0001558370-21-012515 | 10-Q | XBRL Viewer | Orange County Bancorp INC DE

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2021	Sep. 08, 2021
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Entity File Number	001-40711
Entity Registrant Name	Orange County Bancorp, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-1135778
Entity Address, Address Line One	212 Dolson Avenue
Entity Address, City or Town	Middletown
Entity Address State Or Province	NY
Entity Address, Postal Zip Code	10940
City Area Code	845
Local Phone Number	341-5000
Title of 12(b) Security	Common Stock, par value $0.50 per share
Trading Symbol	OBT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,637,376
Entity Central Index Key	0001754226
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
ASSETS
Cash and due from banks	$ 322,919	$ 121,232
Investment securities - available-for-sale	377,738	330,105
Restricted investment in bank stocks	2,109	1,449
Loans	1,286,885	1,152,738
Allowance for loan losses	(17,049)	(16,172)
Loans, net	1,269,836	1,136,566
Net premises and equipment	14,124	14,017
Accrued interest receivable	7,090	6,295
Bank owned life insurance	29,064	28,520
Goodwill	5,359	5,359
Intangible assets	1,821	1,963
Other assets	22,172	19,430
TOTAL ASSETS	2,052,232	1,664,936
Deposits:
Noninterest bearing	652,767	521,093
Interest bearing	1,218,898	968,201
Total deposits	1,871,665	1,489,294
Note payable	3,000	3,000
Subordinated notes, net of issuance costs	19,358	19,323
Accrued expenses and other liabilities	17,298	17,896
TOTAL LIABILITIES	1,911,321	1,529,513
STOCKHOLDERS' EQUITY
Common stock, $0.50 par value; 15,000,000 shares authorized; 4,533,304 issued; 4,488,437 and 4,483,102 outstanding, at June 30, 2021 and December 31, 2020, respectively	2,266	2,266
Surplus	84,936	85,111
Retained Earnings	56,118	47,683
Accumulated other comprehensive income (loss), net of taxes	(1,116)	1,819
Treasury stock, at cost; 44,867 and 50,202 shares at June 30, 2021 and December 31, 2020, respectively	(1,293)	(1,456)
TOTAL STOCKHOLDERS' EQUITY	140,911	135,423
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,052,232	$ 1,664,936

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
Common stock, Par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, Authorized (in shares)	15,000,000	15,000,000
Common stock, Issued (in shares)	4,533,304	4,533,304
Common stock, Outstanding (in shares)	4,488,437	4,483,102
Treasury stock (in shares)	44,867	50,202

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
INTEREST INCOME
Interest and fees on loans	$ 14,033	$ 11,444	$ 27,261	$ 22,446
Interest on investment securities:
Taxable	1,156	1,223	2,284	2,558
Tax exempt	408	233	771	359
Interest on Federal funds sold and other	61	28	104	208
TOTAL INTEREST INCOME	15,658	12,928	30,420	25,571
INTEREST EXPENSE
Savings and NOW accounts	617	851	1,209	1,807
Time deposits	137	254	295	535
FHLB advances				10
Note payable	42	42	84	84
Subordinated notes	230		460
TOTAL INTEREST EXPENSE	1,026	1,147	2,048	2,436
NET INTEREST INCOME	14,632	11,781	28,372	23,135
Provision for loan losses	809	1,310	875	2,510
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	13,823	10,471	27,497	20,625
NONINTEREST INCOME
Service charges on deposit accounts	158	117	333	325
Trust income	1,184	918	2,307	1,956
Investment advisory income	1,235	997	2,411	1,898
Investment securities gains		586		586
Earnings on bank owned life insurance	173	182	344	347
Other	278	206	524	435
TOTAL NONINTEREST INCOME	3,028	3,006	5,919	5,547
NONINTEREST EXPENSE
Salaries	4,726	4,634	9,273	8,819
Employee benefits	876	1,105	2,002	2,254
Occupancy expense	967	934	1,932	1,872
Professional fees	1,023	1,004	1,930	1,575
Directors' fees and expenses	252	276	494	569
Computer software expense	1,032	920	2,090	1,714
FDIC assessment	267	197	555	366
Advertising expenses	285	338	568	651
Advisor expenses related to trust income	140	88	261	243
Telephone expenses	136	140	270	269
Intangible amortization	71	71	142	143
Other	626	197	1,199	1,020
TOTAL NONINTEREST EXPENSE	10,401	9,904	20,716	19,495
Income before income taxes	6,450	3,573	12,700	6,677
Provision for income taxes	1,257	695	2,482	1,323
NET INCOME	$ 5,193	$ 2,878	$ 10,218	$ 5,354
Basic and diluted earnings per share (in dollars per share)	$ 1.16	$ 0.64	$ 2.28	$ 1.19
Weighted average shares outstanding (in shares)	4,488,602	4,514,345	4,485,886	4,512,382

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net Income	$ 5,193	$ 2,878	$ 10,218	$ 5,354
Unrealized gains/losses on securities:
Unrealized holding gains/(losses) arising during the period	1,817	1,319	(3,722)	6,109
Reclassification adjustment for (gains)/losses included in net income		(586)		(586)
Tax effect	381	153	(782)	1,159
Net of tax	1,436	580	(2,940)	4,364
Defined benefit pension plans:
Reclassification adjustment for amortization of prior service cost and net gains included in net periodic pension cost	14		14
Tax effect	3		3
Net of tax	11		11
Deferred compensation liability:
Unrealized loss	(5)	(5)	(8)	(9)
Tax effect	(1)	(1)	(2)	(2)
Net of tax	(4)	(4)	(6)	(7)
Total other comprehensive income/(loss)	1,443	576	(2,935)	4,357
Total comprehensive income	$ 6,636	$ 3,454	$ 7,283	$ 9,711

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total
Beginning balance at Dec. 31, 2019	$ 2,266	$ 85,178	$ 39,589	$ (4,044)	$ (926)	$ 122,063
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income			5,354			5,354
Other comprehensive income/(loss), net of taxes				4,357		4,357
Cash dividends declared			(1,794)			(1,794)
Issue of restricted stock		(442)			442
Treasury stock purchased					(502)	(502)
Restricted stock expense		189				189
Stock-based compensation		(31)			160	129
Ending balance at Jun. 30, 2020	2,266	84,894	43,149	313	(826)	129,796
Beginning balance at Mar. 31, 2020	2,266	84,792	41,169	(263)	(476)	127,488
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income			2,878			2,878
Other comprehensive income/(loss), net of taxes				576		576
Cash dividends declared			(898)			(898)
Treasury stock purchased					(350)	(350)
Restricted stock expense		102				102
Ending balance at Jun. 30, 2020	2,266	84,894	43,149	313	(826)	129,796
Beginning balance at Dec. 31, 2020	2,266	85,111	47,683	1,819	(1,456)	135,423
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income			10,218			10,218
Other comprehensive income/(loss), net of taxes				(2,935)		(2,935)
Cash dividends declared			(1,783)			(1,783)
Issue of restricted stock		(436)			436
Treasury stock purchased					(343)	(343)
Restricted stock expense		262				262
Stock-based compensation		(1)			70	69
Ending balance at Jun. 30, 2021	2,266	84,936	56,118	(1,116)	(1,293)	140,911
Beginning balance at Mar. 31, 2021	2,266	84,774	51,818	(2,559)	(1,218)	135,081
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income			5,193			5,193
Other comprehensive income/(loss), net of taxes				1,443		1,443
Cash dividends declared			(893)			(893)
Treasury stock purchased					(75)	(75)
Restricted stock expense		162				162
Ending balance at Jun. 30, 2021	$ 2,266	$ 84,936	$ 56,118	$ (1,116)	$ (1,293)	$ 140,911

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Cash dividends declared per share	$ 0.20	$ 0.20	$ 0.40	$ 0.40
Restricted stock issued (in shares)			15,162	14,532
Treasury stock purchased (in shares)	2,536	11,475	12,231	16,600
Stock-based compensation (in shares)			2,404	4,332

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net income	$ 10,218	$ 5,354
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	875	2,510
Depreciation	657	637
Accretion on loans	(2,453)	(539)
Amortization of intangibles	142	143
Amortization of subordinated notes issuance costs	35
Investment securities gains(losses)		(586)
Restricted stock expense	262	189
Stock-based compensation	69	129
Net amortization of investment premiums	1,104	1,058
Earnings on bank owned life insurance	(344)	(347)
Net change in:
Accrued interest receivable	(795)	(4,236)
Other assets	(1,950)	(407)
Other liabilities	(603)	(643)
Net cash from operating activities	7,217	3,262
Cash flows from investing activities
Purchases of investment securities available-for-sale	(124,635)	(97,081)
Proceeds from sales and paydowns of investment securities available-for-sale	52,299	54,335
Proceeds from maturities and calls of investment securities available-for-sale	19,877	15,412
Purchase of restricted investment in bank stocks	(662)	(3,347)
Proceeds from redemptions of restricted investment in bank stocks	2	3,372
Loans purchased	(3,025)	(15,019)
Principal returned on loans purchased	9,322	5,766
Net increase in loans	(137,989)	(147,829)
Additions to premises and equipment	(764)	(506)
Purchase of bank owned life insurance	(200)
Net cash from investing activities	(185,775)	(184,897)
Cash flows from financing activities
Net increase in deposits	382,371	351,711
Net change in FHLB term advances		(5,000)
Cash dividends paid	(1,783)	(1,794)
Purchases of treasury stock	(343)	(502)
Net cash from financing activities	380,245	344,415
Net change in cash and cash equivalents	201,687	162,780
Beginning cash and cash equivalents	121,232	25,112
Ending cash and cash equivalents	322,919	187,892
Supplementary Cash Flow Information
Interest paid	2,064	2,471
Income taxes paid	$ 2,132	$ 1,241

Nature of Operations and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations and Summary of Significant Accounting Policies

Note 1 — Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations and Principles of Consolidation: The unaudited consolidated financial statements include Orange County Bancorp, Inc., a Delaware bank holding company (“Orange County Bancorp”) and its wholly owned subsidiaries: Orange Bank & Trust Company, a New York trust company (the “Bank”) and Hudson Valley Investment Advisors (“HVIA”), a Registered Investment Advisor, together referred to as “the Company.” Intercompany transactions and balances are eliminated in consolidation.

The Company provides commercial and consumer banking services to individuals, small businesses and local municipal governments as well as trust and investment services through the Bank and HVIA. The Company is headquartered in Middletown, New York, with eight locations in Orange County, New York, five in Westchester County, New York and one in Rockland County, New York. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial and residential mortgage loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the areas in which they operate.

Assets held by the Company in an agency or fiduciary capacity for its customers are excluded from the consolidated financial statements since they do not constitute assets of the Company. Assets held by the Company amounted to $1,237,523 and $1,189,119 at June 30, 2021 and December 31, 2020, respectively.

Certain information and footnote disclosures normally included in the audited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, included herein for the year ended December 31, 2020 for Orange County Bancorp, Inc. contained in the Company’s definitive prospectus dated August 4, 2021 as filed with the Securities and Exchange Commission pursuant to Securities Act Rule 424(b)(4) on August 5, 2021. In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting solely of normal and recurring accruals) necessary to present fairly the financial position as of June 30, 2021, the results of operations, comprehensive income, stockholders’ equity for the three and six months ended June 30, 2021 and 2020 and cash flow statements for the six months ended June 30, 2021 and 2020. The results of operations for any interim period are not necessarily indicative of the results that may be expected for the full year or for any future period.

Risk and Uncertainties: On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to spread throughout the United States and around the world. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. The COVID-19 pandemic has adversely affected, and continues to adversely affect economic activity globally, nationally and locally. Actions taken around the world to help mitigate the spread of COVID-19 include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. COVID-19 and actions taken to mitigate the spread of it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the New York metropolitan area in which the Company primarily operates. Although the Company has been able to continue operations while taking steps to ensure the safety of employees and customers, COVID-19 could also potentially create widespread business continuity issues for the Company. This could cause the Company to experience a material adverse effect on business operations, asset valuations, financial condition and results of operations. Material adverse impacts may include all or a combination of valuation impairments on the Company’s intangible assets, investments, and loans.

Use of Estimates: To prepare financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

Recent Accounting Pronouncements: On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2018-14, Compensation — Retirement Benefits Topic 715-20. This ASU amends Accounting Standards Codification (“ASC”) 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The ASU eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year, and also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. The adoption of the ASU did not have a significant impact on the Company’s consolidated financial statements.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments — Credit Losses Topic 326: Measurement of Credit Losses on Financial Instruments. The objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. In November 2019, the FASB adopted changes to delay the effective date of ASU 2016-13 to January 2023 for certain entities, including certain Securities and Exchange Commission filers, public business entities, and private companies. As a result, the Company is eligible for the delay and will adopt the ASU effective January 1, 2023. The Company is currently working with a third-party vendor in the development of certain methodologies and modeling techniques that will be implemented to accommodate this adoption. It is expected that the modeling of the new accounting standard will be run in parallel with the Company’s current incurred loss methodology throughout 2022 in an effort to evaluate and inform the potential impact the adoption of ASU 2016-13 will have on its consolidated financial statements and results of operations.

Investment Securities

6 Months Ended

Jun. 30, 2021

Investment Securities

Investment Securities

Note 2 — Investment Securities

The amortized cost and fair value of investment securities at June 30, 2021 and December 31, 2020:


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available-for-sale June 30, 2021
U.S. government agencies	$	78,372	$	985	$	(922)	$	78,435
Mortgage-backed securities		201,426		2,044		(1,743)		201,727
Corporate Securities		13,093		262		(5)		13,350
Obligations of states and political subdivisions		82,305		2,073		(152)		84,226
Total debt securities	$	375,196	$	5,364	$	(2,822)	$	377,738


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available-for-sale December 31, 2020
U.S. government agencies	$	82,409	$	1,394	$	(382)	$	83,421
Mortgage-backed securities		157,408		3,633		(257)		160,784
Corporate Securities		10,603		57		(33)		10,627
Obligations of states and political subdivisions		73,421		1,883		(31)		75,273
Total debt securities	$	323,841	$	6,967	$	(703)	$	330,105

The proceeds from sales of securities and associated gains and losses are listed below:


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Proceeds	$	—	$	21,285	$	—	$	21,285

Gross realized gains	$	—	$	736	$	—	$	736
Gross realized losses				(150)				(150)
Net gain on sales of securities		—		586		—		586
Tax provision on realized net gains and loss		—		123		—		123
Net gain on sales of securities, after tax	$	—	$	463	$	—	$	463

The amortized cost and fair value of debt securities as of June 30, 2021 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available-for-sale
	Amortized		Fair
	Cost		Value
Due in one year or less	$	11,510	$	11,551
Due after one through five years		8,768		8,864
Due after five through ten years		53,408		53,647
Due after ten years		100,084		101,949
		173,770		176,011
Mortgage-backed securities		201,426		201,727
Total debt securities	$	375,196	$	377,738

Securities pledged at June 30, 2021 and December 31, 2020 had a carrying amount of $233,737 and $121,233 and were pledged to secure public deposits.

At June 30, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the US Government and its agencies, in an amount greater than 10% of stockholders’ equity.

The following table summarizes securities with unrealized and unrecognized losses at June 30, 2021 and December 31, 2020, aggregated by major security types and length of time in continuous loss position:


	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Available-for-sale June 30, 2021
U.S. government agencies	$	27,164	$	(693)	$	14,596	$	(229)	$	41,760	$	(922)
Mortgage-backed securities		93,119		(1,724)		2,052		(19)		95,171		(1,743)
Corporate Securities		3,572		(5)		—		—		3,572		(5)
Obligations of states and political subdivisions		10,164		(152)		—		—		10,164		(152)
Total debt securities	$	134,019	$	(2,574)	$	16,648	$	(248)	$	150,667	$	(2,822)


	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Available-for-sale December 31, 2020
U.S. government agencies	$	17,948	$	(52)	$	20,779	$	(330)	$	38,727	$	(382)
Mortgage-backed securities		35,580		(208)		1,887		(49)		37,467		(257)
Corporate Securities		1,551		(33)		—		—		1,551		(33)
Obligations of states and political subdivisions		15,373		(31)		—		—		15,373		(31)
Total debt securities	$	70,452	$	(324)	$	22,666	$	(379)	$	93,118	$	(703)

There was no other than temporary impairment loss recognized on any securities at June 30, 2021 or December 31, 2020.

As of June 30, 2021, the Company’s security portfolio consisted of 224 securities, 50 of which were in an unrealized loss position. As of December 31, 2020, the Company’s security portfolio consisted of 196 securities, 36 of which were in an unrealized loss position. Unrealized losses are primarily related to the Company’s mortgage backed and U.S. government agency securities as discussed below.

At June 30, 2021, mortgage-backed securities held by the company were issued by U.S. government sponsored entities and agencies. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other than temporarily impaired at June 30, 2021.

The Company’s unrealized losses on U.S. government agency securities relate primarily to its investment in Small Business Administration (“SBA”) issued securities. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other than temporarily impaired at June 30, 2021.

Loans

6 Months Ended

Jun. 30, 2021

Loans

Loans

Note 3 — Loans

Loans at June 30, 2021 and December 31, 2020 were as follows:


	June 30, 2021		December 31, 2020
Commercial and industrial	$	346,727	$	299,049
Commercial real estate		781,074		698,130
Commercial real estate construction		66,781		63,544
Residential real estate		62,274		57,941
Home equity		13,057		13,960
Consumer		16,972		20,114
Total	$	1,286,885	$	1,152,738

Included in commercial and industrial loans as of June 30, 2021 and December 31, 2020 were loans issued under the SBA’s Paycheck Protection Program (“PPP”) of $108,711 and $68,974, respectively.

The following table presents the activity in the allowance for loan losses by portfolio segment for each of the three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30, 2021
	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
Allowance for loan losses:

Beginning balance	$	5,015	$	9,545	$	1,002	$	346	$	65	$	310	$	16,283
Provision for loan losses		(72)		1,039		(54)		(45)		(5)		(54)		809
Charge-offs		(89)		(60)		—		—		—		(2)		(151)
Recoveries		92		12		—		—		—		4		108
Ending balance	$	4,946	$	10,536	$	948	$	301	$	60	$	258	$	17,049


	Six Months Ended June 30, 2021
	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
Allowance for loan losses:

Beginning balance	$	4,795	$	9,782	$	801	$	381	$	77	$	336	$	16,172
Provision for loan losses		77		844		147		(80)		(17)		(96)		875
Charge-offs		(105)		(103)		—		—		—		(7)		(215)
Recoveries		179		13		—		—		—		25		217
Ending balance	$	4,946	$	10,536	$	948	$	301	$	60	$	258	$	17,049


	Three Months Ended June 30, 2020
	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
Allowance for loan losses:
Beginning balance	$	4,687	$	7,555	$	600	$	386	$	55	$	198	$	13,481
Provision for loan losses		847		272		142		49		15		(15)		1,310
Charge-offs		(689)		—		—		(15)		—		(20)		(724)
Recoveries		—		1		—		—		—		4		5
Ending balance	$	4,845	$	7,828	$	742	$	420	$	70	$	167	$	14,072


	Six Months Ended June 30, 2020
	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
Allowance for loan losses:
Beginning balance	$	5,107	$	5,951	$	713	$	384	$	43	$	77	$	12,275
Provision for loan losses		421		1,875		29		51		27		107		2,510
Charge-offs		(689)		—		—		(15)		—		(23)		(727)
Recoveries		6		2		—		—		—		6		14
Ending balance	$	4,845	$	7,828	$	742	$	420	$	70	$	167	$	14,072

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2021 and December 31, 2020:


	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
June 30, 2021
Allowance for loan losses:
Ending balance:
individually evaluated for impairment	$	451	$	1,304	$	—	$	3	$	—	$	26	$	1,784
collectively evaluated for impairment		4,495		9,232		948		298		60		232		15,265
Total ending allowance balance	$	4,946	$	10,536	$	948	$	301	$	60	$	258	$	17,049
Loans:
Ending balance:
individually evaluated for impairment	$	2,820	$	25,677	$	—	$	1,243	$	—	$	119	$	29,859
collectively evaluated for impairment		343,907		755,397		66,781		61,031		13,057		16,853		1,257,026
Total ending loans balance	$	346,727	$	781,074	$	66,781	$	62,274	$	13,057	$	16,972	$	1,286,885


	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
December 31, 2020
Allowance for loan losses:
Ending balance:
individually evaluated for impairment	$	206	$	1,084	$	—	$	15	$	—	$	27	$	1,332
collectively evaluated for impairment		4,589		8,698		801		366		77		309		14,840
Total ending allowance balance	$	4,795	$	9,782	$	801	$	381	$	77	$	336	$	16,172
Loans:
Ending balance:
individually evaluated for impairment	$	2,410	$	19,759	$	—	$	1,358	$	—	$	124	$	23,651
collectively evaluated for impairment		296,639		678,371		63,544		56,583		13,960		19,990		1,129,087
Total ending loans balance	$	299,049	$	698,130	$	63,544	$	57,941	$	13,960	$	20,114	$	1,152,738

Included in the commercial and industrial loans collectively evaluated for impaired are PPP loans of $108,711 and $68,974 as of June 30, 2021 and December 31, 2020, respectively. PPP loans receivable are guaranteed by the SBA and have no allocation of the allowance for loan losses.

The following table presents loans individually evaluated for impairment recognized by class of loans as of June 30, 2021 and December 31, 2020:


	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
	Balance		Investment		Allocated
June 30, 2021
With no related allowance recorded
Commercial and industrial	$	339	$	339	$	—
Commercial real estate		10,510		9,209		—
Commercial real estate construction		—		—		—
Residential real estate		1,168		1,168		—
Home equity		—		—		—
Consumer		—		—		—
Total	$	12,017	$	10,716	$	—
With an allowance recorded:
Commercial and industrial	$	2,481	$	2,481	$	451
Commercial real estate		16,959		16,468		1,304
Commercial real estate construction		—		—		—
Residential real estate		86		75		3
Home equity		—		—		—
Consumer		119		119		26
Total	$	19,645	$	19,143	$	1,784


	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
	Balance		Investment		Allocated
December 31, 2020
With no related allowance recorded
Commercial and industrial	$	331	$	331	$	—
Commercial real estate		10,621		9,248		—
Commercial real estate construction		—		—		—
Residential real estate		1,148		1,148		—
Home equity		—		—		—
Consumer		—		—		—
Total	$	12,100	$	10,727	$	—
With an allowance recorded:
Commercial and industrial	$	2,079	$	2,079	$	206
Commercial real estate		11,001		10,511		1,084
Commercial real estate construction		—		—		—
Residential real estate		219		210		15
Home equity		—		—		—
Consumer		124		124		27
Total	$	13,423	$	12,924	$	1,332

The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three and six months ended June 30, 2021 and 2020:


	Three Months Ended				Three Months Ended
	June 30, 2021				June 30, 2020
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized⁽¹⁾		Investment		Recognized⁽¹⁾
With no related allowance recorded
Commercial and industrial	$	330	$	4	$	10	$	1
Commercial real estate		9,186		108		2,269		32
Commercial real estate construction		578		—		—		—
Residential real estate		594		8		—		—
Home equity		—		—		—		—
Consumer		—		—		—		—
Total	$	10,688	$	120	$	2,279	$	33
With an allowance recorded:
Commercial and industrial	$	2,928	$	40	$	3,193	$	46
Commercial real estate		16,499		198		14,563		198
Commercial real estate construction		—		—		—		—
Residential real estate		76		—		219		1
Home equity		—		—		43		—
Consumer		121		2		129		2
Total	$	19,624	$	240	$	18,147	$	247

(1) Cash basis interest income approximates interest income recognized.


	Six Months Ended				Six Months Ended
	June 30, 2021				June 30, 2020
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized⁽¹⁾		Investment		Recognized⁽¹⁾
With no related allowance recorded
Commercial and industrial	$	335	$	9	$	12	$	—
Commercial real estate		9,228		216		1,800		52
Commercial real estate construction		578		—		—		—
Residential real estate		596		16		—		—
Home equity		—		—		—		—
Consumer		—		—		—		—
Total	$	10,737	$	241	$	1,812	$	52
With an allowance recorded:
Commercial and industrial	$	3,023	$	83	$	3,271	$	94
Commercial real estate		16,524		396		14,597		397
Commercial real estate construction		—		—		—		—
Residential real estate		77		—		221		3
Home equity		—		—		44		1
Consumer		122		3		130		3
Total	$	19,746	$	482	$	18,263	$	498

(1)	Cash basis interest income approximates interest income recognized.

The following table presents the recorded investment in non-accrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2021 and December 31, 2020:


					Loans Past Due Over 90 Days
	Non-accrual				Still Accruing
	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Commercial and industrial	$	5	$	—	$	337	$	457
Commercial real estate		1,345		1,345		—		—
Commercial real estate construction		—		—		—		—
Residential real estate		653		657		1		2
Home equity		—		—		—		—
Consumer		—		—		126		61
Total	$	2,003	$	2,002	$	464	$	520

The following table presents the aging of the recorded investment in past-due loans as of June 30, 2021 and December 31, 2020 by class of loans:


	30-59 Days		60-89 Days		Greater Than		Total		Loans
	Past Due		Past Due		90 Days		Past Due		Not Past Due
June 30, 2021
Commercial and industrial	$	155	$	59	$	337	$	551	$	346,176
Commercial real estate		—		—		1,345		1,345		779,729
Commercial real estate construction		—		—		—		—		66,781
Residential real estate		—		29		579		608		61,666
Home equity		50		—		—		50		13,007
Consumer		114		233		126		473		16,499
Total	$	319	$	321	$	2,387	$	3,027	$	1,283,858


	30-59 Days		60-89 Days		Greater Than		Total		Loans
	Past Due		Past Due		90 Days		Past Due		Not Past Due
December 31, 2020
Commercial and industrial	$	123	$	201	$	457	$	781	$	298,268
Commercial real estate		—		—		1,345		1,345		696,785
Commercial real estate construction		—		—		—		—		63,544
Residential real estate		570		—		580		1,150		56,791
Home equity		—		—		—		—		13,960
Consumer		132		272		61		465		19,649
Total	$	825	$	473	$	2,443	$	3,741	$	1,148,997

As of June 30, 2021 and December 31, 2020, loans in the process of foreclosure were $1,925 of which $578 were secured by residential real estate.

As of June 30, 2021 and December 31, 2020, the Company has a recorded investment in Troubled Debt Restructurings (“TDRs”) of $15,082 and $15,951 respectively. The Company has allocated $851 and $918 of specific allowance for these loans at June 30, 2021 and December 31, 2020, respectively, and there were no commitments to lend additional funds to borrowers whose loans were classified as TDRs. There were no restructured loans that defaulted within the three and six months ended June 30, 2021 and June 30, 2020.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

There were no loans whose terms were modified resulting in TDRs during the three and six months ended June 30, 2021 and June 30, 2020.

In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment related to the economic impact of COVID-19. Provisions of the CARES Act largely mirrored the provisions of the interagency statement, providing that modified loans would not be considered TDRs if they were performing at year-end 2019. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented or at year-end 2019.

The following table sets forth the composition of these loans by loan segments as of June 30, 2021 and December 31, 2020:


	June 30, 2021			December 31, 2020
		Unpaid			Unpaid
	Number of	Principal		Number of	Principal
	Loans	Balance		Loans	Balance
Commercial and industrial	5	$	746	9	$	3,390
Commercial real estate	8		11,669	19	$	44,782
Consumer	—		—	1		596
Total	13	$	12,415	29	$	48,768

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $350 thousand and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on an annual basis. The company uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well- defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans.

Based on the analysis performed as of June 30, 2021 and December 31, 2020, the risk category of loans by class of loans is as follows:


			Special
	Pass		Mention		Substandard		Doubtful		Loss		Total
June 30, 2021
Commercial and industrial	$	340,051	$	3,856	$	2,820	$	—	$	—	$	346,727
Commercial real estate		761,759		926		18,389		—		—		781,074
Commercial real estate construction		66,781		—		—		—		—		66,781
Residential real estate		61,106		—		1,168		—		—		62,274
Home equity		13,057		—		—		—		—		13,057
Consumer		16,853		—		119		—		—		16,972
Total	$	1,259,607	$	4,782	$	22,496	$	—	$	—	$	1,286,885


			Special
	Pass		Mention		Substandard		Doubtful		Loss		Total
December 31, 2020
Commercial and industrial	$	293,763	$	3,023	$	2,263	$	—	$	—	$	299,049
Commercial real estate		685,808		4,164		8,158		—		—		698,130
Commercial real estate construction		63,544		—		—		—		—		63,544
Residential real estate		56,793		—		1,148		—		—		57,941
Home equity		13,960		—		—		—		—		13,960
Consumer		19,990		—		124		—		—		20,114
Total	$	1,133,858	$	7,187	$	11,693	$	—	$	—	$	1,152,738

Loans to certain directors and principal officers of the Company, including their immediate families and companies in which they are affiliated, amounted to $4,094 and $5,392 at June 30, 2021 and December 31, 2020, respectively.

Fair Value

6 Months Ended

Jun. 30, 2021

Fair Value

Fair Value

Note 4 — Fair Value

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate fair value:

Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3).

Impaired Loans and Other Real Estate Owned: The fair value of collateral dependent loans that are individually evaluated for impairment is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach and resulted in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy.

Appraisals are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by a third-party appraisal management company that the Company has engaged in accordance with internal vendor management policies and approval of the Company’s Board of Directors. Once received, the appraisal review function is conducted by the appraisal management company and consists of a review of the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Through this review, the appraisal management company evaluates the validity of the appraised value and the strength of the conclusions; which are subsequently confirmed by a member of the Credit Department. Discounts to the appraised value are then applied to recognize the carrying costs incurred until disposition, realtor fees, deterioration in the quality of the asset, and the age of the appraisal. The net effect of these adjustments were included in the charge-off to the allowance upon acquisition of the foreclosed property and/or upon partial charge-off of the impaired loan. The most recent analysis of property appraisals including the appropriate discount rates are incorporated into the allowance methodology for the respective loan portfolio segments.

Assets and liabilities measured at fair value on a recurring basis are summarized below:


			Fair Value Measurements Using:
			Quoted Prices in
			Active Markets		Significant Other		Significant
	Total at		for Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
	2021		(Level 1)		(Level 2)		(Level 3)
U.S. government agencies	$	78,435	$	—	$	78,435	$	—
Mortgage-backed securities		201,727		—		201,727		—
Corporate securities		13,350		—		13,350		—
Obligations of states and political subdivisions		84,226		—		84,226		—
Total securities available-for-sale	$	377,738	$	—	$	377,738	$	—

There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2021.


			Fair Value Measurements Using:
			Quoted Prices in
			Active Markets		Significant Other		Significant
	Total at		for Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2020		(Level 1)		(Level 2)		(Level 3)
U.S. government agencies		83,421	$	—	$	83,421	$	—
Mortgage-backed securities		160,784		—		160,784		—
Corporate securities		10,627		—		10,627		—
Obligations of states and political subdivisions		75,273		—		75,273		—
Total securities available-for-sale	$	330,105	$	—	$	330,105	$	—

There were no transfers between Level 1 and Level 2 during 2020.

Assets measured at fair value on a non-recurring basis as of June 30, 2021 are summarized below:

Fair Value Measurements Using:

Quoted Prices

Significant

in Active

Other

Significant

Total at

Markets for

Observable

Unobservable

June 30, 2021

Identical Assets

Inputs

(Level 1)

(Level 2)

(Level 3)

Impaired loans

6,534

—

6,534

The fair value amounts shown in the above table are impaired loans net of reserves allocated to said loans. The total reserves allocated to these impaired loans are $286 for June 30, 2021.

The following table presents additional quantitative information about level 3 fair value measured at fair value on a non-recurring basis at June 30, 2021:


	Fair Value				Range
June 30, 2021	Value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	6,534	Appraisal of collateral (1)	Appraisal and liquidation	38-56%
				adjustments (2)	(38%)

(1) Fair value is generally determined through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable.

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

There were no material collateral dependent, non-TDR impaired loans with a specific reserve as of December 31, 2020.

The carrying amounts and estimated fair values of the Company’s financial instruments not carried at fair value are as follows at June 30, 2021 and December 31, 2020:


	June 30, 2021
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	322,919	$	322,919	$	322,919	$	—	$	—
Loans, net		1,269,836		1,272,674		—		—		1,272,674
Accrued interest receivable		7,090		7,090		—		1,451		5,639
Restricted investment in bank stocks		2,109		NA		—		—		—
Financial liabilities:
Deposits		1,871,665		1,871,803		1,784,168		87,635		—
Note payable		3,000		3,064		—		3,064		—
Subordinated notes, net of issuance costs		19,358		19,061		—		19,061		—
Accrued interest payable		291		291		—		291		—


	December 31, 2020
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	121,232	$	121,232	$	121,232	$	—	$	—
Loans, net		1,136,566		1,139,472		—		—		1,139,472
Accrued interest receivable		6,295		6,295		—		1,389		4,906
Restricted investment in bank stocks		1,449		NA		—		—		—
Financial liabilities:
Deposits		1,489,294		1,489,615		1,398,095		91,520		—
Note payable		3,000		3,087		—		3,087		—
Subordinated notes, net of issuance costs		19,323		19,758		—		19,758		—
Accrued interest payable		307		307		—		307		—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Deposits

6 Months Ended

Jun. 30, 2021

Deposits

Deposits

Note 5 — Deposits

A summarized analysis of the Bank’s deposits at June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
Non-interest bearing demand accounts	$	652,767	$	521,093
Interest-bearing demand accounts		300,340		236,951
Money market accounts		642,177		483,044
Savings accounts		189,154		157,007
Certificates of Deposit		87,227		91,199
Total deposits	$	1,871,665	$	1,489,294

Time deposits that meet or exceed the FDIC insurance limit of $250 at June 30, 2021 and December 31, 2020 were $25,204 and $23,747, respectively.

Scheduled maturities of time deposits for the next five years are as follows:


2021	$	52,036
2022		27,864
2023		5,610
2024		1,717
	$	87,227

Deposits of executive officers, directors and principal officers of the Company, including their immediate families and companies in which they are affiliated, amounted to $6,576 and $6,910 at June 30, 2021 and December 31, 2020, respectively.

Pension Plan and Stock Compensation

6 Months Ended

Jun. 30, 2021

Pension Plan and Stock Compensation

Pension Plan and Stock Compensation

Note 6 — Pension Plan and Stock Compensation

The Bank has a funded noncontributory defined benefit pension plan that covers substantially all employees meeting certain eligibility requirements. The pension plan was closed to new participants and benefit accruals were frozen as of December 31, 2015. The plan provides defined benefits based on years of service and final average salary.

The components of net periodic benefit cost for the Company’s noncontributory defined benefit pension plan for the three and six months ended June 30, 2021 and 2020 are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Service cost	$	47	$	35	$	94	$	70
Interest cost		190		230		380		460
Expected return on plan assets		(515)		(465)		(1,030)		(930)
Amortization of transition cost		(12)		(12)		(24)		(24)
Amortization of net loss		5		28		10		56
Net periodic benefit cost/(income)	$	(285)	$	(184)	$	(570)	$	(368)

The Company has a time based restricted stock plan. For the three months ended June 30, 2021 and 2020, the Company’s recognized stock-based compensation costs of $162 and $102, respectively. For the six months ended June 30, 2021 and 2020 the Company’s recognized stock-based compensation costs of $262 and $189, respectively. The Company uses the fair value of the common stock on the date of award to measure compensation cost for restricted stock awards. Compensation cost is recognized over

the vesting period of the award using the straight line method. There were 15,162 and 14,532 restricted stock awards granted for the six months ended June 30, 2021 and 2020, respectively. The grants generally vest at the rate of 33% per year with full vesting on the third anniversary date of the grant. Unamortized expense at June 30, 2021 was $436.

A summary of the Company’s restricted stock awards activity for the six months ended June 30, 2021 is presented below:


		Weighted
		Average Fair
	Shares	Value
Non-vested at beginning of period	25,369	$	28.78
Granted	15,162	$	28.75
Vested	(12,701)	$	28.43
Forfeited	(2,036)	$	28.99
Non-vested at end of period	25,794	$	28.92

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss).

Accumulated Other Comprehensive Income (Loss)

Note 7 — Accumulated Other Comprehensive Income (Loss)

The following is a summary of changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30, 2021
	Unrealized
	Gains and
	Losses on				Deferred
	Available-for-		Defined Benefit		Compensation
	Sale Securities		Pension Items		Liability		Total
Beginning balance	$	573	$	(3,277)	$	145	$	(2,559)
Other comprehensive income/(loss) before reclassification		1,436		—		(4)		1,432
Less amounts reclassified from accumulated other comprehensive income		—		11		—		11
Net current period other comprehensive income/(loss)		1,436		11		(4)		1,443
Ending balance	$	2,009	$	(3,266)	$	141	$	(1,116)


	Six Months Ended June 30, 2021
	Unrealized
	Gains and
	Losses on				Deferred
	Available-for-		Defined Benefit		Compensation
	Sale Securities		Pension Items		Liability		Total
Beginning balance	$	4,949	$	(3,277)	$	147	$	1,819
Other comprehensive income/(loss) before reclassification		(2,940)		—		(6)		(2,946)
Less amounts reclassified from accumulated other comprehensive income		—		11		—		11
Net current period other comprehensive income/(loss)		(2,940)		11		(6)		(2,935)
Ending balance	$	2,009	$	(3,266)	$	141	$	(1,116)


	Three Months Ended June 30, 2020
	Unrealized
	Gains and
	Losses on				Deferred
	Available-for-		Defined Benefit		Compensation
	Sale Securities		Pension Items		Liability		Total
Beginning balance	$	4,223	$	(4,642)	$	156	$	(263)
Other comprehensive income/(loss) before reclassification		1,043		—		(4)		1,039
Less amounts reclassified from accumulated other comprehensive income		(463)		—		—		(463)
Net current period other comprehensive income/(loss)		580		—		(4)		576
Ending balance	$	4,803	$	(4,642)	$	152	$	313


	Six Months Ended June 30, 2020
	Unrealized
	Gains and
	Losses on				Deferred
	Available-for-		Defined Benefit		Compensation
	Sale Securities		Pension Items		Liability		Total
Beginning balance	$	439	$	(4,642)	$	159	$	(4,044)
Other comprehensive income/(loss) before reclassification		4,827		—		(7)		4,820
Less amounts reclassified from accumulated other comprehensive income		(463)		—		—		(463)
Net current period other comprehensive income/(loss)		4,364		—		(7)		4,357
Ending balance	$	4,803	$	(4,642)	$	152	$	313

The following reflects significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020:


									Affected Line Item in the Statement where
	Amount Reclassified from Accumulated Other Comprehensive Income								Net Income is Presented
	Three Months Ended June 30,				Six Months Ended June 30,
Details about Accumulated Other Comprehensive Income Components	2021		2020		2021		2020
Unrealized gains and losses on available-for-sale securities
Realized (losses) gains on securities available-for-sale	$	—	$	586	$	—	$	586	Investment security gains (losses)
Total before tax		—		586		—		586
Tax effect		—		123		—		123	Provision for income taxes
Net of tax	$	—	$	463	$	—	$	463

Amortization of defined benefit pension items
Transition asset	$	(24)	$	—	$	(24)	$	—	Other expense
Actuarial gains (losses)		10		—		10		—	Other expense
Total before tax		(14)		—		(14)		—
Tax effect		(3)		—		(3)		—	Provision for income taxes
Net of tax	$	(11)	$	—	$	(11)	$	—

Total reclassifications for the period, net of tax	$	(11)	$	463	$	(11)	$	463

Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2021

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Note 8 — Revenue from Contracts with Customers

All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within Noninterest Income. The following table presents the Company’s gross sources of noninterest income for the three and six months ended June 30, 2021 and 2020.


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Noninterest Income
Service charges on deposit accounts	$	158	$	117	$	333	$	325
Trust income		1,184		918		2,307		1,956
Investment advisory income		1,235		997		2,411		1,898
Investment securities gains (losses)^(a)		—		586		—		586
Earnings on bank owned life insurance^(a)		173		182		344		347
Other^(b)		278		206		524		435
Total Noninterest Income	$	3,028	$	3,006	$	5,919	$	5,547

(a)	Not within the scope of ASC 606.

(b)

The Other category includes safe deposit income, checkbook fees, and debit card fee income, totaling $206 and $142 for the three months ended June 30, 2021 and 2020, respectively, and $392 and $305 for the six months ended June 30, 2021 and 2020, respectively, that are within the scope of ASC 606 and loan related fee income and miscellaneous income, totaling $72 and $64 for the three months ended June 30, 2021 and 2020, respectively, and $132 and $130 for the six months ended June 30, 2021 and 2020, respectively, which are outside the scope of ASC 606.

The Company earns wealth management fees, which includes trust income and investment advisory income, from its contracts with trust and brokerage customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Company provides the contracted services and are generally assessed based on a tiered scale of the market value of the assets under management at month-end or quarter-end.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Segment Information

6 Months Ended

Jun. 30, 2021

Segment Information

Segment Information

Note 9 — Segment Information

The reportable segments are determined by the products and services offered by the Company, primarily distinguished between banking and wealth management. Loans, investments, and deposits provide the revenues in the banking operation, and trust fees and investment management fees provide the revenues in wealth management. All operations are domestic.

Significant segment totals are reconciled to the financial statements as follows:


	At June 30, 2021						At December 31, 2020
	Banking		Wealth Management		Total Segments		Banking		Wealth Management		Total Segments

Total assets	$	2,043,970	$	8,262	$	2,052,232	$	1,656,517	$	8,419	$	1,664,936


	For the three months ended June 30, 2021						For the six months ended June 30, 2021
	Banking		Wealth Management		Total Segments		Banking		Wealth Management		Total Segments
Net interest income	$	14,632	$	—	$	14,632	$	28,372	$	—	$	28,372
Noninterest income		609		2,419		3,028		1,201		4,718		5,919
Provision for loan loss		(809)		—		(809)		(875)		—		(875)
Noninterest expenses		(8,723)		(1,678)		(10,401)		(17,395)		(3,321)		(20,716)
Income tax expense		(1,101)		(156)		(1,257)		(2,189)		(293)		(2,482)
Net income	$	4,608	$	585	$	5,193	$	9,114	$	1,104	$	10,218


	For the three months ended June 30, 2020						For the six months ended June 30, 2020
	Banking		Wealth Management		Total Segments		Banking		Wealth Management		Total Segments
Net interest income	$	11,781	$	—	$	11,781	$	23,135	$	—	$	23,135
Noninterest income		1,091		1,915		3,006		1,693		3,854		5,547
Provision for loan loss		(1,310)		—		(1,310)		(2,510)		—		(2,510)
Noninterest expenses		(8,451)		(1,453)		(9,904)		(16,535)		(2,960)		(19,495)
Income tax expense		(598)		(97)		(695)		(1,135)		(188)		(1,323)
Net income	$	2,513	$	365	$	2,878	$	4,648	$	706	$	5,354

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

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-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Regulatory Capital Matters

6 Months Ended

Jun. 30, 2021

Regulatory Capital Matters

Regulatory Capital Matters

Note 10 — Regulatory Capital Matters

The Bank is subject to regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and prompt corrective regulations involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet the minimum capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks, (Basel III rules), became effective for the Bank on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is 2.5%. The net unrealized gain or loss on available for sale securities is included in computing regulatory capital.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion and capital restoration plans are required. Capital levels at June 30, 2021 exceeded the regulatory minimum levels to be considered well capitalized under the prompt corrective action regulations.

Actual and required capital amounts and ratios are presented below at June 30, 2021 and December 31, 2020 for the Bank.


													To be Well Capitalized
					For Capital Adequacy				For Capital Adequacy				under Prompt
	Actual				Purposes				Purposes with Capital Buffer				Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
June 30, 2021
Total capital to risk weighted assets	$	164,333	13.38	%	$	98,254	8.00	%	$	121,282	9.875	%	$	122,817	10.00	%
Tier 1 (Core) capital to risk weighted assets		148,957	12.13	%		73,690	6.00	%		96,719	7.875	%		98,254	8.00	%
Common Tier 1 (CET1) to risk weighted assets		148,957	12.13	%		55,268	4.50	%		78,296	6.375	%		79,831	6.50	%
Tier 1 (Core) Capital to average assets		148,957	7.56	%		78,845	4.00	%		N/A	N/A			98,556	5.00	%
December 31, 2020
Total capital to risk weighted assets	$	150,397	13.49	%	$	89,207	8.00	%	$	110,115	9.875	%	$	111,509	10.00	%
Tier 1 (Core) capital to risk weighted assets		136,446	12.24	%		66,906	6.00	%		87,814	7.875	%		89,207	8.00	%
Common Tier 1 (CET1) to risk weighted assets		136,446	12.24	%		50,179	4.50	%		71,087	6.375	%		72,481	6.50	%
Tier 1 (Core) Capital to average assets		136,446	8.16	%		66,891	4.00	%		N/A	N/A			83,613	5.00	%

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Subsequent Events

6 Months Ended

Jun. 30, 2021

Subsequent Events

Subsequent Events

Note 11 — Subsequent Events

On August 9, 2021, the Company completed an initial public offering (“IPO”) of its common stock and sold 1,150,000 shares of common stock at the public offering price of $33.50 per share, including 150,000 shares of common stock sold pursuant to the underwriters' overallotment option, which was exercised in full. The IPO resulted in gross proceeds of $38.5 million. The net proceeds to the Company, after deducting the underwriting discount and offering expenses is estimated at $35.3 million.

Nature of Operations and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations and Principles of Consolidation	Nature of Operations and Principles of Consolidation: The unaudited consolidated financial statements include Orange County Bancorp, Inc., a Delaware bank holding company (“Orange County Bancorp”) and its wholly owned subsidiaries: Orange Bank & Trust Company, a New York trust company (the “Bank”) and Hudson Valley Investment Advisors (“HVIA”), a Registered Investment Advisor, together referred to as “the Company.” Intercompany transactions and balances are eliminated in consolidation. The Company provides commercial and consumer banking services to individuals, small businesses and local municipal governments as well as trust and investment services through the Bank and HVIA. The Company is headquartered in Middletown, New York, with eight locations in Orange County, New York, five in Westchester County, New York and one in Rockland County, New York. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial and residential mortgage loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the areas in which they operate. Assets held by the Company in an agency or fiduciary capacity for its customers are excluded from the consolidated financial statements since they do not constitute assets of the Company. Assets held by the Company amounted to $1,237,523 and $1,189,119 at June 30, 2021 and December 31, 2020, respectively. Certain information and footnote disclosures normally included in the audited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, included herein for the year ended December 31, 2020 for Orange County Bancorp, Inc. contained in the Company’s definitive prospectus dated August 4, 2021 as filed with the Securities and Exchange Commission pursuant to Securities Act Rule 424(b)(4) on August 5, 2021. In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting solely of normal and recurring accruals) necessary to present fairly the financial position as of June 30, 2021, the results of operations, comprehensive income, stockholders’ equity for the three and six months ended June 30, 2021 and 2020 and cash flow statements for the six months ended June 30, 2021 and 2020. The results of operations for any interim period are not necessarily indicative of the results that may be expected for the full year or for any future period.
Risk and Uncertainties	Risk and Uncertainties: On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to spread throughout the United States and around the world. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. The COVID-19 pandemic has adversely affected, and continues to adversely affect economic activity globally, nationally and locally. Actions taken around the world to help mitigate the spread of COVID-19 include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. COVID-19 and actions taken to mitigate the spread of it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the New York metropolitan area in which the Company primarily operates. Although the Company has been able to continue operations while taking steps to ensure the safety of employees and customers, COVID-19 could also potentially create widespread business continuity issues for the Company. This could cause the Company to experience a material adverse effect on business operations, asset valuations, financial condition and results of operations. Material adverse impacts may include all or a combination of valuation impairments on the Company’s intangible assets, investments, and loans.
Use of Estimates	Use of Estimates: To prepare financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.
Recent Accounting Pronouncements	Recent Accounting Pronouncements: On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2018-14, Compensation — Retirement Benefits Topic 715-20. This ASU amends Accounting Standards Codification (“ASC”) 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The ASU eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year, and also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. The adoption of the ASU did not have a significant impact on the Company’s consolidated financial statements. In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments — Credit Losses Topic 326: Measurement of Credit Losses on Financial Instruments. The objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. In November 2019, the FASB adopted changes to delay the effective date of ASU 2016-13 to January 2023 for certain entities, including certain Securities and Exchange Commission filers, public business entities, and private companies. As a result, the Company is eligible for the delay and will adopt the ASU effective January 1, 2023. The Company is currently working with a third-party vendor in the development of certain methodologies and modeling techniques that will be implemented to accommodate this adoption. It is expected that the modeling of the new accounting standard will be run in parallel with the Company’s current incurred loss methodology throughout 2022 in an effort to evaluate and inform the potential impact the adoption of ASU 2016-13 will have on its consolidated financial statements and results of operations.

Investment Securities (Tables)

6 Months Ended

Jun. 30, 2021

Investment Securities

Schedule of amortized cost and fair value of investment securities


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available-for-sale June 30, 2021
U.S. government agencies	$	78,372	$	985	$	(922)	$	78,435
Mortgage-backed securities		201,426		2,044		(1,743)		201,727
Corporate Securities		13,093		262		(5)		13,350
Obligations of states and political subdivisions		82,305		2,073		(152)		84,226
Total debt securities	$	375,196	$	5,364	$	(2,822)	$	377,738


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available-for-sale December 31, 2020
U.S. government agencies	$	82,409	$	1,394	$	(382)	$	83,421
Mortgage-backed securities		157,408		3,633		(257)		160,784
Corporate Securities		10,603		57		(33)		10,627
Obligations of states and political subdivisions		73,421		1,883		(31)		75,273
Total debt securities	$	323,841	$	6,967	$	(703)	$	330,105

Schedule of sales of securities gains and losses


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Proceeds	$	—	$	21,285	$	—	$	21,285

Gross realized gains	$	—	$	736	$	—	$	736
Gross realized losses				(150)				(150)
Net gain on sales of securities		—		586		—		586
Tax provision on realized net gains and loss		—		123		—		123
Net gain on sales of securities, after tax	$	—	$	463	$	—	$	463

Schedule of contractual maturities of debt securities


	Available-for-sale
	Amortized		Fair
	Cost		Value
Due in one year or less	$	11,510	$	11,551
Due after one through five years		8,768		8,864
Due after five through ten years		53,408		53,647
Due after ten years		100,084		101,949
		173,770		176,011
Mortgage-backed securities		201,426		201,727
Total debt securities	$	375,196	$	377,738

Schedule of securities with unrealized and unrecognized losses


	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Available-for-sale June 30, 2021
U.S. government agencies	$	27,164	$	(693)	$	14,596	$	(229)	$	41,760	$	(922)
Mortgage-backed securities		93,119		(1,724)		2,052		(19)		95,171		(1,743)
Corporate Securities		3,572		(5)		—		—		3,572		(5)
Obligations of states and political subdivisions		10,164		(152)		—		—		10,164		(152)
Total debt securities	$	134,019	$	(2,574)	$	16,648	$	(248)	$	150,667	$	(2,822)


	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Available-for-sale December 31, 2020
U.S. government agencies	$	17,948	$	(52)	$	20,779	$	(330)	$	38,727	$	(382)
Mortgage-backed securities		35,580		(208)		1,887		(49)		37,467		(257)
Corporate Securities		1,551		(33)		—		—		1,551		(33)
Obligations of states and political subdivisions		15,373		(31)		—		—		15,373		(31)
Total debt securities	$	70,452	$	(324)	$	22,666	$	(379)	$	93,118	$	(703)

Loans (Tables)

6 Months Ended

Jun. 30, 2021

Loans

Schedule of loans


	June 30, 2021		December 31, 2020
Commercial and industrial	$	346,727	$	299,049
Commercial real estate		781,074		698,130
Commercial real estate construction		66,781		63,544
Residential real estate		62,274		57,941
Home equity		13,057		13,960
Consumer		16,972		20,114
Total	$	1,286,885	$	1,152,738

Schedule of activity in the allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method

The following table presents the activity in the allowance for loan losses by portfolio segment for each of the three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30, 2021
	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
Allowance for loan losses:

Beginning balance	$	5,015	$	9,545	$	1,002	$	346	$	65	$	310	$	16,283
Provision for loan losses		(72)		1,039		(54)		(45)		(5)		(54)		809
Charge-offs		(89)		(60)		—		—		—		(2)		(151)
Recoveries		92		12		—		—		—		4		108
Ending balance	$	4,946	$	10,536	$	948	$	301	$	60	$	258	$	17,049


	Six Months Ended June 30, 2021
	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
Allowance for loan losses:

Beginning balance	$	4,795	$	9,782	$	801	$	381	$	77	$	336	$	16,172
Provision for loan losses		77		844		147		(80)		(17)		(96)		875
Charge-offs		(105)		(103)		—		—		—		(7)		(215)
Recoveries		179		13		—		—		—		25		217
Ending balance	$	4,946	$	10,536	$	948	$	301	$	60	$	258	$	17,049


	Three Months Ended June 30, 2020
	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
Allowance for loan losses:
Beginning balance	$	4,687	$	7,555	$	600	$	386	$	55	$	198	$	13,481
Provision for loan losses		847		272		142		49		15		(15)		1,310
Charge-offs		(689)		—		—		(15)		—		(20)		(724)
Recoveries		—		1		—		—		—		4		5
Ending balance	$	4,845	$	7,828	$	742	$	420	$	70	$	167	$	14,072


	Six Months Ended June 30, 2020
	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
Allowance for loan losses:
Beginning balance	$	5,107	$	5,951	$	713	$	384	$	43	$	77	$	12,275
Provision for loan losses		421		1,875		29		51		27		107		2,510
Charge-offs		(689)		—		—		(15)		—		(23)		(727)
Recoveries		6		2		—		—		—		6		14
Ending balance	$	4,845	$	7,828	$	742	$	420	$	70	$	167	$	14,072


	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
June 30, 2021
Allowance for loan losses:
Ending balance:
individually evaluated for impairment	$	451	$	1,304	$	—	$	3	$	—	$	26	$	1,784
collectively evaluated for impairment		4,495		9,232		948		298		60		232		15,265
Total ending allowance balance	$	4,946	$	10,536	$	948	$	301	$	60	$	258	$	17,049
Loans:
Ending balance:
individually evaluated for impairment	$	2,820	$	25,677	$	—	$	1,243	$	—	$	119	$	29,859
collectively evaluated for impairment		343,907		755,397		66,781		61,031		13,057		16,853		1,257,026
Total ending loans balance	$	346,727	$	781,074	$	66,781	$	62,274	$	13,057	$	16,972	$	1,286,885


	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
December 31, 2020
Allowance for loan losses:
Ending balance:
individually evaluated for impairment	$	206	$	1,084	$	—	$	15	$	—	$	27	$	1,332
collectively evaluated for impairment		4,589		8,698		801		366		77		309		14,840
Total ending allowance balance	$	4,795	$	9,782	$	801	$	381	$	77	$	336	$	16,172
Loans:
Ending balance:
individually evaluated for impairment	$	2,410	$	19,759	$	—	$	1,358	$	—	$	124	$	23,651
collectively evaluated for impairment		296,639		678,371		63,544		56,583		13,960		19,990		1,129,087
Total ending loans balance	$	299,049	$	698,130	$	63,544	$	57,941	$	13,960	$	20,114	$	1,152,738

Schedule of average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans

The following table presents loans individually evaluated for impairment recognized by class of loans as of June 30, 2021 and December 31, 2020:


	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
	Balance		Investment		Allocated
June 30, 2021
With no related allowance recorded
Commercial and industrial	$	339	$	339	$	—
Commercial real estate		10,510		9,209		—
Commercial real estate construction		—		—		—
Residential real estate		1,168		1,168		—
Home equity		—		—		—
Consumer		—		—		—
Total	$	12,017	$	10,716	$	—
With an allowance recorded:
Commercial and industrial	$	2,481	$	2,481	$	451
Commercial real estate		16,959		16,468		1,304
Commercial real estate construction		—		—		—
Residential real estate		86		75		3
Home equity		—		—		—
Consumer		119		119		26
Total	$	19,645	$	19,143	$	1,784


	Unpaid				Allowance for
	Principal		Recorded		Loan Losses
	Balance		Investment		Allocated
December 31, 2020
With no related allowance recorded
Commercial and industrial	$	331	$	331	$	—
Commercial real estate		10,621		9,248		—
Commercial real estate construction		—		—		—
Residential real estate		1,148		1,148		—
Home equity		—		—		—
Consumer		—		—		—
Total	$	12,100	$	10,727	$	—
With an allowance recorded:
Commercial and industrial	$	2,079	$	2,079	$	206
Commercial real estate		11,001		10,511		1,084
Commercial real estate construction		—		—		—
Residential real estate		219		210		15
Home equity		—		—		—
Consumer		124		124		27
Total	$	13,423	$	12,924	$	1,332


	Three Months Ended				Three Months Ended
	June 30, 2021				June 30, 2020
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized⁽¹⁾		Investment		Recognized⁽¹⁾
With no related allowance recorded
Commercial and industrial	$	330	$	4	$	10	$	1
Commercial real estate		9,186		108		2,269		32
Commercial real estate construction		578		—		—		—
Residential real estate		594		8		—		—
Home equity		—		—		—		—
Consumer		—		—		—		—
Total	$	10,688	$	120	$	2,279	$	33
With an allowance recorded:
Commercial and industrial	$	2,928	$	40	$	3,193	$	46
Commercial real estate		16,499		198		14,563		198
Commercial real estate construction		—		—		—		—
Residential real estate		76		—		219		1
Home equity		—		—		43		—
Consumer		121		2		129		2
Total	$	19,624	$	240	$	18,147	$	247

(1) Cash basis interest income approximates interest income recognized.


	Six Months Ended				Six Months Ended
	June 30, 2021				June 30, 2020
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized⁽¹⁾		Investment		Recognized⁽¹⁾
With no related allowance recorded
Commercial and industrial	$	335	$	9	$	12	$	—
Commercial real estate		9,228		216		1,800		52
Commercial real estate construction		578		—		—		—
Residential real estate		596		16		—		—
Home equity		—		—		—		—
Consumer		—		—		—		—
Total	$	10,737	$	241	$	1,812	$	52
With an allowance recorded:
Commercial and industrial	$	3,023	$	83	$	3,271	$	94
Commercial real estate		16,524		396		14,597		397
Commercial real estate construction		—		—		—		—
Residential real estate		77		—		221		3
Home equity		—		—		44		1
Consumer		122		3		130		3
Total	$	19,746	$	482	$	18,263	$	498

(1)	Cash basis interest income approximates interest income recognized.

Schedule of recorded investment in non-accrual and loans past due over 90 days still on accrual by class of loans


					Loans Past Due Over 90 Days
	Non-accrual				Still Accruing
	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Commercial and industrial	$	5	$	—	$	337	$	457
Commercial real estate		1,345		1,345		—		—
Commercial real estate construction		—		—		—		—
Residential real estate		653		657		1		2
Home equity		—		—		—		—
Consumer		—		—		126		61
Total	$	2,003	$	2,002	$	464	$	520

Schedule of aging of the recorded investment in past-due loans


	30-59 Days		60-89 Days		Greater Than		Total		Loans
	Past Due		Past Due		90 Days		Past Due		Not Past Due
June 30, 2021
Commercial and industrial	$	155	$	59	$	337	$	551	$	346,176
Commercial real estate		—		—		1,345		1,345		779,729
Commercial real estate construction		—		—		—		—		66,781
Residential real estate		—		29		579		608		61,666
Home equity		50		—		—		50		13,007
Consumer		114		233		126		473		16,499
Total	$	319	$	321	$	2,387	$	3,027	$	1,283,858


	30-59 Days		60-89 Days		Greater Than		Total		Loans
	Past Due		Past Due		90 Days		Past Due		Not Past Due
December 31, 2020
Commercial and industrial	$	123	$	201	$	457	$	781	$	298,268
Commercial real estate		—		—		1,345		1,345		696,785
Commercial real estate construction		—		—		—		—		63,544
Residential real estate		570		—		580		1,150		56,791
Home equity		—		—		—		—		13,960
Consumer		132		272		61		465		19,649
Total	$	825	$	473	$	2,443	$	3,741	$	1,148,997

Schedule of composition of these loans by loan segments


	June 30, 2021			December 31, 2020
		Unpaid			Unpaid
	Number of	Principal		Number of	Principal
	Loans	Balance		Loans	Balance
Commercial and industrial	5	$	746	9	$	3,390
Commercial real estate	8		11,669	19	$	44,782
Consumer	—		—	1		596
Total	13	$	12,415	29	$	48,768

Schedule of risk category of loans by class of loans


			Special
	Pass		Mention		Substandard		Doubtful		Loss		Total
June 30, 2021
Commercial and industrial	$	340,051	$	3,856	$	2,820	$	—	$	—	$	346,727
Commercial real estate		761,759		926		18,389		—		—		781,074
Commercial real estate construction		66,781		—		—		—		—		66,781
Residential real estate		61,106		—		1,168		—		—		62,274
Home equity		13,057		—		—		—		—		13,057
Consumer		16,853		—		119		—		—		16,972
Total	$	1,259,607	$	4,782	$	22,496	$	—	$	—	$	1,286,885


			Special
	Pass		Mention		Substandard		Doubtful		Loss		Total
December 31, 2020
Commercial and industrial	$	293,763	$	3,023	$	2,263	$	—	$	—	$	299,049
Commercial real estate		685,808		4,164		8,158		—		—		698,130
Commercial real estate construction		63,544		—		—		—		—		63,544
Residential real estate		56,793		—		1,148		—		—		57,941
Home equity		13,960		—		—		—		—		13,960
Consumer		19,990		—		124		—		—		20,114
Total	$	1,133,858	$	7,187	$	11,693	$	—	$	—	$	1,152,738

Fair Value (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value

Summary of assets and liabilities measured at fair value


			Fair Value Measurements Using:
			Quoted Prices in
			Active Markets		Significant Other		Significant
	Total at		for Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
	2021		(Level 1)		(Level 2)		(Level 3)
U.S. government agencies	$	78,435	$	—	$	78,435	$	—
Mortgage-backed securities		201,727		—		201,727		—
Corporate securities		13,350		—		13,350		—
Obligations of states and political subdivisions		84,226		—		84,226		—
Total securities available-for-sale	$	377,738	$	—	$	377,738	$	—

There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2021.


			Fair Value Measurements Using:
			Quoted Prices in
			Active Markets		Significant Other		Significant
	Total at		for Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2020		(Level 1)		(Level 2)		(Level 3)
U.S. government agencies		83,421	$	—	$	83,421	$	—
Mortgage-backed securities		160,784		—		160,784		—
Corporate securities		10,627		—		10,627		—
Obligations of states and political subdivisions		75,273		—		75,273		—
Total securities available-for-sale	$	330,105	$	—	$	330,105	$	—

Schedule of assets measured at fair value on a non-recurring

Fair Value Measurements Using:

Quoted Prices

Significant

in Active

Other

Significant

Total at

Markets for

Observable

Unobservable

June 30, 2021

Identical Assets

Inputs

(Level 1)

(Level 2)

(Level 3)

Impaired loans

6,534

—

6,534

Schedule of level 3 fair value measured at fair value on a non-recurring


	Fair Value				Range
June 30, 2021	Value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	6,534	Appraisal of collateral (1)	Appraisal and liquidation	38-56%
				adjustments (2)	(38%)

(1) Fair value is generally determined through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable.

Summary of carrying amounts and estimated fair values of financial instruments


	June 30, 2021
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	322,919	$	322,919	$	322,919	$	—	$	—
Loans, net		1,269,836		1,272,674		—		—		1,272,674
Accrued interest receivable		7,090		7,090		—		1,451		5,639
Restricted investment in bank stocks		2,109		NA		—		—		—
Financial liabilities:
Deposits		1,871,665		1,871,803		1,784,168		87,635		—
Note payable		3,000		3,064		—		3,064		—
Subordinated notes, net of issuance costs		19,358		19,061		—		19,061		—
Accrued interest payable		291		291		—		291		—


	December 31, 2020
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	121,232	$	121,232	$	121,232	$	—	$	—
Loans, net		1,136,566		1,139,472		—		—		1,139,472
Accrued interest receivable		6,295		6,295		—		1,389		4,906
Restricted investment in bank stocks		1,449		NA		—		—		—
Financial liabilities:
Deposits		1,489,294		1,489,615		1,398,095		91,520		—
Note payable		3,000		3,087		—		3,087		—
Subordinated notes, net of issuance costs		19,323		19,758		—		19,758		—
Accrued interest payable		307		307		—		307		—

Deposits (Tables)

6 Months Ended

Jun. 30, 2021

Deposits

Summary of analysis of deposits


	June 30, 2021		December 31, 2020
Non-interest bearing demand accounts	$	652,767	$	521,093
Interest-bearing demand accounts		300,340		236,951
Money market accounts		642,177		483,044
Savings accounts		189,154		157,007
Certificates of Deposit		87,227		91,199
Total deposits	$	1,871,665	$	1,489,294

Schedule of maturities of time deposits


2021	$	52,036
2022		27,864
2023		5,610
2024		1,717
	$	87,227

Pension Plan and Stock Compensation (Tables)

6 Months Ended

Jun. 30, 2021

Pension Plan and Stock Compensation

Schedule of components of net periodic benefit cost


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Service cost	$	47	$	35	$	94	$	70
Interest cost		190		230		380		460
Expected return on plan assets		(515)		(465)		(1,030)		(930)
Amortization of transition cost		(12)		(12)		(24)		(24)
Amortization of net loss		5		28		10		56
Net periodic benefit cost/(income)	$	(285)	$	(184)	$	(570)	$	(368)

Summary of restricted stock awards activity


		Weighted
		Average Fair
	Shares	Value
Non-vested at beginning of period	25,369	$	28.78
Granted	15,162	$	28.75
Vested	(12,701)	$	28.43
Forfeited	(2,036)	$	28.99
Non-vested at end of period	25,794	$	28.92

Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss).

Summary of changes in accumulated other comprehensive income (loss)

The following is a summary of changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30, 2021
	Unrealized
	Gains and
	Losses on				Deferred
	Available-for-		Defined Benefit		Compensation
	Sale Securities		Pension Items		Liability		Total
Beginning balance	$	573	$	(3,277)	$	145	$	(2,559)
Other comprehensive income/(loss) before reclassification		1,436		—		(4)		1,432
Less amounts reclassified from accumulated other comprehensive income		—		11		—		11
Net current period other comprehensive income/(loss)		1,436		11		(4)		1,443
Ending balance	$	2,009	$	(3,266)	$	141	$	(1,116)


	Six Months Ended June 30, 2021
	Unrealized
	Gains and
	Losses on				Deferred
	Available-for-		Defined Benefit		Compensation
	Sale Securities		Pension Items		Liability		Total
Beginning balance	$	4,949	$	(3,277)	$	147	$	1,819
Other comprehensive income/(loss) before reclassification		(2,940)		—		(6)		(2,946)
Less amounts reclassified from accumulated other comprehensive income		—		11		—		11
Net current period other comprehensive income/(loss)		(2,940)		11		(6)		(2,935)
Ending balance	$	2,009	$	(3,266)	$	141	$	(1,116)


	Three Months Ended June 30, 2020
	Unrealized
	Gains and
	Losses on				Deferred
	Available-for-		Defined Benefit		Compensation
	Sale Securities		Pension Items		Liability		Total
Beginning balance	$	4,223	$	(4,642)	$	156	$	(263)
Other comprehensive income/(loss) before reclassification		1,043		—		(4)		1,039
Less amounts reclassified from accumulated other comprehensive income		(463)		—		—		(463)
Net current period other comprehensive income/(loss)		580		—		(4)		576
Ending balance	$	4,803	$	(4,642)	$	152	$	313


	Six Months Ended June 30, 2020
	Unrealized
	Gains and
	Losses on				Deferred
	Available-for-		Defined Benefit		Compensation
	Sale Securities		Pension Items		Liability		Total
Beginning balance	$	439	$	(4,642)	$	159	$	(4,044)
Other comprehensive income/(loss) before reclassification		4,827		—		(7)		4,820
Less amounts reclassified from accumulated other comprehensive income		(463)		—		—		(463)
Net current period other comprehensive income/(loss)		4,364		—		(7)		4,357
Ending balance	$	4,803	$	(4,642)	$	152	$	313

Summary of significant amounts reclassified out of each component of accumulated other comprehensive income (loss)


									Affected Line Item in the Statement where
	Amount Reclassified from Accumulated Other Comprehensive Income								Net Income is Presented
	Three Months Ended June 30,				Six Months Ended June 30,
Details about Accumulated Other Comprehensive Income Components	2021		2020		2021		2020
Unrealized gains and losses on available-for-sale securities
Realized (losses) gains on securities available-for-sale	$	—	$	586	$	—	$	586	Investment security gains (losses)
Total before tax		—		586		—		586
Tax effect		—		123		—		123	Provision for income taxes
Net of tax	$	—	$	463	$	—	$	463

Amortization of defined benefit pension items
Transition asset	$	(24)	$	—	$	(24)	$	—	Other expense
Actuarial gains (losses)		10		—		10		—	Other expense
Total before tax		(14)		—		(14)		—
Tax effect		(3)		—		(3)		—	Provision for income taxes
Net of tax	$	(11)	$	—	$	(11)	$	—

Total reclassifications for the period, net of tax	$	(11)	$	463	$	(11)	$	463

Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contracts with Customers

Schedule of noninterest income


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Noninterest Income
Service charges on deposit accounts	$	158	$	117	$	333	$	325
Trust income		1,184		918		2,307		1,956
Investment advisory income		1,235		997		2,411		1,898
Investment securities gains (losses)^(a)		—		586		—		586
Earnings on bank owned life insurance^(a)		173		182		344		347
Other^(b)		278		206		524		435
Total Noninterest Income	$	3,028	$	3,006	$	5,919	$	5,547

(a)	Not within the scope of ASC 606.

(b)

Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Segment Information

Schedule of segment information


	At June 30, 2021						At December 31, 2020
	Banking		Wealth Management		Total Segments		Banking		Wealth Management		Total Segments

Total assets	$	2,043,970	$	8,262	$	2,052,232	$	1,656,517	$	8,419	$	1,664,936


	For the three months ended June 30, 2021						For the six months ended June 30, 2021
	Banking		Wealth Management		Total Segments		Banking		Wealth Management		Total Segments
Net interest income	$	14,632	$	—	$	14,632	$	28,372	$	—	$	28,372
Noninterest income		609		2,419		3,028		1,201		4,718		5,919
Provision for loan loss		(809)		—		(809)		(875)		—		(875)
Noninterest expenses		(8,723)		(1,678)		(10,401)		(17,395)		(3,321)		(20,716)
Income tax expense		(1,101)		(156)		(1,257)		(2,189)		(293)		(2,482)
Net income	$	4,608	$	585	$	5,193	$	9,114	$	1,104	$	10,218


	For the three months ended June 30, 2020						For the six months ended June 30, 2020
	Banking		Wealth Management		Total Segments		Banking		Wealth Management		Total Segments
Net interest income	$	11,781	$	—	$	11,781	$	23,135	$	—	$	23,135
Noninterest income		1,091		1,915		3,006		1,693		3,854		5,547
Provision for loan loss		(1,310)		—		(1,310)		(2,510)		—		(2,510)
Noninterest expenses		(8,451)		(1,453)		(9,904)		(16,535)		(2,960)		(19,495)
Income tax expense		(598)		(97)		(695)		(1,135)		(188)		(1,323)
Net income	$	2,513	$	365	$	2,878	$	4,648	$	706	$	5,354

Regulatory Capital Matters (Tables)

6 Months Ended

Jun. 30, 2021

Regulatory Capital Matters

Schedule of actual and required capital amounts and ratios

Actual and required capital amounts and ratios are presented below at June 30, 2021 and December 31, 2020 for the Bank.


													To be Well Capitalized
					For Capital Adequacy				For Capital Adequacy				under Prompt
	Actual				Purposes				Purposes with Capital Buffer				Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
June 30, 2021
Total capital to risk weighted assets	$	164,333	13.38	%	$	98,254	8.00	%	$	121,282	9.875	%	$	122,817	10.00	%
Tier 1 (Core) capital to risk weighted assets		148,957	12.13	%		73,690	6.00	%		96,719	7.875	%		98,254	8.00	%
Common Tier 1 (CET1) to risk weighted assets		148,957	12.13	%		55,268	4.50	%		78,296	6.375	%		79,831	6.50	%
Tier 1 (Core) Capital to average assets		148,957	7.56	%		78,845	4.00	%		N/A	N/A			98,556	5.00	%
December 31, 2020
Total capital to risk weighted assets	$	150,397	13.49	%	$	89,207	8.00	%	$	110,115	9.875	%	$	111,509	10.00	%
Tier 1 (Core) capital to risk weighted assets		136,446	12.24	%		66,906	6.00	%		87,814	7.875	%		89,207	8.00	%
Common Tier 1 (CET1) to risk weighted assets		136,446	12.24	%		50,179	4.50	%		71,087	6.375	%		72,481	6.50	%
Tier 1 (Core) Capital to average assets		136,446	8.16	%		66,891	4.00	%		N/A	N/A			83,613	5.00	%

Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Nature of Operations and Summary of Significant Accounting Policies
Assets held in an agency or fiduciary capacity	$ 1,237,523	$ 1,189,119

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
Investment Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost			$ 375,196	$ 323,841
Unrealized Gains			5,364	6,967
Unrealized Losses			(2,822)	(703)
Fair Value			377,738	330,105
Proceeds	$ 21,285	$ 21,285
U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost			78,372	82,409
Unrealized Gains			985	1,394
Unrealized Losses			(922)	(382)
Fair Value			78,435	83,421
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost			201,426	157,408
Unrealized Gains			2,044	3,633
Unrealized Losses			(1,743)	(257)
Fair Value			201,727	160,784
Corporate securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost			13,093	10,603
Unrealized Gains			262	57
Unrealized Losses			(5)	(33)
Fair Value			13,350	10,627
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost			82,305	73,421
Unrealized Gains			2,073	1,883
Unrealized Losses			(152)	(31)
Fair Value			$ 84,226	$ 75,273

Investment Securities - Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Investment Securities
Proceeds	$ 21,285	$ 21,285
Gross realized gains	736	736
Gross realized losses	(150)	(150)
Net gain on sales of securities	586	586
Tax provision on realized net gains and loss	123	123
Net gain on sales of securities, after tax	$ 463	$ 463

Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Amortized Cost
Due in one year or less, Amortized Cost	$ 11,510
Due after one through five years, Amortized Cost	8,768
Due after five through ten years, Amortized Cost	53,408
Due after ten years, Amortized Cost	100,084
Total, Amortized Cost	173,770
Mortgage-backed securities	201,426
Amortized Cost	375,196	$ 323,841
Fair Value
Due in one year or less, Fair Value	11,551
Due after one through five years, Fair Value	8,864
Due after five through ten years, Fair Value	53,647
Due after ten years, Fair Value	101,949
Total, Fair Value	176,011
Mortgage-backed securities	201,727
Total debt securities, Fair Value	377,738	330,105
Mortgage-backed securities
Amortized Cost
Amortized Cost	201,426	157,408
Fair Value
Total debt securities, Fair Value	201,727	160,784
Debt securities pledged as collateral	$ 233,737	$ 121,233

Investment Securities - Securities with unrealized and unrecognized losses (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	$ 134,019	$ 70,452
Fair Value, 12 Months or More	16,648	22,666
Fair Value, Total	150,667	93,118
Unrealized Losses, Less than 12 Months	(2,574)	(324)
Unrealized Losses, 12 Months or More	(248)	(379)
Unrealized Losses, Total	(2,822)	(703)
U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	27,164	17,948
Fair Value, 12 Months or More	14,596	20,779
Fair Value, Total	41,760	38,727
Unrealized Losses, Less than 12 Months	(693)	(52)
Unrealized Losses, 12 Months or More	(229)	(330)
Unrealized Losses, Total	(922)	(382)
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	93,119	35,580
Fair Value, 12 Months or More	2,052	1,887
Fair Value, Total	95,171	37,467
Unrealized Losses, Less than 12 Months	(1,724)	(208)
Unrealized Losses, 12 Months or More	(19)	(49)
Unrealized Losses, Total	(1,743)	(257)
Corporate securities
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	3,572	1,551
Fair Value, Total	3,572	1,551
Unrealized Losses, Less than 12 Months	(5)	(33)
Unrealized Losses, Total	(5)	(33)
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	10,164	15,373
Fair Value, Total	10,164	15,373
Unrealized Losses, Less than 12 Months	(152)	(31)
Unrealized Losses, Total	$ (152)	$ (31)

Investment Securities - Narrative (Details) $ in Thousands	6 Months Ended	12 Months Ended
Investment Securities - Narrative (Details) $ in Thousands	Jun. 30, 2021 USD ($) security	Dec. 31, 2020 USD ($) security
Investment Securities
Other than temporary impairment loss recognized \| $	$ 0	$ 0
Number of securities in portfolio	224	196
Number of unrealized loss positions	50	36

Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,286,885	$ 1,152,738
Commercial and industrial. \| Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	346,727	299,049
Commercial and industrial. \| Paycheck Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	108,711	68,974
Commercial real estate. \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	781,074	698,130
Commercial real estate. \| Commercial real estate construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	66,781	63,544
Residential real estate. \| Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	62,274	57,941
Residential real estate. \| Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	13,057	13,960
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 16,972	$ 20,114

Loans - Allowance for loan losses by portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Allowance for loan losses:
Beginning balance	$ 16,283	$ 13,481	$ 16,172	$ 12,275
Provision for loan losses	809	1,310	875	2,510
Charged-off	(151)	(724)	(215)	(727)
Recoveries	108	5	217	14
Ending balance	17,049	14,072	17,049	14,072
Allowance for loan losses:
individually evaluated for impairment	1,784		1,784		$ 1,332
collectively evaluated for impairment	15,265		15,265		14,840
Total ending allowance balance	17,049	14,072	17,049	14,072	16,172
Loans:
individually evaluated for impairment	29,859		29,859		23,651
collectively evaluated for impairment	1,257,026		1,257,026		1,129,087
Total ending loans balance	1,286,885		1,286,885		1,152,738
Commercial and industrial. \| Commercial and industrial
Allowance for loan losses:
Beginning balance	5,015	4,687	4,795	5,107
Provision for loan losses	(72)	847	77	421
Charged-off	(89)	(689)	(105)	(689)
Recoveries	92		179	6
Ending balance	4,946	4,845	4,946	4,845
Allowance for loan losses:
individually evaluated for impairment	451		451		206
collectively evaluated for impairment	4,495		4,495		4,589
Total ending allowance balance	4,946	4,845	4,946	4,845	4,795
Loans:
individually evaluated for impairment	2,820		2,820		2,410
collectively evaluated for impairment	343,907		343,907		296,639
Total ending loans balance	346,727		346,727		299,049
Commercial and industrial. \| Paycheck Protection Program
Loans:
Total ending loans balance	108,711		108,711		68,974
Commercial real estate. \| Commercial real estate
Allowance for loan losses:
Beginning balance	9,545	7,555	9,782	5,951
Provision for loan losses	1,039	272	844	1,875
Charged-off	(60)		(103)
Recoveries	12	1	13	2
Ending balance	10,536	7,828	10,536	7,828
Allowance for loan losses:
individually evaluated for impairment	1,304		1,304		1,084
collectively evaluated for impairment	9,232		9,232		8,698
Total ending allowance balance	10,536	7,828	10,536	7,828	9,782
Loans:
individually evaluated for impairment	25,677		25,677		19,759
collectively evaluated for impairment	755,397		755,397		678,371
Total ending loans balance	781,074		781,074		698,130
Commercial real estate. \| Commercial real estate construction
Allowance for loan losses:
Beginning balance	1,002	600	801	713
Provision for loan losses	(54)	142	147	29
Ending balance	948	742	948	742
Allowance for loan losses:
collectively evaluated for impairment	948		948		801
Total ending allowance balance	948	742	948	742	801
Loans:
collectively evaluated for impairment	66,781		66,781		63,544
Total ending loans balance	66,781		66,781		63,544
Residential real estate. \| Residential real estate
Allowance for loan losses:
Beginning balance	346	386	381	384
Provision for loan losses	(45)	49	(80)	51
Charged-off		(15)		(15)
Ending balance	301	420	301	420
Allowance for loan losses:
individually evaluated for impairment	3		3		15
collectively evaluated for impairment	298		298		366
Total ending allowance balance	301	420	301	420	381
Loans:
individually evaluated for impairment	1,243		1,243		1,358
collectively evaluated for impairment	61,031		61,031		56,583
Total ending loans balance	62,274		62,274		57,941
Residential real estate. \| Home equity
Allowance for loan losses:
Beginning balance	65	55	77	43
Provision for loan losses	(5)	15	(17)	27
Ending balance	60	70	60	70
Allowance for loan losses:
collectively evaluated for impairment	60		60		77
Total ending allowance balance	60	70	60	70	77
Loans:
collectively evaluated for impairment	13,057		13,057		13,960
Total ending loans balance	13,057		13,057		13,960
Consumer
Allowance for loan losses:
Beginning balance	310	198	336	77
Provision for loan losses	(54)	(15)	(96)	107
Charged-off	(2)	(20)	(7)	(23)
Recoveries	4	4	25	6
Ending balance	258	167	258	167
Allowance for loan losses:
individually evaluated for impairment	26		26		27
collectively evaluated for impairment	232		232		309
Total ending allowance balance	258	$ 167	258	$ 167	336
Loans:
individually evaluated for impairment	119		119		124
collectively evaluated for impairment	16,853		16,853		19,990
Total ending loans balance	$ 16,972		$ 16,972		$ 20,114

Loans - Loans individually evaluated (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Unpaid Principal Balance
With no related allowance recorded	$ 12,017		$ 12,017		$ 12,100
With an allowance recorded	19,645		19,645		13,423
Recorded Investment
With no related allowance recorded	10,716		10,716		10,727
With an allowance recorded	19,143		19,143		12,924
Allowance for Loan Losses Allocated	1,784		1,784		1,332
Average Recorded Investment
With no related allowance recorded	10,688	$ 2,279	10,737	$ 1,812
With an allowance recorded	19,624	18,147	19,746	18,263
Interest Income Recognized
With no related allowance recorded	120	33	241	52
With an allowance recorded	240	247	482	498
Commercial and industrial.
Unpaid Principal Balance
With an allowance recorded					2,079
Recorded Investment
With an allowance recorded					2,079
Allowance for Loan Losses Allocated					206
Commercial and industrial. \| Commercial and industrial
Unpaid Principal Balance
With no related allowance recorded	339		339		331
With an allowance recorded	2,481		2,481
Recorded Investment
With no related allowance recorded	339		339		331
With an allowance recorded	2,481		2,481
Allowance for Loan Losses Allocated	451		451
Average Recorded Investment
With no related allowance recorded	330	10	335	12
With an allowance recorded	2,928	3,193	3,023	3,271
Interest Income Recognized
With no related allowance recorded	4	1	9
With an allowance recorded	40	46	83	94
Commercial real estate.
Unpaid Principal Balance
With an allowance recorded					11,001
Recorded Investment
With an allowance recorded					10,511
Allowance for Loan Losses Allocated					1,084
Commercial real estate. \| Commercial real estate
Unpaid Principal Balance
With no related allowance recorded	10,510		10,510		10,621
With an allowance recorded	16,959		16,959
Recorded Investment
With no related allowance recorded	9,209		9,209		9,248
With an allowance recorded	16,468		16,468
Allowance for Loan Losses Allocated	1,304		1,304
Average Recorded Investment
With no related allowance recorded	9,186	2,269	9,228	1,800
With an allowance recorded	16,499	14,563	16,524	14,597
Interest Income Recognized
With no related allowance recorded	108	32	216	52
With an allowance recorded	198	198	396	397
Commercial real estate. \| Commercial real estate construction
Average Recorded Investment
With no related allowance recorded	578		578
Residential real estate.
Unpaid Principal Balance
With an allowance recorded					219
Recorded Investment
With an allowance recorded					210
Allowance for Loan Losses Allocated					15
Residential real estate. \| Residential real estate
Unpaid Principal Balance
With no related allowance recorded	1,168		1,168		1,148
With an allowance recorded	86		86
Recorded Investment
With no related allowance recorded	1,168		1,168		1,148
With an allowance recorded	75		75
Allowance for Loan Losses Allocated	3		3
Average Recorded Investment
With no related allowance recorded	594		596
With an allowance recorded	76	219	77	221
Interest Income Recognized
With no related allowance recorded	8		16
With an allowance recorded		1		3
Residential real estate. \| Home equity
Average Recorded Investment
With an allowance recorded		43		44
Interest Income Recognized
With an allowance recorded				1
Consumer
Unpaid Principal Balance
With an allowance recorded	119		119		124
Recorded Investment
With an allowance recorded	119		119		124
Allowance for Loan Losses Allocated	26		26		$ 27
Average Recorded Investment
With an allowance recorded	121	129	122	130
Interest Income Recognized
With an allowance recorded	$ 2	$ 2	$ 3	$ 3

Loans - Recorded investment in non-accrual and loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loans
Non-accrual	$ 2,003	$ 2,002
Loans Past Due Over 90 Days Non-accrual Still Accruing	464	520
Commercial and industrial. \| Commercial and industrial
Loans
Non-accrual	5
Loans Past Due Over 90 Days Non-accrual Still Accruing	337	457
Commercial real estate. \| Commercial real estate
Loans
Non-accrual	1,345	1,345
Residential real estate. \| Residential real estate
Loans
Non-accrual	653	657
Loans Past Due Over 90 Days Non-accrual Still Accruing	1	2
Consumer
Loans
Loans Past Due Over 90 Days Non-accrual Still Accruing	$ 126	$ 61

Loans - Aging of the recorded investment (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	$ 3,027	$ 3,741
Loans Not Past Due	1,283,858	1,148,997
30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	319	825
60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	321	473
Greater Than 90 Days
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	2,387	2,443
Commercial and industrial. \| Commercial and industrial
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	551	781
Loans Not Past Due	346,176	298,268
Commercial and industrial. \| Commercial and industrial \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	155	123
Commercial and industrial. \| Commercial and industrial \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	59	201
Commercial and industrial. \| Commercial and industrial \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	337	457
Commercial real estate. \| Commercial real estate
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	1,345	1,345
Loans Not Past Due	779,729	696,785
Commercial real estate. \| Commercial real estate \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	1,345	1,345
Commercial real estate. \| Commercial real estate construction
Financing Receivable, Recorded Investment, Aging [Abstract]
Loans Not Past Due	66,781	63,544
Residential real estate. \| Residential real estate
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	608	1,150
Loans Not Past Due	61,666	56,791
Residential real estate. \| Residential real estate \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		570
Residential real estate. \| Residential real estate \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	29
Residential real estate. \| Residential real estate \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	579	580
Residential real estate. \| Home equity
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	50
Loans Not Past Due	13,007	13,960
Residential real estate. \| Home equity \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	50
Consumer
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	473	465
Loans Not Past Due	16,499	19,649
Consumer \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	114	132
Consumer \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	233	272
Consumer \| Greater Than 90 Days
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	$ 126	$ 61

Loans - Troubled debt restructurings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Loans
Loans in process of foreclosure	$ 1,925		$ 1,925		$ 578
Recorded investment in troubled debt restructurings	15,082		15,082		15,951
Allocated specific allowance	851		851		918
Commitments to lend additional funds	0		0		$ 0
Loans restructured loans that defaulted	$ 0	$ 0	$ 0	$ 0
Loans modified resulting in TDRs	0	0	0	0
Period of time loans are not past due in which TDR loans are performing			30 days

Loans - Composition of loans by loan segments (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) loan	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) loan
Loans
Number of Loans	0	0	0	0
Unpaid Principal Balance	$ 15,082		$ 15,082		$ 15,951
Covid 19 related modifications
Loans
Number of Loans			13		29
Unpaid Principal Balance	12,415		$ 12,415		$ 48,768
Commercial and industrial. \| Commercial and industrial \| Covid 19 related modifications
Loans
Number of Loans \| loan			5		9
Unpaid Principal Balance	746		$ 746		$ 3,390
Commercial real estate. \| Commercial real estate \| Covid 19 related modifications
Loans
Number of Loans \| loan			8		19
Unpaid Principal Balance	$ 11,669		$ 11,669		$ 44,782
Consumer \| Commercial real estate construction \| Covid 19 related modifications
Loans
Number of Loans \| loan					1
Unpaid Principal Balance					$ 596

Loans - Risk category of loans by class of loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loans
Loans	$ 1,286,885	$ 1,152,738
Pass
Loans
Loans	1,259,607	1,133,858
Special Mention
Loans
Loans	4,782	7,187
Substandard
Loans
Loans	22,496	11,693
Commercial and industrial. \| Commercial and industrial
Loans
Loans	346,727	299,049
Commercial and industrial. \| Commercial and industrial \| Pass
Loans
Loans	340,051	293,763
Commercial and industrial. \| Commercial and industrial \| Special Mention
Loans
Loans	3,856	3,023
Commercial and industrial. \| Commercial and industrial \| Substandard
Loans
Loans	2,820	2,263
Commercial real estate. \| Commercial real estate
Loans
Loans	781,074	698,130
Commercial real estate. \| Commercial real estate \| Pass
Loans
Loans	761,759	685,808
Commercial real estate. \| Commercial real estate \| Special Mention
Loans
Loans	926	4,164
Commercial real estate. \| Commercial real estate \| Substandard
Loans
Loans	18,389	8,158
Commercial real estate. \| Commercial real estate construction
Loans
Loans	66,781	63,544
Commercial real estate. \| Commercial real estate construction \| Pass
Loans
Loans	66,781	63,544
Residential real estate. \| Residential real estate
Loans
Loans	62,274	57,941
Residential real estate. \| Residential real estate \| Pass
Loans
Loans	61,106	56,793
Residential real estate. \| Residential real estate \| Substandard
Loans
Loans	1,168	1,148
Residential real estate. \| Home equity
Loans
Loans	13,057	13,960
Residential real estate. \| Home equity \| Pass
Loans
Loans	13,057	13,960
Consumer
Loans
Loans	16,972	20,114
Consumer \| Pass
Loans
Loans	16,853	19,990
Consumer \| Substandard
Loans
Loans	$ 119	$ 124

Loans - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loans
Loans	$ 1,286,885	$ 1,152,738
Directors and principal officers of the Company, including their immediate families
Loans
Loans	$ 4,094	$ 5,392

Fair Value - Assets and liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non TDR impaired loans	$ 1,784	$ 1,332
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	377,738	330,105
Recurring \| U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	78,435	83,421
Recurring \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	201,727	160,784
Recurring \| Corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	13,350	10,627
Recurring \| Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	84,226	75,273
Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	377,738	330,105
Recurring \| Level 2 \| U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	78,435	83,421
Recurring \| Level 2 \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	201,727	160,784
Recurring \| Level 2 \| Corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	13,350	10,627
Recurring \| Level 2 \| Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	$ 84,226	$ 75,273

Fair Value - Non-recurring (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Reserves allocated to impaired loans	$ 1,784	$ 1,332
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	6,534
Level 3 \| Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	6,534
Reserves allocated to impaired loans	$ 286

Fair Value - Level 3 (Details) - Fair Value, Nonrecurring [Member] $ in Thousands	Jun. 30, 2021 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 6,534
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	6,534
Level 3 \| Appraisal of Collateral [Member] \| Measurement Input, Appraisal And Liquidation Adjustment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 6,534
Level 3 \| Appraisal of Collateral [Member] \| Measurement Input, Appraisal And Liquidation Adjustment [Member] \| Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, Measurement input	38
Level 3 \| Appraisal of Collateral [Member] \| Measurement Input, Appraisal And Liquidation Adjustment [Member] \| Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, Measurement input	56
Level 3 \| Appraisal of Collateral [Member] \| Measurement Input, Appraisal And Liquidation Adjustment [Member] \| Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, Measurement input	38

Fair Value -Carrying amounts and estimated fair values (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Carrying Amount
Financial assets:
Cash and due from banks	$ 322,919	$ 121,232
Loans, net	1,269,836	1,136,566
Accrued interest receivable	7,090	6,295
Restricted investment in bank stocks	2,109	1,449
Financial liabilities:
Deposits	1,871,665	1,489,294
Note payable	3,000	3,000
Subordinated notes, net of issuance costs	19,358	19,323
Accrued interest payable	291	307
Fair Value.
Financial assets:
Cash and due from banks	322,919	121,232
Loans, net	1,272,674	1,139,472
Accrued interest receivable	7,090	6,295
Financial liabilities:
Deposits	1,871,803	1,489,615
Note payable	3,064	3,087
Subordinated notes, net of issuance costs	19,061	19,758
Accrued interest payable	291	307
Fair Value. \| Level 1
Financial assets:
Cash and due from banks	322,919	121,232
Financial liabilities:
Deposits	1,784,168	1,398,095
Fair Value. \| Level 2
Financial assets:
Accrued interest receivable	1,451	1,389
Financial liabilities:
Deposits	87,635	91,520
Note payable	3,064	3,087
Subordinated notes, net of issuance costs	19,061	19,758
Accrued interest payable	291	307
Fair Value. \| Level 3
Financial assets:
Loans, net	1,272,674	1,139,472
Accrued interest receivable	$ 5,639	$ 4,906

Deposits - Analysis of deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Deposits
Non-interest bearing demand accounts	$ 652,767	$ 521,093
Interest-bearing demand accounts	300,340	236,951
Money market accounts	642,177	483,044
Savings accounts	189,154	157,007
Certificates of Deposit	87,227	91,199
Total deposits	1,871,665	1,489,294
Time deposits exceeding FDIC insurance limit of $250	$ 25,204	$ 23,747

Deposits - Scheduled maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Deposits
2021	$ 52,036
2022	27,864
2023	5,610
2024	1,717
Total	87,227
Deposits of executive officers, directors and principal officers	$ 6,576	$ 6,910

Pension Plan and Stock Compensation- Pension Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Pension Plan and Stock Compensation
Service cost	$ 47	$ 35	$ 94	$ 70
Interest cost	190	230	380	460
Expected return on plan assets	(515)	(465)	(1,030)	(930)
Amortization of transition cost	(12)	(12)	(24)	(24)
Amortization of net loss	5	28	10	56
Net periodic benefit cost/(income)	$ (285)	$ (184)	$ (570)	$ (368)

Pension Plan and Stock Compensation - Stock Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Pension Plan and Stock Compensation
Stock-based compensation costs			$ 69	$ 129
Restricted stock expense			$ 262	$ 189
Restricted Stock Awards
Pension Plan and Stock Compensation
Stock-based compensation costs	$ 162	$ 102
Granted			15,162,000	14,532,000
Vesting percentage			33.00%
Unamortized expense	$ 436		$ 436
Shares
Non-vested at beginning of period (in shares)			25,369
Granted (in shares)			15,162
Vested (in shares)			(12,701)
Forfeited (in shares)			(2,036)
Non-vested at end of period (in shares)	25,794		25,794
Weighted Average Fair Value
Non-vested at beginning of period (in dollars per share)			$ 28.78
Granted (in dollars per share)			28.75
Vested (in dollars per share)			28.43
Forfeited (in dollars per share)			28.99
Non-vested at end of period (in dollars per share)	$ 28.92		$ 28.92

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 135,081	$ 127,488	$ 135,423	$ 122,063
Net current period other comprehensive income/(loss)	1,443	576	(2,935)	4,357
Ending balance	140,911	129,796	140,911	129,796
Unrealized gains and losses on available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	573	4,223	4,949	439
Other comprehensive income/(loss) before reclassification	1,436	1,043	(2,940)	4,827
Less amounts reclassified from accumulated other comprehensive income		(463)		(463)
Net current period other comprehensive income/(loss)	1,436	580	(2,940)	4,364
Ending balance	2,009	4,803	2,009	4,803
Amortization of defined benefit pension
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(3,277)	(4,642)	(3,277)	(4,642)
Less amounts reclassified from accumulated other comprehensive income	11		11
Net current period other comprehensive income/(loss)	11		11
Ending balance	(3,266)	(4,642)	(3,266)	(4,642)
Deferred Compensation Liability
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	145	156	147	159
Other comprehensive income/(loss) before reclassification	(4)	(4)	(6)	(7)
Net current period other comprehensive income/(loss)	(4)	(4)	(6)	(7)
Ending balance	141	152	141	152
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(2,559)	(263)	1,819	(4,044)
Other comprehensive income/(loss) before reclassification	1,432	1,039	(2,946)	4,820
Less amounts reclassified from accumulated other comprehensive income	11	(463)	11	(463)
Net current period other comprehensive income/(loss)	1,443	576	(2,935)	4,357
Ending balance	$ (1,116)	$ 313	$ (1,116)	$ 313

- Definition

+ References + Details

Accumulated Other Comprehensive Income (Loss) - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss)
Investment securities gains		$ 586		$ 586
Other expense	$ 626	197	$ 1,199	1,020
Other income	278	206	524	435
Total before tax	6,450	3,573	12,700	6,677
Provision for income taxes	1,257	695	2,482	1,323
Net of tax	5,193	2,878	10,218	5,354
Reclassifications of of accumulated other comprehensive income (loss) \| Unrealized gains and losses on available-for-sale securities
Accumulated Other Comprehensive Income (Loss)
Investment securities gains		586		586
Total before tax		586		586
Provision for income taxes		123		123
Net of tax		463		463
Reclassifications of of accumulated other comprehensive income (loss) \| Amortization of defined benefit pension
Accumulated Other Comprehensive Income (Loss)
Other expense	(24)		(24)
Other income	10		10
Total before tax	(14)		(14)
Provision for income taxes	(3)		(3)
Net of tax	(11)		(11)
Reclassifications of of accumulated other comprehensive income (loss) \| Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Net of tax	$ (11)	$ 463	$ (11)	$ 463

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Noninterest Income
Service charges on deposit accounts	$ 158	$ 117	$ 333	$ 325
Trust income	1,184	918	2,307	1,956
Investment advisory income	1,235	997	2,411	1,898
Investment securities (gains) losses		586		586
Earnings on bank owned life insurance	173	182	344	347
Other	278	206	524	435
Noninterest income	3,028	3,006	5,919	5,547
Other noninterest income within the scope of ASC 606	206	142	392	305
Other noninterest income outside the scope of ASC 606	$ 72	$ 64	$ 132	$ 130

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Segment Information
Total assets	$ 2,052,232		$ 2,052,232		$ 1,664,936
Net interest income	14,632	$ 11,781	28,372	$ 23,135
Noninterest income	3,028	3,006	5,919	5,547
Provision for loan loss	(809)	(1,310)	(875)	(2,510)
Noninterest expenses	(10,401)	(9,904)	(20,716)	(19,495)
Income tax expense	(1,257)	(695)	(2,482)	(1,323)
NET INCOME	5,193	2,878	10,218	5,354
Banking
Segment Information
Total assets	2,043,970		2,043,970		1,656,517
Net interest income	14,632	11,781	28,372	23,135
Noninterest income	609	1,091	1,201	1,693
Provision for loan loss	(809)	(1,310)	(875)	(2,510)
Noninterest expenses	(8,723)	(8,451)	(17,395)	(16,535)
Income tax expense	(1,101)	(598)	(2,189)	(1,135)
NET INCOME	4,608	2,513	9,114	4,648
Wealth Management
Segment Information
Total assets	8,262		8,262		$ 8,419
Noninterest income	2,419	1,915	4,718	3,854
Noninterest expenses	(1,678)	(1,453)	(3,321)	(2,960)
Income tax expense	(156)	(97)	(293)	(188)
NET INCOME	$ 585	$ 365	$ 1,104	$ 706

Regulatory Capital Matters (Details) $ in Thousands	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Regulatory Capital Matters
Capital conservation buffer ratio	2.5
Total capital to risk weighted assets
Total capital to risk weighted assets, Actual amount	$ 164,333	$ 150,397
Total capital to risk weighted assets, Actual ratio	13.38	13.49
Total capital to risk weighted assets, For Capital Adequacy Purposes	$ 98,254	$ 89,207
Total capital to risk weighted assets, For Capital Adequacy Purposes Ratio	8.00	8.00
Total capital to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer	$ 121,282	$ 110,115
Total capital to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer Ratio	9.875	9.875
Total capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions	$ 122,817	$ 111,509
Total capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio	10.00	10.00
Tier 1 (Core) capital to risk weighted assets
Tier 1 (Core) capital to risk weighted assets, Actual amount	$ 148,957	$ 136,446
Tier 1 (Core) capital to risk weighted assets, Actual ratio	12.13	12.24
Tier 1 (Core) capital to risk weighted assets, For Capital Adequacy Purposes	$ 73,690	$ 66,906
Tier 1 (Core) capital to risk weighted assets, For Capital Adequacy Purposes Ratio	6.00	6.00
Tier 1 (Core) capital to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer	$ 96,719	$ 87,814
Tier 1 (Core) capital to risk weighted assets, Actual amount	7.875	7.875
Tier 1 (Core) capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions	$ 98,254	$ 89,207
Tier 1 (Core) capital to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio	8.00	8.00
Common Tier 1 (CET1) to risk weighted assets
Common Tier 1 (CET1) to risk weighted assets, Actual amount	$ 148,957	$ 136,446
Common Tier 1 (CET1) to risk weighted assets, Actual ratio	12.13	12.24
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes	$ 55,268	$ 50,179
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes Ratio	4.50	4.50
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer	$ 78,296	$ 71,087
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes with Capital Buffer Ratio	6.375	6.375
Common Tier 1 (CET1) to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions	$ 79,831	$ 72,481
Common Tier 1 (CET1) to risk weighted assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio	6.50	6.50
Tier 1 (Core) Capital to average assets
Tier 1 (Core) Capital to average assets, Actual amount	$ 148,957	$ 136,446
Tier 1 (Core) Capital to average assets, Actual ratio	7.56	8.16
Tier 1 (Core) Capital to average assets, For Capital Adequacy Purposes	$ 78,845	$ 66,891
Tier 1 (Core) Capital to average assets, For Capital Adequacy Purposes Ratio	4.00	4.00
Tier 1 (Core) Capital to average assets, To be Well Capitalized under Prompt Corrective Action Provisions	$ 98,556	$ 83,613
Tier 1 (Core) Capital to average assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio	5.00	5.00

Subsequent Events (Details) - Subsequent Events $ / shares in Units, $ in Millions	Aug. 09, 2021 USD ($) $ / shares shares
Subsequent Event [Line Items]
Number of shares sold \| shares	1,150,000
Offering price \| $ / shares	$ 33.50
Gross proceeds \| $	$ 38.5
Underwriting discount and offering expenses \| $	$ 35.3
Over-Allotment Option
Subsequent Event [Line Items]
Number of shares sold \| shares	150,000