|
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
For the quarterly period ended
|
|
|
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
For the transition period from to
|
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.)
|
(Address of Principal Executive Offices) |
(Zip Code) |
(
(Registrant’s Telephone Number, including Area Code) |
Large accelerated filer ☐
|
Accelerated filer ☐
|
|
Smaller reporting company
|
Emerging growth company
|
Title of each class
|
Trading symbol(s)
|
Name of each exchange on which registered
|
|
|
|
Page
|
||
PART I.
|
3 | |
Item 1.
|
3 | |
3 |
||
4 | ||
5 | ||
6 | ||
8
|
||
9
|
||
Item 2.
|
35
|
|
Item 4.
|
46
|
|
PART II.
|
47
|
|
Item 1.
|
47
|
|
Item 1A.
|
47
|
|
Item 2.
|
49
|
|
Item 5.
|
49
|
|
Item 6.
|
50
|
|
51
|
(Dollars in thousands, except share data)
|
June 30,
2024
|
December 31,
2023
|
||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Time deposits in other financial institutions
|
|
|
||||||
Cash and cash equivalents
|
|
|
||||||
Equity securities, at fair value (Note 2)
|
|
|
||||||
Securities available for sale, at fair value (Note 2)
|
|
|
||||||
Securities held to maturity, at amortized cost net of credit losses (Note 2)
|
|
|
||||||
Federal Home Loan Bank stock
|
|
|
||||||
Federal Reserve Bank stock
|
|
|
||||||
Loans held for sale
|
|
|
||||||
Loans to other financial institutions (Note 3)
|
|
|
||||||
Core loans (Note 3)
|
|
|
||||||
Total loans held for investment (Note 3)
|
|
|
||||||
Allowance for credit losses (Note 3)
|
(
|
)
|
(
|
)
|
||||
Loans, net
|
|
|
||||||
Premises and equipment, net
|
|
|
||||||
Other real estate owned, net
|
|
|
||||||
Cash value of life insurance policies
|
|
|
||||||
Goodwill
|
|
|
||||||
Core deposit intangible
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities
|
||||||||
Deposits – noninterest-bearing
|
$
|
|
$
|
|
||||
Deposits – interest-bearing
|
|
|
||||||
Brokered deposits
|
|
|
||||||
Total deposits
|
|
|
||||||
Borrowings
|
|
|
||||||
Subordinated debentures
|
|
|
||||||
Other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Shareholders’ Equity
|
||||||||
Preferred stock; shares authorized:
|
|
|
||||||
Common stock and paid-in capital,
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss, net
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
(Dollars in thousands, except share data)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Interest income
|
||||||||||||||||
Loans, including fees
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities:
|
||||||||||||||||
Taxable
|
|
|
|
|
||||||||||||
Tax exempt
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total interest income
|
|
|
|
|
||||||||||||
Interest expense
|
||||||||||||||||
Deposits
|
|
|
|
|
||||||||||||
Advances from Federal Home Loan Bank
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total interest expense
|
|
|
|
|
||||||||||||
Net interest income
|
|
|
|
|
||||||||||||
Provision for (reversal of) credit losses on loans
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Provision for (reversal of) credit losses on unfunded commitments
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Net Provision for (reversal of) credit losses expense
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Net interest income after provision
|
|
|
|
|
||||||||||||
Noninterest income
|
||||||||||||||||
Customer service charges
|
|
|
|
|
||||||||||||
Insurance and investment commissions
|
|
|
|
|
||||||||||||
Gains on sales of loans
|
|
|
|
|
||||||||||||
Net gains (losses) on sales of securities
|
|
|
|
|
||||||||||||
Net gains on sales and write downs of other assets
|
|
|
|
|
||||||||||||
Earnings on life insurance policies
|
|
|
|
|
||||||||||||
Trust income
|
|
|
|
|
||||||||||||
Change in market value of equity securities
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Other
|
|
|
|
|
||||||||||||
Total noninterest income
|
|
|
|
|
||||||||||||
Noninterest expense
|
||||||||||||||||
Salaries and benefits
|
|
|
|
|
||||||||||||
Occupancy and equipment
|
|
|
|
|
||||||||||||
Data processing
|
|
|
|
|
||||||||||||
Professional fees
|
|
|
|
|
||||||||||||
Supplies and postage
|
|
|
|
|
||||||||||||
Advertising and promotional
|
|
|
|
|
||||||||||||
Intangible amortization
|
|
|
|
|
||||||||||||
FDIC insurance
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total noninterest expense
|
|
|
|
|
||||||||||||
Income before income tax
|
|
|
|
|
||||||||||||
Income tax expense
|
|
|
|
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Basic earnings per share (Note 4)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted earnings per share (Note 4)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Dividends declared per share
|
$
|
|
$
|
|
$
|
|
$
|
|
(Dollars in thousands) |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other comprehensive income:
|
||||||||||||||||
Change in net unrealized gain (loss) on available-for-sale securities
|
|
(
|
)
|
(
|
)
|
|
||||||||||
Income tax benefit (expense)
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Less: reclassification adjustment for net (gain) loss included in net income
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
|
|
|
|
||||||||||||
Less: reclassification adjustment for net (gain) loss for fair value hedge
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Less: net unrealized (gains) losses on securities transferred from available-for-sale to held-to-maturity
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
|
|
|
|
||||||||||||
Unrealized gain (loss) on available-for-sale securities, net of tax
|
|
|
|
|
||||||||||||
Reclassification of unrealized gain (loss) upon transfer of securities from available-for-sale to held-to-maturity
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
|
|
|
|
||||||||||||
Amortization of net unrealized (gains) losses on securities transferred from available-for-sale to held-to-maturity
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Unrealized loss on held to maturity securities, net of tax
|
|
|
|
|
||||||||||||
Change in net unrealized gain (loss) on cash flow hedge
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Less: reclassification adjustment for net (gain) loss on cash flow hedge
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
|
|
|
|
||||||||||||
Less: amortization of net unrealized (gains) losses included in net income
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Unrealized gain (loss) on cash flow hedge instruments, net of tax
|
|
|
|
|
||||||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
|
$
|
|
$
|
|
$
|
|
(Dollars in thousands, except per share data)
|
Number of
Shares
|
Common
Stock and
Paid in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income/(Loss),
Net
|
Total
|
|||||||||||||||
Balance, January 1, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
|
|
||||||||||||||||||
Other comprehensive income (loss)
|
|
|
||||||||||||||||||
Shares issued
|
|
|
|
|||||||||||||||||
Effect of employee stock purchases
|
|
|
||||||||||||||||||
Stock-based compensation expense
|
|
|
||||||||||||||||||
Cash dividends declared ($
|
(
|
)
|
(
|
)
|
||||||||||||||||
Balance, June 30, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Balance, January 1, 2024
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
|
|
||||||||||||||||||
Other comprehensive income (loss)
|
|
|
||||||||||||||||||
Shares issued
|
|
|
|
|||||||||||||||||
Effect of employee stock purchases
|
|
|
||||||||||||||||||
Stock options exercised and issued (1)
|
|
|
||||||||||||||||||
Stock-based compensation expense
|
|
|
||||||||||||||||||
Cash dividends declared ($
|
(
|
)
|
(
|
)
|
||||||||||||||||
Balance, June 30, 2024
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(1) | The amount shown represents the number of shares issued in net exercise transactions where shares were surrendered in payment of taxes and/or payment of all or part of the exercise price.
|
(Dollars in thousands, except per share data)
|
Number of
Shares
|
Common
Stock and
Paid in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income/(Loss),
Net
|
Total
|
|||||||||||||||
Balance, April 1, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
|
|
||||||||||||||||||
Other comprehensive income (loss)
|
|
|
||||||||||||||||||
Shares issued
|
|
|
|
|||||||||||||||||
Effect of employee stock purchases
|
|
|
||||||||||||||||||
Stock-based compensation expense
|
|
|
||||||||||||||||||
Cash dividends declared ($
|
(
|
)
|
(
|
)
|
||||||||||||||||
Balance, June 30, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Balance, April 1, 2024
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
|
|
||||||||||||||||||
Other comprehensive income (loss)
|
|
|
||||||||||||||||||
Shares issued
|
|
|
|
|||||||||||||||||
Effect of employee stock purchases
|
|
|
||||||||||||||||||
Stock-based compensation expense
|
|
|
||||||||||||||||||
Cash dividends declared ($
|
(
|
)
|
(
|
)
|
||||||||||||||||
Balance, June 30, 2024
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(1) |
The amount shown represents the number of shares issued in net exercise transactions where shares were surrendered in payment of taxes and/or payment of all or part of the exercise price.
|
|
Six Months Ended
June 30,
|
|||||||
(Dollars in thousands)
|
2024
|
2023
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||
(Reversal of) provision for credit losses
|
|
(
|
)
|
|||||
Depreciation
|
|
|
||||||
Amortization
|
|
|
||||||
Compensation expense on employee and director stock purchases, stock options, and restricted stock units
|
|
|
||||||
Net change in market value of equity securities
|
|
|
||||||
Gains on sales of loans
|
(
|
)
|
(
|
)
|
||||
Loans originated for sale
|
(
|
)
|
(
|
)
|
||||
Proceeds from loan sales
|
|
|
||||||
Earnings on bank-owned life insurance
|
(
|
)
|
(
|
)
|
||||
Earnings on death benefit from bank-owned life insurance
|
(
|
)
|
|
|||||
Deferred federal income tax (benefit)/expense
|
|
|
||||||
Net change in:
|
||||||||
Other assets
|
|
|
||||||
Other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Sales of equity securities
|
|
|
||||||
Maturities, prepayments and calls of securities available for sale
|
|
|
||||||
Maturities, prepayments and calls of securities held to maturity
|
|
|
||||||
Purchases of securities available for sale
|
(
|
)
|
(
|
)
|
||||
Purchases of equity securities
|
(
|
)
|
(
|
)
|
||||
Purchases of securities held to maturity
|
(
|
)
|
(
|
)
|
||||
Purchase of Federal Home Loan Bank stock
|
(
|
)
|
(
|
)
|
||||
Loan originations and payments, net
|
(
|
)
|
(
|
)
|
||||
Proceeds from bank owned life insurance death benefits claim
|
|
|
||||||
Additions to premises and equipment
|
(
|
)
|
(
|
)
|
||||
Payments for derivative contracts settlements
|
|
(
|
)
|
|||||
Net cash provided by (used in) investing activities
|
|
(
|
)
|
|||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
|
|
(
|
)
|
|||||
Net change in short term borrowings
|
|
|
||||||
Issuance of common stock
|
|
|
||||||
Share based compensation withholding obligation
|
(
|
)
|
|
|||||
Cash dividends
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
|
|
||||||
Net change in cash and cash equivalents
|
|
|
||||||
Beginning cash and cash equivalents
|
|
|
||||||
Ending cash and cash equivalents
|
$
|
|
$
|
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
|
$
|
|
||||
Cash paid for income taxes
|
|
|
||||||
Loans transferred to other real estate owned |
June 30, 2024
|
||||||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Equity securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
December 31, 2023
|
||||||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Equity securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
June 30, 2024
|
||||||||||||||||
(Dollars in thousands)
Available for Sale:
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
U.S. Treasury notes and bonds
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
State and municipal
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed
|
|
|
(
|
)
|
|
|||||||||||
Corporate
|
|
|
(
|
)
|
|
|||||||||||
Asset-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
(Dollars in thousands)
|
||||||||||||||||
Held to Maturity:
|
||||||||||||||||
U.S. Government and federal agency
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
State and municipal
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed
|
|
|
(
|
)
|
|
|||||||||||
Corporate
|
|
|
(
|
)
|
|
|||||||||||
Asset-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
December 31, 2023
|
||||||||||||||||
(Dollars in thousands)
Available for Sale:
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
U.S. Treasury notes and bonds
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
State and municipal
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed
|
|
|
(
|
)
|
|
|||||||||||
Corporate
|
|
|
(
|
)
|
|
|||||||||||
Asset-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
(Dollars in thousands)
|
||||||||||||||||
Held to Maturity:
|
||||||||||||||||
U.S. Government and federal agency
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
State and municipal
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed
|
|
|
(
|
)
|
|
|||||||||||
Corporate
|
|
|
(
|
)
|
|
|||||||||||
Asset-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
June 30, 2024
|
||||||||||||||||||||||||
Less than 12 months
|
More than 12 months
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
(Dollars in thousands)
Available for Sale:
|
||||||||||||||||||||||||
U.S. Treasury notes and bonds
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
State and municipal
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed
|
|
|
|
|
|
|
||||||||||||||||||
Corporate
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Total temporarily impaired
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2023
|
||||||||||||||||||||||||
Less than 12 months
|
More than 12 months
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
Available for Sale:
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||||||||
U.S. Treasury notes and bonds
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
State and municipal
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed
|
|
|
|
|
|
|
||||||||||||||||||
Corporate
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Total temporarily impaired
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2024
|
||||||||||||||||||||||||
Less than 12 months
|
More than 12 months
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
Held to Maturity:
|
Fair
Value
|
Unrealized Losses
|
Fair
Value
|
Unrealized Losses
|
Fair
Value
|
Unrealized Losses
|
||||||||||||||||||
U.S. Government and federal agency
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
State and municipal
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed
|
|
|
|
|
|
|
||||||||||||||||||
Corporate
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Total temporarily impaired
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2023
|
||||||||||||||||||||||||
Less than 12 months
|
More than 12 months
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
Held to Maturity:
|
Fair
Value |
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||||||||
U.S. Government and federal agency
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
State and municipal
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed
|
|
|
|
|
|
|
||||||||||||||||||
Corporate
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Total temporarily impaired
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Available for Sale Securities maturing within:
|
||||||||||||||||||||
(Dollars in thousands)
|
Less than
1 Year
|
1 Year -
5 Years
|
5 Years -
10 Years
|
More than
10 Years
|
Fair Value
at June 30,
2024
|
|||||||||||||||
U.S. Treasury notes and bonds
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
State and municipal
|
|
|
|
|
|
|||||||||||||||
Corporate
|
|
|
|
|
|
|||||||||||||||
Asset-backed securities
|
|
|
|
|
|
|||||||||||||||
Total debt securities
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|||||||||||||||
Total Available for Sale
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Held to Maturity Securities maturing within:
|
||||||||||||||||||||
(Dollars in thousands)
|
Less than
1 Year
|
1 Year -
5 Years
|
5 Years -
10 Years
|
More than
10 Years
|
Amortized Cost
at June 30,
2024
|
|||||||||||||||
U.S. Government and federal agency
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
State and municipal
|
|
|
|
|
|
|||||||||||||||
Corporate
|
|
|
|
|
|
|||||||||||||||
Asset-backed securities
|
|
|
|
|
|
|||||||||||||||
Total debt securities
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|||||||||||||||
Total Held to Maturity
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net gains and (losses) recognized during the period
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Less: Net gains and (losses) recognized during the period on securities sold
|
|
|
|
|
||||||||||||
Unrealized gains and (losses) recognized during the reporting period on securities still held at the reporting date
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
June 30, 2024
|
December 31, 2023
|
|||||||||||||||||||
(Dollars in thousands)
|
Balance
|
%
|
Balance
|
%
|
Percent Increase (Decrease)
|
|||||||||||||||
Agricultural
|
$
|
|
|
%
|
$
|
|
|
%
|
(
|
)%
|
||||||||||
Commercial and Industrial
|
|
|
%
|
|
|
%
|
(
|
)%
|
||||||||||||
Commercial Real Estate
|
|
|
%
|
|
|
%
|
|
%
|
||||||||||||
Consumer
|
|
|
%
|
|
|
%
|
(
|
)%
|
||||||||||||
Construction Real Estate
|
|
|
%
|
|
|
%
|
(
|
)%
|
||||||||||||
Residential Real Estate
|
|
|
%
|
|
|
%
|
|
%
|
||||||||||||
Loans to Other Financial Institutions
|
|
|
%
|
|
|
%
|
|
%
|
||||||||||||
Gross Loans
|
$
|
|
$
|
|
||||||||||||||||
Allowance for credit losses
|
|
|
%
|
|
|
%
|
||||||||||||||
Net loans
|
$
|
|
$
|
|
(Dollars in thousands)
|
Agricultural
|
Commercial
And
Industrial |
Consumer
|
Commercial
Real Estate
|
Construction
Real Estate
|
Residential
Real Estate
|
Loans to Other
Financial
Institutions
|
Total
|
||||||||||||||||||||||||
Allowance for Credit Losses Three Months Ended June 30, 2024
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Charge-offs
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Provision
|
|
(
|
)
|
|
|
|
|
|
|
|||||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Allowance for Credit Losses Six Months Ended June 30, 2024
|
||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Charge-offs
|
|
(
|
)
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Provision
|
|
(
|
)
|
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Individually evaluated for credit loss
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Collectively evaluated for credit loss
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||
June 30, 2024
|
||||||||||||||||||||||||||||||||
Individually evaluated for credit loss
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Collectively evaluated for credit loss
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(Dollars in thousands)
|
Agricultural
|
Commercial and Industrial
|
Consumer
|
Commercial
Real Estate
|
Construction
Real Estate
|
Residential
Real Estate
|
Loans to Other
Financial
Institutions
|
Total
|
||||||||||||||||||||||||
Allowance for Credit Losses December 31, 2023
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Collectively evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||
December 31, 2023
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Collectively evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|||||||||||||||||
Acquired with deteriorated credit quality
|
|
|
|
|
|
|
-
|
|||||||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(Dollars in thousands)
|
Agricultural
|
Commercial and
Industrial
|
Consumer
|
Commercial
Real Estate
|
Construction
Real Estate
|
Residential
Real Estate
|
Loans to Other
Financial Institution
|
Unallocated
|
Total
|
|||||||||||||||||||||||||||
Allowance for Credit Losses Three Months Ended June 30, 2023
|
||||||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Charge-offs
|
|
|
(
|
)
|
|
|
|
|
|
(
|
)
|
|||||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Provision
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Allowance for Credit Losses Six Months Ended June 30, 2023
|
||||||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Cumulative effect of change in accounting principle
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
|
|||||||||||||||||||
Charge-offs
|
|
|
(
|
)
|
|
|
|
|
|
(
|
)
|
|||||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Provision
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
-
|
$
|
|
$ |
|||||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Collectively evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Commercial:
|
2024
|
2023
|
2022
|
2021
|
2020
|
Prior
|
Term
Loans
Total
|
Revolving
Loans
|
Grand
Total
|
|||||||||||||||||||||||||||
Agricultural
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Loss
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Commercial and Industrial
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Loss
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Commercial Real Estate
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Loss
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total Commercial Loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Retail:
|
2024
|
2023
|
2022
|
2021
|
2020
|
Prior
|
Term
Loans
Total
|
Revolving
Loans
|
Grand
Total
|
|||||||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Nonaccrual
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Construction real estate
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Nonaccrual
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Residential real estate
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Nonaccrual
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Loans to Other Financial Institutions
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Nonaccrual
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total Retail Loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Commercial:
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Term
Loans
Total
|
Revolving
Loans
|
Grand
Total |
|||||||||||||||||||||||||||
Agricultural
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Loss
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Commercial and Industrial
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Loss
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Commercial Real Estate
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Loss
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total Commercial Loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Retail:
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Term
Loans
Total
|
Revolving
Loans
|
Grand
Total
|
|||||||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Nonaccrual
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Construction real estate
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Nonaccrual
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Residential real estate
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Nonaccrual
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Loans to Other Financial Institutions
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Nonaccrual
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Current year-to-date gross write-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total Retail Loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1)
|
|
For the period ended:
|
June 30, 2024
|
|||||||
Term Extension
|
||||||||
(Dollars in thousands)
|
Amortized
Cost Basis
|
% of Total
Class of
Financing
Receivable
|
||||||
Residential real estate
|
|
|
%
|
|||||
Total
|
$
|
|
For the period ended:
|
December 31, 2023
|
|||||||
Term Extension
|
||||||||
(Dollars in thousands)
|
Amortized
Cost Basis
|
% of Total
Class of
Financing Receivable
|
||||||
Commercial and industrial
|
$
|
|
|
%
|
||||
Residential real estate
|
|
|
%
|
|||||
Total
|
$
|
|
For the period ended:
|
June 30, 2024
|
Term Extension
|
|
Residential real estate
|
Provided with new five year payment plan based on bankruptcy
|
For the period ended:
|
December 31, 2023
|
Term Extension
|
|
Commercial and industrial
|
Termed out line of credit & termed out draw note
|
Residential real estate
|
Provided with new twelve month payment plan to catch up on past due balance.
|
For the period ended:
|
|
June 30, 2024
|
||
(Dollars in thousands)
|
|
Term extension
|
||
Commercial and industrial
|
|
|||
Residential real estate
|
|
|||
Total
|
$
|
|
For the period ended:
|
December 31, 2023
|
|||
(Dollars in thousands)
|
Term extension
|
|||
Commercial and industrial
|
|
|||
Residential real estate
|
|
|||
Total
|
$
|
|
For the period ended:
|
June 30, 2024
|
|||||||||||||||
(Dollars in thousands)
|
Current
|
30-89 days
|
Greater than 90 days
|
Total
|
||||||||||||
Commercial and industrial
|
$
|
|
|
|
$
|
|
||||||||||
Residential real estate
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
For the period ended:
|
December 31, 2023
|
|||||||||||||||
(Dollars in thousands)
|
Current
|
30-89 days
|
Greater than 90 days
|
Total
|
||||||||||||
Commercial and industrial
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Residential real estate
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
As of June 30, 2024
|
||||||||||||
(Dollars in thousands)
|
Nonaccrual loans with
no ACL
|
Total nonaccrual
loans
|
Interest income
recognized year to date on
nonaccrual loans
|
|||||||||
Consumer
|
$
|
|
$
|
|
$
|
|
||||||
Commercial real estate
|
|
|
|
|||||||||
Residential real estate
|
|
|
|
|||||||||
Total nonaccrual loans
|
$
|
|
$
|
|
$
|
|
As of June 30, 2023
|
||||||||||||
(Dollars in thousands)
|
Nonaccrual loans with
no ACL
|
Total nonaccrual
loans
|
Interest income
recognized year to date on
nonaccrual loans |
|||||||||
Residential real estate
|
$
|
|
$
|
|
$
|
|
||||||
Total nonaccrual loans
|
$
|
|
$
|
|
$
|
|
As of December 31, 2023
|
||||||||||||
(Dollars in thousands)
|
Nonaccrual loans with
no ACL
|
Total nonaccrual
loans
|
Interest income
recognized year to date on
nonaccrual loans
|
|||||||||
Commercial and industrial
|
$
|
|
$
|
|
$
|
|
||||||
Residential real estate
|
|
|
|
|||||||||
Total nonaccrual loans
|
$
|
|
$
|
|
$
|
|
(Dollars in thousands)
|
Loans
Past Due
30 to 59
Days (1)
|
Loans
Past Due
60 to 89
Days (1)
|
Loans
Past Due
Greater
Than 90
Days (1)
|
Total (1)
|
Loans Not
Past Due |
Total
Loans
|
Loans
90 Days
Past
Due and
Accruing
|
|||||||||||||||||||||
June 30, 2024
|
||||||||||||||||||||||||||||
Agricultural
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Construction real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Residential real estate
|
|
|
|
|
|
|
||||||||||||||||||||||
Loans to Other Financial Institutions
|
|
|
|
|
|
|
||||||||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2023
|
||||||||||||||||||||||||||||
Agricultural
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Construction real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Residential real estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Loans to Other Financial Institutions
|
|
|
|
|
|
|
||||||||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
(Dollars in thousands, except share data)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Basic
|
||||||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average common shares outstanding
|
||||||||||||||||
Basic earnings per common shares
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted
|
||||||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average common shares outstanding
|
|
|
|
|
||||||||||||
Plus dilutive stock options and restricted stock units
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding and potentially dilutive shares
|
|
|
|
|
||||||||||||
Diluted earnings per common share
|
$
|
|
$
|
|
$
|
|
$
|
|
(Dollars in thousands)
|
Carrying
Amount
|
Estimated
Fair Value
|
Quoted Prices
In Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||||||
June 30, 2024
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Equity securities at fair value
|
|
|
|
|
|
|||||||||||||||
Securities available for sale
|
|
|
|
|
|
|||||||||||||||
Securities held to maturity
|
|
|
|
|
|
|||||||||||||||
Federal Home Loan Bank and Federal
|
||||||||||||||||||||
Reserve Bank stock
|
|
|
|
|
|
|||||||||||||||
Loans held for sale
|
|
|
|
|
|
|||||||||||||||
Loans, net
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivable
|
|
|
|
|
|
|||||||||||||||
Interest rate lock commitments
|
|
|
|
|
|
|||||||||||||||
Interest rate derivative contracts
|
|
|
|
|
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Noninterest-bearing deposits
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits
|
|
|
|
|
|
|||||||||||||||
Brokered deposits
|
|
|
|
|
|
|||||||||||||||
Borrowings
|
|
|
|
|
|
|||||||||||||||
Subordinated debentures
|
|
|
|
|
|
|||||||||||||||
Accrued interest payable
|
|
|
|
|
|
|||||||||||||||
Interest rate derivative contracts
|
|
|
|
|
|
|||||||||||||||
December 31, 2023
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Equity securities at fair value
|
|
|
|
|
|
|||||||||||||||
Securities available for sale
|
|
|
|
|
|
|||||||||||||||
Securities held to maturity
|
|
|
|
|
|
|||||||||||||||
Federal Home Loan Bank and Federal
|
||||||||||||||||||||
Reserve Bank stock
|
|
|
|
|
|
|||||||||||||||
Loans held for sale
|
|
|
|
|
|
|||||||||||||||
Loans, net
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivable
|
|
|
|
|
|
|||||||||||||||
Interest rate lock commitments
|
|
|
|
|
|
|||||||||||||||
Interest rate derivative contracts
|
|
|
|
|
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Noninterest-bearing deposits
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits
|
|
|
|
|
|
|||||||||||||||
Brokered deposits
|
|
|
|
|
|
|||||||||||||||
Borrowings
|
|
|
|
|
|
|||||||||||||||
Subordinated debentures
|
|
|
|
|
|
|||||||||||||||
Accrued interest payable
|
|
|
|
|
|
|||||||||||||||
Interest rate derivative contracts
|
|
|
|
|
|
(Dollars in thousands)
|
Quoted
Prices
In Active
Markets
for Identical
Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Balance
at Date Indicated
|
||||||||||||
Equity Securities Held at Fair Value - June 30, 2024
|
||||||||||||||||
Equity securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Investment Securities, Available for Sale - June 30, 2024
|
||||||||||||||||
U.S. Treasury notes and bonds
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and municipal
|
|
|
|
|
||||||||||||
Mortgage-backed
|
|
|
|
|
||||||||||||
Corporate
|
|
|
|
|
||||||||||||
Asset-backed securities
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Derivative Instruments - June 30, 2024
|
||||||||||||||||
Interest rate derivative contracts - assets
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest rate derivative contracts - liabilities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Equity Securities Held at Fair Value - December 31, 2023
|
||||||||||||||||
Equity securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Investment Securities, Available for Sale - December 31, 2023
|
||||||||||||||||
U. S. Treasury notes and bonds
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and municipal
|
|
|
|
|
||||||||||||
Mortgage-backed
|
|
|
|
|
||||||||||||
Corporate
|
|
|
|
|
||||||||||||
Asset-backed securities
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Derivative Instruments - December 31, 2023
|
||||||||||||||||
Interest rate derivative contracts - assets
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest rate derivative contracts - liabilities
|
$
|
|
$
|
|
$
|
|
$
|
|
Six Months Ended
June 30,
|
||||||||
(Dollars in thousands)
|
2024
|
2023
|
||||||
Equity Securities Held at Fair Value
|
||||||||
Balance, January 1
|
$
|
|
$
|
|
||||
Total realized and unrealized gains included in noninterest income
|
|
|
||||||
Net purchases, sales, calls, and maturities
|
|
|
||||||
Net transfers into Level 3
|
|
|
||||||
Balance, June 30,
|
$
|
|
$
|
|
||||
Amount of total losses for the period included in earning attributable to the change in
unrealized gains (losses) relating to assets and liabilities still held at June 30,
|
$
|
|
$
|
|
(Dollars in thousands)
|
Balances at
Dates
Indicated
|
Quoted Prices
In Active Markets
for Identical
Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
Collateral Dependent Loans
|
||||||||||||||||
June 30, 2024
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
December 31, 2023
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other Real Estate
|
||||||||||||||||
June 30, 2024
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
December 31, 2023
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(Dollars in thousands)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
Service charges and fees on deposit accounts
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interchange income
|
|
|
|
|
||||||||||||
Investment commission income
|
|
|
|
|
||||||||||||
Trust fee income
|
|
|
|
|
||||||||||||
Other charges and fees for customer services
|
|
|
|
|
||||||||||||
Noninterest income from contracts with customers within the scope of ASC 606
|
|
|
|
|
||||||||||||
Noninterest income within the scope of other GAAP topics
|
|
|
|
|
||||||||||||
Total noninterest income
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2024
|
December 31, 2023
|
|||||||||
(Dollars in thousands)
|
Balance Sheet
Location
|
Fair Value
|
Balance Sheet
Location
|
Fair Value
|
||||||
Derivatives designated as hedging instruments
|
||||||||||
Interest rate contracts
|
|
$
|
|
|
$
|
|
||||
Interest rate contracts
|
|
$
|
|
|
$
|
|
Location and Amount of Gain or
(Loss)
Recognized in Income on Fair Value
and Cash Flow Hedging
Relationships
|
Location and Amount of Gain or
(Loss)
Recognized in Income on Fair Value
and Cash Flow Hedging
Relationships
|
|||||||||||||||||||||||||||||||
Three months
ended June 30,
2024
|
Three months
ended June 30,
2023
|
Six months
ended June 30,
2024
|
Six months
ended June 30,
2023
|
|||||||||||||||||||||||||||||
(Dollars in thousands)
|
Interest Income
|
Interest Expense
|
Interest Income
|
Interest Expense
|
Interest Income
|
Interest Expense
|
Interest Income
|
Interest Expense
|
||||||||||||||||||||||||
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are
recorded
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||||
|
||||||||||||||||||||||||||||||||
Gain or (loss) on fair value hedging relationships:
|
||||||||||||||||||||||||||||||||
Interest rate contracts:
|
||||||||||||||||||||||||||||||||
Hedged items
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Derivatives designated as hedging instruments
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Gain or (loss) on cash flow hedging relationships:
|
||||||||||||||||||||||||||||||||
Interest rate contracts:
|
||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(Dollars in thousands)
Line Item in the Statement of
Financial Position in which the
Hedged Item is included
|
Amortized cost of the
Hedged Assets/(Liabilities)
|
June 30, 2024
Cumulative amount of Fair
Value Hedging Adjustment
included in the carrying
amount of the Hedged
Assets/(Liabilities)
|
||||||
|
$
|
|
$
|
(
|
)
|
(Dollars in thousands)
|
June 30, 2024
|
December 31, 2023
|
||||||
Maturity of July 2025 with fixed interest rate of
|
$
|
|
$
|
|
||||
Maturity of January 2026 with fixed interest rate of
|
|
|
||||||
Maturity of December 2026 with fixed interest rate of
|
|
|
||||||
Total advances outstanding at period end
|
$
|
|
$
|
|
(Dollars in thousands)
|
June 30, 2024
|
December 31, 2023
|
||||||
Maturity of May 2024 with fixed interest rate of
|
$
|
|
$
|
|
||||
Maturity of December 2024 with fixed interest rate of
|
|
|
||||||
Maturity of January 2025 with fixed interest rate of
|
|
|||||||
Total BTFP outstanding at period end
|
$
|
|
$
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||||
2024
|
2023
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Average
|
Average
|
||||||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Loans (1)(3)(4)(5)
|
$
|
1,435,966
|
$
|
21,981
|
6.16
|
%
|
$
|
1,218,860
|
$
|
15,986
|
5.26
|
%
|
||||||||||||
Taxable securities (2)
|
696,023
|
5,471
|
3.16
|
756,239
|
5,378
|
2.85
|
||||||||||||||||||
Nontaxable securities (1)
|
290,258
|
1,785
|
2.47
|
296,952
|
1,758
|
2.38
|
||||||||||||||||||
Other
|
80,280
|
1,092
|
5.47
|
41,075
|
571
|
5.57
|
||||||||||||||||||
Interest-earning assets
|
2,502,527
|
30,329
|
4.87
|
2,313,126
|
23,693
|
4.11
|
||||||||||||||||||
Noninterest-earning assets
|
145,189
|
109,441
|
||||||||||||||||||||||
Total assets
|
$
|
2,647,716
|
$
|
2,422,567
|
||||||||||||||||||||
Liabilities and Shareholders’ Equity:
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
$
|
876,344
|
$
|
2,921
|
1.34
|
%
|
$
|
815,179
|
$
|
1,905
|
0.94
|
%
|
||||||||||||
Savings deposits
|
333,056
|
649
|
0.78
|
372,651
|
345
|
0.37
|
||||||||||||||||||
Certificates of deposit
|
391,620
|
4,331
|
4.45
|
285,160
|
2,225
|
3.13
|
||||||||||||||||||
Brokered deposit
|
34,218
|
424
|
4.98
|
49,679
|
581
|
4.69
|
||||||||||||||||||
Borrowings
|
210,000
|
2,480
|
4.75
|
144,231
|
1,717
|
4.78
|
||||||||||||||||||
Subordinated debentures
|
35,596
|
412
|
4.65
|
35,352
|
407
|
4.62
|
||||||||||||||||||
Other
|
26,426
|
356
|
5.41
|
3,763
|
45
|
4.81
|
||||||||||||||||||
Interest-bearing liabilities
|
1,907,260
|
11,573
|
2.44
|
1,706,015
|
7,225
|
1.70
|
||||||||||||||||||
Demand deposits
|
516,308
|
534,106
|
||||||||||||||||||||||
Other noninterest-bearing liabilities
|
13,406
|
10,534
|
||||||||||||||||||||||
Total liabilities
|
2,436,974
|
2,250,655
|
||||||||||||||||||||||
Shareholders’ equity
|
210,742
|
171,912
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
2,647,716
|
$
|
2,422,567
|
||||||||||||||||||||
Net interest income (tax-equivalent basis) (Non-GAAP) (1)
|
$
|
18,756
|
$
|
16,468
|
||||||||||||||||||||
Net interest margin (tax-equivalent basis) (Non-GAAP) (1)
|
3.01
|
%
|
2.86
|
%
|
||||||||||||||||||||
Reconciliation to Reported Net Interest Income
|
||||||||||||||||||||||||
Net interest income (tax-equivalent basis) (Non-GAAP) (1)
|
$
|
18,756
|
$
|
16,468
|
||||||||||||||||||||
Adjustment for taxable equivalent interest
|
(385
|
)
|
(377
|
)
|
||||||||||||||||||||
Net interest income (GAAP)
|
$
|
18,371
|
$
|
16,091
|
||||||||||||||||||||
Net interest margin (GAAP)
|
2.95
|
%
|
2.79
|
%
|
(1) |
Adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets. The adjustment uses an incremental tax rate of 21%. The presentation of these measures on a
tax-equivalent basis is not in accordance with GAAP, but is customary in the banking industry. These non-GAAP measures ensure comparability with respect to both taxable and tax-exempt loans and securities.
|
(2) |
Taxable securities include dividend income from Federal Home Loan Bank and Federal Reserve Bank stock.
|
(3) |
Loans include both loans to other financial institutions and loans held for sale.
|
(4) |
Non-accruing loan balances are included in the balances of average loans. Non-accruing loan average balances were $1.9 million and $1.6 million in the second quarter of 2024 and 2023, respectively.
|
(5) |
Interest on loans included net origination fees and accretion income related to acquired loans. Accretion income related to acquired loans was $279,000 and $444,000 in the second quarter of 2024 and 2023,
respectively
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
2024
|
2023
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Average
|
Average
|
||||||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Loans (1)(3)(4)(5)
|
$
|
1,424,266
|
$
|
42,788
|
6.04
|
%
|
$
|
1,210,611
|
$
|
30,876
|
5.10
|
%
|
||||||||||||
Taxable securities (2)
|
703,266
|
10,819
|
3.09
|
756,967
|
10,291
|
2.72
|
||||||||||||||||||
Nontaxable securities (1)
|
290,944
|
3,573
|
2.47
|
296,969
|
3,575
|
2.41
|
||||||||||||||||||
Other
|
72,172
|
1,978
|
5.51
|
30,325
|
748
|
4.93
|
||||||||||||||||||
Interest-earning assets
|
2,490,648
|
59,158
|
4.78
|
2,294,872
|
45,490
|
3.96
|
||||||||||||||||||
Noninterest-earning assets
|
143,734
|
112,160
|
||||||||||||||||||||||
Total assets
|
$
|
2,634,382
|
$
|
2,407,032
|
||||||||||||||||||||
Liabilities and Shareholders’ Equity:
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
$
|
879,858
|
$
|
6,498
|
1.49
|
%
|
$
|
845,140
|
$
|
3,477
|
0.82
|
%
|
||||||||||||
Savings deposits
|
335,776
|
1,290
|
0.77
|
389,742
|
618
|
0.32
|
||||||||||||||||||
Certificates of deposit
|
384,630
|
8,446
|
4.42
|
266,611
|
3,504
|
2.63
|
||||||||||||||||||
Brokered deposit
|
34,463
|
868
|
5.06
|
31,322
|
733
|
4.68
|
||||||||||||||||||
Borrowings
|
212,418
|
5,004
|
4.74
|
103,900
|
2,425
|
4.67
|
||||||||||||||||||
Subordinated debentures
|
35,566
|
824
|
4.66
|
35,321
|
809
|
4.58
|
||||||||||||||||||
Other
|
22,413
|
601
|
5.40
|
1,888
|
45
|
4.78
|
||||||||||||||||||
Interest-bearing liabilities
|
1,905,124
|
23,531
|
2.48
|
1,673,924
|
11,611
|
1.39
|
||||||||||||||||||
Demand deposits
|
511,241
|
550,281
|
||||||||||||||||||||||
Other noninterest-bearing liabilities
|
12,743
|
12,721
|
||||||||||||||||||||||
Total liabilities
|
2,429,108
|
2,236,926
|
||||||||||||||||||||||
Shareholders’ equity
|
205,274
|
170,106
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
2,634,382
|
$
|
2,407,032
|
||||||||||||||||||||
Net interest income (tax-equivalent basis) (Non-GAAP) (1)
|
$
|
35,627
|
$
|
33,879
|
||||||||||||||||||||
Net interest margin (tax-equivalent basis) (Non-GAAP) (1)
|
2.88
|
%
|
2.95
|
%
|
||||||||||||||||||||
Reconciliation to Reported Net Interest Income
|
||||||||||||||||||||||||
Net interest income (tax-equivalent basis) (Non-GAAP) (1)
|
$
|
35,627
|
$
|
33,879
|
||||||||||||||||||||
Adjustment for taxable equivalent interest
|
(782
|
)
|
(776
|
)
|
||||||||||||||||||||
Net interest income (GAAP)
|
$
|
34,845
|
$
|
33,103
|
||||||||||||||||||||
Net interest margin (GAAP)
|
2.81
|
%
|
2.88
|
%
|
(1) |
Adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets. The adjustment uses an incremental tax rate of 21%. The presentation of these measures on a
tax-equivalent basis is not in accordance with GAAP, but is customary in the banking industry. These non-GAAP measures ensure comparability with respect to both taxable and tax-exempt loans and securities.
|
(2) |
Taxable securities include dividend income from Federal Home Loan Bank and Federal Reserve Bank stock.
|
(3) |
Loans include both loans to other financial institutions and loans held for sale.
|
(4) |
Non-accruing loan balances are included in the balances of average loans. Non-accruing loan average balances were $1.8 million and $1.5 million in the first six months of 2024 and 2023, respectively.
|
(5) |
Interest on loans included net origination fees and accretion income related to acquired loans. Accretion income related to acquired loans was $669,000 and $916,000 in the first six months of 2024 and
2023, respectively
|
Three Months Ended June 30,
|
||||||||||||
(Dollars in thousands)
|
2024 Over 2023
|
|||||||||||
Total
|
Volume
|
Rate
|
||||||||||
Increase (decrease) in interest income (1)
|
||||||||||||
Loans (2)
|
$
|
5,995
|
$
|
3,063
|
$
|
2,932
|
||||||
Taxable securities
|
93
|
(1,947
|
)
|
2,040
|
||||||||
Nontaxable securities (2)
|
27
|
(192
|
)
|
219
|
||||||||
Other
|
521
|
592
|
(71
|
)
|
||||||||
Net change in interest income
|
6,636
|
1,516
|
5,120
|
|||||||||
Increase (decrease) in interest expense (1)
|
||||||||||||
Interest-bearing demand deposits
|
1,016
|
152
|
864
|
|||||||||
Savings deposits
|
304
|
(241
|
)
|
545
|
||||||||
Certificates of deposit
|
2,106
|
990
|
1,116
|
|||||||||
Brokered deposit
|
(157
|
)
|
(374
|
)
|
217
|
|||||||
Borrowings
|
763
|
837
|
(74
|
)
|
||||||||
Subordinated debentures
|
5
|
2
|
3
|
|||||||||
Other
|
311
|
304
|
7
|
|||||||||
Net change in interest expense
|
4,348
|
1,670
|
2,678
|
|||||||||
Net change in tax-equivalent net interest income
|
$
|
2,288
|
$
|
(154
|
)
|
$
|
2,442
|
Six Months Ended June 30,
|
||||||||||||
(Dollars in thousands)
|
2024 Over 2023
|
|||||||||||
Total
|
Volume
|
Rate
|
||||||||||
Increase (decrease) in interest income (1)
|
||||||||||||
Loans (2)
|
$
|
11,912
|
$
|
6,679
|
$
|
5,233
|
||||||
Taxable securities
|
528
|
(1,517
|
)
|
2,045
|
||||||||
Nontaxable securities (2)
|
(2
|
)
|
(143
|
)
|
141
|
|||||||
Other
|
1,230
|
1,156
|
74
|
|||||||||
Net change in interest income
|
13,668
|
6,175
|
7,493
|
|||||||||
Increase (decrease) in interest expense (1)
|
||||||||||||
Interest-bearing demand deposits
|
3,021
|
192
|
2,829
|
|||||||||
Savings deposits
|
672
|
(227
|
)
|
899
|
||||||||
Certificates of deposit
|
4,942
|
2,297
|
2,645
|
|||||||||
Brokered deposit
|
135
|
84
|
51
|
|||||||||
Borrowings
|
2,579
|
2,552
|
27
|
|||||||||
Subordinated debentures
|
15
|
5
|
10
|
|||||||||
Other
|
556
|
551
|
4
|
|||||||||
Net change in interest expense
|
11,920
|
5,454
|
6,465
|
|||||||||
Net change in tax-equivalent net interest income
|
$
|
1,748
|
$
|
721
|
$
|
1,028
|
(1) |
The volume variance is computed as the change in volume (average balance) multiplied by the previous year’s interest rate. The rate variance is computed as the change in interest rate multiplied by the
previous year’s volume (average balance). The change in interest due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.
|
(2) |
Interest on nontaxable investment securities and loans has been adjusted to a fully tax-equivalent basis using an incremental tax rate of 21%.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Cost of deposits
|
1.56
|
%
|
0.98
|
%
|
1.59
|
%
|
0.80
|
%
|
||||||||
Cost of funds
|
1.92
|
%
|
1.29
|
%
|
1.95
|
%
|
1.04
|
%
|
(Dollars in thousands)
|
2024
|
2023
|
||||||||||||||
Charge-offs
|
Recoveries
|
Charge-offs
|
Recoveries
|
|||||||||||||
Agricultural
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Commercial and industrial
|
1
|
11
|
-
|
29
|
||||||||||||
Consumer
|
451
|
226
|
271
|
129
|
||||||||||||
Commercial real estate
|
-
|
-
|
-
|
13
|
||||||||||||
Construction real estate
|
-
|
-
|
-
|
-
|
||||||||||||
Residential real estate
|
-
|
7
|
-
|
5
|
||||||||||||
$
|
452
|
$
|
244
|
$
|
271
|
$
|
176
|
June 30, 2024
|
December 31, 2023
|
|||||||||||||||||||
(Dollars in thousands)
|
Call Report Codes
|
Balance
|
%
|
Balance
|
%
|
|||||||||||||||
Construction & Development Loans
|
1A2
|
$
|
93,678
|
6.5
|
%
|
$
|
112,877
|
8.0
|
%
|
|||||||||||
1-4 Family Loans
|
1A1, 1C1, 1C2A, 1C2B
|
370,542
|
25.8
|
%
|
347,036
|
24.6
|
%
|
|||||||||||||
Multifamily Loans
|
1D
|
|
57,893
|
4.0
|
%
|
56,563
|
4.0
|
%
|
||||||||||||
Owner Occupied CRE Loans
|
1E1
|
296,818
|
20.6
|
%
|
281,515
|
20.0
|
%
|
|||||||||||||
Non-Owner Occupied CRE Loans
|
1E2
|
318,655
|
22.2
|
%
|
298,265
|
21.1
|
%
|
|||||||||||||
Commercial & Industrial Loans
|
2A2, 4A
|
|
216,899
|
15.1
|
%
|
219,849
|
15.6
|
%
|
||||||||||||
Farm & Agriculture Loans
|
1B, 3
|
42,579
|
3.0
|
%
|
46,515
|
3.3
|
%
|
|||||||||||||
Consumer & Other Loans
|
6B, 6C, 6D, 8, 9b2,10B
|
40,463
|
2.8
|
%
|
48,033
|
3.4
|
%
|
|||||||||||||
|
||||||||||||||||||||
Total Loans
|
|
$
|
1,437,527
|
$
|
1,410,653
|
(Dollars in thousands)
|
June 30,
|
December 31,
|
||||||
2024
|
2023
|
|||||||
Loans accounted for on a nonaccrual basis
|
$
|
2,086
|
$
|
1,723
|
||||
Accruing loans which are contractually past due 90 days or more as to principal or interest payments
|
-
|
-
|
||||||
Loans defined as “troubled loan modifications” which are not included above
|
46
|
189
|
||||||
Total
|
$
|
2,132
|
$
|
1,912
|
Minimum Required
|
||||||||||||||||||||||||
to be Well
|
||||||||||||||||||||||||
Minimum Required
|
Capitalized Under
|
|||||||||||||||||||||||
for Capital
|
Prompt Corrective
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Actual
|
Adequacy Purposes
|
Action Regulations
|
|||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
June 30, 2024
|
||||||||||||||||||||||||
ChoiceOne Financial Services Inc.
|
||||||||||||||||||||||||
Total capital (to risk weighted assets)
|
$
|
244,728
|
13.5
|
%
|
$
|
145,342
|
8.0
|
%
|
N/A
|
N/A
|
||||||||||||||
Common equity Tier 1 capital (to risk weighted assets)
|
194,426
|
10.7
|
81,755
|
4.5
|
N/A
|
N/A
|
||||||||||||||||||
Tier 1 capital (to risk weighted assets)
|
198,926
|
10.9
|
109,007
|
6.0
|
N/A
|
N/A
|
||||||||||||||||||
Tier 1 capital (to average assets)
|
198,926
|
7.7
|
103,594
|
4.0
|
N/A
|
N/A
|
||||||||||||||||||
|
||||||||||||||||||||||||
ChoiceOne Bank
|
||||||||||||||||||||||||
Total capital (to risk weighted assets)
|
$
|
240,366
|
13.2
|
%
|
$
|
145,175
|
8.0
|
%
|
$
|
181,469
|
10.0
|
%
|
||||||||||||
Common equity Tier 1 capital (to risk weighted assets)
|
226,752
|
12.5
|
81,661
|
4.5
|
117,955
|
6.5
|
||||||||||||||||||
Tier 1 capital (to risk weighted assets)
|
226,752
|
12.5
|
108,881
|
6.0
|
145,175
|
8.0
|
||||||||||||||||||
Tier 1 capital (to average assets)
|
226,752
|
8.8
|
103,507
|
4.0
|
129,384
|
5.0
|
||||||||||||||||||
|
||||||||||||||||||||||||
December 31, 2023
|
||||||||||||||||||||||||
ChoiceOne Financial Services Inc.
|
||||||||||||||||||||||||
Total capital (to risk weighted assets)
|
$
|
233,840
|
13.0
|
%
|
$
|
144,441
|
8.0
|
%
|
N/A
|
N/A
|
||||||||||||||
Common equity Tier 1 capital (to risk weighted assets)
|
185,412
|
10.3
|
81,248
|
4.5
|
N/A
|
N/A
|
||||||||||||||||||
Tier 1 capital (to risk weighted assets)
|
189,912
|
10.5
|
108,331
|
6.0
|
N/A
|
N/A
|
||||||||||||||||||
Tier 1 capital (to average assets)
|
189,912
|
7.5
|
101,337
|
4.0
|
N/A
|
N/A
|
||||||||||||||||||
|
||||||||||||||||||||||||
ChoiceOne Bank
|
||||||||||||||||||||||||
Total capital (to risk weighted assets)
|
$
|
224,095
|
12.4
|
%
|
$
|
144,274
|
8.0
|
%
|
$
|
180,342
|
10.0
|
%
|
||||||||||||
Common equity Tier 1 capital (to risk weighted assets)
|
212,283
|
11.8
|
81,154
|
4.5
|
117,223
|
6.5
|
||||||||||||||||||
Tier 1 capital (to risk weighted assets)
|
212,283
|
11.8
|
108,205
|
6.0
|
144,274
|
8.0
|
||||||||||||||||||
Tier 1 capital (to average assets)
|
212,283
|
8.4
|
101,244
|
4.0
|
126,555
|
5.0
|
• |
the continued accuracy of the representations and warranties made by the parties in the Merger Agreement;
|
• |
the approval by Fentura shareholders of the Merger Agreement and the merger;
|
• |
the approval by ChoiceOne shareholders of the amendment to our articles of incorporation to increase the number of authorized shares of ChoiceOne common stock from 15,000,000 shares to 30,000,000 shares and
the issuance of ChoiceOne common stock as merger consideration;
|
• |
the performance by each party of its respective obligations under the Merger Agreement;
|
• |
the receipt of required regulatory approvals, including the approval of the Federal Reserve and the Michigan Department of Insurance and Financial Services;
|
• |
the absence of any injunction, order, or decree restraining, enjoining or otherwise prohibiting the Fentura acquisition; and
|
• |
the absence of any material adverse change in the financial condition, business or results of operations of Fentura and The State Bank.
|
• |
the potential for unexpected costs, delays and challenges that may arise in integrating acquisitions into our existing business;
|
• |
limitations on our ability to realize the expected cost savings and synergies from an acquisition;
|
• |
challenges related to integrating acquired operations, including our ability to retain key employees and maintain relationships with significant customers and depositors;
|
• |
challenges related to the integration of businesses that operate in new geographic areas, including difficulties in identifying and gaining access to customers in new markets; and
|
• |
the discovery of previously unknown liabilities following an acquisition associated with the acquired business.
|
Exhibit
Number
|
Document
|
||
Agreement and Plan of Merger by and between ChoiceOne Financial Services, Inc. and Fentura Financial, Inc. dated July 25, 2024. Previously filed with the Commission on July 25, 2024 in ChoiceOne Financial
Services, Inc.’s Current Report on Form 8-K, Exhibit 2.1. Here incorporated by reference.
|
|||
Restated Articles of Incorporation of ChoiceOne Financial Services, Inc. Previously filed as an exhibit to ChoiceOne’s Form 10-K Annual Report for the year ended December 31, 2022. Here incorporated by
reference.
|
|||
Bylaws of ChoiceOne as currently in effect and any amendments thereto. Previously filed as an exhibit to ChoiceOne’s Form 8-K filed April 21, 2021. Here incorporated by reference.
|
|||
Advances, Pledge and Security Agreement between ChoiceOne Bank and the Federal Home Loan Bank of Indianapolis. Previously filed as an exhibit to ChoiceOne Financial Services, Inc.’s Form 10-K Annual Report
for the year ended December 31, 2013. Here incorporated by reference.
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Form of 3.25% Fixed-to-Floating Rate Subordinated Note due September 3, 2031. Previously filed as an exhibit to ChoiceOne Financial Services, Inc.’s Form 8-K filed September 7, 2021. Here incorporated by
reference.
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Form of 3.25% Fixed-to-Floating Rate Global Subordinated Note due September 3, 2031. Previously filed as an exhibit to ChoiceOne Financial Services, Inc.’s Form 8-K filed September 7, 2021. Here
incorporated by reference.
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Certification of Chief Executive Officer
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Certification of Chief Financial Officer
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Certification pursuant to 18 U.S.C. § 1350.
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101.INS
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Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
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101.SCH
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Inline XBRL Taxonomy Extension Schema Document
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101.CAL
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Inline XBRL Taxonomy Extension Calculation Linkbase Document
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101.DEF
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Inline XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB
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Inline XBRL Taxonomy Extension Label Linkbase Document
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101.PRE
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Inline XBRL Taxonomy Extension Presentation Linkbase Document
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104
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Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
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CHOICEONE FINANCIAL SERVICES, INC.
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Date: August 14, 2024
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/s/ Kelly J. Potes
|
Kelly J. Potes
Chief Executive Officer
(Principal Executive Officer)
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Date: August 14, 2024
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/s/ Adom J. Greenland
|
Adom J. Greenland
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
|
1. |
I have reviewed this quarterly report on Form 10-Q of ChoiceOne Financial Services, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash
flows of the Registrant as of, and for, the periods presented in this report;
|
4. |
The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the
end of the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in
the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5. |
The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of
the Registrant’s board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to
record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
Date: August 14, 2024
|
|
/s/ Kelly J. Potes
|
|
Kelly J. Potes
Chief Executive Officer
ChoiceOne Financial Services, Inc.
|
1. |
I have reviewed this quarterly report on Form 10-Q of ChoiceOne Financial Services, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash
flows of the Registrant as of, and for, the periods presented in this report;
|
4. |
The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the
end of the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in
the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5. |
The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of
the Registrant’s board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to
record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
Date: August 14, 2024
|
|
/s/ Adom J. Greenland
|
|
Adom J. Greenland
Chief Financial Officer and Treasurer
ChoiceOne Financial Services, Inc.
|
Date: August 14, 2024
|
/s/ Kelly J. Potes
|
|
Kelly J. Potes
Chief Executive Officer
|
||
Date: August 14, 2024
|
/s/ Adom J. Greenland
|
|
Adom J. Greenland
Chief Financial Officer and Treasurer
|
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized (in shares) | 100,000 | 100,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, outstanding (in shares) | 7,573,618 | 7,548,217 |
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Dividends declared, per share (in dollars per share) | $ 0.27 | $ 0.26 | $ 0.54 | $ 0.52 |
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Cash flows from operating activities: | ||
Net income | $ 12,220 | $ 10,846 |
Adjustments to reconcile net income to net cash from operating activities: | ||
(Reversal of) provision for credit losses | 0 | (225) |
Depreciation | 1,272 | 1,230 |
Amortization | 4,810 | 4,970 |
Compensation expense on employee and director stock purchases, stock options, and restricted stock units | 576 | 487 |
Net change in market value of equity securities | 36 | 322 |
Gains on sales of loans | (979) | (943) |
Loans originated for sale | (29,067) | (29,192) |
Proceeds from loan sales | 28,400 | 25,684 |
Earnings on bank-owned life insurance | (604) | (532) |
Earnings on death benefit from bank-owned life insurance | (196) | 0 |
Deferred federal income tax (benefit)/expense | 231 | 59 |
Net change in: | ||
Other assets | 794 | 6,601 |
Other liabilities | 13,557 | 5,856 |
Net cash provided by operating activities | 31,050 | 25,163 |
Cash flows from investing activities: | ||
Sales of equity securities | 0 | 42 |
Maturities, prepayments and calls of securities available for sale | 17,962 | 15,159 |
Maturities, prepayments and calls of securities held to maturity | 15,086 | 5,091 |
Purchases of securities available for sale | (768) | (676) |
Purchases of equity securities | (33) | (98) |
Purchases of securities held to maturity | (700) | (597) |
Purchase of Federal Home Loan Bank stock | (1) | (4,849) |
Loan originations and payments, net | (27,232) | (74,553) |
Proceeds from bank owned life insurance death benefits claim | 490 | 0 |
Additions to premises and equipment | (794) | (2,212) |
Payments for derivative contracts settlements | 0 | (4,191) |
Net cash provided by (used in) investing activities | 4,010 | (66,884) |
Cash flows from financing activities: | ||
Net change in deposits | 4,624 | (31,615) |
Net change in short term borrowings | 10,073 | 110,000 |
Issuance of common stock | 115 | 116 |
Share based compensation withholding obligation | (220) | 0 |
Cash dividends | (4,083) | (3,913) |
Net cash provided by financing activities | 10,509 | 74,588 |
Net change in cash and cash equivalents | 45,569 | 32,867 |
Beginning cash and cash equivalents | 55,433 | 43,943 |
Ending cash and cash equivalents | 101,002 | 76,810 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 24,686 | 10,269 |
Cash paid for income taxes | 2,750 | 2,900 |
Loans transferred to other real estate owned | $ 150 | $ 266 |
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies |
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”), its wholly-owned subsidiaries, ChoiceOne Bank (the
“Bank”) and 109 Technologies, LLC, and ChoiceOne Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. (the “Insurance Agency”). Intercompany transactions and balances have been eliminated in consolidation.
ChoiceOne owns all of the common securities of Community Shores Capital Trust I (the “Capital Trust”). Under U.S. generally accepted accounting
principles (“GAAP”), the Capital Trust is not consolidated because it is a variable interest entity and ChoiceOne is not the primary beneficiary.
The accompanying unaudited consolidated financial statements and notes thereto reflect all adjustments ordinary in nature which are, in the
opinion of management, necessary for a fair presentation of such financial statements. Operating results for the six months ended June 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31,
2024.
The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes
thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2023.
Use of Estimates
To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, ChoiceOne’s
management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. These estimates and assumptions are subject to many
risks and uncertainties, and actual results may differ from these estimates. Estimates associated with the allowance for credit losses and the unrealized gains and losses on securities available for sale and held to maturity are particularly
susceptible to change.
Goodwill
Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of the acquired tangible assets
and liabilities and identifiable intangible assets. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more
frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed.
Core Deposit Intangible
Core deposit intangible represents the value of the acquired customer core deposit bases and is included as an asset on the consolidated balance
sheets. The core deposit intangible has an estimated finite life, is amortized on an accelerated basis over a 120 month period and is subject to periodic impairment evaluation.
Stock Transactions
A total of 3,883 and 7,705 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $106,000 and $219,000 under the terms of the Directors’ Stock Purchase Plan in
the second quarter and first half of 2024, respectively. A total of 2,506 and 4,906 shares for a cash price of $61,000 and $117,000 were issued under the Employee Stock Purchase Plan in the second quarter and first half of 2024, respectively. ChoiceOne’s common stock
repurchase program announced in April 2021 and amended in 2022, authorizes repurchases of up to 375,388 shares, representing 5% of the total outstanding shares of common stock as of the date the program was adopted. No shares were repurchased under this program in the second quarter of 2024.
Reclassifications
Certain amounts presented in prior periods have been reclassified to conform to the current presentation.
Allowance for Credit Losses (“ACL”)
The ACL is a valuation allowance for expected credit losses. The ACL is increased by the provision for credit losses and decreased by loans
charged off less any recoveries of charged off loans. As ChoiceOne has had very limited loss experience since 2011, management elected to utilize benchmark peer loss history data to estimate historical loss rates. ChoiceOne identified an
appropriate peer group for each loan cohort which shared similar characteristics. Management estimates the ACL required based on the selected peer group loan loss experience, the nature and volume of the loan portfolio, information about specific
borrower situations and estimated collateral values, a reasonable and supportable economic forecast, and other factors. Allocations of the ACL may be made for specific loans, but the entire ACL is available for any loan that, in management’s
judgment, should be charged off. Loan losses are charged against the ACL when management believes that collection of a loan balance is not possible.
The ACL consists of general and specific components. The general component covers loans collectively evaluated for credit losses and is based on
peer historical loss experience adjusted for current and forecasted factors. Management’s adjustment for current and forecasted factors is based on trends in delinquencies, trends in charge-offs and recoveries, trends in the volume of loans,
changes in underwriting standards, trends in loan review findings, the experience and ability of lending staff, and a reasonable and supportable economic forecast described further below.
The discounted cash flow methodology is utilized for all loan pools. This methodology is supported by our CECL software provider and allows
management to calculate contractual life by factoring in all cash flows and adjusting them for behavioral and credit-related aspects.
Reasonable and supportable economic forecasts have to be incorporated in determining expected credit losses. The forecast period represents the
time frame from the current period end through the point in time that we can reasonably forecast and support entity and environmental factors that are expected to impact the performance of our loan portfolio. Ideally, the economic forecast period
would encompass the contractual terms of all loans; however, the ability to produce a forecast that is considered reasonable and supportable becomes more difficult or may not be possible in later periods. Subsequent to the end of the forecast
period, we revert to historical loan data based on an ongoing evaluation of each economic forecast in relation to then current economic conditions as well as any developing loan loss activity and resulting historical data. As of June 30, 2024, we
used a one-year reasonable and supportable economic forecast period, with a two year straight-line reversion period.
We are not required to develop and use our own economic forecast model, and we elected to utilize economic forecasts from third-party providers
that analyze and develop forecasts of the economy for the entire United States at least quarterly.
Other inputs to the calculation are also updated or reviewed quarterly. Prepayment speeds are updated on a one quarter lag based on the asset
liability model from the previous quarter. This model is performed at the loan level. Curtailment is updated quarterly within the ACL model based on our peer group average. The reversion period is reviewed by management quarterly with
consideration of the current economic climate.
We are also required to consider expected credit losses associated with loan commitments over the contractual period in which we are exposed to
credit risk on the underlying commitments unless the obligation is unconditionally cancellable by us. Any allowance for off-balance sheet credit exposures is reported as an other liability on our Consolidated Balance Sheet and is increased or
decreased via the provision for credit losses account on our Consolidated Statement of Income. The calculation includes consideration of the likelihood that funding will occur and forecasted credit losses on commitments expected to be funded over
their estimated lives. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to be funded.
Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. ChoiceOne has
determined that any loans which have been placed on non-performing status, loans with a risk rating of 6 or higher, and loans past due more than 60
days will be assessed individually for evaluation. Management’s judgment will be used to determine if the loan should be migrated back to pool on an individual basis. Individual analysis will establish a specific reserve for loans in scope.
Specific reserves on non-performing loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate or based on the present value of the expected cash flows
from that loan.
Securities
Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them
to maturity. Debt securities are classified as available for sale because they might be sold before maturity. Debt securities classified as available for sale are carried at fair value, with unrealized holding gains and losses reported separately
in the accumulated other comprehensive income or loss section of shareholders’ equity, net of tax effect. Restricted investments in Federal Reserve Bank stock and Federal Home Loan Bank stock are carried at cost. Equity securities consist of
investments in preferred stock and investments in common stock of other financial institutions. Equity securities are reported at their fair value with changes in market value reported through current earnings.
Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized using the level-yield
method without anticipating prepayments. Gains or losses on sales are recorded on the trade date based on the amortized cost of the security sold.
Securities Available for Sale (“AFS”) – For securities AFS in an unrealized loss position, management determines whether they intend to sell or if
it is more likely than not that ChoiceOne will be required to sell the security before recovery of the 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 with an allowance being established under CECL. For securities AFS with unrealized losses not meeting these criteria, management evaluates whether any decline in fair value is due to credit loss factors. In
making this assessment, management considers any changes to the rating of the security by rating agencies and adverse conditions specifically related to the issuer of the security, among other factors. If this assessment 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 the cash flows expected to be collected is less than the amortized cost
basis, a credit loss exists and an allowance for credit losses (“ACL”) is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Changes in the ACL under ASC 326-30 are recorded as provisions
for (or reversal of) credit loss expense. Losses are charged against the allowance when the collectability of a security AFS is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment that has not
been recorded through an ACL is recognized in other comprehensive income, net of income taxes. At June 30, 2024, there was no ACL related to securities AFS. Accrued interest receivable on securities AFS was excluded from the estimate of credit
losses.
Securities Held to Maturity (“HTM”) – Since the adoption of CECL, ChoiceOne measures credit losses on securities HTM on a collective basis by
major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The ACL on HTM securities is a contra asset
valuation account that is deducted from the carrying amount of securities HTM to present the net amount expected to be collected. HTM securities are charged off against the ACL when deemed uncollectible. Adjustments to the ACL are reported in
ChoiceOne’s Consolidated Statements of Income in the provision for credit losses. Accrued interest receivable on securities HTM is excluded from the estimate of credit losses. With regard to US Treasury securities, these have an explicit
government guarantee; therefore, no ACL is recorded for these securities. With regard to obligations of states and political subdivisions and other HTM securities, management considers (1) issuer bond ratings, (2) historical loss rates for given
bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. A discounted cash flow method will be used to determine the
reserve required for any credit losses on HTM securities. At June 30, 2024, the ACL related to securities HTM is insignificant.
Recent Accounting Pronouncements
Improvements to Income Tax Disclosure
ASU 2023-09 enhances transparency by requiring consistent categorization, greater disaggregation, and detailed disclosure related to income taxes paid. These changes aim to help users of
financial statements understand factors contributing to differences between effective and statutory tax rates. The disclosure is effective for annual reporting periods beginning after December 15, 2024.
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Securities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Securities, Trading, and Equity Securities, FV-NI, Cost [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities |
NOTE 2 – SECURITIES
The fair value of equity securities and the related gross unrealized gains and (losses) recognized in noninterest income were as follows:
The following tables present the amortized cost and fair value of securities available for sale and the gross unrealized gains and losses
recognized in accumulated other comprehensive income (loss) and the amortized cost and fair value of securities held to maturity and the related gross unrealized gains and losses:
Available for sale securities with unrealized losses as of June 30, 2024 and December 31, 2023, aggregated by investment category and length of
time the individual securities have been in an unrealized loss position, were as follows:
Held to maturity securities with unrealized losses as of June 30, 2024 and December 31, 2023, aggregated by investment category and length of time
the individual securities have been in an unrealized loss position, were as follows:
ChoiceOne evaluates all securities on a quarterly basis to determine if an ACL and corresponding impairment charge should be recorded.
Consideration is given to the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of ChoiceOne to retain its investment in the issuer for a period of time
sufficient to allow for any anticipated recovery in fair value of amortized cost basis. ChoiceOne believes that unrealized losses on securities were temporary in nature and were caused primarily by changes in interest rates, increased credit
spreads, and reduced market liquidity and were not caused by the credit status of the issuer. No ACL was recorded in the three and
six months ended June 30, 2024 and 2023.
At June 30, 2024 and December 31, 2023, there were 553
and 569 securities with an unrealized loss, respectively. Unrealized losses have not been recognized into income because the issuers’
bonds are of high credit quality, and management does not intend to sell prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely
principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.
The majority of unrealized losses at June 30, 2024, are related to U.S. Treasury notes and bonds, state and municipal bonds and mortgage backed
securities. The U.S. Treasury notes are guaranteed by the U.S. government and 100% of the notes are rated AA or better. State and
municipal bonds are backed by the taxing authority of the bond issuer or the revenues from the bond. On June 30, 2024, 85% of state and
municipal bonds held are rated AA or better, 11% are A rated and 4% are not rated. Of the mortgage-backed securities held on June 30, 2024, 42%
were issued by US government sponsored entities and agencies, and rated AA, 43% are AAA rated private issue and collateralized mortgage
obligation, and 15% are unrated privately issued mortgage-backed securities with structured credit enhancement and collateralized
mortgage obligation.
Presented below is a schedule of maturities of securities as of June 30, 2024. Available for sale securities are reported at fair value and held to maturity
securities are reported at amortized cost. Callable securities in the money are presumed called and matured at the callable date.
Following is information regarding unrealized gains and losses on equity securities for the three and six months ended June 30, 2024 and 2023:
|
Loans and Allowance for Credit Losses |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Credit Losses |
NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans by type as a percentage of the portfolio were as follows:
Activity in the allowance for credit losses and balances in the loan portfolio were as follows:
The provision for credit losses on loans was an expense of $272,000
in the second quarter of 2024, compared to a reversal of expense of $415,000 in the same period in the prior year. The provision
expense was deemed necessary due to the increase in reserve for collateral dependent loans and an increase in qualitative factors related to the value of underlying collateral for collateral dependent non owner occupied loans and consumer
loans.
The process to monitor the credit quality of ChoiceOne’s loan portfolio includes tracking (1) the risk ratings of business loans and (2) delinquent and
nonperforming consumer loans. Business loans are risk rated on a scale of 1 to 9. A description of the characteristics of the ratings follows:
Risk Rating 1 through 5 or pass: These loans are considered pass credits. They exhibit acceptable credit risk and demonstrate the ability to repay the loan from
normal business operations.
Risk rating 6 or special mention: Loans and other credit extensions bearing this grade are considered to be inadequately protected by the current sound worth and
debt service capacity of the borrower or of any pledged collateral. These obligations, even if apparently protected by collateral value, have well-defined weaknesses related to adverse financial, managerial, economic, market, or political
conditions that have clearly jeopardized repayment of principal and interest as originally intended. Furthermore, there is the possibility that ChoiceOne Bank will sustain some future loss if such weaknesses are not corrected. Clear loss
potential, however, does not have to exist in any individual assets classified as substandard. Loans falling into this category should have clear action plans and timelines with benchmarks to determine which direction the relationship will
move.
Risk rating 7 or substandard: Loans and other credit extensions graded “7” have all the weaknesses inherent in those graded “6”, with the added characteristic
that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values. Loans in this classification should be evaluated for non-accrual
status. All nonaccrual commercial and Retail loans must be at a minimum graded a risk code “7”.
Risk rating 8 or doubtful: Loans and other credit extensions bearing this grade have been determined to have the extreme probability of some loss, but because of
certain important and reasonably specific factors, the amount of loss cannot be determined. Such pending factors could include merger or liquidation, additional capital injection, refinancing plans, or perfection of liens on additional
collateral.
Risk rating 9 or loss: Loans in this classification are considered uncollectible and cannot be justified as a viable asset of ChoiceOne Bank. This classification
does not mean the loan has absolutely no recovery value, but that it is neither practical nor desirable to defer writing off this loan even though partial recovery may be obtained in the future.
The following table reflects the amortized cost basis of loans as of June 30, 2024 based on year of origination (dollars in thousands):
The following table reflects the amortized cost basis of loans as of December 31, 2023 based on year of origination (dollars in thousands):
The following tables present the amortized cost basis of the loans modified to borrowers experiencing financial difficulty disaggregated by class of financing
receivable and type of concession granted during the first six months of 2024 and the full year 2023.
The following table presents the financial effect by type of modification made to borrowers experiencing financial difficulty and class of financing receivable during the first six
months of 2024 and the full year 2023.
The following table presents the period-end amortized cost basis of financing receivables that had a payment default during the period and were modified in the 12 months before
default to borrowers experiencing financial difficulty.
The following table presents the period-end amortized cost basis of loans that have been modified in the past 12 months to borrowers experiencing financial
difficulty by payment status and class of financing receivable.
Nonaccrual loans by loan category were as follows:
An aging analysis of loans by loan category follows:
|
Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Notes To Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
NOTE 4 – EARNINGS PER SHARE
Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows:
There were 6,000 stock options that were
considered anti-dilutive to earnings per share for the three months ended June 30, 2024 and 4,500 stock option that were
considered anti-dilutive to earnings per share for the six months ended June 30, 2024. There were 15,000 stock options and 5,125 performance awards that were considered anti-dilutive to earnings per share for the three months ended June 30, 2023. There were 15,000 stock option that were considered anti-dilutive to earnings per share for the six months ended June 30, 2023.
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Financial Instruments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments |
NOTE 5 – FINANCIAL INSTRUMENTS
Financial instruments as of the dates indicated were as follows:
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Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
NOTE 6 – FAIR VALUE MEASUREMENTS
The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2024 and December 31,
2023, and the valuation techniques used by the Company to determine those fair values.
In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Company has the ability to
access.
Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for
similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals.
Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or
liability.
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are
categorized based on the lowest level input that is significant to the valuation. The Company’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each
asset or liability.
Disclosures concerning assets and liabilities measured at fair value are as follows:
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Securities classified as available for sale are generally reported at fair value utilizing Level 2 inputs. ChoiceOne’s external
investment advisor obtained fair value measurements from an independent pricing service that uses 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 (Level 2 inputs). The fair value measurements considered observable data that may include dealer quotes, market
spreads, cash flows and the bonds’ terms and conditions, among other things. Securities classified in Level 2 included U.S. Government and federal agency securities, state and municipal securities, mortgage-backed securities, corporate
bonds, and asset backed securities. The Company classified certain state and municipal securities and corporate bonds, and equity securities as Level 3. Based on the lack of observable market data, estimated fair values were based on the
observable data available and reasonable unobservable market data.
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis
Of the Level 3 assets that were held by the Company at June 30, 2024, the net unrealized gain as of June 30, 2024 was $265,000, compared to $202,000
as of June 30, 2023. The change in the net unrealized gain or loss is recognized in noninterest income or other comprehensive income in the consolidated balance sheets and income statements. Amounts recognized in noninterest income
relate to changes in equity securities. A total of $33,000 and $98,000 of Level 3 securities were purchased during the six months ended 2024 and 2023, respectively.
Both observable and unobservable inputs may be used to determine the fair value of positions classified as Level 3 assets and
liabilities. As a result, the unrealized gains and losses for these assets and liabilities presented in the tables above may include changes in fair value that were attributable to both observable and unobservable inputs.
The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These
assets are not normally measured at fair value, but can be subject to fair value adjustments in certain circumstances, such as impairment. Disclosures concerning assets measured at fair value on a non-recurring basis are as follows:
Assets Measured at Fair Value on a Non-recurring Basis
Collateral dependent loans classified as Level 3 are loans for which the repayment is expected to be provided substantially through the
sale or operation of the collateral when the borrower is experiencing financial difficulty. The fair value of the collateral should be adjusted for estimated costs to sell if the repayment depends on the sale of the collateral. The net
carrying amount of the loan should not exceed the fair value of the collateral (less costs to sell, if applicable).
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Revenue From Contracts With Customers |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers |
NOTE 7 – REVENUE FROM CONTRACTS WITH CUSTOMERS
ChoiceOne has a variety of sources of revenue, which include interest and fees from customers as well as revenue from non-customers.
ASC Topic 606, Revenue from Contracts with Customers, covers certain sources of revenue that are classified within noninterest income in the Consolidated Statements of Income. Sources of revenue that are included in the scope of ASC
Topic 606 include service charges and fees on deposit accounts, interchange income, investment asset management income and transaction-based revenue, and other charges and fees for customer services.
Service Charges and Fees on Deposit Accounts
Revenue includes charges and fees to provide account maintenance, overdraft services, wire transfers, funds transfer, and other
deposit-related services. Account maintenance fees such as monthly service charges are recognized over the period of time that the service is provided. Transaction fees such as wire transfer charges are recognized when the service is
provided to the customer.
Interchange Income
Revenue includes debit card interchange and network revenues. This revenue is earned on debit card transactions that are conducted
through payment networks such as MasterCard. The revenue is recorded as services are delivered and is presented net of interchange expenses.
Investment Commission Income
Revenue includes fees from the investment management advisory services and revenue is recognized when services are rendered. Revenue
also includes commissions received from the placement of brokerage transactions for purchase or sale of stocks or other investments. Commission income is recognized when the transaction has been completed.
Trust Fee Income
Revenue includes fees from the management of trust assets and from other related advisory services. Revenue is recognized when services
are rendered.
Following is noninterest income separated by revenue within the scope of ASC 606 and revenue within the scope of other GAAP topics:
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Derivative and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative and Hedging Activities | NOTE 8 –
DERIVATIVE AND HEDGING ACTIVITIES
ChoiceOne is exposed to certain risks relating to its ongoing business operations. ChoiceOne utilizes interest rate derivatives as part
of its asset liability management strategy to help manage its interest rate risk position. Derivative instruments represent contracts between parties that result in one party delivering cash to the other party based on a notional amount
and an underlying term (such as a rate, security price or price index) as specified in the contract. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract
with the underlying term. Derivatives are also implicit in certain contracts and commitments.
ChoiceOne recognizes derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose
or intent for holding the instrument. ChoiceOne records derivative assets and derivative liabilities on the balance sheet within other assets and other liabilities, respectively. Changes in the fair value of derivative financial
instruments are either recognized in income or in shareholders’ equity as a component of accumulated other comprehensive income or loss depending on whether the derivative financial instrument qualifies for hedge accounting and, if so,
whether it qualifies as a fair value hedge or cash flow hedge.
Interest rate swaps
ChoiceOne uses interest rate swaps as part of its interest rate risk management strategy to add stability to net interest income and to
manage its exposure to interest rate movements. Interest rate swaps designated as hedges involve the receipt of variable-rate amounts from a counterparty in exchange for ChoiceOne making fixed-rate payments or the receipt of fixed-rate
amounts from a counterparty in exchange for ChoiceOne making variable rate payments, over the life of the agreements without the exchange of the underlying notional amount.
In the second quarter of 2022, ChoiceOne entered into two pay-floating/receive-fixed interest rate swaps (the “Pay Floating Swap Agreements”) for a total notional amount of $200.0 million that were designated as cash flow hedges. These derivatives hedge the variable cash flows of specifically identified available-for-sale securities, cash and loans.
The Pay Floating Swap Agreements were determined to be highly effective during the periods presented and therefore no amount of ineffectiveness has been included in net income. The Pay Floating Swap Agreements pay a coupon rate equal to
SOFR while receiving a fixed coupon rate of 2.41%. In March 2023, ChoiceOne terminated all Pay Floating Swap Agreements for a
cash payment of $4.2 million. The loss was amortized into interest income over 13 months, which was the remaining period of
the swap agreements. As of April 2024, the loss was fully amortized.
In the second quarter of 2022, ChoiceOne entered into one forward starting pay-fixed/receive-floating interest rate swap (the “Pay Fixed Swap Agreement”) for a notional amount of $200.0 million that was designated as a cash flow hedge. This derivative hedges the risk of variability in cash flows attributable to forecasted payments on future deposits or
floating rate borrowings indexed to the SOFR Rate. The Pay Fixed Swap Agreement is two years forward starting with an eight-year
term set to expire in 2032. The Pay Fixed Swap Agreements will pay a fixed coupon rate of 2.75% while receiving the SOFR Rate,
which began in April 2024. Net settlements on the Pay Fixed Swap Agreement were $974,000 for the three and six months ended
June 30, 2024, which were included in interest expense.
In the fourth quarter of 2022, ChoiceOne entered into four pay-fixed/receive-floating interest rate swaps for a total notional amount of $201.0
million that were designated as fair value hedges. These derivatives hedge the risk of changes in fair value of certain available for sale securities for changes in the SOFR benchmark interest rate component of the fixed rate bonds. All four of these hedges were effective immediately on December 22, 2022. Of the total notional value, $101.9 million has a ten-year term set to expire in
2032, with the benchmark SOFR interest rate risk component of the fixed rate bonds equal to 3.390%. Of the total notional
value, $50.0 million has a nine-year
term set to expire in 2031, with the benchmark SOFR interest rate risk component of the fixed rate bonds equal to 3.4015%. The
remaining notional value of $49.1 million has a nine-year term set to expire in 2031, with the benchmark SOFR interest rate risk component of the fixed rate bond equal to 3.4030%. ChoiceOne adopted ASC2022-01, as of December 20, 2022, to use the portfolio layer method. The fair value basis adjustment associated with available-for-sale fixed rate
bonds initially results in an adjustment to AOCI. For available-for-sale securities subject to fair value hedge accounting, the changes in the fair value of the fixed rate bonds related to the hedged risk (the benchmark interest rate
component and the partial term) are then reclassed from AOCI to current earnings offsetting the fair value measurement change of the interest rate swap, which is also recorded in current earnings. Net cash settlements are received/paid
semi-annually, with the first starting in March 2023, and are included in interest income.
Net settlements on these four pay-fixed/receive-floating swaps were $989,000 and $798,000 for the three months ended June 30, 2024 and
2023, respectively, and $2.0 million and $1.4 million for the six months ended June 30, 2024 and 2023, respectively, which were included in interest income.
The table below presents the fair value of derivative financial instruments as well as the classification within the consolidated
statements of financial condition:
The table below presents the effect of fair value and cash flow hedge accounting on the consolidated statements of operations for the periods presented:
The table below presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of those items as of
the periods presented:
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Borrowings |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | NOTE 9 – Borrowings
Federal Home Loan Bank Advances
Bank Term Funding Program (“BTFP”)
Advances from the FHLB were secured by residential real estate loans with a carrying value of approximately $196.0 million at June 30, 2024 and residential real estate loans with a carrying value of approximately $191.1 million and securities with a carrying value of approximately $278.5 million at December 31, 2023. Based on this collateral, the Bank was eligible to borrow an additional $90.5 million at June 30, 2024.
Advances from the Federal Reserve Bank were secured by securities with a carrying value of approximately $510.0 million and loans with a carrying value of approximately $460.3 million at June 30, 2024 and securities with a carrying value of approximately $526.4
million and loans with a carrying value of approximately $433.2 million at December 31, 2023. Based on this collateral, the
Bank was eligible to borrow an additional $669.0 million at June 30, 2024.
In June 2021, ChoiceOne obtained a $20
million line of credit with an annual renewal. The line carries a floating rate of prime rate with a floor of 3.25% and
current rate of 8.5% at June 30, 2024. The credit agreement includes certain financial covenants, including minimum capital
ratios, asset quality ratios, and the requirements of achieving certain profitability thresholds.
ChoiceOne was in compliance with all covenants as of June 30, 2024. The line of credit balance was $0 at June 30, 2024.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events |
NOTE 10 – Subsequent Events
On July 26, 2024, ChoiceOne completed an underwritten public offering of 1,380,000 shares of its common stock at a price to the public of $25.00 per share,
including 180,000 shares of common stock sold pursuant to the underwriter’s option to purchase additional shares to cover
over-allotments, which was exercised in full. The aggregate gross proceeds of the offering were approximately $34.5 million
before deducting underwriting discounts and estimated offering expenses. The proceeds from the offering will qualify as tangible common equity and Tier 1 common equity. The Company intends to use the net proceeds of this offering for
general corporate purposes including supplementing regulatory capital ratios and in conjunction with its announced merger with Fentura Financial, Inc.
On July 25, 2024, ChoiceOne and Fentura Financial, Inc. (“Fentura”), the parent company of The State Bank, announced the signing of a definitive
merger agreement pursuant to which ChoiceOne and Fentura will merge in an all-stock transaction. The agreement was unanimously approved by the boards of directors of both companies. Under the terms of the merger agreement, each
share of Fentura common stock outstanding immediately prior to completion of the merger will be converted into the right to receive 1.35
shares of ChoiceOne common stock. Once completed, the combination will create the third largest publicly traded bank in Michigan with approximately $4.3
billion in consolidated total assets and 56 offices in Western, Central and Southeastern Michigan. The proposed
transaction is expected to close in the first quarter of 2025, subject to the satisfaction of customary closing conditions, including receipt of approval from Fentura and ChoiceOne shareholders and receipt of all necessary
regulatory approvals.
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation |
Principles of Consolidation
The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”), its wholly-owned subsidiaries, ChoiceOne Bank (the
“Bank”) and 109 Technologies, LLC, and ChoiceOne Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. (the “Insurance Agency”). Intercompany transactions and balances have been eliminated in consolidation.
ChoiceOne owns all of the common securities of Community Shores Capital Trust I (the “Capital Trust”). Under U.S. generally accepted accounting
principles (“GAAP”), the Capital Trust is not consolidated because it is a variable interest entity and ChoiceOne is not the primary beneficiary.
The accompanying unaudited consolidated financial statements and notes thereto reflect all adjustments ordinary in nature which are, in the
opinion of management, necessary for a fair presentation of such financial statements. Operating results for the six months ended June 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31,
2024.
The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes
thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2023.
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Use of Estimates |
Use of Estimates
To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, ChoiceOne’s
management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. These estimates and assumptions are subject to many
risks and uncertainties, and actual results may differ from these estimates. Estimates associated with the allowance for credit losses and the unrealized gains and losses on securities available for sale and held to maturity are particularly
susceptible to change.
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Goodwill |
Goodwill
Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of the acquired tangible assets
and liabilities and identifiable intangible assets. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more
frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed.
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Core Deposit Intangible |
Core Deposit Intangible
Core deposit intangible represents the value of the acquired customer core deposit bases and is included as an asset on the consolidated balance
sheets. The core deposit intangible has an estimated finite life, is amortized on an accelerated basis over a 120 month period and is subject to periodic impairment evaluation.
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Stock Transactions |
Stock Transactions
A total of 3,883 and 7,705 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $106,000 and $219,000 under the terms of the Directors’ Stock Purchase Plan in
the second quarter and first half of 2024, respectively. A total of 2,506 and 4,906 shares for a cash price of $61,000 and $117,000 were issued under the Employee Stock Purchase Plan in the second quarter and first half of 2024, respectively. ChoiceOne’s common stock
repurchase program announced in April 2021 and amended in 2022, authorizes repurchases of up to 375,388 shares, representing 5% of the total outstanding shares of common stock as of the date the program was adopted. No shares were repurchased under this program in the second quarter of 2024.
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Reclassifications |
Reclassifications
Certain amounts presented in prior periods have been reclassified to conform to the current presentation.
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Allowance for Credit Losses ("ACL") |
Allowance for Credit Losses (“ACL”)
The ACL is a valuation allowance for expected credit losses. The ACL is increased by the provision for credit losses and decreased by loans
charged off less any recoveries of charged off loans. As ChoiceOne has had very limited loss experience since 2011, management elected to utilize benchmark peer loss history data to estimate historical loss rates. ChoiceOne identified an
appropriate peer group for each loan cohort which shared similar characteristics. Management estimates the ACL required based on the selected peer group loan loss experience, the nature and volume of the loan portfolio, information about specific
borrower situations and estimated collateral values, a reasonable and supportable economic forecast, and other factors. Allocations of the ACL may be made for specific loans, but the entire ACL is available for any loan that, in management’s
judgment, should be charged off. Loan losses are charged against the ACL when management believes that collection of a loan balance is not possible.
The ACL consists of general and specific components. The general component covers loans collectively evaluated for credit losses and is based on
peer historical loss experience adjusted for current and forecasted factors. Management’s adjustment for current and forecasted factors is based on trends in delinquencies, trends in charge-offs and recoveries, trends in the volume of loans,
changes in underwriting standards, trends in loan review findings, the experience and ability of lending staff, and a reasonable and supportable economic forecast described further below.
The discounted cash flow methodology is utilized for all loan pools. This methodology is supported by our CECL software provider and allows
management to calculate contractual life by factoring in all cash flows and adjusting them for behavioral and credit-related aspects.
Reasonable and supportable economic forecasts have to be incorporated in determining expected credit losses. The forecast period represents the
time frame from the current period end through the point in time that we can reasonably forecast and support entity and environmental factors that are expected to impact the performance of our loan portfolio. Ideally, the economic forecast period
would encompass the contractual terms of all loans; however, the ability to produce a forecast that is considered reasonable and supportable becomes more difficult or may not be possible in later periods. Subsequent to the end of the forecast
period, we revert to historical loan data based on an ongoing evaluation of each economic forecast in relation to then current economic conditions as well as any developing loan loss activity and resulting historical data. As of June 30, 2024, we
used a one-year reasonable and supportable economic forecast period, with a two year straight-line reversion period.
We are not required to develop and use our own economic forecast model, and we elected to utilize economic forecasts from third-party providers
that analyze and develop forecasts of the economy for the entire United States at least quarterly.
Other inputs to the calculation are also updated or reviewed quarterly. Prepayment speeds are updated on a one quarter lag based on the asset
liability model from the previous quarter. This model is performed at the loan level. Curtailment is updated quarterly within the ACL model based on our peer group average. The reversion period is reviewed by management quarterly with
consideration of the current economic climate.
We are also required to consider expected credit losses associated with loan commitments over the contractual period in which we are exposed to
credit risk on the underlying commitments unless the obligation is unconditionally cancellable by us. Any allowance for off-balance sheet credit exposures is reported as an other liability on our Consolidated Balance Sheet and is increased or
decreased via the provision for credit losses account on our Consolidated Statement of Income. The calculation includes consideration of the likelihood that funding will occur and forecasted credit losses on commitments expected to be funded over
their estimated lives. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to be funded.
Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. ChoiceOne has
determined that any loans which have been placed on non-performing status, loans with a risk rating of 6 or higher, and loans past due more than 60
days will be assessed individually for evaluation. Management’s judgment will be used to determine if the loan should be migrated back to pool on an individual basis. Individual analysis will establish a specific reserve for loans in scope.
Specific reserves on non-performing loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate or based on the present value of the expected cash flows
from that loan.
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Securities |
Securities
Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them
to maturity. Debt securities are classified as available for sale because they might be sold before maturity. Debt securities classified as available for sale are carried at fair value, with unrealized holding gains and losses reported separately
in the accumulated other comprehensive income or loss section of shareholders’ equity, net of tax effect. Restricted investments in Federal Reserve Bank stock and Federal Home Loan Bank stock are carried at cost. Equity securities consist of
investments in preferred stock and investments in common stock of other financial institutions. Equity securities are reported at their fair value with changes in market value reported through current earnings.
Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized using the level-yield
method without anticipating prepayments. Gains or losses on sales are recorded on the trade date based on the amortized cost of the security sold.
Securities Available for Sale (“AFS”) – For securities AFS in an unrealized loss position, management determines whether they intend to sell or if
it is more likely than not that ChoiceOne will be required to sell the security before recovery of the 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 with an allowance being established under CECL. For securities AFS with unrealized losses not meeting these criteria, management evaluates whether any decline in fair value is due to credit loss factors. In
making this assessment, management considers any changes to the rating of the security by rating agencies and adverse conditions specifically related to the issuer of the security, among other factors. If this assessment 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 the cash flows expected to be collected is less than the amortized cost
basis, a credit loss exists and an allowance for credit losses (“ACL”) is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Changes in the ACL under ASC 326-30 are recorded as provisions
for (or reversal of) credit loss expense. Losses are charged against the allowance when the collectability of a security AFS is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment that has not
been recorded through an ACL is recognized in other comprehensive income, net of income taxes. At June 30, 2024, there was no ACL related to securities AFS. Accrued interest receivable on securities AFS was excluded from the estimate of credit
losses.
Securities Held to Maturity (“HTM”) – Since the adoption of CECL, ChoiceOne measures credit losses on securities HTM on a collective basis by
major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The ACL on HTM securities is a contra asset
valuation account that is deducted from the carrying amount of securities HTM to present the net amount expected to be collected. HTM securities are charged off against the ACL when deemed uncollectible. Adjustments to the ACL are reported in
ChoiceOne’s Consolidated Statements of Income in the provision for credit losses. Accrued interest receivable on securities HTM is excluded from the estimate of credit losses. With regard to US Treasury securities, these have an explicit
government guarantee; therefore, no ACL is recorded for these securities. With regard to obligations of states and political subdivisions and other HTM securities, management considers (1) issuer bond ratings, (2) historical loss rates for given
bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. A discounted cash flow method will be used to determine the
reserve required for any credit losses on HTM securities. At June 30, 2024, the ACL related to securities HTM is insignificant.
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Recent Accounting Pronouncements |
Recent Accounting Pronouncements
Improvements to Income Tax Disclosure
ASU 2023-09 enhances transparency by requiring consistent categorization, greater disaggregation, and detailed disclosure related to income taxes paid. These changes aim to help users of
financial statements understand factors contributing to differences between effective and statutory tax rates. The disclosure is effective for annual reporting periods beginning after December 15, 2024.
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Securities (Tables) |
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Debt Securities, Trading, and Equity Securities, FV-NI, Cost [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gross Unrealized Gains and (Losses) |
The fair value of equity securities and the related gross unrealized gains and (losses) recognized in noninterest income were as follows:
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Schedule of Gross Unrealized Gains and Losses on Investment Securities Available for Sale Recognized in Accumulated Other Comprehensive Income (loss) |
The following tables present the amortized cost and fair value of securities available for sale and the gross unrealized gains and losses
recognized in accumulated other comprehensive income (loss) and the amortized cost and fair value of securities held to maturity and the related gross unrealized gains and losses:
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Schedule of Available for Sale Securities with Unrealize Losses |
Available for sale securities with unrealized losses as of June 30, 2024 and December 31, 2023, aggregated by investment category and length of
time the individual securities have been in an unrealized loss position, were as follows:
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Schedule of Held to Maturity Securities with Unrealize Losses |
Held to maturity securities with unrealized losses as of June 30, 2024 and December 31, 2023, aggregated by investment category and length of time
the individual securities have been in an unrealized loss position, were as follows:
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Schedule of Maturities of Securities |
Presented below is a schedule of maturities of securities as of June 30, 2024. Available for sale securities are reported at fair value and held to maturity
securities are reported at amortized cost. Callable securities in the money are presumed called and matured at the callable date.
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Schedule of Unrealized Gains and Losses on Equity Securities |
Following is information regarding unrealized gains and losses on equity securities for the three and six months ended June 30, 2024 and 2023:
|
Loans and Allowance for Credit Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans by Type as Percentage of Portfolio |
Loans by type as a percentage of the portfolio were as follows:
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Allowance for Credit Losses and Balances in Loan Portfolio |
Activity in the allowance for credit losses and balances in the loan portfolio were as follows:
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Schedule of Information Regarding Credit Exposure |
The following table reflects the amortized cost basis of loans as of June 30, 2024 based on year of origination (dollars in thousands):
The following table reflects the amortized cost basis of loans as of December 31, 2023 based on year of origination (dollars in thousands):
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Summary of Amortized Cost Basis Loans Modified To Borrowers Experiencing On Financing Receivable |
The following tables present the amortized cost basis of the loans modified to borrowers experiencing financial difficulty disaggregated by class of financing
receivable and type of concession granted during the first six months of 2024 and the full year 2023.
The following table presents the financial effect by type of modification made to borrowers experiencing financial difficulty and class of financing receivable during the first six
months of 2024 and the full year 2023.
The following table presents the period-end amortized cost basis of financing receivables that had a payment default during the period and were modified in the 12 months before
default to borrowers experiencing financial difficulty.
The following table presents the period-end amortized cost basis of loans that have been modified in the past 12 months to borrowers experiencing financial
difficulty by payment status and class of financing receivable.
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Nonaccrual Loans by Loan Category |
Nonaccrual loans by loan category were as follows:
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Aging Analysis of Loans by Loan Category |
An aging analysis of loans by loan category follows:
|
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic Earnings Per Share and Diluted Earnings Per Share |
There were 6,000 stock options that were
considered anti-dilutive to earnings per share for the three months ended June 30, 2024 and 4,500 stock option that were
considered anti-dilutive to earnings per share for the six months ended June 30, 2024. There were 15,000 stock options and 5,125 performance awards that were considered anti-dilutive to earnings per share for the three months ended June 30, 2023. There were 15,000 stock option that were considered anti-dilutive to earnings per share for the six months ended June 30, 2023.
|
Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Instruments |
Financial instruments as of the dates indicated were as follows:
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value |
Securities classified as available for sale are generally reported at fair value utilizing Level 2 inputs. ChoiceOne’s external
investment advisor obtained fair value measurements from an independent pricing service that uses 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 (Level 2 inputs). The fair value measurements considered observable data that may include dealer quotes, market
spreads, cash flows and the bonds’ terms and conditions, among other things. Securities classified in Level 2 included U.S. Government and federal agency securities, state and municipal securities, mortgage-backed securities, corporate
bonds, and asset backed securities. The Company classified certain state and municipal securities and corporate bonds, and equity securities as Level 3. Based on the lack of observable market data, estimated fair values were based on the
observable data available and reasonable unobservable market data.
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Schedule of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis |
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Schedule of Assets Measured at Fair Value on a Non-recurring Basis |
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Revenue From Contracts With Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Noninterest Income Separated by Revenue |
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Derivative and Hedging Activities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivatives Instruments in Balance Sheet Location |
The table below presents the fair value of derivative financial instruments as well as the classification within the consolidated
statements of financial condition:
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Location and Amount of Gain (Loss) in Income on Fair Value and Cash Flow Hedging Relationships |
The table below presents the effect of fair value and cash flow hedge accounting on the consolidated statements of operations for the periods presented:
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Schedule of Cumulative Basis Adjustments on Hedged Items Designated as Fair Value Hedges and Related Amortized Cost |
The table below presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of those items as of
the periods presented:
|
Borrowings (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Federal Home Loan Bank Advances |
Federal Home Loan Bank Advances
|
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Schedule of Bank Term Funding Program Advances |
Bank Term Funding Program (“BTFP”)
|
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Apr. 30, 2021 |
|
Significant Accounting Policies [Line Items] | |||||
Stock issued during period, value, new issues | $ 25,000 | $ 150,000 | $ 115,000 | $ 297,000 | |
Stock repurchased during period, shares (in shares) | 0 | ||||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 375,388 | ||||
Stock repurchase program, percent of stock outstanding | 5.00% | ||||
Number of days individually evaluation | 60 days | ||||
Directors' Stock Purchase Plan [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Stock issued during period, shares, new issues (in shares) | 3,883 | 7,705 | |||
Stock issued during period, value, new issues | $ 106,000 | $ 219,000 | |||
Employee Stock Purchase Plan [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Stock issued during period, shares, new issues (in shares) | 2,506 | 4,906 | |||
Stock issued during period, value, new issues | $ 61,000 | $ 117,000 |
Securities - Additional Information (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
Securities
|
Dec. 31, 2023
Securities
|
Jun. 30, 2023
USD ($)
|
---|---|---|---|
Debt and Equity Securities, FV-NI [Line Items] | |||
Allowance for credit loss | $ | $ 0 | $ 0 | |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | Securities | 553 | 569 | |
US Treasury Securities [Member] | AA or Better [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 100.00% | ||
US States and Political Subdivisions Debt Securities [Member] | A Rated [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 11.00% | ||
US States and Political Subdivisions Debt Securities [Member] | AA or Better [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 85.00% | ||
US States and Political Subdivisions Debt Securities [Member] | Unrated [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 4.00% | ||
Collateralized Mortgage-Backed Securities [Member] | AA [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 42.00% | ||
Collateralized Mortgage-Backed Securities [Member] | AAA [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 43.00% | ||
Collateralized Mortgage-Backed Securities [Member] | Unrated [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt Securities, Percent | 15.00% |
Securities - Fair Value of Equity Securities and Related Gross Unrealized Gains (Losses) Recognized in Interest Income (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Debt Securities, Trading, and Equity Securities, FV-NI, Cost [Abstract] | ||
Amortized Cost | $ 7,993 | $ 7,960 |
Gross Unrealized Gains | 266 | 212 |
Gross Unrealized Losses | (757) | (667) |
Fair Value | $ 7,502 | $ 7,505 |
Securities - Fair Value of Debt Security, Available-for-sale and Held-to-maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | $ 557,310 | $ 584,239 |
Gross unrealized gains, available for sale | 26 | 14 |
Gross unrealized losses, available for sale | (65,666) | (69,655) |
Fair value, available for sale | 491,670 | 514,598 |
Amortized cost, held to maturity | 392,699 | 407,959 |
Gross unrealized gains, held to maturity | 25 | 35 |
Gross unrealized losses, held to maturity | (60,141) | (59,203) |
Fair value, held to maturity | 332,583 | 348,791 |
U.S. Treasury Notes and Bonds [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | 90,112 | 90,345 |
Gross unrealized gains, available for sale | 0 | 0 |
Gross unrealized losses, available for sale | (10,801) | (10,151) |
Fair value, available for sale | 79,311 | 80,194 |
U.S. Government and Federal Agency [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, held to maturity | 2,975 | 2,972 |
Gross unrealized gains, held to maturity | 0 | 0 |
Gross unrealized losses, held to maturity | (340) | (293) |
Fair value, held to maturity | 2,635 | 2,679 |
State and Municipal [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | 260,866 | 269,918 |
Gross unrealized gains, available for sale | 0 | 0 |
Gross unrealized losses, available for sale | (31,611) | (35,236) |
Fair value, available for sale | 229,255 | 234,682 |
Amortized cost, held to maturity | 195,460 | 196,098 |
Gross unrealized gains, held to maturity | 6 | 14 |
Gross unrealized losses, held to maturity | (32,418) | (30,220) |
Fair value, held to maturity | 163,048 | 165,892 |
Mortgage-backed [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | 196,032 | 212,392 |
Gross unrealized gains, available for sale | 26 | 14 |
Gross unrealized losses, available for sale | (23,000) | (23,905) |
Fair value, available for sale | 173,058 | 188,501 |
Amortized cost, held to maturity | 173,860 | 188,329 |
Gross unrealized gains, held to maturity | 0 | 0 |
Gross unrealized losses, held to maturity | (24,715) | (25,796) |
Fair value, held to maturity | 149,145 | 162,533 |
Corporate [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | 250 | 250 |
Gross unrealized gains, available for sale | 0 | 0 |
Gross unrealized losses, available for sale | (45) | (46) |
Fair value, available for sale | 205 | 204 |
Amortized cost, held to maturity | 20,028 | 20,013 |
Gross unrealized gains, held to maturity | 19 | 21 |
Gross unrealized losses, held to maturity | (2,652) | (2,864) |
Fair value, held to maturity | 17,395 | 17,170 |
Asset-backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, available for sale | 10,050 | 11,334 |
Gross unrealized gains, available for sale | 0 | 0 |
Gross unrealized losses, available for sale | (209) | (317) |
Fair value, available for sale | 9,841 | 11,017 |
Amortized cost, held to maturity | 376 | 547 |
Gross unrealized gains, held to maturity | 0 | 0 |
Gross unrealized losses, held to maturity | (16) | (30) |
Fair value, held to maturity | $ 360 | $ 517 |
Securities - Securities with Unrealized Losses Aggregated by Investment Category and Time with Unrealized Loss Position (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | $ 2,503 | $ 1,812 |
Less than 12 months, unrealized losses | 14 | 29 |
More than 12 months, fair value | 477,933 | 501,940 |
More than 12 months, unrealized losses | 65,652 | 69,626 |
Total, fair value | 480,436 | 503,752 |
Total, unrealized losses | 65,666 | 69,655 |
U.S. Treasury Notes and Bonds [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
More than 12 months, fair value | 79,311 | 80,194 |
More than 12 months, unrealized losses | 10,801 | 10,151 |
Total, fair value | 79,311 | 80,194 |
Total, unrealized losses | 10,801 | 10,151 |
State and Municipal [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 557 |
Less than 12 months, unrealized losses | 0 | 6 |
More than 12 months, fair value | 229,255 | 234,125 |
More than 12 months, unrealized losses | 31,611 | 35,230 |
Total, fair value | 229,255 | 234,682 |
Total, unrealized losses | 31,611 | 35,236 |
Mortgage-backed [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 2,503 | 1,255 |
Less than 12 months, unrealized losses | 14 | 23 |
More than 12 months, fair value | 159,321 | 176,400 |
More than 12 months, unrealized losses | 22,986 | 23,882 |
Total, fair value | 161,824 | 177,655 |
Total, unrealized losses | 23,000 | 23,905 |
Corporate [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
More than 12 months, fair value | 205 | 204 |
More than 12 months, unrealized losses | 45 | 46 |
Total, fair value | 205 | 204 |
Total, unrealized losses | 45 | 46 |
Asset-backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
More than 12 months, fair value | 9,841 | 11,017 |
More than 12 months, unrealized losses | 209 | 317 |
Total, fair value | 9,841 | 11,017 |
Total, unrealized losses | $ 209 | $ 317 |
Securities - Fair Value of Securities Available for Sale and The Related Unrealized Gains and Losses Recognized in Accumulated Comprehensive Income (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | $ 7,256 | $ 23 |
Less than 12 months, unrealized losses | 1,350 | 0 |
Fair value, more than 12 months | 323,499 | 346,764 |
Unrealized loss, more than 12 months | 58,791 | 59,203 |
Fair value | 330,755 | 346,787 |
Unrealized losses | 60,141 | 59,203 |
U.S. Government and Federal Agency [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
Fair value, more than 12 months | 2,635 | 2,679 |
Unrealized loss, more than 12 months | 340 | 293 |
Fair value | 2,635 | 2,679 |
Unrealized losses | 340 | 293 |
State and Municipal [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 7,256 | 23 |
Less than 12 months, unrealized losses | 1,350 | 0 |
Fair value, more than 12 months | 155,628 | 165,526 |
Unrealized loss, more than 12 months | 31,068 | 30,220 |
Fair value | 162,884 | 165,549 |
Unrealized losses | 32,418 | 30,220 |
Mortgage-backed [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
Fair value, more than 12 months | 149,145 | 162,533 |
Unrealized loss, more than 12 months | 24,715 | 25,796 |
Fair value | 149,145 | 162,533 |
Unrealized losses | 24,715 | 25,796 |
Corporate [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
Fair value, more than 12 months | 15,731 | 15,509 |
Unrealized loss, more than 12 months | 2,652 | 2,864 |
Fair value | 15,731 | 15,509 |
Unrealized losses | 2,652 | 2,864 |
Asset-backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
Fair value, more than 12 months | 360 | 517 |
Unrealized loss, more than 12 months | 16 | 30 |
Fair value | 360 | 517 |
Unrealized losses | $ 16 | $ 30 |
Securities - Schedule of Maturities of Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 1 Year | $ 13,852 | |
1 Year - 5 Years | 174,824 | |
5 Years - 10 Years | 142,978 | |
More than 10 Years | 160,016 | |
Fair value, available for sale | 491,670 | $ 514,598 |
Total Available for Sale | 491,670 | |
Held to Maturity Securities maturing within Less than 1 Year | 18,725 | |
Held to Maturity Securities maturing within 1 Year -5 Years | 49,707 | |
Held to Maturity Securities maturing within 5 Years -10 Years | 245,765 | |
Held to Maturity Securities maturing within More than10 Years | 78,502 | |
Held to Maturity Securities maturing within amortized cost | 392,699 | |
U.S. Government and Federal Agency [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Held to Maturity Securities maturing within Less than 1 Year | 0 | |
Held to Maturity Securities maturing within 1 Year -5 Years | 2,975 | |
Held to Maturity Securities maturing within 5 Years -10 Years | 0 | |
Held to Maturity Securities maturing within More than10 Years | 0 | |
Held to Maturity Securities maturing within amortized cost | 2,975 | |
U.S. Treasury Notes and Bonds [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 1 Year | 0 | |
1 Year - 5 Years | 73,173 | |
5 Years - 10 Years | 6,138 | |
More than 10 Years | 0 | |
Fair value, available for sale | 79,311 | 80,194 |
State and Municipal [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 1 Year | 1,006 | |
1 Year - 5 Years | 15,130 | |
5 Years - 10 Years | 77,614 | |
More than 10 Years | 135,505 | |
Fair value, available for sale | 229,255 | 234,682 |
Held to Maturity Securities maturing within Less than 1 Year | 1,690 | |
Held to Maturity Securities maturing within 1 Year -5 Years | 17,189 | |
Held to Maturity Securities maturing within 5 Years -10 Years | 98,079 | |
Held to Maturity Securities maturing within More than10 Years | 78,502 | |
Held to Maturity Securities maturing within amortized cost | 195,460 | |
Corporate [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 1 Year | 0 | |
1 Year - 5 Years | 0 | |
5 Years - 10 Years | 205 | |
More than 10 Years | 0 | |
Fair value, available for sale | 205 | 204 |
Held to Maturity Securities maturing within Less than 1 Year | 0 | |
Held to Maturity Securities maturing within 1 Year -5 Years | 0 | |
Held to Maturity Securities maturing within 5 Years -10 Years | 20,028 | |
Held to Maturity Securities maturing within More than10 Years | 0 | |
Held to Maturity Securities maturing within amortized cost | 20,028 | |
Asset-backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 1 Year | 0 | |
1 Year - 5 Years | 7,192 | |
5 Years - 10 Years | 2,649 | |
More than 10 Years | 0 | |
Fair value, available for sale | 9,841 | 11,017 |
Held to Maturity Securities maturing within Less than 1 Year | 376 | |
Held to Maturity Securities maturing within 1 Year -5 Years | 0 | |
Held to Maturity Securities maturing within 5 Years -10 Years | 0 | |
Held to Maturity Securities maturing within More than10 Years | 0 | |
Held to Maturity Securities maturing within amortized cost | 376 | |
Total debt securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 1 Year | 1,006 | |
1 Year - 5 Years | 95,495 | |
5 Years - 10 Years | 86,606 | |
More than 10 Years | 135,505 | |
Fair value, available for sale | 318,612 | |
Held to Maturity Securities maturing within Less than 1 Year | 2,066 | |
Held to Maturity Securities maturing within 1 Year -5 Years | 20,164 | |
Held to Maturity Securities maturing within 5 Years -10 Years | 118,107 | |
Held to Maturity Securities maturing within More than10 Years | 78,502 | |
Held to Maturity Securities maturing within amortized cost | 218,839 | |
Mortgage-backed [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Less than 1 Year | 12,846 | |
1 Year - 5 Years | 79,329 | |
5 Years - 10 Years | 56,372 | |
More than 10 Years | 24,511 | |
Fair value, available for sale | 173,058 | $ 188,501 |
Held to Maturity Securities maturing within Less than 1 Year | 16,659 | |
Held to Maturity Securities maturing within 1 Year -5 Years | 29,543 | |
Held to Maturity Securities maturing within 5 Years -10 Years | 127,658 | |
Held to Maturity Securities maturing within More than10 Years | 0 | |
Held to Maturity Securities maturing within amortized cost | $ 173,860 |
Securities - Unrealized Gains and Losses on Equity Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Debt Securities, Trading, and Equity Securities, FV-NI, Cost [Abstract] | ||||
Net gains and (losses) recognized during the period | $ (71) | $ (385) | $ (36) | $ (322) |
Less: Net gains and (losses) recognized during the period on securities sold | 0 | 0 | 0 | 0 |
Unrealized gains and (losses) recognized during the reporting period on securities still held at the reporting date | $ (71) | $ (385) | $ (36) | $ (322) |
Loans and Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Receivables [Abstract] | ||||
Provision for (reversal of) credit losses on loans | $ 272 | $ (415) | $ 675 | $ (106) |
Loans and Allowance for Credit Losses - Loans by Type as Percentage of Portfolio (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans (Note 3) | $ 1,437,527 | $ 1,410,653 | ||||
Allowance for loan losses (Note 3) | $ 16,152 | $ 15,685 | $ 16,037 | $ 14,582 | $ 15,065 | $ 7,619 |
Percentage of allowance for credit losses | 1.12% | 1.11% | ||||
Loans, net | $ 1,421,375 | $ 1,394,968 | ||||
Agricultural [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans (Note 3) | $ 45,274 | $ 49,210 | ||||
Percentage of loans | 3.20% | 3.50% | ||||
Percentage of increase decrease of loans | (8.00%) | |||||
Allowance for loan losses (Note 3) | $ 112 | $ 94 | 97 | 78 | 136 | 144 |
Commercial and Industrial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans (Note 3) | $ 224,031 | $ 229,915 | ||||
Percentage of loans | 15.60% | 16.30% | ||||
Percentage of increase decrease of loans | (2.60%) | |||||
Allowance for loan losses (Note 3) | $ 2,161 | $ 2,216 | 2,243 | 2,896 | 3,020 | 1,361 |
Commercial Real Estate Portfolio Segment [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans (Note 3) | $ 804,213 | $ 786,921 | ||||
Percentage of loans | 55.90% | 55.80% | ||||
Percentage of increase decrease of loans | 2.20% | |||||
Allowance for loan losses (Note 3) | $ 9,361 | $ 8,820 | 9,167 | 7,237 | 7,837 | 4,822 |
Consumer Portfolio Segment [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans (Note 3) | $ 32,811 | $ 36,541 | ||||
Percentage of loans | 2.30% | 2.60% | ||||
Percentage of increase decrease of loans | (10.20%) | |||||
Allowance for loan losses (Note 3) | $ 795 | $ 823 | 918 | 885 | 913 | 310 |
Construction Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans (Note 3) | $ 18,751 | $ 20,936 | ||||
Percentage of loans | 1.30% | 1.50% | ||||
Percentage of increase decrease of loans | (10.40%) | |||||
Allowance for loan losses (Note 3) | $ 49 | $ 58 | 49 | 70 | 72 | 63 |
Residential Portfolio Segment [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans (Note 3) | $ 275,878 | $ 267,730 | ||||
Percentage of loans | 19.20% | 19.00% | ||||
Percentage of increase decrease of loans | 3.00% | |||||
Allowance for loan losses (Note 3) | $ 3,624 | $ 3,644 | 3,513 | 3,376 | 3,087 | 906 |
Loans To Other Financial Institutions [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans (Note 3) | $ 36,569 | $ 19,400 | ||||
Percentage of loans | 2.50% | 1.40% | ||||
Percentage of increase decrease of loans | 88.50% | |||||
Allowance for loan losses (Note 3) | $ 50 | $ 30 | $ 50 | $ 40 | $ 0 | $ 0 |
Loans and Allowance for Credit Losses - Allowance for Credit Losses and Balances in Loan Portfolio (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | $ 16,037 | $ 15,065 | $ 7,619 | $ 15,685 | $ 7,619 | |
Charge-offs | (328) | (131) | (452) | (271) | ||
Recoveries | 171 | 63 | 244 | 176 | ||
Provision | 272 | (415) | 675 | (106) | ||
Ending balance | 16,152 | 14,582 | 15,065 | 16,152 | 14,582 | |
Individually evaluated for impairment | 72 | 72 | $ 60 | |||
Collectively evaluated for impairment | 14,510 | 14,510 | 15,625 | |||
Individually evaluated for credit loss | 87 | 87 | ||||
Collectively evaluated for credit loss | 16,065 | 16,065 | 1,410,653 | |||
Individually evaluated for impairment | 2,079 | |||||
Collectively evaluated for impairment | 1,408,574 | |||||
Individually evaluated for credit loss | 2,492 | 2,492 | ||||
Collectively evaluated for credit loss | 1,435,035 | 1,435,035 | ||||
Acquired with deteriorated credit quality | 0 | |||||
Loans | 1,437,527 | 1,437,527 | 1,410,653 | |||
Cumulative Effect of Change in Accounting Principle [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 7,165 | 7,165 | ||||
Agricultural [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 97 | 136 | 144 | 94 | 144 | |
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | 15 | (58) | 18 | (80) | ||
Ending balance | 112 | 78 | 136 | 112 | 78 | |
Individually evaluated for impairment | 1 | 1 | 2 | |||
Collectively evaluated for impairment | 77 | 77 | 92 | |||
Individually evaluated for credit loss | 1 | 1 | ||||
Collectively evaluated for credit loss | 111 | 111 | 49,210 | |||
Individually evaluated for impairment | 54 | |||||
Collectively evaluated for impairment | 49,156 | |||||
Individually evaluated for credit loss | 27 | 27 | ||||
Collectively evaluated for credit loss | 45,247 | 45,247 | ||||
Acquired with deteriorated credit quality | 0 | |||||
Loans | 45,274 | 45,274 | 49,210 | |||
Agricultural [Member] | Cumulative Effect of Change in Accounting Principle [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 14 | 14 | ||||
Commercial and Industrial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 2,243 | 3,020 | 1,361 | 2,216 | 1,361 | |
Charge-offs | 0 | 0 | (1) | 0 | ||
Recoveries | 2 | 2 | 11 | 29 | ||
Provision | (84) | (126) | (65) | (81) | ||
Ending balance | 2,161 | 2,896 | 3,020 | 2,161 | 2,896 | |
Individually evaluated for impairment | 34 | 34 | 6 | |||
Collectively evaluated for impairment | 2,862 | 2,862 | 2,210 | |||
Individually evaluated for credit loss | 7 | 7 | ||||
Collectively evaluated for credit loss | 2,154 | 2,154 | 229,915 | |||
Individually evaluated for impairment | 136 | |||||
Collectively evaluated for impairment | 229,779 | |||||
Individually evaluated for credit loss | 151 | 151 | ||||
Collectively evaluated for credit loss | 223,880 | 223,880 | ||||
Acquired with deteriorated credit quality | 0 | |||||
Loans | 224,031 | 224,031 | 229,915 | |||
Commercial and Industrial [Member] | Cumulative Effect of Change in Accounting Principle [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 1,587 | 1,587 | ||||
Consumer Portfolio Segment [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 918 | 913 | 310 | 823 | 310 | |
Charge-offs | (328) | (131) | (451) | (271) | ||
Recoveries | 166 | 59 | 226 | 129 | ||
Provision | 39 | 44 | 197 | 176 | ||
Ending balance | 795 | 885 | 913 | 795 | 885 | |
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 885 | 885 | 823 | |||
Individually evaluated for credit loss | 0 | 0 | ||||
Collectively evaluated for credit loss | 795 | 795 | 36,541 | |||
Individually evaluated for impairment | 2 | |||||
Collectively evaluated for impairment | 36,539 | |||||
Individually evaluated for credit loss | 4 | 4 | ||||
Collectively evaluated for credit loss | 32,807 | 32,807 | ||||
Acquired with deteriorated credit quality | 0 | |||||
Loans | 32,811 | 32,811 | 36,541 | |||
Consumer Portfolio Segment [Member] | Cumulative Effect of Change in Accounting Principle [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 541 | 541 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 9,167 | 7,837 | 4,822 | 8,820 | 4,822 | |
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 13 | ||
Provision | 194 | (600) | 541 | (604) | ||
Ending balance | 9,361 | 7,237 | 7,837 | 9,361 | 7,237 | |
Individually evaluated for impairment | 1 | 1 | 1 | |||
Collectively evaluated for impairment | 7,236 | 7,236 | 8,819 | |||
Individually evaluated for credit loss | 1 | 1 | ||||
Collectively evaluated for credit loss | 9,360 | 9,360 | 786,921 | |||
Individually evaluated for impairment | 29 | |||||
Collectively evaluated for impairment | 786,892 | |||||
Individually evaluated for credit loss | 383 | 383 | ||||
Collectively evaluated for credit loss | 803,830 | 803,830 | ||||
Acquired with deteriorated credit quality | 0 | |||||
Loans | 804,213 | 804,213 | 786,921 | |||
Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect of Change in Accounting Principle [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 3,006 | 3,006 | ||||
Construction Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 49 | 72 | 63 | 58 | 63 | |
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | 0 | (2) | (9) | (13) | ||
Ending balance | 49 | 70 | 72 | 49 | 70 | |
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 70 | 70 | 58 | |||
Individually evaluated for credit loss | 0 | 0 | ||||
Collectively evaluated for credit loss | 49 | 49 | 20,936 | |||
Individually evaluated for impairment | 0 | |||||
Collectively evaluated for impairment | 20,936 | |||||
Individually evaluated for credit loss | 0 | 0 | ||||
Collectively evaluated for credit loss | 18,751 | 18,751 | ||||
Acquired with deteriorated credit quality | 0 | |||||
Loans | 18,751 | 18,751 | 20,936 | |||
Construction Real Estate [Member] | Cumulative Effect of Change in Accounting Principle [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 20 | 20 | ||||
Residential Portfolio Segment [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 3,513 | 3,087 | 906 | 3,644 | 906 | |
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 3 | 2 | 7 | 5 | ||
Provision | 108 | 287 | (27) | 455 | ||
Ending balance | 3,624 | 3,376 | 3,087 | 3,624 | 3,376 | |
Individually evaluated for impairment | 36 | 36 | 51 | |||
Collectively evaluated for impairment | 3,340 | 3,340 | 3,593 | |||
Individually evaluated for credit loss | 78 | 78 | ||||
Collectively evaluated for credit loss | 3,546 | 3,546 | 267,730 | |||
Individually evaluated for impairment | 1,858 | |||||
Collectively evaluated for impairment | 265,872 | |||||
Individually evaluated for credit loss | 1,927 | 1,927 | ||||
Collectively evaluated for credit loss | 273,951 | 273,951 | ||||
Acquired with deteriorated credit quality | 0 | |||||
Loans | 275,878 | 275,878 | 267,730 | |||
Residential Portfolio Segment [Member] | Cumulative Effect of Change in Accounting Principle [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 2,010 | 2,010 | ||||
Loans To Other Financial Institutions [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 50 | 0 | 0 | 30 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | 0 | 40 | 20 | 40 | ||
Ending balance | 50 | 40 | 0 | 50 | 40 | |
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 40 | 40 | 30 | |||
Individually evaluated for credit loss | 0 | 0 | ||||
Collectively evaluated for credit loss | 50 | 50 | 19,400 | |||
Individually evaluated for impairment | 0 | |||||
Collectively evaluated for impairment | 19,400 | |||||
Individually evaluated for credit loss | 0 | 0 | ||||
Collectively evaluated for credit loss | 36,569 | 36,569 | ||||
Loans | $ 36,569 | $ 36,569 | $ 19,400 | |||
Loans To Other Financial Institutions [Member] | Cumulative Effect of Change in Accounting Principle [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 0 | 0 | ||||
Unallocated Financing Receivables [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | 0 | 13 | 13 | |||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Provision | 0 | 0 | ||||
Ending balance | 0 | 0 | 0 | |||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | $ 0 | 0 | ||||
Unallocated Financing Receivables [Member] | Cumulative Effect of Change in Accounting Principle [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Beginning balance | $ (13) | $ (13) |
Loans and Allowance for Credit Losses - Schedule of Information Regarding Credit Exposure (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | $ 169 | $ 189 | |||
Agricultural [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 4,093 | 5,015 | |||
Financing Receivable, Prior year | 2,064 | 4,088 | |||
Financing Receivable, Two year prior | 3,391 | 3,078 | |||
Financing Receivable, Three year prior | 2,998 | 1,788 | |||
Financing Receivable, Four year prior | 1,588 | 7,204 | |||
Prior | 20,253 | 18,530 | |||
Term Loans Total | 34,387 | 39,703 | |||
Revolving Loans | 10,887 | 9,507 | |||
Grand Total | 45,274 | 49,210 | |||
Current year-to-date gross write-offs, Current year | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Prior year | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Two year prior | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Three year prior | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Four year prior | 0 | [1] | 0 | ||
Financing Receivable Originated Writeoffs Five or More Years Before Latest Fiscal Year, Total | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Term Loans Total | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Revolving Loans | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Grand Total | 0 | [1] | 0 | ||
Agricultural [Member] | Pass [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 4,093 | 5,015 | |||
Financing Receivable, Prior year | 2,064 | 4,088 | |||
Financing Receivable, Two year prior | 3,391 | 3,078 | |||
Financing Receivable, Three year prior | 2,998 | 1,788 | |||
Financing Receivable, Four year prior | 1,588 | 7,028 | |||
Prior | 20,055 | 18,476 | |||
Term Loans Total | 34,189 | 39,473 | |||
Revolving Loans | 10,887 | 9,507 | |||
Grand Total | 45,076 | 48,980 | |||
Agricultural [Member] | Special Mention [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 176 | |||
Prior | 198 | 54 | |||
Term Loans Total | 198 | 230 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 198 | 230 | |||
Agricultural [Member] | Substandard [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Agricultural [Member] | Doubtful [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Agricultural [Member] | Loss [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Commercial and Industrial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 12,034 | 23,600 | |||
Financing Receivable, Prior year | 22,713 | 45,489 | |||
Financing Receivable, Two year prior | 35,577 | 23,490 | |||
Financing Receivable, Three year prior | 18,557 | 10,537 | |||
Financing Receivable, Four year prior | 8,767 | 9,287 | |||
Prior | 15,587 | 11,950 | |||
Term Loans Total | 113,235 | 124,353 | |||
Revolving Loans | 110,796 | 105,562 | |||
Grand Total | 224,031 | 229,915 | |||
Current year-to-date gross write-offs, Current year | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Prior year | 0 | [1] | 55 | ||
Current year-to-date gross write-offs, Two year prior | 0 | [1] | 30 | ||
Current year-to-date gross write-offs, Three year prior | 0 | [1] | 71 | ||
Current year-to-date gross write-offs, Four year prior | 0 | [1] | 0 | ||
Financing Receivable Originated Writeoffs Five or More Years Before Latest Fiscal Year, Total | 1 | [1] | 2 | ||
Current year-to-date gross write-offs, Term Loans Total | 1 | [1] | 158 | ||
Current year-to-date gross write-offs, Revolving Loans | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Grand Total | 1 | [1] | 158 | ||
Commercial and Industrial [Member] | Pass [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 12,034 | 23,600 | |||
Financing Receivable, Prior year | 22,713 | 45,489 | |||
Financing Receivable, Two year prior | 35,475 | 23,462 | |||
Financing Receivable, Three year prior | 18,536 | 10,502 | |||
Financing Receivable, Four year prior | 8,736 | 9,214 | |||
Prior | 15,342 | 11,882 | |||
Term Loans Total | 112,836 | 124,149 | |||
Revolving Loans | 110,682 | 105,559 | |||
Grand Total | 223,518 | 229,708 | |||
Commercial and Industrial [Member] | Special Mention [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 102 | 28 | |||
Financing Receivable, Three year prior | 21 | 35 | |||
Financing Receivable, Four year prior | 31 | 73 | |||
Prior | 245 | 64 | |||
Term Loans Total | 399 | 200 | |||
Revolving Loans | 112 | 3 | |||
Grand Total | 511 | 203 | |||
Commercial and Industrial [Member] | Substandard [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 4 | |||
Term Loans Total | 0 | 4 | |||
Revolving Loans | 2 | 0 | |||
Grand Total | 2 | 4 | |||
Commercial and Industrial [Member] | Doubtful [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Commercial and Industrial [Member] | Loss [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Construction Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 1,105 | 2,507 | |||
Financing Receivable, Prior year | 2,209 | 2,719 | |||
Financing Receivable, Two year prior | 0 | 552 | |||
Financing Receivable, Three year prior | 538 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 3,852 | 5,778 | |||
Revolving Loans | 14,899 | 15,158 | |||
Grand Total | 18,751 | 20,936 | |||
Current year-to-date gross write-offs, Current year | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Prior year | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Two year prior | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Three year prior | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Four year prior | 0 | [1] | 0 | ||
Financing Receivable Originated Writeoffs Five or More Years Before Latest Fiscal Year, Total | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Term Loans Total | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Revolving Loans | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Grand Total | 0 | [1] | 0 | ||
Construction Real Estate [Member] | Performing Financial Instruments [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 1,105 | 2,507 | |||
Financing Receivable, Prior year | 2,209 | 2,719 | |||
Financing Receivable, Two year prior | 0 | 552 | |||
Financing Receivable, Three year prior | 538 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 3,852 | 5,778 | |||
Revolving Loans | 14,899 | 15,158 | |||
Grand Total | 18,751 | 20,936 | |||
Construction Real Estate [Member] | Nonperforming Financial Instruments [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Construction Real Estate [Member] | Nonaccrual Financing Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Consumer Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 4,325 | 9,775 | |||
Financing Receivable, Prior year | 7,989 | 13,876 | |||
Financing Receivable, Two year prior | 10,013 | 6,771 | |||
Financing Receivable, Three year prior | 5,587 | 2,849 | |||
Financing Receivable, Four year prior | 2,136 | 1,260 | |||
Prior | 1,710 | 1,202 | |||
Term Loans Total | 31,760 | 35,733 | |||
Revolving Loans | 1,051 | 808 | |||
Grand Total | 32,811 | 36,541 | |||
Current year-to-date gross write-offs, Current year | 0 | [1] | 8 | ||
Current year-to-date gross write-offs, Prior year | 34 | [1] | 24 | ||
Current year-to-date gross write-offs, Two year prior | 103 | [1] | 11 | ||
Current year-to-date gross write-offs, Three year prior | 1 | [1] | 28 | ||
Current year-to-date gross write-offs, Four year prior | 0 | [1] | 0 | ||
Financing Receivable Originated Writeoffs Five or More Years Before Latest Fiscal Year, Total | 2 | [1] | 1 | ||
Current year-to-date gross write-offs, Term Loans Total | 140 | [1] | 72 | ||
Current year-to-date gross write-offs, Revolving Loans | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Grand Total | 140 | [1] | 72 | ||
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 4,325 | 9,775 | |||
Financing Receivable, Prior year | 7,989 | 13,876 | |||
Financing Receivable, Two year prior | 10,010 | 6,771 | |||
Financing Receivable, Three year prior | 5,586 | 2,849 | |||
Financing Receivable, Four year prior | 2,136 | 1,260 | |||
Prior | 1,710 | 1,202 | |||
Term Loans Total | 31,756 | 35,733 | |||
Revolving Loans | 1,051 | 808 | |||
Grand Total | 32,807 | 36,541 | |||
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Consumer Portfolio Segment [Member] | Nonaccrual Financing Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 3 | 0 | |||
Financing Receivable, Three year prior | 1 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 4 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 4 | 0 | |||
Commercial Real Estate Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 28,961 | 149,181 | |||
Financing Receivable, Prior year | 152,813 | 134,289 | |||
Financing Receivable, Two year prior | 121,618 | 107,033 | |||
Financing Receivable, Three year prior | 102,700 | 71,754 | |||
Financing Receivable, Four year prior | 69,234 | 43,846 | |||
Prior | 169,033 | 137,698 | |||
Term Loans Total | 644,359 | 643,801 | |||
Revolving Loans | 159,854 | 143,120 | |||
Grand Total | 804,213 | 786,921 | |||
Current year-to-date gross write-offs, Current year | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Prior year | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Two year prior | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Three year prior | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Four year prior | 0 | [1] | 0 | ||
Financing Receivable Originated Writeoffs Five or More Years Before Latest Fiscal Year, Total | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Term Loans Total | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Revolving Loans | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Grand Total | 0 | [1] | 0 | ||
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 28,961 | 149,181 | |||
Financing Receivable, Prior year | 152,813 | 134,289 | |||
Financing Receivable, Two year prior | 121,262 | 107,033 | |||
Financing Receivable, Three year prior | 102,700 | 71,754 | |||
Financing Receivable, Four year prior | 69,234 | 43,846 | |||
Prior | 168,671 | 136,361 | |||
Term Loans Total | 643,641 | 642,464 | |||
Revolving Loans | 159,854 | 143,120 | |||
Grand Total | 803,495 | 785,584 | |||
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 362 | 1,337 | |||
Term Loans Total | 362 | 1,337 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 362 | 1,337 | |||
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 356 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 356 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 356 | 0 | |||
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Commercial Real Estate Portfolio Segment [Member] | Loss [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Residential Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 19,368 | 54,231 | |||
Financing Receivable, Prior year | 49,035 | 65,148 | |||
Financing Receivable, Two year prior | 60,258 | 29,127 | |||
Financing Receivable, Three year prior | 27,585 | 16,391 | |||
Financing Receivable, Four year prior | 15,053 | 12,556 | |||
Prior | 48,982 | 40,756 | |||
Term Loans Total | 220,281 | 218,209 | |||
Revolving Loans | 55,597 | 49,521 | |||
Grand Total | 275,878 | 267,730 | |||
Current year-to-date gross write-offs, Current year | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Prior year | 0 | [1] | 26 | ||
Current year-to-date gross write-offs, Two year prior | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Three year prior | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Four year prior | 0 | [1] | 0 | ||
Financing Receivable Originated Writeoffs Five or More Years Before Latest Fiscal Year, Total | 0 | [1] | 1 | ||
Current year-to-date gross write-offs, Term Loans Total | 0 | [1] | 27 | ||
Current year-to-date gross write-offs, Revolving Loans | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Grand Total | 0 | [1] | 27 | ||
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 19,368 | 54,231 | |||
Financing Receivable, Prior year | 48,776 | 64,768 | |||
Financing Receivable, Two year prior | 59,768 | 28,301 | |||
Financing Receivable, Three year prior | 26,752 | 16,391 | |||
Financing Receivable, Four year prior | 15,053 | 12,556 | |||
Prior | 48,874 | 40,270 | |||
Term Loans Total | 218,591 | 216,517 | |||
Revolving Loans | 55,561 | 49,491 | |||
Grand Total | 274,152 | 266,008 | |||
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Residential Portfolio Segment [Member] | Nonaccrual Financing Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 259 | 380 | |||
Financing Receivable, Two year prior | 490 | 826 | |||
Financing Receivable, Three year prior | 833 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 108 | 486 | |||
Term Loans Total | 1,690 | 1,692 | |||
Revolving Loans | 36 | 30 | |||
Grand Total | 1,726 | 1,722 | |||
Loans to other financial institutions [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 36,569 | 19,400 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 36,569 | 19,400 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 36,569 | 19,400 | |||
Current year-to-date gross write-offs, Current year | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Prior year | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Two year prior | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Three year prior | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Four year prior | 0 | [1] | 0 | ||
Financing Receivable Originated Writeoffs Five or More Years Before Latest Fiscal Year, Total | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Term Loans Total | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Revolving Loans | 0 | [1] | 0 | ||
Current year-to-date gross write-offs, Grand Total | 0 | [1] | 0 | ||
Loans to other financial institutions [Member] | Performing Financial Instruments [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 36,569 | 19,400 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 36,569 | 19,400 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 36,569 | 19,400 | |||
Loans to other financial institutions [Member] | Nonperforming Financial Instruments [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Loans to other financial institutions [Member] | Nonaccrual Financing Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 0 | 0 | |||
Financing Receivable, Prior year | 0 | 0 | |||
Financing Receivable, Two year prior | 0 | 0 | |||
Financing Receivable, Three year prior | 0 | 0 | |||
Financing Receivable, Four year prior | 0 | 0 | |||
Prior | 0 | 0 | |||
Term Loans Total | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Grand Total | 0 | 0 | |||
Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 45,088 | 177,796 | |||
Financing Receivable, Prior year | 177,590 | 183,866 | |||
Financing Receivable, Two year prior | 160,586 | 133,601 | |||
Financing Receivable, Three year prior | 124,255 | 84,079 | |||
Financing Receivable, Four year prior | 79,589 | 60,337 | |||
Prior | 204,873 | 168,178 | |||
Term Loans Total | 791,981 | 807,857 | |||
Revolving Loans | 281,537 | 258,189 | |||
Grand Total | 1,073,518 | 1,066,046 | |||
Retail Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Current year | 61,367 | 85,913 | |||
Financing Receivable, Prior year | 59,233 | 81,743 | |||
Financing Receivable, Two year prior | 70,271 | 36,450 | |||
Financing Receivable, Three year prior | 33,710 | 19,240 | |||
Financing Receivable, Four year prior | 17,189 | 13,816 | |||
Prior | 50,692 | 41,958 | |||
Term Loans Total | 292,462 | 279,120 | |||
Revolving Loans | 71,547 | 65,487 | |||
Grand Total | $ 364,009 | $ 344,607 | |||
|
Loans and Allowance for Credit Losses - Schedule of Information Regarding Credit Exposure (Parenthetical) (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Receivables [Abstract] | |||
Financing receivable originated checking accounts writeoffs | $ 311 | $ 221 | $ 480 |
Financing receivable originated checking accounts writeoffs annualized | $ 628 | $ 442 |
Loans and Allowance for Credit Losses - Summary of Amortized Cost Basis Loans Modified To Borrowers Experiencing On Financing Receivable (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 123 | $ 189 |
Term Extension | 169 | 189 |
Current [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | 46 | 60 |
30-89 days [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | 0 | 0 |
Greater than 90 days [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | 123 | 129 |
Commercial and Industrial [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 60 | |
% of Total Class of Financing Receivable | 0.00% | |
Term Extension | 46 | $ 60 |
Commercial and Industrial [Member] | Troubled Loan Modification [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | 0 | 60 |
Commercial and Industrial [Member] | Current [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | 46 | 60 |
Commercial and Industrial [Member] | 30-89 days [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | 0 | 0 |
Commercial and Industrial [Member] | Greater than 90 days [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | 0 | 0 |
Residential Real Estate [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 123 | $ 129 |
% of Total Class of Financing Receivable | 0.00% | 0.00% |
Term Extension | $ 123 | $ 129 |
Residential Real Estate [Member] | Troubled Loan Modification [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | 123 | 129 |
Residential Real Estate [Member] | Current [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | 0 | 0 |
Residential Real Estate [Member] | 30-89 days [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | 0 | 0 |
Residential Real Estate [Member] | Greater than 90 days [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | 123 | 129 |
Commercial And Industrial And Residential Real Estate Portfolio Segment [Member] | Troubled Loan Modification [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | $ 123 | $ 189 |
Loans and Allowance for Credit Losses - Nonaccrual Loans by Loan Category (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual loans with no ACL | $ 618 | $ 676 | $ 707 |
Total nonaccrual loans | 2,086 | 1,581 | 1,723 |
Interest income recognized year to date on nonaccrual loans | 11 | 0 | 16 |
Commercial and Industrial [Member] | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual loans with no ACL | 0 | ||
Total nonaccrual loans | 1 | ||
Interest income recognized year to date on nonaccrual loans | 0 | ||
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual loans with no ACL | 0 | ||
Total nonaccrual loans | 4 | ||
Interest income recognized year to date on nonaccrual loans | 0 | ||
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual loans with no ACL | 356 | ||
Total nonaccrual loans | 356 | ||
Interest income recognized year to date on nonaccrual loans | 9 | ||
Residential Portfolio Segment [Member] | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual loans with no ACL | 262 | 676 | 707 |
Total nonaccrual loans | 1,726 | 1,581 | 1,722 |
Interest income recognized year to date on nonaccrual loans | $ 2 | $ 0 | $ 16 |
Loans and Allowance for Credit Losses - Aging Analysis of Loans by Loan Category (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
Financing Receivable, Past Due [Line Items] | ||||
Loans | $ 1,437,527 | $ 1,410,653 | ||
Loans, 90 Days Past Due and Accruing | 0 | 0 | ||
Agricultural [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 45,274 | 49,210 | ||
Loans, 90 Days Past Due and Accruing | 0 | 0 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 224,031 | 229,915 | ||
Loans, 90 Days Past Due and Accruing | 0 | 0 | ||
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 32,811 | 36,541 | ||
Loans, 90 Days Past Due and Accruing | 0 | 0 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 804,213 | 786,921 | ||
Loans, 90 Days Past Due and Accruing | 0 | 0 | ||
Construction Real Estate [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 18,751 | 20,936 | ||
Loans, 90 Days Past Due and Accruing | 0 | 0 | ||
Residential Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 275,878 | 267,730 | ||
Loans, 90 Days Past Due and Accruing | 0 | |||
Loans To Other Financial Institutions [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 36,569 | 19,400 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 1,762 | 959 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Agricultural [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 61 | 0 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 46 | 31 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 148 | 173 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Construction Real Estate [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 1,507 | 755 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Loans To Other Financial Institutions [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 361 | 551 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Agricultural [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 2 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Construction Real Estate [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 361 | 549 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Loans To Other Financial Institutions [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 858 | 871 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Agricultural [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 1 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 3 | 0 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 356 | 0 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Construction Real Estate [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 499 | 870 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Loans To Other Financial Institutions [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 2,981 | 2,381 | |
Financial Asset, Past Due [Member] | Agricultural [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, Past Due [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 61 | 1 | |
Financial Asset, Past Due [Member] | Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 49 | 33 | |
Financial Asset, Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 504 | 173 | |
Financial Asset, Past Due [Member] | Construction Real Estate [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, Past Due [Member] | Residential Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 2,367 | 2,174 | |
Financial Asset, Past Due [Member] | Loans To Other Financial Institutions [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 1,434,546 | 1,408,272 | ||
Financial Asset, Not Past Due [Member] | Agricultural [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 45,274 | 49,210 | ||
Financial Asset, Not Past Due [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 223,970 | 229,914 | ||
Financial Asset, Not Past Due [Member] | Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 32,762 | 36,508 | ||
Financial Asset, Not Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 803,709 | 786,748 | ||
Financial Asset, Not Past Due [Member] | Construction Real Estate [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 18,751 | 20,936 | ||
Financial Asset, Not Past Due [Member] | Residential Portfolio Segment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 273,511 | 265,556 | ||
Financial Asset, Not Past Due [Member] | Loans To Other Financial Institutions [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | $ 36,569 | $ 19,400 | ||
|
Earnings Per Share - Additional Information (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Share-Based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 6,000 | 15,000 | 4,500 | 15,000 |
Performance Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 5,125 |
Earnings Per Share - Schedule of Basic Earnings Per Share and Diluted 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 |
|
Net income | $ 6,586 | $ 5,213 | $ 12,220 | $ 10,846 |
Weighted average common shares outstanding (in shares) | 7,569,241 | 7,529,177 | 7,560,960 | 7,524,257 |
Basic earnings per common shares (in dollars per share) | $ 0.87 | $ 0.69 | $ 1.62 | $ 1.44 |
Net income | $ 6,586 | $ 5,213 | $ 12,220 | $ 10,846 |
Plus dilutive stock options and restricted stock units (in shares) | 35,722 | 22,720 | 37,255 | 28,335 |
Weighted average common shares outstanding and potentially dilutive shares (in shares) | 7,604,963 | 7,551,897 | 7,598,215 | 7,552,592 |
Diluted earnings per common share (in dollars per share) | $ 0.87 | $ 0.69 | $ 1.61 | $ 1.44 |
Financial Instruments - Summary of Financial Instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities at fair value | $ 7,502 | $ 7,505 |
Securities available for sale, at fair value (Note 2) | 491,670 | 514,598 |
Noninterest-bearing deposits | 517,137 | 547,625 |
Interest-bearing deposits | 1,582,365 | 1,550,985 |
Interest Rate Derivative Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate contracts | 23,629 | 8,880 |
Derivative instruments liabilities | 0 | 0 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 101,002 | 55,433 |
Equity securities at fair value | 7,502 | 7,505 |
Securities available for sale, at fair value (Note 2) | 491,670 | 514,598 |
Securities held to maturity | 392,699 | 407,959 |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock | 9,515 | 9,514 |
Loans held for sale | 5,946 | 4,710 |
Loans, net | 1,421,375 | 1,394,968 |
Accrued interest receivable | 10,441 | 10,066 |
Interest rate lock commitments | 23 | 64 |
Noninterest-bearing deposits | 517,137 | 547,625 |
Interest-bearing deposits | 1,582,365 | 1,550,985 |
Brokered deposits | 27,177 | 23,445 |
Borrowings | 210,000 | 200,000 |
Subordinated debentures | 35,630 | 35,507 |
Accrued interest payable | 5,120 | 6,223 |
Reported Value Measurement [Member] | Interest Rate Derivative Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate contracts | 23,629 | 8,880 |
Derivative instruments liabilities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 101,002 | 55,433 |
Equity securities at fair value | 7,502 | 7,505 |
Securities available for sale, at fair value (Note 2) | 491,670 | 514,598 |
Securities held to maturity | 332,583 | 348,791 |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock | 9,515 | 9,514 |
Loans held for sale | 6,124 | 4,851 |
Loans, net | 1,379,874 | 1,362,920 |
Accrued interest receivable | 10,441 | 10,066 |
Interest rate lock commitments | 23 | 64 |
Noninterest-bearing deposits | 517,137 | 547,625 |
Interest-bearing deposits | 1,580,436 | 1,549,386 |
Brokered deposits | 27,126 | 23,435 |
Borrowings | 209,286 | 199,743 |
Subordinated debentures | 31,942 | 31,748 |
Accrued interest payable | 5,120 | 6,223 |
Estimate of Fair Value Measurement [Member] | Interest Rate Derivative Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate contracts | 23,629 | 8,880 |
Derivative instruments liabilities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 101,002 | 55,433 |
Equity securities at fair value | 4,661 | 4,749 |
Securities available for sale, at fair value (Note 2) | 79,311 | 80,194 |
Securities held to maturity | 0 | 0 |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Interest rate lock commitments | 0 | 0 |
Noninterest-bearing deposits | 517,137 | 547,625 |
Interest-bearing deposits | 0 | 0 |
Brokered deposits | 0 | 0 |
Borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Interest Rate Derivative Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate contracts | 0 | 0 |
Derivative instruments liabilities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity securities at fair value | 0 | 0 |
Securities available for sale, at fair value (Note 2) | 412,359 | 434,404 |
Securities held to maturity | 319,702 | 335,493 |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock | 9,515 | 9,514 |
Loans held for sale | 6,124 | 4,851 |
Loans, net | 0 | 0 |
Accrued interest receivable | 10,441 | 10,066 |
Interest rate lock commitments | 23 | 64 |
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 1,580,436 | 1,549,386 |
Brokered deposits | 27,126 | 23,435 |
Borrowings | 209,286 | 199,743 |
Subordinated debentures | 31,942 | 31,748 |
Accrued interest payable | 5,120 | 6,223 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Derivative Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate contracts | 23,629 | 8,880 |
Derivative instruments liabilities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Equity securities at fair value | 2,841 | 2,756 |
Securities available for sale, at fair value (Note 2) | 0 | 0 |
Securities held to maturity | 12,881 | 13,298 |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 1,379,874 | 1,362,920 |
Accrued interest receivable | 0 | 0 |
Interest rate lock commitments | 0 | 0 |
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Brokered deposits | 0 | 0 |
Borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Derivative Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate contracts | 0 | 0 |
Derivative instruments liabilities | $ 0 | $ 0 |
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities at fair value | $ 7,502 | $ 7,505 |
Securities available for sale | 491,670 | 514,598 |
Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts | 23,629 | 8,880 |
Derivative instruments liabilities | 0 | 0 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 79,311 | 80,194 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 229,255 | 234,682 |
Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 173,058 | 188,501 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 205 | 204 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,841 | 11,017 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 491,670 | 514,598 |
Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts | 23,629 | 8,880 |
Derivative instruments liabilities | 0 | 0 |
Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities at fair value | 7,502 | 7,505 |
Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 79,311 | 80,194 |
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 229,255 | 234,682 |
Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 173,058 | 188,501 |
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 205 | 204 |
Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,841 | 11,017 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 79,311 | 80,194 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts | 0 | 0 |
Derivative instruments liabilities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities at fair value | 4,661 | 4,749 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 79,311 | 80,194 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 412,359 | 434,404 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts | 23,629 | 8,880 |
Derivative instruments liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 229,255 | 234,682 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 173,058 | 188,501 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 205 | 204 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,841 | 11,017 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts | 0 | 0 |
Derivative instruments liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities at fair value | 2,841 | 2,756 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - Equity Securities [Member] - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance | $ 2,756 | $ 2,542 |
Total realized and unrealized gains included in noninterest income | 52 | 60 |
Net purchases, sales, calls, and maturities | 33 | 98 |
Net transfers into Level 3 | 0 | 0 |
Balance | 2,841 | 2,700 |
Amount of total losses for the period included in earning attributable to the change in unrealized gains (losses)relating to assets and liabilities still held at June 30, | $ 12 | $ 0 |
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities purchased | $ 33,000 | $ 98,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net unrealized gain | $ 265,000 | $ 202,000 |
Fair Value Measurements - Assets Measured at Fair Value on a Non-recurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans | $ 923 | $ 387 |
Other Real Estate | 272 | 122 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans | 0 | 0 |
Other Real Estate | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans | 0 | 0 |
Other Real Estate | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans | 923 | 387 |
Other Real Estate | $ 272 | $ 122 |
Revenue from Contracts with Customers - Schedule of Noninterest Income Separated by Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Noninterest income from contracts with customers within the scope of ASC 606 | $ 3,171 | $ 2,794 | $ 6,135 | $ 5,578 |
Noninterest income within the scope of other GAAP topics | 912 | 691 | 1,999 | 1,578 |
Total noninterest income | 4,083 | 3,485 | 8,134 | 7,156 |
Service Charges and Fees on Deposit Accounts [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | 1,134 | 1,105 | 2,252 | 2,132 |
Interchange Income [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | 1,528 | 1,166 | 2,815 | 2,406 |
Investment Commission Income [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | 190 | 172 | 388 | 368 |
Trust Fee Income [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | 220 | 196 | 433 | 380 |
Other Charges and Fees for Customer Services [Member] | ||||
Noninterest income from contracts with customers within the scope of ASC 606 | $ 99 | $ 155 | $ 247 | $ 292 |
Derivative and Hedging Activities - Additional Information (Details) - Designated as Hedging Instrument [Member] $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
Interest
|
Jun. 30, 2022
USD ($)
Interest
|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
Interest
|
Mar. 31, 2023
USD ($)
|
|
Pay Floating Swap Agreement [Member] | Cash Flow Hedging [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, number of instruments held | Interest | 2 | |||||||
Derivative, notional amount | $ 200,000 | |||||||
Derivative, Fixed Coupon Rate | 2.41% | |||||||
Derivative instrument cash payment | $ 4,200 | |||||||
Pay Fixed Swap Agreement [Member] | Cash Flow Hedging [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, number of instruments held | Interest | 1 | |||||||
Derivative, notional amount | $ 49,100 | $ 200,000 | $ 49,100 | |||||
Derivative, Fixed Coupon Rate | 2.75% | |||||||
Derivative, Term of Contract (Year) | 8 years | 9 years | ||||||
Pay Fixed Swap Agreement [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative Instruments, Net settlements received | $ 974,000 | $ 974,000 | ||||||
Pay Fixed Swap Agreement [Member] | Cash Flow Hedging [Member] | Interest Income [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative Instruments, Net settlements received | $ 989,000 | $ 798,000 | $ 2,000 | $ 1,400 | ||||
Pay Fixed Swap Agreement [Member] | Cash Flow Hedging [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Basis Spread on Variable Rate | 3.403% | 3.403% | ||||||
Pay Fixed Swap Agreement [Member] | Fair Value Hedging [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, number of instruments held | Interest | 4 | 4 | ||||||
Derivative, notional amount | $ 201,000 | $ 201,000 | ||||||
Pay Fixed Swap Agreements Expiring in 2032 [Member] | Fair Value Hedging [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | $ 101,900 | $ 101,900 | ||||||
Derivative, Term of Contract (Year) | 10 years | |||||||
Pay Fixed Swap Agreements Expiring in 2032 [Member] | Fair Value Hedging [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Basis Spread on Variable Rate | 3.39% | 3.39% | ||||||
The 3.4015 Percent Pay Fixed Swap Agreement [Member] | Fair Value Hedging [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | $ 50,000 | $ 50,000 | ||||||
Derivative, Term of Contract (Year) | 9 years | |||||||
The 3.4015 Percent Pay Fixed Swap Agreement [Member] | Fair Value Hedging [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Basis Spread on Variable Rate | 3.4015% | 3.4015% |
Derivative and Hedging Activities - Schedule of Derivatives Instruments in Balance Sheet Location (Details) - Interest Rate Contract [Member] - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts | $ 23,629 | $ 8,880 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Interest rate contracts | $ 0 | $ 0 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Derivative and Hedging Activities - Location and Amount of Gain (Loss) in Income on Fair Value and Cash Flow Hedging Relationships (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Interest Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded | $ 800 | $ (137) | $ 858 | $ (504) |
Interest Income [Member] | Interest Rate Contract, Hedged Items [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
The effects of fair value and cash flow hedging: | (1,664) | (6,753) | (6,986) | (731) |
Interest Income [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
The effects of fair value and cash flow hedging: | 1,680 | 6,705 | 6,945 | 745 |
Interest Income [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 0 | 0 | 0 | 0 |
Interest Income [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | (205) | (887) | (1,092) | (1,043) |
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 0 | 0 | 0 | 0 |
Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded | 974 | 0 | 974 | 0 |
Interest Expense [Member] | Interest Rate Contract, Hedged Items [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
The effects of fair value and cash flow hedging: | 0 | 0 | 0 | 0 |
Interest Expense [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
The effects of fair value and cash flow hedging: | 0 | 0 | 0 | 0 |
Interest Expense [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 0 | 0 | 0 | 0 |
Interest Expense [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | 0 | 0 | 0 |
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives and Hedging Activities - Schedule of Cumulative Basis Adjustments on Hedged Items Designated as Fair Value Hedges and Related Amortized Cost (Details) - Designated as Hedging Instrument [Member] $ in Thousands |
Jun. 30, 2024
USD ($)
|
---|---|
Interest rate contracts | $ 221,452 |
Cumulative amount of discontinued cash flow hedge | $ (7,383) |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Securities available for sale |
Borrowings - Schedule of Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Federal Home Loan Bank Advances Maturing July 2025 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total advances outstanding at year-end | $ 20,000 | $ 20,000 |
Federal Home Loan Bank Advances Maturing January 2026 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total advances outstanding at year-end | 10,000 | 0 |
Federal Home Loan Bank Advances Maturing December 2026 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total advances outstanding at year-end | 10,000 | 10,000 |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total advances outstanding at year-end | $ 40,000 | $ 30,000 |
Borrowings - Schedule of Federal Home Loan Bank Advances (Parentheticals) (Details) |
Jun. 30, 2024 |
---|---|
Federal Home Loan Bank Advances Maturing July 2025 [Member] | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Interest rate | 4.88% |
Federal Home Loan Bank Advances Maturing January 2026 [Member] | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Interest rate | 4.35% |
Federal Home Loan Bank Advances Maturing December 2026 [Member] | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Interest rate | 4.20% |
Borrowings - Schedule of Bank Term Funding Program Advances (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Bank Term Funding Program Maturity Of May 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total advances outstanding at year-end | $ 0 | $ 160,000 |
Bank Term Funding Program Maturity Of December 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total advances outstanding at year-end | 0 | 10,000 |
Bank Term Funding Program Maturity of January 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Total advances outstanding at year-end | 170,000 | 0 |
Bank Term Funding Program Advances [Member] | ||
Debt Instrument [Line Items] | ||
Total advances outstanding at year-end | $ 170,000 | $ 170,000 |
Borrowings - Schedule of Bank Term Funding Program Advances (Parenthetical) (Details) |
Jun. 30, 2024 |
---|---|
Bank Term Funding Program Maturity Of May 2024 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 4.71% |
Bank Term Funding Program Maturity Of December 2024 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 4.83% |
Bank Term Funding Program Maturity of January 2025 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 4.76% |
Borrowings - Additional Information (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Federal home loan bank, advances, general debt obligations, amount of available, unused funds | $ 90.5 | ||
Federal reserve bank advances, eligible borrowing capacity | 669.0 | ||
Securities [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Federal home loan bank, advances, general debt obligations, disclosures, collateral pledged | $ 278.5 | ||
Federal reserve bank , general debt obligations, disclosures, collateral pledged | 510.0 | 526.4 | |
Loans [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Federal reserve bank , general debt obligations, disclosures, collateral pledged | 460.3 | 433.2 | |
Line of Credit [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 20.0 | ||
Long-term line of credit | $ 0.0 | ||
Line of Credit [Member] | Prime Rate [Member] | Minimum [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Debt instrument, basis spread on variable rate | 3.25% | 8.50% | |
Agricultural and Residential Real Estate [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Federal home loan bank, advances, general debt obligations, disclosures, collateral pledged | $ 196.0 | $ 191.1 |
Subsequent Events (Details) $ / shares in Units, $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jul. 26, 2024
USD ($)
$ / shares
shares
|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jul. 25, 2024
USD ($)
Office
shares
|
Dec. 31, 2023
USD ($)
|
|
Subsequent Events [Abstract] | |||||
Gross proceeds from ssuance of common stock | $ 115 | $ 116 | |||
Consolidated total assets | $ 2,623,067 | $ 2,576,706 | |||
Plan [Member] | |||||
Subsequent Events [Abstract] | |||||
Consolidated total assets | $ 4,300,000 | ||||
Number of offices after combination is completed | Office | 56 | ||||
Subsequent Event [Member] | |||||
Subsequent Events [Abstract] | |||||
Shares issued (in shares) | shares | 1,380,000 | ||||
Sales price per share (in dollars per share) | $ / shares | $ 25 | ||||
Gross proceeds from ssuance of common stock | $ 34,500 | ||||
Number of shares each share of Fentura common stock outstanding will be converted into (in shares) | shares | 1.35 | ||||
Subsequent Event [Member] | Over-Allotment Option [Member] | |||||
Subsequent Events [Abstract] | |||||
Shares issued (in shares) | shares | 180,000 |
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