FIRST KEYSTONE CORP, 10-Q filed on 8/9/2024
Quarterly Report
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Document And Entity Information - shares
 6 Months Ended
Jun. 30, 2024
Aug. 07, 2024
Document And Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
Document Transition Report false  
Entity File Number 000-21344  
Entity Registrant Name FIRST KEYSTONE CORPORATION  
Entity Incorporation, State or Country Code PA  
Entity Tax Identification Number 23-2249083  
Entity Address, Address Line One 111 West Front Street  
Entity Address, City or Town Berwick  
Entity Address, State or Province PA  
Entity Address, Postal Zip Code 18603  
City Area Code 570  
Local Phone Number 752-3671  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   6,185,395
Entity Central Index Key 0000737875  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Amendment Flag false  
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CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2024
Dec. 31, 2023
ASSETS    
Cash and due from banks $ 14,292,000 $ 9,462,000
Interest-bearing deposits in other banks 1,979,000 7,551,000
Total cash and cash equivalents 16,271,000 17,013,000
Debt securities available-for-sale, at fair value 403,589,000 392,968,000
Marketable equity securities, at fair value 1,288,000 1,482,000
Restricted investment in bank stocks, at cost 11,493,000 10,885,000
Loans 922,189,000 910,864,000
Loans held for sale 305,000 214,000
Allowance for credit losses (7,687,000) (6,925,000)
Net loans 914,807,000 904,153,000
Premises and equipment, net 19,678,000 19,611,000
Operating lease right-of-use assets 1,453,000 1,472,000
Accrued interest receivable 5,328,000 5,201,000
Cash surrender value of bank owned life insurance 26,336,000 26,010,000
Investments in low-income housing partnerships 5,562,000 5,961,000
Goodwill 0 19,133,000
Deferred income taxes 9,351,000 8,695,000
Other assets 3,072,000 3,286,000
TOTAL ASSETS 1,418,228,000 1,415,870,000
LIABILITIES    
Non-interest bearing 206,004,000 198,569,000
Interest bearing 778,205,000 781,870,000
Total deposits 984,209,000 980,439,000
Short-term borrowings 175,311,000 153,468,000
Long-term borrowings 122,000,000 122,000,000
Subordinated debentures 25,000,000 25,000,000
Operating lease liabilities 1,965,000 1,976,000
Accrued interest payable 3,698,000 2,823,000
Other liabilities 4,951,000 8,549,000
TOTAL LIABILITIES 1,317,134,000 1,294,255,000
STOCKHOLDERS' EQUITY    
Preferred stock, par value $2.00 per share; authorized 1,000,000 shares as of June 30, 2024 and December 31, 2023; issued 0 as of June 30, 2024 and December 31, 2023 0 0
Common stock, par value $2.00 per share; authorized 20,000,000 shares as of June 30, 2024 and December 31, 2023; issued 6,417,006 as of June 30, 2024 and 6,352,665 as of December 31, 2023; outstanding 6,185,395 as of June 30, 2024 and 6,121,054 as of December 31, 2023 12,834,000 12,705,000
Surplus 44,740,000 44,004,000
Retained earnings 79,826,000 100,260,000
Accumulated other comprehensive loss (30,597,000) (29,645,000)
Treasury stock, at cost, 231,611 shares as of June 30, 2024 and December 31, 2023 (5,709,000) (5,709,000)
TOTAL STOCKHOLDERS' EQUITY 101,094,000 121,615,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,418,228,000 $ 1,415,870,000
v3.24.2.u1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2024
Dec. 31, 2023
CONSOLIDATED BALANCE SHEETS    
Preferred stock, par value (in dollars per share) $ 2.00 $ 2.00
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, shares issued 0 0
Common stock, par value (in dollars per share) $ 2.00 $ 2.00
Common stock, shares authorized 20,000,000 20,000,000
Common stock, shares issued 6,417,006 6,352,665
Common stock, shares outstanding 6,185,395 6,121,054
Treasury stock, shares 231,611 231,611
v3.24.2.u1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
INTEREST INCOME        
Interest and fees on loans $ 12,371,000 $ 10,379,000 $ 24,391,000 $ 20,290,000
Interest and dividend income on securities:        
Taxable 4,666,000 2,833,000 9,007,000 5,701,000
Tax-exempt 279,000 261,000 552,000 611,000
Dividends 12,000 12,000 24,000 24,000
Dividend income on restricted investment in bank stocks 243,000 162,000 478,000 326,000
Interest on interest-bearing deposits in other banks 22,000 4,000 87,000 6,000
Total interest income 17,593,000 13,651,000 34,539,000 26,958,000
INTEREST EXPENSE        
Interest on deposits 6,019,000 3,833,000 11,973,000 6,884,000
Interest on short-term borrowings 2,021,000 2,302,000 3,987,000 4,349,000
Interest on long-term borrowings 1,278,000 134,000 2,556,000 266,000
Interest on subordinated debt 274,000 274,000 547,000 547,000
Total interest expense 9,592,000 6,543,000 19,063,000 12,046,000
Net interest income 8,001,000 7,108,000 15,476,000 14,912,000
Provision for credit losses 510,000 34,000 774,000 34,000
Net interest income after provision for credit losses 7,491,000 7,074,000 14,702,000 14,878,000
NON-INTEREST INCOME        
Trust department 254,000 248,000 498,000 478,000
Service charges and fees 568,000 571,000 1,093,000 1,096,000
Increase in cash surrender value of life insurance 164,000 153,000 326,000 302,000
ATM fees and debit card income 565,000 566,000 1,082,000 1,098,000
Net gains on sales of mortgage loans 17,000 17,000 28,000 34,000
Net securities losses (10,000) (69,000) (194,000) (125,000)
Other 63,000 53,000 132,000 108,000
Total non-interest income 1,621,000 1,539,000 2,965,000 2,991,000
NON-INTEREST EXPENSE        
Salaries and employee benefits 4,153,000 3,733,000 8,707,000 8,119,000
Occupancy, net 536,000 559,000 1,101,000 1,087,000
Furniture and equipment expense 150,000 156,000 302,000 308,000
Computer expense 340,000 406,000 709,000 769,000
Professional services 466,000 346,000 899,000 781,000
Pennsylvania shares tax 244,000 241,000 450,000 482,000
FDIC insurance, net 218,000 178,000 406,000 354,000
ATM and debit card fees 258,000 278,000 480,000 585,000
Data processing fees 235,000 357,000 524,000 669,000
Advertising 163,000 154,000 267,000 228,000
Goodwill impairment     19,133,000 0
Other 903,000 749,000 1,833,000 1,528,000
Total non-interest expense 7,666,000 7,157,000 34,811,000 14,910,000
Income before income tax (benefit) expense 1,446,000 1,456,000 (17,144,000) 2,959,000
Income tax expense (benefit) 66,000 317,000 (147,000) 463,000
NET INCOME (LOSS) $ 1,380,000 $ 1,139,000 $ (16,997,000) $ 2,496,000
Net income (loss) per share:        
Basic $ 0.23 $ 0.19 $ (2.77) $ 0.41
Diluted 0.23 0.19 (2.77) 0.41
Dividends per share $ 0.28 $ 0.28 $ 0.56 $ 0.56
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME        
Net (loss) income $ 1,380,000 $ 1,139,000 $ (16,997,000) $ 2,496,000
Other comprehensive income:        
Unrealized net holding gains (losses) on debt securities available-for-sale arising during the period, net of income tax expense (benefit) (3,295,000) (3,736,000) (3,962,000) 120,000
Less reclassification adjustment for net gains included in net income, net of income taxes of $(0) and $(21), respectively (a) (b)       (78,000)
Fair value adjustment on derivatives, net of income tax benefit 617,000 0 3,010,000  
Total other comprehensive (loss) income (2,678,000) (3,736,000) (952,000) 42,000
Total comprehensive (loss) income $ (1,298,000) $ (2,597,000) $ (17,949,000) $ 2,538,000
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME        
Other comprehensive income, unrealized Holding gain (loss) on securities arising during period, income tax $ (875,000) $ (993,000) $ (1,053,000) $ 32,000
Other comprehensive income, reclassification adjustment from AOCI for sale of securities, income tax     0 (21,000)
Other comprehensive income, fair value adjustment on derivatives, income tax $ 167,000 $ 0 $ 753,000 $ 0
v3.24.2.u1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
Common Stock
Surplus
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Retained Earnings
Accumulated Other Comprehensive Loss
Treasury Stock
Cumulative Effect, Period of Adoption, Adjustment
Total
Balance at Dec. 31, 2022 $ 12,502,000 $ 42,439,000   $ 100,712,000 $ (29,558,000) $ (5,709,000)   $ 120,386,000
Balance (in shares) at Dec. 31, 2022 6,250,763              
Net (loss) income       1,357,000       1,357,000
Other comprehensive income, net of taxes         3,778,000     3,778,000
Issuance of common stock under dividend reinvestment plan $ 41,000 381,000           422,000
Issuance of common stock under dividend reinvestment plan (in shares) 20,787              
Dividends       (1,685,000)       (1,685,000)
Balance at Mar. 31, 2023 $ 12,543,000 42,820,000 $ 768,000 101,152,000 (25,780,000) (5,709,000) $ 768,000 125,026,000
Balance (in shares) at Mar. 31, 2023 6,271,550              
Balance at Dec. 31, 2022 $ 12,502,000 42,439,000   100,712,000 (29,558,000) (5,709,000)   120,386,000
Balance (in shares) at Dec. 31, 2022 6,250,763              
Net (loss) income               2,496,000
Other comprehensive income, net of taxes               42,000
Balance at Jun. 30, 2023 $ 12,593,000 43,217,000   100,600,000 (29,516,000) (5,709,000)   121,185,000
Balance (in shares) at Jun. 30, 2023 6,296,383              
Balance at Mar. 31, 2023 $ 12,543,000 42,820,000 $ 768,000 101,152,000 (25,780,000) (5,709,000) $ 768,000 125,026,000
Balance (in shares) at Mar. 31, 2023 6,271,550              
Net (loss) income       1,139,000       1,139,000
Other comprehensive income, net of taxes         (3,736,000)     (3,736,000)
Issuance of common stock under dividend reinvestment plan $ 50,000 397,000           447,000
Issuance of common stock under dividend reinvestment plan (in shares) 24,833              
Dividends       (1,691,000)       (1,691,000)
Balance at Jun. 30, 2023 $ 12,593,000 43,217,000   100,600,000 (29,516,000) (5,709,000)   121,185,000
Balance (in shares) at Jun. 30, 2023 6,296,383              
Balance at Dec. 31, 2023 $ 12,705,000 44,004,000   100,260,000 (29,645,000) (5,709,000)   121,615,000
Balance (in shares) at Dec. 31, 2023 6,352,665              
Net (loss) income       (18,377,000)       (18,377,000)
Other comprehensive income, net of taxes         1,726,000     1,726,000
Issuance of common stock under dividend reinvestment plan $ 65,000 396,000           461,000
Issuance of common stock under dividend reinvestment plan (in shares) 32,229              
Dividends       (1,714,000)       (1,714,000)
Balance at Mar. 31, 2024 $ 12,770,000 44,400,000   80,169,000 (27,919,000) (5,709,000)   103,711,000
Balance (in shares) at Mar. 31, 2024 6,384,894              
Balance at Dec. 31, 2023 $ 12,705,000 44,004,000   100,260,000 (29,645,000) (5,709,000)   121,615,000
Balance (in shares) at Dec. 31, 2023 6,352,665              
Net (loss) income               (16,997,000)
Other comprehensive income, net of taxes               (952,000)
Balance at Jun. 30, 2024 $ 12,834,000 44,740,000   79,826,000 (30,597,000) (5,709,000)   101,094,000
Balance (in shares) at Jun. 30, 2024 6,417,006              
Balance at Mar. 31, 2024 $ 12,770,000 44,400,000   80,169,000 (27,919,000) (5,709,000)   103,711,000
Balance (in shares) at Mar. 31, 2024 6,384,894              
Net (loss) income       1,380,000       1,380,000
Other comprehensive income, net of taxes         (2,678,000)     (2,678,000)
Issuance of common stock under dividend reinvestment plan $ 64,000 340,000           404,000
Issuance of common stock under dividend reinvestment plan (in shares) 32,112              
Dividends       (1,723,000)       (1,723,000)
Balance at Jun. 30, 2024 $ 12,834,000 $ 44,740,000   $ 79,826,000 $ (30,597,000) $ (5,709,000)   $ 101,094,000
Balance (in shares) at Jun. 30, 2024 6,417,006              
v3.24.2.u1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 3 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY        
Cash dividends, per share $ 0.28 $ 0.28 $ 0.28 $ 0.28
v3.24.2.u1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net (loss) income $ (16,997,000) $ 2,496,000
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Provision for credit losses on loans 774,000 34,000
Provision for credit losses on unfunded commitments 29,000 45,000
Goodwill impairment 19,133,000 0
Depreciation and amortization 553,000 540,000
Net premium amortization on securities 285,000 799,000
Deferred income tax (benefit) expense (357,000) 34,000
Common stock issued 855,000 856,000
Net gains on sales of mortgage loans (28,000) (34,000)
Proceeds from sales of mortgage loans originated for sale 1,599,000 1,121,000
Originations of mortgage loans originated for sale (1,662,000) (1,016,000)
Net securities losses 194,000 125,000
(Increase) decrease in accrued interest receivable (127,000) 218,000
Increase in cash surrender value of bank owned life insurance (326,000) (302,000)
Net losses on disposals of premises and equipment 2,000 2,000
Decrease (increase) in other assets 201,000 (87,000)
Amortization of investment in low-income housing partnerships 409,000 106,000
Increase in accrued interest payable 875,000 608,000
Increase (decrease) increase in other liabilities 122,000 (5,188,000)
NET CASH PROVIDED BY OPERATING ACTIVITIES 5,534,000 357,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Proceeds from sales of equity securities and debt securities available-for-sale 0 23,230,000
Proceeds from maturities and redemptions of debt securities available-for-sale 42,518,000 17,987,000
Purchases of debt securities available-for-sale (58,439,000) 0
Net change in restricted investment in bank stocks (608,000) (1,481,000)
Net increase in loans (11,337,000) (12,873,000)
Purchase of premises and equipment (576,000) (1,251,000)
Purchase of investment in real estate venture (10,000) (1,834,000)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (28,452,000) 23,778,000
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net increase (decrease) in deposits 3,770,000 (57,658,000)
Net increase in short-term borrowings 21,843,000 39,941,000
Repayment of finance lease obligations 0 (5,000)
Dividends paid (3,437,000) (3,376,000)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 22,176,000 (21,098,000)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (742,000) 3,037,000
CASH AND CASH EQUIVALENTS, BEGINNING 17,013,000 10,738,000
CASH AND CASH EQUIVALENTS, ENDING 16,271,000 13,775,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest paid 18,188,000 11,438,000
Income taxes paid 0 209,000
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES    
Common stock subscription receivable 10,000 13,000
Right-of-use assets obtained in exchange for lease liabilities $ 33,000 $ 33,000
v3.24.2.u1
BASIS OF PRESENTATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND SUBSEQUENT EVENTS
 6 Months Ended
Jun. 30, 2024
BASIS OF PRESENTATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND SUBSEQUENT EVENTS  
BASIS OF PRESENTATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND SUBSEQUENT EVENTS

NOTE 1 ― BASIS OF PRESENTATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND SUBSEQUENT EVENTS

The consolidated financial statements include the accounts of First Keystone Corporation (the “Corporation”) and its wholly owned subsidiary First Keystone Community Bank (the “Bank”) (collectively the “Company”). All significant intercompany accounts and transactions have been eliminated.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included. Operating results for the three and six months ended June 30, 2024, are not necessarily indicative of the results for the year ending December 31, 2024. For further information, refer to the consolidated financial statements and notes thereto included in First Keystone Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023.

Subsequent Events

The Company has evaluated events and transactions occurring subsequent to the consolidated balance sheet date of June 30, 2024 for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.

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RECENT ACCOUNTING STANDARDS UPDATES ("ASU")
 6 Months Ended
Jun. 30, 2024
RECENT ACCOUNTING STANDARDS UPDATES ("ASU")  
RECENT ACCOUNTING STANDARDS UPDATES ("ASU")

NOTE 2 ― RECENT ACCOUNTING STANDARDS UPDATES (“ASU”)

Adopted ASUs:

There were no ASUs adopted during the first half of 2024.

Pending ASUs:

In December of 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires enhanced income tax disclosures related to the rate reconciliation and information related to income taxes paid. The ASU was issued to enhance transparency and decision usefulness of income tax disclosures. The standard requires: 1. consistent categories and greater disaggregation of information in the rate reconciliation, and 2. income taxes paid, net of refunds received, disaggregated by jurisdiction based on an established threshold. The amendments in this ASU will be applied on a prospective basis and retrospective application is permitted. The amendments in this update are effective for public business entities for fiscal years, and interim periods within those fiscal years beginning after December 15, 2024. Early adoption is permitted for all entities in any interim period. The Company is currently evaluating the provisions of ASU 2023-09 and does not expect the adoption of the standard to have a material impact on the Company’s financial statements.

​
v3.24.2.u1
SECURITIES
 6 Months Ended
Jun. 30, 2024
SECURITIES  
SECURITIES

NOTE 3 — SECURITIES

Debt Securities

The Company classifies its securities as either “Held-to-Maturity” or “Available-for-Sale” at the time of purchase. Securities are accounted for on a trade date basis. Debt securities are classified as Held-to-Maturity when the Company has the ability and positive intent to hold the securities to maturity. Securities classified as Held-to-Maturity are carried at cost adjusted for amortization of premium and accretion of discount to maturity. At June 30, 2024 and December 31, 2023, all debt securities held were classified as available-for-sale.

Debt securities not classified as Held-to-Maturity are included in the Available-for-Sale category and are carried at fair value. The amount of any unrealized gain or loss, net of the effect of deferred income taxes, is reported as accumulated other comprehensive loss in the consolidated balance sheets and consolidated statements of changes in stockholders’ equity. Management’s decision to sell Available-for-Sale securities is based on changes in economic conditions, controlling the sources and applications of funds, terms, availability of and yield of alternative investments, interest rate risk and the need for liquidity.

The cost of debt securities classified as Held-to-Maturity or Available-for-Sale is adjusted for amortization of premiums to the earliest call date and accretion of discounts to expected maturity. Such amortization and accretion, as well as interest and dividends, are included in interest and dividend income from securities. Realized gains and losses are included in net securities gains and losses. The cost of securities sold, redeemed or matured is based on the specific identification method.

The Corporation invests in various forms of agency debt including residential and commercial mortgage-backed
securities and callable debt. The mortgage-backed agency securities are issued by Federal Home Loan Mortgage
Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”), Government National Mortgage
Association (“GNMA”) or Small Business Administration (“SBA”). The other mortgage-backed securities consist of private (non-agency) residential and commercial mortgage-backed securities. The municipal securities consist of general obligations and revenue bonds. Asset-backed securities consist of private (non-agency) student loan pools backed by the Federal Family Education LoanProgram (“FFELP”) which carry a 97% federal government guarantee. Corporate debt securities consist of senior debt and subordinated debt holdings.

There was no allowance for credit losses for Available-For-Sale debt securities as of June 30, 2024; therefore, it is not present in the table below. The amortized cost, related estimated fair value, and unrealized gains and losses for debt securities classified as Available-For-Sale were as follows at June 30, 2024 and December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt Securities Available-for-Sale

(Dollars in thousands)

    

​

​

    

Gross

    

Gross

    

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

June 30, 2024:

​

Cost

​

Gains

​

Losses

​

Value

U.S. Treasury securities

​

$

7,896

​

$

—

​

$

(893)

​

$

7,003

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

​

​

 

​

​

 

​

​

 

​

Mortgage-backed

​

​

157,735

​

​

35

​

​

(15,395)

​

​

142,375

Other

​

 

5,949

​

 

95

​

 

(41)

​

 

6,003

Other mortgage backed securities

​

 

51,082

​

 

109

​

 

(2,563)

​

 

48,628

Obligations of state and political subdivisions

​

 

95,673

​

 

15

​

 

(11,047)

​

 

84,641

Asset-backed securities

​

 

85,262

​

 

289

​

 

(480)

​

 

85,071

Corporate debt securities

​

 

38,011

​

 

92

​

 

(8,235)

​

 

29,868

Total

​

$

441,608

​

$

635

​

$

(38,654)

​

$

403,589

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt Securities Available-for-Sale

(Dollars in thousands)

    

​

​

    

Gross

    

Gross

    

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

December 31, 2023:

​

Cost

​

Gains

​

Losses

​

Value

U.S. Treasury securities

​

$

7,881

​

$

—

​

$

(840)

​

$

7,041

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

​

​

 

​

​

 

​

​

 

​

Mortgage-backed

​

​

152,510

​

​

—

​

​

(14,518)

​

​

137,992

Other

​

 

7,560

​

 

126

​

 

(54)

​

 

7,632

Other mortgage backed securities

​

 

36,623

​

 

168

​

 

(2,741)

​

 

34,050

Obligations of state and political subdivisions

​

 

97,899

​

 

18

​

 

(10,214)

​

 

87,703

Asset-backed securities

​

 

82,852

​

 

150

​

 

(840)

​

 

82,162

Corporate debt securities

​

 

40,647

​

 

74

​

 

(4,333)

​

 

36,388

Total

​

$

425,972

​

$

536

​

$

(33,540)

​

$

392,968

​

Debt securities Available-for-Sale with an aggregate fair value of $326,659,000 at June 30, 2024 and $249,114,000 at December 31, 2023, were pledged to secure public funds, trust funds, securities sold under agreements to repurchase and the Federal Discount Window aggregating $184,259,000 at June 30, 2024 and $182,050,000 at December 31, 2023.

The amortized cost and estimated fair value of debt securities, by contractual maturity, are shown below at June 30, 2024. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

​

​

​

​

Debt Securities Available-For-Sale

(Dollars in thousands)

​

​

​

​

U.S. Government

​

Other

​

Obligations

​

​

​

​

​

​

​

​

​

​

​

Agency &

​

Mortgage

​

of State

​

Asset

​

Corporate

​

 

U.S. Treasury

 

Sponsored Agency

 

Backed Debt

 

& Political

 

Backed

 

Debt

​

    

Securities

    

Obligations1

    

Securities1

    

Subdivisions

    

Securities

    

Securities

Within 1 Year:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Amortized cost

​

$

—

​

$

—

​

$

2,950

​

$

5,590

​

$

—

​

$

—

Fair value

​

 

—

​

 

—

​

 

2,925

​

 

5,511

​

 

—

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1 - 5 Years:

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost

​

 

7,896

​

 

6,939

​

 

1,202

​

 

14,293

​

 

—

​

 

1,244

Fair value

​

 

7,003

​

 

6,898

​

 

1,157

​

 

13,743

​

 

—

​

 

1,212

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

5 - 10 Years:

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost

​

 

—

​

 

4,624

​

 

1,378

​

 

26,245

​

 

4,648

​

 

31,678

Fair value

​

 

—

​

 

4,692

​

 

1,376

​

 

22,576

​

 

4,622

​

 

28,217

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

After 10 Years:

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost

​

 

—

​

 

152,121

​

 

45,552

​

 

49,545

​

 

80,614

​

 

5,089

Fair value

​

 

—

​

 

136,788

​

 

43,170

​

 

42,811

​

 

80,449

​

 

439

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Amortized cost

​

$

7,896

​

$

163,684

​

$

51,082

​

$

95,673

​

$

85,262

​

$

38,011

Fair value

​

 

7,003

​

 

148,378

​

 

48,628

​

 

84,641

​

 

85,071

​

 

29,868

1

Mortgage-backed securities are allocated for maturity reporting at their original maturity date.

​

At June 30, 2024 and December 31, 2023, the Corporation had holdings of securities from the following issuers in excess of ten percent of consolidated stockholders’ equity (excluding holdings of the U.S. Government and U.S. Government Agencies and Corporations).

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

 

​

​

Fair

 

June 30, 2024:

​

Value

 

Issuer

​

​

​

​

Sallie Mae Bank

​

$

29,712

​

Velocity Commercial Capital

​

​

25,583

​

Nelnet Student Loan Trust

​

 

16,904

​

Navient Student Loan Trust

​

​

11,739

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

​

​

​

Fair

​

December 31, 2023:

​

Value

​

Issuer

​

​

​

​

Sallie Mae Bank

​

$

25,737

​

Nelnet Student Loan Trust

​

 

15,486

​

Navient Student Loan Trust

​

​

13,179

​

​

There were no proceeds from sales of Debt Securities Available-For-Sale for the three months ended June 30, 2024 and 2023. Therefore, there were no gains or losses realized during these periods.

Proceeds from sales of Debt Securities Available-For-Sale for the six months ended June 30, 2024 and 2023 were $0 and $23,230,000, respectively. Gross gains realized on these sales were $0 and $447,000, respectively. Gross losses on these sales were $0 and $348,000 respectively.

The summary below shows the gross unrealized losses and fair value of the Company’s debt securities. Totals are aggregated by investment category where individual securities have been in a continuous loss position for less than 12 months or 12 months or more as of June 30, 2024 and December 31, 2023:

June 30, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Less Than 12 Months

​

12 Months or More

​

Total

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

Available-for-Sale:

    

Value

    

Loss

    

Value

    

Loss

    

Value

    

Loss

U.S. Treasury securities

​

$

—

​

$

—

​

$

7,003

​

$

(893)

​

$

7,003

​

$

(893)

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Mortgage-backed

​

​

27,412

​

​

(138)

​

​

101,754

​

​

(15,257)

​

​

129,166

​

​

(15,395)

Other

​

 

—

​

​

—

​

​

2,416

​

​

(41)

​

 

2,416

​

 

(41)

Other mortgage-backed debt securities

​

 

20,636

​

​

(363)

​

​

21,224

​

​

(2,200)

​

 

41,860

​

 

(2,563)

Obligations of state and political subdivisions

​

 

1,246

​

​

(9)

​

​

80,387

​

​

(11,038)

​

 

81,633

​

 

(11,047)

Asset-backed securities

​

 

30,739

​

​

(134)

​

​

7,019

​

​

(346)

​

 

37,758

​

 

(480)

Corporate debt securities

​

 

4,259

​

​

(4,868)

​

​

24,742

​

​

(3,367)

​

 

29,001

​

 

(8,235)

Total

​

$

84,292

​

$

(5,512)

​

$

244,545

​

$

(33,142)

​

$

328,837

​

$

(38,654)

​

​

December 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Less Than 12 Months

​

12 Months or More

​

Total

​

    

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

Available-for-Sale:

​

Value

​

Loss

​

Value

​

Loss

​

Value

​

Loss

U.S. Treasury securities

​

$

—

​

$

—

​

$

7,041

​

$

(840)

​

$

7,041

​

$

(840)

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Mortgage-backed

​

​

23,103

​

​

(242)

​

​

102,608

​

​

(14,276)

​

​

125,711

​

​

(14,518)

Other

​

 

—

​

​

—

​

​

3,029

​

​

(54)

​

 

3,029

​

 

(54)

Other mortgage-backed debt securities

​

 

1,568

​

​

(1)

​

​

25,042

​

​

(2,740)

​

 

26,610

​

 

(2,741)

Obligations of state and political subdivisions

​

 

—

​

​

—

​

​

82,113

​

​

(10,214)

​

 

82,113

​

 

(10,214)

Asset-backed securities

​

 

52,862

​

​

(342)

​

​

12,726

​

​

(498)

​

 

65,588

​

 

(840)

Corporate debt securities

​

 

2,813

​

​

(270)

​

​

30,501

​

​

(4,063)

​

 

33,314

​

 

(4,333)

Total

​

$

80,346

​

$

(855)

​

$

263,060

​

$

(32,685)

​

$

343,406

​

$

(33,540)

​

There were 178 individual debt securities in an unrealized loss position as of June 30, 2024, with a combined decline in value representing 8.61% of the debt securities portfolio. There were 177 individual debt securities in an unrealized loss position as of December 31, 2023, with their combined decline in value representing 7.75% of the debt securities portfolio.

Available-for-sale debt securities are required to be individually evaluated for impairment in accordance with ASC 326, Financial Instruments – Credit Losses. Management evaluates debt securities for impairment where there has been a decline in fair value below the amortized cost basis of a debt security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the debt security. The credit loss component would be recognized through the provision for credit losses and the creation of an allowance for credit losses. Consideration is given to (1) the financial condition and near-term prospects of the issuer, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) our intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or whether it is more-likely-than-not that we will be required to sell the debt security prior to recovering its fair value, (5) the anticipated outlook for changes in the general level of interest rates, (6) credit ratings, (7) third party guarantees, and (8) collateral values. In analyzing an issuer’s financial condition, management considers whether the debt securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the debt securities. All issues of U.S. Treasury and Agency-Backed debt securities have the full faith and credit backing of the United States Government or one of its agencies. All other debt securities that do not have a zero expected credit loss are evaluated quarterly to determine whether there is a credit loss associated with a decline in fair value.

The Company made a policy election to exclude accrued interest receivable from the amortized cost basis of debt securities available for sale. Accrued interest receivable on debt securities available for sale is reported as a component of accrued interest receivable on the Company’s consolidated balance sheet and totaled $2,383,000 as of June 30, 2024. Accrued interest receivable on debt securities available for sale is excluded from the estimate of credit losses.

All debt securities available for sale in an unrealized loss position, as of June 30, 2024, continue to perform as scheduled and we do not believe that there is a credit loss or that a provision for credit losses is necessary. Also, as part of our evaluation of our intent and ability to hold debt securities for a period of time sufficient to allow for any anticipated recovery in the market, we consider our investment strategies, cash flow needs, liquidity position, capital

adequacy and interest rate risk position. We do not currently intend to sell the debt securities within the portfolio and it is not more-likely-than-not that we will be required to sell the debt securities.

Management continues to monitor all of our debt securities with a high degree of scrutiny. There can be no assurance that we will not conclude in future periods that conditions existing at that time indicate some or all of its debt securities may be sold or would require a charge to earnings as a provision for credit losses in such periods.

Equity Securities

In accordance with ASC 825-10, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. Equity securities without readily determinable fair values are recorded at cost less impairment, if any.

At June 30, 2024 and December 31, 2023, the Company had $1,288,000 and $1,482,000, respectively, in equity securities recorded at fair value. The following is a summary of realized gains and losses recognized in net income on equity securities during the six months ended June 30, 2024 and 2023:

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Six months ended

​

Six months ended

​

​

    

June 30, 2024

    

June 30, 2023

    

Net losses from market value fluctuations recognized during the period on equity securities

​

$

(194)

​

$

(224)

​

Less: Net gains recognized during the period on equity securities sold during the period

​

 

—

​

 

—

​

Net losses recognized during the reporting period on equity securities still held at the reporting date

​

$

(194)

​

$

(224)

​

​

Management evaluates equity securities for impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Equity securities without readily determinable fair values are generally evaluated for impairment under FASB ASC 321, Equity Securities. In determining impairment under the FASB ASC 321 model, management considers many factors, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the equity security or more likely than not will be required to sell the equity security before its anticipated recovery. The assessment of whether an impairment exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. If an impairment loss on an equity security is considered to exist, a loss in the amount of the difference between the cost and fair value of the security is recognized. Once the impairment is recorded, this becomes the new cost basis of the equity security and cannot be adjusted upward if there is a subsequent recovery in the fair value of the security.

The Company monitors the equity securities portfolio monthly with particular attention given to securities in a continuous loss position of at least ten percent for over twelve months. Based on the factors described above, management did not consider any equity securities to be impaired at June 30, 2024 or December 31, 2023.
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2024
LOANS AND ALLOWANCE FOR CREDIT LOSSES  
LOANS AND ALLOWANCE FOR CREDIT LOSSES

NOTE 4 — LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loans

Net loans are stated at their outstanding recorded investment, net of deferred fees and costs, unearned income and the allowance for credit losses. Interest on loans is recognized as income over the term of each loan, generally, by the accrual method. Loan origination fees and certain direct loan origination costs have been deferred with the net amount amortized using the straight line method or the interest method over the contractual life of the related loans as an interest yield adjustment.

The loans receivable portfolio is segmented into the following segments: Real Estate (including both commercial and residential loans), Agricultural, Commercial and Industrial, Consumer, and State and Political Subdivisions.

Real Estate Lending

The Company engages in real estate lending to commercial borrowers in its primary market area and surrounding areas. The commercial component of the Company’s Real Estate portfolio is secured primarily by commercial retail space, commercial office buildings, residential housing and hotels. Generally, these loans have terms that do not exceed twenty years, have loan-to-value ratios of up to eighty percent of the value of the collateral property, and are typically supported by personal guarantees of the borrowers.

In underwriting these loans, the Company performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. The value of the property is determined by either independent appraisers or internal evaluations performed by Bank officers.

Real estate loans secured by commercial properties generally present a higher level of risk than loans secured by residential real estate. Repayment of loans secured by commercial real estate is typically dependent upon the successful operation of the related real estate project and/or the effect of the general economic conditions on income producing properties.

The residential component of the Company’s Real Estate portfolio is comprised of one-to-four family residential mortgage loan originations, home equity term loans and home equity lines of credit. These loans are generated by the Company’s marketing efforts, its present customers, walk-in customers and referrals. These loans are originated primarily with customers from the Company’s market area.

The Company’s one-to-four family residential mortgage originations are secured principally by properties located in its primary market area and surrounding areas. The Company offers fixed-rate mortgage loans with terms up to a maximum of thirty years for both permanent structures and those under construction. Loans with terms of thirty years are normally held for sale and sold without recourse; most of the residential mortgages held in the Company’s residential real estate portfolio have maximum terms of twenty years. Generally, the majority of the Company’s residential mortgage loans originate with a loan-to-value of eighty percent or less, or those with private mortgage insurance at ninety-five percent or less. Home equity term loans are secured by the borrower’s primary residence and typically have a maximum loan-to-value of eighty percent and a maximum term of fifteen years. In general, home equity lines of credit are secured by the borrower’s primary residence with a maximum loan-to-value of eighty percent and a maximum term of twenty years.

In underwriting one-to-four family residential mortgage loans, the Company evaluates the borrower’s ability to make monthly payments, the borrower’s prior loan repayment history and the value of the property securing the loan. The ability and willingness to repay is assessed based upon the borrower’s employment history, current financial conditions and credit background. A majority of the properties securing residential real estate loans made by the Company are appraised by independent appraisers. The Company generally requires mortgage loan borrowers to obtain an attorney’s title opinion or title insurance and fire and property insurance, including flood insurance, if applicable.

Residential mortgage loans, home equity term loans and home equity lines of credit generally present a lower level of risk than consumer loans because they are secured by the borrower’s primary residence. Risk is increased when the Company is in a subordinate position, especially to another lender, for the loan collateral.

Residential mortgage loans held for sale are carried at the lower of cost or market on an aggregate basis determined by independent pricing from appropriate federal or state agency investors. These loans are sold without recourse. Loans held for sale amounted to $305,000 and $214,000 at June 30, 2024 and December 31, 2023, respectively.

Agricultural Lending

The Company originates agricultural loans to individuals in the farming industry for funding the production of crops or to purchase or refinance capital assets such as farmland, livestock, machinery, equipment, and farm real estate improvements. Agricultural loans are typical secured by collateral related to the farming activities. These loans originate from customers within the Company’s primary market area or the surrounding areas.

In underwriting agricultural loans, an analysis is performed regarding the borrower’s ability to repay the loan, the borrower’s capital and collateral, and the past, present, and future cash flows of the borrower, as well as the agricultural industry as a whole. In general, these loans would be secured by cropland, pastureland, orchardland, or timberland that is committed to ongoing management and agricultural production, with a maximum loan-to-value ratio of seventy percent and a maximum term of ten years.

Commercial and Industrial Lending

The Company originates commercial and industrial loans principally to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes, which include short-term loans and lines of credit to finance machinery and equipment, inventory and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and are reviewed annually.

Commercial and industrial loans are generally secured with short-term assets; however, in many cases, additional collateral such as real estate is provided as additional security for the loan. Loan-to-value maximum thresholds have been established by the Company and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, business financial statements, collateral appraisals or internal evaluations, etc. Commercial and industrial loans are typically supported by personal guarantees of the borrower.

In underwriting commercial and industrial loans, an analysis is performed to evaluate the borrower’s character and capacity to repay the loan, the adequacy of the borrower’s capital and collateral, as well as the conditions affecting the borrower. Evaluation of the borrower’s past, present and future cash flows is also an important aspect of the Company’s analysis of the borrower’s ability to repay.

Commercial and industrial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions. Commercial and industrial loans are typically made on the basis of the borrower’s ability to make repayment from cash flows from the borrower’s primary business activities. As a result, the availability of funds for the repayment of commercial and industrial loans is dependent on the success of the business itself, which in turn, is likely to be dependent upon the general economic environment.

As an addition to the commercial loans receivable portfolio, the Company may purchase the guaranteed portion of loans secured by the U.S. Government. The originating bank retains the unguaranteed portion of the loan. The loans are sponsored by one of the various government agencies including the SBA, United States Department of Agriculture (“USDA”), and the Farm Service Agency (“FSA”). Government Guaranteed Loans ("GGLs") carry no credit risk due to an unconditional and irrevocable guarantee (which is supported by the full faith and credit of the U.S. Government) on all principal and the balance of interest accruing through ninety days beyond the date that demand is made to the originating bank for repurchase of the loan. As of June 30, 2024, the Company's balance of GGLs was $4,380,000, compared to $4,470,000 at December 31, 2023.

Consumer Lending

The Company offers a variety of secured and unsecured consumer loans, including vehicle loans, stock secured loans and loans secured by financial institution deposits. These loans originate primarily with customers from the Company’s market area.

Consumer loan terms vary according to the type and value of collateral and creditworthiness of the borrower. In underwriting personal loans, a thorough analysis is performed regarding the borrower’s willingness and financial ability to repay the loan as agreed. The ability and willingness to repay is assessed based upon the borrower’s employment history, current financial condition and credit background.

Consumer loans may entail greater credit risk than residential real estate loans, particularly in the case of personal loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, repossessed collateral for a defaulted personal loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, personal loan collections are dependent on the borrower’s continuing financial stability and therefore, are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans.

State and Political Subdivisions Lending

The Company, from time to time, may originate loans to state and political subdivisions that are within the Company’s primary market area or surrounding areas. These loans may be either taxable or tax-free. These loans may be issued for the purpose of land improvement, infrastructure changes, bond refinances, or the purchase of equipment. State and political loans are typically secured by the taxing power of the borrowing entity. In some cases, the loans may also be secured by the property/item being purchased. Audited financial statements are required as part of the underwriting for all state and political loans and a full analysis of all components of the audited statements is performed. If the loan is to be classified as tax-free, a letter from the entity’s solicitor stating such is required, as well.

The risk associated with these types of loans is considerably less than commercial loan transactions. Repayment is based on the full faith, credit, and ability of the borrowing entity to tax and then collect the payments. Delinquency or loss on these types of loans is de minimus.

Delinquent Loans

Generally, a loan is considered to be past-due when scheduled loan payments are in arrears 10 days or more. Delinquent notices are generated automatically when a loan is 10 or 15 days past-due, depending on loan type. Collection efforts continue on past-due loans that have not been brought current, when it is believed that some chance exists for improvement in the status of the loan. Past-due loans are continually evaluated with the determination for charge-off being made when no reasonable chance remains that the status of the loan can be improved.

Commercial and industrial loans and real estate loans issued for commercial purpose are charged off in whole or in part when they become sufficiently delinquent based upon the terms of the underlying loan contract and when a collateral deficiency exists. Because all or part of the contractual cash flows are not expected to be collected, the loan is considered to be impaired, and the Company estimates the impairment based on its analysis of the cash flows or collateral estimated at fair value less cost to sell. Should a GGL default, demand is made to the originating bank for repurchase of the loan. If the originating bank does not repurchase the loan, demand for repurchase is then made to the appropriate government agency which has provided the guarantee for the loan.

Real estate loans issued for residential purposes and consumer loans are charged off when they become sufficiently delinquent based upon the terms of the underlying loan contract and when the value of the underlying collateral is not sufficient to support the loan balance and a loss is expected. At that time, the amount of estimated collateral deficiency, if any, is charged off for loans secured by collateral, and all other loans are charged off in full. Loans with collateral are written down to the estimated fair value of the collateral less cost to sell.

Existing loans in which the borrower has declared bankruptcy are considered on a case by case basis to determine whether repayment is likely to occur (e.g. reaffirmation by the borrower with demonstrated repayment ability). Otherwise, loans are charged off in full or written down to the estimated fair value of collateral less cost to sell.

Generally, a loan is classified as non-accrual and the accrual of interest on such a loan is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest. A loan may remain on accrual status if it is well secured (or supported by a strong guarantee) and in the process of collection. When a loan is placed on non-accrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against interest income. Certain non-accrual loans may continue to perform; that is, payments are still being received. Generally, the payments are applied to principal. These loans remain under constant scrutiny, and if performance continues, interest income may be recorded on a cash basis based on management's judgment regarding the collectability of principal.

Allowance for Credit Losses - Loans

The allowance for credit losses (“ACL”) is an estimate of losses arising from borrowers’ inability to make loan payments as required, which is calculated via a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio. The Company completed a one-time adjustment on January 1, 2023 to decrease the ACL at the adoption of ASU 2016-13 through retained earnings, but all subsequent adjustments will be established through provisions for credit losses charged against income. Loans deemed to be uncollectible are charged against the ACL and subsequent recoveries, if any, are credited to the allowance.

The ACL is maintained at a level estimated by management to be adequate to absorb potential loan losses. Management’s periodic evaluation of the adequacy of the ACL is based on specific expectations for the future economic environment that are incorporated in the projection, with loss expectations to revert to the long-run historical mean after such time as management can make or obtain a reasonable and supportable forecast. Management also considers the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may impact the borrower’s ability to repay (including the timing of future payments), the estimated value of any underlying collateral (if the loan is collateral dependent), composition of the loan portfolio, and other relevant factors. This evaluation is inherently subjective as it requires material estimates based on management’s judgment regarding the projection of expected credit losses over the contractual lifetime of the loans.

Modeling of the ACL uses sophisticated statistical techniques to arrive at reasonable and supportable forecasts of expected losses. The Company has contracted with a third-party vendor to assist in developing models for the ACL related to the Company’s loan portfolio under ASU 2016-13. The Company has opted to utilize the Weighted Average Remaining Maturity (“WARM”) method to calculate the ACL which uses an average annual charge-off rate. This average annual charge-off rate contains loss content over several vintages and is used as a foundation for estimating the credit loss content for loans by segmented pools at the balance sheet date and is used to determine a historical charge-off rate. When estimating expected credit losses, the Company considers forward-looking information that is reasonable, supportable, and relevant to assessing the collectability of cash flows. Reasonable and supportable forecasts may extend over the entire contractual term of a loan or a period shorter than the contractual term. Reasonable and supportable forecasts may vary by portfolio segment or individual forecast input. These forecasts may include data from internal sources, external sources, or a combination of both.

When the contractual term of a loan extends beyond the reasonable and supportable period, ASC Topic 326 requires reverting to historical loss information, or an appropriate proxy, for those periods beyond the reasonable and supportable forecast period (often referred to as the reversion period). The Company may revert to historical loss information for each individual forecast input or based on the entire estimate of loss. Reversion to historical loss information may be immediate, occur on a straight-line basis, or use any systematic/rational method. Management may apply different reversion techniques depending on the economic environment or applicable loan portfolio.

The methodology used to determine the ACL also includes a qualitative component in which the Company adjusts expected credit loss estimates for information not already captured in the loss estimation process. These qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Changes in the level of the Company’s ACL may not always be directionally consistent with changes in the level of qualitative factor adjustments due to the incorporation of reasonable and supportable forecasts in estimating expected losses. Management considers qualitative factors that are relevant to the Company as of the reporting date, which may include but are not limited to: 1) changes in lending policies and procedures, including changes in underwriting standards and collection,

charge-off, and recovery practices not considered elsewhere; 2) changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the loan portfolio, including the condition of various market segments; 3) changes in the nature and volume of the loan portfolio; 4) changes in the experience, ability, and depth of management and other relevant staff; 5) changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans; 6) changes in the quality of the Company’s loan review system; 7) changes in the value of underlying collateral for collateral dependent loans; 8) the existence and effect of any concentrations of credit and changes in the level of such concentrations; and 9) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing loan portfolio.

The Company’s ACL is calculated by collectively evaluating and individually evaluating loans. The Company collectively evaluates applicable loans based on segments according to their homogeneous characteristics, aligned with the segmentation of the FDIC Bank Call Report. The Company collectively evaluates loans and determines applicable loss rates based on the following segments/classes:

Real Estate

◾Construction, land development, and other land loans
◾Residential construction (loans to build homes, both speculative and owner-occupied, and 1-4 family lot loans)
◾Agribusiness, farmland, or secured by farmland
◾Revolving, open-end, 1-4 family residential properties (and extended under lines of credit)
◾Loans secured by first liens
◾Loans secured by junior liens
◾Secured by multifamily (5 or more) residential properties
◾Loans secured by owner occupied, non-farm, non-residential properties
◾Loans secured by other non-farm, non-residential properties

Agricultural

◾Loans to finance agricultural production and other loans for farmers

Commercial and Industrial

◾Commercial and industrial loans

Consumer

◾Other revolving credit plans
◾Automobile loans
◾Other consumer loans

State and Political Subdivisions

◾Obligations (other than securities or leases) of states and political subdivisions in the U.S.

​

In accordance with ASC 326-20-30-2, the Company will evaluate individual loans for expected credit losses when the loans do not share similar risk characteristics with loans evaluated using the collective method. Management may evaluate loans on an individual basis even when no specific expectation of collectability is in place. Loans deemed to be impaired are specifically identified and measured for impairment. A loan is deemed to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the loan agreement. Loans to be considered for impairment include all non-accrual loans or any other selected loans where full collection is unlikely. Factors considered by management in determining impairment include payment status and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior

payment record, and the amount of the shortfall in relation to the principal and interest owed. Once identified as impaired, the loans are measured individually for impairment based on one of the following methods:

•

The present value of expected cash flows, discounted at the loan’s effective interest rate (i.e. the contractual interest rate adjusted for any net deferred loan fees or costs, premium, or discount existing at the origination or acquisition of the loan)

•

The loan’s observable market price

•

The fair value of the collateral if the loan is deemed to be collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the liquidation of the underlying collateral and there are no other available and reliable sources of repayment. Management will consider estimated costs to sell, on a discounted basis, in the measurement of impairment if these costs are expected to reduce the cash flows available to repay the loan. Any portion of the recorded investment for a collateral dependent loan (including any capitalized accrued interest, net deferred loan fees or costs, and unamortized premium or discount) exceeding the fair value of the collateral that can be identified as uncollectible is deemed a confirmed loss and will be charged off against the ACL

Loans that have been individually measured for impairment may have a portion of the allowance allocated to cover the calculated amount of impairment as determined by the methods listed above, referred to as a specific allocation. Loans individually evaluated for impairment may also have a zero specific allocation if the loans are deemed to have no impairment, or if the amount of the impairment will be charged off.

ASU 2022-02, Loan Modifications Experiencing Financial Difficulty, eliminated the accounting guidance for Troubled Debt Restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. In accordance with the new guidance, the Company no longer evaluates loans with modifications made to borrowers experiencing financial difficulty individually for impairment, nor establishes a related specific reserve for such loans, but rather these loans are included in their respective portfolio segment and evaluated collectively for impairment to establish an allowance for credit losses. Any modifications of loans to borrowers experiencing financial difficulty that are classified as non-accrual or are otherwise designated as collateral dependent are individually evaluated for determination of expected credit losses.

​

The most common types of concessions granted upon modification of a loan to a borrower experiencing financial difficulties include: (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, and (d) a reduction in the contractual payment amount for either a short period or for the remaining term of the loan. A less common concession would be forgiveness of a portion of the loan’s principal. Loans so modified remain collectively evaluated for determination of expected credit losses, unless, during the process of evaluation, it is determined that the loan should be placed on non-accrual status until the Company determines that future collection of principal and interest is reasonably assured or the loan is otherwise deemed to be collateral dependent.

​

There may be certain types of loans for which the expectation of credit loss is zero after evaluating historical loss information, making necessary adjustments for current conditions and reasonable and supportable forecasts, and considering any collateral or guarantee arrangements that are not free-standing contracts. Factors considered by management when evaluating whether expectations of zero credit loss are appropriate may include, but are not limited to: 1) a long history of zero credit loss; 2) full securitization by cash or cash equivalents; 3) high credit ratings from rating agencies with no expected future downgrade; 4) principal and interest payments that are guaranteed by the U.S. government; 5) the issuer, guarantor, or sponsor can print its own currency and the currency is held by other central banks as reserve currency; and 6) the interest rate on the security is recognized as a risk-free rate.

A loan that is fully secured by cash or cash equivalents, such as a certificate of deposit issued by the lending institution, would likely have zero credit loss expectations. Similarly, the guaranteed portion of an SBA loan purchased on the secondary market through the SBA’s fiscal and transfer agent would likely have zero credit loss expectations because these financial assets are unconditionally guaranteed by the U.S. government.

ASC Topic 326 introduces the concept of purchased credit deteriorated (“PCD”) assets. PCD assets are acquired financial assets that, at acquisition, have experienced more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The Company does not possess loans classified as purchased credit deterioration at this time. Should the Company acquire purchased loans, these loans will be evaluated to determine if they are PCD.

A reserve for unfunded lending commitments is provided for possible credit losses on off-balance sheet credit exposures. Off-balance sheet credit exposures primarily include undrawn portions of revolving lines of credit and standby letters of credit. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and, if necessary, is recorded in other liabilities on the consolidated balance sheets. As of June 30, 2024 and December 31, 2023, the amount of the reserve for unfunded lending commitments was $196,000 and $166,000, respectively.

The Company made a policy election to exclude accrued interest receivable from the amortized cost basis of loans. Accrued interest receivable on loans is reported as a component of accrued interest receivable on the Company’s consolidated balance sheet and totaled $2,650,000 as of June 30, 2024 compared to $2,476,000 at December 31, 2023. Accrued interest receivable on loans is excluded from the estimate of credit losses.

The Company is subject to periodic examination by its federal and state examiners, and may be required by such regulators to recognize additions to the ACL based on their assessment of credit information available to them at the time of their examinations.

The Company utilizes a risk grading matrix as a tool for managing credit risk in the loan portfolio and assigns an asset quality rating (risk grade) to all loans. An asset quality rating is assigned using the guidance provided in the Company’s loan policy. Primary responsibility for assigning the asset quality rating rests with the credit department. The asset quality rating is validated periodically by both an internal and external loan review process.

The commercial loan grading system focuses on a borrower’s financial strength and performance, experience and depth of management, primary and secondary sources of repayment, the nature of the business and the outlook for the particular industry. Primary emphasis is placed on financial condition and trends. The grade also reflects current economic and industry conditions; as well as other variables such as liquidity, cash flow, revenue/earnings trends, management strengths or weaknesses, quality of financial information, and credit history.

The loan grading system for residential real estate secured and consumer loans focuses on the borrower’s credit score and credit history, debt-to-income ratio and income sources, collateral position and loan-to-value ratio.

Risk grade characteristics are as follows:

Risk Grade 1 – MINIMAL RISK through Risk Grade 6 – MANAGEMENT ATTENTION (Pass Grade Categories)

Risk is evaluated via examination of several attributes including but not limited to financial trends, strengths and weaknesses, likelihood of repayment when considering both cash flow and collateral, sources of repayment, leverage position, management expertise, and repayment history.

At the low-risk end of the rating scale, a risk grade of 1 – Minimal Risk is the grade reserved for loans with exceptional credit fundamentals and virtually no risk of default or loss. Loan grades then progress through escalating ratings of 2 through 6 based upon risk. Risk Grade 2 – Modest Risk are loans with sufficient cash flows; Risk Grade 3 – Average Risk are loans with key balance sheet ratios slightly above the borrower’s peers; Risk Grade 4 – Acceptable Risk are loans with key balance sheet ratios usually near the borrower’s peers, but one or more ratios may be higher; and Risk Grade 5 – Marginally Acceptable are loans with strained cash flow, increasing leverage and/or weakening markets. Risk Grade 6 – Management Attention are loans with weaknesses resulting from declining performance trends and the borrower’s cash flows may be temporarily strained. Loans in this category are performing according to terms, but present some type of potential concern.

Risk Grade 7 − SPECIAL MENTION (Non-Pass Category)

Assets in this category are adequately collateralized but have potential weakness which may, if not checked or corrected, weaken the asset or inadequately protect the Company’s credit position at some future date. The loans may constitute increased credit risk, but not to the point of justifying a classification of substandard. No loss of principal or interest is envisioned, but risk is increasing beyond that at which the loan originally would have been granted. Historically, cash flows are inconsistent; financial trends show some deterioration. Liquidity and leverage are above industry averages. Financial information could be incomplete or inadequate. A Special Mention asset has potential weaknesses that deserve management’s close attention.

Risk Grade 8 − SUBSTANDARD (Non-Pass Category)

Generally, these assets are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have “well-defined” weaknesses that jeopardize the full liquidation of the debt.

These loans are characterized by the distinct possibility that the Company will sustain some loss if the aggregate amount of substandard assets is not fully covered by the liquidation of the collateral used as security. Substandard loans have a high probability of payment default and require more intensive supervision by Company management.

Risk Grade 9 − DOUBTFUL (Non-Pass Category)

Generally, loans graded doubtful have all the weaknesses inherent in a substandard loan with the added factor that the weaknesses are pronounced to a point whereby the basis of current information, conditions, and values, collection or liquidation in full is deemed to be highly improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to strengthen the asset, its classification is deferred until, for example, a proposed merger, acquisition, liquidation procedure, capital injection, perfection of liens on additional collateral and/or refinancing plan is completed. Loans are graded doubtful if they contain weaknesses so serious that collection or liquidation in full is questionable.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

The following tables present the classes of the loan portfolio summarized by risk rating and year of origination and year-to-date gross charge-offs by loan portfolio summarized by year of origination as of June 30, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

43,114

$

112,968

$

179,049

$

126,902

$

106,892

$

232,070

$

800,995

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

81

​

225

​

3,589

​

18,759

​

22,654

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

84

​

74

​

150

​

143

​

107

​

10

​

568

Total Real Estate Loans

$

43,198

$

113,042

$

179,280

$

127,270

$

110,588

$

250,839

$

824,217

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agricultural:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

35

$

243

$

51

$

—

$

—

$

658

$

987

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

—

​

—

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

1

​

2

​

—

​

—

​

—

​

—

​

3

Total Agricultural Loans

$

36

$

245

$

51

$

—

$

—

$

658

$

990

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial and Industrial:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

5,010

$

13,015

$

9,565

$

5,202

$

3,879

$

27,216

$

63,887

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

20

​

636

​

656

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

43

​

82

​

70

​

9

​

12

​

200

​

416

Total Commercial and
Industrial Loans

$

5,053

$

13,097

$

9,635

$

5,211

$

3,911

$

28,052

$

64,959

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

1,682

$

1,877

$

966

$

727

$

125

$

794

$

6,171

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

10

​

10

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

22

​

27

​

14

​

5

​

1

​

—

​

69

Total Consumer Loans

$

1,704

$

1,904

$

980

$

732

$

126

$

804

$

6,250

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

State and Political Subdivisions:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

—

$

843

$

4,095

$

14,139

$

1,857

$

5,135

$

26,069

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

—

​

—

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

—

​

2

​

1

​

4

​

1

​

1

​

9

Total State and Political Subdivision Loans

$

—

$

845

$

4,096

$

14,143

$

1,858

$

5,136

$

26,078

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

49,841

$

128,946

$

193,726

$

146,970

$

112,753

$

265,873

$

898,109

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

81

​

225

​

3,609

​

19,405

​

23,320

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

150

​

187

​

235

​

161

​

121

​

211

​

1,065

Total Loans

$

49,991

$

129,133

$

194,042

$

147,356

$

116,483

$

285,489

$

922,494

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

Gross Charge Offs:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate

$

—

$

—

$

—

$

—

$

—

$

—

$

—

Agricultural

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Commercial and Industrial

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Consumer

​

—

​

5

​

12

​

5

​

6

​

5

​

33

State and Political Subdivisions

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Total Gross Charge Offs

$

—

$

5

$

12

$

5

$

6

$

5

$

33

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

110,819

$

186,729

$

132,724

$

110,038

$

54,543

$

192,686

$

787,539

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

86

​

587

​

3,661

​

9,452

​

9,598

​

23,384

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

130

​

176

​

153

​

116

​

(13)

​

8

​

570

Total Real Estate Loans

$

110,949

$

186,991

$

133,464

$

113,815

$

63,982

$

202,292

$

811,493

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agricultural:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

—

$

59

$

—

$

—

$

—

$

611

$

670

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

—

​

—

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

—

​

1

​

—

​

—

​

—

​

—

​

1

Total Agricultural Loans

$

—

$

60

$

—

$

—

$

—

$

611

$

671

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial and Industrial:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

12,672

$

10,186

$

5,776

$

7,439

$

6,833

$

22,927

$

65,833

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

650

​

650

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

95

​

83

​

24

​

17

​

208

​

(1)

​

426

Total Commercial and
Industrial Loans

$

12,767

$

10,269

$

5,800

$

7,456

$

7,041

$

23,576

$

66,909

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

2,415

$

1,238

$

926

$

206

$

110

$

802

$

5,697

7    Special Mention

​

58

​

—

​

—

​

—

​

—

​

—

​

58

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

—

​

—

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

38

​

20

​

8

​

2

​

1

​

—

​

69

Total Consumer Loans

$

2,511

$

1,258

$

934

$

208

$

111

$

802

$

5,824

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

State and Political Subdivisions:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

731

$

4,095

$

14,139

$

1,905

$

—

$

5,303

$

26,173

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

—

​

—

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

2

​

1

​

4

​

1

​

—

​

—

​

8

Total State and Political Subdivision Loans

$

733

$

4,096

$

14,143

$

1,906

$

—

$

5,303

$

26,181

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

126,637

$

202,307

$

153,565

$

119,588

$

61,486

$

222,329

$

885,912

7    Special Mention

​

58

​

—

​

—

​

—

​

—

​

—

​

58

8    Substandard

​

—

​

86

​

587

​

3,661

​

9,452

​

10,248

​

24,034

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

265

​

281

​

189

​

136

​

196

​

7

​

1,074

Total Loans

$

126,960

$

202,674

$

154,341

$

123,385

$

71,134

$

232,584

$

911,078

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

Gross Charge Offs:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate

$

—

$

—

$

—

$

—

$

—

$

—

$

—

Agricultural

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Commercial and Industrial

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Consumer

​

2

​

23

​

13

​

2

​

4

​

13

​

57

State and Political Subdivisions

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Total Gross Charge Offs

$

2

$

23

$

13

$

2

$

4

$

13

$

57

​

State and Political Subdivision Loans include loans categorized as tax-free in the amount of $26,078,000 at June 30, 2024 and $26,181,000 at December 31, 2023. Commercial and Industrial Loans include $4,380,000 of GGLs as of June 30, 2024 and $4,470,000 of GGLs as of December 31, 2023. Loans held for sale are included in the Real Estate Loans category and amounted to $305,000 at June 30, 2024 and $214,000 at December 31, 2023.

The activity in the allowance for credit losses by loan class is summarized below for the three and six months ended June 30, 2024 and 2023 and the year ended December 31, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

    

​

    

​

    

​

    

State and

    

​

​

​

Real

​

​

​

Commercial

​

​

​

Political

​

​

​

​

Estate

​

Agricultural

​

and Industrial

​

Consumer

​

Subdivisions

​

Total

As of and for the three months ended June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for Credit Losses:

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Beginning balance

$

6,725

​

$

1

​

$

322

​

$

85

​

$

63

​

$

7,196

Charge-offs

 

—

​

 

—

​

 

—

​

 

(21)

​

 

—

​

 

(21)

Recoveries

 

1

​

 

—

​

 

1

​

 

—

​

 

—

​

 

2

Provision

 

480

​

 

1

​

​

2

​

​

27

​

​

—

​

​

510

Ending Balance

$

7,206

​

$

2

​

$

325

​

$

91

​

$

63

​

$

7,687

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

    

​

    

​

    

​

    

State and

    

​

​

​

Real

​

​

​

Commercial

​

​

​

Political

​

​

​

​

Estate

​

Agricultural

​

and Industrial

​

Consumer

​

Subdivisions

​

Total

As of and for the six months ended June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning balance January 1, 2024

$

6,539

​

$

1

​

$

265

​

$

78

​

$

42

​

$

6,925

Charge-offs

 

—

​

 

—

​

 

—

​

 

(33)

​

 

—

​

 

(33)

Recoveries

 

19

​

 

—

​

 

1

​

 

1

​

 

—

​

 

21

Provision

 

648

​

 

1

​

 

59

​

 

45

​

 

21

​

 

774

Ending Balance

$

7,206

​

$

2

​

$

325

​

$

91

​

$

63

​

$

7,687

Ending balance: individually

 

  

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

7,206

​

$

2

​

$

325

​

$

91

​

$

63

​

$

7,687

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reserve for Unfunded Lending Commitments

$

159

​

$

—

​

$

36

​

$

—

​

$

1

​

$

196

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans Receivable:

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Ending Balance

$

824,217

​

$

990

​

$

64,959

​

$

6,250

​

$

26,078

​

$

922,494

Ending balance: individually

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

3,929

​

$

309

​

$

611

​

$

—

​

$

—

​

$

4,849

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

820,288

​

$

681

​

$

64,348

​

$

6,250

​

$

26,078

​

$

917,645

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

Real

    

​

    

Commercial

    

​

​

    

​

Political

    

​

​

​

Estate

​

Agricultural

​

and Industrial

​

Consumer

​

Subdivisions

​

Total

As of and for the three months ended June 30, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for Loan Losses:

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Beginning balance

$

6,735

​

$

1

​

$

265

​

$

93

​

$

48

​

$

7,142

Charge-offs

 

—

​

 

—

​

 

—

​

 

(21)

​

 

—

​

 

(21)

Recoveries

 

1

​

 

—

​

 

1

​

 

—

​

​

—

​

 

2

Provision (credit)

 

18

​

 

—

​

​

2

​

​

17

​

​

(3)

​

​

34

Ending Balance

$

6,754

​

$

1

​

$

268

​

$

89

​

$

45

​

$

7,157

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

Real

​

​

​

Commercial

​

​

​

Political

​

​

​

​

Estate

​

Agricultural

​

and Industrial

​

Consumer

​

Subdivisions

​

Total

As of and for the six months ended June 30, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for Credit Losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning balance December 31, 2022

$

7,483

​

$

6

​

$

504

​

$

84

​

$

197

​

$

8,274

CECL adoption adjustment

​

(717)

​

​

(4)

​

​

(261)

​

​

11

​

​

(148)

​

​

(1,119)

Beginning balance January 1, 2023

​

6,766

​

​

2

​

​

243

​

​

95

​

​

49

​

​

7,155

Charge-offs

 

—

​

 

—

​

 

—

​

 

(38)

​

 

—

​

 

(38)

Recoveries

 

2

​

 

—

​

 

2

​

 

2

​

 

—

​

 

6

(Credit) Provision

 

(14)

​

 

(1)

​

 

23

​

 

30

​

 

(4)

​

 

34

Ending Balance

$

6,754

​

$

1

​

$

268

​

$

89

​

$

45

​

$

7,157

Ending balance: individually

 

  

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

6,754

​

$

1

​

$

268

​

$

89

​

$

45

​

$

7,157

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reserve for Unfunded Lending Commitments

$

225

​

$

—

​

$

35

​

$

—

​

$

—

​

$

260

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans Receivable:

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Ending Balance

$

774,688

​

$

862

​

$

61,313

​

$

6,129

​

$

28,247

​

$

871,239

Ending balance: individually

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

4,445

​

$

309

​

$

644

​

$

—

​

$

—

​

$

5,398

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

770,243

​

$

553

​

$

60,669

​

$

6,129

​

$

28,247

​

$

865,841

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

    

​

    

​

    

​

    

State and

    

​

​

​

Real

​

​

​

Commercial

​

​

​

Political

​

​

​

​

Estate

​

Agricultural

​

and Industrial

​

Consumer

​

Subdivisions

​

Total

As of and for the year ended December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for Credit Losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at December 31, 2022

$

7,483

​

$

6

​

$

504

​

$

84

​

$

197

​

$

8,274

CECL adoption adjustment

​

(717)

​

​

(4)

​

​

(261)

​

​

11

​

​

(148)

​

​

(1,119)

Beginning balance January 1, 2023

​

6,766

​

​

2

​

​

243

​

​

95

​

​

49

​

​

7,155

Charge-offs

 

—

​

 

—

​

 

—

​

 

(57)

​

 

—

​

 

(57)

Recoveries

 

37

​

 

—

​

 

2

​

 

5

​

 

—

​

 

44

(Credit) Provision

 

(264)

​

 

(1)

​

 

20

​

 

35

​

 

(7)

​

 

(217)

Ending Balance

$

6,539

​

$

1

​

$

265

​

$

78

​

$

42

​

$

6,925

Ending balance: individually

 

  

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

6,539

​

$

1

​

$

265

​

$

78

​

$

42

​

$

6,925

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reserve for Unfunded Lending Commitments

$

140

​

$

—

​

$

25

​

$

—

​

$

1

​

$

166

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans Receivable:

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Ending Balance

$

811,493

​

$

671

​

$

66,909

​

$

5,824

​

$

26,181

​

$

911,078

Ending balance: individually

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

4,005

​

$

309

​

$

611

​

$

—

​

$

—

​

$

4,925

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

807,488

​

$

362

​

$

66,298

​

$

5,824

​

$

26,181

​

$

906,153

​

The Company's activity in the allowance for credit losses on unfunded commitments for the six months ended June 30, 2024 and 2023 was as follows:

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

​

​

​

​

2024

    

2023

Balance at December 31

​

$

166

​

$

68

CECL adoption adjustment

​

​

—

​

​

147

Credit for credit losses on unfunded commitments

​

​

30

​

​

45

Balance at June 30

​

$

196

 

$

260

​

​
The following table presents outstanding loan balances by loan class prior to allocation of net deferred fees and costs, as well as the balance of net loans after allocation of net deferred fees and costs and the allowance for credit losses as of June 30, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

June 30,

 

December 31,

​

​

2024

 

2023

Real Estate

​

$

823,649

​

$

810,923

Agricultural

​

​

987

​

​

670

Commercial and Industrial

​

​

64,543

​

​

66,483

Consumer

​

​

6,181

​

​

5,755

State and Political Subdivisions

​

​

26,069

​

​

26,173

Subtotal

​

​

921,429

​

​

910,004

Net Deferred Fees and Costs

​

​

1,065

​

​

1,074

Allowance for Credit Losses

​

 

(7,687)

​

​

(6,925)

Loans, Net

​

$

914,807

​

$

904,153

​

During the six months ended June 30, 2024, a modification was granted on one loan to a borrower experiencing financial difficulty which carried a post modification recorded investment of $9,455,000. There were no modifications of loans to borrowers experiencing financial difficulty granted during the three months ended June 30, 2024. The loan modification granted during the six months ended June 30, 2024 was a payment modification which allowed a period of interest-only payments of six months. There were no loan modifications granted to borrowers experiencing financial difficulty during the three or six months ended June 30, 2023.

​

The outstanding recorded investment of loans to borrowers experiencing financial difficulty was $9,455,000 at June 30, 2024, compared to $0 at December 31, 2023. There were no unfunded commitments on modified loans to borrowers experiencing financial difficulty as of June 30, 2024.

​

The following table presents the outstanding recorded investment of loans to borrowers experiencing financial difficulties at June 30, 2024. There were no loan modifications granted to borrowers experiencing financial difficulty as of December 31, 2023.

​

​

​

​

​

(Dollars in thousands)

    

June 30,

​

​

2024

Modifications of Loans to Borrowers Experiencing Financial Difficulty:

​

​

​

Non-Accrual

​

$

—

Accruing

​

 

9,455

Total

​

$

9,455

​

​

​

​

​

At June 30, 2024 there were no modifications of loans to borrowers experiencing financial difficulty that were not in compliance with the terms of their restructure.

The modification of a loan to a borrower experiencing financial difficulty that was completed during the twelve months preceding June 30, 2024 experienced a payment default during the six months ended June 30, 2024. There were no payment defaults on the modification of a loan to a borrower experiencing financial difficulty during the three months ended June 30, 2024, and the loan was paid current by the customer as of June 30, 2024.

The following table presents information regarding modifications of loans to borrowers experiencing financial difficulty that were completed during the six months ended June 30, 2024. There were no modifications of loans to borrowers experiencing financial difficulty completed during the three months ended June 30, 2024 or the three or six months ended June 30, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Six Months Ended June 30, 2024

​

​

​

​

Pre-Modification

​

Post-Modification

​

​

​

​

​

​

​

Outstanding

​

Outstanding

​

​

​

​

​

Number of

​

Recorded

​

Recorded

​

Recorded

​

​

Contracts

​

Investment

​

Investment

​

Investment

Real Estate

​

1

​

$

9,455

​

$

9,455

​

$

9,455

Total

​

1

​

$

9,455

​

$

9,455

​

$

9,455

​

​

​

​

​

​

​

​

​

​

​

​

​

The following table provides detail regarding they types of loan modifications made for borrowers experiencing financial difficulty during the six months ended June 30, 2024. There were no modifications of loans to borrowers experiencing financial difficulty completed during the three months ended June 30, 2024 or the three or six months ended June 30, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Six Months Ended June 30, 2024

​

    

Rate

​

Term

​

Payment

​

Number

​

​

Modification

​

Modification

​

Modification

​

Modified

Real Estate

​

—

​

—

​

1

​

1

Total

​

—

​

—

​

1

​

1

​

​

​

​

​

​

​

​

​

​

The recorded investment, unpaid principal balance, and the related allowance of the Company’s non-accrual loans are summarized below at June 30, 2024 and December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 2024

​

​

Recorded

​

Recorded

​

​

​

​

Unpaid

​

Unpaid

​

​

​

​

​

​

​

​

Investment

​

Investment

​

​

​

​

Principal

​

Principal

​

Total

​

​

​

​

​

    

With

​

With No

​

Total

​

​

Balance With

​

Balance With

​

Unpaid

​

​

​

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

No Related

​

Principal

​

​

Related

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Balance

​

​

Allowance

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

​

​

  

Real Estate

​

$

—

​

$

3,929

​

$

3,929

​

​

$

—

​

$

5,918

​

$

5,918

​

​

$

—

Agricultural

​

​

—

​

​

—

​

​

—

​

​

​

—

​

​

—

​

​

—

​

​

​

—

Commercial and Industrial

​

​

—

​

​

611

​

​

611

​

​

​

—

​

​

611

​

​

611

​

​

​

—

Total

​

$

—

​

$

4,540

​

$

4,540

​

​

$

—

​

$

6,529

​

$

6,529

​

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

December 31, 2023

​

​

Recorded

​

Recorded

​

​

​

​

Unpaid

​

Unpaid

​

​

​

​

​

​

​

​

Investment

​

Investment

​

​

​

​

Principal

​

Principal

​

Total

​

​

​

​

​

    

With

​

With No

​

Total

​

​

Balance With

​

Balance With

​

Unpaid

​

​

​

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

No Related

​

Principal

​

​

Related

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Balance

​

​

Allowance

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

​

​

  

Real Estate

​

$

—

​

$

4,005

​

$

4,005

​

​

$

—

​

$

5,994

​

$

5,994

​

​

$

—

Agricultural

​

​

—

​

​

—

​

​

—

​

​

​

—

​

​

—

​

​

—

​

​

​

—

Commercial and Industrial

​

​

—

​

​

611

​

​

611

​

​

​

—

​

​

611

​

​

611

​

​

​

—

Total

​

$

—

​

$

4,616

​

$

4,616

​

​

$

—

​

$

6,605

​

$

6,605

​

​

$

—

​

The recorded investment represents the loan balance reflected on the consolidated balance sheets net of any charge-offs. The unpaid balance is equal to the gross amount due on the loan.

The average recorded investment and interest income recognized for the Company’s non-accrual loans are summarized below for the three and six months ended June 30, 2024 and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Three Months Ended June 30, 2024

​

​

Average

​

Average

​

​

​

​

Interest

​

Interest

​

​

​

​

​

Recorded

​

Recorded

​

​

​

​

Income

​

Income

​

​

​

​

​

Investment

​

Investment

​

Total

​

​

Recognized

​

Recognized

​

Total

​

​

    

With

​

With No

​

Average

​

​

With

​

With No

​

Interest

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

Related

​

Income

​

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Recognized

​

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

Real Estate

​

$

—

​

$

3,957

​

$

3,957

​

​

$

—

​

$

—

​

$

—

​

Commercial and Industrial

​

​

—

​

​

611

​

​

611

​

​

​

—

​

​

—

​

​

—

​

Total

​

$

—

​

$

4,568

​

$

4,568

​

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Six Months Ended June 30, 2024

​

​

Average

​

Average

​

​

​

​

Interest

​

Interest

​

​

​

​

​

Recorded

​

Recorded

​

​

​

​

Income

​

Income

​

​

​

​

​

Investment

​

Investment

​

Total

​

​

Recognized

​

Recognized

​

Total

​

​

    

With

​

With No

​

Average

​

​

With

​

With No

​

Interest

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

Related

​

Income

​

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Recognized

​

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

Real Estate

​

$

—

​

$

3,973

​

$

3,973

​

​

$

—

​

$

—

​

$

—

​

Commercial and Industrial

​

​

—

​

​

611

​

​

611

​

​

​

—

​

​

—

​

​

—

​

Total

​

$

—

​

$

4,584

​

$

4,584

​

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Three Months Ended June 30, 2023

​

​

Average

​

Average

​

​

​

​

Interest

​

Interest

​

​

​

​

​

Recorded

​

Recorded

​

​

​

​

Income

​

Income

​

​

​

​

​

Investment

​

Investment

​

Total

​

​

Recognized

​

Recognized

​

Total

​

​

    

With

​

With No

​

Average

​

​

With

​

With No

​

Interest

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

Related

​

Income

​

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Recognized

​

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

Real Estate

​

$

—

​

$

4,367

​

$

4,367

​

​

$

—

​

$

4

​

$

4

​

Commercial and Industrial

​

​

—

​

​

653

​

​

653

​

​

​

—

​

​

—

​

​

—

​

Total

​

$

—

​

$

5,020

​

$

5,020

​

​

$

—

​

$

4

​

$

4

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Six Months Ended June 30, 2023

​

​

Average

​

Average

​

​

​

​

Interest

​

Interest

​

​

​

​

​

Recorded

​

Recorded

​

​

​

​

Income

​

Income

​

​

​

​

​

Investment

​

Investment

​

Total

​

​

Recognized

​

Recognized

​

Total

​

​

    

With

​

With No

​

Average

​

​

With

​

With No

​

Interest

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

Related

​

Income

​

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Recognized

​

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

Real Estate

​

$

—

​

$

4,390

​

$

4,390

​

​

$

—

​

$

—

​

$

—

​

Commercial and Industrial

​

​

—

​

​

659

​

​

659

​

​

​

—

​

​

—

​

​

—

​

Total

​

$

—

​

$

5,049

​

$

5,049

​

​

$

—

​

$

—

​

$

—

​

​

The following table presents the Company’s individually evaluated, collateral-dependent loans by segment as of June 30, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 2024

​

    

Real Estate

    

Other

Real Estate

​

$

3,929

​

$

—

Agricultural

​

​

—

​

​

309

Commercial and Industrial

​

​

—

​

​

611

Total

​

$

3,929

​

$

920

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

December 31, 2023

​

    

Real Estate

    

Other

Real Estate

​

$

4,005

​

$

—

Agricultural

​

​

—

​

​

309

Commercial and Industrial

​

​

—

​

​

611

Total

​

$

4,005

​

$

920

​

At June 30, 2024 and December 31, 2023, there were no commitments to lend additional funds with respect to individually evaluated loans.

​

Total non-performing assets (which includes loans receivable on non-accrual status, foreclosed assets held for resale and loans past-due 90 days or more and still accruing interest) as of June 30, 2024 and December 31, 2023 were as follows:

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 

​

December 31, 

​

    

2024

    

2023

Real Estate

​

$

3,929

​

$

4,005

Agricultural

​

​

—

​

​

—

Commercial and Industrial

​

​

611

​

​

611

Consumer

 

​

—

​

​

—

State and Political Subdivisions

​

 

—

​

 

—

Total non-accrual loans

​

 

4,540

​

 

4,616

Foreclosed assets held for resale

​

 

—

​

 

—

Loans past-due 90 days or more and still accruing interest

​

 

495

​

 

1,065

Total non-performing assets

​

$

5,035

​

$

5,681

​

​

​

​

​

​

​

​

​

There were no foreclosed assets held for resale at June 30, 2024 or December 31, 2023. Consumer mortgage loans secured by residential real estate for which the Company has entered into formal foreclosure proceedings but for which physical possession has yet to be obtained amounted to $137,000 at June 30, 2024 and $138,000 at December 31, 2023. These balances were not included in foreclosed assets held for resale at June 30, 2024 or December 31, 2023.

The following tables present the classes of the loan portfolio, including individually evaluated loans, summarized by past-due status at June 30, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

90 Days

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Or Greater

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Past Due

​

​

​

​

​

​

​

​

90 Days

​

​

​

​

​

Current-

​

​

​

​

and Still

​

​

30-59 Days

​

60-89 Days

​

or Greater

​

Total

​

​

29 Days

​

Total

​

Accruing

​

​

Past Due

​

Past Due

​

Past Due

​

Past Due

​

Past Due

​

Loans

​

Interest

June 30, 2024:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Real Estate

​

$

3,723

​

$

4,957

​

$

4,423

​

$

13,103

​

$

811,114

​

$

824,217

​

$

495

Agricultural

​

​

—

​

​

—

​

​

—

​

​

—

​

​

990

​

​

990

​

​

—

Commercial and Industrial

​

​

144

​

​

—

​

​

611

​

​

755

​

​

64,204

​

​

64,959

​

​

—

Consumer

​

 

21

​

 

—

​

 

—

​

 

21

​

 

6,229

​

 

6,250

​

 

—

State and Political Subdivisions

​

 

—

​

 

—

​

 

—

​

 

—

​

 

26,078

​

 

26,078

​

 

—

Total

​

$

3,888

​

$

4,957

​

$

5,034

​

$

13,879

​

$

908,615

​

$

922,494

​

$

495

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

90 Days

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Or Greater

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Past Due

​

​

​

​

​

​

​

​

90 Days

​

​

​

​

​

Current-

​

​

​

​

and Still

​

​

30-59 Days

​

60-89 Days

​

or Greater

​

Total

​

​

29 Days

​

Total

​

Accruing

​

​

Past Due

​

Past Due

​

Past Due

​

Past Due

​

Past Due

​

Loans

​

Interest

December 31, 2023:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Real Estate

​

$

2,155

​

$

379

​

$

5,069

​

$

7,603

​

$

803,890

​

$

811,493

​

$

1,065

Agricultural

​

​

—

​

​

—

​

​

—

​

​

—

​

​

671

​

​

671

​

​

—

Commercial and Industrial

​

​

6

​

​

—

​

​

591

​

​

597

​

​

66,312

​

​

66,909

​

​

—

Consumer

​

 

21

​

 

4

​

 

—

​

 

25

​

 

5,799

​

 

5,824

​

 

—

State and Political Subdivisions

​

 

—

​

 

—

​

 

—

​

 

—

​

 

26,181

​

 

26,181

​

 

—

Total

​

$

2,182

​

$

383

​

$

5,660

​

$

8,225

​

$

902,853

​

$

911,078

​

$

1,065

​
v3.24.2.u1
DEPOSITS
 6 Months Ended
Jun. 30, 2024
DEPOSITS  
DEPOSITS

NOTE 5 — DEPOSITS

Major classifications of deposits at June 30, 2024 and December 31, 2023 consisted of:

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

June 30, 

​

December 31, 

​

​

2024

    

2023

Non-interest bearing demand

 

$

206,004

​

$

198,569

Interest bearing demand

​

 

263,637

​

 

275,472

Savings

​

 

201,789

​

 

212,280

Time certificates of deposits less than $250,000

​

 

275,059

​

 

259,841

Time certificates of deposits $250,000 or greater

​

 

36,234

​

 

33,185

Other time

​

 

1,486

​

 

1,092

Total deposits

​

$

984,209

​

$

980,439

​

Total deposits increased $3,770,000 to $984,209,000 as of June 30, 2024 due to increases in non-interest bearing demand and time deposits. The increase in deposits was mainly the result of increased time deposits as the result of new higher rate CD promotions during the first half of 2024, offset by a $5,208,000 decrease in municipal deposits.
v3.24.2.u1
BORROWINGS
 6 Months Ended
Jun. 30, 2024
BORROWINGS  
BORROWINGS

NOTE 6 — BORROWINGS

Short-Term Borrowings

Short-term borrowings include federal funds purchased, securities sold under agreements to repurchase, the Federal Discount Window, and Federal Home Loan Bank of Pittsburgh (“FHLB”) advances, which generally represent overnight or less than 30-day borrowings.

​

Short-term borrowings and weighted–average interest rates at June 30, 2024 and December 31, 2023 are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 2024

​

​

December 31, 2023

 

​

​

​

​

​

​

Average

​

​

​

​

​

Average

 

​

​

    

Amount

    

Rate

    

​

Amount

    

Rate

 

    

Federal funds purchased

 

$

—

​

6.59

%  

​

$

—

 

6.57

%

 

Securities sold under agreements to repurchase

​

 

27,109

​

4.38

%  

​

 

19,708

 

3.28

%

​

Federal Discount Window

​

 

—

​

5.51

%  

​

 

1

 

4.99

%

​

Federal Home Loan Bank of Pittsburgh

​

 

148,202

​

5.76

%  

​

 

133,759

 

5.45

%

​

Total

​

$

175,311

​

5.52

%  

​

$

153,468

 

5.21

%

​

​

Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”)

The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets.

As a result, these repurchase agreements are accounted for as collateralized financing agreements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability on the Company’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is not offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements.

The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fails to make an interest payment to the counterparty). The collateral is held by a correspondent bank in the counterparty’s custodial account. The counterparty has the right to sell or repledge the investment securities.

The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreements as of June 30, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

    

Gross

    

Net Amounts

    

​

​

    

​

​

    

​

​

​

​

​

​

​

Amounts

​

of Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Offset

​

Presented

​

​

​

​

​

​

​

​

​

​

​

Gross

​

in the

​

in the

​

​

​

​

​

​

​

​

​

​

​

Amounts of

​

Consolidated

​

Consolidated

​

​

​

​

Cash

​

​

​

​

​

Recognized

​

Balance

​

Balance

​

Financial

​

Collateral

​

Net

​

​

Liabilities

​

Sheet

​

Sheet

​

Instruments

​

Pledge

​

Amount

June 30, 2024

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Repurchase agreements (a)

​

$

27,109

​

$

—

​

$

27,109

​

$

(27,109)

​

$

—

​

$

—

​

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

December 31, 2023

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Repurchase agreements (a)

​

$

19,708

​

$

—

​

$

19,708

​

$

(19,708)

​

$

—

​

$

—

(a)As of June 30, 2024 and December 31, 2023, the fair value of securities pledged in connection with repurchase agreements was $37,880,000 and $28,902,000, respectively.

The following table presents the remaining contractual maturity of the master netting arrangement or repurchase agreements as of June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Remaining Contractual Maturity of the Agreements

​

​

Overnight

​

​

​

​

Greater

​

Greater

​

​

​

​

​

and

​

Up to

​

30 -90

​

than

​

​

​

​

​

Continuous

​

30 days

​

Days

​

90 Days

​

Total

June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Repurchase agreements and repurchase-to-maturity transactions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

U.S. Treasury and/or agency securities

​

$

27,109

​

$

—

​

$

—

​

$

—

​

$

27,109

Total

​

$

27,109

​

$

—

​

$

—

​

$

—

​

$

27,109

​

Long-Term Borrowings and Letters of Credit

Long-term borrowings are comprised of advances from the FHLB. The Company’s long-term borrowings consist of notes at fixed interest rates. Upon any default, under the terms of a master agreement, FHLB may declare all indebtedness of the Company immediately due. In addition, FHLB shall not be required to fund advances under any outstanding commitments. As of June 30, 2024 and December 31, 2023, the Company had $122,000,000 in long-term borrowings outstanding with the FHLB.

Irrevocable standby letters of credit may be issued to a customer/beneficiary by the FHLB on the Company’s behalf in order to secure public/municipal unit deposits, provide credit enhancement to certain transaction types, or to support payment obligations to third parties. These irrevocable standby letters of credit are supported by an irrevocable and independent guarantee by the FHLB for the Company’s pledging obligation to secure public/municipal unit deposits which eliminates the need for the Company to pledge collateral in the amount necessary to secure these funds. There were no irrevocable standby letters of credit which could be drawn on through FHLB’s close of business on June 30, 2024. Any irrevocable standby letters of credit are issued as necessary in an amount appropriate to secure specific public/municipal unit deposits.

​

Under terms of a blanket agreement, collateral for the FHLB loans and letters of credit consists of certain qualifying assets of the Corporation’s banking subsidiary. Principal qualifying assets are certain real estate mortgages and investment securities. As of June 30, 2024, loans of $761,536,000 were pledged to FHLB which resulted in a FHLB maximum borrowing capacity of $532,749,000. As of June 30, 2024, no securities were pledged as collateral to FHLB to secure FHLB loans and letters of credit.
v3.24.2.u1
SUBORDINATED DEBT
 6 Months Ended
Jun. 30, 2024
SUBORDINATED DEBT  
SUBORDINATED DEBT

NOTE 7 — SUBORDINATED DEBT

On December 10, 2020, the Corporation issued $25,000,000 aggregate principal amount of Subordinated Notes due 2030 (the “2020 Notes”) to accredited investors. The 2020 Notes are intended to be treated as Tier 2 capital for regulatory capital purposes. The Company utilized the net proceeds it received from the sale of the 2020 Notes to support organic growth and for general corporate purposes.

The 2020 Notes bear a fixed interest rate of 4.375% per year for the first five years and then float based on a benchmark rate (as defined). Interest is payable semi-annually in arrears on June 30 and December 31 of each year, which began on June 30, 2021, for the first five years after issuance and will be payable quarterly in arrears thereafter on March 31, June 30, September 30 and December 31. The 2020 Notes will mature on December 31, 2030 and are redeemable in whole or in part, without premium or penalty, at any time on or after December 31, 2025 and prior to December 31, 2030. Additionally, if all or any portion of the 2020 Notes cease to be deemed Tier 2 capital, the Corporation may redeem, in whole and not in part, at any time upon giving not less than ten days’ notice, an amount equal to one hundred percent (100%) of the principal amount outstanding plus accrued but unpaid interest to but excluding the date fixed for redemption.

Holders of the 2020 Notes may not accelerate the maturity of the 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar law of the Corporation or the Bank.
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Jun. 30, 2024
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

NOTE 8 — COMMITMENTS AND CONTINGENCIES

In the normal course of business, there are various pending legal actions and proceedings that are not reflected in the consolidated financial statements. Management does not believe the outcome of these actions and proceedings will have a material effect on the consolidated financial position or results of operations of the Company.

The Company currently leases two branch banking facilities and one parcel of land under operating leases. At June 30, 2024, right-of-use assets and lease liabilities were recorded related to these operating leases totaling $1,453,000 and $1,965,000, respectively. At December 31, 2023, right-of-use assets and lease liabilities stood at $1,472,000 and $1,976,000, respectively, in the consolidated balance sheets. Options to extend or terminate a lease may be included in our lease agreements. When it is reasonably certain that we will exercise those options, the right-of-use asset and lease liability will reflect the renewal or termination option. No significant assumptions or judgements were made in determining whether a contract contained a lease or in the consideration of lease versus non-lease components. None of the leases contained an implicit rate; therefore, our incremental borrowing rate was used for each of the leases.

The Company recognized total operating lease costs for the six months ended June 30, 2024 and 2023 of $107,000 and $113,000, respectively. Operating lease costs are included in occupancy, net in the accompanying statements of income. Cash payments totaled $99,000 and $106,000, respectively, for the six months ended June 30, 2024 and 2023.

The following table displays the weighted-average term and discount rates for operating leases outstanding as of June 30, 2024 and December 31, 2023.

​

​

​

​

​

​

​

​

​

    

June 30, 

​

​

December 31, 

​

​

​

2024

​

​

2023

​

Weighted-average term (years)

 

19.45

​

 

19.75

​

Weighted-average discount rate

 

4.20%

​

 

4.22%

​

​

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows:

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

​

​

​

 

June 30, 

 

December 31, 

Minimum Lease Payments due:

​

2024

​

2023

Within one year

​

$

158

​

$

175

After one but within two years

​

 

140

​

 

140

After two but within three years

​

 

147

​

 

140

After three but within four years

​

 

156

​

 

154

After four but within five years

​

 

157

​

 

157

After five years

​

 

2,238

​

 

2,317

Total undiscounted cash flows

​

 

2,996

​

 

3,083

Discount on cash flows

​

 

(1,031)

​

 

(1,107)

Total lease liability

​

$

1,965

​

$

1,976

​
v3.24.2.u1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 6 Months Ended
Jun. 30, 2024
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 9 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

​

The Company uses various financial instruments, including derivatives, to manage its exposure to interest rate risk. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and cash payments principally related to specific assets and short-term wholesale funding positions. The Company entered into four swap contracts effective September 20, 2023.

​

Fair Values of Derivative Instruments on the Statement of Financial Condition

​

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 2024

​

 

Derivative Assets

​

​

Derivative Liabilities

​

​

Location

​

​

Fair Value

​

​

Location

​

​

Fair Value

Derivatives designated as hedging instruments:

​

​

​

​

​

​

​

​

​

​

​

Interest rate swaps

​

Other Assets

​

$

—

​

​

Other Liabilities

​

$

741

Total

​

​

​

$

—

​

​

​

​

$

741

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

December 31, 2023

​

 

Derivative Assets

​

​

Derivative Liabilities

​

​

Location

​

​

Fair Value

​

​

Location

​

​

Fair Value

Derivatives designated as hedging instruments:

​

​

​

​

​

​

​

​

​

​

​

Interest rate swaps

​

Other Assets

​

$

—

​

​

Other Liabilities

​

$

4,501

Total

​

​

​

$

—

​

​

​

​

$

4,501

​

The following table presents the derivative liabilities subject to an enforceable master netting arrangement as of June 30, 2024 and December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Gross

    

Net Amounts

    

​

​

    

​

​

    

​

​

​

​

​

​

​

Amounts

​

of Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Offset

​

Presented

​

​

​

​

​

​

​

​

​

​

​

Gross

​

in the

​

in the

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Amounts of

​

Consolidated

​

Consolidated

​

​

​

​

Cash

​

​

​

​

​

Recognized

​

Balance

​

Balance

​

Financial

​

Collateral

​

Net

​

​

Liabilities

​

Sheet

​

Sheet

​

Instruments

​

Pledge

​

Amount

June 30, 2024

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Derivatives

​

$

741

​

$

—

​

$

741

​

$

—

​

$

(741)

​

$

—

​

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

December 31, 2023

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Derivatives

​

$

4,501

​

$

—

​

$

4,501

​

$

—

​

$

(4,501)

​

$

—

​

The following table presents the remaining contractual maturity of the master netting arrangements as of June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Remaining Contractual Maturity of the Agreements

​

​

​

​

​

​

​

​

​

Greater

​

​

​

(Dollars in thousands)

​

Up to

​

1 to 3

​

3 to 5

​

than

​

​

​

​

​

1 Year

​

Years

​

Years

​

5 Years

​

Total

June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivatives

​

$

—

​

$

—

​

$

741

​

$

—

​

$

741

Total

​

$

—

​

$

—

​

$

741

​

$

—

​

$

741

​

Fair Value Hedges of Interest Rate Risk

​

The Company is exposed to changes in the fair value of certain of its fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rates. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. Such derivatives are used to hedge the changes in fair value of certain of its pools of fixed rate assets. As of June 30, 2024, the Company had a total of two interest rate swaps with a combined notional amount of $50,000,000 hedging fixed-rate available-for-sale debt securities.

​

As of June 30, 2024 and December 31, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges:

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 

​

December 31, 

​

 

2024

​

2023

Carrying amount of hedged assets:

​

Closed Portfolio Amount

​

Closed Portfolio Amount

Available-for-sale - Municipals

$

50,809

$

50,964

Available-for-sale - MBS

​

34,261

​

35,806

Total

$

85,070

$

86,770

​

​

​

​

​

Interest rate swaps notional amount

$

50,000

$

50,000

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 

​

December 31, 

​

 

2024

​

2023

Cumulative amount of fair value hedging adjustment included in the carrying amount of assets:

​

​

​

​

Available-for-sale - Municipals

$

(222)

$

(1,230)

Available-for-sale - MBS

​

(73)

​

(407)

Total

$

(295)

$

(1,637)

​

The table below presents the pre-tax effects of the Company’s derivative instruments designated as fair value hedges on the Consolidated Statements of Income for the year-to-date periods ended June 30, 2024 and 2023:

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 

​

 

2024

​

2023

Amount of loss recognized in other comprehensive loss

$

(233)

$

—

Amount of gain, net of fair value re-measurements, included in interest income

​

272

​

—

​

Cash Flow Hedges of Interest Rate Risk

​

The Company uses derivatives to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company has entered into interest rate swaps as part of its interest rate risk management strategy. These interest rate products are designated as cash flow hedges. As of June 30, 2024, the Company had a total of two interest rate swaps with a combined notional amount of $100,000,000 hedging specific short-term wholesale funding positions.

​

For derivatives designated as cash flow hedges, the gain or loss on the derivatives is recorded in other comprehensive loss and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. During the next twelve months, it is estimated that an additional $639,000 will be reclassified as a decrease to interest expense.

​

Interest rate swaps designated as cash flow hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For cash flow hedges on the Company's short-term wholesale funding positions, amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s hedged variable rate short-term wholesale funding positions. During the year-to-date period ended June 30, 2024, the Company reclassified $502,000 as a reduction in interest expense.

​

The table below presents the pre-tax effects of the Company’s derivative instruments designated as cash flow hedges on the Consolidated Statements of Income for the year-to-date periods ended June 30, 2024 and 2023:

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 

​

 

2024

​

2023

Amount of loss recognized in other comprehensive loss

$

(366)

$

—

Amount of gain reclassified from accumulated other comprehensive loss to interest expense

​

502

​

—

​

​

​

​

​

Interest rate swaps notional amount

$

100,000

$

—

​

Credit Risk-Related Contingent Features

​

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty. The Company also has agreements with its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well-capitalized institution, then the Company could be required to terminate its derivative positions with the counterparty. As of June 30, 2024 and December 31, 2023, the Company’s derivatives were in a net liability position resulting in the Company having collateral in the amount of $1,240,000 posted with the counterparty at June 30, 2024 and collateral in the amount of $4,650,000 posted with the counterparty at December 31, 2023.
v3.24.2.u1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK
 6 Months Ended
Jun. 30, 2024
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK  
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK

NOTE 10 — FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK

Financial Instruments with Off-Balance Sheet Risk

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company does not engage in trading activities with respect to any of its financial instruments with off-balance sheet risk.

The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments.

The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

The Company may require collateral or other security to support financial instruments with off-balance sheet credit risk.

The contract or notional amounts at June 30, 2024 and December 31, 2023 were as follows:

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

​

​

​

    

​

​

June 30, 2024

    

December 31, 2023

​

Financial instruments whose contract amounts represent credit risk:

 

​

  

 

​

  

 

Commitments to extend credit

​

$

126,834

​

$

116,954

​

Financial standby letters of credit

​

$

2,150

​

$

2,120

​

Performance standby letters of credit

​

$

3,905

​

$

3,688

​

​

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses that may require payment of a fee. Since some of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, owner-occupied income-producing commercial properties, and residential real estate.

Standby letters of credit are conditional commitments issued by the Company to guarantee payment to a third party when a customer either fails to repay an obligation or fails to perform some non-financial obligation. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company may hold collateral (similar to the items held as collateral for commitments to extend credit) to support standby letters of credit for which collateral is deemed necessary.

Financial Instruments with Concentrations of Credit Risk

The Company originates primarily commercial and residential real estate loans to customers predominately in the Company’s primary five county, Pennsylvania market area. The ability of the majority of the Company’s customers to honor their contractual loan obligations is dependent on the economy and real estate market in this area. At June 30, 2024, the Company had $824,217,000 in loans secured by real estate, which represented 89.4% of total loans. The real estate loan portfolio is largely secured by lessors of residential buildings and dwellings, lessors of non-residential buildings, and lessors of hotels/motels. As of June 30, 2024 and December 31, 2023, management is of the

opinion that there were no concentrations exceeding 10% of total loans with regard to loans to borrowers who were engaged in similar activities that were similarly impacted by economic or other conditions.

As all financial instruments are subject to some level of credit risk, the Company requires collateral and/or guarantees for all loans. Collateral may include, but is not limited to property, plant, and equipment, commercial and/or residential real estate property, land, and pledge of securities. In the event of a borrower’s default, the collateral supporting the loan may be seized in order to recoup losses associated with the loan. The Company also establishes an allowance for credit losses that constitutes the amount available to absorb losses within the loan portfolio that may exist due to deficiencies in collateral values.
v3.24.2.u1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2024
FAIR VALUE MEASUREMENTS  
FAIR VALUE MEASUREMENTS

NOTE 11 — FAIR VALUE MEASUREMENTS

Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell the asset or transfer the liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. This guidance provides additional information on determining when the volume and level of activity for the asset or liability has significantly decreased. The guidance also includes information on identifying circumstances when a transaction may not be considered orderly.

Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed and significant adjustments to the related prices may be necessary to estimate fair value in accordance with the fair value measurement and disclosure guidance.

This guidance clarifies that when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own belief about the assumptions market participants would use in pricing the asset or liability based upon the best information available. Fair value measurement and disclosure guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1 Inputs:     Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 Inputs:     Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability;

Level 3 Inputs:     Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth as follows.

Financial Assets Measured at Fair Value on a Recurring Basis

At June 30, 2024 and December 31, 2023, securities measured at fair value on a recurring basis and the valuation methods used are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

​

Level 1

    

Level 2

    

Level 3

    

Total

Debt Securities Available-for-Sale:

 

​

  

 

​

  

 

​

  

 

​

  

U.S. Treasury securities

​

$

7,003

​

$

—

​

$

—

​

$

7,003

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

  

​

 

​

​

 

  

​

 

​

Mortgaged-backed

​

​

—

​

​

142,375

​

​

—

​

​

142,375

Other

​

 

—

​

 

6,003

​

 

—

​

 

6,003

Other mortgage backed debt securities

​

 

—

​

 

48,628

​

 

—

​

 

48,628

Obligations of state and political subdivisions

​

 

—

​

 

84,641

​

 

—

​

 

84,641

Asset-backed securities

​

 

—

​

 

85,071

​

 

—

​

 

85,071

Corporate debt securities

​

 

—

​

 

29,868

​

 

—

​

 

29,868

Total debt securities available-for-sale

​

 

7,003

​

 

396,586

​

 

—

​

 

403,589

Marketable equity securities

​

 

1,288

​

 

—

​

 

—

​

 

1,288

Total recurring fair value measurements

​

$

8,291

​

$

396,586

​

$

—

​

$

404,877

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

Level 1

    

Level 2

    

Level 3

    

Total

Debt Securities Available-for-Sale:

 

​

  

 

​

  

 

​

  

 

​

  

U.S. Treasury securities

​

$

7,041

​

$

—

​

$

—

​

$

7,041

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

  

​

 

  

​

 

  

​

 

  

Mortgaged-backed

​

​

—

​

​

137,992

​

​

—

​

​

137,992

Other

​

 

—

​

 

7,632

​

 

—

​

 

7,632

Other mortgage backed debt securities

​

 

—

​

 

34,050

​

 

—

​

 

34,050

Obligations of state and political subdivisions

​

 

—

​

 

87,703

​

 

—

​

 

87,703

Asset-backed securities

​

 

—

​

 

82,162

​

 

—

​

 

82,162

Corporate debt securities

​

 

—

​

 

36,388

​

 

—

​

 

36,388

Total debt securities available-for-sale

​

 

7,041

​

 

385,927

​

 

—

​

 

392,968

Marketable equity securities

​

 

1,482

​

 

—

​

 

—

​

 

1,482

Total recurring fair value measurements

​

$

8,523

​

$

385,927

​

$

—

​

$

394,450

​

The estimated fair values of equity securities and US Treasury debt securities classified as Level 1 are derived from quoted market prices in active markets; the equity securities consist mainly of stocks held in other banks. The estimated fair values of all debt securities classified as Level 2 are obtained from nationally-recognized third-party pricing agencies. The estimated fair values are derived primarily from cash flow models, which include assumptions for interest rates, credit losses, and prepayment speeds. The significant inputs utilized in the cash flow models are based on market data obtained from sources independent of the Company (observable inputs), and are therefore classified as Level 2 within the fair value hierarchy. The Company does not have any Level 3 inputs for securities. There were no transfers between Level 1 and Level 2 during 2024 or 2023.

Financial Assets Measured at Fair Value on a Nonrecurring Basis

Periodically, non-recurring adjustments may be applied to the carrying value of loans based on the fair value measurements for partial charge-offs of the uncollectible portions of those loans. Non-recurring adjustments can also include certain specific allocation amounts for individually evaluated collateral-dependent loans as calculated when establishing the allowance for credit losses. The Company’s valuation procedure for any individually evaluated loans

greater than $250,000 requires an appraisal to be obtained and reviewed annually at year end unless the Board of Directors waives such requirement for a specific loan, in favor of obtaining a Certificate of Inspection instead, defined as an internal evaluation completed by the Company. A quarterly collateral evaluation is performed which may include a site visit, property pictures and discussions with realtors and other similar business professionals to ascertain current values. For individually evaluated loans less than $250,000 upon classification and annually at year end, the Company completes a Certificate of Inspection, which includes an onsite inspection, and considers value indicators such as insured values, tax assessed values, recent sales comparisons and a review of the previous evaluations.These assets are included as Level 3 fair values, based upon the lowest level that is significant to the fair value measurements. The fair value consists of the individually evaluated loan balances less the valuation allowance and/or charge-offs. There were no transfers between valuation levels in 2024 and 2023.

Individually evaluated loans measured at fair value on a nonrecurring basis as of June 30, 2024 and December 31, 2023 are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

Level 1

    

Level 2

    

Level 3

    

Total

Assets at June 30, 2024

 

​

  

 

​

  

 

​

  

 

​

  

Individually evaluated loans:

 

​

  

 

​

  

 

​

  

 

​

  

Real Estate

​

$

—

​

$

—

​

$

1,953

​

$

1,953

Total individually evaluated loans

​

$

—

​

$

—

​

$

1,953

​

$

1,953

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

Level 1

    

Level 2

    

Level 3

    

Total

Assets at December 31, 2023

 

​

  

 

​

  

 

​

  

 

​

  

Individually evaluated loans:

 

​

  

 

​

  

 

​

  

 

​

  

Real Estate

​

$

—

​

$

—

​

$

1,990

​

$

1,990

Total individually evaluated loans

​

$

—

​

$

—

​

$

1,990

​

$

1,990

​

Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis

There were no foreclosed assets held for resale measured at fair value on a nonrecurring basis at June 30, 2024 and December 31, 2023.

​

The Company’s foreclosed asset valuation procedure requires an appraisal or a Certificate of Inspection, which considers the sales prices of similar properties in the proximate vicinity, to be completed periodically with the exception of those cases in which the Bank has obtained a sales agreement. These assets are included as Level 3 fair values, based upon the lowest level that is significant to the fair value measurements. There were no transfers between valuation levels in 2024 and 2023.

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine the fair value:

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Quantitative Information about Level 3 Fair Value Measurements

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

    

Estimate

    

Valuation Technique

    

Unobservable Input

    

Range

    

Average

Individually evaluated loans - collateral dependent

​

$

1,953

 

Appraisal of collateral1,3
Certificate of Inspection1,3

 

Appraisal adjustments2
Qualitative Adjustments4

 

(5%) – (5%)

 

(5%)

​

​

 

  

 

  

 

  

 

  

 

  

December 31, 2023

​

 

  

 

  

 

  

 

  

 

  

Individually evaluated loans - collateral dependent

​

$

1,990

 

Appraisal of collateral1,3
Certificate of Inspection1,3

 

Appraisal adjustments2
Qualitative Adjustments4

 

(5%) – (5%)

 

(5%)

1. Fair value is generally determined through independent appraisals or Certificates of Inspection of the underlying collateral, as defined by Bank regulators.

2. Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value.

3. Includes qualitative adjustments by management and estimated liquidation expenses.

4. Collateral values may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses.

​

Fair Value of Financial Instruments Measured on a Nonrecurring Basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Carrying

​

Fair Value Measurements at June 30, 2024

​

    

Amount

    

Level 1

    

Level 2

    

Level 3

    

Total

FINANCIAL ASSETS:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and due from banks

​

$

14,292

​

$

14,292

​

$

—

​

$

—

​

$

14,292

Interest-bearing deposits in other banks

​

 

1,979

​

 

—

​

 

1,979

​

 

—

​

 

1,979

Restricted investment in bank stocks

​

 

11,493

​

 

—

​

 

11,493

​

 

—

​

 

11,493

Net loans

​

 

914,807

​

 

—

​

 

—

​

 

891,098

​

 

891,098

Mortgage servicing rights

​

 

241

​

 

—

​

 

—

​

 

241

​

 

241

Accrued interest receivable

​

 

5,328

​

 

—

​

 

5,328

​

 

—

​

 

5,328

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

FINANCIAL LIABILITIES:

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Demand, savings and other deposits

​

 

671,430

​

 

—

​

 

671,430

​

 

—

​

 

671,430

Time deposits

​

 

312,779

​

 

—

​

 

310,426

​

 

—

​

 

310,426

Short-term borrowings

​

 

175,311

​

 

—

​

 

175,555

​

 

—

​

 

175,555

Long-term borrowings

​

 

122,000

​

 

—

​

 

123,244

​

 

—

​

 

123,244

Subordinated debentures

​

​

25,000

​

​

—

​

​

20,378

​

​

—

​

​

20,378

Accrued interest payable

​

 

3,698

​

 

—

​

 

3,698

​

 

—

​

 

3,698

Derivative Liabilities

​

 

741

​

 

—

​

 

741

​

 

—

​

 

741

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Carrying

​

Fair Value Measurements at December 31, 2023

​

    

Amount

    

Level 1

    

Level 2

    

Level 3

    

Total

FINANCIAL ASSETS:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and due from banks

​

$

9,462

​

$

9,462

​

$

—

​

$

—

​

$

9,462

Interest-bearing deposits in other banks

​

 

7,551

​

 

—

​

 

7,551

​

 

—

​

 

7,551

Restricted investment in bank stocks

​

 

10,885

​

 

—

​

 

10,885

​

 

—

​

 

10,885

Net loans

​

 

904,153

​

 

—

​

 

—

​

 

885,840

​

 

885,840

Mortgage servicing rights

​

 

265

​

 

—

​

 

—

​

 

265

​

 

265

Accrued interest receivable

​

 

5,201

​

 

—

​

 

5,201

​

 

—

​

 

5,201

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

FINANCIAL LIABILITIES:

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Demand, savings and other deposits

​

 

686,321

​

 

—

​

 

686,321

​

 

—

​

 

686,321

Time deposits

​

 

294,118

​

 

—

​

 

292,073

​

 

—

​

 

292,073

Short-term borrowings

​

 

153,468

​

 

—

​

 

153,509

​

 

—

​

 

153,509

Long-term borrowings

​

 

122,000

​

 

—

​

 

125,343

​

 

—

​

 

125,343

Subordinated debentures

​

 

25,000

​

​

—

​

​

22,762

​

​

—

​

​

22,762

Accrued interest payable

​

​

2,823

​

 

—

​

 

2,823

​

 

—

​

 

2,823

Derivative Liabilities

​

​

4,501

​

 

—

​

 

4,501

​

 

—

​

 

4,501

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​
v3.24.2.u1
REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 2024
REVENUE RECOGNITION  
REVENUE RECOGNITION

NOTE 12 — REVENUE RECOGNITION

In accordance with ASU 2014-09 Revenue from Contracts with Customers – Topic 606, and all subsequent ASUs that modified ASC 606, the main types of revenue contracts included in non-interest income within the consolidated statements of income are as follows:

Deposits related fees and service charges

Service charges and fees on deposits, which are included as liabilities in the consolidated balance sheets, consist of fees related to monthly fees for various retail and business checking accounts, automated teller machine (“ATM”) fees (charged for withdrawals by our deposit customers from other bank ATMs) and insufficient funds fees (“NSF”) (which are charged when customers overdraw their accounts beyond available funds). All deposit liabilities are considered to have one-day terms and therefore related fees are recognized in income at the time when the services are provided to the customers. The Company elected to adopt the practical expedient related to incremental costs of obtaining deposit contracts. As such, any costs associated with acquiring the deposits, except for time deposits with maturities in excess of one year, are recognized as an expense within non-interest expense in the consolidated statements of income when incurred as the amortization period of the deposit liabilities that otherwise would have been recognized is one year or less.

Wealth/Asset/Trust Management Fees

Wealth management services are delivered to individuals, corporations and retirement funds located primarily within our geographic markets. The Trust Department of the Company conducts the wealth management operations, which provides a broad range of personal and corporate fiduciary services, including the administration of estates.

Assets held in a fiduciary capacity by the Trust Department are not assets of the Company and, therefore, are not included in our consolidated financial statements. Wealth management fees, which are contractually agreed with each customer, are earned each month and recognized on a cash basis based on average fair value of the trust assets under management. The services provided under such a contract are considered a single performance obligation under ASC 606 because they embody a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. Wealth management fees charged by the Trust Department follow a tiered structure based on the type and size of the assets under management. Wealth management fees are included within non-interest income in the consolidated statements of income. As of June 30, 2024 and December 31, 2023, the fair value of trust

assets under management was $115,340,000 and $109,064,000, respectively. The costs of acquiring asset management customers are incremental and recognized within non-interest expense in the consolidated statements of income.

Interchange Fees and Surcharges

Interchange fees are related to the acceptance and settlement of debit card transactions, both point-of-sale and ATM, to cover operating costs and risks associated with the approval and settlement of the transactions. Interchange fees vary by type of transaction and each merchant sector. Net income recognized from interchange fees is included in non-interest income on the consolidated statements of income. A surcharge is assessed for use of the Company’s ATMs by non-customers. All interchange fees and surcharges are recognized as received on a daily basis for the prior business day’s transactions. All expenses related to the settlement of debit card transactions (both point-of-sale and ATM) are recognized on a monthly basis and included in non-interest expense on the consolidated statements of income.
v3.24.2.u1
(LOSSES) EARNINGS PER SHARE
 6 Months Ended
Jun. 30, 2024
(LOSSES) EARNINGS PER SHARE  
(LOSSES) EARNINGS PER SHARE

NOTE 13 — (LOSSES) EARNINGS PER SHARE

​

Basic (losses) earnings per share is computed by dividing net (loss) income by the weighted-average number of common shares outstanding for the period. Diluted (losses) earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Corporation. At June 30, 2024 and 2023, there were no potential common shares outstanding. The following table sets forth the computation of basic and diluted (losses) earnings per share.

​

​

​

​

​

​

​

(In thousands, except earnings per share)

Three Months Ended

​

June 30, 

​

2024

    

2023

Net (loss) income

$

1,380

​

$

1,139

Weighted-average common shares outstanding

​

6,154

​

​

6,040

Basic and diluted (losses) earnings per share

$

0.23

​

$

0.19

​

​

​

​

​

​

​

​

(In thousands, except earnings per share)

Six Months Ended

​

June 30, 

​

2024

  

2023

Net income

$

(16,997)

​

$

2,496

Weighted-average common shares outstanding

​

6,138

​

​

6,030

Basic and diluted earnings per share

$

(2.77)

​

$

0.41

​
v3.24.2.u1
GOODWILL
 6 Months Ended
Jun. 30, 2024
GOODWILL  
GOODWILL

NOTE 14 — GOODWILL

Goodwill resulted from the acquisition of the Pocono Community Bank in November 2007 and of certain fixed and operating assets acquired and deposit liabilities assumed of the branch of another financial institution in Danville, Pennsylvania, in January 2004. Such goodwill represents the excess cost of the acquired assets relative to the assets’ fair value at the dates of acquisition. In accordance with current accounting standards, goodwill is not amortized. Goodwill totaled $0 at June 30, 2024 and $19,133,000 at December 31, 2023.

​

Impairment testing is performed on an annual basis, using either a qualitative or quantitative approach. The assumptions used in the impairment test of goodwill are susceptible to change based on changes in economic conditions and other factors, including our stock price. Any change in the assumptions utilized to determine the carrying value of goodwill could adversely affect our results of operations.

Goodwill was evaluated for impairment using a qualitative impairment test at December 31, 2023, and it was determined that goodwill was not impaired. Due primarily to the decrease in the Company’s stock price during the first quarter of 2024 as a triggering event, management evaluated the need for an interim goodwill impairment analysis. The decrease prompted the Company to assess its goodwill utilizing a quantitative impairment test and determined it was

more likely than not the fair value of the Company was less than the carrying amount as of March 31, 2024. Based on the results of the impairment test, the Company recorded a goodwill impairment charge of $19,133,000 effective March 31, 2024.
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Pay vs Performance Disclosure            
Net Income (Loss) $ 1,380,000 $ (18,377,000) $ 1,139,000 $ 1,357,000 $ (16,997,000) $ 2,496,000
v3.24.2.u1
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.2.u1
SECURITIES (Tables)
 6 Months Ended
Jun. 30, 2024
SECURITIES  
Schedule of amortized cost, related estimated fair value, and unrealized gains and losses for debt securities classified as Available-For-Sale

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt Securities Available-for-Sale

(Dollars in thousands)

    

​

​

    

Gross

    

Gross

    

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

June 30, 2024:

​

Cost

​

Gains

​

Losses

​

Value

U.S. Treasury securities

​

$

7,896

​

$

—

​

$

(893)

​

$

7,003

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

​

​

 

​

​

 

​

​

 

​

Mortgage-backed

​

​

157,735

​

​

35

​

​

(15,395)

​

​

142,375

Other

​

 

5,949

​

 

95

​

 

(41)

​

 

6,003

Other mortgage backed securities

​

 

51,082

​

 

109

​

 

(2,563)

​

 

48,628

Obligations of state and political subdivisions

​

 

95,673

​

 

15

​

 

(11,047)

​

 

84,641

Asset-backed securities

​

 

85,262

​

 

289

​

 

(480)

​

 

85,071

Corporate debt securities

​

 

38,011

​

 

92

​

 

(8,235)

​

 

29,868

Total

​

$

441,608

​

$

635

​

$

(38,654)

​

$

403,589

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt Securities Available-for-Sale

(Dollars in thousands)

    

​

​

    

Gross

    

Gross

    

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

December 31, 2023:

​

Cost

​

Gains

​

Losses

​

Value

U.S. Treasury securities

​

$

7,881

​

$

—

​

$

(840)

​

$

7,041

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

​

​

 

​

​

 

​

​

 

​

Mortgage-backed

​

​

152,510

​

​

—

​

​

(14,518)

​

​

137,992

Other

​

 

7,560

​

 

126

​

 

(54)

​

 

7,632

Other mortgage backed securities

​

 

36,623

​

 

168

​

 

(2,741)

​

 

34,050

Obligations of state and political subdivisions

​

 

97,899

​

 

18

​

 

(10,214)

​

 

87,703

Asset-backed securities

​

 

82,852

​

 

150

​

 

(840)

​

 

82,162

Corporate debt securities

​

 

40,647

​

 

74

​

 

(4,333)

​

 

36,388

Total

​

$

425,972

​

$

536

​

$

(33,540)

​

$

392,968
Schedule of amortized cost and estimated fair value of debt securities, by contractual maturity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

​

​

​

​

Debt Securities Available-For-Sale

(Dollars in thousands)

​

​

​

​

U.S. Government

​

Other

​

Obligations

​

​

​

​

​

​

​

​

​

​

​

Agency &

​

Mortgage

​

of State

​

Asset

​

Corporate

​

 

U.S. Treasury

 

Sponsored Agency

 

Backed Debt

 

& Political

 

Backed

 

Debt

​

    

Securities

    

Obligations1

    

Securities1

    

Subdivisions

    

Securities

    

Securities

Within 1 Year:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Amortized cost

​

$

—

​

$

—

​

$

2,950

​

$

5,590

​

$

—

​

$

—

Fair value

​

 

—

​

 

—

​

 

2,925

​

 

5,511

​

 

—

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1 - 5 Years:

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost

​

 

7,896

​

 

6,939

​

 

1,202

​

 

14,293

​

 

—

​

 

1,244

Fair value

​

 

7,003

​

 

6,898

​

 

1,157

​

 

13,743

​

 

—

​

 

1,212

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

5 - 10 Years:

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost

​

 

—

​

 

4,624

​

 

1,378

​

 

26,245

​

 

4,648

​

 

31,678

Fair value

​

 

—

​

 

4,692

​

 

1,376

​

 

22,576

​

 

4,622

​

 

28,217

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

After 10 Years:

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost

​

 

—

​

 

152,121

​

 

45,552

​

 

49,545

​

 

80,614

​

 

5,089

Fair value

​

 

—

​

 

136,788

​

 

43,170

​

 

42,811

​

 

80,449

​

 

439

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Amortized cost

​

$

7,896

​

$

163,684

​

$

51,082

​

$

95,673

​

$

85,262

​

$

38,011

Fair value

​

 

7,003

​

 

148,378

​

 

48,628

​

 

84,641

​

 

85,071

​

 

29,868

1

Mortgage-backed securities are allocated for maturity reporting at their original maturity date.
Schedule of Holdings Of Securities From Issuers In Excess Of Ten Percent Of Consolidated Stockholders Equity

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

 

​

​

Fair

 

June 30, 2024:

​

Value

 

Issuer

​

​

​

​

Sallie Mae Bank

​

$

29,712

​

Velocity Commercial Capital

​

​

25,583

​

Nelnet Student Loan Trust

​

 

16,904

​

Navient Student Loan Trust

​

​

11,739

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

​

​

​

Fair

​

December 31, 2023:

​

Value

​

Issuer

​

​

​

​

Sallie Mae Bank

​

$

25,737

​

Nelnet Student Loan Trust

​

 

15,486

​

Navient Student Loan Trust

​

​

13,179

​
Schedule of amortized cost, related estimated fair value, and unrealized gains and losses for debt securities classified as Available-For-Sale

June 30, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Less Than 12 Months

​

12 Months or More

​

Total

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

​

Fair

​

Unrealized

Available-for-Sale:

    

Value

    

Loss

    

Value

    

Loss

    

Value

    

Loss

U.S. Treasury securities

​

$

—

​

$

—

​

$

7,003

​

$

(893)

​

$

7,003

​

$

(893)

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Mortgage-backed

​

​

27,412

​

​

(138)

​

​

101,754

​

​

(15,257)

​

​

129,166

​

​

(15,395)

Other

​

 

—

​

​

—

​

​

2,416

​

​

(41)

​

 

2,416

​

 

(41)

Other mortgage-backed debt securities

​

 

20,636

​

​

(363)

​

​

21,224

​

​

(2,200)

​

 

41,860

​

 

(2,563)

Obligations of state and political subdivisions

​

 

1,246

​

​

(9)

​

​

80,387

​

​

(11,038)

​

 

81,633

​

 

(11,047)

Asset-backed securities

​

 

30,739

​

​

(134)

​

​

7,019

​

​

(346)

​

 

37,758

​

 

(480)

Corporate debt securities

​

 

4,259

​

​

(4,868)

​

​

24,742

​

​

(3,367)

​

 

29,001

​

 

(8,235)

Total

​

$

84,292

​

$

(5,512)

​

$

244,545

​

$

(33,142)

​

$

328,837

​

$

(38,654)

​

​

December 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Less Than 12 Months

​

12 Months or More

​

Total

​

    

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

Available-for-Sale:

​

Value

​

Loss

​

Value

​

Loss

​

Value

​

Loss

U.S. Treasury securities

​

$

—

​

$

—

​

$

7,041

​

$

(840)

​

$

7,041

​

$

(840)

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Mortgage-backed

​

​

23,103

​

​

(242)

​

​

102,608

​

​

(14,276)

​

​

125,711

​

​

(14,518)

Other

​

 

—

​

​

—

​

​

3,029

​

​

(54)

​

 

3,029

​

 

(54)

Other mortgage-backed debt securities

​

 

1,568

​

​

(1)

​

​

25,042

​

​

(2,740)

​

 

26,610

​

 

(2,741)

Obligations of state and political subdivisions

​

 

—

​

​

—

​

​

82,113

​

​

(10,214)

​

 

82,113

​

 

(10,214)

Asset-backed securities

​

 

52,862

​

​

(342)

​

​

12,726

​

​

(498)

​

 

65,588

​

 

(840)

Corporate debt securities

​

 

2,813

​

​

(270)

​

​

30,501

​

​

(4,063)

​

 

33,314

​

 

(4,333)

Total

​

$

80,346

​

$

(855)

​

$

263,060

​

$

(32,685)

​

$

343,406

​

$

(33,540)
Schedule of realized gains and losses recognized in net income on equity securities

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Six months ended

​

Six months ended

​

​

    

June 30, 2024

    

June 30, 2023

    

Net losses from market value fluctuations recognized during the period on equity securities

​

$

(194)

​

$

(224)

​

Less: Net gains recognized during the period on equity securities sold during the period

​

 

—

​

 

—

​

Net losses recognized during the reporting period on equity securities still held at the reporting date

​

$

(194)

​

$

(224)

​
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 6 Months Ended
Jun. 30, 2024
LOANS AND ALLOWANCE FOR CREDIT LOSSES  
Schedule of classes of the loan portfolio summarized by risk rating

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

43,114

$

112,968

$

179,049

$

126,902

$

106,892

$

232,070

$

800,995

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

81

​

225

​

3,589

​

18,759

​

22,654

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

84

​

74

​

150

​

143

​

107

​

10

​

568

Total Real Estate Loans

$

43,198

$

113,042

$

179,280

$

127,270

$

110,588

$

250,839

$

824,217

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agricultural:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

35

$

243

$

51

$

—

$

—

$

658

$

987

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

—

​

—

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

1

​

2

​

—

​

—

​

—

​

—

​

3

Total Agricultural Loans

$

36

$

245

$

51

$

—

$

—

$

658

$

990

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial and Industrial:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

5,010

$

13,015

$

9,565

$

5,202

$

3,879

$

27,216

$

63,887

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

20

​

636

​

656

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

43

​

82

​

70

​

9

​

12

​

200

​

416

Total Commercial and
Industrial Loans

$

5,053

$

13,097

$

9,635

$

5,211

$

3,911

$

28,052

$

64,959

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

1,682

$

1,877

$

966

$

727

$

125

$

794

$

6,171

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

10

​

10

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

22

​

27

​

14

​

5

​

1

​

—

​

69

Total Consumer Loans

$

1,704

$

1,904

$

980

$

732

$

126

$

804

$

6,250

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

State and Political Subdivisions:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

—

$

843

$

4,095

$

14,139

$

1,857

$

5,135

$

26,069

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

—

​

—

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

—

​

2

​

1

​

4

​

1

​

1

​

9

Total State and Political Subdivision Loans

$

—

$

845

$

4,096

$

14,143

$

1,858

$

5,136

$

26,078

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans:

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

1-6 Pass

$

49,841

$

128,946

$

193,726

$

146,970

$

112,753

$

265,873

$

898,109

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

81

​

225

​

3,609

​

19,405

​

23,320

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

150

​

187

​

235

​

161

​

121

​

211

​

1,065

Total Loans

$

49,991

$

129,133

$

194,042

$

147,356

$

116,483

$

285,489

$

922,494

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

2023

​

2022

​

2021

​

2020

​

Prior

​

Total

Gross Charge Offs:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate

$

—

$

—

$

—

$

—

$

—

$

—

$

—

Agricultural

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Commercial and Industrial

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Consumer

​

—

​

5

​

12

​

5

​

6

​

5

​

33

State and Political Subdivisions

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Total Gross Charge Offs

$

—

$

5

$

12

$

5

$

6

$

5

$

33

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

110,819

$

186,729

$

132,724

$

110,038

$

54,543

$

192,686

$

787,539

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

86

​

587

​

3,661

​

9,452

​

9,598

​

23,384

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

130

​

176

​

153

​

116

​

(13)

​

8

​

570

Total Real Estate Loans

$

110,949

$

186,991

$

133,464

$

113,815

$

63,982

$

202,292

$

811,493

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agricultural:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

—

$

59

$

—

$

—

$

—

$

611

$

670

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

—

​

—

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

—

​

1

​

—

​

—

​

—

​

—

​

1

Total Agricultural Loans

$

—

$

60

$

—

$

—

$

—

$

611

$

671

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial and Industrial:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

12,672

$

10,186

$

5,776

$

7,439

$

6,833

$

22,927

$

65,833

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

650

​

650

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

95

​

83

​

24

​

17

​

208

​

(1)

​

426

Total Commercial and
Industrial Loans

$

12,767

$

10,269

$

5,800

$

7,456

$

7,041

$

23,576

$

66,909

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

2,415

$

1,238

$

926

$

206

$

110

$

802

$

5,697

7    Special Mention

​

58

​

—

​

—

​

—

​

—

​

—

​

58

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

—

​

—

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

38

​

20

​

8

​

2

​

1

​

—

​

69

Total Consumer Loans

$

2,511

$

1,258

$

934

$

208

$

111

$

802

$

5,824

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

State and Political Subdivisions:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

731

$

4,095

$

14,139

$

1,905

$

—

$

5,303

$

26,173

7    Special Mention

​

—

​

—

​

—

​

—

​

—

​

—

​

—

8    Substandard

​

—

​

—

​

—

​

—

​

—

​

—

​

—

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

2

​

1

​

4

​

1

​

—

​

—

​

8

Total State and Political Subdivision Loans

$

733

$

4,096

$

14,143

$

1,906

$

—

$

5,303

$

26,181

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans:

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

1-6 Pass

$

126,637

$

202,307

$

153,565

$

119,588

$

61,486

$

222,329

$

885,912

7    Special Mention

​

58

​

—

​

—

​

—

​

—

​

—

​

58

8    Substandard

​

—

​

86

​

587

​

3,661

​

9,452

​

10,248

​

24,034

9    Doubtful

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Unearned discount

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Net deferred loan fees and costs

​

265

​

281

​

189

​

136

​

196

​

7

​

1,074

Total Loans

$

126,960

$

202,674

$

154,341

$

123,385

$

71,134

$

232,584

$

911,078

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior

​

Total

Gross Charge Offs:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate

$

—

$

—

$

—

$

—

$

—

$

—

$

—

Agricultural

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Commercial and Industrial

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Consumer

​

2

​

23

​

13

​

2

​

4

​

13

​

57

State and Political Subdivisions

​

—

​

—

​

—

​

—

​

—

​

—

​

—

Total Gross Charge Offs

$

2

$

23

$

13

$

2

$

4

$

13

$

57

​
Loans individually or collectively evaluated for their impairment and related allowance, by loan class

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

    

​

    

​

    

​

    

State and

    

​

​

​

Real

​

​

​

Commercial

​

​

​

Political

​

​

​

​

Estate

​

Agricultural

​

and Industrial

​

Consumer

​

Subdivisions

​

Total

As of and for the three months ended June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for Credit Losses:

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Beginning balance

$

6,725

​

$

1

​

$

322

​

$

85

​

$

63

​

$

7,196

Charge-offs

 

—

​

 

—

​

 

—

​

 

(21)

​

 

—

​

 

(21)

Recoveries

 

1

​

 

—

​

 

1

​

 

—

​

 

—

​

 

2

Provision

 

480

​

 

1

​

​

2

​

​

27

​

​

—

​

​

510

Ending Balance

$

7,206

​

$

2

​

$

325

​

$

91

​

$

63

​

$

7,687

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

    

​

    

​

    

​

    

State and

    

​

​

​

Real

​

​

​

Commercial

​

​

​

Political

​

​

​

​

Estate

​

Agricultural

​

and Industrial

​

Consumer

​

Subdivisions

​

Total

As of and for the six months ended June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning balance January 1, 2024

$

6,539

​

$

1

​

$

265

​

$

78

​

$

42

​

$

6,925

Charge-offs

 

—

​

 

—

​

 

—

​

 

(33)

​

 

—

​

 

(33)

Recoveries

 

19

​

 

—

​

 

1

​

 

1

​

 

—

​

 

21

Provision

 

648

​

 

1

​

 

59

​

 

45

​

 

21

​

 

774

Ending Balance

$

7,206

​

$

2

​

$

325

​

$

91

​

$

63

​

$

7,687

Ending balance: individually

 

  

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

7,206

​

$

2

​

$

325

​

$

91

​

$

63

​

$

7,687

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reserve for Unfunded Lending Commitments

$

159

​

$

—

​

$

36

​

$

—

​

$

1

​

$

196

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans Receivable:

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Ending Balance

$

824,217

​

$

990

​

$

64,959

​

$

6,250

​

$

26,078

​

$

922,494

Ending balance: individually

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

3,929

​

$

309

​

$

611

​

$

—

​

$

—

​

$

4,849

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

820,288

​

$

681

​

$

64,348

​

$

6,250

​

$

26,078

​

$

917,645

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

Real

    

​

    

Commercial

    

​

​

    

​

Political

    

​

​

​

Estate

​

Agricultural

​

and Industrial

​

Consumer

​

Subdivisions

​

Total

As of and for the three months ended June 30, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for Loan Losses:

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Beginning balance

$

6,735

​

$

1

​

$

265

​

$

93

​

$

48

​

$

7,142

Charge-offs

 

—

​

 

—

​

 

—

​

 

(21)

​

 

—

​

 

(21)

Recoveries

 

1

​

 

—

​

 

1

​

 

—

​

​

—

​

 

2

Provision (credit)

 

18

​

 

—

​

​

2

​

​

17

​

​

(3)

​

​

34

Ending Balance

$

6,754

​

$

1

​

$

268

​

$

89

​

$

45

​

$

7,157

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

Real

​

​

​

Commercial

​

​

​

Political

​

​

​

​

Estate

​

Agricultural

​

and Industrial

​

Consumer

​

Subdivisions

​

Total

As of and for the six months ended June 30, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for Credit Losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning balance December 31, 2022

$

7,483

​

$

6

​

$

504

​

$

84

​

$

197

​

$

8,274

CECL adoption adjustment

​

(717)

​

​

(4)

​

​

(261)

​

​

11

​

​

(148)

​

​

(1,119)

Beginning balance January 1, 2023

​

6,766

​

​

2

​

​

243

​

​

95

​

​

49

​

​

7,155

Charge-offs

 

—

​

 

—

​

 

—

​

 

(38)

​

 

—

​

 

(38)

Recoveries

 

2

​

 

—

​

 

2

​

 

2

​

 

—

​

 

6

(Credit) Provision

 

(14)

​

 

(1)

​

 

23

​

 

30

​

 

(4)

​

 

34

Ending Balance

$

6,754

​

$

1

​

$

268

​

$

89

​

$

45

​

$

7,157

Ending balance: individually

 

  

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

6,754

​

$

1

​

$

268

​

$

89

​

$

45

​

$

7,157

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reserve for Unfunded Lending Commitments

$

225

​

$

—

​

$

35

​

$

—

​

$

—

​

$

260

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans Receivable:

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Ending Balance

$

774,688

​

$

862

​

$

61,313

​

$

6,129

​

$

28,247

​

$

871,239

Ending balance: individually

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

4,445

​

$

309

​

$

644

​

$

—

​

$

—

​

$

5,398

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

770,243

​

$

553

​

$

60,669

​

$

6,129

​

$

28,247

​

$

865,841

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

    

​

    

​

    

​

    

State and

    

​

​

​

Real

​

​

​

Commercial

​

​

​

Political

​

​

​

​

Estate

​

Agricultural

​

and Industrial

​

Consumer

​

Subdivisions

​

Total

As of and for the year ended December 31, 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for Credit Losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at December 31, 2022

$

7,483

​

$

6

​

$

504

​

$

84

​

$

197

​

$

8,274

CECL adoption adjustment

​

(717)

​

​

(4)

​

​

(261)

​

​

11

​

​

(148)

​

​

(1,119)

Beginning balance January 1, 2023

​

6,766

​

​

2

​

​

243

​

​

95

​

​

49

​

​

7,155

Charge-offs

 

—

​

 

—

​

 

—

​

 

(57)

​

 

—

​

 

(57)

Recoveries

 

37

​

 

—

​

 

2

​

 

5

​

 

—

​

 

44

(Credit) Provision

 

(264)

​

 

(1)

​

 

20

​

 

35

​

 

(7)

​

 

(217)

Ending Balance

$

6,539

​

$

1

​

$

265

​

$

78

​

$

42

​

$

6,925

Ending balance: individually

 

  

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

6,539

​

$

1

​

$

265

​

$

78

​

$

42

​

$

6,925

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reserve for Unfunded Lending Commitments

$

140

​

$

—

​

$

25

​

$

—

​

$

1

​

$

166

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans Receivable:

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Ending Balance

$

811,493

​

$

671

​

$

66,909

​

$

5,824

​

$

26,181

​

$

911,078

Ending balance: individually

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

4,005

​

$

309

​

$

611

​

$

—

​

$

—

​

$

4,925

Ending balance: collectively

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

evaluated for impairment

$

807,488

​

$

362

​

$

66,298

​

$

5,824

​

$

26,181

​

$

906,153

​

The Company's activity in the allowance for credit losses on unfunded commitments for the six months ended June 30, 2024 and 2023 was as follows:

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

​

​

​

​

2024

    

2023

Balance at December 31

​

$

166

​

$

68

CECL adoption adjustment

​

​

—

​

​

147

Credit for credit losses on unfunded commitments

​

​

30

​

​

45

Balance at June 30

​

$

196

 

$

260
Summary of outstanding loan balances by loan class prior to allocation of net deferred fees and costs

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

June 30,

 

December 31,

​

​

2024

 

2023

Real Estate

​

$

823,649

​

$

810,923

Agricultural

​

​

987

​

​

670

Commercial and Industrial

​

​

64,543

​

​

66,483

Consumer

​

​

6,181

​

​

5,755

State and Political Subdivisions

​

​

26,069

​

​

26,173

Subtotal

​

​

921,429

​

​

910,004

Net Deferred Fees and Costs

​

​

1,065

​

​

1,074

Allowance for Credit Losses

​

 

(7,687)

​

​

(6,925)

Loans, Net

​

$

914,807

​

$

904,153
Schedule of the outstanding recorded investment of TDRs

​

​

​

​

​

(Dollars in thousands)

    

June 30,

​

​

2024

Modifications of Loans to Borrowers Experiencing Financial Difficulty:

​

​

​

Non-Accrual

​

$

—

Accruing

​

 

9,455

Total

​

$

9,455
Schedule of the loan modifications categorized as TDRs

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Six Months Ended June 30, 2024

​

​

​

​

Pre-Modification

​

Post-Modification

​

​

​

​

​

​

​

Outstanding

​

Outstanding

​

​

​

​

​

Number of

​

Recorded

​

Recorded

​

Recorded

​

​

Contracts

​

Investment

​

Investment

​

Investment

Real Estate

​

1

​

$

9,455

​

$

9,455

​

$

9,455

Total

​

1

​

$

9,455

​

$

9,455

​

$

9,455

​

​

​

​

​

​

​

​

​

​

​

​
Schedule of loan modifications made for loans categorized as TDRs

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Six Months Ended June 30, 2024

​

    

Rate

​

Term

​

Payment

​

Number

​

​

Modification

​

Modification

​

Modification

​

Modified

Real Estate

​

—

​

—

​

1

​

1

Total

​

—

​

—

​

1

​

1

​

​

​

​

​

​

​

​

​
Schedule of recorded investment, unpaid principal balance, related allowance, average recorded investment, and interest income recognized with respect to the Corporation's impaired loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 2024

​

​

Recorded

​

Recorded

​

​

​

​

Unpaid

​

Unpaid

​

​

​

​

​

​

​

​

Investment

​

Investment

​

​

​

​

Principal

​

Principal

​

Total

​

​

​

​

​

    

With

​

With No

​

Total

​

​

Balance With

​

Balance With

​

Unpaid

​

​

​

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

No Related

​

Principal

​

​

Related

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Balance

​

​

Allowance

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

​

​

  

Real Estate

​

$

—

​

$

3,929

​

$

3,929

​

​

$

—

​

$

5,918

​

$

5,918

​

​

$

—

Agricultural

​

​

—

​

​

—

​

​

—

​

​

​

—

​

​

—

​

​

—

​

​

​

—

Commercial and Industrial

​

​

—

​

​

611

​

​

611

​

​

​

—

​

​

611

​

​

611

​

​

​

—

Total

​

$

—

​

$

4,540

​

$

4,540

​

​

$

—

​

$

6,529

​

$

6,529

​

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

December 31, 2023

​

​

Recorded

​

Recorded

​

​

​

​

Unpaid

​

Unpaid

​

​

​

​

​

​

​

​

Investment

​

Investment

​

​

​

​

Principal

​

Principal

​

Total

​

​

​

​

​

    

With

​

With No

​

Total

​

​

Balance With

​

Balance With

​

Unpaid

​

​

​

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

No Related

​

Principal

​

​

Related

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Balance

​

​

Allowance

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

​

​

  

Real Estate

​

$

—

​

$

4,005

​

$

4,005

​

​

$

—

​

$

5,994

​

$

5,994

​

​

$

—

Agricultural

​

​

—

​

​

—

​

​

—

​

​

​

—

​

​

—

​

​

—

​

​

​

—

Commercial and Industrial

​

​

—

​

​

611

​

​

611

​

​

​

—

​

​

611

​

​

611

​

​

​

—

Total

​

$

—

​

$

4,616

​

$

4,616

​

​

$

—

​

$

6,605

​

$

6,605

​

​

$

—

​

The recorded investment represents the loan balance reflected on the consolidated balance sheets net of any charge-offs. The unpaid balance is equal to the gross amount due on the loan.

The average recorded investment and interest income recognized for the Company’s non-accrual loans are summarized below for the three and six months ended June 30, 2024 and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Three Months Ended June 30, 2024

​

​

Average

​

Average

​

​

​

​

Interest

​

Interest

​

​

​

​

​

Recorded

​

Recorded

​

​

​

​

Income

​

Income

​

​

​

​

​

Investment

​

Investment

​

Total

​

​

Recognized

​

Recognized

​

Total

​

​

    

With

​

With No

​

Average

​

​

With

​

With No

​

Interest

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

Related

​

Income

​

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Recognized

​

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

Real Estate

​

$

—

​

$

3,957

​

$

3,957

​

​

$

—

​

$

—

​

$

—

​

Commercial and Industrial

​

​

—

​

​

611

​

​

611

​

​

​

—

​

​

—

​

​

—

​

Total

​

$

—

​

$

4,568

​

$

4,568

​

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Six Months Ended June 30, 2024

​

​

Average

​

Average

​

​

​

​

Interest

​

Interest

​

​

​

​

​

Recorded

​

Recorded

​

​

​

​

Income

​

Income

​

​

​

​

​

Investment

​

Investment

​

Total

​

​

Recognized

​

Recognized

​

Total

​

​

    

With

​

With No

​

Average

​

​

With

​

With No

​

Interest

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

Related

​

Income

​

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Recognized

​

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

Real Estate

​

$

—

​

$

3,973

​

$

3,973

​

​

$

—

​

$

—

​

$

—

​

Commercial and Industrial

​

​

—

​

​

611

​

​

611

​

​

​

—

​

​

—

​

​

—

​

Total

​

$

—

​

$

4,584

​

$

4,584

​

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Three Months Ended June 30, 2023

​

​

Average

​

Average

​

​

​

​

Interest

​

Interest

​

​

​

​

​

Recorded

​

Recorded

​

​

​

​

Income

​

Income

​

​

​

​

​

Investment

​

Investment

​

Total

​

​

Recognized

​

Recognized

​

Total

​

​

    

With

​

With No

​

Average

​

​

With

​

With No

​

Interest

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

Related

​

Income

​

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Recognized

​

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

Real Estate

​

$

—

​

$

4,367

​

$

4,367

​

​

$

—

​

$

4

​

$

4

​

Commercial and Industrial

​

​

—

​

​

653

​

​

653

​

​

​

—

​

​

—

​

​

—

​

Total

​

$

—

​

$

5,020

​

$

5,020

​

​

$

—

​

$

4

​

$

4

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Six Months Ended June 30, 2023

​

​

Average

​

Average

​

​

​

​

Interest

​

Interest

​

​

​

​

​

Recorded

​

Recorded

​

​

​

​

Income

​

Income

​

​

​

​

​

Investment

​

Investment

​

Total

​

​

Recognized

​

Recognized

​

Total

​

​

    

With

​

With No

​

Average

​

​

With

​

With No

​

Interest

​

​

​

Related

​

Related

​

Recorded

​

​

Related

​

Related

​

Income

​

​

​

Allowance

​

Allowance

​

Investment

​

​

Allowance

​

Allowance

​

Recognized

​

​

 

​

  

​

​

​

​

​

​

​

​

​

  

​

​

​

​

​

​

​

Real Estate

​

$

—

​

$

4,390

​

$

4,390

​

​

$

—

​

$

—

​

$

—

​

Commercial and Industrial

​

​

—

​

​

659

​

​

659

​

​

​

—

​

​

—

​

​

—

​

Total

​

$

—

​

$

5,049

​

$

5,049

​

​

$

—

​

$

—

​

$

—

​

​
Schedule of financial receivables that are collateral-dependent loans

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 2024

​

    

Real Estate

    

Other

Real Estate

​

$

3,929

​

$

—

Agricultural

​

​

—

​

​

309

Commercial and Industrial

​

​

—

​

​

611

Total

​

$

3,929

​

$

920

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

December 31, 2023

​

    

Real Estate

    

Other

Real Estate

​

$

4,005

​

$

—

Agricultural

​

​

—

​

​

309

Commercial and Industrial

​

​

—

​

​

611

Total

​

$

4,005

​

$

920
Schedule of total non-performing assets

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 

​

December 31, 

​

    

2024

    

2023

Real Estate

​

$

3,929

​

$

4,005

Agricultural

​

​

—

​

​

—

Commercial and Industrial

​

​

611

​

​

611

Consumer

 

​

—

​

​

—

State and Political Subdivisions

​

 

—

​

 

—

Total non-accrual loans

​

 

4,540

​

 

4,616

Foreclosed assets held for resale

​

 

—

​

 

—

Loans past-due 90 days or more and still accruing interest

​

 

495

​

 

1,065

Total non-performing assets

​

$

5,035

​

$

5,681
Schedule of the classes of the loan portfolio, including non-accrual loans and TDRs, summarized by past-due status

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

90 Days

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Or Greater

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Past Due

​

​

​

​

​

​

​

​

90 Days

​

​

​

​

​

Current-

​

​

​

​

and Still

​

​

30-59 Days

​

60-89 Days

​

or Greater

​

Total

​

​

29 Days

​

Total

​

Accruing

​

​

Past Due

​

Past Due

​

Past Due

​

Past Due

​

Past Due

​

Loans

​

Interest

June 30, 2024:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Real Estate

​

$

3,723

​

$

4,957

​

$

4,423

​

$

13,103

​

$

811,114

​

$

824,217

​

$

495

Agricultural

​

​

—

​

​

—

​

​

—

​

​

—

​

​

990

​

​

990

​

​

—

Commercial and Industrial

​

​

144

​

​

—

​

​

611

​

​

755

​

​

64,204

​

​

64,959

​

​

—

Consumer

​

 

21

​

 

—

​

 

—

​

 

21

​

 

6,229

​

 

6,250

​

 

—

State and Political Subdivisions

​

 

—

​

 

—

​

 

—

​

 

—

​

 

26,078

​

 

26,078

​

 

—

Total

​

$

3,888

​

$

4,957

​

$

5,034

​

$

13,879

​

$

908,615

​

$

922,494

​

$

495

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

90 Days

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Or Greater

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Past Due

​

​

​

​

​

​

​

​

90 Days

​

​

​

​

​

Current-

​

​

​

​

and Still

​

​

30-59 Days

​

60-89 Days

​

or Greater

​

Total

​

​

29 Days

​

Total

​

Accruing

​

​

Past Due

​

Past Due

​

Past Due

​

Past Due

​

Past Due

​

Loans

​

Interest

December 31, 2023:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Real Estate

​

$

2,155

​

$

379

​

$

5,069

​

$

7,603

​

$

803,890

​

$

811,493

​

$

1,065

Agricultural

​

​

—

​

​

—

​

​

—

​

​

—

​

​

671

​

​

671

​

​

—

Commercial and Industrial

​

​

6

​

​

—

​

​

591

​

​

597

​

​

66,312

​

​

66,909

​

​

—

Consumer

​

 

21

​

 

4

​

 

—

​

 

25

​

 

5,799

​

 

5,824

​

 

—

State and Political Subdivisions

​

 

—

​

 

—

​

 

—

​

 

—

​

 

26,181

​

 

26,181

​

 

—

Total

​

$

2,182

​

$

383

​

$

5,660

​

$

8,225

​

$

902,853

​

$

911,078

​

$

1,065
v3.24.2.u1
DEPOSITS (Tables)
 6 Months Ended
Jun. 30, 2024
DEPOSITS  
Schedule of major classifications of deposits

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

June 30, 

​

December 31, 

​

​

2024

    

2023

Non-interest bearing demand

 

$

206,004

​

$

198,569

Interest bearing demand

​

 

263,637

​

 

275,472

Savings

​

 

201,789

​

 

212,280

Time certificates of deposits less than $250,000

​

 

275,059

​

 

259,841

Time certificates of deposits $250,000 or greater

​

 

36,234

​

 

33,185

Other time

​

 

1,486

​

 

1,092

Total deposits

​

$

984,209

​

$

980,439
v3.24.2.u1
BORROWINGS (Tables)
 6 Months Ended
Jun. 30, 2024
BORROWINGS  
Schedule of Short-term borrowings and weighted-average interest rates

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 2024

​

​

December 31, 2023

 

​

​

​

​

​

​

Average

​

​

​

​

​

Average

 

​

​

    

Amount

    

Rate

    

​

Amount

    

Rate

 

    

Federal funds purchased

 

$

—

​

6.59

%  

​

$

—

 

6.57

%

 

Securities sold under agreements to repurchase

​

 

27,109

​

4.38

%  

​

 

19,708

 

3.28

%

​

Federal Discount Window

​

 

—

​

5.51

%  

​

 

1

 

4.99

%

​

Federal Home Loan Bank of Pittsburgh

​

 

148,202

​

5.76

%  

​

 

133,759

 

5.45

%

​

Total

​

$

175,311

​

5.52

%  

​

$

153,468

 

5.21

%

​
Schedule of short-term borrowings subject to an enforceable master netting arrangement or repurchase agreements

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

    

Gross

    

Net Amounts

    

​

​

    

​

​

    

​

​

​

​

​

​

​

Amounts

​

of Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Offset

​

Presented

​

​

​

​

​

​

​

​

​

​

​

Gross

​

in the

​

in the

​

​

​

​

​

​

​

​

​

​

​

Amounts of

​

Consolidated

​

Consolidated

​

​

​

​

Cash

​

​

​

​

​

Recognized

​

Balance

​

Balance

​

Financial

​

Collateral

​

Net

​

​

Liabilities

​

Sheet

​

Sheet

​

Instruments

​

Pledge

​

Amount

June 30, 2024

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Repurchase agreements (a)

​

$

27,109

​

$

—

​

$

27,109

​

$

(27,109)

​

$

—

​

$

—

​

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

December 31, 2023

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Repurchase agreements (a)

​

$

19,708

​

$

—

​

$

19,708

​

$

(19,708)

​

$

—

​

$

—

(a)As of June 30, 2024 and December 31, 2023, the fair value of securities pledged in connection with repurchase agreements was $37,880,000 and $28,902,000, respectively.
Schedule of the remaining contractual maturity of the master netting arrangement or repurchase agreements

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Remaining Contractual Maturity of the Agreements

​

​

Overnight

​

​

​

​

Greater

​

Greater

​

​

​

​

​

and

​

Up to

​

30 -90

​

than

​

​

​

​

​

Continuous

​

30 days

​

Days

​

90 Days

​

Total

June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Repurchase agreements and repurchase-to-maturity transactions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

U.S. Treasury and/or agency securities

​

$

27,109

​

$

—

​

$

—

​

$

—

​

$

27,109

Total

​

$

27,109

​

$

—

​

$

—

​

$

—

​

$

27,109
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES (Tables)
 6 Months Ended
Jun. 30, 2024
COMMITMENTS AND CONTINGENCIES  
Schedule of weighted-average term and discount rates for operating and leases

​

​

​

​

​

​

​

​

​

    

June 30, 

​

​

December 31, 

​

​

​

2024

​

​

2023

​

Weighted-average term (years)

 

19.45

​

 

19.75

​

Weighted-average discount rate

 

4.20%

​

 

4.22%

​
Schedule of maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

​

​

​

​

 

June 30, 

 

December 31, 

Minimum Lease Payments due:

​

2024

​

2023

Within one year

​

$

158

​

$

175

After one but within two years

​

 

140

​

 

140

After two but within three years

​

 

147

​

 

140

After three but within four years

​

 

156

​

 

154

After four but within five years

​

 

157

​

 

157

After five years

​

 

2,238

​

 

2,317

Total undiscounted cash flows

​

 

2,996

​

 

3,083

Discount on cash flows

​

 

(1,031)

​

 

(1,107)

Total lease liability

​

$

1,965

​

$

1,976

​
v3.24.2.u1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - (Tables)
 6 Months Ended
Jun. 30, 2024
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES  
Schedule of fair value of the Company's derivative financial instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 2024

​

 

Derivative Assets

​

​

Derivative Liabilities

​

​

Location

​

​

Fair Value

​

​

Location

​

​

Fair Value

Derivatives designated as hedging instruments:

​

​

​

​

​

​

​

​

​

​

​

Interest rate swaps

​

Other Assets

​

$

—

​

​

Other Liabilities

​

$

741

Total

​

​

​

$

—

​

​

​

​

$

741

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

December 31, 2023

​

 

Derivative Assets

​

​

Derivative Liabilities

​

​

Location

​

​

Fair Value

​

​

Location

​

​

Fair Value

Derivatives designated as hedging instruments:

​

​

​

​

​

​

​

​

​

​

​

Interest rate swaps

​

Other Assets

​

$

—

​

​

Other Liabilities

​

$

4,501

Total

​

​

​

$

—

​

​

​

​

$

4,501
Schedule of derivative liabilities subject to an enforceable master netting arrangement

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Gross

    

Net Amounts

    

​

​

    

​

​

    

​

​

​

​

​

​

​

Amounts

​

of Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Offset

​

Presented

​

​

​

​

​

​

​

​

​

​

​

Gross

​

in the

​

in the

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Amounts of

​

Consolidated

​

Consolidated

​

​

​

​

Cash

​

​

​

​

​

Recognized

​

Balance

​

Balance

​

Financial

​

Collateral

​

Net

​

​

Liabilities

​

Sheet

​

Sheet

​

Instruments

​

Pledge

​

Amount

June 30, 2024

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Derivatives

​

$

741

​

$

—

​

$

741

​

$

—

​

$

(741)

​

$

—

​

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

December 31, 2023

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Derivatives

​

$

4,501

​

$

—

​

$

4,501

​

$

—

​

$

(4,501)

​

$

—
Schedule of the remaining contractual maturity of the master netting arrangements

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Remaining Contractual Maturity of the Agreements

​

​

​

​

​

​

​

​

​

Greater

​

​

​

(Dollars in thousands)

​

Up to

​

1 to 3

​

3 to 5

​

than

​

​

​

​

​

1 Year

​

Years

​

Years

​

5 Years

​

Total

June 30, 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivatives

​

$

—

​

$

—

​

$

741

​

$

—

​

$

741

Total

​

$

—

​

$

—

​

$

741

​

$

—

​

$

741
Schedule of cumulative amount of fair value hedging adjustment included carrying amount of hedged assets

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 

​

December 31, 

​

 

2024

​

2023

Carrying amount of hedged assets:

​

Closed Portfolio Amount

​

Closed Portfolio Amount

Available-for-sale - Municipals

$

50,809

$

50,964

Available-for-sale - MBS

​

34,261

​

35,806

Total

$

85,070

$

86,770

​

​

​

​

​

Interest rate swaps notional amount

$

50,000

$

50,000
Schedule of cumulative amount of fair value hedging adjustment included carrying amount of assets

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 

​

December 31, 

​

 

2024

​

2023

Cumulative amount of fair value hedging adjustment included in the carrying amount of assets:

​

​

​

​

Available-for-sale - Municipals

$

(222)

$

(1,230)

Available-for-sale - MBS

​

(73)

​

(407)

Total

$

(295)

$

(1,637)
Schedule of pre-tax effects of the Company's derivative instruments designated as fair value hedges

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 

​

 

2024

​

2023

Amount of loss recognized in other comprehensive loss

$

(233)

$

—

Amount of gain, net of fair value re-measurements, included in interest income

​

272

​

—
Schedule of pre-tax effects of the Company's derivative instruments designated as cash flow hedges

​

​

​

​

​

​

(Dollars in thousands)

​

June 30, 

​

 

2024

​

2023

Amount of loss recognized in other comprehensive loss

$

(366)

$

—

Amount of gain reclassified from accumulated other comprehensive loss to interest expense

​

502

​

—

​

​

​

​

​

Interest rate swaps notional amount

$

100,000

$

—
v3.24.2.u1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK (Tables)
 6 Months Ended
Jun. 30, 2024
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK  
Schedule of Financial instruments whose contract amounts representing credit risk

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

​

​

​

    

​

​

June 30, 2024

    

December 31, 2023

​

Financial instruments whose contract amounts represent credit risk:

 

​

  

 

​

  

 

Commitments to extend credit

​

$

126,834

​

$

116,954

​

Financial standby letters of credit

​

$

2,150

​

$

2,120

​

Performance standby letters of credit

​

$

3,905

​

$

3,688

​
v3.24.2.u1
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2024
FAIR VALUE MEASUREMENTS  
Schedule of securities measured at fair value on a recurring basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

​

Level 1

    

Level 2

    

Level 3

    

Total

Debt Securities Available-for-Sale:

 

​

  

 

​

  

 

​

  

 

​

  

U.S. Treasury securities

​

$

7,003

​

$

—

​

$

—

​

$

7,003

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

  

​

 

​

​

 

  

​

 

​

Mortgaged-backed

​

​

—

​

​

142,375

​

​

—

​

​

142,375

Other

​

 

—

​

 

6,003

​

 

—

​

 

6,003

Other mortgage backed debt securities

​

 

—

​

 

48,628

​

 

—

​

 

48,628

Obligations of state and political subdivisions

​

 

—

​

 

84,641

​

 

—

​

 

84,641

Asset-backed securities

​

 

—

​

 

85,071

​

 

—

​

 

85,071

Corporate debt securities

​

 

—

​

 

29,868

​

 

—

​

 

29,868

Total debt securities available-for-sale

​

 

7,003

​

 

396,586

​

 

—

​

 

403,589

Marketable equity securities

​

 

1,288

​

 

—

​

 

—

​

 

1,288

Total recurring fair value measurements

​

$

8,291

​

$

396,586

​

$

—

​

$

404,877

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

Level 1

    

Level 2

    

Level 3

    

Total

Debt Securities Available-for-Sale:

 

​

  

 

​

  

 

​

  

 

​

  

U.S. Treasury securities

​

$

7,041

​

$

—

​

$

—

​

$

7,041

Obligations of U.S. Government Agencies and Sponsored Agencies:

​

 

  

​

 

  

​

 

  

​

 

  

Mortgaged-backed

​

​

—

​

​

137,992

​

​

—

​

​

137,992

Other

​

 

—

​

 

7,632

​

 

—

​

 

7,632

Other mortgage backed debt securities

​

 

—

​

 

34,050

​

 

—

​

 

34,050

Obligations of state and political subdivisions

​

 

—

​

 

87,703

​

 

—

​

 

87,703

Asset-backed securities

​

 

—

​

 

82,162

​

 

—

​

 

82,162

Corporate debt securities

​

 

—

​

 

36,388

​

 

—

​

 

36,388

Total debt securities available-for-sale

​

 

7,041

​

 

385,927

​

 

—

​

 

392,968

Marketable equity securities

​

 

1,482

​

 

—

​

 

—

​

 

1,482

Total recurring fair value measurements

​

$

8,523

​

$

385,927

​

$

—

​

$

394,450
Schedule of individually evaluated loans measured at fair value on a nonrecurring basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

Level 1

    

Level 2

    

Level 3

    

Total

Assets at June 30, 2024

 

​

  

 

​

  

 

​

  

 

​

  

Individually evaluated loans:

 

​

  

 

​

  

 

​

  

 

​

  

Real Estate

​

$

—

​

$

—

​

$

1,953

​

$

1,953

Total individually evaluated loans

​

$

—

​

$

—

​

$

1,953

​

$

1,953

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

    

Level 1

    

Level 2

    

Level 3

    

Total

Assets at December 31, 2023

 

​

  

 

​

  

 

​

  

 

​

  

Individually evaluated loans:

 

​

  

 

​

  

 

​

  

 

​

  

Real Estate

​

$

—

​

$

—

​

$

1,990

​

$

1,990

Total individually evaluated loans

​

$

—

​

$

—

​

$

1,990

​

$

1,990
Schedule of fair value measurement inputs and valuation techniques

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Quantitative Information about Level 3 Fair Value Measurements

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

    

Estimate

    

Valuation Technique

    

Unobservable Input

    

Range

    

Average

Individually evaluated loans - collateral dependent

​

$

1,953

 

Appraisal of collateral1,3
Certificate of Inspection1,3

 

Appraisal adjustments2
Qualitative Adjustments4

 

(5%) – (5%)

 

(5%)

​

​

 

  

 

  

 

  

 

  

 

  

December 31, 2023

​

 

  

 

  

 

  

 

  

 

  

Individually evaluated loans - collateral dependent

​

$

1,990

 

Appraisal of collateral1,3
Certificate of Inspection1,3

 

Appraisal adjustments2
Qualitative Adjustments4

 

(5%) – (5%)

 

(5%)

1. Fair value is generally determined through independent appraisals or Certificates of Inspection of the underlying collateral, as defined by Bank regulators.

2. Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value.

3. Includes qualitative adjustments by management and estimated liquidation expenses.

4. Collateral values may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses.
Schedule of fair value of financial instruments, including financial assets and financial liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Carrying

​

Fair Value Measurements at June 30, 2024

​

    

Amount

    

Level 1

    

Level 2

    

Level 3

    

Total

FINANCIAL ASSETS:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and due from banks

​

$

14,292

​

$

14,292

​

$

—

​

$

—

​

$

14,292

Interest-bearing deposits in other banks

​

 

1,979

​

 

—

​

 

1,979

​

 

—

​

 

1,979

Restricted investment in bank stocks

​

 

11,493

​

 

—

​

 

11,493

​

 

—

​

 

11,493

Net loans

​

 

914,807

​

 

—

​

 

—

​

 

891,098

​

 

891,098

Mortgage servicing rights

​

 

241

​

 

—

​

 

—

​

 

241

​

 

241

Accrued interest receivable

​

 

5,328

​

 

—

​

 

5,328

​

 

—

​

 

5,328

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

FINANCIAL LIABILITIES:

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Demand, savings and other deposits

​

 

671,430

​

 

—

​

 

671,430

​

 

—

​

 

671,430

Time deposits

​

 

312,779

​

 

—

​

 

310,426

​

 

—

​

 

310,426

Short-term borrowings

​

 

175,311

​

 

—

​

 

175,555

​

 

—

​

 

175,555

Long-term borrowings

​

 

122,000

​

 

—

​

 

123,244

​

 

—

​

 

123,244

Subordinated debentures

​

​

25,000

​

​

—

​

​

20,378

​

​

—

​

​

20,378

Accrued interest payable

​

 

3,698

​

 

—

​

 

3,698

​

 

—

​

 

3,698

Derivative Liabilities

​

 

741

​

 

—

​

 

741

​

 

—

​

 

741

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

Carrying

​

Fair Value Measurements at December 31, 2023

​

    

Amount

    

Level 1

    

Level 2

    

Level 3

    

Total

FINANCIAL ASSETS:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and due from banks

​

$

9,462

​

$

9,462

​

$

—

​

$

—

​

$

9,462

Interest-bearing deposits in other banks

​

 

7,551

​

 

—

​

 

7,551

​

 

—

​

 

7,551

Restricted investment in bank stocks

​

 

10,885

​

 

—

​

 

10,885

​

 

—

​

 

10,885

Net loans

​

 

904,153

​

 

—

​

 

—

​

 

885,840

​

 

885,840

Mortgage servicing rights

​

 

265

​

 

—

​

 

—

​

 

265

​

 

265

Accrued interest receivable

​

 

5,201

​

 

—

​

 

5,201

​

 

—

​

 

5,201

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

FINANCIAL LIABILITIES:

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Demand, savings and other deposits

​

 

686,321

​

 

—

​

 

686,321

​

 

—

​

 

686,321

Time deposits

​

 

294,118

​

 

—

​

 

292,073

​

 

—

​

 

292,073

Short-term borrowings

​

 

153,468

​

 

—

​

 

153,509

​

 

—

​

 

153,509

Long-term borrowings

​

 

122,000

​

 

—

​

 

125,343

​

 

—

​

 

125,343

Subordinated debentures

​

 

25,000

​

​

—

​

​

22,762

​

​

—

​

​

22,762

Accrued interest payable

​

​

2,823

​

 

—

​

 

2,823

​

 

—

​

 

2,823

Derivative Liabilities

​

​

4,501

​

 

—

​

 

4,501

​

 

—

​

 

4,501

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​
v3.24.2.u1
(LOSSES) EARNINGS PER SHARE (Tables)
 6 Months Ended
Jun. 30, 2024
(LOSSES) EARNINGS PER SHARE  
Schedule of basic and diluted (losses) earnings per share

​

​

​

​

​

​

​

(In thousands, except earnings per share)

Three Months Ended

​

June 30, 

​

2024

    

2023

Net (loss) income

$

1,380

​

$

1,139

Weighted-average common shares outstanding

​

6,154

​

​

6,040

Basic and diluted (losses) earnings per share

$

0.23

​

$

0.19

​

​

​

​

​

​

​

​

(In thousands, except earnings per share)

Six Months Ended

​

June 30, 

​

2024

  

2023

Net income

$

(16,997)

​

$

2,496

Weighted-average common shares outstanding

​

6,138

​

​

6,030

Basic and diluted earnings per share

$

(2.77)

​

$

0.41
v3.24.2.u1
SECURITIES - Amortized cost, related estimated fair value, and unrealized gains and losses (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Available-for-Sale Securities    
Amortized Cost $ 441,608 $ 425,972
Gross Unrealized Gains 635 536
Gross Unrealized Losses (38,654) (33,540)
Total 403,589 392,968
Debt Securities, Available-for-Sale, Allowance for Credit Loss 0  
Other mortgage backed securities    
Available-for-Sale Securities    
Amortized Cost 51,082 36,623
Gross Unrealized Gains 109 168
Gross Unrealized Losses (2,563) (2,741)
Total 48,628 34,050
U.S. Treasury and/or agency securities    
Available-for-Sale Securities    
Amortized Cost 7,896 7,881
Gross Unrealized Losses (893) (840)
Total 7,003 7,041
Obligations of U.S. Government Agencies and Sponsored Agencies Mortgage-Backed    
Available-for-Sale Securities    
Amortized Cost 157,735 152,510
Gross Unrealized Gains 35  
Gross Unrealized Losses (15,395) (14,518)
Total 142,375 137,992
Obligations of U.S. Government Agencies and Sponsored Agencies Other    
Available-for-Sale Securities    
Amortized Cost 5,949 7,560
Gross Unrealized Gains 95 126
Gross Unrealized Losses (41) (54)
Total 6,003 7,632
Obligations of state and political subdivisions    
Available-for-Sale Securities    
Amortized Cost 95,673 97,899
Gross Unrealized Gains 15 18
Gross Unrealized Losses (11,047) (10,214)
Total 84,641 87,703
Asset backed securities    
Available-for-Sale Securities    
Amortized Cost 85,262 82,852
Gross Unrealized Gains 289 150
Gross Unrealized Losses (480) (840)
Total 85,071 82,162
Corporate debt securities    
Available-for-Sale Securities    
Amortized Cost 38,011 40,647
Gross Unrealized Gains 92 74
Gross Unrealized Losses (8,235) (4,333)
Total $ 29,868 $ 36,388
v3.24.2.u1
SECURITIES - Aging of amortized cost and fair value of debt securities (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Other mortgage backed securities  
Available-For-Sale - Amortized cost  
Within 1 Year $ 2,950
1 - 5 Years 1,202
5 - 10 Years 1,378
After 10 Years 45,552
Total 51,082
Available-For-Sale - Estimated fair value  
Within 1 Year 2,925
1 - 5 Years 1,157
5 - 10 Years 1,376
After 10 Years 43,170
Total 48,628
U.S. Treasury and/or agency securities  
Available-For-Sale - Amortized cost  
1 - 5 Years 7,896
Total 7,896
Available-For-Sale - Estimated fair value  
1 - 5 Years 7,003
Total 7,003
U.S. Government Corporations & Agencies Obligations  
Available-For-Sale - Amortized cost  
1 - 5 Years 6,939
5 - 10 Years 4,624
After 10 Years 152,121
Total 163,684
Available-For-Sale - Estimated fair value  
1 - 5 Years 6,898
5 - 10 Years 4,692
After 10 Years 136,788
Total 148,378
Obligations of state and political subdivisions  
Available-For-Sale - Amortized cost  
Within 1 Year 5,590
1 - 5 Years 14,293
5 - 10 Years 26,245
After 10 Years 49,545
Total 95,673
Available-For-Sale - Estimated fair value  
Within 1 Year 5,511
1 - 5 Years 13,743
5 - 10 Years 22,576
After 10 Years 42,811
Total 84,641
Asset backed securities  
Available-For-Sale - Amortized cost  
5 - 10 Years 4,648
After 10 Years 80,614
Total 85,262
Available-For-Sale - Estimated fair value  
5 - 10 Years 4,622
After 10 Years 80,449
Total 85,071
Corporate debt securities  
Available-For-Sale - Amortized cost  
1 - 5 Years 1,244
5 - 10 Years 31,678
After 10 Years 5,089
Total 38,011
Available-For-Sale - Estimated fair value  
1 - 5 Years 1,212
5 - 10 Years 28,217
After 10 Years 439
Total $ 29,868
v3.24.2.u1
SECURITIES - Securities From Issuers In Excess Of Ten Percent Of Consolidated Stockholders' Equity (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Debt securities available-for-sale, at fair value $ 403,589 $ 392,968
Stockholders' Equity | Securities Holdings Concentration Risk | Sallie Mae Bank securities    
Debt securities available-for-sale, at fair value 29,712 25,737
Stockholders' Equity | Securities Holdings Concentration Risk | Nelnet Student Loan Trust    
Debt securities available-for-sale, at fair value 16,904 15,486
Stockholders' Equity | Securities Holdings Concentration Risk | Velocity Commercial Capital    
Debt securities available-for-sale, at fair value 25,583  
Stockholders' Equity | Securities Holdings Concentration Risk | Navient Student Loan Trust    
Debt securities available-for-sale, at fair value $ 11,739 $ 13,179
v3.24.2.u1
SECURITIES - Continuous unrealized loss position (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Less Than 12 Months    
Fair Value $ 84,292 $ 80,346
Unrealized Loss (5,512) (855)
12 Months or More    
Fair Value 244,545 263,060
Unrealized Loss (33,142) (32,685)
Total    
Fair Value 328,837 343,406
Unrealized Loss (38,654) (33,540)
Other mortgage backed debt securities    
Less Than 12 Months    
Fair Value 20,636 1,568
Unrealized Loss (363) (1)
12 Months or More    
Fair Value 21,224 25,042
Unrealized Loss (2,200) (2,740)
Total    
Fair Value 41,860 26,610
Unrealized Loss (2,563) (2,741)
U.S. Treasury and/or agency securities    
12 Months or More    
Fair Value 7,003 7,041
Unrealized Loss (893) (840)
Total    
Fair Value 7,003 7,041
Unrealized Loss (893) (840)
Obligations of U.S. Government Agencies and Sponsored Agencies Mortgage-Backed    
Less Than 12 Months    
Fair Value 27,412 23,103
Unrealized Loss (138) (242)
12 Months or More    
Fair Value 101,754 102,608
Unrealized Loss (15,257) (14,276)
Total    
Fair Value 129,166 125,711
Unrealized Loss (15,395) (14,518)
Obligations of U.S. Government Agencies and Sponsored Agencies Other    
12 Months or More    
Fair Value 2,416 3,029
Unrealized Loss (41) (54)
Total    
Fair Value 2,416 3,029
Unrealized Loss (41) (54)
Obligations of state and political subdivisions    
Less Than 12 Months    
Fair Value 1,246  
Unrealized Loss (9)  
12 Months or More    
Fair Value 80,387 82,113
Unrealized Loss (11,038) (10,214)
Total    
Fair Value 81,633 82,113
Unrealized Loss (11,047) (10,214)
Asset backed securities    
Less Than 12 Months    
Fair Value 30,739 52,862
Unrealized Loss (134) (342)
12 Months or More    
Fair Value 7,019 12,726
Unrealized Loss (346) (498)
Total    
Fair Value 37,758 65,588
Unrealized Loss (480) (840)
Corporate debt securities    
Less Than 12 Months    
Fair Value 4,259 2,813
Unrealized Loss (4,868) (270)
12 Months or More    
Fair Value 24,742 30,501
Unrealized Loss (3,367) (4,063)
Total    
Fair Value 29,001 33,314
Unrealized Loss $ (8,235) $ (4,333)
v3.24.2.u1
SECURITIES - Unrealized and realized gains (losses) (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
SECURITIES    
Net losses from market value fluctuations recognized during the period on equity securities $ (194) $ (224)
Net losses recognized during the reporting period on equity securities still held at the reporting date $ (194) $ (224)
v3.24.2.u1
SECURITIES - Additional Information (Details)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
item
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
item
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
item
Debt securities available-for-sale, at fair value $ 403,589,000   $ 403,589,000   $ 392,968,000
Aggregate carrying value 184,259,000   184,259,000   $ 182,050,000
Proceeds from sales of debt securities available-for-sale 0 $ 0 0 $ 23,230,000  
Net gains and losses on debt securities $ 0 $ 0      
Gain on debt securities     0 447,000  
Loss on debt securities     $ 0 $ 348,000  
Number of securities in loss position | item 178   178   177
Percentage decline in value 8.61%   8.61%   7.75%
Minimum percentage of equity held     10.00%   10.00%
Accrued interest receivable on debt securities     $ 2,383,000    
Marketable equity securities, at fair value $ 1,288,000   1,288,000   $ 1,482,000
Asset Pledged as Collateral          
Debt securities available-for-sale, at fair value 326,659,000   326,659,000   249,114,000
Marketable Equity Securities          
Marketable equity securities, at fair value 1,288,000   1,288,000   1,482,000
Sallie Mae Bank securities | Securities Holdings Concentration Risk | Stockholders' Equity          
Debt securities available-for-sale, at fair value $ 29,712,000   $ 29,712,000   $ 25,737,000
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Financing Receivable, Recorded Investment [Line Items]          
Financing Receivable, Total $ 922,494,000 $ 871,239,000 $ 922,494,000 $ 871,239,000 $ 911,078,000
Financing Receivable, Deferred Income, by Origination Year [Abstract]          
2024/2023 150,000   150,000   265,000
2023/2022 187,000   187,000   281,000
2022/2021 235,000   235,000   189,000
2021/2020 161,000   161,000   136,000
2020/2019 121,000   121,000   196,000
Prior 211,000   211,000   7,000
Loans and Leases Receivable, Deferred Income, Total 1,065,000   1,065,000   1,074,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
2024/2023 49,991,000   49,991,000   126,960,000
2023/2022 129,133,000   129,133,000   202,674,000
2022/2021 194,042,000   194,042,000   154,341,000
2021/2020 147,356,000   147,356,000   123,385,000
2020/2019 116,483,000   116,483,000   71,134,000
Prior 285,489,000   285,489,000   232,584,000
Financing Receivable, Total 922,494,000 871,239,000 922,494,000 871,239,000 911,078,000
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]          
2024/2023         2,000
2023/2022     5,000   23,000
2022/2021     12,000   13,000
2021/2020     5,000   2,000
2020/2019     6,000   4,000
Prior     5,000   13,000
Total Gross Charge Offs 21,000 21,000 33,000 38,000 57,000
GGLs          
Financing Receivable, Recorded Investment [Line Items]          
Financing Receivable, Total 4,380,000   4,380,000   4,470,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total 4,380,000   4,380,000   4,470,000
Pass          
Financing Receivable, Recorded Investment [Line Items]          
2024/2023 49,841,000   49,841,000   126,637,000
2023/2022 128,946,000   128,946,000   202,307,000
2022/2021 193,726,000   193,726,000   153,565,000
2021/2020 146,970,000   146,970,000   119,588,000
2020/2019 112,753,000   112,753,000   61,486,000
Prior 265,873,000   265,873,000   222,329,000
Financing Receivable, Total 898,109,000   898,109,000   885,912,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total 898,109,000   898,109,000   885,912,000
Special Mention          
Financing Receivable, Recorded Investment [Line Items]          
2024/2023         58,000
Financing Receivable, Total         58,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total         58,000
Substandard          
Financing Receivable, Recorded Investment [Line Items]          
2023/2022         86,000
2022/2021 81,000   81,000   587,000
2021/2020 225,000   225,000   3,661,000
2020/2019 3,609,000   3,609,000   9,452,000
Prior 19,405,000   19,405,000   10,248,000
Financing Receivable, Total 23,320,000   23,320,000   24,034,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total 23,320,000   23,320,000   24,034,000
Real Estate          
Financing Receivable, Recorded Investment [Line Items]          
Financing Receivable, Total 824,217,000 774,688,000 824,217,000 774,688,000 811,493,000
Financing Receivable, Deferred Income, by Origination Year [Abstract]          
2024/2023 84,000   84,000   130,000
2023/2022 74,000   74,000   176,000
2022/2021 150,000   150,000   153,000
2021/2020 143,000   143,000   116,000
2020/2019 107,000   107,000   (13,000)
Prior 10,000   10,000   8,000
Loans and Leases Receivable, Deferred Income, Total 568,000   568,000   570,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
2024/2023 43,198,000   43,198,000   110,949,000
2023/2022 113,042,000   113,042,000   186,991,000
2022/2021 179,280,000   179,280,000   133,464,000
2021/2020 127,270,000   127,270,000   113,815,000
2020/2019 110,588,000   110,588,000   63,982,000
Prior 250,839,000   250,839,000   202,292,000
Financing Receivable, Total 824,217,000 774,688,000 824,217,000 774,688,000 811,493,000
Real Estate | Pass          
Financing Receivable, Recorded Investment [Line Items]          
2024/2023 43,114,000   43,114,000   110,819,000
2023/2022 112,968,000   112,968,000   186,729,000
2022/2021 179,049,000   179,049,000   132,724,000
2021/2020 126,902,000   126,902,000   110,038,000
2020/2019 106,892,000   106,892,000   54,543,000
Prior 232,070,000   232,070,000   192,686,000
Financing Receivable, Total 800,995,000   800,995,000   787,539,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total 800,995,000   800,995,000   787,539,000
Real Estate | Substandard          
Financing Receivable, Recorded Investment [Line Items]          
2023/2022         86,000
2022/2021 81,000   81,000   587,000
2021/2020 225,000   225,000   3,661,000
2020/2019 3,589,000   3,589,000   9,452,000
Prior 18,759,000   18,759,000   9,598,000
Financing Receivable, Total 22,654,000   22,654,000   23,384,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total 22,654,000   22,654,000   23,384,000
Agricultural          
Financing Receivable, Recorded Investment [Line Items]          
Financing Receivable, Total 990,000 862,000 990,000 862,000 671,000
Financing Receivable, Deferred Income, by Origination Year [Abstract]          
2024/2023 1,000   1,000    
2023/2022 2,000   2,000   1,000
Loans and Leases Receivable, Deferred Income, Total 3,000   3,000   1,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
2024/2023 36,000   36,000    
2023/2022 245,000   245,000   60,000
2022/2021 51,000   51,000    
Prior 658,000   658,000   611,000
Financing Receivable, Total 990,000 862,000 990,000 862,000 671,000
Agricultural | Pass          
Financing Receivable, Recorded Investment [Line Items]          
2024/2023 35,000   35,000    
2023/2022 243,000   243,000   59,000
2022/2021 51,000   51,000    
Prior 658,000   658,000   611,000
Financing Receivable, Total 987,000   987,000   670,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total 987,000   987,000   670,000
Commercial and Industrial          
Financing Receivable, Recorded Investment [Line Items]          
Financing Receivable, Total 64,959,000 61,313,000 64,959,000 61,313,000 66,909,000
Financing Receivable, Deferred Income, by Origination Year [Abstract]          
2024/2023 43,000   43,000   95,000
2023/2022 82,000   82,000   83,000
2022/2021 70,000   70,000   24,000
2021/2020 9,000   9,000   17,000
2020/2019 12,000   12,000   208,000
Prior 200,000   200,000   (1,000)
Loans and Leases Receivable, Deferred Income, Total 416,000   416,000   426,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
2024/2023 5,053,000   5,053,000   12,767,000
2023/2022 13,097,000   13,097,000   10,269,000
2022/2021 9,635,000   9,635,000   5,800,000
2021/2020 5,211,000   5,211,000   7,456,000
2020/2019 3,911,000   3,911,000   7,041,000
Prior 28,052,000   28,052,000   23,576,000
Financing Receivable, Total 64,959,000 61,313,000 64,959,000 61,313,000 66,909,000
Commercial and Industrial | Pass          
Financing Receivable, Recorded Investment [Line Items]          
2024/2023 5,010,000   5,010,000   12,672,000
2023/2022 13,015,000   13,015,000   10,186,000
2022/2021 9,565,000   9,565,000   5,776,000
2021/2020 5,202,000   5,202,000   7,439,000
2020/2019 3,879,000   3,879,000   6,833,000
Prior 27,216,000   27,216,000   22,927,000
Financing Receivable, Total 63,887,000   63,887,000   65,833,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total 63,887,000   63,887,000   65,833,000
Commercial and Industrial | Substandard          
Financing Receivable, Recorded Investment [Line Items]          
2020/2019 20,000   20,000    
Prior 636,000   636,000   650,000
Financing Receivable, Total 656,000   656,000   650,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total 656,000   656,000   650,000
Consumer          
Financing Receivable, Recorded Investment [Line Items]          
Financing Receivable, Total 6,250,000 6,129,000 6,250,000 6,129,000 5,824,000
Financing Receivable, Deferred Income, by Origination Year [Abstract]          
2024/2023 22,000   22,000   38,000
2023/2022 27,000   27,000   20,000
2022/2021 14,000   14,000   8,000
2021/2020 5,000   5,000   2,000
2020/2019 1,000   1,000   1,000
Loans and Leases Receivable, Deferred Income, Total 69,000   69,000   69,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
2024/2023 1,704,000   1,704,000   2,511,000
2023/2022 1,904,000   1,904,000   1,258,000
2022/2021 980,000   980,000   934,000
2021/2020 732,000   732,000   208,000
2020/2019 126,000   126,000   111,000
Prior 804,000   804,000   802,000
Financing Receivable, Total 6,250,000 6,129,000 6,250,000 6,129,000 5,824,000
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]          
2024/2023         2,000
2023/2022     5,000   23,000
2022/2021     12,000   13,000
2021/2020     5,000   2,000
2020/2019     6,000   4,000
Prior     5,000   13,000
Total Gross Charge Offs 21,000 21,000 33,000 38,000 57,000
Consumer | Pass          
Financing Receivable, Recorded Investment [Line Items]          
2024/2023 1,682,000   1,682,000   2,415,000
2023/2022 1,877,000   1,877,000   1,238,000
2022/2021 966,000   966,000   926,000
2021/2020 727,000   727,000   206,000
2020/2019 125,000   125,000   110,000
Prior 794,000   794,000   802,000
Financing Receivable, Total 6,171,000   6,171,000   5,697,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total 6,171,000   6,171,000   5,697,000
Consumer | Special Mention          
Financing Receivable, Recorded Investment [Line Items]          
2024/2023         58,000
Financing Receivable, Total         58,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total         58,000
Consumer | Substandard          
Financing Receivable, Recorded Investment [Line Items]          
Prior 10,000   10,000    
Financing Receivable, Total 10,000   10,000    
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total 10,000   10,000    
State and Political Subdivisions          
Financing Receivable, Recorded Investment [Line Items]          
Financing Receivable, Total 26,078,000 28,247,000 26,078,000 28,247,000 26,181,000
Financing Receivable, Deferred Income, by Origination Year [Abstract]          
2024/2023         2,000
2023/2022 2,000   2,000   1,000
2022/2021 1,000   1,000   4,000
2021/2020 4,000   4,000   1,000
2020/2019 1,000   1,000    
Prior 1,000   1,000    
Loans and Leases Receivable, Deferred Income, Total 9,000   9,000   8,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
2024/2023         733,000
2023/2022 845,000   845,000   4,096,000
2022/2021 4,096,000   4,096,000   14,143,000
2021/2020 14,143,000   14,143,000   1,906,000
2020/2019 1,858,000   1,858,000    
Prior 5,136,000   5,136,000   5,303,000
Financing Receivable, Total 26,078,000 $ 28,247,000 26,078,000 $ 28,247,000 26,181,000
State and Political Subdivisions | Pass          
Financing Receivable, Recorded Investment [Line Items]          
2024/2023         731,000
2023/2022 843,000   843,000   4,095,000
2022/2021 4,095,000   4,095,000   14,139,000
2021/2020 14,139,000   14,139,000   1,905,000
2020/2019 1,857,000   1,857,000    
Prior 5,135,000   5,135,000   5,303,000
Financing Receivable, Total 26,069,000   26,069,000   26,173,000
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Abstract]          
Financing Receivable, Total $ 26,069,000   $ 26,069,000   $ 26,173,000
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Activity in allowance for credit losses (Details) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
Allowance, Beginning balance $ 7,196,000 $ 7,142,000 $ 6,925,000 $ 8,274,000 $ 8,274,000  
Charge-offs (21,000) (21,000) (33,000) (38,000) (57,000)  
Recoveries 2,000 2,000 21,000 6,000 44,000  
(Credit) Provision 510,000 34,000 774,000 34,000 (217,000)  
Allowance, Ending Balance 7,687,000 7,157,000 7,687,000 7,157,000 6,925,000  
Total 922,494,000 871,239,000 922,494,000 871,239,000 911,078,000  
Reserve For Unfunded Lending Commitments 196,000 260,000 196,000 260,000 166,000  
Unfunded Loan Commitment            
Reserve For Unfunded Lending Commitments 196,000   196,000   166,000  
Reserve For Unfunded Lending Commitments 196,000 260,000 196,000 260,000 166,000 $ 68,000
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]            
Allowance, Beginning balance       7,155,000 7,155,000  
Cumulative Effect, Period of Adoption, Adjustment [Member]            
Allowance, Beginning balance       (1,119,000) (1,119,000)  
Cumulative Effect, Period of Adoption, Adjustment [Member] | Unfunded Loan Commitment            
Reserve For Unfunded Lending Commitments   147,000   147,000    
Loans Individually Evaluated For Impairment [Member]            
Total 4,849,000 5,398,000 4,849,000 5,398,000 4,925,000  
Loans Collectively Evaluated For Impairment [Member]            
Allowance, Beginning balance     6,925,000      
Allowance, Ending Balance 7,687,000 7,157,000 7,687,000 7,157,000 6,925,000  
Total 917,645,000 865,841,000 917,645,000 865,841,000 906,153,000  
Real Estate            
Allowance, Beginning balance 6,725,000 6,735,000 6,539,000 7,483,000 7,483,000  
Recoveries 1,000 1,000 19,000 2,000 37,000  
(Credit) Provision 480,000 18,000 648,000 (14,000) (264,000)  
Allowance, Ending Balance 7,206,000 6,754,000 7,206,000 6,754,000 6,539,000  
Total 824,217,000 774,688,000 824,217,000 774,688,000 811,493,000  
Reserve For Unfunded Lending Commitments 159,000 225,000 159,000 225,000 140,000  
Real Estate | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]            
Allowance, Beginning balance       6,766,000 6,766,000  
Real Estate | Cumulative Effect, Period of Adoption, Adjustment [Member]            
Allowance, Beginning balance       (717,000) (717,000)  
Real Estate | Loans Individually Evaluated For Impairment [Member]            
Total 3,929,000 4,445,000 3,929,000 4,445,000 4,005,000  
Real Estate | Loans Collectively Evaluated For Impairment [Member]            
Allowance, Beginning balance     6,539,000      
Allowance, Ending Balance 7,206,000 6,754,000 7,206,000 6,754,000 6,539,000  
Total 820,288,000 770,243,000 820,288,000 770,243,000 807,488,000  
Agricultural            
Allowance, Beginning balance 1,000 1,000 1,000 6,000 6,000  
(Credit) Provision 1,000   1,000 (1,000) (1,000)  
Allowance, Ending Balance 2,000 1,000 2,000 1,000 1,000  
Total 990,000 862,000 990,000 862,000 671,000  
Agricultural | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]            
Allowance, Beginning balance       2,000 2,000  
Agricultural | Cumulative Effect, Period of Adoption, Adjustment [Member]            
Allowance, Beginning balance       (4,000) (4,000)  
Agricultural | Loans Individually Evaluated For Impairment [Member]            
Total 309,000 309,000 309,000 309,000 309,000  
Agricultural | Loans Collectively Evaluated For Impairment [Member]            
Allowance, Beginning balance     1,000      
Allowance, Ending Balance 2,000 1,000 2,000 1,000 1,000  
Total 681,000 553,000 681,000 553,000 362,000  
Commercial and Industrial            
Allowance, Beginning balance 322,000 265,000 265,000 504,000 504,000  
Recoveries 1,000 1,000 1,000 2,000 2,000  
(Credit) Provision 2,000 2,000 59,000 23,000 20,000  
Allowance, Ending Balance 325,000 268,000 325,000 268,000 265,000  
Total 64,959,000 61,313,000 64,959,000 61,313,000 66,909,000  
Reserve For Unfunded Lending Commitments 36,000 35,000 36,000 35,000 25,000  
Commercial and Industrial | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]            
Allowance, Beginning balance       243,000 243,000  
Commercial and Industrial | Cumulative Effect, Period of Adoption, Adjustment [Member]            
Allowance, Beginning balance       (261,000) (261,000)  
Commercial and Industrial | Loans Individually Evaluated For Impairment [Member]            
Total 611,000 644,000 611,000 644,000 611,000  
Commercial and Industrial | Loans Collectively Evaluated For Impairment [Member]            
Allowance, Beginning balance     265,000      
Allowance, Ending Balance 325,000 268,000 325,000 268,000 265,000  
Total 64,348,000 60,669,000 64,348,000 60,669,000 66,298,000  
Consumer            
Allowance, Beginning balance 85,000 93,000 78,000 84,000 84,000  
Charge-offs (21,000) (21,000) (33,000) (38,000) (57,000)  
Recoveries     1,000 2,000 5,000  
(Credit) Provision 27,000 17,000 45,000 30,000 35,000  
Allowance, Ending Balance 91,000 89,000 91,000 89,000 78,000  
Total 6,250,000 6,129,000 6,250,000 6,129,000 5,824,000  
Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]            
Allowance, Beginning balance       95,000 95,000  
Consumer | Cumulative Effect, Period of Adoption, Adjustment [Member]            
Allowance, Beginning balance       11,000 11,000  
Consumer | Loans Collectively Evaluated For Impairment [Member]            
Allowance, Beginning balance     78,000      
Allowance, Ending Balance 91,000 89,000 91,000 89,000 78,000  
Total 6,250,000 6,129,000 6,250,000 6,129,000 5,824,000  
State and Political Subdivisions            
Allowance, Beginning balance 63,000 48,000 42,000 197,000 197,000  
(Credit) Provision   (3,000) 21,000 (4,000) (7,000)  
Allowance, Ending Balance 63,000 45,000 63,000 45,000 42,000  
Total 26,078,000 28,247,000 26,078,000 28,247,000 26,181,000  
Reserve For Unfunded Lending Commitments 1,000   1,000   1,000  
State and Political Subdivisions | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]            
Allowance, Beginning balance       49,000 49,000  
State and Political Subdivisions | Cumulative Effect, Period of Adoption, Adjustment [Member]            
Allowance, Beginning balance       (148,000) (148,000)  
State and Political Subdivisions | Loans Collectively Evaluated For Impairment [Member]            
Allowance, Beginning balance     42,000      
Allowance, Ending Balance 63,000 45,000 63,000 45,000 42,000  
Total $ 26,078,000 $ 28,247,000 $ 26,078,000 $ 28,247,000 $ 26,181,000  
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Activity in allowance for credit losses on unfunded commitments (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Credit for credit losses on unfunded commitments $ 29 $ 45
Unfunded Loan Commitment    
Beginning balance 166 68
CECL adoption adjustment 196 260
Credit for credit losses on unfunded commitments 30 45
Ending balance $ 196 260
Cumulative Effect, Period of Adoption, Adjustment [Member] | Unfunded Loan Commitment    
CECL adoption adjustment   147
Ending balance   $ 147
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Collateral dependent loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Collateral-dependent loans      
Total $ 922,494 $ 911,078 $ 871,239
Real Estate      
Collateral-dependent loans      
Total 3,929 4,005  
Other      
Collateral-dependent loans      
Total 920 920  
Real Estate      
Collateral-dependent loans      
Total 824,217 811,493 774,688
Real Estate | Real Estate      
Collateral-dependent loans      
Total 3,929 4,005  
Agricultural      
Collateral-dependent loans      
Total 990 671 862
Agricultural | Other      
Collateral-dependent loans      
Total 309 309  
Commercial and Industrial      
Collateral-dependent loans      
Total 64,959 66,909 $ 61,313
Commercial and Industrial | Other      
Collateral-dependent loans      
Total $ 611 $ 611  
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Non-performing assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Total non-accrual loans $ 4,540 $ 4,616
Loans past-due 90 days or more and still accruing interest 495 1,065
Total non-performing assets 5,035 5,681
Real Estate    
Total non-accrual loans 3,929 4,005
Loans past-due 90 days or more and still accruing interest 495 1,065
Commercial and Industrial    
Total non-accrual loans $ 611 $ 611
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan modifications categorized as TDRs (Details)
 6 Months Ended 12 Months Ended
Jun. 30, 2024
loan
Jun. 30, 2024
USD ($)
Jun. 30, 2024
contract
Dec. 31, 2023
USD ($)
Number of contracts 1   1  
Pre-Modification Outstanding Recorded Investment   $ 9,455,000    
Post-Modification Outstanding Recorded Investment   9,455,000    
Recorded Investment   9,455,000   $ 0
Real estate        
Number of contracts | contract     1  
Pre-Modification Outstanding Recorded Investment   9,455,000    
Post-Modification Outstanding Recorded Investment   9,455,000    
Recorded Investment   $ 9,455,000    
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Impaired loans (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Financing Receivable, Modifications [Line Items]                
Unpaid principal balance $ 922,494 $ 871,239 $ 922,494 $ 871,239   $ 911,078    
Related allowance 7,687 7,157 7,687 7,157 $ 7,196 6,925 $ 7,142 $ 8,274
Recorded Investment                
With no related allowance recorded 4,540   4,540     4,616    
Total 4,540   4,540     4,616    
Unpaid Principal Balance                
With no related allowance recorded 6,529   6,529     6,605    
Total 6,529   6,529     6,605    
Average Recorded Investment                
With no related allowance recorded 4,568 5,020 4,584 5,049        
Total 4,568 5,020 4,584 5,049        
Interest Income Recognized                
With no related allowance recorded   4            
Total   4            
Real Estate                
Financing Receivable, Modifications [Line Items]                
Unpaid principal balance 824,217 774,688 824,217 774,688   811,493    
Related allowance 7,206 6,754 7,206 6,754 6,725 6,539 6,735 7,483
Recorded Investment                
With no related allowance recorded 3,929   3,929     4,005    
Total 3,929   3,929     4,005    
Unpaid Principal Balance                
With no related allowance recorded 5,918   5,918     5,994    
Total 5,918   5,918     5,994    
Average Recorded Investment                
With no related allowance recorded 3,957 4,367 3,973 4,390        
Total 3,957 4,367 3,973 4,390        
Interest Income Recognized                
With no related allowance recorded   4            
Total   4            
Agricultural                
Financing Receivable, Modifications [Line Items]                
Unpaid principal balance 990 862 990 862   671    
Related allowance 2 1 2 1 1 1 1 6
Commercial and Industrial                
Financing Receivable, Modifications [Line Items]                
Unpaid principal balance 64,959 61,313 64,959 61,313   66,909    
Related allowance 325 268 325 268 $ 322 265 $ 265 $ 504
Recorded Investment                
With no related allowance recorded 611   611     611    
Total 611   611     611    
Unpaid Principal Balance                
With no related allowance recorded 611   611     611    
Total 611   611     $ 611    
Average Recorded Investment                
With no related allowance recorded 611 653 611 659        
Total $ 611 $ 653 $ 611 $ 659        
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Outstanding loan balances by loan class prior to allocation of net deferred fees and costs (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Financing Receivable, Recorded Investment [Line Items]            
Subtotal $ 921,429   $ 910,004      
Net Deferred Fees and Costs 1,065   1,074      
Allowance for credit losses (7,687) $ (7,196) (6,925) $ (7,157) $ (7,142) $ (8,274)
Net loans 914,807   904,153      
Real Estate            
Financing Receivable, Recorded Investment [Line Items]            
Subtotal 823,649   810,923      
Allowance for credit losses (7,206) (6,725) (6,539) (6,754) (6,735) (7,483)
Agricultural            
Financing Receivable, Recorded Investment [Line Items]            
Subtotal 987   670      
Allowance for credit losses (2) (1) (1) (1) (1) (6)
Commercial and Industrial            
Financing Receivable, Recorded Investment [Line Items]            
Subtotal 64,543   66,483      
Allowance for credit losses (325) (322) (265) (268) (265) (504)
Consumer            
Financing Receivable, Recorded Investment [Line Items]            
Subtotal 6,181   5,755      
Allowance for credit losses (91) (85) (78) (89) (93) (84)
State and Political Subdivisions            
Financing Receivable, Recorded Investment [Line Items]            
Subtotal 26,069   26,173      
Allowance for credit losses $ (63) $ (63) $ (42) $ (45) $ (48) $ (197)
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES - TDRs recorded investment (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Financing Receivable, Modifications, Recorded Investment $ 9,455
Accruing TDRs  
Financing Receivable, Modifications, Recorded Investment $ 9,455
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Past due (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Current - 29 Days Past Due $ 908,615 $ 902,853  
Total 922,494 911,078 $ 871,239
90 Days or Greater Past Due and Still Accruing Interest 495 1,065  
Financial Asset, 30 to 59 Days Past Due      
Total 3,888 2,182  
Financing Receivables, 60 to 89 Days Past Due      
Total 4,957 383  
Financing Receivables, Equal to Greater than 90 Days Past Due      
Total 5,034 5,660  
Financial Asset, Past Due      
Total 13,879 8,225  
Real Estate      
Current - 29 Days Past Due 811,114 803,890  
Total 824,217 811,493 774,688
90 Days or Greater Past Due and Still Accruing Interest 495 1,065  
Real Estate | Financial Asset, 30 to 59 Days Past Due      
Total 3,723 2,155  
Real Estate | Financing Receivables, 60 to 89 Days Past Due      
Total 4,957 379  
Real Estate | Financing Receivables, Equal to Greater than 90 Days Past Due      
Total 4,423 5,069  
Real Estate | Financial Asset, Past Due      
Total 13,103 7,603  
Agricultural      
Current - 29 Days Past Due 990 671  
Total 990 671 862
Commercial and Industrial      
Current - 29 Days Past Due 64,204 66,312  
Total 64,959 66,909 61,313
Commercial and Industrial | Financial Asset, 30 to 59 Days Past Due      
Total 144 6  
Commercial and Industrial | Financing Receivables, Equal to Greater than 90 Days Past Due      
Total 611 591  
Commercial and Industrial | Financial Asset, Past Due      
Total 755 597  
Consumer      
Current - 29 Days Past Due 6,229 5,799  
Total 6,250 5,824 6,129
Consumer | Financial Asset, 30 to 59 Days Past Due      
Total 21 21  
Consumer | Financing Receivables, 60 to 89 Days Past Due      
Total   4  
Consumer | Financial Asset, Past Due      
Total 21 25  
State and Political Subdivisions      
Current - 29 Days Past Due 26,078 26,181  
Total $ 26,078 $ 26,181 $ 28,247
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Types of loan modifications (Details) - 6 months ended Jun. 30, 2024
loan
contract
Financing Receivables, Modifications, Number of Contracts 1 1
Payment Modification    
Financing Receivables, Modifications, Number of Contracts 1  
Real estate    
Financing Receivables, Modifications, Number of Contracts | contract   1
Real estate | Real estate    
Financing Receivables, Modifications, Number of Contracts 1  
Real estate | Payment Modification | Real estate    
Financing Receivables, Modifications, Number of Contracts 1  
v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Additional Information (Details)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
loan
item
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
item
loan
Dec. 31, 2023
USD ($)
loan
Loans Receivable Held-for-sale, Amount $ 305,000   $ 305,000 $ 214,000
Unpaid principal balance 922,494,000 $ 871,239,000 $ 922,494,000 911,078,000
Loan payments of delinquency period     10 days  
Delinquency notice is automatically generated     10 or 15  
Loan Payments, Delinquency Period, Beyond Which Loans are Considered Non-Accrual     90 days  
Reserve for unfunded lending commitments 196,000 260,000 $ 196,000 166,000
Accrued interest exclude from the amortized cost basis of loans 2,650,000   2,650,000 2,476,000
Foreclosed Assets Held For Resale 0   0 0
Consumer Mortgage Loans Secured by Residential Real Estate in Process of Foreclosure 137,000   137,000 $ 138,000
Financing Receivable, Modifications, Recorded Investment $ 9,455,000   9,455,000  
Financing Receivable, Modifications, Unfunded Commitments     0  
Modified value of TDR     $ 9,455,000  
Number of TDRs not in compliance with restructure | item 0   0  
Number of financing receivable modified | loan 0   0 0
Recorded Investment     $ 9,455,000 $ 0
Impaired Financing Receivable, Interest Income, Accrual Method   4,000    
Financing Receivable, Modifications, Post-Modification Recorded Investment     $ 9,455,000  
Number of loans modified as troubled debt restructuring within previous 12 months, with subsequent payment default | item 0   0  
GGLs        
Unpaid principal balance $ 4,380,000   $ 4,380,000 4,470,000
Unfunded Loan Commitment        
Reserve for unfunded lending commitments 196,000   $ 196,000 166,000
Home Equity Line of Credit | Home Equity Term Loans | Maximum        
Term of loan offering     20 years  
Commercial and Industrial        
Unpaid principal balance 64,959,000 61,313,000 $ 64,959,000 66,909,000
Reserve for unfunded lending commitments 36,000 35,000 36,000 25,000
Commercial and Industrial | GGLs        
Government Guaranteed Loans. 4,380,000   4,380,000 4,470,000
Political Subdivision Loans        
Tax free loans 26,078,000   26,078,000 26,181,000
Commercial Real Estate        
Loans Receivable Held-for-sale, Amount 305,000   305,000 214,000
Modified value of TDR     9,455,000  
Recorded Investment     9,455,000  
Financing Receivable, Modifications, Post-Modification Recorded Investment     $ 9,455,000  
Commercial Real Estate | Maximum        
Term of loan offering     20 years  
Maximum loan to value ratio     80.00%  
Residential Real Estate        
Loans Receivable Held-for-sale, Amount $ 305,000   $ 305,000 214,000
Residential Real Estate | Maximum        
Term of loan offering     20 years  
Residential Real Estate | Home Equity Term Loans | Maximum        
Term of loan offering     15 years  
Residential Real Estate | Residential Mortgage        
Maximum loan to value ratio with PMI 95.00%   95.00%  
Residential Real Estate | Residential Mortgage | Originated For Resale        
Loans held for sale term 30 years   30 years  
Residential Real Estate | Residential Mortgage | Originated For Resale | Maximum        
Term of loan offering     30 years  
Maximum loan to value ratio     80.00%  
Residential Real Estate | Home Equity Loan | Maximum        
Maximum loan to value ratio     80.00%  
Residential Real Estate | Home Equity Line of Credit | Maximum        
Maximum loan to value ratio     80.00%  
Consumer        
Unpaid principal balance $ 6,250,000 6,129,000 $ 6,250,000 5,824,000
Agricultural        
Unpaid principal balance $ 990,000 $ 862,000 $ 990,000 $ 671,000
Agricultural | Maximum        
Term of loan offering     10 years  
Maximum loan to value ratio     70.00%  
v3.24.2.u1
DEPOSITS (Details) - USD ($)
Jun. 30, 2024
Dec. 31, 2023
DEPOSITS    
Non-interest bearing demand $ 206,004,000 $ 198,569,000
Interest bearing demand 263,637,000 275,472,000
Savings 201,789,000 212,280,000
Time certificates of deposits less than $250,000 275,059,000 259,841,000
Time certificates of deposits $250,000 or greater 36,234,000 33,185,000
Other time 1,486,000 1,092,000
Total deposits $ 984,209,000 $ 980,439,000
v3.24.2.u1
DEPOSITS - Additional Information (Details) - USD ($)
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
DEPOSITS      
Increase (decrease) in deposits $ 3,770,000 $ (57,658,000)  
Deposits 984,209,000   $ 980,439,000
Increase (decrease) in municipal deposits $ (5,208,000)    
v3.24.2.u1
BORROWINGS (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
SHORT-TERM BORROWINGS    
Short-term borrowings, Amount $ 175,311 $ 153,468
Short-term borrowings, Average Rate 5.52% 5.21%
Federal funds purchased    
SHORT-TERM BORROWINGS    
Short-term borrowings, Average Rate 6.59% 6.57%
Securities sold under agreements to repurchase    
SHORT-TERM BORROWINGS    
Short-term borrowings, Amount $ 27,109 $ 19,708
Short-term borrowings, Average Rate 4.38% 3.28%
Federal Discount Window    
SHORT-TERM BORROWINGS    
Short-term borrowings, Amount   $ 1
Short-term borrowings, Average Rate 5.51% 4.99%
Federal Home Loan Bank    
SHORT-TERM BORROWINGS    
Short-term borrowings, Amount $ 148,202 $ 133,759
Short-term borrowings, Average Rate 5.76% 5.45%
v3.24.2.u1
BORROWINGS - Repurchase Agreements (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Repurchase agreements    
Gross Amounts of Recognized Liabilities $ 27,109 $ 19,708
Gross Amounts Offset in the Consolidated Balance Sheet 0 0
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet 27,109 19,708
Financial Instruments (27,109) (19,708)
Cash Collateral Pledge 0 0
Net Amount $ 0 $ 0
v3.24.2.u1
BORROWINGS - Remaining contractual maturity of repurchase agreements (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Repurchase agreements and repurchase-to-maturity transactions:  
Remaining Contractual Maturity of the Agreements $ 27,109
U.S. Treasury and/or agency securities  
Repurchase agreements and repurchase-to-maturity transactions:  
Remaining Contractual Maturity of the Agreements 27,109
Overnight and Continuous  
Repurchase agreements and repurchase-to-maturity transactions:  
Remaining Contractual Maturity of the Agreements 27,109
Overnight and Continuous | U.S. Treasury and/or agency securities  
Repurchase agreements and repurchase-to-maturity transactions:  
Remaining Contractual Maturity of the Agreements 27,109
Up to 30 days  
Repurchase agreements and repurchase-to-maturity transactions:  
Remaining Contractual Maturity of the Agreements 0
Up to 30 days | U.S. Treasury and/or agency securities  
Repurchase agreements and repurchase-to-maturity transactions:  
Remaining Contractual Maturity of the Agreements 0
Greater 30 - 90 Days  
Repurchase agreements and repurchase-to-maturity transactions:  
Remaining Contractual Maturity of the Agreements 0
Greater 30 - 90 Days | U.S. Treasury and/or agency securities  
Repurchase agreements and repurchase-to-maturity transactions:  
Remaining Contractual Maturity of the Agreements 0
Greater than 90 Days  
Repurchase agreements and repurchase-to-maturity transactions:  
Remaining Contractual Maturity of the Agreements 0
Greater than 90 Days | U.S. Treasury and/or agency securities  
Repurchase agreements and repurchase-to-maturity transactions:  
Remaining Contractual Maturity of the Agreements $ 0
v3.24.2.u1
BORROWINGS - Additional Information (Details) - USD ($)
 6 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Short-term Debt [Line Items]    
Fair value of securities pledged $ 37,880,000 $ 28,902,000
Long-term borrowings outstanding with the FHLB 122,000,000 122,000,000
Advance from FHLB 122,000,000 122,000,000
Net loans 914,807,000 $ 904,153,000
Maximum borrowing capacity 532,749,000  
Investment securities pledged as collateral to FHLB 0  
Irrevocable Standby Letter of Credit    
Short-term Debt [Line Items]    
Advance from FHLB 0  
Asset Pledged as Collateral    
Short-term Debt [Line Items]    
Net loans $ 761,536,000  
Maximum    
Short-term Debt [Line Items]    
Federal funds purchased, securities sold under agreements to repurchase and Federal Home Loan Bank advances, maturity 30 days  
v3.24.2.u1
SUBORDINATED DEBT (Details) - Subordinated Debt
Dec. 10, 2020
USD ($)
Subordinated debt  
Aggregate principal amount $ 25,000,000
Stated interest rate for first five years 4.375%
Period of time for fixed interest rate and semi-annual payments (in years) 5 years
Minimum period of time for notice of redemption 10 days
Redemption price as a percent of principle amount 100.00%
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES - Weighted average term and discount rates (Details)
Jun. 30, 2024
Dec. 31, 2023
COMMITMENTS AND CONTINGENCIES    
Operating Lease, Weighted-average term (years) 19 years 5 months 12 days 19 years 9 months
Operating Lease, Weighted-average discount rate 4.20% 4.22%
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES - Maturity analysis of operating lease liabilities (Details) - USD ($)
Jun. 30, 2024
Dec. 31, 2023
COMMITMENTS AND CONTINGENCIES    
Within one year $ 158,000 $ 175,000
After one but within two years 140,000 140,000
After two but within three years 147,000 140,000
After three but within four years 156,000 154,000
After four but within five years 157,000 157,000
After five years 2,238,000 2,317,000
Total undiscounted cash flows 2,996,000 3,083,000
Discount on cash flows (1,031,000) (1,107,000)
Total lease liability $ 1,965,000 $ 1,976,000
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES - Additional Information (Details)
 6 Months Ended
Jun. 30, 2024
USD ($)
lease
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
Lessee, Lease, Description [Line Items]      
Operating lease right-of-use assets $ 1,453,000   $ 1,472,000
Operating lease liabilities 1,965,000   $ 1,976,000
Operating lease costs 107,000 $ 113,000  
Operating lease payments $ 99,000 $ 106,000  
Banking Facilities      
Lessee, Lease, Description [Line Items]      
Number of operating leases | lease 2    
Land      
Lessee, Lease, Description [Line Items]      
Number of operating leases | lease 1    
v3.24.2.u1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narratives (Details)
 6 Months Ended
Jun. 30, 2024
USD ($)
item
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
Sep. 20, 2023
contract
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES        
Aggregate fair value of collateral posted $ 1,240,000   $ 4,650,000  
Designated as hedging instruments | Interest rate swaps        
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES        
Number of instruments | contract       4
Notional amount $ 50,000,000   $ 50,000,000  
Designated as hedging instruments | Fair Value Hedges | Interest rate swaps        
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES        
Number of instruments | item 2      
Notional amount $ 50,000,000      
Designated as hedging instruments | Cash Flow Hedges | Interest rate swaps        
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES        
Number of instruments | item 2      
Notional amount $ 100,000,000 $ 0    
Estimated additional amount to be reclassified 639,000      
Amount of gain reclassified from accumulated other comprehensive loss to interest expense $ 502,000 $ 0    
v3.24.2.u1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities Other Liabilities
Designated as hedging instruments    
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES    
Derivative Assets $ 0 $ 0
Derivative Liabilities 741 4,501
Designated as hedging instruments | Interest rate swaps    
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES    
Derivative Assets 0 0
Derivative Liabilities $ 741 $ 4,501
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other Assets Other Assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities Other Liabilities
v3.24.2.u1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Master Netting Arrangements (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Derivative liabilities    
Gross Amounts of Recognized Liabilities $ 741 $ 4,501
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet $ 741 $ 4,501
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities Other Liabilities
Cash Collateral Pledge $ (741) $ (4,501)
Contractual Obligation, Fiscal Year Maturity [Abstract]    
Remaining Contractual Maturity of the Agreements 3 to 5 Years 741  
Total $ 741  
Designated as hedging instruments | Interest rate swaps    
Derivative liabilities    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities Other Liabilities
Contractual Obligation, Fiscal Year Maturity [Abstract]    
Remaining Contractual Maturity of the Agreements 3 to 5 Years $ 741  
Total $ 741  
v3.24.2.u1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Cumulative basis adjustment for fair value hedges (Details) - Designated as hedging instruments - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES    
Closed Portfolio Amount $ 85,070 $ 86,770
Cumulative amount of fair value hedging adjustment included in the carrying amount of assets (295) (1,637)
Available-for-sale - Municipals    
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES    
Closed Portfolio Amount 50,809 50,964
Cumulative amount of fair value hedging adjustment included in the carrying amount of assets (222) (1,230)
Available-for-sale - MBS    
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES    
Closed Portfolio Amount 34,261 35,806
Cumulative amount of fair value hedging adjustment included in the carrying amount of assets (73) (407)
Interest rate swaps    
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES    
Interest rate swaps notional amount $ 50,000 $ 50,000
v3.24.2.u1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value Hedges (Details) - Designated as hedging instruments - Fair Value Hedges - Interest rate swaps - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES    
Amount of loss recognized in other comprehensive loss $ (233) $ 0
Amount of gain, net of fair value re-measurements, included in interest income $ 272 $ 0
v3.24.2.u1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Cash Flow Hedges (Details) - Designated as hedging instruments - Interest rate swaps - USD ($)
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES      
Interest rate swaps notional amount $ 50,000,000   $ 50,000,000
Cash Flow Hedges      
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES      
Amount of loss recognized in other comprehensive loss (366,000) $ 0  
Amount of gain reclassified from accumulated other comprehensive loss to interest expense 502,000 0  
Interest rate swaps notional amount $ 100,000,000 $ 0  
v3.24.2.u1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Commitments to extend credit    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Financial instrument representing credit risk $ 126,834 $ 116,954
Financial standby letters of credit    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Financial instrument representing credit risk 2,150 2,120
Performance standby letters of credit    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Financial instrument representing credit risk $ 3,905 $ 3,688
v3.24.2.u1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK - Additional Information (Details) - Credit Concentration Risk
Jun. 30, 2024
USD ($)
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]  
Loans receivable, secure by commercial and residential real estate $ 824,217,000
Loans receivable, percentage of loans secure by commercial and residential real estate 89.40%
v3.24.2.u1
FAIR VALUE MEASUREMENTS (Details) - USD ($)
Jun. 30, 2024
Dec. 31, 2023
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value $ 403,589,000 $ 392,968,000
Marketable equity securities 1,288,000 1,482,000
U.S. Treasury and/or agency securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 7,003,000 7,041,000
Obligations of U.S. Government Agencies and Sponsored Agencies Other    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 6,003,000 7,632,000
Asset backed securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 85,071,000 82,162,000
Corporate debt securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 29,868,000 36,388,000
Marketable Equity Securities    
Available-for-Sale Securities:    
Marketable equity securities 1,288,000 1,482,000
Fair Value, Measurements, Recurring    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 403,589,000 392,968,000
Total recurring fair value measurements 404,877,000 394,450,000
Fair Value, Measurements, Recurring | U.S. Treasury and/or agency securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 7,003,000 7,041,000
Fair Value, Measurements, Recurring | Obligations of U.S. Government Agencies and Sponsored Agencies Mortgaged-backed    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 142,375,000 137,992,000
Fair Value, Measurements, Recurring | Obligations of U.S. Government Agencies and Sponsored Agencies Other    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 6,003,000 7,632,000
Fair Value, Measurements, Recurring | Other Mortgage Backed Debt Securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 48,628,000 34,050,000
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 84,641,000 87,703,000
Fair Value, Measurements, Recurring | Asset backed securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 85,071,000 82,162,000
Fair Value, Measurements, Recurring | Corporate debt securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 29,868,000 36,388,000
Fair Value, Measurements, Recurring | Marketable Equity Securities    
Available-for-Sale Securities:    
Marketable equity securities 1,288,000 1,482,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 7,003,000 7,041,000
Total recurring fair value measurements 8,291,000 8,523,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | U.S. Treasury and/or agency securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 7,003,000 7,041,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Obligations of U.S. Government Agencies and Sponsored Agencies Mortgaged-backed    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Obligations of U.S. Government Agencies and Sponsored Agencies Other    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Other Mortgage Backed Debt Securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Obligations of state and political subdivisions    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Asset backed securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Corporate debt securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Marketable Equity Securities    
Available-for-Sale Securities:    
Marketable equity securities 1,288,000 1,482,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 396,586,000 385,927,000
Total recurring fair value measurements 396,586,000 385,927,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. Treasury and/or agency securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Obligations of U.S. Government Agencies and Sponsored Agencies Mortgaged-backed    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 142,375,000 137,992,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Obligations of U.S. Government Agencies and Sponsored Agencies Other    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 6,003,000 7,632,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Mortgage Backed Debt Securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 48,628,000 34,050,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Obligations of state and political subdivisions    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 84,641,000 87,703,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Asset backed securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 85,071,000 82,162,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate debt securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 29,868,000 36,388,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Marketable Equity Securities    
Available-for-Sale Securities:    
Marketable equity securities 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Total recurring fair value measurements 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | U.S. Treasury and/or agency securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Obligations of U.S. Government Agencies and Sponsored Agencies Mortgaged-backed    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Obligations of U.S. Government Agencies and Sponsored Agencies Other    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Other Mortgage Backed Debt Securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Obligations of state and political subdivisions    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Asset backed securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Corporate debt securities    
Available-for-Sale Securities:    
Debt securities available-for-sale, at fair value 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Marketable Equity Securities    
Available-for-Sale Securities:    
Marketable equity securities $ 0 $ 0
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Nonrecurring - Impaired loans measured at FV (Details) - USD ($)
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Minimum impaired loan balance that requires an appraisal to be obtained and reviewed annually for impaired loan valuation procedure $ 250,000    
Maximum impaired loan balance for which the bank completes a Certificate of Inspection 250,000    
Transfer in or out of Level 3 0 $ 0  
Fair Value Measurements, Nonrecurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Individually evaluated loans 1,953,000   $ 1,990,000
Fair Value, Inputs, Level 1 | Fair Value Measurements, Nonrecurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Individually evaluated loans 0   0
Fair Value, Inputs, Level 2 | Fair Value Measurements, Nonrecurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Individually evaluated loans 0   0
Fair Value, Inputs, Level 3 | Fair Value Measurements, Nonrecurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Individually evaluated loans 1,953,000   1,990,000
Real Estate | Fair Value Measurements, Nonrecurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Individually evaluated loans 1,953,000   1,990,000
Real Estate | Fair Value, Inputs, Level 1 | Fair Value Measurements, Nonrecurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Individually evaluated loans 0   0
Real Estate | Fair Value, Inputs, Level 2 | Fair Value Measurements, Nonrecurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Individually evaluated loans 0   0
Real Estate | Fair Value, Inputs, Level 3 | Fair Value Measurements, Nonrecurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Individually evaluated loans $ 1,953,000   $ 1,990,000
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Quantitative information about Level 3 FV measurements (Details) - USD ($)
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Fair Value Inputs, Assets, Quantitative Information [Line Items]      
Transfer in or out of Level 3 $ 0 $ 0  
Impaired loans - collateral dependent | Fair Value, Inputs, Level 3 | Appraisal Of Collateral, Certificate of Inspection      
Fair Value Inputs, Assets, Quantitative Information [Line Items]      
Fair Value Estimate $ 1,953,000   $ 1,990,000
Valuation Technique Appraisal of collateral1,3Certificate of Inspection1,3   Appraisal of collateral1,3Certificate of Inspection1,3
Unobservable Input Appraisal adjustments2Qualitative Adjustments4   Appraisal adjustments2Qualitative Adjustments4
Impaired loans - collateral dependent | Minimum | Fair Value, Inputs, Level 3 | Appraisal Of Collateral, Certificate of Inspection      
Fair Value Inputs, Assets, Quantitative Information [Line Items]      
Fair Value Inputs, Comparability Adjustments (5.00%)   (5.00%)
Impaired loans - collateral dependent | Maximum | Fair Value, Inputs, Level 3 | Appraisal Of Collateral, Certificate of Inspection      
Fair Value Inputs, Assets, Quantitative Information [Line Items]      
Fair Value Inputs, Comparability Adjustments (5.00%)   (5.00%)
Impaired loans - collateral dependent | Weighted Average | Fair Value, Inputs, Level 3 | Appraisal Of Collateral, Certificate of Inspection      
Fair Value Inputs, Assets, Quantitative Information [Line Items]      
Fair Value Inputs, Comparability Adjustments (5.00%)   (5.00%)
v3.24.2.u1
FAIR VALUE MEASUREMENTS - FV of Financial instruments., nonrecurring (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
FINANCIAL LIABILITIES: (Fair Value)    
Accrued interest payable $ 3,698 $ 2,823
Derivative Liabilities 741 4,501
Estimate of Fair Value Measurement | Fair Value Measurements, Nonrecurring | Fair Value, Inputs, Level 1, Level 2, and Level 3    
FINANCIAL ASSETS: (Fair Value)    
Cash and due from banks 14,292 9,462
Interest-bearing deposits in other banks 1,979 7,551
Restricted investment in bank stocks 11,493 10,885
Net loans 891,098 885,840
Mortgage servicing rights 241 265
Accrued interest receivable 5,328 5,201
FINANCIAL LIABILITIES: (Fair Value)    
Demand, savings and other deposits 671,430 686,321
Time deposits 310,426 292,073
Short-term borrowings 175,555 153,509
Long-term borrowings 123,244 125,343
Subordinated debentures 20,378 22,762
Accrued interest payable 3,698 2,823
Derivative Liabilities 741 4,501
Estimate of Fair Value Measurement | Fair Value Measurements, Nonrecurring | Fair Value, Inputs, Level 1    
FINANCIAL ASSETS: (Fair Value)    
Cash and due from banks 14,292 9,462
Interest-bearing deposits in other banks 0 0
Restricted investment in bank stocks 0 0
Net loans 0 0
Mortgage servicing rights 0 0
Accrued interest receivable 0 0
FINANCIAL LIABILITIES: (Fair Value)    
Demand, savings and other deposits 0 0
Time deposits 0 0
Short-term borrowings 0 0
Long-term borrowings 0 0
Subordinated debentures 0 0
Accrued interest payable 0 0
Derivative Liabilities 0 0
Estimate of Fair Value Measurement | Fair Value Measurements, Nonrecurring | Fair Value, Inputs, Level 2    
FINANCIAL ASSETS: (Fair Value)    
Cash and due from banks 0 0
Interest-bearing deposits in other banks 1,979 7,551
Restricted investment in bank stocks 11,493 10,885
Net loans 0 0
Mortgage servicing rights 0 0
Accrued interest receivable 5,328 5,201
FINANCIAL LIABILITIES: (Fair Value)    
Demand, savings and other deposits 671,430 686,321
Time deposits 310,426 292,073
Short-term borrowings 175,555 153,509
Long-term borrowings 123,244 125,343
Subordinated debentures 20,378 22,762
Accrued interest payable 3,698 2,823
Derivative Liabilities 741 4,501
Estimate of Fair Value Measurement | Fair Value Measurements, Nonrecurring | Fair Value, Inputs, Level 3    
FINANCIAL ASSETS: (Fair Value)    
Cash and due from banks 0 0
Interest-bearing deposits in other banks 0 0
Restricted investment in bank stocks 0 0
Net loans 891,098 885,840
Mortgage servicing rights 241 265
Accrued interest receivable 0 0
FINANCIAL LIABILITIES: (Fair Value)    
Demand, savings and other deposits 0 0
Time deposits 0 0
Short-term borrowings 0 0
Long-term borrowings 0 0
Subordinated debentures 0 0
Accrued interest payable 0 0
Derivative Liabilities 0 0
Reported Value Measurement | Fair Value Measurements, Nonrecurring    
FINANCIAL ASSETS: (Fair Value)    
Cash and due from banks 14,292 9,462
Interest-bearing deposits in other banks 1,979 7,551
Restricted investment in bank stocks 11,493 10,885
Net loans 914,807 904,153
Mortgage servicing rights 241 265
Accrued interest receivable 5,328 5,201
FINANCIAL LIABILITIES: (Fair Value)    
Demand, savings and other deposits 671,430 686,321
Time deposits 312,779 294,118
Short-term borrowings 175,311 153,468
Long-term borrowings 122,000 122,000
Subordinated debentures 25,000 25,000
Accrued interest payable 3,698 2,823
Derivative Liabilities $ 741 $ 4,501
v3.24.2.u1
REVENUE RECOGNITION (Details) - USD ($)
Jun. 30, 2024
Dec. 31, 2023
REVENUE RECOGNITION    
Fair value of trust assets $ 115,340,000 $ 109,064,000
v3.24.2.u1
(LOSSES) EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
(LOSSES) EARNINGS PER SHARE        
Potential common shares outstanding     0 0
Net (loss) income $ 1,380 $ 1,139 $ (16,997) $ 2,496
Weighted-average common shares outstanding, basic 6,154 6,040 6,138 6,030
Weighted-average common shares outstanding, diluted 6,154 6,040 6,138 6,030
Basic (losses) earnings per share $ 0.23 $ 0.19 $ (2.77) $ 0.41
Diluted (losses) earnings per share $ 0.23 $ 0.19 $ (2.77) $ 0.41
v3.24.2.u1
GOODWILL (Details) - USD ($)
 6 Months Ended
Mar. 31, 2024
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
GOODWILL        
Goodwill   $ 0   $ 19,133,000
Goodwill impairment $ 19,133,000 $ 19,133,000 $ 0