MIDDLEFIELD BANC CORP, 10-K filed on 3/13/2025
Annual Report
v3.25.0.1
Document And Entity Information - USD ($)
12 Months Ended
Dec. 31, 2024
Mar. 13, 2025
Jun. 30, 2024
Document Information [Line Items]      
Entity Central Index Key 0000836147    
Entity Registrant Name Middlefield Banc Corp.    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2024    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Document Transition Report false    
Entity File Number 001-36613    
Entity Incorporation, State or Country Code OH    
Entity Tax Identification Number 34-1585111    
Entity Address, Address Line One 15985 East High Street    
Entity Address, City or Town Middlefield    
Entity Address, State or Province OH    
Entity Address, Postal Zip Code 44062-0035    
City Area Code 440    
Local Phone Number 632-1666    
Title of 12(b) Security Common Stock, Without Par Value    
Trading Symbol MBCN    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag false    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 186,500,000
Entity Common Stock, Shares Outstanding   8,081,302  
Auditor Firm ID 74    
Auditor Name S. R. Snodgrass, P.C    
Auditor Location Cranberry Township, Pennsylvania    
v3.25.0.1
Consolidated Balance Sheet - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Assets [Abstract]    
Cash and due from banks $ 46,037,000 $ 56,397,000
Federal funds sold 9,755,000 4,439,000
Cash and cash equivalents 55,792,000 60,836,000
Investment securities available for sale, at fair value 165,802,000 170,779,000
Other investments 855,000 955,000
Loans:    
Loans [1],[2] 1,519,614,000 1,478,130,000
Less: allowance for credit losses [1],[2] 22,447,000 21,693,000
Net loans [1],[2] 1,497,167,000 1,456,437,000
Premises and equipment, net 20,565,000 21,339,000
Goodwill 36,356,000 36,356,000
Core deposit intangibles 5,611,000 6,642,000
Bank-owned life insurance 35,259,000 34,349,000
Interest Receivable and Other Assets 35,952,000 35,190,000
TOTAL ASSETS 1,853,359,000 1,822,883,000
Liabilities [Abstract]    
Noninterest-bearing demand 377,875,000 401,384,000
Interest-bearing demand 208,291,000 205,582,000
Money market 414,074,000 274,682,000
Savings 197,749,000 210,639,000
Time 247,704,000 334,315,000
Total deposits 1,445,693,000 1,426,602,000
Federal Home Loan Bank advances 172,400,000 163,000,000
Other Borrowings 11,660,000 11,862,000
Accrued Liabilities and Other Liabilities 13,044,000 15,738,000
TOTAL LIABILITIES 1,642,797,000 1,617,202,000
STOCKHOLDERS' EQUITY    
Common stock, no par value; 25,000,000 shares authorized, 9,953,018 and 9,930,704 shares issued; 8,073,708 and 8,095,252 shares outstanding 161,999,000 161,388,000
Additional paid-in capital 246,000 0
Retained earnings 109,299,000 100,237,000
Accumulated other comprehensive loss (20,073,000) (16,090,000)
Treasury stock, at cost; 1,879,310 and 1,835,452 shares (40,909,000) (39,854,000)
TOTAL STOCKHOLDERS' EQUITY 210,562,000 205,681,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,853,359,000 1,822,883,000
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member]    
Loans:    
Loans [1],[2] 181,447,000 183,545,000
Less: allowance for credit losses 2,100,000 2,668,000
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member]    
Loans:    
Loans [1],[2] 412,291,000 401,580,000
Less: allowance for credit losses 8,364,000 4,480,000
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member]    
Loans:    
Loans [1],[2] 89,849,000 82,506,000
Less: allowance for credit losses 1,310,000 1,796,000
Residential Portfolio Segment [Member]    
Loans:    
Loans [1],[2] 353,442,000 328,854,000
Less: allowance for credit losses 5,236,000 5,450,000
Commercial And Industrial [Member]    
Loans:    
Loans [1],[2] 229,034,000 221,508,000
Less: allowance for credit losses 2,427,000 4,377,000
Home Equity Lines of Credit [Member]    
Loans:    
Loans [1],[2] 143,379,000 127,818,000
Less: allowance for credit losses 897,000 750,000
Construction and Other [Member]    
Loans:    
Loans [1],[2] 103,608,000 125,105,000
Less: allowance for credit losses 2,052,000 1,990,000
Consumer Portfolio Segment [Member]    
Loans:    
Loans [1],[2] 6,564,000 7,214,000
Less: allowance for credit losses $ 61,000 $ 182,000
[1] Accrued interest of $5.5 million and $5.5 million at December 31, 2024 and December 31, 2023, respectively, is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheets.
[2] Unearned income, including net deferred loan fees and costs and unamortized premiums and discounts, totaled $8.2 million and $9.2 million at December 31, 2024 and 2023, respectively.
v3.25.0.1
Consolidated Balance Sheet (Parentheticals) - $ / shares
$ / shares in Thousands
Dec. 31, 2024
Dec. 31, 2023
Common stock, par value (in dollars per share) $ 0 $ 0
Common stock, shares authorized (in shares) 25,000,000 25,000,000
Common stock, shares issued (in shares) 9,953,018 9,930,704
Common stock, shares outstanding (in shares) 8,073,708 8,095,252
Treasury Stock (in shares) 1,879,310 1,835,452
v3.25.0.1
Consolidated Income Statement - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
INTEREST AND DIVIDEND INCOME    
Interest and fees on loans $ 92,566,000 $ 81,963,000
Interest-earning deposits in other institutions 1,491,000 1,289,000
Federal funds sold 568,000 771,000
Investment securities:    
Taxable interest 2,028,000 1,893,000
Tax-exempt interest 3,861,000 3,914,000
Dividends on stock 748,000 471,000
Total interest and dividend income 101,262,000 90,301,000
INTEREST EXPENSE    
Deposits 33,263,000 18,995,000
Short-term borrowings 6,616,000 5,386,000
Other borrowings 703,000 717,000
Total interest expense 40,582,000 25,098,000
NET INTEREST INCOME 60,680,000 65,203,000
Provision for credit losses 2,008,000 3,002,000
NET INTEREST INCOME AFTER PROVISON FOR CREDIT LOSSES 58,672,000 62,201,000
NONINTEREST INCOME    
Loss on equity securities [1] (9,000) (161,000)
Loss on other real estate owned [1] 0 (170,000)
Earnings on bank-owned life insurance [1] 930,000 823,000
Gain on sale of loans [1] 199,000 97,000
Revenue from investment services 916,000 743,000
Gross rental income [1] 68,000 421,000
Total noninterest income 7,213,000 6,691,000
NONINTEREST EXPENSE    
Salaries and employee benefits 24,641,000 24,511,000
Occupancy expense 2,376,000 2,566,000
Equipment expense 925,000 1,241,000
Data processing and information technology costs 4,740,000 4,588,000
Ohio state franchise tax 1,583,000 1,578,000
Federal deposit insurance expense 1,055,000 861,000
Professional fees 2,265,000 2,293,000
Advertising expense 1,581,000 1,477,000
Software amortization expense 200,000 95,000
Core deposit intangible amortization 1,031,000 1,059,000
Gross other real estate owned expenses 99,000 510,000
Merger-related costs 0 473,000
Other Noninterest Expense 7,045,000 6,885,000
Total noninterest expense 47,541,000 48,137,000
Income before income taxes 18,344,000 20,755,000
Income taxes 2,825,000 3,387,000
NET INCOME $ 15,519,000 $ 17,368,000
EARNINGS PER SHARE    
Basic (in dollars per share) $ 1.93 $ 2.14
Diluted (in dollars per share) $ 1.92 $ 2.14
Deposit Account [Member]    
NONINTEREST INCOME    
Noninterest income revenue $ 3,907,000 $ 3,878,000
Financial Service, Other [Member]    
NONINTEREST INCOME    
Noninterest income revenue $ 1,202,000 $ 1,060,000
[1] Not within scope of ASC 606
v3.25.0.1
Consolidated Statement of Comprehensive Income (Loss) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Net income $ 15,519 $ 17,368
Other comprehensive income (loss):    
Unrealized holding gain (loss) on securities available for sale (5,042) 7,664
Tax effect 1,059 (1,610)
Total other comprehensive income (loss) (3,983) 6,054
Comprehensive income $ 11,536 $ 23,422
v3.25.0.1
Consolidated Statement of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Treasury Stock, Common [Member]
Total
Balance (in shares) at Dec. 31, 2022     9,916,466          
Balance at Dec. 31, 2022 $ (4,421) $ (4,421) $ 161,029 $ 0 $ 94,154 $ (22,144) $ (35,348) $ 197,691
Net income         17,368     17,368
Other comprehensive income (loss)           6,054   6,054
Authorization of additional common shares     $ (37)         (37)
Stock-based compensation, net (in shares)     14,238          
Stock-based compensation, net     $ 396         396
Common shares repurchased             (4,506) (4,506)
Cash dividends         (6,864)     $ (6,864)
Balance (in shares) at Dec. 31, 2023     9,930,704         8,095,252
Balance at Dec. 31, 2023     $ 161,388 0 100,237 (16,090) (39,854) $ 205,681
Net income         15,519     15,519
Other comprehensive income (loss)           (3,983)   (3,983)
Stock-based compensation, net (in shares)     22,314          
Stock-based compensation, net     $ 611         611
Common shares repurchased             (1,055) (1,055)
Cash dividends         (6,457)     (6,457)
Restricted stock grant       246       $ 246
Balance (in shares) at Dec. 31, 2024     9,953,018         8,073,708
Balance at Dec. 31, 2024     $ 161,999 $ 246 $ 109,299 $ (20,073) $ (40,909) $ 210,562
v3.25.0.1
Consolidated Statement of Changes in Stockholders' Equity (Parentheticals) - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Treasury acquired, shares (in shares) 43,858 164,221
Cash dividends per share (in dollars per share) $ 0.8 $ 0.81
v3.25.0.1
Consolidated Statement of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
OPERATING ACTIVITIES    
Net income $ 15,519,000 $ 17,368,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for credit losses 2,008,000 3,002,000
Loss on equity securities [1] 9,000 161,000
Software amortization expense 200,000 95,000
Amortization of premium and discount on investment securities, net 746,000 593,000
Amortization of core deposit intangibles 1,031,000 1,059,000
Depreciation, Amortization and Accretion, Net (78,000) (108,000)
Stock-based compensation, net 374,000 260,000
Origination of loans held for sale (7,110,000) (5,639,000)
Proceeds from sale of loans held for sale 7,309,000 5,736,000
Gain on sale of loans held for sale (199,000) (97,000)
Earnings on bank-owned life insurance [1] (930,000) (823,000)
Deferred 198,000 (705,000)
Losses on other real estate owned 0 170,000
Decrease (increase) in accrued interest receivable 75,000 (1,183,000)
Increase (decrease) in accrued interest payable (1,060,000) 2,348,000
Other, net (624,000) 119,000
Net cash provided by operating activities 17,468,000 22,356,000
INVESTING ACTIVITIES    
Proceeds from repayments and maturities 2,127,000 3,259,000
Purchases (2,938,000) (2,000,000)
Proceeds from sale 96,000 0
Purchases (5,000) (200,000)
Increase in loans, net (41,292,000) (129,220,000)
Proceeds from the sale of other real estate owned 0 5,651,000
Proceeds from bank-owned life insurance 0 289,000
Purchase of premises and equipment (776,000) (1,096,000)
Purchase of restricted stock (4,790,000) (7,462,000)
Redemption of restricted stock 4,289,000 4,237,000
Net cash used in investing activities (43,289,000) (126,542,000)
FINANCING ACTIVITIES    
Net increase in deposits 19,091,000 24,780,000
Net increase in Federal Home Loan Bank advances 9,400,000 98,000,000
Repayment of other borrowings (202,000) (197,000)
Repurchase of common shares (1,055,000) (4,506,000)
Cash dividends (6,457,000) (6,864,000)
Net cash provided by financing activities 20,777,000 111,213,000
(Decrease) increase in cash and cash equivalents (5,044,000) 7,027,000
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 60,836,000 53,809,000
CASH AND CASH EQUIVALENTS AT END OF PERIOD 55,792,000 60,836,000
SUPPLEMENTAL INFORMATION    
Interest on deposits and borrowings 41,642,000 22,750,000
Income taxes 1,975,000 1,565,000
Noncash investing transactions:    
Purchased loan fair value adjustment $ 0 $ 4,621,000
[1] Not within scope of ASC 606
v3.25.0.1
Insider Trading Arrangements
3 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2024
Trading Arrangements, by Individual [Table]    
Material Terms of Trading Arrangement [Text Block]  

Item 9B Other Information

 

During the three months ended December 31, 2024, there were no "Rule 10b5-1 trading plans" or "non-Rule 10b5-1 trading arrangements" adopted, modified or terminated by any director or officer of the Company (as such terms are defined in Item 408 of Regulation S-K of the Exchange Act).

Rule 10b5-1 Arrangement Terminated [Flag] false  
Rule 10b5-1 Arrangement Adopted [Flag] false  
Non-Rule 10b5-1 Arrangement Terminated [Flag] false  
Non-Rule 10b5-1 Arrangement Adopted [Flag] false  
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

 

Item 1C  Cybersecurity

 

Risk Management and Strategy

 

We have developed a comprehensive Information Security Program (“ISP”) that was designed as the guiding policy to establish standards designed to protect the confidentiality of nonpublic, sensitive personal and business information, protect against potential threats to the security or integrity of such information, and protect against unauthorized access to or use of such information. The ISP applies to all Company employees, contractors, consultants, and third-party vendors as well as all technology owned and operated by the Bank. The scope of the ISP covers customer data as well as the Company’s strategic and proprietary information. The Board of Directors approves the ISP annually. Additionally, the Information Technology Steering Committee (“ITSC”) must approve significant modifications to the ISP prior to review and approval by the Board of Directors. The Chief Information Officer (“CIO”) is responsible for the implementation and maintenance of the ISP.

 

Key elements of our ISP include:

 

 

Identification of sources and types of technology threats

 

Tools and processes to manage technology security, such as change control approval, employing a Unified Threat Management System, and usage of anti-virus and anti-spam hardware

 

Ongoing security assessments conducted by third-party vendors, such as vulnerability assessments and penetration testing, and mitigation of any findings

 

Continuous firewall monitoring provided by a third-party vendor

 

Information security training for employees provided by a third-party vendor

 

Annual security audits of third-party vendors

 

Our Information Security Governance Plan (“InfoSec”) is a component of the ISP and provides for strategic oversight of critical aspects of the Bank’s information security. The objective of InfoSec is to provide a framework for decision-making and accountability for information security issues to ensure that the ISP is actively monitored, and information security permeates through all areas and initiatives across the organization. InfoSec is actively managed by an InfoSec Governance Council ("ISGC") that consists of the Chief Risk Officer ("CRO"), virtual Chief Information Security Officer ("CISO"), Chief Strategy and Innovation Officer ("CSIO"), a cybersecurity focused systems engineer, and the CIO.  The CRO, CISO, and CIO are part of the ITSC, along with other executives of the Bank.

 

Security assessments are an ongoing activity within the Bank, and the Security Assessment Policy identifies security assessment requirements and those individuals accountable for ensuring the assessments comply with the requirements. All assessment activities must be approved by the CRO. The coverage of assessments includes, but is not limited to, physical security assessment, information technology general controls audit, vulnerability assessment, penetration testing, and social engineering testing. Results are shared with the ITSC, executive management and the Board of Directors.

 

There is an established Incident Response Program (“IRP”) that provides a framework for us to respond quickly, decisively, and appropriately to limit the impact of an adverse event, such as a cybersecurity incident, on customers and information resources. Procedures have been developed that outline the necessary steps should an incident occur, such as incident identification, classification, and escalation. We use a Cybersecurity Assessment Tool to assess our cybersecurity preparedness on a periodic basis. A Cybersecurity Incident Response Team, which is part of our general Incident Response Team, will take the appropriate actions as outlined in the IRP in the event a cybersecurity situation occurs.

 

We do not believe that risks from cybersecurity threats, including the previously disclosed cyber-attack that occurred in April 2023, have materially impacted or are reasonably likely to materially impact our overall business strategy, results of operations, or financial condition. We maintain cybersecurity insurance to cover the costs resulting from cyber-attacks; however, the policy may not cover all losses from cybersecurity incidents. Refer to the discussion on the April 2023 incident in Note 15 - Commitments and Contingent Liabilities of our Consolidated Financial Statements and the discussion of cybersecurity risk in Part I, Item 1A, “Risk Factors”.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have developed a comprehensive Information Security Program (“ISP”) that was designed as the guiding policy to establish standards designed to protect the confidentiality of nonpublic, sensitive personal and business information, protect against potential threats to the security or integrity of such information, and protect against unauthorized access to or use of such information. The ISP applies to all Company employees, contractors, consultants, and third-party vendors as well as all technology owned and operated by the Bank. The scope of the ISP covers customer data as well as the Company’s strategic and proprietary information. The Board of Directors approves the ISP annually. Additionally, the Information Technology Steering Committee (“ITSC”) must approve significant modifications to the ISP prior to review and approval by the Board of Directors. The Chief Information Officer (“CIO”) is responsible for the implementation and maintenance of the ISP.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block] We do not believe that risks from cybersecurity threats, including the previously disclosed cyber-attack that occurred in April 2023, have materially impacted or are reasonably likely to materially impact our overall business strategy, results of operations, or financial condition. We maintain cybersecurity insurance to cover the costs resulting from cyber-attacks; however, the policy may not cover all losses from cybersecurity incidents. Refer to the discussion on the April 2023 incident in Note 15 - Commitments and Contingent Liabilities of our Consolidated Financial Statements and the discussion of cybersecurity risk in Part I, Item 1A, “Risk Factors”.
Cybersecurity Risk Board of Directors Oversight [Text Block]

Governance

 

Board of Directors

 

The Board of Directors, in coordination with the Audit Committee, oversees the Company’s management of cybersecurity risk. The Board receives monthly reports from the CIO, focusing on cybersecurity and information technology updates. The reports include key insights regarding our security risk score, areas of focus, and metrics from our third-party provider regarding security investigations and incidents as well as the results of training and phishing simulations. The Audit Committee receives periodic updates on information security risk and maturity of our ISP. The Audit Committee also receives reports with the results of security assessments conducted by third-parties.

 

Management

 

Under the leadership of the CIO, the ITSC serves to improve the effectiveness of information technology at the Bank and ensure alignment with the Bank’s strategic business plan and statement of risk appetite. Composition of the ITSC consists of senior management from the business areas. The virtual CISO is a non-voting member of the ITSC. Meetings occur at least bi-annually. The ITSC is tasked with reviewing the Bank’s technology, information security, business continuity, digital initiatives, vendor management, and data management strategic direction and providing feedback to management.

 

The ISGC acts on the behalf of and to assist the Board of Directors and executive management in fulfilling its oversight responsibilities regarding the Bank’s information security programs and risks. The ISGC is comprised of members from Risk, Information Technology, and other strategic areas within the Bank and meets at least quarterly. The responsibilities of the ISGC include providing strategic oversight and implementation guidance for the ISP, aligning cybersecurity and business objectives, monitoring and reporting on cybersecurity and information security incidents, and promoting a strong culture around information security.

 

As stated above, the CIO is a member of the ISGC, chairs the ITSC, and reports to the CSIO. The CIO has over 40 years of business experience in information technology and cybersecurity and is a Certified Bank Cybersecurity Manager. The virtual CISO is outsourced to a third-party vendor that specializes in partnering with organizations to enhance cybersecurity management and reports to the CRO.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board of Directors, in coordination with the Audit Committee, oversees the Company’s management of cybersecurity risk. The Board receives monthly reports from the CIO, focusing on cybersecurity and information technology updates. The reports include key insights regarding our security risk score, areas of focus, and metrics from our third-party provider regarding security investigations and incidents as well as the results of training and phishing simulations. The Audit Committee receives periodic updates on information security risk and maturity of our ISP. The Audit Committee also receives reports with the results of security assessments conducted by third-parties.
Cybersecurity Risk Role of Management [Text Block] Under the leadership of the CIO, the ITSC serves to improve the effectiveness of information technology at the Bank and ensure alignment with the Bank’s strategic business plan and statement of risk appetite. Composition of the ITSC consists of senior management from the business areas. The virtual CISO is a non-voting member of the ITSC. Meetings occur at least bi-annually. The ITSC is tasked with reviewing the Bank’s technology, information security, business continuity, digital initiatives, vendor management, and data management strategic direction and providing feedback to management.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] As stated above, the CIO is a member of the ISGC, chairs the ITSC, and reports to the CSIO. The CIO has over 40 years of business experience in information technology and cybersecurity and is a Certified Bank Cybersecurity Manager. The virtual CISO is outsourced to a third-party vendor that specializes in partnering with organizations to enhance cybersecurity management and reports to the CRO.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The ISGC acts on the behalf of and to assist the Board of Directors and executive management in fulfilling its oversight responsibilities regarding the Bank’s information security programs and risks. The ISGC is comprised of members from Risk, Information Technology, and other strategic areas within the Bank and meets at least quarterly. The responsibilities of the ISGC include providing strategic oversight and implementation guidance for the ISP, aligning cybersecurity and business objectives, monitoring and reporting on cybersecurity and information security incidents, and promoting a strong culture around information security.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Note 1 - Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Significant Accounting Policies [Text Block]

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation and Basis of Presentation

 

The consolidated financial statements of Middlefield Banc Corp. ("Company") include its bank subsidiary, The Middlefield Banking Company (“MBC” or “Bank”), and a nonbank asset resolution subsidiary EMORECO, Inc. The consolidated financial statements also include the accounts of MBC’s subsidiaries, Middlefield Investments, Inc. (“MI”) and MB Insurance Services (“MIS”). All significant inter-company items have been eliminated.

 

On March 13, 2019, MBC established MI as an operating subsidiary to hold and manage an investment portfolio. On December 31, 2024, MI’s assets consist of a cash account, investments, and related accrued interest accounts. MI may only hold and manage investments and may not engage in any other activity without prior approval of the Ohio Division of Financial Institutions. In the first quarter of 2022, MBC established MIS as an operating subsidiary to offer retail and business customers various insurance services, including home, renters, automobile, pet, identity theft, travel, and professional liability insurance. On December 31, 2024, MIS assets consist of a cash account, a prepaid asset, and an accounts receivable. As a result of the bank merger of Liberty National Bank and MBC on December 1, 2022, Middlefield Banc Corp. acquired a 100% ownership interest in LBSI Insurance, LLC (“LBSI”), a wholly owned financial subsidiary of Liberty National Bank. LBSI did not operate after the merger, and its existence ended January 19, 2024. All significant intercompany items have been eliminated between MBC and these subsidiaries.

 

On December 1, 2022, the Company completed its merger with Liberty Bancshares, Inc. (“Liberty’), pursuant to a previously announced definitive merger agreement. Under the terms of the merger agreement, Liberty shareholders received 2.752 shares of the Company’s common stock in exchange for each share of Liberty common stock they owned immediately before the merger. The Company issued 2,561,513 shares of its common stock in the merger, and the aggregate merger consideration was approximately $73.3 million. Upon closing, Liberty’s bank subsidiary was merged into MBC, and Liberty’s six full-service bank offices, in Ada and Kenton in Hardin County, Bellefontaine North and Bellefontaine South in Logan County, Marysville in Union County, and Westerville in Franklin County, became offices of MBC.

 

Estimates

 

In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts and liabilities as of the balance sheet date and revenues and expenses for the period. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

The Company has defined cash and cash equivalents as those amounts included in the Consolidated Balance Sheet captions as “Cash and due from banks” and “Federal funds sold” with original maturities of less than 90 days.

 

Investments 

 

Management determines the appropriate classification of investment securities at the time of purchase and re-evaluates such designation as of each balance sheet date.

 

Investment securities classified as available for sale are those securities that the Bank intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Bank’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Unrealized gains or losses are reported as increases or decreases in other comprehensive income (loss), net of the deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities.

 

Investment securities classified as held to maturity are those securities the Bank has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost, adjusted for the amortization of premium and accretion of discount, and computed by a method that approximates the interest method over the terms of the securities. As of December 31, 2024, the Company did not hold any held-to-maturity securities.

 

Equity securities, which are included in "other investments" on the Consolidated Balance Sheet, are measured at fair value with changes in fair value recognized in net income.

 

Allowance for Credit Losses Investment Securities Available for Sale

 

The Bank adopted ASU No. 2016-13, Financial Instruments - Credit Loses - Topic (326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), effective January 1, 2023. Financial statement amounts related to investment securities recorded as of December 31, 2024 and 2023 are presented in accordance with the accounting policies described in the following sections.

 

The Bank measures expected credit losses on available for sale investment securities when the Bank intends to sell, or when it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For available for sale investment securities that do not meet the aforementioned criteria, the Bank evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Bank considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Economic forecast data is used to calculate the present value of expected cash flows. The Bank obtains its forecast data through a subscription to a widely recognized and relied-upon company that publishes various forecast scenarios. Management evaluates the various scenarios to determine a reasonable and supportable scenario and uses a single scenario in the model. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

 

The allowance for credit losses is included within "investment securities available for sale" on the Consolidated Balance Sheet, as applicable. Changes in the allowance for credit losses are recorded within the "provision for credit losses" on the Consolidated Income Statement. Losses are charged against the allowance when the Bank believes the collectability of an available for sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met.

 

Accrued interest receivable on available for sale investment securities is included within "accrued interest receivable and other assets" on the Consolidated Balance Sheet. This amount is excluded from the estimate of expected credit losses. Available for sale investment securities are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available for sale investment securities are placed on nonaccrual status, unpaid interest credited to income is reversed.

 

Loans

 

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of unearned income, which includes net deferred loan fees and costs and unamortized premiums and discounts. Accrued interest receivable is included within "accrued interest receivable and other assets" on the Consolidated Balance Sheet. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loans’ yield (interest income). The Bank amortizes these amounts over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method. Interest income is primarily recognized on an accrual basis according to formulas in written contracts, such as loan agreements.

 

The loan portfolio is segmented into commercial and consumer loans. Commercial loans consist of the following classes: commercial construction, commercial and industrial loans, and commercial real estate loans. Consumer loans consist of the following classes: residential real estate loans, home equity loans, and consumer loans.

 

For all classes of loans, the accrual of interest 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, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for credit losses. Interest received on nonaccrual loans generally is either applied against the principal or reported as interest income on a cash basis, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past-due status of all classes of loans is determined based on contractual due dates for loan payments.

 

Allowance for Credit Losses ("ACL") Loans

 

The Bank adopted ASU 2016-13, effective January 1, 2023. Financial statement amounts related to loans recorded as of December 31, 2024 and 2023 are presented in accordance with the accounting policies described in the following sections. The guidance applies an expected-loss methodology, recognizing current expected credit losses for the remaining life of the asset at the time of origination or acquisition.

 

The allowance for credit losses ("ACL") is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

 

The ACL is an estimate of expected credit losses, measured over the contractual life of a loan that considers our historical loss experience, current conditions, and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period.

 

Management uses a discounted cash flow ("DCF") model to calculate the present value of the expected cash flows for pools of loans that share similar risk characteristics and compares the results of this calculation to the amortized cost basis to determine its ACL balance.

 

The contractual term used in projecting the cash flows of a loan is based on the maturity date of a loan and is adjusted for prepayment or curtailment assumptions, which may shorten that contractual time period. Options to extend are considered by management in determining the contractual term.

 

The key inputs to the DCF model are (1) probability of default, (2) loss given default, (3) prepayment and curtailment rates, (4) reasonable and supportable economic forecasts, (5) forecast reversion period, (6) expected recoveries on charged off loans, and (7) discount rate.

 

Probability of Default ("PD")

In order to incorporate economic factors into forecasting within the DCF model, management elected to use the Loss Driver method to generate the PD rate inputs. The Loss Driver method analyzes how one or more economic factors change the default rate using statistical regression analysis. Management selected economic factors that have strong correlations to historical default rates.

 

Loss Given Default ("LGD")

Management elected to use the Frye Jacobs parameter for determining the LGD input, which is an estimation technique that derives an LGD input from segment-specific risk curves that correlate LGD with PD.

 

Prepayment and Curtailment Rates

Prepayment Rates: Loan-level transaction data is used to calculate semi-annual prepayment rates. These semi-annual rates are annualized, and the average of the annualized rates is used in the DCF calculation for fixed payments or term loans. Rates are calculated for each pool.

 

Curtailment Rates: Loan-level transaction data is used to calculate annual curtailment rates using available historical loan-level data. The average of the historical rates is used in the DCF model for interest-only payment or line-of-credit type loans. Rates are calculated for each pool.

 

Reasonable and Supportable Forecasts

The forecast data used in the DCF model is obtained via a subscription to a widely recognized and relied-upon company that publishes various forecast scenarios. Management evaluates the various scenarios to determine a reasonable and supportable scenario.

 

Forecast Reversion Period

Management uses forecasts to predict how economic factors will perform and has determined to use a four-quarter forecast period as well as an eight-quarter straight-line reversion period to historical averages (also commonly referred to as the mean reversion period).

 

Expected Recoveries on Charged-off Loans

Management performs an analysis to estimate recoveries that could be reasonably expected based on historical experience in order to account for expected recoveries on loans that have already been fully charged off and are not included in the ACL calculation.

 

Discount Rate

The effective interest rate of the underlying loans of the Company serves as the discount rate applied to the expected periodic cash flows. Management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments.

 

Individual Evaluation

Management evaluates individual instruments for expected credit losses when those instruments do not share similar risk characteristics with instruments evaluated using a collective (pooled) basis. These instruments will not be included in the collective analyses. The individual analysis will establish a specific reserve for instruments in scope.

 

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company’s loan portfolio is segmented to a level that allows management to monitor risk and performance. The portfolio is segmented into Commercial Real Estate (“CRE”), which is further segmented into Owner Occupied (“CRE OO”), Non-owner Occupied (“CRE NOO”), and Multifamily Residential, Residential Real Estate (“RRE”), Commercial and Industrial (“C&I”), Home Equity Lines of Credit (“HELOC”), Construction and Other (“Construction”), and Consumer Installment Loans. The CRE loan segments consist of loans made to finance the activities of CRE owners and operators and certain agricultural loans. The RRE and HELOC loan segments consist of loans made to finance the activities of residential homeowners. The C&I loan segment consists of loans made to finance the activities of commercial customers and certain agricultural loans. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts.

 

Historical credit loss experience is the basis for the estimation of expected credit losses. We apply historical loss rates to pools of loans with similar risk characteristics. After consideration of the historic loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information at the balance sheet date. The qualitative adjustments for current conditions are based upon national and local economic trends and conditions, levels of and trends in delinquency rates and nonaccrual loans, trends in volumes and terms of loans, effects of changes in lending policies, experience, ability, and depth of lending staff, the value of underlying collateral, concentrations of credit from a loan type, industry, and/or geographic standpoint. These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve.

 

The Bank has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on nonaccrual status, any outstanding accrued interest is reversed against interest income.  Accrued interest receivable is included within accrued interest receivable and other assets on the Consolidated Balance Sheet.

 

The ACL calculation for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and should, therefore, be individually assessed. The Bank automatically considers all non-accrual loans greater than $250,000 for individual analysis. Additional identification of loans to be individually evaluated is accomplished through the Bank’s normal loan review, criticized asset review, and portfolio management processes. The Bank previously evaluated all commercial loans greater than $150,000 for individual analysis that met the following criteria: 1) when it is determined that foreclosure is probable, 2) substandard, doubtful, and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, and 3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Specific reserves are established based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate, 2) the loan’s observable market price, or 3) the fair value of the collateral when the loan is collateral dependent. Management considers a financial asset as collateral dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral, based on management's assessment as of the reporting date. Measurement of the expected credit losses on collateral-dependent loans is based on the fair value of the collateral, less any costs to sell. A specific reserve is established or a charge-off is taken if the fair value of the loan is less than the loan balance. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual residential real estate loans, home equity loans, and consumer loans for impairment disclosures.

 

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

 

The Bank adopted ASU No. 2016-13 effective January 1, 2023. The Bank estimates expected credit losses over the contractual period in which the Bank is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Bank. The allowance for credit losses on off-balance sheet credit exposures is included in "accrued interest payable and other liabilities" on the Consolidated Balance Sheet and adjusted through the provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life, consistent with the estimation process on the loan portfolio.

 

Restricted Stock

 

Common stock of the FHLB represents ownership in an institution that is wholly owned by other financial institutions. This equity security is accounted for at cost and classified with "accrued interest and other assets" in the Consolidated Balance Sheet. The FHLB of Cincinnati has reported profits for 2024 and 2023, remains in compliance with regulatory capital and liquidity requirements, and continues to pay dividends on the stock and make redemptions at the par value. Considering these factors, management concluded that the stock was not impaired on December 31, 2024, or 2023.

 

Mortgage Banking Activities

 

The Bank sells residential mortgage loans on a servicing retained basis. Servicing rights are initially recorded at fair value. The Bank measures servicing assets using the amortization method. Loan servicing rights are amortized in proportion to and throughout estimated net future servicing revenue. The expected period of the estimated net servicing income is partly based on the expected prepayment of the underlying mortgages. The unamortized balance of mortgage servicing rights is included in "accrued interest and other assets" on the Consolidated Balance Sheet.

 

Servicing fee income is recorded for fees earned for servicing loans and included in "other income" in the Consolidated Income Statement. The fees are based on a contractual percentage of outstanding principal and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material. The Bank is servicing loans for others in the amount of $197.4 million and $210.3 million on December 31, 2024, and 2023, respectively.

 

Premises and Equipment

 

Land is carried at cost. Premises and equipment are stated at cost net of accumulated depreciation. Depreciation is computed on the straight-line method over the assets' estimated useful lives, which range from 3 to 20 years for furniture, fixtures, and equipment and 3 to 40 years for buildings and leasehold improvements. Expenditures for maintenance and repairs are charged against income as incurred. Costs of significant additions and improvements are capitalized.

 

Leases

 

The Company has operating and financing leases for several branch locations and office space. Generally, the underlying lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company may also lease specific office equipment under operating leases. Many of our leases include both lease (e.g., minimum rent payments) and non-lease components (e.g., common-area or other maintenance costs). The Company accounts for each element separately based on the standalone price of each component. Operating and financing leases with lease terms of less than one year are excluded from our right-of-use assets and lease liabilities. Operating and financing lease expense are recognized in "occupancy expense" and "equipment expense" in the Consolidated Income Statement on a straight-line basis over the lease term.

 

Most leases include one or more options to renew. The exercise of lease renewal options is typically at the sole discretion of management. It is based on whether the extension options are reasonably certain to be exercised after giving proper consideration to all facts and circumstances of the lease. If management determines that the Company is reasonably sure to exercise the extension option(s), the additional term is included in the calculation of the right-of-use asset and a lease liability.

 

As most of our leases do not provide an implicit rate, we use the fully collateralized FHLB borrowing rate commensurate with the lease terms based on the information available at the lease commencement date in determining the present value of the lease payments.

 

Business Combinations

 

Business combinations are accounted for under the acquisition method of accounting. Acquired assets, including separately identifiable intangible assets, and assumed liabilities are recorded at their acquisition-date fair values. The excess of the cost of acquisition over the fair values is recognized as goodwill. During the measurement period, which cannot exceed one year from the acquisition date, changes to estimated fair values are recognized as an adjustment to goodwill. Certain transaction costs are expensed as incurred.

 

Goodwill

 

Goodwill represents the amount by which the cost of net assets acquired in a business combination exceeds their fair value. Goodwill is not amortized and is tested for impairment, at least annually as of October 1, or when indicators of impairment exist. We have elected to perform qualitative assessment for testing the impairment of goodwill. If we elect to bypass this qualitative assessment or conclude as a result of the qualitative assessment that it is more likely than not that the fair value is less than its carrying value, a quantitative impairment test will be performed. If the fair value is less than carrying value, an impairment charge is recorded for the difference.

 

Intangible Assets

 

Intangible assets include core deposit intangibles, which measure the value of consumer demand and savings deposits acquired in business combinations accounted for as purchases. The core deposit intangibles are amortized over their expected useful lives, commonly ten years, on a straight-line basis. The recoverability of the carrying value of intangible assets is evaluated on an ongoing basis, and permanent declines in value, if any, are charged to expense.

 

Bank-Owned Life Insurance (BOLI)

 

The Company owns insurance on the lives of a specific group of key employees. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The cash surrender value of these policies is included as an asset on the Consolidated Balance Sheet, and any increases in the cash surrender value are recorded as noninterest income on the Consolidated Income Statement. In the event of the death of an insured individual under these policies, the Company would receive a death benefit, which would be recorded as tax-free noninterest income.

 

Other Real Estate Owned (OREO)

 

Real estate properties acquired through foreclosure are initially recorded at fair value at the foreclosure date, establishing a new cost basis. After foreclosure, the real estate is carried at the lower of cost or fair value less estimated cost to sell. Revenue and expenses from operations of the properties, gains or losses on sales, and additions to the valuation allowance are included in operating results. At December 31, 2024 and 2023, the Company reported $352,000 and $228,000, respectively, in residential real estate loans in the process of foreclosure. 

 

Fair Value

 

Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between market participants in the principal market. It represents an exit price at the measurement date. Valuation inputs can be observable or unobservable. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy that gives the highest ranking to quoted prices in active markets for identification assets or liabilities (Level 1) and the lowest ranking to unobservable inputs (Level 3). Fair values for Level 2 assets and liabilities are based on a combination of one or more of the following factors: (1) quoted market prices for similar assets or liabilities, (2) observable inputs, such as interest rates or yield curves, or (3) inputs derived principally from or corroborated by observable market data. The level in the fair value hierarchy assigned to a fair value measurement is based on the lowest level input that is significant to the measurement. Assets and liabilities may transfer between levels based on the observable and unobservable inputs used at the valuation date.

 

Assets and liabilities are recorded at fair value on a recurring or nonrecurring basis. Nonrecurring fair value adjustments are typically recorded with the application of lower of cost or fair value accounting or impairment.

 

Income Taxes

 

The Company and its subsidiaries file a consolidated federal income tax return. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. The net balance of deferred tax assets and liabilities is reported in "accrued interest receive and other assets" or "accrued interest payable and other liabilities" in the Consolidated Balance Sheet, as appropriate. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

 

Fee-based Services Revenue Recognition

 

Refer to Note 2 - Revenue Recognition.

 

Stock-Based Compensation

 

The Company accounts for stock-based compensation based on the grant date fair value of all share-based payment awards expected to vest, including employee share options. Compensation cost is recognized for restricted stock issued to employees based on the fair value of these awards at the grant date. The market price of the Company’s common shares at the grant date is used to estimate the fair value of restricted stock and stock awards. Stock-based compensation cost for awards granted to employees is recognized over the required service period, generally defined as the vesting period, and is recorded in "salaries and employee benefits" expense in the Consolidated Income Statement, while the expense related to awards granted to directors is recorded in "other expense". (See Note 14 - Employee Benefits). One of the Company’s restricted stock plans allows for a portion of the value to be received in cash by the participant upon vesting. Therefore, the Company records the expense as a liability until the shares vest and the split of the payment between shares and cash can be determined. The Company also measures the fair value of the liability each reporting period and adjusts accordingly.  Another of the Company's restricted stock plans settles in shares upon vesting, and the related expense is recorded through additional paid-in capital. 

 

The Company has performance-based restricted stock units whereby the vesting in the granted awards is contingent on certain internal and external financial performance factors. The fair value of these stock units is estimated using a Monte Carlo simulation, as further discussed in Note 14 - Employee Benefits.  

 

Advertising Costs

 

Advertising costs are expensed as incurred.

 

Treasury Stock

 

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. The reserve for the Company’s treasury shares comprises the cost of the Company’s shares held by the Company. 

 

Earnings Per Share

 

The Company provides a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated utilizing net income as reported in the numerator and average shares outstanding in the denominator. The computation of diluted earnings per share differs in that the dilutive effects of any stock options, warrants, and convertible securities are adjusted in the denominator. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements.

 

Reclassification of Comparative Amounts

 

Certain comparative amounts for prior years have been reclassified to conform to current-year presentations. Such reclassifications did not affect net income or retained earnings.

 

Accounting Pronouncements Adopted in 2024

 

In  March 2023, the FASB issued ASU 2023-02, Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The amendments allow entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related tax credits. This method of accounting had been available only for qualifying investments in qualified affordable housing projects. The guidance also requires certain disclosures regarding an entity’s tax equity investments. The amendments in this ASU are effective for all entities for fiscal years beginning after  December 15, 2023. This ASU did not have a significant impact on the Company’s financial statements.

 

In  January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,  March 2020, to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (SOFR). Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls “reference rate reform” if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 Issued  December 2022, which was issued in  December 2022, extended the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from  December 31, 2022 to  December 31, 2024. The ASUs did not have a significant impact on the Company’s financial statements.

 

In  June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendment clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit account of the equity security and is not considered in measuring its fair value. The ASU clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The ASU also requires certain disclosures for equity securities subject to contractual sale restrictions. The amendments in this ASU are effective for all entities for fiscal years beginning after  December 15, 2023. This ASU did not have a significant impact on the Company’s financial statements.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU requires enhanced disclosures about significant segment expenses for public entities reporting segment information under ASC Topic 280. The amendments include required disclosure of significant segment expenses regularly reviewed by the chief operating decision maker, description of the composition of other segment items, and title and position of the chief operating decision maker. Additionally, the ASU requires public entities to provide all annual disclosures under Topic 280 in interim periods. The ASU also requires that public entities with a single reportable segment provide all the disclosures required by this amendment and existing disclosure requirements in Topic 820. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company has a single reportable segment. The disclosure requirements under the ASU have been incorporated in Note 19 - Segment Reporting.

 

Recent Accounting Pronouncements

 

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require entities to disclose specific categories in the rate reconciliation and provide additional information for material reconciling items. The ASU also requires the disclosure of income taxes paid disaggregated by jurisdiction. The amendments in this ASU are effective for public business entities for annual periods beginning after  December 15, 2024. This ASU is not expected to have a significant impact on the Company’s financial statements.

 

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Topic 220-40): Disaggregation of Income Statement Expenses.  The guidance requires public companies to disclose additional information about certain types of costs and expenses.  The amendment should be applied on a prospective or retrospective basis.  The amendments in this ASU are effective for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. This ASU is not expected to have a significant impact on the Company’s financial statements. 

 

v3.25.0.1
Note 2 - Revenue Recognition
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

2.

REVENUE RECOGNITION

 

Following ASC Topic 606, Revenue from Contracts with Customers (Topic 606), management determined that the primary sources of revenue, which emanate from interest income on loans and investments, along with noninterest revenue resulting from equity security gains (losses), gains on the sale of loans, rental income, and BOLI income, are not within the scope of ASC 606. For the twelve months ended December 31, 2024, these revenue sources cumulatively comprise 94.4% of the total revenue of the Company.

 

The main types of noninterest income within the scope of the standard are as follows:

 

Service charges on deposit accounts – The Company has contracts with its deposit customers whereby fees are charged if the account balance falls below predetermined levels defined as compensating balances. These agreements can be canceled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized monthly as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific customer requests or activities that include overdraft fees, online banking fees, and other transaction fees. All of these fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time, which is the completion of the requested service/transaction.

 

Revenue from investment services – The Company earns investment services revenue through its referral agreement with LPL Financial. The performance obligation to investment management customers is satisfied over time, and therefore, revenue is recognized over time. The Company generally receives trailing investment services revenue in arrears and recognizes the revenue when the monthly statement with referral revenue is received.

 

Miscellaneous fee income – Fees earned on other services, such as ATM surcharge fees, money order fees, and check fees, are recognized at the time of the event or the applicable billing cycle.

 

The following table depicts the disaggregation of revenue derived from contracts with customers to depict the nature, amount, timing, and uncertainty of revenue and cash flows:

 

  

For the Year Ended December 31,

 

(Dollar amounts in thousands)

 

2024

  

2023

 

Noninterest Income

        

Service charges on deposit accounts:

        

Overdraft fees

 $1,001  $995 

ATM banking fees

  1,899   1,928 

Service charges and other fees

  1,007   955 

Loss on equity securities ⁽ª⁾

  (9)  (161)

Loss on sale of other real estate owned ⁽ª⁾

  -   (170)

Earnings on bank-owned life insurance ⁽ª⁾

  930   823 

Gain on sale of loans ⁽ª⁾

  199   97 

Revenue from investment services

  916   743 

Miscellaneous fee income

  403   380 

Gross rental income ⁽ª⁾

  68   421 

Other income

  799   680 

Total noninterest income

 $7,213  $6,691 

 

(a) Not within scope of ASC 606

 

v3.25.0.1
Note 3 - Earnings Per Share
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Earnings Per Share [Text Block]

3.

EARNINGS PER SHARE

 

The Company provides a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the average shares outstanding. Diluted earnings per share adds the dilutive effects of restricted stock to average shares outstanding.

 

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation for the year ended December 31:

 

  

For the Twelve

 
  

Months Ended

 
  

December 31,

 
  

2024

  

2023

 
         

Weighted-average common shares outstanding

  9,947,420   9,925,689 
         

Average treasury stock shares

  (1,872,120)  (1,822,459)
         

Weighted-average common shares and common stock equivalents used to calculate basic earnings per share

  8,075,300   8,103,230 
         

Additional common stock equivalents (stock options and restricted stock) used to calculate diluted earnings per share

  10,798   22,783 
         

Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share

  8,086,098   8,126,013 

 

Outstanding on  December 31, 2024, were 109,831 shares of restricted stock, 99,033 shares of which were anti-dilutive.

 

Outstanding on  December 31, 2023, were 78,573 shares of restricted stock, 55,790 shares of which were anti-dilutive.

 

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. The reserve for the Company’s treasury shares comprises the cost of the Company’s shares held by the Company. As of  December 31, 2024, the Company held 1,879,310 of the Company’s shares, which is an increase of 43,858 from the 1,835,452 shares held as of  December 31, 2023.

 

v3.25.0.1
Note 4 - Accumulated Other Comprehensive (Loss) Income
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Comprehensive Income (Loss) Note [Text Block]

4.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

 

The following table presents the changes in accumulated other comprehensive income (loss) (“AOCI”) by component, net of tax:

 

(Dollars in thousands)

 

Unrealized (losses)/gains on securities available-for-sale

 

Balance at December 31, 2023

 $(16,090)

Other comprehensive loss⁽ª⁾

  (3,983)

Balance at December 31, 2024

 $(20,073)

 

(Dollars in thousands)

 

Unrealized (losses)/gains on securities available-for-sale

 

Balance at December 31, 2022

 $(22,144)

Other comprehensive income⁽ª⁾

  6,054 

Balance at December 31, 2023

 $(16,090)

 

(a)

All amounts are net of tax.

 

There were no other reclassifications of amounts from AOCI for the years ended December 31, 2024, and 2023.

 

v3.25.0.1
Note 5 - Fair Value Measurements
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

5.

FAIR VALUE MEASUREMENTS

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following levels:

 

Level I:

Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

 

Level II:

Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are valued using other financial instruments, the parameters of which can be directly observed.

 

Level III:

Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

 

This hierarchy requires the use of observable market data when available.

 

The following tables present the assets measured at fair value on a recurring basis on the Consolidated Balance Sheet by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

 

      

December 31, 2024

     

(Dollar amounts in thousands)

 

Level I

  

Level II

  

Level III

  

Total

 

Assets measured on a recurring basis:

                

Subordinated debt

 $-  $25,830  $6,639  $32,469 

Obligations of states and political subdivisions

  -   124,966   -   124,966 

Mortgage-backed securities in government-sponsored entities

  -   8,367   -   8,367 

Total investment securities available for sale

  -   159,163   6,639   165,802 

Equity securities

  753   -   -   753 

Total

 $753  $159,163  $6,639  $166,555 

 

      

December 31, 2023

     

(Dollar amounts in thousands)

 

Level I

  

Level II

  

Level III

  

Total

 

Assets measured on a recurring basis:

                

Subordinated debt

 $-  $23,118  $8,801  $31,919 

Obligations of states and political subdivisions

  -   132,542   -   132,542 

Mortgage-backed securities in government-sponsored entities

  -   6,318   -   6,318 

Total investment securities available for sale

  -   161,978   8,801   170,779 

Equity securities

  814   -   -   814 

Total

 $814  $161,978  $8,801  $171,593 

 

Investment Securities Available for Sale - An independent pricing service provides the Company fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatilities, benchmarked yield curve, credit spreads and prices from market makers and live trading systems (Level II). Level III securities are assets whose fair value cannot be determined by using observable measures. The inputs to the valuation methodology of these securities are unobservable and significant to the fair value measurement. Currently, this category includes certain subordinated debt investments that are valued based on the discounted cash flow approach assuming a yield curve of similarly structured instruments.

 

While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of specific financial instruments could result in a different estimate of fair value at the reporting date. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period-ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments following the respective reporting dates may be different from the amounts reported at each period-end.

 

Equity Securities - Equity securities that are traded on a national securities exchange are valued at their last reported sales price as of the measurement date. Equity securities traded in the over-the-counter (“OTC”) markets and listed securities for which no sale was reported on that date are generally valued at their last reported “bid” price if held long, and last reported “ask” price if sold short. To the extent equity securities are actively traded and valuation adjustments are not applied, they are categorized in Level I of the fair value hierarchy.

 

The following table presents the fair value reconciliation of Level III assets measured at fair value on a recurring basis.

 

  

Subordinated debt

 

(Dollar amounts in thousands)

 

December 31, 2024

  

December 31, 2023

 

Beginning of year

 $8,801  $8,737 

Purchases, sales, settlements:

        

Purchases

  -   1,000 

Transfers out of Level III (1)

  (2,250)  (1,000)

Net change in unrealized loss on investment securities available-for-sale

  88   64 

End of year

 $6,639  $8,801 

 

(1)

Transfers between hierarchy levels are based on the availability of sufficient observable inputs to meet Level II versus Level III criteria. The level designation of each financial instrument is reassessed at the end of each period.

 

The following table presents the assets measured at fair value on a non-recurring basis on the Consolidated Balance Sheet by level within the fair value hierarchy. 

 

      

December 31, 2024

     

(Dollar amounts in thousands)

 

Level I

  

Level II

  

Level III

  

Total

 

Assets measured on a non-recurring basis:

                

Collateral-dependent loans

 $-  $-  $3,321  $3,321 

 

      

December 31, 2023

     

(Dollar amounts in thousands)

 

Level I

  

Level II

  

Level III

  

Total

 

Assets measured on a non-recurring basis:

                

Collateral-dependent loans

 $-  $-  $3,361  $3,361 

 

Collateral-Dependent Loans – The Company has measured impairment on collateral-dependent individually analyzed loans generally based on the fair value of the loan’s collateral. Fair value is generally determined based on independent third-party appraisals of the properties. In some cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. Additionally, management makes estimates about expected costs to sell the property, which are also included in the net realizable value. If the fair value of the collateral-dependent loan is less than the carrying amount of the loan, a specific reserve for the loan is made in the allowance for credit losses, or a charge-off is taken to reduce the loan to the fair value of the collateral (less estimated selling costs), and the loan is included in the above table as a Level III measurement in the period in which the adjustment is recorded. If the fair value of the collateral exceeds the carrying amount of the loan, then the loan is not included in the above table as it is not currently being carried at its fair value. The fair values in the preceding tables include selling costs of $968,000 and $843,000 on  December 31, 2024, and 2023, respectively.

 

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company uses Level III inputs to determine fair value:

 

  

Quantitative Information about Level III Fair Value Measurements

(Dollar amounts in thousands)

       
  

Fair Value Estimate

 

Valuation Techniques

Unobservable Input

Range (Weighted Average)

December 31, 2024

       

Collateral-dependent loans

 $3,321 

Appraisal of collateral (1)

Appraisal adjustments (2)

0 - 23.9% (23.9%)

 

  

Quantitative Information about Level III Fair Value Measurements

(Dollar amounts in thousands)

       
  

Fair Value Estimate

 

Valuation Techniques

Unobservable Input

Range (Weighted Average)

December 31, 2023

       

Collateral-dependent loans

 $3,361 

Appraisal of collateral (1)

Appraisal adjustments (2)

20.1%

 

(1)

Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs that are not identifiable, less any associated allowance.

(2)

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

 

The estimated fair value of the Company’s financial instruments not recorded at fair value on a recurring basis is as follows:

 

  

December 31, 2024

 
  

Carrying

              

Total

 
  

Value

  

Level I

  

Level II

  

Level III

  

Fair Value

 
(Dollar amounts in thousands) 

 

 

Financial assets:

                    

Net loans

 $1,497,167  $-  $-  $1,462,650  $1,462,650 

Mortgage servicing rights

  1,497   -   -   2,522   2,522 
                     

Financial liabilities:

                    

Non-maturing deposits

 $1,197,989  $1,197,989  $-  $-  $1,197,989 

Time deposits

  247,704   -   -   245,999   245,999 

Other borrowings

  11,660   -   -   11,660   11,660 

 

  

December 31, 2023

 
  

Carrying

              

Total

 
  

Value

  

Level I

  

Level II

  

Level III

  

Fair Value

 
(Dollar amounts in thousands) 

 

 

Financial assets:

                    

Net loans

 $1,456,437  $-  $-  $1,370,657  $1,370,657 

Mortgage servicing rights

  1,636   -   -   2,781   2,781 
                     

Financial liabilities:

                    

Non-maturing deposits

 $1,092,287  $1,092,287  $-  $-  $1,092,287 

Time deposits

  334,315   -   -   331,638   331,638 

Other borrowings

  11,862   -   -   11,862   11,862 

 

Included within other borrowings is an $8.2 million note payable, which matures in December 2037. These borrowings were used to form a special purpose entity to issue $8.0 million of floating rate, obligated mandatorily redeemable securities. The rate adjusts quarterly, equal to SOFR plus 1.67%. The borrowing is a floating rate instrument, and any difference between the cost and fair value is insignificant. 

 

In addition to the financial instruments included in the above tables, cash and cash equivalents, bank-owned life insurance, Federal Home Loan Bank (the “FHLB”) stock, other investments, accrued interest receivable, Federal Home Loan Bank advances, finance lease liabilities, and accrued interest payable, are carried at cost, which approximates the fair value of the instruments.

 

v3.25.0.1
Note 6 - Investment and Equity Securities
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

6.

INVESTMENT AND EQUITY SECURITIES

 

The amortized cost and fair values of investment securities available for sale are as follows:

 

  

December 31, 2024

 
      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 

(Dollar amounts in thousands)

 

Cost (a)

  

Gains

  

Losses

  

Value

 
                 

Subordinated debt

 $34,300  $67  $(1,898) $32,469 

Obligations of states and political subdivisions:

                

Tax-exempt

  147,767   4   (22,805)  124,966 

Mortgage-backed securities in government-sponsored entities

  9,144   1   (778)  8,367 

Total

 $191,211  $72  $(25,481) $165,802 

 

(a)

Accrued interest of $1.5 million is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheet.

 

  

December 31, 2023

 
      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 

(Dollar amounts in thousands)

 

Cost (a)

  

Gains

  

Losses

  

Value

 
                 

Subordinated debt

 $34,300  $70  $(2,451) $31,919 

Obligations of states and political subdivisions:

                

Tax-exempt

  149,881   153   (17,492)  132,542 

Mortgage-backed securities in government-sponsored entities

  6,965   -   (647)  6,318 

Total

 $191,146  $223  $(20,590) $170,779 

 

(a)

Accrued interest of $1.6 million is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheet.

 

The amortized cost and fair value of investment securities at December 31, 2024, by contractual maturity, are shown below. 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.

 

  

Amortized

  

Fair

 

(Dollar amounts in thousands)

 

Cost

  

Value

 
         

Due in one year or less

 $590  $590 

Due after one year through five years

  6,177   5,991 

Due after five years through ten years

  57,369   54,247 

Due after ten years

  127,075   104,974 

Total

 $191,211  $165,802 

 

There were no investment securities sold during the years ended December 31, 2024 and 2023.

 

Investment securities with an approximate carrying value of $112.1 million and $118.8 million on December 31, 2024, and 2023, respectively, were pledged to secure deposits and for other purposes as required by law.

 

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.

 

  

December 31, 2024

 
  

Less than Twelve Months

  

Twelve Months or Greater

  

Total

 
      

Gross

      

Gross

      

Gross

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 

(Dollar amounts in thousands)

 

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
                         

Subordinated debt

 $10,632  $(368) $20,770  $(1,530) $31,402  $(1,898)

Obligations of states and political subdivisions:

                        

Tax-exempt

  15,456   (487)  102,484   (22,318)  117,940   (22,805)

Mortgage-backed securities in government-sponsored entities

  1,986   (49)  5,118   (729)  7,104   (778)

Total

 $28,074  $(904) $128,372  $(24,577) $156,446  $(25,481)

 

  

December 31, 2023

 
  

Less than Twelve Months

  

Twelve Months or Greater

  

Total

 
      

Gross

      

Gross

      

Gross

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 

(Dollar amounts in thousands)

 

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
                         

Subordinated debt

 $994  $(6) $29,356  $(2,445) $30,350  $(2,451)

Obligations of states and political subdivisions:

                        

Tax-exempt

  1,386   (10)  106,078   (17,482)  107,464   (17,492)

Mortgage-backed securities in government-sponsored entities

  195   (1)  6,122   (646)  6,317   (647)

Total

 $2,575  $(17) $141,556  $(20,573) $144,131  $(20,590)

 

Every quarter, the Company evaluates investment securities with unrealized losses to determine if the decline in fair value has resulted from credit losses or other factors. There were 39 securities in an unrealized loss position for less than twelve months and 163 securities in an unrealized loss position for twelve months or greater on December 31, 2024. Unrealized losses on investment securities available for sale have not been recognized into income because we do not intend to sell and it is more likely than not that we will not be required to sell any of the securities in an unrealized loss position before recovery of their amortized cost. The unrealized losses on investment securities were attributable to changes in interest rates and not related to the credit quality of these issuers. As of December 31, 2024 and 2023, no ACL was required on investment securities available for sale. 

 

Other investments, which primarily represents equity securities, totaled $855,000 and $955,000 at December 31, 2024 and 2023, respectively. The Company recognized a net loss on other investments of $9,000 and $161,000 for the years ended December 31, 2024 and 2023, respectively. Other investments sold during 2024 resulted in the recognition of gains totaling $71,000. No other investments were sold during 2023.

 

v3.25.0.1
Note 7 - Loans and Related Allowance for Credit Losses
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

7.

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

 

The following table summarizes the loan portfolio by primary segment and class of financial receivable (in thousands):

 

  

December 31,

  

December 31,

 
  

2024 ⁽¹⁾⁽²⁾

  

2023 ⁽¹⁾⁽²⁾

 
         

Commercial real estate:

        

Owner occupied

 $181,447  $183,545 

Non-owner occupied

  412,291   401,580 

Multifamily

  89,849   82,506 

Residential real estate

  353,442   328,854 

Commercial and industrial

  229,034   221,508 

Home equity lines of credit

  143,379   127,818 

Construction and other

  103,608   125,105 

Consumer installment

  6,564   7,214 

Total loans

  1,519,614   1,478,130 

Less: Allowance for credit losses

  (22,447)  (21,693)

Net loans

 $1,497,167  $1,456,437 

 

(1)

Accrued interest of $5.5 million and $5.5 million at December 31, 2024 and December 31, 2023, respectively, is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheets.

(2)

Unearned income, including net deferred loan fees and costs and unamortized premiums and discounts, totaled $8.2 million and $9.2 million at December 31, 2024 and 2023, respectively.

 

Allowance for Credit Losses: Loans

 

On January 1, 2023, the Company adopted ASU 2016-13. This methodology for calculating the allowance for credit losses considers the possibility of expected loss over the life of the loan. It also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL estimate under the current expected loss model, the Company segments the loan portfolio into loan pools based on loan type and similar credit risk elements. An ACL is maintained to absorb losses from the loan portfolio. The ACL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of nonperforming loans.

 

Management reviews the loan portfolio quarterly using a defined, consistently applied process to make appropriate and timely adjustments to the ACL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ACL.

 

The following tables summarize the ACL within the primary segments of the loan portfolio and the activity within those segments (in thousands):

 

  

For the Twelve Months Ended December 31, 2024

 
  

Allowance for Credit Losses

 
  

Balance

              

Balance

 
  

December 31, 2023

  

Charge-offs

  

Recoveries

  

Provision

  

December 31, 2024

 

Loans:

                    

Commercial real estate:

                    

Owner occupied

 $2,668  $(45) $11  $(534) $2,100 

Non-owner occupied

  4,480   (1,341)  -   5,225   8,364 

Multifamily

  1,796   -   -   (486)  1,310 

Residential real estate

  5,450   -   -   (214)  5,236 

Commercial and industrial

  4,377   (215)  55   (1,790)  2,427 

Home equity lines of credit

  750   (7)  1   153   897 

Construction and other

  1,990   -   -   62   2,052 

Consumer installment

  182   (38)  143   (226)  61 

Total

 $21,693  $(1,646) $210  $2,190  $22,447 

   

  

For the Twelve Months Ended December 31, 2023

 
  

Allowance for Credit Losses

 
  

Balance

  

CECL

              

Balance

 
  

December 31, 2022

  

Adoption

  

Charge-offs

  

Recoveries

  

Provision

  

December 31, 2023

 

Loans:

                        

Commercial real estate:

                        

Owner occupied

 $2,203  $811  $(46) $5  $(305) $2,668 

Non-owner occupied

  5,597   (1,206)  -   -   89   4,480 

Multifamily

  662   591   -   -   543   1,796 

Residential real estate

  2,047   2,744   (108)  13   754   5,450 

Commercial and industrial

  1,483   2,320   (85)  38   621   4,377 

Home equity lines of credit

  1,753   (1,031)  -   70   (42)  750 

Construction and other

  609   956   -   -   425   1,990 

Consumer installment

  84   197   (63)  207   (243)  182 

Total

 $14,438  $5,382  $(302) $333  $1,842  $21,693 

 

The total ACL increased by $754,000, or 3.5%, from December 31, 2023 to December 31, 2024. The increase was driven by portfolio activity and the economic outlook, which was partially driven by a change in data inputs. For 2024, the Bank utilized unemployment rate data from Federal Open Market Committee ("FOMC") within the model to forecast credit losses in the portfolio, while Moody’s September 2023 consensus information, which takes into account the national housing price index and national unemployment rates, was used forecast credit losses during 2023. The change was due, in part, to the change from using state specific economic data as inputs in the 2023 assessments to using national economic data inputs in the 2024 assessments. It was determined that national data inputs are more representative of the Bank’s loan portfolio, including historical loss rates. The noted changes to data sources in 2024 within the model and in the application of qualitative adjustments resulted in an increase or decrease to loss rates when applied to each pool. To the extent that credit risk is not fully identified within the forecasts, management has made qualitative adjustments to the ACL balance. Refer to Note 1 – Summary of Significant Accounting Policies for additional information on the Bank’s methodology for estimating the ACL.

 

The fluctuation in the ACL during the year ended December 31, 2024, can also be attributed to the following:

 increase in ACL for non-owner occupied CRE loans is due to increases in outstanding balances and an increase in loss rates utilized in 2024.
 decrease in ACL for owner occupied CRE loans is due to a decrease in outstanding balances.
 decrease in ACL for multifamily loans is due to a decrease in loss rates utilized in 2024.
 decrease in ACL for commercial and industrial loans is due to a decrease in loss rates utilized in 2024.

 

The provision fluctuations during the year ended December 31, 2023, can be attributed to:

 increase in ACL for residential, commercial and industrial, and construction loans are due to increases in outstanding balances.
 decrease in ACL for owner occupied CRE loans and home equity lines of credit are due to a decrease in outstanding balances.

 

Credit Quality Indicators

 

Management evaluates individual loans in all of the commercial segments for possible impairment based on guidelines established by the Board of Directors. Loans are individually analyzed when, based on current information and events, the Company will probably be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating credit loss include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. 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 concerning the principal and interest owed. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made quarterly. 

 

Management uses a nine-point internal risk-rating system to monitor the credit quality of the overall loan portfolio. The first five categories are considered not criticized and are aggregated as Pass rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but have potential weaknesses, resulting in undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. A loan categorized as Doubtful contains all of the weaknesses as a Substandard loan with the added characteristic that the weaknesses are so pronounced that the collection or liquidation in full of both principal and interest is highly questionable or improbable. Any portion of a loan that has been charged off is placed in the Loss category.

 

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as payment delinquency, bankruptcy, repossession, or death, occurs to raise awareness of a possible credit quality loss. The Company’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. The Credit Department performs an annual review of all commercial relationships with loan balances of $750,000 or greater. Detailed reviews, including plans for resolution, are performed on criticized loans of $150,000 or more on at least a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance.

 

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due.

 

The following table represents outstanding loan balances by credit quality indicators and vintage year by class of financing receivable and current period gross charge-offs by year of origination as of December 31, 2024:

 

December 31, 2024

 

Term Loans Amortized Cost Basis by Origination Year

  

Revolving Amortized

     

(Dollar amounts in thousands)

 

2024

  

2023

  

2022

  

2021

  

2020

  

Prior

  

Cost Basis

  

Total

 

Commercial real estate:

                                

Owner occupied

                                

Pass

 $12,424  $20,265  $33,389  $39,025  $25,532  $39,393  $4,394  $174,422 

Special Mention

  -   -   -   389   -   772   -   1,161 

Substandard

  974   -   4,535   -   -   355   -   5,864 

Total Owner occupied

 $13,398  $20,265  $37,924  $39,414  $25,532  $40,520  $4,394  $181,447 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $45  $-  $45 

Non-owner occupied

                                

Pass

 $7,542  $63,559  $96,624  $49,009  $20,230  $133,530  $905  $371,399 

Special Mention

  -   -   2,506   -   -   2,002   -   4,508 

Substandard

  -   -   3,719   635   -   32,030   -   36,384 

Total Non-owner occupied

 $7,542  $63,559  $102,849  $49,644  $20,230  $167,562  $905  $412,291 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $1,341  $-  $1,341 

Multifamily

                                

Pass

 $2,930  $36,113  $21,978  $7,437  $10,057  $11,324  $10  $89,849 

Total Multifamily

 $2,930  $36,113  $21,978  $7,437  $10,057  $11,324  $10  $89,849 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Residential real estate

                                

Pass

 $45,347  $50,820  $61,963  $69,982  $36,067  $86,492  $291  $350,962 

Substandard

  34   169   115   635   -   1,527   -   2,480 

Total Residential real estate

 $45,381  $50,989  $62,078  $70,617  $36,067  $88,019  $291  $353,442 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Commercial and industrial

                                

Pass

 $48,654  $33,860  $31,305  $13,512  $18,864  $4,888  $74,169  $225,252 

Special Mention

  2,263   -   -   -   -   -   832   3,095 

Substandard

  214   10   -   -   305   84   74   687 

Total Commercial and industrial

 $51,131  $33,870  $31,305  $13,512  $19,169  $4,972  $75,075  $229,034 

Current-period gross charge-offs

 $-  $180  $23  $12  $-  $-  $-  $215 

Home equity lines of credit

                                

Pass

 $244  $-  $166  $183  $133  $2,041  $139,214  $141,981 

Substandard

  -   68   150   -   34   493   653   1,398 

Total Home equity lines of credit

 $244  $68  $316  $183  $167  $2,534  $139,867  $143,379 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $7  $-  $7 

Construction and other

                                

Pass

 $31,361  $48,177  $2,418  $1,223  $506  $1,368  $14,909  $99,962 

Special Mention

  -   -   834   -   -   221   -   1,055 

Substandard

  -   493   -   -   -   1,171   927   2,591 

Total Construction and other

 $31,361  $48,670  $3,252  $1,223  $506  $2,760  $15,836  $103,608 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Consumer installment

                                

Pass

 $1,539  $1,047  $381  $112  $36  $3,284  $-  $6,399 

Substandard

  -   -   3   -   -   162   -   165 

Total Consumer installment

 $1,539  $1,047  $384  $112  $36  $3,446  $-  $6,564 

Current-period gross charge-offs

 $-  $-  $2  $6  $-  $30  $-  $38 

Total Loans

 $153,526  $254,581  $260,086  $182,142  $111,764  $321,137  $236,378  $1,519,614 
                                 

Total Loans Summary

                                

Pass

 $150,041  $253,841  $248,224  $180,483  $111,425  $282,320  $233,892  $1,460,226 

Special Mention

  2,263   -   3,340   389   -   2,995   832   9,819 

Substandard

  1,222   740   8,522   1,270   339   35,822   1,654   49,569 

Total Loans

 $153,526  $254,581  $260,086  $182,142  $111,764  $321,137  $236,378  $1,519,614 

 

The following table represents outstanding loan balances by credit quality indicators and vintage year by class of financing receivable and current period gross charge-offs by year of origination as of December 31, 2023:

 

December 31, 2023

 

Term Loans Amortized Cost Basis by Origination Year

  

Revolving Amortized

     

(Dollar amounts in thousands)

 

2023

  

2022

  

2021

  

2020

  

2019

  

Prior

  

Cost Basis

  

Total

 

Commercial real estate:

                                

Owner occupied

                                

Pass

 $14,634  $34,850  $41,609  $25,040  $12,304  $41,976  $2,662  $173,075 

Special Mention

  -   2,271   -   -   13   799   -   3,083 

Substandard

  -   2,356   -   1,559   146   3,326   -   7,387 

Total Owner occupied

 $14,634  $39,477  $41,609  $26,599  $12,463  $46,101  $2,662  $183,545 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $46  $-  $46 

Non-owner occupied

                                

Pass

 $43,393  $95,098  $40,959  $22,707  $32,405  $127,469  $504  $362,535 

Special Mention

  -   2,508   -   -   -   2,197   -   4,705 

Substandard

  -   -   -   -   5,237   24,569   -   29,806 

Doubtful

  -   -   647   -   3,887   -   -   4,534 

Total Non-owner occupied

 $43,393  $97,606  $41,606  $22,707  $41,529  $154,235  $504  $401,580 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Multifamily

                                

Pass

 $29,218  $25,776  $4,267  $10,453  $1,391  $11,231  $104  $82,440 

Substandard

  -   -   -   -   -   66   -   66 

Total Multifamily

 $29,218  $25,776  $4,267  $10,453  $1,391  $11,297  $104  $82,506 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Residential real estate

                                

Pass

 $50,086  $56,180  $78,909  $39,476  $19,418  $82,441  $672  $327,182 

Substandard

  -   127   210   -   24   1,311   -   1,672 

Total Residential real estate

 $50,086  $56,307  $79,119  $39,476  $19,442  $83,752  $672  $328,854 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $108  $-  $108 

Commercial and industrial

                                

Pass

 $46,918  $43,494  $17,909  $25,143  $2,741  $6,533  $66,842  $209,580 

Special Mention

  -   -   -   -   -   -   184   184 

Substandard

  13   15   -   353   124   876   10,367   11,748 

Loss

  -   -   -   -   -   (4)  -   (4)

Total Commercial and industrial

 $46,931  $43,509  $17,909  $25,496  $2,865  $7,405  $77,393  $221,508 

Current-period gross charge-offs

 $-  $-  $75  $-  $6  $4  $-  $85 

Home equity lines of credit

                                

Pass

 $-  $126  $-  $16  $63  $2,097  $124,001  $126,303 

Substandard

  -   105   -   36   29   583   762   1,515 

Total Home equity lines of credit

 $-  $231  $-  $52  $92  $2,680  $124,763  $127,818 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Construction and other

                                

Pass

 $55,528  $23,059  $20,246  $1,777  $5,609  $851  $9,152  $116,222 

Special Mention

  -   3,573   2,371   -   265   -   -   6,209 

Substandard

  -   -   420   -   1,770   -   484   2,674 

Total Construction and other

 $55,528  $26,632  $23,037  $1,777  $7,644  $851  $9,636  $125,105 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Consumer installment

                                

Pass

 $1,810  $1,088  $324  $89  $74  $3,669  $-  $7,054 

Substandard

  -   7   -   -   -   153   -   160 

Total Consumer installment

 $1,810  $1,095  $324  $89  $74  $3,822  $-  $7,214 

Current-period gross charge-offs

 $-  $25  $-  $-  $-  $38  $-  $63 

Total Loans

 $241,600  $290,633  $207,871  $126,649  $85,500  $310,143  $215,734  $1,478,130 
                                 

Total Loans Summary

                                

Pass

 $241,587  $279,671  $204,223  $124,701  $74,005  $276,267  $203,937  $1,404,391 

Special Mention

  -   8,352   2,371   -   278   2,996   184   14,181 

Substandard

  13   2,610   630   1,948   7,330   30,884   11,613   55,028 

Doubtful

  -   -   647   -   3,887   -   -   4,534 

Loss

  -   -   -   -   -   (4)  -   (4)

Total Loans

 $241,600  $290,633  $207,871  $126,649  $85,500  $310,143  $215,734  $1,478,130 

 

Collateral-dependent Loans

 

The following table presents individually analyzed and collateral-dependent loans by classes of loan type as of  December 31, 2024:

 

  

December 31, 2024

 
  

Type of Collateral

 

(Dollar amounts in thousands)

 

Real Estate

  

Blanket Lien

  

Investment/Cash

  

Other

  

Total

 

Commercial real estate:

                    

Owner occupied

 $3,198  $-  $-  $-  $3,198 

Non-owner occupied

  24,881   -   -   -   24,881 

Residential real estate

  617   -   -   -   617 

Commercial and industrial

  214   -   -   -   214 

Construction and other

  493   -   -   -   493 

Total

 $29,403  $-  $-  $-  $29,403 

 

The following table presents individually analyzed and collateral-dependent loans by classes of loan type as of  December 31, 2023:

 

  

December 31, 2023

 
  

Type of Collateral

 

(Dollar amounts in thousands)

 

Real Estate

  

Blanket Lien

  

Investment/Cash

  

Other

  

Total

 

Commercial real estate:

                    

Non-owner occupied

 $8,150  $-  $-  $-  $8,150 

Total

 $8,150  $-  $-  $-  $8,150 

 

Nonperforming and Past Due Loans 

 

The following table present the aging of the recorded investment in past-due loans by class of loans (in thousands) as of  December 31, 2024:

 

      

30-59 Days

  

60-89 Days

  

90 Days+

  

Total

  

Total

 

December 31, 2024

 

Current

  

Past Due

  

Past Due

  

Past Due

  

Past Due

  

Loans

 
                         

Commercial real estate:

                        

Owner occupied

 $180,752  $513  $122  $60  $695  $181,447 

Non-owner occupied

  402,942   1,355   -   8,012   9,367   412,291 

Multifamily

  89,756   93   -   -   93   89,849 

Residential real estate

  349,645   2,216   562   1,019   3,797   353,442 

Commercial and industrial

  226,669   81   2,284   -   2,365   229,034 

Home equity lines of credit

  142,484   366   102   427   895   143,379 

Construction and other

  103,115   -   -   493   493   103,608 

Consumer installment

  6,479   41   44   -   85   6,564 

Total

 $1,501,824  $4,665  $3,114  $10,011  $17,790  $1,519,614 

 

The following table present the aging of the recorded investment in past-due loans by class of loans (in thousands) as of  December 31, 2023:

 

      

30-59 Days

  

60-89 Days

  

90 Days+

  

Total

  

Total

 

December 31, 2023

 

Current

  

Past Due

  

Past Due

  

Past Due

  

Past Due

  

Loans

 
                         

Commercial real estate:

                        

Owner occupied

 $183,242  $197  $-  $106  $303  $183,545 

Non-owner occupied

  397,964   3,616   -   -   3,616   401,580 

Multifamily

  82,440   -   -   66   66   82,506 

Residential real estate

  326,224   1,366   1,010   254   2,630   328,854 

Commercial and industrial

  221,304   -   146   58   204   221,508 

Home equity lines of credit

  126,894   447   180   297   924   127,818 

Construction and other

  125,040   65   -   -   65   125,105 

Consumer installment

  7,138   69   -   7   76   7,214 

Total

 $1,470,246  $5,760  $1,336  $788  $7,884  $1,478,130 

 

The following tables present the recorded investment in nonaccrual loans and loans 90 and greater days past due and still on accrual by class of loans:

 

  

December 31, 2024

 
  

Nonaccrual

  

Nonaccrual

      

Loans Past

     

(Dollar amounts in thousands)

 

with no

  

with

  

Total

  

Due Over 90 Days

  

Total

 
  

ACL

  

ACL

  

Nonaccrual

  

Still Accruing

  

Nonperforming

 

Commercial real estate:

                    

Owner occupied

 $974  $301  $1,275  $-  $1,275 

Non-owner occupied

  21,265   3,616   24,881   -   24,881 

Residential real estate

  617   1,377   1,994   -   1,994 

Commercial and industrial

  -   159   159   -   159 

Home equity lines of credit

  -   1,017   1,017   -   1,017 

Construction and other

  -   493   493   -   493 

Consumer installment

  162   3   165   -   165 

Total

 $23,018  $6,966  $29,984  $-  $29,984 

 

 

  

December 31, 2023

 
  

Nonaccrual

  

Nonaccrual

      

Loans Past

     

(Dollar amounts in thousands)

 

with no

  

with

  

Total

  

Due Over 90 Days

  

Total

 
  

ACL

  

ACL

  

Nonaccrual

  

Still Accruing

  

Nonperforming

 

Commercial real estate:

                    

Owner occupied

 $-  $252  $252  $-  $252 

Non-owner occupied

  4,534   3,616   8,150   -   8,150 

Multifamily

  -   66   66   -   66 

Residential real estate

  -   1,170   1,170   -   1,170 

Commercial and industrial

  -   223   223   -   223 

Home equity lines of credit

  -   856   856   -   856 

Construction and other

  -   -   -   -   - 

Consumer installment

  153   7   160   -   160 

Total

 $4,687  $6,190  $10,877  $-  $10,877 

 

Interest income that would have been recorded had these loans not been placed on nonaccrual status was $2.3 million and $689,000 for the years ended December 31, 2024 and 2023, respectively.

 

Modifications to Borrowers Experiencing Financial Difficulty

 

Effective January 1, 2023, the Company implemented ASU 2022-02, which eliminated the recognition and measure of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. The Bank may modify the contractual terms of a loan to a borrower experiencing financial difficulty to mitigate the risk of loss. Such modifications may include a term extension, interest rate reduction, significant payment deferral, other modifications, or a combination of modification types. In general, any delay in payment of greater than 90 days in the last 12 months is considered to be a significant payment deferral.

 

The table below details the amortized cost basis of the loans modified to borrowings experiencing financial difficulty, disaggregated by class of loans and type of concessions granted, and the financial effect of the modifications:

 

 

  

December 31, 2024

 
  

Modifications

 
          

Payment

  

Interest Rate

  

Interest Rate

      

Percentage of

 
          

Deferral

  

Reduction

  

Reduction

      

Total Loans

 
  

Payment

  

Term

  

and Term

  

and Term

  

and Principal

      

Held for

 
  

Deferral

  

Extension

  

Extension

  

Past Due

  

Forgiveness

  

Total

  

Investment

 
                             

Commercial real estate:

                            

Non-owner occupied

 $-  $8,414  $13,151  $-  $-  $21,565   1.4%

Multifamily

  -   707   -   -   -   707   4.7%

Total

 $-  $9,121  $13,151  $-  $-  $22,272   1.5%

 

  

December 31, 2023

 
  

Modifications

 
          

Payment

  

Interest Rate

  

Interest Rate

      

Percentage of

 
          

Deferral

  

Reduction

  

Reduction

      

Total Loans

 
  

Payment

  

Term

  

and Term

  

and Term

  

and Principal

      

Held for

 
  

Deferral

  

Extension

  

Extension

  

Past Due

  

Forgiveness

  

Total

  

Investment

 
                             

Commercial real estate:

                            

Non-owner occupied

 $-  $145  $2,507  $-  $-  $2,652   0.2%

Residential real estate

  -   19,074   -   -   -   19,074   1.4%

Commercial and industrial

  -   83   -   -   -   83   0.0%

Consumer installment

  -   8   -   -   -   8   0.0%

Total

 $-  $19,310  $2,507  $-  $-  $21,817   1.6%

 

As of December 31, 2024, the Bank had no commitments to lend additional funds on modified loans. As of December 31, 2024 and 2023, the Bank did not have any loans that were modified for borrowers experiencing financial difficulty and subsequently defaulted. Payment default is defined as movement to nonperforming status, foreclosure or charge-off, whichever occurs first.

 

Allowance for Credit Losses: Unfunded Commitments

 

Upon adoption of ASU 2016-13 on January 1, 2023, the Company recorded a separate ACL for unfunded commitments using a methodology that is inherently similar to the methodology used for calculating the ACL for loans. The liability for credit losses on these exposures is $1.6 million and $1.8 million as of December 31, 2024 and 2023, respectively, and included in “accrued interest payable and other liabilities” on the Consolidated Balance Sheet. The provision for credit loss associated with the liability for unfunded commitments amounted to a recovery of credit losses of $182,000 for the year ended December 31, 2024, and a provision for credit losses of $1.8 million for the year ended December 31, 2023.

 

v3.25.0.1
Note 8 - Premises and Equipment
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]

8.

PREMISES AND EQUIPMENT

 

Major classifications of premises and equipment at December 31 are as follows:

 

(Dollar amounts in thousands)

 

2024

  

2023

 
         

Land and land improvements

 $4,896  $4,896 

Building and leasehold improvements

  21,190   21,014 

Furniture, fixtures, and equipment

  10,564   10,104 

Financing right-of-use assets

  4,990   4,990 

Construction in process

  139   - 

Total premises and equipment

  41,779   41,004 

Less accumulated depreciation and amortization

  21,214   19,665 
         

Total premises and equipment, net

 $20,565  $21,339 

 

Depreciation and amortization expense charged to operations was $1.6 million in 2024 and $1.7 million in 2023.  The expense includes amortization of financing right-of-use assets.

 

v3.25.0.1
Note 9 - Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

9.

GOODWILL AND INTANGIBLE ASSETS

 

Goodwill

 

Our annual goodwill impairment testing is performed as of October 1 each year, or more frequently as events occur or circumstances change that would more likely than not reduce the fair value of the Company below its carrying amount. The Company conducted a qualitative test as of October 1, 2024 through the evaluation of numerous factors such as economic trends, market and industry considerations, financial performance, and internal events.

 

(Dollar amount in thousands)

    

Balance at December 31, 2022

 $31,735 

Measurement period adjustment

  4,621 

Balance at December 31, 2023

  36,356 

Balance at December 31, 2024

 $36,356 

 

Core Deposit Intangible

 

The carrying amount of the core deposit intangible was $5.6 million and $6.6 million for the years ended  December 31, 2024, and 2023, respectively. Core deposit accumulated amortization was $4.2 million and $3.2 million for the years ended December 31, 2024, and 2023. Amortization expense totaled $1.0 million and $1.1 million in 2024 and 2023, respectively. Core deposit intangible assets are amortized to their estimated residual values over their expected useful lives, commonly ten years. The estimated aggregate future amortization expense for core deposit intangible assets as of December 31, 2024, is as follows:

 

(Dollar amounts in thousands)

     

Remaining

2025

 $998 
 

2026

  968 
 

2027

  691 
 

2028

  665 
 

2029

  582 
 

Thereafter

  1,707 
 

Total

 $5,611 

 

Mortgage Servicing Rights

 

We originate and periodically sell residential mortgage loans but continue to service those loans for the buyers. We record a servicing asset if we retain the right to service loans in exchange for servicing fees that exceed the going market servicing rate and are considered more than adequate compensation for servicing. Activity for mortgage servicing rights follows:

 

(Dollar amounts in thousands)

 

2024

  

2023

 
         

Beginning of year

 $1,636  $2,072 

Servicing retained from loan sales

  58   60 

Amortization

  (197)  (496)
         

End of year

 $1,497  $1,636 

 

v3.25.0.1
Note 10 - Deposits
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Deposit Liabilities Disclosures [Text Block]

10.

DEPOSITS

 

Time deposits that meet or exceed the FDIC Insurance limit of $250,000 as of December 31, 2024, and 2023 were $56.6 million and $117.6 million, respectively.

 

Scheduled maturities of all time deposits as of December 31, 2024, are as follows:

 

(Dollar amounts in thousands)

    

2025

 $208,881 

2026

  7,877 

2027

  28,055 

2028

  1,883 

2029

  1,008 

Total

 $247,704 

   

v3.25.0.1
Note 11 - Short-term Borrowings
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Short-Term Debt [Text Block]

11.

SHORT-TERM BORROWINGS

 

For the years ended December 31, 2024 and 2023, short-term borrowings consisted of Federal Home Loan advances. Outstanding balances and related information on short-term borrowings are summarized as follows:

 

 

 

2024

  

2023

 
(Dollar amounts in thousands)        

Balance at year-end

 $172,400  $163,000 

Average balance outstanding

 $122,506  $101,088 

Maximum month-end balance

 $172,400  $163,000 

Weighted-average rate at year-end

  4.42%  5.47%

Weighted-average rate during the year

  5.40%  5.33%

 

Average balances outstanding during the year represent daily average balances, and average interest rates represent interest expense divided by the related average balance.

 

The Company maintains a $6.0 million line of credit and a $10.0 million line of credit with other financial institutions. Both lines of credit have an adjustable rate based on the time of borrowings. On December 31, 2024, and 2023, there were no outstanding borrowings under these lines of credit. The additional borrowing capacity on FHLB advances was $381.7 million and $430.1 million on December 31, 2024, and 2023, respectively.

 

Under the terms of a blanket agreement, FHLB borrowings are secured by certain qualifying assets of the Company, which consist principally of first mortgage loans or mortgage-backed securities.

 

v3.25.0.1
Note 12 - Other Borrowings
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Other Borrowings [Text Block]

12.

OTHER BORROWINGS

 

Other borrowings for the years ended December 31, consist of the following:

 

(Dollar amounts in thousands)

        

Description

 

2024

  

2023

 

Finance lease liabilities

 $3,412  $3,614 

Junior subordinated debt

  8,248   8,248 
         

Total

 $11,660  $11,862 

 

The Company formed a special purpose entity (“Entity”) to issue $8.0 million of floating rate, obligated mandatorily redeemable securities, and $248,000 in common securities as part of a pooled offering. The rate adjusts quarterly, equal to SOFR plus 1.67%. The debt had a weighted-average interest rate of 7.23% at December 31, 2024, and 7.16% at December 31, 2023. The Entity may redeem them at face value in whole or in part. The Company borrowed the issuance proceeds from the Entity in December 2006 in the form of an $8.2 million note payable, which matures in December 2037.  There are no principal payments scheduled within the next five years.

 

The Bank has a $25.0 million irrevocable Standby Letter of Credit Agreement with the FHLB outstanding at December 31, 2024. This letter of credit is issued to secure municipal deposit accounts as required by law. The amount of funds available from the FHLB to the Bank is reduced by any letters of credit outstanding.

 

See Note 15, Commitments and Contingent Liabilities, for additional information on the Company's finance lease liabilities.

 

v3.25.0.1
Note 13 - Income Taxes
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

13.

INCOME TAXES

 

The provision for federal income taxes for the years ended December 31 consists of:

 

(Dollar amounts in thousands)

 

2024

  

2023

 
         

Current payable

 $2,627  $4,092 

Deferred

  198   (705)
         

Total provision

 $2,825  $3,387 

 

The tax effects of deductible and taxable temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows at December 31:

 

(Dollar amounts in thousands)

 

2024

  

2023

 
         

Deferred tax assets:

        

Allowance for credit losses

 $4,714  $4,469 

Supplemental retirement plan

  839   959 

Investment security basis adjustment

  18   18 

Nonaccrual interest income

  533   387 

Accrued compensation

  443   494 

Deferred origination fees, net

  -   878 

Net unrealized loss on AFS securities

  5,336   4,277 

Lease liability

  802   111 

Acquisition fair value adjustments

  64   77 

Other

  394   374 

Gross deferred tax assets

  13,143   12,044 
         

Deferred tax liabilities:

        

Premises and equipment

  1,041   961 

Deferred origination fees, net

  268   - 

Net unrealized gain on equity securities

  19   27 

FHLB stock dividends

  64   115 

Intangibles

  478   478 

Mortgage servicing rights

  314   344 

Right of use assets

  758   843 

Other

  103   39 

Gross deferred tax liabilities

  3,045   2,807 
         

Net deferred tax assets

 $10,098  $9,237 

 

No valuation allowance was established on December 31, 2024, and 2023, in view of the Company’s tax strategies, coupled with the anticipated future taxable income as evidenced by the Company’s earnings potential.

 

The reconciliation between the federal statutory rate and the Company’s effective consolidated income tax rate for the years ended December 31, is as follows:

 

 

 

2024

  

2023

 
      

% of

      

% of

 
      

Pretax

      

Pretax

 
(Dollar amounts in thousands) 

Amount

  

Income

  

Amount

  

Income

 
                 
                 

Provision at statutory rate

 $3,852   21.0% $4,358   21.0%

Tax-exempt income

  (1,088)  (5.9)%  (1,044)  (5.0)%

Nondeductible interest expense

  42   0.2%  22   0.1%

Other

  19   0.1%  51   0.1%

Actual tax expense and effective rate

 $2,825   15.4% $3,387   16.2%

 

ASC 740-10 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met.

 

At December 31, 2024 and 2023, the Company had no ASC 740-10 unrecognized tax benefits. The Company does not expect the total amount of unrecognized tax benefits to significantly increase within the next 12 months. The Company recognizes interest and penalties on unrecognized tax benefits as a component of other expense.

 

The Company and the Bank are subject to U.S. federal income tax as well as an income tax in the state of Florida, and the Bank is subject to a capital-based franchise tax in the state of Ohio. The Company and the Bank are no longer subject to examination by taxing authorities for years before December 31, 2021.

 

v3.25.0.1
Note 14 - Employee Benefits
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Compensation and Employee Benefit Plans [Text Block]

14. EMPLOYEE BENEFITS

 

Employee Retirement Plan

 

The Bank maintains section 401(k) employee savings and investment plan for all full-time employees and officers of the Bank who are at least 21 years of age. The Bank’s contributions to the plan are based on 66% matching of voluntary contributions up to 6% of compensation for the years ended December 31, 2024, and 2023. The plan also permits the Bank to make a discretionary annual profit-sharing contribution to eligible employees. Employee contributions are vested at all times, and MBC contributions are fully vested after six years beginning at the second year in 20% increments. Matching contributions for 2024 and 2023 amounted to $520,000 and $641,000, respectively. The Bank did not make any profit-sharing contributions during 2024 or 2023. Effective January 1, 2025, the plan was revised to adjust the vesting schedule whereby MBC contributions will be fully vested after five years beginning at the first year in 20% increments. 

 

Executive Deferred Compensation Plans

 

The Company maintains executive deferred compensation plans to provide post-retirement payments to members of senior management. The plan agreements are noncontributory, defined contribution arrangements that provide supplemental retirement income benefits to several officers, with contributions made solely by the Bank. Accrued executive deferred compensation amounted to $3.5 million and $3.8 million as of December 31, 2024, and 2023, respectively. During 2024, the Company recognized a net reduction in nonqualified deferred compensation expense resulting in a benefit of $91,000. The decrease in expense reflects the number of participants in the payout phase exceeding currently eligible participants. During 2023, the Company recognized nonqualified deferred compensation expense of $437,000 to the plans.

 

Stock Option and Restricted Stock Plan

 

In 2017, the Company adopted the 2017 Omnibus Equity Plan (the “2017 Plan”) for granting incentive stock options, nonqualified stock options, restricted stock, and other equity awards to key officers and employees and nonemployee directors of the Company. A total of 448,000 shares of common stock were reserved for issuance under the 2017 Plan, which expires ten years from the date of board approval of the plan. The per-share exercise price of an option granted will not be less than the fair value of a share of common stock on the date the option is granted. The remaining available shares that can be issued under the 2017 Plan were 352,063 as of  December 31, 2024.

 

There was no stock option activity during the years ended December 31, 2024, or 2023

 

During 2024 and 2023, the Compensation Committee of the Company's Board of Directors granted awards of restricted stock for an aggregate amount of 70,538 and 36,173 shares, respectively, to certain employees of the Bank. The number of restricted stock shares earned or settled will depend on specific conditions and are also subject to service period-based vesting. The award recipient must maintain service with Middlefield Banc Corp. and its affiliates during the service period defined in the award to satisfy the service condition. 

 

Awards of restricted stock are granted annually in a variety of forms:

 

 

Time-lapsed restricted stock units payable in stock or cash at the option of the employee, which generally vest at the end of the three-year vesting period

 

Time-lapsed restricted stock units payable in stock, which vest at the end of the three-year performance cycle

 

Performance units payable in stock, which vest at the end of the three-year performance cycle and will not vest unless the Company attains defined performance levels (external market and internal performance conditions) and the service condition is met

 

The following table presents the activity during 2024 related to awards of restricted stock:

 

  

Vesting contingent on service conditions - payable in stock or cash

  

Vesting contingent on service conditions - payable in stock

  

Vesting contingent on performance and service conditions - payable in stock

 
  

Number of nonvested shares

  

Weighted-average grant-date fair value

  

Number of nonvested shares

  

Weighted-average grant-date fair value

  

Number of nonvested shares

  

Weighted-average grant-date fair value

 
                         

Nonvested at January 1, 2024

  78,573  $25.95   -  $-   -  $- 

Granted

  -   -   26,417   24.02   44,121   22.35 

Vested

  (19,745)  23.62   -   -   -   - 

Forfeited

  (24,829)  20.07   -   -   -   - 

Nonvested at December 31, 2024

  33,999  $26.93   26,417  $24.02   44,121  $22.35 

 

The gross compensation expense recognized for all outstanding awards was $714,000 and $391,000 for the years ended 2024 and 2023, respectively. The income tax benefit recognized in the income statement for these plans was $150,000 and $82,000 for the years ended 2024 and 2023, respectively. The liability for the restricted stock units payable in stock or cash was $462,000 and $758,000 for the years ended December 31, 2024, and December 31, 2023, respectively, and included in "accrued interest payable and other liabilities" on the Consolidated Balance Sheet.

 

During 2024, 19,745 time-lapsed restricted stock units payable in stock or cash vested.  The total fair value of these units that vested in stock and cash during 2024 totaled $311,000 and $213,000, respectively.  During 2023, 10,713 time-lapsed restricted stock units payable in stock or cash vested. The total fair value of these units that vested in stock and cash during 2024 totaled $195,000 and $114,000, respectively. 

 

The compensation cost of time-lapsed restricted stock awards is calculated using the closing trading price of our common stock on the grant date.  The compensation cost of performance units is calculated using a Monte Carlo simulation to reflect the market condition in the fair value of the award.  The assumptions used are noted in the following table.  Expected volatilities are based on historical volatilities for the Company and members of a defined peer group.  The expected term is derived from the time remaining in the respective awards’ performance period.  The risk-free rate for periods within the remaining performance period is based on the semi-annual zero-coupon US Treasury rates as of the grant date.

 

  

2024

 

Expected volatility

  21.31% - 60.78%

Average volatility

  32.73%

Expected dividends

  0%

Expected term (in years)

  2.40 

Risk-free rate

  3.86%

 

The weighted-average grant-date fair value of awards granted was $22.98 during 2024 and $27.57 during 2023.  As of December 31, 2024, unrecognized compensation cost related to nonvested shares totaled $1.8 million. This cost is expected to be recognized over a weighted-average period of 2.1 years.

 

The Company compensates the Board of Directors through a combination of stock and cash.  During 2024, the Company paid out 6,768 of shares totaling $187,000.  The Company paid out 7,475 shares totaling $203,000 during 2023. The expense associated with the stock payments to the Board of Directors is included in "other expense" in the Consolidated Income Statement.

 

v3.25.0.1
Note 15 - Commitments and Contingent Liabilities
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

15.

COMMITMENTS AND CONTINGENT LIABILITIES

 

In the ordinary course of business, various outstanding commitments and certain contingent liabilities are not reflected in the accompanying consolidated financial statements. These commitments and contingent liabilities represent financial instruments with off-balance-sheet risk. The contract or notional amounts of those instruments reflect the extent of involvement in particular types of financial instruments.

 

Commitments to Extend Credit which were composed of the following:

 

(Dollar amounts in thousands)

 

December 31, 2024

  

December 31, 2023

 
         

Commitments to extend credit

 $468,006  $418,952 

Standby letters of credit

  798   5,884 
         

Total

 $468,804  $424,836 

 

The commitments to extend credit involve, to varying degrees, elements of credit and interest rate risk over the amount recognized in the Consolidated Balance Sheet. The Company’s exposure to credit loss, in the event of nonperformance by the other parties to the financial instruments, is represented by the contractual amounts as disclosed. The Company minimizes its exposure to credit loss under these commitments by subjecting them to credit approval, review procedures, and collateral requirements as deemed necessary. Loan commitments generally have fixed expiration dates within one year of their origination.

 

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These instruments are issued primarily to support bid or performance-related contracts. The coverage period for these instruments is typically one year, with an annual renewal option subject to prior approval by management. Fees earned from the issuance of these letters are recognized over the coverage period. The collateral is typically bank deposit instruments or customer business assets for secured letters of credit.

 

Commitments to Fund

 

We have an investment in a low-income housing tax credit operating partnership. As a limited partner, we are allocated tax credits and deductions associated with the underlying properties. Our maximum exposure to loss in connection with the partnership consists of the unamortized investment balance plus any unfunded equity commitments and tax credits claimed but subject to recapture. The investment at December 31, 2024 and 2023 was $1.8 million and $2.0 million, respectively, and recorded in the Consolidated Balance Sheet in "accrued interest receivable and other assets". We do not have any loss reserves recorded since we believe the likelihood of loss is remote. The investment is amortized over the period that we expect to receive the tax benefits using the proportional amortization method. In 2024 and 2023, we recognized $127,000 and $35,000 of amortization, respectively. At December 31, 2024 and 2023, we had an unfunded commitment of $1.5 million and $1.7 million, respectively, which is recorded in the Consolidated Balance Sheet in "accrued interest payable and other liabilities".

 

Cannabis Industry

 

We provide deposit services to customers who are licensed by the State of Ohio to do business in (or are related to) the Division of Cannabis Control as growers, processors, and dispensaries. Marijuana businesses are regulated by the Ohio Department of Commerce and legal in the State of Ohio, although it is not legal at the federal level. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) published guidelines in 2014 for financial institutions servicing state-legal cannabis businesses. A financial institution that provides services to cannabis-related businesses can comply with Bank Secrecy Act (“BSA”) disclosure standards by following the FinCEN guidelines. We maintain stringent written policies and procedures related to the acceptance of such businesses and the monitoring and maintenance of such business accounts. We conduct a significant due diligence review of the cannabis business before the business is accepted as a new client, including confirmation that the business is properly licensed by the State of Ohio and state visits. Throughout the relationship, we continue monitoring the business to ensure that the business continues to meet our stringent requirements, including maintenance of required licenses and periodic financial reviews of the business.

 

While we believe we are operating in compliance with the FinCEN guidelines, there can be no assurance that federal enforcement guidelines will not change. Federal prosecutors have significant discretion, and there can be no assurance that the federal prosecutors will not choose to strictly enforce the federal laws governing cannabis. Any change in the Federal government’s enforcement position could cause us to immediately cease providing banking services to the cannabis industry. We are upfront with our customers regarding the fact that we may have to terminate our deposit services relationship if a change occurs with the Federal government’s position, and that the termination may come with little or no notice.

 

Litigation

 

As previously disclosed, a cyber-attack occurred in April 2023 that resulted in a temporary disruption to our computer systems. A cybersecurity firm investigated the nature and scope of the incident, evaluated our systems, and confirmed that nonpublic information relating to current and former employees, customers, and others was obtained from our systems.

 

On January 8, 2024, a customer filed a lawsuit against The Middlefield Banking Company in the U.S. District Court for the Northern District of Ohio related to the cyber-attack incident. A similar lawsuit was filed on January 10, 2024, against The Middlefield Banking Company in the Court of Common Pleas for Cuyahoga County, Ohio. The plaintiffs and class members in the two cases, who are current and former customers of the Bank, claim to have been harmed by alleged actions or inactions by the Bank in connection with the incident. The plaintiffs assert a variety of common law and statutory claims regarding the compromised nonpublic information and seek monetary damages, equitable and injunctive relief, pre-judgment and post-judgment interest, awards of actual and punitive damages, costs and attorneys’ fees, and other related relief. On March 28, 2024, the plaintiff in the case before the U.S. District Court for the Northern District of Ohio voluntarily dismissed their lawsuit against The Middlefield Banking Company without prejudice. The plaintiff in the Cuyahoga County lawsuit filed an amended complaint on August 8, 2024, to add an additional plaintiff. The amendment made no change to the relief sought in the original complaint.

 

On October 31, 2024, the plaintiffs filed with the Court of Common Pleas a motion for preliminary approval of class action settlement, with the Court granting preliminary approval of the class action settlement on November 6, 2024. On February 4, 2025, the plaintiffs submitted a motion for attorneys’ fees for class counsel. The Court of Common Pleas has scheduled a final approval hearing for April 1, 2025, to confirm the preliminary approval of the class action settlement and to determine the requested attorneys’ fee award.

 

Losses attributable to the April 2023 incident are within the coverage limits of the cyber risk insurance policy in place at that time. The policy has an aggregate limit of $3 million and a deductible of $50,000. The policy includes coverage for business loss, breach response, and liabilities that could occur as a result of a cyber event. Although we believe that our insurance policy will fully cover the losses associated with the lawsuit, it is possible that the losses could exceed the policy limit. We expect that any costs associated with the lawsuit, including attorney fees, adverse judgment or settlement, will be billed to and paid by the insurance company in accordance with the terms of the policy.

 

Leasing Commitments

 

The Company leases six of its branch locations. As of December 31, 2024, net assets recorded under leases amounted to $3.6 million and have remaining lease terms of 2 years to 17 years. As of December 31, 2024, finance lease assets included in "premises and equipment, net" on the Consolidated Balance Sheet totaled $3.2 million and $3.5 million as of December 31, 2023, and operating lease assets included in "accrued interest receivable and other assets" on the Consolidated Balance Sheet totaled $400,000 and $560,000 as of December 31, 2024, and 2023, respectively. As of December 31, 2024, finance lease obligations included in "other borrowings" on the Consolidated Balance Sheet totaled $3.4 million, and operating lease obligations included in "accrued interest payable and other liabilities" on the Consolidated Balance Sheet totaled $406,000.

 

Lease costs incurred are as follows for the years ended December 31 (in thousands):

 

  

2024

  

2023

 

Finance lease cost:

        

Amortization of right-of-use asset

 $248  $248 

Interest Expense

  106   112 

Other

  43   47 

Operating lease cost

  218   216 

Total lease cost

 $615  $623 

 

The following table displays the weighted-average term and discount rates for both operating and finance leases outstanding as of December 31, 2024:

 

  

2024

  

2023

 
  

Operating

  

Finance

  

Operating

  

Finance

 

Weighted-average term (years)

  3.6   13.6   4.2   14.6 

Weighted-average discount rate

  2.1%  3.0%  1.9%  3.0%

 

The following table displays the undiscounted cash flows due related to operating and finance leases as of December 31, 2024, along with a reconciliation to the discounted amount recorded on the December 31, 2024 Consolidated Balance Sheet (in thousands):

 

  

Operating

  

Finance

 

Undiscounted cash flows due within:

        

2025

 $169  $314 

2026

  134   320 

2027

  27   320 

2028

  27   320 

2029

  27   320 

2030 and thereafter

  41   2,566 

Total undiscounted cash flows

  425   4,160 
         

Impact of present value discount

  (19)  (748)
         

Total

 $406  $3,412 

 

v3.25.0.1
Note 16 - Regulatory Restrictions
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Banking and Thrift Disclosure [Text Block]

16.

REGULATORY RESTRICTIONS 

 

The Company is subject to the regulatory requirements of the Federal Reserve System as a bank holding company. The bank subsidiary is subject to regulations of the Federal Deposit Insurance Corporation (“FDIC”) and the Ohio Division of Financial Institutions.

 

The Federal Reserve Board and the FDIC have extensive authority to prevent and remedy unsafe and unsound practices and violations of applicable laws and regulations by institutions and holding companies. The agencies may assess civil money penalties, issue cease-and-desist or removal orders, seek injunctions, and publicly disclose those actions. In addition, the Ohio Division of Financial Institutions possesses enforcement powers to address violations of Ohio banking law by Ohio-chartered banks.

 

The Company is subject to the regulatory requirements of the Federal Reserve System as a bank holding company. The Bank is subject to regulations of the FDIC and the State of Ohio, Division of Financial Institutions.

 

Loans

 

Federal law prevents the Company from borrowing from the Bank unless specific obligations secure the loans. Further, such a secured loan is limited to 10% of the Bank’s common stock and capital surplus.

 

Dividends

 

The Bank is subject to dividend restrictions that generally limit the amount of dividends that an Ohio state-chartered bank can pay. Under the Ohio Banking Code, cash dividends may not exceed net profits as defined for that year combined with retained net profits for the two preceding years less any required transfers to surplus. Under this formula, the amount available for payment of dividends at  December 31, 2024, approximates $13.2 million.

 

v3.25.0.1
Note 17 - Regulatory Capital
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Regulatory Capital Requirements under Banking Regulations [Text Block]

17.

REGULATORY CAPITAL 

 

Financial institution regulators have established guidelines for minimum capital ratios for banks and bank holding companies. The net unrealized gain or loss on available for sale securities is generally not included in computing regulatory capital. To avoid limitations on capital distributions, including dividend payments, the Bank and the Company must each hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. Within the tabular presentation that follows is the adequately capitalized ratio plus a 2.50% capital conservation buffer.

 

The Bank and the Company met each of the well-capitalized ratio guidelines as of  December 31, 2024 and 2023. The following table indicates the capital ratios for the Bank and the Company as of  December 31, 2024, and 2023, as well as the capital category threshold ratios for a well-capitalized, adequately capitalized plus the capital conservation buffer institution.

 

  

As of December 31, 2024

 
  

Leverage

  

Tier 1 Risk Based

  

Common Equity Tier 1

  

Total Risk Based

 

The Middlefield Banking Company

  10.70%  11.99%  11.99%  13.24%

Middlefield Banc Corp.

  10.86%  12.28%  11.78%  13.54%

Adequately capitalized ratio

  4.00%  6.00%  4.50%  8.00%

Adequately capitalized ratio plus fully phased-in capital conservation buffer

  4.00%  8.50%  7.00%  10.50%

Well-capitalized ratio (Bank only)

  5.00%  8.00%  6.50%  10.00%

 

  

As of December 31, 2023

 
  

Leverage

  

Tier 1 Risk Based

  

Common Equity Tier 1

  

Total Risk Based

 

The Middlefield Banking Company

  10.48%  11.82%  11.82%  13.08%

Middlefield Banc Corp.

  10.68%  12.18%  11.66%  13.43%

Adequately capitalized ratio

  4.00%  6.00%  4.50%  8.00%

Adequately capitalized ratio plus fully phased-in capital conservation buffer

  4.00%  8.50%  7.00%  10.50%

Well-capitalized ratio (Bank only)

  5.00%  8.00%  6.50%  10.00%

  

v3.25.0.1
Note 18 - Related Party Transaction
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

18.

Related Party Transaction

 

Loans to principal officers, directors, and their affiliates during 2024 and 2023 were as follows:

 

(Dollars in thousands)

 

December 31, 2024

  

December 31, 2023

 

Beginning balance

 $24,185  $2,057 

New loans

  3,362   23,922 

Repayments

  (1,377)  (1,794)

Effect of change in related party status

  (56)  - 

Ending balance

 $26,114  $24,185 

 

Deposits of related parties amount to $32.5 million and $33.1 million as of  December 31, 2024 and 2023, respectively.

 

v3.25.0.1
Note 19 - Segment Reporting
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

19.

SEGMENT REPORTING

 

The Company has one business segment: Bank Segment.  The Bank Segment provides customers with a broad range of banking services, including various deposit and lending products to consumer and commercial customers.  The Company’s chief operating decision maker (CODM) is the Chief Executive Officer.

 

The following table shows selected financial data for the Bank Segment for the years ended December 31, 2024 and 2023.  The accounting policies of the segment are the same as those described in Note 1 – Summary of Significant Accounting Policies. The information is derived from the internal financial reporting records that are used to monitor and manage the Company's financial performance.  The segment expense categories are based on the information regularly provided to the CODM and are considered significant to the segment’s operations.  The Bank Segment excludes the income, expenses, and total assets of the parent company, Middlefield Banc Corp, and the parent company’s nonbank asset resolution subsidiary, EMORECO, Inc., which are shown as reconciling items in the following table.  There is no authoritative guidance for management accounting equivalent to GAAP, and therefore, the financial results of our business segment are not necessarily comparable with similar information presented by other companies. 

 

  

2024

  

2023

 
      

Reconciling

          

Reconciling

     

(Dollar amounts in thousands)

 

Bank

  

Items

  

Total

  

Bank

  

Items

  

Total

 
                         

Net interest income

 $61,275  $(595) $60,680  $65,805  $(602) $65,203 

Noninterest income

  7,253   (40)  7,213   6,793   (102)  6,691 

Total revenue

  68,528   (635)  67,893   72,598   (704)  71,894 

Provision for credit losses

  2,008   -   2,008   3,002   -   3,002 

Salaries and employee benefits

  23,567   1,074   24,641   23,760   751   24,511 

Occupancy expenses

  2,376   -   2,376   2,566   -   2,566 

Data processing costs

  4,740   -   4,740   4,588   -   4,588 

Other noninterest expense (1)

  12,955   2,829   15,784   13,863   2,609   16,472 

Income tax provision (benefit)

  3,778   (953)  2,825   4,241   (854)  3,387 

Net income

 $19,104  $(3,585) $15,519  $20,578  $(3,210) $17,368 

Total assets

 $1,851,688  $1,671  $1,853,359  $1,820,224  $2,659  $1,822,883 

 

(1)Includes expenses that are in the reported measure of net income but not specifically provided to the CODM. Other noninterest expense is composed of expenses such as equipment expense, Ohio state franchise tax, professional fees, advertising expense, and other expenses.

 

The CODM utilizes net income as the primary measure to allocate resources during the annual budget process.  This measure is used by CODM to evaluate the performance of the business segment, with a focus on net interest income, provision for credit losses, noninterest income, and noninterest expense.  Net income is compared to both budgeted and comparative historical amounts on a monthly basis. Drivers of any significant variations from budget are assessed.  The measure of segment assets is reported as total assets. 

 

v3.25.0.1
Note 20 - Parent Company
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]

20.

PARENT COMPANY 

 

Following are condensed financial statements of the Parent Company.

 

CONDENSED BALANCE SHEET

 

(Dollar amounts in thousands)

 
  

December 31,

 
  

2024

  

2023

 

ASSETS

        

Cash and due from banks

 $4,036  $4,065 

Other investments

  503   544 

Investment in nonbank subsidiary

  1   1 

Investment in bank subsidiary

  213,720   208,098 

Other assets

  1,168   2,125 

TOTAL ASSETS

 $219,428  $214,833 
         

LIABILITIES

        

Other borrowings

 $8,248  $8,248 

Other liabilities

  618   904 

TOTAL LIABILITIES

  8,866   9,152 
         

STOCKHOLDERS' EQUITY

  210,562   205,681 
         

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 $219,428  $214,833 

 

 

CONDENSED STATEMENT OF OPERATIONS

(Dollar amounts in thousands)

  

Year Ended December 31,

 
  

2024

  

2023

 

INCOME

        

Dividends from bank subsidiary

 $9,500  $17,000 

Loss on equity securities

  (40)  (100)

Other income

  2   3 

Total income

  9,462   16,903 
         

EXPENSES

        

Interest expense

  597   605 

Salaries and employee benefits

  1,074   751 

Ohio state franchise tax

  1,583   1,578 

Other expense

  1,246   1,032 

Total expenses

  4,500   3,966 
         

Income before income taxes

  4,962   12,937 
         

Income taxes

  (953)  (854)
         

Income before equity in undistributed net income of subsidiaries

  5,915   13,791 
         

Equity in undistributed net income of subsidiaries

  9,604   3,578 
         

NET INCOME

 $15,519  $17,368 
         

COMPREHENSIVE INCOME

 $11,536  $23,422 

    

 

CONDENSED STATEMENT OF CASH FLOWS

(Dollar amounts in thousands)

  

Year Ended December 31,

 
  

2024

  

2023

 

OPERATING ACTIVITIES

        

Net income

 $15,519  $17,368 

Adjustments to reconcile net income to net cash provided by operating activities:

        

Equity in undistributed net income of subsidiaries

  (9,604)  (3,578)

Stock-based compensation, net

  374   260 

Loss on equity securities

  41   100 

Other, net

  1,153   1,084 

Net cash provided by operating activities

  7,483   15,234 
         

FINANCING ACTIVITIES

        

Repurchase of common shares

  (1,055)  (4,506)

Cash dividends

  (6,457)  (6,864)

Net cash used in financing activities

  (7,512)  (11,370)
         

Increase (decrease) in cash

  (29)  3,864 
         

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

  4,065   201 
         

CASH AND CASH EQUIVALENTS AT END OF YEAR

 $4,036  $4,065 

 

v3.25.0.1
Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]

Principles of Consolidation and Basis of Presentation

 

The consolidated financial statements of Middlefield Banc Corp. ("Company") include its bank subsidiary, The Middlefield Banking Company (“MBC” or “Bank”), and a nonbank asset resolution subsidiary EMORECO, Inc. The consolidated financial statements also include the accounts of MBC’s subsidiaries, Middlefield Investments, Inc. (“MI”) and MB Insurance Services (“MIS”). All significant inter-company items have been eliminated.

 

On March 13, 2019, MBC established MI as an operating subsidiary to hold and manage an investment portfolio. On December 31, 2024, MI’s assets consist of a cash account, investments, and related accrued interest accounts. MI may only hold and manage investments and may not engage in any other activity without prior approval of the Ohio Division of Financial Institutions. In the first quarter of 2022, MBC established MIS as an operating subsidiary to offer retail and business customers various insurance services, including home, renters, automobile, pet, identity theft, travel, and professional liability insurance. On December 31, 2024, MIS assets consist of a cash account, a prepaid asset, and an accounts receivable. As a result of the bank merger of Liberty National Bank and MBC on December 1, 2022, Middlefield Banc Corp. acquired a 100% ownership interest in LBSI Insurance, LLC (“LBSI”), a wholly owned financial subsidiary of Liberty National Bank. LBSI did not operate after the merger, and its existence ended January 19, 2024. All significant intercompany items have been eliminated between MBC and these subsidiaries.

 

On December 1, 2022, the Company completed its merger with Liberty Bancshares, Inc. (“Liberty’), pursuant to a previously announced definitive merger agreement. Under the terms of the merger agreement, Liberty shareholders received 2.752 shares of the Company’s common stock in exchange for each share of Liberty common stock they owned immediately before the merger. The Company issued 2,561,513 shares of its common stock in the merger, and the aggregate merger consideration was approximately $73.3 million. Upon closing, Liberty’s bank subsidiary was merged into MBC, and Liberty’s six full-service bank offices, in Ada and Kenton in Hardin County, Bellefontaine North and Bellefontaine South in Logan County, Marysville in Union County, and Westerville in Franklin County, became offices of MBC.

 

Use of Estimates, Policy [Policy Text Block]

Estimates

 

In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts and liabilities as of the balance sheet date and revenues and expenses for the period. Actual results could differ from those estimates.

 

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

 

The Company has defined cash and cash equivalents as those amounts included in the Consolidated Balance Sheet captions as “Cash and due from banks” and “Federal funds sold” with original maturities of less than 90 days.

 

Equity Method Investments [Policy Text Block]

Investments 

 

Management determines the appropriate classification of investment securities at the time of purchase and re-evaluates such designation as of each balance sheet date.

 

Investment securities classified as available for sale are those securities that the Bank intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Bank’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Unrealized gains or losses are reported as increases or decreases in other comprehensive income (loss), net of the deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities.

 

Investment securities classified as held to maturity are those securities the Bank has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost, adjusted for the amortization of premium and accretion of discount, and computed by a method that approximates the interest method over the terms of the securities. As of December 31, 2024, the Company did not hold any held-to-maturity securities.

 

Equity securities, which are included in "other investments" on the Consolidated Balance Sheet, are measured at fair value with changes in fair value recognized in net income.

 

Marketable Securities, Policy [Policy Text Block]

Allowance for Credit Losses Investment Securities Available for Sale

 

The Bank adopted ASU No. 2016-13, Financial Instruments - Credit Loses - Topic (326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), effective January 1, 2023. Financial statement amounts related to investment securities recorded as of December 31, 2024 and 2023 are presented in accordance with the accounting policies described in the following sections.

 

The Bank measures expected credit losses on available for sale investment securities when the Bank intends to sell, or when it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For available for sale investment securities that do not meet the aforementioned criteria, the Bank evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Bank considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Economic forecast data is used to calculate the present value of expected cash flows. The Bank obtains its forecast data through a subscription to a widely recognized and relied-upon company that publishes various forecast scenarios. Management evaluates the various scenarios to determine a reasonable and supportable scenario and uses a single scenario in the model. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

 

The allowance for credit losses is included within "investment securities available for sale" on the Consolidated Balance Sheet, as applicable. Changes in the allowance for credit losses are recorded within the "provision for credit losses" on the Consolidated Income Statement. Losses are charged against the allowance when the Bank believes the collectability of an available for sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met.

 

Accrued interest receivable on available for sale investment securities is included within "accrued interest receivable and other assets" on the Consolidated Balance Sheet. This amount is excluded from the estimate of expected credit losses. Available for sale investment securities are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available for sale investment securities are placed on nonaccrual status, unpaid interest credited to income is reversed.

 

Financing Receivable [Policy Text Block]

Loans

 

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of unearned income, which includes net deferred loan fees and costs and unamortized premiums and discounts. Accrued interest receivable is included within "accrued interest receivable and other assets" on the Consolidated Balance Sheet. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loans’ yield (interest income). The Bank amortizes these amounts over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method. Interest income is primarily recognized on an accrual basis according to formulas in written contracts, such as loan agreements.

 

The loan portfolio is segmented into commercial and consumer loans. Commercial loans consist of the following classes: commercial construction, commercial and industrial loans, and commercial real estate loans. Consumer loans consist of the following classes: residential real estate loans, home equity loans, and consumer loans.

 

For all classes of loans, the accrual of interest 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, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for credit losses. Interest received on nonaccrual loans generally is either applied against the principal or reported as interest income on a cash basis, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past-due status of all classes of loans is determined based on contractual due dates for loan payments.

 

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Allowance for Credit Losses ("ACL") Loans

 

The Bank adopted ASU 2016-13, effective January 1, 2023. Financial statement amounts related to loans recorded as of December 31, 2024 and 2023 are presented in accordance with the accounting policies described in the following sections. The guidance applies an expected-loss methodology, recognizing current expected credit losses for the remaining life of the asset at the time of origination or acquisition.

 

The allowance for credit losses ("ACL") is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

 

The ACL is an estimate of expected credit losses, measured over the contractual life of a loan that considers our historical loss experience, current conditions, and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period.

 

Management uses a discounted cash flow ("DCF") model to calculate the present value of the expected cash flows for pools of loans that share similar risk characteristics and compares the results of this calculation to the amortized cost basis to determine its ACL balance.

 

The contractual term used in projecting the cash flows of a loan is based on the maturity date of a loan and is adjusted for prepayment or curtailment assumptions, which may shorten that contractual time period. Options to extend are considered by management in determining the contractual term.

 

The key inputs to the DCF model are (1) probability of default, (2) loss given default, (3) prepayment and curtailment rates, (4) reasonable and supportable economic forecasts, (5) forecast reversion period, (6) expected recoveries on charged off loans, and (7) discount rate.

 

Probability of Default ("PD")

In order to incorporate economic factors into forecasting within the DCF model, management elected to use the Loss Driver method to generate the PD rate inputs. The Loss Driver method analyzes how one or more economic factors change the default rate using statistical regression analysis. Management selected economic factors that have strong correlations to historical default rates.

 

Loss Given Default ("LGD")

Management elected to use the Frye Jacobs parameter for determining the LGD input, which is an estimation technique that derives an LGD input from segment-specific risk curves that correlate LGD with PD.

 

Prepayment and Curtailment Rates

Prepayment Rates: Loan-level transaction data is used to calculate semi-annual prepayment rates. These semi-annual rates are annualized, and the average of the annualized rates is used in the DCF calculation for fixed payments or term loans. Rates are calculated for each pool.

 

Curtailment Rates: Loan-level transaction data is used to calculate annual curtailment rates using available historical loan-level data. The average of the historical rates is used in the DCF model for interest-only payment or line-of-credit type loans. Rates are calculated for each pool.

 

Reasonable and Supportable Forecasts

The forecast data used in the DCF model is obtained via a subscription to a widely recognized and relied-upon company that publishes various forecast scenarios. Management evaluates the various scenarios to determine a reasonable and supportable scenario.

 

Forecast Reversion Period

Management uses forecasts to predict how economic factors will perform and has determined to use a four-quarter forecast period as well as an eight-quarter straight-line reversion period to historical averages (also commonly referred to as the mean reversion period).

 

Expected Recoveries on Charged-off Loans

Management performs an analysis to estimate recoveries that could be reasonably expected based on historical experience in order to account for expected recoveries on loans that have already been fully charged off and are not included in the ACL calculation.

 

Discount Rate

The effective interest rate of the underlying loans of the Company serves as the discount rate applied to the expected periodic cash flows. Management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments.

 

Individual Evaluation

Management evaluates individual instruments for expected credit losses when those instruments do not share similar risk characteristics with instruments evaluated using a collective (pooled) basis. These instruments will not be included in the collective analyses. The individual analysis will establish a specific reserve for instruments in scope.

 

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company’s loan portfolio is segmented to a level that allows management to monitor risk and performance. The portfolio is segmented into Commercial Real Estate (“CRE”), which is further segmented into Owner Occupied (“CRE OO”), Non-owner Occupied (“CRE NOO”), and Multifamily Residential, Residential Real Estate (“RRE”), Commercial and Industrial (“C&I”), Home Equity Lines of Credit (“HELOC”), Construction and Other (“Construction”), and Consumer Installment Loans. The CRE loan segments consist of loans made to finance the activities of CRE owners and operators and certain agricultural loans. The RRE and HELOC loan segments consist of loans made to finance the activities of residential homeowners. The C&I loan segment consists of loans made to finance the activities of commercial customers and certain agricultural loans. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts.

 

Historical credit loss experience is the basis for the estimation of expected credit losses. We apply historical loss rates to pools of loans with similar risk characteristics. After consideration of the historic loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information at the balance sheet date. The qualitative adjustments for current conditions are based upon national and local economic trends and conditions, levels of and trends in delinquency rates and nonaccrual loans, trends in volumes and terms of loans, effects of changes in lending policies, experience, ability, and depth of lending staff, the value of underlying collateral, concentrations of credit from a loan type, industry, and/or geographic standpoint. These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve.

 

The Bank has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on nonaccrual status, any outstanding accrued interest is reversed against interest income.  Accrued interest receivable is included within accrued interest receivable and other assets on the Consolidated Balance Sheet.

 

The ACL calculation for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and should, therefore, be individually assessed. The Bank automatically considers all non-accrual loans greater than $250,000 for individual analysis. Additional identification of loans to be individually evaluated is accomplished through the Bank’s normal loan review, criticized asset review, and portfolio management processes. The Bank previously evaluated all commercial loans greater than $150,000 for individual analysis that met the following criteria: 1) when it is determined that foreclosure is probable, 2) substandard, doubtful, and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, and 3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Specific reserves are established based on the following three acceptable methods for measuring the ACL: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate, 2) the loan’s observable market price, or 3) the fair value of the collateral when the loan is collateral dependent. Management considers a financial asset as collateral dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral, based on management's assessment as of the reporting date. Measurement of the expected credit losses on collateral-dependent loans is based on the fair value of the collateral, less any costs to sell. A specific reserve is established or a charge-off is taken if the fair value of the loan is less than the loan balance. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual residential real estate loans, home equity loans, and consumer loans for impairment disclosures.

 

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

 

The Bank adopted ASU No. 2016-13 effective January 1, 2023. The Bank estimates expected credit losses over the contractual period in which the Bank is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Bank. The allowance for credit losses on off-balance sheet credit exposures is included in "accrued interest payable and other liabilities" on the Consolidated Balance Sheet and adjusted through the provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life, consistent with the estimation process on the loan portfolio.

 

Stockholders' Equity, Policy [Policy Text Block]

Restricted Stock

 

Common stock of the FHLB represents ownership in an institution that is wholly owned by other financial institutions. This equity security is accounted for at cost and classified with "accrued interest and other assets" in the Consolidated Balance Sheet. The FHLB of Cincinnati has reported profits for 2024 and 2023, remains in compliance with regulatory capital and liquidity requirements, and continues to pay dividends on the stock and make redemptions at the par value. Considering these factors, management concluded that the stock was not impaired on December 31, 2024, or 2023.

 

Mortgage Banking Activity [Policy Text Block]

Mortgage Banking Activities

 

The Bank sells residential mortgage loans on a servicing retained basis. Servicing rights are initially recorded at fair value. The Bank measures servicing assets using the amortization method. Loan servicing rights are amortized in proportion to and throughout estimated net future servicing revenue. The expected period of the estimated net servicing income is partly based on the expected prepayment of the underlying mortgages. The unamortized balance of mortgage servicing rights is included in "accrued interest and other assets" on the Consolidated Balance Sheet.

 

Servicing fee income is recorded for fees earned for servicing loans and included in "other income" in the Consolidated Income Statement. The fees are based on a contractual percentage of outstanding principal and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material. The Bank is servicing loans for others in the amount of $197.4 million and $210.3 million on December 31, 2024, and 2023, respectively.

 

Property, Plant and Equipment, Policy [Policy Text Block]

Premises and Equipment

 

Land is carried at cost. Premises and equipment are stated at cost net of accumulated depreciation. Depreciation is computed on the straight-line method over the assets' estimated useful lives, which range from 3 to 20 years for furniture, fixtures, and equipment and 3 to 40 years for buildings and leasehold improvements. Expenditures for maintenance and repairs are charged against income as incurred. Costs of significant additions and improvements are capitalized.

 

Lessee, Leases [Policy Text Block]

Leases

 

The Company has operating and financing leases for several branch locations and office space. Generally, the underlying lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company may also lease specific office equipment under operating leases. Many of our leases include both lease (e.g., minimum rent payments) and non-lease components (e.g., common-area or other maintenance costs). The Company accounts for each element separately based on the standalone price of each component. Operating and financing leases with lease terms of less than one year are excluded from our right-of-use assets and lease liabilities. Operating and financing lease expense are recognized in "occupancy expense" and "equipment expense" in the Consolidated Income Statement on a straight-line basis over the lease term.

 

Most leases include one or more options to renew. The exercise of lease renewal options is typically at the sole discretion of management. It is based on whether the extension options are reasonably certain to be exercised after giving proper consideration to all facts and circumstances of the lease. If management determines that the Company is reasonably sure to exercise the extension option(s), the additional term is included in the calculation of the right-of-use asset and a lease liability.

 

As most of our leases do not provide an implicit rate, we use the fully collateralized FHLB borrowing rate commensurate with the lease terms based on the information available at the lease commencement date in determining the present value of the lease payments.

 

Business Combinations Policy [Policy Text Block]

Business Combinations

 

Business combinations are accounted for under the acquisition method of accounting. Acquired assets, including separately identifiable intangible assets, and assumed liabilities are recorded at their acquisition-date fair values. The excess of the cost of acquisition over the fair values is recognized as goodwill. During the measurement period, which cannot exceed one year from the acquisition date, changes to estimated fair values are recognized as an adjustment to goodwill. Certain transaction costs are expensed as incurred.

 

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

 

Goodwill represents the amount by which the cost of net assets acquired in a business combination exceeds their fair value. Goodwill is not amortized and is tested for impairment, at least annually as of October 1, or when indicators of impairment exist. We have elected to perform qualitative assessment for testing the impairment of goodwill. If we elect to bypass this qualitative assessment or conclude as a result of the qualitative assessment that it is more likely than not that the fair value is less than its carrying value, a quantitative impairment test will be performed. If the fair value is less than carrying value, an impairment charge is recorded for the difference.

Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

Intangible Assets

 

Intangible assets include core deposit intangibles, which measure the value of consumer demand and savings deposits acquired in business combinations accounted for as purchases. The core deposit intangibles are amortized over their expected useful lives, commonly ten years, on a straight-line basis. The recoverability of the carrying value of intangible assets is evaluated on an ongoing basis, and permanent declines in value, if any, are charged to expense.

 

Life Insurance Corporate or Bank Owned [Policy Text Block]

Bank-Owned Life Insurance (BOLI)

 

The Company owns insurance on the lives of a specific group of key employees. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The cash surrender value of these policies is included as an asset on the Consolidated Balance Sheet, and any increases in the cash surrender value are recorded as noninterest income on the Consolidated Income Statement. In the event of the death of an insured individual under these policies, the Company would receive a death benefit, which would be recorded as tax-free noninterest income.

 

Real Estate, Policy [Policy Text Block]

Other Real Estate Owned (OREO)

 

Real estate properties acquired through foreclosure are initially recorded at fair value at the foreclosure date, establishing a new cost basis. After foreclosure, the real estate is carried at the lower of cost or fair value less estimated cost to sell. Revenue and expenses from operations of the properties, gains or losses on sales, and additions to the valuation allowance are included in operating results. At December 31, 2024 and 2023, the Company reported $352,000 and $228,000, respectively, in residential real estate loans in the process of foreclosure. 

 

Fair Value Measurement, Policy [Policy Text Block]

Fair Value

 

Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between market participants in the principal market. It represents an exit price at the measurement date. Valuation inputs can be observable or unobservable. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy that gives the highest ranking to quoted prices in active markets for identification assets or liabilities (Level 1) and the lowest ranking to unobservable inputs (Level 3). Fair values for Level 2 assets and liabilities are based on a combination of one or more of the following factors: (1) quoted market prices for similar assets or liabilities, (2) observable inputs, such as interest rates or yield curves, or (3) inputs derived principally from or corroborated by observable market data. The level in the fair value hierarchy assigned to a fair value measurement is based on the lowest level input that is significant to the measurement. Assets and liabilities may transfer between levels based on the observable and unobservable inputs used at the valuation date.

 

Assets and liabilities are recorded at fair value on a recurring or nonrecurring basis. Nonrecurring fair value adjustments are typically recorded with the application of lower of cost or fair value accounting or impairment.

 

Income Tax, Policy [Policy Text Block]

Income Taxes

 

The Company and its subsidiaries file a consolidated federal income tax return. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. The net balance of deferred tax assets and liabilities is reported in "accrued interest receive and other assets" or "accrued interest payable and other liabilities" in the Consolidated Balance Sheet, as appropriate. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

 

Revenue from Contract with Customer [Policy Text Block]

Fee-based Services Revenue Recognition

 

Refer to Note 2 - Revenue Recognition.

Share-Based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

 

The Company accounts for stock-based compensation based on the grant date fair value of all share-based payment awards expected to vest, including employee share options. Compensation cost is recognized for restricted stock issued to employees based on the fair value of these awards at the grant date. The market price of the Company’s common shares at the grant date is used to estimate the fair value of restricted stock and stock awards. Stock-based compensation cost for awards granted to employees is recognized over the required service period, generally defined as the vesting period, and is recorded in "salaries and employee benefits" expense in the Consolidated Income Statement, while the expense related to awards granted to directors is recorded in "other expense". (See Note 14 - Employee Benefits). One of the Company’s restricted stock plans allows for a portion of the value to be received in cash by the participant upon vesting. Therefore, the Company records the expense as a liability until the shares vest and the split of the payment between shares and cash can be determined. The Company also measures the fair value of the liability each reporting period and adjusts accordingly.  Another of the Company's restricted stock plans settles in shares upon vesting, and the related expense is recorded through additional paid-in capital. 

 

The Company has performance-based restricted stock units whereby the vesting in the granted awards is contingent on certain internal and external financial performance factors. The fair value of these stock units is estimated using a Monte Carlo simulation, as further discussed in Note 14 - Employee Benefits.  

 

Advertising Cost [Policy Text Block]

Advertising Costs

 

Advertising costs are expensed as incurred.

Treasury Stock [Policy Text Block]

Treasury Stock

 

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. The reserve for the Company’s treasury shares comprises the cost of the Company’s shares held by the Company. 

Earnings Per Share, Policy [Policy Text Block]

Earnings Per Share

 

The Company provides a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated utilizing net income as reported in the numerator and average shares outstanding in the denominator. The computation of diluted earnings per share differs in that the dilutive effects of any stock options, warrants, and convertible securities are adjusted in the denominator. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements.

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassification of Comparative Amounts

 

Certain comparative amounts for prior years have been reclassified to conform to current-year presentations. Such reclassifications did not affect net income or retained earnings.

New Accounting Pronouncements, Policy [Policy Text Block]

Accounting Pronouncements Adopted in 2024

 

In  March 2023, the FASB issued ASU 2023-02, Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The amendments allow entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related tax credits. This method of accounting had been available only for qualifying investments in qualified affordable housing projects. The guidance also requires certain disclosures regarding an entity’s tax equity investments. The amendments in this ASU are effective for all entities for fiscal years beginning after  December 15, 2023. This ASU did not have a significant impact on the Company’s financial statements.

 

In  January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,  March 2020, to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (SOFR). Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls “reference rate reform” if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 Issued  December 2022, which was issued in  December 2022, extended the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from  December 31, 2022 to  December 31, 2024. The ASUs did not have a significant impact on the Company’s financial statements.

 

In  June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendment clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit account of the equity security and is not considered in measuring its fair value. The ASU clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The ASU also requires certain disclosures for equity securities subject to contractual sale restrictions. The amendments in this ASU are effective for all entities for fiscal years beginning after  December 15, 2023. This ASU did not have a significant impact on the Company’s financial statements.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU requires enhanced disclosures about significant segment expenses for public entities reporting segment information under ASC Topic 280. The amendments include required disclosure of significant segment expenses regularly reviewed by the chief operating decision maker, description of the composition of other segment items, and title and position of the chief operating decision maker. Additionally, the ASU requires public entities to provide all annual disclosures under Topic 280 in interim periods. The ASU also requires that public entities with a single reportable segment provide all the disclosures required by this amendment and existing disclosure requirements in Topic 820. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company has a single reportable segment. The disclosure requirements under the ASU have been incorporated in Note 19 - Segment Reporting.

 

Recent Accounting Pronouncements

 

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require entities to disclose specific categories in the rate reconciliation and provide additional information for material reconciling items. The ASU also requires the disclosure of income taxes paid disaggregated by jurisdiction. The amendments in this ASU are effective for public business entities for annual periods beginning after  December 15, 2024. This ASU is not expected to have a significant impact on the Company’s financial statements.

 

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Topic 220-40): Disaggregation of Income Statement Expenses.  The guidance requires public companies to disclose additional information about certain types of costs and expenses.  The amendment should be applied on a prospective or retrospective basis.  The amendments in this ASU are effective for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. This ASU is not expected to have a significant impact on the Company’s financial statements. 

 

v3.25.0.1
Note 2 - Revenue Recognition (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Disaggregation of Revenue [Table Text Block]
  

For the Year Ended December 31,

 

(Dollar amounts in thousands)

 

2024

  

2023

 

Noninterest Income

        

Service charges on deposit accounts:

        

Overdraft fees

 $1,001  $995 

ATM banking fees

  1,899   1,928 

Service charges and other fees

  1,007   955 

Loss on equity securities ⁽ª⁾

  (9)  (161)

Loss on sale of other real estate owned ⁽ª⁾

  -   (170)

Earnings on bank-owned life insurance ⁽ª⁾

  930   823 

Gain on sale of loans ⁽ª⁾

  199   97 

Revenue from investment services

  916   743 

Miscellaneous fee income

  403   380 

Gross rental income ⁽ª⁾

  68   421 

Other income

  799   680 

Total noninterest income

 $7,213  $6,691 
v3.25.0.1
Note 3 - Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Weighted Average Number of Shares [Table Text Block]
  

For the Twelve

 
  

Months Ended

 
  

December 31,

 
  

2024

  

2023

 
         

Weighted-average common shares outstanding

  9,947,420   9,925,689 
         

Average treasury stock shares

  (1,872,120)  (1,822,459)
         

Weighted-average common shares and common stock equivalents used to calculate basic earnings per share

  8,075,300   8,103,230 
         

Additional common stock equivalents (stock options and restricted stock) used to calculate diluted earnings per share

  10,798   22,783 
         

Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share

  8,086,098   8,126,013 
v3.25.0.1
Note 4 - Accumulated Other Comprehensive (Loss) Income (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

(Dollars in thousands)

 

Unrealized (losses)/gains on securities available-for-sale

 

Balance at December 31, 2023

 $(16,090)

Other comprehensive loss⁽ª⁾

  (3,983)

Balance at December 31, 2024

 $(20,073)

(Dollars in thousands)

 

Unrealized (losses)/gains on securities available-for-sale

 

Balance at December 31, 2022

 $(22,144)

Other comprehensive income⁽ª⁾

  6,054 

Balance at December 31, 2023

 $(16,090)
v3.25.0.1
Note 5 - Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Fair Value, Assets Measured on Recurring Basis [Table Text Block]
      

December 31, 2024

     

(Dollar amounts in thousands)

 

Level I

  

Level II

  

Level III

  

Total

 

Assets measured on a recurring basis:

                

Subordinated debt

 $-  $25,830  $6,639  $32,469 

Obligations of states and political subdivisions

  -   124,966   -   124,966 

Mortgage-backed securities in government-sponsored entities

  -   8,367   -   8,367 

Total investment securities available for sale

  -   159,163   6,639   165,802 

Equity securities

  753   -   -   753 

Total

 $753  $159,163  $6,639  $166,555 
      

December 31, 2023

     

(Dollar amounts in thousands)

 

Level I

  

Level II

  

Level III

  

Total

 

Assets measured on a recurring basis:

                

Subordinated debt

 $-  $23,118  $8,801  $31,919 

Obligations of states and political subdivisions

  -   132,542   -   132,542 

Mortgage-backed securities in government-sponsored entities

  -   6,318   -   6,318 

Total investment securities available for sale

  -   161,978   8,801   170,779 

Equity securities

  814   -   -   814 

Total

 $814  $161,978  $8,801  $171,593 
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
  

Subordinated debt

 

(Dollar amounts in thousands)

 

December 31, 2024

  

December 31, 2023

 

Beginning of year

 $8,801  $8,737 

Purchases, sales, settlements:

        

Purchases

  -   1,000 

Transfers out of Level III (1)

  (2,250)  (1,000)

Net change in unrealized loss on investment securities available-for-sale

  88   64 

End of year

 $6,639  $8,801 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]
      

December 31, 2024

     

(Dollar amounts in thousands)

 

Level I

  

Level II

  

Level III

  

Total

 

Assets measured on a non-recurring basis:

                

Collateral-dependent loans

 $-  $-  $3,321  $3,321 
      

December 31, 2023

     

(Dollar amounts in thousands)

 

Level I

  

Level II

  

Level III

  

Total

 

Assets measured on a non-recurring basis:

                

Collateral-dependent loans

 $-  $-  $3,361  $3,361 
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]
  

Quantitative Information about Level III Fair Value Measurements

(Dollar amounts in thousands)

       
  

Fair Value Estimate

 

Valuation Techniques

Unobservable Input

Range (Weighted Average)

December 31, 2024

       

Collateral-dependent loans

 $3,321 

Appraisal of collateral (1)

Appraisal adjustments (2)

0 - 23.9% (23.9%)

  

Quantitative Information about Level III Fair Value Measurements

(Dollar amounts in thousands)

       
  

Fair Value Estimate

 

Valuation Techniques

Unobservable Input

Range (Weighted Average)

December 31, 2023

       

Collateral-dependent loans

 $3,361 

Appraisal of collateral (1)

Appraisal adjustments (2)

20.1%

Fair Value, by Balance Sheet Grouping [Table Text Block]
  

December 31, 2024

 
  

Carrying

              

Total

 
  

Value

  

Level I

  

Level II

  

Level III

  

Fair Value

 
(Dollar amounts in thousands) 

 

 

Financial assets:

                    

Net loans

 $1,497,167  $-  $-  $1,462,650  $1,462,650 

Mortgage servicing rights

  1,497   -   -   2,522   2,522 
                     

Financial liabilities:

                    

Non-maturing deposits

 $1,197,989  $1,197,989  $-  $-  $1,197,989 

Time deposits

  247,704   -   -   245,999   245,999 

Other borrowings

  11,660   -   -   11,660   11,660 
  

December 31, 2023

 
  

Carrying

              

Total

 
  

Value

  

Level I

  

Level II

  

Level III

  

Fair Value

 
(Dollar amounts in thousands) 

 

 

Financial assets:

                    

Net loans

 $1,456,437  $-  $-  $1,370,657  $1,370,657 

Mortgage servicing rights

  1,636   -   -   2,781   2,781 
                     

Financial liabilities:

                    

Non-maturing deposits

 $1,092,287  $1,092,287  $-  $-  $1,092,287 

Time deposits

  334,315   -   -   331,638   331,638 

Other borrowings

  11,862   -   -   11,862   11,862 
v3.25.0.1
Note 6 - Investment and Equity Securities (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block]
  

December 31, 2024

 
      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 

(Dollar amounts in thousands)

 

Cost (a)

  

Gains

  

Losses

  

Value

 
                 

Subordinated debt

 $34,300  $67  $(1,898) $32,469 

Obligations of states and political subdivisions:

                

Tax-exempt

  147,767   4   (22,805)  124,966 

Mortgage-backed securities in government-sponsored entities

  9,144   1   (778)  8,367 

Total

 $191,211  $72  $(25,481) $165,802 
  

December 31, 2023

 
      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 

(Dollar amounts in thousands)

 

Cost (a)

  

Gains

  

Losses

  

Value

 
                 

Subordinated debt

 $34,300  $70  $(2,451) $31,919 

Obligations of states and political subdivisions:

                

Tax-exempt

  149,881   153   (17,492)  132,542 

Mortgage-backed securities in government-sponsored entities

  6,965   -   (647)  6,318 

Total

 $191,146  $223  $(20,590) $170,779 
Investments Classified by Contractual Maturity Date [Table Text Block]
  

Amortized

  

Fair

 

(Dollar amounts in thousands)

 

Cost

  

Value

 
         

Due in one year or less

 $590  $590 

Due after one year through five years

  6,177   5,991 

Due after five years through ten years

  57,369   54,247 

Due after ten years

  127,075   104,974 

Total

 $191,211  $165,802 
Gain (Loss) on Securities [Table Text Block]
  

December 31, 2024

 
  

Less than Twelve Months

  

Twelve Months or Greater

  

Total

 
      

Gross

      

Gross

      

Gross

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 

(Dollar amounts in thousands)

 

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
                         

Subordinated debt

 $10,632  $(368) $20,770  $(1,530) $31,402  $(1,898)

Obligations of states and political subdivisions:

                        

Tax-exempt

  15,456   (487)  102,484   (22,318)  117,940   (22,805)

Mortgage-backed securities in government-sponsored entities

  1,986   (49)  5,118   (729)  7,104   (778)

Total

 $28,074  $(904) $128,372  $(24,577) $156,446  $(25,481)
  

December 31, 2023

 
  

Less than Twelve Months

  

Twelve Months or Greater

  

Total

 
      

Gross

      

Gross

      

Gross

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 

(Dollar amounts in thousands)

 

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
                         

Subordinated debt

 $994  $(6) $29,356  $(2,445) $30,350  $(2,451)

Obligations of states and political subdivisions:

                        

Tax-exempt

  1,386   (10)  106,078   (17,482)  107,464   (17,492)

Mortgage-backed securities in government-sponsored entities

  195   (1)  6,122   (646)  6,317   (647)

Total

 $2,575  $(17) $141,556  $(20,573) $144,131  $(20,590)
v3.25.0.1
Note 7 - Loans and Related Allowance for Credit Losses (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule Of Financing Receivable By Segment [Table Text Block]
  

December 31,

  

December 31,

 
  

2024 ⁽¹⁾⁽²⁾

  

2023 ⁽¹⁾⁽²⁾

 
         

Commercial real estate:

        

Owner occupied

 $181,447  $183,545 

Non-owner occupied

  412,291   401,580 

Multifamily

  89,849   82,506 

Residential real estate

  353,442   328,854 

Commercial and industrial

  229,034   221,508 

Home equity lines of credit

  143,379   127,818 

Construction and other

  103,608   125,105 

Consumer installment

  6,564   7,214 

Total loans

  1,519,614   1,478,130 

Less: Allowance for credit losses

  (22,447)  (21,693)

Net loans

 $1,497,167  $1,456,437 
Financing Receivable, Current, Allowance for Credit Loss [Table Text Block]
  

For the Twelve Months Ended December 31, 2024

 
  

Allowance for Credit Losses

 
  

Balance

              

Balance

 
  

December 31, 2023

  

Charge-offs

  

Recoveries

  

Provision

  

December 31, 2024

 

Loans:

                    

Commercial real estate:

                    

Owner occupied

 $2,668  $(45) $11  $(534) $2,100 

Non-owner occupied

  4,480   (1,341)  -   5,225   8,364 

Multifamily

  1,796   -   -   (486)  1,310 

Residential real estate

  5,450   -   -   (214)  5,236 

Commercial and industrial

  4,377   (215)  55   (1,790)  2,427 

Home equity lines of credit

  750   (7)  1   153   897 

Construction and other

  1,990   -   -   62   2,052 

Consumer installment

  182   (38)  143   (226)  61 

Total

 $21,693  $(1,646) $210  $2,190  $22,447 
  

For the Twelve Months Ended December 31, 2023

 
  

Allowance for Credit Losses

 
  

Balance

  

CECL

              

Balance

 
  

December 31, 2022

  

Adoption

  

Charge-offs

  

Recoveries

  

Provision

  

December 31, 2023

 

Loans:

                        

Commercial real estate:

                        

Owner occupied

 $2,203  $811  $(46) $5  $(305) $2,668 

Non-owner occupied

  5,597   (1,206)  -   -   89   4,480 

Multifamily

  662   591   -   -   543   1,796 

Residential real estate

  2,047   2,744   (108)  13   754   5,450 

Commercial and industrial

  1,483   2,320   (85)  38   621   4,377 

Home equity lines of credit

  1,753   (1,031)  -   70   (42)  750 

Construction and other

  609   956   -   -   425   1,990 

Consumer installment

  84   197   (63)  207   (243)  182 

Total

 $14,438  $5,382  $(302) $333  $1,842  $21,693 
Financing Receivable Credit Quality Indicators [Table Text Block]

December 31, 2024

 

Term Loans Amortized Cost Basis by Origination Year

  

Revolving Amortized

     

(Dollar amounts in thousands)

 

2024

  

2023

  

2022

  

2021

  

2020

  

Prior

  

Cost Basis

  

Total

 

Commercial real estate:

                                

Owner occupied

                                

Pass

 $12,424  $20,265  $33,389  $39,025  $25,532  $39,393  $4,394  $174,422 

Special Mention

  -   -   -   389   -   772   -   1,161 

Substandard

  974   -   4,535   -   -   355   -   5,864 

Total Owner occupied

 $13,398  $20,265  $37,924  $39,414  $25,532  $40,520  $4,394  $181,447 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $45  $-  $45 

Non-owner occupied

                                

Pass

 $7,542  $63,559  $96,624  $49,009  $20,230  $133,530  $905  $371,399 

Special Mention

  -   -   2,506   -   -   2,002   -   4,508 

Substandard

  -   -   3,719   635   -   32,030   -   36,384 

Total Non-owner occupied

 $7,542  $63,559  $102,849  $49,644  $20,230  $167,562  $905  $412,291 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $1,341  $-  $1,341 

Multifamily

                                

Pass

 $2,930  $36,113  $21,978  $7,437  $10,057  $11,324  $10  $89,849 

Total Multifamily

 $2,930  $36,113  $21,978  $7,437  $10,057  $11,324  $10  $89,849 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Residential real estate

                                

Pass

 $45,347  $50,820  $61,963  $69,982  $36,067  $86,492  $291  $350,962 

Substandard

  34   169   115   635   -   1,527   -   2,480 

Total Residential real estate

 $45,381  $50,989  $62,078  $70,617  $36,067  $88,019  $291  $353,442 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Commercial and industrial

                                

Pass

 $48,654  $33,860  $31,305  $13,512  $18,864  $4,888  $74,169  $225,252 

Special Mention

  2,263   -   -   -   -   -   832   3,095 

Substandard

  214   10   -   -   305   84   74   687 

Total Commercial and industrial

 $51,131  $33,870  $31,305  $13,512  $19,169  $4,972  $75,075  $229,034 

Current-period gross charge-offs

 $-  $180  $23  $12  $-  $-  $-  $215 

Home equity lines of credit

                                

Pass

 $244  $-  $166  $183  $133  $2,041  $139,214  $141,981 

Substandard

  -   68   150   -   34   493   653   1,398 

Total Home equity lines of credit

 $244  $68  $316  $183  $167  $2,534  $139,867  $143,379 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $7  $-  $7 

Construction and other

                                

Pass

 $31,361  $48,177  $2,418  $1,223  $506  $1,368  $14,909  $99,962 

Special Mention

  -   -   834   -   -   221   -   1,055 

Substandard

  -   493   -   -   -   1,171   927   2,591 

Total Construction and other

 $31,361  $48,670  $3,252  $1,223  $506  $2,760  $15,836  $103,608 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Consumer installment

                                

Pass

 $1,539  $1,047  $381  $112  $36  $3,284  $-  $6,399 

Substandard

  -   -   3   -   -   162   -   165 

Total Consumer installment

 $1,539  $1,047  $384  $112  $36  $3,446  $-  $6,564 

Current-period gross charge-offs

 $-  $-  $2  $6  $-  $30  $-  $38 

Total Loans

 $153,526  $254,581  $260,086  $182,142  $111,764  $321,137  $236,378  $1,519,614 
                                 

Total Loans Summary

                                

Pass

 $150,041  $253,841  $248,224  $180,483  $111,425  $282,320  $233,892  $1,460,226 

Special Mention

  2,263   -   3,340   389   -   2,995   832   9,819 

Substandard

  1,222   740   8,522   1,270   339   35,822   1,654   49,569 

Total Loans

 $153,526  $254,581  $260,086  $182,142  $111,764  $321,137  $236,378  $1,519,614 

December 31, 2023

 

Term Loans Amortized Cost Basis by Origination Year

  

Revolving Amortized

     

(Dollar amounts in thousands)

 

2023

  

2022

  

2021

  

2020

  

2019

  

Prior

  

Cost Basis

  

Total

 

Commercial real estate:

                                

Owner occupied

                                

Pass

 $14,634  $34,850  $41,609  $25,040  $12,304  $41,976  $2,662  $173,075 

Special Mention

  -   2,271   -   -   13   799   -   3,083 

Substandard

  -   2,356   -   1,559   146   3,326   -   7,387 

Total Owner occupied

 $14,634  $39,477  $41,609  $26,599  $12,463  $46,101  $2,662  $183,545 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $46  $-  $46 

Non-owner occupied

                                

Pass

 $43,393  $95,098  $40,959  $22,707  $32,405  $127,469  $504  $362,535 

Special Mention

  -   2,508   -   -   -   2,197   -   4,705 

Substandard

  -   -   -   -   5,237   24,569   -   29,806 

Doubtful

  -   -   647   -   3,887   -   -   4,534 

Total Non-owner occupied

 $43,393  $97,606  $41,606  $22,707  $41,529  $154,235  $504  $401,580 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Multifamily

                                

Pass

 $29,218  $25,776  $4,267  $10,453  $1,391  $11,231  $104  $82,440 

Substandard

  -   -   -   -   -   66   -   66 

Total Multifamily

 $29,218  $25,776  $4,267  $10,453  $1,391  $11,297  $104  $82,506 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Residential real estate

                                

Pass

 $50,086  $56,180  $78,909  $39,476  $19,418  $82,441  $672  $327,182 

Substandard

  -   127   210   -   24   1,311   -   1,672 

Total Residential real estate

 $50,086  $56,307  $79,119  $39,476  $19,442  $83,752  $672  $328,854 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $108  $-  $108 

Commercial and industrial

                                

Pass

 $46,918  $43,494  $17,909  $25,143  $2,741  $6,533  $66,842  $209,580 

Special Mention

  -   -   -   -   -   -   184   184 

Substandard

  13   15   -   353   124   876   10,367   11,748 

Loss

  -   -   -   -   -   (4)  -   (4)

Total Commercial and industrial

 $46,931  $43,509  $17,909  $25,496  $2,865  $7,405  $77,393  $221,508 

Current-period gross charge-offs

 $-  $-  $75  $-  $6  $4  $-  $85 

Home equity lines of credit

                                

Pass

 $-  $126  $-  $16  $63  $2,097  $124,001  $126,303 

Substandard

  -   105   -   36   29   583   762   1,515 

Total Home equity lines of credit

 $-  $231  $-  $52  $92  $2,680  $124,763  $127,818 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Construction and other

                                

Pass

 $55,528  $23,059  $20,246  $1,777  $5,609  $851  $9,152  $116,222 

Special Mention

  -   3,573   2,371   -   265   -   -   6,209 

Substandard

  -   -   420   -   1,770   -   484   2,674 

Total Construction and other

 $55,528  $26,632  $23,037  $1,777  $7,644  $851  $9,636  $125,105 

Current-period gross charge-offs

 $-  $-  $-  $-  $-  $-  $-  $- 

Consumer installment

                                

Pass

 $1,810  $1,088  $324  $89  $74  $3,669  $-  $7,054 

Substandard

  -   7   -   -   -   153   -   160 

Total Consumer installment

 $1,810  $1,095  $324  $89  $74  $3,822  $-  $7,214 

Current-period gross charge-offs

 $-  $25  $-  $-  $-  $38  $-  $63 

Total Loans

 $241,600  $290,633  $207,871  $126,649  $85,500  $310,143  $215,734  $1,478,130 
                                 

Total Loans Summary

                                

Pass

 $241,587  $279,671  $204,223  $124,701  $74,005  $276,267  $203,937  $1,404,391 

Special Mention

  -   8,352   2,371   -   278   2,996   184   14,181 

Substandard

  13   2,610   630   1,948   7,330   30,884   11,613   55,028 

Doubtful

  -   -   647   -   3,887   -   -   4,534 

Loss

  -   -   -   -   -   (4)  -   (4)

Total Loans

 $241,600  $290,633  $207,871  $126,649  $85,500  $310,143  $215,734  $1,478,130 
Schedule of Collateral Dependent Loans [Table Text Block]
  

December 31, 2024

 
  

Type of Collateral

 

(Dollar amounts in thousands)

 

Real Estate

  

Blanket Lien

  

Investment/Cash

  

Other

  

Total

 

Commercial real estate:

                    

Owner occupied

 $3,198  $-  $-  $-  $3,198 

Non-owner occupied

  24,881   -   -   -   24,881 

Residential real estate

  617   -   -   -   617 

Commercial and industrial

  214   -   -   -   214 

Construction and other

  493   -   -   -   493 

Total

 $29,403  $-  $-  $-  $29,403 
  

December 31, 2023

 
  

Type of Collateral

 

(Dollar amounts in thousands)

 

Real Estate

  

Blanket Lien

  

Investment/Cash

  

Other

  

Total

 

Commercial real estate:

                    

Non-owner occupied

 $8,150  $-  $-  $-  $8,150 

Total

 $8,150  $-  $-  $-  $8,150 
Financing Receivable, Past Due [Table Text Block]
      

30-59 Days

  

60-89 Days

  

90 Days+

  

Total

  

Total

 

December 31, 2024

 

Current

  

Past Due

  

Past Due

  

Past Due

  

Past Due

  

Loans

 
                         

Commercial real estate:

                        

Owner occupied

 $180,752  $513  $122  $60  $695  $181,447 

Non-owner occupied

  402,942   1,355   -   8,012   9,367   412,291 

Multifamily

  89,756   93   -   -   93   89,849 

Residential real estate

  349,645   2,216   562   1,019   3,797   353,442 

Commercial and industrial

  226,669   81   2,284   -   2,365   229,034 

Home equity lines of credit

  142,484   366   102   427   895   143,379 

Construction and other

  103,115   -   -   493   493   103,608 

Consumer installment

  6,479   41   44   -   85   6,564 

Total

 $1,501,824  $4,665  $3,114  $10,011  $17,790  $1,519,614 
      

30-59 Days

  

60-89 Days

  

90 Days+

  

Total

  

Total

 

December 31, 2023

 

Current

  

Past Due

  

Past Due

  

Past Due

  

Past Due

  

Loans

 
                         

Commercial real estate:

                        

Owner occupied

 $183,242  $197  $-  $106  $303  $183,545 

Non-owner occupied

  397,964   3,616   -   -   3,616   401,580 

Multifamily

  82,440   -   -   66   66   82,506 

Residential real estate

  326,224   1,366   1,010   254   2,630   328,854 

Commercial and industrial

  221,304   -   146   58   204   221,508 

Home equity lines of credit

  126,894   447   180   297   924   127,818 

Construction and other

  125,040   65   -   -   65   125,105 

Consumer installment

  7,138   69   -   7   76   7,214 

Total

 $1,470,246  $5,760  $1,336  $788  $7,884  $1,478,130 
Financing Receivable, Nonaccrual [Table Text Block]
  

December 31, 2024

 
  

Nonaccrual

  

Nonaccrual

      

Loans Past

     

(Dollar amounts in thousands)

 

with no

  

with

  

Total

  

Due Over 90 Days

  

Total

 
  

ACL

  

ACL

  

Nonaccrual

  

Still Accruing

  

Nonperforming

 

Commercial real estate:

                    

Owner occupied

 $974  $301  $1,275  $-  $1,275 

Non-owner occupied

  21,265   3,616   24,881   -   24,881 

Residential real estate

  617   1,377   1,994   -   1,994 

Commercial and industrial

  -   159   159   -   159 

Home equity lines of credit

  -   1,017   1,017   -   1,017 

Construction and other

  -   493   493   -   493 

Consumer installment

  162   3   165   -   165 

Total

 $23,018  $6,966  $29,984  $-  $29,984 
  

December 31, 2023

 
  

Nonaccrual

  

Nonaccrual

      

Loans Past

     

(Dollar amounts in thousands)

 

with no

  

with

  

Total

  

Due Over 90 Days

  

Total

 
  

ACL

  

ACL

  

Nonaccrual

  

Still Accruing

  

Nonperforming

 

Commercial real estate:

                    

Owner occupied

 $-  $252  $252  $-  $252 

Non-owner occupied

  4,534   3,616   8,150   -   8,150 

Multifamily

  -   66   66   -   66 

Residential real estate

  -   1,170   1,170   -   1,170 

Commercial and industrial

  -   223   223   -   223 

Home equity lines of credit

  -   856   856   -   856 

Construction and other

  -   -   -   -   - 

Consumer installment

  153   7   160   -   160 

Total

 $4,687  $6,190  $10,877  $-  $10,877 
Financing Receivable, Modified [Table Text Block]
  

December 31, 2024

 
  

Modifications

 
          

Payment

  

Interest Rate

  

Interest Rate

      

Percentage of

 
          

Deferral

  

Reduction

  

Reduction

      

Total Loans

 
  

Payment

  

Term

  

and Term

  

and Term

  

and Principal

      

Held for

 
  

Deferral

  

Extension

  

Extension

  

Past Due

  

Forgiveness

  

Total

  

Investment

 
                             

Commercial real estate:

                            

Non-owner occupied

 $-  $8,414  $13,151  $-  $-  $21,565   1.4%

Multifamily

  -   707   -   -   -   707   4.7%

Total

 $-  $9,121  $13,151  $-  $-  $22,272   1.5%
  

December 31, 2023

 
  

Modifications

 
          

Payment

  

Interest Rate

  

Interest Rate

      

Percentage of

 
          

Deferral

  

Reduction

  

Reduction

      

Total Loans

 
  

Payment

  

Term

  

and Term

  

and Term

  

and Principal

      

Held for

 
  

Deferral

  

Extension

  

Extension

  

Past Due

  

Forgiveness

  

Total

  

Investment

 
                             

Commercial real estate:

                            

Non-owner occupied

 $-  $145  $2,507  $-  $-  $2,652   0.2%

Residential real estate

  -   19,074   -   -   -   19,074   1.4%

Commercial and industrial

  -   83   -   -   -   83   0.0%

Consumer installment

  -   8   -   -   -   8   0.0%

Total

 $-  $19,310  $2,507  $-  $-  $21,817   1.6%
v3.25.0.1
Note 8 - Premises and Equipment (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Property, Plant and Equipment [Table Text Block]

(Dollar amounts in thousands)

 

2024

  

2023

 
         

Land and land improvements

 $4,896  $4,896 

Building and leasehold improvements

  21,190   21,014 

Furniture, fixtures, and equipment

  10,564   10,104 

Financing right-of-use assets

  4,990   4,990 

Construction in process

  139   - 

Total premises and equipment

  41,779   41,004 

Less accumulated depreciation and amortization

  21,214   19,665 
         

Total premises and equipment, net

 $20,565  $21,339 
v3.25.0.1
Note 9 - Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Goodwill [Table Text Block]

(Dollar amount in thousands)

    

Balance at December 31, 2022

 $31,735 

Measurement period adjustment

  4,621 

Balance at December 31, 2023

  36,356 

Balance at December 31, 2024

 $36,356 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

(Dollar amounts in thousands)

     

Remaining

2025

 $998 
 

2026

  968 
 

2027

  691 
 

2028

  665 
 

2029

  582 
 

Thereafter

  1,707 
 

Total

 $5,611 
Servicing Asset at Amortized Cost [Table Text Block]

(Dollar amounts in thousands)

 

2024

  

2023

 
         

Beginning of year

 $1,636  $2,072 

Servicing retained from loan sales

  58   60 

Amortization

  (197)  (496)
         

End of year

 $1,497  $1,636 
v3.25.0.1
Note 10 - Deposits (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Time Deposit Maturities [Table Text Block]

(Dollar amounts in thousands)

    

2025

 $208,881 

2026

  7,877 

2027

  28,055 

2028

  1,883 

2029

  1,008 

Total

 $247,704 
v3.25.0.1
Note 11 - Short-term Borrowings (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Short-Term Debt [Table Text Block]

 

 

2024

  

2023

 
(Dollar amounts in thousands)        

Balance at year-end

 $172,400  $163,000 

Average balance outstanding

 $122,506  $101,088 

Maximum month-end balance

 $172,400  $163,000 

Weighted-average rate at year-end

  4.42%  5.47%

Weighted-average rate during the year

  5.40%  5.33%
v3.25.0.1
Note 12 - Other Borrowings (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Debt [Table Text Block]

(Dollar amounts in thousands)

        

Description

 

2024

  

2023

 

Finance lease liabilities

 $3,412  $3,614 

Junior subordinated debt

  8,248   8,248 
         

Total

 $11,660  $11,862 
v3.25.0.1
Note 13 - Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

(Dollar amounts in thousands)

 

2024

  

2023

 
         

Current payable

 $2,627  $4,092 

Deferred

  198   (705)
         

Total provision

 $2,825  $3,387 
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

(Dollar amounts in thousands)

 

2024

  

2023

 
         

Deferred tax assets:

        

Allowance for credit losses

 $4,714  $4,469 

Supplemental retirement plan

  839   959 

Investment security basis adjustment

  18   18 

Nonaccrual interest income

  533   387 

Accrued compensation

  443   494 

Deferred origination fees, net

  -   878 

Net unrealized loss on AFS securities

  5,336   4,277 

Lease liability

  802   111 

Acquisition fair value adjustments

  64   77 

Other

  394   374 

Gross deferred tax assets

  13,143   12,044 
         

Deferred tax liabilities:

        

Premises and equipment

  1,041   961 

Deferred origination fees, net

  268   - 

Net unrealized gain on equity securities

  19   27 

FHLB stock dividends

  64   115 

Intangibles

  478   478 

Mortgage servicing rights

  314   344 

Right of use assets

  758   843 

Other

  103   39 

Gross deferred tax liabilities

  3,045   2,807 
         

Net deferred tax assets

 $10,098  $9,237 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

 

 

2024

  

2023

 
      

% of

      

% of

 
      

Pretax

      

Pretax

 
(Dollar amounts in thousands) 

Amount

  

Income

  

Amount

  

Income

 
                 
                 

Provision at statutory rate

 $3,852   21.0% $4,358   21.0%

Tax-exempt income

  (1,088)  (5.9)%  (1,044)  (5.0)%

Nondeductible interest expense

  42   0.2%  22   0.1%

Other

  19   0.1%  51   0.1%

Actual tax expense and effective rate

 $2,825   15.4% $3,387   16.2%
v3.25.0.1
Note 14 - Employee Benefits (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Nonvested Restricted Stock Shares Activity [Table Text Block]
  

Vesting contingent on service conditions - payable in stock or cash

  

Vesting contingent on service conditions - payable in stock

  

Vesting contingent on performance and service conditions - payable in stock

 
  

Number of nonvested shares

  

Weighted-average grant-date fair value

  

Number of nonvested shares

  

Weighted-average grant-date fair value

  

Number of nonvested shares

  

Weighted-average grant-date fair value

 
                         

Nonvested at January 1, 2024

  78,573  $25.95   -  $-   -  $- 

Granted

  -   -   26,417   24.02   44,121   22.35 

Vested

  (19,745)  23.62   -   -   -   - 

Forfeited

  (24,829)  20.07   -   -   -   - 

Nonvested at December 31, 2024

  33,999  $26.93   26,417  $24.02   44,121  $22.35 
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
  

2024

 

Expected volatility

  21.31% - 60.78%

Average volatility

  32.73%

Expected dividends

  0%

Expected term (in years)

  2.40 

Risk-free rate

  3.86%
v3.25.0.1
Note 15 - Commitments and Contingent Liabilities (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Other Commitments [Table Text Block]

(Dollar amounts in thousands)

 

December 31, 2024

  

December 31, 2023

 
         

Commitments to extend credit

 $468,006  $418,952 

Standby letters of credit

  798   5,884 
         

Total

 $468,804  $424,836 
Lease, Cost [Table Text Block]
  

2024

  

2023

 

Finance lease cost:

        

Amortization of right-of-use asset

 $248  $248 

Interest Expense

  106   112 

Other

  43   47 

Operating lease cost

  218   216 

Total lease cost

 $615  $623 
Lease, Term and Discount Rate [Table Text Block]
  

2024

  

2023

 
  

Operating

  

Finance

  

Operating

  

Finance

 

Weighted-average term (years)

  3.6   13.6   4.2   14.6 

Weighted-average discount rate

  2.1%  3.0%  1.9%  3.0%
Operating and Finance Lease, Liability, Maturity [Table Text Block]
  

Operating

  

Finance

 

Undiscounted cash flows due within:

        

2025

 $169  $314 

2026

  134   320 

2027

  27   320 

2028

  27   320 

2029

  27   320 

2030 and thereafter

  41   2,566 

Total undiscounted cash flows

  425   4,160 
         

Impact of present value discount

  (19)  (748)
         

Total

 $406  $3,412 
v3.25.0.1
Note 17 - Regulatory Capital (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]
  

As of December 31, 2024

 
  

Leverage

  

Tier 1 Risk Based

  

Common Equity Tier 1

  

Total Risk Based

 

The Middlefield Banking Company

  10.70%  11.99%  11.99%  13.24%

Middlefield Banc Corp.

  10.86%  12.28%  11.78%  13.54%

Adequately capitalized ratio

  4.00%  6.00%  4.50%  8.00%

Adequately capitalized ratio plus fully phased-in capital conservation buffer

  4.00%  8.50%  7.00%  10.50%

Well-capitalized ratio (Bank only)

  5.00%  8.00%  6.50%  10.00%
  

As of December 31, 2023

 
  

Leverage

  

Tier 1 Risk Based

  

Common Equity Tier 1

  

Total Risk Based

 

The Middlefield Banking Company

  10.48%  11.82%  11.82%  13.08%

Middlefield Banc Corp.

  10.68%  12.18%  11.66%  13.43%

Adequately capitalized ratio

  4.00%  6.00%  4.50%  8.00%

Adequately capitalized ratio plus fully phased-in capital conservation buffer

  4.00%  8.50%  7.00%  10.50%

Well-capitalized ratio (Bank only)

  5.00%  8.00%  6.50%  10.00%
v3.25.0.1
Note 18 - Related Party Transaction (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Related Party Transactions [Table Text Block]

(Dollars in thousands)

 

December 31, 2024

  

December 31, 2023

 

Beginning balance

 $24,185  $2,057 

New loans

  3,362   23,922 

Repayments

  (1,377)  (1,794)

Effect of change in related party status

  (56)  - 

Ending balance

 $26,114  $24,185 
v3.25.0.1
Note 19 - Segment Reporting (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
  

2024

  

2023

 
      

Reconciling

          

Reconciling

     

(Dollar amounts in thousands)

 

Bank

  

Items

  

Total

  

Bank

  

Items

  

Total

 
                         

Net interest income

 $61,275  $(595) $60,680  $65,805  $(602) $65,203 

Noninterest income

  7,253   (40)  7,213   6,793   (102)  6,691 

Total revenue

  68,528   (635)  67,893   72,598   (704)  71,894 

Provision for credit losses

  2,008   -   2,008   3,002   -   3,002 

Salaries and employee benefits

  23,567   1,074   24,641   23,760   751   24,511 

Occupancy expenses

  2,376   -   2,376   2,566   -   2,566 

Data processing costs

  4,740   -   4,740   4,588   -   4,588 

Other noninterest expense (1)

  12,955   2,829   15,784   13,863   2,609   16,472 

Income tax provision (benefit)

  3,778   (953)  2,825   4,241   (854)  3,387 

Net income

 $19,104  $(3,585) $15,519  $20,578  $(3,210) $17,368 

Total assets

 $1,851,688  $1,671  $1,853,359  $1,820,224  $2,659  $1,822,883 
v3.25.0.1
Note 20 - Parent Company (Tables)
12 Months Ended
Dec. 31, 2024
Notes Tables  
Condensed Balance Sheet [Table Text Block]

CONDENSED BALANCE SHEET

 

(Dollar amounts in thousands)

 
  

December 31,

 
  

2024

  

2023

 

ASSETS

        

Cash and due from banks

 $4,036  $4,065 

Other investments

  503   544 

Investment in nonbank subsidiary

  1   1 

Investment in bank subsidiary

  213,720   208,098 

Other assets

  1,168   2,125 

TOTAL ASSETS

 $219,428  $214,833 
         

LIABILITIES

        

Other borrowings

 $8,248  $8,248 

Other liabilities

  618   904 

TOTAL LIABILITIES

  8,866   9,152 
         

STOCKHOLDERS' EQUITY

  210,562   205,681 
         

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 $219,428  $214,833 

 

Condensed Income Statement [Table Text Block]

CONDENSED STATEMENT OF OPERATIONS

(Dollar amounts in thousands)

  

Year Ended December 31,

 
  

2024

  

2023

 

INCOME

        

Dividends from bank subsidiary

 $9,500  $17,000 

Loss on equity securities

  (40)  (100)

Other income

  2   3 

Total income

  9,462   16,903 
         

EXPENSES

        

Interest expense

  597   605 

Salaries and employee benefits

  1,074   751 

Ohio state franchise tax

  1,583   1,578 

Other expense

  1,246   1,032 

Total expenses

  4,500   3,966 
         

Income before income taxes

  4,962   12,937 
         

Income taxes

  (953)  (854)
         

Income before equity in undistributed net income of subsidiaries

  5,915   13,791 
         

Equity in undistributed net income of subsidiaries

  9,604   3,578 
         

NET INCOME

 $15,519  $17,368 
         

COMPREHENSIVE INCOME

 $11,536  $23,422 
Condensed Cash Flow Statement [Table Text Block]

CONDENSED STATEMENT OF CASH FLOWS

(Dollar amounts in thousands)

  

Year Ended December 31,

 
  

2024

  

2023

 

OPERATING ACTIVITIES

        

Net income

 $15,519  $17,368 

Adjustments to reconcile net income to net cash provided by operating activities:

        

Equity in undistributed net income of subsidiaries

  (9,604)  (3,578)

Stock-based compensation, net

  374   260 

Loss on equity securities

  41   100 

Other, net

  1,153   1,084 

Net cash provided by operating activities

  7,483   15,234 
         

FINANCING ACTIVITIES

        

Repurchase of common shares

  (1,055)  (4,506)

Cash dividends

  (6,457)  (6,864)

Net cash used in financing activities

  (7,512)  (11,370)
         

Increase (decrease) in cash

  (29)  3,864 
         

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

  4,065   201 
         

CASH AND CASH EQUIVALENTS AT END OF YEAR

 $4,036  $4,065 
v3.25.0.1
Note 1 - Summary of Significant Accounting Policies (Details Textual)
Dec. 01, 2022
USD ($)
shares
Dec. 31, 2024
USD ($)
Jun. 30, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
Servicing Asset at Fair Value, Amount   $ 197,400,000   $ 210,300,000  
Mortgage Loans in Process of Foreclosure, Amount   $ 352,000   $ 228,000  
Core Deposits [Member]          
Finite-Lived Intangible Asset, Useful Life (Year)   10 years   10 years  
Minimum [Member] | Furniture and Fixtures [Member]          
Property, Plant and Equipment, Useful Life (Year)   3 years      
Minimum [Member] | Building and Building Improvements [Member]          
Property, Plant and Equipment, Useful Life (Year)   3 years      
Maximum [Member] | Furniture and Fixtures [Member]          
Property, Plant and Equipment, Useful Life (Year)   20 years      
Maximum [Member] | Building and Building Improvements [Member]          
Property, Plant and Equipment, Useful Life (Year)   40 years      
Commercial Portfolio Segment [Member] | Minimum [Member]          
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process   $ 250,000 $ 150,000    
LBSI Insurance, LLC [Member]          
Business Acquisition, Percentage of Voting Interests Acquired         100.00%
Liberty Bancshares Inc [Member]          
Business Combination, Amount Shares Issued to Acquiree's Shareholders Per Share (in shares) | shares 2.752        
Stock Issued During Period, Shares, Acquisitions (in shares) | shares 2,561,513        
Business Combination, Consideration Transferred, Total $ 73,300,000        
Number of Branches 6        
v3.25.0.1
Note 2 - Revenue Recognition (Details Textual)
12 Months Ended
Dec. 31, 2024
Revenue from Interest Income and Noninterest Income, Percent 94.40%
v3.25.0.1
Note 2 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Loss on equity securities [1] $ (9,000) $ (161,000)
Loss on sale of other real estate owned [1] 0 (170,000)
Earnings on bank-owned life insurance [1] 930,000 823,000
Gain on sale of loans [1] 199,000 97,000
Revenue from investment services 916,000 743,000
Miscellaneous fee income 403,000 380,000
Gross rental income [1] 68,000 421,000
Other income 799,000 680,000
Total noninterest income 7,213,000 6,691,000
Overdraft Fees [Member]    
Noninterest income revenue 1,001,000 995,000
ATM Banking Fees [Member]    
Noninterest income revenue 1,899,000 1,928,000
Service Charge and Other Fees [Member]    
Noninterest income revenue $ 1,007,000 $ 955,000
[1] Not within scope of ASC 606
v3.25.0.1
Note 3 - Earnings Per Share (Details Textual) - shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Treasury Stock, Common, Shares (in shares) 1,879,310 1,835,452
Treasury Stock, Shares, Acquired (in shares) 43,858 164,221
Restricted Stock [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding, Number (in shares) 109,831 78,573
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) 99,033 55,790
v3.25.0.1
Note 3 - Earnings Per Share - Shares Used in Calculation of Earnings Per Share (Details) - shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Weighted-average common shares outstanding (in shares) 9,947,420 9,925,689
Average treasury stock shares (in shares) (1,872,120) (1,822,459)
Weighted-average common shares and common stock equivalents used to calculate basic earnings per share (in shares) 8,075,300 8,103,230
Additional common stock equivalents (stock options and restricted stock) used to calculate diluted earnings per share (in shares) 10,798 22,783
Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share (in shares) 8,086,098 8,126,013
v3.25.0.1
Note 4 - Accumulated Other Comprehensive (Loss) Income (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax $ 0 $ 0
v3.25.0.1
Note 4 - Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Balance $ 205,681 $ 197,691
Other comprehensive loss (3,983) 6,054
Balance 210,562 205,681
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member]    
Balance (16,090) (22,144)
Other comprehensive loss [1] (3,983) 6,054
Balance $ (20,073) $ (16,090)
[1] All amounts are net of tax.
v3.25.0.1
Note 5 - Fair Value Measurements (Details Textual) - USD ($)
1 Months Ended 12 Months Ended
Dec. 31, 2006
Dec. 31, 2024
Dec. 31, 2023
Estimated Selling Costs of Impaired Loans   $ 968,000 $ 843,000
Mandatorily Redeemable Securities   $ 8,000,000  
Notes Payable, Other Payables [Member]      
Debt Instrument, Basis Spread on Variable Rate 1.67% 1.67%  
Other Borrowings [Member]      
Notes Payable, Total   $ 8,200,000 $ 8,200,000
v3.25.0.1
Note 5 - Fair Value Measurements - Assets Measured on a Recurring Basis (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Total debt securities $ 165,802,000 $ 170,779,000
Equity securities 855,000 955,000
Investment securities available for sale, at fair value 165,802,000 170,779,000
Subordinated Debt Securities [Member]    
Total debt securities 32,469,000 31,919,000
Investment securities available for sale, at fair value 32,469,000 31,919,000
Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member]    
Total debt securities 8,367,000 6,318,000
Investment securities available for sale, at fair value 8,367,000 6,318,000
Fair Value, Recurring [Member]    
Total debt securities 165,802,000 170,779,000
Equity securities 753,000 814,000
Total 166,555,000 171,593,000
Investment securities available for sale, at fair value 165,802,000 170,779,000
Fair Value, Recurring [Member] | Subordinated Debt Securities [Member]    
Total debt securities 32,469,000 31,919,000
Investment securities available for sale, at fair value 32,469,000 31,919,000
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member]    
Total debt securities 124,966,000 132,542,000
Investment securities available for sale, at fair value 124,966,000 132,542,000
Fair Value, Recurring [Member] | Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member]    
Total debt securities 8,367,000 6,318,000
Investment securities available for sale, at fair value 8,367,000 6,318,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Total debt securities 0 0
Equity securities 753,000 814,000
Total 753,000 814,000
Investment securities available for sale, at fair value 0 0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Subordinated Debt Securities [Member]    
Total debt securities 0 0
Investment securities available for sale, at fair value 0 0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US States and Political Subdivisions Debt Securities [Member]    
Total debt securities 0 0
Investment securities available for sale, at fair value 0 0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member]    
Total debt securities 0 0
Investment securities available for sale, at fair value 0 0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Total debt securities 159,163,000 161,978,000
Equity securities 0 0
Total 159,163,000 161,978,000
Investment securities available for sale, at fair value 159,163,000 161,978,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Subordinated Debt Securities [Member]    
Total debt securities 25,830,000 23,118,000
Investment securities available for sale, at fair value 25,830,000 23,118,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member]    
Total debt securities 124,966,000 132,542,000
Investment securities available for sale, at fair value 124,966,000 132,542,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member]    
Total debt securities 8,367,000 6,318,000
Investment securities available for sale, at fair value 8,367,000 6,318,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Total debt securities 6,639,000 8,801,000
Equity securities 0 0
Total 6,639,000 8,801,000
Investment securities available for sale, at fair value 6,639,000 8,801,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Subordinated Debt Securities [Member]    
Total debt securities 6,639,000 8,801,000
Investment securities available for sale, at fair value 6,639,000 8,801,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US States and Political Subdivisions Debt Securities [Member]    
Total debt securities 0 0
Investment securities available for sale, at fair value 0 0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member]    
Total debt securities 0 0
Investment securities available for sale, at fair value $ 0 $ 0
v3.25.0.1
Note 5 - Fair Value Measurements - Fair Value Reconciliation of Level 3 Assets (Details) - Subordinated Debt Obligations [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Beginning of year $ 8,801 $ 8,737
Purchases 0 1,000
Transfers out of Level III (1) [1] (2,250) (1,000)
Net change in unrealized loss on investment securities available-for-sale 88 64
End of year $ 6,639 $ 8,801
[1] Transfers between hierarchy levels are based on the availability of sufficient observable inputs to meet Level II versus Level III criteria. The level designation of each financial instrument is reassessed at the end of each period.
v3.25.0.1
Note 5 - Fair Value Measurements - Assets Measured on a Nonrecurring Basis (Details) - Fair Value, Recurring [Member] - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Collateral-dependent loans $ 3,321 $ 3,361
Fair Value, Inputs, Level 1 [Member]    
Collateral-dependent loans 0 0
Fair Value, Inputs, Level 2 [Member]    
Collateral-dependent loans 0 0
Fair Value, Inputs, Level 3 [Member]    
Collateral-dependent loans $ 3,321 $ 3,361
v3.25.0.1
Note 5 - Fair Value Measurements - Additional Quantitative Information About Assets Measured at Fair Value on Non-recurring Basis (Details) - Fair Value, Nonrecurring [Member] - Fair Value, Inputs, Level 3 [Member] - Appraisal of Collateral [Member]
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Collateral-dependent loans $ 3,321 $ 3,361
Measurement Input, Appraised Value [Member] | Minimum [Member]    
Collateral-dependent loans, range   0.201
Measurement Input, Appraised Value [Member] | Weighted Average [Member]    
Collateral-dependent loans, range 0.239  
v3.25.0.1
Note 5 - Fair Value Measurements - Estimated Fair Value of the Company's Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financial assets:    
Servicing Asset at Fair Value, Amount $ 197,400 $ 210,300
Reported Value Measurement [Member]    
Financial assets:    
Net loans 1,497,167 1,456,437
Servicing Asset at Fair Value, Amount 1,497 1,636
Financial liabilities:    
Non-maturing deposits 1,197,989 1,092,287
Time deposits 247,704 334,315
Other borrowings 11,660 11,862
Estimate of Fair Value Measurement [Member]    
Financial assets:    
Net loans 1,462,650 1,370,657
Servicing Asset at Fair Value, Amount 2,522 2,781
Financial liabilities:    
Non-maturing deposits 1,197,989 1,092,287
Time deposits 245,999 331,638
Other borrowings 11,660 11,862
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]    
Financial assets:    
Net loans 0 0
Servicing Asset at Fair Value, Amount 0 0
Financial liabilities:    
Non-maturing deposits 1,197,989 1,092,287
Time deposits 0 0
Other borrowings 0 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]    
Financial assets:    
Net loans 0 0
Servicing Asset at Fair Value, Amount 0 0
Financial liabilities:    
Non-maturing deposits 0 0
Time deposits 0 0
Other borrowings 0 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]    
Financial assets:    
Net loans 1,462,650 1,370,657
Servicing Asset at Fair Value, Amount 2,522 2,781
Financial liabilities:    
Non-maturing deposits 0 0
Time deposits 245,999 331,638
Other borrowings $ 11,660 $ 11,862
v3.25.0.1
Note 6 - Investment and Equity Securities (Details Textual)
12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss $ 1,500,000 $ 1,600,000
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Number of Positions 39  
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions 163  
Equity Securities, FV-NI, Current $ 855,000 955,000
Equity Securities, FV-NI, Unrealized Gain (Loss) [1] (9,000) (161,000)
Equity Securities, FV-NI, Realized Gain (Loss) $ 71,000 $ 0
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Interest Receivable and Other Assets Interest Receivable and Other Assets
Asset Pledged as Collateral [Member] | Deposits [Member]    
Financial Instruments, Owned, at Fair Value $ 112,100,000 $ 118,800,000
[1] Not within scope of ASC 606
v3.25.0.1
Note 6 - Investment and Equity Securities- Amortized Cost and Fair Values of Securities Available for Sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Amortized cost $ 191,211 [1] $ 191,146 [2]
Gross unrealized gains 72 223
Gross unrealized losses (25,481) (20,590)
Investment securities available for sale, at fair value 165,802 170,779
Subordinated Debt Securities [Member]    
Amortized cost 34,300 [1] 34,300 [2]
Gross unrealized gains 67 70
Gross unrealized losses (1,898) (2,451)
Investment securities available for sale, at fair value 32,469 31,919
Nontaxable Municipal Bonds [Member]    
Amortized cost 147,767 [1] 149,881 [2]
Gross unrealized gains 4 153
Gross unrealized losses (22,805) (17,492)
Investment securities available for sale, at fair value 124,966 132,542
Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member]    
Amortized cost 9,144 [1] 6,965 [2]
Gross unrealized gains 1 0
Gross unrealized losses (778) (647)
Investment securities available for sale, at fair value $ 8,367 $ 6,318
[1] Amortized cost excludes accrued interest receivable of $1.7 million for the period ending June 30, 2024.
[2] Amortized cost excludes accrued interest receivable of $1.7 million for the period ending December 31, 2023.
v3.25.0.1
Note 6 - Investment and Equity Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Due in one year or less, amortized costs $ 590  
Due in one year or less, fair value 590  
Due after one year through five years, amortized costs 6,177  
Due after one year through five years, fair value 5,991  
Due after five years through ten years, amortized costs 57,369  
Due after five years through ten years, fair value 54,247  
Due after ten years, amortized costs 127,075  
Due after ten years, fair value 104,974  
Amortized costs 191,211 [1] $ 191,146 [2]
Fair Value $ 165,802 $ 170,779
[1] Amortized cost excludes accrued interest receivable of $1.7 million for the period ending June 30, 2024.
[2] Amortized cost excludes accrued interest receivable of $1.7 million for the period ending December 31, 2023.
v3.25.0.1
Note 6 - Investment and Equity Securities - Gross Unrealized Losses and Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Less than Twelve Months, Fair Value $ 28,074 $ 2,575
Less than Twelve Months, Gross Unrealized Losses (904) (17)
Twelve Months or Greater, Fair Value 128,372 141,556
Twelve Months or Greater, Gross Unrealized Losses (24,577) (20,573)
Total, Fair Value 156,446 144,131
Total, Gross Unrealized Losses (25,481) (20,590)
Subordinated Debt Securities [Member]    
Less than Twelve Months, Fair Value 10,632 994
Less than Twelve Months, Gross Unrealized Losses (368) (6)
Twelve Months or Greater, Fair Value 20,770 29,356
Twelve Months or Greater, Gross Unrealized Losses (1,530) (2,445)
Total, Fair Value 31,402 30,350
Total, Gross Unrealized Losses (1,898) (2,451)
Nontaxable Municipal Bonds [Member]    
Less than Twelve Months, Fair Value 15,456 1,386
Less than Twelve Months, Gross Unrealized Losses (487) (10)
Twelve Months or Greater, Fair Value 102,484 106,078
Twelve Months or Greater, Gross Unrealized Losses (22,318) (17,482)
Total, Fair Value 117,940 107,464
Total, Gross Unrealized Losses (22,805) (17,492)
Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member]    
Less than Twelve Months, Fair Value 1,986 195
Less than Twelve Months, Gross Unrealized Losses (49) (1)
Twelve Months or Greater, Fair Value 5,118 6,122
Twelve Months or Greater, Gross Unrealized Losses (729) (646)
Total, Fair Value 7,104 6,317
Total, Gross Unrealized Losses $ (778) $ (647)
v3.25.0.1
Note 7 - Loans and Related Allowance for Credit Losses (Details Textual) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Accrued Interest, after Allowance for Credit Loss $ 5,500,000 $ 5,500,000  
Financing Receivable, Deferred Commitment Fee 8,200,000 9,200,000  
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) $ 754,000    
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease), Percentage 3.50%    
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] $ 1,519,614,000 1,478,130,000  
Financing Receivable, Nonaccrual, Interest Income 2,300,000 689,000  
Financing Receivable, Allowance for Credit Loss 22,447,000 [1],[2] 21,693,000 [1],[2] $ 14,438,000
Provision for Loan, Lease, and Other Losses $ 2,190,000 $ 1,842,000  
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Interest Receivable and Other Assets Interest Receivable and Other Assets  
Threshold For Loans Evaluated For Impairment [Member]      
Financing Receivable, before Allowance for Credit Loss, Total $ 750,000    
Threshold For Loans Evaluated For Impairment [Member] | Criticized Relationships [Member]      
Financing Receivable, before Allowance for Credit Loss, Total 150,000    
Unfunded Loan Commitment [Member]      
Financing Receivable, Allowance for Credit Loss 1,600,000 $ 1,800,000  
Provision for Loan, Lease, and Other Losses $ 182,000 $ 1,800,000  
[1] Accrued interest of $5.5 million and $5.5 million at December 31, 2024 and December 31, 2023, respectively, is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheets.
[2] Unearned income, including net deferred loan fees and costs and unamortized premiums and discounts, totaled $8.2 million and $9.2 million at December 31, 2024 and 2023, respectively.
v3.25.0.1
Note 7 - Loans and Related Allowance for Credit Losses - Primary Segments of the Loan Portfolio (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Loans [1],[2] $ 1,519,614 $ 1,478,130  
Less: Allowance for credit losses (22,447) [1],[2] (21,693) [1],[2] $ (14,438)
Net loans [1],[2] 1,497,167 1,456,437  
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member]      
Loans [1],[2] 181,447 183,545  
Less: Allowance for credit losses (2,100) (2,668) (2,203)
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member]      
Loans [1],[2] 412,291 401,580  
Less: Allowance for credit losses (8,364) (4,480) (5,597)
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member]      
Loans [1],[2] 89,849 82,506  
Less: Allowance for credit losses (1,310) (1,796) (662)
Residential Portfolio Segment [Member]      
Loans [1],[2] 353,442 328,854  
Less: Allowance for credit losses (5,236) (5,450) (2,047)
Commercial And Industrial [Member]      
Loans [1],[2] 229,034 221,508  
Less: Allowance for credit losses (2,427) (4,377) (1,483)
Home Equity Lines of Credit [Member]      
Loans [1],[2] 143,379 127,818  
Less: Allowance for credit losses (897) (750) (1,753)
Construction and Other [Member]      
Loans [1],[2] 103,608 125,105  
Less: Allowance for credit losses (2,052) (1,990) (609)
Consumer Portfolio Segment [Member]      
Loans [1],[2] 6,564 7,214  
Less: Allowance for credit losses $ (61) $ (182) $ (84)
[1] Accrued interest of $5.5 million and $5.5 million at December 31, 2024 and December 31, 2023, respectively, is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheets.
[2] Unearned income, including net deferred loan fees and costs and unamortized premiums and discounts, totaled $8.2 million and $9.2 million at December 31, 2024 and 2023, respectively.
v3.25.0.1
Note 7 - Loans and Related Allowance for Credit Losses - Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Beginning balance $ 21,693 [1],[2] $ 14,438
Charge-offs (1,646) (302)
Recoveries 210 333
Provision 2,190 1,842
Ending balance [1],[2] 22,447 21,693
Recoveries 210 333
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]    
Beginning balance   5,382
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member]    
Beginning balance 2,668 2,203
Charge-offs (45) (46)
Recoveries 11 5
Provision (534) (305)
Ending balance 2,100 2,668
Recoveries 11 5
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]    
Beginning balance   811
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member]    
Beginning balance 4,480 5,597
Charge-offs (1,341) 0
Recoveries 0 0
Provision 5,225 89
Ending balance 8,364 4,480
Recoveries 0 0
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]    
Beginning balance   (1,206)
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member]    
Beginning balance 1,796 662
Charge-offs 0 0
Recoveries 0 0
Provision (486) 543
Ending balance 1,310 1,796
Recoveries 0 0
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]    
Beginning balance   591
Residential Portfolio Segment [Member]    
Beginning balance 5,450 2,047
Charge-offs 0 (108)
Recoveries 0 13
Provision (214) 754
Ending balance 5,236 5,450
Recoveries 0 13
Residential Portfolio Segment [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]    
Beginning balance   2,744
Commercial And Industrial [Member]    
Beginning balance 4,377 1,483
Charge-offs (215) (85)
Recoveries 55 38
Provision (1,790) 621
Ending balance 2,427 4,377
Recoveries 55 38
Commercial And Industrial [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]    
Beginning balance   2,320
Home Equity Lines of Credit [Member]    
Beginning balance 750 1,753
Charge-offs (7) 0
Recoveries 1 70
Provision 153 (42)
Ending balance 897 750
Recoveries 1 70
Home Equity Lines of Credit [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]    
Beginning balance   (1,031)
Construction and Other [Member]    
Beginning balance 1,990 609
Charge-offs 0 0
Recoveries 0 0
Provision 62 425
Ending balance 2,052 1,990
Recoveries 0 0
Construction and Other [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]    
Beginning balance   956
Consumer Portfolio Segment [Member]    
Beginning balance 182 84
Charge-offs (38) (63)
Recoveries 143 207
Provision (226) (243)
Ending balance 61 182
Recoveries $ 143 207
Consumer Portfolio Segment [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]    
Beginning balance   $ 197
[1] Accrued interest of $5.5 million and $5.5 million at December 31, 2024 and December 31, 2023, respectively, is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheets.
[2] Unearned income, including net deferred loan fees and costs and unamortized premiums and discounts, totaled $8.2 million and $9.2 million at December 31, 2024 and 2023, respectively.
v3.25.0.1
Note 7 - Loans and Related Allowance for Credit Losses - Classes of the Loan Portfolio Summarized by Credit Quality (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Term loans amortized, current year $ 153,526 $ 241,600
Term loans amortized, one year before 254,581 290,633
Term loans amortized, two years before 260,086 207,871
Term loans amortized, three years before 182,142 126,649
Term loans amortized, four years before 111,764 85,500
Term loans amortized, prior 321,137 310,143
Term loans amortized, revolving 236,378 215,734
Loans [1],[2] 1,519,614 1,478,130
Current-period gross charge-offs, total 1,646 302
Loss (153,526) (241,600)
Loss (254,581) (290,633)
Loss (260,086) (207,871)
Loss (182,142) (126,649)
Loss (111,764) (85,500)
Loss (321,137) (310,143)
Loss (236,378) (215,734)
Loss [1],[2] (1,519,614) (1,478,130)
Pass [Member]    
Term loans amortized, current year 150,041 241,587
Term loans amortized, one year before 253,841 279,671
Term loans amortized, two years before 248,224 204,223
Term loans amortized, three years before 180,483 124,701
Term loans amortized, four years before 111,425 74,005
Term loans amortized, prior 282,320 276,267
Term loans amortized, revolving 233,892 203,937
Loans 1,460,226 1,404,391
Loss (150,041) (241,587)
Loss (253,841) (279,671)
Loss (248,224) (204,223)
Loss (180,483) (124,701)
Loss (111,425) (74,005)
Loss (282,320) (276,267)
Loss (233,892) (203,937)
Loss (1,460,226) (1,404,391)
Special Mention [Member]    
Term loans amortized, current year 2,263 0
Term loans amortized, one year before 0 8,352
Term loans amortized, two years before 3,340 2,371
Term loans amortized, three years before 389 0
Term loans amortized, four years before 0 278
Term loans amortized, prior 2,995 2,996
Term loans amortized, revolving 832 184
Loans 9,819 14,181
Loss (2,263) 0
Loss 0 (8,352)
Loss (3,340) (2,371)
Loss (389) 0
Loss 0 (278)
Loss (2,995) (2,996)
Loss (832) (184)
Loss (9,819) (14,181)
Substandard [Member]    
Term loans amortized, current year 1,222 13
Term loans amortized, one year before 740 2,610
Term loans amortized, two years before 8,522 630
Term loans amortized, three years before 1,270 1,948
Term loans amortized, four years before 339 7,330
Term loans amortized, prior 35,822 30,884
Term loans amortized, revolving 1,654 11,613
Loans 49,569 55,028
Loss (1,222) (13)
Loss (740) (2,610)
Loss (8,522) (630)
Loss (1,270) (1,948)
Loss (339) (7,330)
Loss (35,822) (30,884)
Loss (1,654) (11,613)
Loss (49,569) (55,028)
Doubtful [Member]    
Term loans amortized, current year   0
Term loans amortized, one year before   0
Term loans amortized, two years before   647
Term loans amortized, three years before   0
Term loans amortized, four years before   3,887
Term loans amortized, prior   0
Term loans amortized, revolving   0
Loans   4,534
Loss   0
Loss   0
Loss   (647)
Loss   0
Loss   (3,887)
Loss   0
Loss   0
Loss   (4,534)
Unlikely to be Collected Financing Receivable [Member]    
Term loans amortized, current year   (0)
Term loans amortized, one year before   (0)
Term loans amortized, two years before   (0)
Term loans amortized, three years before   (0)
Term loans amortized, four years before   (0)
Term loans amortized, prior   4
Term loans amortized, revolving   (0)
Loans   4
Loss   0
Loss   0
Loss   0
Loss   0
Loss   0
Loss   (4)
Loss   0
Loss   (4)
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member]    
Term loans amortized, current year 13,398 14,634
Term loans amortized, one year before 20,265 39,477
Term loans amortized, two years before 37,924 41,609
Term loans amortized, three years before 39,414 26,599
Term loans amortized, four years before 25,532 12,463
Term loans amortized, prior 40,520 46,101
Term loans amortized, revolving 4,394 2,662
Loans [1],[2] 181,447 183,545
Current-period gross charge-offs current 0 0
Current-period gross charge-offs one year before 0 0
Current-period gross charge-offs, two years before 0 0
Current-period gross charge-offs, three years before 0 0
Current-period gross charge-offs, four years before 0 0
Current-period gross charge-offs, prior 45 46
Current-period gross charge-offs, revolving 0 0
Current-period gross charge-offs, total 45 46
Loss (13,398) (14,634)
Loss (20,265) (39,477)
Loss (37,924) (41,609)
Loss (39,414) (26,599)
Loss (25,532) (12,463)
Loss (40,520) (46,101)
Loss (4,394) (2,662)
Loss [1],[2] (181,447) (183,545)
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Pass [Member]    
Term loans amortized, current year 12,424 14,634
Term loans amortized, one year before 20,265 34,850
Term loans amortized, two years before 33,389 41,609
Term loans amortized, three years before 39,025 25,040
Term loans amortized, four years before 25,532 12,304
Term loans amortized, prior 39,393 41,976
Term loans amortized, revolving 4,394 2,662
Loans 174,422 173,075
Loss (12,424) (14,634)
Loss (20,265) (34,850)
Loss (33,389) (41,609)
Loss (39,025) (25,040)
Loss (25,532) (12,304)
Loss (39,393) (41,976)
Loss (4,394) (2,662)
Loss (174,422) (173,075)
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Special Mention [Member]    
Term loans amortized, current year 0 0
Term loans amortized, one year before 0 2,271
Term loans amortized, two years before 0 0
Term loans amortized, three years before 389 0
Term loans amortized, four years before 0 13
Term loans amortized, prior 772 799
Term loans amortized, revolving 0 0
Loans 1,161 3,083
Loss 0 0
Loss 0 (2,271)
Loss 0 0
Loss (389) 0
Loss 0 (13)
Loss (772) (799)
Loss 0 0
Loss (1,161) (3,083)
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Substandard [Member]    
Term loans amortized, current year 974 0
Term loans amortized, one year before 0 2,356
Term loans amortized, two years before 4,535 0
Term loans amortized, three years before 0 1,559
Term loans amortized, four years before 0 146
Term loans amortized, prior 355 3,326
Term loans amortized, revolving 0 0
Loans 5,864 7,387
Loss (974) 0
Loss 0 (2,356)
Loss (4,535) 0
Loss 0 (1,559)
Loss 0 (146)
Loss (355) (3,326)
Loss 0 0
Loss (5,864) (7,387)
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member]    
Term loans amortized, current year 7,542 43,393
Term loans amortized, one year before 63,559 97,606
Term loans amortized, two years before 102,849 41,606
Term loans amortized, three years before 49,644 22,707
Term loans amortized, four years before 20,230 41,529
Term loans amortized, prior 167,562 154,235
Term loans amortized, revolving 905 504
Loans [1],[2] 412,291 401,580
Current-period gross charge-offs current 0 0
Current-period gross charge-offs one year before 0 0
Current-period gross charge-offs, two years before 0 0
Current-period gross charge-offs, three years before 0 0
Current-period gross charge-offs, four years before 0 0
Current-period gross charge-offs, prior 1,341 0
Current-period gross charge-offs, revolving 0 0
Current-period gross charge-offs, total 1,341 (0)
Loss (7,542) (43,393)
Loss (63,559) (97,606)
Loss (102,849) (41,606)
Loss (49,644) (22,707)
Loss (20,230) (41,529)
Loss (167,562) (154,235)
Loss (905) (504)
Loss [1],[2] (412,291) (401,580)
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Pass [Member]    
Term loans amortized, current year 7,542 43,393
Term loans amortized, one year before 63,559 95,098
Term loans amortized, two years before 96,624 40,959
Term loans amortized, three years before 49,009 22,707
Term loans amortized, four years before 20,230 32,405
Term loans amortized, prior 133,530 127,469
Term loans amortized, revolving 905 504
Loans 371,399 362,535
Loss (7,542) (43,393)
Loss (63,559) (95,098)
Loss (96,624) (40,959)
Loss (49,009) (22,707)
Loss (20,230) (32,405)
Loss (133,530) (127,469)
Loss (905) (504)
Loss (371,399) (362,535)
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Special Mention [Member]    
Term loans amortized, current year 0 0
Term loans amortized, one year before 0 2,508
Term loans amortized, two years before 2,506 0
Term loans amortized, three years before 0 0
Term loans amortized, four years before 0 0
Term loans amortized, prior 2,002 2,197
Term loans amortized, revolving 0 0
Loans 4,508 4,705
Loss 0 0
Loss 0 (2,508)
Loss (2,506) 0
Loss 0 0
Loss 0 0
Loss (2,002) (2,197)
Loss 0 0
Loss (4,508) (4,705)
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Substandard [Member]    
Term loans amortized, current year 0 0
Term loans amortized, one year before 0 0
Term loans amortized, two years before 3,719 0
Term loans amortized, three years before 635 0
Term loans amortized, four years before 0 5,237
Term loans amortized, prior 32,030 24,569
Term loans amortized, revolving 0 0
Loans 36,384 29,806
Loss 0 0
Loss 0 0
Loss (3,719) 0
Loss (635) 0
Loss 0 (5,237)
Loss (32,030) (24,569)
Loss 0 0
Loss (36,384) (29,806)
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Doubtful [Member]    
Term loans amortized, current year   0
Term loans amortized, one year before   0
Term loans amortized, two years before   647
Term loans amortized, three years before   0
Term loans amortized, four years before   3,887
Term loans amortized, prior   0
Term loans amortized, revolving   0
Loans   4,534
Loss   0
Loss   0
Loss   (647)
Loss   0
Loss   (3,887)
Loss   0
Loss   0
Loss   (4,534)
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member]    
Term loans amortized, current year 2,930 29,218
Term loans amortized, one year before 36,113 25,776
Term loans amortized, two years before 21,978 4,267
Term loans amortized, three years before 7,437 10,453
Term loans amortized, four years before 10,057 1,391
Term loans amortized, prior 11,324 11,297
Term loans amortized, revolving 10 104
Loans [1],[2] 89,849 82,506
Current-period gross charge-offs current 0 0
Current-period gross charge-offs one year before 0 0
Current-period gross charge-offs, two years before 0 0
Current-period gross charge-offs, three years before 0 0
Current-period gross charge-offs, four years before 0 0
Current-period gross charge-offs, prior 0 0
Current-period gross charge-offs, revolving 0 0
Current-period gross charge-offs, total (0) (0)
Loss (2,930) (29,218)
Loss (36,113) (25,776)
Loss (21,978) (4,267)
Loss (7,437) (10,453)
Loss (10,057) (1,391)
Loss (11,324) (11,297)
Loss (10) (104)
Loss [1],[2] (89,849) (82,506)
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member] | Pass [Member]    
Term loans amortized, current year 2,930 29,218
Term loans amortized, one year before 36,113 25,776
Term loans amortized, two years before 21,978 4,267
Term loans amortized, three years before 7,437 10,453
Term loans amortized, four years before 10,057 1,391
Term loans amortized, prior 11,324 11,231
Term loans amortized, revolving 10 104
Loans 89,849 82,440
Loss (2,930) (29,218)
Loss (36,113) (25,776)
Loss (21,978) (4,267)
Loss (7,437) (10,453)
Loss (10,057) (1,391)
Loss (11,324) (11,231)
Loss (10) (104)
Loss (89,849) (82,440)
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member] | Special Mention [Member]    
Term loans amortized, current year 2,263  
Term loans amortized, one year before 0  
Term loans amortized, two years before 0  
Term loans amortized, three years before 0  
Term loans amortized, four years before 0  
Term loans amortized, prior 0  
Term loans amortized, revolving 832  
Loans 3,095  
Loss (2,263)  
Loss 0  
Loss 0  
Loss 0  
Loss 0  
Loss 0  
Loss (832)  
Loss (3,095)  
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member] | Substandard [Member]    
Term loans amortized, current year 34 0
Term loans amortized, one year before 169 0
Term loans amortized, two years before 115 0
Term loans amortized, three years before 635 0
Term loans amortized, four years before 0 0
Term loans amortized, prior 1,527 66
Term loans amortized, revolving 0 0
Loans 2,480 66
Loss (34) 0
Loss (169) 0
Loss (115) 0
Loss (635) 0
Loss 0 0
Loss (1,527) (66)
Loss 0 0
Loss (2,480) (66)
Residential Portfolio Segment [Member]    
Term loans amortized, current year 45,381 50,086
Term loans amortized, one year before 50,989 56,307
Term loans amortized, two years before 62,078 79,119
Term loans amortized, three years before 70,617 39,476
Term loans amortized, four years before 36,067 19,442
Term loans amortized, prior 88,019 83,752
Term loans amortized, revolving 291 672
Loans [1],[2] 353,442 328,854
Current-period gross charge-offs current 0 0
Current-period gross charge-offs one year before 0 0
Current-period gross charge-offs, two years before 0 0
Current-period gross charge-offs, three years before 0 0
Current-period gross charge-offs, four years before 0 0
Current-period gross charge-offs, prior 0 108
Current-period gross charge-offs, revolving 0 0
Current-period gross charge-offs, total (0) 108
Loss (45,381) (50,086)
Loss (50,989) (56,307)
Loss (62,078) (79,119)
Loss (70,617) (39,476)
Loss (36,067) (19,442)
Loss (88,019) (83,752)
Loss (291) (672)
Loss [1],[2] (353,442) (328,854)
Residential Portfolio Segment [Member] | Pass [Member]    
Term loans amortized, current year 45,347 50,086
Term loans amortized, one year before 50,820 56,180
Term loans amortized, two years before 61,963 78,909
Term loans amortized, three years before 69,982 39,476
Term loans amortized, four years before 36,067 19,418
Term loans amortized, prior 86,492 82,441
Term loans amortized, revolving 291 672
Loans 350,962 327,182
Loss (45,347) (50,086)
Loss (50,820) (56,180)
Loss (61,963) (78,909)
Loss (69,982) (39,476)
Loss (36,067) (19,418)
Loss (86,492) (82,441)
Loss (291) (672)
Loss (350,962) (327,182)
Residential Portfolio Segment [Member] | Special Mention [Member]    
Term loans amortized, current year 0  
Term loans amortized, one year before 0  
Term loans amortized, two years before 834  
Term loans amortized, three years before 0  
Term loans amortized, four years before 0  
Term loans amortized, prior 221  
Term loans amortized, revolving 0  
Loans 1,055  
Loss 0  
Loss 0  
Loss (834)  
Loss 0  
Loss 0  
Loss (221)  
Loss 0  
Loss (1,055)  
Residential Portfolio Segment [Member] | Substandard [Member]    
Term loans amortized, current year 214 0
Term loans amortized, one year before 10 127
Term loans amortized, two years before 0 210
Term loans amortized, three years before 0 0
Term loans amortized, four years before 305 24
Term loans amortized, prior 84 1,311
Term loans amortized, revolving 74 0
Loans 687 1,672
Loss (214) 0
Loss (10) (127)
Loss 0 (210)
Loss 0 0
Loss (305) (24)
Loss (84) (1,311)
Loss (74) 0
Loss (687) (1,672)
Commercial And Industrial [Member]    
Term loans amortized, current year 51,131 46,931
Term loans amortized, one year before 33,870 43,509
Term loans amortized, two years before 31,305 17,909
Term loans amortized, three years before 13,512 25,496
Term loans amortized, four years before 19,169 2,865
Term loans amortized, prior 4,972 7,405
Term loans amortized, revolving 75,075 77,393
Loans [1],[2] 229,034 221,508
Current-period gross charge-offs current 0 0
Current-period gross charge-offs one year before 180 0
Current-period gross charge-offs, two years before 23 75
Current-period gross charge-offs, three years before 12 0
Current-period gross charge-offs, four years before 0 6
Current-period gross charge-offs, prior 0 4
Current-period gross charge-offs, revolving 0 0
Current-period gross charge-offs, total 215 85
Loss (51,131) (46,931)
Loss (33,870) (43,509)
Loss (31,305) (17,909)
Loss (13,512) (25,496)
Loss (19,169) (2,865)
Loss (4,972) (7,405)
Loss (75,075) (77,393)
Loss [1],[2] (229,034) (221,508)
Commercial And Industrial [Member] | Pass [Member]    
Term loans amortized, current year 48,654 46,918
Term loans amortized, one year before 33,860 43,494
Term loans amortized, two years before 31,305 17,909
Term loans amortized, three years before 13,512 25,143
Term loans amortized, four years before 18,864 2,741
Term loans amortized, prior 4,888 6,533
Term loans amortized, revolving 74,169 66,842
Loans 225,252 209,580
Loss (48,654) (46,918)
Loss (33,860) (43,494)
Loss (31,305) (17,909)
Loss (13,512) (25,143)
Loss (18,864) (2,741)
Loss (4,888) (6,533)
Loss (74,169) (66,842)
Loss (225,252) (209,580)
Commercial And Industrial [Member] | Special Mention [Member]    
Term loans amortized, current year   0
Term loans amortized, one year before   0
Term loans amortized, two years before   0
Term loans amortized, three years before   0
Term loans amortized, four years before   0
Term loans amortized, prior   0
Term loans amortized, revolving   184
Loans   184
Loss   0
Loss   0
Loss   0
Loss   0
Loss   0
Loss   0
Loss   (184)
Loss   (184)
Commercial And Industrial [Member] | Substandard [Member]    
Term loans amortized, current year 0 13
Term loans amortized, one year before 68 15
Term loans amortized, two years before 150 0
Term loans amortized, three years before 0 353
Term loans amortized, four years before 34 124
Term loans amortized, prior 493 876
Term loans amortized, revolving 653 10,367
Loans 1,398 11,748
Loss 0 (13)
Loss (68) (15)
Loss (150) 0
Loss 0 (353)
Loss (34) (124)
Loss (493) (876)
Loss (653) (10,367)
Loss (1,398) (11,748)
Commercial And Industrial [Member] | Unlikely to be Collected Financing Receivable [Member]    
Term loans amortized, current year   (0)
Term loans amortized, one year before   (0)
Term loans amortized, two years before   (0)
Term loans amortized, three years before   (0)
Term loans amortized, four years before   (0)
Term loans amortized, prior   4
Term loans amortized, revolving   (0)
Loans   4
Loss   0
Loss   0
Loss   0
Loss   0
Loss   0
Loss   (4)
Loss   0
Loss   (4)
Home Equity Lines of Credit [Member]    
Term loans amortized, current year 244 0
Term loans amortized, one year before 68 231
Term loans amortized, two years before 316 0
Term loans amortized, three years before 183 52
Term loans amortized, four years before 167 92
Term loans amortized, prior 2,534 2,680
Term loans amortized, revolving 139,867 124,763
Loans [1],[2] 143,379 127,818
Current-period gross charge-offs current 0 0
Current-period gross charge-offs one year before 0 0
Current-period gross charge-offs, two years before 0 0
Current-period gross charge-offs, three years before 0 0
Current-period gross charge-offs, four years before 0 0
Current-period gross charge-offs, prior 7 0
Current-period gross charge-offs, revolving 0 0
Current-period gross charge-offs, total 7 (0)
Loss (244) 0
Loss (68) (231)
Loss (316) 0
Loss (183) (52)
Loss (167) (92)
Loss (2,534) (2,680)
Loss (139,867) (124,763)
Loss [1],[2] (143,379) (127,818)
Home Equity Lines of Credit [Member] | Pass [Member]    
Term loans amortized, current year 244 0
Term loans amortized, one year before 0 126
Term loans amortized, two years before 166 0
Term loans amortized, three years before 183 16
Term loans amortized, four years before 133 63
Term loans amortized, prior 2,041 2,097
Term loans amortized, revolving 139,214 124,001
Loans 141,981 126,303
Loss (244) 0
Loss 0 (126)
Loss (166) 0
Loss (183) (16)
Loss (133) (63)
Loss (2,041) (2,097)
Loss (139,214) (124,001)
Loss (141,981) (126,303)
Home Equity Lines of Credit [Member] | Substandard [Member]    
Term loans amortized, current year 0 0
Term loans amortized, one year before 493 105
Term loans amortized, two years before 0 0
Term loans amortized, three years before 0 36
Term loans amortized, four years before 0 29
Term loans amortized, prior 1,171 583
Term loans amortized, revolving 927 762
Loans 2,591 1,515
Loss 0 0
Loss (493) (105)
Loss 0 0
Loss 0 (36)
Loss 0 (29)
Loss (1,171) (583)
Loss (927) (762)
Loss (2,591) (1,515)
Construction and Other [Member]    
Term loans amortized, current year 31,361 55,528
Term loans amortized, one year before 48,670 26,632
Term loans amortized, two years before 3,252 23,037
Term loans amortized, three years before 1,223 1,777
Term loans amortized, four years before 506 7,644
Term loans amortized, prior 2,760 851
Term loans amortized, revolving 15,836 9,636
Loans [1],[2] 103,608 125,105
Current-period gross charge-offs current 0 0
Current-period gross charge-offs one year before 0 0
Current-period gross charge-offs, two years before 0 0
Current-period gross charge-offs, three years before 0 0
Current-period gross charge-offs, four years before 0 0
Current-period gross charge-offs, prior 0 0
Current-period gross charge-offs, revolving 0 0
Current-period gross charge-offs, total (0) (0)
Loss (31,361) (55,528)
Loss (48,670) (26,632)
Loss (3,252) (23,037)
Loss (1,223) (1,777)
Loss (506) (7,644)
Loss (2,760) (851)
Loss (15,836) (9,636)
Loss [1],[2] (103,608) (125,105)
Construction and Other [Member] | Pass [Member]    
Term loans amortized, current year 31,361 55,528
Term loans amortized, one year before 48,177 23,059
Term loans amortized, two years before 2,418 20,246
Term loans amortized, three years before 1,223 1,777
Term loans amortized, four years before 506 5,609
Term loans amortized, prior 1,368 851
Term loans amortized, revolving 14,909 9,152
Loans 99,962 116,222
Loss (31,361) (55,528)
Loss (48,177) (23,059)
Loss (2,418) (20,246)
Loss (1,223) (1,777)
Loss (506) (5,609)
Loss (1,368) (851)
Loss (14,909) (9,152)
Loss (99,962) (116,222)
Construction and Other [Member] | Special Mention [Member]    
Term loans amortized, current year   0
Term loans amortized, one year before   3,573
Term loans amortized, two years before   2,371
Term loans amortized, three years before   0
Term loans amortized, four years before   265
Term loans amortized, prior   0
Term loans amortized, revolving   0
Loans   6,209
Loss   0
Loss   (3,573)
Loss   (2,371)
Loss   0
Loss   (265)
Loss   0
Loss   0
Loss   (6,209)
Construction and Other [Member] | Substandard [Member]    
Term loans amortized, current year   0
Term loans amortized, one year before   0
Term loans amortized, two years before   420
Term loans amortized, three years before   0
Term loans amortized, four years before   1,770
Term loans amortized, prior   0
Term loans amortized, revolving   484
Loans   2,674
Loss   0
Loss   0
Loss   (420)
Loss   0
Loss   (1,770)
Loss   0
Loss   (484)
Loss   (2,674)
Consumer Portfolio Segment [Member]    
Term loans amortized, current year 1,539 1,810
Term loans amortized, one year before 1,047 1,095
Term loans amortized, two years before 384 324
Term loans amortized, three years before 112 89
Term loans amortized, four years before 36 74
Term loans amortized, prior 3,446 3,822
Term loans amortized, revolving 0 0
Loans [1],[2] 6,564 7,214
Current-period gross charge-offs current 0 0
Current-period gross charge-offs one year before 0 25
Current-period gross charge-offs, two years before 2 0
Current-period gross charge-offs, three years before 6 0
Current-period gross charge-offs, four years before 0 0
Current-period gross charge-offs, prior 30 38
Current-period gross charge-offs, revolving 0 0
Current-period gross charge-offs, total 38 63
Loss (1,539) (1,810)
Loss (1,047) (1,095)
Loss (384) (324)
Loss (112) (89)
Loss (36) (74)
Loss (3,446) (3,822)
Loss 0 0
Loss [1],[2] (6,564) (7,214)
Consumer Portfolio Segment [Member] | Pass [Member]    
Term loans amortized, current year 1,539 1,810
Term loans amortized, one year before 1,047 1,088
Term loans amortized, two years before 381 324
Term loans amortized, three years before 112 89
Term loans amortized, four years before 36 74
Term loans amortized, prior 3,284 3,669
Term loans amortized, revolving 0 0
Loans 6,399 7,054
Loss (1,539) (1,810)
Loss (1,047) (1,088)
Loss (381) (324)
Loss (112) (89)
Loss (36) (74)
Loss (3,284) (3,669)
Loss 0 0
Loss (6,399) (7,054)
Consumer Portfolio Segment [Member] | Substandard [Member]    
Term loans amortized, current year 0 0
Term loans amortized, one year before 0 7
Term loans amortized, two years before 3 0
Term loans amortized, three years before 0 0
Term loans amortized, four years before 0 0
Term loans amortized, prior 162 153
Term loans amortized, revolving 0 0
Loans 165 160
Loss 0 0
Loss 0 (7)
Loss (3) 0
Loss 0 0
Loss 0 0
Loss (162) (153)
Loss 0 0
Loss $ (165) $ (160)
[1] Accrued interest of $5.5 million and $5.5 million at December 31, 2024 and December 31, 2023, respectively, is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheets.
[2] Unearned income, including net deferred loan fees and costs and unamortized premiums and discounts, totaled $8.2 million and $9.2 million at December 31, 2024 and 2023, respectively.
v3.25.0.1
Note 7 - Loans and Related Allowance for Credit Losses - Collateral-dependent Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Loans [1],[2] $ 1,519,614 $ 1,478,130
Real Estate [Member]    
Loans 29,403 8,150
Blanket Lien [Member]    
Loans 0 0
Investment and Cash [Member]    
Loans 0 0
Other Collateral [Member]    
Loans 0 0
Collateral Pledged [Member]    
Loans 29,403 8,150
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member]    
Loans [1],[2] 181,447 183,545
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Real Estate [Member]    
Loans 3,198  
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Blanket Lien [Member]    
Loans 0  
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Investment and Cash [Member]    
Loans 0  
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Other Collateral [Member]    
Loans 0  
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Collateral Pledged [Member]    
Loans 3,198  
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member]    
Loans [1],[2] 412,291 401,580
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Real Estate [Member]    
Loans 24,881 8,150
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Blanket Lien [Member]    
Loans 0 0
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Investment and Cash [Member]    
Loans 0 0
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Other Collateral [Member]    
Loans 0 0
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Collateral Pledged [Member]    
Loans 24,881 8,150
Residential Portfolio Segment [Member]    
Loans [1],[2] 353,442 328,854
Residential Portfolio Segment [Member] | Real Estate [Member]    
Loans 617  
Residential Portfolio Segment [Member] | Blanket Lien [Member]    
Loans 0  
Residential Portfolio Segment [Member] | Investment and Cash [Member]    
Loans 0  
Residential Portfolio Segment [Member] | Other Collateral [Member]    
Loans 0  
Residential Portfolio Segment [Member] | Collateral Pledged [Member]    
Loans 617  
Commercial And Industrial [Member]    
Loans [1],[2] 229,034 221,508
Commercial And Industrial [Member] | Real Estate [Member]    
Loans 214  
Commercial And Industrial [Member] | Blanket Lien [Member]    
Loans 0  
Commercial And Industrial [Member] | Investment and Cash [Member]    
Loans 0  
Commercial And Industrial [Member] | Other Collateral [Member]    
Loans 0  
Commercial And Industrial [Member] | Collateral Pledged [Member]    
Loans 214  
Construction and Other [Member]    
Loans [1],[2] 103,608 $ 125,105
Construction and Other [Member] | Real Estate [Member]    
Loans 493  
Construction and Other [Member] | Blanket Lien [Member]    
Loans 0  
Construction and Other [Member] | Investment and Cash [Member]    
Loans 0  
Construction and Other [Member] | Other Collateral [Member]    
Loans 0  
Construction and Other [Member] | Collateral Pledged [Member]    
Loans $ 493  
[1] Accrued interest of $5.5 million and $5.5 million at December 31, 2024 and December 31, 2023, respectively, is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheets.
[2] Unearned income, including net deferred loan fees and costs and unamortized premiums and discounts, totaled $8.2 million and $9.2 million at December 31, 2024 and 2023, respectively.
v3.25.0.1
Note 7 - Loans and Related Allowance for Credit Losses - Past Due Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] $ 1,519,614 $ 1,478,130
Financial Asset Acquired with Credit Deterioration [Member]    
Financing Receivable, before Allowance for Credit Loss, Total   1,478,130
Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 1,501,824 1,470,246
Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 4,665 5,760
Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 3,114 1,336
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 10,011 788
Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 17,790 7,884
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 181,447 183,545
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Financing Receivable, before Allowance for Credit Loss, Total   183,545
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 180,752 183,242
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 513 197
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 122 0
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 60 106
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 695 303
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member]    
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 412,291 401,580
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Financing Receivable, before Allowance for Credit Loss, Total   401,580
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 402,942 397,964
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 1,355 3,616
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 0 0
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 8,012 0
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 9,367 3,616
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member]    
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 89,849 82,506
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Financing Receivable, before Allowance for Credit Loss, Total   82,506
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 89,756 82,440
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 93 0
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 0 0
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 0 66
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 93 66
Residential Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 353,442 328,854
Residential Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Financing Receivable, before Allowance for Credit Loss, Total   328,854
Residential Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 349,645 326,224
Residential Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 2,216 1,366
Residential Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 562 1,010
Residential Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 1,019 254
Residential Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 3,797 2,630
Commercial And Industrial [Member]    
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 229,034 221,508
Commercial And Industrial [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Financing Receivable, before Allowance for Credit Loss, Total   221,508
Commercial And Industrial [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 226,669 221,304
Commercial And Industrial [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 81 0
Commercial And Industrial [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 2,284 146
Commercial And Industrial [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 0 58
Commercial And Industrial [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 2,365 204
Home Equity Lines of Credit [Member]    
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 143,379 127,818
Home Equity Lines of Credit [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Financing Receivable, before Allowance for Credit Loss, Total   127,818
Home Equity Lines of Credit [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 142,484 126,894
Home Equity Lines of Credit [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 366 447
Home Equity Lines of Credit [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 102 180
Home Equity Lines of Credit [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 427 297
Home Equity Lines of Credit [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 895 924
Construction and Other [Member]    
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 103,608 125,105
Construction and Other [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Financing Receivable, before Allowance for Credit Loss, Total   125,105
Construction and Other [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 103,115 125,040
Construction and Other [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 0 65
Construction and Other [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 0 0
Construction and Other [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 493 0
Construction and Other [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 493 65
Consumer Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 6,564 7,214
Consumer Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
Financing Receivable, before Allowance for Credit Loss, Total   7,214
Consumer Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 6,479 7,138
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 41 69
Consumer Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 44 0
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 0 7
Consumer Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Total $ 85 $ 76
[1] Accrued interest of $5.5 million and $5.5 million at December 31, 2024 and December 31, 2023, respectively, is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheets.
[2] Unearned income, including net deferred loan fees and costs and unamortized premiums and discounts, totaled $8.2 million and $9.2 million at December 31, 2024 and 2023, respectively.
v3.25.0.1
Note 7 - Loans and Related Allowance for Credit Losses - Nonaccrual Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Nonaccrual, No Allowance $ 23,018 $ 4,687
Nonaccrual, With Allowance 6,966 6,190
Nonaccrual 29,984 10,877
Still Accruing 0 0
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 1,519,614 1,478,130
Nonperforming Financial Instruments [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 29,984 10,877
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member]    
Nonaccrual, No Allowance 974 0
Nonaccrual, With Allowance 301 252
Nonaccrual 1,275 252
Still Accruing 0 0
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 181,447 183,545
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Loan [Member] | Nonperforming Financial Instruments [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 1,275 252
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member]    
Nonaccrual, No Allowance 21,265 4,534
Nonaccrual, With Allowance 3,616 3,616
Nonaccrual 24,881 8,150
Still Accruing 0 0
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 412,291 401,580
Commercial Real Estate Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Nonperforming Financial Instruments [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 24,881 8,150
Commercial Real Estate Portfolio Segment [Member] | Multifamily Loan [Member]    
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 89,849 82,506
Commercial Portfolio Segment [Member] | Multifamily Loan [Member]    
Nonaccrual, No Allowance   0
Nonaccrual, With Allowance   66
Nonaccrual   66
Still Accruing   0
Commercial Portfolio Segment [Member] | Multifamily Loan [Member] | Nonperforming Financial Instruments [Member]    
Financing Receivable, before Allowance for Credit Loss, Total   66
Residential Portfolio Segment [Member]    
Nonaccrual, No Allowance 617 0
Nonaccrual, With Allowance 1,377 1,170
Nonaccrual 1,994 1,170
Still Accruing 0 0
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 353,442 328,854
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 1,994 1,170
Commercial And Industrial [Member]    
Nonaccrual, No Allowance 0 0
Nonaccrual, With Allowance 159 223
Nonaccrual 159 223
Still Accruing 0 0
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 229,034 221,508
Commercial And Industrial [Member] | Nonperforming Financial Instruments [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 159 223
Home Equity Lines of Credit [Member]    
Nonaccrual, No Allowance 0 0
Nonaccrual, With Allowance 1,017 856
Nonaccrual 1,017 856
Still Accruing 0 0
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 143,379 127,818
Home Equity Lines of Credit [Member] | Nonperforming Financial Instruments [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 1,017 856
Construction and Other [Member]    
Nonaccrual, No Allowance 0 0
Nonaccrual, With Allowance 493 0
Nonaccrual 493 0
Still Accruing 0 0
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 103,608 125,105
Construction and Other [Member] | Nonperforming Financial Instruments [Member]    
Financing Receivable, before Allowance for Credit Loss, Total 493 0
Consumer Portfolio Segment [Member]    
Nonaccrual, No Allowance 162 153
Nonaccrual, With Allowance 3 7
Nonaccrual 165 160
Still Accruing 0 0
Financing Receivable, before Allowance for Credit Loss, Total [1],[2] 6,564 7,214
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]    
Financing Receivable, before Allowance for Credit Loss, Total $ 165 $ 160
[1] Accrued interest of $5.5 million and $5.5 million at December 31, 2024 and December 31, 2023, respectively, is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheets.
[2] Unearned income, including net deferred loan fees and costs and unamortized premiums and discounts, totaled $8.2 million and $9.2 million at December 31, 2024 and 2023, respectively.
v3.25.0.1
Note 7 - Loans and Related Allowance for Credit Losses - Troubled Debt Restructurings (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Modified, Amortized cost $ 22,272 $ 21,817
to Total Financing Receivables, Percentage 1.50% 1.60%
Payment Deferral [Member]    
Modified, Amortized cost $ 0 $ 0
Extended Maturity [Member]    
Modified, Amortized cost 9,121 19,310
Payment Deferral and Extended Maturity [Member]    
Modified, Amortized cost 13,151 2,507
Interest Rate Reduction and Term Past Due [Member]    
Modified, Amortized cost 0 0
Interest Rate Reduction and Principal Forgiveness [Member]    
Modified, Amortized cost 0 0
Commercial Portfolio Segment [Member] | Non-owner occupied Loan [Member]    
Modified, Amortized cost $ 21,565 $ 2,652
to Total Financing Receivables, Percentage 1.40% 0.20%
Commercial Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Payment Deferral [Member]    
Modified, Amortized cost $ 0 $ 0
Commercial Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Extended Maturity [Member]    
Modified, Amortized cost 8,414 145
Commercial Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Payment Deferral and Extended Maturity [Member]    
Modified, Amortized cost 13,151 2,507
Commercial Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Interest Rate Reduction and Term Past Due [Member]    
Modified, Amortized cost 0 0
Commercial Portfolio Segment [Member] | Non-owner occupied Loan [Member] | Interest Rate Reduction and Principal Forgiveness [Member]    
Modified, Amortized cost 0 0
Commercial Portfolio Segment [Member] | Multifamily Loan [Member]    
Modified, Amortized cost $ 707  
to Total Financing Receivables, Percentage 4.70%  
Commercial Portfolio Segment [Member] | Multifamily Loan [Member] | Payment Deferral [Member]    
Modified, Amortized cost $ 0  
Commercial Portfolio Segment [Member] | Multifamily Loan [Member] | Extended Maturity [Member]    
Modified, Amortized cost 707  
Commercial Portfolio Segment [Member] | Multifamily Loan [Member] | Payment Deferral and Extended Maturity [Member]    
Modified, Amortized cost 0  
Commercial Portfolio Segment [Member] | Multifamily Loan [Member] | Interest Rate Reduction and Term Past Due [Member]    
Modified, Amortized cost 0  
Commercial Portfolio Segment [Member] | Multifamily Loan [Member] | Interest Rate Reduction and Principal Forgiveness [Member]    
Modified, Amortized cost $ 0  
Residential Portfolio Segment [Member]    
Modified, Amortized cost   $ 19,074
to Total Financing Receivables, Percentage   1.40%
Residential Portfolio Segment [Member] | Payment Deferral [Member]    
Modified, Amortized cost   $ 0
Residential Portfolio Segment [Member] | Extended Maturity [Member]    
Modified, Amortized cost   19,074
Residential Portfolio Segment [Member] | Payment Deferral and Extended Maturity [Member]    
Modified, Amortized cost   0
Residential Portfolio Segment [Member] | Interest Rate Reduction and Term Past Due [Member]    
Modified, Amortized cost   0
Residential Portfolio Segment [Member] | Interest Rate Reduction and Principal Forgiveness [Member]    
Modified, Amortized cost   0
Commercial And Industrial [Member]    
Modified, Amortized cost   $ 83
to Total Financing Receivables, Percentage   0.00%
Commercial And Industrial [Member] | Payment Deferral [Member]    
Modified, Amortized cost   $ 0
Commercial And Industrial [Member] | Extended Maturity [Member]    
Modified, Amortized cost   83
Commercial And Industrial [Member] | Payment Deferral and Extended Maturity [Member]    
Modified, Amortized cost   0
Commercial And Industrial [Member] | Interest Rate Reduction and Term Past Due [Member]    
Modified, Amortized cost   0
Commercial And Industrial [Member] | Interest Rate Reduction and Principal Forgiveness [Member]    
Modified, Amortized cost   0
Consumer Portfolio Segment [Member]    
Modified, Amortized cost   $ 8
to Total Financing Receivables, Percentage   0.00%
Consumer Portfolio Segment [Member] | Payment Deferral [Member]    
Modified, Amortized cost   $ 0
Consumer Portfolio Segment [Member] | Extended Maturity [Member]    
Modified, Amortized cost   8
Consumer Portfolio Segment [Member] | Payment Deferral and Extended Maturity [Member]    
Modified, Amortized cost   0
Consumer Portfolio Segment [Member] | Interest Rate Reduction and Term Past Due [Member]    
Modified, Amortized cost   0
Consumer Portfolio Segment [Member] | Interest Rate Reduction and Principal Forgiveness [Member]    
Modified, Amortized cost   $ 0
v3.25.0.1
Note 8 - Premises and Equipment (Details Textual) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Depreciation $ 1.6 $ 1.7
v3.25.0.1
Note 8 - Premises and Equipment - Major Classifications of Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Land and land improvements $ 4,896 $ 4,896
Building and leasehold improvements 21,190 21,014
Furniture, fixtures, and equipment 10,564 10,104
Financing right-of-use assets 4,990 4,990
Construction in process 139 0
Total premises and equipment 41,779 41,004
Less accumulated depreciation and amortization 21,214 19,665
Total premises and equipment, net $ 20,565 $ 21,339
v3.25.0.1
Note 9 - Goodwill and Intangible Assets (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Core Deposits, Gross $ 5,600 $ 6,600
Amortization of Intangible Assets 1,031 1,059
Core Deposits [Member]    
Finite-Lived Intangible Assets, Accumulated Amortization $ 4,200 $ 3,200
Finite-Lived Intangible Asset, Useful Life (Year) 10 years 10 years
v3.25.0.1
Note 9 - Goodwill and Intangible Assets - Goodwill (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2023
USD ($)
Measurement period adjustment $ 4,621
Balance $ 36,356
v3.25.0.1
Note 9 - Goodwill and Intangible Assets - Estimated Aggregate Future Amortization Expense for Core Deposit Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
2025 $ 998  
2026 968  
2027 691  
2028 665  
2029 582  
Thereafter 1,707  
Total $ 5,611 $ 6,642
v3.25.0.1
Note 9 - Goodwill and Intangible Assets - Activity for Mortgage Servicing Rights (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Beginning of year $ 1,636 $ 2,072
Additions 58 60
Amortization (197) (496)
End of year $ 1,497 $ 1,636
v3.25.0.1
Note 10 - Deposits (Details Textual) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Time Deposits, at or Above FDIC Insurance Limit $ 56.6 $ 117.6
v3.25.0.1
Note 10 - Deposits - Scheduled Maturities of Time Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
2025 $ 208,881  
2026 7,877  
2027 28,055  
2028 1,883  
2029 1,008  
Total $ 247,704 $ 334,315
v3.25.0.1
Note 11 - Short-term Borrowings (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Long-Term Line of Credit $ 0 $ 0
Federal Home Loan Bank Advances, Additional Borrowing Capacity 381,700 $ 430,100
Line of Credit 1 [Member]    
Line of Credit Facility, Maximum Borrowing Capacity 6,000  
Line of Credit 2 [Member]    
Line of Credit Facility, Maximum Borrowing Capacity $ 10,000  
v3.25.0.1
Note 11 - Short-term Borrowings - Outstanding Balances and Related Information of Short-term Borrowings (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Balance at year-end $ 172,400 $ 163,000
Average balance outstanding 122,506 101,088
Maximum month-end balance $ 172,400 $ 163,000
Weighted-average rate at year-end 4.42% 5.47%
Weighted-average rate during the year 5.40% 5.33%
v3.25.0.1
Note 12 - Other Borrowings (Details Textual) - USD ($)
1 Months Ended 12 Months Ended
Dec. 31, 2006
Dec. 31, 2024
Dec. 31, 2023
Stock Issued During Period, Value, New Issues $ 248,000    
Standby Letters of Credit [Member]      
Letters of Credit Outstanding, Amount   $ 25,000,000  
Other Borrowings [Member]      
Notes Payable, Total   $ 8,200,000 $ 8,200,000
Notes Payable, Other Payables [Member]      
Debt Instrument, Basis Spread on Variable Rate 1.67% 1.67%  
Debt, Weighted Average Interest Rate   7.23% 7.16%
Debt Instrument, Annual Principal Payment   $ 0  
Special Purpose Entity [Member]      
Securities Sold under Agreements to Repurchase, Total $ 8,000,000    
v3.25.0.1
Note 12 - Other Borrowings - Other Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Other Borrowings $ 11,660 $ 11,862
Finance Lease Liabilities [Member]    
Other Borrowings 3,412 3,614
Junior Subordinated Debt [Member]    
Other Borrowings $ 8,248 $ 8,248
v3.25.0.1
Note 13 - Income Taxes (Details Textual) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Deferred Tax Assets, Valuation Allowance $ 0 $ 0
Unrecognized Tax Benefits 0 $ 0
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit $ 0  
Open Tax Year 2021 2022 2023 2024  
v3.25.0.1
Note 13 - Income Taxes - The Provision (Benefit) for Federal Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Current payable $ 2,627 $ 4,092
Deferred 198 (705)
Total provision $ 2,825 $ 3,387
v3.25.0.1
Note 13 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Allowance for credit losses $ 4,714 $ 4,469
Supplemental retirement plan 839 959
Investment security basis adjustment 18 18
Nonaccrual interest income 533 387
Accrued compensation 443 494
Deferred origination fees, net 0 878
Net unrealized loss on AFS securities 5,336 4,277
Lease liability 802 111
Acquisition fair value adjustments 64 77
Other 394 374
Gross deferred tax assets 13,143 12,044
Deferred tax liabilities:    
Premises and equipment 1,041 961
Deferred origination fees, net 268 0
Net unrealized gain on equity securities 19 27
FHLB stock dividends 64 115
Intangibles 478 478
Mortgage servicing rights 314 344
Right of use assets 758 843
Other 103 39
Gross deferred tax liabilities 3,045 2,807
Net deferred tax assets $ 10,098 $ 9,237
v3.25.0.1
Note 13 - Income Taxes - Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Provision at statutory rate, amount $ 3,852 $ 4,358
Provision at statutory rate, percent 21.00% 21.00%
Tax-exempt income, amount $ (1,088) $ (1,044)
Tax-exempt income, percent (5.90%) (5.00%)
Nondeductible interest expense, amount $ 42 $ 22
Nondeductible interest expense, percent 0.20% 0.10%
Other, amount $ 19 $ 51
Other, percent 0.10% 0.10%
Total provision $ 2,825 $ 3,387
Actual tax expense and effective rate, percent 15.40% 16.20%
v3.25.0.1
Note 14 - Employee Benefits (Details Textual) - USD ($)
12 Months Ended
May 10, 2017
Dec. 31, 2024
Dec. 31, 2023
Share-Based Payment Arrangement, Expense   $ 714,000 $ 391,000
Share-Based Payment Arrangement, Expense, Tax Benefit   150,000 82,000
Deferred Compensation Share-Based Arrangements, Liability, Current and Noncurrent   $ 462,000 $ 758,000
Share-Based Payment Arrangement, Nonemployee [Member]      
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture (in shares)   6,768 7,475
Shares Issued, Value, Share-Based Payment Arrangement, before Forfeiture   $ 187,000 $ 203,000
Restricted Stock [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term (Year)   2 years 4 months 24 days  
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares)   70,538 36,173
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)   19,745 10,713
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)   $ 22.98 $ 27.57
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount   $ 1,800,000  
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)   2 years 1 month 6 days  
Restricted Stock [Member] | Vested in Stock [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)   311,000 195,000
Restricted Stock [Member] | Vested in Cash [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value   $ 213,000 $ 114,000
Retirement Plan [Member]      
Defined Contribution Plan Employer Voluntary Matching Bank Contribution   66.00% 66.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay   6.00% 6.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)   6 years  
Defined Benefit Plan, Plan Assets, Contributions by Employer   $ 520,000 $ 641,000
Retirement Plan [Member] | Middlefield Banking Company [Member]      
Defined Contribution Plan Annual Vesting Percentage   20.00%  
Executive Deferred Compensation Plan [Member] | Middlefield Banking Company [Member]      
Deferred Compensation Arrangement with Individual, Recorded Liability   $ 3,500,000 3,800,000
Defined Contribution Plan, Employer Discretionary Contribution Amount   $ 91,000 $ 437,000
The 2017 Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) 448,000    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term (Year) 10 years    
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)   352,063  
v3.25.0.1
Note 14 - Employee Benefits - Restricted Stock Activity (Details) - Restricted Stock [Member] - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Granted, weighted average grant date fair value per share (in dollars per share) $ 22.98 $ 27.57
Vested, shares (in shares) (19,745) (10,713)
Vesting Contingent on Service Conditions, Payable in Stock or Cash [Member]    
Nonvested, shares (in shares) 78,573  
Nonvested, weighted average grant date fair value per share (in dollars per share) $ 25.95  
Granted, shares (in shares) 0  
Granted, weighted average grant date fair value per share (in dollars per share) $ 0  
Vested, shares (in shares) (19,745)  
Vested, weighted average grant date fair value per share (in dollars per share) $ 23.62  
Forfeited, shares (in shares) (24,829)  
Forfeited, weighted average grant date fair value per share (in dollars per share) $ 20.07  
Nonvested, shares (in shares) 33,999 78,573
Nonvested, weighted average grant date fair value per share (in dollars per share) $ 26.93 $ 25.95
Vesting Contingent on Service Conditions, Payable in Stock [Member]    
Nonvested, shares (in shares) 0  
Nonvested, weighted average grant date fair value per share (in dollars per share) $ 0  
Granted, shares (in shares) 26,417  
Granted, weighted average grant date fair value per share (in dollars per share) $ 24.02  
Vested, shares (in shares) 0  
Vested, weighted average grant date fair value per share (in dollars per share) $ 0  
Forfeited, shares (in shares) 0  
Forfeited, weighted average grant date fair value per share (in dollars per share) $ 0  
Nonvested, shares (in shares) 26,417 0
Nonvested, weighted average grant date fair value per share (in dollars per share) $ 24.02 $ 0
Vesting Contingent on Performance and Service Conditions, Payable in Stock [Member]    
Nonvested, shares (in shares) 0  
Nonvested, weighted average grant date fair value per share (in dollars per share) $ 0  
Granted, shares (in shares) 44,121  
Granted, weighted average grant date fair value per share (in dollars per share) $ 22.35  
Vested, shares (in shares) 0  
Vested, weighted average grant date fair value per share (in dollars per share) $ 0  
Forfeited, shares (in shares) 0  
Forfeited, weighted average grant date fair value per share (in dollars per share) $ 0  
Nonvested, shares (in shares) 44,121 0
Nonvested, weighted average grant date fair value per share (in dollars per share) $ 22.35 $ 0
v3.25.0.1
Note 14 - Employee Benefits - Assumptions (Details) - Restricted Stock [Member]
12 Months Ended
Dec. 31, 2024
Expected volatility, minimum 21.31%
Expected volatility, maximum 60.78%
Expected dividends 0.00%
Expected term (in years) (Year) 2 years 4 months 24 days
Risk-free rate 3.86%
Weighted Average [Member]  
Average volatility 32.73%
v3.25.0.1
Note 15 - Commitments and Contingent Liabilities (Details Textual)
12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Investment, Proportional Amortization Method, Elected, Amount $ 1,800,000 $ 2,000,000
Investment Program, Proportional Amortization Method, Applied, Amortization Expense 127,000 35,000
Investment Program, Proportional Amortization Method, Elected, Commitment 1,500,000 1,700,000
Insurance Policy, Aggregate Limit 3,000,000  
Insurance Policy, Deductible $ 50,000  
Number of Branch Locations by Utilized Leases 6  
Lease, Right-of-Use Asset, Net $ 3,600,000  
Finance Lease, Right-of-Use Asset, after Accumulated Amortization 3,200,000 3,500,000
Operating Lease, Right-of-Use Asset 400,000 $ 560,000
Finance Lease, Liability 3,412,000  
Operating Lease, Liability $ 406,000  
Investment Program, Proportional Amortization Method, Applied, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration]   Other Noninterest Expense
Investment Program, Proportional Amortization Method, Applied, Amortization Expense, Statement of Cash Flows [Extensible Enumeration]   Depreciation, Amortization and Accretion, Net
Investment, Proportional Amortization Method, Elected, Statement of Financial Position [Extensible Enumeration] Interest Receivable and Other Assets Interest Receivable and Other Assets
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Interest Receivable and Other Assets Interest Receivable and Other Assets
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Borrowings  
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities and Other Liabilities  
Minimum [Member]    
Lessee, Operating Lease, Remaining Lease Term (Year) 2 years  
Maximum [Member]    
Lessee, Operating Lease, Remaining Lease Term (Year) 17 years  
v3.25.0.1
Note 15 - Commitments and Contingent Liabilities - Outstanding Commitments and Contingent Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Commitments $ 468,804 $ 424,836
Commitments to Extend Credit [Member]    
Commitments 468,006 418,952
Financial Standby Letter of Credit [Member]    
Commitments $ 798 $ 5,884
v3.25.0.1
Note 15 - Commitments and Contingent Liabilities - Leases Costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Finance lease cost, Amortization of right-of-use asset $ 248 $ 248
Finance lease cost, Interest Expense 106 112
Finance lease cost, Other 43 47
Operating lease cost 218 216
Total lease cost $ 615 $ 623
v3.25.0.1
Note 15 - Commitments and Contingent Liabilities - Weighted Average Remaining Lease Term and Discount Rate Information (Details)
Dec. 31, 2024
Dec. 31, 2023
Weighted-average term (years), Operating Lease (Year) 3 years 7 months 6 days 4 years 2 months 12 days
Weighted-average term (years), Finance Lease (Year) 13 years 7 months 6 days 14 years 7 months 6 days
Weighted-average discount rate, Operating Lease 2.10% 1.90%
Weighted-average discount rate, Finance Lease 3.00% 3.00%
v3.25.0.1
Note 15 - Commitments and Contingent Liabilities - Maturities of Lease Liabilities (Details)
Dec. 31, 2024
USD ($)
2025, operating $ 169,000
2025, finance 314,000
2026, operating 134,000
2026, finance 320,000
2027, operating 27,000
2027, finance 320,000
2028, operating 27,000
2028, finance 320,000
2029, operating 27,000
2029, finance 320,000
2026 and thereafter, operating 41,000
2026 and thereafter, finance 2,566,000
Total undiscounted cash flows, operating 425,000
Total undiscounted cash flows, finance 4,160,000
Impact of present value discount, operating (19,000)
Impact of present value discount, finance (748,000)
Operating Lease, Liability 406,000
Finance Lease, Liability $ 3,412,000
v3.25.0.1
Note 16 - Regulatory Restrictions (Details Textual)
$ in Millions
Dec. 31, 2024
USD ($)
Percent of Common Stock 10.00%
Amount Available for Payment of Dividends $ 13.2
v3.25.0.1
Note 17 - Regulatory Capital (Details Textual)
Dec. 31, 2024
Banking Regulation, Capital Conservation Buffer, Capital Conserved, Minimum 0.025
v3.25.0.1
Note 17 - Regulatory Capital - Capital Ratios (Details)
Dec. 31, 2024
Dec. 31, 2023
Leverage capital, adequately capitalized, ratio 0.04 0.04
Tier 1 risk based capital, adequately capitalized, ratio 0.06 0.06
Common equity tier 1 capital, adequately capitalized, ratio 4.50% 4.50%
Total risk based capital, adequately capitalized, ratio 0.08 0.08
Leverage capital, adequately capitalized plus capital conservation buffer, ratio 4.00% 4.00%
Tier 1 risk based capital, adequately capitalized plus capital conservation buffer, ratio 8.50% 8.50%
Common equity tier 1 capital, adequately capitalized plus capital conservation buffer, ratio 7.00% 7.00%
Total risk based capital, adequately capitalized plus capital conservation buffer, ratio 10.50% 10.50%
Middlefield Banking Company [Member]    
Leverage capital, actual, ratio 0.107 0.1048
Tier 1 risk based capital, actual, ratio 0.1199 0.1182
Common equity tier 1 capital, actual, ratio 11.99% 11.82%
Total risk based capital, actual, ratio 0.1324 0.1308
Leverage capital, well-capitalized, ratio (bank only) 0.05 0.05
Tier 1 risk based capital, well-capitalized, ratio (bank only) 0.08 0.08
Common equity tier 1 capital, well-capitalized, ratio (bank only) 6.50% 6.50%
Total risk based capital, well-capitalized, ratio (bank only) 0.10 0.10
Middlefield Banc Corp [Member]    
Leverage capital, actual, ratio 0.1086 0.1068
Tier 1 risk based capital, actual, ratio 0.1228 0.1218
Common equity tier 1 capital, actual, ratio 11.78% 11.66%
Total risk based capital, actual, ratio 0.1354 0.1343
v3.25.0.1
Note 18 - Related Party Transaction (Details Textual) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Related Party Deposit Liabilities $ 32.5 $ 33.1
v3.25.0.1
Note 18 - Related Party Transaction - Loans to Related Party (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Beginning balance $ 24,185 $ 2,057
New loans 3,362 23,922
Repayments (1,377) (1,794)
Effect of change in related party status (56) 0
Ending balance $ 26,114 $ 24,185
v3.25.0.1
Note 19 - Segment Reporting (Details Textual)
12 Months Ended
Dec. 31, 2024
Number of Operating Segments 1
v3.25.0.1
Note 19 - Segment Reporting - Schedule of Segment Data (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Net interest income $ 60,680 $ 65,203
Noninterest income 7,213 6,691
Total revenue 67,893 71,894
Provision for credit losses 2,008 3,002
Salaries and employee benefits 24,641 24,511
Occupancy expenses 2,376 2,566
Data processing costs 4,740 4,588
Other noninterest expense (1) [1] 15,784 16,472
Income taxes 2,825 3,387
Net income 15,519 17,368
Total assets 1,853,359 1,822,883
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member]    
Net interest income (595) (602)
Noninterest income (40) (102)
Total revenue (635) (704)
Provision for credit losses 0 0
Salaries and employee benefits 1,074 751
Occupancy expenses 0 0
Data processing costs 0 0
Other noninterest expense (1) [1] 2,829 2,609
Income taxes (953) (854)
Net income (3,585) (3,210)
Total assets 1,671 2,659
Bank Segment [Member] | Operating Segments [Member]    
Net interest income 61,275 65,805
Noninterest income 7,253 6,793
Total revenue 68,528 72,598
Provision for credit losses 2,008 3,002
Salaries and employee benefits 23,567 23,760
Occupancy expenses 2,376 2,566
Data processing costs 4,740 4,588
Other noninterest expense (1) [1] 12,955 13,863
Income taxes 3,778 4,241
Net income 19,104 20,578
Total assets $ 1,851,688 $ 1,820,224
[1] Includes expenses that are in the reported measure of net income but not specifically provided to the CODM. Other noninterest expense is composed of expenses such as equipment expense, Ohio state franchise tax, professional fees, advertising expense, and other expenses.
v3.25.0.1
Note 20 - Parent Company - Condensed Balance Sheet (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash and due from banks $ 46,037,000 $ 56,397,000  
Equity Securities, FV-NI, Current 855,000 955,000  
TOTAL ASSETS 1,853,359,000 1,822,883,000  
TOTAL LIABILITIES 1,642,797,000 1,617,202,000  
STOCKHOLDERS' EQUITY 210,562,000 205,681,000 $ 197,691,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,853,359,000 1,822,883,000  
Parent Company [Member]      
Cash and due from banks 4,036,000 4,065,000  
Equity Securities, FV-NI, Current 503,000 544,000  
Other assets 1,168,000 2,125,000  
TOTAL ASSETS 219,428,000 214,833,000  
Other borrowings 8,248,000 8,248,000  
Other liabilities 618,000 904,000  
TOTAL LIABILITIES 8,866,000 9,152,000  
STOCKHOLDERS' EQUITY 210,562,000 205,681,000  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 219,428,000 214,833,000  
Parent Company [Member] | Non Bank Subsidiary [Member]      
Equity method investments 1,000 1,000  
Parent Company [Member] | Subsidiary Banks [Member]      
Equity method investments $ 213,720,000 $ 208,098,000  
v3.25.0.1
Note 20 - Parent Company - Condensed Statement of Comprehensive Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Total income $ 101,262 $ 90,301
Interest expense 40,582 25,098
Salaries and employee benefits 24,641 24,511
Ohio state franchise tax 1,583 1,578
Income taxes 2,825 3,387
NET INCOME 15,519 17,368
COMPREHENSIVE INCOME 11,536 23,422
Parent Company [Member]    
Dividends from bank subsidiary 9,500 17,000
Loss on equity securities (41) (100)
Other income 2 3
Total income 9,462 16,903
Interest expense 597 605
Salaries and employee benefits 1,074 751
Ohio state franchise tax 1,583 1,578
Other expense 1,246 1,032
Total expenses 4,500 3,966
Income before income taxes 4,962 12,937
Income taxes (953) (854)
Income before equity in undistributed net income of subsidiaries 5,915 13,791
Equity in undistributed net income of subsidiaries 9,604 3,578
NET INCOME 15,519 17,368
COMPREHENSIVE INCOME $ 11,536 $ 23,422
v3.25.0.1
Note 20 - Parent Company - Condensed Statement of Cash Flows (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
NET INCOME $ 15,519 $ 17,368
Other, net (624) 119
Net cash provided by operating activities 17,468 22,356
Repurchase of common shares (1,055) (4,506)
Cash dividends 6,457 6,864
Net cash used in financing activities 20,777 111,213
Increase (decrease) in cash (5,044) 7,027
Parent Company [Member]    
NET INCOME 15,519 17,368
Equity in undistributed net income of subsidiaries (9,604) (3,578)
Stock-based compensation, net 374 260
Loss on equity securities 41 100
Other, net 1,153 1,084
Net cash provided by operating activities 7,483 15,234
Repurchase of common shares (1,055) (4,506)
Cash dividends (6,457) (6,864)
Net cash used in financing activities (7,512) (11,370)
Increase (decrease) in cash (29) 3,864
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 4,065 201
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 4,036 $ 4,065