Commission file number
|
|
|
(Exact name of registrant as specified in its charter)
|
|
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code:
|
(
|
|
|
|
Title of
Each Class
|
Trading
Symbol(s)
|
Name of Each Exchange
on Which Registered
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|
Smaller reporting company
|
Emerging growth company
|
Page
|
|
PART I
|
|
1 – 9
|
|
9 – 17
|
|
17
|
|
17
|
|
18
|
|
18
|
|
PART II
|
|
18 – 19
|
|
19
|
|
20 – 48
|
|
49
|
|
50 – 104
|
|
105
|
|
105
|
|
105
|
|
105
|
|
PART III
|
|
106
|
|
106
|
|
106 – 107
|
|
107
|
|
107
|
|
PART IV
|
|
108 – 110
|
|
110
|
|
111
|
•
|
Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers;
|
•
|
Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its
obligation to help meet the housing needs of the community it serves;
|
•
|
Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;
|
•
|
Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies;
|
•
|
Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies;
|
•
|
Truth in Savings Act; and
|
•
|
Rules and regulations of the various federal and state agencies charged with the responsibility of implementing such laws.
|
•
|
Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial
records;
|
•
|
Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from
the use of automated teller machines and other electronic banking services;
|
•
|
Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the
original paper check;
|
•
|
The USA PATRIOT Act, which requires banks operating to, among other things, establish broadened anti-money laundering compliance programs, due diligence policies and controls to ensure the
detection and reporting of money laundering. Such required compliance programs are intended to supplement existing compliance requirements, also applicable to financial institutions, under the Bank Secrecy Act and the Office of
Foreign Assets Control regulations; and
|
•
|
The Gramm-Leach-Bliley Act, which places limitations on the sharing of consumer financial information by financial institutions with unaffiliated third parties. Specifically, the
Gramm-Leach-Bliley Act requires all financial institutions offering financial products or services to retail customers to provide such customers with the financial institution’s privacy policy and provide such customers the
opportunity to “opt out” of the sharing of certain personal financial information with unaffiliated third parties.
|
•
|
demand for our products and services may decline, making it difficult to grow assets and income;
|
•
|
if we have high levels of unemployment for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income;
|
•
|
collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase;
|
•
|
limitations may be placed on our ability to foreclose on properties we hold as collateral;
|
•
|
our allowance for loan losses may have to be increased if borrowers experience financial difficulties beyond forbearance periods, which will adversely affect our net income;
|
•
|
the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us;
|
•
|
our cybersecurity risks are increased if employees work remotely;
|
•
|
we rely on third-party vendors for certain services and the unavailability of a critical service due to the COVID-19 pandemic could have an adverse effect on us; and
|
•
|
Federal Deposit Insurance Corporation premiums may increase if the agency experiences additional resolution costs.
|
•
|
the COVID-19 pandemic and its impact to supply and demand constraints
|
•
|
adverse weather conditions (such as hail, drought and floods), restrictions on water supply or other conditions that prevent the planting or harvesting of a crop or limit crop yields;
|
•
|
loss of crops or livestock due to disease or other factors;
|
•
|
declines in the market prices or demand for agricultural products (both domestically and internationally), for any reason;
|
•
|
increases in production costs (such as the costs of labor, rent, feed, fuel and fertilizer);
|
•
|
the impact of domestic and international government policies and regulations (including changes in price supports, subsidies, government-sponsored crop insurance, minimum ethanol content requirements
for gasoline, tariffs, trade barriers, trade agreements and health and environmental regulations);
|
•
|
access to technology and the successful implementation of production technologies; and
|
•
|
changes in the general economy that could affect the availability of off-farm sources of income and prices of real estate for borrowers.
|
•
|
Disruptions in the supply chain and the processing of product and delivery to the final retail channel
|
2022
|
Dividends
declared |
2021
|
Dividends
declared |
|||||||||||||||||||||
High
|
Low
|
per share
|
High
|
Low
|
per share
|
|||||||||||||||||||
First quarter
|
$
|
62.97
|
$
|
59.46
|
$
|
0.475
|
$
|
58.42
|
$
|
53.96
|
$
|
0.465
|
||||||||||||
Second quarter
|
N/A
|
N/A
|
0.475
|
62.50
|
58.42
|
0.465
|
||||||||||||||||||
Third quarter
|
N/A
|
N/A
|
0.480
|
64.00
|
61.10
|
0.470
|
||||||||||||||||||
Fourth quarter
|
N/A
|
N/A
|
0.480
|
61.50
|
59.00
|
0.470
|
Period
|
Total Number of Shares (or units Purchased)
|
Average Price Paid per Share (or Unit)
|
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans of Programs
|
Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1)
|
||||||||||||
10/1/22 to 10/31/22
|
-
|
$
|
0.00
|
-
|
116,392
|
|||||||||||
11/1/22 to 11/30/22
|
3
|
$
|
68.23
|
3
|
116,389
|
|||||||||||
12/1/22 to 12/31/22
|
-
|
$
|
0.00
|
-
|
116,389
|
|||||||||||
Total
|
3
|
$
|
68.23
|
3
|
116,389
|
(1)
|
On April 21, 2020, the Company announced that the Board of Directors authorized the Company to repurchase up to an additional 150,000 shares at an aggregate purchase price not to exceed $12.0 million
over a period of 36 months. The repurchases will be conducted through open-market purchases or privately negotiated transactions and will be made from time to time depending on market conditions and other factors. No time limit was
placed on the duration of the share repurchase program. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes.
|
•
|
The continuing impact of the COVID-19 pandemic may have an adverse effect on our business and operations, our customers, including their ability to make timely loan payments, our service providers,
and on the economy and financial markets more significant that we expect.
|
•
|
Interest rates could change more rapidly or more significantly than we expect.
|
•
|
The economy could change significantly in an unexpected way, which would cause the demand for new loans and the ability of borrowers to repay outstanding loans to change in ways that our models do not
anticipate.
|
•
|
The financial markets could suffer a significant disruption, which may have a negative effect on our financial condition and that of our borrowers, and on our ability to raise money by issuing new
securities.
|
•
|
It could take us longer than we anticipate implementing strategic initiatives, including expansions, designed to increase revenues or manage expenses, or we may be unable to implement those
initiatives at all.
|
•
|
Acquisitions and dispositions of assets and companies could affect us in ways that management has not anticipated.
|
•
|
We may become subject to new legal obligations or the resolution of litigation may have a negative effect on our financial condition or operating results.
|
•
|
We may become subject to new and unanticipated accounting, tax, regulatory or compliance practices or requirements. Failure to comply with any one or more of these requirements could have an adverse
effect on our operations.
|
•
|
We could experience greater loan delinquencies than anticipated, adversely affecting our earnings and financial condition.
|
•
|
We could experience greater losses than expected due to the ever increasing volume of information theft and fraudulent scams impacting our customers and the banking industry.
|
•
|
We could lose the services of some or all of our key personnel, which would negatively impact our business because of their business development skills, financial expertise, lending experience,
technical expertise and market area knowledge.
|
•
|
The agricultural economy is subject to extreme swings in both the costs of resources and the prices received from the sale of products as a result of weather, government regulations, international
trade agreements and consumer tastes, which could negatively impact certain of our customers.
|
•
|
Loan concentrations in certain industries could negatively impact our results, if financial results or economic conditions deteriorate.
|
•
|
Companies providing support services related to the exploration and drilling of the natural gas reserves in our market area may be affected by federal, state and local laws and regulations such as
restrictions on production, permitting, changes in taxes and environmental protection, which could negatively impact our customers and, as a result, negatively impact our loan and deposit volume and loan quality. Additionally, the
activities the companies providing support services related to the exploration and drilling of the natural gas reserves may be dependent on the market price of natural gas. As a result, decreases in the market price of natural gas
could also negatively impact these companies, our customers.
|
(in thousands, except per share data)
|
2022
|
2021
|
2020
|
2019
|
2018
|
|||||||||||||||
Interest and dividend income
|
$
|
83,357
|
$
|
73,217
|
$
|
70,296
|
$
|
61,980
|
$
|
56,758
|
||||||||||
Interest expense
|
11,223
|
7,105
|
8,105
|
12,040
|
9,574
|
|||||||||||||||
Net interest income
|
72,134
|
66,112
|
62,191
|
49,940
|
47,184
|
|||||||||||||||
Provision for loan losses
|
1,683
|
1,550
|
2,400
|
1,675
|
1,925
|
|||||||||||||||
Net interest income after provision
for loan losses
|
70,451
|
64,562
|
59,791
|
48,265
|
45,259
|
|||||||||||||||
Non-interest income
|
9,999
|
11,754
|
11,158
|
8,242
|
7,754
|
|||||||||||||||
Investment securities gains (losses), net
|
(261
|
)
|
551
|
264
|
144
|
(19
|
)
|
|||||||||||||
Non-interest expenses
|
44,694
|
41,550
|
40,847
|
33,341
|
31,557
|
|||||||||||||||
Income before provision for income taxes
|
35,495
|
35,317
|
30,366
|
23,310
|
21,437
|
|||||||||||||||
Provision for income taxes
|
6,435
|
6,199
|
5,263
|
3,820
|
3,403
|
|||||||||||||||
Net income
|
$
|
29,060
|
$
|
29,118
|
$
|
25,103
|
$
|
19,490
|
$
|
18,034
|
||||||||||
Per share data:
|
||||||||||||||||||||
Net income - Basic (1)
|
$
|
7.32
|
$
|
7.31
|
$
|
6.46
|
$
|
5.36
|
$
|
4.93
|
||||||||||
Net income - Diluted (1)
|
7.32
|
7.31
|
6.46
|
5.36
|
4.93
|
|||||||||||||||
Cash dividends declared (1)
|
1.90
|
1.84
|
1.88
|
1.73
|
1.67
|
|||||||||||||||
Stock dividend
|
1
|
%
|
1
|
%
|
1
|
%
|
1
|
%
|
1
|
%
|
||||||||||
Book value (1) (2)
|
58.74
|
53.39
|
47.93
|
42.68
|
39.17
|
|||||||||||||||
End of Period Balances:
|
||||||||||||||||||||
Total assets
|
$
|
2,333,393
|
$
|
2,143,863
|
$
|
1,891,674
|
$
|
1,466,339
|
$
|
1,430,712
|
||||||||||
Available for sale securities
|
439,506
|
412,402
|
295,189
|
240,706
|
241,010
|
|||||||||||||||
Loans
|
1,724,999
|
1,441,533
|
1,405,281
|
1,115,569
|
1,081,883
|
|||||||||||||||
Allowance for loan losses
|
18,552
|
17,304
|
15,815
|
13,845
|
12,884
|
|||||||||||||||
Total deposits
|
1,844,208
|
1,836,511
|
1,588,858
|
1,211,118
|
1,185,156
|
|||||||||||||||
Total borrowings
|
257,278
|
73,977
|
88,838
|
85,117
|
91,194
|
|||||||||||||||
Stockholders' equity
|
200,147
|
212,492
|
194,259
|
157,774
|
139,229
|
|||||||||||||||
Key Ratios
|
||||||||||||||||||||
Return on assets (net income to average total assets)
|
1.29
|
%
|
1.45
|
%
|
1.46
|
%
|
1.34
|
%
|
1.29
|
%
|
||||||||||
Return on equity (net income to average total equity)
|
12.98
|
%
|
14.26
|
%
|
14.21
|
%
|
13.00
|
%
|
13.00
|
%
|
||||||||||
Equity to asset ratio (average equity to average total assets,
excluding other comprehensive income)
|
9.93
|
%
|
10.20
|
%
|
10.27
|
%
|
10.31
|
%
|
9.90
|
%
|
||||||||||
Net interest margin (tax equivalent) (3)
|
3.41
|
%
|
3.52
|
%
|
3.92
|
%
|
3.72
|
%
|
3.66
|
%
|
||||||||||
Efficiency (4)
|
52.55
|
%
|
51.57
|
%
|
53.62
|
%
|
54.27
|
%
|
55.04
|
%
|
||||||||||
Dividend payout ratio (dividends declared divided by net income)
|
26.11
|
%
|
25.36
|
%
|
29.32
|
%
|
32.40
|
%
|
34.08
|
%
|
||||||||||
Tier 1 leverage (5)
|
9.03
|
%
|
9.31
|
%
|
9.16
|
%
|
9.77
|
%
|
9.15
|
%
|
||||||||||
Common equity risk based capital (5)
|
10.92
|
%
|
12.03
|
%
|
11.22
|
%
|
12.11
|
%
|
11.47
|
%
|
||||||||||
Tier 1 risk-based capital (5)
|
11.32
|
%
|
12.53
|
%
|
11.75
|
%
|
12.79
|
%
|
12.18
|
%
|
||||||||||
Total risk-based capital (5)
|
12.87
|
%
|
14.35
|
%
|
12.86
|
%
|
14.04
|
%
|
13.42
|
%
|
||||||||||
Nonperforming assets/total loans
|
0.43
|
%
|
0.61
|
%
|
0.93
|
%
|
1.38
|
%
|
1.33
|
%
|
||||||||||
Nonperforming loans/total loans
|
0.40
|
%
|
0.53
|
%
|
0.80
|
%
|
1.08
|
%
|
1.27
|
%
|
||||||||||
Allowance for loan losses/total loans
|
1.08
|
%
|
1.20
|
%
|
1.13
|
%
|
1.24
|
%
|
1.19
|
%
|
||||||||||
Net (recoveries)charge-offs/average loans
|
0.03
|
%
|
0.00
|
%
|
0.03
|
%
|
0.06
|
%
|
0.02
|
%
|
(1) |
Amounts were adjusted to reflect stock dividends.
|
(2) |
Calculation excludes accumulated other comprehensive income (loss).
|
(3) |
Tax adjusted net interest income to average interest-earning assets. Tax adjusted net Interest income is a non-gaap measure and is reconciled to the GAAP equivalent measure on page 25 of this 10-K.
|
(4) |
Bank non-interest expenses to tax adjusted net interest income and non-interest income, excluding security gains. Tax adjusted net Interest income is a non-gaap measure and is reconciled to the GAAP
equivalent measure on page 30 of this 10k. The efficiency ratio calculated using non-tax effected net interest income was 53.22% 52.21%, 54.50%, 55.36% and 56.26%, for the years ended 2022, 2021, 2020, 2019 and 2018, respectively.
|
(5) |
Ratio calculated on consolidated level
|
(market values - in thousands)
|
2022
|
2021
|
||||||
INVESTMENTS:
|
||||||||
Bonds
|
$
|
13,497
|
$
|
8,640
|
||||
Stock
|
33,659
|
22,099
|
||||||
Savings and Money Market Funds
|
14,813
|
11,587
|
||||||
Mutual Funds
|
75,700
|
105,233
|
||||||
Mineral interests
|
8,465
|
2,959
|
||||||
Mortgages
|
783
|
856
|
||||||
Real Estate
|
1,965
|
2,099
|
||||||
Miscellaneous
|
847
|
942
|
||||||
Cash
|
302
|
425
|
||||||
TOTAL
|
$
|
150,031
|
$
|
154,840
|
||||
ACCOUNTS:
|
||||||||
Trusts
|
47,762
|
46,953
|
||||||
Guardianships
|
400
|
443
|
||||||
Employee Benefits
|
50,883
|
62,149
|
||||||
Investment Management
|
50,985
|
45,293
|
||||||
Custodial
|
1
|
2
|
||||||
TOTAL
|
$
|
150,031
|
$
|
154,840
|
Analysis of Average Balances and Interest Rates
|
|||||||||||||||||||||||||||||||||||
2022
|
2021
|
2020
|
|||||||||||||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance
(1)$
|
Interest
$
|
|
Average
Rate
%
|
|
Average
Balance (1)
$
|
Interest
$
|
|
Average
Rate
%
|
|
Average
Balance (1) |
Interest
$ |
|
Average
Rate
%
|
|||||||||||||||||||||
ASSETS
|
|||||||||||||||||||||||||||||||||||
Short-term investments:
|
|||||||||||||||||||||||||||||||||||
Interest-bearing deposits at banks
|
52,655
|
171
|
0.32
|
108,872
|
124
|
0.11
|
41,330
|
37
|
0.09
|
||||||||||||||||||||||||||
Total short-term investments
|
52,655
|
171
|
0.32
|
108,872
|
124
|
0.11
|
41,330
|
37
|
0.09
|
||||||||||||||||||||||||||
Interest bearing time deposits at banks
|
8,352
|
229
|
2.75
|
12,527
|
323
|
2.57
|
14,139
|
364
|
2.57
|
||||||||||||||||||||||||||
Investment securities:
|
|||||||||||||||||||||||||||||||||||
Taxable
|
372,430
|
6,238
|
1.68
|
252,470
|
4,198
|
1.66
|
188,241
|
4,488
|
2.38
|
||||||||||||||||||||||||||
Tax-exempt (3)
|
120,592
|
3,106
|
2.58
|
104,379
|
2,786
|
2.67
|
80,131
|
2,366
|
2.95
|
||||||||||||||||||||||||||
Total investment securities (3)
|
493,022
|
9,344
|
1.90
|
356,849
|
6,984
|
1.96
|
268,372
|
6,854
|
2.55
|
||||||||||||||||||||||||||
Loans:
|
|||||||||||||||||||||||||||||||||||
Residential mortgage loans
|
204,063
|
9,712
|
4.76
|
203,062
|
9,867
|
4.86
|
210,696
|
11,161
|
5.30
|
||||||||||||||||||||||||||
Construction loans
|
73,214
|
3,298
|
4.50
|
56,315
|
2,292
|
4.07
|
26,343
|
1,288
|
4.89
|
||||||||||||||||||||||||||
Commercial Loans
|
854,460
|
41,155
|
4.82
|
739,000
|
36,215
|
4.90
|
590,469
|
31,087
|
5.26
|
||||||||||||||||||||||||||
Agricultural Loans
|
347,420
|
15,387
|
4.43
|
349,951
|
15,079
|
4.31
|
357,201
|
16,022
|
4.49
|
||||||||||||||||||||||||||
Loans to state & political subdivisions (3)
|
56,004
|
1,863
|
3.33
|
52,804
|
1,871
|
3.54
|
86,143
|
3,458
|
4.01
|
||||||||||||||||||||||||||
ConsumerOther loans
|
58,715
|
3,201
|
5.45
|
24,125
|
1,385
|
5.74
|
20,986
|
1,185
|
5.65
|
||||||||||||||||||||||||||
Loans, net of discount (2)(3)(4)
|
1,593,876
|
74,616
|
4.68
|
1,425,257
|
66,709
|
4.68
|
1,291,838
|
64,201
|
4.97
|
||||||||||||||||||||||||||
Total interest-earning assets
|
2,147,905
|
84,360
|
3.93
|
1,903,505
|
74,140
|
3.89
|
1,615,679
|
71,456
|
4.42
|
||||||||||||||||||||||||||
Cash and due from banks
|
6,708
|
6,525
|
7,487
|
||||||||||||||||||||||||||||||||
Bank premises and equipment
|
17,287
|
17,194
|
17,286
|
||||||||||||||||||||||||||||||||
Other assets
|
84,066
|
75,410
|
79,305
|
||||||||||||||||||||||||||||||||
Total non-interest earning assets
|
108,061
|
99,129
|
104,078
|
||||||||||||||||||||||||||||||||
Total assets
|
2,255,966
|
2,002,634
|
1,719,757
|
||||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
|||||||||||||||||||||||||||||||||||
NOW accounts
|
520,895
|
2,425
|
0.47
|
457,189
|
1,387
|
0.30
|
383,931
|
1,102
|
0.29
|
||||||||||||||||||||||||||
Savings accounts
|
323,939
|
421
|
0.13
|
290,376
|
322
|
0.11
|
241,429
|
476
|
0.20
|
||||||||||||||||||||||||||
Money market accounts
|
343,288
|
2,004
|
0.58
|
257,937
|
684
|
0.27
|
205,142
|
1,012
|
0.49
|
||||||||||||||||||||||||||
Certificates of deposit
|
299,110
|
2,466
|
0.82
|
351,265
|
3,444
|
0.98
|
345,397
|
4,261
|
1.23
|
||||||||||||||||||||||||||
Total interest-bearing deposits
|
1,487,232
|
7,316
|
0.49
|
1,356,767
|
5,837
|
0.43
|
1,175,899
|
6,851
|
0.58
|
||||||||||||||||||||||||||
Other borrowed funds
|
149,661
|
3,907
|
2.61
|
84,621
|
1,268
|
1.50
|
93,237
|
1,254
|
1.34
|
||||||||||||||||||||||||||
Total interest-bearing liabilities
|
1,636,893
|
11,223
|
0.69
|
1,441,388
|
7,105
|
0.49
|
1,269,136
|
8,105
|
0.64
|
||||||||||||||||||||||||||
Demand deposits
|
374,675
|
341,604
|
257,285
|
||||||||||||||||||||||||||||||||
Other liabilities
|
20,443
|
15,420
|
16,662
|
||||||||||||||||||||||||||||||||
Total non-interest-bearing liabilities
|
95,118
|
357,024
|
273,947
|
||||||||||||||||||||||||||||||||
Stockholders' equity
|
223,955
|
204,222
|
176,674
|
||||||||||||||||||||||||||||||||
Total liabilities & stockholders' equity
|
2,255,966
|
2,002,634
|
1,719,757
|
||||||||||||||||||||||||||||||||
Net interest income
|
73,137
|
67,035
|
63,351
|
||||||||||||||||||||||||||||||||
Net interest spread (5)
|
3.24
|
%
|
3.40
|
%
|
3.78
|
%
|
|||||||||||||||||||||||||||||
Net interest income as a percentage
of average interest-earning assets
|
3.41
|
%
|
3.52
|
%
|
3.92
|
%
|
|||||||||||||||||||||||||||||
Ratio of interest-earning assets
to interest-bearing liabilities
|
131.00
|
132.00
|
127.00
|
(1)
|
Averages are based on daily averages.
|
(2)
|
Includes loan origination and commitment fees.
|
(3)
|
Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of 21% for 2022, 2021 and 2020.
|
(4)
|
Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets.
|
(5)
|
Interest rate spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities.
|
2022
|
2021
|
2020
|
||||||||||
Interest and dividend income from investment securities,
interest bearing time deposits and short-term investments (non-tax adjusted) (GAAP)
|
$
|
9,092
|
$
|
6,846
|
$
|
6,758
|
||||||
Tax equivalent adjustment
|
652
|
585
|
497
|
|||||||||
Interest and dividend income from investment securities,
interest bearing time deposits and short-term investments (tax equivalent basis) (Non-GAAP)
|
$
|
9,744
|
$
|
7,431
|
$
|
7,255
|
||||||
2022
|
2021
|
2020
|
||||||||||
Interest and fees on loans (non-tax adjusted) (GAAP)
|
$
|
74,265
|
$
|
66,371
|
$
|
63,538
|
||||||
Tax equivalent adjustment
|
351
|
338
|
663
|
|||||||||
Interest and fees on loans (tax equivalent basis) (Non-GAAP)
|
$
|
74,616
|
$
|
66,709
|
$
|
64,201
|
||||||
2022
|
2021
|
2020
|
||||||||||
Total interest income
|
$
|
83,357
|
$
|
73,217
|
$
|
70,296
|
||||||
Total interest expense
|
11,223
|
7,105
|
8,105
|
|||||||||
Net interest income (GAAP)
|
72,134
|
66,112
|
62,191
|
|||||||||
Total tax equivalent adjustment
|
1,003
|
923
|
1,160
|
|||||||||
Net interest income (tax equivalent basis) (Non-GAAP)
|
$
|
73,137
|
$
|
67,035
|
$
|
63,351
|
2022 vs. 2021 (1)
|
2021 vs. 2020 (1)
|
|||||||||||||||||||||||
Change in
Volume |
Change
in Rate |
Total
Change |
Change in
Volume |
Change
in Rate |
Total
Change |
|||||||||||||||||||
Interest Income:
|
||||||||||||||||||||||||
Short-term investments:
|
||||||||||||||||||||||||
Interest-bearing deposits at banks
|
$
|
(18
|
)
|
$
|
65
|
$
|
47
|
$
|
73
|
$
|
14
|
$
|
87
|
|||||||||||
Interest bearing time deposits at banks
|
(118
|
)
|
24
|
(94
|
)
|
(41
|
)
|
-
|
(41
|
)
|
||||||||||||||
Investment securities:
|
||||||||||||||||||||||||
Taxable
|
2,010
|
30
|
2,040
|
1,287
|
(1,577
|
)
|
(290
|
)
|
||||||||||||||||
Tax-exempt
|
414
|
(94
|
)
|
320
|
615
|
(195
|
)
|
420
|
||||||||||||||||
Total investment securities
|
2,424
|
(64
|
)
|
2,360
|
1,902
|
(1,772
|
)
|
130
|
||||||||||||||||
Total investment income
|
2,288
|
25
|
2,313
|
1,934
|
(1,758
|
)
|
176
|
|||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Residential mortgage loans
|
49
|
(204
|
)
|
(155
|
)
|
(394
|
)
|
(900
|
)
|
(1,294
|
)
|
|||||||||||||
Construction loans
|
742
|
264
|
1,006
|
1,177
|
(173
|
)
|
1,004
|
|||||||||||||||||
Commercial Loans
|
5,549
|
(609
|
)
|
4,940
|
7,074
|
(1,946
|
)
|
5,128
|
||||||||||||||||
Agricultural Loans
|
(108
|
)
|
416
|
308
|
(321
|
)
|
(622
|
)
|
(943
|
)
|
||||||||||||||
Loans to state & political subdivisions
|
110
|
(118
|
)
|
(8
|
)
|
(1,218
|
)
|
(369
|
)
|
(1,587
|
)
|
|||||||||||||
Other loans
|
1,882
|
(66
|
)
|
1,816
|
180
|
20
|
200
|
|||||||||||||||||
Total loans, net of discount
|
8,224
|
(317
|
)
|
7,907
|
6,498
|
(3,990
|
)
|
2,508
|
||||||||||||||||
Total Interest Income
|
10,512
|
(292
|
)
|
10,220
|
8,432
|
(5,748
|
)
|
2,684
|
||||||||||||||||
Interest Expense:
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
NOW accounts
|
215
|
823
|
1,038
|
219
|
66
|
285
|
||||||||||||||||||
Savings accounts
|
40
|
59
|
99
|
133
|
(287
|
)
|
(154
|
)
|
||||||||||||||||
Money Market accounts
|
285
|
1,035
|
1,320
|
410
|
(738
|
)
|
(328
|
)
|
||||||||||||||||
Certificates of deposit
|
(473
|
)
|
(505
|
)
|
(978
|
)
|
73
|
(890
|
)
|
(817
|
)
|
|||||||||||||
Total interest-bearing deposits
|
67
|
1,412
|
1,479
|
835
|
(1,849
|
)
|
(1,014
|
)
|
||||||||||||||||
Other borrowed funds
|
1,343
|
1,296
|
2,639
|
(60
|
)
|
74
|
14
|
|||||||||||||||||
Total interest expense
|
1,410
|
2,708
|
4,118
|
775
|
(1,775
|
)
|
(1,000
|
)
|
||||||||||||||||
Net interest income
|
$
|
9,102
|
$
|
(3,000
|
)
|
$
|
6,102
|
$
|
7,657
|
$
|
(3,973
|
)
|
$
|
3,684
|
(1)
|
The portion of the total change attributable to both volume and rate changes during the year has been allocated to volume and rate components based upon the absolute dollar amount of the change in
each component prior to allocation.
|
•
|
Interest income on residential mortgage loans decreased $155,000. The average balance of residential mortgage loans increased $1.0 million, resulting in an increase of $49,000 due to volume. The
change due to rate was a decrease of $204,000 as the average yield on residential mortgages decreased from 4.86% in 2021 to 4.76% in 2022 as a result of the lower rate environment prior to 2022. The increase in market interest rates
during 2022 resulted in a significant slowdown in residential lending activity.
|
•
|
The average balance of construction loans increased $16.9 million from 2021 to 2022 as a result of projects in our south central Pennsylvania market and Delaware market, which resulted in an increase
of $742,000 in interest income. The average yield on construction loans increased from 4.07% to 4.50%, which correlated to a $264,000 increase in interest income.
|
•
|
Interest income on commercial loans increased $4,940,000 from 2021 to 2022. The increase in the average balance of commercial loans of $115.5 million is attributable to the Delaware market. The
increase in the average balance of these loans resulted in an increase in interest income due to volume of $5,549,000. Our lenders have been able to attract and retain loan relationships in their markets by providing excellent
customer service and having attractive products. We believe our lenders are adept at customizing and structuring loans to customers that meet their needs and satisfy our commitment to credit quality. In many cases, the Bank works
with the Small Business Administration (SBA) guaranteed loan programs to offset credit risk and to further promote economic growth in our market area. The average yield on commercial loans decreased 8 basis points to 4.82% in 2022,
resulting in a decrease in interest income due to rate of $609,000. The decrease in yield on commercial loans was due to PPP amortization decreasing $2,061,000 in 2022 compared to 2021.
|
•
|
Interest income on agricultural loans increased $308,000 from 2021 to 2022. The decrease in the average balance of agricultural loans of $2.5 million is primarily attributable to the south central
Pennsylvania market. The decrease in the average balance of these loans resulted in a decrease in interest income due to volume of $108,000. The average yield on agricultural loans increased from 4.31% in 2021 to 4.43% in 2022 due
to a general increase in market rates, resulting in an increase in interest income due to rate of $416,000. We believe our lenders are adept at customizing, understanding and have the expertise to structure loans for customers that
meet their needs and satisfy our commitment to credit quality. In many cases, the Bank works with the United States Department of Agriculture’s (USDA) guaranteed loan programs to offset credit risk and to further promote economic
growth in our market area.
|
•
|
The average balance of loans to state and political subdivisions increased $3.2 million from 2021 to 2022 which had a positive impact of $110,000 on total interest income due to volume was due to
customers issuing debt for various public service projects that the Bank was able to finance. The average tax equivalent yield on loans to state and political subdivisions decreased from 3.54% in 2021 to 3.33% in 2022, decreasing
interest income by $118,000.
|
•
|
The average balance of other loans increased $34.6 million as a result of an increase in outstanding student loans. This resulted in an increase of $1,882,000 on total interest income due to volume.
The average tax equivalent yield on other loans decreased from 5.74% in 2021 to 5.45% in 2022, decreasing interest income by $66,000 in other loans
|
•
|
Interest income on residential mortgage loans decreased $1,294,000. The average balance of residential mortgage loans decreased $7.6 million, resulting in a decrease of $394,000 due to volume. The
decrease in loans was due to loans being refinanced and sold on the secondary market. The change due to rate was a decrease of $900,000 as the average yield on residential mortgages decreased from 5.30% in 2020 to 4.86% in 2021 as a
result of the lower rate environment during the year as a result of COVID-19 pandemic.
|
•
|
The average balance of construction loans increased $30.0 million from 2020 to 2021 as a result of projects in our south central Pennsylvania market and Delaware market, which resulted in an increase
of $1,177,000 in interest income. The average yield on construction loans decreased from 4.89% to 4.07%, which correlated to a $173,000 decrease in interest income.
|
•
|
Interest income on commercial loans increased $5,128,000 from 2020 to 2021. The increase in the average balance of commercial loans of $148.5 million is attributable to the MidCoast acquisition and
growth in the Delaware market. The increase in the average balance of these loans resulted in an increase in interest income due to volume of $7,074,000. The average yield on commercial loans decreased 36 basis points to 4.90% in
2021, resulting in a decrease in interest income due to rate of $1,946,000.
|
•
|
Interest income on agricultural loans decreased $943,000 from 2020 to 2021. The decrease in the average balance of agricultural loans of $7.3 million was primarily attributable to the south central
Pennsylvania market. The decrease in the average balance of these loans resulted in a decrease in interest income due to volume of $321,000. The average yield on agricultural loans decreased from 4.49% in 2020 to 4.31% in 2021 due
to a general decrease in rates, resulting in a decrease in interest income due to rate of $622,000.
|
•
|
The average balance of loans to state and political subdivisions decreased $33.3 million from 2020 to 2021 which had a negative impact of $1,218,000 on total interest income due to volume was due to
customers refinancing through the municipal bond market. The average tax equivalent yield on loans to state and political subdivisions decreased from 4.01% in 2020 to 3.54% in 2021, decreasing interest income by $369,000.
|
•
|
The average balance of other loans increased $3.1 million as a result of an increase in outstanding student loans. This resulted in an increase of $180,000 on total interest income due to volume. The
average tax equivalent yield on other loans increased from 5.65% in 2020 to 5.74% in 2021, increasing interest income by $20,000 in other loans
|
2022
|
2021
|
2020
|
||||||||||
Service charges
|
5,346
|
4,755
|
$
|
4,221
|
||||||||
Trust
|
803
|
865
|
803
|
|||||||||
Brokerage and insurance
|
1,895
|
1,625
|
1,297
|
|||||||||
Equity security gains (losses), net
|
(247
|
)
|
339
|
(41
|
)
|
|||||||
Available for sale security gains (losses), net
|
(14
|
)
|
212
|
305
|
||||||||
Gains on loans sold
|
258
|
1,283
|
2,168
|
|||||||||
Earnings on bank owned life insurance
|
852
|
1,828
|
695
|
|||||||||
Other
|
845
|
1,398
|
1,974
|
|||||||||
Total
|
$
|
9,738
|
$
|
12,305
|
$
|
11,422
|
2022/2021
Change
|
2021/2020
Change
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Service charges
|
$
|
591
|
12.4
|
$
|
534
|
12.7
|
||||||||||
Trust
|
(62
|
)
|
(7.2
|
)
|
62
|
7.7
|
||||||||||
Brokerage and insurance
|
270
|
16.6
|
328
|
25.3
|
||||||||||||
Equity security gains (losses), net
|
(586
|
)
|
(172.9
|
)
|
380
|
(926.8
|
)
|
|||||||||
Available for sale security gains (losses), net
|
(226
|
)
|
(106.6
|
)
|
(93
|
)
|
(30.5
|
)
|
||||||||
Gains on loans sold
|
(1,025
|
)
|
(79.9
|
)
|
(885
|
)
|
(40.8
|
)
|
||||||||
Earnings on bank owned life insurance
|
(976
|
)
|
(53.4
|
)
|
1,133
|
163.0
|
||||||||||
Other
|
(553
|
)
|
(39.6
|
)
|
(576
|
)
|
(29.2
|
)
|
||||||||
Total
|
$
|
(2,567
|
)
|
(20.9
|
)
|
$
|
883
|
7.7
|
2022
|
2021
|
2020
|
||||||||||
Salaries and employee benefits
|
27,837
|
25,902
|
$
|
24,190
|
||||||||
Occupancy
|
3,138
|
2,966
|
2,557
|
|||||||||
Furniture and equipment
|
565
|
519
|
757
|
|||||||||
Professional fees
|
1,891
|
1,526
|
1,517
|
|||||||||
FDIC insurance
|
676
|
522
|
476
|
|||||||||
Pennsylvania shares tax
|
907
|
880
|
868
|
|||||||||
Amortization of intangibles
|
156
|
192
|
216
|
|||||||||
Merger and acquisition
|
-
|
-
|
2,179
|
|||||||||
ORE expenses
|
17
|
439
|
451
|
|||||||||
Software expenses
|
1,446
|
1,321
|
1,155
|
|||||||||
Other
|
8,061
|
7,283
|
6,481
|
|||||||||
Total
|
$
|
44,694
|
$
|
41,550
|
$
|
40,847
|
2022/2021
Change
|
2021/2020
Change
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Salaries and employee benefits
|
$
|
1,935
|
7.5
|
$
|
1,712
|
7.1
|
||||||||||
Occupancy
|
172
|
5.8
|
409
|
16.0
|
||||||||||||
Furniture and equipment
|
46
|
8.9
|
(238
|
)
|
(31.4
|
)
|
||||||||||
Professional fees
|
365
|
23.9
|
9
|
0.6
|
||||||||||||
FDIC insurance
|
154
|
29.5
|
46
|
9.7
|
||||||||||||
Pennsylvania shares tax
|
27
|
3.1
|
12
|
1.4
|
||||||||||||
Amortization of intangibles
|
(36
|
)
|
(18.8
|
)
|
(24
|
)
|
(11.1
|
)
|
||||||||
Merger and acquisition
|
-
|
NA
|
(2,179
|
)
|
(100.0
|
)
|
||||||||||
ORE expenses
|
(422
|
)
|
(96.1
|
)
|
(12
|
)
|
(2.7
|
)
|
||||||||
Software expenses
|
125
|
9.5
|
166
|
14.4
|
||||||||||||
Other
|
778
|
10.7
|
802
|
12.4
|
||||||||||||
Total
|
$
|
3,144
|
7.6
|
$
|
703
|
1.7
|
2022
Balance |
Increase
|
%
Change |
2021
Balance
|
|||||||||||||
Total assets
|
$
|
2,333.4
|
$
|
189.5
|
8.8
|
$
|
2,143.9
|
|||||||||
Total investments
|
439.5
|
27.1
|
6.6
|
412.4
|
||||||||||||
Total loans, net
|
1,706.4
|
282.2
|
19.8
|
1,424.2
|
||||||||||||
Total deposits
|
1,844.2
|
8.0
|
0.4
|
1,836.2
|
||||||||||||
Total borrowings
|
257.3
|
183.3
|
247.7
|
74.0
|
||||||||||||
Total stockholders' equity
|
200.1
|
(12.4
|
)
|
(5.8
|
)
|
212.5
|
2022
Amount |
% of
Total |
2021
Amount
|
% of
Total |
|||||||||||||
Available-for-sale:
|
||||||||||||||||
U. S. Agency securities
|
$
|
70,677
|
16.0
|
$
|
73,945
|
17.8
|
||||||||||
U.S. Treasuries
|
148,570
|
33.6
|
115,347
|
27.8
|
||||||||||||
Obligations of state & political subdivisions
|
110,300
|
25.0
|
112,021
|
27.0
|
||||||||||||
Corporate obligations
|
9,383
|
2.1
|
10,333
|
2.5
|
||||||||||||
Mortgage-backed securities
|
100,576
|
22.8
|
100,756
|
24.3
|
||||||||||||
Equity securities
|
2,208
|
0.5
|
2,270
|
0.6
|
||||||||||||
Total
|
$
|
441,714
|
100.0
|
$
|
414,672
|
100.0
|
One Year or Less
|
After One Year
to Five years |
After Five Years
to Ten Years |
After Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amortized
Cost |
Yield
% |
Amortized
Cost |
Yield
% |
Amortized
Cost
|
Yield
% |
Amortized
Cost
|
Yield
% |
Amortized
Cost
|
Yield
% |
|||||||||||||||||||||||||||||||
Available-for-sale securities:
|
||||||||||||||||||||||||||||||||||||||||
U.S. agency securities
|
$
|
16,660
|
3.4
|
$
|
32,447
|
1.9
|
$
|
23,354
|
1.8
|
$
|
6,095
|
1.5
|
$
|
78,556
|
2.2
|
|||||||||||||||||||||||||
U.S. treasuries
|
9,972
|
1.0
|
139,459
|
1.1
|
12,805
|
1.6
|
-
|
-
|
162,236
|
1.1
|
||||||||||||||||||||||||||||||
Obligations of state & political
Subdivisions
|
4,635
|
3.7
|
14,549
|
2.5
|
26,558
|
1.8
|
74,820
|
1.9
|
120,562
|
2.0
|
||||||||||||||||||||||||||||||
Corporate obligations
|
-
|
-
|
10,335
|
3.6
|
-
|
-
|
-
|
-
|
10,335
|
3.6
|
||||||||||||||||||||||||||||||
Mortgage-backed securities
|
19,121
|
1.0
|
36,394
|
1.5
|
42,271
|
1.4
|
17,518
|
1.4
|
115,304
|
1.4
|
||||||||||||||||||||||||||||||
Total available-for-sale
|
$
|
50,388
|
2.0
|
$
|
233,184
|
1.5
|
$
|
104,988
|
1.6
|
$
|
98,433
|
1.8
|
$
|
486,993
|
1.6
|
2022
|
2021
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Real estate:
|
||||||||||||||||
Residential
|
$
|
210,213
|
12.2
|
$
|
201,097
|
14.0
|
||||||||||
Commercial
|
876,569
|
50.8
|
687,338
|
47.7
|
||||||||||||
Agricultural
|
313,614
|
18.2
|
312,011
|
21.6
|
||||||||||||
Construction
|
80,691
|
4.7
|
55,036
|
3.8
|
||||||||||||
Consumer
|
86,650
|
5.0
|
25,858
|
1.8
|
||||||||||||
Other commercial loans
|
63,222
|
3.7
|
74,585
|
5.2
|
||||||||||||
Other agricultural loans
|
34,832
|
2.0
|
39,852
|
2.8
|
||||||||||||
State & political subdivision loans
|
59,208
|
3.4
|
45,756
|
3.1
|
||||||||||||
Total loans
|
1,724,999
|
100.0
|
1,441,533
|
100.0
|
||||||||||||
Less allowance for loan losses
|
18,552
|
17,304
|
||||||||||||||
Net loans
|
$
|
1,706,447
|
$
|
1,424,229
|
2022/2021
Change
|
||||||||
Amount
|
%
|
|||||||
Real estate:
|
||||||||
Residential
|
$
|
9,116
|
4.5
|
|||||
Commercial
|
189,231
|
27.5
|
||||||
Agricultural
|
1,603
|
0.5
|
||||||
Construction
|
25,655
|
46.6
|
||||||
Consumer
|
60,792
|
235.1
|
||||||
Other commercial loans
|
(11,363
|
)
|
(15.2
|
)
|
||||
Other agricultural loans
|
(5,020
|
)
|
(12.6
|
)
|
||||
State & political subdivision loans
|
13,452
|
29.4
|
||||||
Total loans
|
$
|
283,466
|
19.7
|
Due in One year or less
|
After one year through five years
|
After five years through fifteen years
|
After fifteen years
|
Total
|
||||||||||||||||
Real estate:
|
||||||||||||||||||||
Residential
|
$
|
736
|
$
|
8,003
|
$
|
74,912
|
$
|
126,562
|
$
|
210,213
|
||||||||||
Commercial
|
86,776
|
267,583
|
357,755
|
164,455
|
876,569
|
|||||||||||||||
Agricultural
|
20,260
|
17,031
|
156,043
|
120,280
|
313,614
|
|||||||||||||||
Construction
|
2,193
|
29,675
|
33,395
|
15,428
|
80,691
|
|||||||||||||||
Consumer
|
18,336
|
65,279
|
2,903
|
132
|
86,650
|
|||||||||||||||
Other commercial loans
|
28,933
|
28,483
|
5,806
|
-
|
63,222
|
|||||||||||||||
Other agricultural loans
|
19,232
|
13,257
|
2,343
|
-
|
34,832
|
|||||||||||||||
State & political subdivision loans
|
768
|
1,461
|
27,687
|
29,292
|
59,208
|
|||||||||||||||
$
|
177,234
|
$
|
430,772
|
$
|
660,844
|
$
|
456,149
|
$
|
1,724,999
|
Sensitivity of loans to changes in interest rates - loans due after December 31, 2023:
|
Predetermined interest rate
|
Floating or adjustable interest rate
|
Total
|
|||||||||
Real estate:
|
||||||||||||
Residential
|
$
|
116,160
|
$
|
93,317
|
$
|
209,477
|
||||||
Commercial
|
383,030
|
406,763
|
789,793
|
|||||||||
Agricultural
|
13,923
|
279,431
|
293,354
|
|||||||||
Construction
|
32,657
|
45,841
|
78,498
|
|||||||||
Consumer
|
4,823
|
63,491
|
68,314
|
|||||||||
Other commercial loans
|
19,711
|
14,578
|
34,289
|
|||||||||
Other agricultural loans
|
10,736
|
4,864
|
15,600
|
|||||||||
State & political subdivision loans
|
35,770
|
22,670
|
58,440
|
|||||||||
$
|
616,810
|
$
|
930,955
|
$
|
1,547,765
|
2022
|
2021
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Real estate loans:
|
||||||||||||||||
Residential
|
$
|
1,056
|
12.2
|
$
|
1,147
|
14.0
|
||||||||||
Commercial
|
10,120
|
50.8
|
8,099
|
47.7
|
||||||||||||
Agricultural
|
4,589
|
18.2
|
4,729
|
21.6
|
||||||||||||
Construction
|
801
|
4.7
|
434
|
3.8
|
||||||||||||
Consumer
|
135
|
5.0
|
262
|
1.8
|
||||||||||||
Other commercial loans
|
1,040
|
3.7
|
1,023
|
5.2
|
||||||||||||
Other agricultural loans
|
489
|
2.0
|
558
|
2.8
|
||||||||||||
State & political subdivision loans
|
322
|
3.4
|
281
|
3.1
|
||||||||||||
Unallocated
|
-
|
N/A
|
771
|
N/A
|
||||||||||||
Total allowance for loan losses
|
$
|
18,552
|
100.0
|
$
|
17,304
|
100.0
|
2022
|
Credit Loss Expense (Benefit)
|
Net (charge-offs) Recoveries
|
Average Loans
|
Ratio of net (charge-offs) recoveries to Average loans
|
Allowance to total loans
|
Non-accrual loans as a percent of loans
|
Allowance to total non-accrual loans
|
|||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||
Residential
|
$
|
(91
|
)
|
-
|
$
|
204,063
|
0.00
|
%
|
0.50
|
%
|
0.28
|
%
|
178.68
|
%
|
||||||||||||||
Commercial
|
2,018
|
3
|
782,016
|
0.00
|
%
|
1.15
|
%
|
0.32
|
%
|
364.29
|
%
|
|||||||||||||||||
Agricultural
|
(140
|
)
|
-
|
312,999
|
0.00
|
%
|
1.46
|
%
|
1.03
|
%
|
142.43
|
%
|
||||||||||||||||
Construction
|
367
|
-
|
73,214
|
0.00
|
%
|
0.99
|
%
|
0.00
|
%
|
NA
|
||||||||||||||||||
Consumer
|
(111
|
)
|
(16
|
)
|
58,715
|
-0.03
|
%
|
0.16
|
%
|
0.00
|
%
|
NA
|
||||||||||||||||
Other commercial loans
|
439
|
(422
|
)
|
72,444
|
-0.58
|
%
|
1.64
|
%
|
0.10
|
%
|
1677.42
|
%
|
||||||||||||||||
Other agricultural loans
|
(69
|
)
|
-
|
34,421
|
0.00
|
%
|
1.40
|
%
|
0.82
|
%
|
171.58
|
%
|
||||||||||||||||
State & political subdivision loans
|
41
|
-
|
56,004
|
0.00
|
%
|
0.54
|
%
|
0.00
|
%
|
NA
|
||||||||||||||||||
Unallocated
|
(771
|
)
|
-
|
-
|
NA
|
NA
|
NA
|
NA
|
||||||||||||||||||||
Total
|
$
|
1,683
|
$
|
(435
|
)
|
$
|
1,593,876
|
-0.03
|
%
|
1.08
|
%
|
0.40
|
%
|
267.40
|
%
|
|||||||||||||
2021
|
||||||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||
Residential
|
$
|
(27
|
)
|
-
|
$
|
203,062
|
0.00
|
%
|
0.57
|
%
|
0.30
|
%
|
192.77
|
%
|
||||||||||||||
Commercial
|
1,848
|
35
|
639,161
|
0.01
|
%
|
1.18
|
%
|
0.43
|
%
|
275.01
|
%
|
|||||||||||||||||
Agricultural
|
(224
|
)
|
-
|
312,770
|
0.00
|
%
|
1.52
|
%
|
1.00
|
%
|
150.94
|
%
|
||||||||||||||||
Construction
|
312
|
-
|
56,315
|
0.00
|
%
|
0.79
|
%
|
0.00
|
%
|
NA
|
||||||||||||||||||
Consumer
|
(53
|
)
|
(6
|
)
|
24,125
|
-0.02
|
%
|
1.01
|
%
|
0.00
|
%
|
NA
|
||||||||||||||||
Other commercial loans
|
(113
|
)
|
(90
|
)
|
99,839
|
-0.09
|
%
|
1.37
|
%
|
0.19
|
%
|
730.71
|
%
|
|||||||||||||||
Other agricultural loans
|
(306
|
)
|
-
|
37,181
|
0.00
|
%
|
1.40
|
%
|
2.01
|
%
|
69.49
|
%
|
||||||||||||||||
State & political subdivision loans
|
(198
|
)
|
-
|
52,804
|
0.00
|
%
|
0.61
|
%
|
0.00
|
%
|
NA
|
|||||||||||||||||
Unallocated
|
311
|
-
|
-
|
NA
|
NA
|
NA
|
NA
|
|||||||||||||||||||||
Total
|
$
|
1,550
|
$
|
(61
|
)
|
$
|
1,425,257
|
0.00
|
%
|
1.20
|
%
|
0.53
|
%
|
227.21
|
%
|
|||||||||||||
2020
|
||||||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||
Residential
|
$
|
46
|
14
|
$
|
210,696
|
0.01
|
%
|
0.58
|
%
|
0.40
|
%
|
144.58
|
%
|
|||||||||||||||
Commercial
|
2,065
|
(398
|
)
|
478,415
|
-0.08
|
%
|
1.04
|
%
|
0.76
|
%
|
137.25
|
%
|
||||||||||||||||
Agricultural
|
(84
|
)
|
15
|
311,100
|
0.00
|
%
|
1.57
|
%
|
0.99
|
%
|
158.09
|
%
|
||||||||||||||||
Construction
|
79
|
0
|
26,343
|
0.00
|
%
|
0.34
|
%
|
0.00
|
%
|
NA
|
||||||||||||||||||
Consumer
|
238
|
(29
|
)
|
20,986
|
-0.14
|
%
|
1.06
|
%
|
0.00
|
%
|
NA
|
|||||||||||||||||
Other commercial loans
|
3
|
(32
|
)
|
112,054
|
-0.03
|
%
|
1.07
|
%
|
1.12
|
%
|
95.48
|
%
|
||||||||||||||||
Other agricultural loans
|
(97
|
)
|
-
|
46,101
|
0.00
|
%
|
1.77
|
%
|
2.00
|
%
|
88.71
|
%
|
||||||||||||||||
State & political subdivision loans
|
(57
|
)
|
-
|
86,143
|
0.00
|
%
|
0.76
|
%
|
0.00
|
%
|
NA
|
|||||||||||||||||
Unallocated
|
207
|
-
|
-
|
NA
|
NA
|
NA
|
NA
|
|||||||||||||||||||||
Total
|
$
|
2,400
|
$
|
(430
|
)
|
$
|
1,291,838
|
-0.03
|
%
|
1.13
|
%
|
0.76
|
%
|
147.36
|
%
|
•
|
Level of and trends in delinquencies, impaired/classified loans
|
■
|
Change in volume and severity of past due loans
|
■
|
Volume of non-accrual loans
|
■
|
Volume and severity of classified, adversely or graded loans
|
•
|
Level of and trends in charge-offs and recoveries
|
•
|
Trends in volume, terms and nature of the loan portfolio
|
•
|
Effects of any changes in risk selection and underwriting standards and any other changes in lending and recovery policies, procedures and practices
|
•
|
Changes in the quality of the Bank’s loan review system
|
•
|
Experience, ability and depth of lending management and other relevant staff
|
•
|
National, state, regional and local economic trends and business conditions
|
■
|
General economic conditions
|
■
|
Unemployment rates
|
■
|
Inflation / CPI
|
■
|
Changes in values of underlying collateral for collateral-dependent loans
|
•
|
Industry conditions including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses.
|
•
|
Existence and effect of any credit concentrations, and changes in the level of such concentrations
|
•
|
Any change in the level of board oversight
|
2022
|
2021
|
|||||||
Non-performing assets:
|
||||||||
Non-accruing loans
|
$
|
6,938
|
$
|
7,616
|
||||
Accrual loans - 90 days or more past due
|
7
|
46
|
||||||
Total non-performing loans
|
$
|
6,945
|
$
|
7,662
|
||||
Foreclosed assets held for sale
|
543
|
1,180
|
||||||
Total non-performing assets
|
$
|
7,488
|
$
|
8,842
|
||||
Troubled debt restructurings (TDR)
|
||||||||
Non-accruing TDRs
|
$
|
3,333
|
$
|
4,295
|
||||
Accrual TDRs
|
4,358
|
6,810
|
||||||
Total troubled debt restructurings
|
$
|
7,691
|
$
|
11,105
|
December 31, 2022
|
December 31, 2021
|
|||||||||||||||||||||||||||||||
Non-Performing Loans
|
Non-Performing Loans
|
|||||||||||||||||||||||||||||||
30 - 89 Days
Past Due |
90 Days Past
Due Accruing |
Non-
accrual |
Total Non-
Performing |
30 - 89 Days
Past Due |
90 Days Past
Due Accruing |
Non-
accrual |
Total Non-
Performing |
|||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||
Residential
|
$
|
469
|
$
|
-
|
$
|
591
|
$
|
591
|
$
|
492
|
$
|
46
|
$
|
595
|
$
|
641
|
||||||||||||||||
Commercial
|
1,018
|
-
|
2,778
|
2,778
|
243
|
-
|
2,945
|
2,945
|
||||||||||||||||||||||||
Agricultural
|
-
|
-
|
3,222
|
3,222
|
31
|
-
|
3,133
|
3,133
|
||||||||||||||||||||||||
Construction
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Consumer
|
147
|
7
|
-
|
7
|
163
|
-
|
-
|
-
|
||||||||||||||||||||||||
Other commercial loans
|
1,695
|
-
|
62
|
62
|
28
|
-
|
140
|
140
|
||||||||||||||||||||||||
Other agricultural loans
|
-
|
-
|
285
|
285
|
10
|
-
|
803
|
803
|
||||||||||||||||||||||||
Total nonperforming loans
|
$
|
3,329
|
$
|
7
|
$
|
6,938
|
$
|
6,945
|
$
|
967
|
$
|
46
|
$
|
7,616
|
$
|
7,662
|
Change in Non-Performing Loans
|
||||||||
2022 / 2021 | ||||||||
Amount
|
%
|
|||||||
Real estate:
|
||||||||
Residential
|
$
|
(17
|
)
|
(2.8
|
)
|
|||
Commercial
|
(200
|
)
|
(6.7
|
)
|
||||
Agricultural
|
89
|
2.8
|
||||||
Construction
|
-
|
-
|
||||||
Consumer
|
7
|
NA
|
||||||
Other commercial loans
|
(78
|
)
|
(55.7
|
)
|
||||
Other agricultural loans
|
(518
|
)
|
(64.5
|
)
|
||||
Total nonperforming loans
|
$
|
(717
|
)
|
(9.4
|
)
|
•
|
A commercial loan relationship with $804,000 outstanding, and additional letters of credit of $1.2 million available, secured by undeveloped land, stone quarries and equipment, was on non-accrual
status as of December 31, 2022. The Company services the natural gas industry, as well as local municipalities. As a result, the reduced exploration for natural gas in north central Pennsylvania has significantly impacted the cash
flows of the customer, who provides excavation services and stone for pad construction related to these activities. During 2020, the Company had the underlying equipment collateral appraised and in the first quarter of 2022, the
Company had the quarry appraised. The appraisals indicated a decrease in collateral values compared to the appraisal ordered for the loan origination, however, the loan was still considered well secured on a loan to value basis at
December 31, 2022. In 2021 and 2022, the customer has liquidated some excess equipment and the funds have been utilized to pay down a portion of the loans. Management determined that no specific reserve was required as of December
31, 2022.
|
•
|
An agricultural loan customer with a total loan relationship of $1.9 million, secured by real estate, equipment and cattle, was on non-accrual status as of December 31, 2022. The customer declared
bankruptcy during the fourth quarter of 2018 and developed a workout plan that was approved by the bankruptcy court in the fourth quarter of 2019 and resulted in monthly payments resuming in late 2019 that have continued through
2022. Included within these loans to this customer are $758,000 of loans which are subject to Farm Service Agency guarantees. Absent a sizable and sustained increase in milk prices, which is not assured, we will need to rely upon
the collateral for repayment of interest and principal. During 2020, the Company had the underlying collateral appraised. Management determined that no specific reserve was required as of December 31, 2022.
|
•
|
An agricultural loan customer with a total loan relationship of $1.2 million, secured by real estate was on non-accrual status as of December 31, 2022. The COVID-19 pandemic has escalated the cash
flow difficulties this customer was experiencing. We expect that we will need to rely upon the collateral for repayment of interest and principal. Management reviewed the collateral and determined that no specific reserve was
required as of December 31, 2022.
|
•
|
Three loan relationships comprise 55.2% of the non-performing loan balance, which did not require any specific reserves as of December 31, 2022.
|
•
|
The Company has a history of low charge-offs, which were 0.03% and 0.00% of average loans for 2022 and 2021, respectively.
|
2022
|
2021
|
2020
|
||||||||||||||||||||||
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||
Non-interest-bearing deposits
|
$
|
396,261
|
21.5
|
$
|
358,073
|
19.5
|
$
|
303,762
|
19.1
|
|||||||||||||||
NOW accounts
|
512,501
|
27.8
|
485,292
|
26.4
|
422,083
|
26.6
|
||||||||||||||||||
Savings deposits
|
321,917
|
17.5
|
313,048
|
17.0
|
255,853
|
16.1
|
||||||||||||||||||
Money market deposit accounts
|
335,838
|
18.2
|
350,122
|
19.1
|
225,968
|
14.2
|
||||||||||||||||||
Certificates of deposit
|
277,691
|
15.0
|
329,616
|
18.0
|
381,192
|
24.0
|
||||||||||||||||||
Total
|
$
|
1,844,208
|
100.0
|
$
|
1,836,151
|
100.0
|
$
|
1,588,858
|
100.0
|
2022/2021
Change
|
2021/2020
Change
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Non-interest-bearing deposits
|
$
|
38,188
|
10.7
|
$
|
54,311
|
17.9
|
||||||||||
NOW accounts
|
27,209
|
5.6
|
63,209
|
15.0
|
||||||||||||
Savings deposits
|
8,869
|
2.8
|
57,195
|
22.4
|
||||||||||||
Money market deposit accounts
|
(14,284
|
)
|
(4.1
|
)
|
124,154
|
54.9
|
||||||||||
Certificates of deposit
|
(51,925
|
)
|
(15.8
|
)
|
(51,576
|
)
|
(13.5
|
)
|
||||||||
Total
|
$
|
8,057
|
0.4
|
$
|
247,293
|
15.6
|
3 months or less
|
$
|
6,166
|
||
Over 3 months through 6 months
|
7,602
|
|||
Over 6 months through 12 months
|
18,275
|
|||
Over 12 months
|
22,244
|
|||
Total
|
$
|
54,287
|
||
As a percent of total certificates of deposit
|
19.55
|
%
|
2022
|
2021
|
2020
|
||||||||||||||||||||||
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||
Individuals
|
$
|
921,404
|
50.0
|
$
|
938,331
|
51.1
|
$
|
865,041
|
54.4
|
|||||||||||||||
Businesses and other organizations
|
586,531
|
31.8
|
534,402
|
29.1
|
467,159
|
29.4
|
||||||||||||||||||
State & political subdivisions
|
336,273
|
18.2
|
363,418
|
19.8
|
256,658
|
16.2
|
||||||||||||||||||
Total
|
$
|
1,844,208
|
100.0
|
$
|
1,836,151
|
100.0
|
$
|
1,588,858
|
100.0
|
■
|
Branch facility, Ephrata, Pennsylvania totaling $1,011,000
|
■
|
Branch facility, Greenville, Delaware $73,000
|
■
|
Signage upgrades and rebranding purchases totaling $71,000
|
■
|
ATM upgrades totaling $40,000
|
■
|
Building security improvements totaling $78,000
|
■
|
Computers, servers and copier purchases $96,000
|
■
|
Operations building in Wellsboro, Pennsylvania totaling $753,000
|
■
|
Vehicle purchases totaling $82,000
|
■
|
ATM upgrades totaling $124,000
|
■
|
Building and ground improvements totaling $96,000
|
Contractual Obligations
|
One year
or Less |
One to
Three Years |
Three to
Five Years |
Over Five
Years |
Total
|
|||||||||||||||
Deposits without a stated maturity
|
$
|
1,566,517
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,566,517
|
||||||||||
Time deposits
|
153,926
|
82,643
|
35,356
|
5,766
|
277,691
|
|||||||||||||||
FHLB Advances
|
169,110
|
-
|
-
|
-
|
169,110
|
|||||||||||||||
Term borrowings - FHLB
|
43,000
|
10,000
|
-
|
-
|
53,000
|
|||||||||||||||
Note Payable
|
-
|
-
|
-
|
7,500
|
7,500
|
|||||||||||||||
Subordinated Debt
|
-
|
-
|
-
|
10,000
|
10,000
|
|||||||||||||||
Repurchase agreements
|
17,776
|
-
|
-
|
-
|
17,776
|
|||||||||||||||
Operating leases
|
847
|
1,466
|
1,277
|
2,354
|
5,944
|
|||||||||||||||
Total
|
$
|
1,951,176
|
$
|
94,109
|
$
|
36,633
|
$
|
25,620
|
$
|
2,107,538
|
Maturity or Re-pricing of Company Assets and Liabilities as of December 31, 2022
|
||||||||||||||||||||||||||||
Within
Three
Months
|
Four to
Twelve
Months
|
One to
Two
Years
|
Two to
Three
Years
|
Three to
Five
Years
|
Over
Five
Years
|
Total
|
||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||
Interest-bearing deposits at banks
|
$
|
1,397
|
$
|
2,085
|
$
|
250
|
$
|
-
|
$
|
3,720
|
$
|
-
|
$
|
7,452
|
||||||||||||||
Investment securities
|
24,724
|
31,141
|
62,981
|
58,072
|
108,856
|
201,219
|
486,993
|
|||||||||||||||||||||
Residential mortgage loans
|
35,195
|
34,287
|
34,429
|
28,925
|
39,802
|
37,575
|
210,213
|
|||||||||||||||||||||
Construction loans
|
31,326
|
24,196
|
25,169
|
-
|
-
|
-
|
80,691
|
|||||||||||||||||||||
Commercial and farm loans
|
220,874
|
205,114
|
177,534
|
222,950
|
374,199
|
87,566
|
1,288,237
|
|||||||||||||||||||||
Loans to state & political subdivisions
|
7,628
|
3,900
|
5,059
|
4,831
|
14,404
|
23,386
|
59,208
|
|||||||||||||||||||||
Other loans
|
66,460
|
4,299
|
4,468
|
3,216
|
3,835
|
4,372
|
86,650
|
|||||||||||||||||||||
Total interest-earning assets
|
$
|
387,604
|
$
|
305,022
|
$
|
309,890
|
$
|
317,994
|
$
|
544,816
|
$
|
354,118
|
$
|
2,219,444
|
||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||
NOW accounts
|
$
|
338,542
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
173,959
|
$
|
512,501
|
||||||||||||||
Savings accounts
|
-
|
-
|
-
|
-
|
-
|
321,917
|
321,917
|
|||||||||||||||||||||
Money Market accounts
|
309,211
|
-
|
-
|
-
|
-
|
26,627
|
335,838
|
|||||||||||||||||||||
Certificates of deposit
|
43,299
|
110,627
|
50,951
|
31,692
|
35,356
|
5,766
|
277,691
|
|||||||||||||||||||||
Long-term borrowing
|
186,886
|
-
|
10,000
|
15,000
|
33,392
|
12,000
|
257,278
|
|||||||||||||||||||||
Total interest-bearing liabilities
|
$
|
877,938
|
$
|
110,627
|
$
|
60,951
|
$
|
46,692
|
$
|
68,748
|
$
|
540,269
|
$
|
1,705,225
|
||||||||||||||
Excess interest-earning
assets (liabilities)
|
$ |
(490,334
|
)
|
$ |
194,395
|
$ |
248,939
|
$ |
271,302
|
$ |
476,068
|
$ |
(186,151
|
)
|
||||||||||||||
Cumulative interest-earning assets
|
$
|
387,604
|
$
|
692,626
|
$
|
1,002,516
|
$
|
1,320,510
|
$
|
1,865,326
|
$
|
2,219,444
|
||||||||||||||||
Cumulative interest-bearing liabilities
|
877,938
|
988,565
|
1,049,516
|
1,096,208
|
1,164,956
|
1,705,225
|
||||||||||||||||||||||
Cumulative gap
|
$
|
(490,334
|
)
|
$
|
(295,939
|
)
|
$
|
(47,000
|
)
|
$
|
224,302
|
$
|
700,370
|
$
|
514,219
|
|||||||||||||
Cumulative interest rate
sensitivity ratio (1)
|
0.44
|
0.70
|
0.96
|
1.20
|
1.60
|
1.30
|
Changes in Rates
|
Prospective One-Year
Net Interest Income |
Change In
Prospective |
% Change In
Prospective |
|||||||||
-400 Shock
|
$
|
75,244
|
$
|
(2,002
|
)
|
-2.59
|
%
|
|||||
-300 Shock
|
76,146
|
(1,100
|
)
|
-1.42
|
%
|
|||||||
-200 Shock
|
77,035
|
(211
|
)
|
-0.27
|
%
|
|||||||
-100 Shock
|
77,559
|
313
|
0.41
|
%
|
||||||||
Base
|
77,246
|
-
|
-
|
|||||||||
+100 Shock
|
75,649
|
(1,597
|
)
|
-2.07
|
%
|
|||||||
+200 Shock
|
73,838
|
(3,408
|
)
|
-4.41
|
%
|
|||||||
+300 Shock
|
72,281
|
(4,965
|
)
|
-6.43
|
%
|
|||||||
+400 Shock
|
70,704
|
(6,542
|
)
|
-8.47
|
%
|
December 31,
|
||||||||
(in thousands, except share data)
|
2022
|
2021
|
||||||
ASSETS:
|
||||||||
Cash and cash equivalents:
|
||||||||
Noninterest-bearing
|
$
|
|
$
|
|
||||
Interest-bearing
|
|
|
||||||
Total cash and cash equivalents
|
|
|
||||||
Interest bearing time deposits with other banks
|
|
|
||||||
Equity securities
|
|
|
||||||
Available-for-sale securities
|
|
|
||||||
Loans held for sale
|
|
|
||||||
Loans (net of allowance for loan losses: 2022, $
|
|
|
||||||
Premises and equipment
|
|
|
||||||
Accrued interest receivable
|
|
|
||||||
Goodwill
|
|
|
||||||
Bank owned life insurance
|
|
|
||||||
Other intangibles
|
|
|
||||||
Fair value of derivative instruments - asset
|
||||||||
Deferred tax asset
|
||||||||
Other assets
|
|
|
||||||
TOTAL ASSETS
|
$
|
|
$
|
|
||||
LIABILITIES:
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$
|
|
$
|
|
||||
Interest-bearing
|
|
|
||||||
Total deposits
|
|
|
||||||
Borrowed funds
|
|
|
||||||
Accrued interest payable
|
|
|
||||||
Fair value of derivative instruments - liability
|
||||||||
Other liabilities
|
|
|
||||||
TOTAL LIABILITIES
|
|
|
||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Preferred Stock $
|
|
|
||||||
Common Stock $
|
|
|||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income (loss)
|
( |
) |
(
|
)
|
||||
Treasury stock, at cost:
|
( |
) | ( |
) | ||||
TOTAL STOCKHOLDERS’ EQUITY
|
|
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
|
$
|
|
(in thousands, except share and per share data)
|
2022
|
2021
|
2020
|
|||||||||
INTEREST AND DIVIDEND INCOME:
|
||||||||||||
Interest and fees on loans
|
$
|
|
$
|
|
$
|
|
||||||
Interest-bearing deposits with banks
|
|
|
|
|||||||||
Investment securities:
|
||||||||||||
Taxable
|
|
|
|
|||||||||
Nontaxable
|
|
|
|
|||||||||
Dividends
|
|
|
|
|||||||||
TOTAL INTEREST AND DIVIDEND INCOME
|
|
|
|
|||||||||
INTEREST EXPENSE:
|
||||||||||||
Deposits
|
|
|
|
|||||||||
Borrowed funds
|
|
|
|
|||||||||
TOTAL INTEREST EXPENSE
|
|
|
|
|||||||||
NET INTEREST INCOME
|
|
|
|
|||||||||
Provision for loan losses
|
|
|
|
|||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
|
|
|
|||||||||
NON-INTEREST INCOME:
|
||||||||||||
Service charges
|
|
|
|
|||||||||
Trust
|
|
|
|
|||||||||
Brokerage and insurance
|
|
|
|
|||||||||
Equity security gains (losses), net
|
(
|
)
|
|
(
|
)
|
|||||||
Available for sale security gains (losses), net
|
(
|
)
|
|
|
||||||||
Gains on loans sold
|
|
|
|
|||||||||
Earnings on bank owned life insurance
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
TOTAL NON-INTEREST INCOME
|
|
|
|
|||||||||
NON-INTEREST EXPENSES:
|
||||||||||||
Salaries and employee benefits
|
|
|
|
|||||||||
Occupancy
|
|
|
|
|||||||||
Furniture and equipment
|
|
|
|
|||||||||
Professional fees
|
|
|
|
|||||||||
Federal depository insurance
|
|
|
|
|||||||||
Pennsylvania shares tax
|
|
|
|
|||||||||
Amortization of intangibles
|
|
|
|
|||||||||
Merger and acquisition
|
|
|
|
|||||||||
ORE expenses
|
|
|
|
|||||||||
Software expenses
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
TOTAL NON-INTEREST EXPENSES
|
|
|
|
|||||||||
Income before provision for income taxes
|
|
|
|
|||||||||
Provision for income taxes
|
|
|
|
|||||||||
NET INCOME
|
$
|
|
$
|
|
$
|
|
||||||
PER COMMON SHARE DATA:
|
||||||||||||
EARNINGS PER SHARE - BASIC
|
$
|
|
$
|
|
$
|
|
||||||
EARNINGS PER SHARE - DILUTED
|
$
|
|
$
|
|
$
|
|
||||||
CASH DIVIDENDS PER SHARE
|
$
|
|
$
|
|
$
|
|
||||||
Number of shares used in computation - basic
|
|
|
|
|||||||||
Number of shares used in computation - diluted
|
|
|
|
(in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Net Income
|
$
|
|
$
|
|
$
|
|
||||||
Other Comprehensive income (loss)
|
||||||||||||
Securities available for sale
|
||||||||||||
Unrealized holding gain (loss) during the period
|
(
|
)
|
(
|
)
|
|
|||||||
Income tax (benefit)
|
(
|
)
|
(
|
)
|
|
|||||||
Subtotal
|
(
|
)
|
(
|
)
|
|
|||||||
Reclassification adjustment for (gains) losses included in income
|
( |
) | ( |
) | ||||||||
Income tax (benefit)
|
|
(
|
)
|
(
|
)
|
|||||||
Subtotal
|
|
(
|
)
|
(
|
)
|
|||||||
Unrealized loss (gain) on interest rate swap
|
|
|
(
|
)
|
||||||||
Income tax (benefit)
|
|
|
(
|
)
|
||||||||
Other comprehensive (loss) gain on interest rate swap
|
|
|
(
|
)
|
||||||||
Change in unrecognized pension costs
|
|
|
(
|
)
|
||||||||
Income tax (benefit)
|
|
|
(
|
)
|
||||||||
Other comprehensive gain (loss) gain on unrecognized pension costs
|
|
|
(
|
)
|
||||||||
Net other comprehensive (loss) income
|
(
|
)
|
(
|
)
|
|
|||||||
Comprehensive (loss) income
|
$
|
(
|
)
|
$
|
|
$
|
|
Common Stock
|
Additional Paid-in
|
Retained
|
Accumulated
Other Comprehensive
|
Treasury
|
||||||||||||||||||||||||
(in thousands, except share data)
|
Shares
|
Amount
|
Capital
|
Earnings
|
Income (Loss)
|
Stock
|
Total
|
|||||||||||||||||||||
Balance, December 31, 2019
|
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
||||||||||||||||||||||||||||
Net other comprehensive income
|
||||||||||||||||||||||||||||
Stock dividend (
|
( |
) | ||||||||||||||||||||||||||
Stock issued for acquisition
|
||||||||||||||||||||||||||||
Purchase of treasury stock (
|
( |
) | ( |
) | ||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards
|
( |
) | ||||||||||||||||||||||||||
Restricted stock vesting
|
||||||||||||||||||||||||||||
Sale of treasury stock
|
||||||||||||||||||||||||||||
Forfeited restricted stock
|
( |
) | ||||||||||||||||||||||||||
Cash dividend reinvestment paid from treasury stock
|
( |
) | ||||||||||||||||||||||||||
Cash dividends, $
|
( |
) | ( |
) | ||||||||||||||||||||||||
Balance, December 31, 2020
|
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
||||||||||||||||||||||||||||
Net other comprehensive income (loss)
|
( |
) | ( |
) | ||||||||||||||||||||||||
Stock dividend (
|
( |
) | ||||||||||||||||||||||||||
Purchase of treasury stock (
|
( |
) | ( |
) | ||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards
|
( |
) | ||||||||||||||||||||||||||
Restricted stock vesting
|
||||||||||||||||||||||||||||
Forfeited restricted stock
|
( |
) | ||||||||||||||||||||||||||
Cash dividends, $
|
( |
) | ( |
) | ||||||||||||||||||||||||
Balance, December 31, 2021
|
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Comprehensive loss:
|
||||||||||||||||||||||||||||
Net income
|
||||||||||||||||||||||||||||
Net other comprehensive loss
|
( |
) | ( |
) | ||||||||||||||||||||||||
Stock dividend (
|
( |
) | ||||||||||||||||||||||||||
Purchase of treasury stock (
|
( |
) | ( |
) | ||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards
|
( |
) | ||||||||||||||||||||||||||
Restricted stock vesting
|
||||||||||||||||||||||||||||
Sale of treasury stock
|
||||||||||||||||||||||||||||
Forfeited restricted stock
|
( |
) | ||||||||||||||||||||||||||
Cash dividends, $
|
( |
) | ( |
) | ||||||||||||||||||||||||
Balance, December 31, 2022
|
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ |
Year Ended December 31,
|
||||||||||||
(in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Cash Flows from Operating Activities:
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Provision for loan losses
|
|
|
|
|||||||||
Depreciation and amortization
|
|
|
|
|||||||||
Amortization and accretion of loans and other assets
|
( |
) | ( |
) | ( |
) | ||||||
Amortization and accretion on investment securities
|
|
|
|
|||||||||
Deferred income taxes
|
(
|
)
|
|
|
||||||||
Equity security (gains) losses, net
|
|
(
|
)
|
|
||||||||
Available for sale security (gains) losses, net
|
|
(
|
)
|
(
|
)
|
|||||||
Earnings on bank owned life insurance
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Stock awards
|
|
|
|
|||||||||
Originations of loans held for sale
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from sales of loans held for sale
|
|
|
|
|||||||||
Realized gains on loans sold
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
(Increase) decrease in accrued interest receivable
|
(
|
)
|
|
(
|
)
|
|||||||
Increase (decrease) in accrued interest payable
|
|
(
|
)
|
(
|
)
|
|||||||
Other, net
|
(
|
)
|
|
|
||||||||
Net cash provided by operating activities
|
|
|
|
|||||||||
Cash Flows from Investing Activities:
|
||||||||||||
Available-for-sale securities:
|
||||||||||||
Proceeds from sales of available-for-sale securities
|
|
|
|
|||||||||
Proceeds from maturity and principal repayments of securities
|
|
|
|
|||||||||
Purchase of securities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Purchase of equity securities
|
(
|
)
|
|
(
|
)
|
|||||||
Proceeds from sale of equity securities
|
|
|
|
|||||||||
Proceeds from redemption of Regulatory Stock
|
|
|
|
|||||||||
Purchase of Regulatory Stock
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net increase in loans
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Purchase of interest bearing time deposits
|
(
|
)
|
|
(
|
)
|
|||||||
Proceeds from matured interest bearing time deposits with other banks
|
|
|
|
|||||||||
Proceeds from sale of interest bearing time deposits with other banks
|
||||||||||||
Purchase of bank owned life insurance
|
( |
) | ||||||||||
Purchase of premises, equipment and software
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from life insurance
|
|
|
|
|||||||||
Investments in low income housing partnerships
|
( |
) | ||||||||||
Proceeds from sale of foreclosed assets held for sale
|
|
|
|
|||||||||
Acquisition, net of cash paid
|
|
|
|
|||||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Cash Flows from Financing Activities:
|
||||||||||||
Net increase in deposits
|
|
|
|
|||||||||
Proceeds from long-term borrowings
|
|
|
|
|||||||||
Repayments of long-term borrowings
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net increase (decrease) in short-term borrowed funds
|
|
|
(
|
)
|
||||||||
Purchase of treasury stock
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Sale of treasury stock to employee stock purchase plan
|
|
|
|
|||||||||
Dividends paid
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net cash provided by financing activities
|
|
|
|
|||||||||
Net (decrease) increase in cash and cash equivalents
|
(
|
)
|
|
|
||||||||
Cash and Cash Equivalents at Beginning of Year
|
|
|
|
|||||||||
Cash and Cash Equivalents at End of Year
|
$
|
|
$
|
|
$
|
|
||||||
Supplemental Disclosures of Cash Flow Information:
|
||||||||||||
Interest paid
|
$
|
|
$
|
|
$
|
|
||||||
Income taxes paid
|
$
|
|
$
|
|
$
|
|
||||||
Non-cash activities:
|
||||||||||||
Stock dividend
|
$
|
|
$
|
|
$
|
|
||||||
Real estate acquired in settlement of loans
|
$
|
|
$
|
|
$
|
|
||||||
Right of use asset and liability
|
$
|
|
$
|
|
$
|
|
||||||
Acquisition of
|
Midcoast
Community
Bancorp Inc.
|
|||||||||||
Non-cash assets acquired
|
||||||||||||
Available-for-sale securities
|
$ | $ | $ | |||||||||
Interest bearing time deposits with other banks
|
||||||||||||
Loans
|
|
|||||||||||
Premises and equipment
|
|
|||||||||||
Accrued interest receivable
|
|
|||||||||||
Bank owned life insurance
|
|
|||||||||||
Intangibles
|
|
|||||||||||
Deferred tax asset
|
|
|||||||||||
Other assets
|
|
|||||||||||
Goodwill
|
|
|||||||||||
|
||||||||||||
Liabilities assumed
|
||||||||||||
Noninterest-bearing deposits
|
|
|||||||||||
Interest-bearing deposits
|
|
|||||||||||
Accrued interest payable
|
|
|||||||||||
Borrowed funds
|
|
|||||||||||
Other liabilities
|
|
|||||||||||
|
||||||||||||
Net non-cash liabilities acquired
|
|
|||||||||||
Cash and cash equivalents acquired
|
$
|
|
$ | $ |
• |
Level of and trends in delinquencies, impaired/classified loans
|
• |
Change in volume and severity of past due loans
|
• |
Volume of non-accrual loans
|
• |
Volume and severity of classified, adversely or graded loans
|
• |
Level of and trends in charge-offs and recoveries
|
• |
Trends in volume, terms and nature of the loan portfolio
|
• |
Effects of any changes in risk selection and underwriting standards and any other changes in lending and recovery policies, procedures and practices
|
• |
Changes in the quality of the Bank’s loan review system
|
• |
Experience, ability and depth of lending management and other relevant staff
|
• |
National, state, regional and local economic trends and business conditions
|
• |
General economic conditions
|
• |
Unemployment rates
|
• |
Inflation / CPI
|
• |
Changes in values of underlying collateral for collateral-dependent loans
|
• |
Industry conditions including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses.
|
• |
Existence and effect of any credit concentrations, and changes in the level of such concentrations
|
• |
Any change in the level of board oversight
|
2022
|
2021
|
2020
|
||||||||||
Basic earnings per share computation:
|
||||||||||||
Net income applicable to common stock
|
$
|
|
$
|
|
$
|
|
||||||
Weighted average common shares outstanding
|
|
|
|
|||||||||
Earnings per share - basic
|
$
|
|
$
|
|
$
|
|
||||||
Diluted earnings per share computation:
|
||||||||||||
Net income applicable to common stock
|
$
|
|
$
|
|
$
|
|
||||||
Weighted average common shares outstanding for basic earnings per share
|
|
|
|
|||||||||
Add: Dilutive effects of restricted stock
|
|
|
|
|||||||||
Weighted average common shares outstanding for dilutive earnings per share
|
|
|
|
|||||||||
Earnings per share - dilutive
|
$
|
|
$
|
|
$
|
|
• |
Service charges on deposit accounts – The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These
agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has
transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. All of these fees are
attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction.
|
• |
Trust fees – Typical contracts for trust services are based on a fixed percentage of the assets earned ratably over a defined period and billed on a monthly
basis. Fees charged to customers’ accounts are recognized as revenue over the period during which the Company fulfills its performance obligation under the contract (i.e., holding client asset in a managed fiduciary trust account). For these
accounts, the performance obligation of the Company is typically satisfied by holding and managing the customer’s assets over time. Other fees related to specific customer requests are attributable to specific performance obligations of the
Company where the revenue is recognized at a defined point in time, upon completion of the requested service/transaction.
|
• |
Gains (losses) on sale of other real estate owned – Gains and losses are recognized at the completion of the property sale when the buyer obtains control of the
real estate and all of the performance obligations of the Company have been satisfied. Evidence of the buyer obtaining control of the asset include transfer of the property title, physical possession of the asset, and the buyer obtaining
control of the risks and rewards related to the asset. In situations where the Company agrees to provide financing to facilitate the sale, additional analysis is performed to ensure that the contract for sale identifies the buyer and seller,
the asset to be transferred, payment terms, and that the contract has a true commercial substance and that collection of amounts due from the buyer are reasonable. In situations where financing terms are not reflective of current market
terms, the transaction price is discounted impacting the gain/loss and the carrying value of the asset.
|
• |
Brokerage and insurance – Fees include commissions from the sales of investments and insurance products recognized on a trade date basis as the performance obligation is satisfied at
the point in time in which the trade is processed. Additional fees are based on a percentage of the market value of customer accounts and billed on a monthly or quarterly basis. The Company’s performance obligation under the contracts with
certain customers is generally satisfied through the passage of time as the Company monitors and manages the assets in the customer’s portfolio and is not dependent on certain return or performance level of the customer’s portfolio. Fees for
these services are billed monthly and are recorded as revenue at the end of the month for which the wealth management service has been performed. Other performance obligations (such as the delivery of account statements to customers) are
generally considered immaterial to the overall transaction price.
|
Revenue stream
|
||||||||||||
Service charges on deposit accounts
|
2022
|
2021
|
2020
|
|||||||||
Overdraft fees
|
$
|
|
$
|
|
$
|
|
||||||
Statement fees
|
|
|
|
|||||||||
Interchange revenue
|
|
|
|
|||||||||
ATM income
|
|
|
|
|||||||||
Other service charges
|
|
|
|
|||||||||
Total Service Charges
|
|
|
|
|||||||||
Trust
|
|
|
|
|||||||||
Brokerage and insurance
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
December 31, 2022
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Available-for-sale securities:
|
||||||||||||||||
U.S. Agency securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
U.S. Treasuries
|
|
|
(
|
)
|
|
|||||||||||
Obligations of state and political subdivisions
|
|
|
(
|
)
|
|
|||||||||||
Corporate obligations
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed securities in government sponsored entities
|
|
|
(
|
)
|
|
|||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
December 31, 2021
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Available-for-sale securities:
|
||||||||||||||||
U.S. Agency securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
U.S. Treasuries
|
|
|
(
|
)
|
|
|||||||||||
Obligations of state and political subdivisions
|
|
|
(
|
)
|
|
|||||||||||
Corporate obligations
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed securities in government sponsored entities
|
|
|
(
|
)
|
|
|||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Less than Twelve Months
|
Twelve Months or Greater
|
Total
|
||||||||||||||||||||||
2022
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
||||||||||||||||||
U.S. agency securities
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||||||
U.S. Treasuries | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Obligations of states and political subdivisions
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Corporate obligations | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Mortgage-backed securities in government sponsored entities
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Total securities
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
2021
|
||||||||||||||||||||||||
U.S. agency securities
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||||||
U.S. Treasuries |
( |
) | ( |
) | ||||||||||||||||||||
Obligations of states and political subdivisions
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Corporate obligations |
( |
) | ( |
) | ||||||||||||||||||||
Mortgage-backed securities in government sponsored entities
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Total securities
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
2022
|
2021
|
2020
|
||||||||||
Gross gains
|
$
|
|
$
|
|
$
|
|
||||||
Gross losses
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net (losses) gains
|
$
|
(
|
)
|
$
|
|
$
|
|
Equity Securities
|
2022
|
2021
|
2020
|
|||||||||
Net (losses) gains on in equity securities held during the period
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
||||
Less: Net gains realized on the sale of equity securities during the period
|
|
|
|
|||||||||
Net unrealized gains (losses) recognized in earnings
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Available-for-sale securities:
|
Amortized Cost
|
Fair Value
|
||||||
Due in one year or less
|
$
|
|
$
|
|
||||
Due after one year through five years
|
|
|
||||||
Due after five years through ten years
|
|
|
||||||
Due after ten years
|
|
|
||||||
Total
|
$
|
|
$
|
|
2022
|
Total Loans
|
Individually
evaluated for
impairment
|
Loans acquired
with deteriorated
credit quality
|
Collectively
evaluated for
impairment
|
||||||||||||
Real estate loans:
|
||||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Commercial
|
|
|
|
|
||||||||||||
Agricultural
|
|
|
|
|
||||||||||||
Construction
|
|
|
|
|
||||||||||||
Consumer
|
|
|
|
|
||||||||||||
Other commercial loans
|
|
|
|
|
||||||||||||
Other agricultural loans
|
|
|
|
|
||||||||||||
State and political subdivision loans
|
|
|
|
|
||||||||||||
Total
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
|
|
|
|
||||||||||||
Net loans
|
$
|
|
$
|
|
$
|
|
$
|
|
2021
|
|
|
|
|||||||||||||
Real estate loans:
|
||||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Commercial
|
|
|
|
|
||||||||||||
Agricultural
|
|
|
|
|
||||||||||||
Construction
|
|
|
|
|
||||||||||||
Consumer
|
|
|
|
|
||||||||||||
Other commercial loans
|
|
|
|
|
||||||||||||
Other agricultural loans
|
|
|
|
|
||||||||||||
State and political subdivision loans
|
|
|
|
|
||||||||||||
Total
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
|
|
|
|
||||||||||||
Net loans
|
$
|
|
$
|
|
$
|
|
$
|
|
April 17, 2020
|
||||
Contractually required principal and interest at acquisition
|
$
|
|
||
Non-accretable discount
|
(
|
)
|
||
Expected cash flows
|
|
|||
Accretable discount
|
(
|
)
|
||
Estimated fair value
|
$
|
|
December 31, 2022
|
December 31, 2021
|
|||||||
Balance at beginning of period
|
$
|
|
$
|
|
||||
Accretion
|
(
|
)
|
(
|
)
|
||||
Reclassification of non-accretable discount |
||||||||
Balance at end of period
|
$
|
|
$
|
|
December 31, 2022
|
December 31, 2021
|
|||||||
Outstanding balance
|
$
|
|
$
|
|
||||
Carrying amount
|
|
|
Unpaid
Principal
Balance
|
Recorded
Investment
With No
Allowance
|
Recorded
Investment
With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
||||||||||||||||
2022 |
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Home Equity
|
|
|
|
|
|
|||||||||||||||
Commercial
|
|
|
|
|
|
|||||||||||||||
Agricultural
|
|
|
|
|
|
|||||||||||||||
Consumer
|
|
|
|
|
|
|||||||||||||||
Other commercial loans
|
|
|
|
|
|
|||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
||||||||||||||||
2021
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Home Equity
|
|
|
|
|
|
|||||||||||||||
Commercial
|
|
|
|
|
|
|||||||||||||||
Agricultural
|
|
|
|
|
|
|||||||||||||||
Other commercial loans
|
|
|
|
|
|
|||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Interest
|
||||||||||||
Average
|
Interest
|
Income
|
||||||||||
Recorded
|
Income
|
Recognized
|
||||||||||
2022
|
Investment
|
Recognized
|
Cash Basis
|
|||||||||
Real estate loans:
|
||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
||||||
Home Equity
|
|
|
|
|||||||||
Commercial
|
|
|
|
|||||||||
Agricultural
|
|
|
|
|||||||||
Consumer |
||||||||||||
Other commercial loans
|
|
|
|
|||||||||
Other agricultural loans
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
2021
|
|
|||||||||||
Real estate loans:
|
|
|||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
||||||
Home Equity
|
|
|
|
|||||||||
Commercial
|
|
|
|
|||||||||
Agricultural
|
|
|
|
|||||||||
Other commercial loans
|
|
|
|
|||||||||
Other agricultural loans
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
Interest | ||||||||||||
Average | Interest | Income | ||||||||||
Recorded | Income | Recognized | ||||||||||
2020
|
Investment | Recognized | Cash Basis | |||||||||
Real estate loans:
|
||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
||||||
Home Equity
|
|
|
|
|||||||||
Commercial
|
|
|
|
|||||||||
Agricultural
|
|
|
|
|||||||||
Consumer
|
|
|
|
|||||||||
Other commercial loans
|
|
|
|
|||||||||
Other agricultural loans
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
• |
Pass (Grades 1-5) – These loans are to customers with credit quality ranging from an acceptable to very high quality and are protected by the current net worth and paying capacity of
the obligor or by the value of the underlying collateral.
|
• |
Special Mention (Grade 6) – This loan grade is in accordance with regulatory guidance and includes loans where a potential weakness or risk exists, which could cause a more serious
problem if not corrected.
|
• |
Substandard (Grade 7) – This loan grade is in accordance with regulatory guidance and includes loans that have a well-defined weakness based on objective evidence and are
characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
|
• |
Doubtful (Grade 8) – This loan grade is in accordance with regulatory guidance and includes loans that have all the weaknesses inherent in a substandard asset. In addition, these
weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.
|
• |
Loss (Grade 9) – This loan grade is in accordance with regulatory guidance and includes loans that are considered uncollectible, or of such value that continuance as an asset is not
warranted.
|
2022
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
Ending Balance
|
||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Other commercial loans
|
|
|
|
|
|
|
||||||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|
||||||||||||||||||
State and political subdivision loans
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2021
|
|
|
|
|
|
|||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Other commercial loans
|
|
|
|
|
|
|
||||||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|
||||||||||||||||||
State and political subdivision loans
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2022
|
Performing
|
Non-performing
|
PCI
|
Total
|
||||||||||||
Real estate loans:
|
||||||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Home Equity
|
|
|
|
|
||||||||||||
Consumer
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
2021
|
Performing
|
Non-performing
|
PCI
|
Total
|
||||||||||||
Real estate loans:
|
||||||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Home Equity
|
|
|
|
|
||||||||||||
Consumer
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
30-59 Days
|
60-89 Days
|
90 Days
|
Total Past
|
Total
Financing
|
90 Days
and
|
|||||||||||||||||||||||||||
2022
|
Past Due
|
Past Due
|
Or Greater
|
Due
|
Current
|
PCI
|
Receivables
|
Accruing
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Home Equity
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Construction
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other commercial loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
State and political
|
||||||||||||||||||||||||||||||||
subdivision loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans considered non-accrual
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Loans still accruing
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2021
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Real estate loans:
|
|
|||||||||||||||||||||||||||||||
Mortgages
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Home Equity
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Construction
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other commercial loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
State and political
|
||||||||||||||||||||||||||||||||
subdivision loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans considered non-accrual
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Loans still accruing
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2022
|
2021
|
|||||||
Real estate loans:
|
||||||||
Mortgages
|
$
|
|
$
|
|
||||
Home Equity
|
|
|
||||||
Commercial
|
|
|
||||||
Agricultural
|
|
|
||||||
Other commercial loans
|
|
|
||||||
Other agricultural loans
|
|
|
||||||
$
|
|
$
|
|
Number of contracts
|
Pre-modification Outstanding
Recorded Investment
|
Post-Modification Outstanding
Recorded Investment
|
||||||||||||||||||||||
2022 |
Interest
Modification
|
Term
Modification
|
Interest
Modification
|
Term
Modification
|
Interest
Modification
|
Term
Modification
|
||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Home Equity
|
$ |
$ |
$ |
$ |
||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2021
|
|
|
|
|
|
|
||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Commercial
|
|
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2020
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Mortgages
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Commercial
|
|
|
|
|
|
|
||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Consumer |
||||||||||||||||||||||||
Other commercial loans |
||||||||||||||||||||||||
Other agricultural loans
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2022
|
December 31, 2021
|
December 31, 2020
|
||||||||||||||||||||||
Number of
contracts
|
Recorded investment
|
Number of
contracts
|
Recorded investment
|
Number of
contracts
|
Recorded investment
|
|||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Commercial
|
|
$
|
|
|
$
|
|
|
$
|
|
|||||||||||||||
Total recidivism
|
|
$
|
|
|
$
|
|
|
$
|
|
Balance at
December 31, 2021
|
Charge-offs
|
Recoveries
|
Provision
|
Balance at
December 31, 2022
|
Individually
evaluated for
impairment
|
Collectively
evaluated for
impairment
|
||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Commercial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||||||||||||||||
Other commercial loans
|
|
(
|
)
|
|
|
|
|
|
||||||||||||||||||||
Other agricultural loans
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
State and political subdivision loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Unallocated
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Balance at
December 31, 2020
|
Charge-offs
|
Recoveries
|
Provision
|
Balance at
December 31, 2021
|
Individually
evaluated for
impairment
|
Collectively
evaluated for
impairment
|
||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Commercial
|
|
(
|
)
|
|
|
|
|
|
||||||||||||||||||||
Agricultural
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||||||||||||||||
Other commercial loans
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||||||||||||||||
Other agricultural loans
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
State and political subdivision loans
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
Unallocated
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Balance at
December 31, 2019
|
Charge-offs
|
Recoveries
|
Provision
|
Balance at
December 31, 2020
|
Individually
evaluated for
impairment
|
Collectively
evaluated for
impairment |
||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Commercial
|
|
(
|
)
|
|
|
|
|
|
||||||||||||||||||||
Agricultural
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||||||||||||||||
Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer
|
|
(
|
)
|
|
|
|
|
|
||||||||||||||||||||
Other commercial loans
|
|
(
|
)
|
|
|
|
|
|
||||||||||||||||||||
Other agricultural loans
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
State and political subdivision loans
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
Unallocated
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31,
|
||||||||
2022
|
2021
|
|||||||
Land
|
$
|
|
$
|
|
||||
Buildings
|
|
|
||||||
Furniture, fixtures and equipment
|
|
|
||||||
Construction in process
|
|
|
||||||
|
|
|||||||
Less: accumulated depreciation
|
|
|
||||||
Premises and equipment, net
|
$
|
|
$
|
|
December 31, 2022
|
December 31, 2021
|
|||||||||||||||||||||||
Gross carrying value
|
Accumulated
amortization
|
Net carrying value
|
Gross carrying value
|
Accumulated
amortization
|
Net carrying value
|
|||||||||||||||||||
Amortized intangible assets (1):
|
||||||||||||||||||||||||
MSRs
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Core deposit intangibles
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||
Total amortized intangible assets
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Unamortized intangible assets:
|
||||||||||||||||||||||||
Goodwill
|
$
|
|
$
|
|
||||||||||||||||||||
(1)
|
MSRs
|
Core deposit intangibles
|
Total
|
||||||||||
Year ended December 31, 2022
|
$
|
|
$
|
|
$
|
|
||||||
Estimate for year ended December 31,
|
||||||||||||
2023
|
|
|
|
|||||||||
2024
|
|
|
|
|||||||||
2025
|
|
|
|
|||||||||
2026
|
|
|
|
|||||||||
2027
|
|
|
|
|||||||||
2028 and thereafter
|
||||||||||||
Total |
2022
|
2021
|
|||||||
Non-interest-bearing deposits
|
$
|
|
$
|
|
||||
NOW accounts
|
|
|
||||||
Savings deposits
|
|
|
||||||
Money market deposit accounts
|
|
|
||||||
Certificates of deposit
|
|
|
||||||
Total
|
$
|
|
$
|
|
2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
Thereafter
|
|
|||
Total certificates of deposit
|
$
|
|
Securities | ||||||||||||||||||||||||||||||||||||
Sold Under | Bank | |||||||||||||||||||||||||||||||||||
Agreements
to
|
FHLB |
Federal
Funds
|
FRB | Line of |
|
Notes | Term | Total | ||||||||||||||||||||||||||||
Repurchase
(a)
|
Advances
(b)
|
Lines
(c)
|
BIC
Line (d)
|
Credit
(e)
|
Subordinated
Debt (f)
|
Payable
(g)
|
Loans
(h)
|
Borrowed
Funds
|
||||||||||||||||||||||||||||
2022
|
||||||||||||||||||||||||||||||||||||
Balance at December 31
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
$
|
|
$
|
|
$
|
|
||||||||||||||||||||
Highest balance at any month-end
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Average balance
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Weighted average interest rate:
|
||||||||||||||||||||||||||||||||||||
Paid during the year
|
|
%
|
|
%
|
|
%
|
|
%
|
% | % |
|
%
|
|
%
|
|
%
|
||||||||||||||||||||
As of year-end
|
|
%
|
|
%
|
|
%
|
|
%
|
% | % |
|
%
|
|
%
|
|
%
|
||||||||||||||||||||
2021
|
||||||||||||||||||||||||||||||||||||
Balance at December 31
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
$
|
|
$
|
|
$
|
|
||||||||||||||||||||
Highest balance at any month-end
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Average balance
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Weighted average interest rate:
|
||||||||||||||||||||||||||||||||||||
Paid during the year
|
|
%
|
|
%
|
|
%
|
|
%
|
% | % |
|
%
|
|
%
|
|
%
|
||||||||||||||||||||
As of year-end
|
|
%
|
|
%
|
|
%
|
|
%
|
% | % |
|
%
|
|
%
|
|
%
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||||
Overnight and | Up to | Greater than | ||||||||||||||||||
2022
|
Continuous
|
30 Days
|
30 - 90 Days
|
90 days
|
Total
|
|||||||||||||||
Repurchase Agreements:
|
||||||||||||||||||||
U.S. agency securities
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Total carrying value of collateral pledged
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Total liability recognized for repurchase agreements
|
$
|
|
||||||||||||||||||
2021 | ||||||||||||||||||||
Repurchase Agreements:
|
||||||||||||||||||||
U.S. agency securities
|
$ | $ |
$ | $ | $ | |||||||||||||||
Total carrying value of collateral pledged
|
$ | $ |
$ | $ | $ | |||||||||||||||
Total liability recognized for repurchase agreements
|
$ |
December 31, |
December 31, |
||||||||||
Interest Rate
|
Maturity
|
2022
|
2021
|
||||||||
Fixed:
|
|||||||||||
% |
|
||||||||||
% |
|
||||||||||
% |
|
||||||||||
% |
|
||||||||||
|
%
|
|
|
||||||||
|
%
|
|
|
||||||||
Total term loans
|
$
|
|
$
|
|
2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
Thereafter
|
|
|||
Total borrowed funds
|
$
|
|
2022
|
2021
|
|||||||
Change in benefit obligation
|
||||||||
Benefit obligation at beginning of year
|
$
|
|
$
|
|
||||
Service cost
|
|
|
||||||
Interest cost
|
|
|
||||||
Actuarial (Gain) / Loss
|
(
|
)
|
(
|
)
|
||||
Settlement gain
|
(
|
)
|
(
|
)
|
||||
Benefits paid
|
(
|
)
|
(
|
)
|
||||
Benefit obligation at end of year
|
|
|
||||||
Change in plan assets
|
||||||||
Fair value of plan assets at beginning of year
|
|
|
||||||
Actual return (loss) on plan assets
|
(
|
)
|
|
|||||
Employer contribution
|
|
|
||||||
Benefits paid
|
(
|
)
|
(
|
)
|
||||
Fair value of plan assets at end of year
|
|
|
||||||
Funded status
|
$
|
|
$
|
|
Amounts recognized in accumulated other comprehensive loss consists of:
|
2022
|
2021
|
||||||
Net loss
|
$
|
|
$
|
|
||||
Prior service cost
|
|
|
||||||
Total
|
$
|
|
$
|
|
2022
|
2021
|
2020
|
||||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
||||||
Interest cost
|
|
|
|
|||||||||
Return on plan assets
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Settlement loss (gain)
|
|
|
|
|||||||||
Net amortization and deferral
|
|
|
|
|||||||||
Net periodic benefit (income) cost
|
$
|
(
|
)
|
$
|
|
$
|
|
2022
|
2021
|
|||||||
Discount rate
|
|
%
|
|
%
|
||||
Rate of compensation increase
|
|
%
|
|
%
|
2022
|
2021
|
2020
|
||||||||||
Discount rate FCCB Plan
|
|
%
|
|
%
|
|
%
|
||||||
Expected long-term return on plan assets
|
|
%
|
|
%
|
|
%
|
||||||
Rate of compensation increase
|
|
%
|
|
%
|
|
%
|
2022
|
Level I
|
Level II
|
Level III
|
Total
|
Allocation
|
|||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
|
%
|
||||||||||
Equity Securities
|
|
|
|
|
|
%
|
||||||||||||||
Mutual Funds and ETF’s
|
|
|
|
|
|
%
|
||||||||||||||
Corporate Bonds
|
|
|
|
|
|
%
|
||||||||||||||
U.S. Agency Securities
|
% | |||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
|
%
|
2021
|
Level I
|
Level II
|
Level III
|
Total
|
Allocation
|
|||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
|
%
|
||||||||||
Equity Securities
|
|
|
|
|
|
%
|
||||||||||||||
Mutual Funds and ETF’s
|
|
|
|
|
|
%
|
||||||||||||||
Corporate Bonds
|
|
|
|
|
|
%
|
||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
|
%
|
2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028 - 2032
|
|
2022
|
||||||||
Shares
|
Weighted
Average
Market Price
|
|||||||
Outstanding, beginning of year
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Forfeited
|
(
|
)
|
|
|||||
Vested
|
(
|
)
|
|
|||||
Outstanding, end of year
|
|
$
|
|
Year Ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Currently payable
|
$
|
|
$
|
|
$
|
|
||||||
Deferred tax liability (asset)
|
(
|
)
|
|
|
||||||||
Provision for income taxes
|
$
|
|
$
|
|
$
|
|
2022
|
2021
|
|||||||
Deferred tax assets: |
|
|
||||||
Allowance for loan losses
|
$
|
|
$
|
|
||||
Deferred compensation
|
|
|
||||||
Merger & acquisition costs
|
|
|
||||||
Allowance for losses on available-for-sale securities
|
|
|
||||||
Pension and other retirement obligation
|
|
|
||||||
Interest on non-accrual loans
|
|
|
||||||
Incentive plan accruals
|
|
|
||||||
Other real estate owned
|
|
|
||||||
Unrealized losses on available-for-sale securities
|
||||||||
Low income housing tax credits
|
|
|
||||||
NOL carry forward
|
|
|
||||||
Right of use asset
|
|
|
||||||
Accrued vacation
|
|
|
||||||
Other
|
|
|
||||||
Total
|
$
|
|
$
|
|
||||
Deferred tax liabilities:
|
||||||||
Premises and equipment
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Investment securities accretion
|
(
|
)
|
(
|
)
|
||||
Loan fees and costs
|
(
|
)
|
(
|
)
|
||||
Goodwill and core deposit intangibles
|
(
|
)
|
(
|
)
|
||||
Mortgage servicing rights
|
(
|
)
|
(
|
)
|
||||
Unrealized gains on available-for-sale securities
|
|
(
|
)
|
|||||
Unrealized gains on equity securities |
( |
) | ( |
) | ||||
Unrealized gains on interest rate swap | ( |
) | ( |
) | ||||
Right of use asset
|
(
|
)
|
(
|
)
|
||||
Other
|
(
|
)
|
(
|
)
|
||||
Total
|
(
|
)
|
(
|
)
|
||||
Deferred tax (liability) asset, net
|
$
|
|
$
|
|
Year Ended December 31,
|
||||||||||||
2022
|
2021
|
2020
|
||||||||||
Provision at statutory rates on pre-tax income
|
$
|
|
$
|
|
$
|
|
||||||
Effect of tax-exempt income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Low income housing tax credits
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Bank owned life insurance
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Nondeductible interest
|
|
|
|
|||||||||
Nondeductible merger and acquisition expenses
|
|
|
|
|||||||||
Other items
|
|
|
|
|||||||||
Provision for income taxes
|
$
|
|
$
|
|
$
|
|
||||||
Statutory tax rates
|
|
%
|
|
%
|
|
%
|
||||||
Effective tax rates
|
|
%
|
|
%
|
|
%
|
2022
|
2021
|
|||||||
Net unrealized gain on securities available for sale
|
$
|
(
|
)
|
$
|
|
|||
Tax effect
|
|
(
|
)
|
|||||
Net -of-tax amount
|
(
|
)
|
|
|||||
Unrealized loss on interest rate swap
|
|
|
||||||
Tax effect
|
|
|
||||||
Net -of-tax amount
|
|
|
||||||
Unrecognized pension costs
|
(
|
)
|
(
|
)
|
||||
Tax effect
|
|
|
||||||
Net -of-tax amount
|
(
|
)
|
(
|
)
|
||||
Total accumulated other comprehensive loss
|
$
|
(
|
)
|
$
|
(
|
)
|
Unrealized gain
(loss) on
available for sale
securities (a)
|
Unrealized
gain (loss) on
interest rate
swap (a)
|
Defined Benefit
Pension
Items (a)
|
Total
|
|||||||||||||
Balance as of December 31, 2019
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||
Other comprehensive income (loss) before reclassifications (net of tax)
|
|
|
(
|
)
|
|
|||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Net current period other comprehensive income (loss)
|
|
(
|
)
|
(
|
)
|
|
||||||||||
Balance as of December 31, 2020
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||
Balance as of December 31, 2020
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||
Other comprehensive income (loss) before reclassifications (net of tax)
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)
|
(
|
)
|
|
|
|
|||||||||||
Net current period other comprehensive income (loss)
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Balance as of December 31, 2021
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||
Balance as of December 31, 2021
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||
Other comprehensive income (loss) before reclassifications (net of tax)
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Net current period other comprehensive income (loss)
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Balance as of December 31, 2022
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
(a) |
Details about accumulated other comprehensive income (loss)
|
Amount reclassified from accumulated
comprehensive income (loss) (a)
|
Affected line item in the Consolidated
Statement of Income
|
|||||||||||
December 31,
|
|||||||||||||
2022
|
2021
|
2020
|
|||||||||||
Unrealized gains and losses on available for sale securities
|
|||||||||||||
$
|
(
|
)
|
$
|
|
$
|
|
Available for sale securities (losses) gains, net
|
||||||
|
(
|
)
|
(
|
)
|
Provision for income taxes
|
||||||||
$
|
(
|
)
|
$
|
|
$
|
|
Net of tax | ||||||
Unrealized gain (loss) on interest rate swap | $ | $ | ( |
) | $ | Interest expense |
|||||||
( |
) | ( |
) | Provision for income taxes |
|||||||||
$ | $ | ( |
) | $ | Net of tax |
||||||||
Defined benefit pension items
|
|||||||||||||
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Other expenses
|
||||
|
|
|
Provision for income taxes
|
||||||||||
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Net of tax | ||||
Total reclassifications
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||
(a)
|
Year Ended December 31,
|
||||||||
2022
|
2021
|
|||||||
Balance, beginning of year
|
$
|
|
$
|
|
||||
New loans
|
|
|
||||||
Repayments
|
(
|
)
|
(
|
)
|
||||
Balance, end of year
|
$
|
|
$
|
|
Actual
|
For Capital Adequacy Purposes
|
To Be Well Capitalized Under
Prompt Corrective Action Provisions
|
||||||||||||||||||||||
2022
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Company
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||
Bank
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||
Tier 1 Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Company
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||
Bank
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||
Common Equity Tier 1 Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Company
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||
Bank
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||
Tier 1 Capital (to Average Assets):
|
||||||||||||||||||||||||
Company
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||
Bank
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
2022
|
2021
|
|||||||
Commitments to extend credit
|
$
|
|
$
|
|
||||
Standby letters of credit
|
|
|
||||||
$
|
|
$
|
|
Fair Value
December 31,
|
|||||||||||||||
Third party interest rate swaps
|
Balance Sheet Location
|
Notional
Amount
|
Interest rate
Paid
|
Interest rate
Received
|
2022
|
2021
|
|||||||||
Maturing in
|
other assets/(other liabilities)
|
$
|
|
Fixed -
|
|
$
|
|
$
|
|
||||||
Maturing in
|
other assets/(other liabilities)
|
|
Fixed -
|
|
|
|
|||||||||
Maturing in
|
other assets/(other liabilities)
|
|
Fixed -
|
|
|
|
|||||||||
Maturing in
|
other assets/(other liabilities)
|
|
Fixed -
|
|
|
|
|||||||||
Maturing in
|
other assets/(other liabilities)
|
|
Fixed -
|
|
|
|
|||||||||
Maturing in
|
other assets/(other liabilities)
|
|
Fixed -
|
|
|
|
|||||||||
$
|
|
$
|
|
$
|
|
December 31, 2022
|
December 31, 2021
|
||||||||||||||||
Interest Rate Products
|
Balance Sheet Location
|
Notional Amount
|
Fair Value
|
Notional Amount
|
Fair Value
|
||||||||||||
Zero Premium Collar
|
other assets/(other liabilities)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
||||||
Zero Premium Collar
|
other assets/(other liabilities)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
|||||||||||||||||
Dealer Offset to Zero Premium Collar
|
other assets/(other liabilities)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Dealer Offset to Zero Premium Collar
|
other assets/(other liabilities)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
The Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income
|
|||||||||||||||||
Amount of (Loss) Gain Recognized in OCI on
Derivatives
|
Location of Gain
Reclassified from
Accumulated OCI
into Income |
Amount of (loss) gain reclassified
from Accumulated OCI into income
|
|||||||||||||||
Year Ended December 31,
|
Year Ended December 31,
|
||||||||||||||||
Derivatives in Hedging relationships
|
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Interest rate Products
|
$
|
|
$
|
|
Interest Expense
|
$
|
|
$
|
(
|
)
|
Balance at December 31,
|
|||||||||
Lease Type
|
2022
|
2021
|
Affected line item on the Consolidated Balance Sheet
|
||||||
Right of Use Assets
|
|||||||||
Operating
|
$
|
|
$
|
|
|
||||
Lease Liabilities:
|
|||||||||
Operating
|
$
|
|
$
|
|
|
Operating
|
||||
Weighted average term (years)
|
|
|||
Weighted average discount rate
|
|
%
|
December 31,
|
||||||||||||
Lease Cost
|
2022
|
2021
|
2020
|
|||||||||
Operating lease cost
|
$
|
|
$
|
|
$
|
|
||||||
Variable lease cost
|
|
|
|
|||||||||
Total lease cost
|
$
|
|
$
|
|
$
|
|
Undiscounted cash flows due within
|
Operating
|
|||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028 and
thereafter
|
|
|||
Total undiscounted cash flows
|
|
|||
Impact of present value discount
|
(
|
)
|
||
Amount reported on
|
$
|
|
Level I:
|
Quoted prices are available in active markets for identical assets or liabilities as of the reported date.
|
Level II:
|
Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these
assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.
|
Level III:
|
Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using
management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.
|
2022
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Fair value measurements on a recurring basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Equity securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Available for sale securities:
|
||||||||||||||||
U.S. Agency securities
|
|
|
|
|
||||||||||||
U.S. Treasuries securities
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
|
|
|
||||||||||||
Corporate obligations
|
|
|
|
|
||||||||||||
Mortgage-backed securities in government sponsored entities
|
|
|
|
|
||||||||||||
Other Assets
|
||||||||||||||||
|
|
|
|
|
||||||||||||
Liabilities
|
||||||||||||||||
|
|
(
|
)
|
|
(
|
)
|
2021
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Fair value measurements on a recurring basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Equity securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Available for sale securities:
|
||||||||||||||||
U.S. Agency securities
|
|
|
|
|
||||||||||||
U.S. Treasuries securities
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
|
|
|
||||||||||||
Corporate obligations
|
|
|
|
|
||||||||||||
Mortgage-backed securities in government sponsored entities
|
|
|
|
|
||||||||||||
Other Assets
|
||||||||||||||||
|
||||||||||||||||
Liabilities
|
||||||||||||||||
|
( |
) | ( |
) |
2022
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Impaired Loans
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other real estate owned
|
|
|
|
|
2021
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Impaired Loans
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other real estate owned
|
|
|
|
|
•
|
Impaired Loans - The Company has measured impairment on impaired loans generally based on the fair value of the loan’s
collateral. Fair value is generally determined based upon 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 loan 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 table above as a Level III measurement. If the fair value of the collateral exceeds the carrying amount of the loan, then the loan is not included in the table above as it is not
currently being carried at its fair value. The fair values above excluded estimated selling costs of $
|
•
|
Other Real Estate Owned – OREO is carried at the lower of cost or fair value, less estimated costs to sell, which is measured at
the date of foreclosure. If the fair value of the collateral exceeds the carrying amount of the loan, no charge-off or adjustment is necessary, the loan is not considered to be carried at fair value, and is therefore not included in
the table above. If the fair value of the collateral is less than the carrying amount of the loan, management will charge the loan down to its estimated realizable value. The fair value of OREO is based on the appraised value of the
property, which is generally unadjusted by management and is based on comparable sales for similar properties in the same geographic region as the subject property, and is included in the above table as a Level II measurement. In some
cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. In these cases, the loans are categorized in
the above table as a Level III measurement since these adjustments are considered to be unobservable inputs. Income and expenses from operations and further declines in the fair value of the collateral subsequent to foreclosure are
included in net expenses from OREO.
|
2022
|
Fair Value
|
Valuation Technique(s)
|
Unobservable input
|
Range
|
Weighted average
|
Impaired Loans
|
|
Appraised Collateral Values
|
Discount for time since appraisal
|
|
|
Selling costs
|
|
|
|||
Holding period
|
|
|
|||
Other real estate owned
|
|
Appraised Collateral Values
|
Discount for time since appraisal
|
|
|
2021
|
Fair Value
|
Valuation Technique(s)
|
Unobservable input
|
Range
|
Weighted average
|
Impaired Loans
|
|
Appraised Collateral Values
|
Discount for time since appraisal
|
|
|
Selling costs
|
|
|
|||
Holding period
|
|
|
|||
Other real estate owned
|
|
Appraised Collateral Values
|
Discount for time since appraisal
|
|
|
December 31, 2022
|
Carrying
Amount
|
Fair Value
|
Level I
|
Level II
|
Level III
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Interest bearing time deposits with other banks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Loans held for sale
|
|
|
|
|
|
|||||||||||||||
Net loans
|
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
|
|
|
|
|
|||||||||||||||
Borrowed funds
|
|
|
|
|
|
December 31, 2021
|
Carrying
Amount
|
Fair Value
|
Level I
|
Level II
|
Level III
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Interest bearing time deposits with other banks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Loans held for sale
|
|
|
|
|
|
|||||||||||||||
Net loans
|
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
|
|
|
|
|
|||||||||||||||
Borrowed funds
|
|
|
|
|
|
CITIZENS FINANCIAL SERVICES, INC.
|
||||||||
CONDENSED BALANCE SHEET
|
||||||||
December 31,
|
||||||||
(in thousands)
|
2022
|
2021
|
||||||
Assets:
|
||||||||
Cash
|
$
|
|
$
|
|
||||
Investments
|
|
|
||||||
Investment in subsidiary:
|
|
|
||||||
First Citizens Community Bank
|
||||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities:
|
||||||||
Other liabilities
|
$
|
|
$
|
|
||||
Borrowed funds
|
|
|
||||||
Total liabilities
|
|
|
||||||
Stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
CITIZENS FINANCIAL SERVICES, INC.
|
||||||||||||
CONDENSED STATEMENT OF INCOME
|
||||||||||||
Year Ended December 31,
|
||||||||||||
(in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Dividends from:
|
||||||||||||
Bank subsidiary
|
$
|
|
$
|
|
$
|
|
||||||
Equity securities
|
|
|
|
|||||||||
Interest income
|
||||||||||||
Total income
|
|
|
|
|||||||||
Realized securities gains (losses)
|
(
|
)
|
|
(
|
)
|
|||||||
Expenses
|
|
|
|
|||||||||
Income before equity in undistributed earnings of subsidiary
|
|
|
|
|||||||||
Equity in undistributed earnings - First Citizens Community Bank
|
|
|
|
|||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Comprehensive (loss) income
|
$
|
(
|
)
|
$
|
|
$
|
|
CITIZENS FINANCIAL SERVICES, INC.
|
||||||||||||
STATEMENT OF CASH FLOWS
|
||||||||||||
Year Ended December 31,
|
||||||||||||
(in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Equity in undistributed earnings of subsidiaries
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Investment securities losses (gains), net
|
|
(
|
)
|
|
||||||||
Other, net
|
|
|
|
|||||||||
Net cash provided by operating activities
|
|
|
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Purchases of equity securities
|
(
|
)
|
|
(
|
)
|
|||||||
Proceeds from the sale of equity securities
|
|
|
|
|||||||||
Acquisition of Midcoast
|
|
( |
) | |||||||||
Net cash used in investing activities
|
(
|
)
|
|
(
|
)
|
|||||||
Cash flows from financing activities:
|
||||||||||||
Cash dividends paid
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Issuance of subordinated debt
|
||||||||||||
Purchase of treasury stock
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Sale of treasury stock to employee stock purchase plan
|
|
|
|
|||||||||
Net cash (used in) provided by financing activities
|
(
|
)
|
|
(
|
)
|
|||||||
Net (decrease) increase in cash
|
(
|
)
|
|
(
|
)
|
|||||||
Cash at beginning of year
|
|
|
|
|||||||||
Cash at end of year
|
$
|
|
$
|
|
$
|
|
(a)
|
Disclosure Controls and Procedures
|
(b)
|
Internal Control Over Financial Reporting
|
(c)
|
Changes to Internal Control Over Financial Reporting
|
(a)
|
Security Ownership of Certain Beneficial Owners Information required by this item is incorporated herein by reference to the section captioned “Stock Ownership”
in the Company’s 2023 Proxy Statement.
|
(b)
|
Security Ownership of Management Information required by this item is incorporated herein by reference to the section captioned “Stock Ownership” in the
Company’s 2023 Proxy Statement.
|
(c)
|
Changes in Control
Management of the Company knows of no arrangements, including any pledge by any person or securities of the Company, the operation of which may at a subsequent date result in a change in control of
the registrant.
|
(d)
|
Equity Compensation Plan Information
The following table sets forth information as of December 31, 2021 about Company common stock that may be issued under the Company’s 2016 Restricted Stock Plan. The plan was approved by the Company’s
stockholders.
|
Plan Category
|
Number of securities to be issued upon the exercise of outstanding options, warrants and rights
|
Weighted-average exercise price of outstanding options, warrants and rights
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column)
|
|||||||||
Equity compensation plans approved by security holders
|
n/a
|
n/a
|
116,058
|
|||||||||
Equity compensation plans not approved by security holders
|
n/a
|
n/a
|
n/a
|
|||||||||
Total
|
n/a
|
n/a
|
119,391
|
(a) |
The following documents are filed as a part of this report:
|
1.
|
The following financial statements are incorporated by reference in Item 8:
|
2.
|
All financial statement schedules are omitted because the required information is either not applicable, not required or isshown in the respective financial statement or in the notes thereto, which are
incorporated by reference at subsection (a)(1) of this item.
|
3.
|
The following Exhibits are filed herewith, or incorporated by reference as a part of this report.
|
Restated Articles of Incorporation of Citizens Financial Services, Inc.(1)
|
|
Articles of Amendment of Restated Articles of Incorporation of Citizens Financial Services, Inc. (2)
|
|
Bylaws of Citizens Financial Services, Inc.(3)
|
|
Amendment No. 1 to Amended and restated Bylaws of Citizens Financial Services, Inc. (4)
|
|
Instrument defining the rights of security holders
|
|
*Amended and Restated Executive Employment Agreement between Citizens Financial Services, Inc., First Citizens Community Bank and Randall E. Black(5)
|
|
*Citizens Financial Services, Inc. Directors’ Deferred Compensation Plan(6)
|
|
*Citizens Financial Services, Inc. Directors’ Life Insurance Program(7)
|
|
*Supplemental Executive Retirement Plan(8)
|
|
*Second Amendment to First Citizens Community Bank Supplemental Executive Retirement Plan(9)
|
|
*Change in Control Agreement, between First Citizens Community Bank, Citizens Financial Services, Inc. (as guarantor) and Mickey L. Jones (10)
|
|
*First Citizens Community Bank Annual Incentive Plan (11)
|
|
*Amended and Restated First Citizens Community Bank Annual Incentive Plan
|
|
*First Citizens Community Bank Endorsement Split-Dollar Life Insurance Plan (12)
|
|
Citizens Financial Services, Inc. 2016 Equity Incentive Plan (13)
|
|
*Change in Control Agreement, between First Citizens Community Bank, Citizens Financial Services, Inc. (as guarantor) and Jeffrey L. Wilson (14)
|
*Change in Control Agreement, between First Citizens Community Bank, Citizens Financial Services, Inc. (as guarantor) and David Z. Richards, Jr. (15)
|
|
*Change in Control Agreement, between First Citizens Community Bank, Citizens Financial Services, Inc. (as guarantor) and Jeffrey B. Carr (16)
|
|
*First Citizens Community Bank Executive Deferred Compensation Plan (17)
|
|
*Amended and Restated First Citizens Community Bank Executive Deferred Compensation Plan (18)
|
|
*First Citizens Community Bank Long Term Incentive Plan (19)
|
|
List of Subsidiaries
|
|
Consent of S.R. Snodgrass, P.C., Independent Registered Public Accountants
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
|
|
Section 1350 Certification of Chief Executive Officer
|
|
Section 1350 Certification of Chief Financial Officer
|
|
101
|
The following materials from the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, formatted in XBRL (Extensible Business Reporting Language): (i) The Consolidated Balance Sheet,
(ii) the Consolidated Statement of Income, (iii) the Consolidated Statement of Comprehensive Income, (iv) the Consolidated Statement of Changes in Stockholders’ Equity, (v) the Consolidated Statement of Cash Flows and (vi) related notes.
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
Signature and Capacity
|
Date
|
/s/ Randall E. Black
|
March 9, 2023
|
Randall E. Black, Chief Executive Officer, President and Director
|
|
(Principal Executive Officer)
|
|
/s/ Stephen J. Guillaume
|
March 9, 2023
|
Stephen J. Guillaume, Chief Financial Officer
|
|
(Principal Financial & Accounting Officer)
|
|
/s/ Robert W. Chappell
|
March 9, 2023
|
Robert W. Chappell, Director
|
|
/s/ R. Joseph Landy
|
March 9, 2023
|
R. Joseph Landy, Director
|
|
/s/ Roger C. Graham, Jr.
|
March 9, 2023
|
Roger C. Graham, Director
|
|
/s/ E. Gene Kosa
|
March 9, 2023
|
E. Gene Kosa, Director
|
|
/s/ Rinaldo A. DePaola
|
March 9, 2023
|
Rinaldo A. DePaola, Director
|
|
/s/ Thomas E. Freeman
|
March 9, 2023
|
Thomas E. Freeman, Director
|
|
/s/ Alletta M. Schadler
|
March 9, 2023
|
Alletta M. Schadler, Director
|
|
/s/ Christopher W. Kunes
|
March 9, 2023
|
Christopher W. Kunes
|
|
/s/ David Z, Richards, Jr.
|
March 9, 2023
|
David Z. Richards, Jr., Director
|
|
/s/ Mickey L. Jones.
|
March 9, 2023
|
Mickey L. Jones, Director
|
|
/s/ Janie M Hifiger
|
March 9, 2023
|
Janie M Hilfiger, Director
|