Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 04, 2022 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 $1.00 | |
Trading Symbol | CZNC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 15,605,135 | |
Entity Central Index Key | 0000810958 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Cash and due from banks: | ||
Noninterest-bearing | $ 19,471,000 | $ 16,729,000 |
Interest-bearing | 94,875,000 | 88,219,000 |
Total cash and due from banks | 114,346,000 | 104,948,000 |
Available-for-sale debt securities, at fair value | 532,913,000 | 517,679,000 |
Loans receivable | 1,538,190,000 | 1,564,849,000 |
Allowance for loan losses | (14,271,000) | (13,537,000) |
Loans, net | 1,523,919,000 | 1,551,312,000 |
Bank-owned life insurance | 30,804,000 | 30,669,000 |
Accrued interest receivable | 7,507,000 | 7,235,000 |
Bank premises and equipment, net | 21,169,000 | 20,683,000 |
Foreclosed assets held for sale | 531,000 | 684,000 |
Deferred tax asset, net | 11,818,000 | 5,887,000 |
Goodwill | 52,505,000 | 52,505,000 |
Core deposit intangibles, net | 3,206,000 | 3,316,000 |
Other assets | 31,653,000 | 32,730,000 |
TOTAL ASSETS | 2,330,371,000 | 2,327,648,000 |
Deposits: | ||
Noninterest-bearing | 552,255,000 | 521,206,000 |
Interest-bearing | 1,408,697,000 | 1,403,854,000 |
Total deposits | 1,960,952,000 | 1,925,060,000 |
Short-term borrowings | 2,357,000 | 1,803,000 |
Long-term borrowings - FHLB advances | 20,581,000 | 28,042,000 |
Senior notes, net | 14,717,000 | 14,701,000 |
Subordinated debt, net | 33,031,000 | 33,009,000 |
Accrued interest and other liabilities | 22,525,000 | 23,628,000 |
TOTAL LIABILITIES | 2,054,163,000 | 2,026,243,000 |
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 15,718,723 at March 31, 2022; issued 16,030,172 and outstanding 15,759,090 at December 31, 2021 | 16,030,000 | 16,030,000 |
Paid-in capital | 142,991,000 | 144,453,000 |
Retained earnings | 145,073,000 | 142,612,000 |
Treasury stock, at cost; 311,449 shares at March 31, 2022 and 271,082 shares at December 31, 2021 | (7,708,000) | (6,716,000) |
Accumulated other comprehensive (loss) income | (20,178,000) | 5,026,000 |
TOTAL STOCKHOLDERS' EQUITY | 276,208,000 | 301,405,000 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 2,330,371,000 | $ 2,327,648,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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 | 16,030,172 |
Common stock, shares outstanding (in shares) | 15,718,723 | 15,759,090 |
Treasury stock, shares (in shares) | 311,449 | 271,082 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest and fees on loans: | ||
Taxable | $ 18,549 | $ 19,491 |
Tax-exempt | 454 | 439 |
Income from available-for-sale debt securities: | ||
Taxable | 1,969 | 1,113 |
Tax-exempt | 722 | 642 |
Other interest and dividend income | 79 | 69 |
Total interest and dividend income | 21,773 | 21,754 |
INTEREST EXPENSE | ||
Interest on deposits | 910 | 1,278 |
Interest on short-term borrowings | 1 | 15 |
Interest on long-term borrowings - FHLB advances | 49 | 134 |
Interest on senior notes, net | 118 | 0 |
Interest on subordinated debt, net | 363 | 244 |
Total interest expense | 1,441 | 1,671 |
Net interest income | 20,332 | 20,083 |
Provision for loan losses | 891 | 259 |
Net interest income after provision for loan losses | 19,441 | 19,824 |
NONINTEREST INCOME | ||
Brokerage and insurance revenue | 522 | 326 |
Net gains from sale of loans | 382 | 1,064 |
Increase in cash surrender value of life insurance | 135 | 150 |
Other noninterest income | 588 | 1,472 |
Realized gains on available-for-sale debt securities, net | 2 | 0 |
Total noninterest income | 5,823 | 6,782 |
NONINTEREST EXPENSE | ||
Salaries and employee benefits | 10,607 | 8,895 |
Net occupancy and equipment expense | 1,411 | 1,304 |
Data processing and telecommunications expense | 1,623 | 1,380 |
Automated teller machine and interchange expense | 384 | 337 |
Pennsylvania shares tax | 488 | 491 |
Professional fees | 489 | 547 |
Other noninterest expense | 1,884 | 2,755 |
Total noninterest expense | 16,886 | 15,709 |
Income before income tax provision | 8,378 | 10,897 |
Income tax provision | 1,483 | 2,110 |
NET INCOME | $ 6,895 | $ 8,787 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $ 0.44 | $ 0.55 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | $ 0.44 | $ 0.55 |
Trust revenue | ||
NONINTEREST INCOME | ||
Revenue | $ 1,786 | $ 1,626 |
Service charges on deposit accounts | ||
NONINTEREST INCOME | ||
Revenue | 1,235 | 1,015 |
Interchange revenue from debit card transactions | ||
NONINTEREST INCOME | ||
Revenue | 963 | 881 |
Loan servicing fees, net | ||
NONINTEREST INCOME | ||
Revenue | $ 210 | $ 248 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Comprehensive (Loss) Income | ||
Net income | $ 6,895 | $ 8,787 |
Available-for-sale debt securities: | ||
Unrealized holding losses on available-for-sale debt securities | (32,025) | (6,114) |
Reclassification adjustment for (gains) realized in income | (2) | 0 |
Other comprehensive loss on available-for-sale debt securities | (32,027) | (6,114) |
Unfunded pension and postretirement obligations: | ||
Changes from plan amendments and actuarial gains and losses | 133 | (5) |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost | (11) | (4) |
Other comprehensive income (loss) on pension and postretirement obligations | 122 | (9) |
Other comprehensive loss before income tax | (31,905) | (6,123) |
Income tax related to other comprehensive loss | 6,701 | 1,287 |
Net other comprehensive loss | (25,204) | (4,836) |
Comprehensive (loss) income | $ (18,309) | $ 3,951 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 6,895 | $ 8,787 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 891 | 259 |
Realized gains on available-for-sale debt securities, net | (2) | 0 |
Net amortization of securities | 714 | 488 |
Increase in cash surrender value of life insurance | (135) | (150) |
Depreciation and amortization of bank premises and equipment | 507 | 553 |
Net accretion of purchase accounting adjustments | (340) | (818) |
Stock-based compensation | 368 | 341 |
Deferred income taxes | 770 | 462 |
Increase in fair value of servicing rights | (2) | (75) |
Gains on sales of loans, net | (382) | (1,064) |
Origination of loans held for sale | (14,752) | (32,478) |
Proceeds from sales of loans held for sale | 13,661 | 30,727 |
Increase in accrued interest receivable and other assets | (963) | (2,190) |
(Decrease) increase in accrued interest payable and other liabilities | (1,663) | 891 |
Other | 81 | (20) |
Net Cash Provided by Operating Activities | 5,648 | 5,713 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of certificates of deposit | 0 | (1,250) |
Proceeds from calls and maturities of available-for-sale debt securities | 18,746 | 17,093 |
Purchase of available-for-sale debt securities | (62,949) | (34,494) |
Redemption of Federal Home Loan Bank of Pittsburgh stock | 337 | 584 |
Purchase of Federal Home Loan Bank of Pittsburgh stock | (282) | (473) |
Net decrease in loans | 26,807 | 29,936 |
Proceeds from bank owned life insurance | 0 | 287 |
Proceeds from sales of premises and equipment | 0 | 495 |
Purchase of premises and equipment | (993) | (239) |
Proceeds from sale of foreclosed assets | 139 | 0 |
Other | 75 | 70 |
Net Cash (Used in) Provided by Investing Activities | (18,120) | 12,009 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 35,952 | 103,793 |
Net increase (decrease) in short-term borrowings | 554 | (10,211) |
Repayments of long-term borrowings - FHLB advances | (7,380) | (4,024) |
Sale of treasury stock | 141 | 77 |
Purchases of treasury stock | (3,380) | (157) |
Common dividends paid | (4,017) | (3,912) |
Net Cash Provided by Financing Activities | 21,870 | 85,566 |
INCREASE IN CASH AND CASH EQUIVALENTS | 9,398 | 103,288 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 95,848 | 96,017 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 105,246 | $ 199,305 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Accrued purchase of certificates of deposit | $ 0 | $ 750 |
Increase in accrued purchase of available-for-sale debt securities | 3,770 | 6,245 |
Assets acquired through foreclosure of real estate loans | 0 | 134 |
Interest paid | 1,116 | 2,193 |
Income taxes paid | $ 46 | $ 47 |
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 | Total |
Balance at Dec. 31, 2020 | $ 15,983 | $ (1,369) | $ 143,644 | $ 129,703 | $ 11,795 | $ 299,756 |
Balance (in shares) at Dec. 31, 2020 | 15,982,815 | 70,831 | ||||
Net income | 8,787 | 8,787 | ||||
Other comprehensive loss, net | (4,836) | (4,836) | ||||
Cash dividends declared on common stock | (4,314) | (4,314) | ||||
Shares issued for dividend reinvestment plan | $ 19 | 383 | 402 | |||
Shares issued for dividend reinvestment plan (in shares) | 19,475 | |||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 105 | (28) | 77 | |||
Shares issued from treasury and redeemed related to exercise of stock options (in shares) | (5,414) | |||||
Restricted stock granted | $ 11 | $ 1,229 | (1,240) | 0 | ||
Restricted stock granted (in shares) | 10,989 | (63,402) | ||||
Forfeiture of restricted stock | $ (73) | 73 | 0 | |||
Forfeiture of restricted stock (in shares) | 3,791 | |||||
Stock-based compensation expense | 341 | 341 | ||||
Purchase of restricted stock for tax withholding | $ (157) | (157) | ||||
Purchase of restricted stock for tax withholding (in shares) | 7,659 | |||||
Balance at Mar. 31, 2021 | $ 16,013 | $ (265) | 143,173 | 134,176 | 6,959 | 300,056 |
Balance (in shares) at Mar. 31, 2021 | 16,013,279 | 13,465 | ||||
Balance at Dec. 31, 2021 | $ 16,030 | $ (6,716) | 144,453 | 142,612 | 5,026 | 301,405 |
Balance (in shares) at Dec. 31, 2021 | 16,030,172 | 271,082 | ||||
Net income | 6,895 | 6,895 | ||||
Other comprehensive loss, net | (25,204) | (25,204) | ||||
Cash dividends declared on common stock | (4,434) | (4,434) | ||||
Shares issued for dividend reinvestment plan | $ 405 | 12 | 417 | |||
Shares issued for dividend reinvestment plan (in shares) | (16,134) | |||||
Shares issued from treasury and redeemed related to exercise of stock options | $ 175 | (34) | 141 | |||
Shares issued from treasury and redeemed related to exercise of stock options (in shares) | (7,024) | |||||
Restricted stock granted | $ 1,932 | (1,932) | 0 | |||
Restricted stock granted (in shares) | (78,243) | |||||
Forfeiture of restricted stock | $ (124) | 124 | 0 | |||
Forfeiture of restricted stock (in shares) | 6,072 | |||||
Stock-based compensation expense | 368 | 368 | ||||
Purchase of restricted stock for tax withholding | $ (153) | (153) | ||||
Purchase of restricted stock for tax withholding (in shares) | 6,054 | |||||
Treasury stock purchases | $ (3,227) | (3,227) | ||||
Treasury stock purchases (in shares) | 129,642 | |||||
Balance at Mar. 31, 2022 | $ 16,030 | $ (7,708) | $ 142,991 | $ 145,073 | $ (20,178) | $ 276,208 |
Balance (in shares) at Mar. 31, 2022 | 16,030,172 | 311,449 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Retained Earnings | ||
Common stock, dividends, per share (in dollars per share) | $ 0.28 | $ 0.27 |
BASIS OF INTERIM PRESENTATION A
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2022 | |
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, LLC and Northern Tier Holding LLC. C&N Bank is the sole member of C&N Financial Services, LLC and 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, 2021, 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. Operating results reported for the three-month period ended March 31, 2022 might not be indicative of the results for the year ending December 31, 2022. 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. |
PER SHARE DATA
PER SHARE DATA | 3 Months Ended |
Mar. 31, 2022 | |
PER SHARE DATA | |
PER SHARE DATA | 2. 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 March 31, March 31, 2022 2021 Basic Net income $ 6,895 $ 8,787 Less: Dividends and undistributed earnings allocated to participating securities (60) (65) Net income attributable to common shares $ 6,835 $ 8,722 Basic weighted-average common shares outstanding 15,645,474 15,850,217 Basic earnings per common share (a) $ 0.44 $ 0.55 Diluted Net income attributable to common shares $ 6,835 $ 8,722 Basic weighted-average common shares outstanding 15,645,474 15,850,217 Dilutive effect of potential common stock arising from stock options 3,701 4,234 Diluted weighted-average common shares outstanding 15,649,175 15,854,451 Diluted earnings per common share (a) $ 0.44 $ 0.55 Weighted-average nonvested restricted shares outstanding 138,141 118,442 (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 periods ended March 31, 2022 and 2021. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2022 | |
COMPREHENSIVE INCOME | |
COMPREHENSIVE INCOME | 3. COMPREHENSIVE (LOSS) INCOME Comprehensive (loss) 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 (loss) income. The components of other comprehensive (loss) income, and the related tax effects, are as follows: (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended March 31, 2022 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (32,025) $ 6,726 $ (25,299) Reclassification adjustment for (gains) realized in income (2) 0 (2) Other comprehensive loss from available-for-sale debt securities (32,027) 6,726 (25,301) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 133 (27) 106 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (11) 2 (9) Other comprehensive income on unfunded retirement obligations 122 (25) 97 Total other comprehensive loss $ (31,905) $ 6,701 $ (25,204) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended March 31, 2021 Available-for-sale debt securities, Unrealized holding losses on available-for-sale debt securities $ (6,114) $ 1,285 $ (4,829) 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 (4) 1 (3) Other comprehensive loss on unfunded retirement obligations (9) 2 (7) Total other comprehensive loss $ (6,123) $ 1,287 $ (4,836) 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 (loss) income are as follows and are presented net of tax: (In Thousands) Unrealized Accumulated (Losses) Unfunded Other Gains Retirement Comprehensive on Securities Obligations (Loss) Income Three Months Ended March 31, 2022 Balance, beginning of period $ 4,809 $ 217 $ 5,026 Other comprehensive (loss) income during three months ended March 31, 2022 (25,301) 97 (25,204) Balance, end of period $ (20,492) $ 314 $ (20,178) Three Months Ended March 31, 2021 Balance, beginning of period $ 11,676 $ 119 $ 11,795 Other comprehensive loss during three months ended March 31, 2021 (4,829) (7) (4,836) Balance, end of period $ 6,847 $ 112 $ 6,959 |
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS | 3 Months Ended |
Mar. 31, 2022 | |
CASH AND DUE FROM BANKS | |
CASH AND DUE FROM BANKS | 4. CASH AND DUE FROM BANKS Cash and due from banks at March 31, 2022 and December 31, 2021 include the following: (In Thousands) March 31, December 31, 2022 2021 Cash and cash equivalents $ 105,246 $ 95,848 Certificates of deposit 9,100 9,100 Total cash and due from banks $ 114,346 $ 104,948 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 March 31, 2022 or December 31, 2021. |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
SECURITIES | |
SECURITIES | 5. SECURITIES Amortized cost and fair value of available-for-sale debt securities at March 31, 2022 and December 31, 2021 are summarized as follows: (In Thousands) March 31, 2022 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 38,152 $ 0 $ (1,658) $ 36,494 Obligations of U.S. Government agencies 24,455 150 (1,197) 23,408 Bank holding company debt securities 24,942 0 (899) 24,043 Obligations of states and political subdivisions: Tax-exempt 149,140 963 (6,470) 143,633 Taxable 73,732 293 (4,396) 69,629 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 112,122 107 (5,661) 106,568 Residential collateralized mortgage obligations 45,628 4 (1,764) 43,868 Commercial mortgage-backed securities 90,682 119 (5,531) 85,270 Total available-for-sale debt securities $ 558,853 $ 1,636 $ (27,576) $ 532,913 (In Thousands) December 31, 2021 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 25,058 $ 52 $ (198) $ 24,912 Obligations of U.S. Government agencies 23,936 563 (408) 24,091 Bank holding company debt securities 18,000 18 (31) 17,987 Obligations of states and political subdivisions: Tax-exempt 143,427 4,749 (148) 148,028 Taxable 72,182 1,232 (649) 72,765 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 98,048 705 (572) 98,181 Residential collateralized mortgage obligations 44,015 437 (205) 44,247 Commercial mortgage-backed securities 86,926 1,548 (1,006) 87,468 Total available-for-sale debt securities $ 511,592 $ 9,304 $ (3,217) $ 517,679 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 March 31, 2022 and December 31, 2021: March 31, 2022 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 $ 36,494 $ (1,658) $ 0 $ 0 $ 36,494 $ (1,658) Obligations of U.S. Government agencies 4,812 (61) 11,363 (1,136) 16,175 (1,197) Bank holding company debt securities 21,043 (899) 0 0 21,043 (899) Obligations of states and political subdivisions: Tax-exempt 104,057 (6,341) 1,719 (129) 105,776 (6,470) Taxable 46,674 (3,692) 5,814 (704) 52,488 (4,396) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 98,253 (5,374) 3,737 (287) 101,990 (5,661) Residential collateralized mortgage obligations 41,916 (1,764) 0 0 41,916 (1,764) Commercial mortgage-backed securities 67,400 (4,568) 7,153 (963) 74,553 (5,531) Total temporarily impaired available-for-sale debt securities $ 420,649 $ (24,357) $ 29,786 $ (3,219) $ 450,435 $ (27,576) December 31, 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 $ 18,886 $ (198) $ 0 $ 0 $ 18,886 $ (198) Obligations of U.S. Government agencies 9,735 (264) 4,856 (144) 14,591 (408) Bank holding company debt securities 12,969 (31) 0 0 12,969 (31) Obligations of states and political subdivisions: Tax-exempt 17,852 (141) 549 (7) 18,401 (148) Taxable 31,261 (517) 3,277 (132) 34,538 (649) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 71,451 (572) 0 0 71,451 (572) Residential collateralized mortgage obligations 15,117 (205) 0 0 15,117 (205) Commercial mortgage-backed securities 52,867 (1,006) 0 0 52,867 (1,006) Total temporarily impaired available-for-sale debt securities $ 230,138 $ (2,934) $ 8,682 $ (283) $ 238,820 $ (3,217) Gross realized gains and losses from available-for-sale debt securities were as follows: (In Thousands) Three Months Ended March 31, March 31, 2022 2021 Gross realized gains from sales $ 2 $ 0 Gross realized losses from sales 0 0 Net realized gains $ 2 $ 0 The amortized cost and fair value of available-for-sale debt securities by contractual maturity are shown in the following table as of March 31, 2022. 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) March 31, 2022 Amortized Fair Cost Value Due in one year or less $ 12,457 $ 12,483 Due from one year through five years 77,304 75,288 Due from five years through ten years 86,104 82,906 Due after ten years 134,556 126,530 Sub-total 310,421 297,207 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 112,122 106,568 Residential collateralized mortgage obligations 45,628 43,868 Commercial mortgage-backed securities 90,682 85,270 Total $ 558,853 $ 532,913 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 $237,165,000 at March 31, 2022 and $241,428,000 at December 31, 2021 were pledged as collateral for public deposits, trusts and certain other deposits as provided by law. See Note 8 for information concerning securities pledged to secure borrowing arrangements and Note 11 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 March 31, 2022 is provided below. Debt Securities At March 31, 2022 and December 31, 2021, 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. As reflected in the table above, the fair value of available-for-sale debt securities as of March 31, 2022 was lower than the amortized cost basis by $25,940,000, or 4.6%. In comparison, the aggregate unrealized gain position was $6,087,000 (1.2%) at December 31, 2021. The unrealized decrease in fair value of the portfolio in the first quarter 2022 was consistent with the significant increase in market interest rates that occurred during the period. Based on the results of the assessment, management believes there were no credit-related declines in fair value and that impairment of debt securities at March 31, 2022 and December 31, 2021 is 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 $9,258,000 at March 31, 2022 and $9,313,000 at December 31, 2021. The Corporation evaluated its holding of FHLB-Pittsburgh stock for impairment and deemed the stock to not be impaired at March 31, 2022 and December 31, 2021. 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 $926,000 at March 31, 2022 and $971,000 at December 31, 2021, consisting exclusively of one mutual fund. There was an unrealized loss on the mutual fund of $45,000 at March 31, 2022 and $29,000 at December 31, 2021. Changes in the unrealized gains or losses on this security are included in other noninterest income in the consolidated statements of income. |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2022 | |
LOANS | |
LOANS | 6. LOANS The loans receivable portfolio is segmented into commercial, residential mortgage and consumer loans. Loans outstanding at March 31, 2022 and December 31, 2021 are summarized by segment, and by classes within each segment, as follows: Summary of Loans by Type (In Thousands) March 31, December 31, 2022 2021 Commercial: Commercial loans secured by real estate $ 585,677 $ 569,840 Commercial and industrial 159,793 159,073 Paycheck Protection Program - 1st Draw 887 1,356 Paycheck Protection Program - 2nd Draw 11,490 25,508 Political subdivisions 81,975 81,301 Commercial construction and land 37,258 60,579 Loans secured by farmland 12,507 11,121 Multi-family (5 or more) residential 53,141 50,089 Agricultural loans 2,588 2,351 Other commercial loans 14,827 17,153 Total commercial 960,143 978,371 Residential mortgage: Residential mortgage loans - first liens 481,119 483,629 Residential mortgage loans - junior liens 22,572 23,314 Home equity lines of credit 39,649 39,252 1-4 Family residential construction 16,945 23,151 Total residential mortgage 560,285 569,346 Consumer 17,762 17,132 Total 1,538,190 1,564,849 Less: allowance for loan losses (14,271) (13,537) Loans, net $ 1,523,919 $ 1,551,312 In the table above, outstanding loan balances are presented net of deferred loan origination fees, net, of $3,735,000 at March 31, 2022 and $4,427,000 at December 31, 2021. 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. 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, provided SBA-guaranteed loans to small businesses to pay their employees, rent, mortgage interest, and utilities. PPP loans are 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. 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 relief from troubled debt restructurings reporting established under Section 4013 of the CARES Act to 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 acquired PPP loans, are recognized in interest income as a yield adjustment over the term of the loans. As of March 31, 2022, the recorded investment in 1st Draw PPP loans was $887,000, including contractual principal balances of $905,000, reduced by net deferred origination fees of $18,000. The recorded investment in 2nd Draw PPP loans was $11,490,000, including contractual principal balances of $11,847,000 reduced by net deferred origination fees of $357,000. Interest and fees on PPP loans which are included in taxable interest and fees on loans in the unaudited consolidated statements of income totaled $575,000 in the three-month period ended March 31, 2022 and $1,998,000 in the three-month period ended March 31, 2021. Acquired loans were initially recorded at fair value, with adjustments made to gross amortized cost based on movements in interest rates (market rate adjustment) and based on credit fair value adjustments on non-impaired loans and impaired loans. Subsequently, 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 periods ended March 31, 2022 and 2021, adjustments to the initial market rate and credit fair value adjustments of performing loans were recognized as follows: (In Thousands) Three Months Ended March 31, March 31, 2022 2021 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ (637) $ 718 Amortization recognized in interest income (248) (366) Adjustments to gross amortized cost of loans at end of period $ (885) $ 352 Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (3,335) $ (5,979) Accretion recognized in interest income 553 797 Adjustments to gross amortized cost of loans at end of period $ (2,782) $ (5,182) A summary of PCI loans held at March 31, 2022 and December 31, 2021 is as follows: (In Thousands) March 31, December 31, 2022 2021 Outstanding balance $ 5,966 $ 9,802 Carrying amount 3,983 6,558 In the three-month period ended March 31, 2022, the Corporation received repayments on PCI loans in excess of previous carrying amounts, resulting in income of $1,398,000. This amount is included in interest and fees on taxable loans in the unaudited consolidated statements of income. There was no corresponding income from repayments on PCI loans in the three-month period ended March 31, 2021. 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 March 31, 2022 and December 31, 2021, 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 periods ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 December 31, 2021 March 31, 2022 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 4,405 $ 0 $ 0 $ 612 $ 5,017 Commercial and industrial 2,723 (150) 0 268 2,841 Commercial construction and land 637 0 0 (246) 391 Loans secured by farmland 115 0 0 14 129 Multi-family (5 or more) residential 215 0 0 152 367 Agricultural loans 25 0 0 2 27 Other commercial loans 173 0 0 (23) 150 Total commercial 8,293 (150) 0 779 8,922 Residential mortgage: Residential mortgage loans - first liens 3,650 0 1 159 3,810 Residential mortgage loans - junior liens 184 0 0 (3) 181 Home equity lines of credit 302 0 15 (11) 306 1-4 Family residential construction 202 0 0 (54) 148 Total residential mortgage 4,338 0 16 91 4,445 Consumer 235 (30) 7 25 237 Unallocated 671 0 0 (4) 667 Total Allowance for Loan Losses $ 13,537 $ (180) $ 23 $ 891 $ 14,271 Three Months Ended March 31, 2021 December 31, 2020 March 31, 2021 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 3,051 $ 0 $ 0 $ 299 $ 3,350 Commercial and industrial 2,245 0 14 (72) 2,187 Commercial construction and land 454 0 0 22 476 Loans secured by farmland 120 0 0 (9) 111 Multi-family (5 or more) residential 236 0 0 19 255 Agricultural loans 34 0 0 (8) 26 Other commercial loans 168 0 0 (9) 159 Total commercial 6,308 0 14 242 6,564 Residential mortgage: Residential mortgage loans - first liens 3,524 0 1 (18) 3,507 Residential mortgage loans - junior liens 349 0 0 (15) 334 Home equity lines of credit 281 0 1 (1) 281 1-4 Family residential construction 99 0 0 (21) 78 Total residential mortgage 4,253 0 2 (55) 4,200 Consumer 239 (11) 12 (20) 220 Unallocated 585 0 0 92 677 Total Allowance for Loan Losses $ 11,385 $ (11) $ 28 $ 259 $ 11,661 For the three months ended March 31, 2022, the provision for loan losses was $891,000, an increase in expense of $632,000 as compared to $259,000 for the three months ended March 31, 2021. The first quarter 2022 provision included a net charge of $147,000 related to specific loans (net charge-offs of $157,000 offset by a net decrease in specific allowances on loans of $10,000), an increase of $748,000 in the collectively determined portion of the allowance and a decrease of $4,000 in the unallocated portion of the allowance. The increase in the collectively determined portion of the allowance reflected the impact of an increase in volume of commercial loans, excluding PPP loans. The first quarter 2021 provision included a net charge of $182,000 related to specific loans (increase in specific allowances on loans of $199,000, partially offset by net recoveries of $17,000), an increase of $92,000 in the unallocated portion of the allowance and a reduction of $15,000 attributable to decreases in the collectively determined portion of the allowance for loan losses. 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 March 31, 2022 and December 31, 2021: March 31, 2022 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 547,705 $ 18,000 $ 16,098 $ 0 $ 3,874 $ 585,677 Commercial and Industrial 144,864 11,030 3,860 0 39 159,793 Paycheck Protection Program - 1st Draw 887 0 0 0 0 887 Paycheck Protection Program - 2nd Draw 11,490 0 0 0 0 11,490 Political subdivisions 81,975 0 0 0 0 81,975 Commercial construction and land 36,496 714 48 0 0 37,258 Loans secured by farmland 11,319 287 901 0 0 12,507 Multi-family (5 or more) residential 52,274 0 867 0 0 53,141 Agricultural loans 2,054 0 534 0 0 2,588 Other commercial loans 14,826 1 0 0 0 14,827 Total commercial 903,890 30,032 22,308 0 3,913 960,143 Residential Mortgage: Residential mortgage loans - first liens 466,862 7,548 6,640 0 69 481,119 Residential mortgage loans - junior liens 22,182 57 332 0 1 22,572 Home equity lines of credit 38,961 59 629 0 0 39,649 1-4 Family residential construction 16,945 0 0 0 0 16,945 Total residential mortgage 544,950 7,664 7,601 0 70 560,285 Consumer 17,713 0 49 0 0 17,762 Totals $ 1,466,553 $ 37,696 $ 29,958 $ 0 $ 3,983 $ 1,538,190 December 31, 2021 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 538,966 $ 10,510 $ 16,220 $ 0 $ 4,144 $ 569,840 Commercial and Industrial 142,775 10,841 4,694 0 763 159,073 Paycheck Protection Program - 1st Draw 1,356 0 0 0 0 1,356 Paycheck Protection Program - 2nd Draw 25,508 0 0 0 0 25,508 Political subdivisions 81,301 0 0 0 0 81,301 Commercial construction and land 59,816 715 48 0 0 60,579 Loans secured by farmland 10,011 186 924 0 0 11,121 Multi-family (5 or more) residential 47,638 0 873 0 1,578 50,089 Agricultural loans 1,802 0 549 0 0 2,351 Other commercial loans 17,150 3 0 0 0 17,153 Total commercial 926,323 22,255 23,308 0 6,485 978,371 Residential Mortgage: Residential mortgage loans - first liens 469,044 7,981 6,534 0 70 483,629 Residential mortgage loans - junior liens 22,914 114 283 0 3 23,314 Home equity lines of credit 38,652 59 541 0 0 39,252 1-4 Family residential construction 23,151 0 0 0 0 23,151 Total residential mortgage 553,761 8,154 7,358 0 73 569,346 Consumer 17,092 0 40 0 0 17,132 Totals $ 1,497,176 $ 30,409 $ 30,706 $ 0 $ 6,558 $ 1,564,849 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 March 31, 2022 and December 31, 2021. March 31, 2022 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 10,593 $ 575,084 $ 585,677 $ 658 $ 4,359 $ 5,017 Commercial and industrial 664 159,129 159,793 72 2,769 2,841 Paycheck Protection Program - 1st Draw 0 887 887 0 0 0 Paycheck Protection Program - 2nd Draw 0 11,490 11,490 0 0 0 Political subdivisions 0 81,975 81,975 0 0 0 Commercial construction and land 48 37,210 37,258 0 391 391 Loans secured by farmland 82 12,425 12,507 0 129 129 Multi-family (5 or more) residential 0 53,141 53,141 0 367 367 Agricultural loans 60 2,528 2,588 0 27 27 Other commercial loans 0 14,827 14,827 0 150 150 Total commercial 11,447 948,696 960,143 730 8,192 8,922 Residential mortgage: Residential mortgage loans - first liens 523 480,596 481,119 0 3,810 3,810 Residential mortgage loans - junior liens 35 22,537 22,572 0 181 181 Home equity lines of credit 0 39,649 39,649 0 306 306 1-4 Family residential construction 0 16,945 16,945 0 148 148 Total residential mortgage 558 559,727 560,285 0 4,445 4,445 Consumer 0 17,762 17,762 0 237 237 Unallocated 667 Total $ 12,005 $ 1,526,185 $ 1,538,190 $ 730 $ 12,874 $ 14,271 December 31, 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 $ 10,926 $ 558,914 $ 569,840 $ 669 $ 3,736 $ 4,405 Commercial and industrial 2,503 156,570 159,073 71 2,652 2,723 Paycheck Protection Program - 1st Draw 0 1,356 1,356 0 0 0 Paycheck Protection Program - 2nd Draw 0 25,508 25,508 0 0 0 Political subdivisions 0 81,301 81,301 0 0 0 Commercial construction and land 0 60,579 60,579 0 637 637 Loans secured by farmland 83 11,038 11,121 0 115 115 Multi-family (5 or more) residential 1,578 48,511 50,089 0 215 215 Agricultural loans 0 2,351 2,351 0 25 25 Other commercial loans 0 17,153 17,153 0 173 173 Total commercial 15,090 963,281 978,371 740 7,553 8,293 Residential mortgage: Residential mortgage loans - first liens 630 482,999 483,629 0 3,650 3,650 Residential mortgage loans - junior liens 14 23,300 23,314 0 184 184 Home equity lines of credit 0 39,252 39,252 0 302 302 1-4 Family residential construction 0 23,151 23,151 0 202 202 Total residential mortgage 644 568,702 569,346 0 4,338 4,338 Consumer 0 17,132 17,132 0 235 235 Unallocated 671 Total $ 15,734 $ 1,549,115 $ 1,564,849 $ 740 $ 12,126 $ 13,537 Summary information related to impaired loans at March 31, 2022 and December 31, 2021 is provided in the table immediately below. (In Thousands) March 31, 2022 December 31, 2021 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 $ 6,253 $ 4,137 $ 0 $ 6,600 $ 4,458 $ 0 Commercial and industrial 3,199 592 0 5,213 2,431 0 Residential mortgage loans - first liens 637 523 0 656 630 0 Residential mortgage loans - junior liens 142 35 0 124 14 0 Loans secured by farmland 82 82 0 83 83 0 Agricultural loans 60 60 0 0 0 0 Construction and other land loans 48 48 0 0 0 0 Multi-family (5 or more) residential 0 0 0 2,734 1,578 0 Total with no related allowance recorded 10,421 5,477 0 15,410 9,194 0 With a related allowance recorded: Commercial loans secured by real estate 6,456 6,456 658 6,468 6,468 668 Commercial and industrial 72 72 72 72 72 72 Total with a related allowance recorded 6,528 6,528 730 6,540 6,540 740 Total $ 16,949 $ 12,005 $ 730 $ 21,950 $ 15,734 $ 740 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 Three Months Ended March 31, March 31, 2022 2021 2022 2021 Commercial: Commercial loans secured by real estate $ 10,735 $ 12,203 $ 129 $ 143 Commercial and industrial 1,626 1,082 4 12 Commercial construction and land 48 49 1 1 Loans secured by farmland 82 84 0 1 Multi-family (5 or more) residential 789 1,596 0 61 Agricultural loans 63 69 2 2 Total commercial 13,343 15,083 136 220 Residential mortgage: Residential mortgage loans - first lien 565 2,451 7 37 Residential mortgage loans - junior lien 37 437 1 5 Home equity lines of credit 0 18 1 0 Total residential mortgage 602 2,906 9 42 Total $ 13,945 $ 17,989 $ 145 $ 262 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) March 31, 2022 December 31, 2021 Past Due Past Due 90+ Days and 90+ Days and Accruing Nonaccrual Accruing Nonaccrual Commercial: Commercial loans secured by real estate $ 1,217 $ 10,593 $ 738 $ 10,885 Commercial and industrial 788 376 30 2,299 Commercial construction and land 0 47 0 48 Loans secured by farmland 0 81 28 83 Multi-family (5 or more) residential 0 0 0 1,578 Agricultural loans 60 0 65 0 Total commercial 2,065 11,097 861 14,893 Residential mortgage: Residential mortgage loans - first liens 1,139 3,638 1,144 4,005 Residential mortgage loans - junior liens 76 2 69 3 Home equity lines of credit 102 167 102 82 Total residential mortgage 1,317 3,807 1,315 4,090 Consumer 47 41 43 16 Totals $ 3,429 $ 14,945 $ 2,219 $ 18,999 The amounts shown in the table immediately above include loans classified as troubled debt restructurings (described in more detail below), if such loans are past due ninety days or more or nonaccrual. PCI loans with a total recorded investment of $3,983,000 at March 31, 2022 and $6,558,000 at December 31, 2021 are classified as nonaccrual. The table below presents a summary of the contractual aging of loans as of March 31, 2022 and December 31, 2021. Loans modified under the Corporation’s program designed to work with clients impacted by COVID-19 are included in the current and past due less than 30 days category in the table that follows. (In Thousands) As of March 31, 2022 As of December 31, 2021 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 $ 579,837 $ 192 $ 5,648 $ 585,677 $ 563,658 $ 762 $ 5,420 $ 569,840 Commercial and industrial 159,613 75 105 159,793 158,188 72 813 159,073 Paycheck Protection Program - 1st Draw 145 0 742 887 1,339 17 0 1,356 Paycheck Protection Program - 2nd Draw 11,490 0 0 11,490 25,508 0 0 25,508 Political subdivisions 81,975 0 0 81,975 81,301 0 0 81,301 Commercial construction and land 37,083 128 47 37,258 60,509 70 0 60,579 Loans secured by farmland 12,426 0 81 12,507 11,010 0 111 11,121 Multi-family (5 or more) residential 53,141 0 0 53,141 48,532 0 1,557 50,089 Agricultural loans 2,528 0 60 2,588 2,279 7 65 2,351 Other commercial loans 14,827 0 0 14,827 17,153 0 0 17,153 Total commercial 953,065 395 6,683 960,143 969,477 928 7,966 978,371 Residential mortgage: Residential mortgage loans - first liens 473,710 5,142 2,267 481,119 475,637 5,038 2,954 483,629 Residential mortgage loans - junior liens 22,457 39 76 22,572 23,229 16 69 23,314 Home equity lines of credit 39,314 233 102 39,649 38,830 279 143 39,252 1-4 Family residential construction 16,945 0 0 16,945 23,151 0 0 23,151 Total residential mortgage 552,426 5,414 2,445 560,285 560,847 5,333 3,166 569,346 Consumer 17,626 48 88 17,762 17,001 72 59 17,132 Totals $ 1,523,117 $ 5,857 $ 9,216 $ 1,538,190 $ 1,547,325 $ 6,333 $ 11,191 $ 1,564,849 Nonaccrual loans are included in the contractual aging in the immediately preceding table. A summary of the contractual aging of nonaccrual loans at March 31, 2022 and December 31, 2021 is as follows: (In Thousands) Current & Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Total March 31, 2022 Nonaccrual Totals $ 7,169 $ 1,989 $ 5,787 $ 14,945 December 31, 2021 Nonaccrual Totals $ 8,800 $ 1,227 $ 8,972 $ 18,999 Loans whose terms are modified are classified as troubled debt restructurings (TDRs) if the Corporation grants such borrowers concessions, and it is deemed that those borrowers are experiencing financial difficulty. Loans classified as TDRs are designated as impaired. The outstanding balance of loans subject to TDRs, as well as contractual aging information at March 31, 2022 and December 31, 2021 is as follows: (In Thousands) Current & Past Due Past Due Past Due Less than 30-89 90+ 30 Days Days Days Nonaccrual Total March 31, 2022 Totals $ 243 $ 36 $ 60 $ 3,894 $ 4,233 December 31, 2021 Totals $ 248 $ 40 $ 65 $ 5,452 $ 5,805 At March 31, 2022 and December 31, 2021, there were no commitments to loan additional funds to borrowers whose loans have been classified as TDRs. TDRs that occurred during the three-month periods ended March 31, 2022 and 2021 are as follows: (Balances in Thousands) Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 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 0 $ 0 1 $ 12 Consumer, Reduced monthly payments and extended maturity date 0 0 1 24 Total 0 $ 0 2 $ 36 In the three-month periods ended March 31, 2022 and 2021, defaults on loans for which modifications that were considered to be TDR and were entered into within the previous 12 months are summarized as follows: (Balances in Thousands) Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Number Number of Recorded of Recorded Loans Investment Loans Investment Commercial loans secured by real estate 0 $ 0 1 $ 3,392 Total 0 $ 0 1 $ 3,392 The carrying amount of foreclosed residential real estate properties held as a result of obtaining physical possession (included in foreclosed assets held for sale in the unaudited consolidated balance sheets) is as follows: (In Thousands) March 31, December 31, 2022 2021 Foreclosed residential real estate $ 256 $ 256 The recorded investment of consumer mortgage loans secured by residential real properties for which formal foreclosure proceedings were in process is as follows: (In Thousands) March 31, December 31, 2022 2021 Residential real estate in process of foreclosure $ 1,547 $ 1,260 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 7. GOODWILL AND OTHER INTANGIBLE ASSETS Information related to core deposit intangibles is as follows: (In Thousands) March 31, December 31, 2022 2021 Gross amount $ 6,639 $ 6,639 Accumulated amortization (3,433) (3,323) Net $ 3,206 $ 3,316 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 March 31, March 31, 2022 2021 Amortization expense $ 110 $ 134 Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired. At March 31, 2022 and December 31, 2021, the net carrying value of goodwill was $52,505,000. |
BORROWED FUNDS
BORROWED FUNDS | 3 Months Ended |
Mar. 31, 2022 | |
BORROWED FUNDS | |
BORROWED FUNDS | 8. BORROWED FUNDS SHORT-TERM BORROWINGS Short-term borrowings (initial maturity within one year) include the following: (In Thousands) March 31, December 31, 2022 2021 FHLB-Pittsburgh borrowings $ 0 $ 0 Customer repurchase agreements 2,357 1,803 Total short-term borrowings $ 2,357 $ 1,803 The Corporation had available credit with other correspondent banks totaling $45,000,000 at March 31, 2022 and December 31, 2021. These lines of credit are primarily unsecured. No amounts were outstanding at March 31, 2022 or December 31, 2021. The Corporation has a line of credit with the Federal Reserve Bank of Philadelphia’s Discount Window. At March 31, 2022, the Corporation had available credit in the amount of $12,429,000 on this line with no outstanding advances. At December 31, 2021, the Corporation had available credit in the amount of $13,642,000 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 $12,817,000 at March 31, 2022 and $14,034,000 at December 31, 2021. 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 March 31, 2022 and December 31, 2021. The carrying value of the underlying securities was $2,380,000 at March 31, 2022 and $1,820,000 at December 31, 2021. The FHLB-Pittsburgh loan facility is collateralized by qualifying loans secured by real estate with a book value totaling $1,077,215,000 at March 31, 2022 and $1,046,242,000 at December 31, 2021. 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 $9,258,000 at March 31, 2022 and $9,313,000 at December 31, 2021. The Corporation’s total credit facility with FHLB-Pittsburgh was $757,811,000 at March 31, 2022, including an unused (available) amount of $731,429,000. At December 31, 2021, the Corporation’s total credit facility with FHLB-Pittsburgh was $756,868,000, including an unused (available) amount of $723,557,000. At March 31, 2022 and December 31, 2021, there were no overnight borrowings or short-term advances from FHLB-Pittsburgh. LONG-TERM BORROWINGS – FHLB ADVANCES Long-term borrowings from FHLB-Pittsburgh are as follows: (In Thousands) March 31, December 31, 2022 2021 Loans maturing in 2022 with a weighted-average rate of 0.58% $ 8,050 $ 15,452 Loans maturing in 2023 with a weighted-average rate of 0.73% 7,093 7,119 Loan maturing in 2024 with a rate of 0.75% 5,090 5,099 Loan maturing in 2025 with a rate of 4.91% 348 372 Total long-term FHLB-Pittsburgh borrowings $ 20,581 $ 28,042 Note: Weighted-average rates are presented as of March 31, 2022. 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 prior to maturity 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 $16,000 in the first quarter 2022 was included in interest expense in the unaudited consolidated statements of income. At March 31, 2022 and December 31, 2021, outstanding Senior Notes are as follows: (In Thousands) March 31, December 31, 2022 2021 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 $ 14,717 $ 14,701 Total carrying value $ 14,717 $ 14,701 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 $26,000 in the first quarter 2022 was included in interest expense in the unaudited consolidated statements of income. At March 31, 2022 and December 31, 2021, the carrying amounts of subordinated debt agreements are as follows: (In Thousands) March 31, December 31, 2022 2021 Agreements with an aggregate par value of $6,500,000; bearing interest at 6.50%; maturing in April 2027 and redeemed 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 2,004 2,008 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 24,527 24,501 Total carrying value $ 33,031 $ 33,009 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2022 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | 9. 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 2022 restricted stock awards under the Stock Incentive Plan vest ratably over three years, and the 2022 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 three-month period ended March 31, 2022: (Dollars in Thousands) Aggregate Grant Date Number of Fair Shares Value 1st quarter 2022 awards: Time-based awards to independent directors 9,588 $ 240 Time-based awards to employees 51,638 1,293 Performance-based awards to employees 17,017 426 Total 78,243 $ 1,959 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, 2022 is estimated to total $1,622,000. Total stock-based compensation expense attributable to restricted stock awards amounted to $368,000 in the first quarter 2022 and $341,000 in the first quarter 2021. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
CONTINGENCIES | |
CONTINGENCIES | 10. CONTINGENCIES In the normal course of business, the Corporation is subject to pending and threatened litigation in which claims for monetary damages are asserted. In management’s opinion, the Corporation’s financial position and results of operations would not be materially affected by the outcome of these legal proceedings. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | 11. 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 loan 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 $122,138,000 at March 31, 2022 and $123,904,000 at December 31, 2021. There were no interest rate swaps originated in the first quarter 2022 or first quarter 2021. There were no gross amounts of interest rate swap-related assets and liabilities not offset in the consolidated balance sheets at March 31, 2022. The net impact on the consolidated statements of income from interest rate swaps was a reduction in interest income on loans of $317,000 in the first quarter 2022 as compared to a reduction in interest income on loans of $338,000 in the first quarter 2021. 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 March 31, 2022 and December 31, 2021: (In Thousands) At March 31, 2022 At December 31, 2021 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 $ 61,069 $ 137 $ 61,069 $ 137 $ 61,547 $ 3,104 $ 61,547 $ 3,104 (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 $3,965,000 were pledged as collateral against the Corporation’s obligations related to the interest rate swaps at March 31, 2022. |
FAIR VALUE MEASUREMENTS AND FAI
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | 12. 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 March 31, 2022 and December 31, 2021, assets and liabilities measured at fair value and the valuation methods used are as follows: March 31, 2022 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 $ 36,494 $ 0 $ 0 $ 36,494 Obligations of U.S. Government agencies 0 23,408 0 23,408 Bank holding company debt securities 0 24,043 0 24,043 Obligations of states and political subdivisions: Tax-exempt 0 143,633 0 143,633 Taxable 0 69,629 0 69,629 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 106,568 0 106,568 Residential collateralized mortgage obligations 0 43,868 0 43,868 Commercial mortgage-backed securities 0 85,270 0 85,270 Total available-for-sale debt securities 36,494 496,419 0 532,913 Marketable equity security 926 0 0 926 Servicing rights 0 0 2,429 2,429 Interest rate swap agreements, assets 0 137 0 137 Total recurring fair value measurements, assets $ 37,420 $ 496,556 $ 2,429 $ 536,405 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 137 $ 0 $ 137 Nonrecurring fair value measurements, assets: Impaired loans, net $ 0 $ 0 $ 5,798 $ 5,798 Foreclosed assets held for sale 0 0 531 531 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 6,329 $ 6,329 December 31, 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 $ 24,912 $ 0 $ 0 $ 24,912 Obligations of U.S. Government agencies 0 24,091 0 24,091 Bank holding company debt securities 0 17,987 0 17,987 Obligations of states and political subdivisions: Tax-exempt 0 148,028 0 148,028 Taxable 0 72,765 0 72,765 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 98,181 0 98,181 Residential collateralized mortgage obligations 0 44,247 0 44,247 Commercial mortgage-backed securities 0 87,468 0 87,468 Total available-for-sale debt securities 24,912 492,767 0 517,679 Marketable equity security 971 0 0 971 Servicing rights 0 0 2,329 2,329 Interest rate swap agreements, assets 0 3,104 0 3,104 Total recurring fair value measurements, assets $ 25,883 $ 495,871 $ 2,329 $ 524,083 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 3,104 $ 0 $ 3,104 Nonrecurring fair value measurements, assets: Impaired loans, net $ 0 $ 0 $ 5,800 $ 5,800 Foreclosed assets held for sale 0 0 684 684 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 6,484 $ 6,484 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 March 31, 2022 and December 31, 2021, 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 3/31/2022 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 3/31/2022 Servicing rights $ 2,429 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 193.00 % 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 12/31/2021 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2021 Servicing rights $ 2,329 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 209.00 % 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 March 31, 2022 March 31, 2021 Servicing rights balance, beginning of period $ 2,329 $ 1,689 Originations of servicing rights 98 192 Unrealized gain included in earnings 2 75 Servicing rights balance, end of period $ 2,429 $ 1,956 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. At March 31, 2022 and December 31, 2021, 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 3/31/2022 3/31/2022 3/31/2022 Technique Inputs 3/31/2022 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,456 $ 658 $ 5,798 Sales comparison Discount to appraised value 27 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Total impaired loans $ 6,528 $ 730 $ 5,798 Foreclosed assets held for sale - real estate: Commercial real estate $ 275 $ 0 $ 275 Sales comparison Discount to appraised value 50 % Residential (1-4 family) 256 0 256 Sales comparison Discount to appraised value 53 % Total foreclosed assets held for sale $ 531 $ 0 $ 531 (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2021 12/31/2021 12/31/2021 Technique Inputs 12/31/2021 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,468 $ 668 $ 5,800 Sales comparison Discount to appraised value 27 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Total impaired loans $ 6,540 $ 740 $ 5,800 Foreclosed assets held for sale - real estate: Commercial real estate $ 428 $ 0 $ 428 Sales comparison Discount to appraised value 50 % Residential (1-4 family) 256 0 256 Sales comparison Discount to appraised value 53 % Total foreclosed assets held for sale $ 684 $ 0 $ 684 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 March 31, 2022 December 31, 2021 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 105,246 $ 105,246 $ 95,848 $ 95,848 Certificates of deposit Level 2 9,100 8,911 9,100 9,142 Restricted equity securities (included in Other Assets) Level 2 9,508 9,508 9,562 9,562 Loans, net Level 3 1,523,919 1,533,430 1,551,312 1,573,955 Accrued interest receivable Level 2 7,507 7,507 7,235 7,235 Financial liabilities: Deposits with no stated maturity Level 2 1,691,457 1,691,457 1,639,167 1,639,167 Time deposits Level 2 269,495 269,902 285,893 286,962 Short-term borrowings Level 2 2,357 1,956 1,803 1,603 Long-term borrowings Level 2 20,581 20,518 28,042 28,347 Senior debt Level 2 14,717 14,429 14,701 15,016 Subordinated debt Level 2 33,031 30,293 33,009 33,171 Accrued interest payable Level 2 633 633 205 205 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. |
BASIS OF INTERIM PRESENTATION_2
BASIS OF INTERIM PRESENTATION AND STATUS OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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) | 3 Months Ended |
Mar. 31, 2022 | |
PER SHARE DATA | |
Schedule of Basic and Diluted earnings per share | (In Thousands, Except Share and Per Share Data) Three Months Ended March 31, March 31, 2022 2021 Basic Net income $ 6,895 $ 8,787 Less: Dividends and undistributed earnings allocated to participating securities (60) (65) Net income attributable to common shares $ 6,835 $ 8,722 Basic weighted-average common shares outstanding 15,645,474 15,850,217 Basic earnings per common share (a) $ 0.44 $ 0.55 Diluted Net income attributable to common shares $ 6,835 $ 8,722 Basic weighted-average common shares outstanding 15,645,474 15,850,217 Dilutive effect of potential common stock arising from stock options 3,701 4,234 Diluted weighted-average common shares outstanding 15,649,175 15,854,451 Diluted earnings per common share (a) $ 0.44 $ 0.55 Weighted-average nonvested restricted shares outstanding 138,141 118,442 (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) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Available-for-sale debt securities: Unrealized holding losses on available-for-sale debt securities $ (32,025) $ 6,726 $ (25,299) Reclassification adjustment for (gains) realized in income (2) 0 (2) Other comprehensive loss from available-for-sale debt securities (32,027) 6,726 (25,301) Unfunded pension and postretirement obligations: Changes from plan amendments and actuarial gains and losses 133 (27) 106 Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (11) 2 (9) Other comprehensive income on unfunded retirement obligations 122 (25) 97 Total other comprehensive loss $ (31,905) $ 6,701 $ (25,204) (In Thousands) Before-Tax Income Tax Net-of-Tax Amount Effect Amount Three Months Ended March 31, 2021 Available-for-sale debt securities, Unrealized holding losses on available-for-sale debt securities $ (6,114) $ 1,285 $ (4,829) 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 (4) 1 (3) Other comprehensive loss on unfunded retirement obligations (9) 2 (7) Total other comprehensive loss $ (6,123) $ 1,287 $ (4,836) |
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) Unrealized Accumulated (Losses) Unfunded Other Gains Retirement Comprehensive on Securities Obligations (Loss) Income Three Months Ended March 31, 2022 Balance, beginning of period $ 4,809 $ 217 $ 5,026 Other comprehensive (loss) income during three months ended March 31, 2022 (25,301) 97 (25,204) Balance, end of period $ (20,492) $ 314 $ (20,178) Three Months Ended March 31, 2021 Balance, beginning of period $ 11,676 $ 119 $ 11,795 Other comprehensive loss during three months ended March 31, 2021 (4,829) (7) (4,836) Balance, end of period $ 6,847 $ 112 $ 6,959 |
CASH AND DUE FROM BANKS (Tables
CASH AND DUE FROM BANKS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
CASH AND DUE FROM BANKS | |
Schedule of cash and due from banks | (In Thousands) March 31, December 31, 2022 2021 Cash and cash equivalents $ 105,246 $ 95,848 Certificates of deposit 9,100 9,100 Total cash and due from banks $ 114,346 $ 104,948 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
SECURITIES | |
Schedule of amortized cost and fair value of available-for-sale debt securities | (In Thousands) March 31, 2022 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 38,152 $ 0 $ (1,658) $ 36,494 Obligations of U.S. Government agencies 24,455 150 (1,197) 23,408 Bank holding company debt securities 24,942 0 (899) 24,043 Obligations of states and political subdivisions: Tax-exempt 149,140 963 (6,470) 143,633 Taxable 73,732 293 (4,396) 69,629 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 112,122 107 (5,661) 106,568 Residential collateralized mortgage obligations 45,628 4 (1,764) 43,868 Commercial mortgage-backed securities 90,682 119 (5,531) 85,270 Total available-for-sale debt securities $ 558,853 $ 1,636 $ (27,576) $ 532,913 (In Thousands) December 31, 2021 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair Cost Gains Losses Value Obligations of the U.S. Treasury $ 25,058 $ 52 $ (198) $ 24,912 Obligations of U.S. Government agencies 23,936 563 (408) 24,091 Bank holding company debt securities 18,000 18 (31) 17,987 Obligations of states and political subdivisions: Tax-exempt 143,427 4,749 (148) 148,028 Taxable 72,182 1,232 (649) 72,765 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 98,048 705 (572) 98,181 Residential collateralized mortgage obligations 44,015 437 (205) 44,247 Commercial mortgage-backed securities 86,926 1,548 (1,006) 87,468 Total available-for-sale debt securities $ 511,592 $ 9,304 $ (3,217) $ 517,679 |
Schedule of gross unrealized losses and fair value of available-for-sale debt securities | March 31, 2022 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 $ 36,494 $ (1,658) $ 0 $ 0 $ 36,494 $ (1,658) Obligations of U.S. Government agencies 4,812 (61) 11,363 (1,136) 16,175 (1,197) Bank holding company debt securities 21,043 (899) 0 0 21,043 (899) Obligations of states and political subdivisions: Tax-exempt 104,057 (6,341) 1,719 (129) 105,776 (6,470) Taxable 46,674 (3,692) 5,814 (704) 52,488 (4,396) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 98,253 (5,374) 3,737 (287) 101,990 (5,661) Residential collateralized mortgage obligations 41,916 (1,764) 0 0 41,916 (1,764) Commercial mortgage-backed securities 67,400 (4,568) 7,153 (963) 74,553 (5,531) Total temporarily impaired available-for-sale debt securities $ 420,649 $ (24,357) $ 29,786 $ (3,219) $ 450,435 $ (27,576) December 31, 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 $ 18,886 $ (198) $ 0 $ 0 $ 18,886 $ (198) Obligations of U.S. Government agencies 9,735 (264) 4,856 (144) 14,591 (408) Bank holding company debt securities 12,969 (31) 0 0 12,969 (31) Obligations of states and political subdivisions: Tax-exempt 17,852 (141) 549 (7) 18,401 (148) Taxable 31,261 (517) 3,277 (132) 34,538 (649) Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 71,451 (572) 0 0 71,451 (572) Residential collateralized mortgage obligations 15,117 (205) 0 0 15,117 (205) Commercial mortgage-backed securities 52,867 (1,006) 0 0 52,867 (1,006) Total temporarily impaired available-for-sale debt securities $ 230,138 $ (2,934) $ 8,682 $ (283) $ 238,820 $ (3,217) |
Schedule of gross realized gains and losses from available-for-sale | (In Thousands) Three Months Ended March 31, March 31, 2022 2021 Gross realized gains from sales $ 2 $ 0 Gross realized losses from sales 0 0 Net realized gains $ 2 $ 0 |
Schedule of the amortized cost and fair value of available-for-sale debt securities by contractual maturity | (In Thousands) March 31, 2022 Amortized Fair Cost Value Due in one year or less $ 12,457 $ 12,483 Due from one year through five years 77,304 75,288 Due from five years through ten years 86,104 82,906 Due after ten years 134,556 126,530 Sub-total 310,421 297,207 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 112,122 106,568 Residential collateralized mortgage obligations 45,628 43,868 Commercial mortgage-backed securities 90,682 85,270 Total $ 558,853 $ 532,913 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
LOANS | |
Summary of loans outstanding | Summary of Loans by Type (In Thousands) March 31, December 31, 2022 2021 Commercial: Commercial loans secured by real estate $ 585,677 $ 569,840 Commercial and industrial 159,793 159,073 Paycheck Protection Program - 1st Draw 887 1,356 Paycheck Protection Program - 2nd Draw 11,490 25,508 Political subdivisions 81,975 81,301 Commercial construction and land 37,258 60,579 Loans secured by farmland 12,507 11,121 Multi-family (5 or more) residential 53,141 50,089 Agricultural loans 2,588 2,351 Other commercial loans 14,827 17,153 Total commercial 960,143 978,371 Residential mortgage: Residential mortgage loans - first liens 481,119 483,629 Residential mortgage loans - junior liens 22,572 23,314 Home equity lines of credit 39,649 39,252 1-4 Family residential construction 16,945 23,151 Total residential mortgage 560,285 569,346 Consumer 17,762 17,132 Total 1,538,190 1,564,849 Less: allowance for loan losses (14,271) (13,537) Loans, net $ 1,523,919 $ 1,551,312 |
Schedule of adjustments to the initial market rate and credit fair value adjustments recognized | (In Thousands) Three Months Ended March 31, March 31, 2022 2021 Market Rate Adjustment Adjustments to gross amortized cost of loans at beginning of period $ (637) $ 718 Amortization recognized in interest income (248) (366) Adjustments to gross amortized cost of loans at end of period $ (885) $ 352 Credit Adjustment on Non-impaired Loans Adjustments to gross amortized cost of loans at beginning of period $ (3,335) $ (5,979) Accretion recognized in interest income 553 797 Adjustments to gross amortized cost of loans at end of period $ (2,782) $ (5,182) |
Schedule of PCI loans | (In Thousands) March 31, December 31, 2022 2021 Outstanding balance $ 5,966 $ 9,802 Carrying amount 3,983 6,558 |
Schedule of transactions within the allowance for loan losses | Three Months Ended March 31, 2022 December 31, 2021 March 31, 2022 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 4,405 $ 0 $ 0 $ 612 $ 5,017 Commercial and industrial 2,723 (150) 0 268 2,841 Commercial construction and land 637 0 0 (246) 391 Loans secured by farmland 115 0 0 14 129 Multi-family (5 or more) residential 215 0 0 152 367 Agricultural loans 25 0 0 2 27 Other commercial loans 173 0 0 (23) 150 Total commercial 8,293 (150) 0 779 8,922 Residential mortgage: Residential mortgage loans - first liens 3,650 0 1 159 3,810 Residential mortgage loans - junior liens 184 0 0 (3) 181 Home equity lines of credit 302 0 15 (11) 306 1-4 Family residential construction 202 0 0 (54) 148 Total residential mortgage 4,338 0 16 91 4,445 Consumer 235 (30) 7 25 237 Unallocated 671 0 0 (4) 667 Total Allowance for Loan Losses $ 13,537 $ (180) $ 23 $ 891 $ 14,271 Three Months Ended March 31, 2021 December 31, 2020 March 31, 2021 (In Thousands) Balance Charge-offs Recoveries Provision (Credit) Balance Allowance for Loan Losses: Commercial: Commercial loans secured by real estate $ 3,051 $ 0 $ 0 $ 299 $ 3,350 Commercial and industrial 2,245 0 14 (72) 2,187 Commercial construction and land 454 0 0 22 476 Loans secured by farmland 120 0 0 (9) 111 Multi-family (5 or more) residential 236 0 0 19 255 Agricultural loans 34 0 0 (8) 26 Other commercial loans 168 0 0 (9) 159 Total commercial 6,308 0 14 242 6,564 Residential mortgage: Residential mortgage loans - first liens 3,524 0 1 (18) 3,507 Residential mortgage loans - junior liens 349 0 0 (15) 334 Home equity lines of credit 281 0 1 (1) 281 1-4 Family residential construction 99 0 0 (21) 78 Total residential mortgage 4,253 0 2 (55) 4,200 Consumer 239 (11) 12 (20) 220 Unallocated 585 0 0 92 677 Total Allowance for Loan Losses $ 11,385 $ (11) $ 28 $ 259 $ 11,661 |
Schedule of aggregate credit quality classification of outstanding loans by risk | March 31, 2022 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 547,705 $ 18,000 $ 16,098 $ 0 $ 3,874 $ 585,677 Commercial and Industrial 144,864 11,030 3,860 0 39 159,793 Paycheck Protection Program - 1st Draw 887 0 0 0 0 887 Paycheck Protection Program - 2nd Draw 11,490 0 0 0 0 11,490 Political subdivisions 81,975 0 0 0 0 81,975 Commercial construction and land 36,496 714 48 0 0 37,258 Loans secured by farmland 11,319 287 901 0 0 12,507 Multi-family (5 or more) residential 52,274 0 867 0 0 53,141 Agricultural loans 2,054 0 534 0 0 2,588 Other commercial loans 14,826 1 0 0 0 14,827 Total commercial 903,890 30,032 22,308 0 3,913 960,143 Residential Mortgage: Residential mortgage loans - first liens 466,862 7,548 6,640 0 69 481,119 Residential mortgage loans - junior liens 22,182 57 332 0 1 22,572 Home equity lines of credit 38,961 59 629 0 0 39,649 1-4 Family residential construction 16,945 0 0 0 0 16,945 Total residential mortgage 544,950 7,664 7,601 0 70 560,285 Consumer 17,713 0 49 0 0 17,762 Totals $ 1,466,553 $ 37,696 $ 29,958 $ 0 $ 3,983 $ 1,538,190 December 31, 2021 Purchased (In Thousands) Special Credit Pass Mention Substandard Doubtful Impaired Total Commercial: Commercial loans secured by real estate $ 538,966 $ 10,510 $ 16,220 $ 0 $ 4,144 $ 569,840 Commercial and Industrial 142,775 10,841 4,694 0 763 159,073 Paycheck Protection Program - 1st Draw 1,356 0 0 0 0 1,356 Paycheck Protection Program - 2nd Draw 25,508 0 0 0 0 25,508 Political subdivisions 81,301 0 0 0 0 81,301 Commercial construction and land 59,816 715 48 0 0 60,579 Loans secured by farmland 10,011 186 924 0 0 11,121 Multi-family (5 or more) residential 47,638 0 873 0 1,578 50,089 Agricultural loans 1,802 0 549 0 0 2,351 Other commercial loans 17,150 3 0 0 0 17,153 Total commercial 926,323 22,255 23,308 0 6,485 978,371 Residential Mortgage: Residential mortgage loans - first liens 469,044 7,981 6,534 0 70 483,629 Residential mortgage loans - junior liens 22,914 114 283 0 3 23,314 Home equity lines of credit 38,652 59 541 0 0 39,252 1-4 Family residential construction 23,151 0 0 0 0 23,151 Total residential mortgage 553,761 8,154 7,358 0 73 569,346 Consumer 17,092 0 40 0 0 17,132 Totals $ 1,497,176 $ 30,409 $ 30,706 $ 0 $ 6,558 $ 1,564,849 |
Summary of loan balances and the related allowance for loan losses | March 31, 2022 Loans: Allowance for Loan Losses: (In Thousands) Individually Collectively Individually Collectively Evaluated Evaluated Totals Evaluated Evaluated Totals Commercial: Commercial loans secured by real estate $ 10,593 $ 575,084 $ 585,677 $ 658 $ 4,359 $ 5,017 Commercial and industrial 664 159,129 159,793 72 2,769 2,841 Paycheck Protection Program - 1st Draw 0 887 887 0 0 0 Paycheck Protection Program - 2nd Draw 0 11,490 11,490 0 0 0 Political subdivisions 0 81,975 81,975 0 0 0 Commercial construction and land 48 37,210 37,258 0 391 391 Loans secured by farmland 82 12,425 12,507 0 129 129 Multi-family (5 or more) residential 0 53,141 53,141 0 367 367 Agricultural loans 60 2,528 2,588 0 27 27 Other commercial loans 0 14,827 14,827 0 150 150 Total commercial 11,447 948,696 960,143 730 8,192 8,922 Residential mortgage: Residential mortgage loans - first liens 523 480,596 481,119 0 3,810 3,810 Residential mortgage loans - junior liens 35 22,537 22,572 0 181 181 Home equity lines of credit 0 39,649 39,649 0 306 306 1-4 Family residential construction 0 16,945 16,945 0 148 148 Total residential mortgage 558 559,727 560,285 0 4,445 4,445 Consumer 0 17,762 17,762 0 237 237 Unallocated 667 Total $ 12,005 $ 1,526,185 $ 1,538,190 $ 730 $ 12,874 $ 14,271 December 31, 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 $ 10,926 $ 558,914 $ 569,840 $ 669 $ 3,736 $ 4,405 Commercial and industrial 2,503 156,570 159,073 71 2,652 2,723 Paycheck Protection Program - 1st Draw 0 1,356 1,356 0 0 0 Paycheck Protection Program - 2nd Draw 0 25,508 25,508 0 0 0 Political subdivisions 0 81,301 81,301 0 0 0 Commercial construction and land 0 60,579 60,579 0 637 637 Loans secured by farmland 83 11,038 11,121 0 115 115 Multi-family (5 or more) residential 1,578 48,511 50,089 0 215 215 Agricultural loans 0 2,351 2,351 0 25 25 Other commercial loans 0 17,153 17,153 0 173 173 Total commercial 15,090 963,281 978,371 740 7,553 8,293 Residential mortgage: Residential mortgage loans - first liens 630 482,999 483,629 0 3,650 3,650 Residential mortgage loans - junior liens 14 23,300 23,314 0 184 184 Home equity lines of credit 0 39,252 39,252 0 302 302 1-4 Family residential construction 0 23,151 23,151 0 202 202 Total residential mortgage 644 568,702 569,346 0 4,338 4,338 Consumer 0 17,132 17,132 0 235 235 Unallocated 671 Total $ 15,734 $ 1,549,115 $ 1,564,849 $ 740 $ 12,126 $ 13,537 |
Summary of information related to impaired loans | (In Thousands) March 31, 2022 December 31, 2021 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 $ 6,253 $ 4,137 $ 0 $ 6,600 $ 4,458 $ 0 Commercial and industrial 3,199 592 0 5,213 2,431 0 Residential mortgage loans - first liens 637 523 0 656 630 0 Residential mortgage loans - junior liens 142 35 0 124 14 0 Loans secured by farmland 82 82 0 83 83 0 Agricultural loans 60 60 0 0 0 0 Construction and other land loans 48 48 0 0 0 0 Multi-family (5 or more) residential 0 0 0 2,734 1,578 0 Total with no related allowance recorded 10,421 5,477 0 15,410 9,194 0 With a related allowance recorded: Commercial loans secured by real estate 6,456 6,456 658 6,468 6,468 668 Commercial and industrial 72 72 72 72 72 72 Total with a related allowance recorded 6,528 6,528 730 6,540 6,540 740 Total $ 16,949 $ 12,005 $ 730 $ 21,950 $ 15,734 $ 740 |
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 Three Months Ended March 31, March 31, 2022 2021 2022 2021 Commercial: Commercial loans secured by real estate $ 10,735 $ 12,203 $ 129 $ 143 Commercial and industrial 1,626 1,082 4 12 Commercial construction and land 48 49 1 1 Loans secured by farmland 82 84 0 1 Multi-family (5 or more) residential 789 1,596 0 61 Agricultural loans 63 69 2 2 Total commercial 13,343 15,083 136 220 Residential mortgage: Residential mortgage loans - first lien 565 2,451 7 37 Residential mortgage loans - junior lien 37 437 1 5 Home equity lines of credit 0 18 1 0 Total residential mortgage 602 2,906 9 42 Total $ 13,945 $ 17,989 $ 145 $ 262 |
Schedule of breakdown by portfolio segment and class of non accrual loans | (In Thousands) March 31, 2022 December 31, 2021 Past Due Past Due 90+ Days and 90+ Days and Accruing Nonaccrual Accruing Nonaccrual Commercial: Commercial loans secured by real estate $ 1,217 $ 10,593 $ 738 $ 10,885 Commercial and industrial 788 376 30 2,299 Commercial construction and land 0 47 0 48 Loans secured by farmland 0 81 28 83 Multi-family (5 or more) residential 0 0 0 1,578 Agricultural loans 60 0 65 0 Total commercial 2,065 11,097 861 14,893 Residential mortgage: Residential mortgage loans - first liens 1,139 3,638 1,144 4,005 Residential mortgage loans - junior liens 76 2 69 3 Home equity lines of credit 102 167 102 82 Total residential mortgage 1,317 3,807 1,315 4,090 Consumer 47 41 43 16 Totals $ 3,429 $ 14,945 $ 2,219 $ 18,999 |
Summary of the contractual aging of loans | (In Thousands) As of March 31, 2022 As of December 31, 2021 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 $ 579,837 $ 192 $ 5,648 $ 585,677 $ 563,658 $ 762 $ 5,420 $ 569,840 Commercial and industrial 159,613 75 105 159,793 158,188 72 813 159,073 Paycheck Protection Program - 1st Draw 145 0 742 887 1,339 17 0 1,356 Paycheck Protection Program - 2nd Draw 11,490 0 0 11,490 25,508 0 0 25,508 Political subdivisions 81,975 0 0 81,975 81,301 0 0 81,301 Commercial construction and land 37,083 128 47 37,258 60,509 70 0 60,579 Loans secured by farmland 12,426 0 81 12,507 11,010 0 111 11,121 Multi-family (5 or more) residential 53,141 0 0 53,141 48,532 0 1,557 50,089 Agricultural loans 2,528 0 60 2,588 2,279 7 65 2,351 Other commercial loans 14,827 0 0 14,827 17,153 0 0 17,153 Total commercial 953,065 395 6,683 960,143 969,477 928 7,966 978,371 Residential mortgage: Residential mortgage loans - first liens 473,710 5,142 2,267 481,119 475,637 5,038 2,954 483,629 Residential mortgage loans - junior liens 22,457 39 76 22,572 23,229 16 69 23,314 Home equity lines of credit 39,314 233 102 39,649 38,830 279 143 39,252 1-4 Family residential construction 16,945 0 0 16,945 23,151 0 0 23,151 Total residential mortgage 552,426 5,414 2,445 560,285 560,847 5,333 3,166 569,346 Consumer 17,626 48 88 17,762 17,001 72 59 17,132 Totals $ 1,523,117 $ 5,857 $ 9,216 $ 1,538,190 $ 1,547,325 $ 6,333 $ 11,191 $ 1,564,849 |
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 March 31, 2022 Nonaccrual Totals $ 7,169 $ 1,989 $ 5,787 $ 14,945 December 31, 2021 Nonaccrual Totals $ 8,800 $ 1,227 $ 8,972 $ 18,999 |
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 March 31, 2022 Totals $ 243 $ 36 $ 60 $ 3,894 $ 4,233 December 31, 2021 Totals $ 248 $ 40 $ 65 $ 5,452 $ 5,805 |
Schedule of loan modifications considered as TDRs | (Balances in Thousands) Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Number Number of Recorded of Recorded Loans Investment Loans Investment Commercial loans secured by real estate 0 $ 0 1 $ 3,392 Total 0 $ 0 1 $ 3,392 |
Schedule of carrying amount of foreclosed residential real estate properties | (In Thousands) March 31, December 31, 2022 2021 Foreclosed residential real estate $ 256 $ 256 |
Schedule of mortgage loans secured by residential real properties | (In Thousands) March 31, December 31, 2022 2021 Residential real estate in process of foreclosure $ 1,547 $ 1,260 |
Troubled Debt Restructuring | |
LOANS | |
Summary of troubled debt restructurings | (Balances in Thousands) Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 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 0 $ 0 1 $ 12 Consumer, Reduced monthly payments and extended maturity date 0 0 1 24 Total 0 $ 0 2 $ 36 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of core deposit intangibles | (In Thousands) March 31, December 31, 2022 2021 Gross amount $ 6,639 $ 6,639 Accumulated amortization (3,433) (3,323) Net $ 3,206 $ 3,316 |
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 March 31, March 31, 2022 2021 Amortization expense $ 110 $ 134 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
BORROWED FUNDS | |
Schedule of short term borrowings | (In Thousands) March 31, December 31, 2022 2021 FHLB-Pittsburgh borrowings $ 0 $ 0 Customer repurchase agreements 2,357 1,803 Total short-term borrowings $ 2,357 $ 1,803 |
Schedule of long term borrowings | (In Thousands) March 31, December 31, 2022 2021 Loans maturing in 2022 with a weighted-average rate of 0.58% $ 8,050 $ 15,452 Loans maturing in 2023 with a weighted-average rate of 0.73% 7,093 7,119 Loan maturing in 2024 with a rate of 0.75% 5,090 5,099 Loan maturing in 2025 with a rate of 4.91% 348 372 Total long-term FHLB-Pittsburgh borrowings $ 20,581 $ 28,042 |
Schedule of outstanding senior notes | (In Thousands) March 31, December 31, 2022 2021 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 $ 14,717 $ 14,701 Total carrying value $ 14,717 $ 14,701 |
Schedule of outstanding subordinated debt | (In Thousands) March 31, December 31, 2022 2021 Agreements with an aggregate par value of $6,500,000; bearing interest at 6.50%; maturing in April 2027 and redeemed 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 2,004 2,008 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 24,527 24,501 Total carrying value $ 33,031 $ 33,009 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
STOCK-BASED COMPENSATION PLANS | |
Summary of restricted stock awards granted | (Dollars in Thousands) Aggregate Grant Date Number of Fair Shares Value 1st quarter 2022 awards: Time-based awards to independent directors 9,588 $ 240 Time-based awards to employees 51,638 1,293 Performance-based awards to employees 17,017 426 Total 78,243 $ 1,959 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 At December 31, 2021 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 $ 61,069 $ 137 $ 61,069 $ 137 $ 61,547 $ 3,104 $ 61,547 $ 3,104 (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) | 3 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of assets measured at fair value and the valuation methods used | March 31, 2022 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 $ 36,494 $ 0 $ 0 $ 36,494 Obligations of U.S. Government agencies 0 23,408 0 23,408 Bank holding company debt securities 0 24,043 0 24,043 Obligations of states and political subdivisions: Tax-exempt 0 143,633 0 143,633 Taxable 0 69,629 0 69,629 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 106,568 0 106,568 Residential collateralized mortgage obligations 0 43,868 0 43,868 Commercial mortgage-backed securities 0 85,270 0 85,270 Total available-for-sale debt securities 36,494 496,419 0 532,913 Marketable equity security 926 0 0 926 Servicing rights 0 0 2,429 2,429 Interest rate swap agreements, assets 0 137 0 137 Total recurring fair value measurements, assets $ 37,420 $ 496,556 $ 2,429 $ 536,405 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 137 $ 0 $ 137 Nonrecurring fair value measurements, assets: Impaired loans, net $ 0 $ 0 $ 5,798 $ 5,798 Foreclosed assets held for sale 0 0 531 531 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 6,329 $ 6,329 December 31, 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 $ 24,912 $ 0 $ 0 $ 24,912 Obligations of U.S. Government agencies 0 24,091 0 24,091 Bank holding company debt securities 0 17,987 0 17,987 Obligations of states and political subdivisions: Tax-exempt 0 148,028 0 148,028 Taxable 0 72,765 0 72,765 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 0 98,181 0 98,181 Residential collateralized mortgage obligations 0 44,247 0 44,247 Commercial mortgage-backed securities 0 87,468 0 87,468 Total available-for-sale debt securities 24,912 492,767 0 517,679 Marketable equity security 971 0 0 971 Servicing rights 0 0 2,329 2,329 Interest rate swap agreements, assets 0 3,104 0 3,104 Total recurring fair value measurements, assets $ 25,883 $ 495,871 $ 2,329 $ 524,083 Recurring fair value measurements, liabilities, Interest rate swap agreements, liabilities $ 0 $ 3,104 $ 0 $ 3,104 Nonrecurring fair value measurements, assets: Impaired loans, net $ 0 $ 0 $ 5,800 $ 5,800 Foreclosed assets held for sale 0 0 684 684 Total nonrecurring fair value measurements, assets $ 0 $ 0 $ 6,484 $ 6,484 |
Schedule of reconciliation of level 3 activity | (In Thousands) Three Months Ended March 31, 2022 March 31, 2021 Servicing rights balance, beginning of period $ 2,329 $ 1,689 Originations of servicing rights 98 192 Unrealized gain included in earnings 2 75 Servicing rights balance, end of period $ 2,429 $ 1,956 |
Schedule of estimated fair values, and carrying amounts of financial instruments not recorded at fair value | (In Thousands) Fair Value March 31, 2022 December 31, 2021 Hierarchy Carrying Fair Carrying Fair Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 105,246 $ 105,246 $ 95,848 $ 95,848 Certificates of deposit Level 2 9,100 8,911 9,100 9,142 Restricted equity securities (included in Other Assets) Level 2 9,508 9,508 9,562 9,562 Loans, net Level 3 1,523,919 1,533,430 1,551,312 1,573,955 Accrued interest receivable Level 2 7,507 7,507 7,235 7,235 Financial liabilities: Deposits with no stated maturity Level 2 1,691,457 1,691,457 1,639,167 1,639,167 Time deposits Level 2 269,495 269,902 285,893 286,962 Short-term borrowings Level 2 2,357 1,956 1,803 1,603 Long-term borrowings Level 2 20,581 20,518 28,042 28,347 Senior debt Level 2 14,717 14,429 14,701 15,016 Subordinated debt Level 2 33,031 30,293 33,009 33,171 Accrued interest payable Level 2 633 633 205 205 |
Recurring fair value measurements | |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of inputs and valuation techniques | Fair Value at 3/31/2022 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 3/31/2022 Servicing rights $ 2,429 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 193.00 % 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 12/31/2021 Valuation Unobservable Method or Value As of Asset (In Thousands) Technique Input(s) 12/31/2021 Servicing rights $ 2,329 Discounted cash flow Discount rate 13.00 % Rate used through modeling period Loan prepayment speeds 209.00 % 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 3/31/2022 3/31/2022 3/31/2022 Technique Inputs 3/31/2022 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,456 $ 658 $ 5,798 Sales comparison Discount to appraised value 27 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Total impaired loans $ 6,528 $ 730 $ 5,798 Foreclosed assets held for sale - real estate: Commercial real estate $ 275 $ 0 $ 275 Sales comparison Discount to appraised value 50 % Residential (1-4 family) 256 0 256 Sales comparison Discount to appraised value 53 % Total foreclosed assets held for sale $ 531 $ 0 $ 531 (Dollars In Thousands) Weighted Valuation Average Balance at Allowance at Fair Value at Valuation Unobservable Discount at Asset 12/31/2021 12/31/2021 12/31/2021 Technique Inputs 12/31/2021 Impaired loans: Commercial: Commercial loans secured by real estate $ 6,468 $ 668 $ 5,800 Sales comparison Discount to appraised value 27 % Commercial and industrial 72 72 0 Liquidation of assets Discount to appraised value 100 % Total impaired loans $ 6,540 $ 740 $ 5,800 Foreclosed assets held for sale - real estate: Commercial real estate $ 428 $ 0 $ 428 Sales comparison Discount to appraised value 50 % Residential (1-4 family) 256 0 256 Sales comparison Discount to appraised value 53 % Total foreclosed assets held for sale $ 684 $ 0 $ 684 |
PER SHARE DATA (Details)
PER SHARE DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basic | ||
Net income | $ 6,895 | $ 8,787 |
Less: Dividends and undistributed earnings allocated to participating securities | (60) | (65) |
Net income attributable to common shares | $ 6,835 | $ 8,722 |
Basic weighted-average common shares outstanding (in shares) | 15,645,474 | 15,850,217 |
Basic earnings per common share (in dollars per share) | $ 0.44 | $ 0.55 |
Diluted | ||
Net income attributable to common shares | $ 6,835 | $ 8,722 |
Basic weighted-average common shares outstanding (in shares) | 15,645,474 | 15,850,217 |
Dilutive effect of potential common stock arising from stock options (in shares) | 3,701 | 4,234 |
Diluted weighted-average common shares outstanding (in shares) | 15,649,175 | 15,854,451 |
Diluted earnings per common share (in dollars per share) | $ 0.44 | $ 0.55 |
Weighted-average nonvested restricted shares outstanding (in shares) | 138,141 | 118,442 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 0 |
COMPREHENSIVE INCOME - Componen
COMPREHENSIVE INCOME - Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
COMPREHENSIVE INCOME | ||
Unrealized holding income (losses) on available-for-sale debt securities | $ (32,025) | $ (6,114) |
Unrealized holding income (losses) on available-for-sale debt securities, Income Tax Effect | 6,726 | |
Unrealized holding income (losses) on available-for-sale debt securities, Net of Tax Amount | (25,299) | |
Reclassification adjustment for gains realized in income, Before-Tax Amount | (2) | 0 |
Reclassification adjustment for (gains) realized in income, Income Tax Effect | 0 | |
Reclassification adjustment for (gains) realized in income. Net of Tax Amount | (2) | |
Other comprehensive loss from available-for-sale debt securities, Before-Tax Amount | (32,027) | (6,114) |
Other comprehensive income on available-for-sale debt securities, income tax effect | 6,726 | 1,285 |
Other comprehensive loss from available-for-sale debt securities, Net-of-Tax Amount | (25,301) | (4,829) |
Changes from plan amendments and actuarial gains and losses, Before-Tax Amount | 133 | (5) |
Changes from plan amendments and actuarial gains and losses, Income Tax Effect | (27) | 1 |
Changes from plan amendments and actuarial gains and losses, Net-of-Tax Amount | 106 | (4) |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Before-Tax Amount | (11) | (4) |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Income Tax Effect | 2 | 1 |
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost, Net-of-Tax Amount | (9) | (3) |
Other comprehensive income (loss) on pension and postretirement obligations | 122 | (9) |
Other comprehensive income (loss) on unfunded retirement obligations, Income Tax Effect | (25) | 2 |
Other comprehensive income (loss) on unfunded retirement obligations, Net-of-Tax Amount | 97 | (7) |
Other comprehensive loss before income tax | (31,905) | (6,123) |
Total other comprehensive income (loss), Income Tax Effect | 6,701 | 1,287 |
Total other comprehensive income (loss) | $ (25,204) | $ (4,836) |
COMPREHENSIVE INCOME - Changes
COMPREHENSIVE INCOME - Changes of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Balance | $ 301,405 | $ 299,756 |
Other comprehensive (loss) income | (25,204) | (4,836) |
Balance | 276,208 | 300,056 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||
Balance | 4,809 | 11,676 |
Other comprehensive (loss) income | (25,301) | (4,829) |
Balance | (20,492) | 6,847 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||
Balance | 217 | 119 |
Other comprehensive (loss) income | 97 | (7) |
Balance | 314 | 112 |
Accumulated Other Comprehensive Income | ||
Balance | 5,026 | 11,795 |
Other comprehensive (loss) income | (25,204) | (4,836) |
Balance | $ (20,178) | $ 6,959 |
CASH AND DUE FROM BANKS (Detail
CASH AND DUE FROM BANKS (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
CASH AND DUE FROM BANKS | ||
Cash and cash equivalents | $ 105,246,000 | $ 95,848,000 |
Certificates of deposit | 9,100,000 | 9,100,000 |
Total cash and due from banks | 114,346,000 | 104,948,000 |
Cash Reserve Deposit Required and Made | $ 0 | $ 0 |
SECURITIES - Available-for-sale
SECURITIES - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | $ 558,853 | $ 511,592 |
Available-for-sale securities, gross unrealized holding gains | 1,636 | 9,304 |
Available-for-sale securities, gross unrealized holding losses | (27,576) | (3,217) |
Available-for-sale debt securities, fair value | 532,913 | 517,679 |
Obligations of the U.S. Treasury | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 38,152 | 25,058 |
Available-for-sale securities, gross unrealized holding gains | 0 | 52 |
Available-for-sale securities, gross unrealized holding losses | (1,658) | (198) |
Available-for-sale debt securities, fair value | 36,494 | 24,912 |
Obligations of U.S. Government agencies | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 24,455 | 23,936 |
Available-for-sale securities, gross unrealized holding gains | 150 | 563 |
Available-for-sale securities, gross unrealized holding losses | (1,197) | (408) |
Available-for-sale debt securities, fair value | 23,408 | 24,091 |
Bank holding company debt securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 24,942 | 18,000 |
Available-for-sale securities, gross unrealized holding gains | 0 | 18 |
Available-for-sale securities, gross unrealized holding losses | (899) | (31) |
Available-for-sale debt securities, fair value | 24,043 | 17,987 |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 149,140 | 143,427 |
Available-for-sale securities, gross unrealized holding gains | 963 | 4,749 |
Available-for-sale securities, gross unrealized holding losses | (6,470) | (148) |
Available-for-sale debt securities, fair value | 143,633 | 148,028 |
Obligations Of States And Political Subdivisions Taxable | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 73,732 | 72,182 |
Available-for-sale securities, gross unrealized holding gains | 293 | 1,232 |
Available-for-sale securities, gross unrealized holding losses | (4,396) | (649) |
Available-for-sale debt securities, fair value | 69,629 | 72,765 |
Residential Passthrough Securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 112,122 | 98,048 |
Available-for-sale securities, gross unrealized holding gains | 107 | 705 |
Available-for-sale securities, gross unrealized holding losses | (5,661) | (572) |
Available-for-sale debt securities, fair value | 106,568 | 98,181 |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 45,628 | 44,015 |
Available-for-sale securities, gross unrealized holding gains | 4 | 437 |
Available-for-sale securities, gross unrealized holding losses | (1,764) | (205) |
Available-for-sale debt securities, fair value | 43,868 | 44,247 |
Commercial Mortgage Backed Securities | ||
Available-for-sale Securities | ||
Available-for-sale securities, amortized cost | 90,682 | 86,926 |
Available-for-sale securities, gross unrealized holding gains | 119 | 1,548 |
Available-for-sale securities, gross unrealized holding losses | (5,531) | (1,006) |
Available-for-sale debt securities, fair value | $ 85,270 | $ 87,468 |
SECURITIES - Available-for-sa_2
SECURITIES - Available-for-sale Securities With Unrealized Loss Positions (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | $ 420,649 | $ 230,138 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (24,357) | (2,934) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 29,786 | 8,682 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (3,219) | (283) |
Available-for-sale securities with unrealized loss positions, fair value | 450,435 | 238,820 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (27,576) | (3,217) |
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 | 36,494 | 18,886 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (1,658) | (198) |
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 | 36,494 | 18,886 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (1,658) | (198) |
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 | 4,812 | 9,735 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (61) | (264) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 11,363 | 4,856 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (1,136) | (144) |
Available-for-sale securities with unrealized loss positions, fair value | 16,175 | 14,591 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (1,197) | (408) |
Bank holding company debt securities | ||
Available-for-sale Securities With Unrealized Loss Positions | ||
Available-for-sale securities with unrealized loss positions, less than 12 months, fair value | 21,043 | 12,969 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (899) | (31) |
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 | 21,043 | 12,969 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (899) | (31) |
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 | 104,057 | 17,852 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (6,341) | (141) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 1,719 | 549 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (129) | (7) |
Available-for-sale securities with unrealized loss positions, fair value | 105,776 | 18,401 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (6,470) | (148) |
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 | 46,674 | 31,261 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (3,692) | (517) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 5,814 | 3,277 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (704) | (132) |
Available-for-sale securities with unrealized loss positions, fair value | 52,488 | 34,538 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (4,396) | (649) |
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 | 98,253 | 71,451 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (5,374) | (572) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 3,737 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (287) | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 101,990 | 71,451 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (5,661) | (572) |
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 | 41,916 | 15,117 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (1,764) | (205) |
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 | 41,916 | 15,117 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | (1,764) | (205) |
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 | 67,400 | 52,867 |
Available-for-sale securities with unrealized loss positions, less than 12 months, unrealized losses | (4,568) | (1,006) |
Available-for-sale securities with unrealized loss positions, 12 months or more, fair value | 7,153 | 0 |
Available-for-sale securities with unrealized loss positions, 12 months or more, unrealized losses | (963) | 0 |
Available-for-sale securities with unrealized loss positions, fair value | 74,553 | 52,867 |
Available-for-sale securities, with unrealized loss positions, unrealized losses | $ (5,531) | $ (1,006) |
SECURITIES - Gross Realized Gai
SECURITIES - Gross Realized Gains and Losses From Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
SECURITIES | ||
Gross realized gains from sales | $ 2 | $ 0 |
Gross realized losses from sales | 0 | 0 |
Net realized gains | $ 2 | $ 0 |
SECURITIES - Available-for-sa_3
SECURITIES - Available-for-sale Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available-for-sale Securities | ||
Due in one year or less, amortized cost | $ 12,457 | |
Due in one year or less, fair value | 12,483 | |
Due from one year through five years. amortized cost | 77,304 | |
Due from one year through five years, fair value | 75,288 | |
Due from five years through ten years, amortized cost | 86,104 | |
Due from five years through ten years, fair value | 82,906 | |
Due after ten years, amortized cost | 134,556 | |
Due after ten years, fair value | 126,530 | |
Sub-total, amortized cost | 310,421 | |
Sub-total, fair value | 297,207 | |
Total, amortized cost | 558,853 | $ 511,592 |
Total, fair value | 532,913 | 517,679 |
Residential Passthrough Securities | ||
Available-for-sale Securities | ||
Total, amortized cost | 112,122 | 98,048 |
Total, fair value | 106,568 | 98,181 |
Residential Collateralized Mortgage Obligations | ||
Available-for-sale Securities | ||
Total, amortized cost | 45,628 | 44,015 |
Total, fair value | 43,868 | 44,247 |
Commercial Mortgage Backed Securities | ||
Available-for-sale Securities | ||
Total, amortized cost | 90,682 | 86,926 |
Total, fair value | $ 85,270 | $ 87,468 |
SECURITIES - Collateral (Detail
SECURITIES - Collateral (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Investment Securities [Member] | ||
SECURITIES | ||
Investment pledged as collateral | $ 237,165,000 | $ 241,428,000 |
SECURITIES - Debt Securities (D
SECURITIES - Debt Securities (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
SECURITIES | ||
Unrealized gain (loss) | $ (25,940,000) | $ 6,087,000 |
Unrealized gain (loss), as percent to amortized cost | (4.60%) | 1.20% |
SECURITIES - Equity Securities
SECURITIES - Equity Securities (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($)security | |
Mutual Fund | ||
Equity Securities | ||
Number of mutual funds | security | 1 | 1 |
Net gains recognized during the period on equity securities | $ 45,000 | $ 29,000 |
Other Assets | ||
Equity Securities | ||
Marketable equity security | 926,000 | 971,000 |
Other Assets | Federal Home Loan Bank of Pittsburgh | ||
Equity Securities | ||
Federal Home Loan Bank Stock | $ 9,258,000 | $ 9,313,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
LOANS | ||||
Loans receivable | $ 1,538,190 | $ 1,564,849 | ||
Allowance for loan losses | (14,271) | (13,537) | $ (11,661) | $ (11,385) |
Loans, net | 1,523,919 | 1,551,312 | ||
Commercial | ||||
LOANS | ||||
Loans receivable | 960,143 | 978,371 | ||
Allowance for loan losses | (8,922) | (8,293) | (6,564) | (6,308) |
Commercial | Real estate loan | ||||
LOANS | ||||
Loans receivable | 585,677 | 569,840 | ||
Allowance for loan losses | (5,017) | (4,405) | (3,350) | (3,051) |
Commercial | Commercial and industrial | ||||
LOANS | ||||
Loans receivable | 159,793 | 159,073 | ||
Allowance for loan losses | (2,841) | (2,723) | (2,187) | (2,245) |
Commercial | Paycheck Protection Program - 1st Draw | ||||
LOANS | ||||
Loans receivable | 887 | 1,356 | ||
Allowance for loan losses | 0 | 0 | ||
Commercial | Paycheck Protection Program - 2nd Draw | ||||
LOANS | ||||
Loans receivable | 11,490 | 25,508 | ||
Allowance for loan losses | 0 | 0 | ||
Commercial | Political subdivisions | ||||
LOANS | ||||
Loans receivable | 81,975 | 81,301 | ||
Allowance for loan losses | 0 | 0 | ||
Commercial | Construction Loans | ||||
LOANS | ||||
Loans receivable | 37,258 | 60,579 | ||
Commercial | Commercial Construction And Land | ||||
LOANS | ||||
Loans receivable | 37,258 | 60,579 | ||
Allowance for loan losses | (391) | (637) | (476) | (454) |
Commercial | Loans secured by farm land | ||||
LOANS | ||||
Loans receivable | 12,507 | 11,121 | ||
Allowance for loan losses | (129) | (115) | (111) | (120) |
Commercial | Multi-family (5 or more) residential | ||||
LOANS | ||||
Loans receivable | 53,141 | 50,089 | ||
Allowance for loan losses | (367) | (215) | (255) | (236) |
Commercial | Agricultural loans | ||||
LOANS | ||||
Loans receivable | 2,588 | 2,351 | ||
Allowance for loan losses | (27) | (25) | (26) | (34) |
Commercial | Other commercial loans | ||||
LOANS | ||||
Loans receivable | 14,827 | 17,153 | ||
Allowance for loan losses | (150) | (173) | (159) | (168) |
Residential mortgage | ||||
LOANS | ||||
Loans receivable | 560,285 | 569,346 | ||
Allowance for loan losses | (4,445) | (4,338) | (4,200) | (4,253) |
Residential mortgage | Real estate loan | first liens | ||||
LOANS | ||||
Loans receivable | 481,119 | 483,629 | ||
Allowance for loan losses | (3,810) | (3,650) | (3,507) | (3,524) |
Residential mortgage | Real estate loan | junior liens | ||||
LOANS | ||||
Loans receivable | 22,572 | 23,314 | ||
Allowance for loan losses | (181) | (184) | (334) | (349) |
Residential mortgage | Home equity lines of credit | ||||
LOANS | ||||
Loans receivable | 39,649 | 39,252 | ||
Allowance for loan losses | (306) | (302) | (281) | (281) |
Residential mortgage | 1-4 Family residential construction | ||||
LOANS | ||||
Loans receivable | 16,945 | 23,151 | ||
Allowance for loan losses | (148) | (202) | (78) | (99) |
Consumer | ||||
LOANS | ||||
Loans receivable | 17,762 | 17,132 | ||
Allowance for loan losses | $ (237) | $ (235) | $ (220) | $ (239) |
LOANS - Adjustments to Initial
LOANS - Adjustments to Initial Discounts and Carrying Amounts of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Market Rate Adjustment | ||
LOANS | ||
Adjustments to gross amortized cost of loans at beginning of period | $ (637) | $ 718 |
(Amortization) accretion recognized in interest income | (248) | (366) |
Adjustments to gross amortized cost of loans at end of period | (885) | 352 |
Credit Adjustment on Non-impaired Loans | ||
LOANS | ||
Adjustments to gross amortized cost of loans at beginning of period | (3,335) | (5,979) |
(Amortization) accretion recognized in interest income | 553 | 797 |
Adjustments to gross amortized cost of loans at end of period | $ (2,782) | $ (5,182) |
LOANS - Summary of PCI Loans He
LOANS - Summary of PCI Loans Held (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
LOANS | ||
Outstanding balance | $ 5,966 | $ 9,802 |
Carrying amount | $ 3,983 | $ 6,558 |
LOANS - Allowance for Loan Loss
LOANS - Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
LOANS | ||
Allowance for Loan losses | $ 13,537,000 | $ 11,385,000 |
Allowance for Loan losses, Charge-offs | (180,000) | (11,000) |
Allowance for Loan losses, Recoveries | 23,000 | 28,000 |
Allowance for Loan losses, Provision (Credit) | 891,000 | 259,000 |
Allowance for Loan losses | 14,271,000 | 11,661,000 |
Commercial | ||
LOANS | ||
Allowance for Loan losses | 8,293,000 | 6,308,000 |
Allowance for Loan losses, Charge-offs | (150,000) | 0 |
Allowance for Loan losses, Recoveries | 0 | 14,000 |
Allowance for Loan losses, Provision (Credit) | 779,000 | 242,000 |
Allowance for Loan losses | 8,922,000 | 6,564,000 |
Commercial | Real estate loan | ||
LOANS | ||
Allowance for Loan losses | 4,405,000 | 3,051,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 612,000 | 299,000 |
Allowance for Loan losses | 5,017,000 | 3,350,000 |
Commercial | Commercial and industrial | ||
LOANS | ||
Allowance for Loan losses | 2,723,000 | 2,245,000 |
Allowance for Loan losses, Charge-offs | (150,000) | 0 |
Allowance for Loan losses, Recoveries | 0 | 14,000 |
Allowance for Loan losses, Provision (Credit) | 268,000 | (72,000) |
Allowance for Loan losses | 2,841,000 | 2,187,000 |
Commercial | Commercial Construction And Land | ||
LOANS | ||
Allowance for Loan losses | 637,000 | 454,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | (246,000) | 22,000 |
Allowance for Loan losses | 391,000 | 476,000 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Allowance for Loan losses | 115,000 | 120,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 14,000 | (9,000) |
Allowance for Loan losses | 129,000 | 111,000 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Allowance for Loan losses | 215,000 | 236,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 152,000 | 19,000 |
Allowance for Loan losses | 367,000 | 255,000 |
Commercial | Agricultural loans | ||
LOANS | ||
Allowance for Loan losses | 25,000 | 34,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | 2,000 | (8,000) |
Allowance for Loan losses | 27,000 | 26,000 |
Commercial | Other commercial loans | ||
LOANS | ||
Allowance for Loan losses | 173,000 | 168,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | (23,000) | (9,000) |
Allowance for Loan losses | 150,000 | 159,000 |
Residential mortgage | ||
LOANS | ||
Allowance for Loan losses | 4,338,000 | 4,253,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 16,000 | 2,000 |
Allowance for Loan losses, Provision (Credit) | 91,000 | (55,000) |
Allowance for Loan losses | 4,445,000 | 4,200,000 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Allowance for Loan losses | 3,650,000 | 3,524,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 1,000 | 1,000 |
Allowance for Loan losses, Provision (Credit) | 159,000 | (18,000) |
Allowance for Loan losses | 3,810,000 | 3,507,000 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Allowance for Loan losses | 184,000 | 349,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | (3,000) | (15,000) |
Allowance for Loan losses | 181,000 | 334,000 |
Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Allowance for Loan losses | 302,000 | 281,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 15,000 | 1,000 |
Allowance for Loan losses, Provision (Credit) | (11,000) | (1,000) |
Allowance for Loan losses | 306,000 | 281,000 |
Residential mortgage | 1-4 Family residential construction | ||
LOANS | ||
Allowance for Loan losses | 202,000 | 99,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | (54,000) | (21,000) |
Allowance for Loan losses | 148,000 | 78,000 |
Consumer | ||
LOANS | ||
Allowance for Loan losses | 235,000 | 239,000 |
Allowance for Loan losses, Charge-offs | (30,000) | (11,000) |
Allowance for Loan losses, Recoveries | 7,000 | 12,000 |
Allowance for Loan losses, Provision (Credit) | 25,000 | (20,000) |
Allowance for Loan losses | 237,000 | 220,000 |
Unallocated | ||
LOANS | ||
Allowance for Loan losses | 671,000 | 585,000 |
Allowance for Loan losses, Charge-offs | 0 | 0 |
Allowance for Loan losses, Recoveries | 0 | 0 |
Allowance for Loan losses, Provision (Credit) | (4,000) | 92,000 |
Allowance for Loan losses | $ 667,000 | $ 677,000 |
LOANS - Outstanding Loans by Ri
LOANS - Outstanding Loans by Risk Rating (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
LOANS | ||
Loans receivable | $ 1,538,190 | $ 1,564,849 |
Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 3,983 | 6,558 |
Commercial | ||
LOANS | ||
Loans receivable | 960,143 | 978,371 |
Commercial | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 3,913 | 6,485 |
Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 585,677 | 569,840 |
Commercial | Real estate loan | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 3,874 | 4,144 |
Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 159,793 | 159,073 |
Commercial | Commercial and industrial | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 39 | 763 |
Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 887 | 1,356 |
Commercial | Paycheck Protection Program - 1st Draw | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 11,490 | 25,508 |
Commercial | Paycheck Protection Program - 2nd Draw | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 81,975 | 81,301 |
Commercial | Political subdivisions | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Commercial Construction And Land | ||
LOANS | ||
Loans receivable | 37,258 | 60,579 |
Commercial | Commercial Construction And Land | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Construction Loans | ||
LOANS | ||
Loans receivable | 37,258 | 60,579 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 12,507 | 11,121 |
Commercial | Loans secured by farm land | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 53,141 | 50,089 |
Commercial | Multi-family (5 or more) residential | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 1,578 |
Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 2,588 | 2,351 |
Commercial | Agricultural loans | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 14,827 | 17,153 |
Commercial | Other commercial loans | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Residential mortgage | ||
LOANS | ||
Loans receivable | 560,285 | 569,346 |
Residential mortgage | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 70 | 73 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 481,119 | 483,629 |
Residential mortgage | Real estate loan | first liens | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 69 | 70 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 22,572 | 23,314 |
Residential mortgage | Real estate loan | junior liens | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 1 | 3 |
Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 39,649 | 39,252 |
Residential mortgage | Home equity lines of credit | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Residential mortgage | 1-4 Family residential construction | ||
LOANS | ||
Loans receivable | 16,945 | 23,151 |
Residential mortgage | 1-4 Family residential construction | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Consumer | ||
LOANS | ||
Loans receivable | 17,762 | 17,132 |
Consumer | Purchased Credit Impaired | ||
LOANS | ||
Loans receivable | 0 | 0 |
Pass | ||
LOANS | ||
Loans receivable | 1,466,553 | 1,497,176 |
Pass | Commercial | ||
LOANS | ||
Loans receivable | 903,890 | 926,323 |
Pass | Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 547,705 | 538,966 |
Pass | Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 144,864 | 142,775 |
Pass | Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 887 | 1,356 |
Pass | Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 11,490 | 25,508 |
Pass | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 81,975 | 81,301 |
Pass | Commercial | Commercial Construction And Land | ||
LOANS | ||
Loans receivable | 36,496 | 59,816 |
Pass | Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 11,319 | 10,011 |
Pass | Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 52,274 | 47,638 |
Pass | Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 2,054 | 1,802 |
Pass | Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 14,826 | 17,150 |
Pass | Residential mortgage | ||
LOANS | ||
Loans receivable | 544,950 | 553,761 |
Pass | Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 466,862 | 469,044 |
Pass | Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 22,182 | 22,914 |
Pass | Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 38,961 | 38,652 |
Pass | Residential mortgage | 1-4 Family residential construction | ||
LOANS | ||
Loans receivable | 16,945 | 23,151 |
Pass | Consumer | ||
LOANS | ||
Loans receivable | 17,713 | 17,092 |
Special Mention | ||
LOANS | ||
Loans receivable | 37,696 | 30,409 |
Special Mention | Commercial | ||
LOANS | ||
Loans receivable | 30,032 | 22,255 |
Special Mention | Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 18,000 | 10,510 |
Special Mention | Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 11,030 | 10,841 |
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 | 0 |
Special Mention | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Commercial | Commercial Construction And Land | ||
LOANS | ||
Loans receivable | 714 | 715 |
Special Mention | Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 287 | 186 |
Special Mention | Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 1 | 3 |
Special Mention | Residential mortgage | ||
LOANS | ||
Loans receivable | 7,664 | 8,154 |
Special Mention | Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 7,548 | 7,981 |
Special Mention | Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 57 | 114 |
Special Mention | Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 59 | 59 |
Special Mention | Residential mortgage | 1-4 Family residential construction | ||
LOANS | ||
Loans receivable | 0 | 0 |
Special Mention | Consumer | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | ||
LOANS | ||
Loans receivable | 29,958 | 30,706 |
Substandard | Commercial | ||
LOANS | ||
Loans receivable | 22,308 | 23,308 |
Substandard | Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 16,098 | 16,220 |
Substandard | Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 3,860 | 4,694 |
Substandard | Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Commercial | Commercial Construction And Land | ||
LOANS | ||
Loans receivable | 48 | 48 |
Substandard | Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 901 | 924 |
Substandard | Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 867 | 873 |
Substandard | Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 534 | 549 |
Substandard | Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Residential mortgage | ||
LOANS | ||
Loans receivable | 7,601 | 7,358 |
Substandard | Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 6,640 | 6,534 |
Substandard | Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 332 | 283 |
Substandard | Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 629 | 541 |
Substandard | Residential mortgage | 1-4 Family residential construction | ||
LOANS | ||
Loans receivable | 0 | 0 |
Substandard | Consumer | ||
LOANS | ||
Loans receivable | 49 | 40 |
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 | 0 |
Doubtful | Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Commercial | Commercial Construction And Land | ||
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 | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 0 | 0 |
Doubtful | Residential mortgage | 1-4 Family residential construction | ||
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 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
LOANS | ||||
Loans receivable: Individually Evaluated | $ 12,005 | $ 15,734 | ||
Loans receivable: Collectively Evaluated | 1,526,185 | 1,549,115 | ||
Loans receivable | 1,538,190 | 1,564,849 | ||
Allowance for loan losses: individually evaluated | 730 | 740 | ||
Allowance for loan losses: collectively evaluated | 12,874 | 12,126 | ||
Allowance for loan losses | 14,271 | 13,537 | $ 11,661 | $ 11,385 |
Commercial | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 11,447 | 15,090 | ||
Loans receivable: Collectively Evaluated | 948,696 | 963,281 | ||
Loans receivable | 960,143 | 978,371 | ||
Allowance for loan losses: individually evaluated | 730 | 740 | ||
Allowance for loan losses: collectively evaluated | 8,192 | 7,553 | ||
Allowance for loan losses | 8,922 | 8,293 | 6,564 | 6,308 |
Commercial | Real estate loan | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 10,593 | 10,926 | ||
Loans receivable: Collectively Evaluated | 575,084 | 558,914 | ||
Loans receivable | 585,677 | 569,840 | ||
Allowance for loan losses: individually evaluated | 658 | 669 | ||
Allowance for loan losses: collectively evaluated | 4,359 | 3,736 | ||
Allowance for loan losses | 5,017 | 4,405 | 3,350 | 3,051 |
Commercial | Commercial and industrial | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 664 | 2,503 | ||
Loans receivable: Collectively Evaluated | 159,129 | 156,570 | ||
Loans receivable | 159,793 | 159,073 | ||
Allowance for loan losses: individually evaluated | 72 | 71 | ||
Allowance for loan losses: collectively evaluated | 2,769 | 2,652 | ||
Allowance for loan losses | 2,841 | 2,723 | 2,187 | 2,245 |
Commercial | Paycheck Protection Program - 1st Draw | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 0 | 0 | ||
Loans receivable: Collectively Evaluated | 887 | 1,356 | ||
Loans receivable | 887 | 1,356 | ||
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 | 0 | ||
Loans receivable: Collectively Evaluated | 11,490 | 25,508 | ||
Loans receivable | 11,490 | 25,508 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 0 | 0 | ||
Allowance for loan losses | 0 | 0 | ||
Commercial | Political subdivisions | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 0 | 0 | ||
Loans receivable: Collectively Evaluated | 81,975 | 81,301 | ||
Loans receivable | 81,975 | 81,301 | ||
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 | 37,258 | 60,579 | ||
Commercial | Commercial Construction And Land | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 48 | 0 | ||
Loans receivable: Collectively Evaluated | 37,210 | 60,579 | ||
Loans receivable | 37,258 | 60,579 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 391 | 637 | ||
Allowance for loan losses | 391 | 637 | 476 | 454 |
Commercial | Loans secured by farm land | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 82 | 83 | ||
Loans receivable: Collectively Evaluated | 12,425 | 11,038 | ||
Loans receivable | 12,507 | 11,121 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 129 | 115 | ||
Allowance for loan losses | 129 | 115 | 111 | 120 |
Commercial | Multi-family (5 or more) residential | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 0 | 1,578 | ||
Loans receivable: Collectively Evaluated | 53,141 | 48,511 | ||
Loans receivable | 53,141 | 50,089 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 367 | 215 | ||
Allowance for loan losses | 367 | 215 | 255 | 236 |
Commercial | Agricultural loans | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 60 | 0 | ||
Loans receivable: Collectively Evaluated | 2,528 | 2,351 | ||
Loans receivable | 2,588 | 2,351 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 27 | 25 | ||
Allowance for loan losses | 27 | 25 | 26 | 34 |
Commercial | Other commercial loans | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 0 | 0 | ||
Loans receivable: Collectively Evaluated | 14,827 | 17,153 | ||
Loans receivable | 14,827 | 17,153 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 150 | 173 | ||
Allowance for loan losses | 150 | 173 | 159 | 168 |
Residential mortgage | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 558 | 644 | ||
Loans receivable: Collectively Evaluated | 559,727 | 568,702 | ||
Loans receivable | 560,285 | 569,346 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 4,445 | 4,338 | ||
Allowance for loan losses | 4,445 | 4,338 | 4,200 | 4,253 |
Residential mortgage | Real estate loan | first liens | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 523 | 630 | ||
Loans receivable: Collectively Evaluated | 480,596 | 482,999 | ||
Loans receivable | 481,119 | 483,629 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 3,810 | 3,650 | ||
Allowance for loan losses | 3,810 | 3,650 | 3,507 | 3,524 |
Residential mortgage | Real estate loan | junior liens | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 35 | 14 | ||
Loans receivable: Collectively Evaluated | 22,537 | 23,300 | ||
Loans receivable | 22,572 | 23,314 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 181 | 184 | ||
Allowance for loan losses | 181 | 184 | 334 | 349 |
Residential mortgage | Home equity lines of credit | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 0 | 0 | ||
Loans receivable: Collectively Evaluated | 39,649 | 39,252 | ||
Loans receivable | 39,649 | 39,252 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 306 | 302 | ||
Allowance for loan losses | 306 | 302 | 281 | 281 |
Residential mortgage | 1-4 Family residential construction | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 0 | 0 | ||
Loans receivable: Collectively Evaluated | 16,945 | 23,151 | ||
Loans receivable | 16,945 | 23,151 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 148 | 202 | ||
Allowance for loan losses | 148 | 202 | 78 | 99 |
Consumer | ||||
LOANS | ||||
Loans receivable: Individually Evaluated | 0 | 0 | ||
Loans receivable: Collectively Evaluated | 17,762 | 17,132 | ||
Loans receivable | 17,762 | 17,132 | ||
Allowance for loan losses: individually evaluated | 0 | 0 | ||
Allowance for loan losses: collectively evaluated | 237 | 235 | ||
Allowance for loan losses | 237 | 235 | 220 | 239 |
Unallocated | ||||
LOANS | ||||
Allowance for loan losses | $ 667 | $ 671 | $ 677 | $ 585 |
LOANS - Impaired Loans (Details
LOANS - Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
LOANS | ||
Unpaid Principal Balance - with no allowance | $ 10,421 | $ 15,410 |
Recorded Investment - with no allowance | 5,477 | 9,194 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 6,528 | 6,540 |
Recorded investment - with allowance | 6,528 | 6,540 |
Related Allowance - with allowance | 730 | 740 |
Unpaid Principal Balance | 16,949 | 21,950 |
Recorded Investment | 12,005 | 15,734 |
Commercial | Real estate loan | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 6,253 | 6,600 |
Recorded Investment - with no allowance | 4,137 | 4,458 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 6,456 | 6,468 |
Recorded investment - with allowance | 6,456 | 6,468 |
Related Allowance - with allowance | 658 | 668 |
Commercial | Commercial and industrial | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 3,199 | 5,213 |
Recorded Investment - with no allowance | 592 | 2,431 |
Related Allowance - with no allowance | 0 | 0 |
Unpaid Principal Balance - with allowance | 72 | 72 |
Recorded investment - with allowance | 72 | 72 |
Related Allowance - with allowance | 72 | 72 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 82 | 83 |
Recorded Investment - with no allowance | 82 | 83 |
Related Allowance - with no allowance | 0 | 0 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 0 | 2,734 |
Recorded Investment - with no allowance | 0 | 1,578 |
Related Allowance - with no allowance | 0 | 0 |
Commercial | Agricultural loans | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 60 | 0 |
Recorded Investment - with no allowance | 60 | 0 |
Related Allowance - with no allowance | 0 | 0 |
Commercial | Construction And Other Land Loans | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 48 | 0 |
Recorded Investment - with no allowance | 48 | 0 |
Related Allowance - with no allowance | 0 | 0 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 637 | 656 |
Recorded Investment - with no allowance | 523 | 630 |
Related Allowance - with no allowance | 0 | 0 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Unpaid Principal Balance - with no allowance | 142 | 124 |
Recorded Investment - with no allowance | 35 | 14 |
Related Allowance - with no allowance | $ 0 | $ 0 |
LOANS - Average Balance of Impa
LOANS - Average Balance of Impaired Loans and Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
LOANS | ||
Average Investment in Impaired Loans | $ 13,945 | $ 17,989 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 145 | 262 |
Commercial | ||
LOANS | ||
Average Investment in Impaired Loans | 13,343 | 15,083 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 136 | 220 |
Commercial | Real estate loan | ||
LOANS | ||
Average Investment in Impaired Loans | 10,735 | 12,203 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 129 | 143 |
Commercial | Commercial and industrial | ||
LOANS | ||
Average Investment in Impaired Loans | 1,626 | 1,082 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 4 | 12 |
Commercial | Commercial Construction And Land | ||
LOANS | ||
Average Investment in Impaired Loans | 48 | 49 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 1 | 1 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Average Investment in Impaired Loans | 82 | 84 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 1 |
Commercial | Multi-family (5 or more) residential. | ||
LOANS | ||
Average Investment in Impaired Loans | 789 | 1,596 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 0 | 61 |
Commercial | Agricultural loans | ||
LOANS | ||
Average Investment in Impaired Loans | 63 | 69 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 2 | 2 |
Residential mortgage | ||
LOANS | ||
Average Investment in Impaired Loans | 602 | 2,906 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 9 | 42 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Average Investment in Impaired Loans | 565 | 2,451 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 7 | 37 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Average Investment in Impaired Loans | 37 | 437 |
Interest Income Recognized on Impaired Loans on a Cash Basis | 1 | 5 |
Residential mortgage | Home Equity Line of Credit [Member] | ||
LOANS | ||
Average Investment in Impaired Loans | 0 | 18 |
Interest Income Recognized on Impaired Loans on a Cash Basis | $ 1 | $ 0 |
LOANS - Nonaccrual Loans and Lo
LOANS - Nonaccrual Loans and Loans Past Due Ninety Days or More and Still Accruing (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
LOANS | ||
Past Due 90+ Days and Accruing | $ 3,429 | $ 2,219 |
Nonaccrual | 14,945 | 18,999 |
Commercial | ||
LOANS | ||
Past Due 90+ Days and Accruing | 2,065 | 861 |
Nonaccrual | 11,097 | 14,893 |
Commercial | Real estate loan | ||
LOANS | ||
Past Due 90+ Days and Accruing | 1,217 | 738 |
Nonaccrual | 10,593 | 10,885 |
Commercial | Commercial and industrial | ||
LOANS | ||
Past Due 90+ Days and Accruing | 788 | 30 |
Nonaccrual | 376 | 2,299 |
Commercial | Commercial Construction And Land | ||
LOANS | ||
Past Due 90+ Days and Accruing | 0 | 0 |
Nonaccrual | 47 | 48 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Past Due 90+ Days and Accruing | 0 | 28 |
Nonaccrual | 81 | 83 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Past Due 90+ Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 1,578 |
Commercial | Agricultural loans | ||
LOANS | ||
Past Due 90+ Days and Accruing | 60 | 65 |
Nonaccrual | 0 | 0 |
Residential mortgage | ||
LOANS | ||
Past Due 90+ Days and Accruing | 1,317 | 1,315 |
Nonaccrual | 3,807 | 4,090 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Past Due 90+ Days and Accruing | 1,139 | 1,144 |
Nonaccrual | 3,638 | 4,005 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Past Due 90+ Days and Accruing | 76 | 69 |
Nonaccrual | 2 | 3 |
Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Past Due 90+ Days and Accruing | 102 | 102 |
Nonaccrual | 167 | 82 |
Consumer | ||
LOANS | ||
Past Due 90+ Days and Accruing | 47 | 43 |
Nonaccrual | $ 41 | $ 16 |
LOANS - Contractual Aging of Lo
LOANS - Contractual Aging of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
LOANS | ||
Loans receivable | $ 1,538,190 | $ 1,564,849 |
Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 1,523,117 | 1,547,325 |
Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 5,857 | 6,333 |
Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 9,216 | 11,191 |
Commercial | ||
LOANS | ||
Loans receivable | 960,143 | 978,371 |
Commercial | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 953,065 | 969,477 |
Commercial | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 395 | 928 |
Commercial | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 6,683 | 7,966 |
Commercial | Real estate loan | ||
LOANS | ||
Loans receivable | 585,677 | 569,840 |
Commercial | Real estate loan | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 579,837 | 563,658 |
Commercial | Real estate loan | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 192 | 762 |
Commercial | Real estate loan | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 5,648 | 5,420 |
Commercial | Commercial and industrial | ||
LOANS | ||
Loans receivable | 159,793 | 159,073 |
Commercial | Commercial and industrial | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 159,613 | 158,188 |
Commercial | Commercial and industrial | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 75 | 72 |
Commercial | Commercial and industrial | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 105 | 813 |
Commercial | Paycheck Protection Program - 1st Draw | ||
LOANS | ||
Loans receivable | 887 | 1,356 |
Commercial | Paycheck Protection Program - 1st Draw | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 145 | 1,339 |
Commercial | Paycheck Protection Program - 1st Draw | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 0 | 17 |
Commercial | Paycheck Protection Program - 1st Draw | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 742 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | ||
LOANS | ||
Loans receivable | 11,490 | 25,508 |
Commercial | Paycheck Protection Program - 2nd Draw | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 11,490 | 25,508 |
Commercial | Paycheck Protection Program - 2nd Draw | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Paycheck Protection Program - 2nd Draw | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Political subdivisions | ||
LOANS | ||
Loans receivable | 81,975 | 81,301 |
Commercial | Political subdivisions | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 81,975 | 81,301 |
Commercial | Political subdivisions | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Political subdivisions | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Commercial Construction And Land | ||
LOANS | ||
Loans receivable | 37,258 | 60,579 |
Commercial | Commercial Construction And Land | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 37,083 | 60,509 |
Commercial | Commercial Construction And Land | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 128 | 70 |
Commercial | Commercial Construction And Land | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 47 | 0 |
Commercial | Construction Loans | ||
LOANS | ||
Loans receivable | 37,258 | 60,579 |
Commercial | Loans secured by farm land | ||
LOANS | ||
Loans receivable | 12,507 | 11,121 |
Commercial | Loans secured by farm land | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 12,426 | 11,010 |
Commercial | Loans secured by farm land | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Loans secured by farm land | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 81 | 111 |
Commercial | Multi-family (5 or more) residential | ||
LOANS | ||
Loans receivable | 53,141 | 50,089 |
Commercial | Multi-family (5 or more) residential | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 53,141 | 48,532 |
Commercial | Multi-family (5 or more) residential | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Multi-family (5 or more) residential | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 0 | 1,557 |
Commercial | Agricultural loans | ||
LOANS | ||
Loans receivable | 2,588 | 2,351 |
Commercial | Agricultural loans | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 2,528 | 2,279 |
Commercial | Agricultural loans | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 0 | 7 |
Commercial | Agricultural loans | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 60 | 65 |
Commercial | Other commercial loans | ||
LOANS | ||
Loans receivable | 14,827 | 17,153 |
Commercial | Other commercial loans | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 14,827 | 17,153 |
Commercial | Other commercial loans | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 0 | 0 |
Commercial | Other commercial loans | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 0 | 0 |
Residential mortgage | ||
LOANS | ||
Loans receivable | 560,285 | 569,346 |
Residential mortgage | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 552,426 | 560,847 |
Residential mortgage | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 5,414 | 5,333 |
Residential mortgage | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 2,445 | 3,166 |
Residential mortgage | Real estate loan | first liens | ||
LOANS | ||
Loans receivable | 481,119 | 483,629 |
Residential mortgage | Real estate loan | first liens | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 473,710 | 475,637 |
Residential mortgage | Real estate loan | first liens | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 5,142 | 5,038 |
Residential mortgage | Real estate loan | first liens | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 2,267 | 2,954 |
Residential mortgage | Real estate loan | junior liens | ||
LOANS | ||
Loans receivable | 22,572 | 23,314 |
Residential mortgage | Real estate loan | junior liens | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 22,457 | 23,229 |
Residential mortgage | Real estate loan | junior liens | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 39 | 16 |
Residential mortgage | Real estate loan | junior liens | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 76 | 69 |
Residential mortgage | Home equity lines of credit | ||
LOANS | ||
Loans receivable | 39,649 | 39,252 |
Residential mortgage | Home equity lines of credit | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 39,314 | 38,830 |
Residential mortgage | Home equity lines of credit | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 233 | 279 |
Residential mortgage | Home equity lines of credit | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 102 | 143 |
Residential mortgage | 1-4 Family residential construction | ||
LOANS | ||
Loans receivable | 16,945 | 23,151 |
Residential mortgage | 1-4 Family residential construction | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 16,945 | 23,151 |
Residential mortgage | 1-4 Family residential construction | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 0 | 0 |
Residential mortgage | 1-4 Family residential construction | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | 0 | 0 |
Consumer | ||
LOANS | ||
Loans receivable | 17,762 | 17,132 |
Consumer | Current & Past Due Less than 30 Days | ||
LOANS | ||
Loans receivable | 17,626 | 17,001 |
Consumer | Past Due 30-89 Days | ||
LOANS | ||
Loans receivable | 48 | 72 |
Consumer | Past Due 90+ Days | ||
LOANS | ||
Loans receivable | $ 88 | $ 59 |
LOANS - Contractual Aging of No
LOANS - Contractual Aging of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
LOANS | ||
Nonaccrual loans | $ 14,945 | $ 18,999 |
Non accrual Loans [Member] | ||
LOANS | ||
Nonaccrual loans | 14,945 | 18,999 |
Non accrual Loans [Member] | Current & Past Due Less than 30 Days | ||
LOANS | ||
Nonaccrual loans | 7,169 | 8,800 |
Non accrual Loans [Member] | Past Due 30-89 Days | ||
LOANS | ||
Nonaccrual loans | 1,989 | 1,227 |
Non accrual Loans [Member] | Past Due 90+ Days | ||
LOANS | ||
Nonaccrual loans | $ 5,787 | $ 8,972 |
LOANS - Aging of Troubled Debt
LOANS - Aging of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Troubled Debt Restructurings | ||
Nonaccrual loans | $ 14,945 | $ 18,999 |
Troubled Debt Restructuring | ||
Troubled Debt Restructurings | ||
Nonaccrual loans | 3,894 | 5,452 |
Troubled debt restructurings | 4,233 | 5,805 |
Troubled Debt Restructuring | Current & Past Due Less than 30 Days | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings | 243 | 248 |
Troubled Debt Restructuring | Past Due 30-89 Days | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings | 36 | 40 |
Troubled Debt Restructuring | Past Due 90+ Days | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings | $ 60 | $ 65 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | |
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | loan | 0 | 2 |
Troubled debt restructurings, post-modification recorded investment | $ | $ 0 | $ 36 |
Residential mortgage | Real estate loan | first liens | Monthly Payment Reduction and Extended Maturity Date [Member] | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | loan | 0 | 1 |
Troubled debt restructurings, post-modification recorded investment | $ | $ 0 | $ 12 |
Consumer | Monthly Payment Reduction and Extended Maturity Date [Member] | ||
Troubled Debt Restructurings | ||
Troubled debt restructurings, number of contracts | loan | 0 | 1 |
Troubled debt restructurings, post-modification recorded investment | $ | $ 0 | $ 24 |
LOANS - Payment Defaults on TDR
LOANS - Payment Defaults on TDR Loans (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | |
Number of Loans | loan | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 3,392 |
Commercial | Real estate loan | ||
Number of Loans | loan | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 3,392 |
LOANS - Foreclosed Residential
LOANS - Foreclosed Residential Real Estate (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Residential mortgage | ||
LOANS | ||
Foreclosed residential real estate | $ 256 | $ 256 |
LOANS - Mortgage Loans in Proce
LOANS - Mortgage Loans in Process of Foreclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Residential mortgage | ||
LOANS | ||
Residential real estate in process of foreclosure | $ 1,547 | $ 1,260 |
LOANS - Additional information
LOANS - Additional information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
LOANS | ||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | $ 3,735,000 | $ 4,427,000 | ||
Recorded investment - with allowance | 6,528,000 | 6,540,000 | ||
Specific allowances | 730,000 | 740,000 | ||
Loans receivable | 1,538,190,000 | 1,564,849,000 | ||
Allowance for Loan losses | 14,271,000 | $ 11,661,000 | 13,537,000 | $ 11,385,000 |
Interest and fees | 18,549,000 | 19,491,000 | ||
Financing receivable charge-offs | 180,000 | 11,000 | ||
Provision (credit) for loan losses | 891,000 | 259,000 | ||
Increase (decrease) in provision for loan losses | (632,000) | |||
Amount of net charge related to specific loans | 147,000 | 182,000 | ||
Amount of net increase (decrease) in specific allowances on loans | 10,000 | 199,000 | ||
Amount of net charge offs related to a specific loan | 157,000 | |||
Amount of increase (decrease) in the provision for loan losses from collectively determined portion of allowance | 748,000 | |||
Amount of increase (decrease) in the provision for loan losses from unallocated portion of allowance | 4,000 | 92,000 | ||
Recorded Investment | 12,005,000 | 15,734,000 | ||
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend | 0 | 0 | ||
Income From Repayments Of PCI Loans In Excess Of Carrying Amounts | 1,398,000 | |||
Decrease in the collectively determined portion of the allowance for loan losses | 15,000 | |||
Financing Receivable Allowance For Credit Losses Recovery Setoff Against Allowances Provided | 17,000 | |||
Purchased Credit Impaired | ||||
LOANS | ||||
Loans receivable | 3,983,000 | 6,558,000 | ||
Loans Modified, Recorded Investment | 3,983,000 | 6,558,000 | ||
Small Business Administration - Paycheck Protection Program | ||||
LOANS | ||||
Interest and fees | 575,000 | 1,998,000 | ||
Paycheck Protection Program - 1st Draw | ||||
LOANS | ||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | 18,000 | |||
Contractual principal balances | 905,000 | |||
Recorded Investment | 887,000 | |||
Paycheck Protection Program - 2nd Draw | ||||
LOANS | ||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | 357,000 | |||
Contractual principal balances | 11,847,000 | |||
Recorded Investment | 11,490,000 | |||
Unfunded Loan Commitment | ||||
LOANS | ||||
Allowance for Loan losses | 0 | 0 | ||
Commercial | ||||
LOANS | ||||
Loans receivable | 960,143,000 | 978,371,000 | ||
Allowance for Loan losses | 8,922,000 | 6,564,000 | 8,293,000 | 6,308,000 |
Financing receivable charge-offs | 150,000 | 0 | ||
Provision (credit) for loan losses | 779,000 | 242,000 | ||
Commercial | Purchased Credit Impaired | ||||
LOANS | ||||
Loans receivable | 3,913,000 | 6,485,000 | ||
Commercial | Paycheck Protection Program - 1st Draw | ||||
LOANS | ||||
Loans receivable | 887,000 | 1,356,000 | ||
Allowance for Loan losses | 0 | 0 | ||
Commercial | Paycheck Protection Program - 1st Draw | Purchased Credit Impaired | ||||
LOANS | ||||
Loans receivable | 0 | 0 | ||
Commercial | Paycheck Protection Program - 2nd Draw | ||||
LOANS | ||||
Loans receivable | 11,490,000 | 25,508,000 | ||
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 | ||
Specific allowances | 72,000 | 72,000 | ||
Loans receivable | 159,793,000 | 159,073,000 | ||
Allowance for Loan losses | 2,841,000 | 2,187,000 | 2,723,000 | 2,245,000 |
Financing receivable charge-offs | 150,000 | 0 | ||
Provision (credit) for loan losses | 268,000 | (72,000) | ||
Commercial | Commercial and industrial | Purchased Credit Impaired | ||||
LOANS | ||||
Loans receivable | 39,000 | 763,000 | ||
Commercial | Real estate loan | ||||
LOANS | ||||
Recorded investment - with allowance | 6,456,000 | 6,468,000 | ||
Specific allowances | 658,000 | 668,000 | ||
Loans receivable | 585,677,000 | 569,840,000 | ||
Allowance for Loan losses | 5,017,000 | 3,350,000 | 4,405,000 | 3,051,000 |
Financing receivable charge-offs | 0 | 0 | ||
Provision (credit) for loan losses | 612,000 | 299,000 | ||
Commercial | Real estate loan | Purchased Credit Impaired | ||||
LOANS | ||||
Loans receivable | 3,874,000 | 4,144,000 | ||
Unallocated | ||||
LOANS | ||||
Allowance for Loan losses | 667,000 | 677,000 | 671,000 | 585,000 |
Financing receivable charge-offs | 0 | 0 | ||
Provision (credit) for loan losses | (4,000) | 92,000 | ||
Residential mortgage | ||||
LOANS | ||||
Loans receivable | 560,285,000 | 569,346,000 | ||
Allowance for Loan losses | 4,445,000 | 4,200,000 | 4,338,000 | $ 4,253,000 |
Financing receivable charge-offs | 0 | 0 | ||
Provision (credit) for loan losses | 91,000 | $ (55,000) | ||
Residential mortgage | Purchased Credit Impaired | ||||
LOANS | ||||
Loans receivable | $ 70,000 | $ 73,000 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross amount | $ 6,639 | $ 6,639 |
Accumulated amortization | (3,433) | (3,323) |
Net | $ 3,206 | $ 3,316 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Amortization expense | $ 110 | $ 134 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Change in Carrying Amount of Goodwill (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Changes in the carrying amount of goodwill | ||
Goodwill | $ 52,505,000 | $ 52,505,000 |
BORROWED FUNDS - Short-term bor
BORROWED FUNDS - Short-term borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | $ 2,357 | $ 1,803 |
FHLB-Pittsburgh borrowings | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | 0 | 0 |
Customer repurchase agreements | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Short-term borrowings | $ 2,357 | $ 1,803 |
BORROWED FUNDS - Short-term b_2
BORROWED FUNDS - Short-term borrowings - Additional information (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
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 | $ 12,817,000 | $ 14,034,000 |
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 | $ 2,380,000 | $ 1,820,000 |
Federal Home Loan Bank of Pittsburgh | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Line of Credit Facility, Maximum Borrowing Capacity | 757,811,000 | 756,868,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 1,077,215,000 | 1,046,242,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 731,429,000 | 723,557,000 |
Federal Home Loan Bank of Pittsburgh | Other Assets | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Federal Home Loan Bank Stock | 9,258,000 | 9,313,000 |
Federal Home Loan Bank of Pittsburgh | Federal Reserve Bank of Philadelphia | ||
BORROWED FUNDS AND SUBORDINATED DEBT | ||
Line of Credit Facility, Maximum Borrowing Capacity | 12,429,000 | 13,642,000 |
Long-term Line of Credit, Total | $ 0 | $ 0 |
BORROWED FUNDS - Long-term Borr
BORROWED FUNDS - Long-term Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Long-term Borrowing | ||
Long-term borrowings | $ 20,581 | $ 28,042 |
Loans maturing in 2022 with a weighted-average rate of 0.58% | ||
Long-term Borrowing | ||
Rate | 0.58% | 0.58% |
Loans maturing in 2023 with a weighted-average rate of 0.73% | ||
Long-term Borrowing | ||
Rate | 0.73% | 0.73% |
Loans maturing in 2024 with a rate of 0.75% | ||
Long-term Borrowing | ||
Rate | 0.75% | 0.75% |
Loan maturing in 2025 with a rate of 4.91% | ||
Long-term Borrowing | ||
Rate | 4.91% | 4.91% |
Federal Home Loan Bank of Pittsburgh | ||
Long-term Borrowing | ||
Long-term borrowings | $ 20,581 | $ 28,042 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2022 with a weighted-average rate of 0.58% | ||
Long-term Borrowing | ||
Long-term borrowings | 8,050 | 15,452 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2023 with a weighted-average rate of 0.73% | ||
Long-term Borrowing | ||
Long-term borrowings | 7,093 | 7,119 |
Federal Home Loan Bank of Pittsburgh | Loans maturing in 2024 with a rate of 0.75% | ||
Long-term Borrowing | ||
Long-term borrowings | 5,090 | 5,099 |
Federal Home Loan Bank of Pittsburgh | Loan maturing in 2025 with a rate of 4.91% | ||
Long-term Borrowing | ||
Long-term borrowings | $ 348 | $ 372 |
BORROWED FUNDS - Senior Notes (
BORROWED FUNDS - Senior Notes (Details) - USD ($) | May 19, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Senior notes, net | $ 14,717,000 | $ 14,701,000 | |
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 | |
Stated interest rate | 2.75% | 2.75% | |
Debt issuance costs | $ 337,000 | ||
Senior notes, net | $ 14,663,000 | $ 14,717,000 | $ 14,701,000 |
Amortization of debt issuance costs | $ 16,000 | ||
Effective interest rate | 3.23% |
BORROWED FUNDS - Subordinated D
BORROWED FUNDS - Subordinated Debt (Details) - USD ($) | May 19, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Subordinated debt, net | $ 33,031,000 | $ 33,009,000 | |
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 | |
Stated interest rate | 6.50% | 6.50% | |
Subordinated debt, net | $ 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 | |
Stated interest rate | 6.50% | 6.50% | |
Subordinated debt, net | $ 2,004,000 | $ 2,008,000 | |
Effective interest rate | 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 | $ 24,527,000 | $ 24,501,000 |
Amortization of debt issuance costs | $ 26,000 | ||
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 | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | |
Stock-based compensation expense | $ 368,000 | $ 341,000 | |
Forecast | |||
Stock-based compensation expense | $ 1,622,000 | ||
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) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)shares | |
STOCK-BASED COMPENSATION PLANS | |
Number of shares | shares | 78,243 |
Average Grant Date Fair Value | $ | $ 1,959 |
Stock Incentive Plan | Restricted Stock | Employees | |
STOCK-BASED COMPENSATION PLANS | |
Number of shares | shares | 51,638 |
Average Grant Date Fair Value | $ | $ 1,293 |
Stock Incentive Plan | Performance Shares | Employees | |
STOCK-BASED COMPENSATION PLANS | |
Number of shares | shares | 17,017 |
Average Grant Date Fair Value | $ | $ 426 |
Independent Directors Stock Incentive Plan | Restricted Stock | Director [Member] | |
STOCK-BASED COMPENSATION PLANS | |
Number of shares | shares | 9,588 |
Average Grant Date Fair Value | $ | $ 240 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Asset pledged | |||
Derivative Financial Instruments | |||
Available-for-sale securities pledged as collateral | $ 3,965,000 | ||
Interest rate swap agreements | |||
Derivative Financial Instruments | |||
Aggregate notional amount | 122,138,000 | $ 123,904,000 | |
Asset Derivatives, Notional Amount | 61,069,000 | 61,547,000 | |
Asset Derivatives, Fair Value | 137,000 | 3,104,000 | |
Liability Derivatives, Notional Amount | 61,069,000 | 61,547,000 | |
Liability Derivatives, Fair Value | 137,000 | $ 3,104,000 | |
Derivatives not designated as hedging instruments | Interest rate swap agreements | |||
Derivative Financial Instruments | |||
Interest rate swap | 0 | $ 0 | |
Increase (decrease) in interest income | $ 317,000 | $ 338,000 |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets Measured at Fair Value | ||
Total, fair value | $ 532,913 | $ 517,679 |
Impaired loans with a valuation allowance | 6,528 | 6,540 |
Valuation allowance | (730) | (740) |
Impaired loans, net | 6,528 | 6,540 |
Interest rate swap agreements | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 137 | 3,104 |
Fair value of the derivative liability | 137 | 3,104 |
Obligations of the U.S. Treasury | ||
Assets Measured at Fair Value | ||
Total, fair value | 36,494 | 24,912 |
Obligations of U.S. Government agencies | ||
Assets Measured at Fair Value | ||
Total, fair value | 23,408 | 24,091 |
Bank holding company debt securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,043 | 17,987 |
Obligations Of States And Political Subdivisions Tax Exempt | ||
Assets Measured at Fair Value | ||
Total, fair value | 143,633 | 148,028 |
Obligations Of States And Political Subdivisions Taxable | ||
Assets Measured at Fair Value | ||
Total, fair value | 69,629 | 72,765 |
Residential Passthrough Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 106,568 | 98,181 |
Residential Collateralized Mortgage Obligations | ||
Assets Measured at Fair Value | ||
Total, fair value | 43,868 | 44,247 |
Commercial Mortgage Backed Securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 85,270 | 87,468 |
Recurring fair value measurements | ||
Assets Measured at Fair Value | ||
Total, fair value | 532,913 | 517,679 |
Marketable equity security | 926 | 971 |
Servicing rights | 2,429 | 2,329 |
Total asset fair value measurements | 536,405 | 524,083 |
Recurring fair value measurements | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 36,494 | 24,912 |
Marketable equity security | 926 | 971 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 37,420 | 25,883 |
Recurring fair value measurements | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 496,419 | 492,767 |
Marketable equity security | 0 | 0 |
Servicing rights | 0 | 0 |
Total asset fair value measurements | 496,556 | 495,871 |
Recurring fair value measurements | Level 3 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Marketable equity security | 0 | 0 |
Servicing rights | 2,429 | 2,329 |
Total asset fair value measurements | 2,429 | 2,329 |
Recurring fair value measurements | Interest rate swap agreements | ||
Assets Measured at Fair Value | ||
Fair value derivative asset | 137 | 3,104 |
Fair value of the derivative liability | 137 | 3,104 |
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 | 137 | 3,104 |
Fair value of the derivative liability | 137 | 3,104 |
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 | 36,494 | 24,912 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 36,494 | 24,912 |
Recurring fair value measurements | Obligations of the U.S. Treasury | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
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 | 23,408 | 24,091 |
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 | 23,408 | 24,091 |
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 | Bank holding company debt securities | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,043 | 17,987 |
Recurring fair value measurements | Bank holding company debt securities | Level 1 | ||
Assets Measured at Fair Value | ||
Total, fair value | 0 | 0 |
Recurring fair value measurements | Bank holding company debt securities | Level 2 | ||
Assets Measured at Fair Value | ||
Total, fair value | 24,043 | 17,987 |
Recurring fair value measurements | Bank holding company debt securities | 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 | 143,633 | 148,028 |
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 | 143,633 | 148,028 |
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 | 69,629 | 72,765 |
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 | 69,629 | 72,765 |
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 | 106,568 | 98,181 |
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 | 106,568 | 98,181 |
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 | 43,868 | 44,247 |
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 | 43,868 | 44,247 |
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 | 85,270 | 87,468 |
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 | 85,270 | 87,468 |
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 | 6,329 | 6,484 |
Impaired loans, net | 5,798 | 5,800 |
Foreclosed assets held for sale | 531 | 684 |
Nonrecurring fair value measurements | Level 1 | ||
Assets Measured at Fair Value | ||
Total asset fair value measurements | 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, 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 | 6,329 | 6,484 |
Impaired loans, net | 5,798 | 5,800 |
Foreclosed assets held for sale | $ 531 | $ 684 |
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 ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Valuation Techniques and the Unobservable Inputs | ||
Fair value | $ 2,429,000 | $ 2,329,000 |
Valuation Technique, Discounted cash flow | ||
Valuation Techniques and the Unobservable Inputs | ||
Fair value | $ 2,429,000 | $ 2,329,000 |
Valuation Technique, Discounted cash flow | Servicing rights. | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 13.00% | 13.00% |
Weighted-average PSA | 193.00% | 209.00% |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reconciliation of activity for Level 3 assets (servicing rights) measured at fair value on a recurring basis | ||
Servicing rights balance, beginning of period | $ 2,329 | $ 1,689 |
Originations of servicing rights | 98 | 192 |
Unrealized (loss) gain included in earnings | 2 | 75 |
Servicing rights balance, end of period | $ 2,429 | $ 1,956 |
FAIR VALUE MEASUREMENTS AND F_6
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS - Level 3 Valuation Techniques Nonrecurring (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | $ 6,528 | $ 6,540 |
Related allowance | 730 | 740 |
Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 5,798 | 5,800 |
Foreclosed assets held for sale | 531 | 684 |
Residential mortgage | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | 256 | 256 |
Commercial | Real estate loan | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 6,456 | 6,468 |
Related allowance | 658 | 668 |
Commercial | Commercial and industrial | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 72 | 72 |
Related allowance | 72 | 72 |
Commercial | Loans secured by farm land | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 428 | |
Related allowance | 0 | |
Valuation, Market Approach | Commercial | Loans secured by farm land | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Fair value | 428 | |
Impaired Loans | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 6,528 | |
Related allowance | 730 | |
Fair value | 5,798 | |
Impaired Loans | Valuation, Market Approach | Residential mortgage | Real estate loan | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 6,540 | |
Related allowance | 740 | |
Fair value | 5,800 | |
Impaired Loans | Valuation, Market Approach | Commercial | Real estate loan | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | 6,456 | 6,468 |
Related allowance | 658 | 668 |
Fair value | $ 5,798 | $ 5,800 |
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% | 27.00% |
Impaired Loans | Valuation, Market Approach | Commercial | Commercial and industrial | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Recorded investment - with allowance | $ 72 | $ 72 |
Related allowance | 72 | 72 |
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% |
Impaired Loans | Valuation, Market Approach | Commercial | Loans secured by farm land | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 50.00% | |
Foreclosed Assets Held For Sale | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Foreclosed assets held for sale | $ 531 | |
Valuation allowance | 0 | |
Fair value | 531 | |
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 | 275 | $ 256 |
Valuation allowance | 0 | 0 |
Fair value | $ 275 | $ 256 |
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 | 50.00% | 53.00% |
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 | $ 256 | $ 684 |
Valuation allowance | 0 | 0 |
Fair value | $ 256 | $ 684 |
Foreclosed Assets Held For Sale | Valuation, Market Approach | Residential mortgage | Weighted average | Nonrecurring fair value measurements | ||
Valuation Techniques and the Unobservable Inputs | ||
Discount rate | 53.00% |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Interest rate swap agreements | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Fair value derivative asset | $ 137 | $ 3,104 |
Reported value measurement | Level 1 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Cash and cash equivalents | 105,246 | 95,848 |
Reported value measurement | Level 2 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Certificates of deposit | 9,100 | 9,100 |
Restricted equity securities (included in Other Assets) | 9,508 | 9,562 |
Accrued interest receivable | 7,507 | 7,235 |
Short-term borrowings | 2,357 | 1,803 |
Long-term borrowings | 20,581 | 28,042 |
Senior debt | 14,717 | 14,701 |
Subordinated debt | 33,031 | 33,009 |
Accrued interest payable | 633 | 205 |
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 | 1,691,457 | 1,639,167 |
Reported value measurement | Level 2 | Time deposits | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 269,495 | 285,893 |
Reported value measurement | Level 3 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Loans, net | 1,523,919 | 1,551,312 |
Estimate of fair value measurement | Level 1 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Cash and cash equivalents | 105,246 | 95,848 |
Estimate of fair value measurement | Level 2 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Certificates of deposit | 8,911 | 9,142 |
Restricted equity securities (included in Other Assets) | 9,508 | 9,562 |
Accrued interest receivable | 7,507 | 7,235 |
Short-term borrowings | 1,956 | 1,603 |
Long-term borrowings | 20,518 | 28,347 |
Senior debt | 14,429 | 15,016 |
Subordinated debt | 30,293 | 33,171 |
Accrued interest payable | 633 | 205 |
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 | 1,691,457 | 1,639,167 |
Estimate of fair value measurement | Level 2 | Time deposits | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Deposits, fair value | 269,902 | 286,962 |
Estimate of fair value measurement | Level 3 | ||
Fair values, and carrying amounts financial instruments not recorded at fair value | ||
Loans, net | $ 1,533,430 | $ 1,573,955 |