Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | 10,614,071 | |
Entity Central Index Key | 0000826154 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 34,728 | $ 28,477 |
Interest-bearing deposits with banks | 60,211 | 32,346 |
Cash and cash equivalents | 94,939 | 60,823 |
Restricted investments in bank stocks | 12,987 | 10,642 |
Securities available for sale (amortized cost of $553,222 and $563,278 at September 30, 2023 and December 31, 2022, respectively) | 495,162 | 513,728 |
Loans held for sale, at fair value | 6,448 | 10,880 |
Loans | 2,266,836 | 2,151,232 |
Less: Allowance for credit losses | (28,278) | (25,178) |
Net loans | 2,238,558 | 2,126,054 |
Premises and equipment, net | 29,385 | 29,328 |
Cash surrender value of life insurance | 72,754 | 71,760 |
Goodwill | 18,724 | 18,724 |
Other intangible assets, net | 2,650 | 3,078 |
Accrued interest receivable | 12,212 | 11,027 |
Deferred tax assets, net | 25,500 | 24,031 |
Other assets | 45,116 | 42,333 |
Total assets | 3,054,435 | 2,922,408 |
Deposits: | ||
Noninterest-bearing | 435,488 | 494,131 |
Interest-bearing | 2,110,947 | 1,950,807 |
Deposits held for assumption in connection with sale of bank branch | 0 | 31,307 |
Total deposits | 2,546,435 | 2,476,246 |
Securities sold under agreements to repurchase and federal funds purchased | 17,991 | 17,251 |
FHLB advances and other borrowings | 157,250 | 106,139 |
Subordinated notes | 32,076 | 32,026 |
Other liabilities | 57,603 | 61,850 |
Total liabilities | 2,811,355 | 2,693,512 |
Shareholders’ Equity | ||
Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, no par value—$0.05205 stated value per share; 50,000,000 shares authorized; 11,206,480 shares issued and 10,613,271 outstanding at September 30, 2023; 11,229,242 shares issued and 10,671,413 outstanding at December 31, 2022 | 583 | 584 |
Additional paid - in capital | 188,458 | 189,264 |
Retained earnings | 112,144 | 92,473 |
Accumulated other comprehensive loss | (44,343) | (39,913) |
Treasury stock—593,209 and 557,829 shares, at cost at September 30, 2023 and December 31, 2022, respectively | (13,762) | (13,512) |
Total shareholders’ equity | 243,080 | 228,896 |
Total liabilities and shareholders’ equity | $ 3,054,435 | $ 2,922,408 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Securities available for sale, amortized cost | $ 553,222 | $ 563,278 |
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) | 11,206,480 | 11,229,242 |
Common stock, shares outstanding (in shares) | 10,613,271 | 10,671,413 |
Treasury stock (in shares) | 593,209 | 557,829 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income | ||||
Loans | $ 32,738 | $ 23,152 | $ 92,685 | $ 66,548 |
Investment securities - taxable | 4,459 | 2,907 | 13,244 | 6,462 |
Investment securities - tax-exempt | 861 | 1,160 | 2,591 | 3,013 |
Short-term investments | 633 | 200 | 1,349 | 536 |
Total interest income | 38,691 | 27,419 | 109,869 | 76,559 |
Interest expense | ||||
Deposits | 10,582 | 1,372 | 25,392 | 2,758 |
Securities sold under agreements to repurchase and federal funds purchased | 31 | 10 | 84 | 24 |
FHLB advances and other borrowings | 1,354 | 78 | 3,992 | 121 |
Subordinated notes | 505 | 504 | 1,513 | 1,510 |
Total interest expense | 12,472 | 1,964 | 30,981 | 4,413 |
Net interest income | 26,219 | 25,455 | 78,888 | 72,146 |
Provision for credit losses | 136 | 1,500 | 1,264 | 3,575 |
Net interest income after provision for credit losses | 26,083 | 23,955 | 77,624 | 68,571 |
Noninterest income | ||||
Service charges on deposit accounts | 1,020 | 977 | 2,966 | 2,861 |
Interchange income | 963 | 1,014 | 2,921 | 3,059 |
Other service charges, commissions and fees | 240 | 239 | 702 | 622 |
Swap fee income | 255 | 197 | 451 | 1,935 |
Trust and investment management income | 1,853 | 2,006 | 5,668 | 5,852 |
Brokerage income | 973 | 947 | 2,727 | 2,864 |
Mortgage banking activities | (142) | (1,014) | 448 | 205 |
Income from life insurance | 620 | 583 | 1,855 | 1,742 |
Investment securities gain (losses) | 2 | (14) | (8) | (163) |
Other income | 141 | 1,123 | 1,431 | 1,749 |
Total noninterest income | 5,925 | 6,058 | 19,161 | 20,726 |
Noninterest expenses | ||||
Salaries and employee benefits | 12,885 | 12,705 | 38,135 | 35,354 |
Occupancy | 1,089 | 1,166 | 3,249 | 3,586 |
Furniture and equipment | 1,371 | 1,214 | 3,810 | 3,784 |
Data processing | 1,248 | 1,192 | 3,666 | 3,410 |
Automated teller and interchange fees | 314 | 329 | 920 | 952 |
Advertising and bank promotions | 332 | 278 | 1,656 | 1,514 |
FDIC insurance | 477 | 294 | 1,500 | 767 |
Professional services | 965 | 887 | 2,203 | 2,417 |
Directors' compensation | 199 | 213 | 667 | 674 |
Taxes other than income | 387 | 488 | 847 | 1,160 |
Intangible asset amortization | 228 | 272 | 717 | 845 |
Provision for legal settlement | 0 | 13,000 | 0 | 13,000 |
Restructuring expenses | 0 | 3,155 | 0 | 3,155 |
Other operating expenses | 952 | 1,219 | 4,081 | 3,952 |
Total noninterest expenses | 20,447 | 36,412 | 61,451 | 74,570 |
Income (loss) before income tax expense (benefit) | 11,561 | (6,399) | 35,334 | 14,727 |
Income tax expense (benefit) | 2,535 | (1,571) | 7,314 | 2,316 |
Net income (loss) | $ 9,026 | $ (4,828) | $ 28,020 | $ 12,411 |
Per share information: | ||||
Basic earnings (loss) per share (in usd per share) | $ 0.87 | $ (0.47) | $ 2.71 | $ 1.17 |
Diluted earnings (loss) per share (in usd per share) | 0.87 | (0.47) | 2.68 | 1.16 |
Dividends paid per share (in usd per share) | $ 0.20 | $ 0.19 | $ 0.60 | $ 0.57 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 9,026 | $ (4,828) | $ 28,020 | $ 12,411 |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized losses on securities available for sale arising during the period | (14,448) | (17,283) | (8,510) | (60,242) |
Reclassification adjustment for losses realized in net income | 0 | 0 | 0 | 149 |
Net unrealized losses on securities available for sale | (14,448) | (17,283) | (8,510) | (60,093) |
Tax effect | 3,179 | 3,629 | 1,872 | 12,620 |
Total other comprehensive loss, net of tax and reclassification adjustments on securities available for sale | (11,269) | (13,654) | (6,638) | (47,473) |
Unrealized gains (loss) on interest rate swaps used in cash flow hedges | 1,439 | (562) | 2,831 | (562) |
Reclassification adjustment for losses realized in net income | 0 | 0 | 0 | 0 |
Net unrealized gains (loss) on interest rate swaps used in cash flow hedges | 1,439 | (562) | 2,831 | (562) |
Tax effect | (317) | 118 | (623) | 118 |
Total other comprehensive income (loss), net of tax and reclassification adjustments on interest rate swaps used in cash flow hedges | 1,122 | (444) | 2,208 | (444) |
Total other comprehensive loss, net of tax and reclassification adjustments | (10,147) | (14,098) | (4,430) | (47,917) |
Total comprehensive (loss) income | $ (1,121) | $ (18,926) | $ 23,590 | $ (35,506) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2021 | $ 271,656 | $ 586 | $ 189,689 | $ 78,700 | $ 4,449 | $ (1,768) | ||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income (loss) | 12,411 | 12,411 | ||||||
Total other comprehensive loss, net of taxes | (47,917) | (47,917) | ||||||
Cash dividends | (6,244) | (6,244) | ||||||
Share-based compensation plans: | ||||||||
Shares issued, shares acquired including compensation expense | (12,528) | (1) | (959) | (11,568) | ||||
Ending balance at Sep. 30, 2022 | 217,378 | 585 | 188,730 | 84,867 | (43,468) | (13,336) | ||
Beginning balance at Jun. 30, 2022 | 237,527 | 585 | 188,178 | 91,723 | (29,370) | (13,589) | ||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income (loss) | (4,828) | (4,828) | ||||||
Total other comprehensive loss, net of taxes | (14,098) | (14,098) | ||||||
Cash dividends | (2,028) | (2,028) | ||||||
Share-based compensation plans: | ||||||||
Shares issued, shares acquired including compensation expense | 805 | 0 | 552 | 253 | ||||
Ending balance at Sep. 30, 2022 | 217,378 | 585 | 188,730 | 84,867 | (43,468) | (13,336) | ||
Beginning balance at Dec. 31, 2022 | 228,896 | $ (1,984) | 584 | 189,264 | 92,473 | $ (1,984) | (39,913) | (13,512) |
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income (loss) | 28,020 | 28,020 | ||||||
Total other comprehensive loss, net of taxes | (4,430) | (4,430) | ||||||
Cash dividends | (6,365) | (6,365) | ||||||
Share-based compensation plans: | ||||||||
Shares issued, shares acquired including compensation expense | (1,057) | (1) | (806) | (250) | ||||
Ending balance at Sep. 30, 2023 | 243,080 | 583 | 188,458 | 112,144 | (44,343) | (13,762) | ||
Beginning balance at Jun. 30, 2023 | 245,641 | 583 | 187,859 | 105,239 | (34,196) | (13,844) | ||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income (loss) | 9,026 | 9,026 | ||||||
Total other comprehensive loss, net of taxes | (10,147) | (10,147) | ||||||
Cash dividends | (2,121) | (2,121) | ||||||
Share-based compensation plans: | ||||||||
Shares issued, shares acquired including compensation expense | 681 | 0 | 599 | 82 | ||||
Ending balance at Sep. 30, 2023 | $ 243,080 | $ 583 | $ 188,458 | $ 112,144 | $ (44,343) | $ (13,762) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per share (in usd per share) | $ 0.20 | $ 0.19 | $ 0.60 | $ 0.57 |
Common shares acquired (in shares) | 1,600 | 0 | 22,762 | 21,609 |
Treasury stock, shares acquired (in shares) | 3,446 | 10,385 | 35,380 | 475,377 |
Compensation expense, issuance of stock | $ 1,228 | $ 741 | $ 1,763 | $ 1,608 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 28,020 | $ 12,411 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net premium amortization | 1,534 | 1,319 |
Depreciation and amortization expense | 3,194 | 3,536 |
Provision for credit losses | 1,264 | 3,575 |
Share-based compensation | 1,763 | 1,608 |
Gains on sales of loans originated for sale | (214) | (1,305) |
Fair value adjustments on loans held for sale | 182 | 1,405 |
Mortgage loans originated for sale | (14,924) | (72,247) |
Proceeds from sales of loans originated for sale | 19,388 | 67,554 |
Gains on sale of portfolio loans | 0 | (306) |
Net gain on sale of OREO and premises held for sale | (436) | 0 |
Writedown of OREO and premises held for sale | 0 | 1,297 |
Net loss on disposal of premises and equipment | 242 | 483 |
Deferred income tax expense (benefit) | 339 | (2,489) |
Investment securities losses | 8 | 163 |
Provision for legal settlement | 0 | 13,000 |
Return on investments in limited partnerships | (27) | (964) |
Net unrealized gains on derivatives | (87) | (83) |
Income from life insurance | (1,855) | (1,742) |
Premium on branch sale | (1,102) | 0 |
Decrease (increase) in accrued interest receivable and other assets | 2,171 | (1,660) |
(Decrease) increase in accrued interest payable and other liabilities | (9,975) | 10,358 |
Other, net | 520 | 1,845 |
Net cash provided by operating activities | 30,005 | 37,758 |
Cash flows from investing activities | ||
Proceeds from sales of AFS securities | 19,900 | 3,075 |
Maturities, repayments and calls of AFS securities | 27,456 | 42,442 |
Purchases of AFS securities | (39,387) | (139,580) |
Net (purchases) redemptions of restricted investments in bank stocks | (2,345) | 783 |
Net distributions from investments in limited partnerships | 179 | 1,410 |
Net increase in loans | (115,681) | (109,424) |
Proceeds from sales of portfolio loans | 0 | 4,443 |
Investment in limited partnerships | (1,037) | 0 |
Purchases of bank premises and equipment | (1,771) | (805) |
Proceeds from disposal of OREO and premises held for sale | 2,536 | 0 |
Proceeds from disposal of premises and equipment | 43 | 0 |
Net cash paid in branch sale | (17,641) | 0 |
Death benefit proceeds from life insurance contracts | 342 | 142 |
Other | (72) | 0 |
Net cash used in investing activities | (127,478) | (197,514) |
Cash flows from financing activities | ||
Net increase in deposits | 88,924 | 40,917 |
Net increase (decrease) in borrowings with original maturities less than 90 days | 13,306 | (2,236) |
Proceeds from FHLB advances with original maturities greater than 90 days | 40,000 | 0 |
Payments on FHLB advances with original maturities greater than 90 days | (1,455) | (329) |
Dividends paid | (6,365) | (6,244) |
Acquisition of treasury stock | (2,579) | (14,056) |
Shares repurchased as treasury stock for employee taxes associated with restricted stock vesting | (378) | (262) |
Proceeds from issuance of employee stock purchase plan shares | 136 | 183 |
Net cash provided by financing activities | 131,589 | 17,973 |
Net increase (decrease) in cash and cash equivalents | 34,116 | (141,783) |
Cash and cash equivalents at beginning of period | 60,823 | 208,710 |
Cash and cash equivalents at end of period | 94,939 | 66,927 |
Cash paid during the period for: | ||
Interest | 29,655 | 3,917 |
Income taxes | 4,750 | 3,400 |
Supplemental schedule of noncash activities: | ||
Loans transferred from LHFS to portfolio loans | 0 | 1,510 |
OREO acquired in settlement of loans | 85 | 0 |
Premise and equipment transferred to held for sale | 0 | 2,844 |
Lease liabilities arising from obtaining ROU assets | $ 2,416 | $ 94 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
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 providing banking and financial advisory services in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania, and in Anne Arundel, Baltimore, Howard and Washington Counties, 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’s lending area also includes adjacent counties in Pennsylvania and Maryland, as well as Loudon County, Virginia and Berkeley, Jefferson and Morgan Counties, West Virginia. The Company also provides fiduciary services, investment advisory, insurance and brokerage services. 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. There have been no material changes to the Company's significant accounting policies for the nine months ended September 30, 2023, except for the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces our ALL policy under the incurred loss model, and adoption of ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which replaces our TDR accounting model policy, which are both discussed below in Recently Adopted Accounting Standards. The December 31, 2022 consolidated balance sheet information contained in this Quarterly Report on Form 10-Q was derived from the Company's 2022 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, 2022. Operating results for the nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. All significant intercompany transactions and accounts have been eliminated. Certain reclassifications have been made to the prior period amounts to conform with current period classifications. These reclassifications did not have a material impact on the Company's consolidated financial condition, results of operations or statement of consolidated cash flows. 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. To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Derivatives - FASB ASC 815, Derivatives and Hedging (“ASC 8 15”), 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 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 or variable amounts from a counterparty in exchange for the Company making variable-rate or fixed rate payments over the life of the agreements without exchange of the underlying notional amount. Changes to the fair value of derivatives designated and that qualify as cash flow hedges are recorded in AOCI and are subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The Company discontinues cash flow hedge accounting if it is probable the forecasted hedged transactions will not occur in the initially identified time period due to circumstances. Upon discontinuance, the associated gains and losses deferred in AOCI are reclassified immediately into earnings and subsequent changes in the fair value of the cash flow hedge are recognized in earnings. At September 30, 2023, the Company had two interest rate swaps designated as hedging instruments with a total notional value of $125.0 million compared to two interest rate swaps designated as hedging instruments with a total notional value of $100.0 million at December 31, 2022. 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 and interest rate caps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps and interest rate caps 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. At September 30, 2023 and December 31, 2022, the Company had interest rate swaps not designated as hedges with a total notional value of $319.5 million and $268.8 million, respectively. The Company also may enter into risk participation agreements with a financial institution counterparty for an interest rate derivative contract related to a loan in which the Company may be a participant or the agent bank. The risk participation agreement provides credit protection to the agent bank should the borrower fail to perform on its interest rate derivative contracts with the agent bank. The Company manages its credit risk on risk participation agreements by monitoring the creditworthiness of the borrower, which follows the same credit review process as derivative instruments entered into directly with the borrower. The notional amount of a risk participation agreement reflects the Company's pro-rata share of the derivative instrument, consistent with its share of the related participated loan. Changes in the fair value of the risk participation agreement are recognized directly into earnings. At September 30, 2023 and December 31, 2022, the Company had four risk participations with sold protection with a total notional value of $32.6 million and $29.0 million, respectively, and a risk participation with purchased protection with a notional value of $4.9 million at both September 30, 2023 and December 31, 2022. 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 may enter into a corresponding commitment with 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 held for sale loans. The fair value of held for sale loans can vary based on the interest rate locked with the customer and the current market interest rate at the balance sheet date. At September 30, 2023 and December 31, 2022, the Company had interest rate lock commitments with a notional value of $593 thousand and $1.4 million, respectively, and forward sale loan commitments with a notional value of $150 thousand and $3.5 million, respectively. Recently Adopted Accounting Standards Allowance for Credit Losses In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") . On January 1, 2023, the Company adopted ASU 2016-13, the current expected credit losses accounting standard commonly referred to as "CECL," which replaces the incurred loss model with the lifetime expected loss model. The CECL methodology requires an organization to measure all expected credit losses over the contractual term for financial assets measured at amortized cost, including loan receivables and held-to-maturity securities, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The CECL methodology also applies to off-balance sheet credit exposures not accounted for as insurance (e.g., loan commitments, standby letters of credit, financial guarantees and other similar instruments), net investments in leases recognized by a lessor in accordance with ASC Topic 842 on leases and AFS debt securities. To implement the new standard, the Company established a cross-discipline governance structure, which included a dedicated working group and a CECL Committee consisting of members from different functions including Finance, Credit, Risk and Lending, who provided implementation oversight and reviewed policy elections, key assumptions, processes, and model results. The working group was responsible for the implementation process that included developing the loan segmentation, data sourcing and validation, loss driver inputs, qualitative factors, parallel model runs, scenario testing and back testing. The Company utilized a third-party vendor to assist in the implementation process of its new model to calculate credit losses over the estimated life of the applicable financial assets. The Company elected to use the discounted cash flow (“DCF”) methodology for the quantitative analysis for the majority of its loan segments, which applies the probability of default and loss given default factors to future cash flows, and then adjusts to the net present value to derive the required reserve. Reasonable and supportable macroeconomic conditions include unemployment and GDP. Model assumptions include the discount rate, prepayments and curtailments. The development and validation of credit models also included determining the length of the reasonable and supportable forecast and regression period and utilizing national peer group historical loss rates. For the consumer loan segments, the remaining life methodology was selected as a practical expedient and based on the risk characteristics. The implementation also included review of model runs and certain assumptions, documentation of policies, procedures and controls, and engagement of another third-party consultant for model validation. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the ACL for loans by $2.4 million and increased the off-balance sheet credit exposures reserve by $100 thousand. Retained earnings, net of deferred taxes, decreased by $2.0 million, and deferred tax assets increased by $559 thousand. Results for reporting periods beginning after January 1, 2023 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the ACL is presented at the loan segment level: January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial loans: Commercial real estate $ 13,558 $ 16,415 $ 2,857 Acquisition and development 3,214 3,000 (214) Commercial and industrial 4,505 5,433 928 Municipal 24 193 169 Consumer loans: Residential mortgage 3,444 2,323 (1,121) Installment and other 188 237 49 Unallocated reserve 245 — (245) Allowance for credit losses on loans $ 25,178 $ 27,601 $ 2,423 Liabilities: Allowance for credit losses on off-balance sheet credit exposures $ 1,633 $ 1,733 $ 100 Allowance for Credit Losses on Loans The allowance for credit losses represents the amount that, in management's judgment, appropriately reflects credit losses inherent in the loan portfolio at the balance sheet date. Loans deemed to be uncollectible are charged against the ACL on loans, and subsequent recoveries, if any, are credited to the ACL on loans when received. Changes to the ACL are recorded through the provision for credit losses on loans in the consolidated statement of income. The ACL is maintained at a level considered appropriate to absorb credit losses over the expected life of the loan. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model results for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan classes. The ACL on loans is measured on a collective basis when similar risk characteristics exist within the Company's loan segments between commercial and consumer. For purposes of estimating the Company’s ACL, management generally evaluates collectively evaluated loans by federal call code in order to group loans with similar risk characteristics. Each of these loan segments are broken down into multiple loan classes, which are characterized by loan type, collateral type, risk attributions and the manner in which management monitors the performance of the borrower. The risks associated with lending activities differ and are subject to the impact of change in interest rates, market conditions and the impact on the collateral securing the loans, and general economic conditions. The commercial loan segment includes commercial real estate, acquisition and development, commercial and industrial and municipal loan classes. The consumer loan segment includes residential mortgage, installment and other consumer loans. Loans collectively evaluated includes loans on accrual status, except for loans previously restructured that do not share similar risk characteristics which are individually evaluated. The ACL for loans collectively evaluated is measured using a lifetime expected loss rate model that considers historical loss performance and past events in addition to forecasts of future economic conditions. The Company elected to use the DCF methodology for the quantitative analysis for the majority of its loan segments, which applies the probability of default, using a loss driver model and loss given default factors to future cash flows, and then adjusts to the net present value to derive the required reserve. The probability of default estimates are derived through the application of reasonable and supportable economic forecasts to the regression models, which incorporates the Company's and peer loss-rate data, unemployment rate and GDP. The reasonable and supportable forecasts of the selected economic metrics are then input into the regression model to calculate an expected default rate. The expected default rates are then applied to expected loan balances estimated through the consideration of contractual repayment terms and expected prepayments. The prepayment and curtailment assumptions adjust the contractual terms of the loan to arrive at the expected cash flows. The development and validation of credit models also included determining the length of the reasonable and supportable forecast and regression period and utilizing national peer group historical loss rates. Management selected the national unemployment rate and GDP as the drivers of the quantitative portion of collectively evaluated reserves on loan classes reliant upon the DCF methodology, primarily as a result of high correlation coefficients identified in regression modeling. For the consumer loan segment, the quantitative reserve was calculated using the remaining life methodology where the average historical bank-specific and peer loss rates are applied to expected loan balances over an estimated remaining life of loans. The estimated remaining life is calculated using historical bank-specific loan attrition data. Loans that do not share similar risk characteristics are evaluated on an individual basis, and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on nonaccrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price or the present value of expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loans. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of expected cash flows was less than the amortized cost basis of the loan. Based on management's analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond the quantitatively calculated reserve on collectively evaluated loans. As the quantitative reserve calculation incorporates historical conditions, management may consider an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions. These qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include significant or unexpected changes in: • Lending policies, procedures, underwriting standards and recovery practices; • Nature and volume of loans; • Concentrations of credit; • Collateral valuation trends; • Delinquency and classified loan trends; • Experience, ability and depth of management and lending staff; • Quality of loan review system; and • Economic conditions and other external factors. For PCD loans, the nonaccrual status is determined in the same manner as for other loans. Prior to the adoption of CECL, these PCD loans were classified as PCI loans and accounted for under ASC Subtopic 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30"). In accordance with the CECL standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the adoption date. As permitted by CECL, the Company elected to account for its PCD loans under ASC 310-20, Receivables - Nonrefundable Fees and Other Assets ("ASC 310-20"). These loans are initially recorded at fair value, and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. Under ASC 310-20, the acquired loans are analyzed on an individual asset level, and no longer maintained in pools and accounted for as units of accounts, which would permit treating each pool as a single asset. The impact of this election resulted in loans reported as nonaccrual and individually evaluated for credit expected losses under the CECL methodology. For off-balance sheet credit exposures, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk from the contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures includes consideration of the utilization rates expected on the loan commitments, and estimates the expected credit losses for the undrawn commitments by the loan segments. The ACL on off-balance sheet credit exposures is recorded in other liabilities on the consolidated balance sheets and is adjusted through the provision for credit losses in the consolidated statements of income. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). ASU 2022-02 eliminates the TDR accounting model, and requires that the Company evaluate, based on the accounting for loan modifications, whether the borrower is experiencing financial difficulty and the modification results in a more-than-insignificant direct change in the contractual cash flows and represents a new loan or a continuation of an existing loan, which the Company refers to these loans as "financial difficulty modifications" or "FDMs." This change required all loan modifications to be accounted for under the general loan modification guidance in ASC 310-20, Receivables – Nonrefundable Fees and Other Costs, and subject entities to new disclosure requirements on loan modifications to borrowers experiencing financial difficulty. Upon adoption of CECL, the TDRs were evaluated and included in the CECL loan segment pools if the loans shared similar risk characteristics to other loans in the pool or remained with loans individually evaluated for which the ACL was measured using the collateral-dependent or discounted cash flow method. On January 1, 2023, the Company adopted ASU 2022-02 on a modified retrospective basis, which did not have a material impact on the consolidated financial statements. A comprehensive analysis of the ACL is performed by the Company on a quarterly basis. Management evaluates the adequacy of the ACL utilizing a defined methodology to determine if it properly addresses the current and expected risks in the loan portfolio, which considers the performance of borrowers and specific evaluation of individually evaluated loans including historical loss experiences, trends in delinquencies, nonperforming loans and other risk assets, and the qualitative factors. Risk factors are continuously reviewed and adjusted, as needed, by management when conditions support a change. Management believes its approach properly addresses relevant accounting and bank regulatory guidance for loans both collectively and individually evaluated. The results of the comprehensive analysis, including recommended changes, are governed by the Company's Reserve Adequacy Committee, whose members were also a part of the Company's CECL Committee. See Note 3, Loans and Allowance for Credit Losses, to the unaudited condensed consolidated financial statements under Part I, Item 1, "Financial Information," for a description of the Company’s loan classes and differing levels of associated credit risk. Allowance for Credit Losses on AFS Securities Prior to implementation of CECL, unrealized losses on AFS debt securities caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment approach; however, the new standard requires credit losses to be presented as an ACL. The Company is still required to conduct an impairment evaluation on AFS securities to determine 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 these situations apply, the guidance continues to require the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. 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 a decline in the fair value of the security due to a credit factor. 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. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. Under the CECL standard, if the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, which is limited by the amount that the fair value is less than the amortized cost basis. Any additional amount of loss would be due to non-credit factors and is recorded in AOCI, net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in AOCI, net of taxes, on the unaudited condensed consolidated statements of financial condition. Accrued interest receivable on AFS securities is excluded from the estimate of credit losses. The Company did not record a cumulative-effect adjustment related to its AFS securities upon adoption of CECL on January 1, 2023. See Note 2, Investment Securities, to the unaudited condensed consolidated financial statements under Part I, Item 1, "Financial Information," for a description of the Company’s investment securities and impairment evaluation. Reference Rate Reform 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. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . This update defers the sunset date for applying the reference rate relief by two years to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. In 2021, the administrator of LIBOR delayed the intended cessation date of certain tenors of LIBOR to June 30, 2023. After June 30, 2023, the publication of the one-month, three-month and twelve-month tenors of LIBOR ceased. The Company had a cross-functional working group who led the transition from LIBOR to the adoption of an alternate index. This group identified the loans and financial instruments indexed to LIBOR, verified proper transition language existed in the contracts and executed contractual updates, as needed, with the impacted borrowers. The Company replaced LIBOR, in most cases with the 30-Day Average SOFR or Term SOFR, in its loan agreements and will utilize Fallback Rate SOFR, where prescribed. The implementation of Topic 848 did not have a significant impact on the Company's financial statements. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES At September 30, 2023 and December 31, 2022, all investment securities were classified as AFS. The following table summarizes amortized cost, fair value and ACL of investment securities, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI, and the allowance for credit losses at September 30, 2023 and December 31, 2022: Amortized Cost Gross Unrealized Gross Unrealized Allowance for Credit Losses Fair Value September 30, 2023 U.S. Treasury securities $ 20,060 $ — $ 2,917 $ — $ 17,143 U.S. Government Agencies 4,149 173 — — 4,322 States and political subdivisions 223,807 — 35,690 — 188,117 GSE residential MBSs 62,395 — 5,044 — 57,351 GSE commercial MBSs 4,413 365 — — 4,778 GSE residential CMOs 80,693 — 8,656 — 72,037 Non-agency CMOs 43,772 274 5,067 — 38,979 Asset-backed 113,813 447 1,945 — 112,315 Other 120 — — — 120 Totals $ 553,222 $ 1,259 $ 59,319 $ — $ 495,162 December 31, 2022 U.S. Treasury securities $ 20,070 $ — $ 2,779 n/a $ 17,291 U.S. Government Agencies 4,907 228 — n/a 5,135 States and political subdivisions 225,825 19 28,430 n/a 197,414 GSE residential MBSs 63,778 — 4,376 n/a 59,402 GSE residential CMOs 75,446 — 7,068 n/a 68,378 Non-agency CMOs 42,298 243 2,783 n/a 39,758 Asset-backed 130,577 — 4,604 n/a 125,973 Other 377 — — n/a 377 Totals $ 563,278 $ 490 $ 50,040 n/a $ 513,728 The following table summarizes investment securities with unrealized losses aggregated by major investment security type and the length of time in a continuous unrealized loss position. For these investment securities, no ACL was recorded at September 30, 2023 and no cumulative OTTI expense was recorded at December 31, 2022. 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, 2023 U.S. Treasury securities — $ — $ — 3 $ 17,143 $ 2,917 3 $ 17,143 $ 2,917 States and political subdivisions 10 4,147 294 41 183,970 35,396 51 188,117 35,690 GSE residential MBSs — — — 15 57,351 5,044 15 57,351 5,044 GSE residential CMOs 5 16,044 581 14 55,993 8,075 19 72,037 8,656 Non-agency CMOs 1 6,024 512 4 15,868 4,555 5 21,892 5,067 Asset-backed 1 892 7 15 77,377 1,938 16 78,269 1,945 Totals 17 $ 27,107 $ 1,394 92 $ 407,702 $ 57,925 109 $ 434,809 $ 59,319 December 31, 2022 U.S. Treasury securities — $ — $ — 3 $ 17,291 $ 2,779 3 $ 17,291 $ 2,779 States and political subdivisions 29 135,579 13,809 17 60,102 14,621 46 195,681 28,430 GSE residential MBSs 5 26,100 925 10 33,302 3,451 15 59,402 4,376 GSE residential CMOs 8 28,732 1,884 9 39,646 5,184 17 68,378 7,068 Non-agency CMOs 4 26,555 1,135 2 8,639 1,648 6 35,194 2,783 Asset-backed 17 78,873 2,432 5 47,100 2,172 22 125,973 4,604 Totals 63 $ 295,839 $ 20,185 46 $ 206,080 $ 29,855 109 $ 501,919 $ 50,040 The Company is required to conduct an impairment evaluation on AFS securities to determine 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 these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. 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 a decline in the fair value of the security due to a credit factor. 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. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. Under the CECL standard, if the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, which is limited by the amount that the fair value is less than the amortized cost basis. Any additional amount of loss would be due to non-credit factors and is recorded in AOCI, net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in AOCI, net of taxes, on the consolidated statements of financial condition. Prior to implementation of the CECL standard, unrealized losses caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment approach. The Company did not record an ACL on the AFS securities at September 30, 2023 or upon implementation of CECL on January 1, 2023. As of both periods, the Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. In addition, the Company maintains that it has the intent and ability to hold these AFS securities until the amortized cost is recovered and it is more likely than not that any of AFS securities in an unrealized loss position would not be required to be sold. At September 30, 2023 and December 31, 2022, unrealized losses were higher than prior periods due to market uncertainty resulting from inflation and higher interest rates from the time of the security purchase. U.S. Treasury Securities. The unrealized losses presented in the table above have been caused by an increase in rates from the time these securities were purchased. Management considers the full faith and credit of the U.S. government in determining whether declines in fair value are due to credit factors. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell them before recovery of their amortized cost basis, which may be maturity. In addition, the unrealized losses are not credit related. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at September 30, 2023. States and Political Subdivisions. The unrealized losses presented in the table above have been caused by a widening of spreads and/or a rise in interest rates 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 declines in fair value are due to credit factors. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell them before recovery of their amortized cost basis, which may be maturity. In addition, the unrealized losses are not credit related. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at September 30, 2023. GSE Residential CMOs and GSE Residential MBS. The unrealized losses presented in the table above have been caused by a widening of spreads and a rise in interest rates 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. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell them before recovery of their amortized cost basis, which may be maturity. In addition, the unrealized losses are not credit related. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at September 30, 2023. Non-Agency CMOs. The unrealized losses presented in the table above were caused by a widening of spreads and a rise in interest rates from the time the securities were purchased. Management considers the investment rating and other credit support in determining whether declines in fair value are due to credit factors. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell them before recovery of their amortized cost basis, which may be maturity. In addition, the unrealized losses are not credit related. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at September 30, 2023. Asset-backed. The unrealized losses presented in the table above were caused by a widening of spreads and a rise in the interest rates from the time the securities were purchased. Management considers the investment rating and other credit support in determining whether declines in fair value are due to credit factors. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell them before recovery of their amortized cost basis, which may be maturity. In addition, the unrealized losses are not credit related. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at September 30, 2023. The following table summarizes amortized cost and fair value of investment securities by contractual maturity at September 30, 2023. 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 31,439 27,291 Due after five years through ten years 56,845 49,216 Due after ten years 159,852 133,195 CMOs and MBSs 191,273 173,145 Asset-backed 113,813 112,315 Totals $ 553,222 $ 495,162 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, 2023 and 2022: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Proceeds from sale of investment securities $ 19,900 $ — $ 19,900 $ 3,075 Gross gains 2 — 2 25 Gross losses — 14 10 17 During the three and nine months ended September 30, 2023, the Company recorded net investment security gains of $2 thousand and net investment security losses of $8 thousand primarily from mark-to-market losses on an equity security, respectively, compared to net losses of $14 thousand and net gains of $8 thousand for the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2023, the Company sold three U.S. Treasury securities with a principal balance of $19.9 million for a nominal gain. During the nine months ended September 30, 2022, the Company completed a partial sale of one security with a principal balance of $3.1 million that was sold for proceeds of $3.1 million for a gross gain of $22 thousand. The Company did not sell any investment securities during the three months ended September 30, 2022. The Company recorded a loss of $171 thousand on a call of a non-agency CMO for the nine months ended September 30, 2022. Investment securities with a fair value of $435.9 million and $396.8 million at September 30, 2023 and December 31, 2022, respectively, were pledged to secure public funds and for other purposes as required or permitted by law. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The Company’s loan portfolio is grouped into segments which are further broken down into classes to allow management to monitor the performance by the borrower and to monitor the yield on the portfolio. 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 the value of its 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 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, if any, including 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's underwriting standards are developed to mitigate this risk. The underwriting process includes 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 is typical. However, these procedures cannot eliminate the risk of loss associated with commercial and industrial lending. At September 30, 2023 and December 31, 2022, commercial and industrial loans include $6.2 million and $13.8 million, respectively, net of deferred fees and costs, originated through the SBA PPP. At September 30, 2023, the Bank has $88 thousand of net deferred SBA PPP fees remaining to be recognized through net interest income over the remaining life of the loans. As these loans are 100% guaranteed by the SBA, there is no associated ACL at September 30, 2023. 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 clients for a specific utility. The Company originates loans to its retail clients, 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 85% 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 is 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. The Company adopted the new current expected credit loss accounting guidance, CECL, and all related amendments as of January 1, 2023. Certain credit quality disclosures related to impaired loans and individually and collectively evaluated loans were superseded with the current CECL guidance, which was adopted on January 1, 2023, and have not been included below as of September 30, 2023. The following table presents the loan portfolio by segment and class, excluding residential LHFS, at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Commercial real estate: Owner occupied $ 376,350 $ 315,770 Non-owner occupied 630,514 608,043 Multi-family 143,437 138,832 Non-owner occupied residential 100,391 104,604 Acquisition and development: 1-4 family residential construction 25,642 25,068 Commercial and land development 153,279 158,308 Commercial and industrial (1) 374,190 357,774 Municipal 10,334 12,173 Residential mortgage: First lien 248,335 229,849 Home equity - term 5,223 5,505 Home equity - lines of credit 188,736 183,241 Installment and other loans 10,405 12,065 Total loans $ 2,266,836 $ 2,151,232 (1) This balance includes $6.2 million and $13.8 million of SBA PPP loans, net of deferred fees and costs, at September 30, 2023 and December 31, 2022, 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 may determine to be either individually evaluated, referred to as "Substandard - Individually Evaluated Loan," or collectively evaluated, referred to as "Substandard Non-Individually Evaluated Loan." 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, senior 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 presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of September 30, 2023. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan and payment activity, which residential mortgage and installment and other consumer loans are presented below based on payment performance: performing or nonperforming. Term Loans Amortized Cost Basis by Origination Year As of September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Basis Revolving Loans Converted to Term Total Commercial Real Estate: Owner-occupied: Risk rating Pass $ 46,027 $ 94,573 $ 79,707 $ 22,354 $ 21,605 $ 66,222 $ 5,372 $ — $ 335,860 Special mention — 10,007 2,541 — — 2,398 — — 14,946 Substandard - Non-IEL — — — 6,122 — 2,165 457 — 8,744 Substandard - IEL — — — 14,321 — 2,479 — — 16,800 Total owner-occupied loans $ 46,027 $ 104,580 $ 82,248 $ 42,797 $ 21,605 $ 73,264 $ 5,829 $ — $ 376,350 Current period gross charge offs - owner-occupied $ — $ — $ — $ — $ — $ — $ — $ — $ — Non-owner occupied: Risk rating Pass $ 36,918 $ 98,722 $ 206,053 $ 85,808 $ 63,827 $ 135,331 $ 510 $ 871 $ 628,040 Special mention — — — — — 2,144 — — 2,144 Substandard - Non-IEL — — — — — 78 — — 78 Substandard - IEL — — — — — 252 — — 252 Total non-owner occupied loans $ 36,918 $ 98,722 $ 206,053 $ 85,808 $ 63,827 $ 137,805 $ 510 $ 871 $ 630,514 Current period gross charge offs - non-owner occupied $ — $ — $ — $ — $ — $ — $ — $ — $ — Multi-family: Risk rating Pass $ 2,255 $ 59,413 $ 8,732 $ 12,765 $ 7,791 $ 50,300 $ 150 $ — $ 141,406 Special mention — — — — — 2,031 — — 2,031 Substandard - Non-IEL — — — — — — — — — Substandard - IEL — — — — — — — — — Total multi-family loans $ 2,255 $ 59,413 $ 8,732 $ 12,765 $ 7,791 $ 52,331 $ 150 $ — $ 143,437 Current period gross charge offs - multi-family $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year As of September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Basis Revolving Loans Converted to Term Total Non-owner occupied residential: Risk rating Pass $ 7,137 $ 23,451 $ 18,807 $ 10,005 $ 6,775 $ 31,144 $ 1,503 $ — $ 98,822 Special mention — — — — — 894 — — 894 Substandard - Non-IEL — — — — — 385 — — 385 Substandard - IEL 2 — 192 — — 96 — — 290 Total non-owner occupied residential loans $ 7,139 $ 23,451 $ 18,999 $ 10,005 $ 6,775 $ 32,519 $ 1,503 $ — $ 100,391 Current period gross charge offs - non-owner occupied residential $ — $ — $ — $ — $ — $ 12 $ — $ — $ 12 Acquisition and development: 1-4 family residential construction: Risk rating Pass $ 13,111 $ 12,383 $ — $ — $ — $ — $ — $ — $ 25,494 Special mention — — 148 — — — — — 148 Substandard - Non-IEL — — — — — — — — — Substandard - IEL — — — — — — — — — Total 1-4 family residential construction loans $ 13,111 $ 12,383 $ 148 $ — $ — $ — $ — $ — $ 25,642 Current period gross charge offs - 1-4 family residential construction $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and land development: Risk rating Pass $ 21,879 $ 52,815 $ 50,957 $ 9,946 $ 114 $ 1,841 $ 6,655 $ 5,990 $ 150,197 Special mention — — — 1,223 — 442 — — 1,665 Substandard - Non-IEL — — — — — — — — — Substandard - IEL — — — — — 1,417 — — 1,417 Total commercial and land development loans $ 21,879 $ 52,815 $ 50,957 $ 11,169 $ 114 $ 3,700 $ 6,655 $ 5,990 $ 153,279 Current period gross charge offs - commercial and land development $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial: Risk rating Pass $ 55,922 $ 77,312 $ 75,336 $ 25,943 $ 10,988 $ 22,123 $ 92,100 $ 2,223 $ 361,947 Special mention — 1,387 3,699 15 1,248 386 3,235 — 9,970 Substandard - Non-IEL — — 1,223 — 9 287 92 — 1,611 Substandard - IEL — — — 8 — 508 146 — 662 Total commercial and industrial loans $ 55,922 $ 78,699 $ 80,258 $ 25,966 $ 12,245 $ 23,304 $ 95,573 $ 2,223 $ 374,190 Current period gross charge offs - commercial and industrial $ — $ 161 $ 106 $ — $ — $ 8 $ 473 $ — $ 748 Municipal: Risk rating Pass $ — $ 4 $ 3,403 $ — $ — $ 6,927 $ — $ — $ 10,334 Total municipal loans $ — $ 4 $ 3,403 $ — $ — $ 6,927 $ — $ — $ 10,334 Current period gross charge offs - municipal $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year As of September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Basis Revolving Loans Converted to Term Total Residential mortgage: First lien: Payment performance Performing $ 27,657 $ 65,681 $ 35,176 $ 8,071 $ 7,690 $ 100,990 $ — $ 642 $ 245,907 Nonperforming — — — — 172 2,256 — — 2,428 Total first lien loans $ 27,657 $ 65,681 $ 35,176 $ 8,071 $ 7,862 $ 103,246 $ — $ 642 $ 248,335 Current period gross charge offs - first lien $ — $ — $ — $ — $ — $ 58 $ — $ — $ 58 Home equity - term: Payment performance Performing $ 553 $ 750 $ 140 $ 443 $ 124 $ 3,210 $ — $ — $ 5,220 Nonperforming — — — — — 3 — — 3 Total home equity - term loans $ 553 $ 750 $ 140 $ 443 $ 124 $ 3,213 $ — $ — $ 5,223 Current period gross charge offs - home equity - term $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity - lines of credit: Payment performance Performing $ — $ — $ — $ — $ — $ — $ 111,582 $ 76,259 $ 187,841 Nonperforming — — — — — — 877 18 895 Total residential real estate - home equity - lines of credit loans $ — $ — $ — $ — $ — $ — $ 112,459 $ 76,277 $ 188,736 Current period gross charge offs - home equity - lines of credit $ — $ — $ — $ — $ — $ — $ 40 $ — $ 40 Installment and other loans: Payment performance Performing $ 718 $ 457 $ 357 $ 118 $ 861 $ 1,350 $ 6,516 $ — $ 10,377 Nonperforming — — — — 19 5 4 — 28 Total Installment and other loans $ 718 $ 457 $ 357 $ 118 $ 880 $ 1,355 $ 6,520 $ — $ 10,405 Current period gross charge offs - installment and other $ 139 $ 24 $ — $ — $ 4 $ 10 $ 21 $ — $ 198 The information presented in the table above is not required for periods prior to the adoption of CECL. The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at December 31, 2022, which presents the most comparable required information. Prior to the adoption of CECL, PCD loans were classified as PCI loans and accounted for under ASC 310-30. In accordance with the CECL standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the adoption date. At September 30, 2023, the amortized cost of the PCD loans was $8.8 million. Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful PCI Loans Total December 31, 2022 Commercial real estate: Owner occupied $ 305,159 $ 2,109 $ 3,532 $ 2,767 $ — $ 2,203 $ 315,770 Non-owner occupied 601,244 4,243 2,273 — — 283 608,043 Multi-family 130,851 7,739 242 — — — 138,832 Non-owner occupied residential 102,674 810 482 81 — 557 104,604 Acquisition and development: 1-4 family residential construction 25,068 — — — — — 25,068 Commercial and land development 142,424 458 — 15,426 — — 158,308 Commercial and industrial 331,103 17,579 7,013 31 — 2,048 357,774 Municipal 12,173 — — — — — 12,173 Residential mortgage: First lien 222,849 — 215 2,520 — 4,265 229,849 Home equity - term 5,485 — — 5 — 15 5,505 Home equity - lines of credit 182,801 — 45 395 — — 183,241 Installment and other loans 12,017 — — 40 — 8 12,065 $ 2,073,848 $ 32,938 $ 13,802 $ 21,265 $ — $ 9,379 $ 2,151,232 For commercial real estate, acquisition and development, commercial and industrial and municipal segments, a loan is evaluated individually 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 individually evaluated. Generally, loans that are more than 90 days past due will be individually evaluated for a specific reserve. 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 are, by definition, deemed to be individually evaluated under CECL. A specific reserve allocation for individually evaluated loans is measured on a loan-by-loan basis for commercial and construction 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 experiencing financial difficulty for extended periods of time, periodic updates on fair values are obtained, which may include updated appraisals. Updated fair values are incorporated into the analysis in the next reporting period. Loan charge-offs, which may include partial charge-offs, are taken on an individually evaluated loan that is collateral dependent if the carrying balance of the loan exceeds the appraised value of the collateral, the loan has been placed on nonaccrual status or identified as uncollectible, and it is deemed to be a confirmed loss. Typically, loans with a charge-off or partial charge-off will continue to be individually evaluated. Generally, an individually evaluated loan with a partial charge-off may continue to have a specific reserve on it after the partial charge-off, if factors warrant. At September 30, 2023, the Company’s individually evaluated loans were measured based on the estimated fair value of the collateral securing the loan, except for purchased auto loans on nonaccrual status and accruing loans accounted for as TDRs prior to the adoption of ASU 2022-02. At December 31, 2022, except for TDRs, the Company's individually evaluated loans were measured based on the estimated fair value of the collateral securing the loan. Prior to the adoption of ASU 2022-02, by definition, TDRs were considered impaired and the related impairment analyses were initially based on discounted cash flows. For real estate loans, collateral generally consists of commercial or residential 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, secured by commercial real estate, 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, commercial loans secured by real estate that are evaluated individually 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 credit expected losses, 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 loans evaluated individually 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 for both loans individually and collectively evaluated, 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 an individually evaluated loan. 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, commercial and industrial and municipal loans rated substandard to be collectively evaluated for credit expected losses. 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 credit expected losses. Generally, the Company does not separately identify individual residential mortgage and installment and other consumer loans for disclosures, unless such loans are the subject of a modified agreement due to financial difficulties of the borrower. The following table presents the amortized cost basis of nonaccrual loans, according to loan class, with and without reserves on individually evaluated loans as of September 30, 2023, as compared to nonaccrual loans at December 31, 2022. The Company did not recognize interest income on nonaccrual loans during the three and nine months ended September 30, 2023. September 30, 2023 December 31, 2022 Nonaccrual loans with a related ACL Nonaccrual loans with no related ACL Total nonaccrual loans Loans Past Due 90+ Accruing Total nonaccrual loans Commercial real estate: Owner-occupied $ — $ 16,800 $ 16,800 $ — $ 2,767 Non-owner occupied — 252 252 — — Non-owner occupied residential — 288 288 — 81 Acquisition and development: Commercial and land development — 1,417 1,417 — 15,426 Commercial and industrial — 662 662 — 31 Residential mortgage: First lien — 2,025 2,025 277 1,838 Home equity – term — 3 3 — 5 Home equity – lines of credit — 849 849 — 395 Installment and other loans 4 24 28 — 40 Total $ 4 $ 22,320 $ 22,324 $ 277 $ 20,583 A loan is considered to be collateral-dependent when the borrower is experiencing financial difficulty and the repayment is expected to be provided substantially through the operation or sale of collateral. At September 30, 2023, substantially all individually evaluated loans were collateral-dependent and consisted primarily of commercial real estate, acquisition and development and residential mortgage loans, which were primarily secured by commercial or residential real estate. All of the Company’s collateral-dependent loans had appraised collateral values which exceeded the amortized cost basis of the related loan as of September 30, 2023. The following table presents the amortized cost basis of collateral-dependent loans by class as of September 30, 2023: Type of Collateral Business Assets Commercial Real Estate Equipment Land Residential Real Estate Other Total Commercial real estate: Owner occupied $ — $ 16,800 $ — $ — $ — $ — $ 16,800 Non-owner occupied — 252 — — — — 252 Non-owner occupied residential — 288 — — — — 288 Acquisition and development: Commercial and land development — 1,417 — — — — 1,417 Commercial and industrial 654 — 8 — — — 662 Residential mortgage: First lien — — — — 1,940 — 1,940 Home equity - term — — — — 3 — 3 Home equity - lines of credit — — — — 849 — 849 Installment and other loans — — — — — 4 4 Total $ 654 $ 18,757 $ 8 $ — $ 2,792 $ 4 $ 22,215 The information presented above in the nonaccrual loan table and the collateral-dependent table are not required for periods prior to the adoption of CECL. The following table, which excludes accruing PCI loans, presents the most comparable required information at December 31, 2022, which 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 December 31, 2022. The recorded investment in loans excludes accrued interest receivable. 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) December 31, 2022 Commercial real estate: Owner-occupied $ — $ — $ — $ 2,767 $ 3,799 Non-owner occupied residential — — — 81 207 Acquisition and development: Commercial and land development — — — 15,426 15,426 Commercial and industrial — — — 31 112 Residential mortgage: First lien 178 178 28 2,342 3,126 Home equity—term — — — 5 8 Home equity—lines of credit — — — 395 684 Installment and other loans — — — 40 40 $ 178 $ 178 $ 28 $ 21,087 $ 23,402 The following table, which excludes accruing PCI loans, presents the most comparable required information for the prior comparative periods and summarizes the average recorded investment in impaired loans and related recognized interest income for the three and nine months ended September 30, 2022: September 30, 2022 Average Interest Three Months Ended September 30, Commercial real estate: Owner-occupied $ 2,881 $ — Non-owner occupied residential 93 — Commercial and industrial 51 — Residential mortgage: First lien 2,390 10 Home equity – term 5 — Home equity - lines of credit 382 — Installment and other loans 43 — $ 5,845 $ 10 Nine Months Ended September 30, Commercial real estate: Owner occupied $ 3,126 $ — Non-owner occupied residential 100 — Commercial and industrial 132 — Residential mortgage: First lien 2,370 25 Home equity - term 6 — Home equity - lines of credit 407 — Installment and other loans 45 — $ 6,186 $ 25 On January 1, 2023, the Company adopted ASU 2022-02 on a modified retrospective basis. ASU 2022-02 eliminates the TDR accounting model, and requires that the Company evaluate, based on the accounting for loan modifications, whether the borrower is experiencing financial difficulty and the modification results in a more-than-insignificant direct change in the contractual cash flows and represents a new loan or a continuation of an existing loan. This change required all loan modifications to be accounted for under the general loan modification guidance in ASC 310-20, Receivables – Nonrefundable Fees and Other Costs, and subject entities to new disclosure requirements on loan modifications to borrowers experiencing financial difficulty. Upon adoption of CECL, the TDRs were evaluated and included in the CECL loan segment pools if the loans shared similar risk characteristics to other loans in the pool or remained with individually evaluated loans for which the ACL was measured using the collateral-dependent or discounted cash flow method. The Company may modify loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, interest rate reduction or an other-than-insignificant payment delay. When principal forgiveness is provided, the amount of forgiveness is charged off against the ACL. The Company may also provide multiple types of modifications on an individual loan. For the nine months ended September 30, 2023, the Company did not extend any modifications to borrowers experiencing financial difficulty that had a more-than-insignificant direct change in the contractual cash flows of the loan. The following table presents the most comparable required information for impaired loans that were TDRs, with the recorded investment at December 31, 2022: December 31, 2022 Number of Recorded Accruing: Residential mortgage: First lien 8 $ 682 Nonaccruing: Residential mortgage: First lien 4 212 Installment and other loans 1 2 5 214 13 $ 896 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 the loan portfolio summarized by aging categories at September 30, 2023: 30-59 Days Past Due 60-89 Days Past D |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
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 4 to 30 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 summarizes the Company's operating leases at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Operating lease ROU assets $ 11,053 $ 9,270 Operating lease ROU liabilities 11,821 9,976 Weighted-average remaining lease term (in years) 15.2 14.3 Weighted-average discount rate 4.3 % 4.1 % The following table presents information related to the Company's operating leases for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Cash paid for operating lease liabilities $ 319 $ 300 $ 890 $ 889 Operating lease expense 337 347 948 1,090 The following table presents expected future maturities of the Company's lease liabilities as of September 30, 2023: 2023 $ 334 2024 1,349 2025 1,371 2026 1,403 2027 1,437 Thereafter 11,381 17,275 Less: imputed interest 5,454 Total lease liabilities $ 11,821 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS At September 30, 2023 and December 31, 2022, goodwill was $18.7 million. No impairment charges were recorded in the three and nine months ended September 30, 2023 and 2022. 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. The Company conducted its last annual goodwill impairment test as of November 30, 2022 using generally accepted valuation methods. As a result of that impairment test, no goodwill impairment was identified. During the nine months ended September 30, 2023, the market and banking sector was impacted by the rising interest rates and current economic conditions, which caused the Company's stock price and market capitalization to decline. The Company performed a qualitative assessment, which indicated that it was more likely than not that the fair value exceeded its carrying value, resulting in no impairment charge for the nine months ended September 30, 2023. Management will continue to evaluate the economic conditions for any potential applicable changes. The following table presents changes in and components of other intangible assets for the three and nine months ended September 30, 2023 and 2022. During the three months ended September 30, 2023, the Company acquired an investment advisory firm and related accounts with assets under management of approximately $67.2 million. In connection with this acquisition, the Company recorded an intangible asset totaling $289 thousand associated with the customer list. No impairment charges were recorded on other intangible assets during the three and nine months ended September 30, 2023 and September 30, 2022. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Beginning of period $ 2,589 $ 3,610 $ 3,078 $ 4,183 Acquired customer list 289 — 289 — Amortization expense (228) (272) (717) (845) Balance, end of period $ 2,650 $ 3,338 $ 2,650 $ 3,338 The following table presents the components of other identifiable intangible assets at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Gross Amount Accumulated Gross Amount Accumulated Amortized intangible assets: Core deposit intangibles $ 8,390 $ 6,029 $ 8,390 $ 5,312 Other customer relationship intangibles 289 — 25 25 Total $ 8,679 $ 6,029 $ 8,415 $ 5,337 The following table presents future estimated aggregate amortization expense for other identifiable intangible assets at September 30, 2023: 2023 $ 291 2024 827 2025 648 2026 468 2027 289 Thereafter 127 $ 2,650 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023, 1,281,920 shares of the common stock of the Company were reserved, of which 422,358 shares are 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 following table presents a summary of nonvested restricted shares activity for the nine months ended September 30, 2023: Shares Weighted Average Grant Date Fair Value Nonvested shares, beginning of year 284,909 $ 22.35 Granted 148,501 23.57 Forfeited (33,832) 22.58 Vested (107,466) 22.56 Nonvested shares, at period end 292,112 $ 22.87 The following table presents restricted share compensation expense, with tax benefit information, and fair value of shares vested, for the three and nine months ended September 30, 2023 and 2022: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Restricted share award expense $ 606 $ 602 $ 1,756 $ 1,461 Restricted share award tax benefit 127 126 369 307 Fair value of shares vested — 71 2,460 1,935 The unrecognized compensation expense related to the share awards totaled $3.9 million at September 30, 2023 and $3.0 million at December 31, 2022. The unrecognized compensation expense at September 30, 2023 is expected to be recognized over a weighted-average period of 1.8 years. The Company maintains an employee stock purchase plan to provide employees of the Company with an opportunity to purchase Company common stock. Eligible employees may purchase shares in an amount that does not exceed the lesser of the IRS limit of $25,000 or 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, 2023, 139,146 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, 2023 and 2022: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Shares purchased 3,446 4,154 6,449 8,107 Weighted average price of shares purchased $ 20.52 $ 22.60 $ 21.14 $ 22.53 Compensation expense recognized 4 13 7 21 The Company issues new shares or treasury shares, depending on market conditions, in its share-based compensation plans. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risks 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 may enter 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 investment securities and 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 uses interest rate swaps and interest rate caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed or variable amounts from a counterparty in exchange for the Company making variable-rate or fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company, however, discontinues cash flow hedge accounting if it is probable the forecasted hedged transactions will not occur in the initially identified time period due to circumstances. Upon discontinuance, the associated gains and losses deferred in AOCI are reclassified immediately into earnings and subsequent changes in the fair value of the cash flow hedge are recognized in earnings. The Company entered into one new interest rate swap designed as a hedging instrument with a notional value of $75.0 million during the nine months ended September 30, 2023. At September 30, 2023, the Company had two interest rate swaps designated as hedging instruments with a total notional value of $125.0 million for the purpose of hedging the variable cash flows of selected AFS securities or loans or hedging variable cash flows associated with the Company's borrowings compared to two interest rate swaps designated as hedging instruments with a total notional value of $100.0 million at December 31, 2022 for the purpose of hedging the variable cash flows of selected AFS securities. During the three months ended September 30, 2023, the Company had one interest rate swap designated as a hedging instrument mature with a total notional value of $50.0 million. The Company enters into interest rate swap agreements 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. In addition, the Company may enter into interest rate caps that allow its commercial loan customers to gain protection against significant interest rate increases and provide a upper limit, or cap, on the variable interest rate. The Company then enters into a corresponding swap or cap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps and interest rate caps with both the customers and third parties are not designated as hedges and are marked through earnings. At September 30, 2023, the Company had 31 customer and 31 corresponding third-party broker interest rate derivatives not designated as a hedging instrument with an aggregate notional amount of $319.5 million, compared to $268.8 million in notional amount of such derivative instruments at December 31, 2022. The Company entered into four new interest rate swaps with its commercial loan customers and recognized swap fee income of $255 thousand during the three months ended September 30, 2023 and six new interest rate swaps that resulted in swap fee income $451 thousand during the nine months ended September 30, 2023. This is compared to four new interest rate swaps that resulted in swap fee income of $197 thousand during the three months ended September 30, 2022 and nine new interest rate swaps that resulted in swap fee income of $1.9 million during the nine months ended September 30, 2022. Swap fee income is included in noninterest income in the unaudited condensed consolidated statements of income. At September 30, 2023 and December 31, 2022, the Company had cash collateral of $9.7 million and $5.4 million with the third parties for certain of these derivatives, respectively. At September 30, 2023 and December 31, 2022, the Company received cash collateral of $16.1 million and $8.5 million from a counterparty for these derivatives, respectively. The Company also may enter into risk participation agreements with a financial institution counterparty for an interest rate derivative contract related to a loan in which the Company may be a participant or the agent bank. The risk participation agreement provides credit protection to the agent bank should the borrower fail to perform on its interest rate derivative contracts with the agent bank. The Company manages its credit risk on the risk participation agreement by monitoring the creditworthiness of the borrower, which is based on the same credit review process as though the Company had entered into the derivative instruments directly with the borrower. The notional amount of such risk participation agreement reflects the Company’s pro-rata share of the derivative instrument, consistent with its share of the related participated loan. At September 30, 2023 and December 31, 2022, the Company had four risk participation agreements with sold protection with a notional value of $32.6 million and $29.0 million, respectively. In addition, the Company had a risk participation with purchased protection with a notional value of $4.9 million at both September 30, 2023 and December 31, 2022. The Company did not enter into any risk participation agreements during the three and nine months ended September 30, 2023 compared to one new risk participation agreement with purchased protection with a notional value of $4.9 million during the three and nine months ended September 30, 2022. There was no upfront fee on the new risk participation during the three and nine months ended September 30, 2022. 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 may enter into a corresponding commitment with 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 loans. The fair value of held for sale loans can vary based on the interest rate locked with the customer and the current market interest rate at the balance sheet date. The following table summarizes the fair value of the Company's derivative instruments at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 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 $ 75,000 Other assets $ 2,616 n/a n/a n/a Interest rate swaps - balance sheet hedge $ 50,000 Other liabilities $ (758) $ 100,000 Other liabilities $ (973) Total derivatives designated as hedging instruments $ 1,858 $ (973) Derivatives not designated as hedging instruments: Interest rate swaps $ 153,828 Other assets $ 13,911 $ 128,385 Other assets $ 10,437 Interest rate swaps 153,828 Other liabilities (13,517) 128,385 Other liabilities (10,262) Purchased options – rate cap 5,932 Other assets 21 6,000 Other assets 29 Written options – rate cap 5,932 Other liabilities (21) 6,000 Other liabilities (29) Risk participations - sold credit protection 32,588 Other liabilities (32) 29,019 Other liabilities (69) Risk participations - purchased credit protection 4,864 Other assets 5 4,941 Other assets 16 Interest rate lock commitments with customers 593 Other assets 15 1,356 Other assets 35 Forward sale commitments 150 Other assets 2 3,483 Other assets 140 Total derivatives not designated as hedging instruments $ 384 $ 297 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, 2023 and 2022: Amount of Gain (Loss) Recognized in OCI on Derivative Amount of Gain (Loss) Recognized in OCI on Derivative Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Interest rate products $ 1,439 $ (562) $ 2,831 $ (562) Total $ 1,439 $ (562) $ 2,831 $ (562) Amount of Loss Reclassified from AOCI 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, 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Interest rate products $ — $ — $ — $ — Interest income Total $ — $ — $ — $ — 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, 2023 2022 2023 2022 Derivatives not designated as hedging instruments: Interest rate products $ 307 $ 179 $ 188 $ 309 Other operating expenses Risk participation agreements 31 (11) 58 19 Other operating expenses Interest rate lock commitments with customers (52) (98) (20) (265) Mortgage banking activities Forward sale commitments — (610) (139) 21 Mortgage banking activities Total $ 286 $ (540) $ 87 $ 84 The following table is a summary of components for interest rate swaps designated as hedging instruments at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Weighted average pay rate 4.22 % 3.81 % Weighted average receive rate 4.68 % 3.81 % Weighted average maturity in years 3.1 1.2 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | SHORT-TERM BORROWINGS The Company has short-term borrowing capability from the FHLB, federal funds purchased and the FRB discount window. The following table summarizes these short-term borrowings at September 30, 2023 and December 31, 2022, and for the nine and twelve months then ended: September 30, 2023 December 31, 2022 Balance at period-end $ 117,250 $ 104,684 Weighted average interest rate during the period 5.68 % 4.45 % Average balance during the period $ 87,245 $ 13,846 Average interest rate during the period 5.35 % 3.97 % Maximum month-end balance during the period $ 120,984 $ 104,684 |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The following table presents components of the Company’s long-term debt at September 30, 2023 and December 31, 2022: Amount Weighted Average Rate September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 FHLB fixed rate advances maturing: 2025 $ 15,000 $ — 4.57 % — % 2028 25,000 — 3.98 % — % 40,000 — 4.20 % — % Total FHLB amortizing advance requiring monthly principal and interest payments, maturing: 2025 — 1,455 — % 4.74 % Total FHLB Advances $ 40,000 $ 1,455 4.20 % 4.74 % The Bank is a member of the FHLB of Pittsburgh and has access to the FHLB program of overnight and term advances. Under terms of a blanket collateral agreement for advances, lines and letters of credit from the FHLB, collateral for all outstanding advances, lines and letters of credit consisted of 1-4 family mortgage loans and other real estate secured loans totaling $1.1 billion at September 30, 2023. The Bank had additional availability of $917.5 million at the FHLB on September 30, 2023 based on its qualifying collateral, net of short-term borrowings and long-term debt detailed above, deposit letters of credit of $26.0 million and non-deposit letters of credit of $609 thousand at September 30, 2023. At September 30, 2023 and December 31, 2022 , the Bank had availability under FHLB lines totaling $43.2 million and $45.3 million , respectively. |
SHAREHOLDERS' EQUITY AND REGULA
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL | 9 Months Ended |
Sep. 30, 2023 | |
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 gains or losses included in AOCI in computing regulatory capital. On January 1, 2023, the Company adopted ASU No. 2016-13, which replaced the existing incurred loss model for recognizing credit losses with an expected loss model referred to as the CECL model, and resulted in a reduction to opening retained earnings, net of income tax, and an increase to the allowance for credit losses for loans of approximately $2.4 million and allowance for credit losses for off-balance sheet exposures of $100 thousand, which combined totals $2.5 million. The federal bank regulatory agencies issued a rule, which provided for the option to elect a three-year transition provision of the day-one impact of the CECL model beginning with regulatory capital at March 31, 2023. The Company elected the three-year phase in option. The Company and the Bank met all capital adequacy requirements to which they are subject at September 30, 2023 and December 31, 2022. 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, 2023, 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, 2023 and December 31, 2022: Actual For Capital Adequacy Purposes To Be Well Amount Ratio Amount Ratio Amount Ratio September 30, 2023 Total risk-based capital: Orrstown Financial Services, Inc. $ 326,549 13.0 % $ 263,141 10.5 % n/a n/a Orrstown Bank 313,992 12.5 % 263,085 10.5 % $ 250,557 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 266,370 10.6 % 213,019 8.5 % n/a n/a Orrstown Bank 285,889 11.4 % 212,974 8.5 % 200,446 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 266,370 10.6 % 175,427 7.0 % n/a n/a Orrstown Bank 285,889 11.4 % 175,390 7.0 % 162,862 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 266,370 8.7 % 122,433 4.0 % n/a n/a Orrstown Bank 285,889 9.3 % 122,433 4.0 % 153,041 5.0 % December 31, 2022 Total risk-based capital: Orrstown Financial Services, Inc. $ 304,589 12.7 % $ 250,939 10.5 % n/a n/a Orrstown Bank 292,933 12.3 % 250,566 10.5 % $ 238,634 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 245,752 10.3 % 203,141 8.5 % n/a n/a Orrstown Bank 266,122 11.2 % 202,839 8.5 % 190,907 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 245,752 10.3 % 167,293 7.0 % n/a n/a Orrstown Bank 266,122 11.2 % 167,044 7.0 % 155,112 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 245,752 8.5 % 116,325 4.0 % n/a n/a Orrstown Bank 266,122 9.2 % 116,219 4.0 % 145,273 5.0 % The Company maintains a stockholder dividend reinvestment and stock purchase plan. Under the plan, shareholders may purchase additional shares of the Company’s common stock at the prevailing market prices with reinvested dividends and voluntary cash payments. The Company reserved 1,045,000 shares of its common stock to be issued under the dividend reinvestment and stock purchase plan. At September 30, 2023, approximately 665,000 shares were available to be issued under the plan. In September 2015, the Board of Directors of the Company authorized a share repurchase program pursuant to which the Company could repurchase up to 416,000 shares of the Company's outstanding shares of common stock, in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act, as amended. On April 19, 2021, the Board of Directors authorized the additional repurchase of up to 562,000 shares of its outstanding common stock for a total of 978,000 shares. When and if appropriate, repurchases may be made in the 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. For the three months ended September 30, 2023, the Company repurchased zero shares of its common stock. At September 30, 2023, 949,533 shares had been repurchased at a total cost of $21.2 million, or $22.36 per share. Common stock available for future repurchase totals 28,467 shares, or 0.3% of the Company's outstanding common stock at September 30, 2023. On October 24, 2023, the Board of Directors declared a cash dividend of $0.20 per common share, which will be paid on November 14, 2023 to shareholders of record at November 7, 2023. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The following table presents earnings (loss) per share for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, (shares presented in the table are in thousands) 2023 2022 2023 2022 Net income (loss) $ 9,026 $ (4,828) $ 28,020 $ 12,411 Weighted average shares outstanding - basic 10,319 10,369 10,346 10,611 Dilutive effect of share-based compensation 86 — 94 147 Weighted average shares outstanding - diluted 10,405 10,369 10,440 10,758 Per share information: Basic earnings (loss) per share $ 0.87 $ (0.47) $ 2.71 $ 1.17 Diluted earnings (loss) per share 0.87 (0.47) 2.68 1.16 For the three and nine months ended September 30, 2023, there were average outstanding restricted award shares totaling 5,262 and 8,348, respectively, compared to 1,000 and 39,219 for the three and nine months ended September 30, 2022, respectively, excluded from the computation of earnings (loss) per share because the effect was antidilutive, as the grant price exceeded the average market price. The dilutive effect of share-based compensation in each period above relates principally to restricted stock awards. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 9 Months Ended |
Sep. 30, 2023 | |
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 clients. 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 unaudited condensed 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 at September 30, 2023 and December 31, 2022. Contractual or Notional Amount September 30, 2023 December 31, 2022 Commitments to fund: Home equity lines of credit $ 324,248 $ 296,213 1-4 family residential construction loans 50,332 49,538 Commercial real estate, construction and land development loans 159,107 156,560 Commercial, industrial and other loans 335,685 338,286 Standby letters of credit 21,960 23,229 Commitments to extend credit are agreements to lend to a client 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 the 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 client’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 client. 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 client 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 loans to clients. The Company holds collateral supporting those commitments when deemed necessary by management. The liability at September 30, 2023 and December 31, 2022 for guarantees under standby letters of credit issued was not considered to be material. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2023 | |
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, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, investment 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 investment securities include U.S. agency securities, MBS, 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, investment securities are classified within Level 3 of the valuation hierarchy. The Company’s investment securities are classified as available-for-sale. The fair values of interest rate swaps and risk participation derivatives are determined using models that incorporate readily observable market data into a market standard methodology. This methodology nets the discounted future cash receipts and the discounted expected cash payments. The discounted variable cash receipts and payments are based on expectations of future interest rates derived from observable market interest rate curves. In addition, fair value is adjusted for the effect of nonperformance risk by incorporating credit valuation adjustments for the Company and its counterparties. These assets and liabilities are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. The following table summarizes assets and liabilities measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022: Level 1 Level 2 Level 3 Total Fair September 30, 2023 Financial Assets Investment securities: U.S. Treasury securities $ 17,143 $ — $ — $ 17,143 U.S. Government Agencies — 4,322 — 4,322 States and political subdivisions — 182,522 5,595 188,117 GSE residential MBSs — 57,351 — 57,351 GSE commercial MBSs — 4,778 — 4,778 GSE residential CMOs — 72,037 — 72,037 Non-agency CMOs — 17,521 21,458 38,979 Asset-backed — 112,315 — 112,315 Other 120 — — 120 Loans held for sale — 6,448 — 6,448 Derivatives — 16,553 15 16,568 Totals $ 17,263 $ 473,847 $ 27,068 $ 518,178 Financial Liabilities Derivatives $ — $ 14,328 $ — $ 14,328 December 31, 2022 Financial Assets Investment securities: U.S. Treasury securities $ 17,291 $ — $ — $ 17,291 U.S. Government Agencies — 5,135 — 5,135 States and political subdivisions — 191,488 5,926 197,414 GSE residential MBSs — 59,402 — 59,402 GSE residential CMOs — 68,378 — 68,378 Non-agency CMOs — 18,491 21,267 39,758 Asset-backed — 125,973 — 125,973 Other 377 — — 377 Loans held for sale — 10,880 — 10,880 Derivatives — 10,482 35 10,517 Totals $ 17,668 $ 490,229 $ 27,228 $ 535,125 Financial Liabilities Derivatives $ — $ 11,333 $ — $ 11,333 The Company had one municipal bond and three CMOs measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at both September 30, 2023 and December 31, 2022 compared to one municipal bond at September 30, 2022. During the nine months ended September 30, 2022, the Company had one non-agency CMO security called by the issuer. 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. The Company’s residential mortgage LHFS are 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 was below the aggregate principal balance by $1.4 million and $1.2 million as of September 30, 2023, and December 31, 2022, respectively. 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 92% as of September 30, 2023. An increase or decrease of 5% in the pull through assumption would result in a positive or negative change of $1 thousand in the fair value of interest rate lock commitments at September 30, 2023. The following provides details of the Level 3 fair value measurement activity for the periods ended September 30, 2023 and 2022: Investment securities: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, beginning of period $ 27,994 $ 6,255 $ 27,193 $ 23,147 Unrealized losses included in OCI (736) (422) (600) (2,002) Purchases — — 871 — Net discount accretion (premium amortization) 19 (4) 42 62 Principal payments and other (225) — (454) — Sales — — — (3,053) Calls — — — (12,154) OTTI — — — (171) Balance, end of period $ 27,052 $ 5,829 $ 27,052 $ 5,829 Interest rate lock commitments on residential mortgages: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, beginning of period $ 67 $ 186 $ 35 $ 353 Total losses included in earnings (52) (98) (20) (265) Balance, end of period $ 15 $ 88 $ 15 $ 88 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. Individually Evaluated Loans Upon adoption of CECL, loans individually evaluated for credit expected losses included nonaccrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools, which have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the unaudited condensed consolidated statements of income. Prior to the adoption of CECL and ASU No. 2022-02, which eliminated the TDR accounting model, loans were 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 loans evaluated individually for all loan classes was based on either the observable market price of the loan, the fair value of the collateral, or discounted cash flows. For collateral-dependent loans, fair value was 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). Changes in the fair value of individually evaluated loans still held and considered in the determination of the provision for credit losses were a decline of $224 thousand and an increase of $286 thousand for the three and nine months ended September 30, 2023, respectively, compared to zero and a decline of $40 thousand for the three and nine months ended September 30, 2022, respectively. Mortgage Servicing Rights MSRs are evaluated for impairment by comparing the carrying value to the fair value, which is determined through a discounted cash flow valuation. To the extent the amortized cost of the MSRs exceeds their estimated fair values, a valuation allowance is established for such impairment. Fair value adjustments on the MSRs only occurs if there is an impairment charge. At September 30, 2023 and December 31, 2022, the MSR impairment reserve was zero for both periods. For both the three months ended September 30, 2023 and 2022, there was no impairment valuation allowance adjustment. The adjustments in the three and nine months ended September 30, 2022 were zero and a $79 thousand reversal, respectively, due to increases in market rates, which increased the MSR fair value. The following table summarizes assets measured at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022: Level 1 Level 2 Level 3 Total September 30, 2023 Individually Evaluated Loans Commercial real estate: Owner occupied $ — $ — $ 88 $ 88 Non-owner occupied residential — — — — Commercial and industrial — — 146 146 Residential mortgage: First lien — — 226 226 Home equity - lines of credit — — 62 62 Total individually evaluated loans $ — $ — $ 522 $ 522 December 31, 2022 Impaired Loans Commercial real estate: Owner occupied $ — $ — $ 116 $ 116 Non-owner occupied residential — — 9 9 Residential mortgage: First lien — — 309 309 Home equity - lines of credit — — 86 86 Total impaired loans $ — $ — $ 520 $ 520 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, 2023 Individually evaluated loans $ 522 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 10% - 25% discount - Management adjustments for liquidation expenses 6.75% - 10.29% discount December 31, 2022 Impaired loans $ 520 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 10% - 25% discount - Management adjustments for liquidation expenses 6.08% - 17.93% discount Fair values of financial instruments GAAP requires disclosure of the fair value of financial assets and liabilities, including those that are not measured and reported at fair value on a recurring or nonrecurring basis. The following table presents carrying amounts and estimated fair values of the financial assets and liabilities at September 30, 2023 and December 31, 2022: Carrying Fair Value Level 1 Level 2 Level 3 September 30, 2023 Financial Assets Cash and due from banks $ 34,728 $ 34,728 $ 34,728 $ — $ — Interest-bearing deposits with banks 60,211 60,211 60,211 — — Restricted investments in bank stock 12,987 n/a n/a n/a n/a Investment securities 495,162 495,162 17,263 450,846 27,053 Loans held for sale 6,448 6,448 — 6,448 — Loans, net of allowance for credit losses 2,238,558 2,083,811 — — 2,083,811 Derivatives 16,568 16,568 — 16,553 15 Accrued interest receivable 12,212 12,212 — 4,338 7,874 Financial Liabilities Deposits 2,546,435 2,542,571 — 2,542,571 — Deposits held for assumption in connection with sale of bank branches — — — — — Securities sold under agreements to repurchase and federal funds purchased 17,991 17,991 — 17,991 — FHLB advances and other borrowings 157,250 156,513 — 156,513 — Subordinated notes 32,076 28,774 — 28,774 — Derivatives 14,328 14,328 — 14,328 — Accrued interest payable 1,783 1,783 — 1,783 — Off-balance sheet instruments — — — — — December 31, 2022 Financial Assets Cash and due from banks $ 28,477 $ 28,477 $ 28,477 $ — $ — Interest-bearing deposits with banks 32,346 32,346 32,346 — — Restricted investments in bank stock 10,642 n/a n/a n/a n/a Investment securities 513,728 513,728 17,668 468,867 27,193 Loans held for sale 10,880 10,880 — 10,880 — Loans, net of allowance for loan losses 2,126,054 1,991,164 — — 1,991,164 Derivatives 10,517 10,517 — 10,482 35 Accrued interest receivable 11,027 11,027 — 4,441 6,586 Financial Liabilities Deposits 2,444,939 2,440,660 — 2,440,660 — Deposits held for assumption in connection with sale of bank branches 31,307 29,429 — 29,429 — Securities sold under agreements to repurchase 17,251 17,251 — 17,251 — FHLB advances and other borrowings 106,139 106,141 — 106,141 — Subordinated notes 32,026 31,321 — 31,321 — Derivatives 11,333 11,333 — 11,333 — Accrued interest payable 457 457 — 457 — Off-balance sheet instruments — — — — — 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, 2023 and December 31, 2022 represent an approximation of exit price; however, an actual exit price may differ. At December 31, 2022, deposits held for assumption in connection with the sale of bank branches includes the balance from the Purchase and Assumption Agreement entered into by the Company and announced on December 23, 2022. This agreement provided for the sale of a branch and associated deposit liabilities at an agreed upon premium of 6.0% of the financial deposit balance transferred. The Company completed the sale of the subject branch on May 12, 2023. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
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 25, 2022, a customer of the Bank filed a putative class action complaint against the Bank in the Court of Common Pleas of Cumberland County, Pennsylvania, in a case captioned Alleman, on behalf of himself and all others similarly situated, v. Orrstown Bank . The complaint alleges, among other things, that the Bank breached its account agreements by charging certain overdraft fees. The complaint seeks a refund of all allegedly improper fees, damages in an amount to be proven at trial, attorneys’ fees and costs, and an injunction against the Bank’s allegedly improper overdraft practices. This lawsuit is similar to lawsuits recently filed against other financial institutions pertaining to overdraft fee disclosures. The Bank intends to vigorously defend itself against the claims brought by plaintiff in this matter. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 9,026 | $ (4,828) | $ 28,020 | $ 12,411 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 providing banking and financial advisory services in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania, and in Anne Arundel, Baltimore, Howard and Washington Counties, 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’s lending area also includes adjacent counties in Pennsylvania and Maryland, as well as Loudon County, Virginia and Berkeley, Jefferson and Morgan Counties, West Virginia. The Company also provides fiduciary services, investment advisory, insurance and brokerage services. 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. There have been no material changes to the Company's significant accounting policies for the nine months ended September 30, 2023, except for the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces our ALL policy under the incurred loss model, and adoption of ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which replaces our TDR accounting model policy, which are both discussed below in Recently Adopted Accounting Standards. The December 31, 2022 consolidated balance sheet information contained in this Quarterly Report on Form 10-Q was derived from the Company's 2022 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, 2022. Operating results for the nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. All significant intercompany transactions and accounts have been eliminated. Certain reclassifications have been made to the prior period amounts to conform with current period classifications. These reclassifications did not have a material impact on the Company's consolidated financial condition, results of operations or statement of consolidated cash flows. 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. To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. |
Derivatives | Derivatives - FASB ASC 815, Derivatives and Hedging (“ASC 8 15”), 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 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 or variable amounts from a counterparty in exchange for the Company making variable-rate or fixed rate payments over the life of the agreements without exchange of the underlying notional amount. Changes to the fair value of derivatives designated and that qualify as cash flow hedges are recorded in AOCI and are subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The Company discontinues cash flow hedge accounting if it is probable the forecasted hedged transactions will not occur in the initially identified time period due to circumstances. Upon discontinuance, the associated gains and losses deferred in AOCI are reclassified immediately into earnings and subsequent changes in the fair value of the cash flow hedge are recognized in earnings. At September 30, 2023, the Company had two interest rate swaps designated as hedging instruments with a total notional value of $125.0 million compared to two interest rate swaps designated as hedging instruments with a total notional value of $100.0 million at December 31, 2022. 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 and interest rate caps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps and interest rate caps 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. At September 30, 2023 and December 31, 2022, the Company had interest rate swaps not designated as hedges with a total notional value of $319.5 million and $268.8 million, respectively. The Company also may enter into risk participation agreements with a financial institution counterparty for an interest rate derivative contract related to a loan in which the Company may be a participant or the agent bank. The risk participation agreement provides credit protection to the agent bank should the borrower fail to perform on its interest rate derivative contracts with the agent bank. The Company manages its credit risk on risk participation agreements by monitoring the creditworthiness of the borrower, which follows the same credit review process as derivative instruments entered into directly with the borrower. The notional amount of a risk participation agreement reflects the Company's pro-rata share of the derivative instrument, consistent with its share of the related participated loan. Changes in the fair value of the risk participation agreement are recognized directly into earnings. At September 30, 2023 and December 31, 2022, the Company had four risk participations with sold protection with a total notional value of $32.6 million and $29.0 million, respectively, and a risk participation with purchased protection with a notional value of $4.9 million at both September 30, 2023 and December 31, 2022. 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 may enter into a corresponding commitment with 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 held for sale loans. The fair value of held for sale loans can vary based on the interest rate locked with the customer and the current market interest rate at the balance sheet date. At September 30, 2023 and December 31, 2022, the Company had interest rate lock commitments with a notional value of $593 thousand and $1.4 million, respectively, and forward sale loan commitments with a notional value of $150 thousand and $3.5 million, respectively. |
Recently Adopted Accounting Standards and Reference Rate Reform | Recently Adopted Accounting Standards Allowance for Credit Losses In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") . On January 1, 2023, the Company adopted ASU 2016-13, the current expected credit losses accounting standard commonly referred to as "CECL," which replaces the incurred loss model with the lifetime expected loss model. The CECL methodology requires an organization to measure all expected credit losses over the contractual term for financial assets measured at amortized cost, including loan receivables and held-to-maturity securities, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The CECL methodology also applies to off-balance sheet credit exposures not accounted for as insurance (e.g., loan commitments, standby letters of credit, financial guarantees and other similar instruments), net investments in leases recognized by a lessor in accordance with ASC Topic 842 on leases and AFS debt securities. To implement the new standard, the Company established a cross-discipline governance structure, which included a dedicated working group and a CECL Committee consisting of members from different functions including Finance, Credit, Risk and Lending, who provided implementation oversight and reviewed policy elections, key assumptions, processes, and model results. The working group was responsible for the implementation process that included developing the loan segmentation, data sourcing and validation, loss driver inputs, qualitative factors, parallel model runs, scenario testing and back testing. The Company utilized a third-party vendor to assist in the implementation process of its new model to calculate credit losses over the estimated life of the applicable financial assets. The Company elected to use the discounted cash flow (“DCF”) methodology for the quantitative analysis for the majority of its loan segments, which applies the probability of default and loss given default factors to future cash flows, and then adjusts to the net present value to derive the required reserve. Reasonable and supportable macroeconomic conditions include unemployment and GDP. Model assumptions include the discount rate, prepayments and curtailments. The development and validation of credit models also included determining the length of the reasonable and supportable forecast and regression period and utilizing national peer group historical loss rates. For the consumer loan segments, the remaining life methodology was selected as a practical expedient and based on the risk characteristics. The implementation also included review of model runs and certain assumptions, documentation of policies, procedures and controls, and engagement of another third-party consultant for model validation. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the ACL for loans by $2.4 million and increased the off-balance sheet credit exposures reserve by $100 thousand. Retained earnings, net of deferred taxes, decreased by $2.0 million, and deferred tax assets increased by $559 thousand. Results for reporting periods beginning after January 1, 2023 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the ACL is presented at the loan segment level: January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial loans: Commercial real estate $ 13,558 $ 16,415 $ 2,857 Acquisition and development 3,214 3,000 (214) Commercial and industrial 4,505 5,433 928 Municipal 24 193 169 Consumer loans: Residential mortgage 3,444 2,323 (1,121) Installment and other 188 237 49 Unallocated reserve 245 — (245) Allowance for credit losses on loans $ 25,178 $ 27,601 $ 2,423 Liabilities: Allowance for credit losses on off-balance sheet credit exposures $ 1,633 $ 1,733 $ 100 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. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . This update defers the sunset date for applying the reference rate relief by two years to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. In 2021, the administrator of LIBOR delayed the intended cessation date of certain tenors of LIBOR to June 30, 2023. After June 30, 2023, the publication of the one-month, three-month and twelve-month tenors of LIBOR ceased. The Company had a cross-functional working group who led the transition from LIBOR to the adoption of an alternate index. This group identified the loans and financial instruments indexed to LIBOR, verified proper transition language existed in the contracts and executed contractual updates, as needed, with the impacted borrowers. The Company replaced LIBOR, in most cases with the 30-Day Average SOFR or Term SOFR, in its loan agreements and will utilize Fallback Rate SOFR, where prescribed. The implementation of Topic 848 did not have a significant impact on the Company's financial statements. |
Allowance for Credit Losses on Loans | Allowance for Credit Losses on Loans The allowance for credit losses represents the amount that, in management's judgment, appropriately reflects credit losses inherent in the loan portfolio at the balance sheet date. Loans deemed to be uncollectible are charged against the ACL on loans, and subsequent recoveries, if any, are credited to the ACL on loans when received. Changes to the ACL are recorded through the provision for credit losses on loans in the consolidated statement of income. The ACL is maintained at a level considered appropriate to absorb credit losses over the expected life of the loan. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model results for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan classes. The ACL on loans is measured on a collective basis when similar risk characteristics exist within the Company's loan segments between commercial and consumer. For purposes of estimating the Company’s ACL, management generally evaluates collectively evaluated loans by federal call code in order to group loans with similar risk characteristics. Each of these loan segments are broken down into multiple loan classes, which are characterized by loan type, collateral type, risk attributions and the manner in which management monitors the performance of the borrower. The risks associated with lending activities differ and are subject to the impact of change in interest rates, market conditions and the impact on the collateral securing the loans, and general economic conditions. The commercial loan segment includes commercial real estate, acquisition and development, commercial and industrial and municipal loan classes. The consumer loan segment includes residential mortgage, installment and other consumer loans. Loans collectively evaluated includes loans on accrual status, except for loans previously restructured that do not share similar risk characteristics which are individually evaluated. The ACL for loans collectively evaluated is measured using a lifetime expected loss rate model that considers historical loss performance and past events in addition to forecasts of future economic conditions. The Company elected to use the DCF methodology for the quantitative analysis for the majority of its loan segments, which applies the probability of default, using a loss driver model and loss given default factors to future cash flows, and then adjusts to the net present value to derive the required reserve. The probability of default estimates are derived through the application of reasonable and supportable economic forecasts to the regression models, which incorporates the Company's and peer loss-rate data, unemployment rate and GDP. The reasonable and supportable forecasts of the selected economic metrics are then input into the regression model to calculate an expected default rate. The expected default rates are then applied to expected loan balances estimated through the consideration of contractual repayment terms and expected prepayments. The prepayment and curtailment assumptions adjust the contractual terms of the loan to arrive at the expected cash flows. The development and validation of credit models also included determining the length of the reasonable and supportable forecast and regression period and utilizing national peer group historical loss rates. Management selected the national unemployment rate and GDP as the drivers of the quantitative portion of collectively evaluated reserves on loan classes reliant upon the DCF methodology, primarily as a result of high correlation coefficients identified in regression modeling. For the consumer loan segment, the quantitative reserve was calculated using the remaining life methodology where the average historical bank-specific and peer loss rates are applied to expected loan balances over an estimated remaining life of loans. The estimated remaining life is calculated using historical bank-specific loan attrition data. Loans that do not share similar risk characteristics are evaluated on an individual basis, and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on nonaccrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price or the present value of expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loans. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of expected cash flows was less than the amortized cost basis of the loan. Based on management's analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond the quantitatively calculated reserve on collectively evaluated loans. As the quantitative reserve calculation incorporates historical conditions, management may consider an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions. These qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include significant or unexpected changes in: • Lending policies, procedures, underwriting standards and recovery practices; • Nature and volume of loans; • Concentrations of credit; • Collateral valuation trends; • Delinquency and classified loan trends; • Experience, ability and depth of management and lending staff; • Quality of loan review system; and • Economic conditions and other external factors. For PCD loans, the nonaccrual status is determined in the same manner as for other loans. Prior to the adoption of CECL, these PCD loans were classified as PCI loans and accounted for under ASC Subtopic 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30"). In accordance with the CECL standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the adoption date. As permitted by CECL, the Company elected to account for its PCD loans under ASC 310-20, Receivables - Nonrefundable Fees and Other Assets ("ASC 310-20"). These loans are initially recorded at fair value, and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. Under ASC 310-20, the acquired loans are analyzed on an individual asset level, and no longer maintained in pools and accounted for as units of accounts, which would permit treating each pool as a single asset. The impact of this election resulted in loans reported as nonaccrual and individually evaluated for credit expected losses under the CECL methodology. For off-balance sheet credit exposures, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk from the contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures includes consideration of the utilization rates expected on the loan commitments, and estimates the expected credit losses for the undrawn commitments by the loan segments. The ACL on off-balance sheet credit exposures is recorded in other liabilities on the consolidated balance sheets and is adjusted through the provision for credit losses in the consolidated statements of income. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). ASU 2022-02 eliminates the TDR accounting model, and requires that the Company evaluate, based on the accounting for loan modifications, whether the borrower is experiencing financial difficulty and the modification results in a more-than-insignificant direct change in the contractual cash flows and represents a new loan or a continuation of an existing loan, which the Company refers to these loans as "financial difficulty modifications" or "FDMs." This change required all loan modifications to be accounted for under the general loan modification guidance in ASC 310-20, Receivables – Nonrefundable Fees and Other Costs, and subject entities to new disclosure requirements on loan modifications to borrowers experiencing financial difficulty. Upon adoption of CECL, the TDRs were evaluated and included in the CECL loan segment pools if the loans shared similar risk characteristics to other loans in the pool or remained with loans individually evaluated for which the ACL was measured using the collateral-dependent or discounted cash flow method. On January 1, 2023, the Company adopted ASU 2022-02 on a modified retrospective basis, which did not have a material impact on the consolidated financial statements. A comprehensive analysis of the ACL is performed by the Company on a quarterly basis. Management evaluates the adequacy of the ACL utilizing a defined methodology to determine if it properly addresses the current and expected risks in the loan portfolio, which considers the performance of borrowers and specific evaluation of individually evaluated loans including historical loss experiences, trends in delinquencies, nonperforming loans and other risk assets, and the qualitative factors. Risk factors are continuously reviewed and adjusted, as needed, by management when conditions support a change. Management believes its approach properly addresses relevant accounting and bank regulatory guidance for loans both collectively and individually evaluated. The results of the comprehensive analysis, including recommended changes, are governed by the Company's Reserve Adequacy Committee, whose members were also a part of the Company's CECL Committee. |
Allowance for Credit Losses on AFS Securities | Allowance for Credit Losses on AFS Securities Prior to implementation of CECL, unrealized losses on AFS debt securities caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment approach; however, the new standard requires credit losses to be presented as an ACL. The Company is still required to conduct an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of the Impact of the Adoption of CECL and the Transition Away from the Incurred Loss Method | The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the ACL is presented at the loan segment level: January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial loans: Commercial real estate $ 13,558 $ 16,415 $ 2,857 Acquisition and development 3,214 3,000 (214) Commercial and industrial 4,505 5,433 928 Municipal 24 193 169 Consumer loans: Residential mortgage 3,444 2,323 (1,121) Installment and other 188 237 49 Unallocated reserve 245 — (245) Allowance for credit losses on loans $ 25,178 $ 27,601 $ 2,423 Liabilities: Allowance for credit losses on off-balance sheet credit exposures $ 1,633 $ 1,733 $ 100 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Values of AFS Securities | At September 30, 2023 and December 31, 2022, all investment securities were classified as AFS. The following table summarizes amortized cost, fair value and ACL of investment securities, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI, and the allowance for credit losses at September 30, 2023 and December 31, 2022: Amortized Cost Gross Unrealized Gross Unrealized Allowance for Credit Losses Fair Value September 30, 2023 U.S. Treasury securities $ 20,060 $ — $ 2,917 $ — $ 17,143 U.S. Government Agencies 4,149 173 — — 4,322 States and political subdivisions 223,807 — 35,690 — 188,117 GSE residential MBSs 62,395 — 5,044 — 57,351 GSE commercial MBSs 4,413 365 — — 4,778 GSE residential CMOs 80,693 — 8,656 — 72,037 Non-agency CMOs 43,772 274 5,067 — 38,979 Asset-backed 113,813 447 1,945 — 112,315 Other 120 — — — 120 Totals $ 553,222 $ 1,259 $ 59,319 $ — $ 495,162 December 31, 2022 U.S. Treasury securities $ 20,070 $ — $ 2,779 n/a $ 17,291 U.S. Government Agencies 4,907 228 — n/a 5,135 States and political subdivisions 225,825 19 28,430 n/a 197,414 GSE residential MBSs 63,778 — 4,376 n/a 59,402 GSE residential CMOs 75,446 — 7,068 n/a 68,378 Non-agency CMOs 42,298 243 2,783 n/a 39,758 Asset-backed 130,577 — 4,604 n/a 125,973 Other 377 — — n/a 377 Totals $ 563,278 $ 490 $ 50,040 n/a $ 513,728 |
Summary of Investment Securities with Unrealized Losses | The following table summarizes investment securities with unrealized losses aggregated by major investment security type and the length of time in a continuous unrealized loss position. For these investment securities, no ACL was recorded at September 30, 2023 and no cumulative OTTI expense was recorded at December 31, 2022. 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, 2023 U.S. Treasury securities — $ — $ — 3 $ 17,143 $ 2,917 3 $ 17,143 $ 2,917 States and political subdivisions 10 4,147 294 41 183,970 35,396 51 188,117 35,690 GSE residential MBSs — — — 15 57,351 5,044 15 57,351 5,044 GSE residential CMOs 5 16,044 581 14 55,993 8,075 19 72,037 8,656 Non-agency CMOs 1 6,024 512 4 15,868 4,555 5 21,892 5,067 Asset-backed 1 892 7 15 77,377 1,938 16 78,269 1,945 Totals 17 $ 27,107 $ 1,394 92 $ 407,702 $ 57,925 109 $ 434,809 $ 59,319 December 31, 2022 U.S. Treasury securities — $ — $ — 3 $ 17,291 $ 2,779 3 $ 17,291 $ 2,779 States and political subdivisions 29 135,579 13,809 17 60,102 14,621 46 195,681 28,430 GSE residential MBSs 5 26,100 925 10 33,302 3,451 15 59,402 4,376 GSE residential CMOs 8 28,732 1,884 9 39,646 5,184 17 68,378 7,068 Non-agency CMOs 4 26,555 1,135 2 8,639 1,648 6 35,194 2,783 Asset-backed 17 78,873 2,432 5 47,100 2,172 22 125,973 4,604 Totals 63 $ 295,839 $ 20,185 46 $ 206,080 $ 29,855 109 $ 501,919 $ 50,040 |
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, 2023. 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 31,439 27,291 Due after five years through ten years 56,845 49,216 Due after ten years 159,852 133,195 CMOs and MBSs 191,273 173,145 Asset-backed 113,813 112,315 Totals $ 553,222 $ 495,162 |
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, 2023 and 2022: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Proceeds from sale of investment securities $ 19,900 $ — $ 19,900 $ 3,075 Gross gains 2 — 2 25 Gross losses — 14 10 17 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 LHFS, at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Commercial real estate: Owner occupied $ 376,350 $ 315,770 Non-owner occupied 630,514 608,043 Multi-family 143,437 138,832 Non-owner occupied residential 100,391 104,604 Acquisition and development: 1-4 family residential construction 25,642 25,068 Commercial and land development 153,279 158,308 Commercial and industrial (1) 374,190 357,774 Municipal 10,334 12,173 Residential mortgage: First lien 248,335 229,849 Home equity - term 5,223 5,505 Home equity - lines of credit 188,736 183,241 Installment and other loans 10,405 12,065 Total loans $ 2,266,836 $ 2,151,232 (1) This balance includes $6.2 million and $13.8 million of SBA PPP loans, net of deferred fees and costs, at September 30, 2023 and December 31, 2022, respectively. |
Amortized Cost of the Loan Portfolio, by Year of Origination, Loan Class, and Credit Quality | The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of September 30, 2023. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan and payment activity, which residential mortgage and installment and other consumer loans are presented below based on payment performance: performing or nonperforming. Term Loans Amortized Cost Basis by Origination Year As of September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Basis Revolving Loans Converted to Term Total Commercial Real Estate: Owner-occupied: Risk rating Pass $ 46,027 $ 94,573 $ 79,707 $ 22,354 $ 21,605 $ 66,222 $ 5,372 $ — $ 335,860 Special mention — 10,007 2,541 — — 2,398 — — 14,946 Substandard - Non-IEL — — — 6,122 — 2,165 457 — 8,744 Substandard - IEL — — — 14,321 — 2,479 — — 16,800 Total owner-occupied loans $ 46,027 $ 104,580 $ 82,248 $ 42,797 $ 21,605 $ 73,264 $ 5,829 $ — $ 376,350 Current period gross charge offs - owner-occupied $ — $ — $ — $ — $ — $ — $ — $ — $ — Non-owner occupied: Risk rating Pass $ 36,918 $ 98,722 $ 206,053 $ 85,808 $ 63,827 $ 135,331 $ 510 $ 871 $ 628,040 Special mention — — — — — 2,144 — — 2,144 Substandard - Non-IEL — — — — — 78 — — 78 Substandard - IEL — — — — — 252 — — 252 Total non-owner occupied loans $ 36,918 $ 98,722 $ 206,053 $ 85,808 $ 63,827 $ 137,805 $ 510 $ 871 $ 630,514 Current period gross charge offs - non-owner occupied $ — $ — $ — $ — $ — $ — $ — $ — $ — Multi-family: Risk rating Pass $ 2,255 $ 59,413 $ 8,732 $ 12,765 $ 7,791 $ 50,300 $ 150 $ — $ 141,406 Special mention — — — — — 2,031 — — 2,031 Substandard - Non-IEL — — — — — — — — — Substandard - IEL — — — — — — — — — Total multi-family loans $ 2,255 $ 59,413 $ 8,732 $ 12,765 $ 7,791 $ 52,331 $ 150 $ — $ 143,437 Current period gross charge offs - multi-family $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year As of September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Basis Revolving Loans Converted to Term Total Non-owner occupied residential: Risk rating Pass $ 7,137 $ 23,451 $ 18,807 $ 10,005 $ 6,775 $ 31,144 $ 1,503 $ — $ 98,822 Special mention — — — — — 894 — — 894 Substandard - Non-IEL — — — — — 385 — — 385 Substandard - IEL 2 — 192 — — 96 — — 290 Total non-owner occupied residential loans $ 7,139 $ 23,451 $ 18,999 $ 10,005 $ 6,775 $ 32,519 $ 1,503 $ — $ 100,391 Current period gross charge offs - non-owner occupied residential $ — $ — $ — $ — $ — $ 12 $ — $ — $ 12 Acquisition and development: 1-4 family residential construction: Risk rating Pass $ 13,111 $ 12,383 $ — $ — $ — $ — $ — $ — $ 25,494 Special mention — — 148 — — — — — 148 Substandard - Non-IEL — — — — — — — — — Substandard - IEL — — — — — — — — — Total 1-4 family residential construction loans $ 13,111 $ 12,383 $ 148 $ — $ — $ — $ — $ — $ 25,642 Current period gross charge offs - 1-4 family residential construction $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and land development: Risk rating Pass $ 21,879 $ 52,815 $ 50,957 $ 9,946 $ 114 $ 1,841 $ 6,655 $ 5,990 $ 150,197 Special mention — — — 1,223 — 442 — — 1,665 Substandard - Non-IEL — — — — — — — — — Substandard - IEL — — — — — 1,417 — — 1,417 Total commercial and land development loans $ 21,879 $ 52,815 $ 50,957 $ 11,169 $ 114 $ 3,700 $ 6,655 $ 5,990 $ 153,279 Current period gross charge offs - commercial and land development $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial: Risk rating Pass $ 55,922 $ 77,312 $ 75,336 $ 25,943 $ 10,988 $ 22,123 $ 92,100 $ 2,223 $ 361,947 Special mention — 1,387 3,699 15 1,248 386 3,235 — 9,970 Substandard - Non-IEL — — 1,223 — 9 287 92 — 1,611 Substandard - IEL — — — 8 — 508 146 — 662 Total commercial and industrial loans $ 55,922 $ 78,699 $ 80,258 $ 25,966 $ 12,245 $ 23,304 $ 95,573 $ 2,223 $ 374,190 Current period gross charge offs - commercial and industrial $ — $ 161 $ 106 $ — $ — $ 8 $ 473 $ — $ 748 Municipal: Risk rating Pass $ — $ 4 $ 3,403 $ — $ — $ 6,927 $ — $ — $ 10,334 Total municipal loans $ — $ 4 $ 3,403 $ — $ — $ 6,927 $ — $ — $ 10,334 Current period gross charge offs - municipal $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year As of September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Basis Revolving Loans Converted to Term Total Residential mortgage: First lien: Payment performance Performing $ 27,657 $ 65,681 $ 35,176 $ 8,071 $ 7,690 $ 100,990 $ — $ 642 $ 245,907 Nonperforming — — — — 172 2,256 — — 2,428 Total first lien loans $ 27,657 $ 65,681 $ 35,176 $ 8,071 $ 7,862 $ 103,246 $ — $ 642 $ 248,335 Current period gross charge offs - first lien $ — $ — $ — $ — $ — $ 58 $ — $ — $ 58 Home equity - term: Payment performance Performing $ 553 $ 750 $ 140 $ 443 $ 124 $ 3,210 $ — $ — $ 5,220 Nonperforming — — — — — 3 — — 3 Total home equity - term loans $ 553 $ 750 $ 140 $ 443 $ 124 $ 3,213 $ — $ — $ 5,223 Current period gross charge offs - home equity - term $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity - lines of credit: Payment performance Performing $ — $ — $ — $ — $ — $ — $ 111,582 $ 76,259 $ 187,841 Nonperforming — — — — — — 877 18 895 Total residential real estate - home equity - lines of credit loans $ — $ — $ — $ — $ — $ — $ 112,459 $ 76,277 $ 188,736 Current period gross charge offs - home equity - lines of credit $ — $ — $ — $ — $ — $ — $ 40 $ — $ 40 Installment and other loans: Payment performance Performing $ 718 $ 457 $ 357 $ 118 $ 861 $ 1,350 $ 6,516 $ — $ 10,377 Nonperforming — — — — 19 5 4 — 28 Total Installment and other loans $ 718 $ 457 $ 357 $ 118 $ 880 $ 1,355 $ 6,520 $ — $ 10,405 Current period gross charge offs - installment and other $ 139 $ 24 $ — $ — $ 4 $ 10 $ 21 $ — $ 198 The information presented in the table above is not required for periods prior to the adoption of CECL. The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at December 31, 2022, which presents the most comparable required information. Prior to the adoption of CECL, PCD loans were classified as PCI loans and accounted for under ASC 310-30. In accordance with the CECL standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the adoption date. At September 30, 2023, the amortized cost of the PCD loans was $8.8 million. Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful PCI Loans Total December 31, 2022 Commercial real estate: Owner occupied $ 305,159 $ 2,109 $ 3,532 $ 2,767 $ — $ 2,203 $ 315,770 Non-owner occupied 601,244 4,243 2,273 — — 283 608,043 Multi-family 130,851 7,739 242 — — — 138,832 Non-owner occupied residential 102,674 810 482 81 — 557 104,604 Acquisition and development: 1-4 family residential construction 25,068 — — — — — 25,068 Commercial and land development 142,424 458 — 15,426 — — 158,308 Commercial and industrial 331,103 17,579 7,013 31 — 2,048 357,774 Municipal 12,173 — — — — — 12,173 Residential mortgage: First lien 222,849 — 215 2,520 — 4,265 229,849 Home equity - term 5,485 — — 5 — 15 5,505 Home equity - lines of credit 182,801 — 45 395 — — 183,241 Installment and other loans 12,017 — — 40 — 8 12,065 $ 2,073,848 $ 32,938 $ 13,802 $ 21,265 $ — $ 9,379 $ 2,151,232 |
Schedule of Amortized Cost of Nonaccrual Loans by Class, With and Without Loan Reserves | The following table presents the amortized cost basis of nonaccrual loans, according to loan class, with and without reserves on individually evaluated loans as of September 30, 2023, as compared to nonaccrual loans at December 31, 2022. The Company did not recognize interest income on nonaccrual loans during the three and nine months ended September 30, 2023. September 30, 2023 December 31, 2022 Nonaccrual loans with a related ACL Nonaccrual loans with no related ACL Total nonaccrual loans Loans Past Due 90+ Accruing Total nonaccrual loans Commercial real estate: Owner-occupied $ — $ 16,800 $ 16,800 $ — $ 2,767 Non-owner occupied — 252 252 — — Non-owner occupied residential — 288 288 — 81 Acquisition and development: Commercial and land development — 1,417 1,417 — 15,426 Commercial and industrial — 662 662 — 31 Residential mortgage: First lien — 2,025 2,025 277 1,838 Home equity – term — 3 3 — 5 Home equity – lines of credit — 849 849 — 395 Installment and other loans 4 24 28 — 40 Total $ 4 $ 22,320 $ 22,324 $ 277 $ 20,583 |
Schedule of Amortized Cost Basis of Collateral-Dependent Loans | The following table presents the amortized cost basis of collateral-dependent loans by class as of September 30, 2023: Type of Collateral Business Assets Commercial Real Estate Equipment Land Residential Real Estate Other Total Commercial real estate: Owner occupied $ — $ 16,800 $ — $ — $ — $ — $ 16,800 Non-owner occupied — 252 — — — — 252 Non-owner occupied residential — 288 — — — — 288 Acquisition and development: Commercial and land development — 1,417 — — — — 1,417 Commercial and industrial 654 — 8 — — — 662 Residential mortgage: First lien — — — — 1,940 — 1,940 Home equity - term — — — — 3 — 3 Home equity - lines of credit — — — — 849 — 849 Installment and other loans — — — — — 4 4 Total $ 654 $ 18,757 $ 8 $ — $ 2,792 $ 4 $ 22,215 |
Impaired Loans by Segment and Class | The following table, which excludes accruing PCI loans, presents the most comparable required information at December 31, 2022, which 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 December 31, 2022. The recorded investment in loans excludes accrued interest receivable. 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) December 31, 2022 Commercial real estate: Owner-occupied $ — $ — $ — $ 2,767 $ 3,799 Non-owner occupied residential — — — 81 207 Acquisition and development: Commercial and land development — — — 15,426 15,426 Commercial and industrial — — — 31 112 Residential mortgage: First lien 178 178 28 2,342 3,126 Home equity—term — — — 5 8 Home equity—lines of credit — — — 395 684 Installment and other loans — — — 40 40 $ 178 $ 178 $ 28 $ 21,087 $ 23,402 |
Average Recorded Investment in Impaired Loans and Related Interest Income | The following table, which excludes accruing PCI loans, presents the most comparable required information for the prior comparative periods and summarizes the average recorded investment in impaired loans and related recognized interest income for the three and nine months ended September 30, 2022: September 30, 2022 Average Interest Three Months Ended September 30, Commercial real estate: Owner-occupied $ 2,881 $ — Non-owner occupied residential 93 — Commercial and industrial 51 — Residential mortgage: First lien 2,390 10 Home equity – term 5 — Home equity - lines of credit 382 — Installment and other loans 43 — $ 5,845 $ 10 Nine Months Ended September 30, Commercial real estate: Owner occupied $ 3,126 $ — Non-owner occupied residential 100 — Commercial and industrial 132 — Residential mortgage: First lien 2,370 25 Home equity - term 6 — Home equity - lines of credit 407 — Installment and other loans 45 — $ 6,186 $ 25 |
Troubled Debt Restructurings | The following table presents the most comparable required information for impaired loans that were TDRs, with the recorded investment at December 31, 2022: December 31, 2022 Number of Recorded Accruing: Residential mortgage: First lien 8 $ 682 Nonaccruing: Residential mortgage: First lien 4 212 Installment and other loans 1 2 5 214 13 $ 896 |
Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans | The following table presents the classes of the loan portfolio summarized by aging categories at September 30, 2023: 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Loans Not Past Due Total September 30, 2023 Commercial real estate: Owner occupied $ — $ 230 $ 131 $ 361 $ 375,989 $ 376,350 Non-owner occupied — — — — 630,514 630,514 Multi-family — — — — 143,437 143,437 Non-owner occupied residential — — — — 100,391 100,391 Acquisition and development: 1-4 family residential construction — — — — 25,642 25,642 Commercial and land development — — — — 153,279 153,279 Commercial and industrial 893 16 38 947 373,243 374,190 Municipal — — — — 10,334 10,334 Residential mortgage: First lien 1,564 1,311 749 3,624 244,711 248,335 Home equity - term — — — — 5,223 5,223 Home equity - lines of credit 1,174 887 513 2,574 186,162 188,736 Installment and other loans 70 5 4 79 10,326 10,405 $ 3,701 $ 2,449 $ 1,435 $ 7,585 $ 2,259,251 $ 2,266,836 The following table presents the most comparable required information, which includes the classes of the loan portfolio summarized by aging categories of performing loans and nonaccrual loans at December 31, 2022: Days Past Due Current 30-59 60-89 90+ (still accruing) Total Past Due Non- Accrual Total Loans December 31, 2022 Commercial real estate: Owner-occupied $ 310,769 $ 31 $ — $ — $ 31 $ 2,767 $ 313,567 Non-owner occupied 607,760 — — — — — 607,760 Multi-family 138,832 — — — — — 138,832 Non-owner occupied residential 103,782 184 — — 184 81 104,047 Acquisition and development: 1-4 family residential construction 24,622 446 — — 446 — 25,068 Commercial and land development 142,613 269 — — 269 15,426 158,308 Commercial and industrial 355,179 464 52 — 516 31 355,726 Municipal 12,173 — — — — — 12,173 Residential mortgage: First lien 219,715 3,485 414 132 4,031 1,838 225,584 Home equity – term 5,485 — — — — 5 5,490 Home equity – lines of credit 181,350 1,395 101 — 1,496 395 183,241 Installment and other loans 11,953 64 — — 64 40 12,057 Subtotal 2,114,233 6,338 567 132 7,037 20,583 2,141,853 Loans acquired with credit deterioration: Commercial real estate: Owner-occupied 2,203 — — — — — 2,203 Non-owner occupied 283 — — — — — 283 Non-owner occupied residential 452 — — 105 105 — 557 Commercial and industrial 2,048 — — — — — 2,048 Residential mortgage: First lien 3,657 327 79 202 608 — 4,265 Home equity – term 15 — — — — — 15 Installment and other loans 8 — — — — — 8 Subtotal 8,666 327 79 307 713 — 9,379 $ 2,122,899 $ 6,665 $ 646 $ 439 $ 7,750 $ 20,583 $ 2,151,232 |
Summary of Activity in the ALL and Ending Loan Balances Individually Evaluated for Impairment Based on Loan Segment | The following table presents the activity in the ACL, including the impact of adopting CECL, for the three and nine months ended September 30, 2023 and the activity in the ALL for the three and nine months ended September 30, 2022: Commercial Consumer Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total Three Months Ended September 30, 2023 Balance, beginning of period $ 16,996 $ 2,767 $ 5,854 $ 167 $ 25,784 $ 2,307 $ 292 $ 2,599 $ — $ 28,383 Provision for credit losses (173) 125 (62) (11) (121) 239 18 257 — 136 Charge-offs — — (267) — (267) — (75) (75) — (342) Recoveries 17 1 33 — 51 31 19 50 — 101 Balance, end of period $ 16,840 $ 2,893 $ 5,558 $ 156 $ 25,447 $ 2,577 $ 254 $ 2,831 $ — $ 28,278 September 30, 2022 Balance, beginning of period $ 12,294 $ 3,024 $ 4,471 $ 26 $ 19,815 $ 3,004 $ 223 $ 3,227 $ 237 $ 23,279 Provision for loan losses 551 342 296 (1) 1,188 309 (5) 304 8 1,500 Charge-offs — — (87) — (87) — (24) (24) — (111) Recoveries — 1 32 — 33 2 6 8 — 41 Balance, end of period $ 12,845 $ 3,367 $ 4,712 $ 25 $ 20,949 $ 3,315 $ 200 $ 3,515 $ 245 $ 24,709 Nine Months Ended September 30, 2023 Beginning balance, prior to adoption of CECL $ 13,558 $ 3,214 $ 4,505 $ 24 $ 21,301 $ 3,444 $ 188 $ 3,632 $ 245 $ 25,178 Impact of adopting CECL 2,857 (214) 928 169 3,740 (1,121) 49 (1,072) (245) 2,423 Provision for credit losses 335 (111) 790 (37) 977 163 124 287 — 1,264 Charge-offs (12) — (748) — (760) (98) (198) (296) — (1,056) Recoveries 102 4 83 — 189 189 91 280 — 469 Balance, end of period $ 16,840 $ 2,893 $ 5,558 $ 156 $ 25,447 $ 2,577 $ 254 $ 2,831 $ — $ 28,278 September 30, 2022 Balance, beginning of period $ 12,037 $ 2,062 $ 3,814 $ 30 $ 17,943 $ 2,785 $ 215 $ 3,000 $ 237 $ 21,180 Provision for loan losses 776 1,295 980 (5) 3,046 508 13 521 8 3,575 Charge-offs — — (202) — (202) (10) (42) (52) — (254) Recoveries 32 10 120 — 162 32 14 46 — 208 Balance, end of period $ 12,845 $ 3,367 $ 4,712 $ 25 $ 20,949 $ 3,315 $ 200 $ 3,515 $ 245 $ 24,709 Commercial Consumer Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total December 31, 2022 Loans allocated by: Individually evaluated for impairment $ 2,848 $ 15,426 $ 31 $ — $ 18,305 $ 2,920 $ 40 $ 2,960 $ — $ 21,265 Collectively evaluated for impairment 1,164,401 167,950 357,743 12,173 1,702,267 415,675 12,025 427,700 — 2,129,967 $ 1,167,249 $ 183,376 $ 357,774 $ 12,173 $ 1,720,572 $ 418,595 $ 12,065 $ 430,660 $ — $ 2,151,232 ALL allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 28 $ — $ 28 $ — $ 28 Collectively evaluated for impairment 13,558 3,214 4,505 24 21,301 3,416 188 3,604 245 25,150 $ 13,558 $ 3,214 $ 4,505 $ 24 $ 21,301 $ 3,444 $ 188 $ 3,632 $ 245 $ 25,178 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Summary of ROU Assets and Related Lease Liabilities | The following table summarizes the Company's operating leases at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Operating lease ROU assets $ 11,053 $ 9,270 Operating lease ROU liabilities 11,821 9,976 Weighted-average remaining lease term (in years) 15.2 14.3 Weighted-average discount rate 4.3 % 4.1 % |
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, 2023 and 2022: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Cash paid for operating lease liabilities $ 319 $ 300 $ 890 $ 889 Operating lease expense 337 347 948 1,090 |
Schedule of Maturities of Lease Liabilities | The following table presents expected future maturities of the Company's lease liabilities as of September 30, 2023: 2023 $ 334 2024 1,349 2025 1,371 2026 1,403 2027 1,437 Thereafter 11,381 17,275 Less: imputed interest 5,454 Total lease liabilities $ 11,821 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Other Intangible Assets | The following table presents changes in and components of other intangible assets for the three and nine months ended September 30, 2023 and 2022. During the three months ended September 30, 2023, the Company acquired an investment advisory firm and related accounts with assets under management of approximately $67.2 million. In connection with this acquisition, the Company recorded an intangible asset totaling $289 thousand associated with the customer list. No impairment charges were recorded on other intangible assets during the three and nine months ended September 30, 2023 and September 30, 2022. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Beginning of period $ 2,589 $ 3,610 $ 3,078 $ 4,183 Acquired customer list 289 — 289 — Amortization expense (228) (272) (717) (845) Balance, end of period $ 2,650 $ 3,338 $ 2,650 $ 3,338 |
Schedule of Components of Other Intangible Assets | The following table presents the components of other identifiable intangible assets at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Gross Amount Accumulated Gross Amount Accumulated Amortized intangible assets: Core deposit intangibles $ 8,390 $ 6,029 $ 8,390 $ 5,312 Other customer relationship intangibles 289 — 25 25 Total $ 8,679 $ 6,029 $ 8,415 $ 5,337 |
Schedule of Estimated Aggregated Amortization Expense | The following table presents future estimated aggregate amortization expense for other identifiable intangible assets at September 30, 2023: 2023 $ 291 2024 827 2025 648 2026 468 2027 289 Thereafter 127 $ 2,650 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Nonvested Restricted Shares Activity | The following table presents a summary of nonvested restricted shares activity for the nine months ended September 30, 2023: Shares Weighted Average Grant Date Fair Value Nonvested shares, beginning of year 284,909 $ 22.35 Granted 148,501 23.57 Forfeited (33,832) 22.58 Vested (107,466) 22.56 Nonvested shares, at period end 292,112 $ 22.87 |
Schedule of Restricted Shares Compensation Expense | The following table presents restricted share compensation expense, with tax benefit information, and fair value of shares vested, for the three and nine months ended September 30, 2023 and 2022: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Restricted share award expense $ 606 $ 602 $ 1,756 $ 1,461 Restricted share award tax benefit 127 126 369 307 Fair value of shares vested — 71 2,460 1,935 |
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, 2023 and 2022: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Shares purchased 3,446 4,154 6,449 8,107 Weighted average price of shares purchased $ 20.52 $ 22.60 $ 21.14 $ 22.53 Compensation expense recognized 4 13 7 21 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 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 $ 75,000 Other assets $ 2,616 n/a n/a n/a Interest rate swaps - balance sheet hedge $ 50,000 Other liabilities $ (758) $ 100,000 Other liabilities $ (973) Total derivatives designated as hedging instruments $ 1,858 $ (973) Derivatives not designated as hedging instruments: Interest rate swaps $ 153,828 Other assets $ 13,911 $ 128,385 Other assets $ 10,437 Interest rate swaps 153,828 Other liabilities (13,517) 128,385 Other liabilities (10,262) Purchased options – rate cap 5,932 Other assets 21 6,000 Other assets 29 Written options – rate cap 5,932 Other liabilities (21) 6,000 Other liabilities (29) Risk participations - sold credit protection 32,588 Other liabilities (32) 29,019 Other liabilities (69) Risk participations - purchased credit protection 4,864 Other assets 5 4,941 Other assets 16 Interest rate lock commitments with customers 593 Other assets 15 1,356 Other assets 35 Forward sale commitments 150 Other assets 2 3,483 Other assets 140 Total derivatives not designated as hedging instruments $ 384 $ 297 |
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, 2023 and 2022: Amount of Gain (Loss) Recognized in OCI on Derivative Amount of Gain (Loss) Recognized in OCI on Derivative Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Interest rate products $ 1,439 $ (562) $ 2,831 $ (562) Total $ 1,439 $ (562) $ 2,831 $ (562) Amount of Loss Reclassified from AOCI 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, 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Interest rate products $ — $ — $ — $ — Interest income Total $ — $ — $ — $ — 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, 2023 2022 2023 2022 Derivatives not designated as hedging instruments: Interest rate products $ 307 $ 179 $ 188 $ 309 Other operating expenses Risk participation agreements 31 (11) 58 19 Other operating expenses Interest rate lock commitments with customers (52) (98) (20) (265) Mortgage banking activities Forward sale commitments — (610) (139) 21 Mortgage banking activities Total $ 286 $ (540) $ 87 $ 84 |
Summary of Interest Rate Swap Components | The following table is a summary of components for interest rate swaps designated as hedging instruments at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Weighted average pay rate 4.22 % 3.81 % Weighted average receive rate 4.68 % 3.81 % Weighted average maturity in years 3.1 1.2 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of the Use of Short-Term Borrowings | The Company has short-term borrowing capability from the FHLB, federal funds purchased and the FRB discount window. The following table summarizes these short-term borrowings at September 30, 2023 and December 31, 2022, and for the nine and twelve months then ended: September 30, 2023 December 31, 2022 Balance at period-end $ 117,250 $ 104,684 Weighted average interest rate during the period 5.68 % 4.45 % Average balance during the period $ 87,245 $ 13,846 Average interest rate during the period 5.35 % 3.97 % Maximum month-end balance during the period $ 120,984 $ 104,684 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The following table presents components of the Company’s long-term debt at September 30, 2023 and December 31, 2022: Amount Weighted Average Rate September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 FHLB fixed rate advances maturing: 2025 $ 15,000 $ — 4.57 % — % 2028 25,000 — 3.98 % — % 40,000 — 4.20 % — % Total FHLB amortizing advance requiring monthly principal and interest payments, maturing: 2025 — 1,455 — % 4.74 % Total FHLB Advances $ 40,000 $ 1,455 4.20 % 4.74 % |
SHAREHOLDERS' EQUITY AND REGU_2
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Capital Amounts and Ratios | The following table presents capital amounts and ratios at September 30, 2023 and December 31, 2022: Actual For Capital Adequacy Purposes To Be Well Amount Ratio Amount Ratio Amount Ratio September 30, 2023 Total risk-based capital: Orrstown Financial Services, Inc. $ 326,549 13.0 % $ 263,141 10.5 % n/a n/a Orrstown Bank 313,992 12.5 % 263,085 10.5 % $ 250,557 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 266,370 10.6 % 213,019 8.5 % n/a n/a Orrstown Bank 285,889 11.4 % 212,974 8.5 % 200,446 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 266,370 10.6 % 175,427 7.0 % n/a n/a Orrstown Bank 285,889 11.4 % 175,390 7.0 % 162,862 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 266,370 8.7 % 122,433 4.0 % n/a n/a Orrstown Bank 285,889 9.3 % 122,433 4.0 % 153,041 5.0 % December 31, 2022 Total risk-based capital: Orrstown Financial Services, Inc. $ 304,589 12.7 % $ 250,939 10.5 % n/a n/a Orrstown Bank 292,933 12.3 % 250,566 10.5 % $ 238,634 10.0 % Tier 1 risk-based capital: Orrstown Financial Services, Inc. 245,752 10.3 % 203,141 8.5 % n/a n/a Orrstown Bank 266,122 11.2 % 202,839 8.5 % 190,907 8.0 % Tier 1 common equity risk-based capital: Orrstown Financial Services, Inc. 245,752 10.3 % 167,293 7.0 % n/a n/a Orrstown Bank 266,122 11.2 % 167,044 7.0 % 155,112 6.5 % Tier 1 leverage capital: Orrstown Financial Services, Inc. 245,752 8.5 % 116,325 4.0 % n/a n/a Orrstown Bank 266,122 9.2 % 116,219 4.0 % 145,273 5.0 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | The following table presents earnings (loss) per share for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, (shares presented in the table are in thousands) 2023 2022 2023 2022 Net income (loss) $ 9,026 $ (4,828) $ 28,020 $ 12,411 Weighted average shares outstanding - basic 10,319 10,369 10,346 10,611 Dilutive effect of share-based compensation 86 — 94 147 Weighted average shares outstanding - diluted 10,405 10,369 10,440 10,758 Per share information: Basic earnings (loss) per share $ 0.87 $ (0.47) $ 2.71 $ 1.17 Diluted earnings (loss) per share 0.87 (0.47) 2.68 1.16 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Contractual or Notional Amounts, Commitments to Fund | The following table presents these contractual, or notional, amounts at September 30, 2023 and December 31, 2022. Contractual or Notional Amount September 30, 2023 December 31, 2022 Commitments to fund: Home equity lines of credit $ 324,248 $ 296,213 1-4 family residential construction loans 50,332 49,538 Commercial real estate, construction and land development loans 159,107 156,560 Commercial, industrial and other loans 335,685 338,286 Standby letters of credit 21,960 23,229 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on Recurring Basis | The following table summarizes assets and liabilities measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022: Level 1 Level 2 Level 3 Total Fair September 30, 2023 Financial Assets Investment securities: U.S. Treasury securities $ 17,143 $ — $ — $ 17,143 U.S. Government Agencies — 4,322 — 4,322 States and political subdivisions — 182,522 5,595 188,117 GSE residential MBSs — 57,351 — 57,351 GSE commercial MBSs — 4,778 — 4,778 GSE residential CMOs — 72,037 — 72,037 Non-agency CMOs — 17,521 21,458 38,979 Asset-backed — 112,315 — 112,315 Other 120 — — 120 Loans held for sale — 6,448 — 6,448 Derivatives — 16,553 15 16,568 Totals $ 17,263 $ 473,847 $ 27,068 $ 518,178 Financial Liabilities Derivatives $ — $ 14,328 $ — $ 14,328 December 31, 2022 Financial Assets Investment securities: U.S. Treasury securities $ 17,291 $ — $ — $ 17,291 U.S. Government Agencies — 5,135 — 5,135 States and political subdivisions — 191,488 5,926 197,414 GSE residential MBSs — 59,402 — 59,402 GSE residential CMOs — 68,378 — 68,378 Non-agency CMOs — 18,491 21,267 39,758 Asset-backed — 125,973 — 125,973 Other 377 — — 377 Loans held for sale — 10,880 — 10,880 Derivatives — 10,482 35 10,517 Totals $ 17,668 $ 490,229 $ 27,228 $ 535,125 Financial Liabilities Derivatives $ — $ 11,333 $ — $ 11,333 |
Level 3 Fair Value Measurement Activity | The following provides details of the Level 3 fair value measurement activity for the periods ended September 30, 2023 and 2022: Investment securities: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, beginning of period $ 27,994 $ 6,255 $ 27,193 $ 23,147 Unrealized losses included in OCI (736) (422) (600) (2,002) Purchases — — 871 — Net discount accretion (premium amortization) 19 (4) 42 62 Principal payments and other (225) — (454) — Sales — — — (3,053) Calls — — — (12,154) OTTI — — — (171) Balance, end of period $ 27,052 $ 5,829 $ 27,052 $ 5,829 Interest rate lock commitments on residential mortgages: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, beginning of period $ 67 $ 186 $ 35 $ 353 Total losses included in earnings (52) (98) (20) (265) Balance, end of period $ 15 $ 88 $ 15 $ 88 |
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, 2023 and December 31, 2022: Level 1 Level 2 Level 3 Total September 30, 2023 Individually Evaluated Loans Commercial real estate: Owner occupied $ — $ — $ 88 $ 88 Non-owner occupied residential — — — — Commercial and industrial — — 146 146 Residential mortgage: First lien — — 226 226 Home equity - lines of credit — — 62 62 Total individually evaluated loans $ — $ — $ 522 $ 522 December 31, 2022 Impaired Loans Commercial real estate: Owner occupied $ — $ — $ 116 $ 116 Non-owner occupied residential — — 9 9 Residential mortgage: First lien — — 309 309 Home equity - lines of credit — — 86 86 Total impaired loans $ — $ — $ 520 $ 520 |
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, 2023 Individually evaluated loans $ 522 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 10% - 25% discount - Management adjustments for liquidation expenses 6.75% - 10.29% discount December 31, 2022 Impaired loans $ 520 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 10% - 25% discount - Management adjustments for liquidation expenses 6.08% - 17.93% discount |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The following table presents carrying amounts and estimated fair values of the financial assets and liabilities at September 30, 2023 and December 31, 2022: Carrying Fair Value Level 1 Level 2 Level 3 September 30, 2023 Financial Assets Cash and due from banks $ 34,728 $ 34,728 $ 34,728 $ — $ — Interest-bearing deposits with banks 60,211 60,211 60,211 — — Restricted investments in bank stock 12,987 n/a n/a n/a n/a Investment securities 495,162 495,162 17,263 450,846 27,053 Loans held for sale 6,448 6,448 — 6,448 — Loans, net of allowance for credit losses 2,238,558 2,083,811 — — 2,083,811 Derivatives 16,568 16,568 — 16,553 15 Accrued interest receivable 12,212 12,212 — 4,338 7,874 Financial Liabilities Deposits 2,546,435 2,542,571 — 2,542,571 — Deposits held for assumption in connection with sale of bank branches — — — — — Securities sold under agreements to repurchase and federal funds purchased 17,991 17,991 — 17,991 — FHLB advances and other borrowings 157,250 156,513 — 156,513 — Subordinated notes 32,076 28,774 — 28,774 — Derivatives 14,328 14,328 — 14,328 — Accrued interest payable 1,783 1,783 — 1,783 — Off-balance sheet instruments — — — — — December 31, 2022 Financial Assets Cash and due from banks $ 28,477 $ 28,477 $ 28,477 $ — $ — Interest-bearing deposits with banks 32,346 32,346 32,346 — — Restricted investments in bank stock 10,642 n/a n/a n/a n/a Investment securities 513,728 513,728 17,668 468,867 27,193 Loans held for sale 10,880 10,880 — 10,880 — Loans, net of allowance for loan losses 2,126,054 1,991,164 — — 1,991,164 Derivatives 10,517 10,517 — 10,482 35 Accrued interest receivable 11,027 11,027 — 4,441 6,586 Financial Liabilities Deposits 2,444,939 2,440,660 — 2,440,660 — Deposits held for assumption in connection with sale of bank branches 31,307 29,429 — 29,429 — Securities sold under agreements to repurchase 17,251 17,251 — 17,251 — FHLB advances and other borrowings 106,139 106,141 — 106,141 — Subordinated notes 32,026 31,321 — 31,321 — Derivatives 11,333 11,333 — 11,333 — Accrued interest payable 457 457 — 457 — Off-balance sheet instruments — — — — — |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivatives (Details) $ in Thousands | Sep. 30, 2023 USD ($) derivativeInstrument riskParticipationAgreement | Dec. 31, 2022 USD ($) derivativeInstrument riskParticipationAgreement |
Derivative [Line Items] | ||
Risk participation agreements with sold protection | riskParticipationAgreement | 4 | 4 |
Interest rate swaps - balance sheet hedge | Designated as hedging instrument | ||
Derivative [Line Items] | ||
Number of derivatives | derivativeInstrument | 2 | 2 |
Derivative, notional amount | $ 125,000 | $ 100,000 |
Interest rate swaps - balance sheet hedge | Designated as hedging instrument | Other liabilities | ||
Derivative [Line Items] | ||
Derivative liability | 50,000 | 100,000 |
Interest rate swaps - balance sheet hedge | Designated as hedging instrument | Other assets | ||
Derivative [Line Items] | ||
Derivative asset | 75,000 | |
Interest rate swaps - balance sheet hedge | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative, notional amount | 319,500 | 268,800 |
Interest rate swaps - balance sheet hedge | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivative [Line Items] | ||
Derivative liability | 153,828 | 128,385 |
Interest rate swaps - balance sheet hedge | Derivatives not designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Derivative asset | 153,828 | 128,385 |
Risk participation - sold protection | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivative [Line Items] | ||
Derivative liability | 32,588 | 29,019 |
Risk participation - purchased protection | Derivatives not designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Derivative asset | 4,864 | 4,941 |
Interest rate lock commitments with customers | Derivatives not designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Derivative asset | 593 | 1,356 |
Forward sale commitments | Derivatives not designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Derivative asset | $ 150 | $ 3,483 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Impact of adopting CECL | $ 28,278 | $ 28,383 | $ 25,178 | ||||
Off-balance-sheet, credit risk exposure liability | 1,700 | 1,633 | |||||
Adjustment to retained earnings | (243,080) | (245,641) | (228,896) | $ (217,378) | $ (237,527) | $ (271,656) | |
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment to retained earnings | $ (112,144) | $ (105,239) | (92,473) | $ (84,867) | $ (91,723) | $ (78,700) | |
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Impact of adopting CECL | $ 2,423 | 2,423 | |||||
Off-balance-sheet, credit risk exposure liability | 100 | ||||||
Adjustment to retained earnings | 1,984 | ||||||
Deferred tax assets | 559 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment to retained earnings | $ 2,000 | $ 1,984 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of Adoption (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reserves under Incurred Loss Model | $ 25,178 | $ 24,709 | $ 23,279 | $ 21,180 | |||
Allowance for credit loss impact of adoption | $ 28,278 | $ 28,383 | 25,178 | ||||
Off-balance-sheet, credit risk exposure liability | $ 1,700 | 1,633 | |||||
Unallocated reserve | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reserves under Incurred Loss Model | 245 | ||||||
Commercial loans | Commercial real estate | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reserves under Incurred Loss Model | 13,558 | ||||||
Commercial loans | Acquisition and development | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reserves under Incurred Loss Model | 3,214 | ||||||
Commercial loans | Commercial and industrial | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reserves under Incurred Loss Model | 4,505 | ||||||
Commercial loans | Municipal | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reserves under Incurred Loss Model | 24 | ||||||
Consumer loans | Residential mortgage | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reserves under Incurred Loss Model | 3,444 | ||||||
Consumer loans | Installment and other loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reserves under Incurred Loss Model | 188 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | $ 27,601 | ||||||
Off-balance-sheet, credit risk exposure liability | 1,733 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Unallocated reserve | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | 0 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial loans | Commercial real estate | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | 16,415 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial loans | Acquisition and development | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | 3,000 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial loans | Commercial and industrial | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | 5,433 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial loans | Municipal | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | 193 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Consumer loans | Residential mortgage | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | 2,323 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Consumer loans | Installment and other loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | 237 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | 2,423 | $ 2,423 | |||||
Off-balance-sheet, credit risk exposure liability | 100 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Unallocated reserve | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | (245) | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Commercial loans | Commercial real estate | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | 2,857 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Commercial loans | Acquisition and development | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | (214) | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Commercial loans | Commercial and industrial | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | 928 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Commercial loans | Municipal | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | 169 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Consumer loans | Residential mortgage | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | (1,121) | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Consumer loans | Installment and other loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit loss impact of adoption | $ 49 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized Cost and Fair Values of AFS Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 553,222 | $ 563,278 |
Gross Unrealized Gains | 1,259 | 490 |
Gross Unrealized Losses | 59,319 | 50,040 |
Allowance for Credit Losses | 0 | |
Fair Value | 495,162 | 513,728 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 20,060 | 20,070 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2,917 | 2,779 |
Allowance for Credit Losses | 0 | |
Fair Value | 17,143 | 17,291 |
U.S. Government Agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,149 | 4,907 |
Gross Unrealized Gains | 173 | 228 |
Gross Unrealized Losses | 0 | 0 |
Allowance for Credit Losses | 0 | |
Fair Value | 4,322 | 5,135 |
States and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 223,807 | 225,825 |
Gross Unrealized Gains | 0 | 19 |
Gross Unrealized Losses | 35,690 | 28,430 |
Allowance for Credit Losses | 0 | |
Fair Value | 188,117 | 197,414 |
GSE residential MBSs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 62,395 | 63,778 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 5,044 | 4,376 |
Allowance for Credit Losses | 0 | |
Fair Value | 57,351 | 59,402 |
GSE commercial MBSs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,413 | |
Gross Unrealized Gains | 365 | |
Gross Unrealized Losses | 0 | |
Allowance for Credit Losses | 0 | |
Fair Value | 4,778 | |
GSE residential CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 80,693 | 75,446 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 8,656 | 7,068 |
Allowance for Credit Losses | 0 | |
Fair Value | 72,037 | 68,378 |
Non-agency CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 43,772 | 42,298 |
Gross Unrealized Gains | 274 | 243 |
Gross Unrealized Losses | 5,067 | 2,783 |
Allowance for Credit Losses | 0 | |
Fair Value | 38,979 | 39,758 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 113,813 | 130,577 |
Gross Unrealized Gains | 447 | 0 |
Gross Unrealized Losses | 1,945 | 4,604 |
Allowance for Credit Losses | 0 | |
Fair Value | 112,315 | 125,973 |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 120 | 377 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Allowance for Credit Losses | 0 | |
Fair Value | $ 120 | $ 377 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) security | Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) security | Dec. 31, 2022 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, available-for-sale, unrealized loss position, allowance for credit loss | $ 0 | $ 0 | |||
Accumulated other than temporary impairment | $ 0 | ||||
Investment securities sold | security | 3 | 0 | 3 | ||
Investment securities | $ 495,162,000 | $ 495,162,000 | 513,728,000 | ||
Number of investments securities, partially sold | security | 1 | ||||
Proceeds from sale of investment securities | 19,900,000 | $ 0 | 19,900,000 | $ 3,075,000 | |
Collateral Pledged | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Investment securities pledged to secure public funds, fair value | 435,900,000 | 435,900,000 | 396,800,000 | ||
Equity Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Gains (losses) on investments | 2,000 | (14,000) | (8,000) | 8,000 | |
Debt Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Gains (losses) on investments | 22,000 | ||||
Investment securities | $ 3,100,000 | 3,100,000 | |||
Proceeds from sale of investment securities | 3,100,000 | ||||
Non-agency CMOs | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Gains (losses) on investments | $ 171,000 | ||||
Investment securities | 38,979,000 | 38,979,000 | $ 39,758,000 | ||
US Treasury Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Investment securities | $ 19,900,000 | $ 19,900,000 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of AFS Securities with Unrealized Losses (Details) $ in Thousands | Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Number of Securities | ||
Less Than 12 Months | security | 17 | 63 |
12 Months or More | security | 92 | 46 |
Total | security | 109 | 109 |
Fair Value | ||
Less Than 12 Months | $ 27,107 | $ 295,839 |
12 Months or More | 407,702 | 206,080 |
Total | 434,809 | 501,919 |
Unrealized Losses | ||
Less Than 12 Months | 1,394 | 20,185 |
12 Months or More | 57,925 | 29,855 |
Total | $ 59,319 | $ 50,040 |
U.S. Treasury securities | ||
Number of Securities | ||
Less Than 12 Months | security | 0 | 0 |
12 Months or More | security | 3 | 3 |
Total | security | 3 | 3 |
Fair Value | ||
Less Than 12 Months | $ 0 | $ 0 |
12 Months or More | 17,143 | 17,291 |
Total | 17,143 | 17,291 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | 2,917 | 2,779 |
Total | $ 2,917 | $ 2,779 |
States and political subdivisions | ||
Number of Securities | ||
Less Than 12 Months | security | 10 | 29 |
12 Months or More | security | 41 | 17 |
Total | security | 51 | 46 |
Fair Value | ||
Less Than 12 Months | $ 4,147 | $ 135,579 |
12 Months or More | 183,970 | 60,102 |
Total | 188,117 | 195,681 |
Unrealized Losses | ||
Less Than 12 Months | 294 | 13,809 |
12 Months or More | 35,396 | 14,621 |
Total | $ 35,690 | $ 28,430 |
GSE residential MBSs | ||
Number of Securities | ||
Less Than 12 Months | security | 0 | 5 |
12 Months or More | security | 15 | 10 |
Total | security | 15 | 15 |
Fair Value | ||
Less Than 12 Months | $ 0 | $ 26,100 |
12 Months or More | 57,351 | 33,302 |
Total | 57,351 | 59,402 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 925 |
12 Months or More | 5,044 | 3,451 |
Total | $ 5,044 | $ 4,376 |
GSE residential CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 5 | 8 |
12 Months or More | security | 14 | 9 |
Total | security | 19 | 17 |
Fair Value | ||
Less Than 12 Months | $ 16,044 | $ 28,732 |
12 Months or More | 55,993 | 39,646 |
Total | 72,037 | 68,378 |
Unrealized Losses | ||
Less Than 12 Months | 581 | 1,884 |
12 Months or More | 8,075 | 5,184 |
Total | $ 8,656 | $ 7,068 |
Non-agency CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 1 | 4 |
12 Months or More | security | 4 | 2 |
Total | security | 5 | 6 |
Fair Value | ||
Less Than 12 Months | $ 6,024 | $ 26,555 |
12 Months or More | 15,868 | 8,639 |
Total | 21,892 | 35,194 |
Unrealized Losses | ||
Less Than 12 Months | 512 | 1,135 |
12 Months or More | 4,555 | 1,648 |
Total | $ 5,067 | $ 2,783 |
Asset-backed | ||
Number of Securities | ||
Less Than 12 Months | security | 1 | 17 |
12 Months or More | security | 15 | 5 |
Total | security | 16 | 22 |
Fair Value | ||
Less Than 12 Months | $ 892 | $ 78,873 |
12 Months or More | 77,377 | 47,100 |
Total | 78,269 | 125,973 |
Unrealized Losses | ||
Less Than 12 Months | 7 | 2,432 |
12 Months or More | 1,938 | 2,172 |
Total | $ 1,945 | $ 4,604 |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Amortized Cost and Fair Values of AFS Securities by Contractual Maturity (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Amortized Cost | |
Due in one year or less | $ 0 |
Due after one year through five years | 31,439 |
Due after five years through ten years | 56,845 |
Due after ten years | 159,852 |
CMOs and MBSs | 191,273 |
Asset-backed | 113,813 |
Amortized Cost | 553,222 |
Fair Value | |
Due in one year or less | 0 |
Due after one year through five years | 27,291 |
Due after five years through ten years | 49,216 |
Due after ten years | 133,195 |
CMOs and MBSs | 173,145 |
Asset-backed | 112,315 |
Total Fair Value | $ 495,162 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sale of investment securities | $ 19,900 | $ 0 | $ 19,900 | $ 3,075 |
Gross gains | 2 | 0 | 2 | 25 |
Gross losses | $ 0 | $ 14 | $ 10 | $ 17 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans | $ 2,266,836,000 | $ 2,151,232,000 | ||
SBA, loan guarantee, percentage | 100% | |||
Amount of loan on which review have been made annually | $ 1,000,000 | |||
Amount of loan on which reviews require approval | $ 500,000 | |||
Loans that are deemed impaired, number of days past due (more than) | 90 days | |||
Appraisals, required period interval | 18 months | |||
Minimum amount on which annual updated appraisals for classified loans is required | $ 250,000 | |||
Allowance for credit loss impact of adoption | 28,278,000 | $ 28,383,000 | 25,178,000 | |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit loss impact of adoption | $ 2,423,000 | 2,423,000 | ||
PCI Loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans | $ 8,800,000 | |||
Maximum | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Percentage of loan-to-value ratio upon loan origination | 80% | |||
Percentage of loan-to-value ratios of the value of the real estate taken as collateral | 85% | |||
Percentage of strong loan-to-value (or lower) | 70% | |||
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit loss impact of adoption | $ 25,447,000 | 25,784,000 | ||
Commercial | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit loss impact of adoption | 3,740,000 | |||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans | 374,190,000 | 357,774,000 | ||
Commercial and industrial | Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit loss impact of adoption | 5,558,000 | $ 5,854,000 | ||
Commercial and industrial | Commercial | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit loss impact of adoption | 928,000 | |||
SBA | Commercial | 2021 Payment Deferrals | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
PPP Loan processing fee income | 88,000 | |||
PPP loans, allowance | 0 | |||
SBA | Commercial and industrial | SBA PPP Loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans | $ 6,200,000 | $ 13,800,000 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Loan Portfolio, Excluding Residential Loans Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 2,266,836 | $ 2,151,232 |
Commercial real estate | Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 376,350 | 315,770 |
Commercial real estate | Non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 630,514 | 608,043 |
Commercial real estate | Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 143,437 | 138,832 |
Commercial real estate | Non-owner occupied residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 100,391 | 104,604 |
Acquisition and development | 1-4 family residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 25,642 | 25,068 |
Acquisition and development | Commercial and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 153,279 | 158,308 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 374,190 | 357,774 |
Commercial and industrial | SBA | SBA PPP Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,200 | 13,800 |
Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,334 | 12,173 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 248,335 | |
Residential mortgage | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 248,335 | 229,849 |
Residential mortgage | Home equity - term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,223 | 5,505 |
Residential mortgage | Home equity - lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 188,736 | 183,241 |
Installment and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 10,405 | $ 12,065 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Amortized Cost of the Loan Portfolio, by Year of Origination, Loan Class, and Credit Quality (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | $ 2,266,836 | $ 2,151,232 |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 2,151,232 | |
Commercial real estate | Owner occupied | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 46,027 | |
2022 | 104,580 | |
2021 | 82,248 | |
2020 | 42,797 | |
2019 | 21,605 | |
Prior | 73,264 | |
Revolving Loans Amortized Basis | 5,829 | |
Revolving Loans Converted to Term | 0 | |
Total | 376,350 | 315,770 |
Current Period Gross Charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 315,770 | |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 36,918 | |
2022 | 98,722 | |
2021 | 206,053 | |
2020 | 85,808 | |
2019 | 63,827 | |
Prior | 137,805 | |
Revolving Loans Amortized Basis | 510 | |
Revolving Loans Converted to Term | 871 | |
Total | 630,514 | 608,043 |
Current Period Gross Charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 608,043 | |
Commercial real estate | Multi-family | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 2,255 | |
2022 | 59,413 | |
2021 | 8,732 | |
2020 | 12,765 | |
2019 | 7,791 | |
Prior | 52,331 | |
Revolving Loans Amortized Basis | 150 | |
Revolving Loans Converted to Term | 0 | |
Total | 143,437 | 138,832 |
Current Period Gross Charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 138,832 | |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 7,139 | |
2022 | 23,451 | |
2021 | 18,999 | |
2020 | 10,005 | |
2019 | 6,775 | |
Prior | 32,519 | |
Revolving Loans Amortized Basis | 1,503 | |
Revolving Loans Converted to Term | 0 | |
Total | 100,391 | 104,604 |
Current Period Gross Charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 12 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 12 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 104,604 | |
Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 13,111 | |
2022 | 12,383 | |
2021 | 148 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 25,642 | 25,068 |
Current Period Gross Charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 25,068 | |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 21,879 | |
2022 | 52,815 | |
2021 | 50,957 | |
2020 | 11,169 | |
2019 | 114 | |
Prior | 3,700 | |
Revolving Loans Amortized Basis | 6,655 | |
Revolving Loans Converted to Term | 5,990 | |
Total | 153,279 | 158,308 |
Current Period Gross Charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 158,308 | |
Commercial and Industrial | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 55,922 | |
2022 | 78,699 | |
2021 | 80,258 | |
2020 | 25,966 | |
2019 | 12,245 | |
Prior | 23,304 | |
Revolving Loans Amortized Basis | 95,573 | |
Revolving Loans Converted to Term | 2,223 | |
Total | 374,190 | 357,774 |
Current Period Gross Charge-offs | ||
2023 | 0 | |
2022 | 161 | |
2021 | 106 | |
2020 | 0 | |
2019 | 0 | |
Prior | 8 | |
Revolving Loans Amortized Basis | 473 | |
Revolving Loans Converted to Term | 0 | |
Total | 748 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 357,774 | |
Municipal | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 4 | |
2021 | 3,403 | |
2020 | 0 | |
2019 | 0 | |
Prior | 6,927 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 10,334 | 12,173 |
Current Period Gross Charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 12,173 | |
Residential mortgage | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 27,657 | |
2022 | 65,681 | |
2021 | 35,176 | |
2020 | 8,071 | |
2019 | 7,862 | |
Prior | 103,246 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 642 | |
Total | 248,335 | |
Current Period Gross Charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 58 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 58 | |
Residential mortgage | Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 27,657 | |
2022 | 65,681 | |
2021 | 35,176 | |
2020 | 8,071 | |
2019 | 7,690 | |
Prior | 100,990 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 642 | |
Total | 245,907 | |
Residential mortgage | Nonperforming | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 172 | |
Prior | 2,256 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 2,428 | |
Residential mortgage | First lien | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 248,335 | 229,849 |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 229,849 | |
Residential mortgage | Home equity - term | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 553 | |
2022 | 750 | |
2021 | 140 | |
2020 | 443 | |
2019 | 124 | |
Prior | 3,213 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 5,223 | 5,505 |
Current Period Gross Charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 5,505 | |
Residential mortgage | Home equity - term | Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 553 | |
2022 | 750 | |
2021 | 140 | |
2020 | 443 | |
2019 | 124 | |
Prior | 3,210 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 5,220 | |
Residential mortgage | Home equity - term | Nonperforming | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 3 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 3 | |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 112,459 | |
Revolving Loans Converted to Term | 76,277 | |
Total | 188,736 | 183,241 |
Current Period Gross Charge-offs | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 40 | |
Revolving Loans Converted to Term | 0 | |
Total | 40 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 183,241 | |
Residential mortgage | Home equity - lines of credit | Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 111,582 | |
Revolving Loans Converted to Term | 76,259 | |
Total | 187,841 | |
Residential mortgage | Home equity - lines of credit | Nonperforming | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 877 | |
Revolving Loans Converted to Term | 18 | |
Total | 895 | |
Installment and other loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 718 | |
2022 | 457 | |
2021 | 357 | |
2020 | 118 | |
2019 | 880 | |
Prior | 1,355 | |
Revolving Loans Amortized Basis | 6,520 | |
Revolving Loans Converted to Term | 0 | |
Total | 10,405 | 12,065 |
Current Period Gross Charge-offs | ||
2023 | 139 | |
2022 | 24 | |
2021 | 0 | |
2020 | 0 | |
2019 | 4 | |
Prior | 10 | |
Revolving Loans Amortized Basis | 21 | |
Revolving Loans Converted to Term | 0 | |
Total | 198 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 12,065 | |
Installment and other loans | Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 718 | |
2022 | 457 | |
2021 | 357 | |
2020 | 118 | |
2019 | 861 | |
Prior | 1,350 | |
Revolving Loans Amortized Basis | 6,516 | |
Revolving Loans Converted to Term | 0 | |
Total | 10,377 | |
Installment and other loans | Nonperforming | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 19 | |
Prior | 5 | |
Revolving Loans Amortized Basis | 4 | |
Revolving Loans Converted to Term | 0 | |
Total | 28 | |
Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 2,073,848 | |
Pass | Commercial real estate | Owner occupied | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 46,027 | |
2022 | 94,573 | |
2021 | 79,707 | |
2020 | 22,354 | |
2019 | 21,605 | |
Prior | 66,222 | |
Revolving Loans Amortized Basis | 5,372 | |
Revolving Loans Converted to Term | 0 | |
Total | 335,860 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 305,159 | |
Pass | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 36,918 | |
2022 | 98,722 | |
2021 | 206,053 | |
2020 | 85,808 | |
2019 | 63,827 | |
Prior | 135,331 | |
Revolving Loans Amortized Basis | 510 | |
Revolving Loans Converted to Term | 871 | |
Total | 628,040 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 601,244 | |
Pass | Commercial real estate | Multi-family | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 2,255 | |
2022 | 59,413 | |
2021 | 8,732 | |
2020 | 12,765 | |
2019 | 7,791 | |
Prior | 50,300 | |
Revolving Loans Amortized Basis | 150 | |
Revolving Loans Converted to Term | 0 | |
Total | 141,406 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 130,851 | |
Pass | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 7,137 | |
2022 | 23,451 | |
2021 | 18,807 | |
2020 | 10,005 | |
2019 | 6,775 | |
Prior | 31,144 | |
Revolving Loans Amortized Basis | 1,503 | |
Revolving Loans Converted to Term | 0 | |
Total | 98,822 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 102,674 | |
Pass | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 13,111 | |
2022 | 12,383 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 25,494 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 25,068 | |
Pass | Acquisition and development | Commercial and land development | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 21,879 | |
2022 | 52,815 | |
2021 | 50,957 | |
2020 | 9,946 | |
2019 | 114 | |
Prior | 1,841 | |
Revolving Loans Amortized Basis | 6,655 | |
Revolving Loans Converted to Term | 5,990 | |
Total | 150,197 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 142,424 | |
Pass | Commercial and Industrial | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 55,922 | |
2022 | 77,312 | |
2021 | 75,336 | |
2020 | 25,943 | |
2019 | 10,988 | |
Prior | 22,123 | |
Revolving Loans Amortized Basis | 92,100 | |
Revolving Loans Converted to Term | 2,223 | |
Total | 361,947 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 331,103 | |
Pass | Municipal | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 4 | |
2021 | 3,403 | |
2020 | 0 | |
2019 | 0 | |
Prior | 6,927 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 10,334 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 12,173 | |
Pass | Residential mortgage | First lien | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 222,849 | |
Pass | Residential mortgage | Home equity - term | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 5,485 | |
Pass | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 182,801 | |
Pass | Installment and other loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 12,017 | |
Special Mention | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 32,938 | |
Special Mention | Commercial real estate | Owner occupied | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 10,007 | |
2021 | 2,541 | |
2020 | 0 | |
2019 | 0 | |
Prior | 2,398 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 14,946 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 2,109 | |
Special Mention | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 2,144 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 2,144 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 4,243 | |
Special Mention | Commercial real estate | Multi-family | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 2,031 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 2,031 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 7,739 | |
Special Mention | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 894 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 894 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 810 | |
Special Mention | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 148 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 148 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Special Mention | Acquisition and development | Commercial and land development | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 1,223 | |
2019 | 0 | |
Prior | 442 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 1,665 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 458 | |
Special Mention | Commercial and Industrial | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 1,387 | |
2021 | 3,699 | |
2020 | 15 | |
2019 | 1,248 | |
Prior | 386 | |
Revolving Loans Amortized Basis | 3,235 | |
Revolving Loans Converted to Term | 0 | |
Total | 9,970 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 17,579 | |
Special Mention | Municipal | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Special Mention | Residential mortgage | First lien | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Special Mention | Residential mortgage | Home equity - term | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Special Mention | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Special Mention | Installment and other loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Substandard - Non-IEL | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 13,802 | |
Substandard - Non-IEL | Commercial real estate | Owner occupied | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 6,122 | |
2019 | 0 | |
Prior | 2,165 | |
Revolving Loans Amortized Basis | 457 | |
Revolving Loans Converted to Term | 0 | |
Total | 8,744 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 3,532 | |
Substandard - Non-IEL | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 78 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 78 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 2,273 | |
Substandard - Non-IEL | Commercial real estate | Multi-family | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 242 | |
Substandard - Non-IEL | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 385 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 385 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 482 | |
Substandard - Non-IEL | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Substandard - Non-IEL | Acquisition and development | Commercial and land development | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Substandard - Non-IEL | Commercial and Industrial | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 1,223 | |
2020 | 0 | |
2019 | 9 | |
Prior | 287 | |
Revolving Loans Amortized Basis | 92 | |
Revolving Loans Converted to Term | 0 | |
Total | 1,611 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 7,013 | |
Substandard - Non-IEL | Municipal | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Substandard - Non-IEL | Residential mortgage | First lien | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 215 | |
Substandard - Non-IEL | Residential mortgage | Home equity - term | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Substandard - Non-IEL | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 45 | |
Substandard - Non-IEL | Installment and other loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Substandard - IEL | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 21,265 | |
Substandard - IEL | Commercial real estate | Owner occupied | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 14,321 | |
2019 | 0 | |
Prior | 2,479 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 16,800 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 2,767 | |
Substandard - IEL | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 252 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 252 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Substandard - IEL | Commercial real estate | Multi-family | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Substandard - IEL | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 2 | |
2022 | 0 | |
2021 | 192 | |
2020 | 0 | |
2019 | 0 | |
Prior | 96 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 290 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 81 | |
Substandard - IEL | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 0 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Substandard - IEL | Acquisition and development | Commercial and land development | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 1,417 | |
Revolving Loans Amortized Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 1,417 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 15,426 | |
Substandard - IEL | Commercial and Industrial | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 8 | |
2019 | 0 | |
Prior | 508 | |
Revolving Loans Amortized Basis | 146 | |
Revolving Loans Converted to Term | 0 | |
Total | 662 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 31 | |
Substandard - IEL | Municipal | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Substandard - IEL | Residential mortgage | First lien | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 2,520 | |
Substandard - IEL | Residential mortgage | Home equity - term | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 5 | |
Substandard - IEL | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 395 | |
Substandard - IEL | Installment and other loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 40 | |
Doubtful | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Commercial real estate | Owner occupied | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Commercial real estate | Non-owner occupied | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Commercial real estate | Multi-family | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Acquisition and development | Commercial and land development | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Commercial and Industrial | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Municipal | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Residential mortgage | First lien | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Residential mortgage | Home equity - term | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
Doubtful | Installment and other loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
PCI Loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | $ 8,800 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 9,379 | |
PCI Loans | Commercial real estate | Owner occupied | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 2,203 | |
PCI Loans | Commercial real estate | Non-owner occupied | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 283 | |
PCI Loans | Commercial real estate | Multi-family | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
PCI Loans | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 557 | |
PCI Loans | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
PCI Loans | Acquisition and development | Commercial and land development | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
PCI Loans | Commercial and Industrial | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 2,048 | |
PCI Loans | Municipal | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
PCI Loans | Residential mortgage | First lien | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 4,265 | |
PCI Loans | Residential mortgage | Home equity - term | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 15 | |
PCI Loans | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | 0 | |
PCI Loans | Installment and other loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Loans, net | $ 8 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Amortized Cost of Nonaccrual Loans By Class, With And Without Loan Reserves (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | $ 4 | |
Nonaccrual loans with no related ACL | 22,320 | |
Loans Past Due 90+ Accruing | 277 | |
Total nonaccrual loans | 22,324 | $ 20,583 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 0 | |
Nonaccrual loans with no related ACL | 16,800 | |
Loans Past Due 90+ Accruing | 0 | |
Total nonaccrual loans | 16,800 | 2,767 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 0 | |
Nonaccrual loans with no related ACL | 252 | |
Loans Past Due 90+ Accruing | 0 | |
Total nonaccrual loans | 252 | 0 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 0 | |
Nonaccrual loans with no related ACL | 288 | |
Loans Past Due 90+ Accruing | 0 | |
Total nonaccrual loans | 288 | 81 |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 0 | |
Nonaccrual loans with no related ACL | 1,417 | |
Loans Past Due 90+ Accruing | 0 | |
Total nonaccrual loans | 1,417 | 15,426 |
Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 0 | |
Nonaccrual loans with no related ACL | 662 | |
Loans Past Due 90+ Accruing | 0 | |
Total nonaccrual loans | 662 | 31 |
Residential mortgage | First lien | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 0 | |
Nonaccrual loans with no related ACL | 2,025 | |
Loans Past Due 90+ Accruing | 277 | |
Total nonaccrual loans | 2,025 | 1,838 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 0 | |
Nonaccrual loans with no related ACL | 3 | |
Loans Past Due 90+ Accruing | 0 | |
Total nonaccrual loans | 3 | 5 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 0 | |
Nonaccrual loans with no related ACL | 849 | |
Loans Past Due 90+ Accruing | 0 | |
Total nonaccrual loans | 849 | 395 |
Installment and other loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans with a related ACL | 4 | |
Nonaccrual loans with no related ACL | 24 | |
Loans Past Due 90+ Accruing | 0 | |
Total nonaccrual loans | $ 28 | $ 40 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Amortized Cost Basis of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 2,266,836 | $ 2,151,232 |
Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 654 | |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 18,757 | |
Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8 | |
Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,792 | |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4 | |
Total Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 22,215 | |
Commercial real estate | Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 376,350 | 315,770 |
Commercial real estate | Owner occupied | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Owner occupied | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 16,800 | |
Commercial real estate | Owner occupied | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Owner occupied | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Owner occupied | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Owner occupied | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Owner occupied | Total Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 16,800 | |
Commercial real estate | Non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 630,514 | 608,043 |
Commercial real estate | Non-owner occupied | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 252 | |
Commercial real estate | Non-owner occupied | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied | Total Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 252 | |
Commercial real estate | Non-owner occupied residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 100,391 | 104,604 |
Commercial real estate | Non-owner occupied residential | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied residential | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 288 | |
Commercial real estate | Non-owner occupied residential | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied residential | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied residential | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied residential | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied residential | Total Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 288 | |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 374,190 | 357,774 |
Commercial and industrial | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 654 | |
Commercial and industrial | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial and industrial | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8 | |
Commercial and industrial | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial and industrial | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial and industrial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial and industrial | Total Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 662 | |
Acquisition and development | Commercial and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 153,279 | 158,308 |
Acquisition and development | Commercial and land development | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Acquisition and development | Commercial and land development | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,417 | |
Acquisition and development | Commercial and land development | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Acquisition and development | Commercial and land development | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Acquisition and development | Commercial and land development | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Acquisition and development | Commercial and land development | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Acquisition and development | Commercial and land development | Total Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,417 | |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 248,335 | |
Residential mortgage | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 248,335 | 229,849 |
Residential mortgage | First lien | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | First lien | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | First lien | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | First lien | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | First lien | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,940 | |
Residential mortgage | First lien | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | First lien | Total Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,940 | |
Residential mortgage | Home equity - term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,223 | 5,505 |
Residential mortgage | Home equity - term | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | Home equity - term | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | Home equity - term | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | Home equity - term | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | Home equity - term | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3 | |
Residential mortgage | Home equity - term | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | Home equity - term | Total Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3 | |
Residential mortgage | Home equity - lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 188,736 | 183,241 |
Residential mortgage | Home equity - lines of credit | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | Home equity - lines of credit | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | Home equity - lines of credit | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | Home equity - lines of credit | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | Home equity - lines of credit | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 849 | |
Residential mortgage | Home equity - lines of credit | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential mortgage | Home equity - lines of credit | Total Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 849 | |
Installment and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 10,405 | $ 12,065 |
Installment and other loans | Business Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Installment and other loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Installment and other loans | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Installment and other loans | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Installment and other loans | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Installment and other loans | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4 | |
Installment and other loans | Total Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 4 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Impaired Loans by Segment and Class (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Financing Receivable, Impaired [Line Items] | |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | $ 178 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 178 |
Impaired Loans with a Specific Allowance, Related Allowance | 28 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 21,087 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 23,402 |
Commercial real estate | 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) | 2,767 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 3,799 |
Commercial real estate | Non-owner occupied residential | |
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) | 81 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 207 |
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) | 15,426 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 15,426 |
Commercial and Industrial | |
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) | 31 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 112 |
Residential mortgage | First lien | |
Financing Receivable, Impaired [Line Items] | |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 178 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 178 |
Impaired Loans with a Specific Allowance, Related Allowance | 28 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 2,342 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 3,126 |
Residential mortgage | Home equity - term | |
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) | 5 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 8 |
Residential mortgage | Home equity - lines of credit | |
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) | 395 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 684 |
Installment and other loans | |
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) | 40 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | $ 40 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Average Recorded Investment in Impaired Loans and Related Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | $ 5,845 | $ 6,186 |
Interest Income Recognized | 10 | 25 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 2,881 | 3,126 |
Interest Income Recognized | 0 | 0 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 93 | 100 |
Interest Income Recognized | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 51 | 132 |
Interest Income Recognized | 0 | 0 |
Residential mortgage | First lien | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 2,390 | 2,370 |
Interest Income Recognized | 10 | 25 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 5 | 6 |
Interest Income Recognized | 0 | 0 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 382 | 407 |
Interest Income Recognized | 0 | 0 |
Installment and other loans | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 43 | 45 |
Interest Income Recognized | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) bank contract | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | bank | 13 |
Recorded Investment | $ 896 |
Accruing | Residential mortgage | First lien | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | contract | 8 |
Recorded Investment | $ 682 |
Nonaccruing | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | bank | 5 |
Recorded Investment | $ 214 |
Nonaccruing | Residential mortgage | First lien | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | bank | 4 |
Recorded Investment | $ 212 |
Nonaccruing | Installment and other loans | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | bank | 1 |
Recorded Investment | $ 2 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Portfolio Summarized by Aging Categories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 2,266,836 | $ 2,151,232 |
Loans, net | 2,151,232 | |
90+ (still accruing) | 439 | |
Non- Accrual | 20,583 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 2,141,853 | |
90+ (still accruing) | 132 | |
Non- Accrual | 20,583 | |
Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 9,379 | |
90+ (still accruing) | 307 | |
Non- Accrual | 0 | |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3,701 | |
Loans, net | 6,665 | |
30 to 59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 6,338 | |
30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 327 | |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 2,449 | |
Loans, net | 646 | |
60 to 89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 567 | |
60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 79 | |
90+ Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,435 | |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 7,585 | |
Loans, net | 7,750 | |
Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 7,037 | |
Total Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 713 | |
Loans Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 2,259,251 | |
Loans, net | 2,122,899 | |
Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 2,114,233 | |
Loans Not Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 8,666 | |
Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 376,350 | 315,770 |
Loans, net | 315,770 | |
Commercial real estate | Owner occupied | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 376,350 | |
Loans, net | 313,567 | |
90+ (still accruing) | 0 | |
Non- Accrual | 2,767 | |
Commercial real estate | Owner occupied | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 2,203 | |
90+ (still accruing) | 0 | |
Non- Accrual | 0 | |
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] | ||
Loans | 0 | |
Loans, net | 31 | |
Commercial real estate | Owner occupied | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 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] | ||
Loans | 230 | |
Loans, net | 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] | ||
Loans, net | 0 | |
Commercial real estate | Owner occupied | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 131 | |
Commercial real estate | Owner occupied | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 361 | |
Loans, net | 31 | |
Commercial real estate | Owner occupied | Total Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 0 | |
Commercial real estate | Owner occupied | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 375,989 | |
Loans, net | 310,769 | |
Commercial real estate | Owner occupied | Loans Not Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 2,203 | |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 630,514 | 608,043 |
Loans, net | 608,043 | |
Commercial real estate | Non-owner occupied | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 630,514 | |
Loans, net | 607,760 | |
90+ (still accruing) | 0 | |
Non- Accrual | 0 | |
Commercial real estate | Non-owner occupied | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 283 | |
90+ (still accruing) | 0 | |
Non- Accrual | 0 | |
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] | ||
Loans | 0 | |
Loans, net | 0 | |
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] | ||
Loans, net | 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] | ||
Loans | 0 | |
Loans, net | 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] | ||
Loans, net | 0 | |
Commercial real estate | Non-owner occupied | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Loans, net | 0 | |
Commercial real estate | Non-owner occupied | Total Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 0 | |
Commercial real estate | Non-owner occupied | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 630,514 | |
Loans, net | 607,760 | |
Commercial real estate | Non-owner occupied | Loans Not Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 283 | |
Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 143,437 | 138,832 |
Loans, net | 138,832 | |
Commercial real estate | Multi-family | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 143,437 | |
Loans, net | 138,832 | |
90+ (still accruing) | 0 | |
Non- Accrual | 0 | |
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] | ||
Loans | 0 | |
Loans, net | 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] | ||
Loans | 0 | |
Loans, net | 0 | |
Commercial real estate | Multi-family | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate | Multi-family | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Loans, net | 0 | |
Commercial real estate | Multi-family | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 143,437 | |
Loans, net | 138,832 | |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 100,391 | 104,604 |
Loans, net | 104,604 | |
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] | ||
Loans | 100,391 | |
Loans, net | 104,047 | |
90+ (still accruing) | 0 | |
Non- Accrual | 81 | |
Commercial real estate | Non-owner occupied residential | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 557 | |
90+ (still accruing) | 105 | |
Non- Accrual | 0 | |
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] | ||
Loans | 0 | |
Loans, net | 184 | |
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] | ||
Loans, net | 0 | |
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] | ||
Loans | 0 | |
Loans, net | 0 | |
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] | ||
Loans, net | 0 | |
Commercial real estate | Non-owner occupied residential | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Commercial real estate | Non-owner occupied residential | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Loans, net | 184 | |
Commercial real estate | Non-owner occupied residential | Total Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 105 | |
Commercial real estate | Non-owner occupied residential | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 100,391 | |
Loans, net | 103,782 | |
Commercial real estate | Non-owner occupied residential | Loans Not Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 452 | |
Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 25,642 | 25,068 |
Loans, net | 25,068 | |
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] | ||
Loans | 25,642 | |
Loans, net | 25,068 | |
90+ (still accruing) | 0 | |
Non- Accrual | 0 | |
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] | ||
Loans | 0 | |
Loans, net | 446 | |
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] | ||
Loans | 0 | |
Loans, net | 0 | |
Acquisition and development | 1-4 family residential construction | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Acquisition and development | 1-4 family residential construction | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Loans, net | 446 | |
Acquisition and development | 1-4 family residential construction | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 25,642 | |
Loans, net | 24,622 | |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 153,279 | 158,308 |
Loans, net | 158,308 | |
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] | ||
Loans | 153,279 | |
Loans, net | 158,308 | |
90+ (still accruing) | 0 | |
Non- Accrual | 15,426 | |
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] | ||
Loans | 0 | |
Loans, net | 269 | |
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] | ||
Loans | 0 | |
Loans, net | 0 | |
Acquisition and development | Commercial and land development | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Acquisition and development | Commercial and land development | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Loans, net | 269 | |
Acquisition and development | Commercial and land development | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 153,279 | |
Loans, net | 142,613 | |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 374,190 | 357,774 |
Loans, net | 357,774 | |
Commercial and industrial | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 374,190 | |
Loans, net | 355,726 | |
90+ (still accruing) | 0 | |
Non- Accrual | 31 | |
Commercial and industrial | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 2,048 | |
90+ (still accruing) | 0 | |
Non- Accrual | 0 | |
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] | ||
Loans | 893 | |
Loans, net | 464 | |
Commercial and industrial | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 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] | ||
Loans | 16 | |
Loans, net | 52 | |
Commercial and industrial | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 0 | |
Commercial and industrial | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 38 | |
Commercial and industrial | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 947 | |
Loans, net | 516 | |
Commercial and industrial | Total Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 0 | |
Commercial and industrial | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 373,243 | |
Loans, net | 355,179 | |
Commercial and industrial | Loans Not Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 2,048 | |
Municipal | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 10,334 | 12,173 |
Loans, net | 12,173 | |
Municipal | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 10,334 | |
Loans, net | 12,173 | |
90+ (still accruing) | 0 | |
Non- Accrual | 0 | |
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] | ||
Loans | 0 | |
Loans, net | 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] | ||
Loans | 0 | |
Loans, net | 0 | |
Municipal | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Municipal | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Loans, net | 0 | |
Municipal | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 10,334 | |
Loans, net | 12,173 | |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 248,335 | |
Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 248,335 | 229,849 |
Loans, net | 229,849 | |
Residential mortgage | First lien | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 248,335 | |
Loans, net | 225,584 | |
90+ (still accruing) | 132 | |
Non- Accrual | 1,838 | |
Residential mortgage | First lien | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 4,265 | |
90+ (still accruing) | 202 | |
Non- Accrual | 0 | |
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] | ||
Loans | 1,564 | |
Loans, net | 3,485 | |
Residential mortgage | First lien | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 327 | |
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] | ||
Loans | 1,311 | |
Loans, net | 414 | |
Residential mortgage | First lien | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 79 | |
Residential mortgage | First lien | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 749 | |
Residential mortgage | First lien | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3,624 | |
Loans, net | 4,031 | |
Residential mortgage | First lien | Total Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 608 | |
Residential mortgage | First lien | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 244,711 | |
Loans, net | 219,715 | |
Residential mortgage | First lien | Loans Not Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 3,657 | |
Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 5,223 | 5,505 |
Loans, net | 5,505 | |
Residential mortgage | Home equity - term | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 5,223 | |
Loans, net | 5,490 | |
90+ (still accruing) | 0 | |
Non- Accrual | 5 | |
Residential mortgage | Home equity - term | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 15 | |
90+ (still accruing) | 0 | |
Non- Accrual | 0 | |
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] | ||
Loans | 0 | |
Loans, net | 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] | ||
Loans, net | 0 | |
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] | ||
Loans | 0 | |
Loans, net | 0 | |
Residential mortgage | Home equity - term | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 0 | |
Residential mortgage | Home equity - term | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Residential mortgage | Home equity - term | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | |
Loans, net | 0 | |
Residential mortgage | Home equity - term | Total Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 0 | |
Residential mortgage | Home equity - term | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 5,223 | |
Loans, net | 5,485 | |
Residential mortgage | Home equity - term | Loans Not Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 15 | |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 188,736 | 183,241 |
Loans, net | 183,241 | |
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] | ||
Loans | 188,736 | |
Loans, net | 183,241 | |
90+ (still accruing) | 0 | |
Non- Accrual | 395 | |
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] | ||
Loans | 1,174 | |
Loans, net | 1,395 | |
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] | ||
Loans | 887 | |
Loans, net | 101 | |
Residential mortgage | Home equity - lines of credit | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 513 | |
Residential mortgage | Home equity - lines of credit | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 2,574 | |
Loans, net | 1,496 | |
Residential mortgage | Home equity - lines of credit | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 186,162 | |
Loans, net | 181,350 | |
Installment and other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 10,405 | 12,065 |
Loans, net | 12,065 | |
Installment and other loans | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 10,405 | |
Loans, net | 12,057 | |
90+ (still accruing) | 0 | |
Non- Accrual | 40 | |
Installment and other loans | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 8 | |
90+ (still accruing) | 0 | |
Non- Accrual | 0 | |
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] | ||
Loans | 70 | |
Loans, net | 64 | |
Installment and other loans | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 0 | |
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] | ||
Loans | 5 | |
Loans, net | 0 | |
Installment and other loans | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 0 | |
Installment and other loans | 90+ Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 4 | |
Installment and other loans | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 79 | |
Loans, net | 64 | |
Installment and other loans | Total Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | 0 | |
Installment and other loans | Loans Not Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 10,326 | |
Loans, net | 11,953 | |
Installment and other loans | Loans Not Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net | $ 8 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jan. 01, 2023 | |
Activity in allowance for loan losses | |||||
Balance, beginning of period | $ 28,383 | $ 25,178 | |||
Balance, beginning of period | $ 23,279 | 25,178 | $ 21,180 | ||
Impact of adopting CECL | 28,278 | 28,278 | |||
Provision for credit losses | 136 | 1,500 | 1,264 | 3,575 | |
Provision for loan losses | 1,500 | 1,264 | 3,575 | ||
Charge-offs | (342) | (111) | (1,056) | (254) | |
Recoveries | 101 | 41 | 469 | 208 | |
Balance end of period | 28,278 | 28,278 | |||
Balance, end of period | 24,709 | 24,709 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 2,423 | ||||
Impact of adopting CECL | $ 2,423 | ||||
Unallocated | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 0 | ||||
Balance, beginning of period | 237 | 245 | 237 | ||
Impact of adopting CECL | 0 | 0 | |||
Provision for credit losses | 0 | 0 | |||
Provision for loan losses | 8 | 8 | |||
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Balance end of period | 0 | 0 | |||
Balance, end of period | 245 | 245 | |||
Unallocated | Cumulative Effect, Period of Adoption, Adjustment | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | (245) | ||||
Impact of adopting CECL | |||||
Commercial | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 25,784 | ||||
Balance, beginning of period | 19,815 | 21,301 | 17,943 | ||
Impact of adopting CECL | 25,447 | 25,447 | |||
Provision for credit losses | (121) | 977 | |||
Provision for loan losses | 1,188 | 3,046 | |||
Charge-offs | (267) | (87) | (760) | (202) | |
Recoveries | 51 | 33 | 189 | 162 | |
Balance end of period | 25,447 | 25,447 | |||
Balance, end of period | 20,949 | 20,949 | |||
Commercial | Cumulative Effect, Period of Adoption, Adjustment | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 3,740 | ||||
Impact of adopting CECL | |||||
Commercial | Commercial Real Estate | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 16,996 | ||||
Balance, beginning of period | 12,294 | 13,558 | 12,037 | ||
Impact of adopting CECL | 16,840 | 16,840 | |||
Provision for credit losses | (173) | 335 | |||
Provision for loan losses | 551 | 776 | |||
Charge-offs | 0 | 0 | (12) | 0 | |
Recoveries | 17 | 0 | 102 | 32 | |
Balance end of period | 16,840 | 16,840 | |||
Balance, end of period | 12,845 | 12,845 | |||
Commercial | Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjustment | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 2,857 | ||||
Impact of adopting CECL | |||||
Commercial | Acquisition and Development | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 2,767 | ||||
Balance, beginning of period | 3,024 | 3,214 | 2,062 | ||
Impact of adopting CECL | 2,893 | 2,893 | |||
Provision for credit losses | 125 | (111) | |||
Provision for loan losses | 342 | 1,295 | |||
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 1 | 1 | 4 | 10 | |
Balance end of period | 2,893 | 2,893 | |||
Balance, end of period | 3,367 | 3,367 | |||
Commercial | Acquisition and Development | Cumulative Effect, Period of Adoption, Adjustment | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | (214) | ||||
Impact of adopting CECL | |||||
Commercial | Commercial and Industrial | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 5,854 | ||||
Balance, beginning of period | 4,471 | 4,505 | 3,814 | ||
Impact of adopting CECL | 5,558 | 5,558 | |||
Provision for credit losses | (62) | 790 | |||
Provision for loan losses | 296 | 980 | |||
Charge-offs | (267) | (87) | (748) | (202) | |
Recoveries | 33 | 32 | 83 | 120 | |
Balance end of period | 5,558 | 5,558 | |||
Balance, end of period | 4,712 | 4,712 | |||
Commercial | Commercial and Industrial | Cumulative Effect, Period of Adoption, Adjustment | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 928 | ||||
Impact of adopting CECL | |||||
Commercial | Municipal | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 167 | ||||
Balance, beginning of period | 26 | 24 | 30 | ||
Impact of adopting CECL | 156 | 156 | |||
Provision for credit losses | (11) | (37) | |||
Provision for loan losses | (1) | (5) | |||
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Balance end of period | 156 | 156 | |||
Balance, end of period | 25 | 25 | |||
Commercial | Municipal | Cumulative Effect, Period of Adoption, Adjustment | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 169 | ||||
Impact of adopting CECL | |||||
Consumer | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 2,599 | ||||
Balance, beginning of period | 3,227 | 3,632 | 3,000 | ||
Impact of adopting CECL | 2,831 | 2,831 | |||
Provision for credit losses | 257 | 287 | |||
Provision for loan losses | 304 | 521 | |||
Charge-offs | (75) | (24) | (296) | (52) | |
Recoveries | 50 | 8 | 280 | 46 | |
Balance end of period | 2,831 | 2,831 | |||
Balance, end of period | 3,515 | 3,515 | |||
Consumer | Cumulative Effect, Period of Adoption, Adjustment | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | (1,072) | ||||
Impact of adopting CECL | |||||
Consumer | Residential Mortgage | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 2,307 | ||||
Balance, beginning of period | 3,004 | 3,444 | 2,785 | ||
Impact of adopting CECL | 2,577 | 2,577 | |||
Provision for credit losses | 239 | 163 | |||
Provision for loan losses | 309 | 508 | |||
Charge-offs | 0 | 0 | (98) | (10) | |
Recoveries | 31 | 2 | 189 | 32 | |
Balance end of period | 2,577 | 2,577 | |||
Balance, end of period | 3,315 | 3,315 | |||
Consumer | Residential Mortgage | Cumulative Effect, Period of Adoption, Adjustment | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | (1,121) | ||||
Impact of adopting CECL | |||||
Consumer | Installment and Other | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | 292 | ||||
Balance, beginning of period | 223 | 188 | 215 | ||
Impact of adopting CECL | 254 | 254 | |||
Provision for credit losses | 18 | 124 | |||
Provision for loan losses | (5) | 13 | |||
Charge-offs | (75) | (24) | (198) | (42) | |
Recoveries | 19 | 6 | 91 | 14 | |
Balance end of period | $ 254 | 254 | |||
Balance, end of period | $ 200 | $ 200 | |||
Consumer | Installment and Other | Cumulative Effect, Period of Adoption, Adjustment | |||||
Activity in allowance for loan losses | |||||
Balance, beginning of period | $ 49 | ||||
Impact of adopting CECL |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Ending Loan Balances Evaluated for Impairment and Related Allowance for Loan Losses Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans allocated by: | ||||
Individually evaluated for impairment | $ 21,265 | |||
Collectively evaluated for impairment | 2,129,967 | |||
Total Loans | 2,151,232 | |||
ALL allocated by: | ||||
Individually evaluated for impairment | 28 | |||
Collectively evaluated for impairment | 25,150 | |||
Total allowance for loan losses | 25,178 | $ 24,709 | $ 23,279 | $ 21,180 |
Commercial and Industrial | ||||
Loans allocated by: | ||||
Total Loans | 357,774 | |||
Municipal | ||||
Loans allocated by: | ||||
Total Loans | 12,173 | |||
Installment and Other | ||||
Loans allocated by: | ||||
Total Loans | 12,065 | |||
Commercial | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 18,305 | |||
Collectively evaluated for impairment | 1,702,267 | |||
Total Loans | 1,720,572 | |||
ALL allocated by: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 21,301 | |||
Total allowance for loan losses | 21,301 | |||
Commercial | Commercial Real Estate | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 2,848 | |||
Collectively evaluated for impairment | 1,164,401 | |||
Total Loans | 1,167,249 | |||
ALL allocated by: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 13,558 | |||
Total allowance for loan losses | 13,558 | |||
Commercial | Acquisition and Development | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 15,426 | |||
Collectively evaluated for impairment | 167,950 | |||
Total Loans | 183,376 | |||
ALL allocated by: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 3,214 | |||
Total allowance for loan losses | 3,214 | |||
Commercial | Commercial and Industrial | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 31 | |||
Collectively evaluated for impairment | 357,743 | |||
Total Loans | 357,774 | |||
ALL allocated by: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 4,505 | |||
Total allowance for loan losses | 4,505 | |||
Commercial | Municipal | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 12,173 | |||
Total Loans | 12,173 | |||
ALL allocated by: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 24 | |||
Total allowance for loan losses | 24 | |||
Consumer | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 2,960 | |||
Collectively evaluated for impairment | 427,700 | |||
Total Loans | 430,660 | |||
ALL allocated by: | ||||
Individually evaluated for impairment | 28 | |||
Collectively evaluated for impairment | 3,604 | |||
Total allowance for loan losses | 3,632 | |||
Consumer | Residential Mortgage | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 2,920 | |||
Collectively evaluated for impairment | 415,675 | |||
Total Loans | 418,595 | |||
ALL allocated by: | ||||
Individually evaluated for impairment | 28 | |||
Collectively evaluated for impairment | 3,416 | |||
Total allowance for loan losses | 3,444 | |||
Consumer | Installment and Other | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 40 | |||
Collectively evaluated for impairment | 12,025 | |||
Total Loans | 12,065 | |||
ALL allocated by: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 188 | |||
Total allowance for loan losses | 188 | |||
Unallocated | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 0 | |||
Total Loans | 0 | |||
ALL allocated by: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 245 | |||
Total allowance for loan losses | $ 245 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Sep. 30, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 4 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 30 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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||||
Operating lease ROU assets | $ 11,053 | $ 11,053 | $ 9,270 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | Other assets | ||
Operating lease ROU liabilities | $ 11,821 | $ 11,821 | $ 9,976 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities | Other Liabilities | ||
Weighted-average remaining lease term (in years) | 15 years 2 months 12 days | 15 years 2 months 12 days | 14 years 3 months 18 days | ||
Weighted-average discount rate | 4.30% | 4.30% | 4.10% | ||
Cash paid for operating lease liabilities | $ 319 | $ 300 | $ 890 | $ 889 | |
Operating lease expense | $ 337 | $ 347 | $ 948 | $ 1,090 |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Leases Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 334 | |
2024 | 1,349 | |
2025 | 1,371 | |
2026 | 1,403 | |
2027 | 1,437 | |
Thereafter | 11,381 | |
Total | 17,275 | |
Less: imputed interest | 5,454 | |
Total lease liabilities | $ 11,821 | $ 9,976 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Nov. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 18,724,000 | $ 18,700,000 | $ 18,724,000 | $ 18,700,000 | $ 18,724,000 | |
Impairments | $ 0 | 0 | 0 | 0 | 0 | |
Total assets acquired | 67,200,000 | 67,200,000 | ||||
Impairment of intangibles | 0 | 0 | 0 | 0 | ||
Customer lists | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired intangible assets | $ 289,000 | $ 0 | $ 289,000 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finite-lived Intangible Assets [Roll Forward] | ||||
Beginning of period | $ 2,589 | $ 3,610 | $ 3,078 | $ 4,183 |
Amortization expense | (228) | (272) | (717) | (845) |
Balance, end of period | 2,650 | 3,338 | 2,650 | 3,338 |
Customer lists | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Acquired intangible assets | $ 289 | $ 0 | $ 289 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Components of Other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 8,679 | $ 8,415 |
Accumulated Amortization | 6,029 | 5,337 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 8,390 | 8,390 |
Accumulated Amortization | 6,029 | 5,312 |
Other customer relationship intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 289 | 25 |
Accumulated Amortization | $ 0 | $ 25 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Estimated Aggregate Amortization Expense for Other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||||
2023 | $ 291 | |||||
2024 | 827 | |||||
2025 | 648 | |||||
2026 | 468 | |||||
2027 | 289 | |||||
Thereafter | 127 | |||||
Total | $ 2,650 | $ 2,589 | $ 3,078 | $ 3,338 | $ 3,610 | $ 4,183 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved to be issued (in shares) | 1,045,000 | |
Number of shares available to be issued under employee stock purchase plan (in shares) | 665,000 | |
Unrecognized compensation expense, recognition period | 1 year 9 months 18 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) | 1,281,920 | |
Number of shares available to be issued under employee stock purchase plan (in shares) | 422,358 | |
Orrstown 2011 Incentive Stock Plan | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 3.9 | $ 3 |
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) | 139,146 | |
Maximum shares that can be purchased, as percentage of annual salary | 10% | |
Percentage of value of the shares on the semi-annual offering | 95% |
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, 2023 $ / shares shares | |
Shares | |
Nonvested shares, beginning of year (in shares) | shares | 284,909 |
Granted (in shares) | shares | 148,501 |
Forfeited (in shares) | shares | (33,832) |
Vested (in usd per share) | shares | (107,466) |
Nonvested shares, at period end (in shares) | shares | 292,112 |
Weighted Average Grant Date Fair Value | |
Nonvested shares, beginning of year (in usd per share) | $ / shares | $ 22.35 |
Granted (in usd per share) | $ / shares | 23.57 |
Forfeited (in usd per share) | $ / shares | 22.58 |
Vested (in usd per share) | $ / shares | 22.56 |
Nonvested shares, at period end (in usd per share) | $ / shares | $ 22.87 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted share award expense | $ 606 | $ 602 | $ 1,756 | $ 1,461 |
Restricted share award tax benefit | 127 | 126 | 369 | 307 |
Fair value of shares vested | $ 0 | $ 71 | $ 2,460 | $ 1,935 |
SHARE-BASED COMPENSATION PLAN_5
SHARE-BASED COMPENSATION PLANS - Schedule of Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Shares purchased (in shares) | 3,446 | 4,154 | 6,449 | 8,107 |
Weighted average price of shares purchased (in usd per share) | $ 20.52 | $ 22.60 | $ 21.14 | $ 22.53 |
Compensation expense recognized | $ 4 | $ 13 | $ 7 | $ 21 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) derivativeInstrument customer swap broker | Sep. 30, 2022 USD ($) swap derivativeInstrument | Sep. 30, 2023 USD ($) swap derivativeInstrument customer bank broker | Sep. 30, 2022 USD ($) derivativeInstrument swap | Dec. 31, 2022 USD ($) derivativeInstrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Swap fee income | $ 255,000 | $ 197,000 | $ 451,000 | $ 1,935,000 | |
Cash collateral held by counterparty for derivatives | 9,700,000 | 9,700,000 | $ 5,400,000 | ||
Cash collateral held from counterparties | $ 16,100,000 | $ 16,100,000 | 8,500,000 | ||
New risk participation agreements | derivativeInstrument | 0 | 1 | 0 | 1 | |
Risk participation, upfront fee | $ 0 | $ 0 | |||
New interest rate derivative | Derivatives designated as hedging instruments: | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of new interest rate swaps | bank | 1 | ||||
Derivative, notional amount | $ 75,000,000 | $ 75,000,000 | |||
Interest rate derivative | Derivatives designated as hedging instruments: | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 125,000,000 | $ 125,000,000 | $ 100,000,000 | ||
Number of derivatives | derivativeInstrument | 2 | 2 | 2 | ||
Interest rate derivative | Derivatives designated as hedging instruments: | Other liabilities | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative liability | $ 50,000,000 | $ 50,000,000 | $ 100,000,000 | ||
Interest rate derivative | Derivatives designated as hedging instruments: | Other assets | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative asset | 75,000,000 | 75,000,000 | |||
Interest rate derivative | Derivatives not designated as hedging instruments: | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 319,500,000 | $ 319,500,000 | 268,800,000 | ||
Number of customers | customer | 31 | 31 | |||
Third-party broker | broker | 31 | 31 | |||
Interest rate derivative | Derivatives not designated as hedging instruments: | Other liabilities | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative liability | $ 153,828,000 | $ 153,828,000 | 128,385,000 | ||
Interest rate derivative | Derivatives not designated as hedging instruments: | Other assets | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative asset | $ 153,828,000 | $ 153,828,000 | 128,385,000 | ||
Interest rate swap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of new interest rate swaps | swap | 4 | 4 | 6 | 9 | |
Swap fee income | $ 255,000 | $ 197,000 | $ 451,000 | $ 1,900,000 | |
Interest rate swap | Derivatives designated as hedging instruments: | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of derivatives to mature | derivativeInstrument | 1 | 1 | |||
Derivative asset | $ 50,000,000 | $ 50,000,000 | |||
Risk participation - sold protection | Derivatives not designated as hedging instruments: | Other liabilities | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative liability | 32,588,000 | 32,588,000 | 29,019,000 | ||
Risk participation - purchased protection | Derivatives not designated as hedging instruments: | Other assets | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative asset | $ 4,864,000 | $ 4,864,000 | $ 4,941,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives designated as hedging instruments: | ||
Fair Value | ||
Total derivatives | $ 1,858 | $ (973) |
Derivatives designated as hedging instruments: | Other assets | Interest rate swap | ||
Notional Amount | ||
Derivative asset | 75,000 | |
Fair Value | ||
Derivative asset | 2,616 | |
Derivatives designated as hedging instruments: | Other liabilities | Interest rate swap | ||
Notional Amount | ||
Derivative liabilities | 50,000 | 100,000 |
Fair Value | ||
Derivative liabilities | (758) | (973) |
Derivatives not designated as hedging instruments: | ||
Fair Value | ||
Total derivatives | 384 | 297 |
Derivatives not designated as hedging instruments: | Other assets | Interest rate swap | ||
Notional Amount | ||
Derivative asset | 153,828 | 128,385 |
Fair Value | ||
Derivative asset | 13,911 | 10,437 |
Derivatives not designated as hedging instruments: | Other assets | Purchased options – rate cap | ||
Notional Amount | ||
Derivative asset | 5,932 | 6,000 |
Fair Value | ||
Derivative asset | 21 | 29 |
Derivatives not designated as hedging instruments: | Other assets | Risk participation - purchased protection | ||
Notional Amount | ||
Derivative asset | 4,864 | 4,941 |
Fair Value | ||
Derivative asset | 5 | 16 |
Derivatives not designated as hedging instruments: | Other assets | Interest rate lock commitments with customers | ||
Notional Amount | ||
Derivative asset | 593 | 1,356 |
Fair Value | ||
Derivative asset | 15 | 35 |
Derivatives not designated as hedging instruments: | Other assets | Forward sale commitments | ||
Notional Amount | ||
Derivative asset | 150 | 3,483 |
Fair Value | ||
Derivative asset | 2 | 140 |
Derivatives not designated as hedging instruments: | Other liabilities | Interest rate swap | ||
Notional Amount | ||
Derivative liabilities | 153,828 | 128,385 |
Fair Value | ||
Derivative liabilities | (13,517) | (10,262) |
Derivatives not designated as hedging instruments: | Other liabilities | Written options – rate cap | ||
Notional Amount | ||
Derivative liabilities | 5,932 | 6,000 |
Fair Value | ||
Derivative liabilities | (21) | (29) |
Derivatives not designated as hedging instruments: | Other liabilities | Risk participation - sold protection | ||
Notional Amount | ||
Derivative liabilities | 32,588 | 29,019 |
Fair Value | ||
Derivative liabilities | $ (32) | $ (69) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Effect of Derivative Financial Instruments on OCI and Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative | $ 1,439 | $ (562) | $ 2,831 | $ (562) |
Amount of Loss Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Interest income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss Reclassified from AOCI into Income | 0 | 0 | ||
Interest expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss Reclassified from AOCI into Income | 0 | 0 | ||
Mortgage banking activities | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Gain Recognized in Income | 286 | (540) | 87 | 84 |
Interest rate swaps - balance sheet hedge | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative | 1,439 | (562) | 2,831 | (562) |
Interest rate swaps - balance sheet hedge | Interest income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss Reclassified from AOCI into Income | 0 | 0 | ||
Interest rate swaps - balance sheet hedge | Interest expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss Reclassified from AOCI into Income | 0 | 0 | ||
Interest rate swaps - balance sheet hedge | Other operating expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Gain Recognized in Income | 307 | 179 | 188 | 309 |
Risk participation agreements | Other operating expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Gain Recognized in Income | 31 | (11) | 58 | 19 |
Interest rate lock commitments with customers | Mortgage banking activities | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Gain Recognized in Income | (52) | (98) | (20) | (265) |
Forward sale commitments | Mortgage banking activities | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Gain Recognized in Income | $ 0 | $ (610) | $ (139) | $ 21 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Components for Interest Rate Swaps Designated as Cash Flow Hedges (Details) - Interest rate swap | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Weighted average pay rate | 4.22% | 3.81% |
Weighted average receive rate | 4.68% | 3.81% |
Weighted average maturity in years | 3 years 1 month 6 days | 1 year 2 months 12 days |
SHORT-TERM BORROWINGS - Summary
SHORT-TERM BORROWINGS - Summary of the Use of Short-Term Borrowings (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Balance at period-end | $ 117,250 | $ 104,684 |
Weighted average interest rate during the period | 5.68% | 4.45% |
Average balance during the period | $ 87,245 | $ 13,846 |
Average interest rate during the period | 5.35% | 3.97% |
Maximum month-end balance during the period | $ 120,984 | $ 104,684 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amount | ||
Total FHLB Advances | $ 40,000 | $ 1,455 |
Weighted Average Rate | ||
Weighted Average Rate | 4.20% | 4.74% |
FHLB fixed rate advances maturing | ||
Amount | ||
2025 | $ 15,000 | $ 0 |
2028 | 25,000 | 0 |
Total FHLB fixed rate advances maturing | $ 40,000 | $ 0 |
Weighted Average Rate | ||
2025 | 4.57% | 0% |
2028 | 3.98% | 0% |
Weighted Average Rate | 4.20% | 0% |
FHLB amortizing advance requiring monthly principal and interest payments, maturing | ||
Amount | ||
2025 | $ 0 | $ 1,455 |
Weighted Average Rate | ||
2025 | 0% | 4.74% |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Detail) | Sep. 30, 2023 USD ($) bank | Dec. 31, 2022 USD ($) bank |
Line of Credit Facility [Line Items] | ||
Collateral for all outstanding loans | $ 1,100,000,000 | |
Additional availability at the FHLB based on qualifying collateral | 917,500,000 | |
Letters of credit | 26,000,000 | |
Letters of credit non-deposit | 609,000 | |
Available unsecured lines of credit | $ 30,000,000 | $ 30,000,000 |
Number of correspondent banks | bank | 2 | 2 |
Borrowings under lines of credit | $ 0 | $ 0 |
Line of Credit | Federal Home Loan Bank Program | ||
Line of Credit Facility [Line Items] | ||
Available unsecured lines of credit | $ 43,200,000 | $ 45,300,000 |
SHAREHOLDERS_ EQUITY AND REGULA
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL - Schedule of Actual and Required Capital Amounts and Ratios (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Orrstown Financial Services, Inc. | ||
Total risk-based capital: | ||
Actual, Amount | $ 326,549 | $ 304,589 |
Actual, Ratio | 0.130 | 0.127 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 263,141 | $ 250,939 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 0.105 | 0.105 |
Tier 1 risk-based capital: | ||
Actual, Amount | $ 266,370 | $ 245,752 |
Actual, Ratio | 0.106 | 0.103 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 213,019 | $ 203,141 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 0.085 | 0.085 |
Tier 1 common equity risk-based capital: | ||
Actual, Amount | $ 266,370 | $ 245,752 |
Actual, Ratio | 10.60% | 10.30% |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 175,427 | $ 167,293 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 7% | 7% |
Tier 1 leverage capital: | ||
Actual, Amount | $ 266,370 | $ 245,752 |
Actual, Ratio | 0.087 | 0.085 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 122,433 | $ 116,325 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 0.040 | 0.040 |
Orrstown Bank | ||
Total risk-based capital: | ||
Actual, Amount | $ 313,992 | $ 292,933 |
Actual, Ratio | 0.125 | 0.123 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 263,085 | $ 250,566 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 0.105 | 0.105 |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | $ 250,557 | $ 238,634 |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.100 | 0.100 |
Tier 1 risk-based capital: | ||
Actual, Amount | $ 285,889 | $ 266,122 |
Actual, Ratio | 0.114 | 0.112 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 212,974 | $ 202,839 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 0.085 | 0.085 |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | $ 200,446 | $ 190,907 |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.080 | 0.080 |
Tier 1 common equity risk-based capital: | ||
Actual, Amount | $ 285,889 | $ 266,122 |
Actual, Ratio | 11.40% | 11.20% |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 175,390 | $ 167,044 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 7% | 7% |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | $ 162,862 | $ 155,112 |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 6.50% | 6.50% |
Tier 1 leverage capital: | ||
Actual, Amount | $ 285,889 | $ 266,122 |
Actual, Ratio | 0.093 | 0.092 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 122,433 | $ 116,219 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 0.040 | 0.040 |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | $ 153,041 | $ 145,273 |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.050 | 0.050 |
SHAREHOLDERS' EQUITY AND REGU_3
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 29 Months Ended | ||||||||
Oct. 24, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Apr. 19, 2021 | Sep. 30, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Allowance for credit loss impact of adoption | $ 28,278 | $ 28,278 | $ 28,278 | $ 28,383 | $ 25,178 | ||||||
Off-balance-sheet, credit risk exposure liability | $ 1,700 | $ 1,700 | $ 1,700 | 1,633 | |||||||
Number of shares reserved to be issued (in shares) | 1,045,000 | 1,045,000 | 1,045,000 | ||||||||
Number of shares available to be issued under employee stock purchase plan (in shares) | 665,000 | 665,000 | 665,000 | ||||||||
Number of shares authorized to be repurchased (in shares) | 978,000 | 416,000 | |||||||||
Stock repurchase program, additional number of shares authorized to be repurchased | 562,000 | ||||||||||
Treasury stock, shares acquired (in shares) | 3,446 | 10,385 | 35,380 | 475,377 | 949,533 | ||||||
Acquisition of treasury stock | $ 21,200 | ||||||||||
Acquisition of treasury stock (in usd per share) | $ 22.36 | ||||||||||
Stock repurchase program, shares available for future repurchase | 28,467 | 28,467 | 28,467 | ||||||||
Stock repurchase program percentage of outstanding shares of common stock available for future purchase | 0.30% | 0.30% | 0.30% | ||||||||
Subsequent Event | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Dividends declared per share (in usd per share) | $ 0.20 | ||||||||||
Common Stock | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Treasury stock, shares acquired (in shares) | 0 | ||||||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Allowance for credit loss impact of adoption | $ 2,423 | $ 2,423 | |||||||||
Off-balance-sheet, credit risk exposure liability | 100 | ||||||||||
Allowance for credit losses on loans and off-balance sheet credit risk liability | $ 2,500 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 9,026 | $ (4,828) | $ 28,020 | $ 12,411 |
Weighted average shares outstanding - basic (in shares) | 10,319 | 10,369 | 10,346 | 10,611 |
Dilutive effect of share-based compensation (in shares) | 86 | 0 | 94 | 147 |
Weighted average shares outstanding - diluted (in shares) | 10,405 | 10,369 | 10,440 | 10,758 |
Per share information: | ||||
Basic earnings (loss) per share (in usd per share) | $ 0.87 | $ (0.47) | $ 2.71 | $ 1.17 |
Diluted earnings (loss) per share (in usd per share) | $ 0.87 | $ (0.47) | $ 2.68 | $ 1.16 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Average outstanding options excluded from diluted earnings per share (in shares) | 5,262 | 1,000 | 8,348 | 39,219 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Reserve for off-balance-sheet, credit risk exposure liability | $ 1,700,000 | $ 1,633,000 | |||
Provision for off-balance-sheet, credit risk | $ 0 | $ 28,000 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Reserve for off-balance-sheet, credit risk exposure liability | $ 100,000 | ||||
Home equity lines of credit | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Commitments to fund | 324,248,000 | 296,213,000 | |||
1-4 family residential construction loans | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Commitments to fund | 50,332,000 | 49,538,000 | |||
Commercial real estate, construction and land development loans | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Commitments to fund | 159,107,000 | 156,560,000 | |||
Commercial, industrial and other loans | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Commitments to fund | 335,685,000 | 338,286,000 | |||
Standby letters of credit | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Commitments to fund | $ 21,960,000 | $ 23,229,000 |
FAIR VALUE - Summary of Assets
FAIR VALUE - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Investment securities | $ 495,162 | $ 513,728 |
U.S. Treasury securities | ||
Financial Assets | ||
Investment securities | 17,143 | 17,291 |
U.S. Government Agencies | ||
Financial Assets | ||
Investment securities | 4,322 | 5,135 |
States and political subdivisions | ||
Financial Assets | ||
Investment securities | 188,117 | 197,414 |
GSE residential MBSs | ||
Financial Assets | ||
Investment securities | 57,351 | 59,402 |
GSE commercial MBSs | ||
Financial Assets | ||
Investment securities | 4,778 | |
Non-agency CMOs | ||
Financial Assets | ||
Investment securities | 38,979 | 39,758 |
Asset-backed | ||
Financial Assets | ||
Investment securities | 112,315 | 125,973 |
Other | ||
Financial Assets | ||
Investment securities | 120 | 377 |
Fair Value, Measurements, Recurring | ||
Financial Assets | ||
Loans held for sale | 6,448 | 10,880 |
Totals | 518,178 | 535,125 |
Financial Liabilities | ||
Derivatives | 14,328 | 11,333 |
Fair Value, Measurements, Recurring | Derivatives | ||
Financial Assets | ||
Derivatives | 16,568 | 10,517 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Financial Assets | ||
Investment securities | 17,143 | 17,291 |
Fair Value, Measurements, Recurring | U.S. Government Agencies | ||
Financial Assets | ||
Investment securities | 4,322 | 5,135 |
Fair Value, Measurements, Recurring | States and political subdivisions | ||
Financial Assets | ||
Investment securities | 188,117 | 197,414 |
Fair Value, Measurements, Recurring | GSE residential MBSs | ||
Financial Assets | ||
Investment securities | 57,351 | 59,402 |
Fair Value, Measurements, Recurring | GSE commercial MBSs | ||
Financial Assets | ||
Investment securities | 4,778 | |
Fair Value, Measurements, Recurring | GSE residential CMOs | ||
Financial Assets | ||
Investment securities | 72,037 | 68,378 |
Fair Value, Measurements, Recurring | Non-agency CMOs | ||
Financial Assets | ||
Investment securities | 38,979 | 39,758 |
Fair Value, Measurements, Recurring | Asset-backed | ||
Financial Assets | ||
Investment securities | 112,315 | 125,973 |
Fair Value, Measurements, Recurring | Other | ||
Financial Assets | ||
Investment securities | 120 | 377 |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial Assets | ||
Loans held for sale | 0 | 0 |
Totals | 17,263 | 17,668 |
Financial Liabilities | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Derivatives | ||
Financial Assets | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities | ||
Financial Assets | ||
Investment securities | 17,143 | 17,291 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Government Agencies | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | States and political subdivisions | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | GSE residential MBSs | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | GSE commercial MBSs | ||
Financial Assets | ||
Investment securities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | GSE residential CMOs | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-agency CMOs | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Other | ||
Financial Assets | ||
Investment securities | 120 | 377 |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial Assets | ||
Loans held for sale | 6,448 | 10,880 |
Totals | 473,847 | 490,229 |
Financial Liabilities | ||
Derivatives | 14,328 | 11,333 |
Fair Value, Measurements, Recurring | Level 2 | Derivatives | ||
Financial Assets | ||
Derivatives | 16,553 | 10,482 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Government Agencies | ||
Financial Assets | ||
Investment securities | 4,322 | 5,135 |
Fair Value, Measurements, Recurring | Level 2 | States and political subdivisions | ||
Financial Assets | ||
Investment securities | 182,522 | 191,488 |
Fair Value, Measurements, Recurring | Level 2 | GSE residential MBSs | ||
Financial Assets | ||
Investment securities | 57,351 | 59,402 |
Fair Value, Measurements, Recurring | Level 2 | GSE commercial MBSs | ||
Financial Assets | ||
Investment securities | 4,778 | |
Fair Value, Measurements, Recurring | Level 2 | GSE residential CMOs | ||
Financial Assets | ||
Investment securities | 72,037 | 68,378 |
Fair Value, Measurements, Recurring | Level 2 | Non-agency CMOs | ||
Financial Assets | ||
Investment securities | 17,521 | 18,491 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed | ||
Financial Assets | ||
Investment securities | 112,315 | 125,973 |
Fair Value, Measurements, Recurring | Level 2 | Other | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial Assets | ||
Loans held for sale | 0 | 0 |
Totals | 27,068 | 27,228 |
Financial Liabilities | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Derivatives | ||
Financial Assets | ||
Derivatives | 15 | 35 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Government Agencies | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | States and political subdivisions | ||
Financial Assets | ||
Investment securities | 5,595 | 5,926 |
Fair Value, Measurements, Recurring | Level 3 | GSE residential MBSs | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | GSE commercial MBSs | ||
Financial Assets | ||
Investment securities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | GSE residential CMOs | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Non-agency CMOs | ||
Financial Assets | ||
Investment securities | 21,458 | 21,267 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed | ||
Financial Assets | ||
Investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other | ||
Financial Assets | ||
Investment securities | $ 0 | $ 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||||
Dec. 23, 2022 | Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) security | Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) security | Dec. 31, 2022 USD ($) security | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Fair value option, aggregate fair value declined (below) principal amount | $ 1,400,000 | $ 1,400,000 | $ 1,200,000 | |||
Increase (decrease) in fair value | 14,924,000 | $ 72,247,000 | ||||
Decrease (increase) loans evaluated for credit loss | (224,000) | $ 0 | 286,000 | $ (40,000) | ||
Impairment reserve for mortgage servicing rights | 0 | 0 | $ 0 | |||
Impairment (reversal of) charges | $ 0 | $ 0 | $ (79,000) | |||
Purchase and Assumption Agreement, deposit liability transferred, premium percent | 6% | |||||
Non-agency CMOs | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Securities called by issuer | security | 1 | |||||
Interest rate lock commitments on residential mortgages | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Increase (decrease) in fair value | $ 1,000 | |||||
Level 3 | Municipal bonds | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Number of investment securities | security | 1 | 1 | 1 | 1 | 1 | |
Level 3 | Collateralized Mortgage Obligations | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Number of investment securities | security | 3 | 3 | 3 | |||
Level 3 | Interest rate lock commitments on residential mortgages | Measurement Input, Pull Through | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Asset, measurement input (percent) | 0.92 | 0.92 | ||||
Level 3 | Interest rate lock commitments on residential mortgages | Measurement Input, Pull Through Increase (Decrease) | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Asset, measurement input (percent) | 0.05 | 0.05 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest rate lock commitments on residential mortgages | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 67 | $ 186 | $ 35 | $ 353 |
Total losses included in earnings | (52) | (98) | (20) | (265) |
Balance, end of period | 15 | 88 | 15 | 88 |
Collateralized Mortgage Obligations | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 27,994 | 6,255 | 27,193 | 23,147 |
Unrealized losses included in OCI | (736) | (422) | (600) | (2,002) |
Purchases | 0 | 0 | 871 | 0 |
Net discount accretion (premium amortization) | 19 | (4) | 42 | 62 |
Principal payments and other | (225) | 0 | (454) | 0 |
Sales | 0 | 0 | 0 | (3,053) |
Calls | 0 | 0 | 0 | (12,154) |
OTTI | 0 | 0 | 0 | (171) |
Balance, end of period | $ 27,052 | $ 5,829 | $ 27,052 | $ 5,829 |
FAIR VALUE - Summary of Asset_2
FAIR VALUE - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | $ 522 | |
Total impaired loans | $ 520 | |
Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 88 | |
Total impaired loans | 116 | |
Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 9 | |
Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 146 | |
Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 226 | |
Total impaired loans | 309 | |
Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 62 | |
Total impaired loans | 86 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 0 | |
Level 1 | Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 0 | |
Level 1 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 0 | |
Level 1 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Level 1 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 0 | |
Level 1 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 0 | |
Level 2 | Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 0 | |
Level 2 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 0 | |
Level 2 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Level 2 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 0 | |
Level 2 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 522 | |
Total impaired loans | 520 | |
Level 3 | Commercial real estate | Owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 88 | |
Total impaired loans | 116 | |
Level 3 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 0 | |
Total impaired loans | 9 | |
Level 3 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 146 | |
Level 3 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | 226 | |
Total impaired loans | 309 | |
Level 3 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total individually evaluated loans | $ 62 | |
Total impaired loans | $ 86 |
FAIR VALUE - Summary of Additio
FAIR VALUE - Summary of Additional Qualitative Information (Details) - Fair Value, Measurements, Nonrecurring $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Individually evaluated loans | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.0675 | |
Individually evaluated loans | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.1029 | |
Individually evaluated loans | Appraisal of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Estimate | $ 522 | |
Individually evaluated loans | Appraisal of collateral | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.10 | |
Individually evaluated loans | Appraisal of collateral | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.25 | |
Impaired loans | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.0608 | |
Impaired loans | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.1793 | |
Impaired loans | Appraisal of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Estimate | $ 520 | |
Impaired loans | Appraisal of collateral | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.10 | |
Impaired loans | Appraisal of collateral | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, measurement input (percent) | 0.25 |
FAIR VALUE - Financial Instrume
FAIR VALUE - Financial Instruments at Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Interest-bearing deposits with banks | $ 60,211 | $ 32,346 |
Restricted investments in bank stock | 12,987 | 10,642 |
Investment securities | 495,162 | 513,728 |
Carrying Amount | ||
Financial Assets | ||
Cash and due from banks | 34,728 | 28,477 |
Interest-bearing deposits with banks | 60,211 | 32,346 |
Restricted investments in bank stock | 12,987 | 10,642 |
Investment securities | 495,162 | 513,728 |
Loans held for sale | 6,448 | 10,880 |
Loans, net of allowance for credit losses | 2,238,558 | 2,126,054 |
Accrued interest receivable | 12,212 | 11,027 |
Financial Liabilities | ||
Deposits | 2,546,435 | 2,444,939 |
Deposits held for assumption in connection with sale of bank branches | 0 | 31,307 |
Securities sold under agreements to repurchase and federal funds purchased | 17,991 | 17,251 |
FHLB advances and other borrowings | 157,250 | 106,139 |
Subordinated notes | 32,076 | 32,026 |
Accrued interest payable | 1,783 | 457 |
Off-balance sheet instruments | 0 | 0 |
Carrying Amount | Derivatives | ||
Financial Assets | ||
Derivatives | 16,568 | 10,517 |
Financial Liabilities | ||
Derivatives | 14,328 | 11,333 |
Fair Value | ||
Financial Liabilities | ||
Off-balance sheet instruments | 0 | 0 |
Fair Value | Fair Value, Inputs, Level 1, 2 and 3 | ||
Financial Assets | ||
Cash and due from banks | 34,728 | 28,477 |
Interest-bearing deposits with banks | 60,211 | 32,346 |
Investment securities | 495,162 | 513,728 |
Loans held for sale | 6,448 | 10,880 |
Loans, net of allowance for credit losses | 2,083,811 | 1,991,164 |
Accrued interest receivable | 12,212 | 11,027 |
Financial Liabilities | ||
Deposits | 2,542,571 | 2,440,660 |
Deposits held for assumption in connection with sale of bank branches | 0 | 29,429 |
Securities sold under agreements to repurchase and federal funds purchased | 17,991 | 17,251 |
FHLB advances and other borrowings | 156,513 | 106,141 |
Subordinated notes | 28,774 | 31,321 |
Accrued interest payable | 1,783 | 457 |
Fair Value | Fair Value, Inputs, Level 1, 2 and 3 | Derivatives | ||
Financial Assets | ||
Derivatives | 16,568 | 10,517 |
Financial Liabilities | ||
Derivatives | 14,328 | 11,333 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and due from banks | 34,728 | 28,477 |
Interest-bearing deposits with banks | 60,211 | 32,346 |
Investment securities | 17,263 | 17,668 |
Loans held for sale | 0 | 0 |
Loans, net of allowance for credit losses | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Deposits held for assumption in connection with sale of bank branches | 0 | 0 |
Securities sold under agreements to repurchase and federal funds purchased | 0 | 0 |
FHLB advances and other borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Off-balance sheet instruments | 0 | 0 |
Fair Value | Level 1 | Derivatives | ||
Financial Assets | ||
Derivatives | 0 | 0 |
Financial Liabilities | ||
Derivatives | 0 | 0 |
Fair Value | Level 2 | ||
Financial Assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Investment securities | 450,846 | 468,867 |
Loans held for sale | 6,448 | 10,880 |
Loans, net of allowance for credit losses | 0 | 0 |
Accrued interest receivable | 4,338 | 4,441 |
Financial Liabilities | ||
Deposits | 2,542,571 | 2,440,660 |
Deposits held for assumption in connection with sale of bank branches | 0 | 29,429 |
Securities sold under agreements to repurchase and federal funds purchased | 17,991 | 17,251 |
FHLB advances and other borrowings | 156,513 | 106,141 |
Subordinated notes | 28,774 | 31,321 |
Accrued interest payable | 1,783 | 457 |
Off-balance sheet instruments | 0 | 0 |
Fair Value | Level 2 | Derivatives | ||
Financial Assets | ||
Derivatives | 16,553 | 10,482 |
Financial Liabilities | ||
Derivatives | 14,328 | 11,333 |
Fair Value | Level 3 | ||
Financial Assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Investment securities | 27,053 | 27,193 |
Loans held for sale | 0 | 0 |
Loans, net of allowance for credit losses | 2,083,811 | 1,991,164 |
Accrued interest receivable | 7,874 | 6,586 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Deposits held for assumption in connection with sale of bank branches | 0 | 0 |
Securities sold under agreements to repurchase and federal funds purchased | 0 | 0 |
FHLB advances and other borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Off-balance sheet instruments | 0 | 0 |
Fair Value | Level 3 | Derivatives | ||
Financial Assets | ||
Derivatives | 15 | 35 |
Financial Liabilities | ||
Derivatives | $ 0 | $ 0 |
Uncategorized Items - orrf-2023
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |