COVER PAGE
COVER PAGE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36094 | ||
Entity Registrant Name | THE COMMUNITY FINANCIAL CORPORATION | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 52-1652138 | ||
Entity Address, Address Line One | 3035 Leonardtown Road | ||
Entity Address, City or Town | Waldorf | ||
Entity Address, State or Province | MD | ||
Entity Address, Postal Zip Code | 20601 | ||
City Area Code | 301 | ||
Local Phone Number | 645-5601 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | TCFC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 186.7 | ||
Entity Common Stock, Shares Outstanding | 5,657,581 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE | ||
Entity Central Index Key | 0000855874 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Amendment Flag | false |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | FORVIS, LLP |
Auditor Firm ID | 686 |
Auditor Location | Tysons, Virginia |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 11,511 | $ 108,990 |
Federal funds sold | 2,140 | 0 |
Interest-bearing deposits with banks | 11,822 | 30,664 |
Securities available for sale ("AFS"), at fair value | 462,746 | 497,839 |
CRA investment fund | 4,286 | 4,772 |
Non-marketable equity securities held in other financial institutions | 207 | 207 |
Federal Home Loan Bank ("FHLB") stock - at cost | 4,584 | 1,472 |
Net loans | 1,798,517 | 1,586,791 |
Goodwill | 10,835 | 10,835 |
Premises and equipment, net | 21,308 | 21,427 |
Accrued interest receivable | 8,335 | 5,588 |
Investment in bank owned life insurance | 39,802 | 38,932 |
Core deposit intangible | 634 | 1,032 |
Net deferred tax assets | 24,657 | 9,033 |
Right of use assets - operating leases | 5,920 | 6,124 |
Other assets | 2,713 | 3,600 |
Total Assets | 2,410,017 | 2,327,306 |
Deposits | ||
Non-interest-bearing deposits | 630,120 | 445,778 |
Interest-bearing deposits | 1,458,343 | 1,610,386 |
Total deposits | 2,088,463 | 2,056,164 |
Short-term borrowings | 79,000 | 0 |
Long-term debt | 0 | 12,231 |
Guaranteed preferred beneficial interest in junior subordinated debentures | 12,000 | 12,000 |
Subordinated notes - 4.75%, net of debt issuance costs | 19,566 | 19,510 |
Lease liabilities - operating leases | 6,202 | 6,343 |
Accrued expenses and other liabilities | 17,775 | 12,925 |
Total Liabilities | 2,223,006 | 2,119,173 |
Stockholders' Equity | ||
Common stock - par value $0.01; authorized - 15,000,000 shares; issued 5,648,435 and 5,718,528 shares, respectively | 56 | 57 |
Additional paid in capital | 97,986 | 96,896 |
Retained earnings | 132,235 | 113,448 |
Accumulated other comprehensive loss | (43,092) | (1,952) |
Unearned ESOP shares | (174) | (316) |
Total Stockholders' Equity | 187,011 | 208,133 |
Total Liabilities and Stockholders' Equity | 2,410,017 | 2,327,306 |
U.S. SBA PPP loans | ||
Assets | ||
Net loans | 339 | 26,398 |
Portfolio Loans | ||
Assets | ||
Net loans | $ 1,798,178 | $ 1,560,393 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for credit loss | $ 22,890 | $ 18,417 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 5,648,435 | 5,718,528 |
Subordinated Debt | ||
Subordinated notes interest rate | 4.75% |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and Dividend Income | ||
Loans, including fees | $ 72,738 | $ 65,476 |
Interest and dividends on investment securities | 9,489 | 4,992 |
Interest on deposits with banks | 480 | 91 |
Total Interest and Dividend Income | 82,707 | 70,559 |
Interest Expense | ||
Deposits | 7,211 | 2,601 |
Short-term borrowings | 426 | 0 |
Long-term debt | 1,545 | 1,524 |
Total Interest Expense | 9,182 | 4,125 |
Net Interest Income | 73,525 | 66,434 |
Provision for credit losses | 2,437 | 586 |
Provision for unfunded commitments | 146 | 0 |
Net Interest Income After Provision for Credit Losses | 70,942 | 65,848 |
Noninterest Income | ||
Gain on sale of assets | 695 | 68 |
Net gains on sale of investment securities | 0 | 586 |
Unrealized (loss) gain on equity securities | (555) | (139) |
Loss on premises and equipment held for sale | 0 | (25) |
Income from bank owned life insurance | 870 | 871 |
Net (loss) gain on sale of loans originated for sale | (2) | 85 |
Gain (loss) on sale of loans | 209 | (191) |
Total Noninterest Income | 6,393 | 7,906 |
Noninterest Expense | ||
Compensation and benefits | 20,806 | 21,035 |
Occupancy expense | 3,212 | 2,836 |
Advertising | 549 | 500 |
Data processing expense | 4,126 | 3,772 |
Professional fees | 3,490 | 2,857 |
Merger and acquisition costs | 1,004 | 0 |
Depreciation of premises and equipment | 657 | 558 |
FDIC Insurance | 701 | 602 |
OREO valuation allowance and expenses | 6 | 1,456 |
Core deposit intangible amortization | 398 | 495 |
Fraud losses | 286 | 1,260 |
Other expenses | 4,199 | 3,781 |
Total Noninterest Expense | 39,434 | 39,152 |
Income before income taxes | 37,901 | 34,602 |
Income tax expense | 9,584 | 8,716 |
Net Income | $ 28,317 | $ 25,886 |
Earnings Per Common Share | ||
Basic (in dollars per share) | $ 5.01 | $ 4.47 |
Diluted (in dollars per share) | 5 | 4.47 |
Cash dividends paid per common share (in dollars per share) | $ 0.70 | $ 0.58 |
Loan appraisal, credit, and miscellaneous charges | ||
Noninterest Income | ||
Revenues | $ 422 | $ 528 |
Service charges | ||
Noninterest Income | ||
Revenues | 4,379 | 4,301 |
Referral fee income | ||
Noninterest Income | ||
Revenues | $ 375 | $ 1,822 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 28,317 | $ 25,886 |
Net unrealized holding losses arising during period, net of tax benefits of $(14,500) and $(2,428), respectively | (41,140) | (6,889) |
Reclassification adjustment for income included in net income, net of tax expense of $0 and $153, respectively | 0 | 433 |
Comprehensive (Loss) Income | $ (12,823) | $ 19,430 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized holding gains (losses) arising during period, tax effect | $ (14,500) | $ (2,428) |
Reclassification adjustments for income included in net income, tax effect | $ 0 | $ (153) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 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) | Unearned ESOP Shares |
Balance at beginning of period at Dec. 31, 2020 | $ 198,013 | $ 59 | $ 95,965 | $ 97,944 | $ 4,504 | $ (459) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 25,886 | 25,886 | ||||||
Unrealized holding gains on investment securities net of tax of $(2,275) | (6,456) | (6,456) | ||||||
Cash dividend | (3,170) | (3,170) | ||||||
Net change in fair market value below cost of leveraged ESOP shares released | 2 | 2 | ||||||
Dividend reinvestment | 0 | 168 | (168) | |||||
Net change in unearned ESOP shares | 143 | 143 | ||||||
Repurchase of common stock | (7,046) | (2) | (7,044) | |||||
Stock based compensation | 761 | 761 | ||||||
Balance at the end of the period at Dec. 31, 2021 | 208,133 | $ (2,006) | 57 | 96,896 | 113,448 | $ (2,006) | (1,952) | (316) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 28,317 | 28,317 | ||||||
Unrealized holding gains on investment securities net of tax of $(2,275) | (41,140) | (41,140) | ||||||
Cash dividend | (3,753) | (3,753) | ||||||
Net change in fair market value below cost of leveraged ESOP shares released | 15 | 15 | ||||||
Dividend reinvestment | 0 | 217 | (217) | |||||
Net change in unearned ESOP shares | 142 | 142 | ||||||
Repurchase of common stock | (3,555) | (1) | (3,554) | |||||
Stock based compensation | 858 | 858 | ||||||
Balance at the end of the period at Dec. 31, 2022 | $ 187,011 | $ 56 | $ 97,986 | $ 132,235 | $ (43,092) | $ (174) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Unrealized holding gain on investment securities, tax | $ (14,500) | $ (2,275) |
Cash dividend per common share (in dollars per share) | $ 0.70 | $ 0.58 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net income | $ 28,317 | $ 25,886 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for credit losses | 2,437 | 586 |
Provision for unfunded commitments | 146 | 0 |
Depreciation and amortization | 1,619 | 1,490 |
Provision for loss on premises held for sale | 0 | 25 |
Loans originated for resale | (1,800) | (5,135) |
Proceeds from sale of loans originated for sale | 1,838 | 5,239 |
Net loss (gain) on sale of loans held for sale | 2 | (85) |
(Gain) loss on sale of loans | (209) | 191 |
Net gain on the sale of OREO | 0 | (17) |
Gains on sales of investment securities | 0 | (586) |
Unrealized loss on equity securities | 555 | 139 |
Gain on sale or disposition of assets | (695) | (68) |
Net amortization of premium/discount on investment securities | 2,773 | 1,266 |
Net accretion of premiums and discounts | (189) | (417) |
Amortization of core deposit intangible | 398 | 495 |
Amortization of right of use asset | 390 | 395 |
Net change in right of use assets and lease liabilities | (327) | (377) |
Increase in OREO valuation allowance | 0 | 1,387 |
Increase in cash surrender value of bank owned life insurance | (870) | (871) |
(Decrease) increase in deferred income tax benefit | (426) | 1,151 |
(Increase) decrease in accrued interest receivable | (2,747) | 3,129 |
Stock based compensation | 858 | 761 |
Net change in fair market value above (below) cost of leveraged ESOP shares released | 15 | 2 |
(Increase) decrease in net deferred loan costs | (2,046) | 2,565 |
(Decrease) increase in accrued expenses and other liabilities | 4,488 | (2,983) |
Decrease (increase) in other assets | 842 | (935) |
Net Cash Provided by Operating Activities | 35,425 | 33,217 |
Cash Flows from Investing Activities | ||
Purchase of AFS investment securities | (78,443) | (327,693) |
Proceeds from redemption or principal payments of AFS investment securities | 55,054 | 53,952 |
Proceeds from sale of AFS investment securities | 0 | 12,540 |
Net (increase) decrease of FHLB stock | (3,112) | 1,305 |
Net change in loans | (217,834) | (7,625) |
Purchase of premises and equipment | (1,526) | (2,645) |
Proceeds from sale of OREO | 0 | 1,739 |
Proceeds from sale of loans | 3,588 | 11,965 |
Proceeds from disposal of asset | 765 | 416 |
Net Cash Used in Investing Activities | (241,508) | (256,046) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 32,299 | 310,562 |
Payments of long-term debt | (12,231) | (15,071) |
Net increase in short-term borrowings | 79,000 | 0 |
Dividends paid | (3,753) | (3,170) |
Net change in unearned ESOP shares | 142 | 143 |
Repurchase of common stock | (3,555) | (7,046) |
Net Cash Used by Financing Activities | 91,902 | 285,418 |
(Decrease) increase in Cash and Cash Equivalents | (114,181) | 62,589 |
Cash and Cash Equivalents - January 1 | 139,654 | 77,065 |
Cash and Cash Equivalents - December 31 | 25,473 | 139,654 |
Cash paid during the period for | ||
Interest | 8,908 | 4,386 |
Income taxes | 9,209 | 8,119 |
Supplemental Schedule of Non-Cash Operating Activities | ||
Issuance of common stock for payment of compensation | 433 | 220 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Cumulative effect adjustment for adoption of ASU 2016-13 | 2,006 | 0 |
Amortization of Debt Discount (Premium) | $ 56 | $ (16) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of The Community Financial Corporation and its wholly-owned subsidiary Community Bank of the Chesapeake (the “Bank”), (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America and to general practices within the banking industry. Accounting Changes and Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. Nature of Operations The Company provides a variety of financial services to individuals and businesses through its offices in Southern Maryland and Fredericksburg, Virginia. Its primary deposit products are demand, savings and time deposits, and its primary lending products are commercial and residential mortgage loans, commercial loans, construction and land development loans, home equity and second mortgages and commercial equipment loans. The Bank is headquartered in Southern Maryland. The Bank’s 12 branches are located in Waldorf, Bryans Road, Dunkirk, Leonardtown, La Plata (two branches), Charlotte Hall, Prince Frederick, Lusby, California, Maryland; and Fredericksburg, Virginia. The Bank has two operation centers located at the main office in Waldorf, Maryland and in Fredericksburg, Virginia. The Bank maintains four loan production offices (“LPOs”) in La Plata, Prince Frederick and Leonardtown, Maryland; and Fredericksburg, Virginia. The Leonardtown LPO is co-located with the branch and the Fredericksburg LPO is co-located with the operation center. Use of Estimates In preparing Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses ("ACL"), real estate acquired in the settlement of loans ("OREO"), fair value of financial instruments, fair value of assets acquired, and liabilities assumed in a business combination, evaluating potential credit losses of investment securities and valuation of deferred tax assets. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in or near Fredericksburg, Virginia and the Southern Maryland counties of Calvert, Charles and St. Mary’s. Notes 2 and 3 discuss the types of securities and loans held by the Company. The Company does not have significant concentration in any one customer or industry. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly-liquid debt instruments with original maturities of three months or less when purchased to be cash equivalents. Investment Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity (“HTM”) and recorded at amortized cost. At December 31, 2022 and 2021 the Company had no HTM securities. See Note 2 Securities for additional information. Securities purchased and held principally for trading in the near term are classified as “trading securities” and are reported at fair value, with unrealized gains and losses included in earnings. The Company held no trading securities for the years ended December 31, 2022 and 2021. Securities not classified as HTM or trading securities are classified as available for sale (“AFS”) and recorded at estimated fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Equity securities with readily determinable fair values are recorded at fair value with unrealized gains and losses included in noninterest income in the consolidated statements of income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the estimated fair value of HTM and AFS securities below their cost that are deemed to be impaired are reflected in earnings as realized losses. In making this assessment, Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and a corresponding allowance for credit losses is recorded. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income/(loss). Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance when Company believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment not recorded through an allowance for credit loss is recognized in other comprehensive income (loss) as a noncredit-related impairment. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Investments in Federal Reserve Bank and Federal Home Loan Bank of Atlanta stocks are recorded at cost and are considered restricted as to marketability. The Bank is required to maintain investments in the Federal Home Loan Bank based upon levels of borrowings. Loans Held for Sale Loans originated and held for sale are carried at fair market. Loans held for sale include fixed-rate single-family residential loans under contract to be sold in the secondary market. These loans are sold with mortgage servicing rights retained. Under limited circumstances, buyers may have recourse to return a purchased loan to the Company. Recourse conditions may include early payment default, breach or representation or warranties, or documentation deficiencies. Fair value of loans held for sale is determined at the loan level based on prevailing market prices for loans with similar risk characteristics or sale contract prices. Declines in fair value below cost are recognized in net gain on sale of loans. Deferred fees and costs related to these loans are not amortized but are recognized as part of the cost basis of the loan at the time it is sold. Gains or losses on sales are recognized as a component of non-interest income. The Bank had no loans held for sale at December 31, 2022 and 2021, respectively, and sold nine 1-4 family residential mortgage loans for the year ended December 31, 2022. The Bank enters into commitments to originate residential mortgage loans whereby the interest rate on the loan is determined prior to funding (i.e., interest rate lock commitments). Such interest rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. To protect against the price risk inherent in residential mortgage loan commitments, the Bank uses "best efforts" forward loan sale commitments. Under a "best efforts" contract, the Bank commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor. The investor commits to a price, representing the premium on the day the borrower commits to an interest rate. The investor commitment locks in the price of the loan which protects the Bank from subsequent changes in interest rates. As a result, the Bank is not generally exposed to losses on loans sold utilizing best efforts, nor will it realize gains related to rate lock commitments due to changes in interest rates. The market values of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded. Because of the high correlation between rate lock commitments and best efforts contracts, very little gain or loss should occur on the interest rate lock commitments. In circumstances where the Company does not deliver the whole loan to an investor, but rather elects to retain the loan in its portfolio, the loan is transferred from held for sale to loans at fair value at the date of transfer. The Bank has mortgage banking derivative financial instruments that are included in other assets and are related to interest rate lock commitments. The notional value of the mortgage banking derivative financial instruments was zero at December 31, 2022 and $1.2 million at December 31, 2021. The fair value of these mortgage banking derivative instruments was zero at December 31, 2022 and $28,000 at December 31, 2021. Loan, appraisal, credit and miscellaneous charges includes a $28,000 net gain related to mortgage banking derivative instruments for the year ended December 31, 2021 as compared to none for the year ended December 31, 2022. Loans Receivable The Company originates real estate mortgages, construction and land development loans, commercial loans and consumer loans. A substantial portion of the loan portfolio comprises loans throughout Southern Maryland and the Fredericksburg area of Virginia. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and economic conditions in this area. Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding unpaid principal balances, adjusted for the allowance for credit losses and any deferred fees or premiums. Interest income is accrued on the unpaid principal balance. Loan origination fees and premiums, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered credit deteriorated. Evidence of credit quality deterioration as of the purchase date may include statistics such as internal risk grade, past due and nonaccrual status, recent borrower credit scores and recent loan-to-value (“LTV”) percentages. At December 31, 2021, the Bank had purchased credit-deteriorated (“PCD”) loans from the County First acquisition with unpaid principal balances of $1.4 million and carrying values of $1.1 million. At the adoption of ASC 326, management evaluated the remaining unamortized discount on the PCD loans and determined that approximately $8,000 of the discount was credit related and reclassified into the ACL. The non-credit component of the discount will be recognized in interest income over the remaining life of the loans. The Company considers a loan to be past due or delinquent when the terms of the contractual obligation are not met by the borrower. Loans are reviewed on a regular basis and are placed on non-accrual status when, in the opinion of management, the collection of additional interest is doubtful. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in the process of collection. Non-accrual loans include certain loans that are current with all loan payments and are placed on non-accrual status due to customer operating results and cash flows. Non-accrual loans are evaluated for impairment on a loan-by-loan basis in accordance with the Company’s impairment methodology. Consumer loans, excluding credit card loans, are typically charged-off no later than 90 days past due. Credit card loans are typically charged-off no later than 180 days past due. Mortgage and commercial loans are fully or partially charged-off when in management’s judgment all reasonable efforts to return a loan to performing status have occurred. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected from loans that are placed on non-accrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. TDRs are loans that have been modified to provide for a reduction or a delay in the payment of either interest or principal because of deterioration in the financial condition of the borrower. A loan extended or renewed at a stated interest rate equal to the current interest rate for new debt with similar risk is not considered a TDR. Once an obligation has been classified as a TDR it continues to be considered a TDR until paid in full or until the debt is refinanced and considered unimpaired. All TDRs are assessed on a loan-by-loan basis. The Company does not participate in any specific government or Company-sponsored loan modification programs. All restructured loan agreements are individual contracts negotiated with a borrower. In 2019 the Bank entered into a Servicing and Intercreditor Agreement ("SIA") with a correspondent bank which allows us to offer interest rate protection to our customers. In most cases, the Bank is paid a referral fee for these transactions which is recognized at inception. Allowance for Credit Losses On January 1, 2022, the Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments , which replaced the incurred loss methodology for determining the provision for credit losses and ACL with the CECL methodology. The measurement of expected credit losses under the CECL methodology applies to financial assets subject to credit losses and measured at amortized cost, and certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. In addition, ASU 2016-13 made changes to the accounting for available-for-sale ("AFS") debt securities. Credit-related impairments of AFS debt securities are now recognized through an allowance for credit loss rather than a write-down of the securities' amortized cost basis when management does not intend to sell or believes that it is not likely that they will be required to sell the securities prior to recovery of the securities amortized cost basis. The Bank adopted ASU 2016-13 using the modified retrospective method. Results for reporting periods beginning after January 1, 2022 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. At adoption, the Company did not hold Held to Maturity ("HTM") investment debt securities. The following table shows the impact of the Company's adoption of ASC 326: January 1, 2022 (dollars in thousands) As Reported Under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption Portfolio Loans: Commercial real estate $ 1,113,793 $ 1,115,485 $ (1,692) Residential first mortgages 92,710 91,120 1,590 Residential rentals 194,911 195,035 (124) Construction and land development 35,502 35,590 (88) Home equity and second mortgages 25,661 25,638 23 Commercial loans 50,512 50,574 (62) Consumer loans 3,015 3,002 13 Commercial equipment 62,706 62,499 207 Gross portfolio loans 1,578,810 1,578,943 (133) Adjustments: Net deferred costs — (133) 133 Allowance for credit losses (20,913) (18,417) (2,496) Net Portfolio Loans 1,557,897 1,560,393 (2,496) U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans 26,398 27,276 (878) Net deferred fees — (878) 878 Net U.S. SBA PPP Loans 26,398 26,398 — Total Net Loans $ 1,584,295 $ 1,586,791 $ (2,496) Liabilities: Reserve for Unfunded Commitments $ 268 $ 51 $ 217 Allowance for Credit Losses - Loans The ACL is an estimate of the expected credit losses for loans held for investment and off-balance sheet exposures. ASU 2016-13 replaced the incurred loss model that recognized a loss when it became probable that a credit loss had occurred, with a model that immediately recognizes the credit loss expected to occur over the lifetime of a financial asset whether originated or purchased. Charge-offs are recorded to the ACL when management believes the loan is uncollectible. Subsequent recoveries, if any, are credited to the ACL. Management believes the ACL is in accordance with U.S. GAAP and in compliance with appropriate regulatory guidelines. The ACL includes quantitative estimates of losses for collectively and individually evaluated loans. As more fully described below, the model-based quantitative estimate for collectively evaluated loans is determined using the probability of default (PD) and loss given default (LGD) at the segment level and applied at the loan level against the expected exposure at default (EAD). Qualitative adjustments to the quantitative estimate may be made using information not considered in the quantitative model. The Bank uses a range of data to estimate expected credit losses under CECL, including information about past events, current conditions, and reasonable and supportable forecasts relevant to assessing the collectability of the cash flows of the loans. Historical loss experience serves as the foundation for our estimated credit losses. Adjustments to our historical loss experience are made for differences in current loan portfolio segment credit risk characteristics such as the impact of changing unemployment rates, changes in U.S. Treasury yields, portfolio concentrations, the volume of classified loans, inflation, and other prevailing economic conditions and factors that may affect the borrower’s ability to repay, or reduce the estimated value of underlying collateral. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The ACL is measured on a collective basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by loan type code or product type codes and assigned to a corresponding portfolio segment. Portfolio segments may be further subdivided into similar risk profile groupings based on interest rate structure, types of collateral or other terms and characteristics. The probability of default (“PD”) calculation analyzes the historical loan portfolio over the given look back period to identify, by segment, loans that have defaulted. A default is defined as a loan that has moved to past due 90 days and greater, nonaccrual status, or experienced a charge-off during the period. The model observes loans over a 12-month window, detecting any events previously defined. This information is then used by the model to calculate annual iterative count-based PD rates for each segment. This process is then repeated for all dates within the historical data range. These averaged PD’s are used for a 12-month straight-line reversion to the historical mean. The historical data used was from mid-2006 through the most recent quarter end. The Company utilizes reasonable and supportable forecasts of future economic conditions when estimating the ACL on loans. The model’s calculation also includes a 12-month forecasted PD based on a regression model that compares the Company’s historical loan data to various national economic metrics during the same periods. The results show the Company’s past losses having a high rate of correlation to national unemployment rates for fixed rate loans and the 10-Year U.S. Treasury for adjustable-rate loans. The model uses this information, along with the most recently published Wall Street Journal survey of sixty economists’ forecasts predicting unemployment rates out over the next four quarters to estimate the PD for the forward-looking 12-month period. These data are also used to predict credit losses at different levels of stress, including a baseline, low, high and adverse economic conditions. After the forecast period, PD rates revert to the historical mean straight line over a 12-month period for the entire data set. The loss given default (“LGD”) calculation is based on actual losses (charge-offs, net of recoveries) at a loan level over the entire look-back period aggregated for each loan segment. The aggregate loss is divided by the exposure at default to determine an LGD rate. Defaults occurring during the look-back period are included in the denominator, whether or not a loss occurred and exposure at default is determined by the loan balance immediately preceding the default event. When the Company's data are insufficient. an industry index is used. The exposure at default (“EAD”) calculation projects future expected balances from monthly cash flow schedules to apply PD and LGD assumptions. These are derived based on current contractual terms (balance, interest rate, payment structure), adjusted for expected voluntary prepayments. The contractual terms exclude expected extensions, renewals and modifications unless either of the following applies: management has the reasonable expectation that a loan will be restructured, or the extension or renewal option are included in the borrower contract. On a quarterly basis, the Company uses internal portfolio credit data, such as levels of non-accrual loans, classified assets and concentrations of credit along with other external information not used in the quantitative calculation to determine qualitative adjustments. Loans that do not share the same common risk characteristics with other loans are individually assessed. Such loans include non-accrual loans, TDRs, loans classified as substandard or worse, loans that are greater than 89 days delinquent and any other loan identified by management for individual assessment. Reserves on individually assessed loans are measured on a loan-by-loan basis. Generally, consumer loans, including credit cards, are not individually assessed as the Bank's policy is to charge-off credit card loans when they become 180 days delinquent and other consumer loans when they are more than 90 days delinquent. The methodology used to estimate the ACL is designed to be responsive to changes in portfolio credit quality and forecasted economic conditions. Changes due to new information are reflected in the pool-based allowance and in reserves assigned on an individual basis. Executive management closely monitors loss ratios, reviews the appropriateness of the ACL and presents conclusions to the Credit Risk Committee and the Audit Committee. The committees report to the Board as part of Board's quarterly review of our regulatory reporting and consolidated financial statements. The calculation of the ACL excludes accrued interest receivable balances because these balances are reversed in a timely manner against previously recognized interest income when a loan is placed on non-accrual status. Allowance for Credit Losses - AFS Debt securities As described above, the Company does not presently hold any HTM debt securities and therefore is not presently required to apply a CECL methodology for an HTM investment portfolio. The impairment model for AFS debt securities measures fair value. Although ASU No. 2016-13 replaced the legacy other-than-temporary impairment (“OTTI”) model with a credit loss model, it retained the fundamental nature of the legacy OTTI model for AFS securities. One notable change from the legacy OTTI model is when evaluating whether credit loss exists, an entity may no longer consider the length of time fair value has been less than amortized cost. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criterion is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and a corresponding allowance for credit losses is recorded. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment not recorded through an allowance for credit loss is recognized in other comprehensive income as a noncredit-related impairment. As of December 31, 2022, the Company determined that the unrealized loss positions in AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded. See Note 2 Investment Securities for more information. The Bank elected as allowed under ASU No. 2016-13 to exclude accrued interest from the amortized cost basis of AFS debt securities and report accrued interest separately in accrued interest and other assets in the consolidated balance sheets. AFS debt securities are placed on non-accrual status when management no longer expects to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a security is placed on non-accrual status. Accordingly, the Company does not recognize an allowance for credit loss against accrued interest receivable. The majority of AFS debt securities as of December 31, 2022 and December 31, 2021 were issued by Government Sponsored Enterprises (“GSEs”) and U.S. agencies. As such, an allowance for credit losses is not considered necessary. Collateral Dependent Financial Assets Loans that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the Net Present Value ("NPV") from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Subsequent changes to the fair value of collateral, for which an ACL was previously recognized, will be reported as a provision (recovery) for credit losses. The Bank generally uses the practical expedient of the fair value of the collateral, net of estimated selling costs, to determine the expected credit loss for individually assessed collateral dependent loans. Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposure Financial instruments include off-balance sheet credit instruments such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records a reserve for unfunded commitments (“RUC”) on off-balance sheet credit exposures through a charge to provision for credit loss expense in the Company’s consolidated statements of operations. The RUC on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in accrued expenses and other liabilities on the Company’s consolidated balance sheets. Servicing Servicing assets are recognized as separate assets when rights are acquired or retained through the purchase or sale of financial assets and are evaluated for impairment based upon the estimated fair value of the rights as compared to amortized cost. Servicing fee income is recorded over the servicing period. Servicing assets are not a significant asset of the Bank's operations. Premises and Equipment Land is carried at cost. Premises, improvements and equipment are carried at cost, less accumulated depreciation and amortization, computed by the straight-line method over the estimated useful lives of the assets, which are as follows: Buildings and Improvements: 10 to 50 years Furniture and Equipment: three Automobiles: four Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful lives of premises and equipment are capitalized. For the years ended December 31, 2022 and 2021, the Company recognized depreciation expense of $1.6 million and $1.5 million, respectively. A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. The Company leases certain properties and land under operating leases. The Company recognizes a liability to make lease payments, the “lease liability”, and an asset representing the right to use the underlying asset during the lease term, the “right-of-use asset”. The right of use assets and lease liabilities are impacted by the length of the lease term and the rate used to discount the minimum lease payments to present value. The lease liability is measured at the present value of the remaining lease payments, discounted at the Company's incremental borrowing rate. The right-of-use asset is measured at the amount of the lease liability adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the right-of-use-asset. Operating lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis. The Company's lease agreements often include one or more options to renew at the Company's discretion. If at lease inception, the Company reasonably expects to exercise the renewal option, the Company will include the extended term in the calculation of the right of use asset and lease liability. Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. A |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES Amortized cost and fair values of investment securities at December 31, 2022 and December 31, 2021 are as follows: December 31, 2022 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value AFS Securities Asset-backed securities issued by GSEs and U.S. Agencies Residential mortgage-backed securities ("MBS") $ 126,861 $ 12 $ 13,203 $ 113,670 Residential collateralized mortgage obligations ("CMOs") 175,905 8 16,500 159,413 U.S. Agency 14,658 — 2,302 12,356 Asset-backed securities ("ABSs") issued by Others: Residential CMOs 12,593 13 400 12,206 Student loan trust ABSs 49,566 39 2,293 47,312 Municipal bonds 99,766 — 20,148 79,618 Corporate bonds 4,863 — 459 4,404 U.S. government obligations 36,813 1 3,047 33,767 Total AFS Securities $ 521,025 $ 73 $ 58,352 $ 462,746 Equity securities carried at fair value through income CRA investment fund $ 4,286 $ — $ — $ 4,286 Non-marketable equity securities Other equity securities $ 207 $ — $ — $ 207 Total Investment Securities $ 525,518 $ 73 $ 58,352 $ 467,239 December 31, 2021 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value AFS Securities Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 121,125 $ 1,057 $ 2,266 $ 119,916 Residential CMOs 198,780 710 2,367 197,123 U.S. Agency 14,433 11 140 14,304 Asset-backed securities issued by Others: Residential CMOs 220 5 4 221 Student loan trust ABSs 56,422 438 286 56,574 Municipal bonds 92,556 1,169 884 92,841 U.S. government obligations 16,942 — 82 16,860 Total AFS Securities $ 500,478 $ 3,390 $ 6,029 $ 497,839 Equity securities carried at fair value through income CRA investment fund $ 4,772 $ — $ — $ 4,772 Non-marketable equity securities Other equity securities $ 207 $ — $ — $ 207 Total Investment Securities $ 505,457 $ 3,390 $ 6,029 $ 502,818 The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. AFS debt securities, AIR totaled $1.8 million and $1.1 million as of December 31, 2022, and December 31, 2021, respectively. AIR is included in the “accrued interest receivable” line item on the Company’s consolidated balance sheets. At December 31, 2022, and December 31, 2021 securities with an amortized cost of $56.4 million and $50.9 million were pledged to secure certain customer deposits. During the year ended December 31, 2022, the Company did not sell any securities. During the year ended December 31, 2021, the Company recognized net gains of $0.6 million on the sale of AFS securities with aggregate carrying values of $11.9 million. Management does not believe that the AFS debt securities in an unrealized loss position as of December 31, 2022 have credit loss impairment. As of December 31, 2022, and December 31, 2021, the gross unrealized loss positions were primarily related to mortgage-backed securities issued by U.S. government agencies or U.S. government sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. The Company also performed credit reviews on municipal bonds issued by States and Political Subdivisions, asset backed securities issued by Student Loan Trust, and corporate bonds issued by the Insured Depositories. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell the investment securities that were in an unrealized loss position, and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity. Management believes that the securities will either recover in market value or be paid off as agreed. AFS Securities Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at December 31, 2022 and 2021 were as follows: December 31, 2022 Less Than 12 Months More Than 12 Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 24,688 $ 1,493 $ 259,127 $ 30,512 $ 283,815 $ 32,005 Residential CMOs 7,469 381 138 19 7,607 400 Student Loan Trust ABSs 1,950 1 42,170 2,292 44,120 2,293 Municipal bonds 6,695 796 72,923 19,352 79,618 20,148 Corporate bonds 4,404 459 — — 4,404 459 U.S. government obligations 18,764 1,137 13,041 1,910 31,805 3,047 $ 63,970 $ 4,267 $ 387,399 $ 54,085 $ 451,369 $ 58,352 December 31, 2021 Less Than 12 Months More Than 12 Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 205,891 $ 3,997 $ 41,327 $ 776 $ 247,218 $ 4,773 Residential CMOs — — 57 4 57 4 Student Loan Trust ABSs 21,640 281 2,226 5 23,866 286 Municipal bonds 47,314 776 6,696 108 54,010 884 U.S. government obligations 14,860 82 1,999 — 16,859 82 $ 289,705 $ 5,136 $ 52,305 $ 893 $ 342,010 $ 6,029 There were 296 available-for-sale securities in an unrealized loss position at December 31, 2022. Maturities The amortized cost and estimated fair value of debt securities at December 31, 2022, and December 31, 2021 by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call premiums or prepayment penalties. December 31, 2022 December 31, 2021 (dollars in thousands) Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Within one year $ 35,441 $ 31,477 $ 36,859 $ 36,665 Over one year through five years 136,449 121,186 121,308 120,668 Over five years through ten years 228,997 203,383 191,166 190,158 After ten years 120,138 106,700 151,145 150,348 Total AFS securities $ 521,025 $ 462,746 $ 500,478 $ 497,839 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans | LOANS Portfolio loans, net of deferred costs and fees, are summarized by type as follows at December 31, 2022: December 31, 2022 (dollars in thousands) Total % of Total Loans Portfolio Loans: Commercial real estate $ 1,232,826 67.69 % Residential first mortgages 79,872 4.39 % Residential rentals 338,292 18.58 % Construction and land development 17,259 0.95 % Home equity and second mortgages 25,602 1.41 % Commercial loans 42,055 2.31 % Consumer loans 6,272 0.34 % Commercial equipment 78,890 4.33 % Total portfolio loans (1) 1,821,068 100.00 % Less: Allowance for Credit Losses (22,890) (1.26) % Total net portfolio loans 1,798,178 U.S. SBA PPP loans (1) 339 Total net loans 1,798,517 Portfolio loans are summarized by type as follows at December 31, 2021: Portfolio Loans: December 31, 2021 Commercial real estate $ 1,115,485 70.66 % Residential first mortgages 91,120 5.77 % Residential rentals 195,035 12.35 % Construction and land development 35,590 2.25 % Home equity and second mortgages 25,638 1.62 % Commercial loans 50,574 3.20 % Consumer loans 3,002 0.19 % Commercial equipment 62,499 3.96 % Gross portfolio loans (1) 1,578,943 100.00 % Adjustments: Net deferred costs (133) (0.01) % Allowance for loan losses (18,417) (1.17) % (18,550) Net portfolio loans 1,560,393 Gross U.S. SBA PPP loans (1) 27,276 Net deferred fees (878) Net U.S. SBA PPP Loans 26,398 Total net loans $ 1,586,791 Total gross loans $ 1,606,219 (1) Excludes accrued interest receivable of $6.6 million and $4.5 million, at December 31, 2022 and December 31, 2021, respectively. The Company has segregated its loans into portfolio loans and U.S. SBA PPP loans. Deferred Costs/Fees Portfolio net deferred fees of $3.0 million at December 31, 2022 included deferred fees paid by customers of $7.3 million offset by deferred costs of $4.3 million. Deferred loan costs include premiums paid for the purchase of residential first mortgages and deferred loan origination costs in accordance with ASC 310-20. Net deferred loan fees of $0.1 million at December 31, 2021 included deferred fees paid by customers of $4.1 million offset by deferred costs of $4.0 million. Deferred fees and costs are amortized into interest income as loans are repaid or forgiven. U.S. SBA PPP loan net deferred fees of $9,000 at December 31, 2022 included deferred fees paid by the U.S. SBA of $9,000 partially offset by deferred costs of $1,000. U.S. SBA PPP net deferred loan fees of $0.2 million at December 31, 2021 included deferred fees paid by the SBA of $0.2 million offset by deferred costs of $18,000. The net deferred fees are being amortized as a component of interest income through the contractual maturity date of each U.S. SBA PPP loan. Net deferred fees include fees received by participant banks for each U.S. SBA PPP loan underwritten and funded net of costs incurred to underwrite the loans. Net deferred fees will be recognized in income when the U.S. SBA PPP loan is forgiven or paid. Risk Characteristics of Portfolio Segments Concentrations of Credit - Loans are made primarily within the Company’s operating footprint of Southern Maryland and the greater Fredericksburg area of Virginia. Real estate loans can be affected by the condition of the local real estate market. Commercial and industrial loans can be affected by the local economic conditions. The commercial loan portfolio has concentrations in business loans secured by real estate and real estate development loans. At December 31, 2022 and 2021, the Company had no loans outstanding with foreign entities. The Company manages its credit products and exposure to credit losses (credit risk) by the following specific portfolio segments (classes), which are levels at which the Company develops and documents its allowance for loan loss methodology. These segments are: Commercial Real Estate (“CRE”) Commercial and other real estate projects include office, medical and professional buildings, retail locations, churches, other special purpose buildings and commercial construction. Commercial construction balances were 6.9% and 6.5% of the CRE portfolio at December 31, 2022 and 2021, respectively. The primary security on a commercial real estate loan is the real property and the leases that produce income for the real property. Loans secured by commercial real estate are generally limited to 80% of the lower of the appraised value or sales price at origination and have an initial contractual loan payment period ranging from three Because payments on loans secured by such properties are often dependent on the successful operation or management of the properties, repayment of such loans may be subject to adverse conditions in the real estate market or the economy. Residential First Mortgages Residential first mortgage loans are generally long-term (10 to 30 years) amortizing loans. The Bank’s residential portfolio has both fixed-rate and adjustable-rate residential first mortgages. The annual and lifetime limitations on interest rate adjustments may constrain interest rate increases on these loans. There are also credit risks resulting from potential increased costs to the borrower as a result of repricing of adjustable-rate mortgage loans. During periods of rising interest rates, the risk of default on adjustable-rate mortgage loans may increase due to the upward adjustment of interest cost to the borrower. The Bank’s adjustable rate residential first mortgage portfolio was $13.1 million or 0.7% of total gross portfolio loans of $1.82 billion at December 31, 2022 compared to $18.9 million or 1.2% of total gross portfolio loans of $1.61 billion at December 31, 2021. As of December 31, 2022, and 2021, the Bank serviced $19.5 million and $20.9 million, respectively, in residential mortgage loans for others. Residential Rentals Residential rental mortgage loans are amortizing long-term loans. The loans are secured by income-producing 1-4 family units and apartments. Loans secured by residential rental properties are generally limited to 80% of the lower of the appraised value or sales price at origination and have initial contractual loan payment periods ranging from three Loans secured by residential rental properties involve greater risks than 1-4 family residential mortgage loans. Although, there are similar risk characteristics shared with commercial real estate loans, the balances for the loans secured by residential rental properties are generally smaller. Payments on loans secured by residential rental properties are dependent on the successful operation of the properties and repayment of these loans may be subject to adverse conditions in the rental real estate market or the economy to a greater extent than similar owner-occupied properties. Construction and Land Development The Bank offers loans for the construction of residential dwellings. These loans are secured by the real estate under construction as well as by guarantees of the principals involved. In addition, the Bank offers loans to acquire and develop land. Construction and Land Development loans are dependent on the successful completion of the underlying project, or the borrowers guarantee to repay the loan. As such, they are subject to the risks of the project including the borrower's ability to successfully manage construction and development activities. The repayment of these loans is also dependent on the borrower’s ability to successfully manage the construction and development activities. Home Equity and Second Mortgage Loans The Bank maintains a portfolio of home equity and second mortgage loans. These products contain a higher risk of default than residential first mortgages as in the event of foreclosure, the first mortgage would need to be paid off prior to collection of the second mortgage. Commercial Loans Commercial loans including lines of credit are short-term loans (5 years or less) that are secured by the equipment financed, the guarantees of the borrower, and other collateral. These loans are dependent on the success of the underlying business or the strength of the guarantor. Consumer Loans Consumer loans consist of loans secured by automobiles, boats, recreational vehicles and trucks. The Bank also makes home improvement loans and offers both secured and unsecured personal lines of credit and credit card loans. The repayment of these loans is dependent on the continued financial stability of the customer. Commercial Equipment Loans These loans consist primarily of fixed-rate, short-term loans collateralized by a commercial customer’s equipment or secured by real property, accounts receivable, or other security. Commercial loans are of higher risk and these loans are dependent on the success of the underlying business or the strength of the guarantor. U.S. SBA PPP Loans U.S. SBA PPP loans are fully guaranteed by the Small Business Administration and the Bank's ACL does not include an allowance for U.S. SBA PPP loans. Management believes all U.S. SBA PPP loans were underwritten in accordance with the program's guidelines. Non-accrual and Aging Analysis of Current and Past Due Loans Non-accrual loans as of December 31, 2022 and 2021 were as follows: December 31, 2022 (dollars in thousands) Nonaccrual with No Allowance for Credit Losses Nonaccrual with Allowance for Credit Losses Total Nonaccrual Loans Commercial real estate $ 4,521 $ 81 $ 4,602 Residential rentals 1,142 — 1,142 Home equity and second mortgages 206 — 206 Commercial equipment 137 28 165 Total $ 6,006 $ 109 $ 6,115 Interest Income on Nonaccrual Loans $ 121 $ — $ 121 December 31, 2022 (dollars in thousands) Non- accrual Delinquent Loans Non-accrual Current Loans Total Non-accrual Loans Commercial real estate $ — $ 4,602 $ 4,602 Residential rentals 449 693 1,142 Home equity and second mortgages 206 — 206 Commercial equipment — 165 165 $ 655 $ 5,460 $ 6,115 December 31, 2021 (dollars in thousands) Non- accrual Delinquent Loans Non-accrual Current Loans Total Non-accrual Loans Commercial real estate $ — $ 4,890 $ 4,890 Residential first mortgages 450 — 450 Residential rentals 252 690 942 Home equity and second mortgages 202 399 601 Commercial equipment — 691 691 U.S. SBA PPP loans 57 — 57 $ 961 $ 6,670 $ 7,631 There was one non-accrual TDR loans at December 31, 2022. Non-accrual loans at December 31, 2021 included no TDR. Non-accrual loans which did not have a specific allowance for impairment, amounted to $6.0 million and $7.4 million at December 31, 2022 and 2021, respectively. Interest due but not recognized on these balances at December 31, 2022 and 2021 was $22,000 and $0.1 million, respectively. Non-accrual loans with a specific allowance for impairment on which the recognition of interest has been discontinued amounted to $0.1 million and $0.3 million at December 31, 2022 and 2021, respectively. Interest due but not recognized on these balances at December 31, 2022 and 2021 was $1,000 and $1,000, respectively. The Company considers a loan to be past due or delinquent when the terms of the contractual obligation are not met by the borrower. Regardless of payment status, as long as cash flows can be reasonably estimated, the associated discount on these loan pools results in income recognition. An analysis of days past due ("DPD") loans as of December 31, 2022 follows: December 31, 2022 (dollars in thousands) 31-60 DPD 61-89 DPD** 90 DPD and Still Accruing 90 DPD and Not Accruing Total Past Due Current Non-Accrual Loans Current Accrual Loans Total Loans Commercial real estate $ 147 $ — $ — $ — $ 147 $ 4,602 $ 1,228,077 $ 1,232,826 Residential first mortgages — — — — — — 79,872 79,872 Residential rentals — 177 — 272 449 693 337,150 338,292 Construction and land dev. — — — — — — 17,259 17,259 Home equity and second mtg. 53 160 — 116 329 25,273 25,602 Commercial loans — — — — — — 42,055 42,055 Consumer loans 21 35 50 — 106 — 6,166 6,272 Commercial equipment 11 — — — 11 165 78,714 78,890 U.S. SBA PPP loans — — — — — — 339 339 Total portfolio loans $ 232 $ 372 $ 50 $ 388 $ 1,042 $ 5,460 $ 1,814,905 $ 1,821,407 ** Includes two loans totaling $0.3 million that are on non-accrual status Purchase Credit Impaired ("PCI") loans are included as a single category in the table below as management believes, there is a lower likelihood of aggregate loss related to these loan pools. Additionally, PCI loans are discounted to allow for the accretion of income on a level yield basis over the life of the loan based on expected cash flows. Regardless of payment status, as long as cash flows can be reasonably estimated, the associated discount on these loan pools results in income recognition. An analysis of past due loans as of December 31, 2021 follows: December 31, 2021 (dollars in thousands) 31-60 Days 61-89 Days 90 or Greater Days Total Past Due PCI Loans Current Total Loan Receivables Commercial real estate $ — $ — $ — $ — $ 1,116 $ 1,114,369 $ 1,115,485 Residential first mortgages — 277 450 727 — 90,393 91,120 Residential rentals — 42 252 294 — 194,741 195,035 Construction and land dev. — — — — — 35,590 35,590 Home equity and second mtg. 200 — 202 402 — 25,236 25,638 Commercial loans — — — — — 50,574 50,574 Consumer loans — — — — — 3,002 3,002 Commercial equipment — — — — — 62,499 62,499 Total portfolio loans $ 200 $ 319 $ 904 $ 1,423 $ 1,116 $ 1,576,404 $ 1,578,943 U.S. SBA PPP loans $ 9 $ 40 $ 57 $ 106 $ — $ 27,170 $ 27,276 There were no loans that were past due 90 days or greater accruing interest at December 31, 2021. Allowance for Credit Losses ("ACL") The following tables detail activity in the ACL at and for the years ended December 31, 2022 and 2021, respectively. An allocation of the allowance to one category of loans does not prevent the Company from using that allowance to absorb losses in a different category. Year Ended December 31, 2022 (dollars in thousands) Beginning Balance Impact of ASC 326 Adoption Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 13,095 $ 3,734 $ (280) $ 16 $ 1,085 $ 17,650 Residential first mortgages 1,002 (679) (111) 14 (19) 207 Residential rentals 2,175 (586) — — 1,472 3,061 Construction and land development 260 (82) — — (18) 160 Home equity and second mortgages 274 (86) — 1 (63) 126 Commercial loans 582 (290) (99) 2 (5) 190 Consumer loans 58 2 (49) — 143 154 Commercial equipment 971 483 (29) 75 (158) 1,342 Total $ 18,417 $ 2,496 $ (568) $ 108 $ 2,437 $ 22,890 Year Ended December 31, 2021 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 13,744 $ (1,920) $ 6 $ 1,265 $ 13,095 Residential first mortgages 1,305 (142) — (161) 1,002 Residential rentals 1,413 (46) — 808 2,175 Construction and land development 401 — — (141) 260 Home equity and second mortgages 261 — 5 8 274 Commercial loans 1,222 (76) 543 (1,107) 582 Consumer loans 20 — — 38 58 Commercial equipment 1,058 (34) 71 (124) 971 Total $ 19,424 $ (2,218) $ 625 $ 586 $ 18,417 ** There is no allowance for loan loss on the PCI or the SBA PPP portfolios. A more detailed rollforward schedule will be presented if an allowance is required. The following table presents the amortized cost basis of collateral-dependent loans by class of loans. Collateral Dependent Loans December 31, 2022 (dollars in thousands) Business/Other Assets Real Estate Commercial real estate $ — $ 4,601 Residential rentals — 1,142 Home equity and second mortgages — 206 Commercial equipment 595 — Total $ 595 $ 5,949 Credit Quality Indicators Credit quality indicators as of December 31, 2022 were as follows: Credit Risk Profile by Internally Assigned Grade The risk category of loans by class of loans is as follows: Term Loans by Origination Year (dollars in thousands) Prior 2018 2019 2020 2021 2022 Revolving Loans Total Commercial Real Estate Pass $ 329,575 $ 73,742 $ 107,264 $ 184,263 $ 272,567 $ 256,622 $ — $ 1,224,033 Special Mention — 4,191 — — — — — 4,191 Substandard 792 — 2,967 — 843 — — 4,602 Total $ 330,367 $ 77,933 $ 110,231 $ 184,263 $ 273,410 $ 256,622 $ — $ 1,232,826 Residential Rentals Pass $ 44,257 $ 4,429 $ 20,690 $ 48,237 $ 65,889 $ 153,648 $ — $ 337,150 Special Mention — — — — — — — — Substandard 1,142 — — — — — — 1,142 Total $ 45,399 $ 4,429 $ 20,690 $ 48,237 $ 65,889 $ 153,648 $ — $ 338,292 Construction and Land Development Pass $ 2,355 $ 7,788 $ 4,255 $ 729 $ 2,020 $ 112 $ — $ 17,259 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 2,355 $ 7,788 $ 4,255 $ 729 $ 2,020 $ 112 $ — $ 17,259 Commercial Loans Pass $ 23,225 $ 4,298 $ 2,463 $ 1,872 $ 6,420 $ 3,777 $ — $ 42,055 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 23,225 $ 4,298 $ 2,463 $ 1,872 $ 6,420 $ 3,777 $ — $ 42,055 Commercial Equipment Pass $ 8,206 $ 4,411 $ 14,329 $ 7,346 $ 12,948 $ 31,315 $ — $ 78,555 Special Mention — 170 — — — — — 170 Substandard — — 137 — — 28 — 165 Total $ 8,206 $ 4,581 $ 14,466 $ 7,346 $ 12,948 $ 31,343 $ — $ 78,890 Total loans by risk category $ 409,552 $ 99,029 $ 152,105 $ 242,447 $ 360,687 $ 445,502 $ — $ 1,709,322 Loans evaluated by performance category are as follows: Term Loans by Origination Year (dollars in thousands) Prior 2018 2019 2020 2021 2022 Revolving Loans Total Residential First Mortgages Performing $ 37,428 $ 3,584 $ 19,411 $ 8,523 $ 5,235 $ 5,691 $ — $ 79,872 Non-performing — — — — — — — — Total $ 37,428 $ 3,584 $ 19,411 $ 8,523 $ 5,235 $ 5,691 $ — $ 79,872 Home Equity and Second Mortgages Performing $ 14,319 $ 1,622 $ 1,041 $ 1,441 $ 3,812 $ 3,161 $ — $ 25,396 Non-performing 206 — — — — — — 206 Total $ 14,525 $ 1,622 $ 1,041 $ 1,441 $ 3,812 $ 3,161 $ — $ 25,602 Consumer Loans Performing $ 49 $ 2 $ 96 $ 118 $ 618 $ 881 $ 4,508 $ 6,272 Non-performing — — — — — — — — Total $ 49 $ 2 $ 96 $ 118 $ 618 $ 881 $ 4,508 $ 6,272 U.S. SBA PPP Loans Performing $ — $ — $ — $ — $ 339 $ — $ — $ 339 Non-performing — — — — — — — — Total $ — $ — $ — $ — $ 339 $ — $ — $ 339 Total loans evaluated by performing status $ 52,002 $ 5,208 $ 20,548 $ 10,082 $ 10,004 $ 9,733 $ 4,508 $ 112,085 Total Recorded Investment $ 461,554 $ 104,237 $ 172,653 $ 252,529 $ 370,691 $ 455,235 $ 4,508 $ 1,821,407 Credit Quality Indicators Credit quality indicators as of December 31, 2021 were as follows: Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Commercial Real Estate Construction and Land Development Residential Rentals Commercial Loans Commercial Equipment Total Commercial Portfolios 12/31/2021 12/31/2021 12/31/2021 12/31/2021 12/31/2021 12/31/2021 Unrated $ — $ — $ — $ — $ — $ — Pass 1,111,857 35,590 194,093 50,574 62,326 1,454,440 Special mention — — — — — — Substandard 3,628 — 942 — 173 4,743 Doubtful — — — — — — Loss — — — — — — Total $ 1,115,485 $ 35,590 $ 195,035 $ 50,574 $ 62,499 $ 1,459,183 (dollars in thousands) Non-Commercial Portfolios ** U.S. SBA PPP Loans Total All Portfolios 12/31/2021 12/31/2021 12/31/2021 Unrated $ 100,403 $ 27,276 $ 127,679 Pass 18,889 — 1,473,329 Special mention — — — Substandard 468 — 5,211 Doubtful — — — Loss — — — Total $ 119,760 $ 27,276 $ 1,606,219 ** Non-commercial portfolios are generally evaluated based on payment activity but may be risk graded if part of a larger commercial relationship or are credit impaired (e.g., non-accrual loans, TDRs). Credit Risk Profile Based on Payment Activity (dollars in thousands) Residential First Mortgages Home Equity and Second Mortgages Consumer Loans 12/31/2021 12/31/2021 12/31/2021 Performing $ 90,670 $ 25,436 $ 3,002 Nonperforming 450 202 — Total $ 91,120 $ 25,638 $ 3,002 A risk scale is used to assign grades to commercial relationships, which include commercial real estate, residential rentals, construction and land development, commercial loans and commercial equipment loans. Commercial loan relationships are graded at inception and at a minimum annually. Home equity, second mortgages, consumer loans, and residential first mortgages are evaluated for creditworthiness in underwriting and are monitored based on borrower payment history. Residential first mortgages, home equity, second mortgages and consumer loans are classified as unrated unless they are part of a larger commercial relationship that requires grading or are loans with an Other Assets Especially Mentioned (“OAEM”) or ("Special Mention") or higher risk rating due to a delinquency payment history. The overall quality of the Bank’s loan portfolio is assessed using the Bank’s risk-grading scale, the level and trends of net charge-offs, nonperforming loans and delinquencies, the performance of TDRs and the general economic conditions in the Company’s geographical market. This review process is assisted by frequent internal reporting of loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Credit quality indicators and allowance factors are adjusted based on management’s judgment during the monthly and quarterly review process. Loans subject to risk ratings are graded on a scale of one to ten. The Company considers loans rated substandard, doubtful and loss as classified assets for regulatory and financial reporting. Ratings 1 thru 6 - Pass Ratings 1 thru 6 have asset risks ranging from excellent-low to adequate. The specific rating assigned considers customer history of earnings, cash flows, liquidity, leverage, capitalization, consistency of debt service coverage, the nature and extent of customer relationship and other relevant specific business factors such as the stability of the industry or market area, changes to management, litigation or unexpected events that could have an impact on risks. Rating 7 - OAEM (Other Assets Especially Mentioned) - Special Mention These credits, while protected by the financial strength of the borrowers, guarantors or collateral, have reduced quality due to economic conditions, less than adequate earnings performance or other factors which require the lending officer to direct more than normal attention to the credit. Financing alternatives may be limited and/or command higher risk interest rates. OAEM loans relationships are reviewed at least quarterly. Rating 8 - Substandard Substandard assets are assets that are inadequately protected by the sound worth or paying capacity of the borrower or of the collateral pledged. Substandard loans are the first adversely classified loans on the Bank's watchlist. These assets have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. The loans may have a delinquent history or combination of weak collateral, weak guarantor strength or operating losses. When a loan is assigned to this category the Bank may estimate a specific reserve in the loan loss allowance analysis. These assets listed may include assets with histories of repossessions or some that are non-performing bankruptcies. These relationships will be reviewed at least quarterly. Rating 9 - Doubtful Doubtful assets have many of the same characteristics of Substandard with the exception that the Bank has determined that loss is not only possible but is probable and the risk is close to certain that loss will occur. When a loan is assigned to this category the Bank will identify the probable loss and the loan will receive a specific reserve in the loan loss allowance analysis. These relationships will be reviewed at least quarterly. Rating 10 - Loss Once an asset is identified as a definite loss to the Bank, it will receive the classification of “loss.” There may be some future potential recovery; however, it is more practical to write off the loan at the time of classification. Losses will be taken in the period in which they are determined to be non-collectable. TDRs, included in the impaired loan schedules above, as of December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 (dollars in thousands) Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial real estate — $ — — $ — Commercial equipment 2 457 1 447 Total TDRs 2 $ 457 1 $ 447 Less: TDRs included in non-accrual loans 1 28 — — Total accrual TDR loans 1 $ 429 1 $ 447 TDRs increased from $0.4 million at December 31, 2021 to $0.5 million at December 31, 2022. TDRs that are included in non-accrual are classified as non-accrual loans solely for the calculation of financial ratios. The Company had specific reserve of $28,000 for one TDR of $28,000 at December 31, 2022. There were no specific reserves for the one TDR of $0.4 million at December 31, 2021. During the year ended December 31, 2022, there were no TDR disposals, which included payoffs and refinancing. TDR loan principal curtailment was $18,000 for the year ended December 31, 2022. There was one TDR of $28,000 added during the year ended December 31, 2022. During the year ended December 31, 2021, TDR disposals, which included payoffs and refinancing decreased by five loans totaling $1.6 million. TDR loan principal curtailment was $18,000 for the year ended December 31, 2021. There were no TDRs added during the year ended December 31, 2021. There were no TDRs that defaulted during the twelve months ended December 31, 2022 and December 31, 2021. Interest income of $16,000 and $16,000 was recognized on outstanding TDR loans for the years ended December 31, 2022 and 2021, respectively. The Bank’s TDRs are performing according to the terms of their agreements at market interest rates appropriate for the level of credit risk of each TDR loan. The average contractual interest rate on performing TDRs at December 31, 2022 and 2021 was 3.62% and 3.62%, respectively. Prior to adoption of CECL Impaired Loans and Troubled Debt Restructures (“TDRs”) Impaired loans, including TDRs, at December 31, 2021 were as follows: December 31, 2021 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment with No Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance YTD Average Recorded Investment YTD Interest Income Recognized Commercial real estate $ 4,994 $ 4,797 $ 93 $ 4,890 $ 93 $ 4,866 $ 254 Residential first mortgages 879 866 — 866 — 874 32 Residential rentals 982 942 — 942 — 959 48 Home equity and second mtg. 626 601 — 601 — 604 14 Commercial equipment 1,200 1,022 173 1,195 173 2,184 99 Total $ 8,681 $ 8,228 $ 266 $ 8,494 $ 266 $ 9,487 $ 447 The following table details loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at December 31, 2021. December 31, 2021 (dollars in thousands) Ending balance: Ending balance: Purchase Credit Impaired Total Loan Receivables: Commercial real estate $ 4,890 $ 1,109,479 $ 1,116 $ 1,115,485 Residential first mortgages 866 90,254 — 91,120 Residential rentals 942 194,093 — 195,035 Construction and land development — 35,590 — 35,590 Home equity and second mortgages 601 25,037 — 25,638 Commercial loans — 50,574 — 50,574 Consumer loans — 3,002 — 3,002 Commercial equipment 1,195 61,304 — 62,499 $ 8,494 $ 1,569,333 $ 1,116 $ 1,578,943 Allowance for credit losses: Commercial real estate $ 93 $ 13,002 $ — $ 13,095 Residential first mortgages — 1,002 — 1,002 Residential rentals — 2,175 — 2,175 Construction and land development — 260 — 260 Home equity and second mortgages — 274 — 274 Commercial loans — 582 — 582 Consumer loans — 58 — 58 Commercial equipment 173 798 — 971 $ 266 $ 18,151 $ — $ 18,417 PCI Loans and Acquired Loans PCI loans had an unpaid principal balance of $1.5 million and a carrying values of $1.1 million at December 31, 2021. Determining the fair value of the PCI loans at the time of acquisition required the Company to estimate cash flows expected to result from those loans and to discount expected cash flows at appropriate rates of interest considering prepayment assumptions. For such loans, the excess of cash flows expected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans and is called accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the impact of estimated credit losses and is called the nonaccretable difference. In accordance with GAAP upon the adoption of CECL, there was no carryover of a previously established allowance for credit losses from acquisition. A summary of changes in the accretable yield for PCI loans for the year ended December 31, 2021 are as follows: (dollars in thousands) December 31, 2021 Accretable yield, beginning of period $ 342 Additions — Accretion (117) Reclassification from nonaccretable difference 43 Other changes, net 55 Accretable yield, end of period $ 323 At December 31, 2021 acquired performing loans, which totaled $41.1 million, included a $0.8 million net acquisition accounting fair market value adjustment, representing a 1.25% discount; and PCI loans which totaled $1.1 million, included a $0.3 million adjustment, representing a 14.95% discount. During the year ended December 31, 2021 there was $0.1 million of accretion interest. Accounting standards require a periodic recast of the expected cash flows on the PCI loan portfolio. The recast was performed during the s fourth quarter of 2021 and resulted in a reclassification of $43,000 from the credit (nonaccretable) portion of the discount to the liquidity (accretable) portion of the discount. The following is a summary of acquired and non-acquired loans as of December 31, 2021: BY ACQUIRED AND NON-ACQUIRED December 31, 2021 % Acquired loans - performing $ 41,066 2.56 % Acquired loans - purchase credit impaired ("PCI") 1,116 0.07 % Total acquired loans 42,182 2.63 % Non-acquired loans** 1,536,761 95.68 % U.S. SBA PPP loans 27,276 1.70 % Gross loans 1,606,219 Net deferred costs (fees) (1,011) (0.06) % Total loans, net of deferred costs $ 1,605,208 ** Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments. Related Party Loans Included in loans receivable were loans made to executive officers and directors and their affiliates. These loans were made in the ordinary course of business at substantially the same terms and conditions as those prevailing at the time for comparable transactions with persons not affiliated with the Bank and are not considered to involve more than the normal risk of collectability. For the years ended December 31, 2022 and 2021 all loans to directors and executive officers of the Bank performed according to original loan terms. Activity in loans outstanding to executive officers and directors and their related interests are summarized as follows: (dollars in thousands) At and For the Years Ended December 31, 2022 2021 Balance, beginning of period $ 26,267 $ 16,367 Loans and additions 13,629 2,218 Change in Directors' status (4,053) 23,752 Repayments (6,991) (16,070) Balance, end of period $ 28,852 $ 26,267 In addition, the Bank had outstanding loans of $4.0 million and $3.1 million, respectively, for the years ended December 31, 2022 and 2021 to charitable and community organizations in which the Bank's executive officers and directors volunteer. Loan Participations The Bank sells portions of commercial, commercial real estate and commercial construction loans to other lenders. The Bank's sold participated loans with other lenders at December 31, 2022 and 2021 were $21.0 million and $11.8 million, respectively. The Bank may also buy loans, portions of loans, or participation certificates from other lenders to limit overall exposure. The Bank only purchases loans or portions of loans after reviewing loan documents, underwriting support, and completing other procedures, as necessary. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and other intangible assets are presented in the tables below. (dollars in thousands) As of December 31, 2022 As of December 31, 2021 Goodwill $ 10,835 $ 10,835 As of December 31, 2022 As of December 31, 2021 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Intangible Asset Gross Carrying Amount Accumulated Amortization Net Intangible Asset Core deposit intangibles $ 3,590 $ (2,956) $ 634 $ 3,590 $ (2,558) $ 1,032 Core deposit intangible is amortized on an accelerated basis over its estimated life of 8 years. Amortization expense related to intangible assets totaled $0.4 million and $0.5 million for the years ended December 31, 2022 and 2021. The estimated future amortization expense for intangible assets remaining as of December 31, 2022 is as follows: (dollars in thousands) 2023 $ 302 2024 205 2025 109 2026 18 $ 634 As of December 31, 2022, the Company did not have impairment to goodwill or CDI. |
Premises and Equipment And Leas
Premises and Equipment And Lease Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment And Lease Commitments | PREMISES AND EQUIPMENT AND LEASE COMMITMENTS A summary of the cost and accumulated depreciation of premises and equipment at December 31, 2022 and 2021 follows: (dollars in thousands) December 31, 2022 2021 Land $ 4,957 $ 4,957 Building and improvements 25,762 25,087 Furniture and equipment 11,000 10,150 Automobiles 121 168 Total cost 41,840 40,362 Less accumulated depreciation (20,532) (18,935) Premises and equipment, net $ 21,308 $ 21,427 Operating Leases The Company's operating lease agreements are primarily for branches and office space. Topic 842 requires operating lease agreements to be recognized on the consolidated balance sheet as a right-of-use-asset with a corresponding lease liability. The table below details the Right of Use asset (net of accumulated amortization), lease liability and other information related to the Company's operating leases: (dollars in thousands) December 31, 2022 December 31, 2021 Operating Leases Operating lease right of use asset, net $ 5,920 $ 6,124 Operating lease liability $ 6,202 $ 6,343 Weighted average remaining lease term 15.7 years 17.2 years Weighted average discount rate 3.51 % 3.51 % Remaining lease term - min 4.5 years 6.3 years Remaining lease term - max 22.0 years 23.0 years The table below details the Company's lease cost, which is included in occupancy expense in the Consolidated Statements of Income. (dollars in thousands) December 31, 2022 December 31, 2021 Operating lease cost $ 611 $ 635 Cash paid for lease liability $ 546 $ 617 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: (dollars in thousands) As of December 31, 2022 Lease payments due: Within one year $ 574 After one but within two years 585 After two but within three years 622 After three but within four years 639 After four but within five years 609 After five years 5,236 Total undiscounted cash flows 8,265 Discount on cash flows (2,063) Total lease liability $ 6,202 Future minimum rental commitments under non-cancellable operating leases are as follows at December 31, 2022: (dollar in thousands) 2023 $ 574 2024 585 2025 622 2026 639 2027 609 Thereafter 5,236 Total $ 8,265 During the year ended December 31, 2021, the Company sold a small office condo held for sale with a fair value of $0.4 million that was recorded as a non-recurring Level 3 asset. The Company recorded an impairment of $25,000 based on fair value of the of the property during 2021. |
Other Real Estate Owned ("OREO"
Other Real Estate Owned ("OREO") | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Other Real Estate Owned ("OREO") | OTHER REAL ESTATE OWNED (“OREO”) OREO assets are presented net of the valuation allowance. The Company considers OREO as classified assets for regulatory and financial reporting. OREO carrying amounts reflect management’s estimate of the realizable value of these properties. An analysis of the activity follows. (dollars in thousands) Years Ended December 31, 2022 2021 Balance at beginning of year $ — $ 3,109 Additions of underlying property — — Disposals of underlying property — (1,722) Valuation allowance — (1,387) Balance at end of period $ — $ — Expenses applicable to OREO assets included the following. (dollars in thousands) Years Ended December 31, 2022 2021 Valuation allowance $ — $ 1,387 Losses (gains) on dispositions — (17) Operating expenses 6 86 $ 6 $ 1,456 The Company had no impaired loans secured by residential real estate for which formal foreclosure proceedings were in process at December 31, 2022. There were $0.4 million of loans secured by residential real estate for which formal foreclosure proceedings were in process as of December 31, 2021 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits, by Type [Abstract] | |
Deposits | DEPOSITS Deposits consist of the following: (dollars in thousands) December 31, 2022 2021 Noninterest-bearing demand $ 630,120 $ 445,778 Interest-bearing: Savings 124,533 119,767 Demand deposits 638,876 790,481 Money market deposits 347,872 372,717 Certificates of deposit 347,062 327,421 Total interest-bearing 1,458,343 1,610,386 Total Deposits $ 2,088,463 $ 2,056,164 As of December 31, 2022, and 2021, there were $19.0 million and $30.5 million, respectively in deposit accounts held by executive officers and directors and their related interests of the Bank and Company. The aggregate amount of certificates of deposit that met or exceeded the FDIC insurance limit of $250,000 at December 31, 2022, and 2021 was $114.7 million and $62.6 million, respectively. At December 31, 2022 the scheduled contractual maturities of certificates of deposit are as follows: (dollars in thousands) December 31, 2022 Within one year $ 258,086 Year 2 54,937 Year 3 24,425 Year 4 5,999 Year 5 3,615 $ 347,062 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | SHORT-TERM BORROWINGS AND LONG-TERM DEBT The Bank’s long-term debt and short-term borrowings consist of advances from the FHLB of Atlanta. The Bank classifies debt based upon original maturity and does not reclassify debt to short-term status during its life. Long-term debt and short-term borrowings include fixed-rate long-term advances, short-term advances, daily advances and fixed-rate convertible advances. Rates and maturities on long-term advances and short-term borrowings were as follows: Fixed-Rate Fixed-Rate Convertible December 31, 2022 Highest rate 4.57 % n/a Lowest rate 4.57 % n/a Weighted average rate 4.57 % n/a Matures through 2023 n/a December 31, 2021 Highest rate 2.75 % 0.79% Lowest rate 1.00 % 0.79% Weighted average rate 2.26 % 0.79% Matures through 2036 2030 Average rates of long-term debt and short-term borrowings were as follows: (dollars in thousands) At or for the Year Ended December 31, 2022 2021 Long-term debt Long-term debt outstanding at end of period $ — $ 12,231 Weighted average rate on outstanding long-term debt — % 0.82 % Maximum outstanding long-term debt of any month end 12,225 27,296 Average outstanding long-term debt 3,848 23,072 Approximate average rate paid on long-term debt 1.25 % 0.95 % Short-term borrowings Short-term borrowings outstanding at end of period $ 79,000 $ — Weighted average rate on short-term borrowings 4.57 % — % Maximum outstanding short-term borrowings at any month end 79,000 — Average outstanding short-term borrowings 12,696 — Approximate average rate paid on short-term borrowings 3.36 % — % The Bank’s fixed-rate debt generally consists of advances with monthly interest payments and principal due at maturity. The Bank’s fixed-rate convertible long-term debt is callable by the issuer, after an initial period ranging from 3 months to 10 years. The instruments are callable at the end of the initial period. As of December 31, 2021, all fixed-rate convertible debt has passed its call date. All advances have a prepayment penalty, determined based upon prevailing interest rates. During the year ended December 31, 2022, the Bank paid off $12.0 million of maturing long-term debt and made prepayments of $0.2 million on long-term debt resulting in prepayment fees of $15,000. The Bank made prepayments of $15.0 million on long-term debt resulting in prepayment fees of $0.1 million, during the year ended December 31, 2021. At December 31, 2022 the Bank had no outstanding long-term debt. At December 31, 2021, $0.2 million or 1.89% of the Bank’s long-term debt was fixed for rate and term, as the conversion optionality of the advances have either been exercised or expired. The Bank has lines available for short-term borrowings of less than a year. There were $79.0 million and no daily or short-term advances as of December 31, 2022 and December 31, 2021, respectively. Under the terms of an Agreement for Advances and Security Agreement with Blanket Floating Lien (the “Agreement”), the Bank maintains collateral with the FHLB consisting of 1-4 family residential first mortgage loans, second mortgage loans, commercial real estate and investment securities. The Agreement limits total advances to 30% of assets, which were $722.5 million and $697.8 million at December 31, 2022 and 2021, respectively. At December 31, 2022, $822.9 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2022, FHLB lendable collateral was valued at $632.5 million. At December 31, 2022, the Bank had total lendable pledged loans collateral at the FHLB of $239.7 million of which $97.7 million was available to borrow in addition to outstanding advances of $79.0 million and letter of credit of $63.0 million. Unpledged lendable securities collateral was $392.8 million, bringing total available borrowing capacity to $490.5 million at December 31, 2022. At December 31, 2021, $723.1 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2021, FHLB lendable collateral was valued at $605.7 million. At December 31, 2021, the Bank had total lendable pledged loans collateral at the FHLB of $192.0 million of which $116.8 million was available to borrow in addition to outstanding advances of $12.2 million and letter of credit of $63.0 million. Unpledged lendable securities collateral was $413.7 million, bringing total available borrowing capacity to $530.5 million at December 31, 2021. The Bank has established a short-term credit facility with the Federal Reserve Bank of Richmond under its Borrower in Custody program. The Bank had segregated collateral sufficient to draw $7.2 million and $3.3 million under this agreement at December 31, 2022 and 2021, respectively. In addition, the Bank has established unsecured short-term credit facilities with other commercial banks totaling $82.0 million and $32.0 million at December 31, 2022 and 2021. The repurchase facility requires the pledging of securities as collateral. $9.1 million and $6.0 million were outstanding loans under the Borrower in Custody or the unsecured and secured commercial lines at December 31, 2022 and 2021. |
Guaranteed Preferred Beneficial
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | 12 Months Ended |
Dec. 31, 2022 | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures (TRUPs) [Abstract] | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES (“TRUPs”) On June 15, 2005, Tri-County Capital Trust II (“Capital Trust II”), a Delaware business trust formed, funded and wholly-owned by the Company, issued $5.0 million of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 1.70%. The Trust used the proceeds from this issuance, along with the $0.2 million for Capital Trust II’s common securities, to purchase $5.2 million of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These capital securities qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust II and the junior subordinated debentures are scheduled to mature on June 15, 2035, unless called by the Company. On July 22, 2004, Tri-County Capital Trust I (“Capital Trust I”), a Delaware business trust formed, funded and wholly-owned by the Company, issued $7.0 million of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 2.60%. The Trust used the proceeds from this issuance, along with the Company’s $0.2 million capital contribution for Capital Trust I’s common securities, to purchase $7.2 million of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These debentures qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust I and the junior subordinated debentures are scheduled to mature on July 22, 2034, unless called by the Company. |
Subordinated Notes
Subordinated Notes | 12 Months Ended |
Dec. 31, 2022 | |
Subordinated Borrowings [Abstract] | |
Subordinated Notes | SUBORDINATED NOTESOn October 14, 2020, the Company issued $20.0 million in aggregate principal amount of its 4.75% Fixed to Floating Rate Subordinated Notes due 2030 (the "Notes"). The Notes were sold by the Company in a private offering. The Notes mature on October 15, 2030 and bear interest at a fixed rate of 4.75% to October 14, 2025. From October 15, 2025 to the maturity date or early redemption date, the interest rate will reset quarterly to the three month Secured Overnight Financing Rate ("SOFR") plus 458 basis points. The Company may redeem the Notes at any time after October 14, 2025, and at any time in whole, but not in part, upon the occurrence of certain events. Any redemption of the Notes will be subject to prior regulatory approval. The Company incurred debt issuance costs for placement fees, legal and other out-of-pocket expenses of approximately $0.5 million, which are being amortized over the life of the Notes. The Company recognized amortization expense of $56,000 and $56,000 during the years ending December 31, 2022 and 2021, respectively. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Capital | REGULATORY CAPITAL The Bank’s primary regulator is the Federal Deposit Insurance Corporation (“FDIC”). The Bank is subject to regulation, supervision and regular examination by the Maryland Commissioner of Financial Regulation (the “Commissioner”) and the FDIC. The Company is subject to regulation, examination and supervision by the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended (the “BHCA”). The Company and Bank are subject to the Basel III Capital Rules which establish a comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee’s “Basel III” framework for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules define the components of capital and address other issues affecting banking institutions’ regulatory capital ratios. The rules include a common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%, require a minimum ratio (“Min. Ratio”) of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A capital conservation buffer (“CCB”) is also established above the regulatory minimum capital requirements. The rules revised the definition and calculation of Tier 1 capital, Total Capital, and risk-weighted assets. As of December 31, 2022, and 2021, the Company and Bank were well-capitalized under the regulatory framework for prompt corrective action under the new Basel III Capital Rules. Management believes, as of December 31, 2022 and 2021, that the Company and the Bank met all capital adequacy requirements. The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table. Regulatory Capital and Ratios Regulatory Minimum Ratio + CCB (1) The Company The Bank (dollars in thousands) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Common equity $ 187,011 $ 208,133 $ 216,408 $ 236,561 Goodwill (10,835) (10,835) (10,835) (10,835) Core deposit intangible (net of deferred tax liability) (477) (766) (477) (766) AOCI (gains) losses 43,092 1,952 43,092 1,952 Common Equity Tier 1 Capital 218,791 198,484 248,188 226,912 TRUPs 12,000 12,000 — — Tier 1 Capital 230,791 210,484 248,188 226,912 Allowable reserve for credit losses and other Tier 2 adjustments 23,303 18,468 23,303 18,468 Subordinated notes 19,566 19,510 — — Tier 2 Capital $ 273,660 $ 248,462 $ 271,491 $ 245,380 Risk-Weighted Assets ("RWA") $ 1,943,516 $ 1,665,296 $ 1,941,922 $ 1,663,831 Average Assets ("AA") $ 2,404,643 $ 2,281,210 $ 2,403,268 $ 2,279,835 Common Tier 1 Capital to RWA 7.00% 11.26 % 11.92 % 12.78 % 13.64 % Tier 1 Capital to RWA 8.50 11.87 12.64 12.78 13.64 Tier 2 Capital to RWA 10.50 14.08 14.92 13.98 14.75 Tier 1 Capital to AA (Leverage) (2) n/a 9.60 9.23 10.33 9.95 _______________________________________ (1) The regulatory minimum capital ratio ("Min. Ratio") + the capital conservation buffer ("CCB"). (2) Tier 1 Capital to AA ("Leverage") has no capital conservation buffer defined. The prompt corrective action ("PCA") well capitalized is defined as 5.00%. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income "(AOCI)" | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income "(AOCI)" | ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2022 and 2021. Year Ended December 31, 2022 2021 (dollars in thousands) Net Unrealized Gains and Losses Net Unrealized Gains and Losses Beginning of period $ (1,952) $ 4,504 Other comprehensive income Other comprehensive losses, net of tax before reclassifications (41,140) (6,889) Amounts reclassified from accumulated other comprehensive gain — 433 Net other comprehensive loss (41,140) (6,456) End of period $ (43,092) $ (1,952) |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | EARNINGS PER SHARE ("EPS") Basic earnings per common share represent income available to common shareholders, divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company related to outstanding unvested restricted stock and performance stock unit awards were determined using the treasury stock method and included in the calculation of dilutive common stock equivalents. The Company has not granted any stock options since 2007 and all outstanding options expired on July 17, 2017. As of December 31, 2022 and 2021, there were 528 and none, respectively, of unvested restricted stock and performance stock unit awards were excluded from the calculation as their effect would be anti-dilutive. Basic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: (dollars in thousands) Years Ended December 31, 2022 2021 Net Income $ 28,317 $ 25,886 Average number of common shares outstanding 5,652,189 5,788,003 Dilutive effect of common stock equivalents 7,440 9,522 Average number of shares used to calculate diluted EPS 5,659,629 5,797,525 Anti-dilutive shares 528 — Earnings Per Common Share Basic $ 5.01 $ 4.47 Diluted $ 5.00 $ 4.47 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, 2022 2021 Current Federal $ 7,933 $ 5,500 State 2,077 2,065 10,010 7,565 Deferred Federal (274) 949 State (152) 202 (426) 1,151 Income tax expense $ 9,584 $ 8,716 The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: 2022 2021 Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Expected income tax expense at federal tax rate $ 7,959 21.00 % $ 7,267 21.00 % State taxes net of federal benefit 1,645 4.34 % 1,631 4.71 % Nondeductible expenses 262 0.69 % 71 0.21 % Nontaxable income (437) (1.15 %) (411) (1.19 %) Other 155 0.41 % 158 0.46 % $ 9,584 25.29 % $ 8,716 25.19 % The net deferred tax assets in the accompanying balance sheets include the following components: 2022 2021 Deferred tax assets Allowance for credit losses $ 5,657 $ 4,758 Deferred compensation 3,426 3,509 Lease liability 1,533 1,639 OREO valuation allowance & expenses 20 92 Unrealized loss on investment securities 15,321 684 Depreciation 277 159 Deferred fees — — Other 54 — 26,288 10,841 Deferred tax liabilities Fair value adjustments for acquired assets and liabilities 70 92 FHLB stock dividends 98 102 Unrealized gain on investment securities — — Right of use asset 1,463 1,582 Other — 32 1,631 1,808 $ 24,657 $ 9,033 Retained earnings at December 31, 2022 and 2021 included approximately $1.2 million of bad debt deductions allowed for federal income tax purposes (the “base year tax reserve”) for which no deferred income tax has been recognized. If, in the future, this portion of retained earnings is used for any purpose other than to absorb bad debt losses, it would create income for tax purposes only and income taxes would be imposed at the then prevailing rates. The unrecorded income tax liability on the above amount was approximately $0.3 million at December 31, 2022 and 2021. The Company does not have uncertain tax positions that are deemed material and did not recognize any adjustments for unrecognized tax benefits. The Company is no longer subject to U.S. Federal tax examinations by tax authorities for years before 2019. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company has stock-based incentive arrangements to attract and retain key personnel. In May 2015, the 2015 Equity Compensation Plan (the "Plan") was approved by shareholders, which authorizes the issuance of up to 400,000 shares in total of restricted stock, stock appreciation rights, stock units and stock options to the Board of Directors and key employees. Compensation expense for service-based awards is recognized over the vesting period. Performance-based awards are recognized based on a vesting schedule and the probability of achieving goals specified at the time of the grant. Stock-based compensation expense totaled $0.9 million and $0.8 million for the years ended December 31, 2022 and 2021, respectively, which consisted of grants of restricted stock, restricted stock units and performance stock units. The Company granted restricted stock in accordance with the Plan. The vesting period for outstanding restricted stock grants is between three During 2020, 2021, and 2022, the Company granted restricted stock units to the Board of Directors and key employees. Service based awards vest between one The Company has outstanding restricted stock, restricted stock units, and performance stock units in accordance with the Plan. As of December 31, 2022 and 2021, unrecognized stock compensation expense was $0.7 million and $1.1 million, respectively. The unrecognized compensation expense is expected to be recognized over a weighted average period of 1.47 years. The following tables summarize the unvested restricted stock, restricted stock unit, and performance stock unit awards outstanding at December 31, 2022 and 2021 respectively. Restricted Stock Restricted Stock Units Performance Stock Units Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2022 6,906 $ 32.81 27,652 $ 26.22 16,809 $ 23.61 Granted 1,683 38.48 12,163 38.66 3,128 40.48 Vested (4,016) 32.53 (13,293) 27.81 — — Cancelled (37) 33.52 (1,866) 26.23 (3,393) 24.60 Nonvested at December 31, 2022 4,536 $ 35.29 24,656 $ 31.50 16,544 $ 26.60 Restricted Stock Restricted Stock Units Performance Stock Units Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2021 14,130 $ 32.77 19,161 $ 24.06 8,482 $ 22.64 Granted — — 18,198 27.13 8,327 24.60 Vested (7,019) 34.61 (9,333) 23.61 — — Cancelled (205) 32.44 (374) 24.60 — — Nonvested at December 31, 2021 6,906 $ 32.81 27,652 $ 26.22 16,809 $ 23.61 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company has an Employee Stock Ownership Plan (“ESOP”) that covers substantially all employees. Employees qualify to participate after one year of service and vest in allocated shares after three years of service. The ESOP acquires stock of the Company by purchasing shares. Dividends on ESOP shares are recorded as a reduction of retained earnings. Contributions are made at the discretion of the Board of Directors. ESOP contributions recognized for the years ended December 31, 2022, and 2021 totaled $0.2 million and $0.1 million, respectively. As of December 31, 2022 and 2021, the ESOP held 119,094 and 122,831 allocated shares and 4,845 and 8,995 unallocated shares. The approximate market values of the unallocated shares were $0.2 million and $0.4 million, respectively as of December 31, 2022 and 2021. The estimated value was determined using the Company’s closing stock price of $39.90 and $39.31 per share as of December 31, 2022 and 2021, respectively. In addition, salary and employee benefit expense for the years ended December 31, 2022 and December 31, 2021 included increases of $15,000 and $2,000, respectively, for the net change of fair market value of leveraged ESOP shares allocated. The ESOP has promissory notes with the Company for the purchase of TCFC common stock for the benefit of the participants in the Plan of $0.2 million and $0.3 million at December 31, 2022 and 2021, respectively. The Bank is a guarantor of the ESOP debt with the Company. Loan terms are at prime rate plus one-percentage point and amortize over 7 years. As principal is repaid, common shares are allocated to participants based on the participant account allocation rules described in the Plan. During the year ended December 31, 2022, $0.1 million or 4,150 ESOP shares were allocated with the payment of promissory notes. There were no purchases by the ESOP of the Company’s common shares with promissory notes or cash during 2022. During the year ended December 31, 2021, $0.1 million or 4,150 ESOP shares were allocated with the payment of promissory notes. The Company also has a 401(k) plan. The Company matches a portion of the employee contributions. This ratio is determined annually by the Board of Directors. In 2022 and 2021, the Company matched one-half of the first 8% of the employee’s contribution. Employees who have completed six months of service are covered under this defined contribution plan. Employee’s vest in the Company’s matching contributions after three years of service. For the years ended December 31, 2022 and 2021, the expense recorded for this plan totaled $0.5 million and $0.5 million, respectively. The Company maintains a non-qualified deferred compensation plan for the Board of Directors and certain key employees under which each participant may elect to defer all or any portion of board fees or salary otherwise payable. Deferred amounts under this plan will be distributed to participants following termination of service or on a specified date in either lump sum or over a period of one The Company has a separate non-qualified retirement plan for non-employee directors. Directors are eligible for a maximum benefit of $3,500 a year for ten years following retirement from the Board of Community Bank of the Chesapeake. The maximum benefit is earned at 15 years of service as a non-employee director. Full vesting occurs after two years of service. Expense recorded for this plan was $15,000 and $0 for the years ended December 31, 2022 and 2021, respectively. In addition, the Company has established individual supplemental retirement plans and life insurance benefits for certain key executives and officers of the Bank. The retirement plans provide retirement income payments for 15 years from the date of the employee’s expected retirement at age 65. The retirement benefit amount for each agreement is set at the discretion of the Board of Directors and vests from the date of the agreement. Expense recorded for the plans totaled $0.6 million and $0.6 million for 2022 and 2021, respectively. |
Restrictions on Cash and Amount
Restrictions on Cash and Amounts Due from Banks | 12 Months Ended |
Dec. 31, 2022 | |
Restrictions on Cash and Amounts Due from Banks [Abstract] | |
Restrictions on Cash and Amounts Due from Banks | RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKSThe Bank was required to maintain average balances on hand or with the Federal Reserve Bank. The Federal Reserve Bank announced on March 15, 2020, the reduction of reserve requirement ratios to zero percent effective March 26, 2020, which eliminated reserve requirements for all depository institutions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES In the normal course of business, the Bank is party to financial instruments with commitments that extend credit to meet the financing needs of customers. These instruments may involve elements of credit and interest rate risk in excess of amounts recognized on the balance sheet. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments as it does for on-balance-sheet loans receivable. As of December 31, 2022, and 2021, the Bank had outstanding loan commitments, consisting of commitments issued to originate loans, of approximately $44.9 million and $64.4 million, respectively, excluding undisbursed portions of loans in process. |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | RELATED PARTIESA member of the board directors of the Company is a shareholder in a law firm that provides ongoing legal services for the Company and its subsidiaries. During 2022 and 2021, the Company paid the law firm annual retainers of $118,000 and $113,000, respectively. Certain directors and executive officers and their related interests have loan transactions with the Company. Such loans were made in the ordinary course of business on substantially the same terms as those prevailing at the time for comparable transactions with outsiders. Please see further details regarding Related Party Loans in Note 3 to the Consolidated Financial Statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company adopted FASB ASC Topic 820, “Fair Value Measurements” and FASB ASC Topic 825, “The Fair Value Option for Financial Assets and Financial Liabilities” , which provides a framework for measuring and disclosing fair value under generally accepted accounting principles. FASB ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, AFS investment securities) or on a nonrecurring basis (for example, specifically reserved loans). FASB ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an 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. FASB ASC Topic 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. AFS securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis such as loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Under FASB ASC Topic 820, the Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine the fair value. These hierarchy levels are: Level 1 inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s quarterly valuation process. Transfers in and out of level 3 during a quarter are disclosed. There were no such transfers during the years ended December 31, 2022 and December 31, 2021. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities Available for Sale AFS investment securities are recorded at fair value on a recurring basis. Standard inputs include quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities ("GSEs"), municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. Equity Securities Carried at Fair Value Through Income Equity securities carried at fair value through income are recorded at fair value on a recurring basis. Standard inputs include quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 equity securities include those traded on an active exchange, such as the New York Stock Exchange. Level 2 equity securities include mutual funds with asset-backed securities issued by GSEs as the underlying investment supporting the fund. Equity securities classified as Level 3 include mutual funds with asset-backed securities in less liquid markets. Loans held for sale The Company has elected to carry loans held for sale at fair value. This election reduces certain timing differences in the Consolidated Statement of Income and better aligns with the management of the portfolio from a business perspective. Fair value is derived from secondary market quotations for similar instruments. Gains and losses on sales of residential mortgage loans are recorded as a component of noninterest income in the Consolidated Statements of Income. As such, loans subjected to fair value adjustments are classified as Level 2 valuation. Loans Receivable The Company does not record loans at fair value on a recurring basis; however, from time to time, a loan is individually evaluated, and an ACL is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan are segregated individually. Management estimates the fair value of individually evaluated loans using one of several methods, including the collateral value, market value of similar debt, and discounted cash flows. Individually evaluated loans not requiring an allowance represent loans for which the fair value of expected repayments or collateral exceed the recorded investment in such loans. At December 31, 2022 and 2021, substantially all of the individually evaluated loans were evaluated based upon the fair value of the collateral. In accordance with FASB ASC 820, impaired loans where an allowance is established based on the fair value of collateral (loans with impairment) require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price (e.g., contracted sales price), the Company records the loan as nonrecurring Level 2. When the fair value of the impaired loan is derived from an appraisal, the Company records the loan as nonrecurring Level 3. Fair value is re-assessed at least quarterly or more frequently when circumstances occur that indicate a change in the fair value. The fair values of impaired loans that are not measured based on collateral values are measured using discounted cash flows and considered to be Level 3 inputs. Other Real Estate Owned (“OREO”) OREO is adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, OREO is carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price (e.g., contracted sales price), the Company records the foreclosed asset as nonrecurring Level 2. When the fair value is derived from an appraisal, the Company records the foreclosed asset at nonrecurring Level 3. Mortgage Banking Derivatives The mortgage banking derivative comprises interest rate lock commitments for residential loans to be sold on a best-efforts basis. The significant unobservable input used in the fair value measurement of the Bank's interest rate lock commitments is the pull-through rate, which represents the percentage of loans currently in a lock position which management estimates will ultimately close. The pull-through rate is estimated based on mortgage banking activity in 2022 and 2021. All interest rate lock commitments are considered to be Level 3. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets as of December 31, 2022 and December 31, 2021 measured at fair value on a recurring basis. (dollars in thousands) December 31, 2022 Description of Asset Fair Value Level 1 Level 2 Level 3 AFS securities Asset-backed securities issued by GSEs and U.S. Agencies MBS $ 113,670 $ — $ 113,670 $ — CMOs 159,413 — 159,413 — U.S. Agency 12,356 — 12,356 — Asset-backed securities issued by Others: Residential CMOs 12,206 — 12,206 — Student Loan Trust ABSs 47,312 — 47,312 — Municipal bonds 79,618 — 79,618 — Corporate bonds 4,404 — 4,404 — U.S. government obligations 33,767 — 33,767 — Total AFS securities $ 462,746 $ — $ 462,746 $ — Equity securities carried at fair value through income CRA investment fund $ 4,286 $ — $ 4,286 $ — Non-marketable equity securities Other equity securities $ 207 $ — $ 207 $ — (dollars in thousands) December 31, 2021 Description of Asset Fair Value Level 1 Level 2 Level 3 AFS securities Asset-backed securities issued by GSEs and U.S. Agencies MBS $ 119,916 $ — $ 119,916 $ — CMOs 197,123 — 197,123 — U.S. Agency 14,304 — 14,304 — Asset-backed securities issued by Others: Residential CMOs 221 — 221 — Student Loan Trust ABSs 56,574 — 56,574 — Municipal bonds 92,841 — 92,841 — U.S. government obligations 16,860 — 16,860 — Total AFS securities $ 497,839 $ — $ 497,839 $ — Equity securities carried at fair value through income CRA investment fund $ 4,772 $ — $ 4,772 $ — Non-marketable equity securities Other equity securities $ 207 $ — $ 207 $ — Mortgage banking derivatives Interest rate lock commitments $ 28 $ — $ — $ 28 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Loans with an allowance have unpaid principal balances of $0.1 million and $0.3 million at December 31, 2022 and 2021, respectively. The fair values of these loans were zero for both periods. There were no other assets measured at fair value on a nonrecurring basis as of December 31, 2022 and December 31, 2021. The following tables provide information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2022 and December 31, 2021. There were no Level 3 recurring assets or liabilities at December 31, 2022. December 31, 2021 (dollars in thousands) Description of Asset Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Interest rate lock commitments $ 28 Freddie Mac pricing of loans with comparable terms Pull-through rate 0% - 100% - 75% |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Financial instruments require disclosure of fair value information, whether or not recognized in the consolidated balance sheets, when it is practical to estimate the fair value. A financial instrument is defined as cash, evidence of an ownership interest in an entity or a contractual obligation which requires the exchange of cash. Certain items are specifically excluded from the financial instrument fair value disclosure requirements, including the Company’s common stock, OREO, premises and equipment and other assets and liabilities. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Therefore, any aggregate unrealized gains or losses should not be interpreted as a forecast of future earnings or cash flows. Furthermore, the fair values disclosed should not be interpreted as the aggregate current value of the Company. Valuation Methodology In 2018, the Company implemented “ ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities .” ASU 2016-01 requires public business entities to use the exit prices when measuring the fair value of financial instruments for disclosure purposes. The exit price notion uses a similar approach as the Company’s previous methodology for valuations that used discounted cash flows, but also incorporates other factors, such as enhanced credit risk, illiquidity risk and market factors that sometimes exist in exit prices in dislocated markets. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The implementation of ASU 2016-01 was most impactful to the Company’s loan portfolio because the Company’s other financial instruments have one or several other compensating factors (e.g., quoted market prices, lower credit risk, limited liquidity risk, short durations, etc.). Investment securities - Fair values are based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. FHLB stock - Fair values are at cost, which is the carrying value of the securities. Accrued Interest Receivable - Carrying amount is the estimated fair value. Investment in bank owned life insurance (“BOLI”) - Fair values are at cash surrender value. Loans receivable - The fair values for non-impaired loans are estimated using discounted cash flow analysis, applying interest rates currently being offered for loans with similar terms and credit quality. Internal prepayment risk models are used to adjust contractual cash flows. Management estimates the fair value of impaired loans using one of several methods, including the collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. After evaluating the underlying collateral, the fair value is determined by allocating specific reserves from the allowance for credit losses to the impaired loans. Deposits - The fair values of checking accounts, saving accounts and money market accounts were the amount payable on demand at the reporting date. Time certificates - The fair value was determined using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar products. Long-term debt and short-term borrowings - These were valued using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar borrowings. Guaranteed preferred beneficial interest in junior subordinated securities ("TRUPs") - These were valued using discounted cash flows. The discount rate was equal to the rate currently offered on similar borrowings. Subordinated notes - These were valued using discounted cash flows. The discount rate was equal to the rate currently offered on similar borrowings. Off-balance sheet instruments - The Company charges fees for commitments to extend credit. Interest rates on loans for which these commitments are extended are normally committed for periods of less than one month. Fees charged on standby letters of credit and other financial guarantees are deemed to be immaterial and these guarantees are expected to be settled at face amount or expire unused. It is impractical to assign any fair value to these commitments. The Company’s estimated fair values of financial instruments are presented in the following tables. December 31, 2022 Carrying Amount Fair Value Fair Value Measurements Description of Asset (dollars in thousands) Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 462,746 $ 462,746 $ — $ 462,746 $ — Equity securities carried at fair value through income 4,286 4,286 — 4,286 — Non-marketable equity securities in other financial institutions 207 207 — 207 — FHLB Stock 4,584 4,584 — 4,584 — Net loans receivable 1,798,517 1,743,574 — — 1,743,574 Accrued Interest Receivable 8,335 8,335 — 8,335 — Investment in BOLI 39,802 39,802 — 39,802 — Liabilities Savings, NOW and money market accounts $ 1,741,401 $ 1,741,401 $ — $ 1,741,401 $ — Time deposits 347,062 346,261 — 346,261 — Short-term borrowings 79,000 79,087 — 79,087 — TRUPs 12,000 10,296 — 10,296 — Subordinated notes 19,566 18,745 — 18,745 — December 31, 2021 Carrying Amount Fair Value Fair Value Measurements Description of Asset (dollars in thousands) Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 497,839 $ 497,839 $ — $ 497,839 $ — Equity securities carried at fair value through income 4,772 4,772 — 4,772 — Non-marketable equity securities in other financial institutions 207 207 — 207 — FHLB Stock 1,472 1,472 — 1,472 — Net loans receivable 1,586,791 1,578,032 — — 1,578,032 Accrued Interest Receivable 5,588 5,588 — 5,588 — Investment in BOLI 38,932 38,932 — 38,932 — Mortgage banking derivatives 28 28 — — 28 Liabilities Savings, NOW and money market accounts $ 1,728,743 $ 1,728,743 $ — $ 1,728,743 $ — Time deposits 327,421 328,083 — 328,083 — Long-term debt 12,231 12,391 — 12,391 — TRUPs 12,000 11,589 — 11,589 — Subordinated notes 19,510 20,979 — 20,979 — At December 31, 2022 and 2021, the Company had outstanding loan commitments of $44.9 million and $64.4 million, respectively, and standby letters of credit of $25.0 million and $22.0 million, respectively. Additionally, at December 31, 2022 and 2021, customers had $278.1 million and $241.7 million, respectively, of available and unused on lines of credit, which include lines of credit for commercial customers, home equity loans as well as builder and construction lines. Based on the short-term lives of these instruments, the Company does not believe that the fair value of these instruments differs significantly from their carrying values. The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2022 and 2021, respectively. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these Consolidated Financial Statements since that date and, therefore, current estimates of fair value may differ significantly from the amount presented herein. |
Condensed Financial Statements
Condensed Financial Statements - Parent Company Only | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements - Parent Company Only | CONDENSED FINANCIAL STATEMENTS – PARENT COMPANY ONLY Balance Sheets (dollars in thousands) December 31, 2022 2021 Assets Cash - noninterest bearing $ 2,433 $ 3,097 Investment in wholly-owned subsidiaries 216,780 236,933 Other assets 1,222 1,092 Total Assets $ 220,435 $ 241,122 Liabilities and Stockholders' Equity Current liabilities $ 1,486 $ 1,107 Guaranteed preferred beneficial interest in junior subordinated debentures 12,372 12,372 Subordinated notes - 4.75%, net of debt issuance costs 19,566 19,510 Total Liabilities 33,424 32,989 Stockholders' Equity Common stock 56 57 Additional paid in capital 97,986 96,896 Retained earnings 132,235 113,448 Accumulated other comprehensive loss (43,092) (1,952) Unearned ESOP shares (174) (316) Total Stockholders’ Equity 187,011 208,133 Total Liabilities and Stockholders’ Equity $ 220,435 $ 241,122 Condensed Statements of Income (dollars in thousands) Years Ended December 31, 2022 2021 Interest and Dividend Income Dividends from subsidiary $ 10,000 $ 3,500 Interest income 28 28 Interest expense 1,497 1,305 Net Interest Income 8,531 2,223 Miscellaneous expenses (3,505) (2,531) Income before income taxes and equity in undistributed net income of subsidiary 5,026 (308) Federal and state income tax benefit 914 822 Equity in undistributed net income of subsidiary 22,377 25,372 Net Income $ 28,317 $ 25,886 Condensed Statements of Cash Flows (dollars in thousands) Years Ended December 31, 2022 2021 Cash Flows from Operating Activities Net income $ 28,317 $ 25,886 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (22,377) (25,372) Amortization of debt issuance costs 56 (16) Stock based compensation 260 260 (Increase) decrease in other assets (140) 316 Decrease in deferred income tax benefit 7 15 Increase in current liabilities 379 5 Net Cash Provided by Operating Activities 6,502 1,094 Cash Flows from Investing Activities Net Cash Provided by Investing Activities — — Cash Flows from Financing Activities Dividends paid (3,753) (3,170) Net change in unearned ESOP shares 142 143 Repurchase of common stock (3,555) (7,046) Net Cash Used by Financing Activities (7,166) (10,073) Decrease in Cash (664) (8,979) Cash at Beginning of Year 3,097 12,076 Cash at End of Year $ 2,433 $ 3,097 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of The Community Financial Corporation and its wholly-owned subsidiary Community Bank of the Chesapeake (the “Bank”), (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America and to general practices within the banking industry. |
Accounting Changes and Reclassifications | Accounting Changes and Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. |
Nature of Operations | Nature of Operations The Company provides a variety of financial services to individuals and businesses through its offices in Southern Maryland and Fredericksburg, Virginia. Its primary deposit products are demand, savings and time deposits, and its primary lending products are commercial and residential mortgage loans, commercial loans, construction and land development loans, home equity and second mortgages and commercial equipment loans. |
Use of Estimates | Use of EstimatesIn preparing Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses ("ACL"), real estate acquired in the settlement of loans ("OREO"), fair value of financial instruments, fair value of assets acquired, and liabilities assumed in a business combination, evaluating potential credit losses of investment securities and valuation of deferred tax assets. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in or near Fredericksburg, Virginia and the Southern Maryland counties of Calvert, Charles and St. Mary’s. Notes 2 and 3 discuss the types of securities and loans held by the Company. The Company does not have significant concentration in any one customer or industry. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly-liquid debt instruments with original maturities of three months or less when purchased to be cash equivalents. |
Investment Securities | Investment Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity (“HTM”) and recorded at amortized cost. At December 31, 2022 and 2021 the Company had no HTM securities. See Note 2 Securities for additional information. Securities purchased and held principally for trading in the near term are classified as “trading securities” and are reported at fair value, with unrealized gains and losses included in earnings. The Company held no trading securities for the years ended December 31, 2022 and 2021. Securities not classified as HTM or trading securities are classified as available for sale (“AFS”) and recorded at estimated fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Equity securities with readily determinable fair values are recorded at fair value with unrealized gains and losses included in noninterest income in the consolidated statements of income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the estimated fair value of HTM and AFS securities below their cost that are deemed to be impaired are reflected in earnings as realized losses. In making this assessment, Company considers the extent to which fair value is less than amortized cost, any changes to the |
Loans Held for Sale | Loans Held for Sale Loans originated and held for sale are carried at fair market. Loans held for sale include fixed-rate single-family residential loans under contract to be sold in the secondary market. These loans are sold with mortgage servicing rights retained. Under limited circumstances, buyers may have recourse to return a purchased loan to the Company. Recourse conditions may include early payment default, breach or representation or warranties, or documentation deficiencies. Fair value of loans held for sale is determined at the loan level based on prevailing market prices for loans with similar risk characteristics or sale contract prices. Declines in fair value below cost are recognized in net gain on sale of loans. Deferred fees and costs related to these loans are not amortized but are recognized as part of the cost basis of the loan at the time it is sold. Gains or losses on sales are recognized as a component of non-interest income. The Bank had no loans held for sale at December 31, 2022 and 2021, respectively, and sold nine 1-4 family residential mortgage loans for the year ended December 31, 2022. The Bank enters into commitments to originate residential mortgage loans whereby the interest rate on the loan is determined prior to funding (i.e., interest rate lock commitments). Such interest rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. To protect against the price risk inherent in residential mortgage loan commitments, the Bank uses "best efforts" forward loan sale commitments. Under a "best efforts" contract, the Bank commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor. The investor commits to a price, representing the premium on the day the borrower commits to an interest rate. The investor commitment locks in the price of the loan which protects the Bank from subsequent changes in interest rates. As a result, the Bank is not generally exposed to losses on loans sold utilizing best efforts, nor will it realize gains related to rate lock commitments due to changes in interest rates. The market values of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded. Because of the high correlation between rate lock commitments and best efforts contracts, very little gain or loss should occur on the interest rate lock commitments. In circumstances where the Company does not deliver the whole loan to an investor, but rather elects to retain the loan in its portfolio, the loan is transferred from held for sale to loans at fair value at the date of transfer. |
Loans Receivable | Loans Receivable The Company originates real estate mortgages, construction and land development loans, commercial loans and consumer loans. A substantial portion of the loan portfolio comprises loans throughout Southern Maryland and the Fredericksburg area of Virginia. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and economic conditions in this area. Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding unpaid principal balances, adjusted for the allowance for credit losses and any deferred fees or premiums. Interest income is accrued on the unpaid principal balance. Loan origination fees and premiums, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered credit deteriorated. Evidence of credit quality deterioration as of the purchase date may include statistics such as internal risk grade, past due and nonaccrual status, recent borrower credit scores and recent loan-to-value (“LTV”) percentages. At December 31, 2021, the Bank had purchased credit-deteriorated (“PCD”) loans from the County First acquisition with unpaid principal balances of $1.4 million and carrying values of $1.1 million. At the adoption of ASC 326, management evaluated the remaining unamortized discount on the PCD loans and determined that approximately $8,000 of the discount was credit related and reclassified into the ACL. The non-credit component of the discount will be recognized in interest income over the remaining life of the loans. The Company considers a loan to be past due or delinquent when the terms of the contractual obligation are not met by the borrower. Loans are reviewed on a regular basis and are placed on non-accrual status when, in the opinion of management, the collection of additional interest is doubtful. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in the process of collection. Non-accrual loans include certain loans that are current with all loan payments and are placed on non-accrual status due to customer operating results and cash flows. Non-accrual loans are evaluated for impairment on a loan-by-loan basis in accordance with the Company’s impairment methodology. Consumer loans, excluding credit card loans, are typically charged-off no later than 90 days past due. Credit card loans are typically charged-off no later than 180 days past due. Mortgage and commercial loans are fully or partially charged-off when in management’s judgment all reasonable efforts to return a loan to performing status have occurred. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected from loans that are placed on non-accrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. TDRs are loans that have been modified to provide for a reduction or a delay in the payment of either interest or principal because of deterioration in the financial condition of the borrower. A loan extended or renewed at a stated interest rate equal to the current interest rate for new debt with similar risk is not considered a TDR. Once an obligation has been classified as a TDR it continues to be considered a TDR until paid in full or until the debt is refinanced and considered unimpaired. All TDRs are assessed on a loan-by-loan basis. The Company does not participate in any specific government or Company-sponsored loan modification programs. All restructured loan agreements are individual contracts negotiated with a borrower. In 2019 the Bank entered into a Servicing and Intercreditor Agreement ("SIA") with a correspondent bank which allows us to offer interest rate protection to our customers. In most cases, the Bank is paid a referral fee for these transactions which is recognized at inception. |
Allowance for Loan Losses and Impaired Loans | Allowance for Credit Losses On January 1, 2022, the Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments , which replaced the incurred loss methodology for determining the provision for credit losses and ACL with the CECL methodology. The measurement of expected credit losses under the CECL methodology applies to financial assets subject to credit losses and measured at amortized cost, and certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. In addition, ASU 2016-13 made changes to the accounting for available-for-sale ("AFS") debt securities. Credit-related impairments of AFS debt securities are now recognized through an allowance for credit loss rather than a write-down of the securities' amortized cost basis when management does not intend to sell or believes that it is not likely that they will be required to sell the securities prior to recovery of the securities amortized cost basis. The Bank adopted ASU 2016-13 using the modified retrospective method. Results for reporting periods beginning after January 1, 2022 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. At adoption, the Company did not hold Held to Maturity ("HTM") investment debt securities. The following table shows the impact of the Company's adoption of ASC 326: January 1, 2022 (dollars in thousands) As Reported Under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption Portfolio Loans: Commercial real estate $ 1,113,793 $ 1,115,485 $ (1,692) Residential first mortgages 92,710 91,120 1,590 Residential rentals 194,911 195,035 (124) Construction and land development 35,502 35,590 (88) Home equity and second mortgages 25,661 25,638 23 Commercial loans 50,512 50,574 (62) Consumer loans 3,015 3,002 13 Commercial equipment 62,706 62,499 207 Gross portfolio loans 1,578,810 1,578,943 (133) Adjustments: Net deferred costs — (133) 133 Allowance for credit losses (20,913) (18,417) (2,496) Net Portfolio Loans 1,557,897 1,560,393 (2,496) U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans 26,398 27,276 (878) Net deferred fees — (878) 878 Net U.S. SBA PPP Loans 26,398 26,398 — Total Net Loans $ 1,584,295 $ 1,586,791 $ (2,496) Liabilities: Reserve for Unfunded Commitments $ 268 $ 51 $ 217 Allowance for Credit Losses - Loans The ACL is an estimate of the expected credit losses for loans held for investment and off-balance sheet exposures. ASU 2016-13 replaced the incurred loss model that recognized a loss when it became probable that a credit loss had occurred, with a model that immediately recognizes the credit loss expected to occur over the lifetime of a financial asset whether originated or purchased. Charge-offs are recorded to the ACL when management believes the loan is uncollectible. Subsequent recoveries, if any, are credited to the ACL. Management believes the ACL is in accordance with U.S. GAAP and in compliance with appropriate regulatory guidelines. The ACL includes quantitative estimates of losses for collectively and individually evaluated loans. As more fully described below, the model-based quantitative estimate for collectively evaluated loans is determined using the probability of default (PD) and loss given default (LGD) at the segment level and applied at the loan level against the expected exposure at default (EAD). Qualitative adjustments to the quantitative estimate may be made using information not considered in the quantitative model. The Bank uses a range of data to estimate expected credit losses under CECL, including information about past events, current conditions, and reasonable and supportable forecasts relevant to assessing the collectability of the cash flows of the loans. Historical loss experience serves as the foundation for our estimated credit losses. Adjustments to our historical loss experience are made for differences in current loan portfolio segment credit risk characteristics such as the impact of changing unemployment rates, changes in U.S. Treasury yields, portfolio concentrations, the volume of classified loans, inflation, and other prevailing economic conditions and factors that may affect the borrower’s ability to repay, or reduce the estimated value of underlying collateral. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The ACL is measured on a collective basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by loan type code or product type codes and assigned to a corresponding portfolio segment. Portfolio segments may be further subdivided into similar risk profile groupings based on interest rate structure, types of collateral or other terms and characteristics. The probability of default (“PD”) calculation analyzes the historical loan portfolio over the given look back period to identify, by segment, loans that have defaulted. A default is defined as a loan that has moved to past due 90 days and greater, nonaccrual status, or experienced a charge-off during the period. The model observes loans over a 12-month window, detecting any events previously defined. This information is then used by the model to calculate annual iterative count-based PD rates for each segment. This process is then repeated for all dates within the historical data range. These averaged PD’s are used for a 12-month straight-line reversion to the historical mean. The historical data used was from mid-2006 through the most recent quarter end. The Company utilizes reasonable and supportable forecasts of future economic conditions when estimating the ACL on loans. The model’s calculation also includes a 12-month forecasted PD based on a regression model that compares the Company’s historical loan data to various national economic metrics during the same periods. The results show the Company’s past losses having a high rate of correlation to national unemployment rates for fixed rate loans and the 10-Year U.S. Treasury for adjustable-rate loans. The model uses this information, along with the most recently published Wall Street Journal survey of sixty economists’ forecasts predicting unemployment rates out over the next four quarters to estimate the PD for the forward-looking 12-month period. These data are also used to predict credit losses at different levels of stress, including a baseline, low, high and adverse economic conditions. After the forecast period, PD rates revert to the historical mean straight line over a 12-month period for the entire data set. The loss given default (“LGD”) calculation is based on actual losses (charge-offs, net of recoveries) at a loan level over the entire look-back period aggregated for each loan segment. The aggregate loss is divided by the exposure at default to determine an LGD rate. Defaults occurring during the look-back period are included in the denominator, whether or not a loss occurred and exposure at default is determined by the loan balance immediately preceding the default event. When the Company's data are insufficient. an industry index is used. The exposure at default (“EAD”) calculation projects future expected balances from monthly cash flow schedules to apply PD and LGD assumptions. These are derived based on current contractual terms (balance, interest rate, payment structure), adjusted for expected voluntary prepayments. The contractual terms exclude expected extensions, renewals and modifications unless either of the following applies: management has the reasonable expectation that a loan will be restructured, or the extension or renewal option are included in the borrower contract. On a quarterly basis, the Company uses internal portfolio credit data, such as levels of non-accrual loans, classified assets and concentrations of credit along with other external information not used in the quantitative calculation to determine qualitative adjustments. Loans that do not share the same common risk characteristics with other loans are individually assessed. Such loans include non-accrual loans, TDRs, loans classified as substandard or worse, loans that are greater than 89 days delinquent and any other loan identified by management for individual assessment. Reserves on individually assessed loans are measured on a loan-by-loan basis. Generally, consumer loans, including credit cards, are not individually assessed as the Bank's policy is to charge-off credit card loans when they become 180 days delinquent and other consumer loans when they are more than 90 days delinquent. The methodology used to estimate the ACL is designed to be responsive to changes in portfolio credit quality and forecasted economic conditions. Changes due to new information are reflected in the pool-based allowance and in reserves assigned on an individual basis. Executive management closely monitors loss ratios, reviews the appropriateness of the ACL and presents conclusions to the Credit Risk Committee and the Audit Committee. The committees report to the Board as part of Board's quarterly review of our regulatory reporting and consolidated financial statements. The calculation of the ACL excludes accrued interest receivable balances because these balances are reversed in a timely manner against previously recognized interest income when a loan is placed on non-accrual status. Allowance for Credit Losses - AFS Debt securities As described above, the Company does not presently hold any HTM debt securities and therefore is not presently required to apply a CECL methodology for an HTM investment portfolio. The impairment model for AFS debt securities measures fair value. Although ASU No. 2016-13 replaced the legacy other-than-temporary impairment (“OTTI”) model with a credit loss model, it retained the fundamental nature of the legacy OTTI model for AFS securities. One notable change from the legacy OTTI model is when evaluating whether credit loss exists, an entity may no longer consider the length of time fair value has been less than amortized cost. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criterion is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and a corresponding allowance for credit losses is recorded. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment not recorded through an allowance for credit loss is recognized in other comprehensive income as a noncredit-related impairment. As of December 31, 2022, the Company determined that the unrealized loss positions in AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded. See Note 2 Investment Securities for more information. The Bank elected as allowed under ASU No. 2016-13 to exclude accrued interest from the amortized cost basis of AFS debt securities and report accrued interest separately in accrued interest and other assets in the consolidated balance sheets. AFS debt securities are placed on non-accrual status when management no longer expects to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a security is placed on non-accrual status. Accordingly, the Company does not recognize an allowance for credit loss against accrued interest receivable. The majority of AFS debt securities as of December 31, 2022 and December 31, 2021 were issued by Government Sponsored Enterprises (“GSEs”) and U.S. agencies. As such, an allowance for credit losses is not considered necessary. Collateral Dependent Financial Assets Loans that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the Net Present Value ("NPV") from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Subsequent changes to the fair value of collateral, for which an ACL was previously recognized, will be reported as a provision (recovery) for credit losses. The Bank generally uses the practical expedient of the fair value of the collateral, net of estimated selling costs, to determine the expected credit loss for individually assessed collateral dependent loans. Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposure Financial instruments include off-balance sheet credit instruments such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records a reserve for unfunded commitments (“RUC”) on off-balance sheet credit exposures through a charge to provision for credit loss expense in the Company’s consolidated statements of operations. The RUC on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in accrued expenses and other liabilities on the Company’s consolidated balance sheets. |
Servicing | ServicingServicing assets are recognized as separate assets when rights are acquired or retained through the purchase or sale of financial assets and are evaluated for impairment based upon the estimated fair value of the rights as compared to amortized cost. Servicing fee income is recorded over the servicing period. Servicing assets are not a significant asset of the Bank's operations. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises, improvements and equipment are carried at cost, less accumulated depreciation and amortization, computed by the straight-line method over the estimated useful lives of the assets, which are as follows: Buildings and Improvements: 10 to 50 years Furniture and Equipment: three Automobiles: four Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful lives of premises and equipment are capitalized. For the years ended December 31, 2022 and 2021, the Company recognized depreciation expense of $1.6 million and $1.5 million, respectively. A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. The Company leases certain properties and land under operating leases. The Company recognizes a liability to make lease payments, the “lease liability”, and an asset representing the right to use the underlying asset during the lease term, the “right-of-use asset”. The right of use assets and lease liabilities are impacted by the length of the lease term and the rate used to discount the minimum lease payments to present value. The lease liability is measured at the present value of the remaining lease payments, discounted at the Company's incremental borrowing rate. The right-of-use asset is measured at the amount of the lease liability adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the right-of-use-asset. Operating lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis. The Company's lease agreements often include one or more options to renew at the Company's discretion. If at lease inception, the Company reasonably expects to exercise the renewal option, the Company will include the extended term in the calculation of the right of use asset and lease liability. Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception over a similar term. For operating leases existing prior to January 1, 2019, the FHLB fixed advance rate which corresponded with the remaining lease term as of January 1, 2019 was used. The Company's leases do not contain residual value guarantees. The Company's variable lease payments are expensed and classified as operating activities in the statement of cash flows. The Company does not have any material restrictions or covenants imposed by leases that would impact the Company's ability to pay dividends or cause the Company to incur additional financial obligations. |
Other Real Estate Owned ("OREO") | Other Real Estate Owned (“OREO”) Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the estimated fair value at the date of foreclosure less selling costs, establishing a new initial cost basis. Subsequent to foreclosure, management performs periodic valuations, and the assets are carried at the lower of the initial cost basis or estimated fair value less the cost to sell. Based on updated valuations, the Bank has the ability to reverse valuation allowances recorded up to the amount of the initial cost basis. Revenues and expenses from operations and changes in the valuation allowance are included in noninterest expense. Gains or losses on disposition are included in noninterest expense. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Goodwill is assigned to reporting units and tested for impairment at least annually in the fourth quarter or on an interim basis if an event occurs or circumstances changed that would more likely than not reduce the fair value of the reporting unit below its carrying value. See Note 4 – Goodwill and Other Intangible Assets . Other intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. The Company's other intangible assets relate to acquired core deposits. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated lives. Intangible assets with indefinite useful lives are not amortized until their lives are determined to be definite. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. See Note 4 - Goodwill and Other Intangible Assets . |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. |
Income Taxes | Income Taxes The Company files a consolidated federal income tax return with its subsidiaries. Deferred tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws and when it is considered more likely than not that deferred tax assets will be realized. It is the Company’s policy to recognize accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. |
Off Balance Sheet Credit Related Financial Instruments | Off Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under commercial lines of credit, letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based incentive arrangements to attract and retain key personnel in order to promote the success of the business. In May 2015, the 2015 Equity Compensation Plan (the “2015 plan”) was approved by shareholders, which authorizes the issuance of restricted stock, stock appreciation rights, stock units and stock options to the Board of Directors and key employees. Compensation cost for all stock-based awards is measured at fair value on the date of grant and recognized as expense over the service period, net of estimated forfeitures. The estimation of stock awards that ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such differences will be recorded as adjustments in the periods the estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. The Company and the Bank currently maintain incentive compensation plans which provide for payments to be made in cash or other share-based compensation. The Company has accrued the full amounts due under these plans. |
Earnings Per Common Share ("EPS") | Earnings Per Common Share (“EPS”) Basic earnings per common share represent income available to common stockholders, divided by the weighted average number of common shares outstanding during the period. Unencumbered shares held by the Employee Stock Ownership Plan (“ESOP”) are treated as outstanding in computing earnings per share. Shares issued to the ESOP but pledged as collateral for loans obtained to provide funds to acquire the shares are not treated as outstanding in computing earnings per share. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential dilutive common shares are determined using the treasury stock method and include incremental shares issuable upon the exercise of stock options and other share-based compensation awards. The Company excludes from the diluted EPS calculation anti-dilutive options, because the exercise price of the options was greater than the average market price of the common shares. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers”. Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Adoption of the amendments to the revenue recognition principles, did not materially change our accounting policies. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on AFS securities, are reported as components of comprehensive income as a separate statement in the Consolidated Statements of Comprehensive Income. Additionally, the Company discloses accumulated other comprehensive income (loss) as a separate component in the equity section of the balance sheet. |
Recent Accounting Pronouncements | ASU 2016-13 – Financial Instruments – Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaced the existing “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, applies to (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, HTM securities, loan commitments, and financial guarantees. Credit losses relating to AFS debt securities will be recorded through an allowance for credit losses. The ASU also simplifies the accounting model for Purchased Credit Impaired (“PCI”) debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). In December 2019, the FASB issued ASU No 2019-10, Financial Instruments - Credit Losses (Topic 326). This update amends the effective date of ASU 2016-13 for certain entities, including smaller reporting companies until fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods. Early adoption was permitted. The FASB has issued other ASUs that clarify items related to ASU 2016-13. The Company adopted this guidance effective January 1, 2022. The Company's estimates are derived using one-year reasonable and supportable economic forecasts with subsequent one-year reversion to the historical mean loss rates. For loans that share similar risk characteristics and are collectively assessed, the Company uses a probability of default/ loss given default cash flow method to determine the expected losses at the loan level. Loans that do not share similar risk characteristics are evaluated on an individual basis. Based on forecasted economic conditions and portfolio balances as of January 1, 2022, we recognized an increase to the opening allowance for credit losses in the range of $2.5 million. The increase is primarily related to the change in methodology from estimating losses incurred as of the balance sheet date to estimating lifetime credit losses required by the CECL standard. The impact of adoption was not significant to the Bank's regulatory capital. The Bank did not elect to phase-in, over a three-year period, the standard's initial impact on regulatory capital as permitted by the regulatory transition rules. ASU 2019-05 - Financial Instruments-Credit Losses (Topic 326) . In May 2019, the FASB issued ASU No. 2019-05. This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to HTM debt securities. Entities are required to make this election on an instrument-by-instrument basis. The Company adopted ASU 2019-05 concurrently upon adoption of ASU 2016-13. The adoption of CECL did not have a material effect on available-for-sale securities, which are predominantly composed of mortgage-backed securities issued by government sponsored entities and U.S. agencies and U.S. government obligations. Pending adoption ASU 2020-04 - Reference Rate Reform (Topic 848) . In March 2020, the FASB issued guidance to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments are effective as of March 12, 2020 through December 31, 2024 - as deferred by ASU 2022-06. The Company does not expect these amendments to have a material effect on its Consolidated Financial Statements. ASU Update 2022-02 – Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Impact of the Adoption of Accounting Standards Update | The following table shows the impact of the Company's adoption of ASC 326: January 1, 2022 (dollars in thousands) As Reported Under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption Portfolio Loans: Commercial real estate $ 1,113,793 $ 1,115,485 $ (1,692) Residential first mortgages 92,710 91,120 1,590 Residential rentals 194,911 195,035 (124) Construction and land development 35,502 35,590 (88) Home equity and second mortgages 25,661 25,638 23 Commercial loans 50,512 50,574 (62) Consumer loans 3,015 3,002 13 Commercial equipment 62,706 62,499 207 Gross portfolio loans 1,578,810 1,578,943 (133) Adjustments: Net deferred costs — (133) 133 Allowance for credit losses (20,913) (18,417) (2,496) Net Portfolio Loans 1,557,897 1,560,393 (2,496) U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans 26,398 27,276 (878) Net deferred fees — (878) 878 Net U.S. SBA PPP Loans 26,398 26,398 — Total Net Loans $ 1,584,295 $ 1,586,791 $ (2,496) Liabilities: Reserve for Unfunded Commitments $ 268 $ 51 $ 217 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Values of Investment Securities | Amortized cost and fair values of investment securities at December 31, 2022 and December 31, 2021 are as follows: December 31, 2022 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value AFS Securities Asset-backed securities issued by GSEs and U.S. Agencies Residential mortgage-backed securities ("MBS") $ 126,861 $ 12 $ 13,203 $ 113,670 Residential collateralized mortgage obligations ("CMOs") 175,905 8 16,500 159,413 U.S. Agency 14,658 — 2,302 12,356 Asset-backed securities ("ABSs") issued by Others: Residential CMOs 12,593 13 400 12,206 Student loan trust ABSs 49,566 39 2,293 47,312 Municipal bonds 99,766 — 20,148 79,618 Corporate bonds 4,863 — 459 4,404 U.S. government obligations 36,813 1 3,047 33,767 Total AFS Securities $ 521,025 $ 73 $ 58,352 $ 462,746 Equity securities carried at fair value through income CRA investment fund $ 4,286 $ — $ — $ 4,286 Non-marketable equity securities Other equity securities $ 207 $ — $ — $ 207 Total Investment Securities $ 525,518 $ 73 $ 58,352 $ 467,239 December 31, 2021 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value AFS Securities Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 121,125 $ 1,057 $ 2,266 $ 119,916 Residential CMOs 198,780 710 2,367 197,123 U.S. Agency 14,433 11 140 14,304 Asset-backed securities issued by Others: Residential CMOs 220 5 4 221 Student loan trust ABSs 56,422 438 286 56,574 Municipal bonds 92,556 1,169 884 92,841 U.S. government obligations 16,942 — 82 16,860 Total AFS Securities $ 500,478 $ 3,390 $ 6,029 $ 497,839 Equity securities carried at fair value through income CRA investment fund $ 4,772 $ — $ — $ 4,772 Non-marketable equity securities Other equity securities $ 207 $ — $ — $ 207 Total Investment Securities $ 505,457 $ 3,390 $ 6,029 $ 502,818 |
Schedule of Unrealized Losses and Estimated Fair Value | Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at December 31, 2022 and 2021 were as follows: December 31, 2022 Less Than 12 Months More Than 12 Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 24,688 $ 1,493 $ 259,127 $ 30,512 $ 283,815 $ 32,005 Residential CMOs 7,469 381 138 19 7,607 400 Student Loan Trust ABSs 1,950 1 42,170 2,292 44,120 2,293 Municipal bonds 6,695 796 72,923 19,352 79,618 20,148 Corporate bonds 4,404 459 — — 4,404 459 U.S. government obligations 18,764 1,137 13,041 1,910 31,805 3,047 $ 63,970 $ 4,267 $ 387,399 $ 54,085 $ 451,369 $ 58,352 December 31, 2021 Less Than 12 Months More Than 12 Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 205,891 $ 3,997 $ 41,327 $ 776 $ 247,218 $ 4,773 Residential CMOs — — 57 4 57 4 Student Loan Trust ABSs 21,640 281 2,226 5 23,866 286 Municipal bonds 47,314 776 6,696 108 54,010 884 U.S. government obligations 14,860 82 1,999 — 16,859 82 $ 289,705 $ 5,136 $ 52,305 $ 893 $ 342,010 $ 6,029 |
Schedule of Amortized Cost and Fair Values of Debt Securities | The amortized cost and estimated fair value of debt securities at December 31, 2022, and December 31, 2021 by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call premiums or prepayment penalties. December 31, 2022 December 31, 2021 (dollars in thousands) Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Within one year $ 35,441 $ 31,477 $ 36,859 $ 36,665 Over one year through five years 136,449 121,186 121,308 120,668 Over five years through ten years 228,997 203,383 191,166 190,158 After ten years 120,138 106,700 151,145 150,348 Total AFS securities $ 521,025 $ 462,746 $ 500,478 $ 497,839 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | Portfolio loans, net of deferred costs and fees, are summarized by type as follows at December 31, 2022: December 31, 2022 (dollars in thousands) Total % of Total Loans Portfolio Loans: Commercial real estate $ 1,232,826 67.69 % Residential first mortgages 79,872 4.39 % Residential rentals 338,292 18.58 % Construction and land development 17,259 0.95 % Home equity and second mortgages 25,602 1.41 % Commercial loans 42,055 2.31 % Consumer loans 6,272 0.34 % Commercial equipment 78,890 4.33 % Total portfolio loans (1) 1,821,068 100.00 % Less: Allowance for Credit Losses (22,890) (1.26) % Total net portfolio loans 1,798,178 U.S. SBA PPP loans (1) 339 Total net loans 1,798,517 Portfolio loans are summarized by type as follows at December 31, 2021: Portfolio Loans: December 31, 2021 Commercial real estate $ 1,115,485 70.66 % Residential first mortgages 91,120 5.77 % Residential rentals 195,035 12.35 % Construction and land development 35,590 2.25 % Home equity and second mortgages 25,638 1.62 % Commercial loans 50,574 3.20 % Consumer loans 3,002 0.19 % Commercial equipment 62,499 3.96 % Gross portfolio loans (1) 1,578,943 100.00 % Adjustments: Net deferred costs (133) (0.01) % Allowance for loan losses (18,417) (1.17) % (18,550) Net portfolio loans 1,560,393 Gross U.S. SBA PPP loans (1) 27,276 Net deferred fees (878) Net U.S. SBA PPP Loans 26,398 Total net loans $ 1,586,791 Total gross loans $ 1,606,219 |
Non-accrual loans | Non-accrual loans as of December 31, 2022 and 2021 were as follows: December 31, 2022 (dollars in thousands) Nonaccrual with No Allowance for Credit Losses Nonaccrual with Allowance for Credit Losses Total Nonaccrual Loans Commercial real estate $ 4,521 $ 81 $ 4,602 Residential rentals 1,142 — 1,142 Home equity and second mortgages 206 — 206 Commercial equipment 137 28 165 Total $ 6,006 $ 109 $ 6,115 Interest Income on Nonaccrual Loans $ 121 $ — $ 121 December 31, 2022 (dollars in thousands) Non- accrual Delinquent Loans Non-accrual Current Loans Total Non-accrual Loans Commercial real estate $ — $ 4,602 $ 4,602 Residential rentals 449 693 1,142 Home equity and second mortgages 206 — 206 Commercial equipment — 165 165 $ 655 $ 5,460 $ 6,115 December 31, 2021 (dollars in thousands) Non- accrual Delinquent Loans Non-accrual Current Loans Total Non-accrual Loans Commercial real estate $ — $ 4,890 $ 4,890 Residential first mortgages 450 — 450 Residential rentals 252 690 942 Home equity and second mortgages 202 399 601 Commercial equipment — 691 691 U.S. SBA PPP loans 57 — 57 $ 961 $ 6,670 $ 7,631 The following table presents the amortized cost basis of collateral-dependent loans by class of loans. Collateral Dependent Loans December 31, 2022 (dollars in thousands) Business/Other Assets Real Estate Commercial real estate $ — $ 4,601 Residential rentals — 1,142 Home equity and second mortgages — 206 Commercial equipment 595 — Total $ 595 $ 5,949 |
Past Due Financing Receivables | December 31, 2022 (dollars in thousands) 31-60 DPD 61-89 DPD** 90 DPD and Still Accruing 90 DPD and Not Accruing Total Past Due Current Non-Accrual Loans Current Accrual Loans Total Loans Commercial real estate $ 147 $ — $ — $ — $ 147 $ 4,602 $ 1,228,077 $ 1,232,826 Residential first mortgages — — — — — — 79,872 79,872 Residential rentals — 177 — 272 449 693 337,150 338,292 Construction and land dev. — — — — — — 17,259 17,259 Home equity and second mtg. 53 160 — 116 329 25,273 25,602 Commercial loans — — — — — — 42,055 42,055 Consumer loans 21 35 50 — 106 — 6,166 6,272 Commercial equipment 11 — — — 11 165 78,714 78,890 U.S. SBA PPP loans — — — — — — 339 339 Total portfolio loans $ 232 $ 372 $ 50 $ 388 $ 1,042 $ 5,460 $ 1,814,905 $ 1,821,407 ** Includes two loans totaling $0.3 million that are on non-accrual status An analysis of past due loans as of December 31, 2021 follows: December 31, 2021 (dollars in thousands) 31-60 Days 61-89 Days 90 or Greater Days Total Past Due PCI Loans Current Total Loan Receivables Commercial real estate $ — $ — $ — $ — $ 1,116 $ 1,114,369 $ 1,115,485 Residential first mortgages — 277 450 727 — 90,393 91,120 Residential rentals — 42 252 294 — 194,741 195,035 Construction and land dev. — — — — — 35,590 35,590 Home equity and second mtg. 200 — 202 402 — 25,236 25,638 Commercial loans — — — — — 50,574 50,574 Consumer loans — — — — — 3,002 3,002 Commercial equipment — — — — — 62,499 62,499 Total portfolio loans $ 200 $ 319 $ 904 $ 1,423 $ 1,116 $ 1,576,404 $ 1,578,943 U.S. SBA PPP loans $ 9 $ 40 $ 57 $ 106 $ — $ 27,170 $ 27,276 |
Allowance for Credit Losses on Financing Receivables | The following tables detail activity in the ACL at and for the years ended December 31, 2022 and 2021, respectively. An allocation of the allowance to one category of loans does not prevent the Company from using that allowance to absorb losses in a different category. Year Ended December 31, 2022 (dollars in thousands) Beginning Balance Impact of ASC 326 Adoption Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 13,095 $ 3,734 $ (280) $ 16 $ 1,085 $ 17,650 Residential first mortgages 1,002 (679) (111) 14 (19) 207 Residential rentals 2,175 (586) — — 1,472 3,061 Construction and land development 260 (82) — — (18) 160 Home equity and second mortgages 274 (86) — 1 (63) 126 Commercial loans 582 (290) (99) 2 (5) 190 Consumer loans 58 2 (49) — 143 154 Commercial equipment 971 483 (29) 75 (158) 1,342 Total $ 18,417 $ 2,496 $ (568) $ 108 $ 2,437 $ 22,890 Year Ended December 31, 2021 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 13,744 $ (1,920) $ 6 $ 1,265 $ 13,095 Residential first mortgages 1,305 (142) — (161) 1,002 Residential rentals 1,413 (46) — 808 2,175 Construction and land development 401 — — (141) 260 Home equity and second mortgages 261 — 5 8 274 Commercial loans 1,222 (76) 543 (1,107) 582 Consumer loans 20 — — 38 58 Commercial equipment 1,058 (34) 71 (124) 971 Total $ 19,424 $ (2,218) $ 625 $ 586 $ 18,417 ** There is no allowance for loan loss on the PCI or the SBA PPP portfolios. A more detailed rollforward schedule will be presented if an allowance is required. |
Credit Quality Indicators | Credit quality indicators as of December 31, 2022 were as follows: Credit Risk Profile by Internally Assigned Grade The risk category of loans by class of loans is as follows: Term Loans by Origination Year (dollars in thousands) Prior 2018 2019 2020 2021 2022 Revolving Loans Total Commercial Real Estate Pass $ 329,575 $ 73,742 $ 107,264 $ 184,263 $ 272,567 $ 256,622 $ — $ 1,224,033 Special Mention — 4,191 — — — — — 4,191 Substandard 792 — 2,967 — 843 — — 4,602 Total $ 330,367 $ 77,933 $ 110,231 $ 184,263 $ 273,410 $ 256,622 $ — $ 1,232,826 Residential Rentals Pass $ 44,257 $ 4,429 $ 20,690 $ 48,237 $ 65,889 $ 153,648 $ — $ 337,150 Special Mention — — — — — — — — Substandard 1,142 — — — — — — 1,142 Total $ 45,399 $ 4,429 $ 20,690 $ 48,237 $ 65,889 $ 153,648 $ — $ 338,292 Construction and Land Development Pass $ 2,355 $ 7,788 $ 4,255 $ 729 $ 2,020 $ 112 $ — $ 17,259 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 2,355 $ 7,788 $ 4,255 $ 729 $ 2,020 $ 112 $ — $ 17,259 Commercial Loans Pass $ 23,225 $ 4,298 $ 2,463 $ 1,872 $ 6,420 $ 3,777 $ — $ 42,055 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 23,225 $ 4,298 $ 2,463 $ 1,872 $ 6,420 $ 3,777 $ — $ 42,055 Commercial Equipment Pass $ 8,206 $ 4,411 $ 14,329 $ 7,346 $ 12,948 $ 31,315 $ — $ 78,555 Special Mention — 170 — — — — — 170 Substandard — — 137 — — 28 — 165 Total $ 8,206 $ 4,581 $ 14,466 $ 7,346 $ 12,948 $ 31,343 $ — $ 78,890 Total loans by risk category $ 409,552 $ 99,029 $ 152,105 $ 242,447 $ 360,687 $ 445,502 $ — $ 1,709,322 Loans evaluated by performance category are as follows: Term Loans by Origination Year (dollars in thousands) Prior 2018 2019 2020 2021 2022 Revolving Loans Total Residential First Mortgages Performing $ 37,428 $ 3,584 $ 19,411 $ 8,523 $ 5,235 $ 5,691 $ — $ 79,872 Non-performing — — — — — — — — Total $ 37,428 $ 3,584 $ 19,411 $ 8,523 $ 5,235 $ 5,691 $ — $ 79,872 Home Equity and Second Mortgages Performing $ 14,319 $ 1,622 $ 1,041 $ 1,441 $ 3,812 $ 3,161 $ — $ 25,396 Non-performing 206 — — — — — — 206 Total $ 14,525 $ 1,622 $ 1,041 $ 1,441 $ 3,812 $ 3,161 $ — $ 25,602 Consumer Loans Performing $ 49 $ 2 $ 96 $ 118 $ 618 $ 881 $ 4,508 $ 6,272 Non-performing — — — — — — — — Total $ 49 $ 2 $ 96 $ 118 $ 618 $ 881 $ 4,508 $ 6,272 U.S. SBA PPP Loans Performing $ — $ — $ — $ — $ 339 $ — $ — $ 339 Non-performing — — — — — — — — Total $ — $ — $ — $ — $ 339 $ — $ — $ 339 Total loans evaluated by performing status $ 52,002 $ 5,208 $ 20,548 $ 10,082 $ 10,004 $ 9,733 $ 4,508 $ 112,085 Total Recorded Investment $ 461,554 $ 104,237 $ 172,653 $ 252,529 $ 370,691 $ 455,235 $ 4,508 $ 1,821,407 Credit Quality Indicators Credit quality indicators as of December 31, 2021 were as follows: Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Commercial Real Estate Construction and Land Development Residential Rentals Commercial Loans Commercial Equipment Total Commercial Portfolios 12/31/2021 12/31/2021 12/31/2021 12/31/2021 12/31/2021 12/31/2021 Unrated $ — $ — $ — $ — $ — $ — Pass 1,111,857 35,590 194,093 50,574 62,326 1,454,440 Special mention — — — — — — Substandard 3,628 — 942 — 173 4,743 Doubtful — — — — — — Loss — — — — — — Total $ 1,115,485 $ 35,590 $ 195,035 $ 50,574 $ 62,499 $ 1,459,183 (dollars in thousands) Non-Commercial Portfolios ** U.S. SBA PPP Loans Total All Portfolios 12/31/2021 12/31/2021 12/31/2021 Unrated $ 100,403 $ 27,276 $ 127,679 Pass 18,889 — 1,473,329 Special mention — — — Substandard 468 — 5,211 Doubtful — — — Loss — — — Total $ 119,760 $ 27,276 $ 1,606,219 ** Non-commercial portfolios are generally evaluated based on payment activity but may be risk graded if part of a larger commercial relationship or are credit impaired (e.g., non-accrual loans, TDRs). Credit Risk Profile Based on Payment Activity (dollars in thousands) Residential First Mortgages Home Equity and Second Mortgages Consumer Loans 12/31/2021 12/31/2021 12/31/2021 Performing $ 90,670 $ 25,436 $ 3,002 Nonperforming 450 202 — Total $ 91,120 $ 25,638 $ 3,002 |
TDRs, Included in Impaired Loans Schedule | TDRs, included in the impaired loan schedules above, as of December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 (dollars in thousands) Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial real estate — $ — — $ — Commercial equipment 2 457 1 447 Total TDRs 2 $ 457 1 $ 447 Less: TDRs included in non-accrual loans 1 28 — — Total accrual TDR loans 1 $ 429 1 $ 447 |
Impaired Loans, Including TDRs | Impaired loans, including TDRs, at December 31, 2021 were as follows: December 31, 2021 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment with No Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance YTD Average Recorded Investment YTD Interest Income Recognized Commercial real estate $ 4,994 $ 4,797 $ 93 $ 4,890 $ 93 $ 4,866 $ 254 Residential first mortgages 879 866 — 866 — 874 32 Residential rentals 982 942 — 942 — 959 48 Home equity and second mtg. 626 601 — 601 — 604 14 Commercial equipment 1,200 1,022 173 1,195 173 2,184 99 Total $ 8,681 $ 8,228 $ 266 $ 8,494 $ 266 $ 9,487 $ 447 |
Loan Receivable and Allowance Balances Disaggregated | The following table details loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at December 31, 2021. December 31, 2021 (dollars in thousands) Ending balance: Ending balance: Purchase Credit Impaired Total Loan Receivables: Commercial real estate $ 4,890 $ 1,109,479 $ 1,116 $ 1,115,485 Residential first mortgages 866 90,254 — 91,120 Residential rentals 942 194,093 — 195,035 Construction and land development — 35,590 — 35,590 Home equity and second mortgages 601 25,037 — 25,638 Commercial loans — 50,574 — 50,574 Consumer loans — 3,002 — 3,002 Commercial equipment 1,195 61,304 — 62,499 $ 8,494 $ 1,569,333 $ 1,116 $ 1,578,943 Allowance for credit losses: Commercial real estate $ 93 $ 13,002 $ — $ 13,095 Residential first mortgages — 1,002 — 1,002 Residential rentals — 2,175 — 2,175 Construction and land development — 260 — 260 Home equity and second mortgages — 274 — 274 Commercial loans — 582 — 582 Consumer loans — 58 — 58 Commercial equipment 173 798 — 971 $ 266 $ 18,151 $ — $ 18,417 |
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Table | (dollars in thousands) December 31, 2021 Accretable yield, beginning of period $ 342 Additions — Accretion (117) Reclassification from nonaccretable difference 43 Other changes, net 55 Accretable yield, end of period $ 323 |
Summary Of Acquired And Non Acquired Loans Table | The following is a summary of acquired and non-acquired loans as of December 31, 2021: BY ACQUIRED AND NON-ACQUIRED December 31, 2021 % Acquired loans - performing $ 41,066 2.56 % Acquired loans - purchase credit impaired ("PCI") 1,116 0.07 % Total acquired loans 42,182 2.63 % Non-acquired loans** 1,536,761 95.68 % U.S. SBA PPP loans 27,276 1.70 % Gross loans 1,606,219 Net deferred costs (fees) (1,011) (0.06) % Total loans, net of deferred costs $ 1,605,208 ** Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments. |
Related Party Loans | Activity in loans outstanding to executive officers and directors and their related interests are summarized as follows: (dollars in thousands) At and For the Years Ended December 31, 2022 2021 Balance, beginning of period $ 26,267 $ 16,367 Loans and additions 13,629 2,218 Change in Directors' status (4,053) 23,752 Repayments (6,991) (16,070) Balance, end of period $ 28,852 $ 26,267 |
Goodwill And Other Intangible_2
Goodwill And Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Goodwill and other intangible assets are presented in the tables below. (dollars in thousands) As of December 31, 2022 As of December 31, 2021 Goodwill $ 10,835 $ 10,835 |
Schedule of acquired intangible assets | As of December 31, 2022 As of December 31, 2021 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Intangible Asset Gross Carrying Amount Accumulated Amortization Net Intangible Asset Core deposit intangibles $ 3,590 $ (2,956) $ 634 $ 3,590 $ (2,558) $ 1,032 |
Schedule of estimated amortization expense | The estimated future amortization expense for intangible assets remaining as of December 31, 2022 is as follows: (dollars in thousands) 2023 $ 302 2024 205 2025 109 2026 18 $ 634 |
Premises and Equipment And Le_2
Premises and Equipment And Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | A summary of the cost and accumulated depreciation of premises and equipment at December 31, 2022 and 2021 follows: (dollars in thousands) December 31, 2022 2021 Land $ 4,957 $ 4,957 Building and improvements 25,762 25,087 Furniture and equipment 11,000 10,150 Automobiles 121 168 Total cost 41,840 40,362 Less accumulated depreciation (20,532) (18,935) Premises and equipment, net $ 21,308 $ 21,427 |
Lease, Cost | The table below details the Right of Use asset (net of accumulated amortization), lease liability and other information related to the Company's operating leases: (dollars in thousands) December 31, 2022 December 31, 2021 Operating Leases Operating lease right of use asset, net $ 5,920 $ 6,124 Operating lease liability $ 6,202 $ 6,343 Weighted average remaining lease term 15.7 years 17.2 years Weighted average discount rate 3.51 % 3.51 % Remaining lease term - min 4.5 years 6.3 years Remaining lease term - max 22.0 years 23.0 years The table below details the Company's lease cost, which is included in occupancy expense in the Consolidated Statements of Income. (dollars in thousands) December 31, 2022 December 31, 2021 Operating lease cost $ 611 $ 635 Cash paid for lease liability $ 546 $ 617 |
Schedule of operating lease liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: (dollars in thousands) As of December 31, 2022 Lease payments due: Within one year $ 574 After one but within two years 585 After two but within three years 622 After three but within four years 639 After four but within five years 609 After five years 5,236 Total undiscounted cash flows 8,265 Discount on cash flows (2,063) Total lease liability $ 6,202 Future minimum rental commitments under non-cancellable operating leases are as follows at December 31, 2022: (dollar in thousands) 2023 $ 574 2024 585 2025 622 2026 639 2027 609 Thereafter 5,236 Total $ 8,265 |
Other Real Estate Owned ("ORE_2
Other Real Estate Owned ("OREO") (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Analysis of OREO activity | OREO assets are presented net of the valuation allowance. The Company considers OREO as classified assets for regulatory and financial reporting. OREO carrying amounts reflect management’s estimate of the realizable value of these properties. An analysis of the activity follows. (dollars in thousands) Years Ended December 31, 2022 2021 Balance at beginning of year $ — $ 3,109 Additions of underlying property — — Disposals of underlying property — (1,722) Valuation allowance — (1,387) Balance at end of period $ — $ — |
Expenses applicable to OREO assets | Expenses applicable to OREO assets included the following. (dollars in thousands) Years Ended December 31, 2022 2021 Valuation allowance $ — $ 1,387 Losses (gains) on dispositions — (17) Operating expenses 6 86 $ 6 $ 1,456 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits, by Type [Abstract] | |
Schedule of Deposits | Deposits consist of the following: (dollars in thousands) December 31, 2022 2021 Noninterest-bearing demand $ 630,120 $ 445,778 Interest-bearing: Savings 124,533 119,767 Demand deposits 638,876 790,481 Money market deposits 347,872 372,717 Certificates of deposit 347,062 327,421 Total interest-bearing 1,458,343 1,610,386 Total Deposits $ 2,088,463 $ 2,056,164 |
Schedule of Deposits Maturities | At December 31, 2022 the scheduled contractual maturities of certificates of deposit are as follows: (dollars in thousands) December 31, 2022 Within one year $ 258,086 Year 2 54,937 Year 3 24,425 Year 4 5,999 Year 5 3,615 $ 347,062 |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule Related to the Classification of Debt Interest Rate | Rates and maturities on long-term advances and short-term borrowings were as follows: Fixed-Rate Fixed-Rate Convertible December 31, 2022 Highest rate 4.57 % n/a Lowest rate 4.57 % n/a Weighted average rate 4.57 % n/a Matures through 2023 n/a December 31, 2021 Highest rate 2.75 % 0.79% Lowest rate 1.00 % 0.79% Weighted average rate 2.26 % 0.79% Matures through 2036 2030 |
Schedule of Debt | Average rates of long-term debt and short-term borrowings were as follows: (dollars in thousands) At or for the Year Ended December 31, 2022 2021 Long-term debt Long-term debt outstanding at end of period $ — $ 12,231 Weighted average rate on outstanding long-term debt — % 0.82 % Maximum outstanding long-term debt of any month end 12,225 27,296 Average outstanding long-term debt 3,848 23,072 Approximate average rate paid on long-term debt 1.25 % 0.95 % Short-term borrowings Short-term borrowings outstanding at end of period $ 79,000 $ — Weighted average rate on short-term borrowings 4.57 % — % Maximum outstanding short-term borrowings at any month end 79,000 — Average outstanding short-term borrowings 12,696 — Approximate average rate paid on short-term borrowings 3.36 % — % |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Matters | The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table. Regulatory Capital and Ratios Regulatory Minimum Ratio + CCB (1) The Company The Bank (dollars in thousands) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Common equity $ 187,011 $ 208,133 $ 216,408 $ 236,561 Goodwill (10,835) (10,835) (10,835) (10,835) Core deposit intangible (net of deferred tax liability) (477) (766) (477) (766) AOCI (gains) losses 43,092 1,952 43,092 1,952 Common Equity Tier 1 Capital 218,791 198,484 248,188 226,912 TRUPs 12,000 12,000 — — Tier 1 Capital 230,791 210,484 248,188 226,912 Allowable reserve for credit losses and other Tier 2 adjustments 23,303 18,468 23,303 18,468 Subordinated notes 19,566 19,510 — — Tier 2 Capital $ 273,660 $ 248,462 $ 271,491 $ 245,380 Risk-Weighted Assets ("RWA") $ 1,943,516 $ 1,665,296 $ 1,941,922 $ 1,663,831 Average Assets ("AA") $ 2,404,643 $ 2,281,210 $ 2,403,268 $ 2,279,835 Common Tier 1 Capital to RWA 7.00% 11.26 % 11.92 % 12.78 % 13.64 % Tier 1 Capital to RWA 8.50 11.87 12.64 12.78 13.64 Tier 2 Capital to RWA 10.50 14.08 14.92 13.98 14.75 Tier 1 Capital to AA (Leverage) (2) n/a 9.60 9.23 10.33 9.95 _______________________________________ (1) The regulatory minimum capital ratio ("Min. Ratio") + the capital conservation buffer ("CCB"). (2) Tier 1 Capital to AA ("Leverage") has no capital conservation buffer defined. The prompt corrective action ("PCA") well capitalized is defined as 5.00%. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income "(AOCI)" (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2022 and 2021. Year Ended December 31, 2022 2021 (dollars in thousands) Net Unrealized Gains and Losses Net Unrealized Gains and Losses Beginning of period $ (1,952) $ 4,504 Other comprehensive income Other comprehensive losses, net of tax before reclassifications (41,140) (6,889) Amounts reclassified from accumulated other comprehensive gain — 433 Net other comprehensive loss (41,140) (6,456) End of period $ (43,092) $ (1,952) |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: (dollars in thousands) Years Ended December 31, 2022 2021 Net Income $ 28,317 $ 25,886 Average number of common shares outstanding 5,652,189 5,788,003 Dilutive effect of common stock equivalents 7,440 9,522 Average number of shares used to calculate diluted EPS 5,659,629 5,797,525 Anti-dilutive shares 528 — Earnings Per Common Share Basic $ 5.01 $ 4.47 Diluted $ 5.00 $ 4.47 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, 2022 2021 Current Federal $ 7,933 $ 5,500 State 2,077 2,065 10,010 7,565 Deferred Federal (274) 949 State (152) 202 (426) 1,151 Income tax expense $ 9,584 $ 8,716 |
Schedule of Effective Income Tax Rate Reconciliation | The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: 2022 2021 Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Expected income tax expense at federal tax rate $ 7,959 21.00 % $ 7,267 21.00 % State taxes net of federal benefit 1,645 4.34 % 1,631 4.71 % Nondeductible expenses 262 0.69 % 71 0.21 % Nontaxable income (437) (1.15 %) (411) (1.19 %) Other 155 0.41 % 158 0.46 % $ 9,584 25.29 % $ 8,716 25.19 % |
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax assets in the accompanying balance sheets include the following components: 2022 2021 Deferred tax assets Allowance for credit losses $ 5,657 $ 4,758 Deferred compensation 3,426 3,509 Lease liability 1,533 1,639 OREO valuation allowance & expenses 20 92 Unrealized loss on investment securities 15,321 684 Depreciation 277 159 Deferred fees — — Other 54 — 26,288 10,841 Deferred tax liabilities Fair value adjustments for acquired assets and liabilities 70 92 FHLB stock dividends 98 102 Unrealized gain on investment securities — — Right of use asset 1,463 1,582 Other — 32 1,631 1,808 $ 24,657 $ 9,033 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of the unvested restricted stock awards outstanding | The following tables summarize the unvested restricted stock, restricted stock unit, and performance stock unit awards outstanding at December 31, 2022 and 2021 respectively. Restricted Stock Restricted Stock Units Performance Stock Units Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2022 6,906 $ 32.81 27,652 $ 26.22 16,809 $ 23.61 Granted 1,683 38.48 12,163 38.66 3,128 40.48 Vested (4,016) 32.53 (13,293) 27.81 — — Cancelled (37) 33.52 (1,866) 26.23 (3,393) 24.60 Nonvested at December 31, 2022 4,536 $ 35.29 24,656 $ 31.50 16,544 $ 26.60 Restricted Stock Restricted Stock Units Performance Stock Units Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2021 14,130 $ 32.77 19,161 $ 24.06 8,482 $ 22.64 Granted — — 18,198 27.13 8,327 24.60 Vested (7,019) 34.61 (9,333) 23.61 — — Cancelled (205) 32.44 (374) 24.60 — — Nonvested at December 31, 2021 6,906 $ 32.81 27,652 $ 26.22 16,809 $ 23.61 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The tables below present the recorded amount of assets as of December 31, 2022 and December 31, 2021 measured at fair value on a recurring basis. (dollars in thousands) December 31, 2022 Description of Asset Fair Value Level 1 Level 2 Level 3 AFS securities Asset-backed securities issued by GSEs and U.S. Agencies MBS $ 113,670 $ — $ 113,670 $ — CMOs 159,413 — 159,413 — U.S. Agency 12,356 — 12,356 — Asset-backed securities issued by Others: Residential CMOs 12,206 — 12,206 — Student Loan Trust ABSs 47,312 — 47,312 — Municipal bonds 79,618 — 79,618 — Corporate bonds 4,404 — 4,404 — U.S. government obligations 33,767 — 33,767 — Total AFS securities $ 462,746 $ — $ 462,746 $ — Equity securities carried at fair value through income CRA investment fund $ 4,286 $ — $ 4,286 $ — Non-marketable equity securities Other equity securities $ 207 $ — $ 207 $ — (dollars in thousands) December 31, 2021 Description of Asset Fair Value Level 1 Level 2 Level 3 AFS securities Asset-backed securities issued by GSEs and U.S. Agencies MBS $ 119,916 $ — $ 119,916 $ — CMOs 197,123 — 197,123 — U.S. Agency 14,304 — 14,304 — Asset-backed securities issued by Others: Residential CMOs 221 — 221 — Student Loan Trust ABSs 56,574 — 56,574 — Municipal bonds 92,841 — 92,841 — U.S. government obligations 16,860 — 16,860 — Total AFS securities $ 497,839 $ — $ 497,839 $ — Equity securities carried at fair value through income CRA investment fund $ 4,772 $ — $ 4,772 $ — Non-marketable equity securities Other equity securities $ 207 $ — $ 207 $ — Mortgage banking derivatives Interest rate lock commitments $ 28 $ — $ — $ 28 |
Unobservable Inputs Used In Level 3 Fair Value Measurements | The following tables provide information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2022 and December 31, 2021. There were no Level 3 recurring assets or liabilities at December 31, 2022. December 31, 2021 (dollars in thousands) Description of Asset Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Interest rate lock commitments $ 28 Freddie Mac pricing of loans with comparable terms Pull-through rate 0% - 100% - 75% |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Fair Value, by Balance Sheet Grouping | The Company’s estimated fair values of financial instruments are presented in the following tables. December 31, 2022 Carrying Amount Fair Value Fair Value Measurements Description of Asset (dollars in thousands) Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 462,746 $ 462,746 $ — $ 462,746 $ — Equity securities carried at fair value through income 4,286 4,286 — 4,286 — Non-marketable equity securities in other financial institutions 207 207 — 207 — FHLB Stock 4,584 4,584 — 4,584 — Net loans receivable 1,798,517 1,743,574 — — 1,743,574 Accrued Interest Receivable 8,335 8,335 — 8,335 — Investment in BOLI 39,802 39,802 — 39,802 — Liabilities Savings, NOW and money market accounts $ 1,741,401 $ 1,741,401 $ — $ 1,741,401 $ — Time deposits 347,062 346,261 — 346,261 — Short-term borrowings 79,000 79,087 — 79,087 — TRUPs 12,000 10,296 — 10,296 — Subordinated notes 19,566 18,745 — 18,745 — December 31, 2021 Carrying Amount Fair Value Fair Value Measurements Description of Asset (dollars in thousands) Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 497,839 $ 497,839 $ — $ 497,839 $ — Equity securities carried at fair value through income 4,772 4,772 — 4,772 — Non-marketable equity securities in other financial institutions 207 207 — 207 — FHLB Stock 1,472 1,472 — 1,472 — Net loans receivable 1,586,791 1,578,032 — — 1,578,032 Accrued Interest Receivable 5,588 5,588 — 5,588 — Investment in BOLI 38,932 38,932 — 38,932 — Mortgage banking derivatives 28 28 — — 28 Liabilities Savings, NOW and money market accounts $ 1,728,743 $ 1,728,743 $ — $ 1,728,743 $ — Time deposits 327,421 328,083 — 328,083 — Long-term debt 12,231 12,391 — 12,391 — TRUPs 12,000 11,589 — 11,589 — Subordinated notes 19,510 20,979 — 20,979 — |
Condensed Financial Statement_2
Condensed Financial Statements - Parent Company Only (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | Balance Sheets (dollars in thousands) December 31, 2022 2021 Assets Cash - noninterest bearing $ 2,433 $ 3,097 Investment in wholly-owned subsidiaries 216,780 236,933 Other assets 1,222 1,092 Total Assets $ 220,435 $ 241,122 Liabilities and Stockholders' Equity Current liabilities $ 1,486 $ 1,107 Guaranteed preferred beneficial interest in junior subordinated debentures 12,372 12,372 Subordinated notes - 4.75%, net of debt issuance costs 19,566 19,510 Total Liabilities 33,424 32,989 Stockholders' Equity Common stock 56 57 Additional paid in capital 97,986 96,896 Retained earnings 132,235 113,448 Accumulated other comprehensive loss (43,092) (1,952) Unearned ESOP shares (174) (316) Total Stockholders’ Equity 187,011 208,133 Total Liabilities and Stockholders’ Equity $ 220,435 $ 241,122 |
Schedule of Condensed Income Statement | Condensed Statements of Income (dollars in thousands) Years Ended December 31, 2022 2021 Interest and Dividend Income Dividends from subsidiary $ 10,000 $ 3,500 Interest income 28 28 Interest expense 1,497 1,305 Net Interest Income 8,531 2,223 Miscellaneous expenses (3,505) (2,531) Income before income taxes and equity in undistributed net income of subsidiary 5,026 (308) Federal and state income tax benefit 914 822 Equity in undistributed net income of subsidiary 22,377 25,372 Net Income $ 28,317 $ 25,886 |
Schedule of Condensed Cash Flow Statement | Condensed Statements of Cash Flows (dollars in thousands) Years Ended December 31, 2022 2021 Cash Flows from Operating Activities Net income $ 28,317 $ 25,886 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (22,377) (25,372) Amortization of debt issuance costs 56 (16) Stock based compensation 260 260 (Increase) decrease in other assets (140) 316 Decrease in deferred income tax benefit 7 15 Increase in current liabilities 379 5 Net Cash Provided by Operating Activities 6,502 1,094 Cash Flows from Investing Activities Net Cash Provided by Investing Activities — — Cash Flows from Financing Activities Dividends paid (3,753) (3,170) Net change in unearned ESOP shares 142 143 Repurchase of common stock (3,555) (7,046) Net Cash Used by Financing Activities (7,166) (10,073) Decrease in Cash (664) (8,979) Cash at Beginning of Year 3,097 12,076 Cash at End of Year $ 2,433 $ 3,097 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) branch operation_center loan_production_office loan | Dec. 31, 2021 USD ($) | Jan. 01, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Number of operation centers | operation_center | 2 | ||
Number of LPOs | loan_production_office | 4 | ||
Trading securities | $ 0 | $ 0 | |
Number of mortgage loans sold | loan | 9 | ||
PCD loans unpaid principal balance | $ 1,400,000 | ||
PCD loans purchased, carrying amount | 1,100,000 | ||
PCD loans discount | 8,000 | ||
Occupancy expense, depreciation of premises and equipment and other | $ 1,600,000 | 1,500,000 | |
Estimates for economic forecast, period (in years) | 1 year | ||
Reversion to historical mean loss rates, period (in years) | 1 year | ||
Interest rate lock commitments | |||
Property, Plant and Equipment [Line Items] | |||
Derivative asset | $ 0 | 28,000 | |
Net gain on mortgage related banking derivatives | 0 | 28,000 | |
Other Assets | Interest rate lock commitments | |||
Property, Plant and Equipment [Line Items] | |||
Derivative notional value | $ 0 | $ 1,200,000 | |
Maryland and Virginia | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches | branch | 12 | ||
Leonardtown, La Plata | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches | branch | 2 | ||
Minimum | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||
Property, Plant and Equipment [Line Items] | |||
Allowance for credit loss | $ (2,500,000) | ||
Building and Building Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 50 years | ||
Building and Building Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Furniture and Fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 15 years | ||
Furniture and Fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Automobiles | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Automobiles | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 4 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Adjustments for ASC 326) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||||
Total | $ 1,821,407 | $ 1,606,219 | ||
Net deferred costs (fees) | (1,011) | |||
Less: Allowance for Credit Losses | (22,890) | (18,417) | $ (19,424) | |
Total net portfolio loans | $ 1,584,295 | 1,586,791 | ||
Unfunded Loan Commitment | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 268 | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Property, Plant and Equipment [Line Items] | ||||
Less: Allowance for Credit Losses | (2,496) | |||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | ||||
Property, Plant and Equipment [Line Items] | ||||
Total net portfolio loans | 1,586,791 | |||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | Unfunded Loan Commitment | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 51 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Property, Plant and Equipment [Line Items] | ||||
Total net portfolio loans | (2,496) | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | Unfunded Loan Commitment | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 217 | |||
Portfolio Loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 1,821,407 | 1,578,810 | 1,578,943 | |
Net deferred costs (fees) | 0 | (133) | ||
Less: Allowance for Credit Losses | (22,890) | (20,913) | (18,417) | |
Total net portfolio loans | 1,798,178 | 1,557,897 | 1,560,393 | |
Portfolio Loans | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 1,578,943 | |||
Net deferred costs (fees) | (133) | |||
Less: Allowance for Credit Losses | (18,417) | |||
Total net portfolio loans | 1,560,393 | |||
Portfolio Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | (133) | |||
Net deferred costs (fees) | 133 | |||
Less: Allowance for Credit Losses | (2,496) | |||
Total net portfolio loans | (2,496) | |||
Commercial real estate | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 1,115,485 | |||
Less: Allowance for Credit Losses | (17,650) | (13,095) | (13,744) | |
Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | ||||
Property, Plant and Equipment [Line Items] | ||||
Less: Allowance for Credit Losses | (3,734) | |||
Commercial real estate | Portfolio Loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 1,232,826 | 1,113,793 | 1,115,485 | |
Commercial real estate | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 1,115,485 | |||
Commercial real estate | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | (1,692) | |||
Residential first mortgages | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 91,120 | |||
Less: Allowance for Credit Losses | (207) | (1,002) | (1,305) | |
Residential first mortgages | Cumulative Effect, Period of Adoption, Adjustment | ||||
Property, Plant and Equipment [Line Items] | ||||
Less: Allowance for Credit Losses | 679 | |||
Residential first mortgages | Portfolio Loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 79,872 | 92,710 | 91,120 | |
Residential first mortgages | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 91,120 | |||
Residential first mortgages | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 1,590 | |||
Residential rentals | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 195,035 | |||
Less: Allowance for Credit Losses | (3,061) | (2,175) | (1,413) | |
Residential rentals | Cumulative Effect, Period of Adoption, Adjustment | ||||
Property, Plant and Equipment [Line Items] | ||||
Less: Allowance for Credit Losses | 586 | |||
Residential rentals | Portfolio Loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 338,292 | 194,911 | 195,035 | |
Residential rentals | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 195,035 | |||
Residential rentals | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | (124) | |||
Construction and land development | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 35,590 | |||
Less: Allowance for Credit Losses | (160) | (260) | (401) | |
Construction and land development | Cumulative Effect, Period of Adoption, Adjustment | ||||
Property, Plant and Equipment [Line Items] | ||||
Less: Allowance for Credit Losses | 82 | |||
Construction and land development | Portfolio Loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 17,259 | 35,502 | 35,590 | |
Construction and land development | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 35,590 | |||
Construction and land development | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | (88) | |||
Home equity and second mortgages | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 25,638 | |||
Less: Allowance for Credit Losses | (126) | (274) | (261) | |
Home equity and second mortgages | Cumulative Effect, Period of Adoption, Adjustment | ||||
Property, Plant and Equipment [Line Items] | ||||
Less: Allowance for Credit Losses | 86 | |||
Home equity and second mortgages | Portfolio Loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 25,602 | 25,661 | 25,638 | |
Home equity and second mortgages | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 25,638 | |||
Home equity and second mortgages | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 23 | |||
Commercial loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 50,574 | |||
Less: Allowance for Credit Losses | (190) | (582) | (1,222) | |
Commercial loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Property, Plant and Equipment [Line Items] | ||||
Less: Allowance for Credit Losses | 290 | |||
Commercial loans | Portfolio Loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 42,055 | 50,512 | 50,574 | |
Commercial loans | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 50,574 | |||
Commercial loans | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | (62) | |||
Consumer loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 3,002 | |||
Less: Allowance for Credit Losses | (154) | (58) | (20) | |
Consumer loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Property, Plant and Equipment [Line Items] | ||||
Less: Allowance for Credit Losses | (2) | |||
Consumer loans | Portfolio Loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 6,272 | 3,015 | 3,002 | |
Consumer loans | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 3,002 | |||
Consumer loans | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 13 | |||
Commercial equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 62,499 | |||
Less: Allowance for Credit Losses | (1,342) | (971) | $ (1,058) | |
Commercial equipment | Cumulative Effect, Period of Adoption, Adjustment | ||||
Property, Plant and Equipment [Line Items] | ||||
Less: Allowance for Credit Losses | (483) | |||
Commercial equipment | Portfolio Loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 78,890 | 62,706 | 62,499 | |
Commercial equipment | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 62,499 | |||
Commercial equipment | Portfolio Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 207 | |||
U.S. SBA PPP loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 27,276 | |||
U.S. SBA PPP loans | Non Portfolio Loans | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 339 | 26,398 | 27,276 | |
Net deferred costs (fees) | 0 | (878) | ||
Total net portfolio loans | $ 1,798,517 | 26,398 | $ 26,398 | |
U.S. SBA PPP loans | Non Portfolio Loans | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2019-11 | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 27,276 | |||
Net deferred costs (fees) | (878) | |||
Total net portfolio loans | 26,398 | |||
U.S. SBA PPP loans | Non Portfolio Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | (878) | |||
Net deferred costs (fees) | 878 | |||
Total net portfolio loans | $ 0 |
Investment Securities (Fair Val
Investment Securities (Fair Value to Amortized Cost Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 521,025 | $ 500,478 |
Gross Unrealized Gains | 73 | 3,390 |
Gross Unrealized Losses | 58,352 | 6,029 |
Estimated Fair Value | 462,746 | 497,839 |
CRA investment fund | 4,286 | 4,772 |
Other equity securities | 207 | 207 |
Total investment securities, Amortized Cost | 525,518 | 505,457 |
Total investment securities, Gross Unrealized Gains | 73 | 3,390 |
Total investment securities, Gross Unrealized Losses | 58,352 | 6,029 |
Total investment securities, Estimated Fair Value | 467,239 | 502,818 |
Residential mortgage-backed securities ("MBS") | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 126,861 | 121,125 |
Gross Unrealized Gains | 12 | 1,057 |
Gross Unrealized Losses | 13,203 | 2,266 |
Estimated Fair Value | 113,670 | 119,916 |
Residential collateralized mortgage obligations ("CMOs") | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 175,905 | 198,780 |
Gross Unrealized Gains | 8 | 710 |
Gross Unrealized Losses | 16,500 | 2,367 |
Estimated Fair Value | 159,413 | 197,123 |
U.S. Agency | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 14,658 | 14,433 |
Gross Unrealized Gains | 0 | 11 |
Gross Unrealized Losses | 2,302 | 140 |
Estimated Fair Value | 12,356 | 14,304 |
Residential CMOs | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 12,593 | 220 |
Gross Unrealized Gains | 13 | 5 |
Gross Unrealized Losses | 400 | 4 |
Estimated Fair Value | 12,206 | 221 |
Student loan trust ABSs | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 49,566 | 56,422 |
Gross Unrealized Gains | 39 | 438 |
Gross Unrealized Losses | 2,293 | 286 |
Estimated Fair Value | 47,312 | 56,574 |
Municipal bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 99,766 | 92,556 |
Gross Unrealized Gains | 0 | 1,169 |
Gross Unrealized Losses | 20,148 | 884 |
Estimated Fair Value | 79,618 | 92,841 |
Corporate bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 4,863 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 459 | |
Estimated Fair Value | 4,404 | |
U.S. government obligations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 36,813 | 16,942 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 3,047 | 82 |
Estimated Fair Value | 33,767 | 16,860 |
CRA investment fund | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
CRA investment fund | 4,286 | 4,772 |
Other equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other equity securities | $ 207 | $ 207 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Accrued interest receivable ("AIR") | $ 1,800 | $ 1,100 |
Asset backed securities pledged to secure certain deposits | 56,400 | 50,900 |
Gain on sale of AFS securities | 0 | 600 |
Securities available for sale ("AFS"), at fair value | $ 462,746 | 497,839 |
Number of positions | security | 296 | |
Available for Sale Securities Sold | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities available for sale ("AFS"), at fair value | $ 11,900 |
Investment Securities (Schedule
Investment Securities (Schedule of Unrealized Loss on Investments, AFS) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less than 12 months, fair value | $ 63,970 | $ 289,705 |
More than 12 months, fair value | 387,399 | 52,305 |
Fair value | 451,369 | 342,010 |
Unrealized Losses | ||
Less than 12 months, unrealized loss | 4,267 | 5,136 |
More than 12 months, unrealized loss | 54,085 | 893 |
Unrealized loss | 58,352 | 6,029 |
Asset-backed securities issued by GSEs and U.S. Agencies | ||
Fair Value | ||
Less than 12 months, fair value | 24,688 | 205,891 |
More than 12 months, fair value | 259,127 | 41,327 |
Fair value | 283,815 | 247,218 |
Unrealized Losses | ||
Less than 12 months, unrealized loss | 1,493 | 3,997 |
More than 12 months, unrealized loss | 30,512 | 776 |
Unrealized loss | 32,005 | 4,773 |
Residential CMOs | ||
Fair Value | ||
Less than 12 months, fair value | 7,469 | 0 |
More than 12 months, fair value | 138 | 57 |
Fair value | 7,607 | 57 |
Unrealized Losses | ||
Less than 12 months, unrealized loss | 381 | 0 |
More than 12 months, unrealized loss | 19 | 4 |
Unrealized loss | 400 | 4 |
Student loan trust ABSs | ||
Fair Value | ||
Less than 12 months, fair value | 1,950 | 21,640 |
More than 12 months, fair value | 42,170 | 2,226 |
Fair value | 44,120 | 23,866 |
Unrealized Losses | ||
Less than 12 months, unrealized loss | 1 | 281 |
More than 12 months, unrealized loss | 2,292 | 5 |
Unrealized loss | 2,293 | 286 |
Municipal bonds | ||
Fair Value | ||
Less than 12 months, fair value | 6,695 | 47,314 |
More than 12 months, fair value | 72,923 | 6,696 |
Fair value | 79,618 | 54,010 |
Unrealized Losses | ||
Less than 12 months, unrealized loss | 796 | 776 |
More than 12 months, unrealized loss | 19,352 | 108 |
Unrealized loss | 20,148 | 884 |
Corporate bonds | ||
Fair Value | ||
Less than 12 months, fair value | 4,404 | |
More than 12 months, fair value | 0 | |
Fair value | 4,404 | |
Unrealized Losses | ||
Less than 12 months, unrealized loss | 459 | |
More than 12 months, unrealized loss | 0 | |
Unrealized loss | 459 | |
U.S. government obligations | ||
Fair Value | ||
Less than 12 months, fair value | 18,764 | 14,860 |
More than 12 months, fair value | 13,041 | 1,999 |
Fair value | 31,805 | 16,859 |
Unrealized Losses | ||
Less than 12 months, unrealized loss | 1,137 | 82 |
More than 12 months, unrealized loss | 1,910 | 0 |
Unrealized loss | $ 3,047 | $ 82 |
Investment Securities (Investme
Investment Securities (Investments Classified by Contractual Maturity Date) (Details) - Asset-backed securities issued by GSEs - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available for Sale, Amortized Cost [Abstract] | ||
Within one year | $ 35,441 | $ 36,859 |
Over one year through five years | 136,449 | 121,308 |
Over five years through ten years | 228,997 | 191,166 |
After ten years | 120,138 | 151,145 |
Total AFS securities | 521,025 | 500,478 |
Available for Sale, Estimated Fair Value [Abstract] | ||
Within one year | 31,477 | 36,665 |
Over one year through five years | 121,186 | 120,668 |
Over five years through ten years | 203,383 | 190,158 |
After ten years | 106,700 | 150,348 |
Total AFS securities | $ 462,746 | $ 497,839 |
Loans (Schedule of Accounts, No
Loans (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 1,606,219 | $ 1,821,407 | ||
Less: | ||||
Net deferred costs (fees) | (1,011) | |||
Less: Allowance for Credit Losses | (18,417) | (22,890) | $ (19,424) | |
Total net portfolio loans | 1,586,791 | $ 1,584,295 | ||
Accrued interest receivable | 5,588 | 8,335 | ||
Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 1,578,943 | 1,821,407 | 1,578,810 | |
Less: | ||||
Net deferred costs (fees) | $ (133) | 0 | ||
Net deferred costs (fees), percentage | (0.01%) | |||
Less: Allowance for Credit Losses | $ (18,417) | $ (22,890) | (20,913) | |
Allowance for loan losses, percentage | (1.17%) | (1.26%) | ||
Subtotal | $ (18,550) | |||
Total net portfolio loans | 1,560,393 | $ 1,798,178 | 1,557,897 | |
Portfolio Loans, Excluding US SBA PPP Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 1,578,943 | $ 1,821,068 | ||
Percentage status of loan in portfolio | 100% | 100% | ||
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 1,115,485 | |||
Less: | ||||
Less: Allowance for Credit Losses | (13,095) | $ (17,650) | (13,744) | |
Commercial real estate | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 1,115,485 | $ 1,232,826 | 1,113,793 | |
Percentage status of loan in portfolio | 70.66% | 67.69% | ||
Residential first mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 91,120 | |||
Less: | ||||
Less: Allowance for Credit Losses | (1,002) | $ (207) | (1,305) | |
Residential first mortgages | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 91,120 | $ 79,872 | 92,710 | |
Percentage status of loan in portfolio | 5.77% | 4.39% | ||
Residential rentals | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 195,035 | |||
Less: | ||||
Less: Allowance for Credit Losses | (2,175) | $ (3,061) | (1,413) | |
Residential rentals | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 195,035 | $ 338,292 | 194,911 | |
Percentage status of loan in portfolio | 12.35% | 18.58% | ||
Construction and land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 35,590 | |||
Less: | ||||
Less: Allowance for Credit Losses | (260) | $ (160) | (401) | |
Construction and land development | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 35,590 | $ 17,259 | 35,502 | |
Percentage status of loan in portfolio | 2.25% | 0.95% | ||
Home equity and second mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 25,638 | |||
Less: | ||||
Less: Allowance for Credit Losses | (274) | $ (126) | (261) | |
Home equity and second mortgages | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 25,638 | $ 25,602 | 25,661 | |
Percentage status of loan in portfolio | 1.62% | 1.41% | ||
Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 50,574 | |||
Less: | ||||
Less: Allowance for Credit Losses | (582) | $ (190) | (1,222) | |
Commercial loans | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 50,574 | $ 42,055 | 50,512 | |
Percentage status of loan in portfolio | 3.20% | 2.31% | ||
Consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 3,002 | |||
Less: | ||||
Less: Allowance for Credit Losses | (58) | $ (154) | (20) | |
Consumer loans | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 3,002 | $ 6,272 | 3,015 | |
Percentage status of loan in portfolio | 0.19% | 0.34% | ||
Commercial equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 62,499 | |||
Less: | ||||
Less: Allowance for Credit Losses | (971) | $ (1,342) | $ (1,058) | |
Commercial equipment | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 62,499 | $ 78,890 | 62,706 | |
Percentage status of loan in portfolio | 3.96% | 4.33% | ||
U.S. SBA PPP loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 27,276 | |||
Percentage status of loan in portfolio | 1.70% | |||
U.S. SBA PPP loans | Non Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 27,276 | $ 339 | 26,398 | |
Less: | ||||
Net deferred costs (fees) | (878) | 0 | ||
Total net portfolio loans | 26,398 | 1,798,517 | $ 26,398 | |
Accrued interest receivable | $ 4,500 | $ 6,600 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) tDR_Loan loan | Dec. 31, 2021 USD ($) loan tDR_Loan | Sep. 30, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Deferred loan fee and premiums, net | $ (3,000) | $ (100) | ||
Total deferred fee and premiums | 4,300 | 4,000 | ||
Deferred loan fees and premiums include net deferred fees paid by customers | 7,300 | 4,100 | ||
Net deferred costs (fees) | (1,011) | |||
Total | 1,821,407 | 1,606,219 | ||
Loans sold for payment, service rights retained, amount | $ 19,500 | $ 20,900 | ||
Total TDRs | tDR_Loan | 2 | 1 | ||
Nonaccrual with no allowance for credit losses | $ 6,006 | |||
Total Non-accrual Loans | 6,115 | $ 7,631 | ||
Financing receivable post modification recorded investment | $ 457 | 447 | ||
YTD Interest Income Recognized | $ 447 | |||
Performance TDR interest rate | 3.62% | 3.62% | ||
Unpaid Contractual Principal Balance | $ 8,681 | |||
Total recorded investment | 8,494 | |||
PCI Loans, accretion interest | 100 | |||
Reclassification from nonaccretable difference | 43 | |||
Loan participations, loans sold, amount | $ 21,000 | 11,800 | ||
Loan participations, loans purchased, amount | 22,900 | 4,300 | ||
Related Party Loans | Charitable And Community Organizations to Which Bank Executive Offices and Directors Volunteer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes receivable, related parties | 4,000 | 3,100 | ||
Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net deferred costs (fees) | (133) | $ 0 | ||
Total | $ 1,821,407 | 1,578,943 | 1,578,810 | |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 1,115,485 | |||
Total TDRs | tDR_Loan | 0 | 0 | ||
Nonaccrual with no allowance for credit losses | $ 4,521 | |||
Total Non-accrual Loans | 4,602 | $ 4,890 | ||
Financing receivable post modification recorded investment | $ 0 | 0 | ||
YTD Interest Income Recognized | 254 | |||
Unpaid Contractual Principal Balance | 4,994 | |||
Total recorded investment | $ 4,890 | |||
Commercial real estate | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage status of loan in portfolio | 67.69% | 70.66% | ||
Total | $ 1,232,826 | $ 1,115,485 | 1,113,793 | |
Commercial real estate | Commercial Construction Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage status of loan in portfolio | 6.90% | 6.50% | ||
Percent of appraised value or sales price | 80% | |||
Residential first mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 91,120 | |||
Total Non-accrual Loans | 450 | |||
YTD Interest Income Recognized | 32 | |||
Unpaid Contractual Principal Balance | 879 | |||
Total recorded investment | $ 866 | |||
Residential first mortgages | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage status of loan in portfolio | 4.39% | 5.77% | ||
Total | $ 79,872 | $ 91,120 | $ 92,710 | |
Adjustable Rate Residential First Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 1,820,000 | $ 1,610,000 | ||
Adjustable Rate Residential First Mortgage | Residential first mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage status of loan in portfolio | 0.70% | 1.20% | ||
Total | $ 13,100 | $ 18,900 | ||
Financing Receivable Troubled Debt Restructuring | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
YTD Interest Income Recognized | $ 16 | $ 16 | ||
Troubled Debt Restructuring Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total TDRs | loan | 1 | 0 | ||
Three Troubled Debt Restructuring Loans With Reserves | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total TDRs | loan | 1 | |||
Financing receivable, specific reserves | $ 28 | $ 400 | ||
Seven Troubled Debt Restructuring Loans with Reserves | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total TDRs | loan | 5 | |||
Financing receivable post modification recorded investment | 18 | |||
Amount of loans removed from troubled debt restructuring | $ 1,600 | |||
U.S. SBA PPP loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net deferred costs (fees) | 200 | $ 9 | ||
Deferred loan fees and premiums included in deferred fees paid by SBA | 200 | 9 | ||
Offset by net deferred premiums paid to purchase loans | 18 | $ 1 | ||
Nonaccrual Loans With No Impairment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Nonaccrual with no allowance for credit losses | 6,000 | 7,400 | ||
Interest due to debt | 22 | 100 | ||
Nonaccrual Loans With Impairment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest due to debt | 1 | 1 | ||
Total Non-accrual Loans | $ 100 | 300 | ||
Minimum | Residential Rentals Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period (in years) | 3 years | |||
Minimum | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period (in years) | 3 years | |||
Minimum | Residential first mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period (in years) | 10 years | |||
Maximum | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period (in years) | 20 years | |||
Maximum | Residential first mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period (in years) | 30 years | |||
Maximum | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period (in years) | 5 years | |||
Unrated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 127,679 | |||
Unrated | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 0 | |||
Pass | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 1,473,329 | |||
Pass | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 1,224,033 | 1,111,857 | ||
Special mention | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 0 | |||
Special mention | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 4,191 | 0 | ||
Substandard | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 5,211 | |||
Substandard | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 4,602 | 3,628 | ||
31-60 DPD | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 232 | 200 | ||
31-60 DPD | Commercial real estate | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 147 | 0 | ||
31-60 DPD | Residential first mortgages | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 0 | 0 | ||
61-89 DPD** | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 372 | 319 | ||
Total TDRs | loan | 2 | |||
Total Non-accrual Loans | $ 300 | |||
61-89 DPD** | Commercial real estate | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 0 | 0 | ||
61-89 DPD** | Residential first mortgages | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 0 | 277 | ||
90 DPD Still Accruing and Not Accruing | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 50 | 904 | ||
Total Non-accrual Loans | 388 | |||
90 DPD Still Accruing and Not Accruing | Commercial real estate | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 0 | 0 | ||
Total Non-accrual Loans | 0 | |||
90 DPD Still Accruing and Not Accruing | Residential first mortgages | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 0 | 450 | ||
Total Non-accrual Loans | 0 | |||
Performing Financial Instruments | Residential first mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 79,872 | 90,670 | ||
Nonperforming Financial Instruments | Residential first mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 0 | 450 | ||
PCI Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid Contractual Principal Balance | 1,500 | |||
Total recorded investment | 1,100 | |||
Reclassification from nonaccretable difference | 43 | |||
PCI Loans | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 1,116 | |||
Total Non-accrual Loans | 5,460 | |||
PCI Loans | Commercial real estate | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 1,116 | |||
Total Non-accrual Loans | 4,602 | |||
PCI Loans | Residential first mortgages | Portfolio Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Non-accrual Loans | $ 0 | |||
County First Acquisition | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage status of loan in portfolio | 2.63% | |||
Total | $ 42,182 | |||
County First Acquisition | PCI Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage status of loan in portfolio | 0.07% | |||
Total | $ 1,116 | |||
Total recorded investment | 1,100 | |||
New acquisition accounting for fair market value adjustment | $ 300 | |||
Net acquisition accounting fair market value adjustment, mark | 14.95% | |||
County First Acquisition | All Other Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage status of loan in portfolio | 2.56% | |||
Total | $ 41,066 | |||
New acquisition accounting for fair market value adjustment | $ 800 | |||
Net acquisition accounting fair market value adjustment, mark | 1.25% |
Loans (Schedule of Financing Re
Loans (Schedule of Financing Receivables, Non-Accrual Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | $ 6,006 | |
Nonaccrual with Allowance for Credit Losses | 109 | |
Interest Income on Nonaccrual Loans | 121 | |
Interest Income on Nonaccrual Loans | 0 | |
Total Non-accrual Loans | 6,115 | $ 7,631 |
Non- accrual Delinquent Loans | 655 | 961 |
Non-accrual Current Loans | 5,460 | 6,670 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | 4,521 | |
Nonaccrual with Allowance for Credit Losses | 81 | |
Total Non-accrual Loans | 4,602 | 4,890 |
Non- accrual Delinquent Loans | 0 | 0 |
Non-accrual Current Loans | 4,602 | 4,890 |
Residential first mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Non-accrual Loans | 450 | |
Non- accrual Delinquent Loans | 450 | |
Non-accrual Current Loans | 0 | |
Residential rentals | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | 1,142 | |
Nonaccrual with Allowance for Credit Losses | 0 | |
Total Non-accrual Loans | 1,142 | 942 |
Non- accrual Delinquent Loans | 449 | 252 |
Non-accrual Current Loans | 693 | 690 |
Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | 206 | |
Nonaccrual with Allowance for Credit Losses | 0 | |
Total Non-accrual Loans | 206 | 601 |
Non- accrual Delinquent Loans | 206 | 202 |
Non-accrual Current Loans | 0 | 399 |
Commercial equipment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | 137 | |
Nonaccrual with Allowance for Credit Losses | 28 | |
Total Non-accrual Loans | 165 | 691 |
Non- accrual Delinquent Loans | 0 | 0 |
Non-accrual Current Loans | $ 165 | 691 |
U.S. SBA PPP loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Non-accrual Loans | 57 | |
Non- accrual Delinquent Loans | 57 | |
Non-accrual Current Loans | $ 0 |
Loans (Past Due Financing Recei
Loans (Past Due Financing Receivables) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) tDR_Loan loan | Dec. 31, 2021 USD ($) tDR_Loan | Jan. 01, 2022 USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 1,821,407 | $ 1,606,219 | |
Nonaccrual | $ 6,115 | $ 7,631 | |
Total TDRs | tDR_Loan | 2 | 1 | |
Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 1,821,407 | $ 1,578,943 | $ 1,578,810 |
PCI Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1,116 | ||
Nonaccrual | 5,460 | ||
PCI Loans | 1,116 | ||
Current Accrual Loans | All Other Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1,814,905 | 1,576,404 | |
Total Past Due | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1,042 | 1,423 | |
31-60 DPD | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 232 | 200 | |
61-89 DPD** | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 372 | 319 | |
Nonaccrual | $ 300 | ||
Total TDRs | loan | 2 | ||
90 DPD Still Accruing and Not Accruing | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 50 | 904 | |
Nonaccrual | 388 | ||
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1,115,485 | ||
Nonaccrual | $ 4,602 | $ 4,890 | |
Total TDRs | tDR_Loan | 0 | 0 | |
Commercial real estate | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 1,232,826 | $ 1,115,485 | 1,113,793 |
Commercial real estate | PCI Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1,116 | ||
Nonaccrual | 4,602 | ||
PCI Loans | 1,116 | ||
Commercial real estate | Current Accrual Loans | All Other Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1,228,077 | 1,114,369 | |
Commercial real estate | Total Past Due | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 147 | 0 | |
Commercial real estate | 31-60 DPD | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 147 | 0 | |
Commercial real estate | 61-89 DPD** | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Commercial real estate | 90 DPD Still Accruing and Not Accruing | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Nonaccrual | 0 | ||
Residential first mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 91,120 | ||
Nonaccrual | 450 | ||
Residential first mortgages | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 79,872 | 91,120 | 92,710 |
Residential first mortgages | PCI Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 0 | ||
PCI Loans | 0 | ||
Residential first mortgages | Current Accrual Loans | All Other Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 79,872 | 90,393 | |
Residential first mortgages | Total Past Due | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 727 | |
Residential first mortgages | 31-60 DPD | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Residential first mortgages | 61-89 DPD** | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 277 | |
Residential first mortgages | 90 DPD Still Accruing and Not Accruing | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 450 | |
Nonaccrual | 0 | ||
Residential rentals | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 195,035 | ||
Nonaccrual | 1,142 | 942 | |
Residential rentals | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 338,292 | 195,035 | 194,911 |
Residential rentals | PCI Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 693 | ||
PCI Loans | 0 | ||
Residential rentals | Current Accrual Loans | All Other Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 337,150 | 194,741 | |
Residential rentals | Total Past Due | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 449 | 294 | |
Residential rentals | 31-60 DPD | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Residential rentals | 61-89 DPD** | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 177 | 42 | |
Residential rentals | 90 DPD Still Accruing and Not Accruing | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 252 | |
Nonaccrual | 272 | ||
Construction and land development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 35,590 | ||
Construction and land development | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 17,259 | 35,590 | 35,502 |
Construction and land development | PCI Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 0 | ||
PCI Loans | 0 | ||
Construction and land development | Current Accrual Loans | All Other Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 17,259 | 35,590 | |
Construction and land development | Total Past Due | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Construction and land development | 31-60 DPD | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Construction and land development | 61-89 DPD** | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Construction and land development | 90 DPD Still Accruing and Not Accruing | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Nonaccrual | 0 | ||
Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 25,638 | ||
Nonaccrual | 206 | 601 | |
Home equity and second mortgages | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 25,602 | 25,638 | 25,661 |
Home equity and second mortgages | PCI Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | |||
PCI Loans | 0 | ||
Home equity and second mortgages | Current Accrual Loans | All Other Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 25,273 | 25,236 | |
Home equity and second mortgages | Total Past Due | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 329 | 402 | |
Home equity and second mortgages | 31-60 DPD | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 53 | 200 | |
Home equity and second mortgages | 61-89 DPD** | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 160 | 0 | |
Home equity and second mortgages | 90 DPD Still Accruing and Not Accruing | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 202 | |
Nonaccrual | 116 | ||
Commercial loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 50,574 | ||
Commercial loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 42,055 | 50,574 | 50,512 |
Commercial loans | PCI Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 0 | ||
PCI Loans | 0 | ||
Commercial loans | Current Accrual Loans | All Other Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 42,055 | 50,574 | |
Commercial loans | Total Past Due | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Commercial loans | 31-60 DPD | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Commercial loans | 61-89 DPD** | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Commercial loans | 90 DPD Still Accruing and Not Accruing | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Nonaccrual | 0 | ||
Consumer loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 3,002 | ||
Consumer loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 6,272 | 3,002 | 3,015 |
Consumer loans | PCI Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 0 | ||
PCI Loans | 0 | ||
Consumer loans | Current Accrual Loans | All Other Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 6,166 | 3,002 | |
Consumer loans | Total Past Due | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 106 | 0 | |
Consumer loans | 31-60 DPD | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 21 | 0 | |
Consumer loans | 61-89 DPD** | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 35 | 0 | |
Consumer loans | 90 DPD Still Accruing and Not Accruing | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 50 | 0 | |
Nonaccrual | 0 | ||
Commercial equipment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 62,499 | ||
Nonaccrual | $ 165 | $ 691 | |
Total TDRs | tDR_Loan | 2 | 1 | |
Commercial equipment | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 78,890 | $ 62,499 | 62,706 |
Commercial equipment | PCI Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 165 | ||
PCI Loans | 0 | ||
Commercial equipment | Current Accrual Loans | All Other Loans | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 78,714 | 62,499 | |
Commercial equipment | Total Past Due | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 11 | 0 | |
Commercial equipment | 31-60 DPD | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 11 | 0 | |
Commercial equipment | 61-89 DPD** | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Commercial equipment | 90 DPD Still Accruing and Not Accruing | Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
Nonaccrual | 0 | ||
U.S. SBA PPP loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 27,276 | ||
Nonaccrual | 57 | ||
U.S. SBA PPP loans | Non Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 339 | 27,276 | $ 26,398 |
Nonaccrual | 0 | ||
PCI Loans | 0 | ||
U.S. SBA PPP loans | Current Accrual Loans | Non Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 339 | 27,170 | |
U.S. SBA PPP loans | Total Past Due | Non Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 106 | |
U.S. SBA PPP loans | 31-60 DPD | Non Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 9 | |
U.S. SBA PPP loans | 61-89 DPD** | Non Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 40 | |
U.S. SBA PPP loans | 90 DPD Still Accruing and Not Accruing | Non Portfolio Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | $ 57 | |
Nonaccrual | $ 0 |
Loans (Allowance for Credit Los
Loans (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for loan losses: | ||
Beginning Balance | $ 18,417 | $ 19,424 |
Charge-offs | (568) | (2,218) |
Recoveries | 108 | 625 |
Provisions | 2,437 | 586 |
Ending Balance | 22,890 | 18,417 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses: | ||
Beginning Balance | 2,496 | |
Ending Balance | 2,496 | |
Commercial real estate | ||
Allowance for loan losses: | ||
Beginning Balance | 13,095 | 13,744 |
Charge-offs | (280) | (1,920) |
Recoveries | 16 | 6 |
Provisions | 1,085 | 1,265 |
Ending Balance | 17,650 | 13,095 |
Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses: | ||
Beginning Balance | 3,734 | |
Ending Balance | 3,734 | |
Residential first mortgages | ||
Allowance for loan losses: | ||
Beginning Balance | 1,002 | 1,305 |
Charge-offs | (111) | (142) |
Recoveries | 14 | 0 |
Provisions | (19) | (161) |
Ending Balance | 207 | 1,002 |
Residential first mortgages | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses: | ||
Beginning Balance | (679) | |
Ending Balance | (679) | |
Residential rentals | ||
Allowance for loan losses: | ||
Beginning Balance | 2,175 | 1,413 |
Charge-offs | 0 | (46) |
Recoveries | 0 | 0 |
Provisions | 1,472 | 808 |
Ending Balance | 3,061 | 2,175 |
Residential rentals | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses: | ||
Beginning Balance | (586) | |
Ending Balance | (586) | |
Construction and land development | ||
Allowance for loan losses: | ||
Beginning Balance | 260 | 401 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provisions | (18) | (141) |
Ending Balance | 160 | 260 |
Construction and land development | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses: | ||
Beginning Balance | (82) | |
Ending Balance | (82) | |
Home equity and second mortgages | ||
Allowance for loan losses: | ||
Beginning Balance | 274 | 261 |
Charge-offs | 0 | 0 |
Recoveries | 1 | 5 |
Provisions | (63) | 8 |
Ending Balance | 126 | 274 |
Home equity and second mortgages | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses: | ||
Beginning Balance | (86) | |
Ending Balance | (86) | |
Commercial loans | ||
Allowance for loan losses: | ||
Beginning Balance | 582 | 1,222 |
Charge-offs | (99) | (76) |
Recoveries | 2 | 543 |
Provisions | (5) | (1,107) |
Ending Balance | 190 | 582 |
Commercial loans | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses: | ||
Beginning Balance | (290) | |
Ending Balance | (290) | |
Consumer loans | ||
Allowance for loan losses: | ||
Beginning Balance | 58 | 20 |
Charge-offs | (49) | 0 |
Recoveries | 0 | 0 |
Provisions | 143 | 38 |
Ending Balance | 154 | 58 |
Consumer loans | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses: | ||
Beginning Balance | 2 | |
Ending Balance | 2 | |
Commercial equipment | ||
Allowance for loan losses: | ||
Beginning Balance | 971 | 1,058 |
Charge-offs | (29) | (34) |
Recoveries | 75 | 71 |
Provisions | (158) | (124) |
Ending Balance | 1,342 | 971 |
Commercial equipment | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses: | ||
Beginning Balance | $ 483 | |
Ending Balance | $ 483 |
Loans (Amortized Cost for Colla
Loans (Amortized Cost for Collateral-Dependent Loans by Class of Loans) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | $ 6,006 |
Commercial real estate | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 4,521 |
Residential rentals | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 1,142 |
Home equity and second mortgages | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 206 |
Commercial equipment | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 137 |
Business and Other Assets | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 595 |
Business and Other Assets | Commercial real estate | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 0 |
Business and Other Assets | Residential rentals | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 0 |
Business and Other Assets | Home equity and second mortgages | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 0 |
Business and Other Assets | Commercial equipment | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 595 |
Real Estate | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 5,949 |
Real Estate | Commercial real estate | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 4,601 |
Real Estate | Residential rentals | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 1,142 |
Real Estate | Home equity and second mortgages | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | 206 |
Real Estate | Commercial equipment | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual with No Allowance for Credit Losses | $ 0 |
Loans (Risk Category of Loans b
Loans (Risk Category of Loans by Class of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | $ 461,554 | |
2018 | 104,237 | |
2019 | 172,653 | |
2020 | 252,529 | |
2021 | 370,691 | |
2022 | 455,235 | |
Revolving Loans | 4,508 | |
Total | 1,821,407 | $ 1,606,219 |
Pass | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 1,473,329 | |
Special mention | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 0 | |
Substandard | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 5,211 | |
Internal Noninvestment Grade | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 409,552 | |
2018 | 99,029 | |
2019 | 152,105 | |
2020 | 242,447 | |
2021 | 360,687 | |
2022 | 445,502 | |
Revolving Loans | 0 | |
Total | 1,709,322 | |
Internal Investment Grade | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 52,002 | |
2018 | 5,208 | |
2019 | 20,548 | |
2020 | 10,082 | |
2021 | 10,004 | |
2022 | 9,733 | |
Revolving Loans | 4,508 | |
Total | 112,085 | |
Commercial real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 1,115,485 | |
Commercial real estate | Pass | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 329,575 | |
2018 | 73,742 | |
2019 | 107,264 | |
2020 | 184,263 | |
2021 | 272,567 | |
2022 | 256,622 | |
Revolving Loans | 0 | |
Total | 1,224,033 | 1,111,857 |
Commercial real estate | Special mention | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 4,191 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 4,191 | 0 |
Commercial real estate | Substandard | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 792 | |
2018 | 0 | |
2019 | 2,967 | |
2020 | 0 | |
2021 | 843 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 4,602 | 3,628 |
Commercial real estate | Internal Noninvestment Grade | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 330,367 | |
2018 | 77,933 | |
2019 | 110,231 | |
2020 | 184,263 | |
2021 | 273,410 | |
2022 | 256,622 | |
Revolving Loans | 0 | |
Total | 1,232,826 | |
Residential rentals | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 195,035 | |
Residential rentals | Pass | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 44,257 | |
2018 | 4,429 | |
2019 | 20,690 | |
2020 | 48,237 | |
2021 | 65,889 | |
2022 | 153,648 | |
Revolving Loans | 0 | |
Total | 337,150 | 194,093 |
Residential rentals | Special mention | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 0 | 0 |
Residential rentals | Substandard | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 1,142 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 1,142 | 942 |
Residential rentals | Internal Noninvestment Grade | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 45,399 | |
2018 | 4,429 | |
2019 | 20,690 | |
2020 | 48,237 | |
2021 | 65,889 | |
2022 | 153,648 | |
Revolving Loans | 0 | |
Total | 338,292 | |
Construction and land development | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 35,590 | |
Construction and land development | Pass | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 2,355 | |
2018 | 7,788 | |
2019 | 4,255 | |
2020 | 729 | |
2021 | 2,020 | |
2022 | 112 | |
Revolving Loans | 0 | |
Total | 17,259 | 35,590 |
Construction and land development | Special mention | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 0 | 0 |
Construction and land development | Substandard | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 0 | 0 |
Construction and land development | Internal Noninvestment Grade | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 2,355 | |
2018 | 7,788 | |
2019 | 4,255 | |
2020 | 729 | |
2021 | 2,020 | |
2022 | 112 | |
Revolving Loans | 0 | |
Total | 17,259 | |
Commercial loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 50,574 | |
Commercial loans | Pass | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 23,225 | |
2018 | 4,298 | |
2019 | 2,463 | |
2020 | 1,872 | |
2021 | 6,420 | |
2022 | 3,777 | |
Revolving Loans | 0 | |
Total | 42,055 | 50,574 |
Commercial loans | Special mention | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 0 | 0 |
Commercial loans | Substandard | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 0 | 0 |
Commercial loans | Internal Noninvestment Grade | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 23,225 | |
2018 | 4,298 | |
2019 | 2,463 | |
2020 | 1,872 | |
2021 | 6,420 | |
2022 | 3,777 | |
Revolving Loans | 0 | |
Total | 42,055 | |
Commercial equipment | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 62,499 | |
Commercial equipment | Pass | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 8,206 | |
2018 | 4,411 | |
2019 | 14,329 | |
2020 | 7,346 | |
2021 | 12,948 | |
2022 | 31,315 | |
Revolving Loans | 0 | |
Total | 78,555 | 62,326 |
Commercial equipment | Special mention | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 170 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 170 | 0 |
Commercial equipment | Substandard | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 0 | |
2019 | 137 | |
2020 | 0 | |
2021 | 0 | |
2022 | 28 | |
Revolving Loans | 0 | |
Total | 165 | 173 |
Commercial equipment | Internal Noninvestment Grade | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 8,206 | |
2018 | 4,581 | |
2019 | 14,466 | |
2020 | 7,346 | |
2021 | 12,948 | |
2022 | 31,343 | |
Revolving Loans | 0 | |
Total | 78,890 | |
Residential first mortgages | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 91,120 | |
Residential first mortgages | Performing Financial Instruments | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 37,428 | |
2018 | 3,584 | |
2019 | 19,411 | |
2020 | 8,523 | |
2021 | 5,235 | |
2022 | 5,691 | |
Revolving Loans | 0 | |
Total | 79,872 | 90,670 |
Residential first mortgages | Nonperforming Financial Instruments | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 0 | 450 |
Residential first mortgages | Internal Investment Grade | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 37,428 | |
2018 | 3,584 | |
2019 | 19,411 | |
2020 | 8,523 | |
2021 | 5,235 | |
2022 | 5,691 | |
Revolving Loans | 0 | |
Total | 79,872 | |
Home equity and second mortgages | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 25,638 | |
Home equity and second mortgages | Performing Financial Instruments | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 14,319 | |
2018 | 1,622 | |
2019 | 1,041 | |
2020 | 1,441 | |
2021 | 3,812 | |
2022 | 3,161 | |
Revolving Loans | 0 | |
Total | 25,396 | 25,436 |
Home equity and second mortgages | Nonperforming Financial Instruments | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 206 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 206 | 202 |
Home equity and second mortgages | Internal Investment Grade | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 14,525 | |
2018 | 1,622 | |
2019 | 1,041 | |
2020 | 1,441 | |
2021 | 3,812 | |
2022 | 3,161 | |
Revolving Loans | 0 | |
Total | 25,602 | |
Consumer loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 3,002 | |
Consumer loans | Performing Financial Instruments | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 49 | |
2018 | 2 | |
2019 | 96 | |
2020 | 118 | |
2021 | 618 | |
2022 | 881 | |
Revolving Loans | 4,508 | |
Total | 6,272 | 3,002 |
Consumer loans | Nonperforming Financial Instruments | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 0 | 0 |
Consumer loans | Internal Investment Grade | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 49 | |
2018 | 2 | |
2019 | 96 | |
2020 | 118 | |
2021 | 618 | |
2022 | 881 | |
Revolving Loans | 4,508 | |
Total | 6,272 | |
U.S. SBA PPP loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 27,276 | |
U.S. SBA PPP loans | Performing Financial Instruments | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 339 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 339 | |
U.S. SBA PPP loans | Nonperforming Financial Instruments | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | 0 | |
U.S. SBA PPP loans | Pass | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 0 | |
U.S. SBA PPP loans | Special mention | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | 0 | |
U.S. SBA PPP loans | Substandard | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total | $ 0 | |
U.S. SBA PPP loans | Internal Investment Grade | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Prior | 0 | |
2018 | 0 | |
2019 | 0 | |
2020 | 0 | |
2021 | 339 | |
2022 | 0 | |
Revolving Loans | 0 | |
Total | $ 339 |
Loans (Schedule of Financing _2
Loans (Schedule of Financing Receivable Recorded Investment Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | $ 1,821,407 | $ 1,606,219 |
Unrated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 127,679 | |
Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 1,473,329 | |
Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 5,211 | |
Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 1,115,485 | |
Commercial real estate | Unrated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial real estate | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 1,224,033 | 1,111,857 |
Commercial real estate | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 4,191 | 0 |
Commercial real estate | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 4,602 | 3,628 |
Commercial real estate | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial real estate | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Residential rentals | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 195,035 | |
Residential rentals | Unrated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Residential rentals | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 337,150 | 194,093 |
Residential rentals | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | 0 |
Residential rentals | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 1,142 | 942 |
Residential rentals | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Residential rentals | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Construction and land development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 35,590 | |
Construction and land development | Unrated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Construction and land development | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 17,259 | 35,590 |
Construction and land development | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | 0 |
Construction and land development | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | 0 |
Construction and land development | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Construction and land development | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 50,574 | |
Commercial loans | Unrated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial loans | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 42,055 | 50,574 |
Commercial loans | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial loans | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial equipment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 62,499 | |
Commercial equipment | Unrated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial equipment | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 78,555 | 62,326 |
Commercial equipment | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 170 | 0 |
Commercial equipment | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 165 | 173 |
Commercial equipment | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial equipment | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial portfolio | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 1,459,183 | |
Commercial portfolio | Unrated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial portfolio | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 1,454,440 | |
Commercial portfolio | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial portfolio | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 4,743 | |
Commercial portfolio | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Commercial portfolio | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Non commercial portfolio | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 119,760 | |
Non commercial portfolio | Unrated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 100,403 | |
Non commercial portfolio | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 18,889 | |
Non commercial portfolio | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Non commercial portfolio | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 468 | |
Non commercial portfolio | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Non commercial portfolio | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
U.S. SBA PPP loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 27,276 | |
U.S. SBA PPP loans | Performing Financial Instruments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 339 | |
U.S. SBA PPP loans | Nonperforming Financial Instruments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
U.S. SBA PPP loans | Unrated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 27,276 | |
U.S. SBA PPP loans | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
U.S. SBA PPP loans | Special mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
U.S. SBA PPP loans | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
U.S. SBA PPP loans | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
U.S. SBA PPP loans | Loss | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | |
Residential first mortgages | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 91,120 | |
Residential first mortgages | Performing Financial Instruments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 79,872 | 90,670 |
Residential first mortgages | Nonperforming Financial Instruments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 0 | 450 |
Home equity and second mortgages | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 25,638 | |
Home equity and second mortgages | Performing Financial Instruments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 25,396 | 25,436 |
Home equity and second mortgages | Nonperforming Financial Instruments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 206 | 202 |
Consumer loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 3,002 | |
Consumer loans | Performing Financial Instruments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | 6,272 | 3,002 |
Consumer loans | Nonperforming Financial Instruments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | $ 0 | $ 0 |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructurings on Financing Receivables) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) tDR_Loan | Dec. 31, 2021 USD ($) tDR_Loan | |
Number of Loans | ||
Total TDRs | tDR_Loan | 2 | 1 |
Less: TDRs included in non-accrual loans | tDR_Loan | 1 | 0 |
Total accrual TDR loans | tDR_Loan | 1 | 1 |
Recorded Investment | ||
Total TDRs | $ | $ 457 | $ 447 |
Less: TDRs included in non-accrual loans | $ | 28 | 0 |
Total accrual TDR loans | $ | $ 429 | $ 447 |
Commercial real estate | ||
Number of Loans | ||
Total TDRs | tDR_Loan | 0 | 0 |
Recorded Investment | ||
Total TDRs | $ | $ 0 | $ 0 |
Commercial equipment | ||
Number of Loans | ||
Total TDRs | tDR_Loan | 2 | 1 |
Recorded Investment | ||
Total TDRs | $ | $ 457 | $ 447 |
Loans (Impaired Financing Recei
Loans (Impaired Financing Receivables) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Unpaid Contractual Principal Balance | $ 8,681 |
Recorded Investment with No Allowance | 8,228 |
Recorded Investment with Allowance | 266 |
Total Recorded Investment | 8,494 |
Related Allowance | 266 |
YTD Average Recorded Investment | 9,487 |
YTD Interest Income Recognized | 447 |
Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Unpaid Contractual Principal Balance | 4,994 |
Recorded Investment with No Allowance | 4,797 |
Recorded Investment with Allowance | 93 |
Total Recorded Investment | 4,890 |
Related Allowance | 93 |
YTD Average Recorded Investment | 4,866 |
YTD Interest Income Recognized | 254 |
Residential first mortgages | |
Financing Receivable, Impaired [Line Items] | |
Unpaid Contractual Principal Balance | 879 |
Recorded Investment with No Allowance | 866 |
Recorded Investment with Allowance | 0 |
Total Recorded Investment | 866 |
Related Allowance | 0 |
YTD Average Recorded Investment | 874 |
YTD Interest Income Recognized | 32 |
Residential rentals | |
Financing Receivable, Impaired [Line Items] | |
Unpaid Contractual Principal Balance | 982 |
Recorded Investment with No Allowance | 942 |
Recorded Investment with Allowance | 0 |
Total Recorded Investment | 942 |
Related Allowance | 0 |
YTD Average Recorded Investment | 959 |
YTD Interest Income Recognized | 48 |
Home equity and second mortgages | |
Financing Receivable, Impaired [Line Items] | |
Unpaid Contractual Principal Balance | 626 |
Recorded Investment with No Allowance | 601 |
Recorded Investment with Allowance | 0 |
Total Recorded Investment | 601 |
Related Allowance | 0 |
YTD Average Recorded Investment | 604 |
YTD Interest Income Recognized | 14 |
Commercial equipment | |
Financing Receivable, Impaired [Line Items] | |
Unpaid Contractual Principal Balance | 1,200 |
Recorded Investment with No Allowance | 1,022 |
Recorded Investment with Allowance | 173 |
Total Recorded Investment | 1,195 |
Related Allowance | 173 |
YTD Average Recorded Investment | 2,184 |
YTD Interest Income Recognized | $ 99 |
Loans (Loan Receivable and Allo
Loans (Loan Receivable and Allowance Balances Disaggregated) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
Loan receivables: | |||
Total | $ 1,821,407 | $ 1,606,219 | |
Allowance for loan losses: | |||
Ending balance: individually evaluated for impairment | 266 | ||
Ending balance: collectively evaluated for impairment | 18,151 | ||
Total allowance for loan losses | 18,417 | ||
Portfolio Loans | |||
Loan receivables: | |||
Ending balance: individually evaluated for impairment | 8,494 | ||
Ending balance: collectively evaluated for impairment | 1,569,333 | ||
Total | 1,821,407 | $ 1,578,810 | 1,578,943 |
PCI Loans | Portfolio Loans | |||
Loan receivables: | |||
Total | 1,116 | ||
Commercial real estate | |||
Loan receivables: | |||
Total | 1,115,485 | ||
Allowance for loan losses: | |||
Ending balance: individually evaluated for impairment | 93 | ||
Ending balance: collectively evaluated for impairment | 13,002 | ||
Total allowance for loan losses | 13,095 | ||
Commercial real estate | Portfolio Loans | |||
Loan receivables: | |||
Ending balance: individually evaluated for impairment | 4,890 | ||
Ending balance: collectively evaluated for impairment | 1,109,479 | ||
Total | 1,232,826 | 1,113,793 | 1,115,485 |
Commercial real estate | PCI Loans | Portfolio Loans | |||
Loan receivables: | |||
Total | 1,116 | ||
Residential first mortgages | |||
Loan receivables: | |||
Total | 91,120 | ||
Allowance for loan losses: | |||
Ending balance: individually evaluated for impairment | 0 | ||
Ending balance: collectively evaluated for impairment | 1,002 | ||
Total allowance for loan losses | 1,002 | ||
Residential first mortgages | Portfolio Loans | |||
Loan receivables: | |||
Ending balance: individually evaluated for impairment | 866 | ||
Ending balance: collectively evaluated for impairment | 90,254 | ||
Total | 79,872 | 92,710 | 91,120 |
Residential rentals | |||
Loan receivables: | |||
Total | 195,035 | ||
Allowance for loan losses: | |||
Ending balance: individually evaluated for impairment | 0 | ||
Ending balance: collectively evaluated for impairment | 2,175 | ||
Total allowance for loan losses | 2,175 | ||
Residential rentals | Portfolio Loans | |||
Loan receivables: | |||
Ending balance: individually evaluated for impairment | 942 | ||
Ending balance: collectively evaluated for impairment | 194,093 | ||
Total | 338,292 | 194,911 | 195,035 |
Construction and land development | |||
Loan receivables: | |||
Total | 35,590 | ||
Allowance for loan losses: | |||
Ending balance: individually evaluated for impairment | 0 | ||
Ending balance: collectively evaluated for impairment | 260 | ||
Total allowance for loan losses | 260 | ||
Construction and land development | Portfolio Loans | |||
Loan receivables: | |||
Ending balance: individually evaluated for impairment | 0 | ||
Ending balance: collectively evaluated for impairment | 35,590 | ||
Total | 17,259 | 35,502 | 35,590 |
Home equity and second mortgages | |||
Loan receivables: | |||
Total | 25,638 | ||
Allowance for loan losses: | |||
Ending balance: collectively evaluated for impairment | 274 | ||
Total allowance for loan losses | 274 | ||
Home equity and second mortgages | Portfolio Loans | |||
Loan receivables: | |||
Ending balance: individually evaluated for impairment | 601 | ||
Ending balance: collectively evaluated for impairment | 25,037 | ||
Total | 25,602 | 25,661 | 25,638 |
Commercial loans | |||
Loan receivables: | |||
Total | 50,574 | ||
Allowance for loan losses: | |||
Ending balance: individually evaluated for impairment | 0 | ||
Ending balance: collectively evaluated for impairment | 582 | ||
Total allowance for loan losses | 582 | ||
Commercial loans | Portfolio Loans | |||
Loan receivables: | |||
Ending balance: individually evaluated for impairment | 0 | ||
Ending balance: collectively evaluated for impairment | 50,574 | ||
Total | 42,055 | 50,512 | 50,574 |
Consumer loans | |||
Loan receivables: | |||
Total | 3,002 | ||
Allowance for loan losses: | |||
Ending balance: individually evaluated for impairment | 0 | ||
Ending balance: collectively evaluated for impairment | 58 | ||
Total allowance for loan losses | 58 | ||
Consumer loans | Portfolio Loans | |||
Loan receivables: | |||
Ending balance: individually evaluated for impairment | 0 | ||
Ending balance: collectively evaluated for impairment | 3,002 | ||
Total | 6,272 | 3,015 | 3,002 |
Commercial equipment | |||
Loan receivables: | |||
Total | 62,499 | ||
Allowance for loan losses: | |||
Ending balance: individually evaluated for impairment | 173 | ||
Ending balance: collectively evaluated for impairment | 798 | ||
Total allowance for loan losses | 971 | ||
Commercial equipment | Portfolio Loans | |||
Loan receivables: | |||
Ending balance: individually evaluated for impairment | 1,195 | ||
Ending balance: collectively evaluated for impairment | 61,304 | ||
Total | $ 78,890 | $ 62,706 | $ 62,499 |
Loans (Changes in the Accretabl
Loans (Changes in the Accretable Yield for PCI Loans) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Accretable yield, beginning of period | $ 342 |
Additions | 0 |
Accretion | (117) |
Reclassification from nonaccretable difference | 43 |
Other changes, net | 55 |
Accretable yield, end of period | $ 323 |
Loans (Acquired and Non-Acquire
Loans (Acquired and Non-Acquired Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | $ 1,606,219 | $ 1,821,407 |
Net deferred costs (fees) | $ (1,011) | |
Deferred loan fees and premiums (as a percent) | (0.06%) | |
Total loans, net of deferred costs | $ 1,605,208 | |
U.S. SBA PPP loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | $ 27,276 | |
Percentage status of loan in portfolio | 1.70% | |
County First Acquisition | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | $ 42,182 | |
Percentage status of loan in portfolio | 2.63% | |
County First Acquisition | All Other Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | $ 41,066 | |
Percentage status of loan in portfolio | 2.56% | |
County First Acquisition | PCI Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | $ 1,116 | |
Percentage status of loan in portfolio | 0.07% | |
Non Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total | $ 1,536,761 | |
Percentage status of loan in portfolio | 95.68% |
Loans (Related Party Loans) (De
Loans (Related Party Loans) (Details) - Related Party Loans - Executive Officers And Directors - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Balance, beginning of period | $ 26,267 | $ 16,367 |
Loans and additions | 13,629 | 2,218 |
Change in Directors' status | (4,053) | 23,752 |
Repayments | (6,991) | (16,070) |
Balance, end of period | $ 28,852 | $ 26,267 |
Goodwill And Other Intangible_3
Goodwill And Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 10,835 | $ 10,835 |
Goodwill And Other Intangible_4
Goodwill And Other Intangible Assets (Acquired intangible assets subject to amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net Intangible Asset | $ 634 | |
Core deposit | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,590 | $ 3,590 |
Accumulated Amortization | (2,956) | (2,558) |
Net Intangible Asset | $ 634 | $ 1,032 |
Goodwill And Other Intangible_5
Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of core deposit intangible | $ 398,000 | $ 495,000 | |
Goodwill and core deposit intangibles | $ 0 | ||
County First Bank | Core deposit | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated life of core deposit | 8 years | ||
Amortization of core deposit intangible | $ 400,000 | $ 500,000 |
Goodwill And Other Intangible_6
Goodwill And Other Intangible Assets - Estimated amortization expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Estimated amortization expense | |
2023 | $ 302 |
2024 | 205 |
2025 | 109 |
2026 | 18 |
Net Intangible Asset | $ 634 |
Premises and Equipment And Le_3
Premises and Equipment And Lease Commitments (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 4,957 | $ 4,957 |
Building and improvements | 25,762 | 25,087 |
Furniture and equipment | 11,000 | 10,150 |
Automobiles | 121 | 168 |
Total cost | 41,840 | 40,362 |
Less accumulated depreciation | (20,532) | (18,935) |
Premises and equipment, net | $ 21,308 | $ 21,427 |
Premises and Equipment And Le_4
Premises and Equipment And Lease Commitments (Operating Lease) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Lease, Description [Line Items] | ||
Operating lease right of use asset, net | $ 5,920 | $ 6,124 |
Operating lease liability | $ 6,202 | $ 6,343 |
Weighted average remaining lease term | 15 years 8 months 12 days | 17 years 2 months 12 days |
Weighted average discount rate | 3.51% | 3.51% |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 4 years 6 months | 6 years 3 months 18 days |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 22 years | 23 years |
Premises and Equipment And Le_5
Premises and Equipment And Lease Commitments (Lease Cost) (Details) - Occupancy Expense - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 611 | $ 635 |
Cash paid for lease liability | $ 546 | $ 617 |
Premises and Equipment And Le_6
Premises and Equipment And Lease Commitments (Reconciliation of Undiscounted Cash Flows) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Within one year | $ 574 | |
After one but within two years | 585 | |
After two but within three years | 622 | |
After three but within four years | 639 | |
After four but within five years | 609 | |
After five years | 5,236 | |
Total undiscounted cash flows | 8,265 | |
Discount on cash flows | (2,063) | |
Lease liabilities - operating leases | $ 6,202 | $ 6,343 |
Premises and Equipment And Le_7
Premises and Equipment And Lease Commitments (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Property, Plant and Equipment [Abstract] | |
2023 | $ 574 |
2024 | 585 |
2025 | 622 |
2026 | 639 |
2027 | 609 |
Thereafter | 5,236 |
Total undiscounted cash flows | $ 8,265 |
Premises and Equipment And Le_8
Premises and Equipment And Lease Commitments (Narrative) (Details) - Small Office Condo $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | |
Impairment of long-lived assets to be disposed of | $ 25 |
Level 3 | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment held for sale | $ 400 |
Other Real Estate Owned ("ORE_3
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate [Roll Forward] | ||
Balance at beginning of year | $ 0 | $ 3,109 |
Additions of underlying property | 0 | 0 |
Disposals of underlying property | 0 | (1,722) |
Valuation allowance | 0 | (1,387) |
Balance at end of period | $ 0 | $ 0 |
Other Real Estate Owned ("ORE_4
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate [Abstract] | ||
Valuation allowance | $ 0 | $ 1,387 |
Losses (gains) on dispositions | 0 | (17) |
Operating expenses | 6 | 86 |
Expenses applicable to OREO assets | $ 6 | $ 1,456 |
Other Real Estate Owned ("ORE_5
Other Real Estate Owned ("OREO") (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Residential Lots | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Implaired loans secured by residential real estate | $ 0 | $ 0.4 |
Deposits (Schedule Of Deposits)
Deposits (Schedule Of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits, by Type [Abstract] | ||
Non-interest-bearing deposits | $ 630,120 | $ 445,778 |
Interest-bearing | ||
Savings | 124,533 | 119,767 |
Demand deposits | 638,876 | 790,481 |
Money market deposits | 347,872 | 372,717 |
Certificates of deposit | 347,062 | 327,421 |
Total interest-bearing | 1,458,343 | 1,610,386 |
Total Deposits | $ 2,088,463 | $ 2,056,164 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposit Liability [Line Items] | ||
Time deposits | $ 2,088,463 | $ 2,056,164 |
Time deposits $250000 or more | 114,700 | 62,600 |
Executive Officers And Directors | ||
Deposit Liability [Line Items] | ||
Time deposits | $ 19,000 | $ 30,500 |
Deposits (Schedule Of Deposits
Deposits (Schedule Of Deposits Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits, by Type [Abstract] | ||
Within one year | $ 258,086 | |
Year 2 | 54,937 | |
Year 3 | 24,425 | |
Year 4 | 5,999 | |
Year 5 | 3,615 | |
Time deposits | $ 347,062 | $ 327,421 |
Short-Term Borrowings and Lon_3
Short-Term Borrowings and Long-Term Debt (Schedule Related to the Classification of Debt Interest Rate) (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fixed-Rate | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 4.57% | 2.26% |
Matures through | 2023 | 2036 |
Fixed-Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.57% | 2.75% |
Fixed-Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.57% | 1% |
Fixed-Rate Convertible | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 0.79% | |
Matures through | 2030 | |
Fixed-Rate Convertible | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.79% | |
Fixed-Rate Convertible | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.79% |
Short-Term Borrowings and Lon_4
Short-Term Borrowings and Long-Term Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Long-term debt | ||
Long-term debt outstanding at end of period | $ 0 | $ 12,231 |
Weighted average rate on outstanding long-term debt | 0% | 0.82% |
Maximum outstanding long-term debt of any month end | $ 12,225 | $ 27,296 |
Average outstanding long-term debt | $ 3,848 | $ 23,072 |
Approximate average rate paid on long-term debt | 1.25% | 0.95% |
Short-term borrowings | ||
Short-term borrowings outstanding at end of period | $ 79,000 | $ 0 |
Weighted average rate on short-term borrowings | 4.57% | 0% |
Maximum outstanding short-term borrowings at any month end | $ 79,000 | $ 0 |
Average outstanding short-term borrowings | $ 12,696 | $ 0 |
Approximate average rate paid on short-term borrowings | 3.36% | 0% |
Short-Term Borrowings and Lon_5
Short-Term Borrowings and Long-Term Debt (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Early repayment of senior debt | $ 12,000 | $ 15,000 |
Repayments of long-term debt | 200 | |
Debt prepayment fees | 15 | 100 |
Debt conversion, original debt, amount | 0 | $ 200 |
Percentage of Bank's long-term debt at fixed rate | 1.89% | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, fair value of amount outstanding | 63,000 | |
Other Commercial Banks | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 82,000 | $ 32,000 |
Line of Credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, fair value of amount outstanding | 79,000 | 0 |
Federal Home Loan Bank Borrowings | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 490,500 | 530,500 |
Loans and securities pledged as collateral | 822,900 | 723,100 |
FHLB lendable collateral | 632,500 | 605,700 |
FHLB lendable pledged collateral | 239,700 | 192,000 |
Line of credit facility, current borrowing capacity | 97,700 | 116,800 |
Line of credit facility, fair value of amount outstanding | 79,000 | 12,200 |
FHLB lendable unpledged collateral | 392,800 | 413,700 |
Federal Home Loan Bank Borrowings | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, fair value of amount outstanding | 63,000 | |
Borrower in Custody | Federal Reserve Bank Of Richmond | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 7,200 | 3,300 |
Borrower in Custody or Unsecured and Secured Commercial Lines | ||
Debt Instrument [Line Items] | ||
Amount outstanding | $ 9,100 | 6,000 |
Maximum | ||
Debt Instrument [Line Items] | ||
Initial period after which debt callable | 10 years | |
Minimum | ||
Debt Instrument [Line Items] | ||
Initial period after which debt callable | 3 months | |
Advances and Security Agreement | ||
Debt Instrument [Line Items] | ||
Percentage of assets limited to maximum borrowing capacity | 30% | |
Line of credit facility, maximum borrowing capacity | $ 722,500 | $ 697,800 |
Guaranteed Preferred Benefici_2
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 15, 2005 | Jul. 22, 2004 | Dec. 31, 2022 | |
Capital Trust I I | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 5 | ||
Additional amount contributed to purchase debt | 0.2 | ||
Junior subordinated notes purchased | $ 5.2 | ||
Capital Trust I | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 7 | ||
Additional amount contributed to purchase debt | 0.2 | ||
Junior subordinated notes purchased | $ 7.2 | ||
London Interbank Offered Rate (LIBOR) | Capital Trust I I | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.70% | ||
London Interbank Offered Rate (LIBOR) | Capital Trust I | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.60% |
Subordinated Notes (Details)
Subordinated Notes (Details) - USD ($) $ in Thousands | Oct. 14, 2020 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Subordinated notes | $ 19,566 | $ 19,510 | |
Fixed 4.75% to Floating Rate Notes, Due 2030 | |||
Debt Instrument [Line Items] | |||
Subordinated notes | $ 20,000 | ||
Interest rate | 4.75% | ||
Fixed 4.75% to Floating Rate Notes, Due 2030 | Minimum | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 500 | $ 56 | $ 56 |
Fixed 4.75% to Floating Rate Notes, Due 2030 | Federal Home Loan Bank of New York | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 4.58% |
Regulatory Capital (Narrative)
Regulatory Capital (Narrative) (Details) | Dec. 31, 2022 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Common equity Tier 1 capital to risk-weighted assets minimum ratio | 4.50% |
Total Capital to risk-weighted assets | 0.080 |
Tier 1 leverage ratio | 0.040 |
Maximum | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Minimum ratio of Tier 1 capital to risk-weighted assets | 0.060 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Regulatory Assets | ||
Common equity | $ 187,011 | $ 208,133 |
Goodwill | (10,835) | (10,835) |
Core deposit intangible (net of deferred tax liability) | (477) | (766) |
AOCI (gains) losses | 43,092 | 1,952 |
Common Equity Tier 1 Capital | 218,791 | 198,484 |
Junior Subordinated Notes | 12,000 | 12,000 |
Tier 1 Capital | 230,791 | 210,484 |
Allowable reserve for credit losses and other Tier 2 adjustments | 23,303 | 18,468 |
Subordinated notes | 19,566 | 19,510 |
Tier 2 Capital | 273,660 | 248,462 |
Risk-Weighted Assets ("RWA") | 1,943,516 | 1,665,296 |
Average Assets ("AA") | $ 2,404,643 | $ 2,281,210 |
Common Tier 1 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 7% | |
Common Tier 1 Capital to RWA | 11.26% | 11.92% |
Tier 1 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 8.50% | |
Tier 1 Capital to RWA | 0.1187 | 0.1264 |
Tier 2 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 10.50% | |
Tier 2 Capital to RWA | 14.08% | 14.92% |
Tier 1 capital to AA (leverage) | 0.0960 | 0.0923 |
Tier one leverage capital required to be well capitalized to average assets | 0.0500 | |
Bank | ||
Regulatory Assets | ||
Common equity | $ 216,408 | $ 236,561 |
Goodwill | (10,835) | (10,835) |
Core deposit intangible (net of deferred tax liability) | (477) | (766) |
AOCI (gains) losses | 43,092 | 1,952 |
Common Equity Tier 1 Capital | 248,188 | 226,912 |
Tier 1 Capital | 248,188 | 226,912 |
Allowable reserve for credit losses and other Tier 2 adjustments | 23,303 | 18,468 |
Tier 2 Capital | 271,491 | 245,380 |
Risk-Weighted Assets ("RWA") | 1,941,922 | 1,663,831 |
Average Assets ("AA") | $ 2,403,268 | $ 2,279,835 |
Common Tier 1 Capital to RWA | 12.78% | 13.64% |
Tier 1 Capital to RWA | 0.1278 | 0.1364 |
Tier 2 Capital to RWA | 13.98% | 14.75% |
Tier 1 capital to AA (leverage) | 0.1033 | 0.0995 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income "(AOCI)" (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 208,133 | $ 198,013 |
Other comprehensive income | ||
Balance at the end of the period | 187,011 | 208,133 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,952) | 4,504 |
Other comprehensive income | ||
Other comprehensive losses, net of tax before reclassifications | (41,140) | (6,889) |
Amounts reclassified from accumulated other comprehensive gain | 0 | 433 |
Net other comprehensive loss | (41,140) | (6,456) |
Balance at the end of the period | $ (43,092) | $ (1,952) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income "(AOCI)" (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Gain on sale of AFS securities | $ 0 | $ 0.6 |
Earnings Per Share ("EPS") (Sch
Earnings Per Share ("EPS") (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net Income | $ 28,317 | $ 25,886 |
Average number of common shares outstanding (in shares) | 5,652,189 | 5,788,003 |
Dilutive effect of common stock equivalents (in shares) | 7,440 | 9,522 |
Average number of shares used to calculate diluted EPS (in shares) | 5,659,629 | 5,797,525 |
Anti-dilutive shares (in shares) | 528 | 0 |
Basic (in dollars per share) | $ 5.01 | $ 4.47 |
Diluted (in dollars per share) | $ 5 | $ 4.47 |
Income Taxes (Schedule of Alloc
Income Taxes (Schedule of Allocation of Federal and State Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current | ||
Federal | $ 7,933 | $ 5,500 |
State | 2,077 | 2,065 |
Current income tax expense (benefit), total | 10,010 | 7,565 |
Deferred | ||
Federal | (274) | 949 |
State | (152) | 202 |
Deferred income tax expense (benefit), total | (426) | 1,151 |
Income tax expense | $ 9,584 | $ 8,716 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Amount | ||
Expected income tax expense at federal tax rate | $ 7,959 | $ 7,267 |
State taxes net of federal benefit | 1,645 | 1,631 |
Nondeductible expenses | 262 | 71 |
Nontaxable income | (437) | (411) |
Other | 155 | 158 |
Income tax expense | $ 9,584 | $ 8,716 |
Percent of Pre-Tax Income | ||
Expected income tax expense at federal tax rate | 21% | 21% |
State taxes net of federal benefit | 4.34% | 4.71% |
Nondeductible expenses | 0.69% | 0.21% |
Nontaxable income | (1.15%) | (1.19%) |
Other | 0.41% | 0.46% |
Total income tax expense (as a percent of pre-tax income) | 25.29% | 25.19% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Allowance for credit losses | $ 5,657 | $ 4,758 |
Deferred compensation | 3,426 | 3,509 |
Lease liability | 1,533 | 1,639 |
OREO valuation allowance & expenses | 20 | 92 |
Unrealized loss on investment securities | 15,321 | 684 |
Depreciation | 277 | 159 |
Deferred fees | 0 | 0 |
Other | 54 | 0 |
Deferred tax assets, gross | 26,288 | 10,841 |
Deferred tax liabilities | ||
Fair value adjustments for acquired assets and liabilities | 70 | 92 |
FHLB stock dividends | 98 | 102 |
Unrealized gain on investment securities | 0 | 0 |
Right of use asset | 1,463 | 1,582 |
Other | 0 | 32 |
Deferred tax liabilities, gross | 1,631 | 1,808 |
Net deferred tax assets | $ 24,657 | $ 9,033 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Contingency [Line Items] | ||
Allowance for credit losses | $ 5,657 | $ 4,758 |
Deferred income tax recognized | 0 | 0 |
Unrecorded income tax liability from bad debt deductions | 300 | 300 |
Retained Earnings | ||
Income Tax Contingency [Line Items] | ||
Allowance for credit losses | $ 1,200 | $ 1,200 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) metric shares | Dec. 31, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance metrics period | 3 years | |
Performance metric, average return on average assets | 3 years | |
Performance metrics, average return on average equity | 3 years | |
Fair value of RSU and PSU awards vested in the period | $ 0.5 | $ 0.3 |
2015 Equity Compensation Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | shares | 400,000 | |
Restricted Stock, Restricted Stock Units and Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 0.9 | 0.8 |
Unrecognized stock compensation expense | $ 0.7 | $ 1.1 |
Weighted average period | 1 year 5 months 19 days | |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Number of performance metrics | metric | 2 | |
Minimum | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Minimum | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
Maximum | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 5 years | |
Maximum | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock | ||
Number of Shares | ||
Beginning period, nonvested number of shares (in shares) | 6,906 | 14,130 |
Shares granted (in shares) | 1,683 | 0 |
Shares vested (in shares) | (4,016) | (7,019) |
Shares cancelled (in shares) | (37) | (205) |
Ending period, nonvested number of shares (in shares) | 4,536 | 6,906 |
Weighted Average Grant Date Fair Value | ||
Beginning period, weighted average grant date fair value (in dollars per share) | $ 32.81 | $ 32.77 |
Weighted average grant date fair value, granted (in dollars per share) | 38.48 | 0 |
Weighted average grant date fair value, vested (in dollars per share) | $ 32.53 | $ 34.61 |
Weighted average grant date fair value, cancelled (in dollars per share) | 33.52 | 32.44 |
Ending period, weighted average grant date fair value (in dollars per share) | $ 35.29 | $ 32.81 |
Restricted Stock Units | ||
Number of Shares | ||
Beginning period, nonvested number of shares (in shares) | 27,652 | 19,161 |
Shares granted (in shares) | 12,163 | 18,198 |
Shares vested (in shares) | (13,293) | (9,333) |
Shares cancelled (in shares) | (1,866) | (374) |
Ending period, nonvested number of shares (in shares) | 24,656 | 27,652 |
Weighted Average Grant Date Fair Value | ||
Beginning period, weighted average grant date fair value (in dollars per share) | $ 26.22 | $ 24.06 |
Weighted average grant date fair value, granted (in dollars per share) | 38.66 | 27.13 |
Weighted average grant date fair value, vested (in dollars per share) | $ 27.81 | $ 23.61 |
Weighted average grant date fair value, cancelled (in dollars per share) | 26.23 | 24.60 |
Ending period, weighted average grant date fair value (in dollars per share) | $ 31.50 | $ 26.22 |
Performance Stock Units | ||
Number of Shares | ||
Beginning period, nonvested number of shares (in shares) | 16,809 | 8,482 |
Shares granted (in shares) | 3,128 | 8,327 |
Shares vested (in shares) | 0 | 0 |
Shares cancelled (in shares) | (3,393) | 0 |
Ending period, nonvested number of shares (in shares) | 16,544 | 16,809 |
Weighted Average Grant Date Fair Value | ||
Beginning period, weighted average grant date fair value (in dollars per share) | $ 23.61 | $ 22.64 |
Weighted average grant date fair value, granted (in dollars per share) | 40.48 | 24.60 |
Weighted average grant date fair value, vested (in dollars per share) | $ 0 | $ 0 |
Weighted average grant date fair value, cancelled (in dollars per share) | 24.60 | 0 |
Ending period, weighted average grant date fair value (in dollars per share) | $ 26.60 | $ 23.61 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee Stock Ownership Plan (ESOP), cash contributions to ESOP | $ 200,000 | $ 100,000 | |
Employee Stock Ownership Plan (ESOP), number of allocated shares (in shares) | 119,094 | 122,831 | |
Employee Stock Ownership Plan (ESOP), number of unallocated shares (in shares) | 4,845 | 8,995 | |
Employee Stock Ownership Plan (ESOP), allocated shares market value | $ 200,000 | $ 400,000 | |
Employee Stock Ownership Plan (ESOP), allocated excess of fair market value of leveraged ESOP shares released | $ 15,000 | $ 2,000 | |
Employee Stock Ownership Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan requisite service period | 1 year | ||
Award vesting period | 3 years | ||
Share Price (in dollars per share) | $ 39.90 | $ 39.31 | |
Promissory notes | $ 200,000 | $ 300,000 | |
Employee Stock Ownership Plan (ESOP) promissory note amortization period | 7 years | ||
Employee Stock Ownership Plan (ESOP), Employer cash payments used for debt service | $ 100,000 | $ 100,000 | |
Employee Stock Ownership Plan (ESOP), debt structure direct loan employer shares used for debt service (in shares) | 4,150 | 4,150 | |
Employee Stock Ownership Plan (ESOP), debt structure offset by purchase of common shares (in shares) | 0 | ||
Prime Rate | Employee Stock Ownership Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee Stock Ownership Plan (ESOP) basis spread on variable rate | 1% | ||
401 (K) Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum employee contribution employer will match | 8% | 8% | 8% |
Minimim period of service | 6 months | ||
Period of service eligible for vesting | 3 years | ||
Retirement plan expense | $ 500,000 | $ 500,000 | |
Nonqualified Retirement Plan For Non Employee Directors | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan requisite service period | 15 years | ||
Award vesting period | 2 years | ||
Retirement plan expense | $ 15,000 | 0 | |
Liability | 1,500,000 | 2,400,000 | |
Contributions by employer | 136,000 | ||
Maximum annual benefit following retirement (in dollars per employee) | $ 3,500 | ||
Number of years following retirement benefit is paid | 10 years | ||
Individual Supplemental Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement plan expense | $ 600,000 | $ 600,000 | |
Number of years following retirement benefit is paid | 15 years | ||
Minimum | Nonqualified Retirement Plan For Non Employee Directors | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Period for distribution of deferred amount | 1 year | ||
Maximum | Nonqualified Retirement Plan For Non Employee Directors | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Period for distribution of deferred amount | 10 years |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Line of credit facility, commitment amount | $ 44.9 | $ 64.4 |
Letters of credit outstanding, amount | 25 | 22 |
Amounts available under lines of credit | $ 278.1 | $ 241.7 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Director | Legal Services | ||
Related Party Transaction [Line Items] | ||
Expenses from transactions with related party | $ 118 | $ 113 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | $ 462,746 | $ 497,839 | |
CRA investment fund | 4,286 | 4,772 | |
Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate lock commitments | 0 | 28 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Level 1 | Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate lock commitments | 0 | ||
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 462,746 | 497,839 | |
Level 2 | Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate lock commitments | 0 | ||
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Level 3 | Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate lock commitments | 28 | ||
U.S. Agency | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 12,356 | 14,304 | |
Residential CMOs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 12,206 | 221 | |
Student loan trust ABSs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 47,312 | 56,574 | |
Municipal bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 79,618 | 92,841 | |
Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 4,404 | ||
U.S. government obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 33,767 | 16,860 | |
CRA investment fund | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
CRA investment fund | 4,286 | 4,772 | |
CRA investment fund | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
CRA investment fund | 0 | 0 | |
CRA investment fund | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
CRA investment fund | 4,286 | 4,772 | |
CRA investment fund | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
CRA investment fund | 0 | 0 | |
Other equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
CRA investment fund | 207 | 207 | |
Other equity securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
CRA investment fund | 0 | 0 | |
Other equity securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
CRA investment fund | 207 | 207 | |
Other equity securities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
CRA investment fund | 0 | 0 | |
Interest rate lock commitments | Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate lock commitments | 28 | ||
Interest rate lock commitments | Level 1 | Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate lock commitments | 0 | ||
Interest rate lock commitments | Level 2 | Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate lock commitments | 0 | ||
Interest rate lock commitments | Level 3 | Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate lock commitments | 28 | ||
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 462,746 | 497,839 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 462,746 | 497,839 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | MBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 113,670 | 119,916 | |
Fair Value, Measurements, Recurring | MBS | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | MBS | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 113,670 | 119,916 | |
Fair Value, Measurements, Recurring | MBS | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | CMOs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 159,413 | 197,123 | |
Fair Value, Measurements, Recurring | CMOs | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | CMOs | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 159,413 | 197,123 | |
Fair Value, Measurements, Recurring | CMOs | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | U.S. Agency | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 12,356 | 14,304 | |
Fair Value, Measurements, Recurring | U.S. Agency | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | U.S. Agency | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 12,356 | 14,304 | |
Fair Value, Measurements, Recurring | U.S. Agency | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Residential CMOs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 12,206 | 221 | |
Fair Value, Measurements, Recurring | Residential CMOs | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Residential CMOs | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 12,206 | 221 | |
Fair Value, Measurements, Recurring | Residential CMOs | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Student loan trust ABSs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 47,312 | $ 56,574 | |
Fair Value, Measurements, Recurring | Student loan trust ABSs | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Student loan trust ABSs | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 47,312 | 56,574 | |
Fair Value, Measurements, Recurring | Student loan trust ABSs | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | $ 0 | |
Fair Value, Measurements, Recurring | Municipal bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 79,618 | 92,841 | |
Fair Value, Measurements, Recurring | Municipal bonds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Municipal bonds | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 79,618 | 92,841 | |
Fair Value, Measurements, Recurring | Municipal bonds | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 4,404 | ||
Fair Value, Measurements, Recurring | Corporate bonds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | ||
Fair Value, Measurements, Recurring | Corporate bonds | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 4,404 | ||
Fair Value, Measurements, Recurring | Corporate bonds | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | ||
Fair Value, Measurements, Recurring | U.S. government obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 33,767 | 16,860 | |
Fair Value, Measurements, Recurring | U.S. government obligations | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | U.S. government obligations | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | 33,767 | 16,860 | |
Fair Value, Measurements, Recurring | U.S. government obligations | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale ("AFS"), at fair value | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Loans with impairment, unpaid principal | $ 0.1 | $ 0.3 |
Fair Value Measurements (Unobse
Fair Value Measurements (Unobservable Inputs Used in Level 3 Fair Value Measurements) (Details) - Level 3 - Interest rate lock commitments $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value disclosure of assets | $ 28 |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs discount rate one | 0% |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs discount rate one | (100.00%) |
Weighted Average | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs discount rate one | (75.00%) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Securities available for sale ("AFS"), at fair value | $ 462,746 | $ 497,839 |
Equity securities carried at fair value through income | 4,286 | 4,772 |
Non-marketable equity securities in other financial institutions | 207 | 207 |
FHLB Stock | 4,584 | 1,472 |
Net loans receivable | 1,743,574 | 1,578,032 |
Accrued Interest Receivable | 8,335 | 5,588 |
Investment in BOLI | 39,802 | 38,932 |
Liabilities | ||
Savings, NOW and money market accounts | 1,741,401 | 1,728,743 |
Time deposits | 346,261 | 328,083 |
Short-term borrowings | 79,087 | |
Long-term debt | 12,391 | |
TRUPs | 10,296 | 11,589 |
Subordinated notes | 18,745 | 20,979 |
Interest rate lock commitments | ||
Assets | ||
Derivative asset | 0 | 28 |
Level 1 | ||
Assets | ||
Securities available for sale ("AFS"), at fair value | 0 | 0 |
Equity securities carried at fair value through income | 0 | 0 |
Non-marketable equity securities in other financial institutions | 0 | 0 |
FHLB Stock | 0 | 0 |
Net loans receivable | 0 | 0 |
Accrued Interest Receivable | 0 | 0 |
Investment in BOLI | 0 | 0 |
Liabilities | ||
Savings, NOW and money market accounts | 0 | 0 |
Time deposits | 0 | 0 |
Long-term debt | 0 | |
TRUPs | 0 | 0 |
Subordinated notes | 0 | 0 |
Level 1 | Interest rate lock commitments | ||
Assets | ||
Derivative asset | 0 | |
Level 2 | ||
Assets | ||
Securities available for sale ("AFS"), at fair value | 462,746 | 497,839 |
Equity securities carried at fair value through income | 4,286 | 4,772 |
Non-marketable equity securities in other financial institutions | 207 | 207 |
FHLB Stock | 4,584 | 1,472 |
Net loans receivable | 0 | 0 |
Accrued Interest Receivable | 8,335 | 5,588 |
Investment in BOLI | 39,802 | 38,932 |
Liabilities | ||
Savings, NOW and money market accounts | 1,741,401 | 1,728,743 |
Time deposits | 346,261 | 328,083 |
Short-term borrowings | 79,087 | |
Long-term debt | 12,391 | |
TRUPs | 10,296 | 11,589 |
Subordinated notes | 18,745 | 20,979 |
Level 2 | Interest rate lock commitments | ||
Assets | ||
Derivative asset | 0 | |
Level 3 | ||
Assets | ||
Securities available for sale ("AFS"), at fair value | 0 | 0 |
Equity securities carried at fair value through income | 0 | 0 |
Non-marketable equity securities in other financial institutions | 0 | 0 |
FHLB Stock | 0 | 0 |
Net loans receivable | 1,743,574 | 1,578,032 |
Accrued Interest Receivable | 0 | 0 |
Investment in BOLI | 0 | 0 |
Liabilities | ||
Savings, NOW and money market accounts | 0 | 0 |
Time deposits | 0 | 0 |
Long-term debt | 0 | |
TRUPs | 0 | 0 |
Subordinated notes | 0 | 0 |
Level 3 | Interest rate lock commitments | ||
Assets | ||
Derivative asset | 28 | |
Carrying Amount | ||
Assets | ||
Securities available for sale ("AFS"), at fair value | 462,746 | 497,839 |
Equity securities carried at fair value through income | 4,286 | 4,772 |
Non-marketable equity securities in other financial institutions | 207 | 207 |
FHLB Stock | 4,584 | 1,472 |
Net loans receivable | 1,798,517 | 1,586,791 |
Accrued Interest Receivable | 8,335 | 5,588 |
Investment in BOLI | 39,802 | 38,932 |
Liabilities | ||
Savings, NOW and money market accounts | 1,741,401 | 1,728,743 |
Time deposits | 347,062 | 327,421 |
Short-term borrowings | 79,000 | |
Long-term debt | 12,231 | |
TRUPs | 12,000 | 12,000 |
Subordinated notes | $ 19,566 | 19,510 |
Carrying Amount | Interest rate lock commitments | ||
Assets | ||
Derivative asset | $ 28 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, All Other Investments [Abstract] | ||
Loans commitments outstanding | $ 44.9 | $ 64.4 |
Letters of credit outstanding, amount | 25 | 22 |
Amounts available under lines of credit | $ 278.1 | $ 241.7 |
Condensed Financial Statement_3
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Balance Sheet) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Other assets | $ 2,713 | $ 3,600 | |
Total Assets | 2,410,017 | 2,327,306 | |
Liabilities and Stockholders' Equity | |||
Guaranteed preferred beneficial interest in junior subordinated debentures | 12,000 | 12,000 | |
Subordinated notes - 4.75%, net of debt issuance costs | 19,566 | 19,510 | |
Total Liabilities | 2,223,006 | 2,119,173 | |
Stockholders' Equity | |||
Common stock - par value $0.01; authorized - 15,000,000 shares; issued 5,648,435 and 5,718,528 shares, respectively | 56 | 57 | |
Additional paid in capital | 97,986 | 96,896 | |
Retained earnings | 132,235 | 113,448 | |
Accumulated other comprehensive loss | (43,092) | (1,952) | |
Unearned ESOP shares | (174) | (316) | |
Total Stockholders' Equity | 187,011 | 208,133 | $ 198,013 |
Total Liabilities and Stockholders' Equity | $ 2,410,017 | 2,327,306 | |
Subordinated Debt | |||
Liabilities and Stockholders' Equity | |||
Subordinated notes interest rate | 4.75% | ||
Parent Company | |||
Assets | |||
Non interest bearing cash | $ 2,433 | 3,097 | |
Investment in wholly-owned subsidiaries | 216,780 | 236,933 | |
Other assets | 1,222 | 1,092 | |
Total Assets | 220,435 | 241,122 | |
Liabilities and Stockholders' Equity | |||
Current liabilities | 1,486 | 1,107 | |
Guaranteed preferred beneficial interest in junior subordinated debentures | 12,372 | 12,372 | |
Subordinated notes - 4.75%, net of debt issuance costs | 19,566 | 19,510 | |
Total Liabilities | 33,424 | 32,989 | |
Stockholders' Equity | |||
Common stock - par value $0.01; authorized - 15,000,000 shares; issued 5,648,435 and 5,718,528 shares, respectively | 56 | 57 | |
Additional paid in capital | 97,986 | 96,896 | |
Retained earnings | 132,235 | 113,448 | |
Accumulated other comprehensive loss | (43,092) | (1,952) | |
Unearned ESOP shares | (174) | (316) | |
Total Stockholders' Equity | 187,011 | 208,133 | |
Total Liabilities and Stockholders' Equity | $ 220,435 | $ 241,122 | |
Parent Company | Subordinated Debt | |||
Liabilities and Stockholders' Equity | |||
Subordinated notes interest rate | 4.75% |
Condensed Financial Statement_4
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Income Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Income Statements, Captions [Line Items] | ||
Interest expense | $ 9,182 | $ 4,125 |
Net Interest Income | 73,525 | 66,434 |
Income before income taxes | 37,901 | 34,602 |
Federal and state income tax benefit | (9,584) | (8,716) |
Net Income | 28,317 | 25,886 |
Parent Company | ||
Condensed Income Statements, Captions [Line Items] | ||
Dividends from subsidiary | 10,000 | 3,500 |
Interest income | 28 | 28 |
Interest expense | 1,497 | 1,305 |
Net Interest Income | 8,531 | 2,223 |
Miscellaneous expenses | (3,505) | (2,531) |
Income before income taxes | 5,026 | (308) |
Federal and state income tax benefit | 914 | 822 |
Equity in undistributed net income of subsidiary | 22,377 | 25,372 |
Net Income | $ 28,317 | $ 25,886 |
Condensed Financial Statement_5
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Cash Flow Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net income | $ 28,317 | $ 25,886 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Stock based compensation | 858 | 761 |
(Increase) decrease in other assets | 842 | (935) |
Decrease in deferred income tax benefit | (426) | 1,151 |
Net Cash Provided by Operating Activities | 35,425 | 33,217 |
Cash Flows from Investing Activities | ||
Net Cash Used in Investing Activities | (241,508) | (256,046) |
Cash Flows from Financing Activities | ||
Dividends paid | (3,753) | (3,170) |
Net change in unearned ESOP shares | 142 | 143 |
Repurchase of common stock | (3,555) | (7,046) |
Net Cash Used by Financing Activities | 91,902 | 285,418 |
(Decrease) increase in Cash and Cash Equivalents | (114,181) | 62,589 |
Parent Company | ||
Cash Flows from Operating Activities | ||
Net income | 28,317 | 25,886 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Equity in undistributed earnings of subsidiary | (22,377) | (25,372) |
Amortization of debt issuance costs | 56 | (16) |
Stock based compensation | 260 | 260 |
(Increase) decrease in other assets | (140) | 316 |
Decrease in deferred income tax benefit | 7 | 15 |
Increase in current liabilities | 379 | 5 |
Net Cash Provided by Operating Activities | 6,502 | 1,094 |
Cash Flows from Investing Activities | ||
Net Cash Used in Investing Activities | 0 | 0 |
Cash Flows from Financing Activities | ||
Dividends paid | (3,753) | (3,170) |
Net change in unearned ESOP shares | 142 | 143 |
Repurchase of common stock | (3,555) | (7,046) |
Net Cash Used by Financing Activities | (7,166) | (10,073) |
(Decrease) increase in Cash and Cash Equivalents | (664) | (8,979) |
Cash at Beginning of Year | 3,097 | 12,076 |
Cash at End of Year | $ 2,433 | $ 3,097 |