisions: Tax-exempt 0 139,244 0 139,244 Taxable 0 70,493 0 70,493 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 60,629 0 60,629 Residential collateralized mortgage obligations 0 44,593 0 44,593 Commercial mortgage-backed securities 0 73,518 0 73,518 Total available-for-sale debt securities 0 437,857 0 437,857 Marketable equity security 981 0 0 981 Servicing rights 0 0 2,247 2,247 Interest rate swap agreements, assets 0 3,902 0 3,902 Total recurring fair value measurements, assets $ 981 $ 441,759 $ 2,247 $ 444,987 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 3,902 $ 0 $ 3,902 Nonrecurring fair value measurements, assets: Impaired loans with a valuation allowance $ 0 $ 0 $ 7,225 $ 7,225 Valuation allowance 0 0 (883) (883) Impaired loans, net 0 0 6,342 6,342 Foreclosed assets held for sale 0 0 1,374 1,374 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 7,716 $ 7,716 December 31, 2020 Quoted Prices Other in Active Observable Unobservable Total Markets Inputs Inputs Fair (In Thousands) (Level 1) (Level 2) (Level 3) Value Recurring fair value measurements, assets: AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of the U.S. Treasury $ 0 $ 12,182 $ 0 $ 12,182 Obligations of U.S. Government agencies 0 26,344 0 26,344 Obligations of states and political subdivisions: Tax-exempt 0 122,401 0 122,401 Taxable 0 47,452 0 47,452 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 38,176 0 38,176 Residential collateralized mortgage obligations 0 57,467 0 57,467 Commercial mortgage-backed securities 0 45,310 0 45,310 Total available-for-sale debt securities 0 349,332 0 349,332 Marketable equity security 1,000 0 0 1,000 Servicing rights 0 0 1,689 1,689 Interest rate swap agreements, assets 0 6,566 0 6,566 Total recurring fair value measurements, assets $ 1,000 $ 355,898 $ 1,689 $ 358,587 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 6,566 $ 0 $ 6,566 Nonrecurring fair value measurements, assets: Impaired loans with a valuation allowance $ 0 $ 0 $ 8,082 $ 8,082 Valuation allowance 0 0 (925) (925) Impaired loans, net 0 0 7,157 7,157 Foreclosed assets held for sale 0 0 1,338 1,338 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 8,495 $ 8,495 Management’s evaluation and selection of valuation techniques and the unobservable inputs used in determining the fair values of assets valued using Level 3 methodologies include sensitive assumptions. Other market participants might use substantially different assumptions, which could result in calculations of fair values that would be substantially different than the amount calculated by management. At September 30, 2021 and December 31, 2020, quantitative information regarding valuation techniques and the significant unobservable inputs used for assets measured on a recurring basis using unobservable inputs (Level 3 methodologies) are as follows: Fair Value at 9/30/2021 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 9/30/2021 Servicing rights $ 2,247 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 221.00 % Weighted-average PSA Servicing fees 0.25 % of loan balances 4.00 % of payments are late 5.00 % late fees assessed $ 1.94 Miscellaneous fees per account per month Servicing costs $ 6.00 Monthly servicing cost per account $ 24.00 Additional monthly servicing cost per loan on loans more than 30 days delinquent 1.50 % of loans more than 30 days delinquent 3.00 % annual increase in servicing costs Fair Value at 12/31/2020 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2020 Servicing rights $ 1,689 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 277.00 % Weighted-average PSA Servicing fees 0.25 % of loan balances 4.00 % of payments are late 5.00 % late fees assessed $ 1.94 Miscellaneous fees per account per month Servicing costs $ 6.00 Monthly servicing cost per account $ 24.00 Additional monthly servicing cost per loan on loans more than 30 days delinquent 1.50 % of loans more than 30 days delinquent 3.00 % annual increase in servicing costs The fair value of servicing rights is affected by expected future interest rates. Increases (decreases) in future expected interest rates tend to increase (decrease) the fair value of the Corporation’s servicing rights because of changes in expected prepayment behavior by the borrowers on the underlying loans. Unrealized gains (losses) in fair value of servicing rights are included in Loan servicing fees, net, in the unaudited consolidated statements of income. Following is a reconciliation of activity for Level 3 assets measured at fair value on a recurring basis: (In Thousands) Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Servicing rights balance, beginning of period $ 2,116 $ 1,284 $ 1,689 $ 1,277 Originations of servicing rights 176 374 567 777 Unrealized loss included in earnings (45) (221) (9) (617) Servicing rights balance, end of period $ 2,247 $ 1,437 $ 2,247 $ 1,437 Loans are classified as impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Foreclosed assets held for sale consist of real estate acquired by foreclosure. For impaired commercial loans secured by real estate and foreclosed assets held for sale, estimated fair values are determined primarily using values from third-party appraisals. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial and industrial and agricultural loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging data or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. At September 30, 2021 and December 31, 2020, quantitative information regarding valuation techniques and the significant unobservable inputs used for nonrecurring fair value measurements using Level 3 methodologies are as follows: (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 9/30/2021 9/30/2021 9/30/2021 Technique Inputs 9/30/2021 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,480 $ 672 $ 5,808 Sales comparison Discount to appraised value 27 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Residential mortgage loans - first and junior liens 673 139 534 Sales comparison Discount to appraised value 33 % Total impaired loans $ 7,225 $ 883 $ 6,342 Foreclosed assets held for sale - real estate: Commercial real estate $ 1,195 $ 0 $ 1,195 Sales comparison Discount to appraised value 47 % Residential (1-4 family) 179 0 179 Sales comparison Discount to appraised value 52 % Total foreclosed assets held for sale $ 1,374 $ 0 $ 1,374 (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2020 12/31/2020 12/31/2020 Technique Inputs 12/31/2020 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,501 $ 691 $ 5,810 Sales comparison Discount to appraised value 28 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Residential mortgage loans - first and junior liens 1,509 162 1,347 Sales comparison Discount to appraised value 31 % Total impaired loans $ 8,082 $ 925 $ 7,157 Foreclosed assets held for sale - real estate: Commercial real estate $ 1,258 $ 0 $ 1,258 Sales comparison Discount to appraised value 44 % Residential (1-4 family) 80 0 80 Sales comparison Discount to appraised value 36 % Total foreclosed assets held for sale $ 1,338 $ 0 $ 1,338 Certain of the Corporation’s financial instruments are not measured at fair value in the consolidated financial statements. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Certain financial instruments and all nonfinancial instruments are excluded from disclosure requirements. Therefore, the aggregate fair value amounts presented may not represent the underlying fair value of the Corporation. The estimated fair values, and related carrying amounts, of the Corporation’s financial instruments that are not recorded at fair value are as follows: (In Thousands) Fair Value September 30, 2021 December 31, 2020 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 190,155 $ 190,155 $ 96,017 $ 96,017 Certificates of deposit Level 2 8,840 8,949 5,840 6,054 Restricted equity securities (included in Other Assets) Level 2 9,650 9,650 9,970 9,970 Loans, net Level 3 1,563,008 1,586,592 1,632,824 1,646,207 Accrued interest receivable Level 2 7,307 7,307 8,293 8,293 Financial liabilities: Deposits with no stated maturity Level 2 1,637,463 1,637,463 1,430,062 1,430,062 Time deposits Level 2 302,678 304,330 390,407 393,566 Short-term borrowings Level 2 1,875 1,685 20,022 19,974 Long-term borrowings Level 2 38,680 39,229 54,608 55,723 Senior debt Level 2 14,685 15,000 0 0 Subordinated debt Level 2 32,988 33,150 16,553 16,680 Accrued interest payable Level 2 633 633 390 390 The Corporation has commitments to extend credit and has issued standby letters of credit. Standby letters of credit are conditional guarantees of performance by a customer to a third party. Estimates of the fair value of these off-balance sheet items were not made because of the short-term nature of these arrangements and the credit standing of the counterparties. |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board (FASB) issues Accounting Standards Updates (ASUs) to the FASB Accounting Standards Codification (ASC). This section provides a summary description of recent ASUs that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the near future. Recently Issued But Not Yet Effective Accounting Pronouncements ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), as modified by subsequent ASUs, changes accounting for credit losses on loans receivable and debt securities from an incurred loss methodology to an expected credit loss methodology. Among other things, ASU 2016-13 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. Accordingly, ASU 2016-13 requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, though the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on debt securities and purchased financial assets with credit deterioration. The effect of implementing this ASU is recorded through a cumulative-effect adjustment to retained earnings. The Corporation has formed a cross functional management team and is working with an outside vendor assessing alternative loss estimation methodologies and the Corporation’s data and system needs to evaluate the impact that adoption of this standard will have on the Corporation’s financial condition and results of operations. In November 2019, the FASB approved a delay of the required implementation date of ASU 2016-13 for smaller reporting companies, including the Corporation, resulting in a required implementation date for the Corporation of January 1, 2023. ASU 2020-04, Reference Rate Reform (Topic 848) provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The guidance includes a general principle that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. Some specific optional expedients are as follows: ● Simplifies accounting for contract modifications, including modifications to loans receivable and debt, by prospectively adjusting the effective interest rate. ● Simplifies the assessment of hedge effectiveness and allows hedging relationships affected by reference rate reform to continue. The amendments in ASU 2020-04 are effective as of March 12, 2020 through December 31, 2022. The Corporation has formed a cross functional management team to evaluate and implement changes to contracts with rates indexed to LIBOR and expects to apply the amendments prospectively for applicable loan and other contracts within the effective period of ASU 2020-04. |
PER SHARE DATA (Tables)
PER SHARE DATA (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
PER SHARE DATA | |
Schedule of Basic and Diluted earnings per share | (In Thousands, Except Share and Per Share Data) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Basic Net income $ 7,399 $ 2,848 $ 23,246 $ 12,452 Less: Dividends and undistributed earnings allocated to participating securities (63) (18) (189) (74) Net income attributable to common shares $ 7,336 $ 2,830 $ 23,057 $ 12,378 Basic weighted-average common shares outstanding 15,703,932 15,778,391 15,806,897 14,388,797 Basic earnings per common share (a) $ 0.47 $ 0.18 $ 1.46 $ 0.86 Diluted Net income attributable to common shares $ 7,336 $ 2,830 $ 23,057 $ 12,378 Basic weighted-average common shares outstanding 15,703,932 15,778,391 15,806,897 14,388,797 Dilutive effect of potential common stock arising from stock options 6,413 1,330 6,232 4,632 Diluted weighted-average common shares outstanding 15,710,345 15,779,721 15,813,129 14,393,429 Diluted earnings per common share (a) $ 0.47 $ 0.18 $ 1.46 $ 0.86 Weighted-average nonvested restricted shares outstanding 133,053 102,629 129,456 85,611 (a) Basic and diluted earnings per share under the two-class method are determined on net income reported on the consolidated statements of income, less earnings allocated to non-vested restricted shares with nonforfeitable dividends (participating securities). |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
COMPREHENSIVE INCOME | |
Schedule of the components of other comprehensive income (loss), and the related tax effects | (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended September 30, 2021 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (3,608) $ 759 $ (2,849) Reclassification adjustment for (gains) realized in income (23) 5 (18) Other comprehensive loss from available-for-sale debt securities (3,631) 764 (2,867) Unfunded pension and postretirement obligations, Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (5) 1 (4) Total other comprehensive loss $ (3,636) $ 765 $ (2,871) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended September 30, 2020 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (95) $ 19 $ (76) Reclassification adjustment for (gains) realized in income (25) 5 (20) Other comprehensive loss from available-for-sale debt securities (120) 24 (96) Unfunded pension and postretirement obligations, Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (8) 2 (6) Total other comprehensive loss $ (128) $ 26 $ (102) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Nine Months Ended September 30, 2021 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (6,781) $ 1,425 $ (5,356) Reclassification adjustment for (gains) realized in income (25) 5 (20) Other comprehensive loss from available-for-sale debt securities (6,806) 1,430 (5,376) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses (5) 1 (4) Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (13) 3 (10) Other comprehensive loss on unfunded retirement obligations (18) 4 (14) Total other comprehensive loss $ (6,824) $ 1,434 $ (5,390) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Nine Months Ended September 30, 2020 Available-for-sale debt securities: Unrealized holding gains on available-for-sale debt securities $ 9,980 $ (2,095) $ 7,885 Reclassification adjustment for (gains) realized in income (25) 5 (20) Other comprehensive income from available-for-sale debt securities 9,955 (2,090) 7,865 Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 88 (18) 70 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (22) 5 (17) Other comprehensive income on unfunded retirement obligations 66 (13) 53 Total other comprehensive income $ 10,021 $ (2,103) $ 7,918 |
Schedule of components of other comprehensive income (loss) and affected line item in the consolidated statements of income | Affected Line Item in the Description Consolidated Statements of Income Reclassification adjustment for (gains) realized in income (before-tax) Realized gains on available-for-sale debt securities, net Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (before-tax) Other noninterest expense Income tax effect Income tax provision |
Schedule of changes in the components of accumulated other comprehensive income (loss) | (In Thousands) Accumulated Unrealized Unfunded Other Losses Retirement Comprehensive on Securities Obligations Income Three Months Ended September 30, 2021 Balance, beginning of period $ 9,167 $ 109 $ 9,276 Other comprehensive loss during three months ended September 30, 2021 (2,867) (4) (2,871) Balance, end of period $ 6,300 $ 105 $ 6,405 Three Months Ended September 30, 2020 Balance, beginning of period $ 11,472 $ 239 $ 11,711 Other comprehensive loss during three months ended September 30, 2020 (96) (6) (102) Balance, end of period $ 11,376 $ 233 $ 11,609 (In Thousands) Unrealized Accumulated Gains Unfunded Other (Losses) Retirement Comprehensive on Securities Obligations Income Nine Months Ended September 30, 2021 Balance, beginning of period $ 11,676 $ 119 $ 11,795 Other comprehensive loss during nine months ended September 30, 2021 (5,376) (14) (5,390) Balance, end of period $ 6,300 $ 105 $ 6,405 Nine Months Ended September 30, 2020 Balance, beginning of period $ 3,511 $ 180 $ 3,691 Other comprehensive income during nine months ended September 30, 2020 7,865 53 7,918 Balance, end of period $ 11,376 $ 233 $ 11,609 |
CASH AND DUE FROM BANKS (Tables
CASH AND DUE FROM BANKS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
CASH AND DUE FROM BANKS | |
Schedule of cash and due from banks | (In Thousands) September 30, December 31, 2021 2020 Cash and cash equivalents $ 190,155 $ 96,017 Certificates of deposit 8,840 5,840 Total cash and due from banks $ 198,995 $ 101,857 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
SECURITIES | |
Schedule of amortized cost and fair value of available-for-sale debt securities | (In Thousands) September 30, 2021 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 25,088 $ 60 $ (80) $ 25,068 Obligations of U.S. Government agencies 23,935 666 (289) 24,312 Obligations of states and political subdivisions: Tax-exempt 135,362 4,390 (508) 139,244 Taxable 69,426 1,516 (449) 70,493 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 59,920 978 (269) 60,629 Residential collateralized mortgage obligations 43,811 820 (38) 44,593 Commercial mortgage-backed securities 72,341 1,963 (786) 73,518 Total available-for-sale debt securities $ 429,883 $ 10,393 $ (2,419) $ 437,857 (In Thousands) December 31, 2020 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 12,184 $ 0 $ (2) $ 12,182 Obligations of U.S. Government agencies 25,349 1,003 (8) 26,344 Obligations of states and political subdivisions: Tax-exempt 116,427 6,000 (26) 122,401 Taxable 45,230 2,246 (24) 47,452 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 36,853 1,323 0 38,176 Residential collateralized mortgage obligations 56,048 1,428 (9) 57,467 Commercial mortgage-backed securities 42,461 2,849 0 45,310 Total available-for-sale debt securities $ 334,552 $ 14,849 $ (69) $ 349,332 |
Schedule of gross unrealized losses and fair value of available-for-sale debt securities | September 30, 2021 Less Than 12 Months 12 Months or More Total (In Thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Obligations of the U.S. Treasury $ 11,001 $ (80) $ 0 $ 0 $ 11,001 $ (80) Obligations of U.S. Government agencies 12,210 (289) 0 0 12,210 (289) Obligations of states and political subdivisions: Tax-exempt 41,145 (508) 0 0 41,145 (508) Taxable 25,561 (365) 2,200 (84) 27,761 (449) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 36,651 (269) 0 0 36,651 (269) Residential collateralized mortgage obligations 4,745 (38) 0 0 4,745 (38) Commercial mortgage-backed securities 34,931 (786) 0 0 34,931 (786) Total temporarily impaired available-for-sale debt securities $ 166,244 $ (2,335) $ 2,200 $ (84) $ 168,444 $ (2,419) December 31, 2020 Less Than 12 Months 12 Months or More Total (In Thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Obligations of the U.S. Treasury $ 9,159 $ (2) $ 0 $ 0 $ 9,159 $ (2) Obligations of U.S. Government agencies 4,992 (8) 0 0 4,992 (8) Obligations of states and political subdivisions: Tax-exempt 3,811 (26) 0 0 3,811 (26) Taxable 5,235 (24) 0 0 5,235 (24) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, Residential collateralized mortgage obligations 2,861 (9) 0 0 2,861 (9) Total temporarily impaired available-for-sale debt securities $ 26,058 $ (69) $ 0 $ 0 $ 26,058 $ (69) |
Schedule of gross realized gains and losses from available-for-sale | (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Gross realized gains from sales $ 23 $ 26 $ 27 $ 78 Gross realized losses from sales 0 (1) (2) (53) Net realized gains $ 23 $ 25 $ 25 $ 25 |
Schedule of the amortized cost and fair value of available-for-sale debt securities by contractual maturity | (In Thousands) September 30, 2021 Amortized Fair Cost Value Due in one year or less $ 15,531 $ 15,641 Due from one year through five years 51,151 52,150 Due from five years through ten years 65,651 67,498 Due after ten years 121,478 123,828 Sub-total 253,811 259,117 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 59,920 60,629 Residential collateralized mortgage obligations 43,811 44,593 Commercial mortgage-backed securities 72,341 73,518 Total $ 429,883 $ 437,857 |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
LOANS | |
Summary of loans outstanding | Summary of Loans by Type (In Thousands) September 30, December 31, 2021 2020 Commercial: Commercial loans secured by real estate $ 553,389 $ 531,810 Commercial and industrial 152,244 159,577 Paycheck Protection Program - 1st Draw 5,747 132,269 Paycheck Protection Program - 2nd Draw 56,981 0 Political subdivisions 73,503 53,221 Commercial construction and land 53,267 42,874 Loans secured by farmland 10,812 11,736 Multi-family (5 or more) residential 52,962 55,811 Agricultural loans 3,092 3,164 Other commercial loans 17,312 17,289 Total commercial 979,309 1,007,751 Residential mortgage: Residential mortgage loans - first liens 494,376 532,947 Residential mortgage loans - junior liens 24,303 27,311 Home equity lines of credit 38,465 39,301 1-4 Family residential construction 21,719 20,613 Total residential mortgage 578,863 620,172 Consumer 17,536 16,286 Total 1,575,708 1,644,209 Less: allowance for loan losses (12,700) (11,385) Loans, net $ 1,563,008 $ 1,632,824 |
Schedule of adjustments to the initial market rate and credit fair value adjustments recognized | (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ (5) $ (1,103) $ 718 $ (1,415) Market rate adjustment recorded in acquisition 0 2,909 0 2,909 Amortization recognized in interest income (368) (452) (1,091) (140) Adjustments to gross amortized cost of loans at end of period $ (373) $ 1,354 $ (373) $ 1,354 Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (4,502) $ (878) $ (5,979) $ (1,216) Credit adjustment recorded in acquisition 0 (7,219) 0 (7,219) Accretion recognized in interest income 666 970 2,143 1,308 Adjustments to gross amortized cost of loans at end of period $ (3,836) $ (7,127) $ (3,836) $ (7,127) |
Schedule of PCI loans | (In Thousands) September 30, December 31, 2021 2020 Outstanding balance $ 10,064 $ 10,316 Carrying amount 6,624 6,841 |
Schedule of transactions within the allowance for loan losses | Three Months Ended September 30, 2021 June 30, 2021 September 30, 2021 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 3,452 $ 0 $ 0 $ 368 $ 3,820 Commercial and industrial 2,781 (1,194) 6 947 2,540 Commercial construction and land 452 0 0 107 559 Loans secured by farmland 113 0 0 (1) 112 Multi-family (5 or more) residential 150 0 0 46 196 Agricultural loans 25 0 0 8 33 Other commercial loans 145 0 0 28 173 Total commercial 7,118 (1,194) 6 1,503 7,433 Residential mortgage: Residential mortgage loans - first liens 3,536 0 1 29 3,566 Residential mortgage loans - junior liens 327 0 0 (6) 321 Home equity lines of credit 294 0 0 (11) 283 1-4 Family residential construction 198 0 0 (9) 189 Total residential mortgage 4,355 0 1 3 4,359 Consumer 231 (26) 8 24 237 Unallocated 671 0 0 0 671 Total Allowance for Loan Losses $ 12,375 $ (1,220) $ 15 $ 1,530 $ 12,700 Three Months Ended September 30, 2020 June 30, 2020 September 30, 2020 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 2,426 $ 0 $ 0 $ (40) $ 2,386 Commercial and industrial 2,496 (2,219) 0 1,974 2,251 Commercial construction and land 420 0 0 20 440 Loans secured by farmland 146 0 0 (25) 121 Multi-family (5 or more) residential 163 0 0 64 227 Agricultural loans 40 0 0 (3) 37 Other commercial loans 167 0 0 0 167 Total commercial 5,858 (2,219) 0 1,990 5,629 Residential mortgage: Residential mortgage loans - first liens 3,531 0 26 (92) 3,465 Residential mortgage loans - junior liens 365 0 0 (7) 358 Home equity lines of credit 287 0 1 1 289 1-4 Family residential construction 137 0 0 32 169 Total residential mortgage 4,320 0 27 (66) 4,281 Consumer 263 (30) 8 17 258 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 11,026 $ (2,249) $ 35 $ 1,941 $ 10,753 December 31, September 30, Nine Months Ended September 30, 2021 2020 Provision 2021 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 3,051 $ 0 $ 2 $ 767 $ 3,820 Commercial and industrial 2,245 (1,194) 20 1,469 2,540 Commercial construction and land 454 0 0 105 559 Loans secured by farmland 120 0 0 (8) 112 Multi-family (5 or more) residential 236 0 0 (40) 196 Agricultural loans 34 0 0 (1) 33 Other commercial loans 168 0 0 5 173 Total commercial 6,308 (1,194) 22 2,297 7,433 Residential mortgage: Residential mortgage loans - first liens 3,524 (11) 3 50 3,566 Residential mortgage loans - junior liens 349 0 0 (28) 321 Home equity lines of credit 281 0 2 0 283 1-4 Family residential construction 99 0 0 90 189 Total residential mortgage 4,253 (11) 5 112 4,359 Consumer 239 (73) 33 38 237 Unallocated 585 0 0 86 671 Total Allowance for Loan Losses $ 11,385 $ (1,278) $ 60 $ 2,533 $ 12,700 December 31, September 30, Nine Months Ended September 30, 2020 2019 Provision 2020 (In Thousands) Balance Charge-offs Recoveries (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 1,921 $ 0 $ 0 $ 465 $ 2,386 Commercial and industrial 1,391 (2,236) 0 3,096 2,251 Commercial construction and land 966 (107) 0 (419) 440 Loans secured by farmland 158 0 0 (37) 121 Multi-family (5 or more) residential 156 0 0 71 227 Agricultural loans 41 0 0 (4) 37 Other commercial loans 155 0 0 12 167 Total commercial 4,788 (2,343) 0 3,184 5,629 Residential mortgage: Residential mortgage loans - first liens 3,405 0 28 32 3,465 Residential mortgage loans - junior liens 384 0 1 (27) 358 Home equity lines of credit 276 0 3 10 289 1-4 Family residential construction 117 0 0 52 169 Total residential mortgage 4,182 0 32 67 4,281 Consumer 281 (100) 35 42 258 Unallocated 585 0 0 0 585 Total Allowance for Loan Losses $ 9,836 $ (2,443) $ 67 $ 3,293 $ 10,753 |
Schedule of aggregate credit quality classification of outstanding loans by risk | September 30, 2021 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 519,673 $ 15,055 $ 14,473 $ 0 $ 4,188 $ 553,389 Commercial and Industrial 136,858 8,578 6,028 0 780 152,244 Paycheck Protection Program - 1st Draw 5,747 0 0 0 0 5,747 Paycheck Protection Program - 2nd Draw 56,981 0 0 0 0 56,981 Political subdivisions 73,503 0 0 0 0 73,503 Commercial construction and land 52,504 715 48 0 0 53,267 Loans secured by farmland 9,639 194 979 0 0 10,812 Multi-family (5 or more) residential 48,154 2,352 878 0 1,578 52,962 Agricultural loans 2,533 0 559 0 0 3,092 Other commercial loans 17,307 5 0 0 0 17,312 Total commercial 922,899 26,899 22,965 0 6,546 979,309 Residential Mortgage: Residential mortgage loans - first liens 482,710 5,066 6,528 0 72 494,376 Residential mortgage loans - junior liens 23,676 107 514 0 6 24,303 Home equity lines of credit 37,889 59 517 0 0 38,465 1-4 Family residential construction 21,719 0 0 0 0 21,719 Total residential mortgage 565,994 5,232 7,559 0 78 578,863 Consumer 17,505 0 31 0 0 17,536 Totals $ 1,506,398 $ 32,131 $ 30,555 $ 0 $ 6,624 $ 1,575,708 December 31, 2020 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 494,876 $ 17,374 $ 15,262 $ 0 $ 4,298 $ 531,810 Commercial and Industrial 143,500 8,025 7,268 0 784 159,577 Paycheck Protection Program - 1st Draw 132,269 0 0 0 0 132,269 Political subdivisions 53,221 0 0 0 0 53,221 Commercial construction and land 42,110 715 49 0 0 42,874 Loans secured by farmland 10,473 405 858 0 0 11,736 Multi-family (5 or more) residential 50,563 2,405 1,229 0 1,614 55,811 Agricultural loans 2,569 0 595 0 0 3,164 Other commercial loans 17,289 0 0 0 0 17,289 Total commercial 946,870 28,924 25,261 0 6,696 1,007,751 Residential Mortgage: Residential Mortgage loans - first liens 516,685 6,192 9,994 0 76 532,947 Residential Mortgage loans - junior liens 26,480 141 621 0 69 27,311 Home equity lines of credit 38,529 59 713 0 0 39,301 1-4 Family residential construction 20,613 0 0 0 0 20,613 Total residential mortgage 602,307 6,392 11,328 0 145 620,172 Consumer 16,172 0 114 0 0 16,286 Totals $ 1,565,349 $ 35,316 $ 36,703 $ 0 $ 6,841 $ 1,644,209 |
Summary of loan balances and the related allowance for loan losses | September 30, 2021 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 11,303 $ 542,086 $ 553,389 $ 672 $ 3,148 $ 3,820 Commercial and industrial 3,598 148,646 152,244 72 2,468 2,540 Paycheck Protection Program - 1st Draw 0 5,747 5,747 0 0 0 Paycheck Protection Program - 2nd Draw 0 56,981 56,981 0 0 0 Political subdivisions 0 73,503 73,503 0 0 0 Commercial construction and land 0 53,267 53,267 0 559 559 Loans secured by farmland 84 10,728 10,812 0 112 112 Multi-family (5 or more) residential 1,578 51,384 52,962 0 196 196 Agricultural loans 0 3,092 3,092 0 33 33 Other commercial loans 0 17,312 17,312 0 173 173 Total commercial 16,563 962,746 979,309 744 6,689 7,433 Residential mortgage: Residential mortgage loans - first liens 1,134 493,242 494,376 0 3,566 3,566 Residential mortgage loans - junior liens 317 23,986 24,303 139 182 321 Home equity lines of credit 0 38,465 38,465 0 283 283 1-4 Family residential construction 0 21,719 21,719 0 189 189 Total residential mortgage 1,451 577,412 578,863 139 4,220 4,359 Consumer 0 17,536 17,536 0 237 237 Unallocated 671 Total $ 18,014 $ 1,557,694 $ 1,575,708 $ 883 $ 11,146 $ 12,700 December 31, 2020 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 11,962 $ 519,848 $ 531,810 $ 692 $ 2,359 $ 3,051 Commercial and industrial 1,359 158,218 159,577 71 2,174 2,245 Paycheck Protection Program - 1st Draw 0 132,269 132,269 0 0 0 Political subdivisions 0 53,221 53,221 0 0 0 Commercial construction and land 0 42,874 42,874 0 454 454 Loans secured by farmland 84 11,652 11,736 0 120 120 Multi-family (5 or more) residential 1,614 54,197 55,811 0 236 236 Agricultural loans 0 3,164 3,164 0 34 34 Other commercial loans 0 17,289 17,289 0 168 168 Total commercial 15,019 992,732 1,007,751 763 5,545 6,308 Residential mortgage: Residential mortgage loans - first liens 2,385 530,562 532,947 9 3,515 3,524 Residential mortgage loans - junior liens 414 26,897 27,311 153 196 349 Home equity lines of credit 0 39,301 39,301 0 281 281 1-4 Family residential construction 0 20,613 20,613 0 99 99 Total residential mortgage 2,799 617,373 620,172 162 4,091 4,253 Consumer 0 16,286 16,286 0 239 239 Unallocated 585 Total $ 17,818 $ 1,626,391 $ 1,644,209 $ 925 $ 9,875 $ 11,385 |
Summary of information related to impaired loans | (In Thousands) September 30, 2021 December 31, 2020 Unpaid Unpaid Principal Recorded Related Principal Recorded Related Balance Investment Allowance Balance Investment Allowance With no related allowance recorded: Commercial loans secured by real estate $ 7,068 $ 4,823 $ 0 $ 7,168 $ 5,398 $ 0 Commercial and industrial 5,930 3,526 0 1,781 1,287 0 Residential mortgage loans - first liens 786 760 0 1,248 1,248 0 Residential mortgage loans - junior liens 65 18 0 160 105 0 Loans secured by farmland 84 84 0 84 84 0 Multi-family (5 or more) residential 2,734 1,578 0 2,770 1,614 0 Total with no related allowance recorded 16,667 10,789 0 13,211 9,736 0 With a related allowance recorded: Commercial loans secured by real estate 6,480 6,480 672 6,501 6,501 691 Commercial and industrial 72 72 72 72 72 72 Residential mortgage loans - first liens 374 374 0 1,200 1,200 9 Residential mortgage loans - junior liens 299 299 139 309 309 153 Total with a related allowance recorded 7,225 7,225 883 8,082 8,082 925 Total $ 23,892 $ 18,014 $ 883 $ 21,293 $ 17,818 $ 925 |
Schedule of average balance of impaired loans and interest income recognized on impaired loans | (In Thousands) Interest Income Recognized on Average Investment in Impaired Loans Impaired Loans on a Cash Basis Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 2021 2020 2021 2020 Commercial: Commercial loans secured by real estate $ 11,252 $ 7,298 $ 11,811 $ 3,779 $ 172 $ 65 $ 401 $ 81 Commercial and industrial 3,844 2,235 2,566 3,178 4 1 25 21 Commercial construction and land 48 49 48 678 2 1 2 14 Loans secured by farmland 84 253 84 397 0 2 1 26 Multi-family (5 or more) residential 1,578 0 1,584 0 31 0 122 0 Agricultural loans 66 76 67 76 0 2 3 4 Other commercial loans 0 0 0 25 0 0 0 1 Total commercial 16,872 9,911 16,160 8,133 209 71 554 147 Residential mortgage: Residential mortgage loans - first lien 1,322 2,159 1,830 1,579 11 27 68 70 Residential mortgage loans - junior lien 386 384 417 386 1 5 10 18 Home equity lines of credit 0 65 0 65 0 0 0 2 Total residential mortgage 1,708 2,608 2,247 2,030 12 32 78 90 Total $ 18,580 $ 12,519 $ 18,407 $ 10,163 $ 221 $ 103 $ 632 $ 237 |
Schedule of breakdown by portfolio segment and class of non accrual loans | (In Thousands) September 30, 2021 December 31, 2020 Past Due Past Due 90+ Days and 90+ Days and Accruing Nonaccrual Accruing Nonaccrual Commercial: Commercial loans secured by real estate $ 752 $ 11,205 $ 395 $ 11,550 Commercial and industrial 99 3,232 142 970 Commercial construction and land 0 48 0 49 Loans secured by farmland 30 84 188 84 Multi-family (5 or more) residential 0 1,578 0 1,614 Agricultural loans 66 0 0 0 Other commercial 0 0 71 0 Total commercial 947 16,147 796 14,267 Residential mortgage: Residential mortgage loans - first liens 832 4,569 838 6,387 Residential mortgage loans - junior liens 71 305 52 378 Home equity lines of credit 64 289 233 299 Total residential mortgage 967 5,163 1,123 7,064 Consumer 10 31 56 85 Totals $ 1,924 $ 21,341 $ 1,975 $ 21,416 |
Summary of the contractual aging of loans | (In Thousands) As of September 30, 2021 As of December 31, 2020 Current & Current & Past Due Past Due Past Due Past Due Past Due Past Due Less than 30-89 90+ Less than 30-89 90+ 30 Days Days Days Total 30 Days Days Days Total Commercial: Commercial loans secured by real estate $ 547,885 $ 142 $ 5,362 $ 553,389 $ 529,998 $ 66 $ 1,746 $ 531,810 Commercial and industrial 151,119 218 907 152,244 158,523 55 999 159,577 Paycheck Protection Program - 1st Draw 5,747 0 0 5,747 132,269 0 0 132,269 Paycheck Protection Program - 2nd Draw 56,981 0 0 56,981 0 0 0 0 Political subdivisions 73,503 0 0 73,503 53,221 0 0 53,221 Commercial construction and land 53,125 142 0 53,267 42,590 284 0 42,874 Loans secured by farmland 10,667 31 114 10,812 11,419 95 222 11,736 Multi-family (5 or more) residential 52,962 0 0 52,962 53,860 1,951 0 55,811 Agricultural loans 3,026 0 66 3,092 3,091 2 71 3,164 Other commercial loans 17,312 0 0 17,312 17,289 0 0 17,289 Total commercial 972,327 533 6,449 979,309 1,002,260 2,453 3,038 1,007,751 Residential mortgage: Residential mortgage loans - first liens 489,339 2,212 2,825 494,376 523,191 5,703 4,053 532,947 Residential mortgage loans - junior liens 24,200 32 71 24,303 27,009 111 191 27,311 Home equity lines of credit 38,059 342 64 38,465 38,919 101 281 39,301 1-4 Family residential construction 21,719 0 0 21,719 20,457 156 0 20,613 Total residential mortgage 573,317 2,586 2,960 578,863 609,576 6,071 4,525 620,172 Consumer 17,447 48 41 17,536 16,063 83 140 16,286 Totals $ 1,563,091 $ 3,167 $ 9,450 $ 1,575,708 $ 1,627,899 $ 8,607 $ 7,703 $ 1,644,209 |
Summary of the contractual aging of nonaccrual loans | (In Thousands) Current & Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Total September 30, 2021 Nonaccrual Totals $ 12,787 $ 1,028 $ 7,526 $ 21,341 December 31, 2020 Nonaccrual Totals $ 12,999 $ 2,689 $ 5,728 $ 21,416 |
Summary of troubled debt restructurings | (In Thousands) Current & Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Nonaccrual Total September 30, 2021 Totals $ 144 $ 88 $ 134 $ 5,457 $ 5,823 December 31, 2020 Totals $ 166 $ 0 $ 418 $ 6,867 $ 7,451 |
Summary of loans for which modifications considered to be TDRs were entered into within the previous 12 months | (Balances in Thousands) Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Number Number of Recorded of Recorded Loans Investment Loans Investment Commercial loans secured by real estate 0 $ 0 1 $ 240 Total 0 $ 0 1 $ 240 (Balances in Thousands) Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Number Number of Recorded of Recorded Loans Investment Loans Investment Commercial loans secured by real estate 1 $ 3,392 1 $ 240 Total 1 $ 3,392 1 $ 240 |
Schedule of carrying amount of foreclosed residential real estate properties | (In Thousands) September 30, December 31, 2021 2020 Foreclosed residential real estate $ 179 $ 80 |
Schedule of mortgage loans secured by residential real properties | (In Thousands) September 30, December 31, 2021 2020 Residential real estate in process of foreclosure $ 1,392 $ 1,246 |
Troubled Debt Restructuring | |
LOANS | |
Summary of troubled debt restructurings | (Balances in Thousands) Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Post- Post- Number Modification Number Modification of Recorded of Recorded Loans Investment Loans Investment Home equity lines of credit, Reduced monthly payments for an eighteen-month period 1 $ 70 0 $ 0 Commercial loans secured by real estate, Principal and interest payment deferral non-COVID related 0 0 2 4,831 Multi-family (5 or more) residential, Principal and interest payment deferral non-COVID related 0 0 3 2,170 Total 1 $ 70 5 $ 7,001 (Balances in Thousands) Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Post- Post- Number Modification Number Modification of Recorded of Recorded Loans Investment Loans Investment Residential mortgage - first liens: Reduced monthly payments and extended maturity date 1 $ 12 0 $ 0 Reduced monthly payments for a fifteen-month period 1 116 0 0 Residential mortgage - junior liens, New loan at lower than risk-adjusted market rate to borrower from whom short sale of other collateral was accepted 0 0 1 30 Home equity lines of credit: Reduced monthly payments and extended maturity date 1 24 0 0 Reduced monthly payments for an eighteen-month period 1 70 0 0 Commercial loans secured by real estate: Interest only payments for a nine-month period 0 0 1 240 Principal and interest payment deferral non-COVID related 0 0 2 4,831 Multi-family (5 or more) residential, Principal and interest payment deferral non-COVID related 0 0 3 2,170 Total 4 $ 222 7 $ 7,271 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of core deposit intangibles | (In Thousands) September 30, December 31, 2021 2020 Gross amount $ 6,639 $ 6,639 Accumulated amortization (3,189) (2,788) Net $ 3,450 $ 3,851 |
Schedule of amortization expense related to core deposit intangibles is included in other noninterest expense in the consolidated statements of income | (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Amortization expense $ 133 $ 208 $ 401 $ 332 |
Schedule of changes in the carrying amount of goodwill | (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Balance, beginning of period $ 52,505 $ 28,388 $ 52,505 $ 28,388 Goodwill arising in business combination 0 24,138 0 24,138 Balance, end of period $ 52,505 $ 52,526 $ 52,505 $ 52,526 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
BORROWED FUNDS | |
Schedule of short term borrowings | (In Thousands) September 30, December 31, 2021 2020 FHLB-Pittsburgh borrowings $ 0 $ 18,066 Customer repurchase agreements 1,875 1,956 Total short-term borrowings $ 1,875 $ 20,022 |
Schedule of long term borrowings | (In Thousands) September 30, December 31, 2021 2020 Loans maturing in 2021 with a weighted-average rate of 0.94% $ 10,520 $ 26,098 Loans maturing in 2022 with a weighted-average rate of 0.60% 15,510 15,682 Loans maturing in 2023 with a weighted-average rate of 0.73% 7,145 7,224 Loans maturing in 2024 with a weighted-average rate of 0.75% 5,109 5,137 Loan maturing in 2025 with an average rate of 4.91% 396 467 Total long-term FHLB-Pittsburgh borrowings $ 38,680 $ 54,608 |
Schedule of outstanding senior notes | (In Thousands) September 30, December 31, 2021 2020 Senior Notes with an aggregate par value of $15,000,000; bearing interest at 2.75% with an effective interest rate of 3.23%; maturing in June 2026 $ 14,685 $ 0 Total carrying value $ 14,685 $ 0 |
Schedule of outstanding subordinated debt | (In Thousands) September 30, December 31, 2021 2020 Agreements with an aggregate par value of $8,000,000; bearing interest at 6.25% with an effective interest rate of 5.49%; redeemed at par in June 2021 $ 0 $ 8,027 Agreements with an aggregate par value of $6,500,000; bearing interest at 6.50%; maturing in April 2027 and redeemable at par in April 2022 6,500 6,500 Agreement with a par value of $2,000,000; bearing interest at 6.50% with an effective interest rate of 5.60%; maturing in July 2027 and redeemable at par in July 2022 2,013 2,026 Agreements with a par value of $25,000,000; bearing interest at 3.25% with an effective interest rate of 3.74% ; maturing in June 2031 and redeemable at par in June 2026 24,475 0 Total carrying value $ 32,988 $ 16,553 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
STOCK-BASED COMPENSATION PLANS | |
Summary of restricted stock awards granted | (Dollars in Thousands) Aggregate Grant Date Number of Fair Shares Value 1st quarter 2021 awards: Time-based awards to independent directors 10,989 $ 220 Time-based awards to employees 46,178 924 Performance-based awards to employees 17,224 345 2nd quarter 2021 awards, Time-based awards to employees 4,000 100 Total 78,391 $ 1,589 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Summary of fair value of the Corporation's derivative financial instruments as well as their classification on the consolidated balance sheet | (In Thousands) At September 30, 2021 At December 31, 2020 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Notional Fair Notional Fair Notional Fair Notional Fair Amount Value (1) Amount Value (2) Amount Value (1) Amount Value (2) Interest rate swap agreements $ 61,995 $ 3,902 $ 61,995 $ 3,902 $ 67,870 $ 6,566 $ 67,870 $ 6,566 (1) Included in other assets in the consolidated balance sheets. (2) Included in accrued interest and other liabilities in the consolidated balance sheets. |
FAIR VALUE MEASUREMENTS AND F_2
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of assets measured at fair value and the valuation methods used | September 30, 2021 Quoted Prices Other in Active Observable Unobservable Total Markets Inputs Inputs Fair (In Thousands) (Level 1) (Level 2) (Level 3) Value Recurring fair value measurements, assets: AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of the U.S. Treasury $ 0 $ 25,068 $ 0 $ 25,068 Obligations of U.S. Government agencies 0 24,312 0 24,312 Obligations of states and political subdivisions: Tax-exempt 0 139,244 0 139,244 Taxable 0 70,493 0 70,493 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 60,629 0 60,629 Residential collateralized mortgage obligations 0 44,593 0 44,593 Commercial mortgage-backed securities 0 73,518 0 73,518 Total available-for-sale debt securities 0 437,857 0 437,857 Marketable equity security 981 0 0 981 Servicing rights 0 0 2,247 2,247 Interest rate swap agreements, assets 0 3,902 0 3,902 Total recurring fair value measurements, assets $ 981 $ 441,759 $ 2,247 $ 444,987 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 3,902 $ 0 $ 3,902 Nonrecurring fair value measurements, assets: Impaired loans with a valuation allowance $ 0 $ 0 $ 7,225 $ 7,225 Valuation allowance 0 0 (883) (883) Impaired loans, net 0 0 6,342 6,342 Foreclosed assets held for sale 0 0 1,374 1,374 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 7,716 $ 7,716 December 31, 2020 Quoted Prices Other in Active Observable Unobservable Total Markets Inputs Inputs Fair (In Thousands) (Level 1) (Level 2) (Level 3) Value Recurring fair value measurements, assets: AVAILABLE-FOR-SALE DEBT SECURITIES: Obligations of the U.S. Treasury $ 0 $ 12,182 $ 0 $ 12,182 Obligations of U.S. Government agencies 0 26,344 0 26,344 Obligations of states and political subdivisions: Tax-exempt 0 122,401 0 122,401 Taxable 0 47,452 0 47,452 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 38,176 0 38,176 Residential collateralized mortgage obligations 0 57,467 0 57,467 Commercial mortgage-backed securities 0 45,310 0 45,310 Total available-for-sale debt securities 0 349,332 0 349,332 Marketable equity security 1,000 0 0 1,000 Servicing rights 0 0 1,689 1,689 Interest rate swap agreements, assets 0 6,566 0 6,566 Total recurring fair value measurements, assets $ 1,000 $ 355,898 $ 1,689 $ 358,587 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 6,566 $ 0 $ 6,566 Nonrecurring fair value measurements, assets: Impaired loans with a valuation allowance $ 0 $ 0 $ 8,082 $ 8,082 Valuation allowance 0 0 (925) (925) Impaired loans, net 0 0 7,157 7,157 Foreclosed assets held for sale 0 0 1,338 1,338 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 8,495 $ 8,495 |
Schedule of reconciliation of level 3 activity | (In Thousands) Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Servicing rights balance, beginning of period $ 2,116 $ 1,284 $ 1,689 $ 1,277 Originations of servicing rights 176 374 567 777 Unrealized loss included in earnings (45) (221) (9) (617) Servicing rights balance, end of period $ 2,247 $ 1,437 $ 2,247 $ 1,437 |
Schedule of estimated fair values, and carrying amounts of financial instruments not recorded at fair value | (In Thousands) Fair Value September 30, 2021 December 31, 2020 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 190,155 $ 190,155 $ 96,017 $ 96,017 Certificates of deposit Level 2 8,840 8,949 5,840 6,054 Restricted equity securities (included in Other Assets) Level 2 9,650 9,650 9,970 9,970 Loans, net Level 3 1,563,008 1,586,592 1,632,824 1,646,207 Accrued interest receivable Level 2 7,307 7,307 8,293 8,293 Financial liabilities: Deposits with no stated maturity Level 2 1,637,463 1,637,463 1,430,062 1,430,062 Time deposits Level 2 302,678 304,330 390,407 393,566 Short-term borrowings Level 2 1,875 1,685 20,022 19,974 Long-term borrowings Level 2 38,680 39,229 54,608 55,723 Senior debt Level 2 14,685 15,000 0 0 Subordinated debt Level 2 32,988 33,150 16,553 16,680 Accrued interest payable Level 2 633 633 390 390 |
Recurring fair value measurements | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of inputs and valuation techniques | Fair Value at 9/30/2021 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 9/30/2021 Servicing rights $ 2,247 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 221.00 % Weighted-average PSA Servicing fees 0.25 % of loan balances 4.00 % of payments are late 5.00 % late fees assessed $ 1.94 Miscellaneous fees per account per month Servicing costs $ 6.00 Monthly servicing cost per account $ 24.00 Additional monthly servicing cost per loan on loans more than 30 days delinquent 1.50 % of loans more than 30 days delinquent 3.00 % annual increase in servicing costs Fair Value at 12/31/2020 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2020 Servicing rights $ 1,689 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 277.00 % Weighted-average PSA Servicing fees 0.25 % of loan balances 4.00 % of payments are late 5.00 % late fees assessed $ 1.94 Miscellaneous fees per account per month Servicing costs $ 6.00 Monthly servicing cost per account $ 24.00 Additional monthly servicing cost per loan on loans more than 30 days delinquent 1.50 % of loans more than 30 days delinquent 3.00 % annual increase in servicing costs |
Nonrecurring fair value measurements | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of inputs and valuation techniques | (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 9/30/2021 9/30/2021 9/30/2021 Technique Inputs 9/30/2021 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,480 $ 672 $ 5,808 Sales comparison Discount to appraised value 27 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Residential mortgage loans - first and junior liens 673 139 534 Sales comparison Discount to appraised value 33 % Total impaired loans $ 7,225 $ 883 $ 6,342 Foreclosed assets held for sale - real estate: Commercial real estate $ 1,195 $ 0 $ 1,195 Sales comparison Discount to appraised value 47 % Residential (1-4 family) 179 0 179 Sales comparison Discount to appraised value 52 % Total foreclosed assets held for sale $ 1,374 $ 0 $ 1,374 (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2020 12/31/2020 12/31/2020 Technique Inputs 12/31/2020 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,501 $ 691 $ 5,810 Sales comparison Discount to appraised value 28 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Residential mortgage loans - first and junior liens 1,509 162 1,347 Sales comparison Discount to appraised value 31 % Total impaired loans $ 8,082 $ 925 $ 7,157 Foreclosed assets held for sale - real estate: Commercial real estate $ 1,258 $ 0 $ 1,258 Sales comparison Discount to appraised value 44 % Residential (1-4 family) 80 0 80 Sales comparison Discount to appraised value 36 % Total foreclosed assets held for sale $ 1,338 $ 0 $ 1,338 |
BUSINESS COMBINATIONS - Covenan
BUSINESS COMBINATIONS - Covenant Acquisition (Details) - USD ($) | Jul. 01, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
BUSINESS COMBINATIONS | |||||||||
Goodwill | $ 52,505,000 | $ 52,526,000 | $ 52,505,000 | $ 52,526,000 | $ 52,505,000 | $ 52,505,000 | $ 28,388,000 | $ 28,388,000 | |
Merger-related expenses | $ 0 | 6,402,000 | 0 | 7,526,000 | |||||
Covenant Financial Inc. | |||||||||
BUSINESS COMBINATIONS | |||||||||
Goodwill | $ 24,100,000 | ||||||||
Loans | 464,200,000 | ||||||||
Deposits | 481,800,000 | ||||||||
Borrowings | 64,000,000 | ||||||||
Subordinated debt | 10,100,000 | ||||||||
Available-for-sale debt securities | 10,800,000 | ||||||||
Bank owned life insurance | $ 11,200,000 | ||||||||
Refinement term of assets and liabilities | 1 year | ||||||||
Merger-related expenses | $ 6,402,000 | $ 0 | $ 7,526,000 | ||||||
Covenant Financial Inc. | Core Deposits | |||||||||
BUSINESS COMBINATIONS | |||||||||
Core deposit intangible asset | $ 3,100,000 |
PER SHARE DATA (Details)
PER SHARE DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Basic | ||||
Net income | $ 7,399 | $ 2,848 | $ 23,246 | $ 12,452 |
Less: Dividends and undistributed earnings allocated to participating securities | (63) | (18) | (189) | (74) |
Net income attributable to common shares | $ 7,336 | $ 2,830 | $ 23,057 | $ 12,378 |
Basic weighted-average common shares outstanding (in shares) | 15,703,932 | 15,778,391 | 15,806,897 | 14,388,797 |
Basic earnings per common share (in dollars per share) | $ 0.47 | $ 0.18 | $ 1.46 | $ 0.86 |
Diluted | ||||
Net income attributable to common shares | $ 7,336 | $ 2,830 | $ 23,057 | $ 12,378 |
Basic weighted-average common shares outstanding (in shares) | 15,703,932 | 15,778,391 | 15,806,897 | 14,388,797 |
Dilutive effect of potential common stock arising from stock options (in shares) | 6,413 | 1,330 | 6,232 | 4,632 |
Diluted weighted-average common shares outstanding (in shares) | 15,710,345 | 15,779,721 | 15,813,129 | 14,393,429 |
Diluted earnings per common share (in dollars per share) | $ 0.47 | $ 0.18 | $ 1.46 | $ 0.86 |
Weighted-average nonvested restricted shares outstanding (in shares) | 133,053 | 102,629 | 129,456 | 85,611 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 39,012 | 0 | 19,506 |
COMPREHENSIVE INCOME - Componen
COMPREHENSIVE INCOME - Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
COMPREHENSIVE INCOME | ||||
Unrealized holding income (losses) on available-for-sale debt securities | $ (3,608) | $ (95) | $ (6,781) | $ 9,980 |
Unrealized holding income (losses) on available-for-sale debt securities, Income Tax Effect | 759 | 19 | 1,425 | (2,095) |
Unrealized holding income (losses) on available-for-sale debt securities, Net of Tax Amount | (2,849) | (76) | (5,356) | 7,885 |
Reclassification adjustment for gains realized in income, Before-Tax Amount | (23) | (25) | (25) | (25) |
Reclassification adjustment for (gains) realized in income, Income Tax Effect | 5 | 5 | 5 | 5 |
Reclassification adjustment for (gains) realized in income. Net of Tax Amount | (18) | (20) | (20) | (20) |
Other comprehensive loss from available-for-sale debt securities, Before-Tax Amount | (3,631) | (120) | (6,806) | 9,955 |
Other comprehensive income on available-for-sale debt securities, income tax effect | 764 | 24 | 1,430 | (2,090) |
Other comprehensive loss from available-for-sale debt securities, Net-of-Tax Amount | (2,867) | (96) | (5,376) | 7,865 |
Changes from plan amendments and actuarial gains and losses, Before-Tax Amount | 0 | 0 | (5) | 88 |
Changes from plan amendments and actuarial gains and losses, Income Tax Effect | 1 | (18) | ||
Changes from plan amendments and actuarial gains and losses, Net-of-Tax Amount | (4) | 70 | ||
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Before-Tax Amount | (5) | (8) | (13) | (22) |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Income Tax Effect | 1 | 2 | 3 | 5 |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Net-of-Tax Amount | (4) | (6) | (10) | (17) |
Other comprehensive (loss) income on unfunded retirement obligations | (5) | (8) | (18) | 66 |
Other comprehensive income (loss) on unfunded retirement obligations, Income Tax Effect | 4 | (13) | ||
Other comprehensive income (loss) on unfunded retirement obligations, Net-of-Tax Amount | (14) | 53 | ||
Other comprehensive (loss) income before income tax | (3,636) | (128) | (6,824) | 10,021 |
Total other comprehensive income (loss), Income Tax Effect | 765 | 26 | 1,434 | (2,103) |
Total other comprehensive income (loss) | $ (2,871) | $ (102) | $ (5,390) | $ 7,918 |
COMPREHENSIVE INCOME - Changes
COMPREHENSIVE INCOME - Changes of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Balance | $ 304,133 | $ 255,791 | $ 299,756 | $ 244,452 |
Other comprehensive income (loss) during year | (2,871) | (102) | (5,390) | 7,918 |
Balance | 299,402 | 296,316 | 299,402 | 296,316 |
Unrealized Gains (Losses) on Securities | ||||
Balance | 9,167 | 11,472 | 11,676 | 3,511 |
Other comprehensive income (loss) during year | (2,867) | (96) | (5,376) | 7,865 |
Balance | 6,300 | 11,376 | 6,300 | 11,376 |
Unfunded Retirement Obligations | ||||
Balance | 109 | 239 | 119 | 180 |
Other comprehensive income (loss) during year | (4) | (6) | (14) | 53 |
Balance | 105 | 233 | 105 | 233 |
Accumulated Other Comprehensive Income (Loss) | ||||
Balance | 9,276 | 11,711 | 11,795 | 3,691 |
Other comprehensive income (loss) during year | (2,871) | (102) | (5,390) | 7,918 |
Balance | $ 6,405 | $ 11,609 | $ 6,405 | $ 11,609 |
CASH AND DUE FROM BANKS (Detail
CASH AND DUE FROM BANKS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
CASH AND DUE FROM BANKS | ||
Cash and cash equivalents | $ 190,155,000 | $ 96,017,000 |
Certificates of deposit | 8,840,000 | 5,840,000 |
Total cash and due from banks | 198,995,000 | 101,857,000 |
Cash Reserve Deposit Required and Made | $ 0 | $ 0 |
SECURITIES - Available-for-sale
SECURITIES - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | $ 429,883 | $ 334,552 |
Available-for-sale securities, gross unrealized holding gains | 10,393 | 14,849 |
Available-for-sale securities, gross unrealized holding losses | (2,419) | (69) |
Available-for-sale debt securities, fair value | 437,857 | 349,332 |
Obligations of the U.S. Treasury | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 25,088 | 12,184 |
Available-for-sale securities, gross unrealized holding gains | 60 | 0 |
Available-for-sale securities, gross unrealized holding losses | (80) | (2) |
Available-for-sale debt securities, fair value | 25,068 | 12,182 |
Obligations of U.S. Government agencies | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 23,935 | 25,349 |
Available-for-sale securities, gross unrealized holding gains | 666 | 1,003 |
Available-for-sale securities, gross unrealized holding losses | (289) | (8) |
Available-for-sale debt securities, fair value | 24,312 | 26,344 |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 135,362 | 116,427 |
Available-for-sale securities, gross unrealized holding gains | 4,390 | 6,000 |
Available-for-sale securities, gross unrealized holding losses | (508) | (26) |
Available-for-sale debt securities, fair value | 139,244 | 122,401 |
Obligations Of States And Political Subdivisions Taxable | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 69,426 | 45,230 |
Available-for-sale securities, gross unrealized holding gains | 1,516 | 2,246 |
Available-for-sale securities, gross unrealized holding losses | (449) | (24) |
Available-for-sale debt securities, fair value | 70,493 | 47,452 |
Residential Passthrough Securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 59,920 | 36,853 |
Available-for-sale securities, gross unrealized holding gains | 978 | 1,323 |
Available-for-sale securities, gross unrealized holding losses | (269) | 0 |
Available-for-sale debt securities, fair value | 60,629 | 38,176 |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 43,811 | 56,048 |
Available-for-sale securities, gross unrealized holding gains | 820 | 1,428 |
Available-for-sale securities, gross unrealized holding losses | (38) | (9) |
Available-for-sale debt securities, fair value | 44,593 | 57,467 |
Commercial Mortgage Backed Securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 72,341 | 42,461 |
Available-for-sale securities, gross unrealized holding gains | 1,963 | 2,849 |
Available-for-sale securities, gross unrealized holding losses | (786) | 0 |
Available-for-sale debt securities, fair value | $ 73,518 | $ 45,310 |
SECURITIES - Available-for-sa_2
SECURITIES - Available-for-sale Securities With Unrealized Loss Positions (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | $ 166,244 | $ 26,058 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (2,335) | (69) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 2,200 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (84) | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 168,444 | 26,058 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (2,419) | (69) |
Obligations of the U.S. Treasury | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 11,001 | 9,159 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (80) | (2) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 11,001 | 9,159 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (80) | (2) |
Obligations of U.S. Government agencies | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 12,210 | 4,992 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (289) | (8) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 12,210 | 4,992 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (289) | (8) |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 41,145 | 3,811 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (508) | (26) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 41,145 | 3,811 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (508) | (26) |
Obligations Of States And Political Subdivisions Taxable | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 25,561 | 5,235 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (365) | (24) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 2,200 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (84) | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 27,761 | 5,235 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (449) | (24) |
Residential Passthrough Securities | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 36,651 | |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (269) | |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | |
Available-for-sale securities with unrealized loss positions, fair value | 36,651 | |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (269) | |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 4,745 | 2,861 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (38) | (9) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 4,745 | 2,861 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (38) | $ (9) |
Commercial Mortgage Backed Securities | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 34,931 | |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (786) | |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 0 | |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | 0 | |
Available-for-sale securities with unrealized loss positions, fair value | 34,931 | |
Available-for-sale securities, with unrealized loss positions, unrealized losses | $ (786) |
SECURITIES - Gross Realized Gai
SECURITIES - Gross Realized Gains and Losses From Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
SECURITIES | ||||
Gross realized gains from sales | $ 23 | $ 26 | $ 27 | $ 78 |
Gross realized losses from sales | 0 | (1) | (2) | (53) |
Net realized gains | $ 23 | $ 25 | $ 25 | $ 25 |
SECURITIES - Available-for-sa_3
SECURITIES - Available-for-sale Debt Securities by Contractual Maturity (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-sale Securities | ||
Due in one year or less, amortized cost | $ 15,531,000 | |
Due in one year or less, fair value | 15,641,000 | |
Due from one year through five years. amortized cost | 51,151,000 | |
Due from one year through five years, fair value | 52,150,000 | |
Due from five years through ten years, amortized cost | 65,651,000 | |
Due from five years through ten years, fair value | 67,498,000 | |
Due after ten years, amortized cost | 121,478,000 | |
Due after ten years, fair value | 123,828,000 | |
Sub-total, amortized cost | 253,811,000 | |
Sub-total, fair value | 259,117,000 | |
Total, amortized cost | 429,883,000 | $ 334,552,000 |
Total, fair value | 437,857,000 | 349,332,000 |
Investment Securities | ||
Available-for-sale Securities | ||
Investment pledged as collateral | 254,062,000 | 247,373,000 |
Residential Passthrough Securities | ||
Available-for-sale Securities | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 59,920,000 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | 60,629,000 | |
Total, amortized cost | 59,920,000 | 36,853,000 |
Total, fair value | 60,629,000 | 38,176,000 |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 43,811,000 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | 44,593,000 | |
Total, amortized cost | 43,811,000 | 56,048,000 |
Total, fair value | 44,593,000 | $ 57,467,000 |
Commercial mortgage-backed securities | ||
Available-for-sale Securities | ||
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, amortized cost | 72,341,000 | |
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies, fair value | $ 73,518,000 |
SECURITIES - Equity Securities
SECURITIES - Equity Securities (Details) | Sep. 30, 2021USD ($)security | Dec. 31, 2020USD ($)security |
Mutual Fund | ||
Equity Securities | ||
Number of mutual funds | security | 1 | 1 |
Unrealized gain/loss on the mutual fund | $ 19,000 | $ 0 |
Other Assets | ||
Equity Securities | ||
Marketable equity security | 981,000 | 1,000,000 |
Other Assets | Federal Home Loan Bank of Pittsburgh | ||
Equity Securities | ||
Federal Home Loan Bank Stock | $ 9,400,000 | $ 9,720,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
LOANS | ||||||
Loans receivable | $ 1,575,708 | $ 1,644,209 | ||||
Allowance for loan losses | (12,700) | $ (12,375) | (11,385) | $ (10,753) | $ (11,026) | $ (9,836) |
Loans, net | 1,563,008 | 1,632,824 | ||||
Commercial | ||||||
LOANS | ||||||
Loans receivable | 979,309 | 1,007,751 | ||||
Allowance for loan losses | (7,433) | (7,118) | (6,308) | (5,629) | (5,858) | (4,788) |
Commercial | Real estate loan | ||||||
LOANS | ||||||
Loans receivable | 553,389 | 531,810 | ||||
Allowance for loan losses | (3,820) | (3,452) | (3,051) | (2,386) | (2,426) | (1,921) |
Commercial | Commercial and industrial | ||||||
LOANS | ||||||
Loans receivable | 152,244 | 159,577 | ||||
Allowance for loan losses | (2,540) | (2,781) | (2,245) | (2,251) | (2,496) | (1,391) |
Commercial | Paycheck Protection Program - 1st Draw | ||||||
LOANS | ||||||
Loans receivable | 5,747 | 132,269 | ||||
Allowance for loan losses | 0 | 0 | ||||
Commercial | Paycheck Protection Program - 2nd Draw | ||||||
LOANS | ||||||
Loans receivable | 56,981 | 0 | ||||
Allowance for loan losses | 0 | |||||
Commercial | Political subdivisions | ||||||
LOANS | ||||||
Loans receivable | 73,503 | 53,221 | ||||
Allowance for loan losses | 0 | 0 | ||||
Commercial | Construction Loans | ||||||
LOANS | ||||||
Loans receivable | 53,267 | 42,874 | ||||
Allowance for loan losses | (559) | (454) | ||||
Commercial | Commercial Construction And Land | ||||||
LOANS | ||||||
Allowance for loan losses | (559) | (452) | (454) | (440) | (420) | (966) |
Commercial | Loans secured by farm land | ||||||
LOANS | ||||||
Loans receivable | 10,812 | 11,736 | ||||
Allowance for loan losses | (112) | (113) | (120) | (121) | (146) | (158) |
Commercial | Multi-family (5 or more) residential | ||||||
LOANS | ||||||
Loans receivable | 52,962 | 55,811 | ||||
Allowance for loan losses | (196) | (150) | (236) | (227) | (163) | (156) |
Commercial | Agricultural loans | ||||||
LOANS | ||||||
Loans receivable | 3,092 | 3,164 | ||||
Allowance for loan losses | (33) | (25) | (34) | (37) | (40) | (41) |
Commercial | Other commercial loans | ||||||
LOANS | ||||||
Loans receivable | 17,312 | 17,289 | ||||
Allowance for loan losses | (173) | (145) | (168) | (167) | (167) | (155) |
Residential mortgage | ||||||
LOANS | ||||||
Loans receivable | 578,863 | 620,172 | ||||
Allowance for loan losses | (4,359) | (4,355) | (4,253) | (4,281) | (4,320) | (4,182) |
Residential mortgage | first liens | ||||||
LOANS | ||||||
Allowance for loan losses | (3,566) | (3,524) | (3,465) | (3,405) | ||
Residential mortgage | junior liens | ||||||
LOANS | ||||||
Allowance for loan losses | (321) | (349) | (358) | (384) | ||
Residential mortgage | Real estate loan | first liens | ||||||
LOANS | ||||||
Loans receivable | 494,376 | 532,947 | ||||
Allowance for loan losses | (3,566) | (3,536) | (3,524) | (3,465) | (3,531) | |
Residential mortgage | Real estate loan | junior liens | ||||||
LOANS | ||||||
Loans receivable | 24,303 | 27,311 | ||||
Allowance for loan losses | (321) | (327) | (349) | (358) | (365) | |
Residential mortgage | Construction Loans | ||||||
LOANS | ||||||
Loans receivable | 21,719 | 20,613 | ||||
Allowance for loan losses | (189) | (99) | ||||
Residential mortgage | Home equity lines of credit | ||||||
LOANS | ||||||
Loans receivable | 38,465 | 39,301 | ||||
Allowance for loan losses | (283) | (294) | (281) | (289) | (287) | (276) |
Consumer | ||||||
LOANS | ||||||
Loans receivable | 17,536 | 16,286 | ||||
Allowance for loan losses | $ (237) | $ (231) | $ (239) | $ (258) | $ (263) | $ (281) |
LOANS - Adjustments to Initial
LOANS - Adjustments to Initial Discounts and Carrying Amounts of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Market Rate Adjustment | ||||
LOANS | ||||
Adjustments to gross amortized cost of loans at beginning of period | $ (5) | $ (1,103) | $ 718 | $ (1,415) |
Adjustment recorded in acquisition | 0 | 2,909 | 0 | 2,909 |
(Amortization) accretion recognized in interest income | (368) | (452) | (1,091) | (140) |
Adjustments to gross amortized cost of loans at end of period | (373) | 1,354 | (373) | 1,354 |
Credit Adjustment on Non-impaired Loans | ||||
LOANS | ||||
Adjustments to gross amortized cost of loans at beginning of period | (4,502) | (878) | (5,979) | (1,216) |
Adjustment recorded in acquisition | 0 | (7,219) | 0 | (7,219) |
(Amortization) accretion recognized in interest income | 666 | 970 | 2,143 | 1,308 |
Adjustments to gross amortized cost of loans at end of period | $ (3,836) | $ (7,127) | $ (3,836) | $ (7,127) |
LOANS - Summary of PCI Loans He
LOANS - Summary of PCI Loans Held (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
LOANS | ||
Outstanding balance | $ 10,064 | $ 10,316 |
Carrying amount | $ 6,624 | $ 6,841 |
LOANS - Allowance for Loan Loss
LOANS - Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
LOANS | ||||
Allowance for Loan losses | $ 12,375,000 | $ 11,026,000 | $ 11,385,000 | $ 9,836,000 |
Allowance for Loan losses, Charge-offs | (1,220,000) | (2,249,000) | (1,278,000) | (2,443,000) |
Allowance for Loan losses, Recoveries | 15,000 | 35,000 | 60,000 | 67,000 |
Allowance for Loan losses, Provision (Credit) | 1,530,000 | 1,941,000 | 2,533,000 | 3,293,000 |
Allowance for Loan losses | 12,700,000 | 10,753,000 | 12,700,000 | 10,753,000 |
Commercial | ||||
LOANS | ||||
Allowance for Loan losses | 7,118,000 | 5,858,000 | 6,308,000 | 4,788,000 |
Allowance for Loan losses, Charge-offs | (1,194,000) | (2,219,000) | (1,194,000) | (2,343,000) |
Allowance for Loan losses, Recoveries | 6,000 | 0 | 22,000 | 0 |
Allowance for Loan losses, Provision (Credit) | 1,503,000 | 1,990,000 | 2,297,000 | 3,184,000 |
Allowance for Loan losses | 7,433,000 | 5,629,000 | 7,433,000 | 5,629,000 |
Commercial | Commercial loan of $3,500,000 | ||||
LOANS | ||||
Allowance for Loan losses, Charge-offs | (2,219,000) | (2,219,000) | ||
Commercial | Real estate loan | ||||
LOANS | ||||
Allowance for Loan losses | 3,452,000 | 2,426,000 | 3,051,000 | 1,921,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 2,000 | 0 |
Allowance for Loan losses, Provision (Credit) | 368,000 | (40,000) | 767,000 | 465,000 |
Allowance for Loan losses | 3,820,000 | 2,386,000 | 3,820,000 | 2,386,000 |
Commercial | Commercial and industrial | ||||
LOANS | ||||
Allowance for Loan losses | 2,781,000 | 2,496,000 | 2,245,000 | 1,391,000 |
Allowance for Loan losses, Charge-offs | (1,194,000) | (2,219,000) | (1,194,000) | (2,236,000) |
Allowance for Loan losses, Recoveries | 6,000 | 0 | 20,000 | 0 |
Allowance for Loan losses, Provision (Credit) | 947,000 | 1,974,000 | 1,469,000 | 3,096,000 |
Allowance for Loan losses | 2,540,000 | 2,251,000 | 2,540,000 | 2,251,000 |
Commercial | Construction Loans | ||||
LOANS | ||||
Allowance for Loan losses | 454,000 | |||
Allowance for Loan losses | 559,000 | 559,000 | ||
Commercial | Commercial Construction And Land | ||||
LOANS | ||||
Allowance for Loan losses | 452,000 | 420,000 | 454,000 | 966,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | (107,000) |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 107,000 | 20,000 | 105,000 | (419,000) |
Allowance for Loan losses | 559,000 | 440,000 | 559,000 | 440,000 |
Commercial | Loans secured by farm land | ||||
LOANS | ||||
Allowance for Loan losses | 113,000 | 146,000 | 120,000 | 158,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | (1,000) | (25,000) | (8,000) | (37,000) |
Allowance for Loan losses | 112,000 | 121,000 | 112,000 | 121,000 |
Commercial | Multi-family (5 or more) residential | ||||
LOANS | ||||
Allowance for Loan losses | 150,000 | 163,000 | 236,000 | 156,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 46,000 | 64,000 | (40,000) | 71,000 |
Allowance for Loan losses | 196,000 | 227,000 | 196,000 | 227,000 |
Commercial | Agricultural loans | ||||
LOANS | ||||
Allowance for Loan losses | 25,000 | 40,000 | 34,000 | 41,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 8,000 | (3,000) | (1,000) | (4,000) |
Allowance for Loan losses | 33,000 | 37,000 | 33,000 | 37,000 |
Commercial | Other commercial loans | ||||
LOANS | ||||
Allowance for Loan losses | 145,000 | 167,000 | 168,000 | 155,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 28,000 | 0 | 5,000 | 12,000 |
Allowance for Loan losses | 173,000 | 167,000 | 173,000 | 167,000 |
Residential mortgage | ||||
LOANS | ||||
Allowance for Loan losses | 4,355,000 | 4,320,000 | 4,253,000 | 4,182,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | (11,000) | 0 |
Allowance for Loan losses, Recoveries | 1,000 | 27,000 | 5,000 | 32,000 |
Allowance for Loan losses, Provision (Credit) | 3,000 | (66,000) | 112,000 | 67,000 |
Allowance for Loan losses | 4,359,000 | 4,281,000 | 4,359,000 | 4,281,000 |
Residential mortgage | first liens | ||||
LOANS | ||||
Allowance for Loan losses | 3,524,000 | 3,405,000 | ||
Allowance for Loan losses, Charge-offs | (11,000) | 0 | ||
Allowance for Loan losses, Recoveries | 3,000 | 28,000 | ||
Allowance for Loan losses, Provision (Credit) | 50,000 | 32,000 | ||
Allowance for Loan losses | 3,566,000 | 3,465,000 | 3,566,000 | 3,465,000 |
Residential mortgage | junior liens | ||||
LOANS | ||||
Allowance for Loan losses | 349,000 | 384,000 | ||
Allowance for Loan losses, Charge-offs | 0 | 0 | ||
Allowance for Loan losses, Recoveries | 0 | 1,000 | ||
Allowance for Loan losses, Provision (Credit) | (28,000) | (27,000) | ||
Allowance for Loan losses | 321,000 | 358,000 | 321,000 | 358,000 |
Residential mortgage | Real estate loan | first liens | ||||
LOANS | ||||
Allowance for Loan losses | 3,536,000 | 3,531,000 | 3,524,000 | |
Allowance for Loan losses, Charge-offs | 0 | 0 | ||
Allowance for Loan losses, Recoveries | 1,000 | 26,000 | ||
Allowance for Loan losses, Provision (Credit) | 29,000 | (92,000) | ||
Allowance for Loan losses | 3,566,000 | 3,465,000 | 3,566,000 | 3,465,000 |
Residential mortgage | Real estate loan | junior liens | ||||
LOANS | ||||
Allowance for Loan losses | 327,000 | 365,000 | 349,000 | |
Allowance for Loan losses, Charge-offs | 0 | 0 | ||
Allowance for Loan losses, Recoveries | 0 | 0 | ||
Allowance for Loan losses, Provision (Credit) | (6,000) | (7,000) | ||
Allowance for Loan losses | 321,000 | 358,000 | 321,000 | 358,000 |
Residential mortgage | Construction Loans | ||||
LOANS | ||||
Allowance for Loan losses | 99,000 | |||
Allowance for Loan losses | 189,000 | 189,000 | ||
Residential mortgage | Home equity lines of credit | ||||
LOANS | ||||
Allowance for Loan losses | 294,000 | 287,000 | 281,000 | 276,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 1,000 | 2,000 | 3,000 |
Allowance for Loan losses, Provision (Credit) | (11,000) | 1,000 | 0 | 10,000 |
Allowance for Loan losses | 283,000 | 289,000 | 283,000 | 289,000 |
Residential mortgage | 1-4 Family residential construction | ||||
LOANS | ||||
Allowance for Loan losses | 198,000 | 137,000 | 99,000 | 117,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | (9,000) | 32,000 | 90,000 | 52,000 |
Allowance for Loan losses | 189,000 | 169,000 | 189,000 | 169,000 |
Consumer | ||||
LOANS | ||||
Allowance for Loan losses | 231,000 | 263,000 | 239,000 | 281,000 |
Allowance for Loan losses, Charge-offs | (26,000) | (30,000) | (73,000) | (100,000) |
Allowance for Loan losses, Recoveries | 8,000 | 8,000 | 33,000 | 35,000 |
Allowance for Loan losses, Provision (Credit) | 24,000 | 17,000 | 38,000 | 42,000 |
Allowance for Loan losses | 237,000 | 258,000 | 237,000 | 258,000 |
Unallocated | ||||
LOANS | ||||
Allowance for Loan losses | 671,000 | 585,000 | 585,000 | 585,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 0 | 0 | 86,000 | 0 |
Allowance for Loan losses | $ 671,000 | $ 585,000 | $ 671,000 | $ 585,000 |
LOANS - Outstanding Loans by Ri
LOANS - Outstanding Loans by Risk Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
LOANS | ||
Loans receivable | $ 1,575,708 | $ 1,644,209 |
Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 6,624 | 6,841 |
Commercial | ||
LOANS | ||
Loans receivable | 979,309 | 1,007,751 |
Commercial | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 6,546 | 6,696 |
Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 553,389 | 531,810 |
Commercial | Real estate loan | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 4,188 | 4,298 |
Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 152,244 | 159,577 |
Commercial | Commercial and industrial | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 780 | 784 |
Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 5,747 | 132,269 |
Commercial | Paycheck Protection Program - 1st Draw | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 56,981 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | |
Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 73,503 | 53,221 |
Commercial | Political subdivisions | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Construction Loans | ||
LOANS | ||
Loans receivable | 53,267 | 42,874 |
Commercial | Construction Loans | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 10,812 | 11,736 |
Commercial | Loans secured by farm land | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 52,962 | 55,811 |
Commercial | Multi-family (5 or more) residential | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 1,578 | 1,614 |
Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 3,092 | 3,164 |
Commercial | Agricultural loans | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 17,312 | 17,289 |
Commercial | Other commercial loans | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Residential mortgage | ||
LOANS | ||
Loans receivable | 578,863 | 620,172 |
Residential mortgage | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 78 | 145 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 494,376 | 532,947 |
Residential mortgage | Real estate loan | first liens | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 72 | 76 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 24,303 | 27,311 |
Residential mortgage | Real estate loan | junior liens | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 6 | 69 |
Residential mortgage | Construction Loans | ||
LOANS | ||
Loans receivable | 21,719 | 20,613 |
Residential mortgage | Construction Loans | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 38,465 | 39,301 |
Residential mortgage | Home equity lines of credit | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Consumer | ||
LOANS | ||
Loans receivable | 17,536 | 16,286 |
Consumer | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Pass | ||
LOANS | ||
Loans receivable | 1,506,398 | 1,565,349 |
Pass | Commercial | ||
LOANS | ||
Loans receivable | 922,899 | 946,870 |
Pass | Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 519,673 | 494,876 |
Pass | Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 136,858 | 143,500 |
Pass | Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 5,747 | 132,269 |
Pass | Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 56,981 | |
Pass | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 73,503 | 53,221 |
Pass | Commercial | Construction Loans | ||
LOANS | ||
Loans receivable | 52,504 | 42,110 |
Pass | Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 9,639 | 10,473 |
Pass | Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 48,154 | 50,563 |
Pass | Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 2,533 | 2,569 |
Pass | Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 17,307 | 17,289 |
Pass | Residential mortgage | ||
LOANS | ||
Loans receivable | 565,994 | 602,307 |
Pass | Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 482,710 | 516,685 |
Pass | Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 23,676 | 26,480 |
Pass | Residential mortgage | Construction Loans | ||
LOANS | ||
Loans receivable | 21,719 | 20,613 |
Pass | Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 37,889 | 38,529 |
Pass | Consumer | ||
LOANS | ||
Loans receivable | 17,505 | 16,172 |
Special Mention | ||
LOANS | ||
Loans receivable | 32,131 | 35,316 |
Special Mention | Commercial | ||
LOANS | ||
Loans receivable | 26,899 | 28,924 |
Special Mention | Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 15,055 | 17,374 |
Special Mention | Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 8,578 | 8,025 |
Special Mention | Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 0 | |
Special Mention | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Commercial | Construction Loans | ||
LOANS | ||
Loans receivable | 715 | 715 |
Special Mention | Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 194 | 405 |
Special Mention | Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 2,352 | 2,405 |
Special Mention | Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 5 | 0 |
Special Mention | Residential mortgage | ||
LOANS | ||
Loans receivable | 5,232 | 6,392 |
Special Mention | Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 5,066 | 6,192 |
Special Mention | Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 107 | 141 |
Special Mention | Residential mortgage | Construction Loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 59 | 59 |
Special Mention | Consumer | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | ||
LOANS | ||
Loans receivable | 30,555 | 36,703 |
Substandard | Commercial | ||
LOANS | ||
Loans receivable | 22,965 | 25,261 |
Substandard | Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 14,473 | 15,262 |
Substandard | Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 6,028 | 7,268 |
Substandard | Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 0 | |
Substandard | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Commercial | Construction Loans | ||
LOANS | ||
Loans receivable | 48 | 49 |
Substandard | Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 979 | 858 |
Substandard | Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 878 | 1,229 |
Substandard | Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 559 | 595 |
Substandard | Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Residential mortgage | ||
LOANS | ||
Loans receivable | 7,559 | 11,328 |
Substandard | Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 6,528 | 9,994 |
Substandard | Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 514 | 621 |
Substandard | Residential mortgage | Construction Loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 517 | 713 |
Substandard | Consumer | ||
LOANS | ||
Loans receivable | 31 | 114 |
Doubtful | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 0 | |
Doubtful | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Construction Loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | Construction Loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Consumer | ||
LOANS | ||
Loans receivable | $ 0 | $ 0 |
LOANS - Loan Balances and Allow
LOANS - Loan Balances and Allowance for Loan Losses for Each Impairment Method (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
LOANS | ||||||
Loans receivable: Individually Evaluated | $ 18,014 | $ 17,818 | ||||
Loans receivable: Collectively Evaluated | 1,557,694 | 1,626,391 | ||||
Loans receivable | 1,575,708 | 1,644,209 | ||||
Allowance for loan losses: individually evaluated | 883 | 925 | ||||
Allowance for loan losses: collectively evaluated | 11,146 | 9,875 | ||||
Allowance for loan losses | 12,700 | $ 12,375 | 11,385 | $ 10,753 | $ 11,026 | $ 9,836 |
Commercial | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 16,563 | 15,019 | ||||
Loans receivable: Collectively Evaluated | 962,746 | 992,732 | ||||
Loans receivable | 979,309 | 1,007,751 | ||||
Allowance for loan losses: individually evaluated | 744 | 763 | ||||
Allowance for loan losses: collectively evaluated | 6,689 | 5,545 | ||||
Allowance for loan losses | 7,433 | 7,118 | 6,308 | 5,629 | 5,858 | 4,788 |
Commercial | Real estate loan | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 11,303 | 11,962 | ||||
Loans receivable: Collectively Evaluated | 542,086 | 519,848 | ||||
Loans receivable | 553,389 | 531,810 | ||||
Allowance for loan losses: individually evaluated | 672 | 692 | ||||
Allowance for loan losses: collectively evaluated | 3,148 | 2,359 | ||||
Allowance for loan losses | 3,820 | 3,452 | 3,051 | 2,386 | 2,426 | 1,921 |
Commercial | Commercial and industrial | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 3,598 | 1,359 | ||||
Loans receivable: Collectively Evaluated | 148,646 | 158,218 | ||||
Loans receivable | 152,244 | 159,577 | ||||
Allowance for loan losses: individually evaluated | 72 | 71 | ||||
Allowance for loan losses: collectively evaluated | 2,468 | 2,174 | ||||
Allowance for loan losses | 2,540 | 2,781 | 2,245 | 2,251 | 2,496 | 1,391 |
Commercial | Paycheck Protection Program - 1st Draw | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 5,747 | 132,269 | ||||
Loans receivable | 5,747 | 132,269 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 0 | 0 | ||||
Allowance for loan losses | 0 | 0 | ||||
Commercial | Paycheck Protection Program - 2nd Draw | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 0 | |||||
Loans receivable: Collectively Evaluated | 56,981 | |||||
Loans receivable | 56,981 | 0 | ||||
Allowance for loan losses: individually evaluated | 0 | |||||
Allowance for loan losses: collectively evaluated | 0 | |||||
Allowance for loan losses | 0 | |||||
Commercial | Political subdivisions | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 73,503 | 53,221 | ||||
Loans receivable | 73,503 | 53,221 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 0 | 0 | ||||
Allowance for loan losses | 0 | 0 | ||||
Commercial | Construction Loans | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 53,267 | 42,874 | ||||
Loans receivable | 53,267 | 42,874 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 559 | 454 | ||||
Allowance for loan losses | 559 | 454 | ||||
Commercial | Commercial Construction And Land | ||||||
LOANS | ||||||
Allowance for loan losses | 559 | 452 | 454 | 440 | 420 | 966 |
Commercial | Loans secured by farm land | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 84 | 84 | ||||
Loans receivable: Collectively Evaluated | 10,728 | 11,652 | ||||
Loans receivable | 10,812 | 11,736 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 112 | 120 | ||||
Allowance for loan losses | 112 | 113 | 120 | 121 | 146 | 158 |
Commercial | Multi-family (5 or more) residential | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 1,578 | 1,614 | ||||
Loans receivable: Collectively Evaluated | 51,384 | 54,197 | ||||
Loans receivable | 52,962 | 55,811 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 196 | 236 | ||||
Allowance for loan losses | 196 | 150 | 236 | 227 | 163 | 156 |
Commercial | Agricultural loans | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 3,092 | 3,164 | ||||
Loans receivable | 3,092 | 3,164 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 33 | 34 | ||||
Allowance for loan losses | 33 | 25 | 34 | 37 | 40 | 41 |
Commercial | Other commercial loans | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 17,312 | 17,289 | ||||
Loans receivable | 17,312 | 17,289 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 173 | 168 | ||||
Allowance for loan losses | 173 | 145 | 168 | 167 | 167 | 155 |
Residential mortgage | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 1,451 | 2,799 | ||||
Loans receivable: Collectively Evaluated | 577,412 | 617,373 | ||||
Loans receivable | 578,863 | 620,172 | ||||
Allowance for loan losses: individually evaluated | 139 | 162 | ||||
Allowance for loan losses: collectively evaluated | 4,220 | 4,091 | ||||
Allowance for loan losses | 4,359 | 4,355 | 4,253 | 4,281 | 4,320 | 4,182 |
Residential mortgage | first liens | ||||||
LOANS | ||||||
Allowance for loan losses | 3,566 | 3,524 | 3,465 | 3,405 | ||
Residential mortgage | junior liens | ||||||
LOANS | ||||||
Allowance for loan losses | 321 | 349 | 358 | 384 | ||
Residential mortgage | Real estate loan | first liens | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 1,134 | 2,385 | ||||
Loans receivable: Collectively Evaluated | 493,242 | 530,562 | ||||
Loans receivable | 494,376 | 532,947 | ||||
Allowance for loan losses: individually evaluated | 0 | 9 | ||||
Allowance for loan losses: collectively evaluated | 3,566 | 3,515 | ||||
Allowance for loan losses | 3,566 | 3,536 | 3,524 | 3,465 | 3,531 | |
Residential mortgage | Real estate loan | junior liens | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 317 | 414 | ||||
Loans receivable: Collectively Evaluated | 23,986 | 26,897 | ||||
Loans receivable | 24,303 | 27,311 | ||||
Allowance for loan losses: individually evaluated | 139 | 153 | ||||
Allowance for loan losses: collectively evaluated | 182 | 196 | ||||
Allowance for loan losses | 321 | 327 | 349 | 358 | 365 | |
Residential mortgage | Construction Loans | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 21,719 | 20,613 | ||||
Loans receivable | 21,719 | 20,613 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 189 | 99 | ||||
Allowance for loan losses | 189 | 99 | ||||
Residential mortgage | Home equity lines of credit | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 38,465 | 39,301 | ||||
Loans receivable | 38,465 | 39,301 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 283 | 281 | ||||
Allowance for loan losses | 283 | 294 | 281 | 289 | 287 | 276 |
Consumer | ||||||
LOANS | ||||||
Loans receivable: Individually Evaluated | 0 | 0 | ||||
Loans receivable: Collectively Evaluated | 17,536 | 16,286 | ||||
Loans receivable | 17,536 | 16,286 | ||||
Allowance for loan losses: individually evaluated | 0 | 0 | ||||
Allowance for loan losses: collectively evaluated | 237 | 239 | ||||
Allowance for loan losses | 237 | 231 | 239 | 258 | 263 | 281 |
Unallocated | ||||||
LOANS | ||||||
Allowance for loan losses | $ 671 | $ 671 | $ 585 | $ 585 | $ 585 | $ 585 |
LOANS - Impaired Loans (Details
LOANS - Impaired Loans (Details) | Sep. 30, 2021USD ($)borrowerproperty | Dec. 31, 2020USD ($) |
LOANS | ||
Unpaid Principal Balance - with no allowance | $ 16,667,000 | $ 13,211,000 |
Recorded Investment - with no allowance | 10,789,000 | 9,736,000 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 7,225,000 | 8,082,000 |
Recorded investment - with allowance | 7,225,000 | 8,082,000 |
Related Allowance - with allowance | 883,000 | 925,000 |
Unpaid Principal Balance | 23,892,000 | 21,293,000 |
Recorded Investment | 18,014,000 | 17,818,000 |
Commercial | ||
LOANS | ||
Recorded Investment | 3,496,000 | |
Commercial | Real estate loan | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 7,068,000 | 7,168,000 |
Recorded Investment - with no allowance | 4,823,000 | 5,398,000 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 6,480,000 | 6,501,000 |
Recorded investment - with allowance | 6,480,000 | 6,501,000 |
Related Allowance - with allowance | 672,000 | 691,000 |
Commercial | Commercial and industrial | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 5,930,000 | 1,781,000 |
Recorded Investment - with no allowance | 3,526,000 | 1,287,000 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 72,000 | 72,000 |
Recorded investment - with allowance | 72,000 | 72,000 |
Related Allowance - with allowance | 72,000 | 72,000 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 84,000 | 84,000 |
Recorded Investment - with no allowance | 84,000 | 84,000 |
Related Allowance - with no allowance | 0 | 0 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 2,734,000 | 2,770,000 |
Recorded Investment - with no allowance | 1,578,000 | 1,614,000 |
Related Allowance - with no allowance | $ 0 | 0 |
Residential mortgage | ||
LOANS | ||
Number borrowers collateralized by one property with specific allowance | borrower | 2 | |
Number of properties collateralized each loan | property | 1 | |
Residential mortgage | Real estate loan | ||
LOANS | ||
Related Allowance - with allowance | $ 139,000 | 153,000 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 786,000 | 1,248,000 |
Recorded Investment - with no allowance | 760,000 | 1,248,000 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 374,000 | 1,200,000 |
Recorded investment - with allowance | 374,000 | 1,200,000 |
Related Allowance - with allowance | 0 | 9,000 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 65,000 | 160,000 |
Recorded Investment - with no allowance | 18,000 | 105,000 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 299,000 | 309,000 |
Recorded investment - with allowance | 299,000 | 309,000 |
Related Allowance - with allowance | $ 139,000 | $ 153,000 |
LOANS - Average Balance of Impa
LOANS - Average Balance of Impaired Loans and Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
LOANS | ||||
Average Investment in Impaired Loans | $ 18,580 | $ 12,519 | $ 18,407 | $ 10,163 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 221 | 103 | 632 | 237 |
Commercial | ||||
LOANS | ||||
Average Investment in Impaired Loans | 16,872 | 9,911 | 16,160 | 8,133 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 209 | 71 | 554 | 147 |
Commercial | Real estate loan | ||||
LOANS | ||||
Average Investment in Impaired Loans | 11,252 | 7,298 | 11,811 | 3,779 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 172 | 65 | 401 | 81 |
Commercial | Commercial and industrial | ||||
LOANS | ||||
Average Investment in Impaired Loans | 3,844 | 2,235 | 2,566 | 3,178 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 4 | 1 | 25 | 21 |
Commercial | Construction Loans | ||||
LOANS | ||||
Average Investment in Impaired Loans | 48 | 49 | 48 | 678 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 2 | 1 | 2 | 14 |
Commercial | Loans secured by farm land | ||||
LOANS | ||||
Average Investment in Impaired Loans | 84 | 253 | 84 | 397 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 2 | 1 | 26 |
Commercial | Multi-family (5 or more) residential | ||||
LOANS | ||||
Average Investment in Impaired Loans | 1,578 | 0 | 1,584 | 0 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 31 | 0 | 122 | 0 |
Commercial | Agricultural loans | ||||
LOANS | ||||
Average Investment in Impaired Loans | 66 | 76 | 67 | 76 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 2 | 3 | 4 |
Commercial | Other commercial loans | ||||
LOANS | ||||
Average Investment in Impaired Loans | 0 | 0 | 0 | 25 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 0 | 0 | 1 |
Residential mortgage | ||||
LOANS | ||||
Average Investment in Impaired Loans | 1,708 | 2,608 | 2,247 | 2,030 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 12 | 32 | 78 | 90 |
Residential mortgage | Real estate loan | first liens | ||||
LOANS | ||||
Average Investment in Impaired Loans | 1,322 | 2,159 | 1,830 | 1,579 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 11 | 27 | 68 | 70 |
Residential mortgage | Real estate loan | junior liens | ||||
LOANS | ||||
Average Investment in Impaired Loans | 386 | 384 | 417 | 386 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 1 | 5 | 10 | 18 |
Residential mortgage | Home Equity Line of Credit [Member] | ||||
LOANS | ||||
Average Investment in Impaired Loans | 0 | 65 | 0 | 65 |
Interest Income Recognized on Impaired Loans on a Cash Basis | $ 0 | $ 0 | $ 0 | $ 2 |
LOANS - Nonaccrual Loans and Lo
LOANS - Nonaccrual Loans and Loans Past Due Ninety Days or More and Still Accruing (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
LOANS | ||
Past Due 90+ Days and Accruing | $ 1,924 | $ 1,975 |
Nonaccrual | 21,341 | 21,416 |
Commercial | ||
LOANS | ||
Past Due 90+ Days and Accruing | 947 | 796 |
Nonaccrual | 16,147 | 14,267 |
Commercial | Real estate loan | ||
LOANS | ||
Past Due 90+ Days and Accruing | 752 | 395 |
Nonaccrual | 11,205 | 11,550 |
Commercial | Commercial and industrial | ||
LOANS | ||
Past Due 90+ Days and Accruing | 99 | 142 |
Nonaccrual | 3,232 | 970 |
Commercial | Construction Loans | ||
LOANS | ||
Past Due 90+ Days and Accruing | 0 | 0 |
Nonaccrual | 48 | 49 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Past Due 90+ Days and Accruing | 30 | 188 |
Nonaccrual | 84 | 84 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Past Due 90+ Days and Accruing | 0 | 0 |
Nonaccrual | 1,578 | 1,614 |
Commercial | Agricultural loans | ||
LOANS | ||
Past Due 90+ Days and Accruing | 66 | 0 |
Nonaccrual | 0 | 0 |
Commercial | Other commercial loans | ||
LOANS | ||
Past Due 90+ Days and Accruing | 0 | 71 |
Nonaccrual | 0 | 0 |
Residential mortgage | ||
LOANS | ||
Past Due 90+ Days and Accruing | 967 | 1,123 |
Nonaccrual | 5,163 | 7,064 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Past Due 90+ Days and Accruing | 832 | 838 |
Nonaccrual | 4,569 | 6,387 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Past Due 90+ Days and Accruing | 71 | 52 |
Nonaccrual | 305 | 378 |
Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Past Due 90+ Days and Accruing | 64 | 233 |
Nonaccrual | 289 | 299 |
Consumer | ||
LOANS | ||
Past Due 90+ Days and Accruing | 10 | 56 |
Nonaccrual | $ 31 | $ 85 |
LOANS - Contractual Aging of Lo
LOANS - Contractual Aging of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
LOANS | ||
Loans current and past due less than 30 days | $ 1,563,091 | $ 1,627,899 |
Loans receivable | 1,575,708 | 1,644,209 |
Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 3,167 | 8,607 |
Past Due 90+ Days | ||
LOANS | ||
Loans past due | 9,450 | 7,703 |
Commercial | ||
LOANS | ||
Loans current and past due less than 30 days | 972,327 | 1,002,260 |
Loans receivable | 979,309 | 1,007,751 |
Commercial | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 533 | 2,453 |
Commercial | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 6,449 | 3,038 |
Commercial | Real estate loan | ||
LOANS | ||
Loans current and past due less than 30 days | 547,885 | 529,998 |
Loans receivable | 553,389 | 531,810 |
Commercial | Real estate loan | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 142 | 66 |
Commercial | Real estate loan | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 5,362 | 1,746 |
Commercial | Commercial and industrial | ||
LOANS | ||
Loans current and past due less than 30 days | 151,119 | 158,523 |
Loans receivable | 152,244 | 159,577 |
Commercial | Commercial and industrial | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 218 | 55 |
Commercial | Commercial and industrial | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 907 | 999 |
Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans current and past due less than 30 days | 5,747 | 132,269 |
Loans receivable | 5,747 | 132,269 |
Commercial | Paycheck Protection Program - 1st Draw | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Paycheck Protection Program - 1st Draw | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans current and past due less than 30 days | 56,981 | 0 |
Loans receivable | 56,981 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Political subdivisions | ||
LOANS | ||
Loans current and past due less than 30 days | 73,503 | 53,221 |
Loans receivable | 73,503 | 53,221 |
Commercial | Political subdivisions | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Political subdivisions | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Construction Loans | ||
LOANS | ||
Loans current and past due less than 30 days | 53,125 | 42,590 |
Loans receivable | 53,267 | 42,874 |
Commercial | Construction Loans | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 142 | 284 |
Commercial | Construction Loans | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Loans current and past due less than 30 days | 10,667 | 11,419 |
Loans receivable | 10,812 | 11,736 |
Commercial | Loans secured by farm land | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 31 | 95 |
Commercial | Loans secured by farm land | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 114 | 222 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans current and past due less than 30 days | 52,962 | 53,860 |
Loans receivable | 52,962 | 55,811 |
Commercial | Multi-family (5 or more) residential | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 1,951 |
Commercial | Multi-family (5 or more) residential | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Agricultural loans | ||
LOANS | ||
Loans current and past due less than 30 days | 3,026 | 3,091 |
Loans receivable | 3,092 | 3,164 |
Commercial | Agricultural loans | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 2 |
Commercial | Agricultural loans | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 66 | 71 |
Commercial | Other commercial loans | ||
LOANS | ||
Loans current and past due less than 30 days | 17,312 | 17,289 |
Loans receivable | 17,312 | 17,289 |
Commercial | Other commercial loans | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Commercial | Other commercial loans | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Residential mortgage | ||
LOANS | ||
Loans current and past due less than 30 days | 573,317 | 609,576 |
Loans receivable | 578,863 | 620,172 |
Residential mortgage | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 2,586 | 6,071 |
Residential mortgage | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 2,960 | 4,525 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans current and past due less than 30 days | 489,339 | 523,191 |
Loans receivable | 494,376 | 532,947 |
Residential mortgage | Real estate loan | first liens | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 2,212 | 5,703 |
Residential mortgage | Real estate loan | first liens | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 2,825 | 4,053 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans current and past due less than 30 days | 24,200 | 27,009 |
Loans receivable | 24,303 | 27,311 |
Residential mortgage | Real estate loan | junior liens | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 32 | 111 |
Residential mortgage | Real estate loan | junior liens | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 71 | 191 |
Residential mortgage | Construction Loans | ||
LOANS | ||
Loans current and past due less than 30 days | 21,719 | 20,457 |
Loans receivable | 21,719 | 20,613 |
Residential mortgage | Construction Loans | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 0 | 156 |
Residential mortgage | Construction Loans | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 0 | 0 |
Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans current and past due less than 30 days | 38,059 | 38,919 |
Loans receivable | 38,465 | 39,301 |
Residential mortgage | Home equity lines of credit | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 342 | 101 |
Residential mortgage | Home equity lines of credit | Past Due 90+ Days | ||
LOANS | ||
Loans past due | 64 | 281 |
Consumer | ||
LOANS | ||
Loans current and past due less than 30 days | 17,447 | 16,063 |
Loans receivable | 17,536 | 16,286 |
Consumer | Past Due 30-89 Days | ||
LOANS | ||
Loans past due | 48 | 83 |
Consumer | Past Due 90+ Days | ||
LOANS | ||
Loans past due | $ 41 | $ 140 |
LOANS - Contractual Aging of No
LOANS - Contractual Aging of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
LOANS | ||
Nonaccrual loans | $ 21,341 | $ 21,416 |
Non accrual Loans [Member] | ||
LOANS | ||
Loans current and past due, nonaccrual | 12,787 | 12,999 |
Nonaccrual loans | 21,341 | 21,416 |
Non accrual Loans [Member] | Past Due 30-89 Days | ||
LOANS | ||
Nonaccrual loans | 1,028 | 2,689 |
Non accrual Loans [Member] | Past Due 90+ Days | ||
LOANS | ||
Nonaccrual loans | $ 7,526 | $ 5,728 |
LOANS - Aging of Troubled Debt
LOANS - Aging of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Troubled Debt Restructurings | ||
Loans current and past due less than 30 days | $ 1,563,091 | $ 1,627,899 |
Nonaccrual loans | 21,341 | 21,416 |
Past Due 30-89 Days | ||
Troubled Debt Restructurings | ||
Loans past due | 3,167 | 8,607 |
Past Due 90+ Days | ||
Troubled Debt Restructurings | ||
Loans past due | 9,450 | 7,703 |
Troubled Debt Restructuring | ||
Troubled Debt Restructurings | ||
Loans current and past due less than 30 days | 144 | 166 |
Nonaccrual loans | 5,457 | 6,867 |
Troubled debt restructurings | 5,823 | 7,451 |
Troubled Debt Restructuring | Past Due 30-89 Days | ||
Troubled Debt Restructurings | ||
Loans past due | 88 | 0 |
Troubled Debt Restructuring | Past Due 90+ Days | ||
Troubled Debt Restructurings | ||
Loans past due | $ 134 | $ 418 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | |
Troubled Debt Restructurings | ||||
Troubled debt restructurings, number of contracts | loan | 1 | 5 | 4 | 7 |
Troubled debt restructurings, post-modification recorded investment | $ | $ 70 | $ 7,001 | $ 222 | $ 7,271 |
Commercial | Real estate loan | Principal and interest payment deferral non-COVID related | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, number of contracts | loan | 0 | 2 | 0 | 2 |
Troubled debt restructurings, post-modification recorded investment | $ | $ 0 | $ 4,831 | $ 0 | $ 4,831 |
Commercial | Real estate loan | Interest only payments for a nine-month period | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, number of contracts | loan | 0 | 1 | ||
Troubled debt restructurings, post-modification recorded investment | $ | $ 0 | $ 240 | ||
Commercial | Multi-family (5 or more) residential | Principal and interest payment deferral non-COVID related | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, number of contracts | loan | 0 | 3 | 0 | 3 |
Troubled debt restructurings, post-modification recorded investment | $ | $ 0 | $ 2,170 | $ 0 | $ 2,170 |
Residential mortgage | Real estate loan | first liens | Reduced monthly payments for a fifteen-month period | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, number of contracts | loan | 1 | 0 | ||
Troubled debt restructurings, post-modification recorded investment | $ | $ 116 | $ 0 | ||
Residential mortgage | Real estate loan | first liens | Reduced monthly payments and extended maturity date | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, number of contracts | loan | 1 | 0 | ||
Troubled debt restructurings, post-modification recorded investment | $ | $ 12 | $ 0 | ||
Residential mortgage | Real estate loan | junior liens | New loan at lower than risk-adjusted market rate to borrower from whom short sale of other collateral was accepted | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, number of contracts | loan | 0 | 1 | ||
Troubled debt restructurings, post-modification recorded investment | $ | $ 0 | $ 30 | ||
Residential mortgage | Home equity lines of credit | Reduced monthly payments and extended maturity date | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, number of contracts | loan | 1 | 0 | ||
Troubled debt restructurings, post-modification recorded investment | $ | $ 24 | $ 0 | ||
Residential mortgage | Home equity lines of credit | Reduced monthly payments for eighteen-month period | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, number of contracts | loan | 1 | 0 | 1 | 0 |
Troubled debt restructurings, post-modification recorded investment | $ | $ 70 | $ 0 | $ 70 | $ 0 |
LOANS - Payment Defaults on TDR
LOANS - Payment Defaults on TDR Loans (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | |
Number of Loans | loan | 0 | 1 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 240 | $ 3,392 | $ 240 |
Commercial | Real estate loan | ||||
Number of Loans | loan | 0 | 1 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 240 | $ 3,392 | $ 240 |
LOANS - Foreclosed Residential
LOANS - Foreclosed Residential Real Estate (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Residential mortgage | ||
LOANS | ||
Foreclosed residential real estate | $ 179 | $ 80 |
LOANS - Mortgage Loans in Proce
LOANS - Mortgage Loans in Process of Foreclosure (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Residential mortgage | ||
LOANS | ||
Residential real estate in process of foreclosure | $ 1,392 | $ 1,246 |
LOANS - Additional information
LOANS - Additional information (Details) | Mar. 27, 2020USD ($) | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($)loan | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
LOANS | |||||||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | $ 5,719,000 | $ 5,719,000 | $ 6,286,000 | ||||||
Recorded investment - with allowance | 7,225,000 | 7,225,000 | 8,082,000 | ||||||
Specific allowances | 883,000 | 883,000 | 925,000 | ||||||
Loans receivable | 1,575,708,000 | 1,575,708,000 | 1,644,209,000 | ||||||
Allowance for Loan losses | 12,700,000 | $ 10,753,000 | 12,700,000 | $ 10,753,000 | $ 12,375,000 | 11,385,000 | $ 11,026,000 | $ 9,836,000 | |
Financing receivable charge-offs | 1,220,000 | 2,249,000 | 1,278,000 | 2,443,000 | |||||
Provision (credit) for loan losses | 1,530,000 | 1,941,000 | 2,533,000 | 3,293,000 | |||||
Increase (decrease) in provision for loan losses | (411,000) | (760,000) | |||||||
Amount of net charge related to specific loans | 611,000 | ||||||||
Amount of net increase (decrease) in specific allowances on loans | (594,000) | ||||||||
Amount of net charge offs related to a specific loan | 1,205,000 | ||||||||
Amount of increase (decrease) in the provision for loan losses from collectively determined portion of allowance | 919,000 | ||||||||
Recorded Investment | 18,014,000 | 18,014,000 | 17,818,000 | ||||||
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend | 0 | 0 | 0 | ||||||
TDRs for which payment defaults occurred | |||||||||
LOANS | |||||||||
Specific allowances | 0 | 0 | |||||||
Purchased Credit Impaired | |||||||||
LOANS | |||||||||
Loans receivable | 6,624,000 | 6,624,000 | 6,841,000 | ||||||
Loans Modified, Recorded Investment | $ 6,624,000 | $ 6,624,000 | $ 6,841,000 | ||||||
COVID-19-related loan modifications | |||||||||
LOANS | |||||||||
Loans Modified, Number of Loans | loan | 0 | 0 | 45 | ||||||
Loans Modified, Recorded Investment | $ 37,397,000 | ||||||||
Small Business Administration - Paycheck Protection Program | |||||||||
LOANS | |||||||||
Amount of stimulus package designed | $ 2,000,000,000,000 | ||||||||
Accretion of fees received | $ 1,409,000 | 467,000 | $ 3,975,000 | 804,000 | |||||
Paycheck Protection Program - 1st Draw | |||||||||
LOANS | |||||||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | 237,000 | 237,000 | |||||||
Contractual principal balances | 5,982,000 | 5,982,000 | |||||||
Recorded Investment | 5,747,000 | 5,747,000 | |||||||
Adjustment recorded in acquisition | 2,000 | ||||||||
Paycheck Protection Program - 2nd Draw | |||||||||
LOANS | |||||||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | 2,208,000 | 2,208,000 | |||||||
Contractual principal balances | 59,190,000 | 59,190,000 | |||||||
Recorded Investment | 56,981,000 | 56,981,000 | |||||||
Unfunded Loan Commitment | |||||||||
LOANS | |||||||||
Allowance for Loan losses | 0 | 0 | 0 | ||||||
Commercial | |||||||||
LOANS | |||||||||
Loans receivable | 979,309,000 | 979,309,000 | 1,007,751,000 | ||||||
Allowance for Loan losses | 7,433,000 | 5,629,000 | 7,433,000 | 5,629,000 | 7,118,000 | 6,308,000 | 5,858,000 | 4,788,000 | |
Financing receivable charge-offs | 1,194,000 | 2,219,000 | 1,194,000 | 2,343,000 | |||||
Provision (credit) for loan losses | 1,503,000 | 1,990,000 | 2,297,000 | 3,184,000 | |||||
Recorded Investment | 3,496,000 | 3,496,000 | |||||||
Commercial | Minimum | |||||||||
LOANS | |||||||||
Specific allowances | 583,000 | ||||||||
Commercial | Purchased Credit Impaired | |||||||||
LOANS | |||||||||
Loans receivable | 6,546,000 | 6,546,000 | 6,696,000 | ||||||
Commercial | Commercial loan of $3,500,000 | |||||||||
LOANS | |||||||||
Specific allowances | 1,193,000 | ||||||||
Financing receivable charge-offs | 2,219,000 | 2,219,000 | |||||||
Recorded Investment | 3,500,000 | 3,500,000 | |||||||
Commercial | Paycheck Protection Program - 1st Draw | |||||||||
LOANS | |||||||||
Loans receivable | 5,747,000 | 5,747,000 | 132,269,000 | ||||||
Allowance for Loan losses | 0 | 0 | 0 | ||||||
Commercial | Paycheck Protection Program - 1st Draw | Purchased Credit Impaired | |||||||||
LOANS | |||||||||
Loans receivable | 0 | 0 | 0 | ||||||
Commercial | Paycheck Protection Program - 2nd Draw | |||||||||
LOANS | |||||||||
Loans receivable | 56,981,000 | 56,981,000 | 0 | ||||||
Allowance for Loan losses | 0 | 0 | |||||||
Commercial | Paycheck Protection Program - 2nd Draw | Purchased Credit Impaired | |||||||||
LOANS | |||||||||
Loans receivable | 0 | 0 | |||||||
Commercial | Commercial and industrial | |||||||||
LOANS | |||||||||
Recorded investment - with allowance | 72,000 | 72,000 | 72,000 | ||||||
Specific allowances | 72,000 | 72,000 | 72,000 | ||||||
Loans receivable | 152,244,000 | 152,244,000 | 159,577,000 | ||||||
Allowance for Loan losses | 2,540,000 | 2,251,000 | 2,540,000 | 2,251,000 | 2,781,000 | 2,245,000 | 2,496,000 | 1,391,000 | |
Financing receivable charge-offs | 1,194,000 | 2,219,000 | 1,194,000 | 2,236,000 | |||||
Provision (credit) for loan losses | 947,000 | 1,974,000 | 1,469,000 | 3,096,000 | |||||
Commercial | Commercial and industrial | Purchased Credit Impaired | |||||||||
LOANS | |||||||||
Loans receivable | 780,000 | 780,000 | 784,000 | ||||||
Commercial | Real estate loan | |||||||||
LOANS | |||||||||
Recorded investment - with allowance | 6,480,000 | 6,480,000 | 6,501,000 | ||||||
Specific allowances | 672,000 | 672,000 | 691,000 | ||||||
Loans receivable | 553,389,000 | 553,389,000 | 531,810,000 | ||||||
Allowance for Loan losses | 3,820,000 | 2,386,000 | 3,820,000 | 2,386,000 | 3,452,000 | 3,051,000 | 2,426,000 | 1,921,000 | |
Financing receivable charge-offs | 0 | 0 | 0 | 0 | |||||
Provision (credit) for loan losses | 368,000 | (40,000) | 767,000 | 465,000 | |||||
Commercial | Real estate loan | TDRs for which payment defaults occurred | |||||||||
LOANS | |||||||||
Specific allowances | 134,000 | 134,000 | 416,000 | ||||||
Commercial | Real estate loan | Purchased Credit Impaired | |||||||||
LOANS | |||||||||
Loans receivable | 4,188,000 | 4,188,000 | 4,298,000 | ||||||
Unallocated | |||||||||
LOANS | |||||||||
Allowance for Loan losses | 671,000 | 585,000 | 671,000 | 585,000 | 671,000 | 585,000 | 585,000 | 585,000 | |
Financing receivable charge-offs | 0 | 0 | 0 | 0 | |||||
Provision (credit) for loan losses | 0 | 0 | 86,000 | 0 | |||||
Residential mortgage | |||||||||
LOANS | |||||||||
Loans receivable | 578,863,000 | 578,863,000 | 620,172,000 | ||||||
Allowance for Loan losses | 4,359,000 | 4,281,000 | 4,359,000 | 4,281,000 | $ 4,355,000 | 4,253,000 | $ 4,320,000 | $ 4,182,000 | |
Financing receivable charge-offs | 0 | 0 | 11,000 | 0 | |||||
Provision (credit) for loan losses | 3,000 | $ (66,000) | 112,000 | $ 67,000 | |||||
Residential mortgage | Purchased Credit Impaired | |||||||||
LOANS | |||||||||
Loans receivable | 78,000 | 78,000 | 145,000 | ||||||
Residential mortgage | Real estate loan | |||||||||
LOANS | |||||||||
Specific allowances | $ 139,000 | $ 139,000 | $ 153,000 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross amount | $ 6,639 | $ 6,639 |
Accumulated amortization | (3,189) | (2,788) |
Net | $ 3,450 | $ 3,851 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||
Amortization expense | $ 133 | $ 208 | $ 401 | $ 332 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in the carrying amount of goodwill | ||||
Balance, beginning of period | $ 52,505 | $ 28,388 | $ 52,505 | $ 28,388 |
Goodwill arising in business combination | 0 | 24,138 | 0 | 24,138 |
Balance, end of period | $ 52,505 | $ 52,526 | $ 52,505 | $ 52,526 |
BORROWED FUNDS - Short-term bor
BORROWED FUNDS - Short-term borrowings (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | $ 1,875,000 | $ 20,022,000 |
FHLB-Pittsburgh borrowings | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | 0 | 18,066,000 |
Customer repurchase agreements | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | $ 1,875,000 | $ 1,956,000 |
BORROWED FUNDS - Short-term b_2
BORROWED FUNDS - Short-term borrowings - Additional information (Details) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($)loan |
Other Correspondent Banks | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 45,000,000 | $ 45,000,000 |
Long-term Line of Credit, Total | 0 | 0 |
Federal Reserve Bank of Philadelphia | Collateral Pledged | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Investment pledged as collateral | $ 14,936,000 | $ 15,126,000 |
Customer repurchase agreements | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Debt, Weighted Average Interest Rate | 0.10% | 0.10% |
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned, Total | $ 1,900,000 | $ 1,980,000 |
Federal Home Loan Bank of Pittsburgh | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Line of Credit Facility, Maximum Borrowing Capacity | 752,847,000 | 771,199,000 |
Letter of credit | 5,584,000 | 400,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 1,044,507,000 | 1,049,690,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 709,012,000 | 698,977,000 |
Federal Home Loan Bank of Pittsburgh | Other Assets | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Federal Home Loan Bank Stock | 9,400,000 | 9,720,000 |
Federal Home Loan Bank of Pittsburgh | Federal Reserve Bank of Philadelphia | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Line of Credit Facility, Maximum Borrowing Capacity | 14,482,000 | 14,654,000 |
Long-term Line of Credit, Total | $ 0 | $ 0 |
Federal Home Loan Bank of Pittsburgh | Federal Home Loan Bank Advances 1 | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Number of Short-term Advances | loan | 5 | |
Short-term Borrowing, Amount of Each Borrowing | $ 18,000,000 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.43% |
BORROWED FUNDS - Long-term Borr
BORROWED FUNDS - Long-term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Long-term Borrowing | ||
Long-term borrowings | $ 38,680 | $ 54,608 |
Federal Home Loan Bank of Pittsburgh | ||
Long-term Borrowing | ||
Long-term borrowings | 38,680 | 54,608 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2021 with a weighted-average rate of 0.94% | ||
Long-term Borrowing | ||
Long-term borrowings | $ 10,520 | $ 26,098 |
Rate | 0.94% | 0.94% |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2022 with a weighted-average rate of 0.60% | ||
Long-term Borrowing | ||
Long-term borrowings | $ 15,510 | $ 15,682 |
Rate | 0.60% | 0.60% |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2023 with a weighted-average rate of 0.73% | ||
Long-term Borrowing | ||
Long-term borrowings | $ 7,145 | $ 7,224 |
Rate | 0.73% | 0.73% |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2024 with a weighted-average rate of 0.75% | ||
Long-term Borrowing | ||
Long-term borrowings | $ 5,109 | $ 5,137 |
Rate | 0.75% | 0.75% |
Federal Home Loan Bank of Pittsburgh | Loan maturing in 2025 with a rate of 4.91% | ||
Long-term Borrowing | ||
Long-term borrowings | $ 396 | $ 467 |
Rate | 4.91% | 4.91% |
BORROWED FUNDS - Senior Notes (
BORROWED FUNDS - Senior Notes (Details) - USD ($) | May 19, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Senior notes, net | $ 14,685,000 | $ 14,685,000 | $ 0 | |
Senior Notes with an aggregate par value of $15,000,000; bearing interest at 2.75% with an effective interest rate of 3.23%; maturing in June 2026 | ||||
Debt Instrument [Line Items] | ||||
Aggregate par value | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 | |
Stated interest rate | 2.75% | 2.75% | 2.75% | |
Debt issuance costs | $ 337,000 | |||
Senior notes, net | $ 14,663,000 | $ 14,685,000 | $ 14,685,000 | $ 0 |
Amortization of debt issuance costs | $ 15,000 | $ 22,000 | ||
Effective interest rate | 3.23% | 3.23% |
BORROWED FUNDS - Subordinated D
BORROWED FUNDS - Subordinated Debt (Details) - USD ($) | May 19, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Subordinated debt, net | $ 32,988,000 | $ 32,988,000 | $ 16,553,000 | |
6.25% maturing in June 2026 and redeemable at par in June 2021 | ||||
Debt Instrument [Line Items] | ||||
Aggregate par value | $ 8,000,000 | |||
Stated interest rate | 6.25% | |||
Subordinated debt, net | 0 | 0 | $ 8,027,000 | |
Effective interest rate | 5.49% | |||
6.50% maturing in April 2027 and redeemable at par in April 2022 | ||||
Debt Instrument [Line Items] | ||||
Aggregate par value | $ 6,500,000 | $ 6,500,000 | $ 6,500,000 | |
Stated interest rate | 6.50% | 6.50% | 6.50% | |
Subordinated debt, net | $ 6,500,000 | $ 6,500,000 | $ 6,500,000 | |
6.50% maturing in July 2027 and redeemable at par in July 2022 | ||||
Debt Instrument [Line Items] | ||||
Aggregate par value | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |
Stated interest rate | 6.50% | 6.50% | 6.50% | |
Subordinated debt, net | $ 2,013,000 | $ 2,013,000 | $ 2,026,000 | |
Effective interest rate | 5.60% | 5.60% | 5.60% | |
3.25% maturing in June 2031 and redeemable at par in June 2026 | ||||
Debt Instrument [Line Items] | ||||
Aggregate par value | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 | |
Stated interest rate | 3.25% | 3.25% | 3.25% | |
Debt issuance costs | $ 563,000 | |||
Subordinated debt, net | $ 24,437,000 | $ 24,475,000 | $ 24,475,000 | $ 0 |
Amortization of debt issuance costs | $ 25,000 | $ 38,000 | ||
Effective interest rate | 3.74% | 3.74% | ||
3.25% maturing in June 2031 and redeemable at par in June 2026 | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.25% | |||
Debt Instrument, Redemption Period, Start Date | May 19, 2021 | |||
Debt Instrument, Redemption Period, End Date | Jun. 1, 2026 | |||
3.25% maturing in June 2031 and redeemable at par in June 2026 | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Period, Start Date | Jun. 1, 2026 | |||
Debt Instrument, Redemption Period, End Date | Jun. 1, 2031 | |||
Debt Instrument, Basis Spread on Variable Rate | 2.59% |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Details) - Restricted Stock - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | |
Stock-based compensation expense | $ 345,000 | $ 248,000 | $ 970,000 | $ 672,000 | |
Forecast | |||||
Stock-based compensation expense | $ 1,314,000 | ||||
Stock Incentive Plan | |||||
Vesting period | 3 years | ||||
Independent Directors Stock Incentive Plan | |||||
Vesting period | 1 year |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Restricted Stock Awards Granted (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | |
STOCK-BASED COMPENSATION PLANS | |||
Number of shares | 78,391 | ||
Average Grant Date Fair Value | $ 1,589 | ||
Stock Incentive Plan | Restricted Stock | Employees | |||
STOCK-BASED COMPENSATION PLANS | |||
Number of shares | 4,000 | 46,178 | |
Average Grant Date Fair Value | $ 100 | $ 924 | |
Stock Incentive Plan | Performance Shares | Employees | |||
STOCK-BASED COMPENSATION PLANS | |||
Number of shares | 17,224 | ||
Average Grant Date Fair Value | $ 345 | ||
Independent Directors Stock Incentive Plan | Restricted Stock | Director | |||
STOCK-BASED COMPENSATION PLANS | |||
Number of shares | 10,989 | ||
Average Grant Date Fair Value | $ 220 |
CONTINGENCIES - Trust Departmen
CONTINGENCIES - Trust Department Tax Reporting Contingency (Details) - Trust Department Tax Reporting Contingency - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Trust Department Tax Reporting Contingency | |||||
Loss Contingency, Loss in Period | $ 0 | $ 200,000 | $ 107,000 | $ 500,000 | |
Accrued Interest and Other Liabilities | |||||
Trust Department Tax Reporting Contingency | |||||
Tax compliance matters | $ 429,000 | $ 429,000 | $ 322,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Asset pledged | |||||
Derivative Financial Instruments | |||||
Available-for-sale securities pledged as collateral | $ 7,069,000 | $ 7,069,000 | |||
Interest rate swap agreements | |||||
Derivative Financial Instruments | |||||
Aggregate notional amount | 123,990,000 | 123,990,000 | $ 135,740,000 | ||
Asset Derivatives, Notional Amount | 61,995,000 | 61,995,000 | 67,870,000 | ||
Asset Derivatives, Fair Value | 3,902,000 | 3,902,000 | 6,566,000 | ||
Liability Derivatives, Notional Amount | 61,995,000 | 61,995,000 | 67,870,000 | ||
Liability Derivatives, Fair Value | 3,902,000 | 3,902,000 | $ 6,566,000 | ||
Derivatives not designated as hedging instruments | Interest rate swap agreements | |||||
Derivative Financial Instruments | |||||
Interest rate swap | 0 | $ 0 | 0 | $ 0 | |
Increase (decrease) in interest income | $ 335,000 | $ 351,000 | $ 1,013,000 | $ 351,000 |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets Measured at Fair Value | ||
Total, fair value | $ 437,857 | $ 349,332 |
Impaired loans with a valuation allowance | 7,225 | 8,082 |
Valuation allowance | (883) | (925) |
Impaired loans, net | 7,225 | 8,082 |
Interest rate swap agreements | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 3,902 | 6,566 |
Fair value of the derivative liability | 3,902 | 6,566 |
Obligations of the U.S. Treasury | ||
Assets Measured at Fair Value | ||
Total, fair value | 25,068 | 12,182 |
Obligations of U.S. Government agencies | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,312 | 26,344 |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Assets Measured at Fair Value | ||
Total, fair value | 139,244 | 122,401 |
Obligations Of States And Political Subdivisions Taxable | ||
Assets Measured at Fair Value | ||
Total, fair value | 70,493 | 47,452 |
Residential Passthrough Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 60,629 | 38,176 |
Residential Collateralized Mortgage Obligations | ||
Assets Measured at Fair Value | ||
Total, fair value | 44,593 | 57,467 |
Commercial Mortgage Backed Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 73,518 | 45,310 |
Recurring fair value measurements | ||
Assets Measured at Fair Value | ||
Total, fair value | 437,857 | 349,332 |
Marketable equity security | 981 | 1,000 |
Servicing rights | 2,247 | 1,689 |
Total asset fair value measurements | 444,987 | 358,587 |
Recurring fair value measurements | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Marketable equity security | 981 | 1,000 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 981 | 1,000 |
Recurring fair value measurements | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 437,857 | 349,332 |
Marketable equity security | 0 | 0 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 441,759 | 355,898 |
Recurring fair value measurements | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Marketable equity security | 0 | 0 |
Servicing rights | 2,247 | 1,689 |
Total asset fair value measurements | 2,247 | 1,689 |
Recurring fair value measurements | Interest rate swap agreements | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 3,902 | 6,566 |
Fair value of the derivative liability | 3,902 | 6,566 |
Recurring fair value measurements | Interest rate swap agreements | Level 1 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 0 | 0 |
Fair value of the derivative liability | 0 | 0 |
Recurring fair value measurements | Interest rate swap agreements | Level 2 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 3,902 | 6,566 |
Fair value of the derivative liability | 3,902 | 6,566 |
Recurring fair value measurements | Interest rate swap agreements | Level 3 | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 0 | 0 |
Fair value of the derivative liability | 0 | 0 |
Recurring fair value measurements | Obligations of the U.S. Treasury | ||
Assets Measured at Fair Value | ||
Total, fair value | 25,068 | 12,182 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 25,068 | 12,182 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of U.S. Government agencies | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,312 | 26,344 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,312 | 26,344 |
Recurring fair value measurements | Obligations of U.S. Government agencies | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | ||
Assets Measured at Fair Value | ||
Total, fair value | 139,244 | 122,401 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 139,244 | 122,401 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Tax Exempt | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | ||
Assets Measured at Fair Value | ||
Total, fair value | 70,493 | 47,452 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 70,493 | 47,452 |
Recurring fair value measurements | Obligations Of States And Political Subdivisions Taxable | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Passthrough Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 60,629 | 38,176 |
Recurring fair value measurements | Residential Passthrough Securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Passthrough Securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 60,629 | 38,176 |
Recurring fair value measurements | Residential Passthrough Securities | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | ||
Assets Measured at Fair Value | ||
Total, fair value | 44,593 | 57,467 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 44,593 | 57,467 |
Recurring fair value measurements | Residential Collateralized Mortgage Obligations | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 73,518 | 45,310 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 73,518 | 45,310 |
Recurring fair value measurements | Commercial Mortgage Backed Securities | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Nonrecurring fair value measurements | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 7,716 | 8,495 |
Impaired loans with a valuation allowance | 7,225 | 8,082 |
Valuation allowance | (883) | (925) |
Impaired loans, net | 6,342 | 7,157 |
Foreclosed assets held for sale | 1,374 | 1,338 |
Nonrecurring fair value measurements | Level 1 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 0 | 0 |
Impaired loans with a valuation allowance | 0 | 0 |
Valuation allowance | 0 | 0 |
Impaired loans, net | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Nonrecurring fair value measurements | Level 2 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 0 | 0 |
Impaired loans with a valuation allowance | 0 | 0 |
Valuation allowance | 0 | 0 |
Impaired loans, net | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Nonrecurring fair value measurements | Level 3 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 7,716 | 8,495 |
Impaired loans with a valuation allowance | 7,225 | 8,082 |
Valuation allowance | (883) | (925) |
Impaired loans, net | 6,342 | 7,157 |
Foreclosed assets held for sale | $ 1,374 | $ 1,338 |
FAIR VALUE MEASUREMENTS AND F_4
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Valuation Techniques Recurring (Details) - Recurring fair value measurements - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Valuation Techniques and the Unobservable Inputs | ||
Fair value | $ 2,247,000 | $ 1,689,000 |
Valuation Technique, Discounted cash flow | ||
Valuation Techniques and the Unobservable Inputs | ||
Fair value | $ 2,247,000 | $ 1,689,000 |
Valuation Technique, Discounted cash flow | Servicing rights | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 13.00% | 13.00% |
Weighted-average PSA | 221.00% | 277.00% |
Servicing fees of loan balances | 0.25% | 0.25% |
Servicing fees of payments are late | 4.00% | 4.00% |
Late fees assessed | 5.00% | 5.00% |
Miscellaneous fees per account per month | $ 1.94 | $ 1.94 |
Monthly servicing cost per account | 6 | 6 |
Additional monthly servicing cost per loan on loans more than 30 days delinquent | $ 24 | $ 24 |
Servicing costs of loans more than 30 days delinquent | 1.50% | 1.50% |
Annual increase in servicing costs | 3.00% | 3.00% |
FAIR VALUE MEASUREMENTS AND F_5
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Reconciliation (Details) - Level 3 - Servicing rights - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reconciliation of activity for Level 3 assets (servicing rights) measured at fair value on a recurring basis | ||||
Servicing rights balance, beginning of period | $ 2,116 | $ 1,284 | $ 1,689 | $ 1,277 |
Originations of servicing rights | 176 | 374 | 567 | 777 |
Unrealized (loss) gain included in earnings | (45) | (221) | (9) | (617) |
Servicing rights balance, end of period | $ 2,247 | $ 1,437 | $ 2,247 | $ 1,437 |
FAIR VALUE MEASUREMENTS AND F_6
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Valuation Techniques Nonrecurring (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | $ 7,225,000 | $ 8,082,000 |
Related allowance | 883,000 | 925,000 |
Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 6,342,000 | 7,157,000 |
Related allowance | 883,000 | 925,000 |
Foreclosed assets held for sale | 1,374,000 | 1,338,000 |
Residential mortgage | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | 179,000 | 80,000 |
Residential mortgage | Real estate loan | ||
Valuation Techniques and the Unobservable Inputs | ||
Related allowance | 139,000 | 153,000 |
Commercial | Real estate loan | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 6,480,000 | 6,501,000 |
Related allowance | 672,000 | 691,000 |
Commercial | Commercial and industrial | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 72,000 | 72,000 |
Related allowance | 72,000 | 72,000 |
Impaired Loans | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 7,225,000 | 8,082,000 |
Related allowance | 883,000 | 925,000 |
Fair value | 6,342,000 | 7,157,000 |
Impaired Loans | Valuation, Market Approach | Residential mortgage | Real estate loan | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 673,000 | 1,509,000 |
Related allowance | 139,000 | 162,000 |
Fair value | $ 534,000 | $ 1,347,000 |
Impaired Loans | Valuation, Market Approach | Residential mortgage | Real estate loan | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 33.00% | 31.00% |
Impaired Loans | Valuation, Market Approach | Commercial | Real estate loan | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | $ 6,480,000 | $ 6,501,000 |
Related allowance | 672,000 | 691,000 |
Fair value | $ 5,808,000 | $ 5,810,000 |
Impaired Loans | Valuation, Market Approach | Commercial | Real estate loan | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 27.00% | 28.00% |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | $ 72,000 | $ 72,000 |
Related allowance | 72,000 | 72,000 |
Fair value | $ 0 | $ 0 |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 100.00% | 100.00% |
Foreclosed Assets Held For Sale | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 1,374,000 | $ 1,338,000 |
Valuation allowance | 0 | 0 |
Fair value | 1,374,000 | 1,338,000 |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Commercial Real Estate Receivables | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | 1,195,000 | 1,258,000 |
Valuation allowance | 0 | 0 |
Fair value | $ 1,195,000 | $ 1,258,000 |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Commercial Real Estate Receivables | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 47.00% | 44.00% |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Residential mortgage | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 179,000 | $ 80,000 |
Valuation allowance | 0 | 0 |
Fair value | $ 179,000 | $ 80,000 |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Residential mortgage | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 52.00% | 36.00% |
FAIR VALUE MEASUREMENTS AND F_7
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Interest rate swap agreements | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Fair value derivative asset | $ 3,902 | $ 6,566 |
Reported value measurement | Level 1 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Cash and cash equivalents | 190,155 | 96,017 |
Reported value measurement | Level 2 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Certificates of deposit | 8,840 | 5,840 |
Restricted equity securities (included in Other Assets) | 9,650 | 9,970 |
Accrued interest receivable | 7,307 | 8,293 |
Short-term borrowings | 1,875 | 20,022 |
Long-term borrowings | 38,680 | 54,608 |
Senior debt | 14,685 | 0 |
Subordinated debt | 32,988 | 16,553 |
Accrued interest payable | 633 | 390 |
Reported value measurement | Level 2 | Deposits with no stated maturity | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 1,637,463 | 1,430,062 |
Reported value measurement | Level 2 | Time deposits | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 302,678 | 390,407 |
Reported value measurement | Level 3 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Loans, net | 1,563,008 | 1,632,824 |
Estimate of fair value measurement | Level 1 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Cash and cash equivalents | 190,155 | 96,017 |
Estimate of fair value measurement | Level 2 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Certificates of deposit | 8,949 | 6,054 |
Restricted equity securities (included in Other Assets) | 9,650 | 9,970 |
Accrued interest receivable | 7,307 | 8,293 |
Short-term borrowings | 1,685 | 19,974 |
Long-term borrowings | 39,229 | 55,723 |
Senior debt | 15,000 | 0 |
Subordinated debt | 33,150 | 16,680 |
Accrued interest payable | 633 | 390 |
Estimate of fair value measurement | Level 2 | Deposits with no stated maturity | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 1,637,463 | 1,430,062 |
Estimate of fair value measurement | Level 2 | Time deposits | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 304,330 | 393,566 |
Estimate of fair value measurement | Level 3 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Loans, net | $ 1,586,592 | $ 1,646,207 |