05/06/2021 | Press release | Distributed by Public on 05/07/2021 01:09
PENNSYLVANIA
|
23-2265045
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Title of Each Class
|
Trading Symbol(s)
|
Name of Each Exchange on Which Registered
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer☒
|
Smaller reporting company ☒
|
Emerging growth company ☐
|
PAGE
|
||
Part I
|
FINANCIAL INFORMATION
|
|
Item 1.
|
Financial Statements (unaudited):
|
|
Consolidated Balance Sheet as of March 31, 2020 and December 31, 2020
|
1
|
|
Consolidated Statement of Income for the Three months Ended March 31, 2021 and 2020
|
2
|
|
Consolidated Statement of Comprehensive Income for the Three months ended March 31, 2021 and 2020
|
3
|
|
Consolidated Statement of Changes in Stockholders' Equity for the Three months ended March 31, 2021 and 2020
|
4
|
|
Consolidated Statement of Cash Flows for the Three months ended March 31, 2021 and 2020
|
5
|
|
Notes to Consolidated Financial Statements
|
6-30
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
31-50
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
51
|
Item 4.
|
Controls and Procedures
|
51
|
Part II
|
OTHER INFORMATION
|
|
Item 1.
|
Legal Proceedings
|
52
|
Item 1A.
|
Risk Factors
|
52
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
52
|
Item 3.
|
Defaults Upon Senior Securities
|
53
|
Item 4.
|
Mine Safety Disclosures
|
53
|
Item 5.
|
Other Information
|
53
|
Item 6.
|
Exhibits
|
53
|
Signatures
|
53
|
(in thousands except share data)
|
March 31,
2021
|
December 31,
2020
|
||||||
ASSETS:
|
||||||||
Cash and due from banks:
|
||||||||
Noninterest-bearing
|
$
|
18,164
|
$
|
16,374
|
||||
Interest-bearing
|
132,664
|
52,333
|
||||||
Total cash and cash equivalents
|
150,828
|
68,707
|
||||||
Interest bearing time deposits with other banks
|
13,509
|
13,758
|
||||||
Equity securities
|
2,118
|
1,931
|
||||||
Available-for-sale securities
|
321,967
|
295,189
|
||||||
Loans held for sale
|
9,946
|
14,640
|
||||||
Loans (net of allowance for loan losses:
|
||||||||
2021, $16,560 and 2020, $15,815)
|
1,387,841
|
1,389,466
|
||||||
Premises and equipment
|
17,450
|
16,948
|
||||||
Accrued interest receivable
|
5,572
|
5,998
|
||||||
Goodwill
|
31,376
|
31,376
|
||||||
Bank owned life insurance
|
30,190
|
32,589
|
||||||
Other intangibles
|
1,696
|
1,668
|
||||||
Other assets
|
23,117
|
19,404
|
||||||
TOTAL ASSETS
|
$
|
1,995,610
|
$
|
1,891,674
|
||||
LIABILITIES:
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$
|
336,438
|
$
|
303,762
|
||||
Interest-bearing
|
1,351,032
|
1,285,096
|
||||||
Total deposits
|
1,687,470
|
1,588,858
|
||||||
Borrowed funds
|
86,171
|
88,838
|
||||||
Accrued interest payable
|
913
|
1,017
|
||||||
Other liabilities
|
22,249
|
18,702
|
||||||
TOTAL LIABILITIES
|
1,796,803
|
1,697,415
|
||||||
STOCKHOLDERS' EQUITY:
|
||||||||
Preferred Stock $1.00par value; authorized 3,000,000shares at March 31, 2021and December 31, 2020; noneissued in 2021or 2020
|
-
|
-
|
||||||
Common stock $1.00par value; authorized 25,000,000shares at March 31, 2021and December 31, 2020; issued 4,350,342at March 31, 2021and 4,350,342at December 31, 2020
|
4,350
|
4,350
|
||||||
Additional paid-in capital
|
75,908
|
75,908
|
||||||
Retained earnings
|
133,270
|
126,627
|
||||||
Accumulated other comprehensive income
|
1,002
|
2,587
|
||||||
Treasury stock, at cost: 437,663shares at March 31, 2021and 428,492shares at December 31, 2020
|
(15,723
|
)
|
(15,213
|
)
|
||||
TOTAL STOCKHOLDERS' EQUITY
|
198,807
|
194,259
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
1,995,610
|
$
|
1,891,674
|
Three Months Ended
March 31,
|
||||||||
(in thousands, except share and per share data)
|
2021
|
2020
|
||||||
INTEREST INCOME:
|
||||||||
Interest and fees on loans
|
$
|
16,694
|
$
|
13,638
|
||||
Interest-bearing deposits with banks
|
106
|
95
|
||||||
Investment securities:
|
||||||||
Taxable
|
850
|
1,107
|
||||||
Nontaxable
|
544
|
389
|
||||||
Dividends
|
101
|
110
|
||||||
TOTAL INTEREST INCOME
|
18,295
|
15,339
|
||||||
INTEREST EXPENSE:
|
||||||||
Deposits
|
1,598
|
1,987
|
||||||
Borrowed funds
|
256
|
462
|
||||||
TOTAL INTEREST EXPENSE
|
1,854
|
2,449
|
||||||
NET INTEREST INCOME
|
16,441
|
12,890
|
||||||
Provision for loan losses
|
650
|
400
|
||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
15,791
|
12,490
|
||||||
NON-INTEREST INCOME:
|
||||||||
Service charges
|
1,106
|
1,081
|
||||||
Trust
|
307
|
198
|
||||||
Brokerage and insurance
|
376
|
340
|
||||||
Gains on loans sold
|
503
|
167
|
||||||
Equity security gains (losses), net
|
187
|
(254
|
)
|
|||||
Available for sale security gains, net
|
50
|
-
|
||||||
Earnings on bank owned life insurance
|
1,315
|
156
|
||||||
Other
|
391
|
163
|
||||||
TOTAL NON-INTEREST INCOME
|
4,235
|
1,851
|
||||||
NON-INTEREST EXPENSES:
|
||||||||
Salaries and employee benefits
|
6,263
|
5,414
|
||||||
Occupancy
|
783
|
526
|
||||||
Furniture and equipment
|
143
|
131
|
||||||
Professional fees
|
448
|
325
|
||||||
FDIC insurance
|
129
|
71
|
||||||
Pennsylvania shares tax
|
339
|
275
|
||||||
Amortization of intangibles
|
49
|
50
|
||||||
Merger and acquisition
|
-
|
376
|
||||||
Software expenses
|
313
|
247
|
||||||
ORE expenses
|
86
|
32
|
||||||
Other
|
1,394
|
1,474
|
||||||
TOTAL NON-INTEREST EXPENSES
|
9,947
|
8,921
|
||||||
Income before provision for income taxes
|
10,079
|
5,420
|
||||||
Provision for income taxes
|
1,616
|
889
|
||||||
NET INCOME
|
$
|
8,463
|
$
|
4,531
|
||||
PER COMMON SHARE DATA:
|
||||||||
Net Income - Basic
|
$
|
2.16
|
$
|
1.27
|
||||
Net Income - Diluted
|
$
|
2.16
|
$
|
1.27
|
||||
Cash Dividends Paid
|
$
|
0.465
|
$
|
0.549
|
||||
Number of shares used in computation - basic
|
3,909,887
|
3,553,818
|
||||||
Number of shares used in computation - diluted
|
3,909,887
|
3,553,818
|
Three Months Ended
March 31,
|
||||||||
(in thousands)
|
2021
|
2020
|
||||||
Net income
|
$
|
8,463
|
$
|
4,531
|
||||
Other comprehensive income (loss):
|
||||||||
Change in unrealized gains (losses) on available for sale securities
|
(4,094
|
)
|
4,334
|
|||||
Income tax effect
|
859
|
(910
|
)
|
|||||
Change in unrecognized pension cost
|
91
|
156
|
||||||
Income tax effect
|
(19
|
)
|
(33
|
)
|
||||
Change in unrealized loss on interest rate swaps
|
2,047
|
-
|
||||||
Income tax effect
|
(430
|
)
|
-
|
|||||
Less: Reclassification adjustment for investment security gains included in net income
|
(50
|
)
|
-
|
|||||
Income tax effect
|
11
|
-
|
||||||
Other comprehensive income (loss), net of tax
|
(1,585
|
)
|
3,547
|
|||||
Comprehensive income
|
$
|
6,878
|
$
|
8,078
|
Common Stock
|
Additional
|
Accumulated
Other
|
||||||||||||||||||||||||||
(in thousands, except share data)
|
Shares
|
Amount
|
Paid-in
Capital
|
Retained
Earnings
|
Comprehensive
Income (Loss) |
Treasury
Stock
|
Total
|
|||||||||||||||||||||
Balance, December 31, 2020
|
4,350,342
|
$
|
4,350
|
$
|
75,908
|
$
|
126,627
|
$
|
2,587
|
$
|
(15,213
|
)
|
$
|
194,259
|
||||||||||||||
Net income
|
8,463
|
8,463
|
||||||||||||||||||||||||||
Net other comprehensive (loss)
|
(1,585
|
)
|
(1,585
|
)
|
||||||||||||||||||||||||
Purchase of treasury stock (9,202shares)
|
(513
|
)
|
(513
|
)
|
||||||||||||||||||||||||
Restricted stock, executive and Board of Director awards (6,651shares)
|
(2
|
)
|
(2
|
)
|
||||||||||||||||||||||||
Restricted stock vesting
|
5
|
5
|
||||||||||||||||||||||||||
Forfeited restricted stock
|
(3
|
)
|
3
|
-
|
||||||||||||||||||||||||
Cash dividends, $0.465per share
|
(1,820
|
)
|
(1,820
|
)
|
||||||||||||||||||||||||
Balance, March 31, 2021
|
4,350,342
|
$
|
4,350
|
$
|
75,908
|
$
|
133,270
|
$
|
1,002
|
$
|
(15,723
|
)
|
$
|
198,807
|
||||||||||||||
Balance, December 31, 2019
|
3,938,668
|
$
|
3,939
|
$
|
55,089
|
$
|
110,800
|
$
|
(629
|
)
|
$
|
(14,425
|
)
|
$
|
154,774
|
|||||||||||||
Net income
|
4,531
|
4,531
|
||||||||||||||||||||||||||
Net other comprehensive income
|
3,547
|
3,547
|
||||||||||||||||||||||||||
Purchase of treasury stock (23,412shares)
|
(1,279
|
)
|
(1,279
|
)
|
||||||||||||||||||||||||
Restricted stock, executive, and Board of Director awards
|
1
|
12
|
13
|
|||||||||||||||||||||||||
Restricted stock vesting
|
40
|
40
|
||||||||||||||||||||||||||
Cash dividend reinvestment paid from treasury stock
|
(1
|
)
|
-
|
255
|
254
|
|||||||||||||||||||||||
Cash dividends, $0.549per share
|
(1,957
|
)
|
(1,957
|
)
|
||||||||||||||||||||||||
Balance, March 31, 2020
|
3,938,668
|
$
|
3,939
|
$
|
55,129
|
$
|
113,374
|
$
|
2,918
|
$
|
(15,437
|
)
|
$
|
159,923
|
Three Months Ended
March 31,
|
||||||||
(in thousands)
|
2021
|
2020
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
8,463
|
$
|
4,531
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for loan losses
|
650
|
400
|
||||||
Depreciation and amortization
|
286
|
247
|
||||||
Amortization and accretion of loans and other assets
|
(1,344
|
)
|
(97
|
)
|
||||
Amortization and accretion of investment securities
|
503
|
120
|
||||||
Deferred income taxes
|
74
|
(284
|
)
|
|||||
Investment securities losses (gains), net
|
(237
|
)
|
254
|
|||||
Earnings on bank owned life insurance
|
(1,315
|
)
|
(156
|
)
|
||||
Originations of loans held for sale
|
(14,206
|
)
|
(7,043
|
)
|
||||
Proceeds from sales of loans held for sale
|
19,253
|
5,973
|
||||||
Realized gains on loans sold
|
(503
|
)
|
(167
|
)
|
||||
Decrease (increase) in accrued interest receivable
|
426
|
(32
|
)
|
|||||
Decrease in accrued interest payable
|
(104
|
)
|
(182
|
)
|
||||
Other, net
|
2,019
|
1,169
|
||||||
Net cash provided by operating activities
|
13,965
|
4,733
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Available-for-sale securities:
|
||||||||
Proceeds from sales
|
5,045
|
-
|
||||||
Proceeds from maturity and principal repayments
|
17,826
|
29,045
|
||||||
Purchase of securities
|
(54,248
|
)
|
(41,915
|
)
|
||||
Purchase of equity securities
|
-
|
(202
|
)
|
|||||
Purchase of interest bearing time deposits with other banks
|
-
|
(250
|
)
|
|||||
Proceeds from life insurance death benefit
|
3,714
|
-
|
||||||
Proceeds from matured interest bearing time deposits with other banks
|
249
|
-
|
||||||
Proceeds from redemption of regulatory stock
|
1,179
|
3,300
|
||||||
Purchase of regulatory stock
|
(1,013
|
)
|
(2,798
|
)
|
||||
Net decrease in loans
|
2,461
|
22,003
|
||||||
Purchase of premises and equipment
|
(785
|
)
|
(507
|
)
|
||||
Proceeds from sale of foreclosed assets held for sale
|
116
|
350
|
||||||
Net cash (used in) provided by investing activities
|
(25,456
|
)
|
9,026
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net increase in deposits
|
98,612
|
(5,968
|
)
|
|||||
Proceeds from long-term borrowings
|
-
|
5,000
|
||||||
Repayments of long-term borrowings
|
(2,000
|
)
|
-
|
|||||
Net decrease in short-term borrowed funds
|
(667
|
)
|
(6,554
|
)
|
||||
Purchase of treasury and restricted stock
|
(513
|
)
|
(1,279
|
)
|
||||
Dividends paid
|
(1,820
|
)
|
(1,957
|
)
|
||||
Net cash provided by (used in) financing activities
|
93,612
|
(10,758
|
)
|
|||||
Net increase in cash and cash equivalents
|
82,121
|
3,001
|
||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
68,707
|
18,520
|
||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
150,828
|
$
|
21,521
|
||||
Supplemental Disclosures of Cash Flow Information:
|
||||||||
Interest paid
|
$
|
1,958
|
$
|
2,631
|
||||
Income taxes paid
|
$
|
-
|
$
|
-
|
||||
Right of use asset and liability
|
$
|
211
|
$
|
-
|
• |
Service charges on deposit accounts - The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. All of these fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction.
|
• |
Trust fees - Typical contracts for trust services are based on a fixed percentage of the assets earned ratably over a defined period and billed on a monthly basis. Fees charged to customers' accounts are recognized as revenue over the period during which the Company fulfills its performance obligation under the contract (i.e., holding client asset in a managed fiduciary trust account). For these accounts, the performance obligation of the Company is typically satisfied by holding and managing the customer's assets over time. Other fees related to specific customer requests are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time, upon completion of the requested service/transaction.
|
• |
Gains and losses on sale of other real estate owned - Gains and losses are recognized at the completion of the property sale when the buyer obtains control of the real estate and all of the performance obligations of the Company have been satisfied. Evidence of the buyer obtaining control of the asset include transfer of the property title, physical possession of the asset, and the buyer obtaining control of the risks and rewards related to the asset. In situations where the Company agrees to provide financing to facilitate the sale, additional analysis is performed to ensure that the contract for sale identifies the buyer and seller, the asset to be transferred, payment terms, and that the contract has a true commercial substance and that collection of amounts due from the buyer are reasonable. In situations where financing terms are not reflective of current market terms, the transaction price is discounted impacting the gain/loss and the carrying value of the asset.
|
• |
Brokerage and insurance - Fees includes commissions from the sales of investments and insurance products recognized on a trade date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Additional fees are based on a percentage of the market value of customer accounts and billed on a monthly or quarterly basis. The Company's performance obligation under the contracts with certain customers is generally satisfied through the passage of time as the Company monitors and manages the assets in the customer's portfolio and is not dependent on certain return or performance level of the customer's portfolio. Fees for these services are billed monthly and are recorded as revenue at the end of the month for which the wealth management service has been performed. Other performance obligations (such as the delivery of account statements to customers) are generally considered immaterial to the overall transaction price.
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
Revenue stream
|
2021
|
2020
|
||||||
Service charges on deposit accounts
|
||||||||
Overdraft fees
|
$
|
258
|
$
|
359
|
||||
Statement fees
|
56
|
56
|
||||||
Interchange revenue
|
639
|
522
|
||||||
ATM income
|
98
|
83
|
||||||
Other service charges
|
55
|
61
|
||||||
Total Service Charges
|
1,106
|
1,081
|
||||||
Trust
|
307
|
198
|
||||||
Brokerage and insurance
|
376
|
340
|
||||||
Other
|
109
|
107
|
||||||
Total
|
$
|
1,898
|
$
|
1,726
|
Three months ended
|
||||||||
March 31,
|
||||||||
2021
|
2020
|
|||||||
Net income applicable to common stock
|
$
|
8,463
|
$
|
4,531
|
||||
Basic earnings per share computation
|
||||||||
Weighted average common shares outstanding
|
3,909,887
|
3,553,818
|
||||||
Earnings per share - basic
|
$
|
2.16
|
$
|
1.27
|
||||
Diluted earnings per share computation
|
||||||||
Weighted average common shares outstanding for basic earnings per share
|
3,909,887
|
3,553,818
|
||||||
Add: Dilutive effects of restricted stock
|
-
|
-
|
||||||
Weighted average common shares outstanding for dilutive earnings per share
|
3,909,887
|
3,553,818
|
||||||
Earnings per share - diluted
|
$
|
2.16
|
$
|
1.27
|
March 31, 2021
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Available-for-sale securities:
|
||||||||||||||||
U.S. agency securities
|
$
|
78,375
|
$
|
2,020
|
$
|
(686
|
)
|
$
|
79,709
|
|||||||
U.S. treasury securities
|
39,995
|
458
|
(91
|
)
|
40,362
|
|||||||||||
Obligations of state and political subdivisions
|
101,007
|
1,771
|
(433
|
)
|
102,345
|
|||||||||||
Corporate obligations
|
6,902
|
86
|
(5
|
)
|
6,983
|
|||||||||||
Mortgage-backed securities in government sponsored entities
|
92,165
|
1,162
|
(759
|
)
|
92,568
|
|||||||||||
Total available-for-sale securities
|
$
|
318,444
|
$
|
5,497
|
$
|
(1,974
|
)
|
$
|
321,967
|
|||||||
December 31, 2020
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Available-for-sale securities:
|
||||||||||||||||
U.S. agency securities
|
$
|
79,065
|
$
|
2,403
|
$
|
(52
|
)
|
$
|
81,416
|
|||||||
U.S. treasury securities
|
27,442
|
601
|
-
|
28,043
|
||||||||||||
Obligations of state and political subdivisions
|
100,089
|
2,938
|
(55
|
)
|
102,972
|
|||||||||||
Corporate obligations
|
6,413
|
96
|
-
|
6,509
|
||||||||||||
Mortgage-backed securities in government sponsored entities
|
74,512
|
1,874
|
(137
|
)
|
76,249
|
|||||||||||
Total available-for-sale securities
|
$
|
287,521
|
$
|
7,912
|
$
|
(244
|
)
|
$
|
295,189
|
Less than Twelve Months
|
Twelve Months or Greater
|
Total
|
||||||||||||||||||||||
March 31, 2021
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
||||||||||||||||||
U.S. agency securities
|
$
|
27,104
|
$
|
(686
|
)
|
$
|
-
|
$
|
-
|
$
|
27,104
|
$
|
(686
|
)
|
||||||||||
U.S. treasury securities
|
12,444
|
(91
|
)
|
-
|
-
|
12,444
|
(91
|
)
|
||||||||||||||||
Obligations of state and political subdivisions
|
29,716
|
(346
|
)
|
3,361
|
(87
|
)
|
33,077
|
(433
|
)
|
|||||||||||||||
Corporate obligations
|
495
|
(5
|
)
|
-
|
-
|
495
|
(5
|
)
|
||||||||||||||||
Mortgage-backed securities in government sponsored entities
|
34,119
|
(720
|
)
|
5,550
|
(39
|
)
|
39,669
|
(759
|
)
|
|||||||||||||||
Total securities
|
$
|
103,878
|
$
|
(1,848
|
)
|
$
|
8,911
|
$
|
(126
|
)
|
$
|
112,789
|
$
|
(1,974
|
)
|
|||||||||
December 31, 2020
|
||||||||||||||||||||||||
U.S. agency securities
|
$
|
13,720
|
$
|
(52
|
)
|
$
|
-
|
$
|
-
|
$
|
13,720
|
$
|
(52
|
)
|
||||||||||
U.S. treasury securities
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Obligations of states and political subdivisions
|
5,407
|
(55
|
)
|
-
|
-
|
5,407
|
(55
|
)
|
||||||||||||||||
Corporate obligations
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Mortgage-backed securities in government sponsored entities
|
14,600
|
(99
|
)
|
5,633
|
(38
|
)
|
20,233
|
(137
|
)
|
|||||||||||||||
Total securities
|
$
|
33,727
|
$
|
(206
|
)
|
$
|
5,633
|
$
|
(38
|
)
|
$
|
39,360
|
$
|
(244
|
)
|
Three Months Ended
|
||||||||
March 31
|
||||||||
2021
|
2020
|
|||||||
Gross gains on available for sale securities
|
$
|
50
|
$
|
-
|
||||
Gross losses on available for sale securities
|
-
|
-
|
||||||
Net gains
|
$
|
50
|
$
|
-
|
Three Months Ended
March 31,
|
||||||||
Equity securities
|
2021
|
2020
|
||||||
Net gains (losses) recognized in equity securities during the period
|
$
|
187
|
$
|
(254
|
)
|
|||
Less: Net gains realized on the sale of equity securities during the period
|
-
|
-
|
||||||
Net unrealized gains (losses)
|
$
|
187
|
$
|
(254
|
)
|
Amortized
Cost
|
Fair Value
|
|||||||
Available-for-sale debt securities:
|
||||||||
Due in one year or less
|
$
|
19,997
|
$
|
20,279
|
||||
Due after one year through five years
|
68,523
|
70,801
|
||||||
Due after five years through ten years
|
82,046
|
82,528
|
||||||
Due after ten years
|
147,878
|
148,359
|
||||||
Total
|
$
|
318,444
|
$
|
321,967
|
March 31, 2021
|
Total Loans
|
Individually evaluated
for impairment
|
Loans acquired with
deteriorated credit quality
|
Collectively evaluated
for impairment
|
||||||||||||
Real estate loans:
|
||||||||||||||||
Residential
|
$
|
203,273
|
$
|
969
|
$
|
20
|
$
|
202,284
|
||||||||
Commercial
|
605,547
|
9,321
|
2,911
|
593,315
|
||||||||||||
Agricultural
|
315,313
|
4,561
|
1,664
|
309,088
|
||||||||||||
Construction
|
42,651
|
-
|
-
|
42,651
|
||||||||||||
Consumer
|
26,181
|
1
|
-
|
26,180
|
||||||||||||
Other commercial loans
|
109,168
|
1,127
|
132
|
107,909
|
||||||||||||
Other agricultural loans
|
41,378
|
1,118
|
-
|
40,260
|
||||||||||||
State and political subdivision loans
|
60,890
|
-
|
-
|
60,890
|
||||||||||||
Total
|
1,404,401
|
17,097
|
4,727
|
1,382,577
|
||||||||||||
Allowance for loan losses
|
16,560
|
485
|
-
|
16,075
|
||||||||||||
Net loans
|
$
|
1,387,841
|
$
|
16,612
|
$
|
4,727
|
$
|
1,366,502
|
December 31, 2020
|
Total Loans
|
Individually evaluated
for impairment
|
Loans acquired with
deteriorated credit quality
|
Collectively evaluated
for impairment
|
||||||||||||
Real estate loans:
|
||||||||||||||||
Residential
|
$
|
201,911
|
$
|
990
|
$
|
20
|
$
|
200,901
|
||||||||
Commercial
|
596,255
|
9,183
|
2,937
|
584,135
|
||||||||||||
Agricultural
|
315,158
|
4,645
|
1,686
|
308,827
|
||||||||||||
Construction
|
35,404
|
-
|
-
|
35,404
|
||||||||||||
Consumer
|
30,277
|
2
|
-
|
30,275
|
||||||||||||
Other commercial loans
|
114,169
|
1,335
|
232
|
112,602
|
||||||||||||
Other agricultural loans
|
48,779
|
1,122
|
-
|
47,657
|
||||||||||||
State and political subdivision loans
|
63,328
|
-
|
-
|
63,328
|
||||||||||||
Total
|
1,405,281
|
17,277
|
4,875
|
1,383,129
|
||||||||||||
Allowance for loan losses
|
15,815
|
510
|
-
|
15,305
|
||||||||||||
Net loans
|
$
|
1,389,466
|
$
|
16,767
|
$
|
4,875
|
$
|
1,367,824
|
April 17, 2020
|
||||
Contractually required principal and interest at acquisition
|
$
|
8,801
|
||
Non-accretable discount
|
(2,966
|
)
|
||
Expected cash flows
|
5,835
|
|||
Accretable discount
|
$
|
(966
|
)
|
|
Estimated fair value
|
$
|
4,869
|
Three months ended
March 31
|
||||||||
2021
|
2020
|
|||||||
Balance at beginning of period
|
$
|
788
|
$
|
89
|
||||
Accretion
|
(100
|
)
|
(1
|
)
|
||||
Balance at end of period
|
$
|
688
|
$
|
88
|
March 31, 2021
|
December 31, 2020
|
|||||||
Outstanding balance
|
$
|
8,747
|
$
|
8,958
|
||||
Carrying amount
|
4,727
|
4,875
|
March 31, 2021
|
Unpaid
Principal
Balance
|
Recorded
Investment
With No
Allowance
|
Recorded
Investment
With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
|||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Mortgages
|
$
|
1,059
|
$
|
724
|
$
|
122
|
$
|
846
|
$
|
9
|
||||||||||
Home Equity
|
147
|
69
|
54
|
123
|
8
|
|||||||||||||||
Commercial
|
10,100
|
8,408
|
913
|
9,321
|
101
|
|||||||||||||||
Agricultural
|
4,791
|
2,777
|
1,784
|
4,561
|
12
|
|||||||||||||||
Consumer
|
1
|
1
|
-
|
1
|
-
|
|||||||||||||||
Other commercial loans
|
1,793
|
889
|
238
|
1,127
|
170
|
|||||||||||||||
Other agricultural loans
|
1,301
|
17
|
1,101
|
1,118
|
185
|
|||||||||||||||
Total
|
$
|
19,192
|
$
|
12,885
|
$
|
4,212
|
$
|
17,097
|
$
|
485
|
December 31, 2020
|
Unpaid
Principal
Balance
|
Recorded
Investment
With No
Allowance
|
Recorded
Investment
With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
|||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Mortgages
|
$
|
1,070
|
$
|
740
|
$
|
123
|
$
|
863
|
$
|
9
|
||||||||||
Home Equity
|
150
|
70
|
57
|
127
|
9
|
|||||||||||||||
Commercial
|
9,847
|
8,323
|
860
|
9,183
|
95
|
|||||||||||||||
Agricultural
|
4,811
|
2,799
|
1,846
|
4,645
|
83
|
|||||||||||||||
Consumer
|
2
|
2
|
-
|
2
|
-
|
|||||||||||||||
Other commercial loans
|
1,908
|
1,094
|
241
|
1,335
|
170
|
|||||||||||||||
Other agricultural loans
|
1,262
|
19
|
1,103
|
1,122
|
144
|
|||||||||||||||
Total
|
$
|
19,050
|
$
|
13,047
|
$
|
4,230
|
$
|
17,277
|
$
|
510
|
For the Three Months Ended
|
||||||||||||||||||||||||
March 31, 2021
|
March 31, 2020
|
|||||||||||||||||||||||
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Interest
Income
Recognized
Cash Basis
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Interest
Income
Recognized
Cash Basis
|
|||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Mortgages
|
$
|
851
|
$
|
5
|
$
|
-
|
$
|
1,031
|
$
|
5
|
$
|
-
|
||||||||||||
Home Equity
|
124
|
1
|
-
|
146
|
2
|
-
|
||||||||||||||||||
Commercial
|
9,238
|
67
|
7
|
11,486
|
104
|
2
|
||||||||||||||||||
Agricultural
|
4,590
|
22
|
-
|
3,777
|
21
|
-
|
||||||||||||||||||
Consumer
|
1
|
-
|
-
|
3
|
-
|
-
|
||||||||||||||||||
Other commercial loans
|
1,121
|
1
|
-
|
1,839
|
1
|
-
|
||||||||||||||||||
Other agricultural loans
|
1,103
|
2
|
-
|
1,276
|
2
|
-
|
||||||||||||||||||
Total
|
$
|
17,028
|
$
|
98
|
$
|
7
|
$
|
19,558
|
$
|
135
|
$
|
2
|
• |
Pass (Grades 1-5) - These loans are to customers with credit quality ranging from an acceptable to very high quality and are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.
|
• |
Special Mention (Grade 6) - This loan grade is in accordance with regulatory guidance and includes loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.
|
• |
Substandard (Grade 7) - This loan grade is in accordance with regulatory guidance and includes loans that have a well-defined weakness based on objective evidence and be characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
|
• |
Doubtful (Grade 8) - This loan grade is in accordance with regulatory guidance and includes loans that have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.
|
• |
Loss (Grade 9) - This loan grade is in accordance with regulatory guidance and includes loans that are considered uncollectible, or of such value that continuance as an asset is not warranted.
|
March 31, 2021
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Loss
|
Ending
Balance
|
||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Commercial
|
$
|
567,989
|
$
|
28,936
|
$
|
8,622
|
$
|
-
|
$
|
-
|
$
|
605,547
|
||||||||||||
Agricultural
|
288,128
|
15,603
|
11,582
|
-
|
-
|
315,313
|
||||||||||||||||||
Construction
|
42,651
|
-
|
-
|
-
|
-
|
42,651
|
||||||||||||||||||
Other commercial loans
|
102,276
|
3,134
|
3,675
|
83
|
-
|
109,168
|
||||||||||||||||||
Other agricultural loans
|
38,114
|
1,849
|
1,415
|
-
|
-
|
41,378
|
||||||||||||||||||
State and political subdivision loans
|
56,245
|
4,372
|
273
|
-
|
-
|
60,890
|
||||||||||||||||||
Total
|
$
|
1,095,403
|
$
|
53,894
|
$
|
25,567
|
$
|
83
|
$
|
-
|
$
|
1,174,947
|
December 31, 2020
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Commercial
|
$
|
563,121
|
$
|
24,329
|
$
|
8,805
|
$
|
-
|
$
|
-
|
$
|
596,255
|
||||||||||||
Agricultural
|
289,216
|
14,307
|
11,635
|
-
|
-
|
315,158
|
||||||||||||||||||
Construction
|
35,404
|
-
|
-
|
-
|
-
|
35,404
|
||||||||||||||||||
Other commercial loans
|
106,604
|
3,808
|
3,672
|
85
|
-
|
114,169
|
||||||||||||||||||
Other agricultural loans
|
45,758
|
1,431
|
1,590
|
-
|
-
|
48,779
|
||||||||||||||||||
State and political subdivision loans
|
58,649
|
4,372
|
307
|
-
|
-
|
63,328
|
||||||||||||||||||
Total
|
$
|
1,098,752
|
$
|
48,247
|
$
|
26,009
|
$
|
85
|
$
|
-
|
$
|
1,173,093
|
March 31, 2021
|
Performing
|
Non-performing
|
PCI
|
Total
|
||||||||||||
Real estate loans:
|
||||||||||||||||
Mortgages
|
$
|
148,560
|
$
|
1,023
|
$
|
20
|
$
|
149,603
|
||||||||
Home Equity
|
53,648
|
22
|
-
|
53,670
|
||||||||||||
Consumer
|
26,181
|
-
|
-
|
26,181
|
||||||||||||
Total
|
$
|
228,389
|
$
|
1,045
|
$
|
20
|
$
|
229,454
|
||||||||
December 31, 2020
|
Performing
|
Non-performing
|
PCI
|
Total
|
||||||||||||
Real estate loans:
|
||||||||||||||||
Mortgages
|
$
|
145,843
|
$
|
1,039
|
$
|
20
|
$
|
146,902
|
||||||||
Home Equity
|
54,961
|
48
|
-
|
55,009
|
||||||||||||
Consumer
|
30,247
|
30
|
-
|
30,277
|
||||||||||||
Total
|
$
|
231,051
|
$
|
1,117
|
$
|
20
|
$
|
232,188
|
March 31, 2021
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90 Days
Or Greater
|
Total
Past
Due
|
Current
|
PCI
|
Total
Loan
Receivables
|
90 Days or
Greater
and
Accruing
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||
Mortgages
|
$
|
288
|
$
|
29
|
$
|
517
|
$
|
834
|
$
|
148,749
|
$
|
20
|
$
|
149,603
|
$
|
251
|
||||||||||||||||
Home Equity
|
49
|
11
|
8
|
68
|
53,602
|
-
|
53,670
|
-
|
||||||||||||||||||||||||
Commercial
|
848
|
190
|
1,440
|
2,478
|
600,158
|
2,911
|
605,547
|
-
|
||||||||||||||||||||||||
Agricultural
|
356
|
25
|
1,330
|
1,711
|
311,938
|
1,664
|
315,313
|
150
|
||||||||||||||||||||||||
Construction
|
-
|
-
|
-
|
-
|
42,651
|
-
|
42,651
|
-
|
||||||||||||||||||||||||
Consumer
|
149
|
4
|
-
|
153
|
26,028
|
-
|
26,181
|
-
|
||||||||||||||||||||||||
Other commercial loans
|
919
|
-
|
160
|
1,079
|
107,957
|
132
|
109,168
|
27
|
||||||||||||||||||||||||
Other agricultural loans
|
224
|
-
|
50
|
274
|
41,104
|
-
|
41,378
|
50
|
||||||||||||||||||||||||
State and political subdivision loans
|
-
|
-
|
-
|
-
|
60,890
|
-
|
60,890
|
-
|
||||||||||||||||||||||||
Total
|
$
|
2,833
|
$
|
259
|
$
|
3,505
|
$
|
6,597
|
1,393,077
|
$
|
4,727
|
$
|
1,404,401
|
$
|
478
|
|||||||||||||||||
Loans considered non-accrual
|
$
|
539
|
171
|
$
|
3,027
|
$
|
3,737
|
$
|
6,943
|
$
|
-
|
$
|
10,680
|
|||||||||||||||||||
Loans still accruing
|
2,294
|
88
|
478
|
2,860
|
1,386,134
|
4,727
|
1,393,721
|
|||||||||||||||||||||||||
Total
|
$
|
2,833
|
$
|
259
|
$
|
3,505
|
$
|
6,597
|
$
|
1,393,077
|
$
|
4,727
|
$
|
1,404,401
|
December 31, 2020
|
||||||||||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||
Mortgages
|
$
|
864
|
$
|
414
|
$
|
518
|
$
|
1,796
|
$
|
145,086
|
$
|
20
|
$
|
146,902
|
$
|
252
|
||||||||||||||||
Home Equity
|
152
|
62
|
34
|
248
|
54,761
|
-
|
55,009
|
23
|
||||||||||||||||||||||||
Commercial
|
836
|
439
|
1,822
|
3,097
|
590,221
|
2,937
|
596,255
|
70
|
||||||||||||||||||||||||
Agricultural
|
2,283
|
-
|
1,329
|
3,612
|
309,860
|
1,686
|
315,158
|
150
|
||||||||||||||||||||||||
Construction
|
-
|
-
|
-
|
-
|
35,404
|
-
|
35,404
|
-
|
||||||||||||||||||||||||
Consumer
|
147
|
9
|
30
|
186
|
30,091
|
-
|
30,277
|
30
|
||||||||||||||||||||||||
Other commercial loans
|
930
|
-
|
133
|
1,063
|
112,874
|
232
|
114,169
|
-
|
||||||||||||||||||||||||
Other agricultural loans
|
1,044
|
-
|
-
|
1,044
|
47,735
|
-
|
48,779
|
-
|
||||||||||||||||||||||||
State and political subdivision loans
|
-
|
-
|
-
|
-
|
63,328
|
-
|
63,328
|
-
|
||||||||||||||||||||||||
Total
|
$
|
6,256
|
$
|
924
|
$
|
3,866
|
$
|
11,046
|
$
|
1,389,360
|
$
|
4,875
|
$
|
1,405,281
|
$
|
525
|
||||||||||||||||
Loans considered non-accrual
|
$
|
3,032
|
$
|
28
|
$
|
3,341
|
$
|
6,401
|
$
|
4,331
|
$
|
-
|
$
|
10,732
|
||||||||||||||||||
Loans still accruing
|
3,224
|
896
|
525
|
4,645
|
1,385,029
|
4,875
|
1,394,549
|
|||||||||||||||||||||||||
Total
|
$
|
6,256
|
$
|
924
|
$
|
3,866
|
$
|
11,046
|
$
|
1,389,360
|
$
|
4,875
|
$
|
1,405,281
|
March 31, 2021
|
December 31, 2020
|
|||||||
Real estate loans:
|
||||||||
Mortgages
|
$
|
772
|
$
|
787
|
||||
Home Equity
|
22
|
25
|
||||||
Commercial
|
4,853
|
4,529
|
||||||
Agricultural
|
3,064
|
3,133
|
||||||
Other commercial loans
|
1,050
|
1,284
|
||||||
Other agricultural loans
|
919
|
974
|
||||||
$
|
10,680
|
$
|
10,732
|
Number of
loans
|
Balance as of December 31, 2020
|
Number of loans
|
Balance as of March 31, 2021
|
Principal and Interest Deferral
|
Principal Deferral
|
% of loans as of March 31, 2021
|
||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||
Mortgages
|
1
|
$
|
209
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
0.00
|
%
|
||||||||||||||||
Home Equity
|
1
|
49
|
-
|
-
|
-
|
-
|
0.00
|
%
|
||||||||||||||||||||
Commercial
|
12
|
26,039
|
4
|
13,864
|
6,205
|
7,659
|
2.29
|
%
|
||||||||||||||||||||
Agricultural
|
3
|
181
|
-
|
-
|
-
|
-
|
0.00
|
%
|
||||||||||||||||||||
Construction
|
-
|
-
|
-
|
-
|
-
|
-
|
0.00
|
%
|
||||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
0.00
|
%
|
||||||||||||||||||||
Other commercial loans
|
2
|
249
|
-
|
-
|
-
|
-
|
0.00
|
%
|
||||||||||||||||||||
Other agricultural loans
|
-
|
-
|
-
|
-
|
-
|
-
|
0.00
|
%
|
||||||||||||||||||||
Total
|
19
|
$
|
26,727
|
4
|
$
|
13,864
|
$
|
6,205
|
$
|
7,659
|
0.99
|
%
|
For the Three Months Ended March 31, 2021
|
||||||||||||||||||||||||
Number of contracts
|
Pre-modification Outstanding
Recorded Investment
|
Post-Modification
Outstanding Recorded
Investment
|
||||||||||||||||||||||
Interest
Modification
|
Term
Modification
|
Interest
Modification
|
Term
Modification
|
Interest
Modification
|
Term
Modification
|
|||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Commercial
|
-
|
2
|
$
|
-
|
$
|
290
|
$
|
-
|
$
|
290
|
||||||||||||||
Total
|
-
|
2
|
$
|
-
|
$
|
290
|
$
|
-
|
$
|
290
|
For the Three Months Ended March 31, 2020
|
||||||||||||||||||||||||
Number of contracts
|
Pre-modification Outstanding
Recorded Investment
|
Post-Modification
Outstanding Recorded
Investment
|
||||||||||||||||||||||
Interest
Modification
|
Term
Modification
|
Interest
Modification
|
Term
Modification
|
Interest
Modification
|
Term
Modification
|
|||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Agricultural
|
-
|
1
|
$
|
-
|
$
|
150
|
$
|
-
|
$
|
150
|
||||||||||||||
Total
|
-
|
1
|
$
|
-
|
$
|
150
|
$
|
-
|
$
|
150
|
March 31, 2021
|
December 31, 2020
|
|||||||||||||||||||||||
Individually evaluated for
impairment
|
Collectively evaluated for
impairment
|
Total
|
Individually evaluated for
impairment
|
Collectively evaluated for
impairment
|
Total
|
|||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Residential
|
$
|
17
|
$
|
1,150
|
$
|
1,167
|
$
|
18
|
$
|
1,156
|
$
|
1,174
|
||||||||||||
Commercial
|
101
|
6,582
|
6,683
|
95
|
6,121
|
6,216
|
||||||||||||||||||
Agricultural
|
12
|
4,905
|
4,917
|
83
|
4,870
|
4,953
|
||||||||||||||||||
Construction
|
-
|
151
|
151
|
-
|
122
|
122
|
||||||||||||||||||
Consumer
|
-
|
237
|
237
|
-
|
321
|
321
|
||||||||||||||||||
Other commercial loans
|
170
|
1,334
|
1,504
|
170
|
1,056
|
1,226
|
||||||||||||||||||
Other agricultural loans
|
185
|
604
|
789
|
144
|
720
|
864
|
||||||||||||||||||
State and political subdivision loans
|
-
|
470
|
470
|
-
|
479
|
479
|
||||||||||||||||||
Unallocated
|
-
|
642
|
642
|
-
|
460
|
460
|
||||||||||||||||||
Total
|
$
|
485
|
$
|
16,075
|
$
|
16,560
|
$
|
510
|
$
|
15,305
|
$
|
15,815
|
For the three months ended March 31, 2021
|
||||||||||||||||||||
Balance at
December 31, 2020
|
Charge-offs
|
Recoveries
|
Provision
|
Balance at
March 31, 2021
|
||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Residential
|
$
|
1,174
|
$
|
-
|
$
|
-
|
$
|
(7
|
)
|
$
|
1,167
|
|||||||||
Commercial
|
6,216
|
-
|
89
|
378
|
6,683
|
|||||||||||||||
Agricultural
|
4,953
|
-
|
-
|
(36
|
)
|
4,917
|
||||||||||||||
Construction
|
122
|
-
|
-
|
29
|
151
|
|||||||||||||||
Consumer
|
321
|
(4
|
)
|
6
|
(86
|
)
|
237
|
|||||||||||||
Other commercial loans
|
1,226
|
-
|
4
|
274
|
1,504
|
|||||||||||||||
Other agricultural loans
|
864
|
-
|
-
|
(75
|
)
|
789
|
||||||||||||||
State and political subdivision loans
|
479
|
-
|
-
|
(9
|
)
|
470
|
||||||||||||||
Unallocated
|
460
|
-
|
-
|
182
|
642
|
|||||||||||||||
Total
|
$
|
15,815
|
$
|
(4
|
)
|
$
|
99
|
$
|
650
|
$
|
16,560
|
For the three months ended March 31, 2020
|
||||||||||||||||||||
Balance at
December 31, 2019
|
Charge-offs
|
Recoveries
|
Provision
|
Balance at
March 31, 2020
|
||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Residential
|
$
|
1,114
|
$
|
-
|
$
|
-
|
$
|
40
|
$
|
1,154
|
||||||||||
Commercial
|
4,549
|
(1
|
)
|
1
|
180
|
4,729
|
||||||||||||||
Agricultural
|
5,022
|
-
|
-
|
(144
|
)
|
4,878
|
||||||||||||||
Construction
|
43
|
-
|
-
|
13
|
56
|
|||||||||||||||
Consumer
|
112
|
(8
|
)
|
8
|
5
|
117
|
||||||||||||||
Other commercial loans
|
1,255
|
-
|
2
|
40
|
1,297
|
|||||||||||||||
Other agricultural loans
|
961
|
-
|
-
|
(126
|
)
|
835
|
||||||||||||||
State and political subdivision loans
|
536
|
-
|
-
|
22
|
558
|
|||||||||||||||
Unallocated
|
253
|
-
|
-
|
370
|
623
|
|||||||||||||||
Total
|
$
|
13,845
|
$
|
(9
|
)
|
$
|
11
|
$
|
400
|
$
|
14,247
|
• |
Level of and trends in delinquencies and impaired/classified loans
|
◾ |
Change in volume and severity of past due loans
|
◾ |
Volume of non-accrual loans
|
◾ |
Volume and severity of classified, adversely or graded loans;
|
• |
Level of and trends in charge-offs and recoveries;
|
• |
Trends in volume, terms and nature of the loan portfolio;
|
• |
Effects of any changes in risk selection and underwriting standards and any other changes in lending and recovery policies, procedures and practices;
|
• |
Changes in the quality of the Company's loan review system;
|
• |
Experience, ability and depth of lending management and other relevant staff;
|
• |
National, state, regional and local economic trends and business conditions
|
◾ |
General economic conditions
|
◾ |
Unemployment rates
|
◾ |
Inflation rate/ Consumer Price Index
|
◾ |
Changes in values of underlying collateral for collateral-dependent loans;
|
• |
Industry conditions including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses;
|
• |
Existence and effect of any credit concentrations, and changes in the level of such concentrations; and
|
• |
Any change in the level of board oversight.
|
March 31, 2021
|
December 31, 2020
|
|||||||||||||||||||||||
Gross carrying value
|
Accumulated
amortization
|
Net carrying value
|
Gross carrying value
|
Accumulated
amortization
|
Net carrying value
|
|||||||||||||||||||
Amortized intangible assets (1):
|
||||||||||||||||||||||||
MSRs
|
$
|
2,302
|
$
|
(1,203
|
)
|
$
|
1,099
|
$
|
2,153
|
$
|
(1,131
|
)
|
$
|
1,022
|
||||||||||
Core deposit intangibles
|
1,943
|
(1,346
|
)
|
597
|
1,943
|
(1,297
|
)
|
646
|
||||||||||||||||
Total amortized intangible assets
|
$
|
4,245
|
$
|
(2,549
|
)
|
$
|
1,696
|
$
|
4,096
|
$
|
(2,428
|
)
|
$
|
1,668
|
||||||||||
Unamortized intangible assets:
|
||||||||||||||||||||||||
Goodwill
|
$
|
31,376
|
$
|
31,376
|
MSRs
|
Core deposit intangibles
|
Total
|
||||||||||
Three months ended March 31, 2021(actual)
|
$
|
72
|
$
|
49
|
$
|
121
|
||||||
Three months ended March 31, 2020(actual)
|
48
|
50
|
98
|
|||||||||
Estimate for year ending December 31,
|
||||||||||||
Remaining 2021
|
219
|
143
|
362
|
|||||||||
2022
|
241
|
156
|
397
|
|||||||||
2023
|
190
|
121
|
311
|
|||||||||
2024
|
147
|
85
|
232
|
|||||||||
2025
|
110
|
50
|
160
|
|||||||||
Thereafter
|
192
|
42
|
234
|
|||||||||
Total
|
$
|
1,099
|
$
|
597
|
$
|
1,696
|
Three Months Ended
March 31,
|
|||||||||
2021
|
2020
|
Affected line item on the Consolidated Statement of Income
|
|||||||
Service cost
|
$
|
110
|
$
|
83
|
Salary and Employee Benefits
|
||||
Interest cost
|
82
|
87
|
Other Expenses
|
||||||
Expected return on plan assets
|
(252
|
)
|
(225
|
)
|
Other Expenses
|
||||
Net amortization and deferral
|
91
|
62
|
Other Expenses
|
||||||
Net periodic benefit cost
|
$
|
31
|
$
|
7
|
Three months
|
||||||||
Unvested
Shares
|
Weighted
Average
Market Price
|
|||||||
Outstanding, beginning of period
|
10,202
|
$
|
55.93
|
|||||
Granted
|
88
|
56.81
|
||||||
Forfeited
|
(60
|
)
|
(54.07
|
)
|
||||
Vested
|
(32
|
)
|
(58.24
|
)
|
||||
Outstanding, end of period
|
10,198
|
$
|
55.94
|
Three months ended March 31, 2021
|
||||||||||||||||
Unrealized gain (loss) on
available for sale
securities (a)
|
Defined Benefit Pension
Items (a)
|
Unrealized loss on interest rate swap (a)
|
Total
|
|||||||||||||
Balance as of December 31, 2020
|
$
|
6,058
|
$
|
(3,462
|
)
|
$
|
(9
|
)
|
$
|
2,587
|
||||||
Other comprehensive (loss) income before reclassifications (net of tax)
|
(3,235
|
)
|
-
|
1,617
|
(1,618
|
)
|
||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income (net of tax)
|
(39
|
)
|
72
|
-
|
33
|
|||||||||||
Net current period other comprehensive (loss) income
|
(3,274
|
)
|
72
|
1,617
|
(1,585
|
)
|
||||||||||
Balance as of March 31, 2021
|
$
|
2,784
|
$
|
(3,390
|
)
|
$
|
1,608
|
1,002
|
Three months ended March 31, 2020
|
||||||||||||||||
Unrealized gain (loss) on
available for sale
securities (a)
|
Defined Benefit Pension
Items (a)
|
Unrealized loss on interest rate swap (a)
|
Total
|
|||||||||||||
Balance as of December 31, 2019
|
$
|
2,290
|
$
|
(2,919
|
)
|
$
|
-
|
$
|
(629
|
)
|
||||||
Other comprehensive income (loss) before reclassifications (net of tax)
|
3,424
|
-
|
-
|
3,424
|
||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)
|
-
|
123
|
-
|
123
|
||||||||||||
Net current period other comprehensive income (loss)
|
3,424
|
123
|
-
|
3,547
|
||||||||||||
Balance as of March 31, 2020
|
$
|
5,714
|
$
|
(2,796
|
)
|
$
|
-
|
$
|
2,918
|
Details about accumulated other comprehensive income (loss)
|
Amount reclassified from
accumulated comprehensive
income (loss) (a)
|
Affected line item in the Consolidated Statement of Income
|
|||||||
Three Months Ended March 31,
|
|||||||||
2021
|
2020
|
||||||||
Unrealized gains and losses on available for sale securities
|
|||||||||
$
|
50
|
$
|
-
|
Available for sale securities gains, net
|
|||||
(11
|
)
|
-
|
Provision for income taxes
|
||||||
$
|
39
|
$
|
-
|
Net of tax
|
|||||
Defined benefit pension items
|
|||||||||
$
|
(91
|
)
|
$
|
(156
|
)
|
Other expenses
|
|||
19
|
33
|
Provision for income taxes
|
|||||||
$
|
(72
|
)
|
$
|
(123
|
)
|
Net of tax
|
|||
Total reclassifications
|
$
|
(33
|
)
|
$
|
(123
|
)
|
Level I: |
Quoted prices are available in active markets for identical assets or liabilities as of the reported date.
|
Level II: |
Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.
|
Level III: |
Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.
|
March 31, 2021
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Fair value measurements on a recurring basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Equity securities
|
$
|
2,118
|
$
|
-
|
$
|
-
|
$
|
2,118
|
||||||||
Available for sale securities:
|
||||||||||||||||
U.S. Agency securities
|
-
|
79,709
|
-
|
79,709
|
||||||||||||
U.S. Treasury securities
|
40,362
|
-
|
-
|
40,362
|
||||||||||||
Obligations of state and political subdivisions
|
-
|
102,345
|
-
|
102,345
|
||||||||||||
Corporate obligations
|
-
|
6,983
|
-
|
6,983
|
||||||||||||
Mortgage-backed securities in government sponsored entities
|
-
|
92,568
|
-
|
92,568
|
||||||||||||
Other Assets
|
||||||||||||||||
Derivative instruments
|
-
|
4,651
|
-
|
4,651
|
||||||||||||
Liabilities
|
||||||||||||||||
Derivative instruments
|
-
|
(2,615
|
)
|
-
|
(2,615
|
)
|
December 31, 2020
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Fair value measurements on a recurring basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Equity securities
|
$
|
1,931
|
$
|
-
|
$
|
-
|
$
|
1,931
|
||||||||
Available for sale securities:
|
||||||||||||||||
U.S. Agency securities
|
-
|
81,416
|
-
|
81,416
|
||||||||||||
U.S. Treasuries securities
|
28,043
|
-
|
-
|
28,043
|
||||||||||||
Obligations of state and political subdivisions
|
-
|
102,972
|
-
|
102,972
|
||||||||||||
Corporate obligations
|
-
|
6,509
|
-
|
6,509
|
||||||||||||
Mortgage-backed securities in government sponsored entities
|
-
|
76,249
|
-
|
76,249
|
||||||||||||
Other Assets
|
||||||||||||||||
Derivative instruments
|
-
|
1,111
|
-
|
1,111
|
||||||||||||
Liabilities
|
||||||||||||||||
Derivative instruments
|
-
|
(1,122
|
)
|
-
|
(1,122
|
)
|
March 31, 2021
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Impaired Loans
|
$
|
-
|
$
|
-
|
$
|
3,264
|
$
|
3,264
|
||||||||
Other real estate owned
|
-
|
-
|
1,527
|
1,527
|
||||||||||||
December 31, 2020
|
Level I
|
Level II
|
Level III
|
Total
|
||||||||||||
Impaired Loans
|
$
|
-
|
$
|
-
|
$
|
3,243
|
$
|
3,243
|
||||||||
Other real estate owned
|
-
|
-
|
1,700
|
1,700
|
• |
Impaired Loans -The Company has measured impairment on impaired loans generally based on the fair value of the loan's collateral. Fair value is generally determined based upon independent third-party appraisals of the properties. In some cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. Additionally, management makes estimates about expected costs to sell the property which are also included in the net realizable value. If the fair value of the collateral dependent loan is less than the carrying amount of the loan a specific reserve for the loan is made in the allowance for loan losses or a charge-off is taken to reduce the loan to the fair value of the collateral (less estimated selling costs) and the loan is included in the table above as a Level III measurement. If the fair value of the collateral exceeds the carrying amount of the loan, then the loan is not included in the table above as it is not currently being carried at its fair value. The fair values above excluded estimated selling costs of $351,000 and $356,000 at March 31, 2021 and December 31, 2020, respectively.
|
• |
Other Real Estate Owned (OREO) - OREO is carried at the lower of cost or fair value, less estimated costs to sell, which is measured at the date of foreclosure. If the fair value of the collateral exceeds the carrying amount of the loan, no charge-off or adjustment is necessary, the loan is not considered to be carried at fair value, and is therefore not included in the table above. If the fair value of the collateral is less than the carrying amount of the loan, management will charge the loan down to its estimated realizable value. The fair value of OREO is based on the appraised value of the property, which is generally unadjusted by management and is based on comparable sales for similar properties in the same geographic region as the subject property, and is included in the above table as a Level II measurement. In some cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. In these cases, the loans are categorized in the above table as a Level III measurement since these adjustments are considered to be unobservable inputs. Income and expenses from operations and further declines in the fair value of the collateral subsequent to foreclosure are included in net expenses from OREO.
|
March 31, 2021
|
Fair Value
|
Valuation Technique(s)
|
Unobservable input
|
Range
|
Weighted
average
|
|||||||||
Impaired Loans
|
$
|
3,264
|
Appraised Collateral Values
|
Discount for time since appraisal
|
0-100
|
%
|
21.83
|
%
|
||||||
Selling costs
|
5%-11
|
%
|
9.40
|
%
|
||||||||||
Holding period
|
0 - 12 months
|
11.49 months
|
||||||||||||
Other real estate owned
|
1,527
|
Appraised Collateral Values
|
Discount for time since appraisal
|
20-33
|
%
|
30.58
|
%
|
December 31, 2020
|
Fair Value
|
Valuation Technique(s)
|
Unobservable input
|
Range
|
Weighted
average
|
|||||||||
Impaired Loans
|
3,243
|
Appraised Collateral Values
|
Discount for time since appraisal
|
0-100
|
%
|
20.61
|
%
|
|||||||
Selling costs
|
5%-10
|
%
|
9.51
|
%
|
||||||||||
Holding period
|
6 - 12 months
|
11.65 months
|
||||||||||||
Other real estate owned
|
1,700
|
Appraised Collateral Values
|
Discount for time since appraisal
|
20-31
|
%
|
28.67
|
%
|
March 31, 2021
|
Carrying
Amount
|
Fair Value
|
Level I
|
Level II
|
Level III
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Interest bearing time deposits with other banks
|
$
|
13,509
|
$
|
13,509
|
$
|
-
|
$
|
-
|
$
|
13,509
|
||||||||||
Loans held for sale
|
9,946
|
9,946
|
-
|
-
|
9,946
|
|||||||||||||||
Net loans
|
1,387,841
|
1,399,392
|
-
|
-
|
1,399,392
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
1,687,470
|
1,690,832
|
1,314,705
|
-
|
376,127
|
|||||||||||||||
Borrowed funds
|
86,171
|
83,141
|
-
|
-
|
83,141
|
|||||||||||||||
December 31, 2020
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Interest bearing time deposits with other banks
|
$
|
13,758
|
$
|
13,758
|
$
|
-
|
$
|
-
|
$
|
13,758
|
||||||||||
Loans held for sale
|
14,640
|
14,640
|
-
|
-
|
14,640
|
|||||||||||||||
Net loans
|
1,389,466
|
1,404,166
|
-
|
-
|
1,404,166
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
1,588,858
|
1,593,738
|
1,207,666
|
-
|
386,075
|
|||||||||||||||
Borrowed funds
|
88,838
|
88,263
|
-
|
-
|
88,263
|
ITEM 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
• |
The scope, duration and severity of the COVID-19 pandemic and its effects on our business and operations, our customers, including their ability to make timely payments on loans, our service providers, and on the economy and financial markets in general.
|
• |
Interest rates could change more rapidly or more significantly than we expect.
|
• |
The economy could change significantly in an unexpected way, which would cause the demand for new loans and the ability of borrowers to repay outstanding loans to change in ways that our models do not anticipate.
|
• |
The financial markets could suffer a significant disruption, which may have a negative effect on our financial condition and that of our borrowers, and on our ability to raise money by issuing new securities.
|
• |
It could take us longer than we anticipate to implement strategic initiatives designed to increase revenues or manage expenses, or we may be unable to implement those initiatives at all.
|
• |
We may not be able to successfully integrate businesses we acquire or be able to fully realize the expected financial and other benefits from acquisitions.
|
• |
Acquisitions and dispositions of assets could affect us in ways that management has not anticipated.
|
• |
We may become subject to new legal obligations or the resolution of litigation may have a negative effect on our financial condition or operating results.
|
• |
We may become subject to new and unanticipated accounting, tax, or regulatory practices or requirements.
|
• |
We could experience greater loan delinquencies than anticipated, adversely affecting our earnings and financial condition.
|
• |
We could experience greater losses than expected due to the ever increasing volume of information theft and fraudulent scams impacting our customers and the banking industry.
|
• |
We could lose the services of some or all of our key personnel, which would negatively impact our business because of their business development skills, financial expertise, lending experience, technical expertise and market area knowledge.
|
• |
The agricultural economy is subject to extreme swings in both the costs of resources and the prices received from the sale of products, which could negatively impact some of our customers.
|
• |
Agricultural customers could be affected by factors outside of their control including adverse weather conditions, loss of crops or livestock due to diseases or other factors, and government policies, regulations and tariffs.
|
• |
Loan concentrations in certain industries could negatively impact financial results, if financial results or economic conditions deteriorate.
|
• |
Companies providing support services related to the exploration and drilling of the natural gas reserves in our market area may be affected by federal, state and local laws and regulations such as restrictions on production, permitting, changes in taxes and environmental protection, which could negatively impact our customers and, as a result, negatively impact our loan and deposit volume and loan quality. Additionally, the activities the companies providing support services related to the exploration and drilling of the natural gas reserves may be dependent on the market price of natural gas. As a result, decreases in the market price of natural gas could also negatively impact these companies, our customers.
|
• |
Interest only payment options for consumers and businesses for 60-90 days.
|
• |
Deferral of principal payments for consumers and businesses in certain industries for 60-120 days
|
• |
Hotels/Motels - $59.3 million or 4.2% of outstanding loans
|
• |
Restaurants - $26.8 million or 1.9% of outstanding loans
|
• |
Amusement/Theme parks - $13.9 million, or 1.0% of outstanding loans
|
Analysis of Average Balances and Interest Rates
|
||||||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||||||
March 31, 2021
|
March 31, 2020
|
|||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance (1)
$
|
Interest
$
|
Average
Rate
%
|
Average
Balance (1)
$
|
Interest
$
|
Average
Rate
%
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Short-term investments:
|
||||||||||||||||||||||||
Interest-bearing deposits at banks
|
94,523
|
19
|
0.08
|
9,538
|
3
|
0.17
|
||||||||||||||||||
Total short-term investments
|
94,523
|
19
|
0.08
|
9,538
|
3
|
0.17
|
||||||||||||||||||
Interest bearing time deposits at banks
|
13,730
|
87
|
2.57
|
14,272
|
92
|
2.59
|
||||||||||||||||||
Investment securities:
|
||||||||||||||||||||||||
Taxable
|
200,492
|
951
|
1.90
|
179,893
|
1,217
|
2.71
|
||||||||||||||||||
Tax-exempt (3)
|
100,422
|
689
|
2.74
|
62,555
|
493
|
3.15
|
||||||||||||||||||
Total investment securities
|
300,914
|
1,640
|
2.18
|
242,448
|
1,710
|
2.82
|
||||||||||||||||||
Loans (2)(3)(4):
|
||||||||||||||||||||||||
Residential mortgage loans
|
203,941
|
2,553
|
5.08
|
215,838
|
2,843
|
5.30
|
||||||||||||||||||
Construction
|
38,314
|
410
|
4.34
|
17,726
|
223
|
5.06
|
||||||||||||||||||
Commercial Loans
|
713,900
|
9,063
|
5.15
|
415,199
|
5,534
|
5.36
|
||||||||||||||||||
Agricultural Loans
|
358,565
|
3,830
|
4.33
|
360,179
|
4,112
|
4.59
|
||||||||||||||||||
Loans to state & political subdivisions
|
62,516
|
598
|
3.87
|
94,122
|
939
|
4.01
|
||||||||||||||||||
Other loans
|
26,605
|
348
|
5.30
|
9,461
|
171
|
7.27
|
||||||||||||||||||
Loans, net of discount
|
1,403,841
|
16,802
|
4.85
|
1,112,525
|
13,822
|
5.00
|
||||||||||||||||||
Total interest-earning assets
|
1,813,008
|
18,548
|
4.15
|
1,378,783
|
15,627
|
4.56
|
||||||||||||||||||
Cash and due from banks
|
6,377
|
6,263
|
||||||||||||||||||||||
Bank premises and equipment
|
17,003
|
16,062
|
||||||||||||||||||||||
Other assets
|
80,953
|
56,983
|
||||||||||||||||||||||
Total non-interest earning assets
|
104,333
|
79,308
|
||||||||||||||||||||||
Total assets
|
1,917,341
|
1,458,091
|
||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
422,135
|
320
|
0.31
|
332,068
|
437
|
0.53
|
||||||||||||||||||
Savings accounts
|
268,252
|
89
|
0.13
|
225,985
|
184
|
0.33
|
||||||||||||||||||
Money market accounts
|
238,788
|
176
|
0.30
|
174,294
|
393
|
0.91
|
||||||||||||||||||
Certificates of deposit
|
380,791
|
1,013
|
1.08
|
261,278
|
973
|
1.50
|
||||||||||||||||||
Total interest-bearing deposits
|
1,309,966
|
1,598
|
0.49
|
993,625
|
1,987
|
0.93
|
||||||||||||||||||
Other borrowed funds
|
86,226
|
256
|
1.20
|
93,849
|
462
|
1.98
|
||||||||||||||||||
Total interest-bearing liabilities
|
1,396,192
|
1,854
|
0.54
|
1,087,474
|
2,449
|
0.91
|
||||||||||||||||||
Demand deposits
|
306,377
|
196,604
|
||||||||||||||||||||||
Other liabilities
|
18,582
|
16,082
|
||||||||||||||||||||||
Total non-interest-bearing liabilities
|
324,959
|
212,686
|
||||||||||||||||||||||
Stockholders' equity
|
196,190
|
157,931
|
||||||||||||||||||||||
Total liabilities & stockholders' equity
|
1,917,341
|
1,458,091
|
||||||||||||||||||||||
Net interest income
|
16,694
|
13,178
|
||||||||||||||||||||||
Net interest spread (5)
|
3.61
|
%
|
3.65
|
%
|
||||||||||||||||||||
Net interest income as a percentage of average interest-earning assets
|
3.73
|
%
|
3.84
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
130
|
%
|
127
|
%
|
For the Three Months
Ended March 31,
|
||||||||
2021
|
2020
|
|||||||
Interest and dividend income from investment securities and interest bearing deposits at banks (non-tax adjusted)
|
$
|
1,601
|
$
|
1,701
|
||||
Tax equivalent adjustment
|
145
|
104
|
||||||
Interest and dividend income from investment securities and interest bearing deposits at banks (tax equivalent basis)
|
$
|
1,746
|
$
|
1,805
|
||||
Interest and fees on loans (non-tax adjusted)
|
$
|
16,694
|
$
|
13,638
|
||||
Tax equivalent adjustment
|
108
|
184
|
||||||
Interest and fees on loans (tax equivalent basis)
|
$
|
16,802
|
$
|
13,822
|
||||
Total interest income
|
$
|
18,295
|
$
|
15,339
|
||||
Total interest expense
|
1,854
|
2,449
|
||||||
Net interest income
|
16,441
|
12,890
|
||||||
Total tax equivalent adjustment
|
253
|
288
|
||||||
Net interest income (tax equivalent basis)
|
$
|
16,694
|
$
|
13,178
|
Three months ended March 31, 2021 vs 2020 (1)
|
||||||||||||
Change in
Volume
|
Change
in Rate
|
Total
Change
|
||||||||||
Interest Income:
|
||||||||||||
Short-term investments:
|
||||||||||||
Interest-bearing deposits at banks
|
$
|
17
|
$
|
(1
|
)
|
$
|
16
|
|||||
Interest bearing time deposits at banks
|
(4
|
)
|
(1
|
)
|
(5
|
)
|
||||||
Investment securities:
|
||||||||||||
Taxable
|
167
|
(433
|
)
|
(266
|
)
|
|||||||
Tax-exempt
|
248
|
(52
|
)
|
196
|
||||||||
Total investments
|
415
|
(485
|
)
|
(70
|
)
|
|||||||
Loans:
|
||||||||||||
Residential mortgage loans
|
(174
|
)
|
(116
|
)
|
(290
|
)
|
||||||
Construction
|
213
|
(26
|
)
|
187
|
||||||||
Commercial Loans
|
3,736
|
(207
|
)
|
3,529
|
||||||||
Agricultural Loans
|
(54
|
)
|
(228
|
)
|
(282
|
)
|
||||||
Loans to state & political subdivisions
|
(311
|
)
|
(30
|
)
|
(341
|
)
|
||||||
Other loans
|
208
|
(31
|
)
|
177
|
||||||||
Total loans, net of discount
|
3,618
|
(638
|
)
|
2,980
|
||||||||
Total Interest Income
|
4,046
|
(1,125
|
)
|
2,921
|
||||||||
Interest Expense:
|
||||||||||||
Interest-bearing deposits:
|
||||||||||||
NOW accounts
|
204
|
(321
|
)
|
(117
|
)
|
|||||||
Savings accounts
|
44
|
(139
|
)
|
(95
|
)
|
|||||||
Money Market accounts
|
262
|
(479
|
)
|
(217
|
)
|
|||||||
Certificates of deposit
|
112
|
(72
|
)
|
40
|
||||||||
Total interest-bearing deposits
|
622
|
(1,011
|
)
|
(389
|
)
|
|||||||
Other borrowed funds
|
(39
|
)
|
(167
|
)
|
(206
|
)
|
||||||
Total interest expense
|
583
|
(1,178
|
)
|
(595
|
)
|
|||||||
Net interest income
|
$
|
3,463
|
$
|
53
|
$
|
3,516
|
• |
The yield on taxable securities decreased 81 basis points from 2.71% to 1.90% as a result of calls of investments that were purchased at a discount in the first quarter of 2020 and purchases made in a lower rate environment in 2020. This resulted in a decrease in investment income of $433,000. The average balance of taxable securities increased $20.6 million, which resulted in an increase in investment income of $167,000.
|
• |
The average balance of tax-exempt securities increased by $37.9 million, which resulted in an increase in investment income of $248,000. The yield on tax-exempt securities decreased 41 basis points from 3.15% to 2.74%, which corresponds to a decrease in interest income of $52,000. The yield decrease was attributable to higher yielding securities being called and maturing and being replaced by securities that were purchased in a lower rate environment. For a discussion of the Company's current investment strategy, see the 'Financial Condition - Investments'.
|
• |
Interest income on residential mortgage loans decreased $290,000. The average balance of residential mortgage loans decreased $11.9 million due to refinancings in the secondary market resulting in a decrease of $174,000 due to volume. The change due to rate was a decrease of $116,000 as the average yield on residential mortgages decreased from 5.30% to 5.08% as a result of the lower rate environment due to the COVID-19 pandemic.
|
• |
The average balance of construction loans increased $20.6 million as a result of projects in our central and south central Pennsylvania markets, as well as the Delaware market. This resulted in an increase of $213,000 on total interest income due to volume.
|
• |
The average balance of commercial loans increased $298.7 million from a year ago. The growth was primarily attributable to the MidCoast acquisition and growth in Delaware. This had a positive impact of $3,736,000 on total interest income due to volume. The yield decreased 21 basis points to 5.15%, which decreased loan interest income $207,000.
|
• |
Interest income on agricultural loans decreased $282,000 from 2020 to 2021. The decrease in the average balance of agricultural loans of $1.6 million resulted in a decrease in interest income due to volume of $54,000. The yield on agricultural loans decreased 26 basis points to 4.33%, which decreased loan interest income $228,000.
|
• |
The average balance of state and political subdivision loans decreased $31.6 million from a year ago as a result of several pay-offs during 2020 and 2021. This resulted in a decrease of $311,000 on total interest income due to volume.
|
• |
The average balance of other loans increased $17.1 million as a result of an increase in outstanding student loans. This resulted in an increase of $208,000 on total interest income due to volume.
|
• |
The average balance of interest bearing deposits increased $316.3 million from March 31, 2020 to March 31, 2021. The primary cause of the increase was the MidCoast acquisition completed in the second quarter of 2020 and government stimulus funds in response to the pandemic. We experienced increases of $90.1 million in NOW accounts, $42.3 million in savings accounts, $64.5 million in money market accounts and $119.5 million in certificates of deposit. The cumulative effect of these volume changes was an increase in interest expense of $622,000. (see also 'Financial Condition - Deposits'). The average rate paid on interest bearing deposits was 0.49% for the first three months of 2021 and 0.93% for the comparable period in 2020. This resulted in a decrease in interest expense of $1,011,000. The decrease was due to the Federal Reserve cutting interest rates during the first quarter of 2020.
|
• |
The average balance of other borrowed funds decreased $7.6 million from a year ago. This resulted in a decrease in interest expense of $39,000. There was a decrease in the average rate paid on other borrowed funds from 1.98% to 1.20% due to a decrease in rates as a result of Federal Reserve interest rate decreases in 2020 resulting in a decrease in interest expense of $167,000.
|
Three months ended March 31,
|
Change
|
|||||||||||||||
2021
|
2020
|
Amount
|
%
|
|||||||||||||
Service charges
|
$
|
1,106
|
$
|
1,081
|
$
|
25
|
2.3
|
|||||||||
Trust
|
307
|
198
|
109
|
55.1
|
||||||||||||
Brokerage and insurance
|
376
|
340
|
36
|
10.6
|
||||||||||||
Gains on loans sold
|
503
|
167
|
336
|
201.2
|
||||||||||||
Equity security gains (losses), net
|
187
|
(254
|
)
|
441
|
(173.6
|
)
|
||||||||||
Available for sale security gains, net
|
50
|
-
|
50
|
NA
|
||||||||||||
Earnings on bank owned life insurance
|
1,315
|
156
|
1,159
|
742.9
|
||||||||||||
Other
|
391
|
163
|
228
|
139.9
|
||||||||||||
Total
|
$
|
4,235
|
$
|
1,851
|
$
|
2,384
|
128.8
|
Three months ended March 31,
|
Change
|
|||||||||||||||
2021
|
2020
|
Amount
|
%
|
|||||||||||||
Salaries and employee benefits
|
$
|
6,263
|
$
|
5,414
|
$
|
849
|
15.7
|
|||||||||
Occupancy
|
783
|
526
|
257
|
48.9
|
||||||||||||
Furniture and equipment
|
143
|
131
|
12
|
9.2
|
||||||||||||
Professional fees
|
448
|
325
|
123
|
37.8
|
||||||||||||
FDIC insurance
|
129
|
71
|
58
|
81.7
|
||||||||||||
Pennsylvania shares tax
|
339
|
275
|
64
|
23.3
|
||||||||||||
Amortization of intangibles
|
49
|
50
|
(1
|
)
|
(2.0
|
)
|
||||||||||
Merger and acquisition
|
-
|
376
|
(376
|
)
|
NA
|
|||||||||||
Software expenses
|
313
|
247
|
66
|
26.7
|
||||||||||||
ORE expenses (recovery)
|
86
|
32
|
54
|
168.8
|
||||||||||||
Other
|
1,394
|
1,474
|
(80
|
)
|
(5.4
|
)
|
||||||||||
Total
|
$
|
9,947
|
$
|
8,921
|
$
|
1,026
|
11.5
|
March 31, 2021
|
December 31, 2020
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Debt securities:
|
||||||||||||||||
U. S. Agency securities
|
$
|
79,709
|
24.6
|
$
|
81,416
|
27.4
|
||||||||||
U. S. Treasury notes
|
40,362
|
12.5
|
28,043
|
9.4
|
||||||||||||
Obligations of state & political subdivisions
|
102,345
|
31.6
|
102,972
|
34.7
|
||||||||||||
Corporate obligations
|
6,983
|
2.1
|
6,509
|
2.2
|
||||||||||||
Mortgage-backed securities in government sponsored entities
|
92,568
|
28.5
|
76,249
|
25.7
|
||||||||||||
Equity securities
|
2,118
|
0.7
|
1,931
|
0.6
|
||||||||||||
Total
|
$
|
324,085
|
100.0
|
$
|
297,120
|
100.0
|
March 31, 2021/
December 31, 2020
Change
|
||||||||
Amount
|
%
|
|||||||
Debt securities:
|
||||||||
U. S. Agency securities
|
$
|
(1,707
|
)
|
(2.1
|
)
|
|||
U. S. Treasury notes
|
12,319
|
43.9
|
||||||
Obligations of state & political subdivisions
|
(627
|
)
|
(0.6
|
)
|
||||
Corporate obligations
|
474
|
7.3
|
||||||
Mortgage-backed securities in government sponsored entities
|
16,319
|
21.4
|
||||||
Equity securities
|
187
|
9.7
|
||||||
Total
|
$
|
26,965
|
9.1
|
March 31,
2021
|
December 31,
2020
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Real estate:
|
||||||||||||||||
Residential
|
$
|
203,273
|
14.5
|
$
|
201,911
|
14.4
|
||||||||||
Commercial
|
605,547
|
43.1
|
596,255
|
42.4
|
||||||||||||
Agricultural
|
315,313
|
22.5
|
315,158
|
22.4
|
||||||||||||
Construction
|
42,651
|
3.0
|
35,404
|
2.5
|
||||||||||||
Consumer
|
26,181
|
1.9
|
30,277
|
2.2
|
||||||||||||
Other commercial loans
|
109,168
|
7.8
|
114,169
|
8.1
|
||||||||||||
Other agricultural loans
|
41,378
|
2.9
|
48,779
|
3.5
|
||||||||||||
State & political subdivision loans
|
60,890
|
4.3
|
63,328
|
4.5
|
||||||||||||
Total loans
|
1,404,401
|
100.0
|
1,405,281
|
100.0
|
||||||||||||
Less allowance for loan losses
|
16,560
|
15,815
|
||||||||||||||
Net loans
|
$
|
1,387,841
|
$
|
1,389,466
|
March 31, 2021/
December 31, 2020
Change
|
||||||||
Amount
|
%
|
|||||||
Real estate:
|
||||||||
Residential
|
$
|
1,362
|
0.7
|
|||||
Commercial
|
9,292
|
1.6
|
||||||
Agricultural
|
155
|
0.0
|
||||||
Construction
|
7,247
|
20.5
|
||||||
Consumer
|
(4,096
|
)
|
(13.5
|
)
|
||||
Other commercial loans
|
(5,001
|
)
|
(4.4
|
)
|
||||
Other agricultural loans
|
(7,401
|
)
|
(15.2
|
)
|
||||
State & political subdivision loans
|
(2,438
|
)
|
(3.8
|
)
|
||||
Total loans
|
$
|
(880
|
)
|
(0.1
|
)
|
March 31,
|
December 31,
|
|||||||||||||||||||
2021
|
2020
|
2019
|
2018
|
2017
|
||||||||||||||||
Balance at beginning of period
|
$
|
15,815
|
$
|
13,845
|
$
|
12,884
|
$
|
11,190
|
$
|
8,886
|
||||||||||
Charge-offs:
|
||||||||||||||||||||
Real estate:
|
||||||||||||||||||||
Residential
|
-
|
-
|
32
|
118
|
107
|
|||||||||||||||
Commercial
|
-
|
435
|
578
|
66
|
41
|
|||||||||||||||
Agricultural
|
-
|
4
|
-
|
-
|
30
|
|||||||||||||||
Consumer
|
4
|
50
|
49
|
40
|
130
|
|||||||||||||||
Other commercial loans
|
-
|
44
|
38
|
91
|
-
|
|||||||||||||||
Other agricultural loans
|
-
|
-
|
60
|
50
|
5
|
|||||||||||||||
Total loans charged-off
|
4
|
533
|
757
|
365
|
313
|
|||||||||||||||
Recoveries:
|
||||||||||||||||||||
Real estate:
|
||||||||||||||||||||
Residential
|
-
|
14
|
-
|
69
|
-
|
|||||||||||||||
Commercial
|
89
|
37
|
-
|
3
|
11
|
|||||||||||||||
Agricultural
|
-
|
19
|
-
|
-
|
-
|
|||||||||||||||
Consumer
|
6
|
21
|
33
|
31
|
49
|
|||||||||||||||
Other commercial loans
|
4
|
12
|
10
|
30
|
16
|
|||||||||||||||
Other agricultural loans
|
-
|
-
|
-
|
1
|
1
|
|||||||||||||||
Total loans recovered
|
99
|
103
|
43
|
134
|
77
|
|||||||||||||||
Net loans (recovered) charged-off
|
(95
|
)
|
430
|
714
|
231
|
236
|
||||||||||||||
Provision charged to expense
|
650
|
2,400
|
1,675
|
1,925
|
2,540
|
|||||||||||||||
Balance at end of year
|
$
|
16,560
|
$
|
15,815
|
$
|
13,845
|
$
|
12,884
|
$
|
11,190
|
||||||||||
Loans outstanding at end of period
|
$
|
1,404,401
|
$
|
1,405,281
|
$
|
1,115,569
|
$
|
1,081,883
|
$
|
1,000,525
|
||||||||||
Average loans outstanding, net
|
$
|
1,403,841
|
$
|
1,291,838
|
$
|
1,102,565
|
$
|
1,044,250
|
$
|
883,355
|
||||||||||
Non-performing assets:
|
||||||||||||||||||||
Non-accruing loans
|
$
|
10,680
|
$
|
10,732
|
$
|
11,536
|
$
|
13,724
|
$
|
10,171
|
||||||||||
Accrual loans - 90 days or more past due
|
478
|
525
|
487
|
68
|
555
|
|||||||||||||||
Total non-performing loans
|
$
|
11,158
|
$
|
11,257
|
$
|
12,023
|
$
|
13,792
|
$
|
10,726
|
||||||||||
Foreclosed assets held for sale
|
1,720
|
1,836
|
3,404
|
601
|
1,119
|
|||||||||||||||
Total non-performing assets
|
$
|
12,878
|
$
|
13,093
|
$
|
15,427
|
$
|
14,393
|
$
|
11,845
|
||||||||||
Annualized net (recoveries) charge-offs to average loans
|
(0.03
|
)%
|
0.03
|
%
|
0.06
|
%
|
0.02
|
%
|
0.03
|
%
|
||||||||||
Allowance to total loans
|
1.18
|
%
|
1.13
|
%
|
1.24
|
%
|
1.19
|
%
|
1.12
|
%
|
||||||||||
Allowance to total non-performing loans
|
148.41
|
%
|
140.49
|
%
|
115.15
|
%
|
93.42
|
%
|
104.33
|
%
|
||||||||||
Non-performing loans as a percent of loans net of unearned income
|
0.79
|
%
|
0.80
|
%
|
1.08
|
%
|
1.27
|
%
|
1.07
|
%
|
||||||||||
Non-performing assets as a percent of loans net of unearned income
|
0.92
|
%
|
0.93
|
%
|
1.38
|
%
|
1.33
|
%
|
1.18
|
%
|
March 31,
|
December 31
|
|||||||||||||||||||||||||||||||||||||||
2021
|
2020
|
2019
|
2018
|
2017
|
||||||||||||||||||||||||||||||||||||
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||||||||||||||||||
Residential
|
$
|
1,167
|
14.5
|
$
|
1,174
|
14.4
|
$
|
1,114
|
19.4
|
$
|
1,105
|
19.9
|
$
|
1,049
|
21.4
|
|||||||||||||||||||||||||
Commercial
|
6,683
|
43.1
|
6,216
|
42.4
|
4,549
|
30.7
|
4,115
|
29.5
|
3,867
|
30.8
|
||||||||||||||||||||||||||||||
Agricultural
|
4,917
|
22.5
|
4,953
|
22.4
|
5,022
|
27.9
|
4,264
|
26.3
|
3,143
|
24.0
|
||||||||||||||||||||||||||||||
Construction
|
151
|
3.0
|
122
|
2.5
|
43
|
1.4
|
58
|
3.1
|
23
|
1.3
|
||||||||||||||||||||||||||||||
Consumer
|
237
|
1.9
|
321
|
2.2
|
112
|
0.9
|
120
|
0.9
|
124
|
1.0
|
||||||||||||||||||||||||||||||
Other commercial loans
|
1,504
|
7.8
|
1,226
|
8.1
|
1,255
|
6.3
|
1,354
|
6.9
|
1,272
|
7.2
|
||||||||||||||||||||||||||||||
Other agricultural loans
|
789
|
2.9
|
864
|
3.5
|
961
|
4.9
|
752
|
3.9
|
492
|
3.8
|
||||||||||||||||||||||||||||||
State & political subdivision loans
|
470
|
4.3
|
479
|
4.5
|
536
|
8.5
|
762
|
9.5
|
816
|
10.5
|
||||||||||||||||||||||||||||||
Unallocated
|
642
|
N/A
|
460
|
N/A
|
253
|
N/A
|
354
|
N/A
|
404
|
N/A
|
||||||||||||||||||||||||||||||
Total allowance for loan losses
|
$
|
16,560
|
100.0
|
$
|
15,815
|
100.0
|
$
|
13,845
|
100.0
|
$
|
12,884
|
100.0
|
$
|
11,190
|
100.0
|
March 31, 2021
|
December 31, 2020
|
|||||||||||||||||||||||||||||||
Non-Performing Loans
|
Non-Performing Loans
|
|||||||||||||||||||||||||||||||
(in thousands)
|
30 - 89
Days
Past Due
Accruing
|
90 Days
Past Due
Accruing
|
Non-
accrual
|
Total Non-
Performing
|
30 - 89
Days
Past Due
Accruing
|
90 Days
Past Due
Accruing
|
Non-
accrual
|
Total Non-
Performing
|
||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||
Residential
|
$
|
377
|
$
|
251
|
$
|
794
|
$
|
1,045
|
$
|
1,351
|
$
|
275
|
$
|
812
|
$
|
1,087
|
||||||||||||||||
Commercial
|
665
|
-
|
4,853
|
4,853
|
1,247
|
70
|
4,529
|
4,599
|
||||||||||||||||||||||||
Agricultural
|
44
|
150
|
3,064
|
3,214
|
366
|
150
|
3,133
|
3,283
|
||||||||||||||||||||||||
Construction
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Consumer
|
153
|
27
|
-
|
27
|
155
|
30
|
-
|
30
|
||||||||||||||||||||||||
Other commercial loans
|
919
|
50
|
1,050
|
1,100
|
930
|
-
|
1,284
|
1,284
|
||||||||||||||||||||||||
Other agricultural loans
|
224
|
-
|
919
|
919
|
71
|
-
|
974
|
974
|
||||||||||||||||||||||||
Total nonperforming loans
|
$
|
2,382
|
$
|
478
|
$
|
10,680
|
$
|
11,158
|
$
|
4,120
|
$
|
525
|
$
|
10,732
|
$
|
11,257
|
Change in Non-Performing Loans
|
||||||||
March 31, 2021 /December 31, 2020
|
||||||||
(in thousands)
|
Amount
|
%
|
||||||
Real estate:
|
||||||||
Residential
|
$
|
(42
|
)
|
(3.9
|
)
|
|||
Commercial
|
254
|
5.5
|
||||||
Agricultural
|
(69
|
)
|
(2.1
|
)
|
||||
Construction
|
-
|
NA
|
||||||
Consumer
|
(3
|
)
|
(10.0
|
)
|
||||
Other commercial loans
|
(184
|
)
|
(14.3
|
)
|
||||
Other agricultural loans
|
(55
|
)
|
(5.6
|
)
|
||||
Total nonperforming loans
|
$
|
(99
|
)
|
(0.9
|
)
|
• |
A commercial loan relationship with $2.0 million outstanding, and additional letters of credit of $2.1 million available, secured by undeveloped land, stone quarries and equipment, was on non-accrual status as of March 31, 2021. The slowdown in the exploration for natural gas has significantly impacted the cash flows of the customer, who provides excavation services and stone for pad construction related to these activities. During 2019, the Company had the underlying equipment collateral appraised. The 2019 appraisal indicated a decrease in collateral values compared to the appraisal ordered for the loan origination and an appraisal performed in 2017, however, the loan was still considered well secured on a loan to value basis at March 31, 2021. In the fourth quarter of 2020, a forbearance agreement was signed with this customer, which the customer remains in compliance with as of March 31, 2021. Management determined that no specific reserve was required as of March 31, 2021.
|
• |
An agricultural loan customer with a total loan relationship of $2.4 million, secured by real estate, equipment and cattle, was on non-accrual status as of March 31, 2021. The customer declared bankruptcy during the fourth quarter of 2018 and developed a workout plan that was approved in the fourth quarter of 2019 and resulted in monthly payments resuming in late 2019 that continued in 2020 and 2021. Included within these loans to this customer are $911,000 of loans which are subject to Farm Service Agency guarantees. Depressed milk prices and the pandemic have created cash flow difficulties for this customer. Absent a sizable and sustained increase in milk prices, which is not assured, we will need to rely upon the collateral for repayment of interest and principal. As of March 31, 2021, there was a specific reserve of $131,000 for this relationship.
|
• |
An agricultural loan customer with a total loan relationship of $1.2 million, secured by real estate was on non-accrual status as of March 31, 2021. The COVID-19 pandemic has escalated the cash flow difficulties this customer was experiencing. We expect that we will need to rely upon the collateral for repayment of interest and principal. Management reviewed the collateral and determined that no specific reserve was required as of March 31, 2021.
|
• |
The three loan relationships described above comprised 50.5% of the non-performing loan balance, which had approximately $131,000 of specific reserves, as of March 31, 2021.
|
• |
The Company has a history of low charge-offs, and has a net recovery for the first three months of 2021. Net (recoveries) charge-offs for the first three months of 2021 were (0.03) % and were 0.03% for all of 2020.
|
March 31,
2021
|
December 31,
2020
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Non-interest-bearing deposits
|
$
|
336,438
|
19.9
|
$
|
303,762
|
19.1
|
||||||||||
NOW accounts
|
442,338
|
26.2
|
422,083
|
26.6
|
||||||||||||
Savings deposits
|
283,594
|
16.8
|
255,853
|
16.1
|
||||||||||||
Money market deposit accounts
|
252,335
|
15.0
|
225,968
|
14.2
|
||||||||||||
Certificates of deposit
|
372,765
|
22.1
|
381,192
|
24.0
|
||||||||||||
Total
|
$
|
1,687,470
|
100.0
|
$
|
1,588,858
|
100.0
|
March 31, 2021/
December 31, 2020
Change
|
||||||||
Amount
|
%
|
|||||||
Non-interest-bearing deposits
|
$
|
32,676
|
10.8
|
|||||
NOW accounts
|
20,255
|
4.8
|
||||||
Savings deposits
|
27,741
|
10.8
|
||||||
Money market deposit accounts
|
26,367
|
11.7
|
||||||
Certificates of deposit
|
(8,427
|
)
|
(2.2
|
)
|
||||
Total
|
$
|
98,612
|
6.2
|
March 31, 2021
|
December 31, 2020
|
|||||||
Commitments to extend credit
|
$
|
304,350
|
$
|
274,327
|
||||
Standby letters of credit
|
18,709
|
21,978
|
||||||
$
|
323,059
|
$
|
296,305
|
Change In
|
% Change In
|
|||||||||||
Prospective One-Year
|
Prospective
|
Prospective
|
||||||||||
Changes in Rates
|
Net Interest Income
|
Net Interest Income
|
Net Interest Income
|
|||||||||
-100 Shock
|
59,242
|
(1,080
|
)
|
(1.79
|
)
|
|||||||
Base
|
60,322
|
-
|
-
|
|||||||||
+100 Shock
|
59,803
|
(519
|
)
|
(0.86
|
)
|
|||||||
+200 Shock
|
59,821
|
(501
|
)
|
(0.83
|
)
|
|||||||
+300 Shock
|
59,763
|
(559
|
)
|
(0.93
|
)
|
|||||||
+400 Shock
|
59,573
|
(749
|
)
|
(1.24
|
)
|
ISSUER PURCHASES OF EQUITY SECURITIES
|
||||||||||||||||
Period
|
Total Number of Shares
(or units Purchased)
|
Average Price
Paid per Share
(or Unit)
|
Total Number of
Shares (or Units)
Purchased as Part of
Publicly Announced
Plans of Programs
|
Maximum Number (or
Approximate Dollar
Value) of Shares (or
Units) that May Yet Be
Purchased Under the
Plans or Programs (1)
|
||||||||||||
1/1/21 to 1/31/21
|
-
|
$
|
0.00
|
-
|
158,202
|
|||||||||||
2/1/21 to 2/28/21
|
8,121
|
$
|
55.61
|
8,121
|
150,081
|
|||||||||||
3/1/21 to 3/31/21
|
1,081
|
$
|
55.94
|
1,081
|
149,000
|
|||||||||||
Total
|
9,202
|
$
|
55.65
|
9,202
|
149,000
|
(1) |
On October 20, 2015, the Company announced that the Board of Directors authorized the Company to repurchase up to an additional 150,000 shares. The repurchases will be conducted through open-market purchases or privately negotiated transactions and will be made from time to time depending on market conditions and other factors. No time limit was placed on the duration of the share repurchase program. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes. This authorization was fully utilized during the first quarter of 2021.
|
(2) |
On April 21, 2020, the Company announced that the Board of Directors authorized the Company to repurchase up to an additional 150,000 shares at an aggregate purchase price not to exceed $12.0 million over a period of 36 months. The repurchases will be conducted through open-market purchases or privately negotiated transactions and will be made from time to time depending on market conditions and other factors. No time limit was placed on the duration of the share repurchase program. Any repurchased shares will be held as treasury stock and will be available for general corporate purposes.
|
(a)
|
The following documents are filed as a part of this report:
|
Articles of Incorporation of Citizens Financial Services, Inc., as amended (1)
|
||
Bylaws of Citizens Financial Services, Inc. (2)
|
||
Form of Common Stock Certificate. (3)
|
||
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
|
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
|
|
32.1
|
Section 1350 Certification of Chief Executive Officer and Chief Financial Officer
|
|
101
|
The following materials from the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2021, formatted in XBRL (Extensible Business Reporting Language): (i) The Consolidated Balance Sheet (unaudited), (ii) the Consolidated Statement of Income (unaudited), (iii) the Consolidated Statement of Comprehensive Income (unaudited), (iv) the Consolidated Statement of Changes in Stockholders' Equity, (v) the Consolidated Statement of Cash Flows (unaudited) and (vi) related notes (unaudited).
|
(1) |
Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, as filed with the Commission on April 26, 2021.
|
(2) |
Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, as filed with the Commission on December 17, 2020.
|
(3) |
Incorporated by reference to Exhibit 4 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2005, as filed with the Commission on March 14, 2006.
|
Citizens Financial Services, Inc.
|
|
(Registrant)
|
|
May 6, 2021
|
/s/ Randall E. Black
|
By: Randall E. Black
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
May 6, 2021
|
/s/ Stephen J. Guillaume
|
By: Stephen J. Guillaume
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|