Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34292 | |
Entity Registrant Name | ORRSTOWN FINANCIAL SERVICES, INC. | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-2530374 | |
Entity Address, Address Line One | 77 East King Street | |
Entity Address, Address Line Two | P. O. Box 250 | |
Entity Address, City or Town | Shippensburg | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17257 | |
City Area Code | (717) | |
Local Phone Number | 532-6114 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | ORRF | |
Securities Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,203,512 | |
Entity Central Index Key | 0000826154 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 26,854 | $ 25,969 |
Interest-bearing deposits with banks | 60,453 | 29,994 |
Cash and cash equivalents | 87,307 | 55,963 |
Restricted investments in bank stocks | 12,646 | 16,184 |
Securities available for sale (amortized cost of $478,476 and $491,492 at September 30, 2020 and December 31, 2019, respectively) | 478,288 | 490,885 |
Loans held for sale, at fair value | 12,804 | 9,364 |
Loans | 2,029,870 | 1,644,330 |
Less: Allowance for loan losses | (19,725) | (14,655) |
Net loans | 2,010,145 | 1,629,675 |
Premises and equipment, net | 35,476 | 37,524 |
Cash surrender value of life insurance | 68,446 | 63,613 |
Goodwill | 18,724 | 19,925 |
Other intangible assets, net | 5,803 | 7,180 |
Accrued interest receivable | 8,812 | 6,040 |
Other assets | 43,216 | 46,921 |
Total assets | 2,781,667 | 2,383,274 |
Deposits: | ||
Noninterest-bearing | 409,051 | 249,450 |
Interest-bearing | 1,870,432 | 1,626,072 |
Total deposits | 2,279,483 | 1,875,522 |
Securities sold under agreements to repurchase | 17,445 | 8,269 |
FHLB advances and other | 183,373 | 209,667 |
Subordinated notes | 31,889 | 31,847 |
Other liabilities | 36,630 | 34,720 |
Total liabilities | 2,548,820 | 2,160,025 |
Shareholders’ Equity | ||
Preferred stock, value | 0 | 0 |
Common stock, value | 586 | 584 |
Additional paid - in capital | 188,588 | 188,365 |
Retained earnings | 45,938 | 35,246 |
Accumulated other comprehensive loss | (1,455) | (480) |
Treasury stock— 53,534 and 20,730 shares, at cost at September 30, 2020 and December 31, 2019, respectively | (810) | (466) |
Total shareholders’ equity | 232,847 | 223,249 |
Total liabilities and shareholders’ equity | $ 2,781,667 | $ 2,383,274 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Securities available for sale amortized cost | $ 478,476 | $ 491,492 |
Preferred stock, par value (usd per share) | $ 1.25 | $ 1.25 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, stated value (usd per share) | $ 0.05205 | $ 0.05205 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 11,257,046 | 11,220,604 |
Common stock, shares outstanding (in shares) | 11,203,512 | 11,199,874 |
Treasury stock - common - shares (in shares) | 53,534 | 20,730 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income | ||||
Loans | $ 21,645 | $ 20,178 | $ 63,605 | $ 54,987 |
Investment securities - taxable | 2,145 | 3,790 | 8,378 | 10,963 |
Investment securities - tax-exempt | 417 | 309 | 1,121 | 1,783 |
Short-term investments | 9 | 558 | 101 | 1,232 |
Total interest income | 24,216 | 24,835 | 73,205 | 68,965 |
Interest expense | ||||
Deposits | 2,483 | 5,795 | 10,147 | 14,402 |
Securities sold under agreements to repurchase | 20 | 29 | 72 | 84 |
FHLB advances and other | 394 | 443 | 1,604 | 1,640 |
Subordinated notes | 501 | 490 | 1,504 | 1,486 |
Total interest expense | 3,398 | 6,757 | 13,327 | 17,612 |
Net interest income | 20,818 | 18,078 | 59,878 | 51,353 |
Provision for loan losses | 2,200 | 300 | 5,025 | 900 |
Net interest income after provision for loan losses | 18,618 | 17,778 | 54,853 | 50,453 |
Noninterest income | ||||
Service charges on deposit accounts | 684 | 918 | 2,085 | 2,508 |
Interchange income | 900 | 843 | 2,507 | 2,422 |
Other service charges, commissions and fees | 168 | 193 | 473 | 583 |
Swap fees | 95 | 629 | 527 | 629 |
Trust and investment management income | 1,713 | 1,892 | 5,049 | 5,399 |
Brokerage income | 751 | 654 | 2,069 | 1,804 |
Mortgage banking activities | 1,985 | 623 | 3,926 | 1,743 |
Gain on sale of portfolio loans | 0 | 0 | 2,803 | 0 |
Income from life insurance | 543 | 479 | 1,615 | 1,505 |
Investment securities (losses) gains | (13) | 2,328 | (44) | 4,731 |
Other income | 35 | 44 | 118 | 188 |
Total noninterest income | 6,861 | 8,603 | 21,128 | 21,512 |
Noninterest expenses | ||||
Salaries and employee benefits | 10,695 | 10,489 | 32,352 | 28,088 |
Occupancy | 1,231 | 1,133 | 3,480 | 3,200 |
Furniture and equipment | 1,203 | 1,252 | 3,569 | 3,415 |
Data processing | 958 | 830 | 2,620 | 2,658 |
Automated teller and interchange fees | 278 | 270 | 778 | 744 |
Advertising and bank promotions | 197 | 279 | 1,153 | 1,348 |
FDIC insurance | 230 | (9) | 491 | 397 |
Other professional services | 603 | 814 | 2,340 | 2,078 |
Directors' compensation | 214 | 228 | 679 | 725 |
Taxes other than income | 453 | 306 | 904 | 926 |
Intangible asset amortization | 357 | 486 | 1,224 | 1,096 |
Merger related and branch consolidation expenses | 1,310 | 471 | 1,310 | 7,976 |
Insurance claim receivable (recovery) write-off | 0 | 0 | (486) | 615 |
Other operating expenses | 1,536 | 1,591 | 5,586 | 4,327 |
Total noninterest expenses | 19,265 | 18,140 | 56,000 | 57,593 |
Income before income tax expense | 6,214 | 8,241 | 19,981 | 14,372 |
Income tax expense | 1,237 | 1,340 | 3,577 | 1,682 |
Net income | $ 4,977 | $ 6,901 | $ 16,404 | $ 12,690 |
Per share information: | ||||
Basic earnings per share (in usd per share) | $ 0.45 | $ 0.63 | $ 1.50 | $ 1.25 |
Diluted earnings per share (in usd per share) | 0.45 | 0.62 | 1.49 | 1.23 |
Dividends paid per share (in usd per share) | $ 0.17 | $ 0.15 | $ 0.51 | $ 0.45 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,977 | $ 6,901 | $ 16,404 | $ 12,690 |
Other comprehensive income, net of tax: | ||||
Unrealized gains on securities available for sale arising during the period | 4,296 | 1,400 | 375 | 11,880 |
Reclassification adjustment for losses (gains) realized in net income | 13 | (2,328) | 44 | (4,731) |
Net unrealized gains (losses) on securities available for sale | 4,309 | (928) | 419 | 7,149 |
Tax effect | (904) | 195 | (87) | (1,502) |
Total other comprehensive income (loss), net of tax and reclassification adjustments on securities available for sale | 3,405 | (733) | 332 | 5,647 |
Unrealized gain (loss) on interest rate swaps used in cash flow hedges | 208 | 0 | (1,893) | 0 |
Reclassification adjustment for losses realized in net income | 114 | 0 | 239 | 0 |
Net unrealized gain (loss) on interest rate swaps used in cash flow hedges | 322 | 0 | (1,654) | 0 |
Tax effect | (68) | 0 | 347 | 0 |
Total other comprehensive gain (loss), net of tax and reclassification adjustments on interest rate swaps | 254 | 0 | (1,307) | 0 |
Total other comprehensive income (loss), net of tax and reclassification adjustments | 3,659 | (733) | (975) | 5,647 |
Total comprehensive income | $ 8,636 | $ 6,168 | $ 15,429 | $ 18,337 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance at Dec. 31, 2018 | $ 173,433 | $ 491 | $ 151,678 | $ 24,472 | $ (2,972) | $ (236) |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 12,690 | 12,690 | ||||
Total other comprehensive income (loss) net of taxes | 5,647 | 5,647 | ||||
Cash dividends | (4,472) | (4,472) | ||||
Issuance of stock, common shares to acquire Hamilton Bancorp Inc. | 36,622 | 92 | 36,530 | |||
Shares-based compensation plans: | ||||||
Issuance of stock, including compensation expense | (427) | 1 | 374 | (802) | ||
Ending balance at Sep. 30, 2019 | 223,493 | 584 | 188,582 | 32,690 | 2,675 | (1,038) |
Beginning balance at Jun. 30, 2019 | 219,868 | 584 | 188,414 | 27,462 | 3,408 | 0 |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 6,901 | 6,901 | ||||
Total other comprehensive income (loss) net of taxes | (733) | (733) | ||||
Cash dividends | (1,673) | (1,673) | ||||
Shares-based compensation plans: | ||||||
Issuance of stock, including compensation expense | (870) | 0 | 168 | (1,038) | ||
Ending balance at Sep. 30, 2019 | 223,493 | 584 | 188,582 | 32,690 | 2,675 | (1,038) |
Beginning balance at Dec. 31, 2019 | 223,249 | 584 | 188,365 | 35,246 | (480) | (466) |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 16,404 | 16,404 | ||||
Total other comprehensive income (loss) net of taxes | (975) | (975) | ||||
Cash dividends | (5,712) | (5,712) | ||||
Shares-based compensation plans: | ||||||
Issuance of stock, including compensation expense | (119) | 2 | 223 | (344) | ||
Ending balance at Sep. 30, 2020 | 232,847 | 586 | 188,588 | 45,938 | (1,455) | (810) |
Beginning balance at Jun. 30, 2020 | 225,638 | 586 | 188,226 | 42,862 | (5,114) | (922) |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 4,977 | 4,977 | ||||
Total other comprehensive income (loss) net of taxes | 3,659 | 3,659 | ||||
Cash dividends | (1,901) | (1,901) | ||||
Shares-based compensation plans: | ||||||
Issuance of stock, including compensation expense | 474 | 362 | 112 | |||
Ending balance at Sep. 30, 2020 | $ 232,847 | $ 586 | $ 188,588 | $ 45,938 | $ (1,455) | $ (810) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per share (in usd per share) | $ 0.17 | $ 0.15 | $ 0.51 | $ 0.45 |
Issuance of stock to acquire Hamilton Bancorp, Inc. (in shares) | 1,765,704 | |||
Common shares forfeited (in shares) | 11,383 | |||
Common shares issued during the period (in shares) | 48,694 | 36,442 | 15,845 | |
Treasury stock, shares acquired (in shares) | 5,634 | 45,505 | 32,804 | 36,474 |
Compensation expense, issuance of stock | $ 437 | $ 475 | $ 1,613 | $ 1,154 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ 16,404,000 | $ 12,690,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net discount accretion | (2,898,000) | (1,594,000) |
Depreciation and amortization expense | 4,980,000 | 3,970,000 |
Impairment of intangibles | 153,000 | 0 |
Provision for loan losses | 5,025,000 | 900,000 |
Share-based compensation | 1,613,000 | 1,154,000 |
Gain on sales of loans originated for sale | (4,028,000) | (1,653,000) |
Mortgage loans originated for sale | (147,647,000) | (78,242,000) |
Proceeds from sales of loans originated for sale | 146,890,000 | 75,276,000 |
Gain on sale of portfolio loans | (2,803,000) | 0 |
Net loss (gain) on disposal of OREO | 164,000 | (8,000) |
Writedown of OREO | 544,000 | 0 |
Net loss on disposal of premises and equipment | 1,000 | 137,000 |
Deferred income taxes | (672,000) | 1,348,000 |
Investment securities losses (gains) | 44,000 | (4,731,000) |
Income from life insurance | (1,615,000) | (1,505,000) |
(Increase) decrease in accrued interest receivable | (2,772,000) | 742,000 |
Decrease in accrued interest payable and other liabilities | (504,000) | (5,618,000) |
Other, net | 3,459,000 | 589,000 |
Net cash provided by operating activities | 16,338,000 | 3,455,000 |
Cash flows from investing activities | ||
Proceeds from sales of AFS securities | 0 | 199,411,000 |
Maturities, repayments and calls of AFS securities | 38,970,000 | 22,934,000 |
Purchases of AFS securities | (26,691,000) | (166,694,000) |
Net cash and cash equivalents received from acquisitions | 0 | 29,442,000 |
Net redemptions of restricted investments in bank stocks | 3,538,000 | 2,101,000 |
Net decrease in loans | 65,605,000 | 4,023,000 |
Proceeds from sales of portfolio loans | 22,665,000 | 0 |
Purchases of bank premises and equipment | (914,000) | (3,226,000) |
Proceeds from disposal of OREO | 3,734,000 | 724,000 |
Proceeds from disposal of bank premises and equipment | 59,000 | 0 |
Purchases of bank owned life insurance | (3,636,000) | (2,280,000) |
Death benefit proceeds from life insurance contracts | 0 | 571,000 |
Net cash provided by investing activities | 103,330,000 | 87,006,000 |
Cash flows from financing activities | ||
Net decrease in deposits | (63,761,000) | (23,598,000) |
Net decrease in borrowings with original maturities less than 90 days | (137,424,000) | (2,464,000) |
Proceeds from FHLB advances and other borrowings | 180,955,000 | 20,000,000 |
Payments on FHLB advances and other borrowings | (60,649,000) | (116,678,000) |
Subordinated note issuance costs | 0 | (59,000) |
Dividends paid | (5,712,000) | (4,472,000) |
Acquisition of treasury stock | (1,170,000) | 0 |
Treasury shares repurchased for employee taxes associated with restricted stock vesting | (679,000) | (1,694,000) |
Proceeds from issuance of employee stock purchase plan shares | 116,000 | 113,000 |
Net cash used in financing activities | (88,324,000) | (128,852,000) |
Net increase (decrease) in cash and cash equivalents | 31,344,000 | (38,391,000) |
Cash and cash equivalents at beginning of period | 55,963,000 | 88,815,000 |
Cash and cash equivalents at end of period | 87,307,000 | 50,424,000 |
Cash paid during the period for: | ||
Interest | 13,387,000 | 17,573,000 |
Supplemental schedule of noncash investing activities: | ||
OREO acquired in settlement of loans | 0 | 161,000 |
Lease liabilities arising from obtaining ROU assets | 400,000 | 8,115,000 |
SBA PPP loans originated | $ 467,654,000 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES See the Glossary of Defined Terms at the beginning of this Report for terms used throughout the unaudited condensed consolidated financial statements and related notes of this Form 10-Q. Nature of Operations – Orrstown Financial Services, Inc. is a financial holding company that operates Orrstown Bank, a commercial bank with banking and financial advisory offices in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania, and in Anne Arundel, Baltimore, Howard and Washington Counties, Maryland, as well as Baltimore City, Maryland. The Company operates in the community banking segment and engages in lending activities, including commercial, residential, commercial mortgages, construction, municipal, and various forms of consumer lending, and deposit services, including checking, savings, time, and money market deposits. The Company also provides fiduciary services, investment advisory, insurance and brokerage services. Effective July 31, 2020, Wheatland Advisors, Inc., a registered investment advisor non-bank subsidiary, headquartered in Lancaster County, Pennsylvania was discontinued. The Company and the Bank are subject to regulation by certain federal and state agencies and undergo periodic examinations by such regulatory authorities. Basis of Presentation – The accompanying unaudited condensed consolidated financial statements include the accounts of Orrstown Financial Services, Inc. and its wholly owned subsidiary, the Bank. The Company has prepared these unaudited condensed consolidated financial statements in accordance with GAAP for interim financial information, SEC rules that permit reduced disclosure for interim periods, and Article 10 of Regulation S-X. In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited condensed consolidated financial statements. The December 31, 2019 consolidated balance sheet information contained in this Quarterly Report on Form 10-Q was derived from the Company's 2019 audited consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. All significant intercompany transactions and accounts have been eliminated. Certain reclassifications may have been made to prior year amounts to conform with current year classifications. The Company's management has evaluated all activity of the Company and concluded that subsequent events are properly reflected in the Company's unaudited condensed consolidated financial statements and notes as required by GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The effects of the COVID-19 pandemic may negatively impact material estimates. Material estimates that are particularly susceptible to significant change include the determination of the ALL and those used in valuation methodologies in areas with no observable market, such as loans, deposits, borrowings, goodwill, core deposit and other intangible assets, mortgage servicing rights, other assets and liabilities obtained or assumed in business combinations. Derivatives - FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company's objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. Changes to the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged transaction affects earnings. During the nine months ended September 30, 2020, such derivatives were used to hedge the variable cash flows associated with overnight borrowings. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. Leases - The Company evaluates its contracts at inception to determine if an arrangement either is a lease or contains one. Operating lease ROU assets are included in other assets and operating lease liabilities in accrued interest payable and other liabilities in the unaudited condensed consolidated balance sheets. The Company had no finance leases at September 30, 2020. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company's leases do not provide an implicit rate, so the Company's incremental borrowing rate is used, which approximates its fully collateralized borrowing rate, based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is reevaluated upon lease modification. The operating lease ROU asset also includes any initial direct costs and prepaid lease payments made less any lease incentives. In calculating the present value of lease payments, the Company may include options to extend the lease when it is reasonably certain that it will exercise that option. In accordance with ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), the Company keeps leases with an initial term of 12 months or less off of the balance sheet. The Company recognizes these lease payments in the unaudited condensed consolidated statements of income on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components and has elected the practical expedient to account for them as a single lease component. The Company's operating leases relate primarily to bank branches and office space. Upon the adoption of ASU 2016-02 Recent Accounting Pronouncements - ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ( "ASU 2016-13" ). The amendments in this update require an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the amendments in this update amend the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For certain public companies, this update was effective for interim and annual periods beginning after December 15, 2019. The Company delayed the adoption of ASU 2016-13 as noted below. ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates ("ASU 2019-10"), extended the implementation deadline of ASU 2016-13 for smaller reporting and other companies until the fiscal year and interim periods beginning after December 15, 2022. The Company meets the requirements to be considered a smaller reporting company under SEC Regulation S-K and SEC Rule 405, and did not adopt ASU 2016-13 on January 1, 2020. The Company is evaluating the impact of the delay for adoption of ASU 2016-13, and is working with a third-party vendor solution to assist with the application of ASU 2016-13 and finalizing the loss estimation models to be used. Once management determines which methods will be utilized, a third party will be contracted to perform a model validation prior to adoption. While the Company anticipates the allowance for loan losses will increase under its current assumptions, it expects the impact of adopting ASU 2016-13 will be influenced by the composition, characteristics and quality of its loan and securities portfolios, as well as general economic conditions and forecasts at the adoption date. The other provisions of ASU 2019-10 were not applicable to the Company. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The optional expedients apply consistently to all contracts or transactions within the scope of this topic, while the optional expedients for hedging relationships can be elected on an individual basis. The Company has formed a cross-functional working group to lead the transition from LIBOR to a planned adoption of an alternate index. The Company has not yet determined what index will replace LIBOR in its loan agreements. The Company is in the process of implementing fallback language for loans that will mature after 2021. The Company expects to adopt the LIBOR transition relief allowed under this standard, and is currently evaluating the potential impact of this guidance on its financial statements. |
MERGERS AND ACQUISITIONS
MERGERS AND ACQUISITIONS | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
MERGERS AND ACQUISITIONS | MERGERS AND ACQUISITIONS Hamilton Bancorp, Inc. On May 1, 2019, the Company acquired 100% of the outstanding common shares of Hamilton Bancorp, Inc., and its wholly-owned subsidiary, Hamilton Bank, based in Towson, Maryland. The Company acquired Hamilton to introduce our banking and financial services into the Greater Baltimore area of Maryland. Pursuant to the merger agreement, the Company issued 1,765,704 shares of its common stock and paid $14.2 million in cash for all outstanding shares of Hamilton stock and options vesting upon acquisition. Based on the Company's closing stock price of $20.74 on April 30, 2019, the consideration paid to acquire Hamilton totaled approximately $50.8 million. The fair value of assets acquired, excluding goodwill, totaled $494.0 million, including loans totaling $347.1 million. The fair value of liabilities assumed totaled $449.4 million, including deposits totaling $388.2 million. Goodwill represents consideration transferred in excess of the fair value of the net assets acquired. At May 1, 2019, the Company recognized $6.1 million in goodwill associated with the Hamilton acquisition. The goodwill resulting from the acquisition represents the value expected from the expansion of our market in the Greater Baltimore area and the enhancement of our operations through customer synergies and efficiencies, thereby providing enhanced customer service. Goodwill acquired in the Hamilton acquisition is not deductible for tax purposes. The Hamilton acquisition was accounted for using the acquisition method of accounting and, accordingly, purchased assets, including identifiable intangible assets, and assumed liabilities were recorded at their respective acquisition date fair values. The fair value measurements of assets acquired and liabilities assumed are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. The Company finalized the fair values of loans, intangible assets, other assets, income taxes and liabilities associated with Hamilton as of May 1, 2020. Measurement period adjustments made from the date of acquisition through May 1, 2020 are summarized in Note 6 - Goodwill and Other Intangible Assets . The following table summarizes the consideration paid for Hamilton and the estimated fair values of the assets acquired and liabilities assumed recognized at the acquisition date: Fair value of consideration transferred: Cash $ 14,197 Common stock issued 36,622 Total consideration transferred $ 50,819 Estimated fair values of assets acquired and liabilities assumed: Cash and cash equivalents $ 43,140 Securities available for sale 60,882 Restricted investments in bank stocks 2,658 Loans 347,143 Premises and equipment 3,749 Core deposit intangible 4,550 Goodwill 6,132 Cash surrender value of life insurance 17,948 Deferred tax asset, net 7,257 ROU lease asset 2,793 Other assets 3,925 Total assets acquired 500,177 Deposits (388,246) Borrowings (51,393) Other liabilities (9,719) Total liabilities assumed $ (449,358) The determination of estimated fair values of the acquired loans required the Company to make certain estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature. Based on such factors as past due status, nonaccrual status, bankruptcy status, and credit risk ratings, the acquired loans were divided into loans with evidence of credit quality deterioration, which are accounted for under ASC 310-30 (purchased credit impaired), and loans that do not meet this criteria, which are accounted for under ASC 310-20 (purchased non-impaired). Expected cash flows, both principal and interest, were estimated based on key assumptions covering such factors as prepayments, default rates and severity of loss given default. These assumptions were developed using both Hamilton's historical experience and the portfolio characteristics as of the acquisition date, as well as available market research. The fair value estimates for acquired loans were based on the amount and timing of expected principal, interest and other cash flows, including expected prepayments, discounted at prevailing market interest rates applicable to the types of acquired loans, which the Company considered to be level 3 fair value measurements. Deposit liabilities assumed in the Hamilton acquisition were segregated into two categories: time-deposits (i.e., deposit accounts with a stated maturity) and demand deposits, both using level 2 fair value measurements. In determining fair value of time deposits, the Company discounted the contractual cash flows of the deposit accounts using prevailing market interest rates for time deposit accounts of similar type and duration. For demand deposits, the acquisition date outstanding balance of the assumed demand deposit accounts approximates fair value. Acquisition date fair values for securities available for sale were determined using Level 1 or Level 2 inputs consistent with the methods discussed further in Note 13 - Fair Value . The remaining acquisition date fair values represent either Level 2 fair value measurements or Level 3 fair value measurements (premises and equipment and core deposit intangible). Upon completion of the acquisition, the Company sold the acquired investment portfolio and paid off acquired borrowings at the indicated fair value amounts in conjunction with its asset/liability management strategies. The Company recognized a core deposit intangible of $4.6 million, which is being amortized using an accelerated method over a 10-year amortization period, consistent with expected future cash flows. Loans acquired with Hamilton were measured at fair value at the acquisition date with no carryover of any ALL. Loans were segregated into those loans considered to be performing and those considered PCI. The following table presents performing and PCI loans acquired, by loan class, at May 1, 2019: Performing PCI Total Commercial real estate: Owner-occupied $ 42,148 $ 5,894 $ 48,042 Non-owner occupied 45,401 770 46,171 Multi-family 10,773 — 10,773 Acquisition and development: 1-4 family residential construction 7,450 — 7,450 Commercial and land development 4,528 — 4,528 Commercial and industrial 32,316 1,914 34,230 Residential mortgage: First lien 152,657 10,494 163,151 Home-equity - term 4,478 1 4,479 Home equity - lines of credit 13,657 — 13,657 Installment and other loans 14,467 195 14,662 Total loans acquired $ 327,875 $ 19,268 $ 347,143 The following table presents the fair value adjustments made to the amortized cost basis of loans acquired at May 1, 2019: Gross amortized cost basis at acquisition $ 362,125 Market rate adjustment (5,309) Credit fair value adjustment on non-credit impaired loans (3,947) Credit fair value adjustment on PCI loans (5,726) Estimated fair value of acquired loans $ 347,143 The market rate adjustment represents the movement in market interest rates, irrespective of credit adjustments, compared to the contractual rates of the acquired loans. The credit fair value adjustment made on non-credit impaired loans represents the changes in credit quality of the underlying borrowers from loan inception to the acquisition date. The credit fair value adjustment on PCI loans is derived in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , and represents the portion of the loan balance that has been deemed uncollectible based on our expectations of future cash flows for each respective loan. The following table provides information about acquired PCI loans at May 1, 2019: Contractually required principal and interest at acquisition $ 31,599 Nonaccretable difference (8,834) Expected cash flows at acquisition 22,765 Accretable yield (3,497) Estimated fair value of acquired PCI loans $ 19,268 Unaudited pro forma net income for the Company for the three and nine months ended September 30, 2019, would have totaled $7.6 million and $13.4 million, respectively, and revenues would have totaled $38.7 million and $95.7 million for the same periods had the Hamilton acquisition occurred on January 1, 2019. In connection with the Mercersburg and Hamilton acquisitions, the Company incurred merger related expenses totaling $0.5 million and $8.0 million for the three and nine months ending September 30, 2019, which are included in noninterest |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES At September 30, 2020 and December 31, 2019, all investment securities were classified as AFS. The following table summarizes amortized cost and fair value of investment securities, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI, at September 30, 2020 and December 31, 2019: Amortized Cost Gross Unrealized Gross Unrealized Fair Value September 30, 2020 States and political subdivisions $ 104,900 $ 8,042 $ 235 $ 112,707 GSE residential MBSs 4,488 90 — 4,578 GSE residential CMOs 60,254 2,682 797 62,139 Non-agency CMOs 17,071 91 — 17,162 Private label commercial CMOs 72,372 23 3,186 69,209 Asset-backed 219,048 148 7,046 212,150 Other 343 — — 343 Totals $ 478,476 $ 11,076 $ 11,264 $ 478,288 December 31, 2019 States and political subdivisions $ 83,607 $ 4,288 $ 32 $ 87,863 GSE residential CMOs 67,928 1,000 774 68,154 Non-agency CMOs 17,210 — 123 17,087 Private label commercial CMOs 86,704 156 231 86,629 Asset-backed 235,406 138 5,029 230,515 Other 637 — — 637 Totals $ 491,492 $ 5,582 $ 6,189 $ 490,885 The following table summarizes investment securities with unrealized losses at September 30, 2020 and December 31, 2019, aggregated by major security type and the length of time in a continuous unrealized loss position. Less Than 12 Months 12 Months or More Total # of Securities Fair Value Unrealized # of Securities Fair Value Unrealized # of Securities Fair Value Unrealized September 30, 2020 States and political subdivisions 1 $ 9,975 $ 235 — $ — $ — 1 $ 9,975 $ 235 GSE residential CMOs 3 25,296 797 — — — 3 25,296 797 Private label commercial CMOs 4 24,768 1,285 9 38,469 1,901 13 63,237 3,186 Asset-backed 6 45,289 419 13 158,129 6,627 19 203,418 7,046 Totals 14 $ 105,328 $ 2,736 22 $ 196,598 $ 8,528 36 $ 301,926 $ 11,264 December 31, 2019 States and political subdivisions 1 $ 6,173 $ 32 — $ — $ — 1 $ 6,173 $ 32 GSE residential CMOs 5 37,158 309 1 11,602 465 6 48,760 774 Non-agency CMOs 1 17,087 123 — — — 1 17,087 123 Private label commercial CMOs 6 26,079 67 8 39,726 164 14 65,805 231 Asset-backed 9 92,189 1,145 9 121,399 3,884 18 213,588 5,029 Totals 22 $ 178,686 $ 1,676 18 $ 172,727 $ 4,513 40 $ 351,413 $ 6,189 The Company determines whether unrealized losses are temporary in nature in accordance with FASB ASC 320-10, Investments - Overall , (“FASB ASC 320-10”) and FASB ASC 325-40, Investments – Beneficial Interests in Securitized Financial Assets , when applicable. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of an OTTI condition. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost and near-term prospects of the issuer. FASB ASC 320-10 requires the Company to assess if an OTTI exists by considering whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If either of these situations applies, the guidance requires the Company to record an OTTI charge to earnings on debt securities for the difference between the amortized cost basis of the security and the fair value of the security. If neither of these situations applies, the Company is required to assess whether it is expected to recover the entire amortized cost basis of the security. If the Company is not expected to recover the entire amortized cost basis of the security, the guidance requires the Company to bifurcate the identified OTTI into a credit loss component and a component representing loss related to other factors. A discount rate is applied which equals the effective yield of the security. The difference between the present value of the expected flows and the amortized book value is considered a credit loss, which would be recorded through earnings as an OTTI charge. When a market price is not readily available, the market value of the security is determined using the same expected cash flows; the discount rate is a rate the Company determines from the open market and other sources as appropriate for the security. The difference between the market value and the present value of cash flows expected to be collected is recognized in accumulated other comprehensive loss on the consolidated statements of financial condition. As of September 30, 2020, the Company had no cumulative OTTI. There were no OTTI charges recognized in earnings as a result of credit losses on investments in the three and nine months ended September 30, 2020 and 2019. During the nine months ended September 30, 2020, unrealized losses were substantially higher due to market uncertainty brought about by the COVID-19 pandemic. The sudden and desperate need for liquidity from many institutional pools of capital combined with the global economic implications of the COVID-19 pandemic caused significant widening of spreads. States and Political Subdivisions. The unrealized losses presented in the table above have been caused by a widening of spreads from the time these securities were purchased. Management considers the investment rating, the state of the issuer of the security and other credit support in determining whether the security is OTTI. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at September 30, 2020 or December 31, 2019. GSE Residential CMOs. The unrealized losses presented in the table above have been caused by a widening of spreads from the time these securities were purchased. The contractual terms of these securities do not permit the issuer to settle the securities at a price less than its par value basis. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at September 30, 2020 or December 31, 2019. Non-agency CMOs . The unrealized losses presented in the table above have been caused by a widening of spreads from the time the securities were purchased. Management considers the investment rating and other credit support in determining whether a security is other-than-temporarily impaired. As of September 30, 2020, management concluded that an OTTI did not exist on any of the aforementioned securities based upon its assessment. Management also concluded that it does not intend to sell nor will it be required to sell the securities before their recovery, which may be maturity, and management expects to recover the entire amortized cost basis of these securities. Private Label Commercial CMOs and Asset-backed. The unrealized losses presented in the table above have been caused by a widening of spreads from the time the securities were purchased. Management considers the investment rating and other credit support in determining whether a security is other-than-temporarily impaired. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at September 30, 2020 or December 31, 2019. The following table summarizes the credit ratings and collateral associated with the Company's investment portfolio, excluding equity securities, at September 30, 2020: Sector Portfolio Mix Amortized Book Fair Value Credit Enhancement AAA AA A BBB NR Collateral Type Unsecured ABS 2 % $ 8,239 $ 8,291 43 % 5 % — % — % — % 95 % Unsecured Consumer Debt Student Loan ABS 2 % $ 11,868 $ 11,636 26 % — % — % — % — % 100 % Seasoned Student Loans Federal Family Education Loan ABS 38 % $ 181,639 $ 174,916 6 % 4 % 73 % 23 % — % — % Federal Family Education Loan (1) PACE Loan ABS 1 % $ 5,472 $ 5,551 6 % 100 % — % — % — % — % PACE Loans Non-Agency CMBS 15 % $ 72,372 $ 69,209 55 % 87 % — % 3 % 10 % — % Commercial Real Estate Non-Agency RMBS 4 % $ 17,071 $ 17,162 33 % 100 % — % — % — % — % Reverse Mortgages (2) Municipal - General Obligation 11 % $ 53,886 $ 58,640 3 % 85 % 12 % — % — % Municipal - Revenue 11 % $ 51,014 $ 54,067 — % 61 % 19 % — % 20 % SBA ReRemic 2 % $ 11,830 $ 11,756 — % 100 % — % — % — % SBA Guarantee (3) Agency MBS 14 % $ 64,743 $ 66,717 — % 100 % — % — % — % Residential Mortgages (3) Bank CDs — % $ 249 $ 249 — % — % — % — % 100 % FDIC Insured CD 100 % $ 478,383 $ 478,194 20 % 60 % 13 % 1 % 6 % (1) Minimum of 97% guaranteed by U.S. government (2) Reverse mortgages, expected credit enhancement is provided above (3) 100% guaranteed by U.S. government agencies Note : Ratings in table are the lowest of the six rating agencies (Standard & Poors, Moody's, Morningstar, DBRS, KBRA and Fitch). Standard & Poors rates U.S. government obligations at AA+ The following table summarizes amortized cost and fair value of investment securities by contractual maturity at September 30, 2020. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years 249 249 Due after five years through ten years 27,068 29,078 Due after ten years 77,926 83,723 CMOs and MBSs 154,185 153,088 Asset-backed 219,048 212,150 $ 478,476 $ 478,288 The following table summarizes proceeds from sales of investment securities and gross gains and gross losses for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Proceeds from sale of investment securities $ — $ 25,575 $ — $ 199,411 Gross gains — 2,328 — 4,956 Gross losses 13 — 44 225 During the three and nine months ended September 30, 2020, a loss of $13 thousand and $44 thousand, respectively, was recorded to adjust an equity security to market value, compared to net investment security gains of $2.3 million and $4.7 million, respectively, for the three and nine months ended September 30, 2019 from security sales. There were no sales of investment securities during the three and nine months ended September 30, 2020. Investment securities with a fair value of $426.1 million and $158.7 million at September 30, 2020 and December 31, 2019, respectively, were pledged to secure public funds and for other purposes as required or permitted by law. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The Company’s loan portfolio is grouped into classes to allow management to monitor the performance by the borrower and to monitor the yield on the portfolio. Consistent with ASU 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Loan Losses, the segments are further broken down into classes to allow for differing risk characteristics within a segment. The risks associated with lending activities differ among the various loan classes and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. All of these factors may adversely impact both the borrower’s ability to repay its loans and associated collateral. The Company has various types of commercial real estate loans, which have differing levels of credit risk. Owner occupied commercial real estate loans are generally dependent upon the successful operation of the borrower’s business, with the cash flows generated from the business being the primary source of repayment of the loan. If the business suffers a downturn in sales or profitability, the borrower’s ability to repay the loan could be in jeopardy. Non-owner occupied and multi-family commercial real estate loans and non-owner occupied residential loans present a different credit risk to the Company than owner occupied commercial real estate loans, as the repayment of the loan is dependent upon the borrower’s ability to generate a sufficient level of occupancy to produce rental income that exceeds debt service requirements and operating expenses. Lower occupancy or lease rates may result in a reduction in cash flows, which hinders the ability of the borrower to meet debt service requirements, and may result in lower collateral values. The Company generally recognizes that greater risk is inherent in these credit relationships as compared to owner occupied loans mentioned above. Acquisition and development loans consist of 1-4 family residential construction and commercial and land development loans. The risk of loss on these loans is largely dependent on the Company’s ability to assess the property’s value at the completion of the project, which should exceed the property’s construction costs. During the construction phase, a number of factors could potentially negatively impact the collateral value, including cost overruns, delays in completing the project, competition, and real estate market conditions which may change based on the supply of similar properties in the area. In the event the collateral value at the completion of the project is not sufficient to cover the outstanding loan balance, the Company must rely upon other repayment sources, including, if any, the guarantors of the project or other collateral securing the loan. Commercial and industrial loans include advances to local and regional businesses for general commercial purposes and include permanent and short-term working capital, machinery and equipment financing, and may be either in the form of lines of credit or term loans. Although commercial and industrial loans may be unsecured to our highest-rated borrowers, the majority of these loans are secured by the borrower’s accounts receivable, inventory and machinery and equipment. In a significant number of these loans, the collateral also includes the business real estate or the business owner’s personal real estate or assets. Commercial and industrial loans present credit exposure to the Company, as they are more susceptible to risk of loss during a downturn in the economy as borrowers may have greater difficulty in meeting their debt service requirements and the value of the collateral may decline. The Company attempts to mitigate this risk through its underwriting standards, including evaluating the creditworthiness of the borrower and, to the extent available, credit ratings on the business. Additionally, monitoring of the loans through annual renewals and meetings with the borrowers are typical. However, these procedures cannot eliminate the risk of loss associated with commercial and industrial lending. At September 30, 2020 and December 31, 2019, commercial and industrial loans include $458.1 million and $0, respectively, of loans, net of deferred fees and costs, originated through the U.S. Small Business Administration Paycheck Protection Program ("SBA PPP"). Municipal loans consist of extensions of credit to municipalities and school districts within the Company’s market area. These loans generally present a lower risk than commercial and industrial loans, as they are generally secured by the municipality’s full taxing authority, by revenue obligations, or by its ability to raise assessments on its customers for a specific utility. The Company originates loans to its retail customers, including fixed-rate and adjustable first lien mortgage loans with the underlying 1-4 family owner occupied residential property securing the loan. The Company’s risk exposure is minimized in these types of loans through the evaluation of the creditworthiness of the borrower, including credit scores and debt-to-income ratios, and underwriting standards which limit the loan-to-value ratio to generally no more than 80% upon loan origination, unless the borrower obtains private mortgage insurance. Home equity loans, including term loans and lines of credit, present a slightly higher risk to the Company than 1-4 family first liens, as these loans can be first or second liens on 1-4 family owner occupied residential property, but can have loan-to- value ratios of no greater than 90% of the value of the real estate taken as collateral. The creditworthiness of the borrower is also considered, including credit scores and debt-to-income ratios. Installment and other loans’ credit risk are mitigated through prudent underwriting standards, including evaluation of the creditworthiness of the borrower through credit scores and debt-to-income ratios and, if secured, the collateral value of the assets. These loans can be unsecured or secured by assets the value of which may depreciate quickly or may fluctuate, and may present a greater risk to the Company than 1-4 family residential loans. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted. The CARES Act established the SBA PPP. The SBA PPP is intended to provide economic relief to small businesses nationwide adversely impacted under the COVID-19 Emergency Declaration issued on March 13, 2020. The SBA PPP, which began on April 3, 2020, provides small businesses with funds to cover up to 24 weeks of payroll costs and other expenses, including benefits. It also provides for forgiveness of up to the full principal amount of qualifying loans. The Bank closed and funded almost 3,200 PPP loans for a total loan amount of $467.7 million in the nine months ended September 30, 2020. As these loans are 100% guaranteed by the SBA, there is no associated allowance for loan losses at September 30, 2020. These loans resulted in net fee income of $13.5 million to be recognized through net interest income over the life of the loans, which is between two five In an effort to assist clients which were negatively impacted by the COVID-19 pandemic, the Bank offered various mitigation options, including a loan payment deferral program. Under this program, most commercial deferrals were for a 90-day period, while most consumer deferrals were for a 180-day period. Commercial and consumer deferrals totaled $61.6 million and $16.8 million, respectively, at September 30, 2020 . In accordance with the revised Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus issued on April 7, 2020, these deferrals are exempt from TDR status as they meet the specified requirements. The following table presents the loan portfolio by segment and class, excluding residential mortgage LHFS, at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Commercial real estate: Owner occupied $ 166,623 $ 170,884 Non-owner occupied 403,138 361,050 Multi-family 110,153 106,893 Non-owner occupied residential 111,958 120,038 Acquisition and development: 1-4 family residential construction 9,627 15,865 Commercial and land development 37,850 41,538 Commercial and industrial (1) 690,330 214,554 Municipal 28,867 47,057 Residential mortgage: First lien 273,149 336,372 Home equity - term 11,108 14,030 Home equity - lines of credit 158,106 165,314 Installment and other loans 28,961 50,735 Total loans $ 2,029,870 $ 1,644,330 (1) This balance includes $458.1 million and $0 of SBA PPP loans, net of deferred fees and costs, at September 30, 2020 and December 31, 2019, respectively. In order to monitor ongoing risk associated with its loan portfolio and specific loans within the segments, management uses an internal grading system. The first several rating categories, representing the lowest risk to the Bank, are combined and given a “Pass” rating. Management generally follows regulatory definitions in assigning criticized ratings to loans, including "Special Mention," "Substandard," "Doubtful" or "Loss." The Special Mention category includes loans that have potential weaknesses that may, if not monitored or corrected, weaken the asset or inadequately protect the Bank's position at some future date. These assets pose elevated risk, but their weakness does not yet justify a more severe, or classified rating. Substandard loans are classified as they have a well-defined weakness, or weaknesses that jeopardize liquidation of the debt. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Substandard loans include loans that management has determined not to be impaired, as well as loans considered to be impaired. A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as Loss is deferred. Loss loans are considered uncollectible, as the borrowers are often in bankruptcy, have suspended debt repayments, or have ceased business operations. Once a loan is classified as Loss, there is little prospect of collecting the loan’s principal or interest and it is charged-off. The Company has a loan review policy and program which is designed to identify and monitor risk in the lending function. The Management ERM Committee, comprised of executive officers and loan department personnel, is charged with the oversight of overall credit quality and risk exposure of the Company's loan portfolio. This includes the monitoring of the lending activities of all Company personnel with respect to underwriting and processing new loans and the timely follow-up and corrective action for loans showing signs of deterioration in quality. A loan review program provides the Company with an independent review of the commercial loan portfolio on an ongoing basis. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as extended delinquencies, bankruptcy, repossession or death of the borrower occurs, which heightens awareness as to a possible credit event. Internal loan reviews are completed annually on all commercial relationships with a committed loan balance in excess of $1.0 million, which includes confirmation of risk rating by an independent credit officer. In addition, all commercial relationships greater than $500 thousand rated Substandard, Doubtful or Loss are reviewed quarterly and corresponding risk ratings are reaffirmed by the Company's Problem Loan Committee, with subsequent reporting to the Management ERM Committee and the Board of Directors. The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at September 30, 2020 and December 31, 2019: Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful PCI Loans Total September 30, 2020 Commercial real estate: Owner occupied $ 142,294 $ 8,654 $ 7,750 $ 3,341 $ — $ 4,584 $ 166,623 Non-owner occupied 347,253 55,552 — — — 333 403,138 Multi-family 88,896 20,530 653 74 — — 110,153 Non-owner occupied residential 105,159 3,678 1,455 275 — 1,391 111,958 Acquisition and development: 1-4 family residential construction 9,341 286 — — — — 9,627 Commercial and land development 35,818 662 533 837 — — 37,850 Commercial and industrial 660,538 16,724 9,439 755 — 2,874 690,330 Municipal 28,867 — — — — — 28,867 Residential mortgage: First lien 264,761 — — 2,835 — 5,553 273,149 Home equity - term 11,009 — 70 11 — 18 11,108 Home equity - lines of credit 157,206 170 34 696 — — 158,106 Installment and other loans 28,868 — — 20 — 73 28,961 $ 1,880,010 $ 106,256 $ 19,934 $ 8,844 $ — $ 14,826 $ 2,029,870 December 31, 2019 Commercial real estate: Owner occupied $ 151,161 $ 4,513 $ 3,163 $ 5,872 $ — $ 6,175 $ 170,884 Non-owner occupied 342,753 17,152 — — — 1,145 361,050 Multi-family 100,361 4,822 682 345 — 683 106,893 Non-owner occupied residential 111,697 4,534 1,115 235 — 2,457 120,038 Acquisition and development: 1-4 family residential construction 15,865 — — — — — 15,865 Commercial and land development 39,939 206 1,393 — — — 41,538 Commercial and industrial 198,951 1,133 8,899 1,763 — 3,808 214,554 Municipal 42,649 4,408 — — — — 47,057 Residential mortgage: First lien 323,040 978 — 2,590 — 9,764 336,372 Home equity - term 13,774 74 149 13 — 20 14,030 Home equity - lines of credit 164,469 74 38 733 — — 165,314 Installment and other loans 50,497 — — 85 — 153 50,735 $ 1,555,156 $ 37,894 $ 15,439 $ 11,636 $ — $ 24,205 $ 1,644,330 For commercial real estate, acquisition and development and commercial and industrial loans, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Generally, loans that are more than 90 days past due are deemed impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed to determine if the loan should be placed on nonaccrual status. Nonaccrual loans in the commercial and commercial real estate portfolios and any TDRs are, by definition, deemed to be impaired. Impairment is measured on a loan-by-loan basis for commercial, construction and restructured loans by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the underlying collateral. For loans that are deemed to be impaired for extended periods of time, periodic updates on fair values are obtained, which may include updated appraisals. Updated fair values are incorporated into the impairment analysis in the next reporting period. Loan charge-offs, which may include partial charge-offs, are taken on an impaired loan that is collateral dependent if the loan’s carrying balance exceeds its collateral’s appraised value, the loan has been identified as uncollectible, and it is deemed to be a confirmed loss. Typically, impaired loans with a charge-off or partial charge-off will continue to be considered impaired, unless the note is split into two, and management expects the performing note to continue to perform and is adequately secured. The second, or non-performing note, would be charged-off. Generally, an impaired loan with a partial charge-off may continue to have an impairment reserve on it after the partial charge-off, if factors warrant. At September 30, 2020 and December 31, 2019, nearly all of the Company’s loan impairments were measured based on the estimated fair value of the collateral securing the loan, except for TDRs. By definition, TDRs are considered impaired. All TDR impairment analyses are initially based on discounted cash flows for those loans. For real estate loans, collateral generally consists of commercial real estate, but in the case of commercial and industrial loans, it could also consist of accounts receivable, inventory, equipment or other business assets. Commercial and industrial loans may also have real estate collateral. Updated appraisals are generally required every 18 months for classified commercial loans in excess of $250 thousand. The “as is" value provided in the appraisal is often used as the fair value of the collateral in determining impairment, unless circumstances, such as subsequent improvements, approvals, or other circumstances, dictate that another value than that provided by the appraiser is more appropriate. Generally, impaired commercial loans secured by real estate, other than performing TDRs, are measured at fair value using certified real estate appraisals that had been completed within the last 18 months. Appraised values are discounted for estimated costs to sell the property and other selling considerations to arrive at the property’s fair value. In those situations in which it is determined an updated appraisal is not required for loans individually evaluated for impairment, fair values are based on either an existing appraisal or a discounted cash flow analysis as determined by management. The approaches are discussed below: • Existing appraisal – if the existing appraisal provides a strong loan-to-value ratio (generally 70% or lower) and, after consideration of market conditions and knowledge of the property and area, it is determined by the Credit Administration staff that there has not been a significant deterioration in the collateral value, the existing certified appraised value may be used. Discounts to the appraised value, as deemed appropriate for selling costs, are factored into the fair value. • Discounted cash flows – in limited cases, discounted cash flows may be used on projects in which the collateral is liquidated to reduce the borrowings outstanding, and is used to validate collateral values derived from other approaches. Collateral on certain impaired loans is not limited to real estate, and may consist of accounts receivable, inventory, equipment or other business assets. Estimated fair values are determined based on borrowers’ financial statements, inventory ledgers, accounts receivable aging or appraisals from individuals with knowledge in the business. Stated balances are generally discounted for the age of the financial information or the quality of the assets. In determining fair value, liquidation discounts are applied to this collateral based on existing loan evaluation policies. The Company distinguishes substandard loans on both an impaired and non-impaired basis, as it places less emphasis on a loan’s classification, and increased reliance on whether the loan was performing in accordance with the contractual terms. A substandard classification does not automatically meet the definition of impaired. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual extensions of credit classified as substandard. As a result, the Company’s methodology includes an evaluation of certain accruing commercial real estate, acquisition and development, and commercial and industrial loans rated substandard to be collectively evaluated for impairment. Although the Company believes these loans meet the definition of substandard, they are generally performing and management has concluded that it is likely the Company will be able to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Larger groups of smaller balance homogeneous loans are collectively evaluated for impairment. Generally, the Company does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. The following table, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at September 30, 2020 and December 31, 2019. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and any partial charge-off will be recorded when final information is received. Impaired Loans with a Specific Allowance Impaired Loans with No Specific Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) Related Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) September 30, 2020 Commercial real estate: Owner-occupied $ — $ — $ — $ 3,341 $ 4,112 Non-owner occupied — — — — 457 Multi-family — — — 74 309 Non-owner occupied residential — — — 275 396 Acquisition and development: Commercial and land development — — — 837 875 Commercial and industrial — — — 755 1,668 Residential mortgage: First lien 452 452 35 2,383 3,450 Home equity—term — — — 11 14 Home equity—lines of credit — — — 696 939 Installment and other loans — — — 20 20 $ 452 $ 452 $ 35 $ 8,392 $ 12,240 December 31, 2019 Commercial real estate: Owner-occupied $ — $ — $ — $ 5,872 $ 8,086 Multi-family — — — 345 569 Non-owner occupied residential — — — 235 422 Commercial and industrial — — — 1,763 3,361 Residential mortgage: First lien 425 425 36 2,165 3,164 Home equity—term — — — 13 15 Home equity—lines of credit — — — 733 1,077 Installment and other loans — — — 85 97 $ 425 $ 425 $ 36 $ 11,211 $ 16,791 The following table, which excludes accruing PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the three and nine months ended September 30, 2020 and 2019: 2020 2019 Average Interest Average Interest Three Months Ended September 30, Commercial real estate: Owner-occupied $ 4,424 $ — $ 2,126 $ — Non-owner occupied 102 — 150 — Multi-family 141 — 110 — Non-owner occupied residential 433 — 173 — Acquisition and development: Commercial and land development 837 — — — Commercial and industrial 1,044 — 765 — Residential mortgage: First lien 3,209 12 2,392 12 Home equity – term 12 — 12 — Home equity - lines of credit 645 — 768 — Installment and other loans 17 — 8 — $ 10,864 $ 12 $ 6,504 $ 12 Nine Months Ended September 30, Commercial real estate: Owner occupied $ 5,033 $ 1 $ 1,950 $ 1 Non-owner occupied 108 — 60 — Multi-family 259 — 118 — Non-owner occupied residential 422 — 246 — Acquisition and development: Commercial and land development 586 — — — Commercial and industrial 1,316 — 469 — Residential mortgage: First lien 3,050 36 2,574 41 Home equity - term 12 — 13 — Home equity - lines of credit 699 1 752 1 Installment and other loans 29 — 8 — $ 11,514 $ 38 $ 6,190 $ 43 The following table presents impaired loans that are TDRs, with the recorded investment at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Number of Recorded Number of Recorded Accruing: Commercial real estate: Owner occupied 1 $ 28 1 $ 30 Residential mortgage: First lien 9 908 9 931 Home equity - lines of credit 1 9 1 18 11 945 11 979 Nonaccruing: Commercial real estate: Owner occupied — — 4 1,909 Residential mortgage: First lien 5 329 5 359 5 329 9 2,268 16 $ 1,274 20 $ 3,247 There were no new TDR's for the three and nine months ended September 30, 2020 or 2019. Management further monitors the performance and credit quality of the loan portfolio by analyzing the length of time a portfolio is past due, by aggregating loans based on its delinquencies. The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at September 30, 2020 and December 31, 2019: Days Past Due Current 30-59 60-89 90+ Total Non- Total September 30, 2020 Commercial real estate: Owner occupied $ 157,456 $ 1,090 $ 180 $ — $ 1,270 $ 3,313 $ 162,039 Non-owner occupied 402,805 — — — — — 402,805 Multi-family 110,079 — — — — 74 110,153 Non-owner occupied residential 110,292 — — — — 275 110,567 Acquisition and development: 1-4 family residential construction 9,627 — — — — — 9,627 Commercial and land development 36,940 73 — — 73 837 37,850 Commercial and industrial 686,537 107 57 — 164 755 687,456 Municipal 28,867 — — — — — 28,867 Residential mortgage: First lien 264,989 646 34 — 680 1,927 267,596 Home equity - term 11,067 1 11 — 12 11 11,090 Home equity - lines of credit 157,143 276 — — 276 687 158,106 Installment and other loans 28,758 99 11 — 110 20 28,888 Subtotal 2,004,560 2,292 293 — 2,585 7,899 2,015,044 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 4,584 — — — — — 4,584 Non-owner occupied 333 — — — — — 333 Non-owner occupied residential 1,234 — — 157 157 — 1,391 Commercial and industrial 2,857 — — 17 17 — 2,874 Residential mortgage: First lien 4,868 298 40 347 685 — 5,553 Home equity - term 18 — — — — — 18 Installment and other loans 72 — 1 — 1 — 73 Subtotal 13,966 298 41 521 860 — 14,826 $ 2,018,526 $ 2,590 $ 334 $ 521 $ 3,445 $ 7,899 $ 2,029,870 Days Past Due Current 30-59 60-89 90+ Total Non- Total December 31, 2019 Commercial real estate: Owner occupied $ 158,723 $ 144 $ — $ — $ 144 $ 5,842 $ 164,709 Non-owner occupied 359,425 480 — — 480 — 359,905 Multi-family 105,865 — — — — 345 106,210 Non-owner occupied residential 116,370 841 66 69 976 235 117,581 Acquisition and development: 1-4 family residential construction 15,587 278 — — 278 — 15,865 Commercial and land development 40,403 1,135 — — 1,135 — 41,538 Commercial and industrial 208,668 315 — — 315 1,763 210,746 Municipal 47,057 — — — — — 47,057 Residential mortgage: First lien 314,473 9,092 1,234 150 10,476 1,659 326,608 Home equity - term 13,993 — 4 — 4 13 14,010 Home equity - lines of credit 163,907 417 275 — 692 715 165,314 Installment and other loans 50,224 236 37 — 273 85 50,582 Subtotal 1,594,695 12,938 1,616 219 14,773 10,657 1,620,125 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 6,015 — 129 31 160 — 6,175 Non-owner occupied 564 — — 581 581 — 1,145 Multi-family 683 — — — — — 683 Non-owner occupied residential 1,710 105 111 531 747 — 2,457 Commercial and industrial 3,792 — — 16 16 — 3,808 Residential mortgage: First lien 6,308 1,857 745 854 3,456 — 9,764 Home equity - term 16 4 — — 4 — 20 Installment and other loans 131 22 — — 22 — 153 Subtotal 19,219 1,988 985 2,013 4,986 — 24,205 $ 1,613,914 $ 14,926 $ 2,601 $ 2,232 $ 19,759 $ 10,657 $ 1,644,330 The Company maintains its ALL at a level management believes adequate for probable incurred credit losses. The ALL is established and maintained through a provision for loan losses charged to earnings. Quarterly, management assesses the adequacy of the ALL utilizing a defined methodology which considers specific credit evaluation of impaired loans as discussed above, past loan loss historical experience, and qualitative factors. Management believes its approach properly addresses relevant accounting guidance for loans individually identified as impaired and for loans collectively evaluated for impairment, and other bank regulatory guidance. In connection with its quarterly evaluation of the adequacy of the ALL, management reviews its methodology to determine if it properly addresses the current risk in the loan portfolio. For each loan class, general allowances based on quantitative factors, principally historical loss trends, are provided for loans that are collectively evaluated for impairment. An adjustment to historical loss factors may be incorporated for delinquency and other potential risk not elsewhere defined within the ALL methodology. In addition to this quantitative analysis, adjustments to the ALL requirements are allocated on loans collectively evaluated for impairment based on additional qualitative factors, including: Nature and Volume of Loans – including loan growth in the current and subsequent quarters based on the Company’s targeted growth and strategic plan, coupled with the types of loans booked based on risk management and credit culture; the number of exceptions to loan policy; and supervisory loan to value exceptions. Concentrations of Credit and Changes within Credit Concentrations – including the composition of the Company’s overall portfolio makeup and management's evaluation related to concentration risk management and the inherent risk associated with the concentrations identified. Underwriting Standards and Recovery Practices – including changes to underwriting standards and perceived impact on anticipated losses; trends in the number of exceptions to loan policy; supervisory loan to value exceptions; and administration of loan recovery practices. Delinquency Trends – including delinquency percentages noted in the portfolio relative to economic conditions; severity of the delinquencies; and whether the ratios are trending upwards or downwards. Classified Loans Trends – including internal loan ratings of the portfolio; severity of the ratings; whether the loan segment’s ratings show a more favorable or less favorable trend; and underlying market conditions and impact on the collateral values securing the loans. Experience, Ability and Depth of Management/Lending staff – including the years’ experience of senior and middle management and the lending staff; turnover of the staff; and instances of repeat criticisms of ratings. Quality of Loan Review – including the years of experience of the loan review staff; in-house versus outsourced provider of review; turnover of staff and the perceived quality of their work in relation to other external information. National and Local Economic Conditions – including trends in the consumer price index, unemployment rates, the housing price index, housing statistics compared to the prior year, bankruptcy rates, regulatory and legal environment risks and competition. During the nine months ended September 30, 2020, this factor was increased for the commercial and consumer portfolios to account for the negative economic impact of the COVID-19 pandemic. COVID-19 – during the nine months ended September 30, 2020, a qualitative allocation was implemented associated with the potential impact of the COVID-19 pandemic on the Company's commercial loan portfolio. The factor assumes downgrades of loans with identified hardships resulting from the shutdown driven by the pandemic. The following table presents the activity in the ALL for the three and nine months ended September 30, 2020 and 2019: Commercial Consumer Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total Three Months Ended September 30, 2020 Balance, beginning of period $ 9,347 $ 1,069 $ 2,916 $ 75 $ 13,407 $ 3,552 $ 386 $ 3,938 $ 172 $ 17,517 Provision for loan losses 1,520 (219) 963 (19) 2,245 (71) 18 (53) 8 2,200 Charge-offs (3) — (193) — (196) — (31) (31) — (227) Recoveries 171 — 45 — 216 6 13 19 — 235 Balance, end of period $ 11,035 $ 850 $ 3,731 $ 56 $ 15,672 $ 3,487 $ 386 $ 3,873 $ 180 $ 19,725 September 30, 2019 Balance, beginning of period $ 6,847 $ 1,008 $ 2,120 $ 94 $ 10,069 $ 3,734 $ 209 $ 3,943 $ 448 $ 14,460 Provision for loan losses 465 (188) 269 (1) 545 27 50 77 (322) 300 Charge-offs — — (50) — (50) (24) (49) (73) — (123) Recoveries 111 — 33 — 144 5 23 28 — 172 Balance, end of period $ 7,423 $ 820 $ 2,372 $ 93 $ 10,708 $ 3,742 $ 233 $ 3,975 $ 126 $ 14,809 Nine Months Ended September 30, 2020 Balance, beginning of period $ 7,634 $ 959 $ 2,356 $ 100 $ 11,049 $ 3,147 $ 319 $ 3,466 $ 140 $ 14,655 Provision for loan losses 2,780 (117) 1,875 (44) 4,494 329 162 491 40 5,025 Charge-offs (3) — (689) — (692) (109) (117) (226) — (918) Recoverie |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
LEASES | LEASES A lease provides the lessee the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has primarily entered into operating leases for branches and office space. Most of the Company's leases contain renewal options, which the Company is reasonably certain to exercise. Including renewal options, the Company's leases range from three years to 50 years. Operating lease right-of-use assets and lease liabilities are included in other assets and accrued interest and other liabilities on the Company's unaudited condensed consolidated balance sheets. The Company uses its incremental borrowing rate to determine the present value of the lease payments, as the rate implicit in the Company's leases is not readily determinable. Lease agreements that contain non-lease components are generally accounted for as a single lease component, while variable costs, such as common area maintenance expenses and property taxes, are expensed as incurred. The following table presents information related to the Company's operating leases at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Operating lease ROU assets $ 8,949 $ 9,222 Operating lease ROU liabilities 9,398 9,688 Weighted-average remaining lease term (in years) 16.8 17.6 Weighted-average discount rate 4.3 % 4.5 % The following table presents information related to the Company's operating leases for the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Cash paid for operating lease liabilities $ 210 $ 330 $ 847 $ 791 Operating lease expense 421 507 1,171 1,016 The following table presents expected future maturities of the Company's lease liabilities as of September 30, 2020: Remainder of 2020 $ 354 2021 1,208 2022 785 2023 807 2024 827 Thereafter 10,288 14,269 Less: imputed interest 4,871 Total lease liabilities $ 9,398 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents changes in goodwill at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Balance, beginning of year $ 19,925 $ 12,592 Acquired goodwill — 7,029 Adjustments to acquired goodwill (1) (1,201) 304 Balance, end of period $ 18,724 $ 19,925 (1) The Company finalized its purchase accounting adjustments associated with Hamilton as of May 1, 2020. Goodwill is not amortized but is reviewed for potential impairment on at least an annual basis, with testing between annual tests if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit. Due to the severe economic impact of COVID-19 and a resulting sustained decline in the Company's market value below book value, management performed a quantitative Step 1 impairment analysis of its goodwill to determine whether the Company's goodwill was impaired as of August 31, 2020. This analysis, which was performed in accordance with ASU 2017-04, Intangibles-Goodwill and Other , considered several factors, such as future cash flow projections and estimated market acquisition premiums in its analysis. In performing the analysis, management made several assumptions with respect to future operating performance, economic and market conditions and various others, many of which require significant judgment. The analysis performed and the related assumptions reflect the best currently available estimates and judgements regarding future performance of the Company. It was concluded that no impairment existed at August 31, 2020 as the calculated fair value of the reporting unit exceeded its book value. No changes occurred that would impact the results of that analysis through September 30, 2020. The following table presents changes in other intangible assets for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Beginning of period $ 6,160 $ 8,140 $ 7,180 $ 3,910 Acquired CDI — — — 4,550 Non-compete agreement — — — 290 Amortization Expense (357) (486) (1,224) (1,096) Impairment — — (153) — Balance, end of period $ 5,803 $ 7,654 $ 5,803 $ 7,654 During the nine months ended September 30, 2020, the Company recorded an impairment charge of $153 thousand for the full remaining balance attributable to a customer list intangible asset due to the dissolution of Wheatland Advisors, Inc. in the three months ended September 30, 2020. No impairment charges were recorded in the nine months ended September 30, 2019. The following table presents the components of other identifiable intangible assets at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Gross Amount Accumulated Gross Amount Accumulated Amortized intangible assets: Core deposit intangibles $ 8,390 $ 2,590 $ 8,390 $ 1,493 Other customer relationship intangibles 25 22 524 338 Non-compete agreement — — 290 193 Total $ 8,415 $ 2,612 $ 9,204 $ 2,024 The following table presents future estimated aggregate amortization expense for intangible assets remaining at September 30, 2020: Remainder of 2020 $ 345 2021 1,275 2022 1,105 2023 935 2024 766 Thereafter 1,377 $ 5,803 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company files income tax returns in the U.S. federal jurisdiction, the Commonwealth of Pennsylvania and the State of Maryland. The Company is no longer subject to tax examination by tax authorities for years before 2016. The following table summarizes income tax expense for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Current expense $ 2,040 $ 244 $ 2,495 $ 334 Deferred expense (803) 1,096 1,082 1,348 Income tax expense $ 1,237 $ 1,340 $ 3,577 $ 1,682 The following table summarizes deferred tax assets and liabilities at September 30, 2020 and December 31, 2019: (Dollars in thousands) September 30, December 31, Deferred tax assets: Allowance for loan losses $ 4,549 $ 3,418 Deferred compensation 507 415 Retirement and salary continuation plans 2,467 2,357 Share-based compensation 630 631 Off-balance sheet reserves 270 234 Nonaccrual loan interest 760 697 Net unrealized losses on AFS securities 40 127 Purchase accounting adjustments 2,318 4,081 Bonus accrual 471 493 Interest Rate Swaps 449 — Low-income housing credit carryforward 345 — Net operating loss carryovers 1,645 1,872 Other 724 672 Total deferred tax assets 15,175 14,997 Deferred tax liabilities: Depreciation 465 452 Mortgage servicing rights 593 694 Purchase accounting adjustments 1,280 1,599 Other 275 275 Total deferred tax liabilities 2,613 3,020 Net deferred tax asset, included in other assets $ 12,562 $ 11,977 At September 30, 2020, the Company had acquired federal and state net operating loss carryforwards of $11.1 million and $6.7 million, respectively, subject to annual loss limitation limits, that expire through 2037. A deferred tax asset is recognized for these carryforwards because the benefit is more likely than not to be realized. FASB ASC 740, Income Taxes, (“ASC 740”) clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined in ASC 740 as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 was applied to all existing tax positions upon initial adoption. There was no liability for uncertain tax positions and no known unrecognized tax benefits at September 30, 2020 or December 31, 2019. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS The Company maintains share-based compensation plans under the shareholder-approved 2011 Plan. The purpose of the share-based compensation plans is to provide officers, employees, and non-employee members of the Board of Directors of the Company with additional incentive to further the success of the Company. At September 30, 2020, 881,920 shares of the common stock of the Company were reserved to be issued and 354,729 shares were available to be issued. The 2011 Plan incentive awards may consist of grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, deferred stock units and performance shares. All employees and members of the Board of Directors of the Company and its subsidiaries, are eligible to participate in the 2011 Plan. The 2011 Plan allows for the Compensation Committee of the Board of Directors to determine the type of incentive to be awarded, its term, manner of exercise, vesting and restrictions on shares. Generally, awards are nonqualified under the IRC, unless the awards are deemed to be incentive awards to employees at the Compensation Committee’s discretion. The table below presents a summary of nonvested restricted shares activity for the nine months ended September 30, 2020: Shares Weighted Average Grant Date Fair Value Nonvested shares, beginning of year 228,758 $ 21.90 Granted 114,182 20.09 Forfeited (13,883) 21.35 Vested (77,731) 20.68 Nonvested shares, at period end 251,326 $ 21.52 The following table presents restricted shares compensation expense, with tax benefit information, and fair value of shares vested, for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Restricted share award expense $ 434 $ 470 $ 1,607 $ 1,146 Restricted share award tax benefit 91 212 337 361 Fair value of shares vested 225 2,056 1,314 2,500 The unrecognized compensation expense related to the share awards totaled $2.5 million at September 30, 2020 and $2.2 million at December 31, 2019. The unrecognized compensation expense at September 30, 2020 is expected to be recognized over a weighted-average period of 1.9 years. The following table presents a summary of outstanding stock options activity for the nine months ended September 30, 2020: Shares Weighted Average Exercise Price Outstanding, beginning of year 30,559 $ 21.56 Forfeited (1,000) 21.14 Expired (29,559) 25.76 Options outstanding and exercisable — $ 0.00 The Company maintains an employee stock purchase plan to provide its employees with an opportunity to purchase Company common stock. Eligible employees may purchase shares in an amount that does not exceed 10% of their annual salary, at the lower of 95% of the fair market value of the shares on the semi-annual offering date or related purchase date. The purchases occur in March and September of each year. The Company reserved 350,000 shares of its common stock to be issued under the employee stock purchase plan. At September 30, 2020, 160,235 shares were available to be issued. The following table presents information for the employee stock purchase plan for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Shares purchased 4,218 2,395 7,831 5,399 Weighted average price of shares purchased $ 13.08 $ 22.87 $ 14.85 $ 20.69 The Company issues either new shares or treasury shares, depending on market conditions, for award through its share-based compensation plans. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used as risk management tools by the Company to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings and are not used for trading or speculative purposes. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. At September 30, 2020, the Company had two interest rate derivatives designated as hedging instruments with an aggregate notional amount of $100.0 million. The Company had no derivative instruments at December 31, 2019. Such derivatives were used to hedge the variable cash flows associated with the Company's borrowings. At September 30, 2020, the Company had cash collateral of $2.4 million held with the counterparty for these derivatives. The Company enters into interest rate swaps that allow its commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate loan into a fixed-rate loan. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges and are marked through earnings. At September 30, 2020, the Company had three customer and three corresponding third-party broker interest rate derivatives not designated as a hedging instrument with an aggregate notional amount of $23.8 million. The Company had no such derivative instruments at December 31, 2019. As a part of its normal residential mortgage operations, the Company will enter into an interest rate lock commitment with a potential borrower. The Company enters into a corresponding commitment to an investor to sell that loan at a specific price shortly after origination. In accordance with FASB ASC 820, adjustments are recorded through earnings to account for the net change in fair value of these transactions for the held for sale pipeline. The following table summarizes the fair value of the Company's derivative instruments at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps - balance sheet hedge $ 100,000 Other liabilities $ (1,657) $ — $ — Total derivatives designated as hedging instruments $ (1,657) $ — Derivatives not designated as hedging instruments: Interest rate swap - commercial borrower $ 11,901 Other assets $ 347 $ — $ — Interest rate swap - counterparty 11,901 Other liabilities (368) — — Interest Rate lock commitments with customers 33,560 Other assets 1,143 4,408 Other assets 103 Forward sale commitment 11,699 Other assets 17 8,969 Other assets 1 Total derivatives not designated as hedging instruments $ 1,139 $ 104 The following tables summarize the effect of the Company's derivative financial instruments on OCI and net income for the three and nine months ended September 30, 2020 and 2019 : Amount of Gain Recognized in OCI on Derivative Amount of Loss Recognized in OCI on Derivative Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Derivatives in cash flow hedging relationships: Interest rate products $ 208 $ — $ (1,893) $ — Total $ 208 $ — $ (1,893) $ — Amount of Loss Reclassified from Accumulated OCI into Income Amount of Loss Reclassified from AOCI into Income Location of Loss Recognized from AOCI into Income Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Derivatives in cash flow hedging relationships: Interest rate products $ (114) $ — $ (239) $ — Interest expense Total $ (114) $ — $ (239) $ — Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Derivatives not designated as hedging instruments: Interest rate products $ (4) $ — $ (21) $ — Other operating expenses Interest rate lock commitments with customers 157 — 1,040 — Mortgage banking activities Forward sale commitment 71 — (126) — Mortgage banking activities Total $ 224 $ — $ 893 $ — The following table is a summary of interest rate swap components at September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 Weighted average pay rate 0.54 % — % Weighted average receive rate 0.80 % — % Weighted average maturity in years 5.5 — |
SHAREHOLDERS' EQUITY AND REGULA
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL | SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision's capital guidelines for U.S. Banks ("Basel III rules"), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The Company and the Bank have elected not to include net unrealized gain or loss on available for sale securities in computing regulatory capital. The consolidated asset limit on small bank holding companies is $3.0 billion and a company with assets under that limit is not subject to the FRB consolidated capital rules, but may file reports that include capital amounts and ratios. The Company has elected to file those reports. Management believes that the Company and the Bank met all capital adequacy requirements to which they are subject at September 30, 2020 and December 31, 2019. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At September 30, 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's classification. The following table presents capital amounts and ratios at September 30, 2020 and December 31, 2019: Actual For Capital Adequacy Purposes To Be Well Amount Ratio Amount Ratio Amount Ratio September 30, 2020 Total risk-based capital: Orrstown Financial Services, Inc. $ 261,779 15.0 % $ 182,912 10.5 % n/a n/a Orrstown Bank 248,781 14.3 % 182,848 10.5 % $ 174,141 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 208,970 12.0 % 148,071 8.5 % n/a n/a Orrstown Bank 227,847 13.1 % 148,019 8.5 % 139,312 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 208,970 12.0 % 121,941 7.0 % n/a n/a Orrstown Bank 227,847 13.1 % 121,898 7.0 % 113,191 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 208,970 7.8 % 107,186 4.0 % n/a n/a Orrstown Bank 227,847 8.5 % 107,216 4.0 % 134,020 5.0 % December 31, 2019 Total risk-based capital: Orrstown Financial Services, Inc. $ 244,003 14.1 % $ 182,028 10.5 % n/a n/a Orrstown Bank 231,805 13.4 % 181,948 10.5 % $ 173,284 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 196,451 11.3 % 147,356 8.5 % n/a n/a Orrstown Bank 216,100 12.5 % 147,291 8.5 % 138,627 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 196,451 11.3 % 121,352 7.0 % n/a n/a Orrstown Bank 216,100 12.5 % 121,299 7.0 % 112,635 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 196,451 8.6 % 91,782 4.0 % n/a n/a Orrstown Bank 216,100 9.4 % 91,798 4.0 % 114,747 5.0 % In September 2015, the Board of Directors of the Company authorized a share repurchase program under which the Company may repurchase up to 5% of the Company's outstanding shares of common stock, or approximately 416,000 shares, in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act of 1934, as amended. When and if appropriate, repurchases may be made in open market or privately negotiated transactions, depending on market conditions, regulatory requirements and other corporate considerations, as determined by management. Share repurchases may not occur and may be discontinued at any time. At September 30, 2020, 154,680 shares had been repurchased under the program at a total cost of $2.6 million, or $16.88 per share. On October 20, 2020, the Board declared a cash dividend of $0.17 per common share, which will be paid on November 9, 2020 to shareholders of record at November 2, 2020. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents earnings per share for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income $ 4,977 $ 6,901 $ 16,404 $ 12,690 Weighted average shares outstanding - basic 10,941 10,949 10,939 10,159 Dilutive effect of share-based compensation 84 145 88 159 Weighted average shares outstanding - diluted 11,025 11,094 11,027 10,318 Per share information: Basic earnings per share $ 0.45 $ 0.63 $ 1.50 $ 1.25 Diluted earnings per share 0.45 0.62 1.49 1.23 |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table presents these contractual, or notional, amounts: Contractual or Notional Amount September 30, 2020 December 31, 2019 Commitments to fund: Home equity lines of credit $ 218,961 $ 205,502 1-4 family residential construction loans 23,546 19,812 Commercial real estate, construction and land development loans 24,738 19,018 Commercial, industrial and other loans 245,722 222,288 Standby letters of credit 16,376 10,588 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral varies but may include accounts receivable, inventory, equipment, residential real estate, and income-producing commercial properties. Standby letters of credit and financial guarantees written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are: Level 1 – quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access at the measurement date. Level 2 – significant other observable inputs other than Level 1 prices such as prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – at least one significant unobservable input that reflects a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company used the following methods and significant assumptions to estimate fair value for instruments measured on a recurring basis: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, securities are classified within Level 2 and fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flow. Level 2 securities include U.S. agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. All of the Company’s securities are classified as available for sale. The Company had no liabilities measured at fair value on a recurring basis at September 30, 2020 and December 31, 2019. The following table summarizes assets measured at fair value on a recurring basis at September 30, 2020 and December 31, 2019: Level 1 Level 2 Level 3 Total Fair September 30, 2020 Investment securities: States and political subdivisions $ — $ 112,707 $ — $ 112,707 GSE residential MBSs — 4,578 — 4,578 GSE residential CMOs — 62,139 — 62,139 Nonagency CMOs — — 17,162 17,162 Private label commercial CMOs — 62,479 6,730 69,209 Asset-backed — 212,150 — 212,150 Other 343 — — 343 Loans held for sale — 12,804 — 12,804 Interest rate swaps — 339 — 339 Interest rate lock commitments on residential mortgages — — 1,143 1,143 Totals $ 343 $ 467,196 $ 25,035 $ 492,574 December 31, 2019 Investment securities: States and political subdivisions $ — $ 87,863 $ — $ 87,863 GSE residential CMOs — 68,154 — 68,154 Nonagency CMOs — — 17,087 17,087 Private label commercial CMOs — 79,437 7,192 86,629 Asset-backed — 230,515 — 230,515 Other 637 — — 637 Loans held for sale — 9,364 — 9,364 Interest rate lock commitments on residential mortgages — — 103 103 Totals $ 637 $ 475,333 $ 24,382 $ 500,352 The Company has CMOs measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at September 30, 2020 and December 31, 2019. The Level 3 valuation is based on a non-executable broker quote, which is considered a significant unobservable input. Such quotes are updated as available and may remain constant for a period of time for certain broker-quoted securities that do not move with the market or that are not interest rate sensitive as a result of their structure or overall attributes. Effective October 1, 2019, the Company’s residential mortgage loans held for sale were recorded at fair value utilizing Level 2 measurements. This fair value measurement is determined based upon third party quotes obtained on similar loans. For loans held for sale for which the fair value option has been elected, the aggregate fair value exceeded the aggregate principal balance by $424 thousand as of September 30, 2020. The determination of the fair value of interest rate lock commitments on residential mortgages is based on agreed upon pricing with the respective investor on each loan and includes a pull through percentage. The pull through percentage represents an estimate of loans in the pipeline to be delivered to an investor versus the total loans committed for delivery. Significant changes in this input could result in a significantly higher or lower fair value measurement. As the pull through percentage is a significant unobservable input, this is deemed a Level 3 valuation input. The average pull through percentage, which is based upon historical experience, was 89% as of September 30, 2020. An increase or decrease of 5% in the pull through assumption would result in a positive or negative change of $62 thousand in the fair value of interest rate lock commitments at September 30, 2020. The following provides details of the Level 3 fair value measurement activity for the periods ended September 30, 2020 and 2019: CMOs: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance, beginning of period $ 23,834 $ — $ 24,279 $ — Unrealized gain (loss) included in OCI 200 — (229) — Principal payments and other (142) — (158) — Balance, end of period $ 23,892 $ — $ 23,892 $ — Interest rate lock commitments on residential mortgages: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance, beginning of period $ 986 $ — $ 103 $ — Total gains Included in earnings 157 — 1,040 — Balance, end of period $ 1,143 $ — $ 1,143 $ — Certain financial assets are measured at fair value on a nonrecurring basis. Adjustments to the fair value of these assets usually results from the application of lower of cost or market accounting or write-downs of individual assets. The Company used the following methods and significant assumptions to estimate fair value for these financial assets. Impaired Loans Loans are designated as impaired when, in the judgment of management and based on current information and events, it is probable that all amounts due, according to the contractual terms of the loan agreement, will not be collected. The measurement of loss associated with impaired loans for all loan classes can be based on either the observable market price of the loan, the fair value of the collateral, or discounted cash flows using a market rate of interest for performing TDRs. For collateral-dependent loans, fair value is measured based on the value of the collateral securing the loan, less estimated costs to sell. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The value of the real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral is a house or building in the process of construction, or if management adjusts the appraisal value, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal, if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports (Level 3). Impaired loans with an allocation to the ALL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the unaudited condensed consolidated statements of income. Any changes in the fair value of impaired loans still held were not material for the three and nine months ended September 30, 2020 and 2019: Foreclosed Real Estate OREO property acquired through foreclosure is initially recorded at the fair value of the property at the transfer date less estimated selling cost. Subsequently, OREO is carried at the lower of its carrying value or the fair value less estimated selling cost. Fair value is usually determined based upon an independent third-party appraisal of the property or occasionally upon a recent sales offer. There were no charges recorded to the value of OREO at the lower of cost or fair value on properties held during the three and nine months ended September 30, 2020 and 2019. There were no changes in the fair value of OREO for properties still held at September 30, 2020 that were charged to real estate expenses for the three and nine months ended September 30, 2020 and 2019. Mortgage Servicing Rights The MSR fair value is estimated to be equal to its carrying value, unless the quarterly valuation model calculates the present value of the estimated net servicing income is less than its carrying value, in which case an impairment charge is taken. At September 30, 2020 and December 31, 2019, an impairment reserve of $1.1 million and $70 thousand, respectively, existed on the mortgage servicing right portfolio. For the three months ended September 30, 2020 and 2019, impairment charges of $166 thousand and $221 thousand were included, respectively, in mortgage banking activities on the unaudited condensed consolidated statements of income. For the nine months ended September 30, 2020 and 2019, impairment charges of $986 thousand and $240 thousand were included, respectively, in mortgage banking activities on the unaudited condensed consolidated statements of income. The impairment charges resulted from rapidly declining market rates caused by the COVID-19 pandemic. The following table summarizes assets measured at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019: Level 1 Level 2 Level 3 Total September 30, 2020 Impaired Loans Commercial real estate: Owner occupied $ — $ — $ 875 $ 875 Multi-family — — 74 74 Non-owner occupied residential — — 39 39 Commercial and industrial — — 195 195 Residential mortgage: First lien — — 684 684 Home equity - lines of credit — — 174 174 Total impaired loans $ — $ — $ 2,041 $ 2,041 Mortgage servicing rights $ — $ — $ 2,661 $ 2,661 December 31, 2019 Impaired Loans Commercial real estate: Owner occupied $ — $ — $ 938 $ 938 Multi-family — — 96 96 Non-owner occupied residential — — 103 103 Commercial and industrial — — 11 11 Residential mortgage: First lien — — 641 641 Home equity - lines of credit — — 400 400 Installment and other loans — — 7 7 Total impaired loans $ — $ — $ 2,196 $ 2,196 Mortgage servicing rights $ — $ — $ 3,119 $ 3,119 The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Fair Value Valuation Unobservable Input Range September 30, 2020 Impaired loans $ 2,041 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 0% - 25% discount - Management adjustments for liquidation expenses 6%- 19% discount Mortgage servicing rights $ 2,661 Discounted cash flows Weighted average CPR 16.96% - Weighted average discount rate 9.57% December 31, 2019 Impaired loans $ 2,196 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 0% - 20% discount - Management adjustments for liquidation expenses 6% - 33% discount Mortgage servicing rights $ 3,119 Discounted cash flows Weighted average CPR 11.63% - Weighted average discount rate 9.54% Fair values of financial instruments The following table presents carrying amounts and estimated fair values of the Company’s financial instruments at September 30, 2020 and December 31, 2019: Carrying Fair Value Level 1 Level 2 Level 3 September 30, 2020 Financial Assets Cash and due from banks $ 26,854 $ 26,854 $ 26,854 $ — $ — Interest-bearing deposits with banks 60,453 60,453 60,453 — — Restricted investments in bank stocks 12,646 n/a n/a n/a n/a Investment securities 478,288 478,288 — 454,396 23,892 Loans held for sale 12,804 12,804 — 12,804 — Loans, net of allowance for loan losses 2,010,145 2,003,349 — — 2,003,349 Interest rate lock commitments on residential mortgages 1,143 1,143 — — 1,143 Interest rate swaps 339 339 — 339 — Accrued interest receivable 8,812 8,812 — 1,810 7,002 Financial Liabilities Deposits 2,279,483 2,282,669 — 2,282,669 — Securities sold under agreements to repurchase 17,445 17,445 — 17,445 — FHLB advances and other 183,373 183,650 — 183,650 — Subordinated notes 31,889 32,009 — 32,009 — Interest rate swaps 2,014 2,014 — 2,014 — Accrued interest payable 819 819 — 819 — December 31, 2019 Financial Assets Cash and due from banks $ 25,969 $ 25,969 $ 25,969 $ — $ — Interest-bearing deposits with banks 30,493 30,493 30,493 — — Restricted investments in bank stocks 16,184 n/a n/a n/a n/a Investment securities 490,386 490,386 — 466,107 24,279 Loans held for sale 9,364 9,364 — 9,364 — Loans, net of allowance for loan losses 1,629,675 1,652,788 — — 1,652,788 Interest rate lock commitments on residential mortgages 103 103 — — 103 Accrued interest receivable 6,040 6,040 — 1,863 4,177 Financial Liabilities Deposits 1,875,522 1,876,555 — 1,876,555 — Securities sold under agreements to repurchase 8,269 8,269 — 8,269 — FHLB advances and other 209,667 210,005 — 210,005 — Subordinated notes 31,847 33,953 — 33,953 — Accrued interest payable 879 879 — 879 — The methods used to estimate the fair value of financial instruments at September 30, 2020 did not necessarily represent an exit price. In accordance with the Company's adoption of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, the methods utilized to measure the fair value of financial instruments at September 30, 2020 represents an approximation of exit price; however, an actual exit price may differ. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES The nature of the Company’s business generates a certain amount of litigation involving matters arising out of the ordinary course of business. Except as described below, in the opinion of management, there are no legal proceedings that might have a material effect on the results of operations, liquidity, or the financial position of the Company at this time. On March 5, 2019, Paul Parshall, a purported individual stockholder of Hamilton, filed, on behalf of himself and all of Hamilton’s stockholders other than the named defendants and their affiliates (the “Purported Class”), a derivative and putative class action complaint in the Circuit Court for Baltimore City, Maryland, captioned Paul Parshall v. Carol Coughlin et. al., naming each Hamilton director, Orrstown, and Hamilton as defendants (the “Action”). The Action alleged, among other things, that Hamilton’s directors breached their fiduciary duties to the Purported Class in connection with the merger, and that the Proxy Statement/Prospectus omitted certain material information regarding the merger. Orrstown was alleged to have aided and abetted the Hamilton directors’ alleged breaches of their fiduciary duties. The Action sought, among other remedies, to enjoin the merger or, in the event the merger was completed, rescission of the merger or rescissory damages; unspecified damages; and costs of the lawsuit, including attorneys’ and experts’ fees. A settlement was reached on the Action in March 2020 which resulted in a payment by the Company of $135 thousand in mootness fees to the defendants in April 2020. On May 25, 2012, SEPTA filed a putative class action complaint in the U.S. District Court for the Middle District of Pennsylvania against the Company, the Bank and certain current and former directors and officers (collectively, the “Orrstown Defendants”). The complaint alleged, among other things, that (i) in connection with the Company’s Registration Statement on Form S-3 dated February 23, 2010 and its Prospectus Supplement dated March 23, 2010, and (ii) during the purported class period of March 24, 2010 through October 27, 2011, the Company issued materially false and misleading statements regarding the Company’s lending practices and financial results, including misleading statements concerning the stringent nature of the Bank’s credit practices and underwriting standards, the quality of its loan portfolio, and the intended use of the proceeds from the Company’s March 2010 public offering of common stock. The complaint asserted claims under Sections 11, 12(a) and 15 of the Securities Act of 1933, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and sought class certification, unspecified money damages, interest, costs, fees and equitable or injunctive relief. Under the Private Securities Litigation Reform Act of 1995 (“PSLRA”), the Court appointed SEPTA Lead Plaintiff on August 20, 2012. On March 4, 2013, SEPTA filed an amended complaint. The amended complaint expanded the list of defendants in the action to include the Company’s former independent registered public accounting firm, Smith Elliott Kearns & Company, LLC (“SEK”), and the underwriters of the Company’s March 2010 public offering of common stock. In addition, among other things, the amended complaint extended the purported 1934 Exchange Act class period from March 15, 2010 through April 5, 2012. On June 22, 2015, in a 96-page Memorandum, the Court dismissed without prejudice SEPTA’s amended complaint against all defendants, finding that SEPTA failed to state a claim under either the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. On February 8, 2016, the Court granted SEPTA’s motion for leave to amend again and SEPTA filed its second amended complaint that same day. On December 7, 2016, the Court issued an Order and Memorandum granting in part and denying in part defendants’ motions to dismiss SEPTA’s second amended complaint. The Court granted the motions to dismiss the Securities Act claims against all defendants, and granted the motions to dismiss the Exchange Act Section 10(b) and Rule 10b-5 claims against all defendants except Orrstown Financial Services, Inc., Orrstown Bank, Thomas R. Quinn, Jr., Bradley S. Everly, and Jeffrey W. Embly. The Court also denied the motions to dismiss the Exchange Act Section 20(a) claims against Quinn, Everly, and Embly. On December 15, 2017, the Orrstown Defendants and SEPTA exchanged expert reports in opposition to and in support of class certification, respectively. On January 15, 2018, the parties exchanged expert rebuttal reports. SEPTA has not yet filed a motion for class certification. On August 9, 2018, SEPTA filed a motion to compel the production of Confidential Supervisory Information (CSI) of non-parties the Board of Governors of the Federal Reserve System (FRB) and the Pennsylvania Department of Banking and Securities, in the possession of Orrstown and third parties. On August 30, 2018, the FRB filed an unopposed motion to intervene in the Action for the purpose of opposing SEPTA’s motion to compel. On February 12, 2019, the Court denied SEPTA’s motion to compel the production of CSI on the ground that SEPTA had failed to exhaust its administrative remedies. On April 11, 2019, SEPTA filed a motion for leave to file a third amended complaint. The proposed third amended complaint seeks to reassert the Securities Act claims that the Court dismissed as to all defendants on December 7, 2016, when the Court granted in part and denied in part defendants’ motions to dismiss SEPTA’s second amended complaint. The proposed third amended complaint also seeks to reassert the Exchange Act claims against those defendants that the Court dismissed from the case on December 7, 2016. On June 13, 2019, Orrstown filed a motion for protective order to stay discovery pending resolution of SEPTA’s motion for leave to file a third amended complaint. On July 17, 2019, the Court entered an Order partially granting Orrstown’s motion for protective order, ruling that all deposition discovery in the case was stayed pending a decision on SEPTA’s motion for leave to file a third amended complaint. Party and non-party document discovery in the case has largely been completed. On February 14, 2020, the Court issued an Order and Memorandum granting SEPTA’s motion for leave to file a third amended complaint. The third amended complaint is now the operative complaint. It reinstates the Orrstown Defendants, as well as SEK and the underwriter defendants, previously dismissed from the case on December 7, 2016. The third amended complaint also revives the previously-dismissed 1933 Securities Act claim against the Orrstown Defendants, SEK, and the underwriter defendants. Defendants filed their motions to dismiss the third amended complaint on April 24, 2020. SEPTA’s opposition was filed on July 8, 2020, and Orrstown’s reply brief was filed on August 12, 2020. The motions to dismiss the third amended complaint are currently pending. Additionally, on February 24, 2020, the Orrstown Defendants, and the underwriter defendants and SEK, separately filed motions under 28 U.S.C. § 1292(b) asking the District Court to certify its February 14, 2020 Order granting leave to file the third amended complaint for interlocutory appeal to the Third Circuit Court of Appeals. The District Court granted those motions on July 17, 2020, and defendants filed their Petition for Permission to Appeal with the Third Circuit on July 27, 2020. The Third Circuit granted permission to appeal the Order pursuant to 28 U.S.C. § 1292(b) on August 13, 2020. Defendants filed their joint Opening Brief in the Third Circuit on November 2, 2020, asking the Court to reverse the district court’s Order. SEPTA’s brief is due December 2, and defendants’ reply brief must be filed by December 23, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations – Orrstown Financial Services, Inc. is a financial holding company that operates Orrstown Bank, a commercial bank with banking and financial advisory offices in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania, and in Anne Arundel, Baltimore, Howard and Washington Counties, Maryland, as well as Baltimore City, Maryland. The Company operates in the community banking segment and engages in lending activities, including commercial, residential, commercial mortgages, construction, municipal, and various forms of consumer lending, and deposit services, including checking, savings, time, and money market deposits. The Company also provides fiduciary services, investment advisory, insurance and brokerage services. Effective July 31, 2020, Wheatland Advisors, Inc., a registered investment advisor non-bank subsidiary, headquartered in Lancaster County, Pennsylvania was discontinued. The Company and the Bank are subject to regulation by certain federal and state agencies and undergo periodic examinations by such regulatory authorities. |
Basis of Presentation | Basis of Presentation – The accompanying unaudited condensed consolidated financial statements include the accounts of Orrstown Financial Services, Inc. and its wholly owned subsidiary, the Bank. The Company has prepared these unaudited condensed consolidated financial statements in accordance with GAAP for interim financial information, SEC rules that permit reduced disclosure for interim periods, and Article 10 of Regulation S-X. In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited condensed consolidated financial statements. The December 31, 2019 consolidated balance sheet information contained in this Quarterly Report on Form 10-Q was derived from the Company's 2019 audited consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. All significant intercompany transactions and accounts have been eliminated. Certain reclassifications may have been made to prior year amounts to conform with current year classifications. The Company's management has evaluated all activity of the Company and concluded that subsequent events are properly reflected in the Company's unaudited condensed consolidated financial statements and notes as required by GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The effects of the COVID-19 pandemic may negatively impact material estimates. Material estimates that are particularly susceptible to significant change include the determination of the ALL and those used in valuation methodologies in areas with no observable market, such as loans, deposits, borrowings, goodwill, core deposit and other intangible assets, mortgage servicing rights, other assets and liabilities obtained or assumed in business combinations. |
Derivatives | Derivatives - FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company's objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. Changes to the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged transaction affects earnings. During the nine months ended September 30, 2020, such derivatives were used to hedge the variable cash flows associated with overnight borrowings. |
Leases | Leases - The Company evaluates its contracts at inception to determine if an arrangement either is a lease or contains one. Operating lease ROU assets are included in other assets and operating lease liabilities in accrued interest payable and other liabilities in the unaudited condensed consolidated balance sheets. The Company had no finance leases at September 30, 2020. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company's leases do not provide an implicit rate, so the Company's incremental borrowing rate is used, which approximates its fully collateralized borrowing rate, based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is reevaluated upon lease modification. The operating lease ROU asset also includes any initial direct costs and prepaid lease payments made less any lease incentives. In calculating the present value of lease payments, the Company may include options to extend the lease when it is reasonably certain that it will exercise that option. In accordance with ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), the Company keeps leases with an initial term of 12 months or less off of the balance sheet. The Company recognizes these lease payments in the unaudited condensed consolidated statements of income on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components and has elected the practical expedient to account for them as a single lease component. ASU 2016-02 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ( "ASU 2016-13" ). The amendments in this update require an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the amendments in this update amend the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For certain public companies, this update was effective for interim and annual periods beginning after December 15, 2019. The Company delayed the adoption of ASU 2016-13 as noted below. ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates ("ASU 2019-10"), extended the implementation deadline of ASU 2016-13 for smaller reporting and other companies until the fiscal year and interim periods beginning after December 15, 2022. The Company meets the requirements to be considered a smaller reporting company under SEC Regulation S-K and SEC Rule 405, and did not adopt ASU 2016-13 on January 1, 2020. The Company is evaluating the impact of the delay for adoption of ASU 2016-13, and is working with a third-party vendor solution to assist with the application of ASU 2016-13 and finalizing the loss estimation models to be used. Once management determines which methods will be utilized, a third party will be contracted to perform a model validation prior to adoption. While the Company anticipates the allowance for loan losses will increase under its current assumptions, it expects the impact of adopting ASU 2016-13 will be influenced by the composition, characteristics and quality of its loan and securities portfolios, as well as general economic conditions and forecasts at the adoption date. The other provisions of ASU 2019-10 were not applicable to the Company. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The optional expedients apply consistently to all contracts or transactions within the scope of this topic, while the optional expedients for hedging relationships can be elected on an individual basis. The Company has formed a cross-functional working group to lead the transition from LIBOR to a planned adoption of an alternate index. The Company has not yet determined what index will replace LIBOR in its loan agreements. The Company is in the process of implementing fallback language for loans that will mature after 2021. The Company expects to adopt the LIBOR transition relief allowed under this standard, and is currently evaluating the potential impact of this guidance on its financial statements. |
MERGERS AND ACQUISITIONS (Table
MERGERS AND ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of Consideration Paid and Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Hamilton and the estimated fair values of the assets acquired and liabilities assumed recognized at the acquisition date: Fair value of consideration transferred: Cash $ 14,197 Common stock issued 36,622 Total consideration transferred $ 50,819 Estimated fair values of assets acquired and liabilities assumed: Cash and cash equivalents $ 43,140 Securities available for sale 60,882 Restricted investments in bank stocks 2,658 Loans 347,143 Premises and equipment 3,749 Core deposit intangible 4,550 Goodwill 6,132 Cash surrender value of life insurance 17,948 Deferred tax asset, net 7,257 ROU lease asset 2,793 Other assets 3,925 Total assets acquired 500,177 Deposits (388,246) Borrowings (51,393) Other liabilities (9,719) Total liabilities assumed $ (449,358) |
Schedule of Performing and PCI Loans Acquired, by Loan Class | The following table presents performing and PCI loans acquired, by loan class, at May 1, 2019: Performing PCI Total Commercial real estate: Owner-occupied $ 42,148 $ 5,894 $ 48,042 Non-owner occupied 45,401 770 46,171 Multi-family 10,773 — 10,773 Acquisition and development: 1-4 family residential construction 7,450 — 7,450 Commercial and land development 4,528 — 4,528 Commercial and industrial 32,316 1,914 34,230 Residential mortgage: First lien 152,657 10,494 163,151 Home-equity - term 4,478 1 4,479 Home equity - lines of credit 13,657 — 13,657 Installment and other loans 14,467 195 14,662 Total loans acquired $ 327,875 $ 19,268 $ 347,143 |
Schedule of Fair Value Adjustments Made to Amortized Costs Basis of Loans Acquired | The following table presents the fair value adjustments made to the amortized cost basis of loans acquired at May 1, 2019: Gross amortized cost basis at acquisition $ 362,125 Market rate adjustment (5,309) Credit fair value adjustment on non-credit impaired loans (3,947) Credit fair value adjustment on PCI loans (5,726) Estimated fair value of acquired loans $ 347,143 |
Schedule of Information About Acquired PCI Loans | The following table provides information about acquired PCI loans at May 1, 2019: Contractually required principal and interest at acquisition $ 31,599 Nonaccretable difference (8,834) Expected cash flows at acquisition 22,765 Accretable yield (3,497) Estimated fair value of acquired PCI loans $ 19,268 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Values of AFS Securities | At September 30, 2020 and December 31, 2019, all investment securities were classified as AFS. The following table summarizes amortized cost and fair value of investment securities, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI, at September 30, 2020 and December 31, 2019: Amortized Cost Gross Unrealized Gross Unrealized Fair Value September 30, 2020 States and political subdivisions $ 104,900 $ 8,042 $ 235 $ 112,707 GSE residential MBSs 4,488 90 — 4,578 GSE residential CMOs 60,254 2,682 797 62,139 Non-agency CMOs 17,071 91 — 17,162 Private label commercial CMOs 72,372 23 3,186 69,209 Asset-backed 219,048 148 7,046 212,150 Other 343 — — 343 Totals $ 478,476 $ 11,076 $ 11,264 $ 478,288 December 31, 2019 States and political subdivisions $ 83,607 $ 4,288 $ 32 $ 87,863 GSE residential CMOs 67,928 1,000 774 68,154 Non-agency CMOs 17,210 — 123 17,087 Private label commercial CMOs 86,704 156 231 86,629 Asset-backed 235,406 138 5,029 230,515 Other 637 — — 637 Totals $ 491,492 $ 5,582 $ 6,189 $ 490,885 |
Summary of AFS Securities with Unrealized Losses | The following table summarizes investment securities with unrealized losses at September 30, 2020 and December 31, 2019, aggregated by major security type and the length of time in a continuous unrealized loss position. Less Than 12 Months 12 Months or More Total # of Securities Fair Value Unrealized # of Securities Fair Value Unrealized # of Securities Fair Value Unrealized September 30, 2020 States and political subdivisions 1 $ 9,975 $ 235 — $ — $ — 1 $ 9,975 $ 235 GSE residential CMOs 3 25,296 797 — — — 3 25,296 797 Private label commercial CMOs 4 24,768 1,285 9 38,469 1,901 13 63,237 3,186 Asset-backed 6 45,289 419 13 158,129 6,627 19 203,418 7,046 Totals 14 $ 105,328 $ 2,736 22 $ 196,598 $ 8,528 36 $ 301,926 $ 11,264 December 31, 2019 States and political subdivisions 1 $ 6,173 $ 32 — $ — $ — 1 $ 6,173 $ 32 GSE residential CMOs 5 37,158 309 1 11,602 465 6 48,760 774 Non-agency CMOs 1 17,087 123 — — — 1 17,087 123 Private label commercial CMOs 6 26,079 67 8 39,726 164 14 65,805 231 Asset-backed 9 92,189 1,145 9 121,399 3,884 18 213,588 5,029 Totals 22 $ 178,686 $ 1,676 18 $ 172,727 $ 4,513 40 $ 351,413 $ 6,189 |
Summarized Credit Ratings and Collateral Associated with the Investment Portfolio | The following table summarizes the credit ratings and collateral associated with the Company's investment portfolio, excluding equity securities, at September 30, 2020: Sector Portfolio Mix Amortized Book Fair Value Credit Enhancement AAA AA A BBB NR Collateral Type Unsecured ABS 2 % $ 8,239 $ 8,291 43 % 5 % — % — % — % 95 % Unsecured Consumer Debt Student Loan ABS 2 % $ 11,868 $ 11,636 26 % — % — % — % — % 100 % Seasoned Student Loans Federal Family Education Loan ABS 38 % $ 181,639 $ 174,916 6 % 4 % 73 % 23 % — % — % Federal Family Education Loan (1) PACE Loan ABS 1 % $ 5,472 $ 5,551 6 % 100 % — % — % — % — % PACE Loans Non-Agency CMBS 15 % $ 72,372 $ 69,209 55 % 87 % — % 3 % 10 % — % Commercial Real Estate Non-Agency RMBS 4 % $ 17,071 $ 17,162 33 % 100 % — % — % — % — % Reverse Mortgages (2) Municipal - General Obligation 11 % $ 53,886 $ 58,640 3 % 85 % 12 % — % — % Municipal - Revenue 11 % $ 51,014 $ 54,067 — % 61 % 19 % — % 20 % SBA ReRemic 2 % $ 11,830 $ 11,756 — % 100 % — % — % — % SBA Guarantee (3) Agency MBS 14 % $ 64,743 $ 66,717 — % 100 % — % — % — % Residential Mortgages (3) Bank CDs — % $ 249 $ 249 — % — % — % — % 100 % FDIC Insured CD 100 % $ 478,383 $ 478,194 20 % 60 % 13 % 1 % 6 % (1) Minimum of 97% guaranteed by U.S. government (2) Reverse mortgages, expected credit enhancement is provided above (3) 100% guaranteed by U.S. government agencies Note : Ratings in table are the lowest of the six rating agencies (Standard & Poors, Moody's, Morningstar, DBRS, KBRA and Fitch). Standard & Poors rates U.S. government obligations at AA+ |
Schedule of Amortized Cost and Fair Values of AFS Securities by Contractual Maturity | The following table summarizes amortized cost and fair value of investment securities by contractual maturity at September 30, 2020. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years 249 249 Due after five years through ten years 27,068 29,078 Due after ten years 77,926 83,723 CMOs and MBSs 154,185 153,088 Asset-backed 219,048 212,150 $ 478,476 $ 478,288 |
Proceeds From Sale of AFS Securities and Gross Gains and Gross Losses | The following table summarizes proceeds from sales of investment securities and gross gains and gross losses for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Proceeds from sale of investment securities $ — $ 25,575 $ — $ 199,411 Gross gains — 2,328 — 4,956 Gross losses 13 — 44 225 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes | The following table presents the loan portfolio by segment and class, excluding residential mortgage LHFS, at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Commercial real estate: Owner occupied $ 166,623 $ 170,884 Non-owner occupied 403,138 361,050 Multi-family 110,153 106,893 Non-owner occupied residential 111,958 120,038 Acquisition and development: 1-4 family residential construction 9,627 15,865 Commercial and land development 37,850 41,538 Commercial and industrial (1) 690,330 214,554 Municipal 28,867 47,057 Residential mortgage: First lien 273,149 336,372 Home equity - term 11,108 14,030 Home equity - lines of credit 158,106 165,314 Installment and other loans 28,961 50,735 Total loans $ 2,029,870 $ 1,644,330 (1) This balance includes $458.1 million and $0 of SBA PPP loans, net of deferred fees and costs, at September 30, 2020 and December 31, 2019, respectively. |
Loan Portfolio Ratings Based on Internal Risk Rating System | The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at September 30, 2020 and December 31, 2019: Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful PCI Loans Total September 30, 2020 Commercial real estate: Owner occupied $ 142,294 $ 8,654 $ 7,750 $ 3,341 $ — $ 4,584 $ 166,623 Non-owner occupied 347,253 55,552 — — — 333 403,138 Multi-family 88,896 20,530 653 74 — — 110,153 Non-owner occupied residential 105,159 3,678 1,455 275 — 1,391 111,958 Acquisition and development: 1-4 family residential construction 9,341 286 — — — — 9,627 Commercial and land development 35,818 662 533 837 — — 37,850 Commercial and industrial 660,538 16,724 9,439 755 — 2,874 690,330 Municipal 28,867 — — — — — 28,867 Residential mortgage: First lien 264,761 — — 2,835 — 5,553 273,149 Home equity - term 11,009 — 70 11 — 18 11,108 Home equity - lines of credit 157,206 170 34 696 — — 158,106 Installment and other loans 28,868 — — 20 — 73 28,961 $ 1,880,010 $ 106,256 $ 19,934 $ 8,844 $ — $ 14,826 $ 2,029,870 December 31, 2019 Commercial real estate: Owner occupied $ 151,161 $ 4,513 $ 3,163 $ 5,872 $ — $ 6,175 $ 170,884 Non-owner occupied 342,753 17,152 — — — 1,145 361,050 Multi-family 100,361 4,822 682 345 — 683 106,893 Non-owner occupied residential 111,697 4,534 1,115 235 — 2,457 120,038 Acquisition and development: 1-4 family residential construction 15,865 — — — — — 15,865 Commercial and land development 39,939 206 1,393 — — — 41,538 Commercial and industrial 198,951 1,133 8,899 1,763 — 3,808 214,554 Municipal 42,649 4,408 — — — — 47,057 Residential mortgage: First lien 323,040 978 — 2,590 — 9,764 336,372 Home equity - term 13,774 74 149 13 — 20 14,030 Home equity - lines of credit 164,469 74 38 733 — — 165,314 Installment and other loans 50,497 — — 85 — 153 50,735 $ 1,555,156 $ 37,894 $ 15,439 $ 11,636 $ — $ 24,205 $ 1,644,330 |
Impaired Loans by Segment and Class | The following table, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at September 30, 2020 and December 31, 2019. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and any partial charge-off will be recorded when final information is received. Impaired Loans with a Specific Allowance Impaired Loans with No Specific Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) Related Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) September 30, 2020 Commercial real estate: Owner-occupied $ — $ — $ — $ 3,341 $ 4,112 Non-owner occupied — — — — 457 Multi-family — — — 74 309 Non-owner occupied residential — — — 275 396 Acquisition and development: Commercial and land development — — — 837 875 Commercial and industrial — — — 755 1,668 Residential mortgage: First lien 452 452 35 2,383 3,450 Home equity—term — — — 11 14 Home equity—lines of credit — — — 696 939 Installment and other loans — — — 20 20 $ 452 $ 452 $ 35 $ 8,392 $ 12,240 December 31, 2019 Commercial real estate: Owner-occupied $ — $ — $ — $ 5,872 $ 8,086 Multi-family — — — 345 569 Non-owner occupied residential — — — 235 422 Commercial and industrial — — — 1,763 3,361 Residential mortgage: First lien 425 425 36 2,165 3,164 Home equity—term — — — 13 15 Home equity—lines of credit — — — 733 1,077 Installment and other loans — — — 85 97 $ 425 $ 425 $ 36 $ 11,211 $ 16,791 |
Average Recorded Investment in Impaired Loans and Related Interest Income | The following table, which excludes accruing PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the three and nine months ended September 30, 2020 and 2019: 2020 2019 Average Interest Average Interest Three Months Ended September 30, Commercial real estate: Owner-occupied $ 4,424 $ — $ 2,126 $ — Non-owner occupied 102 — 150 — Multi-family 141 — 110 — Non-owner occupied residential 433 — 173 — Acquisition and development: Commercial and land development 837 — — — Commercial and industrial 1,044 — 765 — Residential mortgage: First lien 3,209 12 2,392 12 Home equity – term 12 — 12 — Home equity - lines of credit 645 — 768 — Installment and other loans 17 — 8 — $ 10,864 $ 12 $ 6,504 $ 12 Nine Months Ended September 30, Commercial real estate: Owner occupied $ 5,033 $ 1 $ 1,950 $ 1 Non-owner occupied 108 — 60 — Multi-family 259 — 118 — Non-owner occupied residential 422 — 246 — Acquisition and development: Commercial and land development 586 — — — Commercial and industrial 1,316 — 469 — Residential mortgage: First lien 3,050 36 2,574 41 Home equity - term 12 — 13 — Home equity - lines of credit 699 1 752 1 Installment and other loans 29 — 8 — $ 11,514 $ 38 $ 6,190 $ 43 |
Troubled Debt Restructurings | The following table presents impaired loans that are TDRs, with the recorded investment at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Number of Recorded Number of Recorded Accruing: Commercial real estate: Owner occupied 1 $ 28 1 $ 30 Residential mortgage: First lien 9 908 9 931 Home equity - lines of credit 1 9 1 18 11 945 11 979 Nonaccruing: Commercial real estate: Owner occupied — — 4 1,909 Residential mortgage: First lien 5 329 5 359 5 329 9 2,268 16 $ 1,274 20 $ 3,247 |
Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans | The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at September 30, 2020 and December 31, 2019: Days Past Due Current 30-59 60-89 90+ Total Non- Total September 30, 2020 Commercial real estate: Owner occupied $ 157,456 $ 1,090 $ 180 $ — $ 1,270 $ 3,313 $ 162,039 Non-owner occupied 402,805 — — — — — 402,805 Multi-family 110,079 — — — — 74 110,153 Non-owner occupied residential 110,292 — — — — 275 110,567 Acquisition and development: 1-4 family residential construction 9,627 — — — — — 9,627 Commercial and land development 36,940 73 — — 73 837 37,850 Commercial and industrial 686,537 107 57 — 164 755 687,456 Municipal 28,867 — — — — — 28,867 Residential mortgage: First lien 264,989 646 34 — 680 1,927 267,596 Home equity - term 11,067 1 11 — 12 11 11,090 Home equity - lines of credit 157,143 276 — — 276 687 158,106 Installment and other loans 28,758 99 11 — 110 20 28,888 Subtotal 2,004,560 2,292 293 — 2,585 7,899 2,015,044 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 4,584 — — — — — 4,584 Non-owner occupied 333 — — — — — 333 Non-owner occupied residential 1,234 — — 157 157 — 1,391 Commercial and industrial 2,857 — — 17 17 — 2,874 Residential mortgage: First lien 4,868 298 40 347 685 — 5,553 Home equity - term 18 — — — — — 18 Installment and other loans 72 — 1 — 1 — 73 Subtotal 13,966 298 41 521 860 — 14,826 $ 2,018,526 $ 2,590 $ 334 $ 521 $ 3,445 $ 7,899 $ 2,029,870 Days Past Due Current 30-59 60-89 90+ Total Non- Total December 31, 2019 Commercial real estate: Owner occupied $ 158,723 $ 144 $ — $ — $ 144 $ 5,842 $ 164,709 Non-owner occupied 359,425 480 — — 480 — 359,905 Multi-family 105,865 — — — — 345 106,210 Non-owner occupied residential 116,370 841 66 69 976 235 117,581 Acquisition and development: 1-4 family residential construction 15,587 278 — — 278 — 15,865 Commercial and land development 40,403 1,135 — — 1,135 — 41,538 Commercial and industrial 208,668 315 — — 315 1,763 210,746 Municipal 47,057 — — — — — 47,057 Residential mortgage: First lien 314,473 9,092 1,234 150 10,476 1,659 326,608 Home equity - term 13,993 — 4 — 4 13 14,010 Home equity - lines of credit 163,907 417 275 — 692 715 165,314 Installment and other loans 50,224 236 37 — 273 85 50,582 Subtotal 1,594,695 12,938 1,616 219 14,773 10,657 1,620,125 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 6,015 — 129 31 160 — 6,175 Non-owner occupied 564 — — 581 581 — 1,145 Multi-family 683 — — — — — 683 Non-owner occupied residential 1,710 105 111 531 747 — 2,457 Commercial and industrial 3,792 — — 16 16 — 3,808 Residential mortgage: First lien 6,308 1,857 745 854 3,456 — 9,764 Home equity - term 16 4 — — 4 — 20 Installment and other loans 131 22 — — 22 — 153 Subtotal 19,219 1,988 985 2,013 4,986 — 24,205 $ 1,613,914 $ 14,926 $ 2,601 $ 2,232 $ 19,759 $ 10,657 $ 1,644,330 |
Summary of Ending Loan Balances Individually Evaluated for Impairment Based on Loan Segment | The following table presents the activity in the ALL for the three and nine months ended September 30, 2020 and 2019: Commercial Consumer Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total Three Months Ended September 30, 2020 Balance, beginning of period $ 9,347 $ 1,069 $ 2,916 $ 75 $ 13,407 $ 3,552 $ 386 $ 3,938 $ 172 $ 17,517 Provision for loan losses 1,520 (219) 963 (19) 2,245 (71) 18 (53) 8 2,200 Charge-offs (3) — (193) — (196) — (31) (31) — (227) Recoveries 171 — 45 — 216 6 13 19 — 235 Balance, end of period $ 11,035 $ 850 $ 3,731 $ 56 $ 15,672 $ 3,487 $ 386 $ 3,873 $ 180 $ 19,725 September 30, 2019 Balance, beginning of period $ 6,847 $ 1,008 $ 2,120 $ 94 $ 10,069 $ 3,734 $ 209 $ 3,943 $ 448 $ 14,460 Provision for loan losses 465 (188) 269 (1) 545 27 50 77 (322) 300 Charge-offs — — (50) — (50) (24) (49) (73) — (123) Recoveries 111 — 33 — 144 5 23 28 — 172 Balance, end of period $ 7,423 $ 820 $ 2,372 $ 93 $ 10,708 $ 3,742 $ 233 $ 3,975 $ 126 $ 14,809 Nine Months Ended September 30, 2020 Balance, beginning of period $ 7,634 $ 959 $ 2,356 $ 100 $ 11,049 $ 3,147 $ 319 $ 3,466 $ 140 $ 14,655 Provision for loan losses 2,780 (117) 1,875 (44) 4,494 329 162 491 40 5,025 Charge-offs (3) — (689) — (692) (109) (117) (226) — (918) Recoveries 624 8 189 — 821 120 22 142 — 963 Balance, end of period $ 11,035 $ 850 $ 3,731 $ 56 $ 15,672 $ 3,487 $ 386 $ 3,873 $ 180 $ 19,725 September 30, 2019 Balance, beginning of period $ 6,876 $ 817 $ 1,656 $ 98 $ 9,447 $ 3,753 $ 244 $ 3,997 $ 570 $ 14,014 Provision for loan losses 347 1 753 (5) 1,096 184 64 248 (444) 900 Charge-offs (25) — (140) — (165) (295) (121) (416) — (581) Recoveries 225 2 103 — 330 100 46 146 — 476 Balance, end of period $ 7,423 $ 820 $ 2,372 $ 93 $ 10,708 $ 3,742 $ 233 $ 3,975 $ 126 $ 14,809 The following table summarizes the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at September 30, 2020 and December 31, 2019. PCI loans are excluded from loans individually evaluated for impairment. Commercial Consumer Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total September 30, 2020 Loans allocated by: Individually evaluated for impairment $ 3,690 $ 837 $ 755 $ — $ 5,282 $ 3,542 $ 20 $ 3,562 $ — $ 8,844 Collectively evaluated for impairment 788,182 46,640 689,575 28,867 1,553,264 438,821 28,941 467,762 — 2,021,026 $ 791,872 $ 47,477 $ 690,330 $ 28,867 $ 1,558,546 $ 442,363 $ 28,961 $ 471,324 $ — $ 2,029,870 ALL allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 35 $ — $ 35 $ — $ 35 Collectively evaluated for impairment 11,035 850 3,731 56 15,672 3,452 386 3,838 180 19,690 $ 11,035 $ 850 $ 3,731 $ 56 $ 15,672 $ 3,487 $ 386 $ 3,873 $ 180 $ 19,725 December 31, 2019 Loans allocated by: Individually evaluated for impairment $ 6,452 $ — $ 1,763 $ — $ 8,215 $ 3,336 $ 85 $ 3,421 $ — $ 11,636 Collectively evaluated for impairment 752,413 57,403 212,791 47,057 1,069,664 512,380 50,650 563,030 — 1,632,694 $ 758,865 $ 57,403 $ 214,554 $ 47,057 $ 1,077,879 $ 515,716 $ 50,735 $ 566,451 $ — $ 1,644,330 ALL allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 36 $ — $ 36 $ — $ 36 Collectively evaluated for impairment 7,634 959 2,356 100 11,049 3,111 319 3,430 140 14,619 $ 7,634 $ 959 $ 2,356 $ 100 $ 11,049 $ 3,147 $ 319 $ 3,466 $ 140 $ 14,655 |
Schedule of Activity for the Accretable Yield of Purchased Impaired Loans | The following table provides activity for the accretable yield of PCI loans for the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Accretable yield, beginning of period $ 4,182 $ 4,988 $ 6,950 $ 2,065 Additions (1) — — 570 3,497 Accretion of income (546) (422) (2,459) (1,814) Reclassifications from nonaccretable difference due to improvement in expected cash flows 139 825 1,260 1,441 Other changes, net (2) (231) 319 (2,777) 521 Accretable yield, end of period $ 3,544 $ 5,710 $ 3,544 $ 5,710 (1) The amount for the nine months ended September 30, 2020 reflects a measurement period adjustment for Hamilton loans that should have been in the PCI pool at the acquisition date. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of ROU Assets and Related Lease Liabilities | The following table presents information related to the Company's operating leases at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Operating lease ROU assets $ 8,949 $ 9,222 Operating lease ROU liabilities 9,398 9,688 Weighted-average remaining lease term (in years) 16.8 17.6 Weighted-average discount rate 4.3 % 4.5 % |
Information Related to Operating Leases | The following table presents information related to the Company's operating leases for the three and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Cash paid for operating lease liabilities $ 210 $ 330 $ 847 $ 791 Operating lease expense 421 507 1,171 1,016 |
Schedule of Maturities of Lease Liabilities | The following table presents expected future maturities of the Company's lease liabilities as of September 30, 2020: Remainder of 2020 $ 354 2021 1,208 2022 785 2023 807 2024 827 Thereafter 10,288 14,269 Less: imputed interest 4,871 Total lease liabilities $ 9,398 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of in Changes in Goodwill | The following table presents changes in goodwill at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Balance, beginning of year $ 19,925 $ 12,592 Acquired goodwill — 7,029 Adjustments to acquired goodwill (1) (1,201) 304 Balance, end of period $ 18,724 $ 19,925 (1) The Company finalized its purchase accounting adjustments associated with Hamilton as of May 1, 2020. |
Schedule of Changes in Other Intangible Assets | The following table presents changes in other intangible assets for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Beginning of period $ 6,160 $ 8,140 $ 7,180 $ 3,910 Acquired CDI — — — 4,550 Non-compete agreement — — — 290 Amortization Expense (357) (486) (1,224) (1,096) Impairment — — (153) — Balance, end of period $ 5,803 $ 7,654 $ 5,803 $ 7,654 |
Schedule of Components of Other Intangible Assets | The following table presents the components of other identifiable intangible assets at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Gross Amount Accumulated Gross Amount Accumulated Amortized intangible assets: Core deposit intangibles $ 8,390 $ 2,590 $ 8,390 $ 1,493 Other customer relationship intangibles 25 22 524 338 Non-compete agreement — — 290 193 Total $ 8,415 $ 2,612 $ 9,204 $ 2,024 |
Schedule of Estimated Aggregated Amortization Expense | The following table presents future estimated aggregate amortization expense for intangible assets remaining at September 30, 2020: Remainder of 2020 $ 345 2021 1,275 2022 1,105 2023 935 2024 766 Thereafter 1,377 $ 5,803 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | The following table summarizes income tax expense for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Current expense $ 2,040 $ 244 $ 2,495 $ 334 Deferred expense (803) 1,096 1,082 1,348 Income tax expense $ 1,237 $ 1,340 $ 3,577 $ 1,682 |
Summary of Deferred Tax Assets and Liabilities | The following table summarizes deferred tax assets and liabilities at September 30, 2020 and December 31, 2019: (Dollars in thousands) September 30, December 31, Deferred tax assets: Allowance for loan losses $ 4,549 $ 3,418 Deferred compensation 507 415 Retirement and salary continuation plans 2,467 2,357 Share-based compensation 630 631 Off-balance sheet reserves 270 234 Nonaccrual loan interest 760 697 Net unrealized losses on AFS securities 40 127 Purchase accounting adjustments 2,318 4,081 Bonus accrual 471 493 Interest Rate Swaps 449 — Low-income housing credit carryforward 345 — Net operating loss carryovers 1,645 1,872 Other 724 672 Total deferred tax assets 15,175 14,997 Deferred tax liabilities: Depreciation 465 452 Mortgage servicing rights 593 694 Purchase accounting adjustments 1,280 1,599 Other 275 275 Total deferred tax liabilities 2,613 3,020 Net deferred tax asset, included in other assets $ 12,562 $ 11,977 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Nonvested Restricted Shares Activity | The table below presents a summary of nonvested restricted shares activity for the nine months ended September 30, 2020: Shares Weighted Average Grant Date Fair Value Nonvested shares, beginning of year 228,758 $ 21.90 Granted 114,182 20.09 Forfeited (13,883) 21.35 Vested (77,731) 20.68 Nonvested shares, at period end 251,326 $ 21.52 |
Schedule of Restricted Shares Compensation Expense | The following table presents restricted shares compensation expense, with tax benefit information, and fair value of shares vested, for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Restricted share award expense $ 434 $ 470 $ 1,607 $ 1,146 Restricted share award tax benefit 91 212 337 361 Fair value of shares vested 225 2,056 1,314 2,500 |
Summary of Outstanding Stock Options Activity | The following table presents a summary of outstanding stock options activity for the nine months ended September 30, 2020: Shares Weighted Average Exercise Price Outstanding, beginning of year 30,559 $ 21.56 Forfeited (1,000) 21.14 Expired (29,559) 25.76 Options outstanding and exercisable — $ 0.00 |
Schedule of Employee Stock Purchase Plan | The following table presents information for the employee stock purchase plan for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Shares purchased 4,218 2,395 7,831 5,399 Weighted average price of shares purchased $ 13.08 $ 22.87 $ 14.85 $ 20.69 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The following table summarizes the fair value of the Company's derivative instruments at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate swaps - balance sheet hedge $ 100,000 Other liabilities $ (1,657) $ — $ — Total derivatives designated as hedging instruments $ (1,657) $ — Derivatives not designated as hedging instruments: Interest rate swap - commercial borrower $ 11,901 Other assets $ 347 $ — $ — Interest rate swap - counterparty 11,901 Other liabilities (368) — — Interest Rate lock commitments with customers 33,560 Other assets 1,143 4,408 Other assets 103 Forward sale commitment 11,699 Other assets 17 8,969 Other assets 1 Total derivatives not designated as hedging instruments $ 1,139 $ 104 |
Effect of Derivative Financial Instruments on OCI and Net Income | The following tables summarize the effect of the Company's derivative financial instruments on OCI and net income for the three and nine months ended September 30, 2020 and 2019 : Amount of Gain Recognized in OCI on Derivative Amount of Loss Recognized in OCI on Derivative Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Derivatives in cash flow hedging relationships: Interest rate products $ 208 $ — $ (1,893) $ — Total $ 208 $ — $ (1,893) $ — Amount of Loss Reclassified from Accumulated OCI into Income Amount of Loss Reclassified from AOCI into Income Location of Loss Recognized from AOCI into Income Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Derivatives in cash flow hedging relationships: Interest rate products $ (114) $ — $ (239) $ — Interest expense Total $ (114) $ — $ (239) $ — Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Derivatives not designated as hedging instruments: Interest rate products $ (4) $ — $ (21) $ — Other operating expenses Interest rate lock commitments with customers 157 — 1,040 — Mortgage banking activities Forward sale commitment 71 — (126) — Mortgage banking activities Total $ 224 $ — $ 893 $ — |
Summary of Interest Rate Swap Components | The following table is a summary of interest rate swap components at September 30, 2020 and December 31, 2019 : September 30, 2020 December 31, 2019 Weighted average pay rate 0.54 % — % Weighted average receive rate 0.80 % — % Weighted average maturity in years 5.5 — |
SHAREHOLDERS' EQUITY AND REGU_2
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Capital Amounts and Ratios | The following table presents capital amounts and ratios at September 30, 2020 and December 31, 2019: Actual For Capital Adequacy Purposes To Be Well Amount Ratio Amount Ratio Amount Ratio September 30, 2020 Total risk-based capital: Orrstown Financial Services, Inc. $ 261,779 15.0 % $ 182,912 10.5 % n/a n/a Orrstown Bank 248,781 14.3 % 182,848 10.5 % $ 174,141 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 208,970 12.0 % 148,071 8.5 % n/a n/a Orrstown Bank 227,847 13.1 % 148,019 8.5 % 139,312 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 208,970 12.0 % 121,941 7.0 % n/a n/a Orrstown Bank 227,847 13.1 % 121,898 7.0 % 113,191 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 208,970 7.8 % 107,186 4.0 % n/a n/a Orrstown Bank 227,847 8.5 % 107,216 4.0 % 134,020 5.0 % December 31, 2019 Total risk-based capital: Orrstown Financial Services, Inc. $ 244,003 14.1 % $ 182,028 10.5 % n/a n/a Orrstown Bank 231,805 13.4 % 181,948 10.5 % $ 173,284 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 196,451 11.3 % 147,356 8.5 % n/a n/a Orrstown Bank 216,100 12.5 % 147,291 8.5 % 138,627 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 196,451 11.3 % 121,352 7.0 % n/a n/a Orrstown Bank 216,100 12.5 % 121,299 7.0 % 112,635 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 196,451 8.6 % 91,782 4.0 % n/a n/a Orrstown Bank 216,100 9.4 % 91,798 4.0 % 114,747 5.0 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table presents earnings per share for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income $ 4,977 $ 6,901 $ 16,404 $ 12,690 Weighted average shares outstanding - basic 10,941 10,949 10,939 10,159 Dilutive effect of share-based compensation 84 145 88 159 Weighted average shares outstanding - diluted 11,025 11,094 11,027 10,318 Per share information: Basic earnings per share $ 0.45 $ 0.63 $ 1.50 $ 1.25 Diluted earnings per share 0.45 0.62 1.49 1.23 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Commitments and Conditional Obligations, Contract or Notional Amounts | The following table presents these contractual, or notional, amounts: Contractual or Notional Amount September 30, 2020 December 31, 2019 Commitments to fund: Home equity lines of credit $ 218,961 $ 205,502 1-4 family residential construction loans 23,546 19,812 Commercial real estate, construction and land development loans 24,738 19,018 Commercial, industrial and other loans 245,722 222,288 Standby letters of credit 16,376 10,588 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on Recurring Basis | The following table summarizes assets measured at fair value on a recurring basis at September 30, 2020 and December 31, 2019: Level 1 Level 2 Level 3 Total Fair September 30, 2020 Investment securities: States and political subdivisions $ — $ 112,707 $ — $ 112,707 GSE residential MBSs — 4,578 — 4,578 GSE residential CMOs — 62,139 — 62,139 Nonagency CMOs — — 17,162 17,162 Private label commercial CMOs — 62,479 6,730 69,209 Asset-backed — 212,150 — 212,150 Other 343 — — 343 Loans held for sale — 12,804 — 12,804 Interest rate swaps — 339 — 339 Interest rate lock commitments on residential mortgages — — 1,143 1,143 Totals $ 343 $ 467,196 $ 25,035 $ 492,574 December 31, 2019 Investment securities: States and political subdivisions $ — $ 87,863 $ — $ 87,863 GSE residential CMOs — 68,154 — 68,154 Nonagency CMOs — — 17,087 17,087 Private label commercial CMOs — 79,437 7,192 86,629 Asset-backed — 230,515 — 230,515 Other 637 — — 637 Loans held for sale — 9,364 — 9,364 Interest rate lock commitments on residential mortgages — — 103 103 Totals $ 637 $ 475,333 $ 24,382 $ 500,352 |
Level 3 Fair Value Measurement Activity | The following provides details of the Level 3 fair value measurement activity for the periods ended September 30, 2020 and 2019: CMOs: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance, beginning of period $ 23,834 $ — $ 24,279 $ — Unrealized gain (loss) included in OCI 200 — (229) — Principal payments and other (142) — (158) — Balance, end of period $ 23,892 $ — $ 23,892 $ — Interest rate lock commitments on residential mortgages: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance, beginning of period $ 986 $ — $ 103 $ — Total gains Included in earnings 157 — 1,040 — Balance, end of period $ 1,143 $ — $ 1,143 $ — |
Summary of Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes assets measured at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019: Level 1 Level 2 Level 3 Total September 30, 2020 Impaired Loans Commercial real estate: Owner occupied $ — $ — $ 875 $ 875 Multi-family — — 74 74 Non-owner occupied residential — — 39 39 Commercial and industrial — — 195 195 Residential mortgage: First lien — — 684 684 Home equity - lines of credit — — 174 174 Total impaired loans $ — $ — $ 2,041 $ 2,041 Mortgage servicing rights $ — $ — $ 2,661 $ 2,661 December 31, 2019 Impaired Loans Commercial real estate: Owner occupied $ — $ — $ 938 $ 938 Multi-family — — 96 96 Non-owner occupied residential — — 103 103 Commercial and industrial — — 11 11 Residential mortgage: First lien — — 641 641 Home equity - lines of credit — — 400 400 Installment and other loans — — 7 7 Total impaired loans $ — $ — $ 2,196 $ 2,196 Mortgage servicing rights $ — $ — $ 3,119 $ 3,119 |
Summary of Additional Qualitative Information | The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Fair Value Valuation Unobservable Input Range September 30, 2020 Impaired loans $ 2,041 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 0% - 25% discount - Management adjustments for liquidation expenses 6%- 19% discount Mortgage servicing rights $ 2,661 Discounted cash flows Weighted average CPR 16.96% - Weighted average discount rate 9.57% December 31, 2019 Impaired loans $ 2,196 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 0% - 20% discount - Management adjustments for liquidation expenses 6% - 33% discount Mortgage servicing rights $ 3,119 Discounted cash flows Weighted average CPR 11.63% - Weighted average discount rate 9.54% |
Financial Instruments at Estimated Fair Values | The following table presents carrying amounts and estimated fair values of the Company’s financial instruments at September 30, 2020 and December 31, 2019: Carrying Fair Value Level 1 Level 2 Level 3 September 30, 2020 Financial Assets Cash and due from banks $ 26,854 $ 26,854 $ 26,854 $ — $ — Interest-bearing deposits with banks 60,453 60,453 60,453 — — Restricted investments in bank stocks 12,646 n/a n/a n/a n/a Investment securities 478,288 478,288 — 454,396 23,892 Loans held for sale 12,804 12,804 — 12,804 — Loans, net of allowance for loan losses 2,010,145 2,003,349 — — 2,003,349 Interest rate lock commitments on residential mortgages 1,143 1,143 — — 1,143 Interest rate swaps 339 339 — 339 — Accrued interest receivable 8,812 8,812 — 1,810 7,002 Financial Liabilities Deposits 2,279,483 2,282,669 — 2,282,669 — Securities sold under agreements to repurchase 17,445 17,445 — 17,445 — FHLB advances and other 183,373 183,650 — 183,650 — Subordinated notes 31,889 32,009 — 32,009 — Interest rate swaps 2,014 2,014 — 2,014 — Accrued interest payable 819 819 — 819 — December 31, 2019 Financial Assets Cash and due from banks $ 25,969 $ 25,969 $ 25,969 $ — $ — Interest-bearing deposits with banks 30,493 30,493 30,493 — — Restricted investments in bank stocks 16,184 n/a n/a n/a n/a Investment securities 490,386 490,386 — 466,107 24,279 Loans held for sale 9,364 9,364 — 9,364 — Loans, net of allowance for loan losses 1,629,675 1,652,788 — — 1,652,788 Interest rate lock commitments on residential mortgages 103 103 — — 103 Accrued interest receivable 6,040 6,040 — 1,863 4,177 Financial Liabilities Deposits 1,875,522 1,876,555 — 1,876,555 — Securities sold under agreements to repurchase 8,269 8,269 — 8,269 — FHLB advances and other 209,667 210,005 — 210,005 — Subordinated notes 31,847 33,953 — 33,953 — Accrued interest payable 879 879 — 879 — |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Sep. 30, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||
Operating lease liability | $ 9,398 | $ 9,688 | |
Right-of-use asset | $ 8,949 | $ 9,222 | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liability | $ 10,500 | ||
Right-of-use asset | $ 7,500 |
MERGERS AND ACQUISITIONS - Narr
MERGERS AND ACQUISITIONS - Narrative (Details) - USD ($) | May 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 18,724,000 | $ 18,724,000 | $ 19,925,000 | $ 12,592,000 | ||||
Unaudited pro forma net Income | $ 7,600,000 | $ 13,400,000 | ||||||
Unaudited pro forma revenue | 38,700,000 | 95,700,000 | ||||||
Merger related expenses | $ 0 | $ 500,000 | $ 0 | $ 8,000,000 | ||||
Hamilton Bancorp, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of ownership interests acquired | 100.00% | |||||||
Acquisition, cash paid | $ 14,197,000 | |||||||
Consideration paid | 50,819,000 | |||||||
Total assets acquired excluding goodwill | 494,000,000 | |||||||
Loans | 347,143,000 | |||||||
Total liabilities assumed | 449,358,000 | |||||||
Deposits | 388,246,000 | |||||||
Goodwill | 6,132,000 | |||||||
Core deposit intangible | $ 4,550,000 | |||||||
Core deposit intangible amortization period | 10 years | |||||||
Hamilton Bancorp, Inc. | Common Stock | ||||||||
Business Acquisition [Line Items] | ||||||||
Shares issued for common stock (in shares) | 1,765,704 | |||||||
Price per share (in usd per share) | $ 20.74 |
MERGERS AND ACQUISITIONS - Summ
MERGERS AND ACQUISITIONS - Summary of Consideration Paid and Estimated Fair Value of Assets Acquired and Liabilities Assume (Details) - USD ($) $ in Thousands | May 01, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Estimated fair values of assets acquired and liabilities assumed: | ||||
Goodwill | $ 18,724 | $ 19,925 | $ 12,592 | |
Hamilton Bancorp, Inc. | ||||
Fair value of consideration transferred: | ||||
Cash | $ 14,197 | |||
Common stock issued | 36,622 | |||
Total consideration transferred | 50,819 | |||
Estimated fair values of assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | 43,140 | |||
Securities available for sale | 60,882 | |||
Restricted investments in bank stocks | 2,658 | |||
Loans | 347,143 | |||
Premises and equipment | 3,749 | |||
Core deposit intangible | 4,550 | |||
Goodwill | 6,132 | |||
Cash surrender value of life insurance | 17,948 | |||
Deferred tax asset, net | 7,257 | |||
ROU lease asset | 2,793 | |||
Other assets | 3,925 | |||
Total assets acquired | 500,177 | |||
Deposits | (388,246) | |||
Borrowings | (51,393) | |||
Other liabilities | (9,719) | |||
Total liabilities assumed | $ (449,358) |
MERGERS AND ACQUISITIONS - Perf
MERGERS AND ACQUISITIONS - Performing and PCI Loans Acquired (Details) - Hamilton Bancorp, Inc. $ in Thousands | May 01, 2019USD ($) |
Business Acquisition [Line Items] | |
Performing loans | $ 327,875 |
PCI loans | 19,268 |
Total Loans | 347,143 |
Commercial and industrial | |
Business Acquisition [Line Items] | |
Performing loans | 32,316 |
PCI loans | 1,914 |
Total Loans | 34,230 |
Installment and other loans | |
Business Acquisition [Line Items] | |
Performing loans | 14,467 |
PCI loans | 195 |
Total Loans | 14,662 |
Owner occupied | Commercial real estate | |
Business Acquisition [Line Items] | |
Performing loans | 42,148 |
PCI loans | 5,894 |
Total Loans | 48,042 |
Non-owner occupied | Commercial real estate | |
Business Acquisition [Line Items] | |
Performing loans | 45,401 |
PCI loans | 770 |
Total Loans | 46,171 |
Multi-family | Commercial real estate | |
Business Acquisition [Line Items] | |
Performing loans | 10,773 |
PCI loans | 0 |
Total Loans | 10,773 |
1-4 family residential construction | Acquisition and development | |
Business Acquisition [Line Items] | |
Performing loans | 7,450 |
PCI loans | 0 |
Total Loans | 7,450 |
Commercial and land development | Acquisition and development | |
Business Acquisition [Line Items] | |
Performing loans | 4,528 |
PCI loans | 0 |
Total Loans | 4,528 |
First lien | Residential mortgage | |
Business Acquisition [Line Items] | |
Performing loans | 152,657 |
PCI loans | 10,494 |
Total Loans | 163,151 |
Home equity - term | Residential mortgage | |
Business Acquisition [Line Items] | |
Performing loans | 4,478 |
PCI loans | 1 |
Total Loans | 4,479 |
Home equity - lines of credit | Residential mortgage | |
Business Acquisition [Line Items] | |
Performing loans | 13,657 |
PCI loans | 0 |
Total Loans | $ 13,657 |
MERGERS AND ACQUISITIONS - Sche
MERGERS AND ACQUISITIONS - Schedule of Fair Value Adjustments Made to Amortized Cost Basis of Loans (Details) - Hamilton Bancorp, Inc. $ in Thousands | May 01, 2019USD ($) |
Business Acquisition [Line Items] | |
Gross amortized cost basis at acquisition | $ 362,125 |
Market rate adjustment | (5,309) |
Credit fair value adjustment on non-credit impaired loans | (3,947) |
Credit fair value adjustment on PCI loans | (5,726) |
Estimated fair value of acquired loans | $ 347,143 |
MERGERS AND ACQUISITIONS - Info
MERGERS AND ACQUISITIONS - Information About Acquired PCI Loans (Details) - USD ($) $ in Thousands | May 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Business Acquisition [Line Items] | |||||
Nonaccretable difference | $ (139) | $ (825) | $ (1,260) | $ (1,441) | |
Hamilton Bancorp, Inc. | |||||
Business Acquisition [Line Items] | |||||
Contractually required principal and interest at acquisition | $ 31,599 | ||||
Nonaccretable difference | (8,834) | ||||
Expected cash flows at acquisition | 22,765 | ||||
Accretable yield | (3,497) | ||||
Estimated fair value of acquired PCI loans | $ 19,268 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized Cost and Fair Values of AFS Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 478,476 | $ 491,492 |
Gross Unrealized Gains | 11,076 | 5,582 |
Gross Unrealized Losses | 11,264 | 6,189 |
Fair Value | 478,288 | 490,885 |
States and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 104,900 | 83,607 |
Gross Unrealized Gains | 8,042 | 4,288 |
Gross Unrealized Losses | 235 | 32 |
Fair Value | 112,707 | 87,863 |
GSE residential MBSs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,488 | |
Gross Unrealized Gains | 90 | |
Gross Unrealized Losses | 0 | |
Fair Value | 4,578 | |
GSE residential CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 60,254 | 67,928 |
Gross Unrealized Gains | 2,682 | 1,000 |
Gross Unrealized Losses | 797 | 774 |
Fair Value | 62,139 | 68,154 |
Non-agency CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,071 | 17,210 |
Gross Unrealized Gains | 91 | 0 |
Gross Unrealized Losses | 0 | 123 |
Fair Value | 17,162 | 17,087 |
Private label commercial CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 72,372 | 86,704 |
Gross Unrealized Gains | 23 | 156 |
Gross Unrealized Losses | 3,186 | 231 |
Fair Value | 69,209 | 86,629 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 219,048 | 235,406 |
Gross Unrealized Gains | 148 | 138 |
Gross Unrealized Losses | 7,046 | 5,029 |
Fair Value | 212,150 | 230,515 |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 343 | 637 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 343 | $ 637 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of AFS Securities with Unrealized Losses (Details) $ in Thousands | Sep. 30, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Number of Securities | ||
Less Than 12 Months | security | 14 | 22 |
12 Months or More | security | 22 | 18 |
Total | security | 36 | 40 |
Fair Value | ||
Less Than 12 Months | $ 105,328 | $ 178,686 |
12 Months or More | 196,598 | 172,727 |
Total | 301,926 | 351,413 |
Unrealized Losses | ||
Less Than 12 Months | 2,736 | 1,676 |
12 Months or More | 8,528 | 4,513 |
Total | $ 11,264 | $ 6,189 |
States and political subdivisions | ||
Number of Securities | ||
Less Than 12 Months | security | 1 | 1 |
12 Months or More | security | 0 | 0 |
Total | security | 1 | 1 |
Fair Value | ||
Less Than 12 Months | $ 9,975 | $ 6,173 |
12 Months or More | 0 | 0 |
Total | 9,975 | 6,173 |
Unrealized Losses | ||
Less Than 12 Months | 235 | 32 |
12 Months or More | 0 | 0 |
Total | $ 235 | $ 32 |
GSE residential CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 3 | 5 |
12 Months or More | security | 0 | 1 |
Total | security | 3 | 6 |
Fair Value | ||
Less Than 12 Months | $ 25,296 | $ 37,158 |
12 Months or More | 0 | 11,602 |
Total | 25,296 | 48,760 |
Unrealized Losses | ||
Less Than 12 Months | 797 | 309 |
12 Months or More | 0 | 465 |
Total | $ 797 | $ 774 |
Non-agency CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 1 | |
12 Months or More | security | 0 | |
Total | security | 1 | |
Fair Value | ||
Less Than 12 Months | $ 17,087 | |
12 Months or More | 0 | |
Total | 17,087 | |
Unrealized Losses | ||
Less Than 12 Months | 123 | |
12 Months or More | 0 | |
Total | $ 123 | |
Private label commercial CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 4 | 6 |
12 Months or More | security | 9 | 8 |
Total | security | 13 | 14 |
Fair Value | ||
Less Than 12 Months | $ 24,768 | $ 26,079 |
12 Months or More | 38,469 | 39,726 |
Total | 63,237 | 65,805 |
Unrealized Losses | ||
Less Than 12 Months | 1,285 | 67 |
12 Months or More | 1,901 | 164 |
Total | $ 3,186 | $ 231 |
Asset-backed | ||
Number of Securities | ||
Less Than 12 Months | security | 6 | 9 |
12 Months or More | security | 13 | 9 |
Total | security | 19 | 18 |
Fair Value | ||
Less Than 12 Months | $ 45,289 | $ 92,189 |
12 Months or More | 158,129 | 121,399 |
Total | 203,418 | 213,588 |
Unrealized Losses | ||
Less Than 12 Months | 419 | 1,145 |
12 Months or More | 6,627 | 3,884 |
Total | $ 7,046 | $ 5,029 |
INVESTMENT SECURITIES -Summariz
INVESTMENT SECURITIES -Summarized Credit Ratings and Collateral Associated with Investment Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Book | $ 478,476 | $ 491,492 |
Fair Value | $ 478,288 | $ 490,885 |
Guaranteed by U.S. Government, percentage | 97.00% | |
Guaranteed by U.S. Government Agencies, percentage | 100.00% | |
Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 100.00% | |
Amortized Book | $ 478,383 | |
Fair Value | $ 478,194 | |
Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 20.00% | |
Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 60.00% | |
Credit Rating, A, Lowest of S&P, Moody's and Fitch | Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 13.00% | |
Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 1.00% | |
Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Total Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 6.00% | |
Unsecured ABS | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 2.00% | |
Amortized Book | $ 8,239 | |
Fair Value | $ 8,291 | |
Credit Enhancement | 43.00% | |
Unsecured ABS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 5.00% | |
Unsecured ABS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Unsecured ABS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Unsecured ABS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Unsecured ABS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Unsecured Consumer Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 95.00% | |
Student Loan ABS | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 2.00% | |
Amortized Book | $ 11,868 | |
Fair Value | $ 11,636 | |
Credit Enhancement | 26.00% | |
Student Loan ABS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Student Loan ABS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Student Loan ABS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Student Loan ABS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Student Loan ABS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Seasoned Student Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% | |
Federal Family Education Loan ABS | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 38.00% | |
Amortized Book | $ 181,639 | |
Fair Value | $ 174,916 | |
Credit Enhancement | 6.00% | |
Federal Family Education Loan ABS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 4.00% | |
Federal Family Education Loan ABS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 73.00% | |
Federal Family Education Loan ABS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 23.00% | |
Federal Family Education Loan ABS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Federal Family Education Loan ABS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Federal Family Education Loan | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
PACE Loan ABS | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 1.00% | |
Amortized Book | $ 5,472 | |
Fair Value | $ 5,551 | |
Credit Enhancement | 6.00% | |
PACE Loan ABS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% | |
PACE Loan ABS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
PACE Loan ABS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
PACE Loan ABS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
PACE Loan ABS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Pace Loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency CMBS | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 15.00% | |
Amortized Book | $ 72,372 | |
Fair Value | $ 69,209 | |
Credit Enhancement | 55.00% | |
Non-Agency CMBS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 87.00% | |
Non-Agency CMBS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency CMBS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 3.00% | |
Non-Agency CMBS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 10.00% | |
Non-Agency CMBS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Commercial Real Estate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency RMBS | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 4.00% | |
Amortized Book | $ 17,071 | |
Fair Value | $ 17,162 | |
Credit enhancement, percentage expected | 33.00% | |
Non-Agency RMBS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% | |
Non-Agency RMBS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency RMBS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency RMBS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Non-Agency RMBS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Reverse Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Municipal - General Obligation | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 11.00% | |
Amortized Book | $ 53,886 | |
Fair Value | $ 58,640 | |
Municipal - General Obligation | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 3.00% | |
Municipal - General Obligation | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 85.00% | |
Municipal - General Obligation | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 12.00% | |
Municipal - General Obligation | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Municipal - General Obligation | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Municipal - Revenue | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 11.00% | |
Amortized Book | $ 51,014 | |
Fair Value | $ 54,067 | |
Municipal - Revenue | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Municipal - Revenue | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 61.00% | |
Municipal - Revenue | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 19.00% | |
Municipal - Revenue | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Municipal - Revenue | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Uncollateralized | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 20.00% | |
SBA ReRemic | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 2.00% | |
Amortized Book | $ 11,830 | |
Fair Value | $ 11,756 | |
SBA ReRemic | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
SBA ReRemic | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% | |
SBA ReRemic | Credit Rating, A, Lowest of S&P, Moody's and Fitch | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
SBA ReRemic | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
SBA ReRemic | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | SBA Guarantee | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Agency MBS | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 14.00% | |
Amortized Book | $ 64,743 | |
Fair Value | $ 66,717 | |
Agency MBS | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Agency MBS | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% | |
Agency MBS | Credit Rating, A, Lowest of S&P, Moody's and Fitch | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Agency MBS | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Agency MBS | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | Residential Mortgages | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Bank CDs | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Portfolio Mix | 0.00% | |
Amortized Book | $ 249 | |
Fair Value | $ 249 | |
Bank CDs | Credit Rating, AAA, Lowest of S&P, Moody's and Fitch | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Bank CDs | Credit Rating, AA, Lowest of S&P, Moody's and Fitch | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Bank CDs | Credit Rating, A, Lowest of S&P, Moody's and Fitch | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Bank CDs | Credit Rating, BBB, Lowest of S&P, Moody's and Fitch | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 0.00% | |
Bank CDs | Credit Rating, NR, Lowest of S&P, Moody's and Fitch | FDIC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Credit rating, percentage | 100.00% |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Amortized Cost and Fair Values of AFS Securities by Contractual Maturity (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Amortized Cost | |
Due in one year or less | $ 0 |
Due after one year through five years | 249 |
Due after five years through ten years | 27,068 |
Due after ten years | 77,926 |
CMOs and MBSs | 154,185 |
Asset-backed | 219,048 |
Total Amortized Cost | 478,476 |
Fair Value | |
Due in one year | 0 |
Due after one year through five years | 249 |
Due after five years through ten years | 29,078 |
Due after ten years | 83,723 |
CMOs | 153,088 |
Asset-backed | 212,150 |
Total Fair Value | $ 478,288 |
INVESTMENT SECURITIES - Proceed
INVESTMENT SECURITIES - Proceeds from Sales of AFS Securities and Gross Gains and Gross Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Proceeds from sale of investment securities | $ 0 | $ 25,575 | $ 0 | $ 199,411 | |
Gross gains | 0 | 2,328 | 0 | 4,956 | |
Gross losses | 13 | 0 | 44 | 225 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Gain on investments | $ 2,300 | $ 4,700 | |||
Collateral Pledged | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
AFS securities pledged to secure public funds, fair value | $ 426,100 | $ 426,100 | $ 158,700 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)numberOfLoans | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)note | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | $ 2,029,870,000 | $ 2,029,870,000 | $ 1,644,330,000 | ||
Interest and fee income on loans | 21,645,000 | $ 20,178,000 | 63,605,000 | $ 54,987,000 | |
Amount of loan on which review have been made annually | 1,000,000 | 1,000,000 | |||
Amount of loan on which reviews require approval | 500,000 | $ 500,000 | |||
Loans that are deemed impaired, number of days past due (more than) | 90 days | ||||
Number of notes split | note | 2 | ||||
Appraisals, required period interval | 18 months | ||||
Minimum amount on which annual updated appraisals for classified loans is required | 250,000 | $ 250,000 | |||
Commercial and industrial | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 690,330,000 | 690,330,000 | 214,554,000 | ||
SBA | Commercial | Payment Deferral | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | $ 61,600,000 | 61,600,000 | |||
Number of of PPP loans | numberOfLoans | 3,200 | ||||
PPP loans generated amount | $ 467,700,000 | 467,700,000 | |||
SBA, loan guarantee, percentage | 100.00% | ||||
PPP Loan processing fee income | $ 13,500,000 | ||||
Interest and fee income on loans | 2,200,000 | $ 4,000,000 | |||
Loan deferral period | 180 days | ||||
SBA | Consumer | Payment Deferral | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 16,800,000 | $ 16,800,000 | |||
Loan deferral period | 90 days | ||||
SBA | Commercial and industrial | SBA PPP Loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 458,100,000 | $ 458,100,000 | $ 0 | ||
Unrecognized deferred fees | $ 9,500,000 | $ 9,500,000 | |||
Maximum | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Percentage of loan-to-value ratio upon loan origination | 80.00% | ||||
Percentage of loan-to-value ratios of the value of the real estate taken as collateral | 90.00% | ||||
Percentage of strong loan-to-value | 70.00% | ||||
Maximum | SBA | Payment Deferral | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Fee income amortization period | 5 years | ||||
Minimum | SBA | Payment Deferral | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Fee income amortization period | 2 years |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 2,029,870,000 | $ 1,644,330,000 |
Commercial real estate | Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 166,623,000 | 170,884,000 |
Commercial real estate | Non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 403,138,000 | 361,050,000 |
Commercial real estate | Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 110,153,000 | 106,893,000 |
Commercial real estate | Non-owner occupied residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 111,958,000 | 120,038,000 |
Acquisition and development | 1-4 family residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 9,627,000 | 15,865,000 |
Acquisition and development | Commercial and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 37,850,000 | 41,538,000 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 690,330,000 | 214,554,000 |
Commercial and industrial | SBA | SBA PPP Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 458,100,000 | 0 |
Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 28,867,000 | 47,057,000 |
Residential mortgage | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 273,149,000 | 336,372,000 |
Residential mortgage | Home equity - term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 11,108,000 | 14,030,000 |
Residential mortgage | Home equity - lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 158,106,000 | 165,314,000 |
Installment and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 28,961,000 | $ 50,735,000 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Company's Loan Portfolio Ratings Based on its Internal Risk Rating System (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 2,029,870 | $ 1,644,330 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 166,623 | 170,884 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 403,138 | 361,050 |
Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 110,153 | 106,893 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 111,958 | 120,038 |
Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 9,627 | 15,865 |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 37,850 | 41,538 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 690,330 | 214,554 |
Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 28,867 | 47,057 |
Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 273,149 | 336,372 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11,108 | 14,030 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 158,106 | 165,314 |
Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 28,961 | 50,735 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,880,010 | 1,555,156 |
Pass | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 142,294 | 151,161 |
Pass | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 347,253 | 342,753 |
Pass | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 88,896 | 100,361 |
Pass | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 105,159 | 111,697 |
Pass | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 9,341 | 15,865 |
Pass | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 35,818 | 39,939 |
Pass | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 660,538 | 198,951 |
Pass | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 28,867 | 42,649 |
Pass | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 264,761 | 323,040 |
Pass | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11,009 | 13,774 |
Pass | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 157,206 | 164,469 |
Pass | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 28,868 | 50,497 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 106,256 | 37,894 |
Special Mention | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,654 | 4,513 |
Special Mention | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 55,552 | 17,152 |
Special Mention | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 20,530 | 4,822 |
Special Mention | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,678 | 4,534 |
Special Mention | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 286 | 0 |
Special Mention | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 662 | 206 |
Special Mention | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 16,724 | 1,133 |
Special Mention | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 4,408 |
Special Mention | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 978 |
Special Mention | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 74 |
Special Mention | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 170 | 74 |
Special Mention | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 19,934 | 15,439 |
Non-Impaired Substandard | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 7,750 | 3,163 |
Non-Impaired Substandard | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 653 | 682 |
Non-Impaired Substandard | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,455 | 1,115 |
Non-Impaired Substandard | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 533 | 1,393 |
Non-Impaired Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 9,439 | 8,899 |
Non-Impaired Substandard | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 70 | 149 |
Non-Impaired Substandard | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 34 | 38 |
Non-Impaired Substandard | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,844 | 11,636 |
Impaired - Substandard | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,341 | 5,872 |
Impaired - Substandard | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 74 | 345 |
Impaired - Substandard | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 275 | 235 |
Impaired - Substandard | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 837 | 0 |
Impaired - Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 755 | 1,763 |
Impaired - Substandard | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,835 | 2,590 |
Impaired - Substandard | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11 | 13 |
Impaired - Substandard | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 696 | 733 |
Impaired - Substandard | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 20 | 85 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 14,826 | 24,205 |
PCI Loans | Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,584 | 6,175 |
PCI Loans | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 333 | 1,145 |
PCI Loans | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 683 |
PCI Loans | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,391 | 2,457 |
PCI Loans | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,874 | 3,808 |
PCI Loans | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,553 | 9,764 |
PCI Loans | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 18 | 20 |
PCI Loans | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 73 | $ 153 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans by Segment and Class (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | $ 452 | $ 425 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 452 | 425 |
Impaired Loans with a Specific Allowance, Related Allowance | 35 | 36 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 8,392 | 11,211 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 12,240 | 16,791 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 3,341 | 5,872 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 4,112 | 8,086 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 0 | |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 457 | |
Commercial real estate | Multi-family | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 74 | 345 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 309 | 569 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 275 | 235 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 396 | 422 |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 837 | |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 875 | |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 755 | 1,763 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 1,668 | 3,361 |
Residential mortgage | First lien | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 452 | 425 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 452 | 425 |
Impaired Loans with a Specific Allowance, Related Allowance | 35 | 36 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 2,383 | 2,165 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 3,450 | 3,164 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 11 | 13 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 14 | 15 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 696 | 733 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 939 | 1,077 |
Installment and other loans | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 20 | 85 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | $ 20 | $ 97 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Average Recorded Investment in Impaired Loans and Related Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Balance | $ 10,864 | $ 6,504 | $ 11,514 | $ 6,190 |
Interest Income Recognized | 12 | 12 | 38 | 43 |
Commercial real estate | Owner occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Balance | 4,424 | 2,126 | 5,033 | 1,950 |
Interest Income Recognized | 0 | 0 | 1 | 1 |
Commercial real estate | Non-owner occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Balance | 102 | 150 | 108 | 60 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Commercial real estate | Multi-family | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Balance | 141 | 110 | 259 | 118 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Commercial real estate | Non-owner occupied residential | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Balance | 433 | 173 | 422 | 246 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Acquisition and development | Commercial and land development | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Balance | 837 | 0 | 586 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Commercial and industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Balance | 1,044 | 765 | 1,316 | 469 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Residential mortgage | First lien | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Balance | 3,209 | 2,392 | 3,050 | 2,574 |
Interest Income Recognized | 12 | 12 | 36 | 41 |
Residential mortgage | Home equity - term | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Balance | 12 | 12 | 12 | 13 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Residential mortgage | Home equity - lines of credit | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Balance | 645 | 768 | 699 | 752 |
Interest Income Recognized | 0 | 0 | 1 | 1 |
Installment and other loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Balance | 17 | 8 | 29 | 8 |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)contract | Sep. 30, 2019contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2019contract | Dec. 31, 2019USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | 16 | 16 | 20 | ||
Recorded Investment | $ | $ 1,274 | $ 1,274 | $ 3,247 | ||
Number of new contracts | 0 | 0 | 0 | 0 | |
Accruing | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | 11 | 11 | 11 | ||
Recorded Investment | $ | $ 945 | $ 945 | $ 979 | ||
Accruing | Commercial real estate | Owner occupied | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | 1 | 1 | 1 | ||
Recorded Investment | $ | $ 28 | $ 28 | $ 30 | ||
Accruing | Residential mortgage | First lien | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | 9 | 9 | 9 | ||
Recorded Investment | $ | $ 908 | $ 908 | $ 931 | ||
Accruing | Residential mortgage | Home equity - lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | 1 | 1 | 1 | ||
Recorded Investment | $ | $ 9 | $ 9 | $ 18 | ||
Nonaccruing | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | 5 | 5 | 9 | ||
Recorded Investment | $ | $ 329 | $ 329 | $ 2,268 | ||
Nonaccruing | Commercial real estate | Owner occupied | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | 0 | 0 | 4 | ||
Recorded Investment | $ | $ 0 | $ 0 | $ 1,909 | ||
Nonaccruing | Residential mortgage | First lien | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | 5 | 5 | 5 | ||
Recorded Investment | $ | $ 329 | $ 329 | $ 359 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 2,018,526 | $ 1,613,914 |
Past Due | 3,445 | 19,759 |
90+ (still accruing) Days Past Due | 521 | 2,232 |
Non-Accrual | 7,899 | 10,657 |
Financing Receivable, before Allowance for Credit Loss | 2,029,870 | 1,644,330 |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,004,560 | 1,594,695 |
Past Due | 2,585 | 14,773 |
90+ (still accruing) Days Past Due | 0 | 219 |
Non-Accrual | 7,899 | 10,657 |
Financing Receivable, before Allowance for Credit Loss | 2,015,044 | 1,620,125 |
Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 13,966 | 19,219 |
Past Due | 860 | 4,986 |
90+ (still accruing) Days Past Due | 521 | 2,013 |
Non-Accrual | 0 | 0 |
Financing Receivable, before Allowance for Credit Loss | 14,826 | 24,205 |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,590 | 14,926 |
30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,292 | 12,938 |
30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 298 | 1,988 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 334 | 2,601 |
60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 293 | 1,616 |
60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 41 | 985 |
Commercial real estate | Owner occupied | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 157,456 | 158,723 |
Past Due | 1,270 | 144 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 3,313 | 5,842 |
Financing Receivable, before Allowance for Credit Loss | 162,039 | 164,709 |
Commercial real estate | Owner occupied | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4,584 | 6,015 |
Past Due | 0 | 160 |
90+ (still accruing) Days Past Due | 0 | 31 |
Non-Accrual | 0 | 0 |
Financing Receivable, before Allowance for Credit Loss | 4,584 | 6,175 |
Commercial real estate | Owner occupied | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,090 | 144 |
Commercial real estate | Owner occupied | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Owner occupied | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 180 | 0 |
Commercial real estate | Owner occupied | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 129 |
Commercial real estate | Non-owner occupied | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 402,805 | 359,425 |
Past Due | 0 | 480 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Financing Receivable, before Allowance for Credit Loss | 402,805 | 359,905 |
Commercial real estate | Non-owner occupied | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 333 | 564 |
Past Due | 0 | 581 |
90+ (still accruing) Days Past Due | 0 | 581 |
Non-Accrual | 0 | 0 |
Financing Receivable, before Allowance for Credit Loss | 333 | 1,145 |
Commercial real estate | Non-owner occupied | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 480 |
Commercial real estate | Non-owner occupied | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Non-owner occupied | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Non-owner occupied | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Multi-family | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 110,079 | 105,865 |
Past Due | 0 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 74 | 345 |
Financing Receivable, before Allowance for Credit Loss | 110,153 | 106,210 |
Commercial real estate | Multi-family | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 683 | |
Past Due | 0 | |
90+ (still accruing) Days Past Due | 0 | |
Non-Accrual | 0 | |
Financing Receivable, before Allowance for Credit Loss | 683 | |
Commercial real estate | Multi-family | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Multi-family | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | |
Commercial real estate | Multi-family | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Multi-family | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | |
Commercial real estate | Non-owner occupied residential | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 110,292 | 116,370 |
Past Due | 0 | 976 |
90+ (still accruing) Days Past Due | 0 | 69 |
Non-Accrual | 275 | 235 |
Financing Receivable, before Allowance for Credit Loss | 110,567 | 117,581 |
Commercial real estate | Non-owner occupied residential | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,234 | 1,710 |
Past Due | 157 | 747 |
90+ (still accruing) Days Past Due | 157 | 531 |
Non-Accrual | 0 | 0 |
Financing Receivable, before Allowance for Credit Loss | 1,391 | 2,457 |
Commercial real estate | Non-owner occupied residential | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 841 |
Commercial real estate | Non-owner occupied residential | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 105 |
Commercial real estate | Non-owner occupied residential | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 66 |
Commercial real estate | Non-owner occupied residential | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 111 |
Acquisition and development | 1-4 family residential construction | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 9,627 | 15,587 |
Past Due | 0 | 278 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Financing Receivable, before Allowance for Credit Loss | 9,627 | 15,865 |
Acquisition and development | 1-4 family residential construction | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 278 |
Acquisition and development | 1-4 family residential construction | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Acquisition and development | Commercial and land development | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 36,940 | 40,403 |
Past Due | 73 | 1,135 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 837 | 0 |
Financing Receivable, before Allowance for Credit Loss | 37,850 | 41,538 |
Acquisition and development | Commercial and land development | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 73 | 1,135 |
Acquisition and development | Commercial and land development | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial and industrial | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 686,537 | 208,668 |
Past Due | 164 | 315 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 755 | 1,763 |
Financing Receivable, before Allowance for Credit Loss | 687,456 | 210,746 |
Commercial and industrial | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,857 | 3,792 |
Past Due | 17 | 16 |
90+ (still accruing) Days Past Due | 17 | 16 |
Non-Accrual | 0 | 0 |
Financing Receivable, before Allowance for Credit Loss | 2,874 | 3,808 |
Commercial and industrial | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 107 | 315 |
Commercial and industrial | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial and industrial | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 57 | 0 |
Commercial and industrial | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Municipal | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 28,867 | 47,057 |
Past Due | 0 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Financing Receivable, before Allowance for Credit Loss | 28,867 | 47,057 |
Municipal | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Municipal | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Residential mortgage | First lien | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 264,989 | 314,473 |
Past Due | 680 | 10,476 |
90+ (still accruing) Days Past Due | 0 | 150 |
Non-Accrual | 1,927 | 1,659 |
Financing Receivable, before Allowance for Credit Loss | 267,596 | 326,608 |
Residential mortgage | First lien | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4,868 | 6,308 |
Past Due | 685 | 3,456 |
90+ (still accruing) Days Past Due | 347 | 854 |
Non-Accrual | 0 | 0 |
Financing Receivable, before Allowance for Credit Loss | 5,553 | 9,764 |
Residential mortgage | First lien | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 646 | 9,092 |
Residential mortgage | First lien | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 298 | 1,857 |
Residential mortgage | First lien | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 34 | 1,234 |
Residential mortgage | First lien | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 40 | 745 |
Residential mortgage | Home equity - term | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 11,067 | 13,993 |
Past Due | 12 | 4 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 11 | 13 |
Financing Receivable, before Allowance for Credit Loss | 11,090 | 14,010 |
Residential mortgage | Home equity - term | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 18 | 16 |
Past Due | 0 | 4 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Financing Receivable, before Allowance for Credit Loss | 18 | 20 |
Residential mortgage | Home equity - term | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1 | 0 |
Residential mortgage | Home equity - term | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 4 |
Residential mortgage | Home equity - term | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 11 | 4 |
Residential mortgage | Home equity - term | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Residential mortgage | Home equity - lines of credit | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 157,143 | 163,907 |
Past Due | 276 | 692 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 687 | 715 |
Financing Receivable, before Allowance for Credit Loss | 158,106 | 165,314 |
Residential mortgage | Home equity - lines of credit | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 276 | 417 |
Residential mortgage | Home equity - lines of credit | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 275 |
Installment and other loans | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 28,758 | 50,224 |
Past Due | 110 | 273 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 20 | 85 |
Financing Receivable, before Allowance for Credit Loss | 28,888 | 50,582 |
Installment and other loans | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 72 | 131 |
Past Due | 1 | 22 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Financing Receivable, before Allowance for Credit Loss | 73 | 153 |
Installment and other loans | 30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 99 | 236 |
Installment and other loans | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 22 |
Installment and other loans | 60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 11 | 37 |
Installment and other loans | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 1 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Activity in allowance for loan losses | ||||
Balance, beginning of period | $ 17,517 | $ 14,460 | $ 14,655 | $ 14,014 |
Provision for loan losses | 2,200 | 300 | 5,025 | 900 |
Charge-offs | (227) | (123) | (918) | (581) |
Recoveries | 235 | 172 | 963 | 476 |
Balance, end of period | 19,725 | 14,809 | 19,725 | 14,809 |
Unallocated | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 172 | 448 | 140 | 570 |
Provision for loan losses | 8 | (322) | 40 | (444) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 180 | 126 | 180 | 126 |
Commercial | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 13,407 | 10,069 | 11,049 | 9,447 |
Provision for loan losses | 2,245 | 545 | 4,494 | 1,096 |
Charge-offs | (196) | (50) | (692) | (165) |
Recoveries | 216 | 144 | 821 | 330 |
Balance, end of period | 15,672 | 10,708 | 15,672 | 10,708 |
Commercial | Commercial Real Estate | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 9,347 | 6,847 | 7,634 | 6,876 |
Provision for loan losses | 1,520 | 465 | 2,780 | 347 |
Charge-offs | (3) | 0 | (3) | (25) |
Recoveries | 171 | 111 | 624 | 225 |
Balance, end of period | 11,035 | 7,423 | 11,035 | 7,423 |
Commercial | Acquisition and Development | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 1,069 | 1,008 | 959 | 817 |
Provision for loan losses | (219) | (188) | (117) | 1 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 8 | 2 |
Balance, end of period | 850 | 820 | 850 | 820 |
Commercial | Commercial and Industrial | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 2,916 | 2,120 | 2,356 | 1,656 |
Provision for loan losses | 963 | 269 | 1,875 | 753 |
Charge-offs | (193) | (50) | (689) | (140) |
Recoveries | 45 | 33 | 189 | 103 |
Balance, end of period | 3,731 | 2,372 | 3,731 | 2,372 |
Commercial | Municipal | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 75 | 94 | 100 | 98 |
Provision for loan losses | (19) | (1) | (44) | (5) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 56 | 93 | 56 | 93 |
Consumer | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 3,938 | 3,943 | 3,466 | 3,997 |
Provision for loan losses | (53) | 77 | 491 | 248 |
Charge-offs | (31) | (73) | (226) | (416) |
Recoveries | 19 | 28 | 142 | 146 |
Balance, end of period | 3,873 | 3,975 | 3,873 | 3,975 |
Consumer | Residential Mortgage | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 3,552 | 3,734 | 3,147 | 3,753 |
Provision for loan losses | (71) | 27 | 329 | 184 |
Charge-offs | 0 | (24) | (109) | (295) |
Recoveries | 6 | 5 | 120 | 100 |
Balance, end of period | 3,487 | 3,742 | 3,487 | 3,742 |
Consumer | Installment and Other | ||||
Activity in allowance for loan losses | ||||
Balance, beginning of period | 386 | 209 | 319 | 244 |
Provision for loan losses | 18 | 50 | 162 | 64 |
Charge-offs | (31) | (49) | (117) | (121) |
Recoveries | 13 | 23 | 22 | 46 |
Balance, end of period | $ 386 | $ 233 | $ 386 | $ 233 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Ending Loan Balances Evaluated for Impairment and Related Allowance for Loan Losses Allocation (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans, Individually evaluated for impairment | $ 8,844 | $ 11,636 | ||||
Loans, Collectively evaluated for impairment | 2,021,026 | 1,632,694 | ||||
Total Loans | 2,029,870 | 1,644,330 | ||||
Allowance for loan losses, Individually evaluated for impairment | 35 | 36 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 19,690 | 14,619 | ||||
Allowance for loan losses, Total | 19,725 | $ 17,517 | 14,655 | $ 14,809 | $ 14,460 | $ 14,014 |
Commercial and Industrial | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total Loans | 690,330 | 214,554 | ||||
Municipal | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total Loans | 28,867 | 47,057 | ||||
Installment and Other | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total Loans | 28,961 | 50,735 | ||||
Commercial | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans, Individually evaluated for impairment | 5,282 | 8,215 | ||||
Loans, Collectively evaluated for impairment | 1,553,264 | 1,069,664 | ||||
Total Loans | 1,558,546 | 1,077,879 | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 15,672 | 11,049 | ||||
Allowance for loan losses, Total | 15,672 | 11,049 | ||||
Commercial | Commercial Real Estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans, Individually evaluated for impairment | 3,690 | 6,452 | ||||
Loans, Collectively evaluated for impairment | 788,182 | 752,413 | ||||
Total Loans | 791,872 | 758,865 | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 11,035 | 7,634 | ||||
Allowance for loan losses, Total | 11,035 | 7,634 | ||||
Commercial | Acquisition and Development | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans, Individually evaluated for impairment | 837 | 0 | ||||
Loans, Collectively evaluated for impairment | 46,640 | 57,403 | ||||
Total Loans | 47,477 | 57,403 | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 850 | 959 | ||||
Allowance for loan losses, Total | 850 | 959 | ||||
Commercial | Commercial and Industrial | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans, Individually evaluated for impairment | 755 | 1,763 | ||||
Loans, Collectively evaluated for impairment | 689,575 | 212,791 | ||||
Total Loans | 690,330 | 214,554 | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 3,731 | 2,356 | ||||
Allowance for loan losses, Total | 3,731 | 2,356 | ||||
Commercial | Municipal | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans, Individually evaluated for impairment | 0 | 0 | ||||
Loans, Collectively evaluated for impairment | 28,867 | 47,057 | ||||
Total Loans | 28,867 | 47,057 | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 56 | 100 | ||||
Allowance for loan losses, Total | 56 | 100 | ||||
Consumer | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans, Individually evaluated for impairment | 3,562 | 3,421 | ||||
Loans, Collectively evaluated for impairment | 467,762 | 563,030 | ||||
Total Loans | 471,324 | 566,451 | ||||
Allowance for loan losses, Individually evaluated for impairment | 35 | 36 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 3,838 | 3,430 | ||||
Allowance for loan losses, Total | 3,873 | 3,466 | ||||
Consumer | Residential Mortgage | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans, Individually evaluated for impairment | 3,542 | 3,336 | ||||
Loans, Collectively evaluated for impairment | 438,821 | 512,380 | ||||
Total Loans | 442,363 | 515,716 | ||||
Allowance for loan losses, Individually evaluated for impairment | 35 | 36 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 3,452 | 3,111 | ||||
Allowance for loan losses, Total | 3,487 | 3,147 | ||||
Consumer | Installment and Other | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans, Individually evaluated for impairment | 20 | 85 | ||||
Loans, Collectively evaluated for impairment | 28,941 | 50,650 | ||||
Total Loans | 28,961 | 50,735 | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 386 | 319 | ||||
Allowance for loan losses, Total | 386 | 319 | ||||
Unallocated | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans, Individually evaluated for impairment | 0 | 0 | ||||
Loans, Collectively evaluated for impairment | 0 | 0 | ||||
Total Loans | 0 | 0 | ||||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 180 | 140 | ||||
Allowance for loan losses, Total | $ 180 | $ 140 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Accretable Yield of Purchased Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accretable Yield Movement Schedule [Roll Forward] | ||||
Accretable yield, beginning of period | $ 4,182 | $ 4,988 | $ 6,950 | $ 2,065 |
Additions | 0 | 0 | 570 | 3,497 |
Accretion of income | (546) | (422) | (2,459) | (1,814) |
Reclassification from nonaccretable difference due to improvement in expected cash flows | 139 | 825 | 1,260 | 1,441 |
Other charges, net | (231) | 319 | (2,777) | 521 |
Accretable yield, end of period | $ 3,544 | $ 5,710 | $ 3,544 | $ 5,710 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Sep. 30, 2020 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 50 years |
LEASES - Summary of Information
LEASES - Summary of Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Right-of-use asset | $ 8,949 | $ 8,949 | $ 9,222 | ||
Operating lease liability | $ 9,398 | $ 9,398 | $ 9,688 | ||
Weighted-average remaining lease term (in years) | 16 years 9 months 18 days | 16 years 9 months 18 days | 17 years 7 months 6 days | ||
Weighted-average discount rate | 4.30% | 4.30% | 4.50% | ||
Cash paid for operating lease liabilities | $ 210 | $ 330 | $ 847 | $ 791 | |
Operating lease expense | $ 421 | $ 507 | $ 1,171 | $ 1,016 |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Leases Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Remainder of 2020 | $ 354 | |
2021 | 1,208 | |
2022 | 785 | |
2023 | 807 | |
2024 | 827 | |
Thereafter | 10,288 | |
Total payments due | 14,269 | |
Less: imputed interest | 4,871 | |
Total lease liabilities | $ 9,398 | $ 9,688 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Goodwill (Details) - USD ($) | Aug. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Goodwill [Roll Forward] | |||
Goodwill, beginning of year | $ 19,925,000 | $ 12,592,000 | |
Acquired goodwill | 0 | 7,029,000 | |
Adjustments to acquired goodwill | (1,201,000) | $ 304,000 | |
Goodwill, ending of period | $ 18,724,000 | ||
Goodwill impairment | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Other Intangible Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning of period | $ 6,160,000 | $ 8,140,000 | $ 7,180,000 | $ 3,910,000 |
Amortization Expense | (357,000) | (486,000) | (1,224,000) | (1,096,000) |
Impairment | 0 | 0 | (153,000) | 0 |
Balance, end of period | 5,803,000 | 7,654,000 | 5,803,000 | 7,654,000 |
Core deposit intangibles | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Finite-lived Intangible assets acquired | 0 | 0 | 0 | 4,550,000 |
Non-compete agreement | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Finite-lived Intangible assets acquired | $ 0 | $ 0 | 0 | $ 290,000 |
Customer Lists | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Impairment | $ (153,000) |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Components of Other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 8,415 | $ 9,204 |
Accumulated Amortization | 2,612 | 2,024 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 8,390 | 8,390 |
Accumulated Amortization | 2,590 | 1,493 |
Other customer relationship intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 25 | 524 |
Accumulated Amortization | 22 | 338 |
Non-compete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 0 | 290 |
Accumulated Amortization | $ 0 | $ 193 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||||
Remainder of 2020 | $ 345 | |||||
2021 | 1,275 | |||||
2022 | 1,105 | |||||
2023 | 935 | |||||
2024 | 766 | |||||
Thereafter | 1,377 | |||||
Total | $ 5,803 | $ 6,160 | $ 7,180 | $ 7,654 | $ 8,140 | $ 3,910 |
INCOME TAXES - Summary of Incom
INCOME TAXES - Summary of Income Tax Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Current expense | $ 2,040 | $ 244 | $ 2,495 | $ 334 |
Deferred expense | (803) | 1,096 | 1,082 | 1,348 |
Income tax expense | $ 1,237 | $ 1,340 | $ 3,577 | $ 1,682 |
INCOME TAXES - Summary of Defer
INCOME TAXES - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 4,549 | $ 3,418 |
Deferred compensation | 507 | 415 |
Retirement and salary continuation plans | 2,467 | 2,357 |
Share-based compensation | 630 | 631 |
Off-balance sheet reserves | 270 | 234 |
Nonaccrual loan interest | 760 | 697 |
Net unrealized losses on AFS securities | 40 | 127 |
Purchase accounting adjustments | 2,318 | 4,081 |
Bonus accrual | 471 | 493 |
Interest Rate Swaps | 449 | 0 |
Low-income housing credit carryforward | 345 | 0 |
Net operating loss carryovers | 1,645 | 1,872 |
Other | 724 | 672 |
Total deferred tax assets | 15,175 | 14,997 |
Deferred tax liabilities: | ||
Depreciation | 465 | 452 |
Mortgage servicing rights | 593 | 694 |
Purchase accounting adjustments | 1,280 | 1,599 |
Other | 275 | 275 |
Total deferred tax liabilities | 2,613 | 3,020 |
Net deferred tax asset, included in other assets | $ 12,562 | $ 11,977 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | Sep. 30, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Federal net operating loss carryforwards | $ 11.1 |
State net operating loss carryforwards | $ 6.7 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, recognition period | 1 year 10 months 24 days | |
Orrstown 2011 Incentive Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved to be issued (in shares) | 881,920 | |
Number of shares available to be issued under employee stock purchase plan (in shares) | 354,729 | |
Orrstown 2011 Incentive Stock Plan | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 2.5 | $ 2.2 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved to be issued (in shares) | 350,000 | |
Number of shares available to be issued under employee stock purchase plan (in shares) | 160,235 | |
Maximum shares purchase, as percentage of salary | 10.00% | |
Percentage of value of the shares on the semi-annual offering | 95.00% |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS - Summary of Nonvested Restricted Shares Activity (Details) - Orrstown 2011 Incentive Stock Plan - Restricted Stock | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Shares | |
Nonvested shares, beginning of year (in shares) | shares | 228,758 |
Granted (in shares) | shares | 114,182 |
Forfeited (in shares) | shares | (13,883) |
Vested (in usd per share) | shares | (77,731) |
Nonvested shares, at period end (in shares) | shares | 251,326 |
Weighted Average Grant Date Fair Value | |
Nonvested shares, beginning of year (in usd per share) | $ / shares | $ 21.90 |
Granted (in usd per share) | $ / shares | 20.09 |
Forfeited (in usd per share) | $ / shares | 21.35 |
Vested (in usd per share) | $ / shares | 20.68 |
Nonvested shares, at period end (in usd per share) | $ / shares | $ 21.52 |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS - Schedule of Restricted Shares Compensation Expense (Details) - Orrstown 2011 Incentive Stock Plan - Restricted Stock - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted share award expense | $ 434 | $ 470 | $ 1,607 | $ 1,146 |
Restricted share award tax benefit | 91 | 212 | 337 | 361 |
Fair value of shares vested | $ 225 | $ 2,056 | $ 1,314 | $ 2,500 |
SHARE-BASED COMPENSATION PLAN_5
SHARE-BASED COMPENSATION PLANS - Summary of Outstanding Stock Options Activity (Details) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Shares | |
Options exercisable (in shares) | shares | 0 |
Weighted Average Exercise Price | |
Options exercisable at period end (in usd per share) | $ / shares | $ 0 |
Orrstown 2011 Incentive Stock Plan | Employee Stock Option | |
Shares | |
Outstanding at beginning of year (in shares) | shares | 30,559 |
Forfeited (in shares) | shares | (1,000) |
Expired (in shares) | shares | (29,559) |
Options outstanding at period end (in shares) | shares | 0 |
Weighted Average Exercise Price | |
Outstanding at beginning of year (in usd per share) | $ / shares | $ 21.56 |
Forfeited (in usd per share) | $ / shares | 21.14 |
Expired (in usd per share) | $ / shares | 25.76 |
Options outstanding at period end (in usd per share) | $ / shares | $ 0 |
SHARE-BASED COMPENSATION PLAN_6
SHARE-BASED COMPENSATION PLANS - Schedule of Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Shares purchased (in shares) | 4,218 | 2,395 | 7,831 | 5,399 |
Weighted average price of shares purchased (in usd per share) | $ 13.08 | $ 22.87 | $ 14.85 | $ 20.69 |
DERIVATIVES FINANCIAL INSTRUMEN
DERIVATIVES FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions | Sep. 30, 2020USD ($)bank | Dec. 31, 2019numberOfDerivativeInstrumentsbank |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash collateral held by counterparty for derivatives | $ 2.4 | |
Interest rate derivative | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of derivatives | bank | 0 | |
Derivative, notional amount | $ 100 | |
Interest rate derivative | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of derivatives | bank | 2 | |
Interest rate derivative | Derivatives not designated as hedging instruments: | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of derivatives | numberOfDerivativeInstruments | 0 | |
Derivative, notional amount | $ 23.8 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives designated as hedging instruments: | ||
Fair Value | ||
Total derivatives | $ (1,657) | $ 0 |
Derivatives designated as hedging instruments: | Interest rate swaps - balance sheet hedge | Other liabilities | ||
Notional Amount | ||
Derivative liabilities | 100,000 | 0 |
Fair Value | ||
Derivative liabilities | (1,657) | 0 |
Derivatives not designated as hedging instruments: | ||
Fair Value | ||
Total derivatives | 1,139 | 104 |
Derivatives not designated as hedging instruments: | Interest rate swap | Other liabilities | ||
Notional Amount | ||
Derivative liabilities | 11,901 | 0 |
Fair Value | ||
Derivative liabilities | (368) | 0 |
Derivatives not designated as hedging instruments: | Interest rate swap | Other assets | ||
Notional Amount | ||
Derivative asset | 11,901 | 0 |
Fair Value | ||
Derivative asset | 347 | 0 |
Derivatives not designated as hedging instruments: | Interest Rate lock commitments with customers | Other assets | ||
Notional Amount | ||
Derivative asset | 33,560 | 4,408 |
Fair Value | ||
Derivative asset | 1,143 | 103 |
Derivatives not designated as hedging instruments: | Forward sale commitment | Other assets | ||
Notional Amount | ||
Derivative asset | 11,699 | 8,969 |
Fair Value | ||
Derivative asset | $ 17 | $ 1 |
DERIVATIVES FINANCIAL INSTRUM_2
DERIVATIVES FINANCIAL INSTRUMENTS - Effect of Derivative Financial Instruments on OCI and Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss Recognized in OCI on Derivative | $ 208 | $ 0 | $ (1,893) | $ 0 |
Amount of Loss Reclassified from AOCI into Income | (114) | 0 | (239) | 0 |
Interest expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss Reclassified from AOCI into Income | (114) | 0 | (239) | 0 |
Mortgage Banking | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | 224 | 0 | 893 | 0 |
Interest rate products | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss Recognized in OCI on Derivative | 208 | 0 | (1,893) | 0 |
Interest rate products | Interest expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss Reclassified from AOCI into Income | (114) | 0 | (239) | 0 |
Interest rate products | Mortgage Banking | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | (4) | 0 | (21) | 0 |
Interest Rate lock commitments with customers | Mortgage Banking | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | 157 | 0 | 1,040 | 0 |
Forward sale commitment | Mortgage Banking | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ 71 | $ 0 | $ (126) | $ 0 |
DERIVATIVES FINANCIAL INSTRUM_3
DERIVATIVES FINANCIAL INSTRUMENTS - Summary of Interest Rate Swap Components (Details) - Interest Rate Swap | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Weighted average pay rate | 0.54% | 0.00% |
Weighted average receive rate | 0.80% | 0.00% |
Weighted average maturity in years | 5 years 6 months |
SHAREHOLDERS_ EQUITY AND REGULA
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL - Capital Amounts and Ratios (Details) $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Consolidated | ||
Total Capital to risk weighted assets | ||
Actual, Amount | $ 261,779 | $ 244,003 |
Actual, Ratio | 0.150 | 0.141 |
Minimum Capital Requirement, Amount | $ 182,912 | $ 182,028 |
Minimum Capital Requirement, Ratio | 0.105 | 0.105 |
Tier 1 Capital to risk weighted assets | ||
Actual, Amount | $ 208,970 | $ 196,451 |
Actual, Ratio | 0.120 | 0.113 |
Minimum Capital Requirement, Amount | $ 148,071 | $ 147,356 |
Minimum Capital Requirement, Ratio | 0.085 | 0.085 |
Common Tier 1 (CET1) to risk weighted assets | ||
Actual, Amount | $ 208,970 | $ 196,451 |
Actual, Ratio | 12.00% | 11.30% |
Minimum Capital Requirement, Amount | $ 121,941 | $ 121,352 |
Minimum Capital Requirement, Ratio | 7.00% | 7.00% |
Tier 1 Capital to average assets | ||
Actual, Amount | $ 208,970 | $ 196,451 |
Actual, Ratio | 0.078 | 0.086 |
Minimum Capital Requirement, Amount | $ 107,186 | $ 91,782 |
Minimum Capital Requirement, Ratio | 0.040 | 0.040 |
Bank | ||
Total Capital to risk weighted assets | ||
Actual, Amount | $ 248,781 | $ 231,805 |
Actual, Ratio | 0.143 | 0.134 |
Minimum Capital Requirement, Amount | $ 182,848 | $ 181,948 |
Minimum Capital Requirement, Ratio | 0.105 | 0.105 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 174,141 | $ 173,284 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.100 | 0.100 |
Tier 1 Capital to risk weighted assets | ||
Actual, Amount | $ 227,847 | $ 216,100 |
Actual, Ratio | 0.131 | 0.125 |
Minimum Capital Requirement, Amount | $ 148,019 | $ 147,291 |
Minimum Capital Requirement, Ratio | 0.085 | 0.085 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 139,312 | $ 138,627 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.080 | 0.080 |
Common Tier 1 (CET1) to risk weighted assets | ||
Actual, Amount | $ 227,847 | $ 216,100 |
Actual, Ratio | 13.10% | 12.50% |
Minimum Capital Requirement, Amount | $ 121,898 | $ 121,299 |
Minimum Capital Requirement, Ratio | 7.00% | 7.00% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 113,191 | $ 112,635 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital to average assets | ||
Actual, Amount | $ 227,847 | $ 216,100 |
Actual, Ratio | 0.085 | 0.094 |
Minimum Capital Requirement, Amount | $ 107,216 | $ 91,798 |
Minimum Capital Requirement, Ratio | 0.040 | 0.040 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 134,020 | $ 114,747 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.050 | 0.050 |
SHAREHOLDERS' EQUITY AND REGU_3
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 20, 2020 | Sep. 30, 2020 | Sep. 30, 2015 |
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares authorized to be repurchased (in shares) | 416,000 | ||
Acquisition of treasury stock (in shares) | 154,680 | ||
Acquisition of treasury stock | $ 2.6 | ||
Acquisition of treasury stock (in usd per share) | $ 16.88 | ||
Subsequent Event | |||
Equity, Class of Treasury Stock [Line Items] | |||
Dividends declared per share (in usd per share) | $ 0.17 | ||
Maximum | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program authorized, maximum percentage of outstanding shares of common stock | 5.00% |
EARNINGS PER SHARE - Calculatio
EARNINGS PER SHARE - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 4,977 | $ 6,901 | $ 16,404 | $ 12,690 |
Weighted average shares outstanding - basic (in shares) | 10,941 | 10,949 | 10,939 | 10,159 |
Dilutive effect of share-based compensation (in shares) | 84 | 145 | 88 | 159 |
Weighted average shares outstanding - diluted (in shares) | 11,025 | 11,094 | 11,027 | 10,318 |
Per share information: | ||||
Basic earnings per share (in usd per share) | $ 0.45 | $ 0.63 | $ 1.50 | $ 1.25 |
Diluted earnings per share (in usd per share) | $ 0.45 | $ 0.62 | $ 1.49 | $ 1.23 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Average outstanding options excluded from diluted earnings per share (in shares) | 6,110 | 7,882 | 21,479 | 28,699 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Reserve for off-balance sheet credit exposures | $ 1,200 | $ 1,000 |
Home equity lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | 218,961 | 205,502 |
1-4 family residential construction loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | 23,546 | 19,812 |
Commercial real estate, construction and land development loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | 24,738 | 19,018 |
Commercial, industrial and other loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | 245,722 | 222,288 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | $ 16,376 | $ 10,588 |
FAIR VALUE - Narrative (Detail)
FAIR VALUE - Narrative (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value option, aggregate fair value exceeded principle amount | $ 424,000 | $ 424,000 | |||
Increase (decrease) in fair value | 147,647,000 | $ 78,242,000 | |||
Specific charges to value the real estate owned | 0 | $ 0 | 0 | 0 | |
Changes in fair value of OREO still held | 0 | 0 | 0 | 0 | |
Reserve for mortgage servicing rights | 1,100,000 | 1,100,000 | $ 70,000 | ||
Mortgage servicing rights impairment | $ 166,000 | $ 221,000 | 986,000 | $ 240,000 | |
Interest Rate Lock Commitments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Increase (decrease) in fair value | $ 62,000 | ||||
Level 3 | Measurement Input, Pull Through | Interest Rate Lock Commitments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Asset, measurement input (percent) | 0.89 | 0.89 | |||
Level 3 | Measurement Input, Pull Through Increase (Decrease) | Interest Rate Lock Commitments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Asset, measurement input (percent) | 0.05 | 0.05 | |||
Fair Value, Measurements, Recurring | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value liabilities | $ 0 | $ 0 | $ 0 |
FAIR VALUE - Summary of Assets
FAIR VALUE - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | $ 478,288 | $ 490,885 |
States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 112,707 | 87,863 |
GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 62,139 | 68,154 |
Non-agency CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 17,162 | 17,087 |
Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 212,150 | 230,515 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 343 | 637 |
Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate lock commitments on residential mortgages | 1,143 | 103 |
Level 3 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate lock commitments on residential mortgages | 1,143 | 103 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 12,804 | 9,364 |
Totals | 492,574 | 500,352 |
Fair Value, Measurements, Recurring | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 339 | |
Fair Value, Measurements, Recurring | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 112,707 | 87,863 |
Fair Value, Measurements, Recurring | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 4,578 | |
Fair Value, Measurements, Recurring | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 62,139 | 68,154 |
Fair Value, Measurements, Recurring | Non-agency CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 17,162 | 17,087 |
Fair Value, Measurements, Recurring | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 69,209 | 86,629 |
Fair Value, Measurements, Recurring | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 212,150 | 230,515 |
Fair Value, Measurements, Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 343 | 637 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Totals | 343 | 637 |
Fair Value, Measurements, Recurring | Level 1 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 0 | |
Fair Value, Measurements, Recurring | Level 1 | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-agency CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 343 | 637 |
Fair Value, Measurements, Recurring | Level 1 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate lock commitments on residential mortgages | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 12,804 | 9,364 |
Totals | 467,196 | 475,333 |
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 339 | |
Fair Value, Measurements, Recurring | Level 2 | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 112,707 | 87,863 |
Fair Value, Measurements, Recurring | Level 2 | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 4,578 | |
Fair Value, Measurements, Recurring | Level 2 | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 62,139 | 68,154 |
Fair Value, Measurements, Recurring | Level 2 | Non-agency CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 62,479 | 79,437 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 212,150 | 230,515 |
Fair Value, Measurements, Recurring | Level 2 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate lock commitments on residential mortgages | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Totals | 25,035 | 24,382 |
Fair Value, Measurements, Recurring | Level 3 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 0 | |
Fair Value, Measurements, Recurring | Level 3 | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Non-agency CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 17,162 | 17,087 |
Fair Value, Measurements, Recurring | Level 3 | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 6,730 | 7,192 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | $ 0 | $ 0 |
FAIR VALUE - Level 3 Fair Value
FAIR VALUE - Level 3 Fair Value Measurement Activity (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest Rate Lock Commitments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 986 | $ 0 | $ 103 | $ 0 |
Included in earnings | 157 | 0 | 1,040 | 0 |
Ending Balance | 1,143 | 0 | 1,143 | 0 |
Collateralized Mortgage Obligations | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 23,834 | 0 | 24,279 | 0 |
Unrealized gain (loss) included in OCI | 200 | 0 | (229) | 0 |
Principal payments and other | 142 | 0 | 158 | 0 |
Ending Balance | $ 23,892 | $ 0 | $ 23,892 | $ 0 |
FAIR VALUE- Summary of Assets M
FAIR VALUE- Summary of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | $ 2,041 | $ 2,196 |
Mortgage servicing rights | 2,661 | 3,119 |
Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 875 | 938 |
Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 74 | 96 |
Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 39 | 103 |
Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 195 | 11 |
Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 684 | 641 |
Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 174 | 400 |
Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 7 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Level 1 | Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Level 2 | Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 2,041 | 2,196 |
Mortgage servicing rights | 2,661 | 3,119 |
Level 3 | Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 875 | 938 |
Level 3 | Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 74 | 96 |
Level 3 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 39 | 103 |
Level 3 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 195 | 11 |
Level 3 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 684 | 641 |
Level 3 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | $ 174 | 400 |
Level 3 | Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | $ 7 |
FAIR VALUE - Summary of Additio
FAIR VALUE - Summary of Additional Qualitative Information (Details) - Fair Value, Measurements, Nonrecurring $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Impaired loans | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.06 | |
Impaired loans | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.33 | |
Impaired loans | Measurement Input, Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.06 | |
Impaired loans | Measurement Input, Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.19 | |
Impaired loans | Appraisal of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Estimate | $ 2,041 | $ 2,196 |
Impaired loans | Appraisal of collateral | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0 | |
Impaired loans | Appraisal of collateral | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.20 | |
Impaired loans | Appraisal of collateral | Measurement Input, Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0 | |
Impaired loans | Appraisal of collateral | Measurement Input, Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.25 | |
Mortgage servicing rights | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Estimate | $ 2,661 | $ 3,119 |
Mortgage servicing rights | Discounted cash flow | Measurement Input, Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.0957 | 0.0954 |
Mortgage servicing rights | Discounted cash flow | Measurement Input, Constant Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.1696 | 0.1163 |
FAIR VALUE - Financial Instrume
FAIR VALUE - Financial Instruments at Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Interest-bearing deposits with banks | $ 60,453 | $ 29,994 |
Restricted investments in bank stocks | 12,646 | 16,184 |
Investment securities | 478,288 | 490,885 |
Financial Liabilities | ||
Securities sold under agreements to repurchase | 17,445 | 8,269 |
Carrying Amount | ||
Financial Assets | ||
Cash and due from banks | 26,854 | 25,969 |
Interest-bearing deposits with banks | 60,453 | 30,493 |
Restricted investments in bank stocks | 12,646 | 16,184 |
Investment securities | 478,288 | 490,386 |
Loans held for sale | 12,804 | 9,364 |
Loans, net of allowance for loan losses | 2,010,145 | 1,629,675 |
Interest rate lock commitments on residential mortgages | 1,143 | 103 |
Accrued interest receivable | 8,812 | 6,040 |
Financial Liabilities | ||
Deposits | 2,279,483 | 1,875,522 |
Securities sold under agreements to repurchase | 17,445 | 8,269 |
FHLB advances and other | 183,373 | 209,667 |
Subordinated notes | 31,889 | 31,847 |
Accrued interest payable | 819 | 879 |
Carrying Amount | Interest rate swaps | ||
Financial Assets | ||
Interest rate swaps | 339 | |
Financial Liabilities | ||
Interest rate swaps | 2,014 | |
Fair Value | Fair Value, Inputs, Level 1, 2 and 3 | ||
Financial Assets | ||
Cash and due from banks | 26,854 | 25,969 |
Interest-bearing deposits with banks | 60,453 | 30,493 |
Investment securities | 478,288 | 490,386 |
Loans held for sale | 12,804 | 9,364 |
Loans, net of allowance for loan losses | 2,003,349 | 1,652,788 |
Interest rate lock commitments on residential mortgages | 1,143 | 103 |
Accrued interest receivable | 8,812 | 6,040 |
Financial Liabilities | ||
Deposits | 2,282,669 | 1,876,555 |
Securities sold under agreements to repurchase | 17,445 | 8,269 |
FHLB advances and other | 183,650 | 210,005 |
Subordinated notes | 32,009 | 33,953 |
Accrued interest payable | 819 | 879 |
Fair Value | Fair Value, Inputs, Level 1, 2 and 3 | Interest rate swaps | ||
Financial Assets | ||
Interest rate swaps | 339 | |
Financial Liabilities | ||
Interest rate swaps | 2,014 | |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and due from banks | 26,854 | 25,969 |
Interest-bearing deposits with banks | 60,453 | 30,493 |
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowance for loan losses | 0 | 0 |
Interest rate lock commitments on residential mortgages | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB advances and other | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Fair Value | Level 1 | Interest rate swaps | ||
Financial Assets | ||
Interest rate swaps | 0 | |
Financial Liabilities | ||
Interest rate swaps | 0 | |
Fair Value | Level 2 | ||
Financial Assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Investment securities | 454,396 | 466,107 |
Loans held for sale | 12,804 | 9,364 |
Loans, net of allowance for loan losses | 0 | 0 |
Interest rate lock commitments on residential mortgages | 0 | 0 |
Accrued interest receivable | 1,810 | 1,863 |
Financial Liabilities | ||
Deposits | 2,282,669 | 1,876,555 |
Securities sold under agreements to repurchase | 17,445 | 8,269 |
FHLB advances and other | 183,650 | 210,005 |
Subordinated notes | 32,009 | 33,953 |
Accrued interest payable | 819 | 879 |
Fair Value | Level 2 | Interest rate swaps | ||
Financial Assets | ||
Interest rate swaps | 339 | |
Financial Liabilities | ||
Interest rate swaps | 2,014 | |
Fair Value | Level 3 | ||
Financial Assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Investment securities | 23,892 | 24,279 |
Loans held for sale | 0 | 0 |
Loans, net of allowance for loan losses | 2,003,349 | 1,652,788 |
Interest rate lock commitments on residential mortgages | 1,143 | 103 |
Accrued interest receivable | 7,002 | 4,177 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB advances and other | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | $ 0 |
Fair Value | Level 3 | Interest rate swaps | ||
Financial Assets | ||
Interest rate swaps | 0 | |
Financial Liabilities | ||
Interest rate swaps | $ 0 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Thousands | 1 Months Ended | |
Apr. 30, 2020USD ($) | Sep. 30, 2020claim | |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of legal proceedings (in claims) | claim | 0 | |
Litigation settlement fees paid | $ | $ 135 |