|
|
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
||
Title of Each Class
|
Trading
Symbol (s)
|
Name of Each Exchange
on Which Registered
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|
Smaller reporting company
|
Emerging growth company
|
PAGE
|
||
Part I
|
FINANCIAL INFORMATION
|
|
Item 1.
|
Financial Statements (unaudited):
|
|
1
|
||
2
|
||
3 | ||
4 | ||
5 |
||
6-33
|
||
Item 2.
|
34-58
|
|
Item 3.
|
58
|
|
Item 4.
|
58-59
|
|
Part II
|
OTHER INFORMATION
|
|
Item 1.
|
59 | |
Item 1A.
|
59 | |
Item 2.
|
59 | |
Item 3.
|
59 | |
Item 4.
|
60 |
|
Item 5.
|
60 |
|
Item 6.
|
60
|
|
61 |
(in thousands except share data)
|
June 30,
2024
|
December 31,
2023
|
||||||
ASSETS:
|
||||||||
Cash and due from banks:
|
||||||||
Noninterest-bearing
|
$
|
|
$
|
|
||||
Interest-bearing
|
|
|
||||||
Total cash and cash equivalents
|
|
|
||||||
Interest bearing time deposits with other banks
|
|
|
||||||
Equity securities
|
|
|
||||||
Available-for-sale securities
|
|
|
||||||
Loans held for sale
|
|
|
||||||
Loans (net of allowance for credit losses: 2024 $
|
|
|
||||||
|
||||||||
Premises and equipment
|
|
|
||||||
Accrued interest receivable
|
|
|
||||||
Goodwill
|
|
|
||||||
Bank owned life insurance
|
|
|
||||||
Other intangibles
|
|
|
||||||
Fair value of derivative instruments |
||||||||
Deferred tax asset |
||||||||
Other assets
|
|
|
||||||
TOTAL ASSETS
|
$
|
|
$
|
|
||||
|
||||||||
LIABILITIES:
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$
|
|
$
|
|
||||
Interest-bearing
|
|
|
||||||
Total deposits
|
|
|
||||||
Borrowed funds
|
|
|
||||||
Accrued interest payable
|
|
|
||||||
Fair value of derivative instruments - liability |
||||||||
Other liabilities
|
|
|
||||||
TOTAL LIABILITIES
|
|
|
||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Preferred Stock | ||||||||
$
|
|
|
||||||
Common stock | ||||||||
$
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Treasury stock, at cost:
|
(
|
)
|
(
|
)
|
||||
TOTAL STOCKHOLDERS’ EQUITY
|
|
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
|
$ |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(in thousands, except share and per share data)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
INTEREST INCOME:
|
||||||||||||||||
Interest and fees on loans
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest-bearing deposits with banks
|
|
|
|
|
||||||||||||
Investment securities:
|
||||||||||||||||
Taxable
|
|
|
|
|
||||||||||||
Nontaxable
|
|
|
|
|
||||||||||||
Dividends
|
|
|
|
|
||||||||||||
TOTAL INTEREST INCOME
|
|
|
|
|
||||||||||||
INTEREST EXPENSE:
|
||||||||||||||||
Deposits
|
|
|
|
|
||||||||||||
Borrowed funds
|
|
|
|
|
||||||||||||
TOTAL INTEREST EXPENSE
|
|
|
|
|
||||||||||||
NET INTEREST INCOME
|
|
|
|
|
||||||||||||
Provision for credit losses
|
|
|
|
|
||||||||||||
Provision for credit losses - acquisition day 1 non-PCD
|
||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
|
|
|
|
|
||||||||||||
NON-INTEREST INCOME:
|
||||||||||||||||
Service charges
|
|
|
|
|
||||||||||||
Trust
|
|
|
|
|
||||||||||||
Brokerage and insurance
|
|
|
|
|
||||||||||||
Gains on loans sold
|
|
|
|
|
||||||||||||
Equity security losses, net
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Available for sale security losses, net | ( |
) | ( |
) | ||||||||||||
Gain on sale of Braavo division
|
|
|
|
|
||||||||||||
Earnings on bank owned life insurance
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
TOTAL NON-INTEREST INCOME
|
|
|
|
|
||||||||||||
NON-INTEREST EXPENSES:
|
||||||||||||||||
Salaries and employee benefits
|
|
|
|
|
||||||||||||
Occupancy
|
|
|
|
|
||||||||||||
Furniture and equipment
|
|
|
|
|
||||||||||||
Professional fees
|
|
|
|
|
||||||||||||
FDIC insurance
|
|
|
|
|
||||||||||||
Pennsylvania shares tax
|
|
|
|
|
||||||||||||
Amortization of intangibles
|
|
|
|
|
||||||||||||
Merger and acquisition |
||||||||||||||||
Software expenses
|
|
|
|
|
||||||||||||
ORE expenses (recoveries)
|
|
(
|
)
|
|
|
|||||||||||
Other
|
|
|
|
|
||||||||||||
TOTAL NON-INTEREST EXPENSES
|
|
|
|
|
||||||||||||
Income (loss) before provision (benefit) for income taxes
|
|
(
|
)
|
|
|
|||||||||||
Provision (benefit) for income taxes
|
|
(
|
)
|
|
|
|||||||||||
NET INCOME (LOSS)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||
PER COMMON SHARE DATA:
|
||||||||||||||||
Net Income (Loss) - Basic
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||
Net Income (Loss) - Diluted
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||
Cash Dividends Paid
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Number of shares used in computation - basic
|
|
|
|
|
||||||||||||
Number of shares used in computation - diluted
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended,
June 30,
|
|||||||||||||||
(in thousands)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
Net income (loss)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||
Other comprehensive income (loss):
|
||||||||||||||||
Change in unrealized gains (losses) on available for sale securities
|
|
(
|
)
|
(
|
)
|
|
||||||||||
Income tax effect
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Change in unrecognized pension cost
|
|
|
|
|
||||||||||||
Income tax effect
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Change in unrealized (loss) gain on interest rate swaps
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Income tax effect
|
|
(
|
)
|
|
|
|||||||||||
Less: Reclassification adjustment for investment security gains included in net income
|
||||||||||||||||
Income tax effect
|
( |
) | ( |
) | ||||||||||||
Other comprehensive income (loss), net of tax
|
|
(
|
)
|
(
|
)
|
|
||||||||||
Comprehensive income (loss)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|
Common Stock
|
Additional
Paid-in
|
Retained |
Accumulated
Other
Comprehensive
|
Treasury | |||||||||||||||||||||||
(in thousands, except share data)
|
Shares
|
Amount
|
Capital
|
Earnings
|
Income (Loss)
|
Stock
|
Total
|
|||||||||||||||||||||
Balance, March 31, 2024
|
|
$ |
|
$ |
|
$ |
|
$ |
(
|
)
|
$ |
(
|
)
|
$ |
|
|||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
|
|
||||||||||||||||||||||||||
Net other comprehensive income
|
|
|
||||||||||||||||||||||||||
Stock dividend | ( |
) | ||||||||||||||||||||||||||
Purchase of treasury stock (
|
( |
) | ( |
) | ||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards (
|
( |
) | ||||||||||||||||||||||||||
Restricted stock vesting |
||||||||||||||||||||||||||||
Cash dividends, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
Balance, June 30, 2024
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Balance, December 31, 2023
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
|
||||||||||||||||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
|
|
||||||||||||||||||||||||||
Net other comprehensive loss
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
Stock dividend | ( |
) | ||||||||||||||||||||||||||
Purchase of treasury stock ( |
( |
) | ( |
) | ||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards (
|
(
|
)
|
|
|||||||||||||||||||||||||
Restricted stock vesting
|
|
|
||||||||||||||||||||||||||
Cash dividends, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
Balance, June 30, 2024
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Balance, March 31, 2023
|
|
|
|
|
(
|
)
|
(
|
)
|
|
|||||||||||||||||||
Comprehensive loss:
|
||||||||||||||||||||||||||||
Net loss
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
Net other comprehensive loss
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
Stock dividend | ( |
) | ||||||||||||||||||||||||||
Issuance of Common stock | ||||||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards (
|
(
|
)
|
|
|
||||||||||||||||||||||||
Restricted stock vesting
|
||||||||||||||||||||||||||||
Cash dividends, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
Balance, June 30, 2023
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Balance, December 31, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
|
|
||||||||||||||||||||||||||
Net other comprehensive income
|
|
|
||||||||||||||||||||||||||
Stock dividend | ( |
) | ||||||||||||||||||||||||||
Issuance of Common stock | ||||||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards (
|
(
|
)
|
|
|
||||||||||||||||||||||||
Restricted stock vesting
|
|
|
||||||||||||||||||||||||||
Forfeited restricted stock |
( |
) | ||||||||||||||||||||||||||
Change in Accounting policy for allowance for credit losses
|
||||||||||||||||||||||||||||
Cash dividends, $
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
Balance, June 30, 2023
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Six Months Ended
June 30,
|
||||||||
(in thousands)
|
2024
|
2023
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for credit losses
|
|
|
||||||
Depreciation and amortization
|
|
|
||||||
Amortization and accretion of loans and other assets
|
(
|
)
|
(
|
)
|
||||
Amortization and accretion of investment securities
|
|
|
||||||
Deferred income taxes
|
|
|
||||||
Investment securities losses, net
|
|
|
||||||
Earnings on bank owned life insurance
|
(
|
)
|
(
|
)
|
||||
Vesting of restricted stock
|
||||||||
Originations of loans held for sale
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of loans held for sale
|
|
|
||||||
Realized gains on loans sold
|
(
|
)
|
(
|
)
|
||||
Realized gains on sale of Braavo
|
( |
) | ||||||
Decrease in accrued interest receivable
|
|
|
||||||
Gain on sale of foreclosed assets held for sale
|
( |
) | ( |
) | ||||
Increase in accrued interest payable
|
|
|
||||||
Other, net
|
|
(
|
)
|
|||||
Net cash provided by operating activities
|
|
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Available-for-sale securities:
|
||||||||
Proceeds from sales
|
||||||||
Proceeds from maturity and principal repayments
|
|
|
||||||
Purchase of securities
|
(
|
)
|
(
|
)
|
||||
Proceeds from sale of equity securities
|
||||||||
Purchase of interest bearing time deposits with other banks
|
( |
) | ||||||
Proceeds from matured interest bearing time deposits with other banks
|
||||||||
Proceeds from life insurance
|
||||||||
Proceeds from redemption of regulatory stock
|
|
|
||||||
Purchase of regulatory stock
|
(
|
)
|
(
|
)
|
||||
Net (increase) decrease in loans
|
(
|
)
|
|
|||||
Purchase of premises and equipment
|
(
|
)
|
(
|
)
|
||||
Investments in low income housing partnerships
|
( |
) | ||||||
Proceeds from sale of foreclosed assets held for sale
|
|
|
||||||
Proceeds from sale of Braavo assets
|
||||||||
Acquisition, net of cash paid
|
||||||||
Net cash provided by investing activities
|
|
|
||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net decrease in deposits
|
(
|
)
|
(
|
)
|
||||
Proceeds from long-term borrowings
|
||||||||
Repayments of long-term borrowings
|
(
|
)
|
|
|||||
Net increase (decrease) in short-term borrowed funds
|
|
(
|
)
|
|||||
Purchase of treasury and restricted stock
|
(
|
)
|
|
|||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Net cash used by financing activities
|
(
|
)
|
(
|
)
|
||||
Net (decrease) increase in cash and cash equivalents
|
(
|
)
|
|
|||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
|
$
|
|
||||
Supplemental Disclosures of Cash Flow Information:
|
||||||||
Interest paid
|
$
|
|
$
|
|
||||
Income taxes paid
|
$
|
|
$
|
|
||||
Loans transferred to foreclosed property
|
$ | $ | ||||||
Right of use asset and liability
|
$ | $ | ||||||
Stock Dividend
|
$ | $ | ||||||
CECL adjustment
|
$ | $ |
Acquisition of
|
HV Bancorp, Inc.
|
|||||||
Non-cash assets acquired
|
||||||||
Available-for-sale securities
|
$
|
|
||||||
Interest bearing time deposits with other banks
|
|
|||||||
Loans held for sale
|
|
|||||||
Loans
|
|
|||||||
Premises and equipment
|
|
|||||||
Accrued interest receivable
|
|
|||||||
Bank owned life insurance
|
|
|||||||
Intangibles
|
|
|||||||
Deferred tax asset
|
|
|||||||
Other assets
|
|
|||||||
Goodwill
|
|
|||||||
|
||||||||
Liabilities assumed
|
||||||||
Noninterest-bearing deposits
|
|
|||||||
Interest-bearing deposits
|
|
|||||||
Accrued interest payable
|
|
|||||||
Borrowed funds
|
|
|||||||
Other liabilities
|
|
|||||||
|
||||||||
Net non-cash assets acquired
|
|
|||||||
Cash and cash equivalents acquired
|
$
|
|
January 1, 2023
|
||||||||||||
Pre-adoption
|
Adoption Impact
|
As Reported
|
||||||||||
Assets
|
||||||||||||
Allowance for credit losses - loans
|
||||||||||||
Real estate loans:
|
||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
||||||
Commercial
|
|
(
|
)
|
|
||||||||
Agricultural
|
|
(
|
)
|
|
||||||||
Construction
|
|
(
|
)
|
|
||||||||
Consumer
|
|
|
|
|||||||||
Other commercial loans
|
|
(
|
)
|
|
||||||||
Other agricultural loans
|
|
(
|
)
|
|
||||||||
State and political subdivision loans
|
|
(
|
)
|
|
||||||||
Unallocated
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Liabilities
|
||||||||||||
Allowance for Credit Losses - Off-Balance Sheet credit Exposure
|
$
|
|
$
|
|
$
|
|
• |
Service charges on deposit accounts – The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled
at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to
specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. All of these fees are attributable to specific
performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction.
|
• |
Trust fees – Typical contracts for trust services are based on a fixed percentage of the assets earned ratably over a defined period and billed on a monthly basis. Fees charged to
customers’ accounts are recognized as revenue over the period during which the Company fulfills its performance obligation under the contract (i.e., holding client asset in a managed fiduciary trust account). For these accounts, the
performance obligation of the Company is typically satisfied by holding and managing the customer’s assets over time. Other fees related to specific customer requests are attributable to specific performance obligations of the Company where
the revenue is recognized at a defined point in time, upon completion of the requested service/transaction.
|
• |
Gains and losses on sale of other real estate owned – Gains and losses are recognized at the completion of the property sale when the buyer obtains control of the real estate and all
of the performance obligations of the Company have been satisfied. Evidence of the buyer obtaining control of the asset include transfer of the property title, physical possession of the asset, and the buyer obtaining control of the risks and
rewards related to the asset. In situations where the Company agrees to provide financing to facilitate the sale, additional analysis is performed to ensure that the contract for sale identifies the buyer and seller, the asset to be
transferred, payment terms, and that the contract has a true commercial substance and that collection of amounts due from the buyer are reasonable. In situations where financing terms are not reflective of current market terms, the
transaction price is discounted impacting the gain/loss and the carrying value of the asset.
|
• |
Brokerage and insurance – Fees includes commissions from the sales of investments and insurance products recognized on a trade date basis as the performance obligation is satisfied
at the point in time in which the trade is processed. Additional fees are based on a percentage of the market value of customer accounts and billed on a monthly or quarterly basis. The Company’s performance obligation under the contracts with
certain customers is generally satisfied through the passage of time as the Company monitors and manages the assets in the customer’s portfolio and is not dependent on certain return or performance level of the customer’s portfolio. Fees for
these services are billed monthly and are recorded as revenue at the end of the month for which the wealth management service has been performed. Other performance obligations (such as the delivery of account statements to customers) are
generally considered immaterial to the overall transaction price.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
Revenue stream
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
Service charges on deposit accounts
|
||||||||||||||||
Overdraft fees
|
$
|
|
|
|
$
|
|
$
|
|
||||||||
Statement fees
|
|
|
|
|
||||||||||||
Interchange revenue
|
|
|
|
|
||||||||||||
ATM income
|
|
|
|
|
||||||||||||
Other service charges
|
|
|
|
|
||||||||||||
Total Service Charges
|
|
|
|
|
||||||||||||
Trust
|
|
|
|
|
||||||||||||
Brokerage and insurance
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Net income (loss) applicable to common stock
|
$
|
|
$
|
(
|
) |
$
|
|
$
|
|
|||||||
Basic earnings per share computation
|
||||||||||||||||
Weighted average common shares outstanding
|
|
|
|
|
||||||||||||
Earnings (loss) per share - basic
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||
Diluted earnings per share computation
|
||||||||||||||||
Weighted average common shares outstanding for basic earnings per share
|
|
|
|
|
||||||||||||
Add: Dilutive effects of restricted stock
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding for dilutive earnings per share
|
|
|
|
|
||||||||||||
Earnings (loss) per share - diluted
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
June 30, 2024
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses |
Allowance for Credit Losses |
Fair
Value
|
|||||||||||||||
Available-for-sale securities:
|
||||||||||||||||||||
U.S. agency securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$ |
$
|
|
||||||||||
U.S. treasury securities
|
|
|
(
|
)
|
|
|||||||||||||||
Obligations of state and political subdivisions
|
|
|
(
|
)
|
|
|||||||||||||||
Corporate obligations
|
|
|
(
|
)
|
|
|||||||||||||||
Mortgage-backed securities in government sponsored entities
|
|
|
(
|
)
|
|
|||||||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$ |
$
|
|
December 31, 2023
|
||||||||||||||||||||
Available-for-sale securities:
|
||||||||||||||||||||
U.S. agency securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$ |
$
|
|
||||||||||
U.S. treasury securities
|
|
|
(
|
)
|
|
|||||||||||||||
Obligations of state and political subdivisions
|
( |
) | ||||||||||||||||||
Corporate obligations
|
|
|
(
|
)
|
|
|||||||||||||||
Mortgage-backed securities in government sponsored entities
|
( |
) | ||||||||||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$ |
$
|
|
June 30,
2024
|
Less than Twelve Months
|
Twelve Months or Greater
|
Total
|
|||||||||||||||||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||||||||||||||||
U.S. agency securities
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
||||||||||
U.S. treasury securities
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Obligations of state and political subdivisions
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Corporate obligations
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Mortgage-backed securities in government sponsored entities
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Total securities
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
December 31,
2023
|
||||||||||||||||||||||||
U.S. agency securities
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
||||||||||
U.S. treasury securities | ( |
) | ( |
) | ||||||||||||||||||||
Obligations of states and political subdivisions
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Corporate obligations | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Mortgage-backed securities in government sponsored entities
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Total securities
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Gross gains on available for sale securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Gross losses on available for sale securities
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Net losses
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
Equity securities
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
Net losses recognized in equity securities during the period
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Less: Net (losses) gains realized on the sale of equity securities during the period
|
|
|
(
|
)
|
|
|||||||||||
Net unrealized losses
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Amortized
Cost
|
Fair Value
|
|||||||
Available-for-sale debt securities:
|
||||||||
Due in one year or less
|
$
|
|
$
|
|
||||
Due after one year through five years
|
|
|
||||||
Due after five years through ten years
|
|
|
||||||
Due after ten years
|
|
|
||||||
Total
|
$
|
|
$
|
|
|
June 30,
2024
|
December 31, 2023 | ||||||
Real estate loans:
|
||||||||
Residential
|
$
|
|
$
|
|
||||
Commercial
|
|
|
||||||
Agricultural
|
|
|
||||||
Construction
|
|
|
||||||
Consumer
|
|
|
||||||
Other commercial loans
|
|
|
||||||
Other agricultural loans
|
|
|
||||||
State and political subdivision loans
|
|
|
||||||
Total
|
|
|
||||||
Allowance for credit losses - loans
|
(
|
)
|
(
|
)
|
||||
Net loans
|
$
|
|
$
|
|
June 30, 2024
|
December 31, 2023 |
|||||||
Allowance for Credit Losses - Loans
|
$
|
|
$ |
|||||
Allowance for Credit Losses - Off-Balance Sheet credit Exposure
|
|
|||||||
Total allowance for credit losses
|
$
|
|
$
|
Allowance for Credit Losses - Loans
|
Allowance for Credit Losses - Off-Balance Sheet credit Exposure
|
Total
|
||||||||||
Balance at March 31, 2024
|
$
|
|
$
|
|
$
|
|
||||||
Loans charge-off
|
(
|
)
|
-
|
(
|
)
|
|||||||
Recoveries of loans previously charged-off
|
|
-
|
|
|||||||||
Net loans charged-off
|
(
|
)
|
-
|
(
|
)
|
|||||||
Provision for credit losses
|
|
|
|
|||||||||
Balance at June 30, 2024
|
$
|
|
$
|
|
$
|
|
||||||
Balance at December 31, 2023
|
$
|
|
$
|
|
$
|
|
||||||
Loans charge-off
|
(
|
)
|
-
|
(
|
)
|
|||||||
Recoveries of loans previously charged-off
|
|
-
|
|
|||||||||
Net loans charged-off
|
(
|
)
|
-
|
(
|
)
|
|||||||
Provision for credit losses
|
|
(
|
)
|
|
||||||||
Balance at June 30, 2024
|
$
|
|
$
|
|
$
|
|
Allowance for Credit Losses - Loans
|
Allowance for Credit Losses - Off-Balance Sheet credit Exposure
|
Total
|
||||||||||
Balance at March 31, 2023
|
$
|
|
$
|
|
$
|
|
||||||
Allowance for credit loss on PCD acquired loans
|
|
|
|
|||||||||
Loans charge-off
|
(
|
)
|
-
|
(
|
)
|
|||||||
Recoveries of loans previously charged-off
|
|
-
|
|
|||||||||
Net loans charged-off
|
|
-
|
|
|||||||||
Provision for credit losses - acquisition day 1 non-PCD
|
|
-
|
|
|||||||||
Provision for credit losses
|
|
|
|
|||||||||
Balance at June 30, 2023
|
$
|
|
$
|
|
$
|
|
||||||
Balance at December 31, 2022
|
$
|
|
$
|
|
$
|
|
||||||
Impact of adopting CECL
|
(
|
)
|
|
(
|
)
|
|||||||
Allowance for credit loss on PCD acquired loans
|
|
-
|
|
|||||||||
Loans charge-off
|
(
|
)
|
-
|
(
|
)
|
|||||||
Recoveries of loans previously charged-off
|
|
-
|
|
|||||||||
Net loans charged-off
|
|
-
|
|
|||||||||
Provision for credit losses - acquisition day 1 non-PCD
|
|
-
|
|
|||||||||
Provision for credit losses
|
|
|
|
|||||||||
Balance at June 30, 2023
|
$
|
|
$
|
|
$
|
|
For the three months ended June 30, 2024
|
||||||||||||||||||||
Balance at March 31, 2024
|
Charge-offs
|
Recoveries
|
Provision
|
Balance at June 30, 2024
|
||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial
|
|
|
|
|
|
|||||||||||||||
Agricultural
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Consumer
|
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||
Other commercial loans
|
|
(
|
)
|
|
|
|
||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|||||||||||||||
State and political subdivision loans
|
|
|
|
(
|
)
|
|
||||||||||||||
Unallocated
|
|
|
|
(
|
)
|
|
||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
For the six months ended June 30, 2024
|
||||||||||||||||||||
Balance at December 31, 2023
|
Charge-offs
|
Recoveries
|
Provision
|
Balance at June 30, 2024
|
||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial
|
|
|
|
|
|
|||||||||||||||
Agricultural
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
|
|
(
|
)
|
|
||||||||||||||
Consumer
|
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||
Other commercial loans
|
|
(
|
)
|
|
|
|
||||||||||||||
Other agricultural loans
|
|
|
|
(
|
)
|
|
||||||||||||||
State and political subdivision loans
|
|
|
|
|
|
|||||||||||||||
Unallocated
|
|
|
|
(
|
)
|
|
||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
For the three months ended June 30, 2023
|
||||||||||||||||||||||||
Balance at March 31, 2023
|
Allowance for credit loss on PCD acquired loans
|
Charge-offs
|
Recoveries
|
Provision
|
Balance at June 30, 2023
|
|||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||
Commercial
|
|
|
|
|
|
|
||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||||||
Consumer
|
|
|
(
|
)
|
|
(
|
)
|
|
||||||||||||||||
Other commercial loans
|
|
|
|
|
|
|
||||||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|
||||||||||||||||||
State and political subdivision loans
|
|
|
|
|
|
|
||||||||||||||||||
Unallocated
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
For the six months ended June 30, 2023
|
||||||||||||||||||||||||||||
Balance at December 31, 2022
|
Impact of adopting CECL
|
Allowance for credit loss on PCD acquired loans
|
Charge-offs
|
Recoveries
|
Provision
|
Balance at June 30, 2023
|
||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Commercial
|
|
(
|
)
|
|
|
|
|
|
||||||||||||||||||||
Agricultural
|
|
(
|
)
|
|
|
|
|
|
||||||||||||||||||||
Construction
|
|
(
|
)
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||||||
Other commercial loans
|
|
(
|
)
|
|
|
|
|
|
||||||||||||||||||||
Other agricultural loans
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|||||||||||||||||||
State and political subdivision loans
|
|
(
|
)
|
|
|
|
|
|
||||||||||||||||||||
Unallocated
|
|
|
|
|
|
(
|
)
|
|
||||||||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
Allowance for Credit Losses - Loans
|
Loans
|
|||||||||||||||||||||||
June 30, 2024
|
Collectively evaluated
|
Individually evaluated
|
Total Allowance
for Credit
Losses - Loans
|
Collectively evaluated
|
Individually evaluated
|
Total
Loans
|
||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Consumer
|
|
|
|
|
|
|
||||||||||||||||||
Other commercial loans
|
|
|
|
|
|
|
||||||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|
||||||||||||||||||
State and political subdivision loans
|
|
|
|
|
|
|
||||||||||||||||||
Unallocated
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Allowance for Credit Losses - Loans
|
Loans
|
|||||||||||||||||||||||
December 31, 2023
|
Collectively evaluated
|
Individually evaluated
|
Total Allowance
for Credit
Losses - Loans
|
Collectively evaluated
|
Individually evaluated
|
Total Loans
|
||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Consumer
|
|
|
|
|
|
|
||||||||||||||||||
Other commercial loans
|
|
|
|
|
|
|
||||||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|
||||||||||||||||||
State and political subdivision loans
|
|
|
|
|
|
|
||||||||||||||||||
Unallocated |
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2024 | December 31, 2023 |
|||||||||||||||||||||||||||||||
Nonaccrual With a
related allowance
|
Nonaccrual Without
a related allowance
|
90 days or greater
past due and
accruing
|
Total non-performing
loans
|
Nonaccrual With a
related allowance
|
Nonaccrual Without
a related allowance
|
90 days or greater
past due and
accruing
|
Total
non-performing
loans
|
|||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
$ | $ | ||||||||||||||||||||
Home Equity
|
|
|
|
|
||||||||||||||||||||||||||||
Commercial
|
|
|
|
|
||||||||||||||||||||||||||||
Agricultural
|
|
|
|
|
||||||||||||||||||||||||||||
Construction
|
|
|
|
|
||||||||||||||||||||||||||||
Consumer
|
|
|
|
|
||||||||||||||||||||||||||||
Other commercial loans
|
|
|
|
|
||||||||||||||||||||||||||||
Other agricultural loans |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
$ | $ |
June 30, 2024 |
Real Estate
|
Business Assets
|
None
|
Total
|
||||||||||||
Real estate loans:
|
||||||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
-
|
$
|
|
||||||||
Home Equity
|
|
|
-
|
|
||||||||||||
Commercial
|
|
|
-
|
|
||||||||||||
Agricultural
|
|
|
-
|
|
||||||||||||
Construction
|
|
|
-
|
|
||||||||||||
Consumer
|
|
|
|
|
||||||||||||
Other commercial loans
|
|
|
-
|
|
||||||||||||
Other agricultural loans
|
|
|
-
|
|
||||||||||||
$
|
|
$
|
|
$ |
|
$
|
|
December 31, 2023
|
Real Estate
|
Business Assets |
None
|
Total
|
||||||||||||
Real estate loans:
|
||||||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
-
|
$
|
|
||||||||
Home Equity
|
|
|
-
|
|
||||||||||||
Commercial
|
|
|
-
|
|
||||||||||||
Agricultural
|
|
|
-
|
|
||||||||||||
Construction
|
|
|
-
|
|
||||||||||||
Consumer
|
|
|
|
|
||||||||||||
Other commercial loans
|
|
|
-
|
|
||||||||||||
Other agricultural loans
|
|
|
-
|
|
||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
• |
Pass (Grades 1-6) – These loans are to customers with credit quality ranging from an acceptable to very high quality and are protected by the current net worth and paying capacity of the obligor or by
the value of the underlying collateral.
|
• |
Special Mention (Grade 7) – This
loan grade is in accordance with regulatory guidance and includes loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.
|
• |
Substandard (Grade 8) – This
loan grade is in accordance with regulatory guidance and includes loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies
are not corrected.
|
• |
Doubtful (Grade 9) – This loan
grade is in accordance with regulatory guidance and includes loans that have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on
existing circumstances.
|
• |
Loss (Grade 10) – This loan
grade is in accordance with regulatory guidance and includes loans that are considered uncollectible, or of such value that continuance as an asset is not warranted.
|
Revolving
|
Revolving
|
|||||||||||||||||||||||||||||||||||
Loans
|
Loans
|
|||||||||||||||||||||||||||||||||||
Amortized
|
Converted
|
|||||||||||||||||||||||||||||||||||
June 30, 2024
|
2024
|
2023
|
2022
|
2021
|
2020
|
Prior
|
Cost Basis
|
to Term
|
Total
|
|||||||||||||||||||||||||||
Commercial real estate
|
||||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
||||||||||||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Agricultural real estate
|
||||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
||||||||||||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Construction
|
-
|
|||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
||||||||||||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Other commercial loans
|
-
|
|||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Other agricultural loans
|
-
|
|||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
||||||||||||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
State and political subdivision loans
|
-
|
|||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
||||||||||||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total
|
-
|
|||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Revolving
|
Revolving
|
||||||||||||||||||||||||||||||||||
|
Loans
|
Loans
|
||||||||||||||||||||||||||||||||||
|
Amortized
|
Converted
|
||||||||||||||||||||||||||||||||||
December 31, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Cost Basis
|
to Term
|
Total
|
|||||||||||||||||||||||||||
Commercial real estate
|
||||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Agricultural real estate
|
||||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Construction
|
|
|||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Other commercial loans
|
|
|||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Other agricultural loans
|
|
|||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
State and political subdivision loans
|
|
|||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total
|
|
|||||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Revolving
|
Revolving
|
|||||||||||||||||||||||||||||||||||
Loans
|
Loans
|
|||||||||||||||||||||||||||||||||||
Amortized
|
Converted
|
|||||||||||||||||||||||||||||||||||
June 30, 2024
|
2024
|
2023
|
2022
|
2021
|
2020
|
Prior
|
Cost Basis
|
to Term
|
Total
|
|||||||||||||||||||||||||||
Residential real estate
|
||||||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Home equity
|
-
|
|||||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Consumer
|
-
|
|||||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total
|
-
|
|||||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Revolving
|
Revolving
|
||||||||||||||||||||||||||||||||||
|
Loans
|
Loans
|
||||||||||||||||||||||||||||||||||
|
Amortized
|
Converted
|
||||||||||||||||||||||||||||||||||
December 31, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Cost Basis
|
to Term
|
Total
|
|||||||||||||||||||||||||||
Residential real estate
|
||||||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Home equity
|
|
|||||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Consumer
|
|
|||||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total
|
|
|||||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30,
2024
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days
Or Greater
|
Total Past
Due
|
Current
|
Total
Loans
Receivables
|
90 Days or
Greater and
Accruing
|
|||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Home Equity
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other commercial loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
State and political subdivision loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Loans considered non-accrual
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans still accruing
|
|
|
|
|
|
|
||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2023
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days
Or Greater
|
Total Past
Due
|
Current
|
Total
Loans
Receivables
|
90 Days or
Greater and
Accruing
|
|||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Home Equity
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other commercial loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
State and political subdivision loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Loans considered non-accrual
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans still accruing
|
|
|
|
|
|
|
||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2024
|
December 31, 2023
|
|||||||||||||||||||||||
Gross
carrying
value
|
Accumulated
amortization
|
Net
carrying
value
|
Gross
carrying
value
|
Accumulated
amortization
|
Net
carrying
value
|
|||||||||||||||||||
Amortized intangible assets (1):
|
||||||||||||||||||||||||
MSRs
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Core deposit intangibles
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||
Total amortized intangible assets
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Unamortized intangible assets:
|
||||||||||||||||||||||||
Goodwill
|
$
|
|
$
|
|
MSRs
|
Core deposit intangibles
|
Total
|
||||||||||
Three months ended June 30, 2024 (actual)
|
$
|
|
$
|
|
$
|
|
||||||
Six
months ended June 30, 2024
(actual)
|
|
|
|
|||||||||
Three months ended June 30, 2023 (actual)
|
|
|
|
|||||||||
Six
months ended June 30, 2023
(actual)
|
|
|
|
|||||||||
Estimate for year ending December 31,
|
||||||||||||
Remaining 2024
|
|
|
|
|||||||||
2025
|
|
|
|
|||||||||
2026
|
|
|
|
|||||||||
2027
|
|
|
|
|||||||||
2028
|
|
|
|
|||||||||
Thereafter
|
|
|
|
|||||||||
Total
|
$ |
$
|
|
$ |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
Affected line item on the Consolidated
Statement of Income
|
|||||||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
Salary and Employee Benefits
|
||||||||
Interest cost
|
|
|
|
|
Other Expenses
|
||||||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
Other Expenses
|
||||||||
Net amortization and deferral
|
|
|
|
|
Other Expenses
|
||||||||||||
Net periodic benefit cost
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Three months
|
Six months
|
|||||||||||||||
Unvested
Shares
|
Weighted
Average
Market Price
|
Unvested
Shares
|
Weighted
Average
Market Price
|
|||||||||||||
Outstanding, beginning of period
|
|
$
|
|
|
$
|
|
||||||||||
Granted
|
|
|
|
|
||||||||||||
Vested
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Outstanding, end of period
|
|
$
|
|
|
$
|
|
Three months ended June 30, 2024
|
||||||||||||||||
Unrealized gain (loss)
on available for sale
securities (a)
|
Defined Benefit
Pension Items (a)
|
Unrealized loss
on interest rate
swap (a)
|
Total
|
|||||||||||||
Balance as of March 31, 2024
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications (net of tax)
|
|
|
|
|
||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Net current period other comprehensive income (loss)
|
|
|
(
|
)
|
|
|||||||||||
Balance as of June 30,
2024
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Six months ended June 30, 2024
|
||||||||||||||||
Unrealized gain (loss)
on available for sale
securities (a)
|
Defined Benefit
Pension Items (a)
|
Unrealized loss
on interest rate
swap (a)
|
Total
|
|||||||||||||
Balance as of December 31, 2023
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications (net of tax)
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Net current period other comprehensive income (loss)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Balance as of June 30,
2024
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Three months ended June 30, 2023
|
||||||||||||||||
Unrealized gain (loss)
on available for sale
securities (a)
|
Defined Benefit
Pension Items (a)
|
Unrealized loss
on interest rate
swap (a)
|
Total
|
|||||||||||||
Balance as of March 31, 2023
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications (net of tax)
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Net current period other comprehensive income (loss)
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Balance as of June 30,
2023
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Six months ended June 30, 2023
|
||||||||||||||||
Unrealized gain (loss)
on available for sale
securities (a)
|
Defined Benefit
Pension Items (a)
|
Unrealized loss
on interest rate
swap (a)
|
Total
|
|||||||||||||
Balance as of December 31, 2022
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications (net of tax)
|
|
|
|
|
||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Net current period other comprehensive income (loss)
|
|
|
(
|
)
|
|
|||||||||||
Balance as of June 30,
2023
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Details about accumulated other comprehensive income (loss)
|
Amount reclassified from
accumulated comprehensive
income (loss) (a)
|
Affected line item in the Consolidated Statement of Income
|
|||||||
|
Three Months Ended June 30,
|
|
|||||||
|
2024
|
2023
|
|
||||||
Unrealized gains and losses on available for sale securities
|
|
||||||||
$
|
|
$
|
(
|
)
|
Available for sale securities losses, net
|
||||
|
|
Provision for income taxes
|
|||||||
$
|
|
$
|
(
|
)
|
Net of tax
|
||||
Defined benefit pension items
|
|||||||||
|
$
|
(
|
)
|
$
|
(
|
)
|
Other expenses
|
||
|
|
|
Provision for income taxes
|
||||||
|
$
|
(
|
)
|
$
|
(
|
)
|
Net of tax
|
||
Unrealized gain (loss) on interest rate swap |
$ | $ |
Interest expense
|
||||||
( |
) | ( |
) |
Provision for income taxes
|
|||||
$ | $ |
Net of tax
|
|||||||
Total reclassifications
|
$
|
|
$
|
|
|
Six Months Ended June 30,
|
|||||||||
|
2024
|
2023
|
|
||||||
Unrealized gains and losses on available for sale securities
|
|
||||||||
$
|
|
$
|
(
|
)
|
Available for sale securities losses, net
|
||||
|
|
Provision for income taxes
|
|||||||
$
|
|
$
|
(
|
)
|
Net of tax
|
||||
Defined benefit pension items
|
|||||||||
|
$
|
(
|
)
|
$
|
(
|
)
|
Other expenses
|
||
|
|
|
Provision for income taxes
|
||||||
|
$
|
(
|
)
|
$
|
(
|
)
|
Net of tax
|
||
Unrealized gain (loss) on interest rate swap | $ | $ |
Interest expense
|
||||||
( |
) | ( |
) |
Provision for income taxes
|
|||||
$ | $ |
Net of tax
|
|||||||
Total reclassifications
|
$
|
|
$
|
|
|
Level I: |
Quoted prices are available in active markets for identical assets or liabilities as of the reported date.
|
Level II: |
Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these
assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.
|
Level III: |
Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using
management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.
|
June 30, 2024
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Fair value measurements on a recurring basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Equity securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Available for sale securities:
|
||||||||||||||||
U.S. Agency securities
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
|
|
|
||||||||||||
Corporate obligations
|
|
|
|
|
||||||||||||
Mortgage-backed securities in government sponsored entities
|
|
|
|
|
||||||||||||
Loans held for sale |
||||||||||||||||
Other Assets |
||||||||||||||||
Derivative instruments
|
|
|
|
|
||||||||||||
Liabilities
|
||||||||||||||||
Derivative instruments
|
|
(
|
)
|
|
(
|
)
|
December 31, 2023
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Fair value measurements on a recurring basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Equity securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Available for sale securities:
|
||||||||||||||||
U.S. Agency securities
|
|
|
|
|
||||||||||||
U.S. Treasuries securities
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
|
|
|
||||||||||||
Corporate obligations
|
|
|
|
|
||||||||||||
Mortgage-backed securities in government sponsored entities
|
|
|
|
|
||||||||||||
Loans held for sale |
||||||||||||||||
Other Assets |
||||||||||||||||
Derivative instruments
|
|
|
|
|
||||||||||||
Liabilities
|
||||||||||||||||
Derivative instruments
|
|
(
|
)
|
|
(
|
)
|
IRLC-
Asset
|
||||
Balance: December 31, 2023
|
$
|
|
||
Total unrealized losses:
|
||||
Included in other comprehensive loss
|
|
|||
Total losses included in earnings and held at reporting date
|
|
|||
Purchases, sales and settlements
|
|
|||
Transfers in and/or out of Level 3
|
|
|||
Ending Balance: June 30, 2024
|
$
|
|
||
Change in unrealized (losses) for the period included in earnings for assets held as of June 30, 2024
|
$
|
|
IRLC-
Asset
|
||||
Beginning Balance: March
31, 2024
|
$
|
|
||
Total unrealized losses:
|
||||
Included in other comprehensive loss
|
|
|||
Total losses included in earnings and held at reporting date
|
(
|
)
|
||
Purchases, sales and settlements
|
|
|||
Transfers in and/or out of Level 3
|
|
|||
Ending Balance: June 30, 2024
|
$
|
|
||
Change in unrealized (losses) for the period included in earnings for assets held as of June 30, 2024
|
$
|
(
|
)
|
IRLC-
Asset
|
||||
Balance acquired as part of
the HVBC acquisition
|
$
|
|
||
Total unrealized losses:
|
||||
Included in other comprehensive loss
|
|
|||
Total losses included in earnings and held at reporting date
|
(
|
)
|
||
Purchases, sales and settlements
|
|
|||
Transfers in and/or out of Level 3
|
|
|||
Ending Balance: June 30, 2023
|
$
|
|
||
Change in unrealized (losses) for the period included in earnings (or changes in net assets) for assets held as of
June 30, 2023
|
$
|
(
|
)
|
Quantitative Information about Level 3 Fair Value Measurements |
||||||||||||||
June 30, 2024 |
Fair Value
|
Valuation
Technique |
Significant
Unobservable Input |
Range
|
Weighted
Average
|
|||||||||
Measured at Fair Value on a Recurring Basis:
|
||||||||||||||
Net derivative asset and liability:
|
||||||||||||||
IRLC
|
$
|
|
Discounted cash flows
|
Pull-through rates
|
|
%
|
|
%
|
||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||
December 31, 2023 | Fair Value | Valuation Technique |
Significant Unobservable Input |
Range |
Weighted
Average
|
|||||||||
Measured
at Fair Value on a Recurring Basis: |
||||||||||||||
Net
derivative asset and liability: |
||||||||||||||
IRLC | $ | Discounted cash flows |
Pull-through rates |
|
%
|
% |
June 30,
2024
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Collateral-dependent loans
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other real estate owned |
||||||||||||||||
December 31, 2023
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Collateral-dependent loans
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other real estate owned
|
|
|
|
|
• |
Collateral–Dependent Loans (in accordance with ASC 326) – The Company records nonrecurring adjustments of collateral-dependent loans held for investment. Such amounts are generally based on the
fair value of the underlying collateral supporting the loan. Appraisals are generally obtained to support the fair value of the collateral and incorporate measures that include recent sales prices for comparable properties and cost of
construction. Periodically, in cases where the carrying value exceeds the fair value of the collateral less cost to sell, an impairment charge is recognized in the form of a charge-off. The fair values above excluded estimated selling costs
of $
|
• |
Other Real Estate Owned (OREO) – OREO is carried at the lower of cost or fair value, less estimated costs to sell, which is measured at the date of foreclosure. If the fair value of the collateral exceeds the
carrying amount of the loan, no charge-off or adjustment is necessary, the loan is not considered to be carried at fair value, and is therefore not included in the table above. If the fair value of the collateral is less than the carrying
amount of the loan, management will charge the loan down to its estimated realizable value. The fair value of OREO is based on the appraised value of the property, which is generally unadjusted by management and is based on comparable sales
for similar properties in the same geographic region as the subject property, and is included in the above table as a Level II measurement. In some cases, management may adjust the appraised value due to the age of the appraisal, changes
in market conditions, or observable deterioration of the property since the appraisal was completed. In these cases, the loans are categorized in the above table as a Level III measurement since these adjustments are considered to be
unobservable inputs. Income and expenses from operations and further declines in the fair value of the collateral subsequent to foreclosure are included in net expenses from OREO.
|
Quantitative Information about Level III Fair Value Measurements | ||||||||||||||
June 30,
2024
|
Fair
Value
|
Valuation Technique(s)
|
Unobservable input
|
Range
|
Weighted
average
|
|||||||||
Collateral-dependent loans
|
$
|
|
Appraised Collateral Values
|
Discount for time since appraisal
|
|
%
|
|
%
|
||||||
|
Selling costs
|
|
%
|
|
%
|
|||||||||
|
Holding period
|
|
|
|||||||||||
Other real estate owned |
Appraised Collateral Values | Discount for time since appraisal | % | % | ||||||||||
December 31, 2023
|
Fair
Value
|
Valuation Technique(s)
|
Unobservable input
|
Range
|
Weighted
average
|
||||||||||
Collateral-dependent loans
|
|
Appraised Collateral Values
|
Discount for time since appraisal
|
|
%
|
|
%
|
||||||||
|
Selling costs
|
|
%
|
|
%
|
||||||||||
|
Holding period
|
|
|
||||||||||||
|
|
||||||||||||||
Other real estate owned
|
|
Appraised Collateral Values
|
Discount for time since appraisal
|
% |
|
%
|
June 30, 2024
|
Carrying
Amount
|
Fair Value
|
Level I
|
Level II
|
Level III
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Interest bearing time deposits with other banks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Net loans
|
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
|
|
|
|
|
|||||||||||||||
Borrowed funds
|
|
|
|
|
|
|||||||||||||||
|
||||||||||||||||||||
December 31, 2023 |
Carrying
Amount
|
Fair Value |
Level I |
Level II |
Level III |
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Interest bearing time deposits with other banks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Net loans
|
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
|
|
|
|
|
|||||||||||||||
Borrowed funds
|
|
|
|
|
|
ITEM 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
• |
Interest rates could change more rapidly or more significantly than we expect or the yield curve could remain inverted for a longer period than anticipated.
|
• |
The economy could change significantly in an unexpected way, which would cause the demand for new loans and the ability of borrowers to repay outstanding loans to change in ways that our models do not anticipate.
|
• |
The financial markets could suffer a significant disruption, which may have a negative effect on our financial condition and that of our borrowers, and on our ability to raise money by issuing new securities.
|
• |
It could take us longer than we anticipate implementing strategic initiatives, including expansions, designed to increase revenues or manage expenses, or we may be unable to implement those initiatives at all.
|
• |
Acquisitions and dispositions of assets and companies could affect us in ways that management has not anticipated.
|
• |
We may become subject to new legal obligations or the resolution of litigation may have a negative effect on our financial condition or operating results.
|
• |
We may become subject to new and unanticipated accounting, tax, regulatory or compliance practices or requirements. Failure to comply with any one or more of these requirements could have an adverse effect on our operations.
|
• |
We could experience greater loan delinquencies than anticipated, adversely affecting our earnings and financial condition.
|
• |
We could experience greater losses than expected due to the ever-increasing volume of information theft and fraudulent scams impacting our customers and the banking industry.
|
• |
We could lose the services of some or all of our key personnel, which would negatively impact our business because of their business development skills, financial expertise, lending experience, technical expertise and market area
knowledge.
|
• |
The agricultural economy is subject to extreme swings in both the costs of resources and the prices received from the sale of products as a result of weather, government regulations, international trade
agreements and consumer tastes, which could negatively impact certain of our customers.
|
• |
Loan concentrations in certain industries could negatively impact our results, if financial results or economic conditions deteriorate.
|
• |
Companies providing support services related to the exploration and drilling of the natural gas reserves in our market area may be affected by federal, state and local laws and regulations such as
restrictions on production, permitting, changes in taxes and environmental protection, which could negatively impact our customers and, as a result, negatively impact our loan and deposit volume and loan quality. Additionally, the
activities the companies providing support services related to the exploration and drilling of the natural gas reserves may be dependent on the market price of natural gas. As a result, decreases in the market price of natural gas could
also negatively impact these companies, our customers.
|
Analysis of Average Balances and Interest Rates
|
||||||||||||||||||||||||
Six Months Ended
|
||||||||||||||||||||||||
June 30, 2024
|
June 30, 2023
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance (1)
|
Interest
|
Rate
|
Balance (1)
|
Interest
|
Rate
|
|||||||||||||||||||
(dollars in thousands)
|
$
|
$ |
%
|
$
|
$ |
%
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Short-term investments:
|
||||||||||||||||||||||||
Interest-bearing deposits at banks
|
30,119
|
445
|
2.97
|
16,395
|
108
|
1.33
|
||||||||||||||||||
Total short-term investments
|
30,119
|
445
|
2.97
|
16,395
|
108
|
1.33
|
||||||||||||||||||
Interest bearing time deposits at banks
|
3,937
|
60
|
3.06
|
6,028
|
90
|
3.00
|
||||||||||||||||||
Investment securities:
|
||||||||||||||||||||||||
Taxable
|
359,142
|
4,078
|
2.27
|
384,453
|
3,864
|
2.01
|
||||||||||||||||||
Tax-exempt (3)
|
106,438
|
1,332
|
2.50
|
117,025
|
1,505
|
2.57
|
||||||||||||||||||
Total investment securities
|
465,580
|
5,410
|
2.32
|
501,478
|
5,369
|
2.14
|
||||||||||||||||||
Loans (2)(3)(4):
|
||||||||||||||||||||||||
Residential mortgage loans
|
358,472
|
10,291
|
5.77
|
224,059
|
5,872
|
5.28
|
||||||||||||||||||
Construction
|
187,001
|
6,858
|
7.38
|
88,048
|
2,492
|
5.71
|
||||||||||||||||||
Commercial Loans
|
1,243,546
|
39,674
|
6.42
|
959,221
|
26,097
|
5.49
|
||||||||||||||||||
Agricultural Loans
|
345,287
|
8,887
|
5.18
|
344,882
|
8,474
|
4.95
|
||||||||||||||||||
Loans to state & political subdivisions
|
56,469
|
1,106
|
3.94
|
59,860
|
1,125
|
3.79
|
||||||||||||||||||
Other loans
|
89,472
|
3,599
|
8.09
|
79,199
|
2,828
|
7.20
|
||||||||||||||||||
Loans, net of discount
|
2,280,247
|
70,415
|
6.21
|
1,755,269
|
46,888
|
5.39
|
||||||||||||||||||
Total interest-earning assets
|
2,779,883
|
76,330
|
5.52
|
2,279,170
|
52,455
|
4.64
|
||||||||||||||||||
Cash and due from banks
|
9,511
|
7,716
|
||||||||||||||||||||||
Bank premises and equipment
|
21,171
|
18,292
|
||||||||||||||||||||||
Other assets
|
181,792
|
96,542
|
||||||||||||||||||||||
Total non-interest earning assets
|
212,474
|
122,550
|
||||||||||||||||||||||
Total assets
|
2,992,357
|
2,401,720
|
||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
783,055
|
9,999
|
2.57
|
527,960
|
3,584
|
1.37
|
||||||||||||||||||
Savings accounts
|
300,704
|
778
|
0.52
|
317,063
|
471
|
0.30
|
||||||||||||||||||
Money market accounts
|
381,209
|
5,765
|
3.04
|
325,841
|
3,121
|
1.93
|
||||||||||||||||||
Certificates of deposit
|
439,995
|
8,434
|
3.86
|
281,482
|
2,243
|
1.61
|
||||||||||||||||||
Total interest-bearing deposits
|
1,904,963
|
24,976
|
2.64
|
1,452,346
|
9,419
|
1.31
|
||||||||||||||||||
Other borrowed funds
|
350,354
|
8,601
|
4.94
|
303,344
|
6,497
|
4.32
|
||||||||||||||||||
Total interest-bearing liabilities
|
2,255,317
|
33,577
|
2.99
|
1,755,690
|
15,916
|
1.83
|
||||||||||||||||||
Demand deposits
|
376,632
|
386,104
|
||||||||||||||||||||||
Other liabilities
|
49,266
|
15,157
|
||||||||||||||||||||||
Total non-interest-bearing liabilities
|
425,898
|
401,261
|
||||||||||||||||||||||
Stockholders’ equity
|
311,142
|
244,769
|
||||||||||||||||||||||
Total liabilities & stockholders’ equity
|
2,992,357
|
2,401,720
|
||||||||||||||||||||||
Net interest income
|
42,753
|
36,539
|
||||||||||||||||||||||
Net interest spread (5)
|
2.53
|
%
|
2.81
|
%
|
||||||||||||||||||||
Net interest income as a percentage of average interest-earning assets
|
3.09
|
%
|
3.23
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
123
|
%
|
130
|
%
|
(1)
|
Averages are based on daily averages.
|
(2)
|
Includes loan origination and commitment fees.
|
(3)
|
Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of 21%.
|
(4)
|
Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets.
|
(5)
|
Interest rate spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities.
|
Analysis of Average Balances and Interest Rates
|
||||||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||||||
June 30, 2024
|
June 30, 2023
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance (1)
|
Interest
|
Rate
|
Balance (1)
|
Interest
|
Rate
|
|||||||||||||||||||
(dollars in thousands)
|
$
|
$ |
%
|
$
|
$ |
%
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Short-term investments:
|
||||||||||||||||||||||||
Interest-bearing deposits at banks
|
18,353
|
232
|
5.11
|
18,193
|
82
|
1.79
|
||||||||||||||||||
Total short-term investments
|
18,353
|
232
|
5.11
|
18,193
|
82
|
1.79
|
||||||||||||||||||
Interest bearing time deposits at banks
|
3,820
|
30
|
3.16
|
6,000
|
45
|
2.99
|
||||||||||||||||||
Investment securities:
|
||||||||||||||||||||||||
Taxable
|
355,321
|
2,053
|
2.31
|
388,327
|
1,994
|
2.05
|
||||||||||||||||||
Tax-exempt (3)
|
105,379
|
658
|
2.50
|
113,674
|
725
|
2.55
|
||||||||||||||||||
Total investment securities
|
460,700
|
2,711
|
2.35
|
502,001
|
2,719
|
2.17
|
||||||||||||||||||
Loans (2)(3)(4):
|
||||||||||||||||||||||||
Residential mortgage loans
|
358,448
|
5,232
|
5.87
|
236,167
|
3,168
|
5.39
|
||||||||||||||||||
Construction
|
184,103
|
3,367
|
7.36
|
90,635
|
1,353
|
5.99
|
||||||||||||||||||
Commercial Loans
|
1,251,484
|
20,154
|
6.48
|
983,666
|
13,772
|
5.62
|
||||||||||||||||||
Agricultural Loans
|
346,107
|
4,482
|
5.21
|
345,467
|
4,221
|
4.90
|
||||||||||||||||||
Loans to state & political subdivisions
|
56,290
|
556
|
3.97
|
60,395
|
582
|
3.87
|
||||||||||||||||||
Other loans
|
68,805
|
1,383
|
8.08
|
60,770
|
1,136
|
7.50
|
||||||||||||||||||
Loans, net of discount
|
2,265,237
|
35,174
|
6.25
|
1,777,100
|
24,232
|
5.47
|
||||||||||||||||||
Total interest-earning assets
|
2,748,110
|
38,147
|
5.58
|
2,303,294
|
27,078
|
4.72
|
||||||||||||||||||
Cash and due from banks
|
9,199
|
8,386
|
||||||||||||||||||||||
Bank premises and equipment
|
21,053
|
18,960
|
||||||||||||||||||||||
Other assets
|
195,528
|
102,155
|
||||||||||||||||||||||
Total non-interest earning assets
|
225,780
|
129,501
|
||||||||||||||||||||||
Total assets
|
2,973,890
|
2,432,795
|
||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
766,142
|
4,776
|
2.51
|
545,527
|
2,067
|
1.52
|
||||||||||||||||||
Savings accounts
|
299,318
|
391
|
0.53
|
314,745
|
265
|
0.34
|
||||||||||||||||||
Money market accounts
|
381,377
|
2,972
|
3.13
|
330,453
|
1,847
|
2.24
|
||||||||||||||||||
Certificates of deposit
|
457,570
|
4,516
|
3.97
|
283,694
|
1,301
|
1.84
|
||||||||||||||||||
Total interest-bearing deposits
|
1,904,407
|
12,655
|
2.67
|
1,474,419
|
5,480
|
1.49
|
||||||||||||||||||
Other borrowed funds
|
324,736
|
3,947
|
4.89
|
307,523
|
3,409
|
4.45
|
||||||||||||||||||
Total interest-bearing liabilities
|
2,229,143
|
16,602
|
3.00
|
1,781,942
|
8,889
|
2.00
|
||||||||||||||||||
Demand deposits
|
382,312
|
397,084
|
||||||||||||||||||||||
Other liabilities
|
49,051
|
3,379
|
||||||||||||||||||||||
Total non-interest-bearing liabilities
|
431,363
|
400,463
|
||||||||||||||||||||||
Stockholders’ equity
|
313,384
|
250,390
|
||||||||||||||||||||||
Total liabilities & stockholders’ equity
|
2,973,890
|
2,432,795
|
||||||||||||||||||||||
Net interest income
|
21,545
|
18,189
|
||||||||||||||||||||||
Net interest spread (5)
|
2.58
|
%
|
2.71
|
%
|
||||||||||||||||||||
Net interest income as a percentage of average interest-earning assets
|
3.15
|
%
|
3.17
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
123
|
%
|
129
|
%
|
(1)
|
Averages are based on daily averages.
|
(2)
|
Includes loan origination and commitment fees.
|
(3)
|
Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of 21%.
|
(4)
|
Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets.
|
(5)
|
Interest rate spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities.
|
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30
|
Ended June 30
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Interest and dividend income from investment securities and interest bearing deposits at banks (non-tax adjusted)
|
$
|
2,835
|
$
|
2,693
|
$
|
5,635
|
$
|
5,251
|
||||||||
Tax equivalent adjustment
|
138
|
153
|
280
|
316
|
||||||||||||
Interest and dividend income from investment securities and interest bearing deposits at banks (tax equivalent basis)
|
$
|
2,973
|
$
|
2,846
|
$
|
5,915
|
$
|
5,567
|
||||||||
Interest and fees on loans (non-tax adjusted)
|
$
|
35,067
|
$
|
24,117
|
$
|
70,200
|
$
|
46,666
|
||||||||
Tax equivalent adjustment
|
107
|
115
|
215
|
222
|
||||||||||||
Interest and fees on loans (tax equivalent basis)
|
$
|
35,174
|
$
|
24,232
|
$
|
70,415
|
$
|
46,888
|
||||||||
Total interest income
|
$
|
37,902
|
$
|
26,810
|
$
|
75,835
|
$
|
51,917
|
||||||||
Total interest expense
|
16,602
|
8,889
|
33,577
|
15,916
|
||||||||||||
Net interest income
|
21,300
|
17,921
|
42,258
|
36,001
|
||||||||||||
Total tax equivalent adjustment
|
245
|
268
|
495
|
538
|
||||||||||||
Net interest income (tax equivalent basis)
|
$
|
21,545
|
$
|
18,189
|
$
|
42,753
|
$
|
36,539
|
Three months ended June 30, 2024 vs 2023 (1)
|
Six months ended June 30, 2024 vs 2023 (1)
|
|||||||||||||||||||||||
Change in
|
Change
|
Total
|
Change in
|
Change
|
Total
|
|||||||||||||||||||
Volume
|
in Rate
|
Change
|
Volume
|
in Rate
|
Change
|
|||||||||||||||||||
Interest Income:
|
||||||||||||||||||||||||
Short-term investments:
|
||||||||||||||||||||||||
Interest-bearing deposits at banks
|
$
|
-
|
$
|
150
|
$
|
150
|
$
|
137
|
$
|
200
|
$
|
337
|
||||||||||||
Interest bearing time deposits at banks
|
(18
|
)
|
3
|
(15
|
)
|
(32
|
)
|
2
|
(30
|
)
|
||||||||||||||
Investment securities:
|
||||||||||||||||||||||||
Taxable
|
(125
|
)
|
184
|
59
|
(219
|
)
|
433
|
214
|
||||||||||||||||
Tax-exempt
|
(52
|
)
|
(15
|
)
|
(67
|
)
|
(133
|
)
|
(40
|
)
|
(173
|
)
|
||||||||||||
Total investments
|
(177
|
)
|
169
|
(8
|
)
|
(352
|
)
|
393
|
41
|
|||||||||||||||
Loans:
|
||||||||||||||||||||||||
Residential mortgage loans
|
1,754
|
310
|
2,064
|
3,831
|
588
|
4,419
|
||||||||||||||||||
Construction
|
1,648
|
366
|
2,014
|
3,467
|
899
|
4,366
|
||||||||||||||||||
Commercial Loans
|
4,069
|
2,313
|
6,382
|
8,665
|
4,912
|
13,577
|
||||||||||||||||||
Agricultural Loans
|
(4
|
)
|
265
|
261
|
34
|
379
|
413
|
|||||||||||||||||
Loans to state & political subdivisions
|
(43
|
)
|
17
|
(26
|
)
|
(69
|
)
|
50
|
(19
|
)
|
||||||||||||||
Other loans
|
154
|
93
|
247
|
399
|
372
|
771
|
||||||||||||||||||
Total loans, net of discount
|
7,578
|
3,364
|
10,942
|
16,327
|
7,200
|
23,527
|
||||||||||||||||||
Total Interest Income
|
7,383
|
3,686
|
11,069
|
16,080
|
7,795
|
23,875
|
||||||||||||||||||
Interest Expense:
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
NOW accounts
|
1,036
|
1,673
|
2,709
|
2,287
|
4,128
|
6,415
|
||||||||||||||||||
Savings accounts
|
(13
|
)
|
139
|
126
|
(22
|
)
|
329
|
307
|
||||||||||||||||
Money Market accounts
|
310
|
815
|
1,125
|
610
|
2,034
|
2,644
|
||||||||||||||||||
Certificates of deposit
|
1,111
|
2,104
|
3,215
|
1,783
|
4,408
|
6,191
|
||||||||||||||||||
Total interest-bearing deposits
|
2,444
|
4,731
|
7,175
|
4,658
|
10,899
|
15,557
|
||||||||||||||||||
Other borrowed funds
|
187
|
351
|
538
|
1,103
|
1,001
|
2,104
|
||||||||||||||||||
Total interest expense
|
2,631
|
5,082
|
7,713
|
5,761
|
11,900
|
17,661
|
||||||||||||||||||
Net interest income
|
$
|
4,752
|
$
|
(1,396
|
)
|
$
|
3,356
|
$
|
10,319
|
$
|
(4,105
|
)
|
$
|
6,214
|
(1)
|
The portion of the total change attributable to both volume and rate changes, which can not be separated, has been allocated proportionally to the change due to volume and the change due to rate prior to
allocation.
|
• |
The average balance of taxable securities decreased $25.3 million, which resulted in a decrease in investment income of $219,000. The yield on taxable securities increased 26 basis points from 2.01% to 2.27% as a result of lower yielding
securities maturing. This resulted in an increase in investment income of $433,000.
|
• |
The average balance of tax-exempt securities decreased $10.6 million, which resulted in a decrease in investment income of $133,000. The yield on taxable securities decreased 7 basis points from 2.57% to 2.50%. This resulted in a decrease
in investment income of $40,000. For a discussion of the Company’s current investment strategy, see the “Financial Condition – Investments”.
|
• |
Interest income on residential mortgage loans increased $4,419,000. The change due to rate was an increase of $588,000 as the average yield on residential mortgages increased from 5.28% to 5.77% as a result of the higher interest rate
environment during the second half of 2023 and all of 2024. The average balance of residential mortgage loans increased $134.4 million primarily due to the HVBC acquisition and additional organic growth. This resulted in an increase of
$3,831,000 on total interest income due to volume.
|
• |
The average balance of construction loans increased $99.0 million as a result of projects in our Delaware market and the southeast Pennsylvania market as part of the HVBC acquisition. This resulted in an increase of $3,467,000 on total
interest income due to volume. The change due to rate was an increase of $899,000 as the average yield on construction loans increased from 5.71% to 7.38% as a result of the higher interest rate environment during the second half of 2023 and
all of 2024.
|
• |
The average balance of commercial loans increased $284.3 million from a year ago. The growth was primarily attributable to the HVCB acquisition. This had a positive impact of $8,665,000 on total interest income due to volume. The yield
increased 0.93% to 6.42% as a result of the higher rate environment during the second half of 2023 and all of 2024, which increased loan interest income $4,912,000.
|
• |
Interest income on agricultural loans increased $413,000 from 2023 to 2024. The yield increased 23 basis points to 5.18% as a result of the higher rate environment during the second half of 2023 and all of 2024, which increased loan
interest income $379,000.
|
• |
The average balance of other loans increased $10.3 million as a result of outstanding student loans. This resulted in an increase of $399,000 on total interest income due to volume. The average yield of other loans increased 89 basis
points to 8.09% due to the higher rate environment resulting in an increase in income of $372,000.
|
• |
The average balance of interest bearing deposits increased $452.6 million from June 30, 2023 to June 30, 2024. The increase was due to the HVBC acquisition. The effect of these volume changes was
an increase in interest expense of $4,658,000. The average rate paid on interest bearing deposits was 2.64% for the first six months of 2024 and 1.31% for the comparable period in 2023. This resulted in an increase in interest expense of
$10,899,000. The increase was due to the Federal Reserve increasing interest rates during 2022 and 2023.
|
• |
The average balance of other borrowed funds increased $47.0 million. This resulted in an increase in interest expense of $1,103,000. There was an increase in the average rate paid on other borrowed funds from 4.32% to 4.94% due to the
interest rate increases by the Federal Reserve that increased borrowings costs resulting in an increase in interest expense of $1,001,000.
|
• |
Interest income on residential mortgage loans increased $2,064,000. The change due to rate was an increase of $310,000 as the average yield on residential mortgages increased from 5.39% to 5.87% as a result of the higher rate environment
during the second half of 2023 and all of 2024. The average balance of residential mortgage loans increased $122.3 million primarily as a result of the HVBC acquisition. This resulted in an increase of $1,754,000 on total interest income due
to volume.
|
• |
The average balance of construction loans increased $93.5 million primarily as a result of the HVBC acquisition and the projects in our southeastern Pennsylvania market. This resulted in an increase of $1,648,000 on total interest income
due to volume. The change due to rate was an increase of $366,000 as the average yield on construction loans increased from 5.99% to 7.39% as a result of the higher rate environment.
|
• |
The average balance of commercial loans increased $267.8 million from a year ago. The growth was primarily attributable to growth in the Delaware market and the HVBC acquisition. This had a positive impact of $4,069,000 on total interest
income due to volume. The yield increased 86 basis points to 6.48% due to the higher rate environment experienced during the second half of 2023 and all of 2024, which increased loan interest income $2,313,000.
|
• |
The average yield of agricultural loans increased 31 basis points to 5.21% due to the higher rate environment resulting in an increase in income of $265,000.
|
• |
The average balance of other loans increased $8.0 million as a result of outstanding student loans. This resulted in an increase of $154,000 on total interest income due to volume. The average yield on other loans increased 58 basis points
to 8.08% due to the rate earned on the student loans, resulting in an increase in interest income of $93,000.
|
• |
The average balance of interest bearing deposits increased $429.9 million from June 30, 2023 to June 30, 2024 primarily due to the HVBC acquisition, which was offset by customer funds transferred to
higher-yielding investment alternatives as well as a reduction in municipal deposits to fund projects in various municipalities. The effect of these volume changes was an increase in interest expense of $2,444,000. The average rate
paid on interest bearing deposits was 2.67% for the three months ended June 30 2024 and 1.49% for the comparable period in 2023. This resulted in an increase in interest expense of $4,731,000. The increase was due to the Federal Reserve
increasing interest rates during 2022 and 2023.
|
• |
The average balance of other borrowed funds increased $17.2 million from borrowings acquired as part of the HVBC acquisition. This resulted in an increase in interest expense of $187,000. There was an increase in the average rate paid on
other borrowed funds from 4.45% to 4.89% due to the interest rate increases by the Federal Reserve that increased borrowings costs resulting in an increase in interest expense of $351,000.
|
Six months ended June 30,
|
Change
|
|||||||||||||||
2024
|
2023
|
Amount
|
%
|
|||||||||||||
Service charges
|
$
|
2,757
|
$
|
2,504
|
$
|
253
|
10.1
|
|||||||||
Trust
|
445
|
411
|
34
|
8.3
|
||||||||||||
Brokerage and insurance
|
1,228
|
956
|
272
|
28.5
|
||||||||||||
Gains on loans sold
|
896
|
214
|
682
|
318.7
|
||||||||||||
Equity security losses, net
|
(32
|
)
|
(292
|
)
|
260
|
(89.0
|
)
|
|||||||||
Available for sale security losses, net
|
-
|
(51
|
)
|
51
|
(100.0
|
)
|
||||||||||
Gain on sale of Braavo division
|
1,102
|
-
|
1,102
|
NA
|
||||||||||||
Earnings on bank owned life insurance
|
996
|
452
|
544
|
120.4
|
||||||||||||
Other
|
915
|
260
|
655
|
251.9
|
||||||||||||
Total
|
$
|
8,307
|
$
|
4,454
|
$
|
3,853
|
86.5
|
Three months ended June 30,
|
Change
|
|||||||||||||||
2024
|
2023
|
Amount
|
%
|
|||||||||||||
Service charges
|
$
|
1,385
|
$
|
1,293
|
$
|
92
|
7.1
|
|||||||||
Trust
|
201
|
181
|
20
|
11.0
|
||||||||||||
Brokerage and insurance
|
563
|
442
|
121
|
27.4
|
||||||||||||
Gains on loans sold
|
479
|
169
|
310
|
183.4
|
||||||||||||
Equity security losses, net
|
(87
|
)
|
(74
|
)
|
(13
|
)
|
17.6
|
|||||||||
Available for sale security losses, net
|
-
|
(51
|
)
|
51
|
(100.0
|
)
|
||||||||||
Gain on sale of Braavo division
|
-
|
-
|
-
|
NA
|
||||||||||||
Earnings on bank owned life insurance
|
328
|
234
|
94
|
40.2
|
||||||||||||
Other
|
467
|
86
|
381
|
443.0
|
||||||||||||
Total
|
$
|
3,336
|
$
|
2,280
|
$
|
1,056
|
46.3
|
Six months ended June 30,
|
Change
|
|||||||||||||||
2024
|
2023
|
Amount
|
%
|
|||||||||||||
Salaries and employee benefits
|
$
|
19,907
|
$
|
15,593
|
$
|
4,314
|
27.7
|
|||||||||
Occupancy
|
2,590
|
1,649
|
941
|
57.1
|
||||||||||||
Furniture and equipment
|
531
|
313
|
218
|
69.6
|
||||||||||||
Professional fees
|
1,401
|
768
|
633
|
82.4
|
||||||||||||
FDIC insurance
|
1,034
|
625
|
409
|
65.4
|
||||||||||||
Pennsylvania shares tax
|
640
|
596
|
44
|
7.4
|
||||||||||||
Amortization of intangibles
|
296
|
62
|
234
|
377.4
|
||||||||||||
Merger and acquisition
|
-
|
8,646
|
(8,646
|
)
|
(100.0
|
)
|
||||||||||
Software expenses
|
1,008
|
723
|
285
|
39.4
|
||||||||||||
ORE expenses
|
162
|
15
|
147
|
980.0
|
||||||||||||
Other
|
5,320
|
3,468
|
1,852
|
53.4
|
||||||||||||
Total
|
$
|
32,889
|
$
|
32,458
|
$
|
431
|
1.3
|
Three months ended June 30,
|
Change
|
|||||||||||||||
2024
|
2023
|
Amount
|
%
|
|||||||||||||
Salaries and employee benefits
|
$
|
9,617
|
$
|
7,916
|
$
|
1,701
|
21.5
|
|||||||||
Occupancy
|
1,266
|
814
|
452
|
55.5
|
||||||||||||
Furniture and equipment
|
295
|
162
|
133
|
82.1
|
||||||||||||
Professional fees
|
698
|
387
|
311
|
80.4
|
||||||||||||
FDIC insurance
|
509
|
325
|
184
|
56.6
|
||||||||||||
Pennsylvania shares tax
|
330
|
298
|
32
|
10.7
|
||||||||||||
Amortization of intangibles
|
147
|
31
|
116
|
374.2
|
||||||||||||
Merger and acquisition
|
-
|
8,402
|
(8,402
|
)
|
(100.0
|
)
|
||||||||||
Software expenses
|
494
|
372
|
122
|
32.8
|
||||||||||||
ORE expenses (recovery)
|
175
|
(11
|
)
|
186
|
(1,690.9
|
)
|
||||||||||
Other
|
2,715
|
1,984
|
731
|
36.8
|
||||||||||||
Total
|
$
|
16,246
|
$
|
20,680
|
$
|
(4,434
|
)
|
(21.4
|
)
|
June 30, 2024
|
December 31, 2023
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Debt securities:
|
||||||||||||||||
U. S. Agency securities
|
$
|
55,833
|
13.8
|
$
|
60,771
|
14.5
|
||||||||||
U. S. Treasury notes
|
130,073
|
32.2
|
143,288
|
34.1
|
||||||||||||
Obligations of state & political subdivisions
|
96,707
|
23.9
|
101,787
|
24.3
|
||||||||||||
Corporate obligations
|
12,450
|
3.1
|
12,403
|
3.0
|
||||||||||||
Mortgage-backed securities in government sponsored entities
|
107,598
|
26.6
|
99,352
|
23.6
|
||||||||||||
Equity securities
|
1,570
|
0.4
|
1,938
|
0.5
|
||||||||||||
Total
|
$
|
404,231
|
100.0
|
$
|
419,539
|
100.0
|
June 30, 2024/
|
||||||||
December 31, 2023
|
||||||||
Change
|
||||||||
Amount
|
%
|
|||||||
Debt securities:
|
||||||||
U. S. Agency securities
|
$
|
(4,938
|
)
|
(8.1
|
)
|
|||
U. S. Treasury notes
|
(13,215
|
)
|
(9.2
|
)
|
||||
Obligations of state & political subdivisions
|
(5,080
|
)
|
(5.0
|
)
|
||||
Corporate obligations
|
47
|
0.4
|
||||||
Mortgage-backed securities in government sponsored entities
|
8,246
|
8.3
|
||||||
Equity securities
|
(368
|
)
|
(19.0
|
)
|
||||
Total
|
$
|
(15,308
|
)
|
(3.6
|
)
|
June 30,
|
December 31,
|
|||||||||||||||
2024
|
2023
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Real estate:
|
||||||||||||||||
Residential
|
$
|
354,588
|
15.7
|
$
|
359,990
|
16.0
|
||||||||||
Commercial
|
1,110,269
|
49.2
|
1,092,887
|
48.6
|
||||||||||||
Agricultural
|
327,057
|
14.5
|
314,802
|
14.0
|
||||||||||||
Construction
|
180,157
|
8.0
|
195,826
|
8.7
|
||||||||||||
Consumer
|
70,542
|
3.1
|
61,316
|
2.7
|
||||||||||||
Other commercial loans
|
130,851
|
5.8
|
136,168
|
6.1
|
||||||||||||
Other agricultural loans
|
26,247
|
1.2
|
30,673
|
1.4
|
||||||||||||
State & political subdivision loans
|
56,005
|
2.5
|
57,174
|
2.5
|
||||||||||||
Total loans
|
2,255,716
|
100.0
|
2,248,836
|
100.0
|
||||||||||||
Less allowance for credit losses
|
22,797
|
21,153
|
||||||||||||||
Net loans
|
$
|
2,232,919
|
$
|
2,227,683
|
June 30, 2024/
|
||||||||
December 31, 2023
|
||||||||
Change
|
||||||||
Amount
|
%
|
|||||||
Real estate:
|
||||||||
Residential
|
$
|
(5,402
|
)
|
(1.5
|
)
|
|||
Commercial
|
17,382
|
1.6
|
||||||
Agricultural
|
12,255
|
3.9
|
||||||
Construction
|
(15,669
|
)
|
(8.0
|
)
|
||||
Consumer
|
9,226
|
15.0
|
||||||
Other commercial loans
|
(5,317
|
)
|
(3.9
|
)
|
||||
Other agricultural loans
|
(4,426
|
)
|
(14.4
|
)
|
||||
State & political subdivision loans
|
(1,169
|
)
|
(2.0
|
)
|
||||
Total loans
|
$
|
6,880
|
0.3
|
June 30,
|
December 31
|
|||||||||||||||
2024
|
2023
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Real estate loans:
|
||||||||||||||||
Residential
|
$
|
2,355
|
15.7
|
$
|
2,354
|
16.0
|
||||||||||
Commercial
|
10,283
|
49.2
|
9,178
|
48.6
|
||||||||||||
Agricultural
|
3,770
|
14.5
|
3,264
|
14.0
|
||||||||||||
Construction
|
1,627
|
8.0
|
1,950
|
8.7
|
||||||||||||
Consumer
|
1,211
|
3.1
|
1,496
|
2.7
|
||||||||||||
Other commercial loans
|
3,256
|
5.8
|
2,229
|
6.1
|
||||||||||||
Other agricultural loans
|
206
|
1.2
|
270
|
1.4
|
||||||||||||
State & political subdivision loans
|
63
|
2.5
|
45
|
2.5
|
||||||||||||
Unallocated
|
26
|
N/A
|
367
|
N/A
|
||||||||||||
Total allowance for credit losses
|
$
|
22,797
|
100.0
|
$
|
21,153
|
100.0
|
June 30, 2024
|
Credit Loss Expense (Benefit)
|
Net (charge-
offs)
Recoveries
|
Average
Loans
|
Ratio of net (charge-offs) recoveries to Average loans
|
Allowance
to total
loans
|
Non-
accrual
loans as a
percent of
loans
|
Allowance to
total non-
accrual
loans |
|||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||
Residential
|
$
|
1
|
$
|
-
|
$
|
358,472
|
0.00
|
%
|
0.66
|
%
|
0.86
|
%
|
77.31
|
%
|
||||||||||||||
Commercial
|
1,105
|
-
|
1,108,819
|
0.00
|
%
|
0.93
|
%
|
0.23
|
%
|
407.41
|
%
|
|||||||||||||||||
Agricultural
|
506
|
-
|
319,444
|
0.00
|
%
|
1.15
|
%
|
0.77
|
%
|
149.66
|
%
|
|||||||||||||||||
Construction
|
(323
|
)
|
-
|
187,001
|
0.00
|
%
|
0.90
|
%
|
1.08
|
%
|
83.52
|
%
|
||||||||||||||||
Consumer
|
(258
|
)
|
(27
|
)
|
89,472
|
(0.03
|
%)
|
1.72
|
%
|
1.23
|
%
|
139.04
|
%
|
|||||||||||||||
Other commercial loans
|
2,342
|
(1,315
|
)
|
134,727
|
(0.98
|
%)
|
2.49
|
%
|
2.77
|
%
|
89.70
|
%
|
||||||||||||||||
Other agricultural loans
|
(64
|
)
|
-
|
25,843
|
0.00
|
%
|
0.78
|
%
|
1.57
|
%
|
50.12
|
%
|
||||||||||||||||
State & political subdivision loans
|
18
|
-
|
56,469
|
0.00
|
%
|
0.11
|
%
|
0.00
|
%
|
|
NA | |||||||||||||||||
Unallocated
|
(341
|
)
|
-
|
-
|
|
NA |
|
NA |
|
NA |
|
NA | ||||||||||||||||
Total
|
$
|
2,986
|
$
|
(1,342
|
)
|
$
|
2,280,247
|
(0.06
|
%)
|
1.01
|
%
|
0.66
|
%
|
152.50
|
%
|
December 31, 2023
|
Credit Loss Expense (Benefit)
|
Net (charge-
offs)
Recoveries
|
Average
Loans
|
Ratio of net (charge-offs) recoveries to Average loans
|
Allowance
to total
loans
|
Non-
accrual
loans as a
percent of
loans
|
Allowance to
total non-
accrual
loans
|
|||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||
Residential
|
$
|
1,112
|
$
|
(1
|
)
|
$
|
290,971
|
0.00
|
%
|
0.65
|
%
|
0.86
|
%
|
76.38
|
%
|
|||||||||||||
Commercial
|
2,089
|
-
|
986,188
|
0.00
|
%
|
0.84
|
%
|
0.10
|
%
|
808.63
|
%
|
|||||||||||||||||
Agricultural
|
(217
|
)
|
-
|
312,423
|
0.00
|
%
|
1.04
|
%
|
0.85
|
%
|
122.25
|
%
|
||||||||||||||||
Construction
|
1,252
|
-
|
135,315
|
0.00
|
%
|
1.00
|
%
|
1.20
|
%
|
82.73
|
%
|
|||||||||||||||||
Consumer
|
(31
|
)
|
(325
|
)
|
94,519
|
(0.34
|
%)
|
2.44
|
%
|
1.14
|
%
|
213.41
|
%
|
|||||||||||||||
Other commercial loans
|
1,643
|
(954
|
)
|
95,300
|
(1.00
|
%)
|
1.64
|
%
|
1.29
|
%
|
127.37
|
%
|
||||||||||||||||
Other agricultural loans
|
-
|
-
|
30,557
|
0.00
|
%
|
0.88
|
%
|
1.60
|
%
|
54.88
|
%
|
|||||||||||||||||
State & political subdivision loans
|
3
|
-
|
59,308
|
0.00
|
%
|
0.08
|
%
|
0.00
|
%
|
|
NA | |||||||||||||||||
Unallocated
|
(359
|
)
|
-
|
-
|
|
NA |
|
NA |
|
NA |
|
NA | ||||||||||||||||
Total
|
$
|
5,492
|
$
|
(1,280
|
)
|
$
|
2,004,581
|
(0.06
|
%)
|
0.94
|
%
|
0.54
|
%
|
173.57
|
%
|
June 30,
|
December 31,
|
|||||||
(dollars in thousands)
|
2024
|
2023
|
||||||
Non-performing loans:
|
||||||||
Non-accruing loans
|
$
|
14,949
|
$
|
12,187
|
||||
Accrual loans - 90 days or more past due
|
285
|
516
|
||||||
Total non-performing loans
|
15,234
|
12,703
|
||||||
Foreclosed assets held for sale
|
2,690
|
474
|
||||||
Total non-performing assets
|
$
|
17,924
|
$
|
13,177
|
June 30, 2024
|
December 31, 2023
|
|||||||||||||||||||||||||||||||
Non-Performing Loans
|
Non-Performing Loans
|
|||||||||||||||||||||||||||||||
30 - 89 Days
|
30 - 89 Days
|
|||||||||||||||||||||||||||||||
Past Due
|
90 Days Past
|
Non-
|
Total Non-
|
Past Due
|
90 Days Past
|
Non-
|
Total Non-
|
|||||||||||||||||||||||||
(in thousands)
|
Accruing
|
Due Accruing
|
accrual
|
Performing
|
Accruing
|
Due Accruing
|
accrual
|
Performing
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||
Residential
|
$
|
2,069
|
$
|
76
|
$
|
3,046
|
$
|
3,122
|
$
|
3,061
|
$
|
18
|
$
|
3,082
|
$
|
3,100
|
||||||||||||||||
Commercial
|
14,073
|
168
|
2,524
|
2,692
|
1,396
|
404
|
1,135
|
1,539
|
||||||||||||||||||||||||
Agricultural
|
2,521
|
-
|
2,519
|
2,519
|
73
|
75
|
2,670
|
2,745
|
||||||||||||||||||||||||
Construction
|
978
|
-
|
1,948
|
1,948
|
4,795
|
-
|
2,357
|
2,357
|
||||||||||||||||||||||||
Consumer
|
168
|
16
|
871
|
887
|
298
|
13
|
701
|
714
|
||||||||||||||||||||||||
Other commercial loans
|
399
|
25
|
3,630
|
3,655
|
826
|
6
|
1,750
|
1,756
|
||||||||||||||||||||||||
Other agricultural loans
|
451
|
-
|
411
|
411
|
7
|
-
|
492
|
492
|
||||||||||||||||||||||||
Total nonperforming loans
|
$
|
20,659
|
$
|
285
|
$
|
14,949
|
$
|
15,234
|
$
|
10,456
|
$
|
516
|
$
|
12,187
|
$
|
12,703
|
Change in Non-Performing Loans
|
||||||||
June 30, 2024 /December 31, 2023
|
||||||||
(in thousands)
|
Amount
|
%
|
||||||
Real estate:
|
||||||||
Residential
|
$
|
22
|
0.7
|
|||||
Commercial
|
1,153
|
74.9
|
||||||
Agricultural
|
(226
|
)
|
(8.2
|
)
|
||||
Construction
|
(409
|
)
|
(17.4
|
)
|
||||
Consumer
|
173
|
24.2
|
||||||
Other commercial loans
|
1,899
|
108.1
|
||||||
Other agricultural loans
|
(81
|
)
|
(16.5
|
)
|
||||
Total nonperforming loans
|
$
|
2,531
|
19.9
|
• |
A commercial loan relationship with $580,000 outstanding, and additional letters of credit of $1.2 million available, secured by undeveloped land, stone quarries and equipment, was on non-accrual status as of June 30, 2024. The Company
services the natural gas industry, as well as local municipalities. As a result, the reduced exploration for natural gas in north central Pennsylvania has significantly impacted the cash flows of the customer, who provides excavation services
and stone for pad construction related to these activities. During 2020, the Company had the underlying equipment collateral appraised and in the first quarter of 2022, the Company had the quarry appraised. The appraisals indicated a decrease
in collateral values compared to the appraisal ordered for the loan origination, however, the loan was still considered well secured on a loan to value basis at June 30, 2024. In 2022 and 2023, the customer liquidated some excess equipment
and the funds have been utilized to pay down a portion of the loans. Management determined that no specific reserve was required as of June 30, 2024.
|
• |
An agricultural loan customer with a total loan relationship of $1.4 million, secured by real estate, equipment and cattle, was on non-accrual status as of June 30, 2024. The customer declared bankruptcy during the fourth quarter of 2018
and developed a workout plan that was approved by the bankruptcy court in the fourth quarter of 2019 and resulted in monthly payments resuming in late 2019 that continued through 2023. The customer did miss a portion of required payments in
2023, however, in January 2024 the customer modified the bankruptcy plan to account for these missed payments. Included within these loans to this customer are loans which are subject to Farm Service Agency guarantees in excess of $700,000.
Depressed milk prices created cash flow difficulties for this customer. Absent a sizable and sustained increase in milk prices, which is not assured, we will need to rely upon the collateral for repayment of interest and principal. During
2023, the Company had the underlying collateral appraised. Management determined that no specific reserve was required as of June 30, 2024.
|
• |
An agricultural loan customer with a total loan relationship of $1.1 million, secured by real estate was on non-accrual status as of June 30, 2024. The customer filed bankruptcy in the first quarter of 2023 with the plan approved in the
second quarter of 2024. The first payment under the plan was received in the second quarter of 2024. We expect that we will need to rely upon the collateral for repayment of interest and principal. During 2023, the Company had the underlying
collateral appraised. Management reviewed the collateral and determined that no specific reserve was required as of June 30, 2024.
|
• |
A commercial construction loan customer with a total loan relationship of $1.9 million, secured by partially developed real estate, was on non-accrual status as of June 30, 2024. The customer has experienced delays in developing the real
estate for resale resulting in financing difficulties. Management reviewed the collateral and determined that no specific reserve was required as of June 30, 2024.
|
• |
A commercial and residential real estate customer with a total relationship of $1.2 million secured by a restaurant and residence was on non-accrual status as of June 30, 2024. The customer has experienced a slow-down in business at the
restaurant as well as higher operating costs creating cashflow difficulties. Management reviewed the collateral and determined that a specific reserve of $80,000 was required as of June 30, 2024.
|
• |
A commercial loan relationship with $1.7 millin outstanding secured by residential and commercial real estate, a car collection and gun collection was on non-accrual status as of June 30, 2024. The Company lost a contract and has gone out
of business. We expect that we will need to rely upon the collateral for repayment of interest and principal. Management determined that no specific reserve was required as of June 30, 2024.
|
• |
Six loan relationships comprise 52.38% of the non-performing loan balance, which required a specific reserve of $80,000 as of June 30, 2024.
|
• |
The Company has a history of low charge-offs, which were 0.12% of average loans on an annualized basis for 2024 and 0.09% for 2023.
|
June 30,
|
December 31,
|
|||||||||||||||
2024
|
2023
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Non-interest-bearing deposits
|
$
|
501,991
|
22.1
|
$
|
523,784
|
22.6
|
||||||||||
Interest bearing demand deposits
|
15,122
|
0.7
|
-
|
-
|
||||||||||||
NOW accounts
|
586,906
|
25.8
|
670,712
|
28.9
|
||||||||||||
Savings deposits
|
298,286
|
13.1
|
307,357
|
13.2
|
||||||||||||
Money market deposit accounts
|
401,246
|
17.7
|
400,154
|
17.2
|
||||||||||||
Certificates of deposit
|
469,544
|
20.6
|
419,474
|
18.1
|
||||||||||||
Total
|
$
|
2,273,095
|
100.0
|
$
|
2,321,481
|
100.0
|
June 30, 2024/
|
||||||||
December 31, 2023
|
||||||||
Change
|
||||||||
Amount
|
%
|
|||||||
Non-interest-bearing deposits
|
$
|
(21,793
|
)
|
(4.2
|
)
|
|||
Interest bearing demand deposits
|
15,122
|
NA
|
||||||
NOW accounts
|
(83,806
|
)
|
(12.5
|
)
|
||||
Savings deposits
|
(9,071
|
)
|
(3.0
|
)
|
||||
Money market deposit accounts
|
1,092
|
0.3
|
||||||
Certificates of deposit
|
50,070
|
11.9
|
||||||
Total
|
$
|
(48,386
|
)
|
(2.1
|
)
|
Actual
|
For Capital Adequacy Purposes
|
To Be Well Capitalized
Under Prompt Corrective
Action Provisions
|
||||||||||||||||||||||
June 30, 2024
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Company
|
$
|
275,549
|
11.66
|
%
|
$
|
189,074
|
8.00
|
%
|
$
|
236,342
|
10.00
|
%
|
||||||||||||
Bank
|
$
|
279,717
|
11.85
|
%
|
$
|
188,787
|
8.00
|
%
|
$
|
235,984
|
10.00
|
%
|
||||||||||||
Tier 1 Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Company
|
$
|
233,086
|
9.86
|
%
|
$
|
141,805
|
6.00
|
%
|
$
|
189,074
|
8.00
|
%
|
||||||||||||
Bank
|
$
|
256,443
|
10.87
|
%
|
$
|
141,590
|
6.00
|
%
|
$
|
188,787
|
8.00
|
%
|
||||||||||||
Common Equity Tier 1 Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Company
|
$
|
225,586
|
9.54
|
%
|
$
|
106,354
|
4.50
|
%
|
$
|
153,622
|
6.50
|
%
|
||||||||||||
Bank
|
$
|
256,443
|
10.87
|
%
|
$
|
106,193
|
4.50
|
%
|
$
|
153,389
|
6.50
|
%
|
||||||||||||
Tier 1 Capital (to Average Assets):
|
||||||||||||||||||||||||
Company
|
$
|
233,086
|
8.07
|
%
|
$
|
115,584
|
4.00
|
%
|
$
|
144,480
|
5.00
|
%
|
||||||||||||
Bank
|
$
|
255,682
|
8.88
|
%
|
$
|
115,501
|
4.00
|
%
|
$
|
144,376
|
5.00
|
%
|
June 30, 2024
|
December 31, 2023
|
|||||||
Commitments to extend credit
|
$
|
462,409
|
$
|
546,006
|
||||
Standby letters of credit
|
16,107
|
18,682
|
||||||
$
|
478,516
|
$
|
564,688
|
|||||
Allowance for Credit Losses - Off-Balance Sheet credit Exposure
|
$
|
1,066
|
$
|
938
|
Change In
|
% Change In
|
|||||||||||
Prospective One-Year
|
Prospective
|
Prospective
|
||||||||||
Changes in Rates
|
Net Interest Income
|
Net Interest Income
|
Net Interest Income
|
|||||||||
-400 Shock
|
$
|
93,286
|
$
|
6,936
|
8.03
|
|||||||
-300 Shock
|
91,313
|
4,963
|
5.75
|
|||||||||
-200 Shock
|
90,224
|
3,874
|
4.49
|
|||||||||
-100 Shock
|
88,709
|
2,359
|
2.73
|
|||||||||
Base
|
86,350
|
-
|
-
|
|||||||||
+100 Shock
|
84,010
|
(2,340
|
)
|
(2.71
|
)
|
|||||||
+200 Shock
|
81,022
|
(5,328
|
)
|
(6.17
|
)
|
|||||||
+300 Shock
|
78,534
|
(7,816
|
)
|
(9.05
|
)
|
|||||||
+400 Shock
|
76,041
|
(10,309
|
)
|
(11.94
|
)
|
ISSUER PURCHASES OF EQUITY SECURITIES
|
||||||||||||||||
Period
|
Total Number of
Shares (or units
Purchased)
|
Average Price
Paid per Share
(or Unit)
|
Total Number of Shares (or
Units) Purchased as Part of
Publicly Announced Plans
of Programs
|
Maximum Number (or
Approximate Dollar Value) of
Shares (or Units) that May Yet
Be Purchased Under the
Plans or Programs (1)
|
||||||||||||
4/1/24 to 4/30/24
|
-
|
$
|
0.00
|
-
|
149,112
|
|||||||||||
5/1/24 to 5/31/24
|
881
|
$
|
42.02
|
881
|
148,231
|
|||||||||||
6/1/24 to 6/30/24
|
-
|
$
|
0.00
|
-
|
148,231
|
|||||||||||
Total
|
881
|
$
|
42.02
|
881
|
148,231
|
(1) |
On April 22, 2023, the Company announced that the Board of Directors authorized the Company to repurchase up to an additional 150,000 shares at an aggregate purchase price not to exceed $15.0 million over a
period of 36 months. The repurchases will be conducted through open-market purchases or privately negotiated transactions and will be made from time to time depending on market conditions and other factors. No time limit was placed on the
duration of the share repurchase program. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes.
|
Restated Articles of Incorporation of Citizens Financial Services, Inc. (1)
|
|
Articles of Amendment of Restated Articles of Incorporation of Citizens Financial Services, Inc. (2)
|
|
Bylaws of Citizens Financial Services, Inc. (3)
|
|
Amendment No. 1 to Amended and Restated Bylaws of Citizens Financial Services, Inc. (4)
|
|
Form of Common Stock Certificate. (5)
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
|
|
Section 1350 Certification of Chief Executive Officer and Chief Financial Officer
|
|
101
|
The following materials from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2024, formatted in XBRL (Extensible Business Reporting Language): (i) The Consolidated Balance Sheet
(unaudited), (ii) the Consolidated Statement of Income (unaudited), (iii) the Consolidated Statement of Comprehensive Income (unaudited), (iv) the Consolidated Statement of Changes in Stockholders’ Equity, (v) the Consolidated Statement of
Cash Flows (unaudited) and (vi) related notes (unaudited).
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
Citizens Financial Services, Inc.
|
||
(Registrant)
|
||
August 8, 2024 |
/s/ Randall E. Black
|
|
By: Randall E. Black
|
||
President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
||
August 8, 2024 |
/s/ Stephen J. Guillaume
|
|
By: Stephen J. Guillaume
|
||
Chief Financial Officer
|
||
(Principal Financial and Accounting Officer)
|
Date: August 8, 2024 |
|
By: /s/ Randall E. Black |
By: Randall E. Black
|
||
President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
Date: August 8, 2024 | |
By: /s/ Stephen J. Guillaume |
By: Stephen J. Guillaume
|
||
Chief Financial Officer
|
||
(Principal Financial and Accounting Officer)
|
1. |
The Report fully complies with the requirements of section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered in the Report.
|
By: /s/ Randall E. Black | |
|
By: Randall E. Black | |
|
President and Chief Executive Officer | |
|
(Principal Executive Officer) | |
|
Date: August 8, 2024 | ||
By: /s/ Stephen J. Guillaume | ||
By: Stephen J. Guillaume | ||
Chief Financial Officer | ||
(Principal Financial and Accounting Officer) | ||
Date: August 8, 2024 |
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
ASSETS: | ||
Loans, allowance for credit losses - loans | $ 22,797 | $ 21,153 |
STOCKHOLDERS' EQUITY: | ||
Preferred Stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred Stock, issued (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 1 | $ 1 |
Common Stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Common Stock, issued (in shares) | 5,207,343 | 5,160,754 |
Treasury stock, shares (in shares) | 447,857 | 453,760 |
CONSOLIDATED STATEMENT OF INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
INTEREST INCOME: | ||||
Interest and fees on loans | $ 35,067 | $ 24,117 | $ 70,200 | $ 46,666 |
Interest-bearing deposits with banks | 262 | 127 | 505 | 198 |
Investment securities: | ||||
Taxable | 1,663 | 1,683 | 3,287 | 3,239 |
Nontaxable | 520 | 572 | 1,052 | 1,189 |
Dividends | 390 | 311 | 791 | 625 |
TOTAL INTEREST INCOME | 37,902 | 26,810 | 75,835 | 51,917 |
INTEREST EXPENSE: | ||||
Deposits | 12,655 | 5,480 | 24,976 | 9,419 |
Borrowed funds | 3,947 | 3,409 | 8,601 | 6,497 |
TOTAL INTEREST EXPENSE | 16,602 | 8,889 | 33,577 | 15,916 |
NET INTEREST INCOME | 21,300 | 17,921 | 42,258 | 36,001 |
Provision for credit losses | 2,002 | 262 | 2,787 | 262 |
Provision for credit losses - acquisition day 1 non-PCD | 0 | 4,591 | 0 | 4,591 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 19,298 | 13,068 | 39,471 | 31,148 |
NON-INTEREST INCOME: | ||||
Service charges | 1,385 | 1,293 | 2,757 | 2,504 |
Trust | 201 | 181 | 445 | 411 |
Brokerage and insurance | 563 | 442 | 1,228 | 956 |
Gains on loans sold | 479 | 169 | 896 | 214 |
Equity security losses, net | (87) | (74) | (32) | (292) |
Available for sale security losses, net | 0 | (51) | 0 | (51) |
Gain on sale of Braavo division | 0 | 0 | 1,102 | 0 |
Earnings on bank owned life insurance | 328 | 234 | 996 | 452 |
Other | 467 | 86 | 915 | 260 |
TOTAL NON-INTEREST INCOME | 3,336 | 2,280 | 8,307 | 4,454 |
NON-INTEREST EXPENSES: | ||||
Salaries and employee benefits | 9,617 | 7,916 | 19,907 | 15,593 |
Occupancy | 1,266 | 814 | 2,590 | 1,649 |
Furniture and equipment | 295 | 162 | 531 | 313 |
Professional fees | 698 | 387 | 1,401 | 768 |
FDIC insurance | 509 | 325 | 1,034 | 625 |
Pennsylvania shares tax | 330 | 298 | 640 | 596 |
Amortization of intangibles | 147 | 31 | 296 | 62 |
Merger and acquisition | 0 | 8,402 | 0 | 8,646 |
Software expenses | 494 | 372 | 1,008 | 723 |
ORE expenses (recoveries) | 175 | (11) | 162 | 15 |
Other | 2,715 | 1,984 | 5,320 | 3,468 |
TOTAL NON-INTEREST EXPENSES | 16,246 | 20,680 | 32,889 | 32,458 |
Income (loss) before provision (benefit) for income taxes | 6,388 | (5,332) | 14,889 | 3,144 |
Provision (benefit) for income taxes | 1,113 | (1,188) | 2,590 | 421 |
NET INCOME (LOSS) | $ 5,275 | $ (4,144) | $ 12,299 | $ 2,723 |
PER COMMON SHARE DATA: | ||||
Net Income (Loss) - Basic | $ 1.11 | $ (1) | $ 2.59 | $ 0.66 |
Net Income (Loss) - Diluted | 1.11 | (1) | 2.59 | 0.66 |
Cash Dividends Paid (in dollars per share) | $ 0.485 | $ 0.475 | $ 0.97 | $ 0.949 |
Number of shares used in computation - basic (in shares) | 4,748,927 | 4,159,966 | 4,748,523 | 4,106,005 |
Number of shares used in computation - diluted (in shares) | 4,753,697 | 4,159,966 | 4,753,918 | 4,106,005 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ||||
Net income (loss) | $ 5,275 | $ (4,144) | $ 12,299 | $ 2,723 |
Other comprehensive income (loss): | ||||
Change in unrealized gains (losses) on available for sale securities | 1,154 | (5,995) | (1,166) | 2,982 |
Income tax effect | (243) | 1,259 | 246 | (626) |
Change in unrecognized pension cost | 14 | 7 | 16 | 14 |
Income tax effect | (3) | (2) | (3) | (3) |
Change in unrealized (loss) gain on interest rate swaps | (296) | 600 | (144) | (310) |
Income tax effect | 62 | (126) | 30 | 65 |
Less: Reclassification adjustment for investment security gains included in net income | 0 | 51 | 0 | 51 |
Income tax effect | 0 | (12) | 0 | (12) |
Other comprehensive income (loss), net of tax | 688 | (4,218) | (1,021) | 2,161 |
Comprehensive income (loss) | $ 5,963 | $ (8,362) | $ 11,278 | $ 4,884 |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive (Loss) Income [Member] |
Treasury Stock [Member] |
Total |
---|---|---|---|---|---|---|
Balance at Dec. 31, 2022 | $ 4,428 | $ 80,911 | $ 164,922 | $ (33,141) | $ (16,973) | $ 200,147 |
Balance (in shares) at Dec. 31, 2022 | 4,427,687 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2,723 | 2,723 | ||||
Net other comprehensive income (loss) | 2,161 | 2,161 | ||||
Stock dividend | $ 39 | 2,982 | 0 | |||
Stock dividend | (3,021) | |||||
Stock dividend (in shares) | 39,209 | |||||
Issuance of Common stock | $ 694 | 59,443 | 60,137 | |||
Issuance of Common stock (in shares) | 693,858 | |||||
Restricted stock, executive and Board of Director awards | (145) | 180 | 35 | |||
Restricted stock vesting | 150 | 150 | ||||
Forfeited restricted stock | 10 | (10) | 0 | |||
Change in Accounting policy for allowance for credit losses | 1,766 | 1,766 | ||||
Cash dividends | (3,891) | (3,891) | ||||
Balance at Jun. 30, 2023 | $ 5,161 | 143,351 | 162,499 | (30,980) | (16,803) | 263,228 |
Balance (in shares) at Jun. 30, 2023 | 5,160,754 | |||||
Balance at Mar. 31, 2023 | $ 4,428 | 80,926 | 171,629 | (26,762) | (16,983) | 213,238 |
Balance (in shares) at Mar. 31, 2023 | 4,427,687 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (4,144) | (4,144) | ||||
Net other comprehensive income (loss) | (4,218) | (4,218) | ||||
Stock dividend | $ 39 | 2,982 | 0 | |||
Stock dividend | (3,021) | |||||
Stock dividend (in shares) | 39,209 | |||||
Issuance of Common stock | $ 694 | 59,443 | 60,137 | |||
Issuance of Common stock (in shares) | 693,858 | |||||
Restricted stock, executive and Board of Director awards | (145) | 180 | 35 | |||
Restricted stock vesting | 145 | 145 | ||||
Cash dividends | (1,965) | (1,965) | ||||
Balance at Jun. 30, 2023 | $ 5,161 | 143,351 | 162,499 | (30,980) | (16,803) | 263,228 |
Balance (in shares) at Jun. 30, 2023 | 5,160,754 | |||||
Balance at Dec. 31, 2023 | $ 5,161 | 143,233 | 172,975 | (24,911) | (16,792) | 279,666 |
Balance (in shares) at Dec. 31, 2023 | 5,160,754 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 12,299 | 12,299 | ||||
Net other comprehensive income (loss) | (1,021) | (1,021) | ||||
Stock dividend | $ 46 | 2,001 | 0 | |||
Stock dividend | (2,047) | |||||
Stock dividend (in shares) | 46,589 | |||||
Purchase of treasury stock | (81) | (81) | ||||
Restricted stock, executive and Board of Director awards | (417) | 495 | 78 | |||
Restricted stock vesting | 168 | 168 | ||||
Cash dividends | (4,639) | (4,639) | ||||
Balance at Jun. 30, 2024 | $ 5,207 | 144,985 | 178,588 | (25,932) | (16,378) | 286,470 |
Balance (in shares) at Jun. 30, 2024 | 5,207,343 | |||||
Balance at Mar. 31, 2024 | $ 5,161 | 143,227 | 177,693 | (26,620) | (16,787) | 282,674 |
Balance (in shares) at Mar. 31, 2024 | 5,160,754 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 5,275 | 5,275 | ||||
Net other comprehensive income (loss) | 688 | 688 | ||||
Stock dividend | $ 46 | 2,001 | 0 | |||
Stock dividend | (2,047) | |||||
Stock dividend (in shares) | 46,589 | |||||
Purchase of treasury stock | (36) | (36) | ||||
Restricted stock, executive and Board of Director awards | (408) | 445 | 37 | |||
Restricted stock vesting | 165 | 165 | ||||
Cash dividends | (2,333) | (2,333) | ||||
Balance at Jun. 30, 2024 | $ 5,207 | $ 144,985 | $ 178,588 | $ (25,932) | $ (16,378) | $ 286,470 |
Balance (in shares) at Jun. 30, 2024 | 5,207,343 |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | ||||
Purchase of treasury stock (in shares) | 881 | 1,776 | ||
Restricted stock (in shares) | 6,786 | 2,652 | 7,668 | 2,652 |
Cash dividends (in dollars per share) | $ 0.485 | $ 0.475 | $ 0.97 | $ 0.949 |
CONSOLIDATED STATEMENT OF CASH FLOWS $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income (loss) | $ (4,144) | $ 12,299 | $ 2,723 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for credit losses | 2,787 | 4,853 | ||||
Depreciation and amortization | 958 | 530 | ||||
Amortization and accretion of loans and other assets | (2,243) | (825) | ||||
Amortization and accretion of investment securities | 759 | 826 | ||||
Deferred income taxes | 425 | 125 | ||||
Investment securities losses, net | 33 | 343 | ||||
Earnings on bank owned life insurance | (234) | (996) | (452) | |||
Vesting of restricted stock | 168 | 150 | ||||
Originations of loans held for sale | (74,816) | (12,730) | ||||
Proceeds from sales of loans held for sale | 70,820 | 9,444 | ||||
Realized gains on loans sold | (169) | (896) | (214) | |||
Realized gains on sale of Braavo | 0 | (1,102) | 0 | |||
Decrease in accrued interest receivable | 261 | 275 | ||||
Gain on sale of foreclosed assets held for sale | (119) | (67) | ||||
Increase in accrued interest payable | 1,184 | 139 | ||||
Other, net | 6,956 | (2,219) | ||||
Net cash provided by operating activities | 16,478 | 2,901 | ||||
Available-for-sale securities: | ||||||
Proceeds from sales | 86,504 | 0 | 86,504 | |||
Proceeds from maturity and principal repayments | 27,061 | 10,336 | ||||
Purchase of securities | (14,045) | (10,246) | ||||
Proceeds from sale of equity securities | 335 | 67 | ||||
Purchase of interest bearing time deposits with other banks | (100) | 0 | ||||
Proceeds from matured interest bearing time deposits with other banks | 350 | 1,241 | ||||
Proceeds from life insurance | 1,147 | 0 | ||||
Proceeds from redemption of regulatory stock | 15,665 | 10,839 | ||||
Purchase of regulatory stock | (14,135) | (12,789) | ||||
Net (increase) decrease in loans | (13,486) | 40,119 | ||||
Purchase of premises and equipment | (226) | (1,926) | ||||
Investments in low income housing partnerships | 0 | (591) | ||||
Proceeds from sale of foreclosed assets held for sale | 392 | 233 | ||||
Proceeds from sale of Braavo assets | 7,185 | 0 | ||||
Acquisition, net of cash paid | 0 | 4,905 | ||||
Net cash provided by investing activities | 10,143 | 128,692 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Net decrease in deposits | (48,385) | (111,473) | ||||
Proceeds from long-term borrowings | 0 | 20,000 | ||||
Repayments of long-term borrowings | (5,000) | 0 | ||||
Net increase (decrease) in short-term borrowed funds | 17,099 | (17,731) | ||||
Purchase of treasury and restricted stock | (81) | 0 | ||||
Dividends paid | (4,639) | (3,891) | ||||
Net cash used by financing activities | (41,006) | (113,095) | ||||
Net (decrease) increase in cash and cash equivalents | (14,385) | 18,498 | ||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 52,818 | 26,211 | ||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 44,709 | 38,433 | 44,709 | |||
Supplemental Disclosures of Cash Flow Information: | ||||||
Interest paid | 32,393 | 14,892 | ||||
Income taxes paid | 750 | 3,600 | ||||
Loans transferred to foreclosed property | 2,490 | 49 | ||||
Right of use asset and liability | 169 | 5 | ||||
Stock Dividend | 2,047 | 3,021 | ||||
CECL adjustment | 0 | 3,300 | ||||
Non-cash assets acquired | ||||||
Goodwill | $ 85,758 | [1] | ||||
HV Bancorp, Inc. [Member] | ||||||
Non-cash assets acquired | ||||||
Available-for-sale securities | 79,248 | 79,248 | ||||
Interest bearing time deposits with other banks | 0 | 0 | ||||
Loans held for sale | 10,750 | 10,750 | ||||
Loans | 475,338 | 475,338 | ||||
Premises and equipment | 2,310 | 2,310 | ||||
Accrued interest receivable | 2,226 | 2,226 | ||||
Bank owned life insurance | 10,387 | 10,387 | ||||
Intangibles | 2,972 | 2,972 | ||||
Deferred tax asset | 8,392 | 8,392 | ||||
Other assets | 18,213 | 18,213 | ||||
Goodwill | 53,382 | 53,382 | ||||
Total non-cash assets acquired | 663,218 | 663,218 | ||||
Liabilities assumed | ||||||
Noninterest-bearing deposits | 197,549 | 197,549 | ||||
Interest-bearing deposits | 335,816 | 335,816 | ||||
Accrued interest payable | 885 | 885 | ||||
Borrowed funds | 58,647 | 58,647 | ||||
Other liabilities | 11,674 | 11,674 | ||||
Total liabilities assumed | 604,571 | 604,571 | ||||
Net non-cash assets acquired | 58,647 | 58,647 | ||||
Cash and cash equivalents acquired | $ 18,017 | $ 18,017 | ||||
|
Basis of Presentation |
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Basis of Presentation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation |
Note 1 – Basis of Presentation
Citizens Financial Services, Inc. (individually and collectively with its direct and
indirect subsidiaries, the “Company”) is a Pennsylvania corporation and its wholly owned subsidiary is CZFS Acquisition Company, LLC. CZFS Acquisition Company, LLC is the
holding company of its wholly owned subsidiary, First Citizens Community Bank (the “Bank”), and of the Bank’s wholly owned subsidiaries, First Citizens Insurance Agency, Inc. (“First Citizens Insurance”) and 1st Realty of PA LLC (“Realty”).
The accompanying consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”)
and in conformity with U.S. generally accepted accounting principles. Because this report is based on an interim period, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S.
generally accepted accounting principles have been condensed or omitted. Certain of the prior year amounts have been reclassified to conform with the current year presentation. Such reclassifications had no effect on net income or stockholders’
equity. All material inter‑company balances and transactions have been eliminated in consolidation.
In the
opinion of management of the Company, the accompanying interim consolidated financial statements at June 30, 2024 and for the periods ended June 30, 2024 and 2023 include all adjustments, consisting of only normal recurring adjustments, necessary
for a fair presentation of the financial condition and the results of operations at the dates and for the periods presented. In preparing the consolidated financial statements, 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 of revenues and expenses for the periods covered by the Consolidated Statement of Income. The financial performance reported for the Company for the six month
period ended June 30, 2024 is not necessarily indicative of the results to be expected for the full year. This information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Accounting Pronouncements Adopted in 2023
In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” and subsequent related updates. This ASU replaces the incurred loss methodology for recognizing credit
losses and requires businesses and other organizations to measure the current expected credit losses (CECL) on financial assets measured at amortized cost, including loans and held-to-maturity securities, net investments in leases, off-balance
sheet credit exposures such as unfunded commitments, and other financial instruments. In addition, ASC 326 requires credit losses on available-for-sale debt securities to be presented as an allowance rather than as a write-down when management does
not intend to sell or believes that it is not more likely than not they will be required to sell. This guidance became effective on January 1, 2023 for the Company. The results reported for periods beginning after January 1, 2023 are presented
under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable accounting standards.
The Company adopted this guidance, and subsequent
related updates, using the modified retrospective approach for all financial assets measured at amortized cost, including loans and held-to-maturity debt securities, available-for-sale debt securities and unfunded commitments. On January 1, 2023,
the Bank recorded a cumulative effect increase to retained earnings of $1.8 million, net of tax, of which $3.3 million related to loans and ($1.1)
million related to unfunded commitments.
The Company adopted the provisions of ASC 326
related to financial assets purchased with credit deterioration (PCD) that were previously classified as purchased credit impaired (PCI) and accounted for under ASC 310-30 using the prospective transition approach. In accordance with the standard,
management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption.
The Company expanded the pooling utilized under the legacy incurred loss method to include additional segmentation based
on risk. The impact of the change from the incurred loss model to the current expected credit loss model is detailed below (in thousands):
The Company adopted the provisions of ASC 326 related to presenting other-than-temporary impairment on available-for-sale debt securities prior to January 1, 2023 using the prospective transition approach, though no such charges had been recorded on the securities held by the Company as of the date of adoption.
In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The amendments eliminate the accounting guidance for troubled debt restructurings by
creditors that have adopted CECL and enhance the disclosure requirements for modifications of receivables made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs by
year of origination for financing receivables and net investment in leases in the existing vintage disclosures. This ASU became effective on January 1, 2023 for the Corporation. The adoption of this ASU resulted in updated disclosures within our
financial statements but otherwise did not have a material impact on the Company’s consolidated financial statements.
Loans
A loan is classified as a modified loan to a borrower experiencing financial difficulty when a contractual loan
modification in the form of principal forgiveness, an interest rate reduction, an other-than-significant payment delay or a term extension (or a combination thereof) has been granted to an existing borrower experiencing financial difficulties.
The goal when modifying a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing modified loans to borrowers experiencing financial difficulty are primarily
comprised of loans on which interest is being accrued under the modified terms, and the loans are current or less than 90 days past due.
Allowance for Credit Losses – Loans and Leases
The allowance for credit losses (ACL) on loans and leases is a valuation account that is used to present the net amount
expected to be collected on a loan or lease. The ACL for loans and leases is adjusted through provision for credit losses as a charge against, or credit to, earnings. Loans and leases deemed to be uncollectible are charged against the ACL on
loans and leases, and any subsequent recoveries are credited to the ACL. Management evaluates the ACL on a quarterly basis. When changes in the reserve are necessary, an adjustment is made.
Depending on the nature of the pool of financial assets with similar risk characteristics, the models utilized by the Company to estimate expected credit losses include a discounted cash flow (“DCF”) model that discounts
instrument-level contractual cash flows, adjusted for prepayments and curtailments, incorporating loss expectations, and a weighted average remaining maturity model which contemplates expected losses at a pool-level, utilizing historic loss
information. The Company’s models for estimating the allowance for credit losses consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and
supportable forecasts. Management compares the results of this calculation to the amortized cost basis to determine its allowance for credit
loss balance.
Management uses relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable
forecasts in calculating its ACL. Historical credit loss experience provides the basis for the estimation of expected credit losses. Management determines whether there is a need to make qualitative adjustments to historical loss information by
monitoring certain factors including differences in current loan-specific risk characteristics as well as for changes in external or environmental conditions, or other relevant factors.
The contractual term used in projecting the cash flows of a loan is based on the maturity date of a loan, and is adjusted
for prepayment or curtailment assumptions which may shorten that contractual time period. Options to extend are considered by management in determining the contractual term.
The key inputs to the DCF model are (1) probability of default, (2) loss given default, (3) prepayment and curtailment
rates, (4) reasonable and supportable economic forecasts, (5) forecast reversion period, (6) expected recoveries on charged off loans, and (7) discount rate.
Probability of Default (PD)
In order to incorporate economic factors into forecasting within the DCF model, management elected to use the Loss Driver
method to generate the PD rate inputs. The Loss Driver method analyzes how one or more economic factors change the default rate using a statistical regression analysis. Management selected economic factors that had strong correlations to
historical default rates.
Loss Given Default (LGD)
Management elected to use the Frye Jacobs parameter for determining the LGD input, which is an estimation technique that
derives a LGD input from segment specific risk curves that correlates LGD with PD.
Prepayment and Curtailment Rates
Prepayment Rates: Loan level transaction data is used to calculate a semi-annual prepayment rate. Those semi-annual rates
are annualized and the average of the annualized rates is used in the DCF calculation for fixed payment or term loans. Rates are calculated for each pool.
Curtailment Rates: Loan level transaction data is used to calculate annual curtailment rates using any available
historical loan level data. The average of the historical rates is used in the DCF model for interest only payment or line of credit type loans. Rates are calculated for each pool.
Reasonable and Supportable Economic Forecasts
The forecast data used in the DCF model is obtained via a subscription to a widely recognized and relied upon company who
publishes various forecast scenarios. Management evaluates the various scenarios to determine a reasonable and supportable scenario.
Forecast Reversion Period
Management uses forecasts to predict how economic factors will perform and has determined to use a four quarter forecast
period as well as a four quarter straight-line reversion period to historical averages (also commonly referred to as the mean reversion period).
Expected Recoveries on Charged-off Loans
Management performs an analysis to estimate recoveries that could be reasonably expected based on historical experience in
order to account for expected recoveries on loans that have already been fully charged-off and are not included in the ACL calculation.
Discount Rate
The effective interest rate of the underlying loans and leases of the Company serves as the discount rate applied to the
expected periodic cash flows. Management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments.
Individual Evaluation
Management evaluates individual instruments for expected credit losses when those instruments do not share similar risk
characteristics with instruments evaluated using a collective (pooled) basis. Instruments will not be included in both collective and individual analyses. Individual analysis will establish a specific reserve for instruments in scope.
Management considers a financial asset as collateral-dependent when the debtor is experiencing financial difficulty and
repayment is expected to be provided substantially through the sale or operation of the collateral, based on management’s assessment as of the reporting date.
Accrued Interest Receivable on Loans and Leases
Accrued interest receivable on loans held for investment totaled $8.4 million and $8.5 million at June 30, 2024 and December 31,
2023, respectively, and is included within Accrued interest receivable. This amount is excluded from the estimate of expected credit losses.
Reserve for Unfunded Commitments
The Company maintains a reserve in other liabilities for off-balance sheet credit exposures such as unfunded commitments
that are currently unfunded in categories with historical loss experience. Management calculates funding rates annually using loan level data history at the portfolio level. The applicable pool level loss rates is then applied to calculate the
reserve for unfunded commitments liability each period.
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Revenue Recognition |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition |
Note 2 – Revenue Recognition
In accordance with ASC 606, Management determined that the primary sources of revenue emanating from interest and dividend income on loans and
investments along with noninterest revenue resulting from investment security gains, loan servicing, gains on loans sold, earnings on bank owned life insurances, gains and losses from derivative instruments and changes in the fair of loans
held for sale are not within the scope of ASC 606. The main types of noninterest income within the scope of the standard are as follows:
The following table depicts the disaggregation of revenue derived from contracts with customers to depict the nature, amount, timing, and uncertainty of
revenue and cash flows for the three and six months ended June 30, 2024 and 2023 (in thousands). All revenue in the table below relates to goods and services transferred at a point in time.
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Earnings per Share |
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Earnings per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share |
Note 3 – Earnings per Share
The following table sets forth the computation of earnings per share.
For the three months ended June 30, 2024 and 2023, there were 4,230 and 6,078 shares, respectively, related to the restricted stock plan that were excluded from the
diluted earnings per share calculations since they were anti-dilutive. These anti-dilutive shares had per share prices ranging from $60.16-$83.38 for the three month period ended June 30, 2024 and per share prices ranging from
$44.93-$83.38 for the three month period ended June 30, 2023. For the six months ended June 30, 2024 and 2023, 4,230 and 6,078 shares, respectively, related to the restricted stock plan were excluded from the diluted earnings per share calculations since they were anti-dilutive. These anti-dilutive shares had prices
ranging from $60.16-$83.38 for the six month period ended June 30, 2024 and prices ranging from $44.93-$83.38 for the six month period ended June 30, 2023.
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Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments |
Note 4 – Investments
The amortized cost, gross unrealized gains and losses, and fair value of investment securities at June 30, 2024 and December 31, 2023 were as follows
(in thousands):
The following table shows the Company’s gross unrealized losses and fair value of the Company’s investments with unrealized losses for which an allowance
for credit losses has not been recorded, aggregated by investment category and length of time, which individual securities have been in a continuous unrealized loss position, at June 30, 2024 and December 31, 2023 (in thousands). As of June 30, 2024,
the Company owned 317 securities whose fair value was less than their cost basis.
Allowance for Credit Losses – Available for Sale Securities
The
Company measures expected credit losses on available-for-sale debt securities when the Company does not intend to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost
basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale 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, the 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 evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the
security 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 an allowance for credit losses is recorded for the
credit loss, equal to the amount that the fair value is less than the amortized cost basis. Economic forecast data is utilized to calculate the present value of expected cash flows. The Company obtains its forecast data through a subscription to
a widely recognized and relied upon company who publishes various forecast scenarios. Management evaluates the various scenarios to determine a reasonable and supportable scenario, and utilizes a single scenario in the model. Any impairment that
has not been recorded through an allowance for credit losses is recognized in other comprehensive income.
The allowance for credit losses on available-for-sale debt securities is included within Investment securities available-for-sale on the consolidated
balance sheet. Changes in the allowance for credit losses are recorded within Provision for credit losses on the consolidated statement of income. Losses are charged against the allowance when the Company believes the collectability of an
available-for-sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met.
Accrued interest receivable on available-for-sale debt securities totaled $2,119,000
and $2,202,000 at June 30, 2024 and December 31,2023 and is included within accrued on the consolidated balance sheet. This amount is excluded from the estimate of expected credit losses. Available-for-sale debt securities are
typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management
has serious doubts about the further collectability of principal or interest. When available-for-sale debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed.
There were no sales of available for sale securities during the three and six months ended June 30, 2024. Proceeds from sales of securities available-for-sale for the three and six months ended
June 30, 2023 were $86,504,000.
The
gross gains and losses were as follows (in thousands):
The following table presents the net gains (losses) on the Company’s equity investments recognized in earnings during the three and six month periods
ended June 30, 2024 and 2023, and the portion of unrealized gains for the period that relates to equity investments held at June 30, 2024 and 2023(in thousands):
Investment securities with an approximate carrying value of $345.4
million and $353.3 million at June 30, 2024 and December 31, 2023, respectively, were pledged to secure public funds, certain other
deposits and borrowing lines.
Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or
prepayment penalties. The amortized cost and fair value of debt securities at June 30, 2024, by contractual maturity, are shown below (in thousands):
|
Loans |
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Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans |
Note 5 – Loans
The Company originates commercial, industrial, agricultural, residential, and consumer loans primarily to
customers throughout north central, central and south central Pennsylvania, southern New York and Wilmington and Dover, Delaware. The HVBC acquisition expanded our lending market further into southeast Pennsylvania, including Montgomery, Bucks and
Philadelphia Counties as well as Burlington County, New Jersey. Although the Company had a diversified loan portfolio at June 30, 2024 and December 31, 2023, a substantial portion of its debtors’ ability to honor their contracts is dependent on the
economic conditions within these regions. The
following table summarizes the primary segments of the loan portfolio and how those segments are analyzed within the allowance for credit losses - loans as of June 30, 2024 and December 31, 2023 (in thousands):
Allowance for Credit Losses, effective January 1, 2023
As discussed in Note 1 “Basis of Presentation”, the Company adopted CECL effective January 1, 2023. CECL requires estimated
credit losses on loans to be determined based on an expected life of loan model, as compared to an incurred loss model (in effect for periods prior to 2023). Accordingly, allowance for credit losses disclosures subsequent to January 1, 2023 are not
always comparable to prior dates. In addition, certain new disclosures required under CECL are not applicable to prior periods. See Note 1, “Basis of Presentation”, for a summary of the impact of adopting CECL on January 1, 2023.
Under CECL, loans individually evaluated for impairment consist of non-accrual commercial loans and recently modified loans
that were experiencing financial difficulty at the time of the modification.
The allowance for credit losses related to loans consists of loans evaluated collectively and individually for expected
credit losses. It represents an estimate of credit losses over the expected life of the loans as of the balance sheet date and is recorded as a reduction to net loans. The allowance for credit losses for off-balance sheet credit exposures
includes estimated losses on unfunded loan commitments, letters of credit and other off-balance sheet credit exposures. The total allowance for credit losses is increased by charges to expense, through the provision for credit losses, and
decreased by charge-offs, net of recoveries.
The following table presents the components of the allowance for credit losses as of June 30, 2024 and December 31, 2023 (in thousands):
The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2024 and 2023 (in
thousands):
The following tables presents the activity in the allowance for credit losses – loans, by portfolio segment, for the three and six months ended June 30, 2024 and 2023 (in thousands):
The following table presents the allowance for credit losses – loans and amortized cost basis of loans under CECL methodology
as of June 30, 2024 and December 31, 2023:
Non-performing Loans
Non-performing loans include those loans that are considered nonaccrual, described in more detail below, and all loans past due 90 or more days. Loans
are considered for non-accrual status upon reaching 90 days delinquency, although the Company may be receiving partial payments of
interest and partial repayments of principal on such loans, or if full payment of principal and interest is not expected. Additionally, if management is made aware of other information including bankruptcy, repossession, death, or legal
proceedings, the loan may be placed on non-accrual status. If a loan is 90 days or more past due and is well secured and in the process
of collection, it may still be considered accruing.
The following table reflects the non-performing loan receivables, as well as those on non-accrual status as of June 30, 2024 and December 31, 2023,
respectively. The balances are presented by class of loan receivable (in thousands):
As of June 30, 2024, there were $11.0
million of non-accrual loans that did not have a related allowance for credit losses. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or the loans were previously charged down to the realizable
collateral values. Accordingly, no specific valuation allowance was considered to be necessary.
The following table presents,
by class of loans and leases, the amortized cost basis of collateral-dependent nonaccrual loans and leases and type of collateral as of June 30, 2024 and December 31, 2023 (in thousands):
Credit Quality Information
For commercial real estate loans, agricultural real estate loans, construction loans, other
commercial loans, other agricultural loans, and state and political subdivision loans, management uses an internal risk rating system to monitor and assess credit quality. During the third quarter of 2023, this rating system was expanded from a nine grade rating system to a ten grade rating system. The first six categories under
the revised system are considered not criticized and are aggregated as “Pass” rated. Under the prior system, the first five categories were considered not criticized and aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The definitions of each rating are defined below:
To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay the loan as agreed, the Company’s loan
rating process includes several layers of internal and external oversight. The Company’s loan officers are responsible for the timely and accurate risk rating of the loans in each of their portfolios at origination and on an ongoing basis under the
supervision of management. All commercial, agricultural and state and political relationships over $500,000 are reviewed annually to ensure
the appropriateness of the loan grade. In addition, the Company engages an external consultant on at least an annual basis to: 1) review a minimum of 50%
of the dollar volume of the commercial loan portfolio on an annual basis, 2) a large sample of relationships in aggregate over $1,000,000,
3) selected loan relationships over $750,000 which are over 30 days past due, or classified Special Mention, Substandard, Doubtful, or Loss,
and 4) such other loans which management or the consultant deems appropriate.
The following tables represent credit exposures by internally assigned grades, by origination year, as of June 30, 2024 and December 31, 2023 (in thousands):
For residential real estate mortgage loans, home equity loans, and consumer loans, credit quality is monitored based on whether the loan is performing or non-performing, which is typically based on the aging status of the loan
and payment activity, unless a specific action, such as bankruptcy, repossession, death or significant delay in payment occurs to raise awareness of a possible credit event. Non-performing loans include those loans that are considered nonaccrual,
described in more detail above, and all loans past due 90 or more days and still accruing. The following tables present the recorded investment in those loan classes based on payment activity, by origination year, as of June 30, 2024 and December 31,
2023 (in thousands):
Aging Analysis of Past Due Loan Receivables
Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of
time a recorded payment is past due. The following table includes an aging analysis of the recorded investment of past due loan receivables as of June 30, 2024 and December 31, 2023 (in thousands):
Modifications to Borrowers Experiencing Financial Difficulty
Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an
other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.
In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term
extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted.
There were no loan modifications made during the six months ended June 30, 2024, for borrowers experiencing financial difficulty.
Foreclosed Assets Held For Sale
Foreclosed assets acquired in settlement of loans are carried at fair value, less estimated costs to sell, and are included in other assets on the
Consolidated Balance Sheet. As of June 30, 2024 and December 31, 2023, included within other assets are $2,690,000 and $474,000, respectively, of foreclosed assets. As of June 30, 2024, included within the foreclosed assets are $131,000 of consumer residential mortgages that were foreclosed on or received via a deed in lieu transaction prior to the period end. As of June 30, 2024, the Company had initiated
formal foreclosure proceedings on $521,000 of residential mortgage loans, the collateral properties which have not yet been transferred into
foreclosed assets.
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Goodwill and Other Intangible Assets |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets |
Note 6 – Goodwill and Other Intangible Assets
The following table provides the gross carrying value and accumulated amortization of intangible assets as of June 30, 2024 and December 31, 2023
(in thousands):
(1) Excludes fully amortized intangible assets
The following table provides the current year and estimated future amortization expense for amortized intangible assets for the next five years (in
thousands). The Company based its projections of amortization expense shown below on existing asset balances at June 30, 2024. Future amortization expense may vary from these projections:
|
Employee Benefit Plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans |
Note 7 – Employee Benefit Plans
For additional detailed disclosure on the Company’s pension and employee benefits plans, please refer to Note 11 of the Company’s Audited Consolidated
Financial Statements included in the 2023 Annual Report on Form 10-K.
Noncontributory Defined Benefit Pension Plan
The Bank sponsors a trusteed noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all employees and officers hired prior
to January 1, 2007. The Bank’s funding policy is to make annual contributions, if needed, based upon the funding formula developed by the plan’s actuary. Any employee with a hire date of January 1, 2007 or later is not eligible to participate in the
Pension Plan.
In lieu of the Pension Plan, employees with a hire date of January 1, 2007 or later are eligible to receive, after meeting certain length of service
requirements, an annual discretionary 401(k) plan contribution from the Bank equal to a percentage of an employee’s base compensation. The contribution amount, if any, is placed in a separate account within the 401(k) plan and is subject to a
vesting requirement.
For employees who are eligible to participate in the Pension Plan, the Pension Plan requires benefits to be paid to eligible employees based primarily
upon age and compensation rates during employment. Upon retirement or other termination of employment, employees can elect either an annuity benefit or a lump sum distribution of vested benefits in the Pension Plan.
The following sets forth the components of net periodic benefit costs of the Pension Plan and the line item on the Consolidated Statement of Income where
such amounts are included, for the three and six months ended June 30, 2024 and 2023, respectively (in thousands):
The Bank does not expect to contribute to
the Pension Plan during 2024.
Restricted Stock Plan
The Company maintains a Restricted Stock Plan (the “Plan”) whereby employees and non-employee corporate directors are eligible to receive awards of
restricted stock based upon performance related requirements. Awards granted under the Plan are in the form of the Company’s common stock and are subject to certain vesting requirements including continuous employment or service with the Company.
In April 2016, the Company’s stockholders authorized a total of 150,000 shares of the Company’s common stock to be made available under
the Plan. As of June 30, 2024, 106,633 shares remain available to be issued under the Plan. The Plan assists the Company in attracting,
retaining and motivating employees to make substantial contributions to the success of the Company and to increase the emphasis on the use of equity as a key component of compensation.
The following table details the vesting, awarding and forfeiting of restricted stock during the three and six months ended June 30, 2024:
Compensation expense related to restricted stock is recognized, based on the market price
of the stock at the grant date, over the vesting period. Compensation expense related to restricted stock was $122,000 and $116,000 for the six months ended June 30, 2024 and 2023, respectively. For the three months ended June 30, 2024 and 2023, compensation expense totaled $57,000 and $51,000, respectively. At June 30, 2024, the total compensation cost related to nonvested awards that had not yet
been recognized was $571,000, which is expected to be recognized
over the next three years.
|
Accumulated Other Comprehensive Loss |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss |
Note 8 – Accumulated Other Comprehensive Loss
The following tables present the changes in accumulated other comprehensive loss by component, net of tax, for the three and six months ended June 30,
2024 and 2023 (in thousands):
(a) Amounts in parentheses indicate debits on
the Consolidated Balance Sheet.
The following table presents the significant amounts reclassified out of each component of accumulated other comprehensive loss for the three and six
months ended June 30, 2024 and 2023 (in thousands):
(a) Amounts in parentheses indicate expenses and
other amounts indicate income on the Consolidated Statement of Income
|
Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
Note 9 – Fair Value Measurements
The Company has established a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and
liabilities at fair value. The three broad levels defined by this hierarchy are as follows:
A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments
pursuant to the valuation hierarchy, is set forth below.
In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon
internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect
counterparty credit quality, the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value
calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different
methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. 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 monthly and/or quarterly valuation process.
Assets and Liabilities Required to be Measured at Fair Value on a Recurring Basis
The fair values of equity securities and securities available for sale are determined by quoted prices in active markets, when available, and classified
as Level I. If quoted market prices are not available, the fair value is determined by a matrix pricing, which is a mathematical technique, widely used in the industry to value debt securities without relying exclusively on quoted prices for the
specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities and classified as Level II. The fair values consider observable data that may include dealer quotes, market spreads, cash flows, the U.S.
Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.
The following tables present the assets and liabilities reported on the Consolidated
Balance Sheet at their fair value on a recurring basis as of June 30, 2024 and December 31, 2023 by level within the fair value hierarchy (in thousands). Financial assets and liabilities are classified in their entirety based on the lowest level of
input that is significant to the fair value measurement.
The following tables represent the change in the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
for the three and six months ended June 30, 2024 and for the three months ended June 30, 2023 (in thousands):
At June 30, 2024 and December 31, 2023, the Company had classified as Level 3 $494,000 and $324,000,
respectively, of net derivative assets and liabilities related to IRLC. The fair value of IRLCs is based on prices obtained for loans with similar characteristics from third parties, adjusted by the pull-through rate, which represents the
Company’s best estimate of the probability that a committed loan will fund. The weighted average pull-through rates applied ranged from 77.00%
to 99.66% at June 30, 2024.
Significant unobservable inputs for assets measured at fair value on a recurring basis at June 30, 2024 and December 31, 2023 (dollars in thousands):
Assets and
Liabilities Required to be Measured and Reported at Fair Value on a Nonrecurring Basis
Assets measured at fair value on a nonrecurring basis as of June 30, 2024 and December 31,
2023 are included in the table below (in thousands):
The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing Level
III techniques (dollars in thousands).
Financial Instruments Not Required to be Measured or Reported at Fair Value
The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring
basis are as follows (in thousands):
The carrying amounts for cash and due from banks, bank owned life insurance, regulatory stock, accrued interest receivable and payable approximate fair
value and are considered Level I measurements.
|
Recent Accounting Pronouncements |
6 Months Ended |
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Jun. 30, 2024 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements |
Note 10 – Recent Accounting Pronouncements
In March 2023, the FASB issued ASU No. 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the
Emerging Issues Task Force)”. The ASU allows entities to elect the proportional amortization method, on a tax-credit-program-by-tax-credit-program basis, for all equity
investments in tax credit programs meeting the eligibility criteria in Accounting Standards Codification (ASC) 323-740-25-1. While the ASU does not significantly alter the existing eligibility criteria, it does provide clarifications to
address existing interpretive issues. It also prescribes specific information reporting entities must disclose about tax credit investments each period. This ASU is effective for reporting periods beginning after December 15, 2023, for
public business entities, or January 1, 2024 for the Corporation. The Corporation does not expect the adoption of this ASU to have a material impact on the Corporation’s financial statements.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, requires the amount of net income taxes
paid for federal, state, and foreign taxes, as well as the amount paid to any jurisdiction that net taxes exceed a 5% quantitative threshold. The
amendments will require the disclosure of pre-tax income disaggregated between domestic and foreign, as well as income tax expense disaggregated by federal, state, and foreign. The amendment also eliminates certain disclosures related
to unrecognized tax benefits and certain temporary differences. This ASU is effective for fiscal years beginning after December 15, 2024. Early adoption is
permitted in any annual period where financial statements have not yet been issued. The amendments should be applied on a prospective basis but retrospective application is permitted. The Company does not expect adoption of the
standard to have a material impact on its Consolidated Financial Statements.
In March 2024, the FASB issued ASU 2024-01, Compensation – Stock Compensation (Topic 718), amended the guidance in ASC 718 to add
an example showing how to apply the scope guidance to determine whether profits interest and similar awards should be accounted for as share-based payment arrangements. For public business entities, the guidance is effective for
fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. For all other entities, it is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal
years. This Update is not expected to have a significant impact on the Company’s financial statements.
In March 2024, the FASB issued ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements. This ASU removes various references to the FASB’s Concepts Statements from the FASB’s Accounting Standards Codification. The FASB does not expect these updates to have a significant effect on current accounting practice.
That is because in most cases the amendments to the Codification remove references to Concept Statements that are extraneous and not required to understand or apply the guidance. However, the FASB has provided transition guidance if
applying the updated guidance results in accounting changes for some entities. The amendments in ASU 2024-02 are effective for public business entities for fiscal years beginning after December 15, 2024. For all other entities, the
amendments are effective for fiscal years beginning after December 15, 2025. This Update is not expected to have a significant impact on the Company’s financial statements.
Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material
effect on the Company’s consolidated financial position, results of operations or cash flows.
|
Insider Trading Arrangements |
3 Months Ended |
---|---|
Jun. 30, 2024 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation |
Citizens Financial Services, Inc. (individually and collectively with its direct and
indirect subsidiaries, the “Company”) is a Pennsylvania corporation and its wholly owned subsidiary is CZFS Acquisition Company, LLC. CZFS Acquisition Company, LLC is the
holding company of its wholly owned subsidiary, First Citizens Community Bank (the “Bank”), and of the Bank’s wholly owned subsidiaries, First Citizens Insurance Agency, Inc. (“First Citizens Insurance”) and 1st Realty of PA LLC (“Realty”).
The accompanying consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”)
and in conformity with U.S. generally accepted accounting principles. Because this report is based on an interim period, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S.
generally accepted accounting principles have been condensed or omitted. Certain of the prior year amounts have been reclassified to conform with the current year presentation. Such reclassifications had no effect on net income or stockholders’
equity. All material inter‑company balances and transactions have been eliminated in consolidation.
In the
opinion of management of the Company, the accompanying interim consolidated financial statements at June 30, 2024 and for the periods ended June 30, 2024 and 2023 include all adjustments, consisting of only normal recurring adjustments, necessary
for a fair presentation of the financial condition and the results of operations at the dates and for the periods presented. In preparing the consolidated financial statements, 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 of revenues and expenses for the periods covered by the Consolidated Statement of Income. The financial performance reported for the Company for the six month
period ended June 30, 2024 is not necessarily indicative of the results to be expected for the full year. This information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
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Accounting Pronouncements Adopted |
Accounting Pronouncements Adopted in 2023
In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” and subsequent related updates. This ASU replaces the incurred loss methodology for recognizing credit
losses and requires businesses and other organizations to measure the current expected credit losses (CECL) on financial assets measured at amortized cost, including loans and held-to-maturity securities, net investments in leases, off-balance
sheet credit exposures such as unfunded commitments, and other financial instruments. In addition, ASC 326 requires credit losses on available-for-sale debt securities to be presented as an allowance rather than as a write-down when management does
not intend to sell or believes that it is not more likely than not they will be required to sell. This guidance became effective on January 1, 2023 for the Company. The results reported for periods beginning after January 1, 2023 are presented
under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable accounting standards.
The Company adopted this guidance, and subsequent
related updates, using the modified retrospective approach for all financial assets measured at amortized cost, including loans and held-to-maturity debt securities, available-for-sale debt securities and unfunded commitments. On January 1, 2023,
the Bank recorded a cumulative effect increase to retained earnings of $1.8 million, net of tax, of which $3.3 million related to loans and ($1.1)
million related to unfunded commitments.
The Company adopted the provisions of ASC 326
related to financial assets purchased with credit deterioration (PCD) that were previously classified as purchased credit impaired (PCI) and accounted for under ASC 310-30 using the prospective transition approach. In accordance with the standard,
management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption.
The Company expanded the pooling utilized under the legacy incurred loss method to include additional segmentation based
on risk. The impact of the change from the incurred loss model to the current expected credit loss model is detailed below (in thousands):
The Company adopted the provisions of ASC 326 related to presenting other-than-temporary impairment on available-for-sale debt securities prior to January 1, 2023 using the prospective transition approach, though no such charges had been recorded on the securities held by the Company as of the date of adoption.
In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The amendments eliminate the accounting guidance for troubled debt restructurings by
creditors that have adopted CECL and enhance the disclosure requirements for modifications of receivables made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs by
year of origination for financing receivables and net investment in leases in the existing vintage disclosures. This ASU became effective on January 1, 2023 for the Corporation. The adoption of this ASU resulted in updated disclosures within our
financial statements but otherwise did not have a material impact on the Company’s consolidated financial statements.
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Loans |
Loans
A loan is classified as a modified loan to a borrower experiencing financial difficulty when a contractual loan
modification in the form of principal forgiveness, an interest rate reduction, an other-than-significant payment delay or a term extension (or a combination thereof) has been granted to an existing borrower experiencing financial difficulties.
The goal when modifying a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing modified loans to borrowers experiencing financial difficulty are primarily
comprised of loans on which interest is being accrued under the modified terms, and the loans are current or less than 90 days past due.
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Allowance for Credit Losses - Loans and Leases |
Allowance for Credit Losses – Loans and Leases
The allowance for credit losses (ACL) on loans and leases is a valuation account that is used to present the net amount
expected to be collected on a loan or lease. The ACL for loans and leases is adjusted through provision for credit losses as a charge against, or credit to, earnings. Loans and leases deemed to be uncollectible are charged against the ACL on
loans and leases, and any subsequent recoveries are credited to the ACL. Management evaluates the ACL on a quarterly basis. When changes in the reserve are necessary, an adjustment is made.
Depending on the nature of the pool of financial assets with similar risk characteristics, the models utilized by the Company to estimate expected credit losses include a discounted cash flow (“DCF”) model that discounts
instrument-level contractual cash flows, adjusted for prepayments and curtailments, incorporating loss expectations, and a weighted average remaining maturity model which contemplates expected losses at a pool-level, utilizing historic loss
information. The Company’s models for estimating the allowance for credit losses consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and
supportable forecasts. Management compares the results of this calculation to the amortized cost basis to determine its allowance for credit
loss balance.
Management uses relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable
forecasts in calculating its ACL. Historical credit loss experience provides the basis for the estimation of expected credit losses. Management determines whether there is a need to make qualitative adjustments to historical loss information by
monitoring certain factors including differences in current loan-specific risk characteristics as well as for changes in external or environmental conditions, or other relevant factors.
The contractual term used in projecting the cash flows of a loan is based on the maturity date of a loan, and is adjusted
for prepayment or curtailment assumptions which may shorten that contractual time period. Options to extend are considered by management in determining the contractual term.
The key inputs to the DCF model are (1) probability of default, (2) loss given default, (3) prepayment and curtailment
rates, (4) reasonable and supportable economic forecasts, (5) forecast reversion period, (6) expected recoveries on charged off loans, and (7) discount rate.
Probability of Default (PD)
In order to incorporate economic factors into forecasting within the DCF model, management elected to use the Loss Driver
method to generate the PD rate inputs. The Loss Driver method analyzes how one or more economic factors change the default rate using a statistical regression analysis. Management selected economic factors that had strong correlations to
historical default rates.
Loss Given Default (LGD)
Management elected to use the Frye Jacobs parameter for determining the LGD input, which is an estimation technique that
derives a LGD input from segment specific risk curves that correlates LGD with PD.
Prepayment and Curtailment Rates
Prepayment Rates: Loan level transaction data is used to calculate a semi-annual prepayment rate. Those semi-annual rates
are annualized and the average of the annualized rates is used in the DCF calculation for fixed payment or term loans. Rates are calculated for each pool.
Curtailment Rates: Loan level transaction data is used to calculate annual curtailment rates using any available
historical loan level data. The average of the historical rates is used in the DCF model for interest only payment or line of credit type loans. Rates are calculated for each pool.
Reasonable and Supportable Economic Forecasts
The forecast data used in the DCF model is obtained via a subscription to a widely recognized and relied upon company who
publishes various forecast scenarios. Management evaluates the various scenarios to determine a reasonable and supportable scenario.
Forecast Reversion Period
Management uses forecasts to predict how economic factors will perform and has determined to use a four quarter forecast
period as well as a four quarter straight-line reversion period to historical averages (also commonly referred to as the mean reversion period).
Expected Recoveries on Charged-off Loans
Management performs an analysis to estimate recoveries that could be reasonably expected based on historical experience in
order to account for expected recoveries on loans that have already been fully charged-off and are not included in the ACL calculation.
Discount Rate
The effective interest rate of the underlying loans and leases of the Company serves as the discount rate applied to the
expected periodic cash flows. Management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments.
Individual Evaluation
Management evaluates individual instruments for expected credit losses when those instruments do not share similar risk
characteristics with instruments evaluated using a collective (pooled) basis. Instruments will not be included in both collective and individual analyses. Individual analysis will establish a specific reserve for instruments in scope.
Management considers a financial asset as collateral-dependent when the debtor is experiencing financial difficulty and
repayment is expected to be provided substantially through the sale or operation of the collateral, based on management’s assessment as of the reporting date.
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Accrued Interest Receivable on Loans and Leases |
Accrued Interest Receivable on Loans and Leases
Accrued interest receivable on loans held for investment totaled $8.4 million and $8.5 million at June 30, 2024 and December 31,
2023, respectively, and is included within Accrued interest receivable. This amount is excluded from the estimate of expected credit losses.
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Reserve for Unfunded Commitments |
Reserve for Unfunded Commitments
The Company maintains a reserve in other liabilities for off-balance sheet credit exposures such as unfunded commitments
that are currently unfunded in categories with historical loss experience. Management calculates funding rates annually using loan level data history at the portfolio level. The applicable pool level loss rates is then applied to calculate the
reserve for unfunded commitments liability each period.
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Revenue Recognition (Policies) |
6 Months Ended | ||||||||||||
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Jun. 30, 2024 | |||||||||||||
Revenue Recognition [Abstract] | |||||||||||||
Revenue Recognition |
In accordance with ASC 606, Management determined that the primary sources of revenue emanating from interest and dividend income on loans and
investments along with noninterest revenue resulting from investment security gains, loan servicing, gains on loans sold, earnings on bank owned life insurances, gains and losses from derivative instruments and changes in the fair of loans
held for sale are not within the scope of ASC 606. The main types of noninterest income within the scope of the standard are as follows:
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Recent Accounting Pronouncements (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements |
In March 2023, the FASB issued ASU No. 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the
Emerging Issues Task Force)”. The ASU allows entities to elect the proportional amortization method, on a tax-credit-program-by-tax-credit-program basis, for all equity
investments in tax credit programs meeting the eligibility criteria in Accounting Standards Codification (ASC) 323-740-25-1. While the ASU does not significantly alter the existing eligibility criteria, it does provide clarifications to
address existing interpretive issues. It also prescribes specific information reporting entities must disclose about tax credit investments each period. This ASU is effective for reporting periods beginning after December 15, 2023, for
public business entities, or January 1, 2024 for the Corporation. The Corporation does not expect the adoption of this ASU to have a material impact on the Corporation’s financial statements.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, requires the amount of net income taxes
paid for federal, state, and foreign taxes, as well as the amount paid to any jurisdiction that net taxes exceed a 5% quantitative threshold. The
amendments will require the disclosure of pre-tax income disaggregated between domestic and foreign, as well as income tax expense disaggregated by federal, state, and foreign. The amendment also eliminates certain disclosures related
to unrecognized tax benefits and certain temporary differences. This ASU is effective for fiscal years beginning after December 15, 2024. Early adoption is
permitted in any annual period where financial statements have not yet been issued. The amendments should be applied on a prospective basis but retrospective application is permitted. The Company does not expect adoption of the
standard to have a material impact on its Consolidated Financial Statements.
In March 2024, the FASB issued ASU 2024-01, Compensation – Stock Compensation (Topic 718), amended the guidance in ASC 718 to add
an example showing how to apply the scope guidance to determine whether profits interest and similar awards should be accounted for as share-based payment arrangements. For public business entities, the guidance is effective for
fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. For all other entities, it is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal
years. This Update is not expected to have a significant impact on the Company’s financial statements.
In March 2024, the FASB issued ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements. This ASU removes various references to the FASB’s Concepts Statements from the FASB’s Accounting Standards Codification. The FASB does not expect these updates to have a significant effect on current accounting practice.
That is because in most cases the amendments to the Codification remove references to Concept Statements that are extraneous and not required to understand or apply the guidance. However, the FASB has provided transition guidance if
applying the updated guidance results in accounting changes for some entities. The amendments in ASU 2024-02 are effective for public business entities for fiscal years beginning after December 15, 2024. For all other entities, the
amendments are effective for fiscal years beginning after December 15, 2025. This Update is not expected to have a significant impact on the Company’s financial statements.
Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material
effect on the Company’s consolidated financial position, results of operations or cash flows.
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Basis of Presentation (Tables) |
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Basis of Presentation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model | The impact of the change from the incurred loss model to the current expected credit loss model is detailed below (in thousands):
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Revenue Recognition (Tables) |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue Derived from Contracts with Customers |
The following table depicts the disaggregation of revenue derived from contracts with customers to depict the nature, amount, timing, and uncertainty of
revenue and cash flows for the three and six months ended June 30, 2024 and 2023 (in thousands). All revenue in the table below relates to goods and services transferred at a point in time.
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Earnings per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Earnings per Share |
The following table sets forth the computation of earnings per share.
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Investments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Value of Investment Securities |
The amortized cost, gross unrealized gains and losses, and fair value of investment securities at June 30, 2024 and December 31, 2023 were as follows
(in thousands):
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Unrealized Losses and Fair Value of Investments |
The following table shows the Company’s gross unrealized losses and fair value of the Company’s investments with unrealized losses for which an allowance
for credit losses has not been recorded, aggregated by investment category and length of time, which individual securities have been in a continuous unrealized loss position, at June 30, 2024 and December 31, 2023 (in thousands). As of June 30, 2024,
the Company owned 317 securities whose fair value was less than their cost basis.
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Gross Gains and Losses on Available-for-sale Securities |
The
gross gains and losses were as follows (in thousands):
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Unrealized Gains (Losses) Related to Equity Securities |
The following table presents the net gains (losses) on the Company’s equity investments recognized in earnings during the three and six month periods
ended June 30, 2024 and 2023, and the portion of unrealized gains for the period that relates to equity investments held at June 30, 2024 and 2023(in thousands):
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Amortized Cost and Fair Value of Debt Securities by Contractual Maturity |
Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or
prepayment penalties. The amortized cost and fair value of debt securities at June 30, 2024, by contractual maturity, are shown below (in thousands):
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Loans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Portfolio and Allowance for Credit Losses | The
following table summarizes the primary segments of the loan portfolio and how those segments are analyzed within the allowance for credit losses - loans as of June 30, 2024 and December 31, 2023 (in thousands):
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Components of the Allowance for Credit Losses |
The following table presents the components of the allowance for credit losses as of June 30, 2024 and December 31, 2023 (in thousands):
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Activity in Allowance for Credit Losses |
The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2024 and 2023 (in
thousands):
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Activity of Allowance for Credit Losses - Loans by Portfolio Segment |
The following tables presents the activity in the allowance for credit losses – loans, by portfolio segment, for the three and six months ended June 30, 2024 and 2023 (in thousands):
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Loans and Allowance for Credit Losses by Portfolio Segment |
The following table presents the allowance for credit losses – loans and amortized cost basis of loans under CECL methodology
as of June 30, 2024 and December 31, 2023:
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Loan Receivables on Nonaccrual Status |
The following table reflects the non-performing loan receivables, as well as those on non-accrual status as of June 30, 2024 and December 31, 2023,
respectively. The balances are presented by class of loan receivable (in thousands):
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Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans and Leases |
The following table presents,
by class of loans and leases, the amortized cost basis of collateral-dependent nonaccrual loans and leases and type of collateral as of June 30, 2024 and December 31, 2023 (in thousands):
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Financing Receivable Credit Exposures by Internally Assigned Grades, by Origination Year |
The following tables represent credit exposures by internally assigned grades, by origination year, as of June 30, 2024 and December 31, 2023 (in thousands):
For residential real estate mortgage loans, home equity loans, and consumer loans, credit quality is monitored based on whether the loan is performing or non-performing, which is typically based on the aging status of the loan
and payment activity, unless a specific action, such as bankruptcy, repossession, death or significant delay in payment occurs to raise awareness of a possible credit event. Non-performing loans include those loans that are considered nonaccrual,
described in more detail above, and all loans past due 90 or more days and still accruing. The following tables present the recorded investment in those loan classes based on payment activity, by origination year, as of June 30, 2024 and December 31,
2023 (in thousands):
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Aging Analysis of Past Due Loan Receivables |
Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of
time a recorded payment is past due. The following table includes an aging analysis of the recorded investment of past due loan receivables as of June 30, 2024 and December 31, 2023 (in thousands):
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Value and Accumulated Amortization of Intangible Assets |
The following table provides the gross carrying value and accumulated amortization of intangible assets as of June 30, 2024 and December 31, 2023
(in thousands):
(1) Excludes fully amortized intangible assets
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Future Amortization Expense for Amortized Intangible Assets |
The following table provides the current year and estimated future amortization expense for amortized intangible assets for the next five years (in
thousands). The Company based its projections of amortization expense shown below on existing asset balances at June 30, 2024. Future amortization expense may vary from these projections:
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Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Costs |
The following sets forth the components of net periodic benefit costs of the Pension Plan and the line item on the Consolidated Statement of Income where
such amounts are included, for the three and six months ended June 30, 2024 and 2023, respectively (in thousands):
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Restricted Stock Activity |
The following table details the vesting, awarding and forfeiting of restricted stock during the three and six months ended June 30, 2024:
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Accumulated Other Comprehensive Loss (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax |
The following tables present the changes in accumulated other comprehensive loss by component, net of tax, for the three and six months ended June 30,
2024 and 2023 (in thousands):
(a) Amounts in parentheses indicate debits on
the Consolidated Balance Sheet.
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Significant Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Loss |
The following table presents the significant amounts reclassified out of each component of accumulated other comprehensive loss for the three and six
months ended June 30, 2024 and 2023 (in thousands):
(a) Amounts in parentheses indicate expenses and
other amounts indicate income on the Consolidated Statement of Income
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis |
The following tables present the assets and liabilities reported on the Consolidated
Balance Sheet at their fair value on a recurring basis as of June 30, 2024 and December 31, 2023 by level within the fair value hierarchy (in thousands). Financial assets and liabilities are classified in their entirety based on the lowest level of
input that is significant to the fair value measurement.
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Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) |
The following tables represent the change in the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
for the three and six months ended June 30, 2024 and for the three months ended June 30, 2023 (in thousands):
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Assets Measured at Fair Value on Non-recurring Basis |
Assets measured at fair value on a nonrecurring basis as of June 30, 2024 and December 31,
2023 are included in the table below (in thousands):
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Significant Unobservable Inputs Used in Fair Value Measurement Process |
Significant unobservable inputs for assets measured at fair value on a recurring basis at June 30, 2024 and December 31, 2023 (dollars in thousands):
The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing Level
III techniques (dollars in thousands).
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Carrying Amount and Fair Value of Financial Instruments |
The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring
basis are as follows (in thousands):
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Basis of Presentation, Accounting Pronouncements (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|---|---|
Allowance for Credit Loss [Abstract] | ||||||
Retained earnings | $ 178,588 | $ 172,975 | ||||
Related to unfunded commitments | 1,066 | $ 938 | 1,265 | $ 1,391 | $ 1,229 | $ 165 |
Related to loans | $ (22,797) | $ (21,598) | $ (21,153) | $ (21,652) | $ (15,250) | (18,552) |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | ||||||
Allowance for Credit Loss [Abstract] | ||||||
Retained earnings | 1,800 | |||||
Related to unfunded commitments | 1,064 | |||||
Related to loans | $ 3,300 |
Basis of Presentation, Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|---|---|
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | $ 22,797 | $ 21,598 | $ 21,153 | $ 21,652 | $ 15,250 | $ 18,552 |
Allowance for Credit Losses - Off-Balance Sheet credit Exposure | 1,066 | 938 | 1,265 | 1,391 | 1,229 | 165 |
Real Estate Loans [Member] | Residential [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 2,355 | 2,347 | 2,354 | 2,675 | 1,195 | 1,056 |
Real Estate Loans [Member] | Commercial [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 10,283 | 9,741 | 9,178 | 9,274 | 6,747 | 10,120 |
Real Estate Loans [Member] | Agricultural [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 3,770 | 3,672 | 3,264 | 3,579 | 3,409 | 4,589 |
Real Estate Loans [Member] | Construction [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 1,627 | 1,595 | 1,950 | 1,667 | 851 | 801 |
Consumer [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 1,211 | 1,266 | 1,496 | 1,259 | 1,220 | 135 |
Other Commercial Loans [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 3,256 | 2,680 | 2,229 | 2,477 | 712 | 1,040 |
Other Agricultural Loans [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 206 | 174 | 270 | 268 | 250 | 489 |
State and Political Subdivision Loans [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 63 | 65 | 45 | 52 | 42 | 322 |
Unallocated [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | $ 26 | $ 58 | $ 367 | $ 401 | $ 824 | 0 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | (3,300) | |||||
Allowance for Credit Losses - Off-Balance Sheet credit Exposure | 1,064 | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Real Estate Loans [Member] | Residential [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 79 | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Real Estate Loans [Member] | Commercial [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | (3,070) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | (1,145) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Real Estate Loans [Member] | Construction [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | (103) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Consumer [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 1,040 | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Other Commercial Loans [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | (328) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Other Agricultural Loans [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | (219) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | State and Political Subdivision Loans [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | (280) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | Unallocated [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 726 | |||||
As Reported [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 15,252 | |||||
Allowance for Credit Losses - Off-Balance Sheet credit Exposure | 1,229 | |||||
As Reported [Member] | Real Estate Loans [Member] | Residential [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 1,135 | |||||
As Reported [Member] | Real Estate Loans [Member] | Commercial [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 7,050 | |||||
As Reported [Member] | Real Estate Loans [Member] | Agricultural [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 3,444 | |||||
As Reported [Member] | Real Estate Loans [Member] | Construction [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 698 | |||||
As Reported [Member] | Consumer [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 1,175 | |||||
As Reported [Member] | Other Commercial Loans [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 712 | |||||
As Reported [Member] | Other Agricultural Loans [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 270 | |||||
As Reported [Member] | State and Political Subdivision Loans [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | 42 | |||||
As Reported [Member] | Unallocated [Member] | ||||||
Impact of Change from Incurred Loss Model to Current Expected Credit Loss Model [Abstract] | ||||||
Allowance for Credit Losses | $ 726 |
Basis of Presentation, Accrued Interest Receivable on Loans and Leases (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Accrued Interest Receivable on Loans and Leases [Abstract] | ||
Accrued interest receivable on loans held for investment | $ 8.4 | $ 8.5 |
Revenue Recognition (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Revenue from Customers [Abstract] | ||||
Service charges | $ 1,385 | $ 1,293 | $ 2,757 | $ 2,504 |
Trust | 201 | 181 | 445 | 411 |
Brokerage and insurance | 563 | 442 | 1,228 | 956 |
Other | 241 | 118 | 373 | 233 |
Revenue from customers | 2,390 | 2,034 | 4,803 | 4,104 |
Service Charges [Member] | ||||
Revenue from Customers [Abstract] | ||||
Service charges | 1,385 | 1,293 | 2,757 | 2,504 |
Overdraft Fees [Member] | ||||
Revenue from Customers [Abstract] | ||||
Service charges | 394 | 371 | 798 | 730 |
Statement Fees [Member] | ||||
Revenue from Customers [Abstract] | ||||
Service charges | 44 | 54 | 86 | 106 |
Interchange Revenue [Member] | ||||
Revenue from Customers [Abstract] | ||||
Service charges | 811 | 764 | 1,555 | 1,461 |
ATM Income [Member] | ||||
Revenue from Customers [Abstract] | ||||
Service charges | 33 | 34 | 66 | 72 |
Other Service Charges [Member] | ||||
Revenue from Customers [Abstract] | ||||
Service charges | $ 103 | $ 70 | $ 252 | $ 135 |
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Earnings per Share [Abstract] | ||||
Net income (loss) applicable to common stock | $ 5,275 | $ (4,144) | $ 12,299 | $ 2,723 |
Basic earnings per share computation [Abstract] | ||||
Weighted average common shares outstanding (in shares) | 4,748,927 | 4,159,966 | 4,748,523 | 4,106,005 |
Earnings (loss) per share - basic (in dollars per share) | $ 1.11 | $ (1) | $ 2.59 | $ 0.66 |
Diluted earnings per share computation [Abstract] | ||||
Weighted average common shares outstanding for basic earnings per share (in shares) | 4,748,927 | 4,159,966 | 4,748,523 | 4,106,005 |
Add: Dilutive effects of restricted stock (in shares) | 4,770 | 0 | 5,395 | 0 |
Weighted average common shares outstanding for dilutive earnings per share (in shares) | 4,753,697 | 4,159,966 | 4,753,918 | 4,106,005 |
Earnings (loss) per share - diluted (in dollars per share) | $ 1.11 | $ (1) | $ 2.59 | $ 0.66 |
Restricted Stock [Member] | ||||
Antidilutive Securities [Abstract] | ||||
Antidilutive restricted stock excluded from net income per share calculations (in shares) | 4,230 | 6,078 | 4,230 | 6,078 |
Restricted Stock [Member] | Minimum [Member] | ||||
Antidilutive Securities [Abstract] | ||||
Antidilutive stock share price range (in dollars per share) | $ 60.16 | $ 44.93 | $ 60.16 | $ 44.93 |
Restricted Stock [Member] | Maximum [Member] | ||||
Antidilutive Securities [Abstract] | ||||
Antidilutive stock share price range (in dollars per share) | $ 83.38 | $ 83.38 | $ 83.38 | $ 83.38 |
Investments, Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Securities [Abstract] | ||
Amortized cost | $ 439,569 | $ 453,343 |
Gross unrealized gains | 331 | 285 |
Gross unrealized losses | (37,239) | (36,027) |
Allowance for credit losses | 0 | 0 |
Fair value | 402,661 | 417,601 |
U.S. Agency Securities [Member] | ||
Debt Securities [Abstract] | ||
Amortized cost | 61,576 | 66,569 |
Gross unrealized gains | 3 | 1 |
Gross unrealized losses | (5,746) | (5,799) |
Allowance for credit losses | 0 | 0 |
Fair value | 55,833 | 60,771 |
U.S. Treasury Securities [Member] | ||
Debt Securities [Abstract] | ||
Amortized cost | 138,582 | 152,485 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (8,509) | (9,197) |
Allowance for credit losses | 0 | 0 |
Fair value | 130,073 | 143,288 |
Obligations of State and Political Subdivisions [Member] | ||
Debt Securities [Abstract] | ||
Amortized cost | 104,668 | 107,945 |
Gross unrealized gains | 6 | 32 |
Gross unrealized losses | (7,967) | (6,190) |
Allowance for credit losses | 0 | 0 |
Fair value | 96,707 | 101,787 |
Corporate Obligations [Member] | ||
Debt Securities [Abstract] | ||
Amortized cost | 13,422 | 13,394 |
Gross unrealized gains | 273 | 245 |
Gross unrealized losses | (1,245) | (1,236) |
Allowance for credit losses | 0 | 0 |
Fair value | 12,450 | 12,403 |
Mortgage-backed Securities in Government Sponsored Entities [Member] | ||
Debt Securities [Abstract] | ||
Amortized cost | 121,321 | 112,950 |
Gross unrealized gains | 49 | 7 |
Gross unrealized losses | (13,772) | (13,605) |
Allowance for credit losses | 0 | 0 |
Fair value | $ 107,598 | $ 99,352 |
Investments, Gross Unrealized Losses and Fair Value and Net Unrealized Gains (Losses) (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
Security
|
Dec. 31, 2023
USD ($)
|
---|---|---|
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||
Number of securities owned with fair value less than cost | Security | 317 | |
Less than twelve months, Fair value | $ 10,022 | $ 10,690 |
Less than twelve months, Gross unrealized losses | (36) | (296) |
Twelve months or greater, Fair value | 372,997 | 392,449 |
Twelve months or greater, Gross unrealized losses | (37,203) | (35,731) |
Total, Fair value | 383,019 | 403,139 |
Total, Gross Unrealized Losses | (37,239) | (36,027) |
U.S. Agency Securities [Member] | ||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||
Less than twelve months, Fair value | 0 | 0 |
Less than twelve months, Gross unrealized losses | 0 | 0 |
Twelve months or greater, Fair value | 53,815 | 58,753 |
Twelve months or greater, Gross unrealized losses | (5,746) | (5,799) |
Total, Fair value | 53,815 | 58,753 |
Total, Gross Unrealized Losses | (5,746) | (5,799) |
U.S. Treasury Securities [Member] | ||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||
Less than twelve months, Fair value | 0 | 0 |
Less than twelve months, Gross unrealized losses | 0 | 0 |
Twelve months or greater, Fair value | 130,073 | 143,288 |
Twelve months or greater, Gross unrealized losses | (8,509) | (9,197) |
Total, Fair value | 130,073 | 143,288 |
Total, Gross Unrealized Losses | (8,509) | (9,197) |
Obligations of State and Political Subdivisions [Member] | ||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||
Less than twelve months, Fair value | 3,554 | 0 |
Less than twelve months, Gross unrealized losses | (23) | 0 |
Twelve months or greater, Fair value | 88,349 | 93,535 |
Twelve months or greater, Gross unrealized losses | (7,944) | (6,190) |
Total, Fair value | 91,903 | 93,535 |
Total, Gross Unrealized Losses | (7,967) | (6,190) |
Corporate Obligations [Member] | ||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||
Less than twelve months, Fair value | 0 | 1,487 |
Less than twelve months, Gross unrealized losses | 0 | (265) |
Twelve months or greater, Fair value | 9,024 | 8,320 |
Twelve months or greater, Gross unrealized losses | (1,245) | (971) |
Total, Fair value | 9,024 | 9,807 |
Total, Gross Unrealized Losses | (1,245) | (1,236) |
Mortgage-backed Securities in Government Sponsored Entities [Member] | ||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||
Less than twelve months, Fair value | 6,468 | 9,203 |
Less than twelve months, Gross unrealized losses | (13) | (31) |
Twelve months or greater, Fair value | 91,736 | 88,553 |
Twelve months or greater, Gross unrealized losses | (13,759) | (13,574) |
Total, Fair value | 98,204 | 97,756 |
Total, Gross Unrealized Losses | $ (13,772) | $ (13,605) |
Investments, Gross Gains and Losses, Available for Sale Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Investments [Abstract] | |||||
Accrued interest receivable on available-for-sale debt securities | $ 2,119 | $ 2,119 | $ 2,202 | ||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Interest Receivable | Interest Receivable | Interest Receivable | Interest Receivable | |
Contractual payment of past due | 90 days | ||||
Proceeds from sale of securities available-for-sale | $ 0 | $ 86,504 | $ 0 | $ 86,504 | |
Gross gains and losses available-for-sale securities [Abstract] | |||||
Gross gains on available for sale securities | 0 | 38 | 0 | 38 | |
Gross losses on available for sale securities | 0 | (89) | 0 | (89) | |
Net losses | 0 | (51) | 0 | (51) | |
Equity securities [Abstract] | |||||
Net losses recognized in equity securities during the period | (87) | (74) | (32) | (292) | |
Less: Net (losses) gains realized on the sale of equity securities during the period | 0 | 0 | (4) | 5 | |
Net unrealized losses | (87) | $ (74) | (28) | $ (297) | |
Asset Pledged as Collateral [Member] | Public Funds, Other Deposit and Borrowings [Member] | |||||
Investment Securities Pledged [Abstract] | |||||
Investment securities pledged as collateral | $ 345,400 | $ 345,400 | $ 353,300 |
Investments, Debt Securities, Amortized Cost and Fair Value by Maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Available-for-Sale Debt Securities, Amortized Cost [Abstract] | ||
Due in one year or less | $ 48,416 | |
Due after one year through five years | 143,357 | |
Due after five years through ten years | 85,933 | |
Due after ten years | 161,863 | |
Amortized cost | 439,569 | $ 453,343 |
Available-for-Sale Debt Securities, Fair Value [Abstract] | ||
Due in one year or less | 47,437 | |
Due after one year through five years | 132,756 | |
Due after five years through ten years | 77,550 | |
Due after ten years | 144,918 | |
Fair value | $ 402,661 | $ 417,601 |
Loans, Primary Segments Portfolio and Accretable Yield for PCI Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|---|---|
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | $ 2,255,716 | $ 2,248,836 | ||||
Allowance for Credit Losses | (22,797) | $ (21,598) | (21,153) | $ (21,652) | $ (15,250) | $ (18,552) |
Net loans | 2,232,919 | 2,227,683 | ||||
Residential [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | 305,963 | 310,199 | ||||
Commercial [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | 1,110,269 | 1,092,887 | ||||
Construction [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | 180,157 | 195,826 | ||||
Real Estate Loans [Member] | Residential [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | 354,588 | 359,990 | ||||
Allowance for Credit Losses | (2,355) | (2,347) | (2,354) | (2,675) | (1,195) | (1,056) |
Real Estate Loans [Member] | Commercial [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | 1,110,269 | 1,092,887 | ||||
Allowance for Credit Losses | (10,283) | (9,741) | (9,178) | (9,274) | (6,747) | (10,120) |
Real Estate Loans [Member] | Agricultural [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | 327,057 | 314,802 | ||||
Allowance for Credit Losses | (3,770) | (3,672) | (3,264) | (3,579) | (3,409) | (4,589) |
Real Estate Loans [Member] | Construction [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | 180,157 | 195,826 | ||||
Allowance for Credit Losses | (1,627) | (1,595) | (1,950) | (1,667) | (851) | (801) |
Consumer [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | 70,542 | 61,316 | ||||
Allowance for Credit Losses | (1,211) | (1,266) | (1,496) | (1,259) | (1,220) | (135) |
Other Commercial Loans [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | 130,851 | 136,168 | ||||
Allowance for Credit Losses | (3,256) | (2,680) | (2,229) | (2,477) | (712) | (1,040) |
Other Agricultural Loans [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | 26,247 | 30,673 | ||||
Allowance for Credit Losses | (206) | (174) | (270) | (268) | (250) | (489) |
State and Political Subdivision Loans [Member] | ||||||
Segments of loan portfolio and allowance for loan losses [Abstract] | ||||||
Total loans | 56,005 | 57,174 | ||||
Allowance for Credit Losses | $ (63) | $ (65) | $ (45) | $ (52) | $ (42) | $ (322) |
Loans, Components of the Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Financing Receivable, Allowance for Credit Loss [Abstract] | |||||
Allowance for Credit Losses | $ 22,797 | $ 21,652 | $ 22,797 | $ 21,652 | $ 21,153 |
Allowance for credit losses - off-balance sheet credit exposure | 1,066 | 1,391 | 1,066 | 1,391 | 1,265 |
Total allowance for credit losses | 23,863 | 23,043 | 23,863 | 23,043 | 22,418 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 21,598 | 15,250 | 21,153 | 18,552 | 18,552 |
Loans charge-off | (682) | (4) | (1,356) | (11) | |
Recoveries of loans previously charged-off | 7 | 26 | 14 | 31 | |
Net loans charged-off | (675) | 22 | (1,342) | 20 | |
Provision for credit losses | 1,874 | 4,691 | 2,986 | 4,691 | |
Balance at end of period | 22,797 | 21,652 | 22,797 | 21,652 | 21,153 |
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance-Sheet, credit loss, liability | 938 | 1,229 | 1,265 | 165 | 165 |
Off-Balance-Sheet, credit loss, liability, provision for credit losses | 128 | (199) | |||
Off-Balance-Sheet, credit loss, liability | 1,066 | 1,391 | 1,066 | 1,391 | 1,265 |
Financing Receivable, Allowance for Credit Loss and Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | |||||
Balance at beginning of period | 22,536 | 16,479 | 22,418 | 18,717 | 18,717 |
Loans charge-off | (682) | (4) | (1,356) | (11) | |
Recoveries of loans previously charged-off | 7 | 26 | 14 | 31 | |
Net loans charged-off | (675) | 22 | (1,342) | 20 | |
Provision for credit losses | 2,002 | 2,787 | |||
Balance at end of period | $ 23,863 | 23,043 | $ 23,863 | 23,043 | 22,418 |
PCD Acquired Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Abstract] | |||||
Allowance for Credit Losses | |||||
Allowance for credit losses - off-balance sheet credit exposure | |||||
Total allowance for credit losses | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 1,689 | 1,689 | 1,689 | ||
Provision for credit losses | 100 | 100 | |||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance-Sheet, credit loss, liability | 0 | ||||
Off-Balance-Sheet, credit loss, liability, provision for credit losses | 162 | 162 | |||
Financing Receivable, Allowance for Credit Loss and Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | |||||
Balance at beginning of period | 1,689 | 1,689 | 1,689 | ||
Provision for credit losses | 262 | 262 | |||
Acquisition Day 1 Non-PCD [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Provision for credit losses | 4,591 | 4,591 | |||
Financing Receivable, Allowance for Credit Loss and Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | |||||
Provision for credit losses | $ 4,591 | 4,591 | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Abstract] | |||||
Allowance for Credit Losses | |||||
Allowance for credit losses - off-balance sheet credit exposure | |||||
Total allowance for credit losses | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | (3,300) | (3,300) | |||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | |||||
Off-Balance-Sheet, credit loss, liability | 1,064 | 1,064 | |||
Financing Receivable, Allowance for Credit Loss and Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | |||||
Balance at beginning of period | $ (2,236) | $ (2,236) |
Loans, Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | $ 21,598 | $ 15,250 | $ 21,153 | $ 18,552 | $ 18,552 |
Allowance for credit loss on PCD acquired loans | 1,689 | 1,689 | |||
Charge-offs | (682) | (4) | (1,356) | (11) | |
Recoveries | 7 | 26 | 14 | 31 | |
Provision | 1,874 | 4,691 | 2,986 | 4,691 | |
Balance at end of period | 22,797 | 21,652 | 22,797 | 21,652 | 21,153 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | (3,300) | (3,300) | |||
Residential [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Charge-offs | 0 | (1) | |||
Commercial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Charge-offs | 0 | 0 | |||
Construction [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Charge-offs | 0 | 0 | |||
Real Estate Loans [Member] | Residential [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 2,347 | 1,195 | 2,354 | 1,056 | 1,056 |
Allowance for credit loss on PCD acquired loans | 108 | 108 | |||
Charge-offs | 0 | (1) | 0 | (1) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 8 | 1,373 | 1 | 1,433 | |
Balance at end of period | 2,355 | 2,675 | 2,355 | 2,675 | 2,354 |
Real Estate Loans [Member] | Residential [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 79 | 79 | |||
Real Estate Loans [Member] | Commercial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 9,741 | 6,747 | 9,178 | 10,120 | 10,120 |
Allowance for credit loss on PCD acquired loans | 39 | 39 | |||
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 542 | 2,488 | 1,105 | 2,185 | |
Balance at end of period | 10,283 | 9,274 | 10,283 | 9,274 | 9,178 |
Real Estate Loans [Member] | Commercial [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | (3,070) | (3,070) | |||
Real Estate Loans [Member] | Agricultural [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 3,672 | 3,409 | 3,264 | 4,589 | 4,589 |
Allowance for credit loss on PCD acquired loans | 37 | 37 | |||
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 98 | 133 | 506 | 98 | |
Balance at end of period | 3,770 | 3,579 | 3,770 | 3,579 | 3,264 |
Real Estate Loans [Member] | Agricultural [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | (1,145) | (1,145) | |||
Real Estate Loans [Member] | Construction [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 1,595 | 851 | 1,950 | 801 | 801 |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 32 | 816 | (323) | 969 | |
Balance at end of period | 1,627 | 1,667 | 1,627 | 1,667 | 1,950 |
Real Estate Loans [Member] | Construction [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | (103) | (103) | |||
Consumer [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 1,266 | 1,220 | 1,496 | 135 | 135 |
Allowance for credit loss on PCD acquired loans | 677 | 677 | |||
Charge-offs | (7) | (3) | (37) | (10) | |
Recoveries | 5 | 23 | 10 | 27 | |
Provision | (53) | (658) | (258) | (610) | |
Balance at end of period | 1,211 | 1,259 | 1,211 | 1,259 | 1,496 |
Consumer [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 1,040 | 1,040 | |||
Other Commercial Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 2,680 | 712 | 2,229 | 1,040 | 1,040 |
Allowance for credit loss on PCD acquired loans | 828 | 828 | |||
Charge-offs | (675) | 0 | (1,319) | 0 | (963) |
Recoveries | 2 | 3 | 4 | 4 | |
Provision | 1,249 | 934 | 2,342 | 933 | |
Balance at end of period | 3,256 | 2,477 | 3,256 | 2,477 | 2,229 |
Other Commercial Loans [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | (328) | (328) | |||
Other Agricultural Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 174 | 250 | 270 | 489 | 489 |
Allowance for credit loss on PCD acquired loans | 0 | 0 | |||
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 32 | 18 | (64) | (2) | |
Balance at end of period | 206 | 268 | 206 | 268 | 270 |
Other Agricultural Loans [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | (219) | (219) | |||
State and Political Subdivision Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 65 | 42 | 45 | 322 | 322 |
Allowance for credit loss on PCD acquired loans | 0 | 0 | |||
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (2) | 10 | 18 | 10 | |
Balance at end of period | 63 | 52 | 63 | 52 | 45 |
State and Political Subdivision Loans [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | (280) | (280) | |||
Unallocated [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | 58 | 824 | 367 | 0 | 0 |
Allowance for credit loss on PCD acquired loans | 0 | 0 | |||
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (32) | (423) | (341) | (325) | |
Balance at end of period | $ 26 | $ 401 | $ 26 | 401 | 367 |
Unallocated [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Balance at beginning of period | $ 726 | $ 726 |
Loans, Allowance for Credit Losses - Loans and Amortized Cost Basis of Loans Under CECL Methodology (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|---|---|
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Collectively evaluated for impairment | $ 20,392 | $ 19,181 | ||||
Individually evaluated for impairment | 2,405 | 1,972 | ||||
Total Allowance for Credit Losses - Loans for impairment | 22,797 | $ 21,598 | 21,153 | $ 21,652 | $ 15,250 | $ 18,552 |
Collectively evaluated for impairment | 2,242,194 | 2,235,955 | ||||
Individually evaluated for impairment | 13,522 | 12,881 | ||||
Total Loans | 2,255,716 | 2,248,836 | ||||
Residential [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Total Loans | 305,963 | 310,199 | ||||
Commercial [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Total Loans | 1,110,269 | 1,092,887 | ||||
Construction [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Total Loans | 180,157 | 195,826 | ||||
Real Estate Loans [Member] | Residential [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Collectively evaluated for impairment | 2,304 | 2,285 | ||||
Individually evaluated for impairment | 51 | 69 | ||||
Total Allowance for Credit Losses - Loans for impairment | 2,355 | 2,347 | 2,354 | 2,675 | 1,195 | 1,056 |
Collectively evaluated for impairment | 352,924 | 358,358 | ||||
Individually evaluated for impairment | 1,664 | 1,632 | ||||
Total Loans | 354,588 | 359,990 | ||||
Real Estate Loans [Member] | Commercial [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Collectively evaluated for impairment | 10,164 | 9,033 | ||||
Individually evaluated for impairment | 119 | 145 | ||||
Total Allowance for Credit Losses - Loans for impairment | 10,283 | 9,741 | 9,178 | 9,274 | 6,747 | 10,120 |
Collectively evaluated for impairment | 1,107,745 | 1,090,217 | ||||
Individually evaluated for impairment | 2,524 | 2,670 | ||||
Total Loans | 1,110,269 | 1,092,887 | ||||
Real Estate Loans [Member] | Agricultural [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Collectively evaluated for impairment | 3,753 | 3,247 | ||||
Individually evaluated for impairment | 17 | 17 | ||||
Total Allowance for Credit Losses - Loans for impairment | 3,770 | 3,672 | 3,264 | 3,579 | 3,409 | 4,589 |
Collectively evaluated for impairment | 324,538 | 311,500 | ||||
Individually evaluated for impairment | 2,519 | 3,302 | ||||
Total Loans | 327,057 | 314,802 | ||||
Real Estate Loans [Member] | Construction [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Collectively evaluated for impairment | 1,627 | 1,664 | ||||
Individually evaluated for impairment | 0 | 286 | ||||
Total Allowance for Credit Losses - Loans for impairment | 1,627 | 1,595 | 1,950 | 1,667 | 851 | 801 |
Collectively evaluated for impairment | 178,209 | 193,469 | ||||
Individually evaluated for impairment | 1,948 | 2,357 | ||||
Total Loans | 180,157 | 195,826 | ||||
Consumer [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Collectively evaluated for impairment | 334 | 557 | ||||
Individually evaluated for impairment | 877 | 939 | ||||
Total Allowance for Credit Losses - Loans for impairment | 1,211 | 1,266 | 1,496 | 1,259 | 1,220 | 135 |
Collectively evaluated for impairment | 69,585 | 60,377 | ||||
Individually evaluated for impairment | 957 | 939 | ||||
Total Loans | 70,542 | 61,316 | ||||
Other Commercial Loans [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Collectively evaluated for impairment | 1,915 | 1,713 | ||||
Individually evaluated for impairment | 1,341 | 516 | ||||
Total Allowance for Credit Losses - Loans for impairment | 3,256 | 2,680 | 2,229 | 2,477 | 712 | 1,040 |
Collectively evaluated for impairment | 127,352 | 134,472 | ||||
Individually evaluated for impairment | 3,499 | 1,696 | ||||
Total Loans | 130,851 | 136,168 | ||||
Other Agricultural Loans [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Collectively evaluated for impairment | 206 | 270 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Total Allowance for Credit Losses - Loans for impairment | 206 | 174 | 270 | 268 | 250 | 489 |
Collectively evaluated for impairment | 25,836 | 30,388 | ||||
Individually evaluated for impairment | 411 | 285 | ||||
Total Loans | 26,247 | 30,673 | ||||
State and Political Subdivision Loans [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Collectively evaluated for impairment | 63 | 45 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Total Allowance for Credit Losses - Loans for impairment | 63 | 65 | 45 | 52 | 42 | 322 |
Collectively evaluated for impairment | 56,005 | 57,174 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Total Loans | 56,005 | 57,174 | ||||
Unallocated [Member] | ||||||
Loans And Leases Receivable, Allowance For Loan Losses [Abstract] | ||||||
Collectively evaluated for impairment | 26 | 367 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Total Allowance for Credit Losses - Loans for impairment | 26 | $ 58 | 367 | $ 401 | $ 824 | $ 0 |
Collectively evaluated for impairment | 0 | 0 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Total Loans | $ 0 | $ 0 |
Loans, Credit Quality Indicator, Summary (Details) - Minimum [Member] $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Financing Receivable [Abstract] | |
Amount over which all relationships to be reviewed, minimum | $ 500 |
Percentage of dollar volume of commercial loan portfolio to be reviewed | 50.00% |
Amount over which all relationships to be reviewed | $ 1,000 |
Amount which is 30 days past due to be reviewed for all aggregate loan relationships | $ 750 |
Loans, Credit Exposures by Internally Assigned Grades, by Origination Year (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Total loans | $ 2,255,716 | $ 2,255,716 | $ 2,248,836 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
Gross charge-offs | 682 | $ 4 | 1,356 | $ 11 | |
Commercial Real Estate [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 24,386 | 24,386 | 90,740 | ||
2023/2022 | 86,583 | 86,583 | 342,975 | ||
2022/2021 | 365,614 | 365,614 | 225,106 | ||
2021/2020 | 213,384 | 213,384 | 124,112 | ||
2020/2019 | 120,541 | 120,541 | 89,157 | ||
Prior | 260,116 | 260,116 | 190,402 | ||
Revolving Loans Amortized Cost Basis | 37,385 | 37,385 | 28,773 | ||
Revolving Loans Converted to Term | 2,260 | 2,260 | 1,622 | ||
Total loans | 1,110,269 | 1,110,269 | 1,092,887 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | |||
2023/2022 | 0 | 0 | |||
2022/2021 | 0 | 0 | |||
2021/2020 | 0 | 0 | |||
2020/2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Gross charge-offs | 0 | 0 | |||
Commercial Real Estate [Member] | Pass [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 24,386 | 24,386 | 90,068 | ||
2023/2022 | 86,011 | 86,011 | 333,710 | ||
2022/2021 | 346,073 | 346,073 | 224,873 | ||
2021/2020 | 211,774 | 211,774 | 122,560 | ||
2020/2019 | 118,917 | 118,917 | 81,557 | ||
Prior | 240,719 | 240,719 | 180,799 | ||
Revolving Loans Amortized Cost Basis | 36,287 | 36,287 | 28,360 | ||
Revolving Loans Converted to Term | 1,852 | 1,852 | 1,140 | ||
Total loans | 1,066,019 | 1,066,019 | 1,063,067 | ||
Commercial Real Estate [Member] | Special Mention [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 672 | ||
2023/2022 | 0 | 0 | 7,963 | ||
2022/2021 | 6,496 | 6,496 | 227 | ||
2021/2020 | 1,065 | 1,065 | 1,552 | ||
2020/2019 | 1,430 | 1,430 | 7,442 | ||
Prior | 8,672 | 8,672 | 8,159 | ||
Revolving Loans Amortized Cost Basis | 768 | 768 | 96 | ||
Revolving Loans Converted to Term | 0 | 0 | 60 | ||
Total loans | 18,431 | 18,431 | 26,171 | ||
Commercial Real Estate [Member] | Substandard [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 572 | 572 | 1,302 | ||
2022/2021 | 13,045 | 13,045 | 6 | ||
2021/2020 | 545 | 545 | 0 | ||
2020/2019 | 194 | 194 | 158 | ||
Prior | 10,725 | 10,725 | 1,444 | ||
Revolving Loans Amortized Cost Basis | 330 | 330 | 317 | ||
Revolving Loans Converted to Term | 408 | 408 | 422 | ||
Total loans | 25,819 | 25,819 | 3,649 | ||
Commercial Real Estate [Member] | Doubtful [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 0 | 0 | 0 | ||
Agricultural Real Estate [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 16,523 | 16,523 | 23,206 | ||
2023/2022 | 27,147 | 27,147 | 56,644 | ||
2022/2021 | 58,779 | 58,779 | 30,489 | ||
2021/2020 | 29,122 | 29,122 | 32,058 | ||
2020/2019 | 30,726 | 30,726 | 26,470 | ||
Prior | 147,013 | 147,013 | 131,132 | ||
Revolving Loans Amortized Cost Basis | 16,974 | 16,974 | 14,105 | ||
Revolving Loans Converted to Term | 773 | 773 | 698 | ||
Total loans | 327,057 | 327,057 | 314,802 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | |||
2023/2022 | 0 | 0 | |||
2022/2021 | 0 | 0 | |||
2021/2020 | 0 | 0 | |||
2020/2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Gross charge-offs | 0 | 0 | |||
Agricultural Real Estate [Member] | Pass [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 13,464 | 13,464 | 22,632 | ||
2023/2022 | 26,962 | 26,962 | 47,479 | ||
2022/2021 | 48,430 | 48,430 | 28,990 | ||
2021/2020 | 27,830 | 27,830 | 32,058 | ||
2020/2019 | 30,726 | 30,726 | 25,406 | ||
Prior | 136,181 | 136,181 | 118,700 | ||
Revolving Loans Amortized Cost Basis | 14,772 | 14,772 | 10,495 | ||
Revolving Loans Converted to Term | 119 | 119 | 460 | ||
Total loans | 298,484 | 298,484 | 286,220 | ||
Agricultural Real Estate [Member] | Special Mention [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 3,059 | 3,059 | 574 | ||
2023/2022 | 185 | 185 | 9,165 | ||
2022/2021 | 10,349 | 10,349 | 1,499 | ||
2021/2020 | 1,292 | 1,292 | 0 | ||
2020/2019 | 0 | 0 | 962 | ||
Prior | 7,919 | 7,919 | 7,038 | ||
Revolving Loans Amortized Cost Basis | 2,202 | 2,202 | 3,535 | ||
Revolving Loans Converted to Term | 562 | 562 | 0 | ||
Total loans | 25,568 | 25,568 | 22,773 | ||
Agricultural Real Estate [Member] | Substandard [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 0 | 0 | 102 | ||
Prior | 2,913 | 2,913 | 5,394 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 75 | ||
Revolving Loans Converted to Term | 92 | 92 | 238 | ||
Total loans | 3,005 | 3,005 | 5,809 | ||
Agricultural Real Estate [Member] | Doubtful [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 0 | 0 | 0 | ||
Construction [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 19,891 | 19,891 | 56,547 | ||
2023/2022 | 58,035 | 58,035 | 107,994 | ||
2022/2021 | 85,716 | 85,716 | 29,280 | ||
2021/2020 | 12,640 | 12,640 | 0 | ||
2020/2019 | 2,890 | 2,890 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 864 | 864 | 839 | ||
Revolving Loans Converted to Term | 121 | 121 | 1,166 | ||
Total loans | 180,157 | 180,157 | 195,826 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | |||
2023/2022 | 0 | 0 | |||
2022/2021 | 0 | 0 | |||
2021/2020 | 0 | 0 | |||
2020/2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Gross charge-offs | 0 | 0 | |||
Construction [Member] | Pass [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 19,891 | 19,891 | 54,973 | ||
2023/2022 | 57,223 | 57,223 | 102,562 | ||
2022/2021 | 80,691 | 80,691 | 22,508 | ||
2021/2020 | 7,742 | 7,742 | 0 | ||
2020/2019 | 2,890 | 2,890 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 864 | 864 | 839 | ||
Revolving Loans Converted to Term | 121 | 121 | 1,166 | ||
Total loans | 169,422 | 169,422 | 182,048 | ||
Construction [Member] | Special Mention [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 1,574 | ||
2023/2022 | 812 | 812 | 5,432 | ||
2022/2021 | 4,613 | 4,613 | 4,415 | ||
2021/2020 | 2,950 | 2,950 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 8,375 | 8,375 | 11,421 | ||
Construction [Member] | Substandard [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 412 | 412 | 2,357 | ||
2021/2020 | 1,948 | 1,948 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 2,360 | 2,360 | 2,357 | ||
Construction [Member] | Doubtful [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 0 | 0 | 0 | ||
Other Commercial Loans [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 28,272 | 28,272 | 31,596 | ||
2023/2022 | 27,647 | 27,647 | 11,556 | ||
2022/2021 | 10,042 | 10,042 | 10,526 | ||
2021/2020 | 8,959 | 8,959 | 4,977 | ||
2020/2019 | 2,469 | 2,469 | 5,130 | ||
Prior | 5,247 | 5,247 | 5,126 | ||
Revolving Loans Amortized Cost Basis | 46,418 | 46,418 | 65,439 | ||
Revolving Loans Converted to Term | 1,797 | 1,797 | 1,818 | ||
Total loans | 130,851 | 130,851 | 136,168 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
2024/2023 | 0 | 200 | |||
2023/2022 | 0 | 0 | |||
2022/2021 | 0 | 0 | |||
2021/2020 | 0 | 763 | |||
2020/2019 | 6 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 1,313 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Gross charge-offs | 675 | 0 | 1,319 | 0 | 963 |
Other Commercial Loans [Member] | Pass [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 27,900 | 27,900 | 31,493 | ||
2023/2022 | 26,364 | 26,364 | 11,407 | ||
2022/2021 | 7,742 | 7,742 | 9,016 | ||
2021/2020 | 7,540 | 7,540 | 4,793 | ||
2020/2019 | 2,208 | 2,208 | 4,758 | ||
Prior | 4,030 | 4,030 | 3,530 | ||
Revolving Loans Amortized Cost Basis | 40,759 | 40,759 | 63,285 | ||
Revolving Loans Converted to Term | 83 | 83 | 93 | ||
Total loans | 116,626 | 116,626 | 128,375 | ||
Other Commercial Loans [Member] | Special Mention [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 330 | 330 | 51 | ||
2023/2022 | 0 | 0 | 52 | ||
2022/2021 | 1,919 | 1,919 | 1,510 | ||
2021/2020 | 1,419 | 1,419 | 184 | ||
2020/2019 | 2 | 2 | 223 | ||
Prior | 81 | 81 | 629 | ||
Revolving Loans Amortized Cost Basis | 5,312 | 5,312 | 1,652 | ||
Revolving Loans Converted to Term | 36 | 36 | 36 | ||
Total loans | 9,099 | 9,099 | 4,337 | ||
Other Commercial Loans [Member] | Substandard [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 42 | 42 | 52 | ||
2023/2022 | 1,283 | 1,283 | 97 | ||
2022/2021 | 381 | 381 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 259 | 259 | 149 | ||
Prior | 1,136 | 1,136 | 967 | ||
Revolving Loans Amortized Cost Basis | 347 | 347 | 502 | ||
Revolving Loans Converted to Term | 1,661 | 1,661 | 1,667 | ||
Total loans | 5,109 | 5,109 | 3,434 | ||
Other Commercial Loans [Member] | Doubtful [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 17 | 17 | 22 | ||
Total loans | 17 | 17 | 22 | ||
Other Agricultural Loans [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 3,126 | 3,126 | 3,902 | ||
2023/2022 | 2,630 | 2,630 | 1,993 | ||
2022/2021 | 1,562 | 1,562 | 6,671 | ||
2021/2020 | 5,504 | 5,504 | 1,088 | ||
2020/2019 | 518 | 518 | 536 | ||
Prior | 611 | 611 | 560 | ||
Revolving Loans Amortized Cost Basis | 12,274 | 12,274 | 15,863 | ||
Revolving Loans Converted to Term | 22 | 22 | 60 | ||
Total loans | 26,247 | 26,247 | 30,673 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | |||
2023/2022 | 0 | 0 | |||
2022/2021 | 0 | 0 | |||
2021/2020 | 0 | 0 | |||
2020/2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Gross charge-offs | 0 | 0 | 0 | 0 | 0 |
Other Agricultural Loans [Member] | Pass [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 2,392 | 2,392 | 3,902 | ||
2023/2022 | 2,630 | 2,630 | 1,520 | ||
2022/2021 | 1,157 | 1,157 | 6,448 | ||
2021/2020 | 4,912 | 4,912 | 1,046 | ||
2020/2019 | 518 | 518 | 532 | ||
Prior | 412 | 412 | 305 | ||
Revolving Loans Amortized Cost Basis | 11,491 | 11,491 | 15,331 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 23,512 | 23,512 | 29,084 | ||
Other Agricultural Loans [Member] | Special Mention [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 734 | 734 | 0 | ||
2023/2022 | 0 | 0 | 473 | ||
2022/2021 | 405 | 405 | 16 | ||
2021/2020 | 401 | 401 | 42 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 739 | 739 | 488 | ||
Revolving Loans Converted to Term | 0 | 0 | 29 | ||
Total loans | 2,279 | 2,279 | 1,048 | ||
Other Agricultural Loans [Member] | Substandard [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 207 | ||
2021/2020 | 191 | 191 | 0 | ||
2020/2019 | 0 | 0 | 4 | ||
Prior | 199 | 199 | 255 | ||
Revolving Loans Amortized Cost Basis | 44 | 44 | 44 | ||
Revolving Loans Converted to Term | 22 | 22 | 31 | ||
Total loans | 456 | 456 | 541 | ||
Other Agricultural Loans [Member] | Doubtful [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 0 | 0 | 0 | ||
State and Political Subdivision Loans [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 30 | 30 | 1,623 | ||
2023/2022 | 1,541 | 1,541 | 14,171 | ||
2022/2021 | 14,101 | 14,101 | 10,841 | ||
2021/2020 | 10,600 | 10,600 | 5,235 | ||
2020/2019 | 5,439 | 5,439 | 0 | ||
Prior | 24,294 | 24,294 | 25,294 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 10 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 56,005 | 56,005 | 57,174 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | |||
2023/2022 | 0 | 0 | |||
2022/2021 | 0 | 0 | |||
2021/2020 | 0 | 0 | |||
2020/2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Gross charge-offs | 0 | $ 0 | 0 | $ 0 | 0 |
State and Political Subdivision Loans [Member] | Pass [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 30 | 30 | 1,623 | ||
2023/2022 | 1,541 | 1,541 | 14,171 | ||
2022/2021 | 14,101 | 14,101 | 10,841 | ||
2021/2020 | 10,600 | 10,600 | 5,235 | ||
2020/2019 | 5,439 | 5,439 | 0 | ||
Prior | 24,294 | 24,294 | 25,294 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 10 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 56,005 | 56,005 | 57,174 | ||
State and Political Subdivision Loans [Member] | Special Mention [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 0 | 0 | 0 | ||
State and Political Subdivision Loans [Member] | Substandard [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 0 | 0 | 0 | ||
State and Political Subdivision Loans [Member] | Doubtful [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 0 | 0 | 0 | ||
Total Loans [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 92,228 | 92,228 | 207,614 | ||
2023/2022 | 203,583 | 203,583 | 535,333 | ||
2022/2021 | 535,814 | 535,814 | 312,913 | ||
2021/2020 | 280,209 | 280,209 | 167,470 | ||
2020/2019 | 162,583 | 162,583 | 121,293 | ||
Prior | 437,281 | 437,281 | 352,514 | ||
Revolving Loans Amortized Cost Basis | 113,915 | 113,915 | 125,029 | ||
Revolving Loans Converted to Term | 4,973 | 4,973 | 5,364 | ||
Total loans | 1,830,586 | 1,830,586 | 1,827,530 | ||
Total Loans [Member] | Pass [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 88,063 | 88,063 | 204,691 | ||
2023/2022 | 200,731 | 200,731 | 510,849 | ||
2022/2021 | 498,194 | 498,194 | 302,676 | ||
2021/2020 | 270,398 | 270,398 | 165,692 | ||
2020/2019 | 160,698 | 160,698 | 112,253 | ||
Prior | 405,636 | 405,636 | 328,628 | ||
Revolving Loans Amortized Cost Basis | 104,173 | 104,173 | 118,320 | ||
Revolving Loans Converted to Term | 2,175 | 2,175 | 2,859 | ||
Total loans | 1,730,068 | 1,730,068 | 1,745,968 | ||
Total Loans [Member] | Special Mention [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 4,123 | 4,123 | 2,871 | ||
2023/2022 | 997 | 997 | 23,085 | ||
2022/2021 | 23,782 | 23,782 | 7,667 | ||
2021/2020 | 7,127 | 7,127 | 1,778 | ||
2020/2019 | 1,432 | 1,432 | 8,627 | ||
Prior | 16,672 | 16,672 | 15,826 | ||
Revolving Loans Amortized Cost Basis | 9,021 | 9,021 | 5,771 | ||
Revolving Loans Converted to Term | 598 | 598 | 125 | ||
Total loans | 63,752 | 63,752 | 65,750 | ||
Total Loans [Member] | Substandard [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 42 | 42 | 52 | ||
2023/2022 | 1,855 | 1,855 | 1,399 | ||
2022/2021 | 13,838 | 13,838 | 2,570 | ||
2021/2020 | 2,684 | 2,684 | 0 | ||
2020/2019 | 453 | 453 | 413 | ||
Prior | 14,973 | 14,973 | 8,060 | ||
Revolving Loans Amortized Cost Basis | 721 | 721 | 938 | ||
Revolving Loans Converted to Term | 2,183 | 2,183 | 2,358 | ||
Total loans | 36,749 | 36,749 | 15,790 | ||
Total Loans [Member] | Doubtful [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 17 | 17 | 22 | ||
Total loans | $ 17 | $ 17 | $ 22 |
Loans, Recorded Investment in Loan Classes Based on Payment Activity, By Origination Year (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
Total loans | $ 2,255,716 | $ 2,255,716 | $ 2,248,836 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
Gross charge-offs | 682 | $ 4 | 1,356 | $ 11 | |
Residential Real Estate [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 5,634 | 5,634 | 19,082 | ||
2023/2022 | 19,686 | 19,686 | 94,105 | ||
2022/2021 | 91,977 | 91,977 | 48,540 | ||
2021/2020 | 48,278 | 48,278 | 30,336 | ||
2020/2019 | 29,100 | 29,100 | 18,923 | ||
Prior | 111,288 | 111,288 | 99,213 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 305,963 | 305,963 | 310,199 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | |||
2023/2022 | 0 | 0 | |||
2022/2021 | 0 | 0 | |||
2021/2020 | 0 | 0 | |||
2020/2019 | 0 | 0 | |||
Prior | 0 | 1 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Gross charge-offs | 0 | 1 | |||
Residential Real Estate [Member] | Performing [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 5,634 | 5,634 | 19,082 | ||
2023/2022 | 19,686 | 19,686 | 93,706 | ||
2022/2021 | 91,593 | 91,593 | 47,774 | ||
2021/2020 | 47,532 | 47,532 | 29,940 | ||
2020/2019 | 28,521 | 28,521 | 18,923 | ||
Prior | 110,070 | 110,070 | 97,813 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 303,036 | 303,036 | 307,238 | ||
Residential Real Estate [Member] | Nonperforming [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 399 | ||
2022/2021 | 384 | 384 | 766 | ||
2021/2020 | 746 | 746 | 396 | ||
2020/2019 | 579 | 579 | 0 | ||
Prior | 1,218 | 1,218 | 1,400 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 2,927 | 2,927 | 2,961 | ||
Home Equity [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 1,321 | 1,321 | 3,877 | ||
2023/2022 | 3,755 | 3,755 | 3,008 | ||
2022/2021 | 2,736 | 2,736 | 1,886 | ||
2021/2020 | 1,843 | 1,843 | 1,954 | ||
2020/2019 | 1,753 | 1,753 | 2,462 | ||
Prior | 9,142 | 9,142 | 7,955 | ||
Revolving Loans Amortized Cost Basis | 27,712 | 27,712 | 28,286 | ||
Revolving Loans Converted to Term | 363 | 363 | 363 | ||
Total loans | 48,625 | 48,625 | 49,791 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | |||
2023/2022 | 0 | 0 | |||
2022/2021 | 0 | 0 | |||
2021/2020 | 0 | 0 | |||
2020/2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Gross charge-offs | 0 | 0 | |||
Home Equity [Member] | Performing [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 1,321 | 1,321 | 3,877 | ||
2023/2022 | 3,755 | 3,755 | 3,008 | ||
2022/2021 | 2,736 | 2,736 | 1,886 | ||
2021/2020 | 1,843 | 1,843 | 1,954 | ||
2020/2019 | 1,753 | 1,753 | 2,462 | ||
Prior | 9,089 | 9,089 | 7,883 | ||
Revolving Loans Amortized Cost Basis | 27,646 | 27,646 | 28,219 | ||
Revolving Loans Converted to Term | 287 | 287 | 363 | ||
Total loans | 48,430 | 48,430 | 49,652 | ||
Home Equity [Member] | Nonperforming [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 0 | 0 | 0 | ||
2022/2021 | 0 | 0 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 0 | 0 | 0 | ||
Prior | 53 | 53 | 72 | ||
Revolving Loans Amortized Cost Basis | 66 | 66 | 67 | ||
Revolving Loans Converted to Term | 76 | 76 | 0 | ||
Total loans | 195 | 195 | 139 | ||
Consumer [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 1,304 | 1,304 | 1,803 | ||
2023/2022 | 1,369 | 1,369 | 1,000 | ||
2022/2021 | 750 | 750 | 539 | ||
2021/2020 | 461 | 461 | 477 | ||
2020/2019 | 389 | 389 | 557 | ||
Prior | 3,688 | 3,688 | 3,681 | ||
Revolving Loans Amortized Cost Basis | 62,579 | 62,579 | 53,254 | ||
Revolving Loans Converted to Term | 2 | 2 | 5 | ||
Total loans | 70,542 | 70,542 | 61,316 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | |||
2023/2022 | 0 | 0 | |||
2022/2021 | 21 | 0 | |||
2021/2020 | 0 | 0 | |||
2020/2019 | 0 | 1 | |||
Prior | 0 | 341 | |||
Revolving Loans Amortized Cost Basis | 16 | 23 | |||
Revolving Loans Converted to Term | 0 | 0 | |||
Gross charge-offs | 37 | 365 | |||
Consumer [Member] | Performing [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 1,304 | 1,304 | 1,803 | ||
2023/2022 | 1,363 | 1,363 | 979 | ||
2022/2021 | 746 | 746 | 539 | ||
2021/2020 | 461 | 461 | 477 | ||
2020/2019 | 377 | 377 | 557 | ||
Prior | 2,823 | 2,823 | 2,988 | ||
Revolving Loans Amortized Cost Basis | 62,579 | 62,579 | 53,254 | ||
Revolving Loans Converted to Term | 2 | 2 | 5 | ||
Total loans | 69,655 | 69,655 | 60,602 | ||
Consumer [Member] | Nonperforming [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 6 | 6 | 21 | ||
2022/2021 | 4 | 4 | 0 | ||
2021/2020 | 0 | 0 | 0 | ||
2020/2019 | 12 | 12 | 0 | ||
Prior | 865 | 865 | 693 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Revolving Loans Converted to Term | 0 | 0 | 0 | ||
Total loans | 887 | 887 | 714 | ||
Mortgage, Home Equity, and Consumer [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 8,259 | 8,259 | 24,762 | ||
2023/2022 | 24,810 | 24,810 | 98,113 | ||
2022/2021 | 95,463 | 95,463 | 50,965 | ||
2021/2020 | 50,582 | 50,582 | 32,767 | ||
2020/2019 | 31,242 | 31,242 | 21,942 | ||
Prior | 124,118 | 124,118 | 110,849 | ||
Revolving Loans Amortized Cost Basis | 90,291 | 90,291 | 81,540 | ||
Revolving Loans Converted to Term | 365 | 365 | 368 | ||
Total loans | 425,130 | 425,130 | 421,306 | ||
Mortgage, Home Equity, and Consumer [Member] | Performing [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 8,259 | 8,259 | 24,762 | ||
2023/2022 | 24,804 | 24,804 | 97,693 | ||
2022/2021 | 95,075 | 95,075 | 50,199 | ||
2021/2020 | 49,836 | 49,836 | 32,371 | ||
2020/2019 | 30,651 | 30,651 | 21,942 | ||
Prior | 121,982 | 121,982 | 108,684 | ||
Revolving Loans Amortized Cost Basis | 90,225 | 90,225 | 81,473 | ||
Revolving Loans Converted to Term | 289 | 289 | 368 | ||
Total loans | 421,121 | 421,121 | 417,492 | ||
Mortgage, Home Equity, and Consumer [Member] | Nonperforming [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
2024/2023 | 0 | 0 | 0 | ||
2023/2022 | 6 | 6 | 420 | ||
2022/2021 | 388 | 388 | 766 | ||
2021/2020 | 746 | 746 | 396 | ||
2020/2019 | 591 | 591 | 0 | ||
Prior | 2,136 | 2,136 | 2,165 | ||
Revolving Loans Amortized Cost Basis | 66 | 66 | 67 | ||
Revolving Loans Converted to Term | 76 | 76 | 0 | ||
Total loans | 4,009 | 4,009 | 3,814 | ||
Real Estate Loans [Member] | Residential Real Estate [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
Total loans | 354,588 | 354,588 | 359,990 | ||
Financing Receivable, Current period gross charge-offs by Portfolio Class and Origination Year [Abstract] | |||||
Gross charge-offs | 0 | $ 1 | 0 | $ 1 | |
Real Estate Loans [Member] | Home Equity [Member] | |||||
Financing Receivable, Credit Exposures by Internally Assigned Grades, by Origination Year [Abstract] | |||||
Total loans | $ 48,625 | $ 48,625 | $ 49,791 |
Loans, Past Due (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Recorded investment of past due [Abstract] | ||
Total past due | $ 2,255,716 | $ 2,248,836 |
90 days or greater past due and accruing | 285 | 516 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 14,949 | 12,187 |
Nonaccrual With a related allowance | 3,928 | 4,398 |
Nonaccrual Without a related allowance | 11,021 | 7,789 |
90 days or greater past due and accruing | 285 | 516 |
Total non-performing loans | 15,234 | 12,703 |
Financing receivables on accrual status [Abstract] | ||
Total financing receivables and still accruing | $ 2,240,767 | 2,236,649 |
Minimum [Member] | ||
Financing receivables on nonaccrual status [Abstract] | ||
Period of past due after which loans considered as non accrual | 90 days | |
Current [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | $ 2,223,525 | 2,229,685 |
Financing receivables on nonaccrual status [Abstract] | ||
Current and non-accrual | 3,702 | 4,008 |
Financing receivable nonaccrual status | 2,223,525 | 2,229,685 |
Financing receivables on accrual status [Abstract] | ||
Current and still accruing | 2,219,823 | 2,225,677 |
Total Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 32,191 | 19,151 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 11,247 | 8,179 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 20,944 | 10,972 |
30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 11,262 | 9,251 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 67 | 199 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 11,195 | 9,052 |
60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 11,384 | 2,070 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 1,920 | 666 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 9,464 | 1,404 |
90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 9,545 | 7,830 |
Financing receivables on nonaccrual status [Abstract] | ||
Total past due and non-accrual | 9,260 | 7,314 |
Financing receivables on accrual status [Abstract] | ||
Total past due and still accruing | 285 | 516 |
Home Equity [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 48,625 | 49,791 |
Commercial [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,110,269 | 1,092,887 |
Construction [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 180,157 | 195,826 |
Real Estate Loans [Member] | Mortgages [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 305,963 | 310,199 |
90 days or greater past due and accruing | 0 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 2,927 | 2,961 |
Nonaccrual With a related allowance | 0 | 315 |
Nonaccrual Without a related allowance | 2,927 | 2,646 |
90 days or greater past due and accruing | 0 | 0 |
Total non-performing loans | 2,927 | 2,961 |
Real Estate Loans [Member] | Mortgages [Member] | Current [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 302,113 | 304,917 |
Real Estate Loans [Member] | Mortgages [Member] | Total Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 3,850 | 5,282 |
Real Estate Loans [Member] | Mortgages [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,823 | 2,682 |
Real Estate Loans [Member] | Mortgages [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 298 | 360 |
Real Estate Loans [Member] | Mortgages [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,729 | 2,240 |
Real Estate Loans [Member] | Home Equity [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 48,625 | 49,791 |
90 days or greater past due and accruing | 76 | 18 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 119 | 121 |
Nonaccrual With a related allowance | 0 | 0 |
Nonaccrual Without a related allowance | 119 | 121 |
90 days or greater past due and accruing | 76 | 18 |
Total non-performing loans | 195 | 139 |
Real Estate Loans [Member] | Home Equity [Member] | Current [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 48,283 | 49,508 |
Real Estate Loans [Member] | Home Equity [Member] | Total Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 342 | 283 |
Real Estate Loans [Member] | Home Equity [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 106 | 145 |
Real Estate Loans [Member] | Home Equity [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 41 | 67 |
Real Estate Loans [Member] | Home Equity [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 195 | 71 |
Real Estate Loans [Member] | Commercial [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,110,269 | 1,092,887 |
90 days or greater past due and accruing | 168 | 404 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 2,524 | 1,135 |
Nonaccrual With a related allowance | 1,248 | 256 |
Nonaccrual Without a related allowance | 1,276 | 879 |
90 days or greater past due and accruing | 168 | 404 |
Total non-performing loans | 2,692 | 1,539 |
Real Estate Loans [Member] | Commercial [Member] | Current [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,093,652 | 1,090,111 |
Real Estate Loans [Member] | Commercial [Member] | Total Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 16,617 | 2,776 |
Real Estate Loans [Member] | Commercial [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 5,280 | 1,151 |
Real Estate Loans [Member] | Commercial [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 8,794 | 245 |
Real Estate Loans [Member] | Commercial [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 2,543 | 1,380 |
Real Estate Loans [Member] | Agricultural [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 327,057 | 314,802 |
90 days or greater past due and accruing | 0 | 75 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 2,519 | 2,670 |
Nonaccrual With a related allowance | 181 | 181 |
Nonaccrual Without a related allowance | 2,338 | 2,489 |
90 days or greater past due and accruing | 0 | 75 |
Total non-performing loans | 2,519 | 2,745 |
Real Estate Loans [Member] | Agricultural [Member] | Current [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 324,356 | 313,290 |
Real Estate Loans [Member] | Agricultural [Member] | Total Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 2,701 | 1,512 |
Real Estate Loans [Member] | Agricultural [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 2,151 | 72 |
Real Estate Loans [Member] | Agricultural [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 369 | 0 |
Real Estate Loans [Member] | Agricultural [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 181 | 1,440 |
Real Estate Loans [Member] | Construction [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 180,157 | 195,826 |
90 days or greater past due and accruing | 0 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 1,948 | 2,357 |
Nonaccrual With a related allowance | 0 | 2,357 |
Nonaccrual Without a related allowance | 1,948 | 0 |
90 days or greater past due and accruing | 0 | 0 |
Total non-performing loans | 1,948 | 2,357 |
Real Estate Loans [Member] | Construction [Member] | Current [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 177,231 | 188,674 |
Real Estate Loans [Member] | Construction [Member] | Total Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 2,926 | 7,152 |
Real Estate Loans [Member] | Construction [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 978 | 4,407 |
Real Estate Loans [Member] | Construction [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 0 | 388 |
Real Estate Loans [Member] | Construction [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,948 | 2,357 |
Consumer [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 70,542 | 61,316 |
90 days or greater past due and accruing | 16 | 13 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 871 | 701 |
Nonaccrual With a related allowance | 871 | 701 |
Nonaccrual Without a related allowance | 0 | 0 |
90 days or greater past due and accruing | 16 | 13 |
Total non-performing loans | 887 | 714 |
Consumer [Member] | Current [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 69,487 | 60,995 |
Consumer [Member] | Total Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,055 | 321 |
Consumer [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 147 | 16 |
Consumer [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 21 | 282 |
Consumer [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 887 | 23 |
Other Commercial Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 130,851 | 136,168 |
90 days or greater past due and accruing | 25 | 6 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 3,630 | 1,750 |
Nonaccrual With a related allowance | 1,628 | 588 |
Nonaccrual Without a related allowance | 2,002 | 1,162 |
90 days or greater past due and accruing | 25 | 6 |
Total non-performing loans | 3,655 | 1,756 |
Other Commercial Loans [Member] | Current [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 126,920 | 134,813 |
Other Commercial Loans [Member] | Total Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 3,931 | 1,355 |
Other Commercial Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 345 | 670 |
Other Commercial Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,715 | 366 |
Other Commercial Loans [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 1,871 | 319 |
Other Agricultural Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 26,247 | 30,673 |
90 days or greater past due and accruing | 0 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
Financing receivable nonaccrual status | 411 | 492 |
Nonaccrual With a related allowance | 0 | 0 |
Nonaccrual Without a related allowance | 411 | 492 |
90 days or greater past due and accruing | 0 | 0 |
Total non-performing loans | 411 | 492 |
Other Agricultural Loans [Member] | Current [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 25,478 | 30,203 |
Other Agricultural Loans [Member] | Total Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 769 | 470 |
Other Agricultural Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 432 | 108 |
Other Agricultural Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 146 | 362 |
Other Agricultural Loans [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 191 | 0 |
State and Political Subdivision Loans [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 56,005 | 57,174 |
90 days or greater past due and accruing | 0 | 0 |
Financing receivables on nonaccrual status [Abstract] | ||
90 days or greater past due and accruing | 0 | 0 |
State and Political Subdivision Loans [Member] | Current [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 56,005 | 57,174 |
State and Political Subdivision Loans [Member] | Total Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 0 | 0 |
State and Political Subdivision Loans [Member] | 30 to 59 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 0 | 0 |
State and Political Subdivision Loans [Member] | 60 to 89 Days Past Due [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | 0 | 0 |
State and Political Subdivision Loans [Member] | 90 Days Or Greater [Member] | ||
Recorded investment of past due [Abstract] | ||
Total past due | $ 0 | $ 0 |
Loans, Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | $ 14,949 | $ 12,187 |
Real Estate [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 10,037 | 9,244 |
Business Assets [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 4,041 | 2,242 |
None [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 871 | 701 |
Real Estate Loans [Member] | Mortgages [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 2,927 | 2,961 |
Real Estate Loans [Member] | Mortgages [Member] | Real Estate [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 2,927 | 2,961 |
Real Estate Loans [Member] | Mortgages [Member] | Business Assets [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Real Estate Loans [Member] | Home Equity [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 119 | 121 |
Real Estate Loans [Member] | Home Equity [Member] | Real Estate [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 119 | 121 |
Real Estate Loans [Member] | Home Equity [Member] | Business Assets [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Real Estate Loans [Member] | Commercial [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 2,524 | 1,135 |
Real Estate Loans [Member] | Commercial [Member] | Real Estate [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 2,524 | 1,135 |
Real Estate Loans [Member] | Commercial [Member] | Business Assets [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Real Estate Loans [Member] | Agricultural [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 2,519 | 2,670 |
Real Estate Loans [Member] | Agricultural [Member] | Real Estate [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 2,519 | 2,670 |
Real Estate Loans [Member] | Agricultural [Member] | Business Assets [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Real Estate Loans [Member] | Construction [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 1,948 | 2,357 |
Real Estate Loans [Member] | Construction [Member] | Real Estate [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 1,948 | 2,357 |
Real Estate Loans [Member] | Construction [Member] | Business Assets [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Consumer [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 871 | 701 |
Consumer [Member] | Real Estate [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Consumer [Member] | Business Assets [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Consumer [Member] | None [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 871 | 701 |
Other Commercial Loans [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 3,630 | 1,750 |
Other Commercial Loans [Member] | Real Estate [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Other Commercial Loans [Member] | Business Assets [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 3,630 | 1,750 |
Other Agricultural Loans [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 411 | 492 |
Other Agricultural Loans [Member] | Real Estate [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Other Agricultural Loans [Member] | Business Assets [Member] | ||
Amortized Cost Basis of Collateral-Dependent Nonaccrual Loans [Abstract] | ||
Financing Receivable, Nonaccrual | $ 411 | $ 492 |
Loans, Modifications to Borrowers Experiencing Financial Difficulty (Details) |
6 Months Ended |
---|---|
Jun. 30, 2024
Loan
| |
Loans [Abstract] | |
Accruing modified loans to borrowers experiencing financial difficulty, Number of loans | 0 |
Loans, Foreclosed Assets Held for Sale (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Foreclosed assets held for sale [Abstract] | ||
Foreclosed assets held for sale | $ 2,690 | $ 474 |
Consumer Residential Mortgages [Member] | ||
Foreclosed assets held for sale [Abstract] | ||
Foreclosed assets held for sale | 131 | |
Formal foreclosure proceedings on potential foreclosure assets | $ 521 |
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|||
Amortized intangible assets [Abstract] | |||||||
Gross carrying value | [1] | $ 7,214 | $ 7,214 | $ 7,170 | |||
Accumulated amortization | [1] | (3,970) | (3,970) | (3,520) | |||
Net carrying value | [1] | 3,244 | 3,244 | 3,650 | |||
Unamortized intangible assets [Abstract] | |||||||
Goodwill | [1] | 85,758 | 85,758 | 85,758 | |||
Actual and Estimated Future Amortization Expense [Abstract] | |||||||
Amortization expense | 221 | $ 106 | 450 | $ 210 | |||
Estimated Amortization Expense [Abstract] | |||||||
Remaining 2024 | 405 | 405 | |||||
2025 | 713 | 713 | |||||
2026 | 579 | 579 | |||||
2027 | 466 | 466 | |||||
2028 | 364 | 364 | |||||
Thereafter | 717 | 717 | |||||
Net carrying value | [1] | 3,244 | 3,244 | 3,650 | |||
Mortgage Servicing Rights (MSRs) [Member] | |||||||
Amortized intangible assets [Abstract] | |||||||
Gross carrying value | [1] | 2,501 | 2,501 | 2,457 | |||
Accumulated amortization | [1] | (1,656) | (1,656) | (1,502) | |||
Net carrying value | [1] | 845 | 845 | 955 | |||
Actual and Estimated Future Amortization Expense [Abstract] | |||||||
Amortization expense | 74 | 75 | 154 | 148 | |||
Estimated Amortization Expense [Abstract] | |||||||
Remaining 2024 | 137 | 137 | |||||
2025 | 235 | 235 | |||||
2026 | 184 | 184 | |||||
2027 | 127 | 127 | |||||
2028 | 80 | 80 | |||||
Thereafter | 82 | 82 | |||||
Net carrying value | [1] | 845 | 845 | 955 | |||
Core Deposit Intangibles [Member] | |||||||
Amortized intangible assets [Abstract] | |||||||
Gross carrying value | [1] | 4,713 | 4,713 | 4,713 | |||
Accumulated amortization | [1] | (2,314) | (2,314) | (2,018) | |||
Net carrying value | [1] | 2,399 | 2,399 | 2,695 | |||
Actual and Estimated Future Amortization Expense [Abstract] | |||||||
Amortization expense | 147 | $ 31 | 296 | $ 62 | |||
Estimated Amortization Expense [Abstract] | |||||||
Remaining 2024 | 268 | 268 | |||||
2025 | 478 | 478 | |||||
2026 | 395 | 395 | |||||
2027 | 339 | 339 | |||||
2028 | 284 | 284 | |||||
Thereafter | 635 | 635 | |||||
Net carrying value | [1] | $ 2,399 | $ 2,399 | $ 2,695 | |||
|
Employee Benefit Plans, Noncontributory Defined Benefit Pension Plan (Details) - Pension Plan [Member] - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $ 84 | $ 77 | $ 165 | $ 155 |
Interest cost | 106 | 110 | 211 | 220 |
Expected return on plan assets | (195) | (197) | (395) | (394) |
Net amortization and deferral | 14 | 7 | 16 | 14 |
Net periodic benefit cost | 9 | $ (3) | (3) | $ (5) |
Expected employer contribution to pension plan | $ 0 | $ 0 |
Employee Benefit Plans, Restricted Stock Plan (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Deferred Compensation Arrangements [Abstract] | ||||
Number of shares authorized (in shares) | 150,000 | 150,000 | ||
Number of shares available for grant (in shares) | 106,633 | 106,633 | ||
Unvested Shares [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 6,651 | 6,707 | ||
Granted (in shares) | 5,930 | 5,930 | ||
Vested (in shares) | (2,361) | (2,417) | ||
Outstanding, end of period (in shares) | 10,220 | 10,220 | ||
Weighted Average Market Price [Roll Forward] | ||||
Outstanding, beginning of period (in dollars per share) | $ 72.04 | $ 71.94 | ||
Granted (in dollars per share) | 43.15 | 43.15 | ||
Vested (in dollars per share) | (69.75) | (69.52) | ||
Outstanding, end of period (in dollars per share) | $ 55.81 | $ 55.81 | ||
Additional General Disclosures [Abstract] | ||||
Share-based compensation expense | $ 57 | $ 51 | $ 122 | $ 116 |
Compensation cost related to nonvested awards that has not yet been recognized | $ 571 | $ 571 | ||
Period over which compensation cost is expected to be recognized | 3 years |
Accumulated Other Comprehensive Loss, By Component (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance | $ 282,674 | $ 213,238 | $ 279,666 | $ 200,147 | ||
Other comprehensive income (loss) before reclassifications (net of tax) | 1,174 | (3,848) | (33) | 2,885 | ||
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | (486) | (370) | (988) | (724) | ||
Other comprehensive income (loss), net of tax | 688 | (4,218) | (1,021) | 2,161 | ||
Balance | 286,470 | 263,228 | 286,470 | 263,228 | ||
Accumulated Other Comprehensive (Loss) Income [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance | (26,620) | (26,762) | (24,911) | (33,141) | ||
Other comprehensive income (loss), net of tax | 688 | (4,218) | (1,021) | 2,161 | ||
Balance | (25,932) | (30,980) | (25,932) | (30,980) | ||
Unrealized Gain (Loss) on Available for Sale Securities [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance | [1] | (30,069) | (30,422) | (28,238) | (37,514) | |
Other comprehensive income (loss) before reclassifications (net of tax) | [1] | 911 | (4,736) | (920) | 2,356 | |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | [1] | 0 | 39 | 0 | 39 | |
Other comprehensive income (loss), net of tax | [1] | 911 | (4,697) | (920) | 2,395 | |
Balance | [1] | (29,158) | (35,119) | (29,158) | (35,119) | |
Defined Benefit Pension Items [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance | [1] | (970) | (1,050) | (972) | (1,056) | |
Other comprehensive income (loss) before reclassifications (net of tax) | [1] | 0 | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | [1] | 11 | 5 | 13 | 11 | |
Other comprehensive income (loss), net of tax | [1] | 11 | 5 | 13 | 11 | |
Balance | [1] | (959) | (1,045) | (959) | (1,045) | |
Unrealized Loss on Interest Rate Swap [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance | [1] | 4,419 | 4,710 | 4,299 | 5,429 | |
Other comprehensive income (loss) before reclassifications (net of tax) | [1] | 263 | 888 | 887 | 529 | |
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) | [1] | (497) | (414) | (1,001) | (774) | |
Other comprehensive income (loss), net of tax | [1] | (234) | 474 | (114) | (245) | |
Balance | [1] | $ 4,185 | $ 5,184 | $ 4,185 | $ 5,184 | |
|
Accumulated Other Comprehensive Loss, Reclassification (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|||
AOCI Attributable to Parent [Abstract] | ||||||
Available for sale securities losses, net | $ (33) | $ (343) | ||||
Interest expense | $ (16,602) | $ (8,889) | (33,577) | (15,916) | ||
Provision for income taxes | (1,113) | 1,188 | (2,590) | (421) | ||
NET INCOME (LOSS) | 5,275 | (4,144) | 12,299 | 2,723 | ||
Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member] | ||||||
AOCI Attributable to Parent [Abstract] | ||||||
NET INCOME (LOSS) | [1] | 486 | 370 | 988 | 724 | |
Unrealized Gains and Losses on Available for Sale Securities [Member] | Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member] | ||||||
AOCI Attributable to Parent [Abstract] | ||||||
Available for sale securities losses, net | [1] | 0 | (51) | 0 | (51) | |
Provision for income taxes | [1] | 0 | 12 | 0 | 12 | |
NET INCOME (LOSS) | [1] | 0 | (39) | 0 | (39) | |
Defined Benefit Pension Items [Member] | Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member] | ||||||
AOCI Attributable to Parent [Abstract] | ||||||
Other expenses | [1] | (14) | (7) | (16) | (14) | |
Provision for income taxes | [1] | 3 | 2 | 3 | 3 | |
NET INCOME (LOSS) | [1] | (11) | (5) | (13) | (11) | |
Unrealized Gain (Loss) on Interest Rate Swap [Member] | Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member] | ||||||
AOCI Attributable to Parent [Abstract] | ||||||
Interest expense | [1] | 630 | 524 | 1,268 | 980 | |
Provision for income taxes | [1] | (133) | (110) | (267) | (206) | |
NET INCOME (LOSS) | [1] | $ 497 | $ 414 | $ 1,001 | $ 774 | |
|
Fair Value Measurements, Measured on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Other Assets [Abstract] | ||
Derivative instruments | $ 13,111 | $ 13,687 |
Liabilities [Abstract] | ||
Derivative instruments | (7,319) | (7,922) |
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Collateral-Dependent Loans, estimated selling cost | 148 | 396 |
Recurring [Member] | ||
Assets [Abstract] | ||
Equity securities | 1,570 | 1,938 |
Available for sale securities [Abstract] | ||
U.S. Agency securities | 55,833 | 60,771 |
U.S. Treasury securities | 130,073 | 143,288 |
Obligations of state and political subdivisions | 96,707 | 101,787 |
Corporate obligations | 12,450 | 12,403 |
Mortgage-backed securities in government sponsored entities | 107,598 | 99,352 |
Loans held for sale | 14,227 | 9,379 |
Other Assets [Abstract] | ||
Derivative instruments | 13,111 | 13,687 |
Liabilities [Abstract] | ||
Derivative instruments | (7,319) | (7,922) |
Recurring [Member] | Level I [Member] | ||
Assets [Abstract] | ||
Equity securities | 1,570 | 1,938 |
Available for sale securities [Abstract] | ||
U.S. Agency securities | 0 | 0 |
U.S. Treasury securities | 130,073 | 143,288 |
Obligations of state and political subdivisions | 0 | 0 |
Corporate obligations | 0 | 0 |
Mortgage-backed securities in government sponsored entities | 0 | 0 |
Loans held for sale | 0 | 0 |
Other Assets [Abstract] | ||
Derivative instruments | 0 | 0 |
Liabilities [Abstract] | ||
Derivative instruments | 0 | 0 |
Recurring [Member] | Level II [Member] | ||
Assets [Abstract] | ||
Equity securities | 0 | 0 |
Available for sale securities [Abstract] | ||
U.S. Agency securities | 55,833 | 60,771 |
U.S. Treasury securities | 0 | 0 |
Obligations of state and political subdivisions | 96,707 | 101,787 |
Corporate obligations | 12,450 | 12,403 |
Mortgage-backed securities in government sponsored entities | 107,598 | 99,352 |
Loans held for sale | 14,227 | 9,379 |
Other Assets [Abstract] | ||
Derivative instruments | 12,617 | 13,363 |
Liabilities [Abstract] | ||
Derivative instruments | (7,319) | (7,922) |
Recurring [Member] | Level III [Member] | ||
Assets [Abstract] | ||
Equity securities | 0 | 0 |
Available for sale securities [Abstract] | ||
U.S. Agency securities | 0 | 0 |
U.S. Treasury securities | 0 | 0 |
Obligations of state and political subdivisions | 0 | 0 |
Corporate obligations | 0 | 0 |
Mortgage-backed securities in government sponsored entities | 0 | 0 |
Loans held for sale | 0 | 0 |
Other Assets [Abstract] | ||
Derivative instruments | 494 | 324 |
Liabilities [Abstract] | ||
Derivative instruments | 0 | 0 |
Nonrecurring [Member] | ||
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Collateral-dependent loans | 1,742 | 3,885 |
Other real estate owned | 2,690 | 97 |
Nonrecurring [Member] | Level I [Member] | ||
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Collateral-dependent loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Level II [Member] | ||
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Collateral-dependent loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Level III [Member] | ||
Fair value assets and liabilities measured on non-recurring basis [Abstract] | ||
Collateral-dependent loans | 1,742 | 3,885 |
Other real estate owned | $ 2,690 | $ 97 |
Fair Value Measurements, Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - IRLC Assets [Member] - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance | $ 566 | $ 657 | $ 324 |
Total unrealized losses: Included in other comprehensive loss | 0 | 0 | 0 |
Total losses included in earnings and held at reporting date | (72) | (128) | 170 |
Purchases, sales and settlements | 0 | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 | 0 |
Ending Balance | 494 | 529 | 494 |
Change in unrealized (losses) for the period included in earnings for assets held | $ (72) | $ (128) | $ 170 |
Fair Value Measurements, Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
---|---|---|
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Net derivative asset | $ 13,111 | $ 13,687 |
Net derivative liability | 7,319 | 7,922 |
IRLC Assets [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Net derivative asset | 494 | 324 |
Fair Value, Inputs, Level 3 [Member] | IRLC Assets [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Net derivative asset | 494 | 324 |
Net derivative liability | $ 494 | $ 324 |
Fair Value, Inputs, Level 3 [Member] | IRLC Assets [Member] | Valuation Technique, Discounted Cash Flow [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Derivative Asset, Measurement Input | 0.77 | 0.6363 |
Fair Value, Inputs, Level 3 [Member] | IRLC Assets [Member] | Valuation Technique, Discounted Cash Flow [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Derivative Asset, Measurement Input | 0.9966 | 0.9424 |
Fair Value, Inputs, Level 3 [Member] | IRLC Assets [Member] | Valuation Technique, Discounted Cash Flow [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Derivative Asset, Measurement Input | 0.8906 | 0.8543 |
Fair Value Measurements, Quantitative Information (Details) - Appraised Collateral Values [Member] $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
|
Collateral-Dependent Loans [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Collateral-dependent loans | $ 1,742 | $ 3,885 |
Collateral-Dependent Loans [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Holding period | 0 months | 3 months |
Collateral-Dependent Loans [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Holding period | 12 months | 12 months |
Collateral-Dependent Loans [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Holding period | 7 months 12 days | 6 months 19 days |
Collateral-Dependent Loans [Member] | Discount for Time Since Appraisal [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Collateral-dependent loans, Measurement input | 0 | 0 |
Collateral-Dependent Loans [Member] | Discount for Time Since Appraisal [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Collateral-dependent loans, Measurement input | 1 | 1 |
Collateral-Dependent Loans [Member] | Discount for Time Since Appraisal [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Collateral-dependent loans, Measurement input | 0.526 | 0.2932 |
Collateral-Dependent Loans [Member] | Selling Costs [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Collateral-dependent loans, Measurement input | 0.08 | 0.08 |
Collateral-Dependent Loans [Member] | Selling Costs [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Collateral-dependent loans, Measurement input | 0.10 | 0.12 |
Collateral-Dependent Loans [Member] | Selling Costs [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Collateral-dependent loans, Measurement input | 0.0849 | 0.102 |
Other Real Estate Owned [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Collateral-dependent loans | $ 2,690 | $ 97 |
Other Real Estate Owned [Member] | Discount for Time Since Appraisal [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Other real estate owned, Measurement input | 0.32 | |
Other Real Estate Owned [Member] | Discount for Time Since Appraisal [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Other real estate owned, Measurement input | 0.048 | |
Other Real Estate Owned [Member] | Discount for Time Since Appraisal [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Other real estate owned, Measurement input | 0.318 | |
Other Real Estate Owned [Member] | Discount for Time Since Appraisal [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Other real estate owned, Measurement input | 0.2993 | 0.32 |
Fair Value Measurements, By Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Financial assets [Abstract] | ||
Interest bearing time deposits with other banks | $ 3,820 | $ 4,070 |
Level I [Member] | Recurring [Member] | ||
Financial assets [Abstract] | ||
Interest bearing time deposits with other banks | 0 | 0 |
Net loans | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 1,788,429 | 1,902,007 |
Borrowed funds | 0 | 0 |
Level II [Member] | Recurring [Member] | ||
Financial assets [Abstract] | ||
Interest bearing time deposits with other banks | 0 | 0 |
Net loans | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Borrowed funds | 0 | 0 |
Level III [Member] | Recurring [Member] | ||
Financial assets [Abstract] | ||
Interest bearing time deposits with other banks | 3,820 | 4,070 |
Net loans | 2,146,574 | 2,126,237 |
Financial liabilities [Abstract] | ||
Deposits | 478,185 | 413,367 |
Borrowed funds | 318,729 | 313,217 |
Carrying Amount [Member] | Recurring [Member] | ||
Financial assets [Abstract] | ||
Interest bearing time deposits with other banks | 3,820 | 4,070 |
Net loans | 2,232,919 | 2,227,683 |
Financial liabilities [Abstract] | ||
Deposits | 2,273,095 | 2,321,481 |
Borrowed funds | 334,829 | 322,036 |
Fair Value [Member] | Recurring [Member] | ||
Financial assets [Abstract] | ||
Interest bearing time deposits with other banks | 3,820 | 4,070 |
Net loans | 2,146,574 | 2,126,237 |
Financial liabilities [Abstract] | ||
Deposits | 2,266,614 | 2,315,374 |
Borrowed funds | $ 318,729 | $ 313,217 |
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