QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| ||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
ACL | Allowance for Credit Losses | |||||||
AFS | Available-for-Sale | |||||||
ASC | Accounting Standards Codification | |||||||
ASU | Accounting Standards Update | |||||||
Bank | LCNB National Bank | |||||||
CARES Act | Coronavirus Aid, Relief, and Economic Security Act | |||||||
CECL | Current expected credit losses | |||||||
CEO | Chief Executive Officer | |||||||
CFO | Chief Financial Officer | |||||||
CNNB | Cincinnati Bancorp, Inc. | |||||||
Company | LCNB Corp. and its consolidated subsidiaries as a whole | |||||||
DCF | Discounted Cash Flow | |||||||
DDA | Demand Deposit Account | |||||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | |||||||
Economic Aid Act | Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act | |||||||
FASB | Financial Accounting Standards Board | |||||||
FDIC | Federal Deposit Insurance Corporation | |||||||
FFIEC | Financial Institutions Examination Council | |||||||
FHLB | Federal Home Loan Bank | |||||||
FOMC | Federal Open Market Committee of the Federal Reserve System | |||||||
GAAP | Generally Accepted Accounting Principles | |||||||
HTM | Held-to-Maturity | |||||||
IRA | Individual Retirement Account | |||||||
LCNB | LCNB Corp. and its consolidated subsidiaries as a whole | |||||||
LDA | Loss Driver Analysis | |||||||
LGD | Loss Given Default | |||||||
LIBOR | London Interbank Offered Rate | |||||||
LIHTC | Low Income Housing Tax Credit | |||||||
OCC | Office of the Comptroller of the Currency | |||||||
PD | Probability of Default | |||||||
PPP | Paycheck Protection Program | |||||||
SEC | Securities and Exchange Commission | |||||||
TDRs | Troubled Debt Restructurings | |||||||
WARM | Weighted Average Remaining Maturity |
Item 1. | Financial Statements |
September 30, 2023 (Unaudited) | December 31, 2022 | |||||||||||||
ASSETS: | ||||||||||||||
Cash and due from banks | $ | $ | ||||||||||||
Interest-bearing demand deposits | ||||||||||||||
Total cash and cash equivalents | ||||||||||||||
Investment securities: | ||||||||||||||
Equity securities with a readily determinable fair value, at fair value | ||||||||||||||
Equity securities without a readily determinable fair value, at cost | ||||||||||||||
Debt securities, available-for-sale, at fair value | ||||||||||||||
Debt securities, held-to-maturity, at cost, net | ||||||||||||||
Federal Reserve Bank stock, at cost | ||||||||||||||
Federal Home Loan Bank stock, at cost | ||||||||||||||
Loans, net | ||||||||||||||
Premises and equipment, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Goodwill | ||||||||||||||
Core deposit and other intangibles, net | ||||||||||||||
Bank-owned life insurance | ||||||||||||||
Interest receivable | ||||||||||||||
Other assets, net | ||||||||||||||
TOTAL ASSETS | ||||||||||||||
LIABILITIES: | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest-bearing | $ | |||||||||||||
Interest-bearing | ||||||||||||||
Total deposits | ||||||||||||||
Short-term borrowings | ||||||||||||||
Long-term debt | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Accrued interest and other liabilities | ||||||||||||||
TOTAL LIABILITIES | ||||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||||||||
SHAREHOLDERS' EQUITY: | ||||||||||||||
Preferred shares – | ||||||||||||||
Common shares – | ||||||||||||||
Retained earnings | ||||||||||||||
Treasury shares at cost, | ( | ( | ||||||||||||
Accumulated other comprehensive loss, net of taxes | ( | ( | ||||||||||||
TOTAL SHAREHOLDERS' EQUITY | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
INTEREST INCOME: | |||||||||||||||||||||||
Interest and fees on loans | $ | ||||||||||||||||||||||
Dividends on equity securities: | |||||||||||||||||||||||
With a readily determinable fair value | |||||||||||||||||||||||
Without a readily determinable fair value | |||||||||||||||||||||||
Interest on debt securities: | |||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
Non-taxable | |||||||||||||||||||||||
Other investments | |||||||||||||||||||||||
TOTAL INTEREST INCOME | |||||||||||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||||||
Interest on deposits | |||||||||||||||||||||||
Interest on short-term borrowings | |||||||||||||||||||||||
Interest on long-term debt | |||||||||||||||||||||||
TOTAL INTEREST EXPENSE | |||||||||||||||||||||||
NET INTEREST INCOME | |||||||||||||||||||||||
PROVISION FOR (RECOVERY OF) CREDIT LOSSES | ( | ( | ( | ||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES | |||||||||||||||||||||||
NON-INTEREST INCOME: | |||||||||||||||||||||||
Fiduciary income | |||||||||||||||||||||||
Service charges and fees on deposit accounts | |||||||||||||||||||||||
Bank-owned life insurance income | |||||||||||||||||||||||
Gains from sales of loans | |||||||||||||||||||||||
Other operating income | |||||||||||||||||||||||
TOTAL NON-INTEREST INCOME | |||||||||||||||||||||||
NON-INTEREST EXPENSE: | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Equipment expenses | |||||||||||||||||||||||
Occupancy expense, net | |||||||||||||||||||||||
State financial institutions tax | |||||||||||||||||||||||
Marketing | |||||||||||||||||||||||
Amortization of intangibles | |||||||||||||||||||||||
FDIC insurance premiums, net | |||||||||||||||||||||||
Contracted services | |||||||||||||||||||||||
Other real estate owned, net | ( | ||||||||||||||||||||||
Merger-related expenses | |||||||||||||||||||||||
Other non-interest expense | |||||||||||||||||||||||
TOTAL NON-INTEREST EXPENSE | |||||||||||||||||||||||
INCOME BEFORE INCOME TAXES | |||||||||||||||||||||||
PROVISION FOR INCOME TAXES | |||||||||||||||||||||||
NET INCOME | $ | ||||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | ||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net income | $ | |||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Net unrealized gain (loss) on available-for-sale debt securities (net of taxes of $( | ( | ( | ( | ( | ||||||||||||||||||||||
Change in nonqualified pension plan unrecognized net loss and unrecognized prior service cost (net of taxes of $ | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ( | ||||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ | ( | ( |
Common Shares Outstanding | Common Stock | Retained Earnings | Treasury Shares | Accumulated Other Comprehensive Loss | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2023 | $ | ( | ( | |||||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | ( | ( | ||||||||||||||||||||||||||||||||||||
Dividend Reinvestment and Stock Purchase Plan | ||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ||||||||||||||||||||||||||||||||||||||
Compensation expense relating to restricted stock | ||||||||||||||||||||||||||||||||||||||
Common stock dividends, $ | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | ( | ( | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | ( | ( | |||||||||||||||||||||||||||||||||||
Cumulative change in accounting principle - ASC 326 | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023, adjusted | ( | ( | ||||||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | ( | ( | ||||||||||||||||||||||||||||||||||||
Dividend Reinvestment and Stock Purchase Plan | ||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Shares issued for restricted stock awards | ||||||||||||||||||||||||||||||||||||||
Compensation expense relating to restricted stock | ||||||||||||||||||||||||||||||||||||||
Common stock dividends, $ | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | ( | ( | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2022 | $ | ( | ( | |||||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | ( | ( | ||||||||||||||||||||||||||||||||||||
Dividend Reinvestment and Stock Purchase Plan | ||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Compensation expense relating to restricted stock | ||||||||||||||||||||||||||||||||||||||
Common stock dividends, $ | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | ( | ( | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | ( | ( | |||||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | ( | ( | ||||||||||||||||||||||||||||||||||||
Dividend Reinvestment and Stock Purchase Plan | ||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Shares issued for restricted stock awards | ||||||||||||||||||||||||||||||||||||||
Compensation expense relating to restricted stock | ||||||||||||||||||||||||||||||||||||||
Common stock dividends, $ | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | ( | ( |
Nine Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
Net income | $ | |||||||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||||||||||
Depreciation, amortization, and accretion | ||||||||||||||
Provision for (recovery of) credit losses | ( | |||||||||||||
Benefit from deferred income taxes | ( | ( | ||||||||||||
Increase in cash surrender value of bank-owned life insurance | ( | ( | ||||||||||||
Loss on equity securities | ||||||||||||||
Realized (gain) loss from sales of premises and equipment | ( | |||||||||||||
Realized gain from sales of other real estate owned | ( | |||||||||||||
Origination of mortgage loans for sale | ( | ( | ||||||||||||
Realized gains from sales of loans | ( | ( | ||||||||||||
Proceeds from sales of mortgage loans | ||||||||||||||
Compensation expense related to restricted stock | ||||||||||||||
Changes in: | ||||||||||||||
Accrued interest receivable | ( | |||||||||||||
Other assets | ||||||||||||||
Other liabilities | ( | ( | ||||||||||||
TOTAL ADJUSTMENTS | ( | |||||||||||||
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
Proceeds from sales of equity securities | ||||||||||||||
Proceeds from maturities and calls of debt securities: | ||||||||||||||
Available-for-sale | ||||||||||||||
Held-to-maturity | ||||||||||||||
Purchases of equity securities | ( | ( | ||||||||||||
Purchases of debt securities: | ||||||||||||||
Available-for-sale | ( | ( | ||||||||||||
Held-to-maturity | ( | ( | ||||||||||||
Purchases of Federal Home Loan Bank stock | ( | |||||||||||||
Proceeds from redemption of Federal Home Loan Bank stock | ||||||||||||||
Net increase in loans | ( | ( | ||||||||||||
Proceeds from sale of other real estate owned | ||||||||||||||
Purchases of premises and equipment | ( | ( | ||||||||||||
Proceeds from sale of premises and equipment | ||||||||||||||
NET CASH FLOWS USED IN INVESTING ACTIVITIES | ( | ( | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
Net increase in deposits | ||||||||||||||
Net increase (decrease) in short-term borrowings | ( | |||||||||||||
Proceeds from long-term debt | ||||||||||||||
Principal payments on long-term debt | ( | ( | ||||||||||||
Proceeds from issuance of common stock | ||||||||||||||
Repurchase of common stock | ( | ( | ||||||||||||
Cash dividends paid on common stock | ( | ( | ||||||||||||
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | ||||||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | ||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | |||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||||||
Interest paid | $ | |||||||||||||
Income taxes paid, net of refunds | ||||||||||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES: | ||||||||||||||
Transfer from loans to other real estate owned | ||||||||||||||
As Reported Pre-ASC 326 | Impact of ASC 326 Adoption | As Reported Under ASC 326 | |||||||||||||||
Assets: | |||||||||||||||||
Loans, gross of allowance | $ | ||||||||||||||||
ACL on loans | ( | ( | ( | ||||||||||||||
ACL on debt securities, held to maturity | ( | ( | |||||||||||||||
Deferred tax assets, net | |||||||||||||||||
Liabilities: | |||||||||||||||||
ACL on off-balance sheet credit exposures | |||||||||||||||||
Shareholders' Equity: | |||||||||||||||||
Retained earnings | ( |
Portfolio Segment | Pool | Methodology | Loss Driver(s) | ||||||||
Agricultural | Ag Production and Other Farm | Remaining Life | N/A | ||||||||
Commercial & industrial | Commercial & Industrial | Discounted Cash Flow | Weighted Combined MSA Unemployment and Coincident Economic Activity (CEA) Index for Ohio | ||||||||
Commercial, secured by real estate | Commercial Real Estate (CRE) Non-Owner Occupied | Discounted Cash Flow | Weighted Combined MSA Unemployment | ||||||||
Commercial, secured by real estate | Commercial Real Estate (CRE) Owner Occupied | Discounted Cash Flow | Weighted Combined MSA Unemployment and Moody's Commercial Real Estate Price Indexes (CREPI) - US Commercial | ||||||||
Commercial, secured by real estate | Farm Real Estate | Remaining Life | N/A | ||||||||
Residential real estate | Home Equity Line | Discounted Cash Flow | Weighted Combined MSA Unemployment | ||||||||
Consumer | Installment - Direct and ODP (Consumer) | Discounted Cash Flow | Weighted Combined MSA Unemployment | ||||||||
Consumer | Letter of Credit | Discounted Cash Flow/Manual | N/A | ||||||||
Commercial, secured by real estate | Multifamily | Discounted Cash Flow | Weighted Combined MSA Unemployment | ||||||||
Commercial, secured by real estate | Other Construction, Land Development, and Other Land | Discounted Cash Flow | Weighted Combined MSA Unemployment and Weighted Combined MSA Home Price Index | ||||||||
Consumer | Overdrafts | Manual | N/A | ||||||||
Other | Other Loans | Remaining Life | N/A | ||||||||
Residential real estate | Real Estate Mortgage | Discounted Cash Flow | Weighted Combined MSA Unemployment | ||||||||
Residential real estate | Residential 1-4 Family Construction | Discounted Cash Flow | Weighted Combined MSA Unemployment and Weighted Combined MSA Home Price Index | ||||||||
Residential real estate | Second Mortgage (Residential) | Discounted Cash Flow | Weighted Combined MSA Unemployment |
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||
Debt Securities, Available-for-Sale: | |||||||||||||||||||||||
U.S. Treasury notes | $ | ||||||||||||||||||||||
U.S. Agency notes | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
U.S. Agency mortgage-backed securities | |||||||||||||||||||||||
Municipal securities: | |||||||||||||||||||||||
Non-taxable | |||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
$ | |||||||||||||||||||||||
Debt Securities, Held-to-Maturity: | |||||||||||||||||||||||
Municipal securities: | |||||||||||||||||||||||
Non-taxable | $ | ||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
$ | |||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Debt Securities, Available-for-Sale: | |||||||||||||||||||||||
U.S. Treasury notes | $ | ||||||||||||||||||||||
U.S. Agency notes | |||||||||||||||||||||||
Corporate Bonds | |||||||||||||||||||||||
U.S. Agency mortgage-backed securities | |||||||||||||||||||||||
Municipal securities: | |||||||||||||||||||||||
Non-taxable | |||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
$ | $ | ||||||||||||||||||||||
Debt Securities, Held-to-Maturity: | |||||||||||||||||||||||
Municipal securities: | |||||||||||||||||||||||
Non-taxable | $ | ||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
$ |
Less than Twelve Months | Twelve Months or Greater | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||
Available-for-Sale: | |||||||||||||||||||||||
U.S. Treasury notes | $ | ||||||||||||||||||||||
U.S. Agency notes | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
U.S. Agency mortgage-backed securities | |||||||||||||||||||||||
Municipal securities: | |||||||||||||||||||||||
Non-taxable | |||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
$ | |||||||||||||||||||||||
Held-to-Maturity: | |||||||||||||||||||||||
Municipal securities: | |||||||||||||||||||||||
Non-taxable | $ | ||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
$ | |||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Available-for-Sale: | |||||||||||||||||||||||
U.S. Treasury notes | $ | ||||||||||||||||||||||
U.S. Agency notes | |||||||||||||||||||||||
Corporate Bonds | |||||||||||||||||||||||
U.S. Agency mortgage-backed securities | |||||||||||||||||||||||
Municipal securities: | |||||||||||||||||||||||
Non-taxable | |||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
$ | |||||||||||||||||||||||
Held-to-Maturity: | |||||||||||||||||||||||
Municipal securities: | |||||||||||||||||||||||
Non-taxable | $ | ||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
$ |
Available-for-Sale | Held-to-Maturity | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Due within one year | $ | ||||||||||||||||||||||
Due from one to five years | |||||||||||||||||||||||
Due from five to ten years | |||||||||||||||||||||||
Due after ten years | |||||||||||||||||||||||
U.S. Agency mortgage-backed securities | |||||||||||||||||||||||
$ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Mutual Funds | $ | ||||||||||||||||||||||
Equity Securities | |||||||||||||||||||||||
Total equity securities with a readily determinable fair value | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net losses recognized during the period on equity securities | $ | ( | ( | ( | ( | ||||||||||||||||||
Less net losses recognized during the period on equity securities sold during the period | ( | ||||||||||||||||||||||
Net unrealized losses recognized during the reporting period on equity securities still held at period end | $ | ( | ( | ( | ( |
September 30, 2023 | December 31, 2022 | ||||||||||
Commercial & industrial | $ | ||||||||||
Commercial, secured by real estate: | |||||||||||
Owner occupied | |||||||||||
Non-owner occupied | |||||||||||
Farmland | |||||||||||
Multi-family | |||||||||||
Construction loans secured by 1-4 family dwellings | |||||||||||
Construction loans secured by other real estate | |||||||||||
Residential real estate: | |||||||||||
Secured by senior liens on 1-4 family dwellings | |||||||||||
Secured by junior liens on 1-4 family dwellings | |||||||||||
Home equity line-of-credit loans | |||||||||||
Consumer | |||||||||||
Agricultural | |||||||||||
Other loans, including deposit overdrafts | |||||||||||
Loans, gross | |||||||||||
Less allowance for credit losses | |||||||||||
Loans, net | $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Non-accrual Loans with no Allowance for Credit Losses | Total Non-accrual Loans | Interest Income Recognized | Non-accrual Loans with no Allowance for Credit Losses | Total Non-accrual Loans | Interest Income Recognized | ||||||||||||||||||||||||||||||
Commercial & industrial | $ | ||||||||||||||||||||||||||||||||||
Commercial, secured by real estate: | |||||||||||||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||||||||||||
Non-owner occupied | |||||||||||||||||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||
Construction loans secured by 1-4 family dwellings | |||||||||||||||||||||||||||||||||||
Construction loans secured by other real estate | |||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
Secured by senior liens on 1-4 family dwellings | |||||||||||||||||||||||||||||||||||
Secured by junior liens on 1-4 family dwellings | |||||||||||||||||||||||||||||||||||
Home equity line-of-credit loans | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||
Total | $ |
Commercial & Industrial | Commercial, Secured by Real Estate | Residential Real Estate | Consumer | Agricultural | Other | Total | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | ||||||||||||||||||||||||||||||||||||||||
Provision for (recovery of) credit losses | ( | ( | |||||||||||||||||||||||||||||||||||||||
Losses charged off | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | ||||||||||||||||||||||||||||||||||||||||
Ratio of net charge-offs to average loans | % | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year, prior to adoption of ASC 326 | $ | ||||||||||||||||||||||||||||||||||||||||
Impact of adopting ASC 326 | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Provision for (recovery of) credit losses | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Losses charged off | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | ||||||||||||||||||||||||||||||||||||||||
Ratio of net charge-offs to average loans | % | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | ||||||||||||||||||||||||||||||||||||||||
Provision for (recovery of) credit losses | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Losses charged off | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | ||||||||||||||||||||||||||||||||||||||||
Ratio of net charge-offs to average loans | % | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | ||||||||||||||||||||||||||||||||||||||||
Provision for (recovery of) credit losses | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Losses charged off | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | ||||||||||||||||||||||||||||||||||||||||
Ratio of net charge-offs to average loans | % | % | ( | % | % | % | % | % |
Commercial & Industrial | Commercial, Secured by Real Estate | Residential Real Estate | Consumer | Agricultural | Other | Total | |||||||||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for credit losses | $ | ||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for credit loss | |||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | ||||||||||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for credit losses | $ | ||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for credit loss | |||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | ||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for credit losses | $ | ||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for credit loss | |||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | ||||||||||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for credit losses | $ | ||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for credit loss | |||||||||||||||||||||||||||||||||||||||||
Acquired credit impaired loans | |||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Carrying Value | Related Allowance | Carrying Value | Related Allowance | ||||||||||||||||||||
Commercial & industrial | $ | ||||||||||||||||||||||
Commercial, secured by real estate: | |||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||
Non-owner occupied | |||||||||||||||||||||||
Farmland | |||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||
Construction loans secured by 1-4 family dwellings | |||||||||||||||||||||||
Construction loans secured by other real estate | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Secured by senior liens on 1-4 family dwellings | |||||||||||||||||||||||
Secured by junior liens on 1-4 family dwellings | |||||||||||||||||||||||
Home equity line-of-credit loans | |||||||||||||||||||||||
Consumer | |||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||
Other loans, including deposit overdrafts | |||||||||||||||||||||||
Total | $ |
Term Loans by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, secured by real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, secured by real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
OAEM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Total Loans Receivable | 90 Days or More Past Due and Accruing | |||||||||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | $ | ||||||||||||||||||||||||||||||||||||||||
Commercial, secured by real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||||||||||||||||||
Non-owner occupied | |||||||||||||||||||||||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||||||||
Construction loans secured by 1-4 family dwellings | |||||||||||||||||||||||||||||||||||||||||
Construction loans secured by other real estate | |||||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||
Secured by senior liens on 1-4 family dwellings | |||||||||||||||||||||||||||||||||||||||||
Secured by junior liens on 1-4 family dwellings | |||||||||||||||||||||||||||||||||||||||||
Home equity line-of-credit loans | |||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||
Total | $ | ||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | $ | ||||||||||||||||||||||||||||||||||||||||
Commercial, secured by real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||||||||||||||||||
Non-owner occupied | |||||||||||||||||||||||||||||||||||||||||
Farms | |||||||||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||||||||
Construction loans secured by 1-4 family dwellings | |||||||||||||||||||||||||||||||||||||||||
Construction loans secured by other real estate | |||||||||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||||||||
Secured by senior liens on 1-4 family dwellings | |||||||||||||||||||||||||||||||||||||||||
Secured by junior liens on 1-4 family dwellings | |||||||||||||||||||||||||||||||||||||||||
Home equity line-of-credit loans | |||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||
Total | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Affordable housing tax credit investment | $ | ||||||||||
Less amortization | |||||||||||
Net affordable housing tax credit investment | $ | ||||||||||
Unfunded commitment | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Tax credits and other tax benefits recognized | $ | ||||||||||||||||||||||
Tax credit amortization expense included in provision for income taxes |
September 30, 2023 | December 31, 2022 | ||||||||||
Demand deposits | $ | ||||||||||
Interest-bearing demand and money fund deposits | |||||||||||
Savings deposits | |||||||||||
IRA and time certificates | |||||||||||
Total | $ | ||||||||||
October 1, 2023 - September 30, 2024 | $ | ||||
October 1, 2024 - September 30, 2025 | |||||
October 1, 2025 - September 30, 2026 | |||||
October 1, 2026 - September 30, 2027 | |||||
October 1, 2027 - September 30, 2028 | |||||
Thereafter | |||||
$ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||||||||
Term loan | $ | % | $ | % | |||||||||||||||||||
FHLB long-term advances | % | % | |||||||||||||||||||||
$ | % | $ | % |
September 30, 2023 | December 31, 2022 | ||||||||||
Maturing within one year | $ | ||||||||||
Maturing after one year through two years | |||||||||||
Maturing after two years through three years | |||||||||||
Maturing after three years through four years | |||||||||||
Maturing after four years through five years | |||||||||||
Thereafter | |||||||||||
Total | $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||||||||
Revolving line of credit | $ | % | $ | % | |||||||||||||||||||
Overnight lines of credit | % | % | |||||||||||||||||||||
FHLB short-term advances | % | % | |||||||||||||||||||||
$ | % | $ | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Operating lease expense | $ | ||||||||||||||||||||||
Short-term lease expense | |||||||||||||||||||||||
Variable lease expense | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total lease expense | $ |
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows from operating leases | $ | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | ||||
Weighted average remaining lease term in years for operating leases | |||||
Weighted average discount rate for operating leases | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Statutory tax rate | % | % | % | % | |||||||||||||||||||
Increase (decrease) resulting from: | |||||||||||||||||||||||
Tax exempt interest | ( | % | ( | % | ( | % | ( | % | |||||||||||||||
Tax exempt income on bank-owned life insurance | ( | % | ( | % | ( | % | ( | % | |||||||||||||||
Captive insurance premium income | ( | % | ( | % | ( | % | ( | % | |||||||||||||||
Affordable housing tax credit limited partnerships | ( | % | ( | % | ( | % | ( | % | |||||||||||||||
Nondeductible merger-related expenses | % | % | % | % | |||||||||||||||||||
Other, net | % | % | % | % | |||||||||||||||||||
Effective tax rate | % | % | % | % |
September 30, 2023 | December 31, 2022 | ||||||||||
Commitments to extend credit: | |||||||||||
Commercial loans | $ | ||||||||||
Other loans | |||||||||||
Fixed rate | |||||||||||
Adjustable rate | |||||||||||
Unused lines of credit: | |||||||||||
Fixed rate | |||||||||||
Adjustable rate | |||||||||||
Unused overdraft protection amounts on demand accounts | |||||||||||
Standby letters of credit | |||||||||||
Total commitments | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
Unrealized Losses on Available-for-Sale Debt Securities | Changes in Pension Plan Assets and Benefit Obligations | Total | Unrealized Losses on Available-for-Sale Debt Securities | Changes in Pension Plan Assets and Benefit Obligations | Total | ||||||||||||||||||||||||||||||
2023 | |||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Balance at end of period | $ | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of taxes | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Balance at end of period | $ | ( | ( | ( | ( | ( | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Qualified noncontributory defined benefit retirement plan | $ | ||||||||||||||||||||||
401(k) plan |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Amortization of unrecognized net loss | |||||||||||||||||||||||
Net periodic pension cost | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Amortization of net actuarial loss | $ | ( | ( | ||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding, January 1, | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | |||||||||||||||||||||||
Outstanding, September 30, | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Restricted stock expense | $ | ||||||||||||||||||||||
Tax effect |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | ||||||||||||||||||||||
Less allocation of earnings and dividends to participating securities | |||||||||||||||||||||||
Net income allocated to common shareholders | $ | ||||||||||||||||||||||
Weighted average common shares outstanding, gross | |||||||||||||||||||||||
Less average participating securities | |||||||||||||||||||||||
Adjusted weighted average number of shares outstanding used in the calculation of basic and diluted earnings per common share | |||||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | $ | |||||||||||||||||||||
Diluted |
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||||||||||||||||
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||
Recurring fair value measurements: | |||||||||||||||||||||||||||||
Equity securities with a readily determinable fair value: | |||||||||||||||||||||||||||||
Equity securities | $ | ||||||||||||||||||||||||||||
Mutual funds measured at net asset value | |||||||||||||||||||||||||||||
Debt securities, available-for-sale: | |||||||||||||||||||||||||||||
U.S. Treasury notes | |||||||||||||||||||||||||||||
U.S. Agency notes | |||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | |||||||||||||||||||||||||||||
Municipal securities: | |||||||||||||||||||||||||||||
Non-taxable | |||||||||||||||||||||||||||||
Taxable | |||||||||||||||||||||||||||||
Total recurring fair value measurements | $ | ||||||||||||||||||||||||||||
Nonrecurring fair value measurements: | |||||||||||||||||||||||||||||
Individually evaluated loans | $ | ||||||||||||||||||||||||||||
Total nonrecurring fair value measurements | $ | ||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Recurring fair value measurements: | |||||||||||||||||||||||||||||
Equity securities with a readily determinable fair value: | |||||||||||||||||||||||||||||
Equity securities | $ | ||||||||||||||||||||||||||||
Mutual funds | |||||||||||||||||||||||||||||
Mutual funds measured at net asset value | |||||||||||||||||||||||||||||
Debt securities, available-for-sale: | |||||||||||||||||||||||||||||
U.S. Treasury notes | |||||||||||||||||||||||||||||
U.S. Agency notes | |||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | |||||||||||||||||||||||||||||
Municipal securities: | |||||||||||||||||||||||||||||
Non-taxable | |||||||||||||||||||||||||||||
Taxable | |||||||||||||||||||||||||||||
Total recurring fair value measurements | $ | ||||||||||||||||||||||||||||
Nonrecurring fair value measurements: | |||||||||||||||||||||||||||||
Individually evaluated loans | $ | ||||||||||||||||||||||||||||
Total nonrecurring fair value measurements | $ |
Range | ||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Inputs | High | Low | Weighted Average | |||||||||||||||||||||||||||||||||
September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Individually evaluated collateral dependent loans | $ | Estimated sales price | Adjustments for comparable properties, discounts to reflect current market conditions | Not applicable | ||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Individually evaluated loans | Discounted cash flows | Discount rate | % | % | % | |||||||||||||||||||||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | ||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
September 30, 2023 | ||||||||||||||||||||||||||||||||
FINANCIAL ASSETS: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | |||||||||||||||||||||||||||||||
Debt securities, held-to-maturity, net | ||||||||||||||||||||||||||||||||
Loans, net | ||||||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
FINANCIAL LIABILITIES: | ||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||||||||
Accrued interest payable | ||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
FINANCIAL ASSETS: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | |||||||||||||||||||||||||||||||
Debt securities, held-to-maturity, net | ||||||||||||||||||||||||||||||||
Loans, net | ||||||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
FINANCIAL LIABILITIES: | ||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||||||||
Accrued interest payable |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Average Outstanding Balance | Interest Earned/ Paid | Average Yield/ Rate | Average Outstanding Balance | Interest Earned/ Paid | Average Yield/ Rate | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Loans (1) | $ | 1,451,153 | 17,875 | 4.89 | % | $ | 1,384,520 | 15,026 | 4.31 | % | ||||||||||||||||||||||||||||
Interest-bearing demand deposits | 10,891 | 152 | 5.54 | % | 13,212 | 80 | 2.40 | % | ||||||||||||||||||||||||||||||
Federal Reserve Bank stock | 4,652 | — | — | % | 4,652 | — | — | % | ||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 7,007 | 134 | 7.59 | % | 4,369 | 65 | 5.90 | % | ||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||
Equity securities | 3,382 | 38 | 4.46 | % | 4,387 | 20 | 1.81 | % | ||||||||||||||||||||||||||||||
Debt securities, taxable | 274,494 | 1,296 | 1.87 | % | 297,001 | 1,323 | 1.77 | % | ||||||||||||||||||||||||||||||
Debt securities, non-taxable (2) | 24,134 | 219 | 3.60 | % | 27,890 | 241 | 3.43 | % | ||||||||||||||||||||||||||||||
Total earnings assets | 1,775,713 | 19,714 | 4.40 | % | 1,736,031 | 16,755 | 3.83 | % | ||||||||||||||||||||||||||||||
Non-earning assets | 203,514 | 198,954 | ||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (7,958) | (5,830) | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,971,269 | $ | 1,929,155 | ||||||||||||||||||||||||||||||||||
Interest-bearing demand and money market deposits | $ | 541,487 | 2,298 | 1.68 | % | $ | 539,228 | 422 | 0.31 | % | ||||||||||||||||||||||||||||
Savings deposits | 379,515 | 129 | 0.13 | % | 453,420 | 159 | 0.14 | % | ||||||||||||||||||||||||||||||
IRA and time certificates | 230,030 | 1,999 | 3.45 | % | 168,358 | 398 | 0.94 | % | ||||||||||||||||||||||||||||||
Short-term borrowings | 63,018 | 830 | 5.23 | % | 5,728 | 71 | 4.92 | % | ||||||||||||||||||||||||||||||
Long-term debt | 72,550 | 841 | 4.60 | % | 24,920 | 210 | 3.34 | % | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,286,600 | 6,097 | 1.88 | % | 1,191,654 | 1,260 | 0.42 | % | ||||||||||||||||||||||||||||||
Demand deposits | 459,476 | 508,926 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 21,226 | 23,524 | ||||||||||||||||||||||||||||||||||||
Equity | 203,967 | 205,051 | ||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,971,269 | $ | 1,929,155 | ||||||||||||||||||||||||||||||||||
Net interest rate spread (3) | 2.52 | % | 3.41 | % | ||||||||||||||||||||||||||||||||||
Net interest income and net interest margin on a taxable-equivalent basis (4) | 13,617 | 3.04 | % | 15,495 | 3.54 | % | ||||||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 138.02 | % | 145.68 | % |
(1) | Includes non-accrual loans. | ||||
(2) | Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided | ||||
(3) | The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities. | ||||
(4) | The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets. |
Three Months Ended September 30, 2023 vs. 2022 | ||||||||||||||||||||
Increase (decrease) attributable to: | ||||||||||||||||||||
Volume | Rate | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Interest-earning Assets: | ||||||||||||||||||||
Loans | $ | 749 | 2,100 | 2,849 | ||||||||||||||||
Interest-bearing demand deposits | (16) | 88 | 72 | |||||||||||||||||
Federal Reserve Bank stock | — | — | — | |||||||||||||||||
Federal Home Loan Bank stock | 47 | 22 | 69 | |||||||||||||||||
Investment securities: | ||||||||||||||||||||
Equity securities | (5) | 23 | 18 | |||||||||||||||||
Debt securities, taxable | (104) | 77 | (27) | |||||||||||||||||
Debt securities, non-taxable | (34) | 12 | (22) | |||||||||||||||||
Total interest income | 637 | 2,322 | 2,959 | |||||||||||||||||
Interest-bearing Liabilities: | ||||||||||||||||||||
Interest-bearing demand and money market deposits | 2 | 1,874 | 1,876 | |||||||||||||||||
Savings deposits | (25) | (5) | (30) | |||||||||||||||||
IRA and time certificates | 193 | 1,408 | 1,601 | |||||||||||||||||
Short-term borrowings | 754 | 5 | 759 | |||||||||||||||||
Long-term debt | 527 | 104 | 631 | |||||||||||||||||
Total interest expense | 1,451 | 3,386 | 4,837 | |||||||||||||||||
Net interest income | $ | (814) | (1,064) | (1,878) |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Average Outstanding Balance | Interest Earned/ Paid | Average Yield/ Rate | Average Outstanding Balance | Interest Earned/ Paid | Average Yield/ Rate | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Loans (1) | $ | 1,415,719 | 50,781 | 4.80 | % | $ | 1,379,080 | 43,360 | 4.20 | % | ||||||||||||||||||||||||||||
Interest-bearing demand deposits | 11,051 | 453 | 5.48 | % | 10,546 | 109 | 1.38 | % | ||||||||||||||||||||||||||||||
Federal Reserve Bank stock | 4,652 | 140 | 4.02 | % | 4,652 | 140 | 4.02 | % | ||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 6,840 | 317 | 6.20 | % | 4,922 | 130 | 3.53 | % | ||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||
Equity securities | 3,698 | 113 | 4.09 | % | 4,484 | 56 | 1.67 | % | ||||||||||||||||||||||||||||||
Debt securities, taxable | 280,998 | 3,962 | 1.89 | % | 297,162 | 3,672 | 1.65 | % | ||||||||||||||||||||||||||||||
Debt securities, non-taxable (2) | 24,518 | 662 | 3.61 | % | 27,831 | 718 | 3.45 | % | ||||||||||||||||||||||||||||||
Total earnings assets | 1,747,476 | 56,428 | 4.32 | % | 1,728,677 | 48,185 | 3.73 | % | ||||||||||||||||||||||||||||||
Non-earning assets | 200,897 | 196,750 | ||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (7,782) | (5,623) | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,940,591 | $ | 1,919,804 | ||||||||||||||||||||||||||||||||||
Interest-bearing demand and money market deposits | $ | 522,896 | 5,140 | 1.31 | % | $ | 515,868 | 762 | 0.20 | % | ||||||||||||||||||||||||||||
Savings deposits | 396,785 | 402 | 0.14 | % | 451,597 | 465 | 0.14 | % | ||||||||||||||||||||||||||||||
IRA and time certificates | 210,407 | 4,675 | 2.97 | % | 179,514 | 1,266 | 0.94 | % | ||||||||||||||||||||||||||||||
Short-term borrowings | 78,916 | 3,142 | 5.32 | % | 12,140 | 320 | 3.52 | % | ||||||||||||||||||||||||||||||
Long-term debt | 36,878 | 1,240 | 4.50 | % | 15,907 | 387 | 3.25 | % | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,245,882 | 14,599 | 1.57 | % | 1,175,026 | 3,200 | 0.36 | % | ||||||||||||||||||||||||||||||
Demand deposits | 469,580 | 510,422 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 21,633 | 22,292 | ||||||||||||||||||||||||||||||||||||
Equity | 203,496 | 212,064 | ||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,940,591 | $ | 1,919,804 | ||||||||||||||||||||||||||||||||||
Net interest rate spread (3) | 2.75 | % | 3.37 | % | ||||||||||||||||||||||||||||||||||
Net interest income and net interest margin on a taxable-equivalent basis (4) | 41,829 | 3.20 | % | 44,985 | 3.48 | % | ||||||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 140.26 | % | 147.12 | % |
Nine Months Ended September 30, 2023 vs. 2022 | ||||||||||||||||||||
Increase (decrease) attributable to: | ||||||||||||||||||||
Volume | Rate | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Interest-earning Assets: | ||||||||||||||||||||
Loans | $ | 1,178 | 6,243 | 7,421 | ||||||||||||||||
Interest-bearing demand deposits | 5 | 339 | 344 | |||||||||||||||||
Federal Reserve Bank stock | — | — | — | |||||||||||||||||
Federal Home Loan Bank stock | 64 | 123 | 187 | |||||||||||||||||
Investment securities: | ||||||||||||||||||||
Equity securities | (11) | 68 | 57 | |||||||||||||||||
Debt securities, taxable | (208) | 498 | 290 | |||||||||||||||||
Debt securities, non-taxable | (88) | 32 | (56) | |||||||||||||||||
Total interest income | 940 | 7,303 | 8,243 | |||||||||||||||||
Interest-bearing Liabilities: | ||||||||||||||||||||
Interest-bearing demand and money market deposits | 11 | 4,367 | 4,378 | |||||||||||||||||
Savings deposits | (56) | (7) | (63) | |||||||||||||||||
IRA and time certificates | 253 | 3,156 | 3,409 | |||||||||||||||||
Short-term borrowings | 2,582 | 240 | 2,822 | |||||||||||||||||
Long-term debt | 661 | 192 | 853 | |||||||||||||||||
Total interest expense | 3,451 | 7,948 | 11,399 | |||||||||||||||||
Net interest income | $ | (2,511) | (645) | (3,156) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Difference | 2023 | 2022 | Difference | ||||||||||||||||||||||||||||||
Fiduciary income | $ | 1,736 | 1,513 | 223 | 5,263 | 4,851 | 412 | ||||||||||||||||||||||||||||
Service charges and fees on deposit accounts | 1,397 | 1,706 | (309) | 4,324 | 4,658 | (334) | |||||||||||||||||||||||||||||
Bank-owned life insurance income | 282 | 269 | 13 | 830 | 803 | 27 | |||||||||||||||||||||||||||||
Gains from sales of loans | 29 | — | 29 | 38 | 188 | (150) | |||||||||||||||||||||||||||||
Other operating income | 134 | 93 | 41 | 350 | 159 | 191 | |||||||||||||||||||||||||||||
Total non-interest income | $ | 3,578 | 3,581 | (3) | 10,805 | 10,659 | 146 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Difference | 2023 | 2022 | Difference | ||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 7,044 | 7,062 | (18) | 21,454 | 21,291 | 163 | ||||||||||||||||||||||||||||
Equipment expenses | 397 | 398 | (1) | 1,175 | 1,234 | (59) | |||||||||||||||||||||||||||||
Occupancy expense, net | 805 | 790 | 15 | 2,367 | 2,300 | 67 | |||||||||||||||||||||||||||||
State financial institutions tax | 396 | 439 | (43) | 1,189 | 1,312 | (123) | |||||||||||||||||||||||||||||
Marketing | 223 | 215 | 8 | 735 | 845 | (110) | |||||||||||||||||||||||||||||
Amortization of intangibles | 113 | 113 | — | 336 | 365 | (29) | |||||||||||||||||||||||||||||
FDIC insurance premiums, net | 224 | 137 | 87 | 663 | 397 | 266 | |||||||||||||||||||||||||||||
Contracted services | 671 | 613 | 58 | 1,978 | 1,902 | 76 | |||||||||||||||||||||||||||||
Other real estate owned, net | 1 | 5 | (4) | 3 | (874) | 877 | |||||||||||||||||||||||||||||
Merger-related expenses | 302 | — | 302 | 742 | — | 742 | |||||||||||||||||||||||||||||
Other non-interest expense | 2,068 | 2,578 | (510) | 6,205 | 7,297 | (1,092) | |||||||||||||||||||||||||||||
Total non-interest expense | $ | 12,244 | 12,350 | (106) | 36,847 | 36,069 | 778 |
September 30, 2023 | December 31, 2022 | Difference $ | Difference % | ||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||
Total cash and cash equivalents | $ | 43,422 | 22,701 | 20,721 | 91.28 | % | |||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Equity securities with a readily determinable fair value, at fair value | 1,254 | 2,273 | (1,019) | (44.83) | % | ||||||||||||||||||
Equity securities without a readily determinable fair value, at cost | 2,099 | 2,099 | — | — | % | ||||||||||||||||||
Debt securities, available-for-sale, at fair value | 274,500 | 289,850 | (15,350) | (5.30) | % | ||||||||||||||||||
Debt securities, held-to-maturity, net, at cost | 19,006 | 19,878 | (872) | (4.39) | % | ||||||||||||||||||
Federal Reserve Bank stock, at cost | 4,652 | 4,652 | — | — | % | ||||||||||||||||||
Federal Home Loan Bank stock, at cost | 7,583 | 4,415 | 3,168 | 71.76 | % | ||||||||||||||||||
Loans, net | 1,450,472 | 1,395,632 | 54,840 | 3.93 | % | ||||||||||||||||||
Premises and equipment, net | 33,288 | 33,042 | 246 | 0.74 | % | ||||||||||||||||||
Operating lease right-of-use assets | 6,093 | 6,525 | (432) | (6.62) | % | ||||||||||||||||||
Goodwill | 59,221 | 59,221 | — | — | % | ||||||||||||||||||
Core deposit and other intangibles | 1,351 | 1,827 | (476) | (26.05) | % | ||||||||||||||||||
Bank-owned life insurance | 45,128 | 44,298 | 830 | 1.87 | % | ||||||||||||||||||
Interest receivable | 8,087 | 7,482 | 605 | 8.09 | % | ||||||||||||||||||
Other assets | 25,512 | 25,503 | 9 | 0.04 | % | ||||||||||||||||||
Total assets | $ | 1,981,668 | 1,919,398 | 62,270 | 3.24 | % | |||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Non-interest-bearing | $ | 453,146 | 505,824 | (52,678) | (10.41) | % | |||||||||||||||||
Interest-bearing | 1,163,744 | 1,099,146 | 64,598 | 5.88 | % | ||||||||||||||||||
Total deposits | 1,616,890 | 1,604,970 | 11,920 | 0.74 | % | ||||||||||||||||||
Short-term borrowings | 30,000 | 71,455 | (41,455) | (58.02) | % | ||||||||||||||||||
Long-term debt | 112,641 | 19,072 | 93,569 | 490.61 | % | ||||||||||||||||||
Operating lease liabilities | 6,317 | 6,647 | (330) | (4.96) | % | ||||||||||||||||||
Accrued interest and other liabilities | 14,471 | 16,579 | (2,108) | (12.71) | % | ||||||||||||||||||
Total liabilities | 1,780,319 | 1,718,723 | 61,596 | 3.58 | % | ||||||||||||||||||
SHAREHOLDERS' EQUITY: | |||||||||||||||||||||||
Common shares | 144,865 | 144,069 | 796 | 0.55 | % | ||||||||||||||||||
Retained earnings | 143,211 | 139,249 | 3,962 | 2.85 | % | ||||||||||||||||||
Treasury shares, at cost | (56,015) | (52,689) | (3,326) | 6.31 | % | ||||||||||||||||||
Accumulated other comprehensive loss, net of taxes | (30,712) | (29,954) | (758) | 2.53 | % | ||||||||||||||||||
Total shareholders' equity | 201,349 | 200,675 | 674 | 0.34 | % | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,981,668 | 1,919,398 | 62,270 | 3.24 | % |
Minimum Requirement | Minimum Requirement with Capital Conservation Buffer | To Be Considered Well-Capitalized | ||||||||||||||||||
Ratio of Common Equity Tier 1 Capital to risk-weighted assets | 4.5 | % | 7.0 | % | 6.5 | % | ||||||||||||||
Ratio of Tier 1 Capital to risk-weighted assets | 6.0 | % | 8.5 | % | 8.0 | % | ||||||||||||||
Ratio of Total Capital (Tier 1 Capital plus Tier 2 Capital) to risk-weighted assets | 8.0 | % | 10.5 | % | 10.0 | % | ||||||||||||||
Leverage Ratio (Tier 1 Capital to adjusted quarterly average total assets) | 4.0 | % | N/A | 5.0 | % |
September 30, 2023 | December 31, 2022 | ||||||||||
Regulatory Capital: | |||||||||||
Shareholders' equity | $ | 210,202 | 213,052 | ||||||||
Goodwill and other intangibles | (59,841) | (60,177) | |||||||||
Accumulated other comprehensive loss, net | 30,709 | 29,945 | |||||||||
Tier 1 risk-based capital | 181,070 | 182,820 | |||||||||
Eligible allowance for credit losses | 8,197 | 5,646 | |||||||||
Total risk-based capital | $ | 189,267 | 188,466 | ||||||||
Capital ratios: | |||||||||||
Common Equity Tier 1 Capital to risk-weighted assets | 11.72 | % | 11.94 | % | |||||||
Tier 1 Capital to risk-weighted assets | 11.72 | % | 11.94 | % | |||||||
Total Capital to risk-weighted assets | 12.25 | % | 12.31 | % | |||||||
Leverage | 9.32 | % | 9.72 | % |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Rate Shock Scenario in Basis Points | Amount | $ Change in NII | % Change in NII | Limits | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Up 300 | 59,964 | (3,194) | (5.06) | % | 20 | % | ||||||||||||||||||||
Up 200 | 60,968 | (2,190) | (3.47) | % | 15 | % | ||||||||||||||||||||
Up 100 | 61,881 | (1,277) | (2.02) | % | 10 | % | ||||||||||||||||||||
Base | 63,158 | — | — | % | — | % | ||||||||||||||||||||
Down 100 | 63,518 | 360 | 0.57 | % | 10 | % | ||||||||||||||||||||
Down 200 | 64,348 | 1,190 | 1.88 | % | 15 | % | ||||||||||||||||||||
Down 300 | 65,157 | 1,999 | 3.17 | % | 20 | % |
Rate Shock Scenario in Basis Points | Amount | $ Change in EVE | % Change in EVE | Limits | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Up 300 | 136,743 | (14,441) | (9.55) | % | 25 | % | ||||||||||||||||||||
Up 200 | 147,303 | (3,881) | (2.57) | % | 20 | % | ||||||||||||||||||||
Up 100 | 157,254 | 6,070 | 4.01 | % | 15 | % | ||||||||||||||||||||
Base | 151,184 | — | — | % | — | % | ||||||||||||||||||||
Down 100 | 174,669 | 23,485 | 15.53 | % | 15 | % | ||||||||||||||||||||
Down 200 | 182,618 | 31,434 | 20.79 | % | 20 | % | ||||||||||||||||||||
Down 300 | 191,607 | 40,423 | 26.74 | % | 25 | % |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
July 1 - 31, 2023 | — | $ | — | — | 315,047 | ||||||||||||||||||
August 1 - 31, 2023 | — | $ | — | — | 315,047 | ||||||||||||||||||
September 1 - 30, 2023 | — | $ | — | — | 315,047 |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit No. | Exhibit Description | ||||
2.1 | |||||
3.1 | |||||
3.2 | |||||
10.1 | |||||
10.2 | |||||
10.3 | |||||
10.4 | |||||
10.5 | |||||
10.6 | |||||
10.7 | |||||
31.1 | |||||
31.2 | |||||
32 | |||||
101 | The following financial information from LCNB Corp.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 is formatted in Extensible Business Reporting Language: (i) the Consolidated Condensed Balance Sheets, (ii) the Consolidated Condensed Statements of Income, (iii) the Consolidated Condensed Statements of Comprehensive Income, (iv) the Consolidated Condensed Statements of Shareholders' Equity, (v) the Consolidated Condensed Statements of Cash Flows, and (vi) the Notes to Consolidated Condensed Financial Statements. | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
LCNB Corp. | ||||||||
November 8, 2023 | /s/ Eric J. Meilstrup | |||||||
Eric J. Meilstrup | ||||||||
Chief Executive Officer and President | ||||||||
November 8, 2023 | /s/ Robert C. Haines, II | |||||||
Robert C. Haines, II | ||||||||
Executive Vice President and Chief Financial Officer |
1) | I have reviewed this quarterly report on Form 10-Q of LCNB Corp.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5) | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Eric J. Meilstrup | |||||
Eric J. Meilstrup | |||||
Chief Executive Officer and President | |||||
November 8, 2023 |
1) | I have reviewed this quarterly report on Form 10-Q of LCNB Corp.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5) | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Robert C. Haines, II | |||||
Robert C. Haines, II | |||||
Executive Vice President and Chief Financial Officer | |||||
November 8, 2023 |
/s/ Eric J. Meilstrup | /s/ Robert C. Haines, II | ||||||||||
Eric J. Meilstrup Chief Executive Officer and President | Robert C. Haines, II Executive Vice President and Chief Financial Officer |
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
SHAREHOLDERS' EQUITY: | ||
Preferred shares, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common shares, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 19,000,000 | 19,000,000 |
Common stock, shares, issued | 14,334,765 | 14,270,550 |
Common stock, shares, outstanding (in shares) | 11,123,382 | 11,259,080 |
Treasury stock, shares | 3,211,383 | 3,011,470 |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,070 | $ 5,579 | $ 12,921 | $ 15,720 |
Other comprehensive income (loss): | ||||
Net unrealized (losses) gains on available-for-sale debt securities (net of taxes) | (2,941) | (9,670) | (758) | (29,804) |
Change in nonqualified pension plan unrecognized net gain and unrecognized prior service cost (net of taxes) | 0 | 1 | 0 | 4 |
Other comprehensive income (loss), net of tax | (2,941) | (9,669) | (758) | (29,800) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 1,129 | $ (4,090) | $ 12,163 | $ (14,080) |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Other comprehensive income (loss): | ||||
Net unrealized gain (loss) on available-for-sale securities, tax expense (benefit) | $ (782) | $ (2,571) | $ (203) | $ (7,923) |
Other comprehensive (income) loss, defined benefit plan, before reclassification adjustment, tax | $ 0 | $ 1 |
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Common stock dividends (in dollars per share) | $ 0.21 | $ 0.20 | $ 0.63 | $ 0.60 |
Accumulated Other Comprehensive Income |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
There were no reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2023 and 2022.
|
Basis of Presentation |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | BASIS OF PRESENTATION BASIS OF PRESENTATION The accompanying unaudited interim consolidated condensed financial statements include LCNB Corp. and its wholly-owned subsidiaries: LCNB National Bank and LCNB Risk Management, Inc., its captive insurance company. All material intercompany transactions and balances are eliminated in consolidation. The unaudited interim consolidated condensed financial statements have been prepared in accordance with U.S. GAAP for interim financial information and the rules and regulations of the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments (consisting of normal, recurring accruals) considered necessary for a fair presentation of the Company's financial position, results of consolidated operations, and cash flows for the interim periods, as required by Regulation S-X, Rule 8-03. The consolidated condensed balance sheet as of December 31, 2022 has been derived from the audited consolidated balance sheet as of that date. Certain prior period data presented in the financial statements have been reclassified to conform with the current period presentation. These reclassifications had no effect on net income. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year ending December 31, 2023. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements, accounting policies, and financial notes thereto included in LCNB's 2022 Annual Report on Form 10-K filed with the SEC. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards (“FASB”) Accounting Standards Update (“ASU”) No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ASU No. 2020-04 was issued in March 2020 and provides optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Originally, the amendments in this update were effective for all entities as of March 12, 2020 through December 31, 2022. ASU No. 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" extended the sunset date from December 31, 2022 to December 31, 2024. LCNB has adopted the standard and utilized the LIBOR transition relief allowed under ASU 2020-04 and ASU 2020-06. The impact was immaterial, as all loans indexed to LIBOR were transitioned to another referenced index, predominately the Secured Overnight Financing Rate ("SOFR") for one, three, and six months. In all instances, LCNB was able to meet the criteria for the practical expedients and there was no impact on its results of consolidated operations or financial position. ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASC 326") The Company adopted ASC 326 on January 1, 2023. It significantly changed guidance for recognizing impairment of financial instruments. Previous guidance required an "incurred loss" methodology for recognizing credit losses that delayed recognition until it was probable a loss had been incurred. ASC 326 replaced the incurred loss impairment methodology with a new "current expected credit loss" ("CECL") methodology that reflects expected credit losses over the lives of the credit instruments and requires consideration of a broader range of information to estimate credit losses. ASC 326 requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. It also applies to off-balance sheet credit exposures, such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments. ASC 326 also made changes to the accounting for credit losses on available-for-sale debt securities. Additional disclosures are required. Adoption of ASC 326 did not have a material impact on LCNB's results of consolidated operations or financial position. LCNB adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable guidance. The following table shows the impact of adopting ASC 326 on January 1, 2023 (in thousands):
ACL - LOANS The allowance for credit losses ("ACL") is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes that the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in external conditions, such as changes in unemployment rates, property values, or other relevant factors. Accrued interest receivable totaling $6.6 million at September 30, 2023 was excluded from the amortized cost basis of the estimate of credit losses and is reported in interest receivable on the consolidated condensed balance sheets. Loans are generally placed on non-accrual status at 90 days past due or when the borrower's ability to repay becomes doubtful. When a loan is placed on non-accrual status, any accrued interest is reversed and charged against interest income. ACL - LOANS - COLLECTIVELY EVALUATED The ACL is measured on a collective pool basis when similar risk characteristics exist. LCNB has identified the following portfolio segments: •Commercial and industrial loans •Commercial, secured by real estate •Real estate loans secured by owner occupied commercial real estate •Real estate loans secured by non-owner occupied commercial real estate •Real estate loans secured by farmland •Real estate loans secured by multi-family dwellings •Construction loans secured by 1-4 family dwellings •Construction loans secured by other real estate •Residential real estate •Residential real estate loans secured by senior liens on 1-4 family dwellings •Residential real estate loans secured by junior liens on 1-4 family dwellings •Home equity line of credit loans •Consumer loans •Agricultural loans not secured by real estate •DDA Overdrafts Measures of the allowance for credit loss are as follows:
*"MSA" referenced above combines forecasts for Cincinnati, Dayton and Columbus metro areas. **"Weighted" referenced above refers to weighted average of baseline and alternative scenarios Management has chosen the discounted cash flow ("DCF") methodology to estimate the quantitative portion of the allowance for credit losses on loans for all loan pools except for the farm real estate and agricultural pools, which use the weighted average remaining maturity ("WARM") methodology. A Loss Driver Analysis (“LDA”) was performed for each segment to identify potential loss drivers and create a regression model for use in forecasting cash flows. The LDA for all DCF-based pools utilized LCNB’s data and peer data from the Federal Financial Institutions Examination Council's (“FFIEC”) Call Report filings. In creating the DCF model, as well as reviewing the model quarterly, management established a one-quarter reasonable and supportable forecast period with a two-quarter straight line reversion to the long-term historical average. Due to the infrequency of losses within the farm real estate and agricultural loan portfolios, LCNB elected to use peer data for a more statistically sound calculation. Key assumptions in the DCF model include the probability of default (“PD”), loss given default (“LGD”), and prepayment/curtailment rates. The model-driven PD and LGD are derived using company specific historical data. Prepayment and curtailment rates were calculated using third party studies of LCNB's data. Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes extensions, renewals, and modifications unless the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Qualitative factors for the DCF and WARM methodologies include the following: •Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Company operates that affect the collectability of financial assets; •The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics; and •Model risk including statistical risk, reversion risk, timing risk, and model limitation risk. ACL - LOANS - INDIVIDUALLY EVALUATED Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. Management has determined that any loans which have been placed on non-performing status will be individually evaluated. When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the estimated fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of the collateral. Other non-performing loans may estimate fair value using either the collateral valuation or the net present value of expected future cash receipts, depending on the financial situation of the borrower. ACL - HELD-TO-MATURITY (“HTM”) DEBT SECURITIES Expected credit losses on HTM debt securities are measured on a collective basis by major security type. Accrued interest receivable on HTM securities totaled $232,000 at September 30, 2023 and is excluded from the estimate of credit losses. The HTM securities portfolio consists of taxable and nontaxable municipal securities from local governmental entities. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. At the time of adoption, the estimated reserve was immaterial. ACL - AVAILABLE-FOR-SALE (“AFS”) DEBT SECURITIES For AFS debt securities in an unrealized loss position, LCNB first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any decline in fair value that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. Changes in the ACL are recorded as a provision for (or recovery of) credit loss expense. Losses are charged against the allowance when management believes that uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on AFS debt securities totaled $1.2 million at September 30, 2023 and is excluded from the estimate of credit losses. ACL - OFF-BALANCE SHEET CREDIT EXPOSURES LCNB estimates expected credit losses over the contractual period during which it is exposed to credit risk by a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for (or recovery of) credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate is made of expected credit losses on commitments expected to be funded over their estimated lives. Funding rates are based on a historical analysis of the Company’s portfolio, while estimates of credit losses are determined using the same loss rates as funded loans. REGULATORY CAPITAL Federal banking regulatory agencies allow an optional phase-in period of three years for banks to absorb the impact to regulatory capital of implementing CECL. LCNB has elected not to exercise this option and the full impact of adopting ASC 326 is included in regulatory capital as of September 30, 2023. Adoption of the ASC did not materially affect LCNB's regulatory capital ratios. ASU No. 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" ASU No. 2022-02 was issued in March 2022 and became effective for LCNB on January 1, 2023. These amendments eliminated previous TDR recognition and measurement guidance and, instead, required that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance disclosure requirements and introduce new disclosure requirements for certain modifications to borrowers experiencing financial difficulties. Additionally, the amendments require the disclosure of current-period gross charge-offs by year of origination. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE From time to time the FASB issues an ASU to communicate changes to U.S. GAAP. The following information provides brief summaries of newly issued but not yet effective ASUs that could have an effect on LCNB’s financial position or results of consolidated operations: ASU No. 2023-02, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a Consensus of the Emerging Issues Task Force)" ASU No. 2023-02 was issued in March 2023 and allows reporting entities the option to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met, regardless of the tax credit program from which the income tax credits are received. The proportional amortization method was previously limited to Low-Income Housing Tax Credit investments. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense (benefit). For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted. LCNB does not expect adoption of ASU No. 2023-02 to have a material impact on its results of consolidated operations or financial position.
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Acquisition |
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Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Subsequent Event, Pro Forma Business Combinations or Disposals | BUSINESS COMBINATION LCNB and Cincinnati Bancorp, Inc. (“CNNB”), the holding company for Cincinnati Federal, a federally chartered stock savings and loan association, signed a definitive merger agreement on May 17, 2023 whereby CNNB would merge with and into LCNB in a stock-and-cash transaction. CNNB operated five full-service branch offices in Cincinnati, Ohio and Northern Kentucky and had approximately $310.8 million in assets, $265.6 million in net loans, $211.4 million of deposits, and $39.7 million in consolidated stockholders’ equity as of September 30, 2023. The transaction, which was completed November 1, 2023, significantly increased LCNB’s existing presence in the Cincinnati market and expanded LCNB’s community banking franchise across the Ohio River into the Northern Kentucky market. Subject to the terms of the merger agreement, which was approved by the Board of Directors of each company, CNNB shareholders had the opportunity to elect to receive either 0.9274 shares of LCNB stock or $17.21 per share in cash for each share of CNNB common stock owned, subject to 80% of all CNNB shares being exchanged for LCNB common stock. As of March 31, 2023, CNNB reported 2,884,171 shares of common stock outstanding, as well as 296,350 options with a weighted average strike price of $10.65 per share. Any unexercised stock options of CNNB were canceled in exchange for a cash payment of $17.21 less the per share exercise price of the option. The transaction consideration was subject to dollar-for-dollar downward adjustment if CNNB’s adjusted shareholders’ equity, as defined in the merger agreement, is less than $36.8 million as measured three business days immediately before the closing date. At the time of closing, Cincinnati Federal branches become branches of LCNB National Bank. Going forward, LCNB has 33 banking offices in Ohio and one branch office in Northern Kentucky.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | INVESTMENT SECURITIES The amortized cost and estimated fair value of debt securities and the allowance for credit losses of securities held-to-maturity at September 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
The Company estimated the expected credit losses at September 30, 2023 to be immaterial based on the composition of the securities portfolio. Information concerning debt securities with gross unrealized losses at September 30, 2023 and December 31, 2022, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (dollars in thousands):
Securities are reviewed on a quarterly basis to assess declines in fair value for credit losses. For available-for-sale debt securities in an unrealized loss position, LCNB first assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis, which may be at maturity. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income with the establishment of an allowance. If the debt security does not meet the aforementioned criteria, LCNB evaluates whether the decline in fair value is due to credit loss factors. In making this assessment, LCNB considers any changes to the rating of the security by a rating agency and considers if there are any adverse conditions specifically related to the issuer of the security, among other factors. U.S. Treasury notes, U.S. Agency notes, and U.S. Agency mortgage-backed securities are issued or guaranteed by the U.S. federal government or agencies thereof and risk of credit loss is considered minimal for these securities. For available-for-sale debt securities outstanding at September 30, 2023, management concluded that, in all instances, fair values were less than carrying values due to market and other factors and that no credit loss provisions were required. Debt securities with a market value of $143.7 million and $166.4 million at September 30, 2023 and December 31, 2022, respectively, were pledged to secure public deposits and for other purposes required or as permitted by law. Excluding holdings in U.S. Treasury securities and U.S. Government Agencies, there were no investments in securities of any issuer that exceeded 10% of LCNB's consolidated shareholders' equity at September 30, 2023. Contractual maturities of debt securities at September 30, 2023 were as follows (in thousands). Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.
Equity securities with a readily determinable fair value are carried at fair value, with changes in fair value recognized in other operating income in the consolidated condensed statements of income. Equity securities without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. LCNB was not aware of any impairment or observable price change adjustments that needed to be made at September 30, 2023 on its investments in equity securities without a readily determinable fair value. The cost and estimated fair value of equity securities with a readily determinable fair value at September 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
Changes in the fair value of equity securities with a readily determinable fair value for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
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Affordable Housing Tax Credit Limited Partnership |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Affordable Housing Tax Credit Limited Partnership | AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP INVESTMENTS LCNB is a limited partner in multiple limited partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit pursuant to Section 42 of the Internal Revenue Code. The purpose of the investments is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants. The following table presents the balances of LCNB's affordable housing tax credit investments and related unfunded commitments at September 30, 2023 and December 31, 2022 (in thousands):
The net affordable housing tax credit investment is included in other assets and the unfunded commitment is included in accrued interest and other liabilities in the consolidated condensed balance sheets. LCNB expects to fund the unfunded commitment over 9.0 years. The following table presents other information relating to LCNB's affordable housing tax credit investments for the three and nine months ended September 30, 2023 and 2022 (in thousands):
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Deposits |
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Deposits | DEPOSITS The following table presents the composition of LCNB's deposits at September 30, 2023 and December 31, 2022 (in thousands):
Contractual maturities of time deposits at September 30, 2023 were as follows (in thousands):
The aggregate amount of time deposits in denominations of $250,000 or more at September 30, 2023 and December 31, 2022 was $36.8 million and $16.1 million, respectively.
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Borrowings |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | BORROWINGS Long-term debt at September 30, 2023 and December 31, 2022 was as follows (dollars in thousands):
The term loan with a correspondent financial institution bears a fixed interest rate of 4.25%, amortizes quarterly, and has a final balloon payment due on June 15, 2025. Contractual maturities of long-term debt at September 30, 2023 and December 31, 2022 were as follows ( in thousands):
Short-term borrowings at September 30, 2023 and December 31, 2022 were as follows (dollars in thousands):
At September 30, 2023, LCNB Corp. had a short-term revolving line of credit arrangement with a financial institution for a maximum amount of $5 million at an interest rate equal to the Wall Street Journal Prime Rate minus 25 basis points. This agreement expires on June 15, 2024. No borrowings were outstanding under this arrangement at September 30, 2023. At September 30, 2023, LCNB had overnight line of credit borrowing arrangements with three correspondent financial institutions. Under the terms of the first arrangement, LCNB can borrow up to $30 million at an interest rate equal to the lending institution’s federal funds rate plus a spread of 50 basis points. No borrowings were outstanding under this arrangement at September 30, 2023. Under the terms of the second arrangement, LCNB can borrow up to $25 million at an interest rate equal to the FOMC rate plus a spread of 25 basis points. No borrowings were outstanding under this arrangement at September 30, 2023. Under the terms of the third arrangement, LCNB can borrow up to $25 million at the interest rate in effect at the time of borrowing. No borrowings were outstanding under this arrangement at September 30, 2023. All long- and short-term advances from the FHLB of Cincinnati are secured by a blanket pledge of LCNB's 1-4 family first lien mortgage loans in the amount of approximately $276 million and $270 million at September 30, 2023 and December 31, 2022, respectively. Remaining borrowing capacity with the FHLB, including both long- and short-term borrowings, at September 30, 2023 was approximately $61.1 million. LCNB could increase its remaining borrowing capacity by purchasing more stock in the FHLB.
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Leases |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES Lease expenses for offices are included in the consolidated condensed statements of income in net occupancy expense and lease expenses for equipment and ATMs are included in equipment expense. Components of lease expense for the three and nine months ended September 30, 2023 were as follows (in thousands):
Other information related to leases at September 30, 2023 were as follows (dollars in thousands):
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Income Taxes |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES A reconciliation between the statutory income tax and LCNB's effective tax rate on income from continuing operations follows:
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Commitments and Contingent Liabilities |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES LCNB is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. Exposure to credit loss in the event of nonperformance by the other parties to financial instruments for commitments to extend credit is represented by the contract amount of those instruments. LCNB uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Financial instruments whose contract amounts represent off-balance-sheet credit risk at September 30, 2023 and December 31, 2022 were as follows (in thousands):
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Unused lines of credit include amounts not drawn on line of credit loans. Commitments to extend credit and unused lines of credit generally have fixed expiration dates or other termination clauses. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees generally are fully secured and have varying maturities. The Bounce Protection product, a customer deposit overdraft program, is offered as a service and does not constitute a contract between the customer and LCNB. LCNB evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained is based on management's credit evaluation of the borrower and may include accounts receivable, inventory, residential realty, income-producing commercial property, agricultural property, and property, plant, and equipment. Capital expenditures include the construction or acquisition of new office buildings, improvements to LCNB's offices, purchases of furniture and equipment, and additions or improvements to LCNB's information technology system. Commitments outstanding for capital expenditures as of September 30, 2023 totaled approximately $3.2 million. Management believes that LCNB has sufficient liquidity to fund its lending and capital expenditure commitments. LCNB and its subsidiaries are parties to various claims and proceedings arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such proceedings and claims will not be material to LCNB's consolidated financial position or results of operations.
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Retirement Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans | RETIREMENT PLANS LCNB participates in a noncontributory defined benefit multi-employer retirement plan that covers substantially all regular full-time employees hired before January 1, 2009. Employees hired before this date who received a benefit reduction under certain amendments to the defined benefit retirement plan receive an automatic contribution of 5% or 7% of their annual compensation, depending on the sum of an employee's age and vesting service, into their defined contribution plans (401(k) plans), regardless of the contributions made by the employees. These contributions are made annually and these employees do not receive any employer matches to their 401(k) contributions. Employees hired on or after January 1, 2009 receive a 50% employer match on their contributions into the 401(k) plan, up to a maximum LCNB contribution of 3% of each individual employee's annual compensation. Funding and administrative costs of the qualified noncontributory defined benefit retirement plan and 401(k) plan charged to pension and other employee benefits in the consolidated condensed statements of income for the three and nine-month period ended September 30, 2023 and 2022 were as follows (in thousands):
Certain highly compensated former employees participate in a nonqualified defined benefit retirement plan. The nonqualified plan ensures that participants receive the full amount of benefits to which they would have been entitled under the noncontributory defined benefit retirement plan in the absence of limits on benefit levels imposed by certain sections of the Internal Revenue Code. This plan is limited to the original participants and no new participants have been added. The components of net periodic pension cost of the nonqualified defined benefit retirement plan for the three and nine months ended September 30, 2023 and 2022 are summarized as follows (in thousands):
Amounts recognized in accumulated other comprehensive loss, net of tax, for the nonqualified defined benefit retirement plan for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
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Earnings Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | EARNINGS PER COMMON SHARE LCNB has granted restricted stock awards with non-forfeitable dividend rights, which are considered participating securities. Accordingly, earnings per share is computed using the two-class method as required by ASC No. 260-10-45. Basic earnings per common share is calculated by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period, which excludes the participating securities. Diluted earnings per common share is adjusted for the dilutive effects of stock options, warrants, and restricted stock. The diluted average number of common shares outstanding has been increased for the assumed exercise of stock options and warrants with proceeds used to purchase treasury shares at the average market price for the period. Earnings per share for the three and nine months ended September 30, 2023 and 2022 were calculated as follows (dollars in thousands, except share and per share data):
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTSLCNB measures certain assets at fair value using various valuation techniques and assumptions, depending on the nature of the asset. Fair value is defined as the price that would be received from the sale of an asset in an orderly transaction between market participants at the measurement date. The inputs to the valuation techniques used to measure fair value are assigned to one of three broad levels: •Level 1 – quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the reporting date. •Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly. Level 2 inputs may include quoted prices for similar assets in active markets, quoted prices for identical assets or liabilities in markets that are not active, inputs other than quoted prices (such as interest rates or yield curves) that are observable for the asset or liability, and inputs that are derived from or corroborated by observable market data. •Level 3 – inputs that are unobservable for the asset or liability. EQUITY SECURITIES WITH A READILY DETERMINABLE FAIR VALUE Equity securities with a readily determinable fair value are reported at fair value with changes in fair value reported in other operating income in the consolidated condensed statements of income. Fair values for equity securities are determined based on market quotations (level 1). At December 31, 2022, LCNB had investments in two mutual funds that were traded in active markets and their fair values were based on market quotations (level 1). These two mutual funds were sold during the first quarter of 2023. Investments in another two mutual funds are measured at fair value using net asset values and are considered level 1 because the net asset values are determined and published and are the basis for current transactions. DEBT SECURITIES, AVAILABLE-FOR-SALE The majority of LCNB's financial debt securities are classified as available-for-sale. The securities are reported at fair value with unrealized holding gains and losses reported net of income taxes in accumulated other comprehensive income. LCNB utilizes a pricing service for determining the fair values of its debt securities. Methods and significant assumptions used to estimate fair value were as follows: •Fair values for U.S. Treasury notes are determined based on market quotations (level 1). •Fair values for the other debt securities are calculated using the discounted cash flow method for each security. The discount rates for these cash flows are estimated by the pricing service using rates observed in the market (level 2). Cash flow streams are dependent on estimated prepayment speeds and the overall structure of the securities given existing market conditions. ASSETS RECORDED AT FAIR VALUE ON A NONRECURRING BASIS Assets that may be recorded at fair value on a nonrecurring basis include individually evaluated collateral dependent loans (or impaired loans prior to the adoption of ASC 326), other real estate owned, and other repossessed assets. LCNB does not record loans at fair value on a recurring basis. However, from time to time, nonrecurring fair value adjustments to collateral dependent loans are recorded to reflect partial write-downs or specific reserves that are based on the observable market price or current estimated value of the collateral. These loans are reported in the nonrecurring table below at initial recognition of significant borrower distress and on an ongoing basis until recovery or charge-off. The fair values of distressed loans are determined using either the sales comparison approach or income approach. Respective unobservable inputs for the approaches consist of adjustments for differences between comparable sales and the utilization of appropriate capitalization rates. The following table summarizes the valuation of LCNB's assets recorded at fair value by input levels as of September 30, 2023 and December 31, 2022 (in thousands):
The following table presents quantitative information about unobservable inputs used in nonrecurring level 3 fair value measurements at September 30, 2023 and December 31, 2022 (dollars in thousands):
Carrying amounts and estimated fair values of financial instruments as of September 30, 2023 and December 31, 2022 were as follows (in thousands): The fair values of off-balance-sheet financial instruments such as loan commitments and letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements. The fair values of such instruments were not material at September 30, 2023 and December 31, 2022.
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Accounting Policies (Policies) |
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Recent Accounting Pronouncements | ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards (“FASB”) Accounting Standards Update (“ASU”) No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ASU No. 2020-04 was issued in March 2020 and provides optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Originally, the amendments in this update were effective for all entities as of March 12, 2020 through December 31, 2022. ASU No. 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" extended the sunset date from December 31, 2022 to December 31, 2024. LCNB has adopted the standard and utilized the LIBOR transition relief allowed under ASU 2020-04 and ASU 2020-06. The impact was immaterial, as all loans indexed to LIBOR were transitioned to another referenced index, predominately the Secured Overnight Financing Rate ("SOFR") for one, three, and six months. In all instances, LCNB was able to meet the criteria for the practical expedients and there was no impact on its results of consolidated operations or financial position. ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASC 326") The Company adopted ASC 326 on January 1, 2023. It significantly changed guidance for recognizing impairment of financial instruments. Previous guidance required an "incurred loss" methodology for recognizing credit losses that delayed recognition until it was probable a loss had been incurred. ASC 326 replaced the incurred loss impairment methodology with a new "current expected credit loss" ("CECL") methodology that reflects expected credit losses over the lives of the credit instruments and requires consideration of a broader range of information to estimate credit losses. ASC 326 requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. It also applies to off-balance sheet credit exposures, such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments. ASC 326 also made changes to the accounting for credit losses on available-for-sale debt securities. Additional disclosures are required. Adoption of ASC 326 did not have a material impact on LCNB's results of consolidated operations or financial position. LCNB adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable guidance. The following table shows the impact of adopting ASC 326 on January 1, 2023 (in thousands):
ACL - LOANS The allowance for credit losses ("ACL") is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes that the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in external conditions, such as changes in unemployment rates, property values, or other relevant factors. Accrued interest receivable totaling $6.6 million at September 30, 2023 was excluded from the amortized cost basis of the estimate of credit losses and is reported in interest receivable on the consolidated condensed balance sheets. Loans are generally placed on non-accrual status at 90 days past due or when the borrower's ability to repay becomes doubtful. When a loan is placed on non-accrual status, any accrued interest is reversed and charged against interest income. ACL - LOANS - COLLECTIVELY EVALUATED The ACL is measured on a collective pool basis when similar risk characteristics exist. LCNB has identified the following portfolio segments: •Commercial and industrial loans •Commercial, secured by real estate •Real estate loans secured by owner occupied commercial real estate •Real estate loans secured by non-owner occupied commercial real estate •Real estate loans secured by farmland •Real estate loans secured by multi-family dwellings •Construction loans secured by 1-4 family dwellings •Construction loans secured by other real estate •Residential real estate •Residential real estate loans secured by senior liens on 1-4 family dwellings •Residential real estate loans secured by junior liens on 1-4 family dwellings •Home equity line of credit loans •Consumer loans •Agricultural loans not secured by real estate •DDA Overdrafts Measures of the allowance for credit loss are as follows:
*"MSA" referenced above combines forecasts for Cincinnati, Dayton and Columbus metro areas. **"Weighted" referenced above refers to weighted average of baseline and alternative scenarios Management has chosen the discounted cash flow ("DCF") methodology to estimate the quantitative portion of the allowance for credit losses on loans for all loan pools except for the farm real estate and agricultural pools, which use the weighted average remaining maturity ("WARM") methodology. A Loss Driver Analysis (“LDA”) was performed for each segment to identify potential loss drivers and create a regression model for use in forecasting cash flows. The LDA for all DCF-based pools utilized LCNB’s data and peer data from the Federal Financial Institutions Examination Council's (“FFIEC”) Call Report filings. In creating the DCF model, as well as reviewing the model quarterly, management established a one-quarter reasonable and supportable forecast period with a two-quarter straight line reversion to the long-term historical average. Due to the infrequency of losses within the farm real estate and agricultural loan portfolios, LCNB elected to use peer data for a more statistically sound calculation. Key assumptions in the DCF model include the probability of default (“PD”), loss given default (“LGD”), and prepayment/curtailment rates. The model-driven PD and LGD are derived using company specific historical data. Prepayment and curtailment rates were calculated using third party studies of LCNB's data. Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes extensions, renewals, and modifications unless the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Qualitative factors for the DCF and WARM methodologies include the following: •Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Company operates that affect the collectability of financial assets; •The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics; and •Model risk including statistical risk, reversion risk, timing risk, and model limitation risk. ACL - LOANS - INDIVIDUALLY EVALUATED Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. Management has determined that any loans which have been placed on non-performing status will be individually evaluated. When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the estimated fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of the collateral. Other non-performing loans may estimate fair value using either the collateral valuation or the net present value of expected future cash receipts, depending on the financial situation of the borrower. ACL - HELD-TO-MATURITY (“HTM”) DEBT SECURITIES Expected credit losses on HTM debt securities are measured on a collective basis by major security type. Accrued interest receivable on HTM securities totaled $232,000 at September 30, 2023 and is excluded from the estimate of credit losses. The HTM securities portfolio consists of taxable and nontaxable municipal securities from local governmental entities. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. At the time of adoption, the estimated reserve was immaterial. ACL - AVAILABLE-FOR-SALE (“AFS”) DEBT SECURITIES For AFS debt securities in an unrealized loss position, LCNB first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any decline in fair value that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. Changes in the ACL are recorded as a provision for (or recovery of) credit loss expense. Losses are charged against the allowance when management believes that uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on AFS debt securities totaled $1.2 million at September 30, 2023 and is excluded from the estimate of credit losses. ACL - OFF-BALANCE SHEET CREDIT EXPOSURES LCNB estimates expected credit losses over the contractual period during which it is exposed to credit risk by a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for (or recovery of) credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate is made of expected credit losses on commitments expected to be funded over their estimated lives. Funding rates are based on a historical analysis of the Company’s portfolio, while estimates of credit losses are determined using the same loss rates as funded loans. REGULATORY CAPITAL Federal banking regulatory agencies allow an optional phase-in period of three years for banks to absorb the impact to regulatory capital of implementing CECL. LCNB has elected not to exercise this option and the full impact of adopting ASC 326 is included in regulatory capital as of September 30, 2023. Adoption of the ASC did not materially affect LCNB's regulatory capital ratios. ASU No. 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" ASU No. 2022-02 was issued in March 2022 and became effective for LCNB on January 1, 2023. These amendments eliminated previous TDR recognition and measurement guidance and, instead, required that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance disclosure requirements and introduce new disclosure requirements for certain modifications to borrowers experiencing financial difficulties. Additionally, the amendments require the disclosure of current-period gross charge-offs by year of origination. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE From time to time the FASB issues an ASU to communicate changes to U.S. GAAP. The following information provides brief summaries of newly issued but not yet effective ASUs that could have an effect on LCNB’s financial position or results of consolidated operations: ASU No. 2023-02, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a Consensus of the Emerging Issues Task Force)" ASU No. 2023-02 was issued in March 2023 and allows reporting entities the option to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met, regardless of the tax credit program from which the income tax credits are received. The proportional amortization method was previously limited to Low-Income Housing Tax Credit investments. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense (benefit). For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted. LCNB does not expect adoption of ASU No. 2023-02 to have a material impact on its results of consolidated operations or financial position.
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Investment Securities (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) on Securities | Changes in the fair value of equity securities with a readily determinable fair value for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
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Realized Gain (Loss) on Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | The cost and estimated fair value of equity securities with a readily determinable fair value at September 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
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Investments Classified by Contractual Maturity Date | Contractual maturities of debt securities at September 30, 2023 were as follows (in thousands). Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.
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Schedule of Unrealized Loss on Investments | Information concerning debt securities with gross unrealized losses at September 30, 2023 and December 31, 2022, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (dollars in thousands):
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Unrealized Gain (Loss) on Investments | The amortized cost and estimated fair value of debt securities and the allowance for credit losses of securities held-to-maturity at September 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
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Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Classifications of Loans | Major classifications of loans at September 30, 2023 and December 31, 2022 were as follows (in thousands):
Loans in the above table are shown net of deferred origination fees and costs. Deferred origination fees, net of related costs, were $796,000 and $980,000 at September 30, 2023 and December 31, 2022, respectively.
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Non-accrual, Past Due, and Accruing Restructured Loans | Non-accrual loans by class of receivable as of September 30, 2023 and December 31, 2022 were as follows (in thousands):
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investments in Loans | The following table presents activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2023 and 2022 (in thousands):
A breakdown of the allowance for credit losses and allowance for loan losses and the loan portfolio by portfolio segment at September 30, 2023 and December 31, 2022 were as follows (in thousands):
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Analysis of the Company's Loan Portfolio by Credit Quality Indicators | The following table presents the amortized cost basis of loans by vintage and credit quality indicators at September 30, 2023 and December 31, 2022 (in thousands). The December 31, 2022 table is shown for comparison purposes.
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Loan Portfolio Aging Analysis | A loan portfolio aging analysis by class segment at September 30, 2023 and December 31, 2022 is as follows (in thousands):
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Schedule of Troubled Debt Restructurings, Modification Type [Table Text Block] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Collateral Dependent Individually Analyzed Financing Receivables | The following table presents the carrying value and related allowance of collateral dependent individually evaluated loans by class segment at the dates indicated (in thousands):
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Affordable Housing Tax Credit Limited Partnership (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Affordable Housing Program Obligation | The following table presents the balances of LCNB's affordable housing tax credit investments and related unfunded commitments at September 30, 2023 and December 31, 2022 (in thousands):
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Deposits (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Financial Position [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Deposit Liabilities | The following table presents the composition of LCNB's deposits at September 30, 2023 and December 31, 2022 (in thousands):
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Time Deposit Maturities | Contractual maturities of time deposits at September 30, 2023 were as follows (in thousands):
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Borrowings (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt Instruments | at September 30, 2023 and December 31, 2022 was as follows (dollars in thousands):
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Schedule of Maturities of Long-Term Debt | Contractual maturities of long-term debt at September 30, 2023 and December 31, 2022 were as follows ( in thousands):
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Schedule of Short-Term Debt | Short-term borrowings at September 30, 2023 and December 31, 2022 were as follows (dollars in thousands):
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | Components of lease expense for the three and nine months ended September 30, 2023 were as follows (in thousands):
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Lessee, Leases, Other Information | Other information related to leases at September 30, 2023 were as follows (dollars in thousands):
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Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation between Statutory Income Tax and Effective Tax Rate | A reconciliation between the statutory income tax and LCNB's effective tax rate on income from continuing operations follows:
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Commitments and Contingent Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Whose Contract Amounts Represent Off-Balance-Sheet Credit Risk | Financial instruments whose contract amounts represent off-balance-sheet credit risk at September 30, 2023 and December 31, 2022 were as follows (in thousands):
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Accumulated Other Comprehensive Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income | Changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
There were no reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2023 and 2022.
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Schedule of Reclassifications Out of Accumulated Other Comprehensive Income |
Retirement Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Funding and Administrative Cost of Qualified Noncontributory Defined Benefit Retirement Plan and 401(k) Plan Charged to Salaries and Employee Benefits | Funding and administrative costs of the qualified noncontributory defined benefit retirement plan and 401(k) plan charged to pension and other employee benefits in the consolidated condensed statements of income for the three and nine-month period ended September 30, 2023 and 2022 were as follows (in thousands):
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Components of Net Periodic Pension Cost of Nonqualified Defined Benefit Retirement Plan | The components of net periodic pension cost of the nonqualified defined benefit retirement plan for the three and nine months ended September 30, 2023 and 2022 are summarized as follows (in thousands):
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Amount Recognized in Accumulated Other Comprehensive Income, Net of Deferred Federal Income Taxes for Nonqualified Defined Retirement Plan | Amounts recognized in accumulated other comprehensive loss, net of tax, for the nonqualified defined benefit retirement plan for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
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Stock Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock Awards Activity | Restricted stock awards granted under the 2015 Plan during the three and nine months ended September 30, 2023 and 2022 were as follows:
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Share-based Payment Arrangement, Expensed and Capitalized, Amount | The following table presents expense recorded in salaries and employee benefits for restricted stock awards and the related tax information for the three and nine months ended September 30, 2023 and 2022 (in thousands):
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Earnings Per Common Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computations of Earnings per Common Share | Earnings per share for the three and nine months ended September 30, 2023 and 2022 were calculated as follows (dollars in thousands, except share and per share data):
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Valuation of LCNB's Assets Recorded at Fair Value by Inputs Level | The following table summarizes the valuation of LCNB's assets recorded at fair value by input levels as of September 30, 2023 and December 31, 2022 (in thousands):
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Fair Value Measurements Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following table presents quantitative information about unobservable inputs used in nonrecurring level 3 fair value measurements at September 30, 2023 and December 31, 2022 (dollars in thousands):
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Carrying Amounts and Estimated Fair Values of Financial Instruments | Carrying amounts and estimated fair values of financial instruments as of September 30, 2023 and December 31, 2022 were as follows (in thousands):
|
Investment Securities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, at fair value | $ 274,500 | $ 289,850 |
Asset Pledged as Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, at fair value | $ 143,700 | $ 166,400 |
Loans Loans, Troubled Debt Restructuring, Modification Type (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2022 |
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 0 | $ 0 |
Loans, Modifications (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 0 | $ 0 | ||
Residential Real Estate, 1-4 Family, Closed End Senior Liens Class Segment | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 325 | $ 325 | ||
Financing Receivable, Modified in Period, Number | 1 | 1 |
Deposits - Composition of Deposit Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Interest-bearing demand and money fund deposits | $ 554,700 | $ 510,324 |
Savings deposits | 370,917 | 432,322 |
IRA and time certificates | 238,127 | 156,500 |
Total deposits | 1,616,890 | 1,604,970 |
Noninterest-Bearing Domestic Deposit, Demand | $ 453,146 | $ 505,824 |
Deposits - Time Deposit Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
October 1, 2023 - September 30, 2024 | $ 138,134 | |
October 1, 2024 - September 30, 2025 | 85,359 | |
October 1, 2025 - September 30, 2026 | 6,492 | |
October 1, 2026 - September 30, 2027 | 6,443 | |
October 1, 2027 - September 30, 2028 | 976 | |
Thereafter | 723 | |
Time deposits | $ 238,127 | $ 156,500 |
Deposits - Narrative (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Interest-Bearing Deposits | ||
Time deposits greater than $250,000 | $ 36,800 | $ 16,100 |
Borrowings (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Schedule of Short-Term and Long-Term Debt [Line Items] | ||
Debt instrument, unused borrowing capacity, amount | $ 61,100 | |
Asset Pledged as Collateral | Federal Home Loan Bank Advances | ||
Schedule of Short-Term and Long-Term Debt [Line Items] | ||
Debt securities | $ 276,000 | $ 270,000 |
Bankers' Bank | ||
Schedule of Short-Term and Long-Term Debt [Line Items] | ||
Long-term debt, percentage bearing fixed interest, percentage rate | 4.25% | |
Long-Term Debt, Maturity Date | Jun. 15, 2025 | |
Line of credit facility, maximum borrowing capacity | $ 25,000 | |
Debt instrument, basis spread on variable rate | 0.25% | |
Line of Credit Facility, Expiration Date | Jun. 15, 2024 | |
Short-Term Debt [Line Items] | ||
Long-term debt, percentage bearing fixed interest, percentage rate | 4.25% | |
US Bank | ||
Schedule of Short-Term and Long-Term Debt [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 30,000 | |
Debt instrument, basis spread on variable rate | 0.50% |
Borrowings Schedule of Short-Term and Long-Term Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Schedule of Short-Term and Long-Term Debt [Line Items] | ||
Other Short-term Borrowings | $ 12,641 | $ 14,072 |
Long-term debt | 100,000 | 5,000 |
Debt, Long-term and Short-term, Combined Amount | $ 112,641 | $ 19,072 |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 4.25% | 4.25% |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 4.74% | 3.02% |
Debt, Weighted Average Interest Rate | 4.69% | 3.93% |
Borrowings Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Disclosure [Abstract] | ||
Long-Term Debt, Maturity, Year One | $ 5,000 | $ 6,918 |
Time Deposit Maturities, Year Two | 1,980 | 2,001 |
Long-Term Debt, Maturity, Year Three | 35,661 | 10,153 |
Long-Term Debt, Maturity, Year Four | 25,000 | 0 |
Long-Term Debt, Maturity, Year Five | 25,000 | 0 |
Long-Term Debt, Maturity, after Year Five | 20,000 | 0 |
Debt, Long-term and Short-term, Combined Amount | $ 112,641 | $ 19,072 |
Leases - Lease, Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||||
Operating lease expense | $ 219 | $ 117 | $ 661 | $ 461 |
Short-term lease expense | 16 | 100 | 62 | 184 |
Variable lease expense | 2 | 1 | 5 | 2 |
Other | 15 | 2 | 25 | 7 |
Total lease expense | $ 252 | $ 220 | $ 753 | $ 654 |
Leases Lease, Other Information (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities: | $ 649 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 |
Weighted average remaining lease term in years for operating leases | 33 years |
Weighted average discount rate for operating leases | 3.51% |
Leases - (Details) |
Sep. 30, 2023 |
---|---|
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term in years for operating leases | 33 years |
Income Taxes (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Increase (decrease) resulting from: | ||||
Tax exempt interest | 0.70% | 0.60% | 0.60% | 0.60% |
Tax exempt income on bank-owned life insurance | (1.20%) | (0.80%) | (1.10%) | (0.90%) |
Effective Income Tax Rate Reconciliation, Captive Insurance Premium Income, Percent | (0.50%) | (0.70%) | (0.70%) | (0.80%) |
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Percent | 1.50% | 0.70% | 1.40% | 0.90% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 1.70% | 0.00% | 0.70% | 0.00% |
Other, net | 0.10% | 0.10% | 0.30% | 0.10% |
Effective tax rate | 18.90% | 18.30% | 18.20% | 17.90% |
Accumulated Other Comprehensive Income, Reclassification of AOCI (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | $ 949 | $ 1,253 | $ 2,868 | $ 3,435 |
Reclassification adjustment, net of taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Stock Based Compensation, Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized for issuance (in shares) | shares | 450,000 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock compensation costs not yet recognized | $ | $ 1,008,000 |
Compensation costs not yet recognized, period for recognition | 4 years 4 months 24 days |
Stock Based Compensation , Restricted Stock Activity (Details) - Restricted Stock [Member] - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Shares | ||
Outstanding at beginning of period (in shares) | 58,314 | 44,512 |
Granted (in shares) | 44,150 | 32,554 |
Vested (in shares) | 23,447 | 18,814 |
Forfeited (in shares) | 0 | 0 |
Outstanding at end of period (in shares) | 79,017 | 58,252 |
Weighted Average Grant Date Fair Value | ||
Outstanding at beginning of period (usd per share) | $ 17.99 | $ 17.08 |
Granted (usd per share) | 17.84 | 19.25 |
Vested (usd per share) | 17.89 | 18.01 |
Forfeited (usd per share) | 0 | 0 |
Outstanding at end of period (usd per share) | $ 17.94 | $ 17.99 |
Stock Based Compensation Restricted Stock Awards Expense Informations (Details) - Restricted Stock [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Expense | $ 82 | $ 113 | $ 480 | $ 417 |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 18 | $ 24 | $ 101 | $ 88 |
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