0001558370-22-004719 | 10-K | XBRL Viewer | Orange County Bancorp INC DE

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CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
ASSETS
Cash and due from banks	$ 306,179	$ 121,232
Investment securities - available-for-sale	464,797	330,105
Restricted investment in bank stocks	2,217	1,449
Loans	1,291,428	1,152,738
Allowance for loan losses	(17,661)	(16,172)
Loans, net	1,273,767	1,136,566
Net Premises and equipment	14,601	14,017
Accrued interest receivable	6,643	6,295
Bank owned life insurance	39,513	28,520
Goodwill	5,359	5,359
Intangible assets	1,678	1,963
Other assets	27,829	19,430
TOTAL ASSETS	2,142,583	1,664,936
Deposits:
Noninterest bearing	701,645	521,093
Interest bearing	1,212,739	968,201
Total deposits	1,914,384	1,489,294
Note payable	3,000	3,000
Subordinated notes, net of issuance costs	19,376	19,323
Accrued expenses and other liabilities	22,987	17,896
TOTAL LIABILITIES	1,959,747	1,529,513
STOCKHOLDERS' EQUITY
Common stock, $0.50 par value; 15,000,000 shares authorized; 5,683,304 and 4,533,304 issued; 5,637,376 and 4,483,102 outstanding, at December 31, 2021 and December 31, 2020, respectively	2,842	2,266
Surplus	119,825	85,111
Retained Earnings	64,941	47,683
Accumulated other comprehensive income (loss), net of taxes	(3,443)	1,819
Treasury stock, at cost; 45,928 and 50,202 shares at December 31, 2021 and December 31, 2020, respectively	(1,329)	(1,456)
TOTAL STOCKHOLDERS' EQUITY	182,836	135,423
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,142,583	$ 1,664,936

CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
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)	5,683,304	4,533,304
Common stock, Outstanding (in shares)	5,637,376	4,483,102
Treasury stock (in shares)	45,928	50,202

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
INTEREST INCOME
Interest and fees on loans	$ 57,524	$ 47,522
Interest on investment securities:
Taxable	4,901	4,651
Tax exempt	1,632	994
Interest on Federal funds sold and other	372	294
TOTAL INTEREST INCOME	64,429	53,461
INTEREST EXPENSE
Savings and NOW accounts	2,370	3,389
Time deposits	511	917
FHLB advances		10
Note payable	168	160
Subordinated notes	919	246
TOTAL INTEREST EXPENSE	3,968	4,722
NET INTEREST INCOME	60,461	48,739
Provision for loan losses	2,428	5,413
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	58,033	43,326
NONINTEREST INCOME
Service charges on deposit accounts	638	682
Trust income	4,788	4,074
Investment advisory income	4,853	4,105
Investment securities gains		804
Earnings on bank owned life insurance	793	702
Other	1,030	1,056
TOTAL NONINTEREST INCOME	12,102	11,423
NONINTEREST EXPENSE
Salaries	19,710	17,788
Employee benefits	3,257	4,163
Occupancy expense	4,058	3,744
Professional fees	3,649	3,318
Directors' fees and expenses	1,041	1,088
Computer software expense	5,168	4,038
FDIC assessment	1,198	910
Advertising expenses	1,220	1,191
Advisor expenses related to trust income	533	455
Telephone expenses	556	552
Intangible amortization	285	286
Other	2,783	2,698
TOTAL NONINTEREST EXPENSE	43,458	40,231
Income before income taxes	26,677	14,518
Provision for income taxes	5,390	2,839
NET INCOME	$ 21,287	$ 11,679
Basic earnings per share (in dollars per share)	$ 4.28	$ 2.59
Diluted earnings per share (in dollars per share)	$ 4.28	$ 2.59
Weighted average shares outstanding, Basic (in shares)	4,968,692	4,508,508
Weighted average shares outstanding, Diluted (in shares)	4,968,692	4,508,508

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net Income	$ 21,287	$ 11,679
Unrealized gains/losses on securities:
Unrealized holding gains/(losses) arising during the period	(7,620)	6,512
Reclassification adjustment for (gains)/losses included in net income		(804)
Tax effect	(1,599)	1,198
Net of tax	(6,021)	4,510
Defined benefit pension plans:
Net gain arising during the period	1,002	1,664
Reclassification adjustment for amortization of prior service cost and net gains included in net periodic pension cost	(27)	65
Tax effect	204	364
Net of tax	771	1,365
Deferred compensation liability:
Unrealized loss	(16)	(15)
Tax effect	(4)	(3)
Net of tax	(12)	(12)
Total other comprehensive income/(loss)	(5,262)	5,863
Total comprehensive income	$ 16,025	$ 17,542

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			11,679			11,679
Other comprehensive income, net of taxes				5,863		5,863
Cash dividends declared			(3,585)			(3,585)
Issue of restricted stock		(442)			442
Treasury stock purchased					(1,164)	(1,164)
Restricted stock expense		413				413
Stock-based compensation		(38)			192	154
Ending 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			21,287			21,287
Other comprehensive income, net of taxes				(5,262)		(5,262)
Cash dividends declared			(4,029)			(4,029)
Issue of restricted stock		(436)			436
Treasury stock purchased					(379)	(379)
Restricted stock expense		475				475
Stock-based compensation		(1)			70	69
Issuance of stock offering, net of costs	576	34,676				35,252
Ending balance at Dec. 31, 2021	$ 2,842	$ 119,825	$ 64,941	$ (3,443)	$ (1,329)	$ 182,836

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Cash dividends declared per share	$ 0.80	$ 0.80
Restricted stock issued (in shares)	15,162	14,532
Treasury stock purchased (in shares)	13,292	41,201
Stock-based compensation (in shares)	2,404	5,382
Proceeds of common stock (in shares)	1,150,000

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Net income	$ 21,287	$ 11,679
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	2,428	5,413
Depreciation	1,375	1,274
Accretion on loans	(5,590)	(2,843)
Amortization of intangibles	285	286
Amortization of subordinated notes issuance costs	69
Deferred income tax provision (benefit)	(403)	(260)
Investment securities (gains) losses		(804)
Restricted stock expense	475	413
Stock-based compensation	69	154
Net amortization of investment premiums	2,028	2,329
Earnings on bank owned life insurance	(793)	(702)
Net change in:
Accrued interest receivable	(349)	(3,093)
Other assets	(5,641)	(4,029)
Other liabilities	5,080	1,527
Net cash from operating activities	20,320	11,344
Cash flows from investing activities
Purchases of investment securities available-for-sale	(258,225)	(218,813)
Proceeds from sales and paydowns of investment securities available-for-sale	84,275	100,947
Proceeds from maturities and calls of investment securities available-for-sale	29,608	46,860
(Purchase) proceeds of restricted investment in bank stocks	(783)	25
Proceeds from redemptions of restricted investment in bank stocks	15
Loan purchased	(8,232)	(43,305)
Net increase in loans	(125,806)	(215,982)
Additions to premises and equipment	(1,959)	(692)
Purchase of bank owned life insurance	(10,200)
Net cash used by investing activities	(291,307)	(330,960)
Cash flows from financing activities
Net increase in deposits	425,090	406,162
Net change in FHLB overnight advances		(5,000)
Issuance of subordinated notes, net of issuance costs		19,323
Proceeds of issuance of stock offering , net of costs	35,252
Cash dividends paid	(4,029)	(3,585)
Purchases of treasury stock	(379)	(1,164)
Net cash from financing activities	455,934	415,736
Net change in cash and cash equivalents	184,947	96,120
Beginning cash and cash equivalents	121,232	25,112
Ending cash and cash equivalents	306,179	121,232
Supplemental cash flow information:
Interest paid	4,025	4,616
Income taxes paid	3,715	3,015
Supplemental noncash disclosures:
Lease liabilities arising from obtaining right-of-use assets	$ 3,038	$ 1,930

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Nature of Operations and Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 1 — Summary of Significant Accounting Policies

Nature of Operations and Principles of Consolidation: The consolidated financial statements include Orange County Bancorp, Inc. (the “Company”) and its wholly owned subsidiaries: Orange Bank & 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, seven in Westchester County, New York, two in Rockland County, New York and one in Bronx County, New York. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial & industrial and residential mortgage loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial & industrial 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 $1,325,894 and $1,189,119 at December 31, 2021 and 2020, respectively.

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.

Cash Flows: Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, restricted investment in bank stocks, and short-term FHLB advances.

Securities: Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities not classified as held to maturity are classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method.

Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings.

For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis.

Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on loans is discontinued and placed on non-accrual status at the time the loan is 120 days (in the case of residential mortgage loans) or 90 days (in the case of commercial loans) delinquent unless the loan is well-secured and in process of collection. Loans are charged off to the extent principal or interest is deemed uncollectible. Secured consumer loans, except those secured by the borrower’s primary or secondary residence, are charged off upon becoming 180 days past due, or whenever collection is doubtful, whichever occurs first. All unsecured consumer loans are charged off when they become 180 days delinquent or if it is determined that the debt is uncollectible, whichever occurs first. Past-due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Non-accrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

All interest accrued but not received for loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Concentration of Credit Risk: Most of the Company’s business activity is with customers located within the New York counties of Orange, Westchester and Rockland. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in these counties. The Company’s largest loan segment is non-owner occupied commercial real estate. Property types within this segment include: multi- family properties, retail properties, and general construction loans. Regionally, commercial real estate loans are concentrated within the Company’s primary operating footprint, including Orange, Westchester, and Rockland counties. Commercial and industrial loans are concentrated in Orange County, New York and outside of the Company’s core market, primarily as a result of purchased loans. While industry exposure is widely dispersed, the Company does have a significant concentration of commercial and industrial loans within the healthcare and social assistance industry.

Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off.

The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are

considered troubled debt restructurings (“TDRs”) and classified as impaired. Refer to Note 3 for discussion on loan modifications made under the guidelines of the CARES Act.

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

All criticized and classified consumer mortgages, commercial loans, and commercial real estate loans are reviewed to determine impairment status. Minimally, loans in which the borrower has filed bankruptcy; loans in non-accrual status; or loans that are considered TDRs would be considered impaired. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. A specific allocation within the allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Bank’s impaired loans are measured based on the estimated fair value of the loan’s collateral.

For commercial loans secured by real estate, estimated fair values of collateral are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property.

For commercial and industrial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging reports, equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets.

TDRs are individually evaluated for impairment and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of the allowance on that loan in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. The Company incorporates recent historical experience related to TDRs including the performance of TDRs that subsequently default into the calculation of the allowance by loan portfolio segment.

The general component covers loans that are collectively evaluated for impairment. Large groups of smaller balance homogeneous loans, such as consumer, are collectively evaluated for impairment, and accordingly, they are not included in the separately identified impairment disclosures. The general allowance component also includes loans that are not individually identified for impairment evaluation, such as those loans that are individually evaluated but are not considered impaired. The general component is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 4 years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans (including TDRs); levels of and trends in charge-offs and recoveries; migration of loans to the classification of special mention, substandard, or doubtful; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentration.

In addition, federal regulatory agencies and the New York State Department of Financial Services, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management.

The loan portfolio is segmented into commercial and industrial, commercial real estate, commercial real estate construction, residential real estate, home equity, and consumer loans.

Commercial and Industrial Lending: The Bank originates commercial and industrial loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes which include short-term loans and lines of credit to finance machinery and equipment purchases, inventory and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and may be renewed annually.

Commercial and industrial loans are generally secured with short-term assets; however, in many cases, additional collateral such as real estate is provided as additional security for the loan. Loan-to-value maximum values have been established by the Bank and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, collateral appraisals, etc.

In underwriting commercial and industrial loans, an analysis of the borrower’s character, capacity to repay the loan, the adequacy of the borrower’s capital and collateral as well as an evaluation of conditions affecting the borrower is performed. Analysis of the borrower’s past, present and future cash flows is also an important aspect of the Bank’s analysis.

Commercial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions.

During 2020, the Bank participated in the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) created under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”).

The PPP provided funds to guarantee forgivable loans originated by depository institutions to eligible small businesses through the SBA’s 7(a) loan guaranty program. These loans are 100% federally guaranteed (principal and interest) and currently not subject to any allocation of allowance for loan losses. An eligible business could apply under the PPP during the applicable covered period and receive a loan up to 2.5 times its average monthly “payroll costs” limited to a loan amount of $10.0 million. The proceeds of the loan could be used for payroll (excluding individual employee compensation over $100,000 per year), mortgage, interest, rent, insurance, utilities and other qualifying expenses. PPP loans have: (a) an interest rate of 1.0%,

(b)

a two-year loan term (or five-year loan term for loans made after June 5, 2020) to maturity; and

(c)

principal and interest payments deferred until the date on which the SBA remits the loan forgiveness amount to the borrower’s lender or, alternatively, notifies the lender no loan forgiveness is allowed. If the borrower did not submit a loan forgiveness application to the lender within 10 months following the end of the 24-week loan forgiveness covered period (or the 8-week loan forgiveness covered period with respect to loans made prior to June 5, 2020 if such covered period is elected by the borrower), the borrower would begin paying principal and interest on the PPP loan immediately after the 10-month period.

On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (the “Economic Aid Act”) became law. Among other things, the Economic Aid Act extended the PPP through May 31, 2021 and allocated additional funds for new PPP loans, to be guaranteed by the SBA. The extension included an authorization to make new PPP loans to existing PPP loan borrowers, and to make loans to parties that did not previously obtain a PPP

loan. The Company is participating in the newly extended PPP and will originate loans under the extended program. Loans originated under the extended PPP will have substantially the same terms as existing PPP loans, with a five year loan term.

Commercial Real Estate Lending — The Bank engages in commercial real estate lending in its primary market area and surrounding areas. The Bank’s commercial loan portfolio is secured primarily by commercial retail space and office buildings. Generally, commercial real estate loans have maturities that do not exceed 15 years, amortization provisions that do not exceed 30 years, have loan-to-value ratios of up to 75% of the appraised value of the property, and are typically credit enhanced by personal guarantees of the borrowers.

In underwriting these loans, the Bank performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. Appraisals on properties securing commercial real estate loans originated by the Bank are performed by independent appraisers.

Commercial real estate loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions.

Commercial Real Estate Construction Lending: The Bank engages in commercial real estate construction lending in its primary market area and surrounding areas. The Bank’s commercial real estate construction lending consists of commercial and residential site development loans as well as commercial building construction and residential housing construction loans.

The Bank’s commercial real estate construction loans are generally secured with the subject property.

Terms of construction loans depend on the specifics of the project such as estimated absorption rates, estimated time to complete, etc.

In underwriting commercial real estate construction loans, the Bank performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, the reliability and predictability of the cash flow generated by the project using feasibility studies, market data, etc.

Appraisals on properties securing commercial real estate construction loans originated by the Bank are performed by independent appraisers.

Commercial real estate construction loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and uncertainties of construction costs.

Residential Real Estate Lending: One-to-four-family residential mortgage loan originations are generated by the Bank’s marketing efforts, its present customers, walk-in customers and referrals. These loans originate primarily within the Bank’s market area or with customers primarily from the market area.

The Bank offers fixed-rate loans with terms up to a maximum of 20 years for both permanent structures and those under construction. The Bank’s one- to four-family residential real estate loan originations are secured primarily by properties located in its primary market area and surrounding areas. The majority of the Bank’s residential real estate loans originate with a loan-to-value of 80% or less. Loans in excess of 80% are required to have private mortgage insurance.

In underwriting one- to four-family residential real estate loans, the Bank evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan. Properties securing real estate loans made by the Bank are appraised by independent appraisers. The Bank generally requires borrowers to obtain an attorney’s title

opinion or title insurance, and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. The Bank has not engaged in sub- prime residential mortgage originations.

Residential real estate loans generally present a lower level of risk than other types of loans because they are secured by the borrower’s primary residence.

Home Equity Lending: The Bank originates home equity lines of credit and closed-end loans primarily within the Bank’s market area or with customers primarily from the market area.

Home equity lines and loans are secured by the borrower’s primary residence with a maximum loan-to-value of 85% and a maximum term of 15 years on home equity loans and a 10-year draw period followed by a 15-year repayment period for home equity lines.

In underwriting home equity lines and loans, a thorough analysis of the borrower’s financial ability to repay the loan as agreed is performed. The ability to repay shall be determined by the borrower’s employment history, current financial conditions, and credit background. The analysis is based primarily on the customer’s ability to repay and secondarily on the collateral or security.

Home equity lines and loans generally present a lower level of risk than other types of consumer loans because they are secured by the borrower’s primary residence.

The subordinate nature of some home equity lines and loans may make these loans of higher risk than other residential real estate loans.

Consumer Lending: The Bank offers a variety of secured and unsecured consumer loans, including vehicle, loans secured by savings deposits as well as other types of consumer loans.

Consumer loan terms vary according to the type and value of collateral and creditworthiness of the borrower. In underwriting consumer loans, a thorough analysis of the borrower’s financial ability to repay the loan as agreed is performed. The ability to repay shall be determined by the borrower’s employment history, current financial conditions, and credit background.

Consumer loans may entail greater credit risk than do residential real estate loans particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances.

Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans.

Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Foreclosed Assets: Foreclosed assets are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Physical possession of real estate property collateralizing a mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently

accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed.

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 50 years. Furniture, fixtures and equipment are depreciated using the straight-line (or accelerated) method with useful lives ranging from 3 to 8 years.

Trust and Investment Advisory Income: The Company earns trust revenue and advisory revenue from a variety of sources including fees from trust administration and other related fiduciary services, custody, investment management and advisory services, employee benefit account and IRA administration, estate settlement, tax service fees, shareholder service fees and brokerage. These fees are generally based on asset values and fluctuate with the market. Some revenue is not directly tied to asset value but is based on a flat fee for services provided. For many of our revenue sources, amounts are not received in the same accounting period in which they are earned. However, each source of wealth management fees is recorded on the accrual method of accounting.

Included in other assets on the balance sheet is a receivable for trust fees and advisory fees that have been earned but not yet collected.

Federal Home Loan Bank (FHLB) Stock: The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Federal Reserve Bank (FRB) Stock: The Bank is a member of its regional Federal Reserve Bank. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Bank Owned Life Insurance: The Bank has purchased life insurance policies on certain key executives.

Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets: Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any non-controlling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet.

Intangible assets consist of acquired customer relationship intangible assets arising from wealth management acquisitions and are amortized on a straight lined basis over their estimated useful lives.

Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Stock-Based Compensation: Compensation cost is recognized for restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. The market price of the Company’s common stock at the date of grant is used for restricted stock awards.

Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize forfeitures as they occur.

Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

The Company recognizes interest and/or penalties related to income tax matters in miscellaneous expense.

Retirement Plans: Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service.

Earnings per Common Share: Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends are considered participating securities for this calculation. As of December 31, 2021 and 2020, there are approximately 22,922 and 25,369 in participating securities for these periods. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. The Company currently maintains a simple capital structure, which includes restricted stock with participation rights to dividends, thus there are no dilutive effects on earnings per share.

Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan and deferred compensation, which are also recognized as separate components of equity.

Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements.

Restrictions on Cash: Although requirements were waived during the pandemic, cash on hand or on deposit with the Federal Reserve Bank is typically required to meet regulatory reserve and clearing requirements.

Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders.

Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the

absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Segment Disclosure: The reportable segments are determined by the chief operating decision makers of the Company, and are primarily distinguished between banking and wealth management.

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity.

Recent Accounting Pronouncements: In June, 2016, the 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 CECL effective January 1, 2023. The Company is currently evaluating the potential impact the adoption of ASU 2016-13 will have on its consolidated financial statements and results of operations.

Investment Securities

12 Months Ended

Dec. 31, 2021

Investment Securities

Investment Securities

Note 2 — Investment Securities

The amortized cost and fair value of investment securities at December 31, 2021 and 2020 were as follows:


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available-for-sale December 31, 2021
U.S. government agencies	$	80,596	$	440	$	(1,330)	$	79,706
Mortgage-backed securities		272,931		1,285		(3,784)		270,432
Corporate Securities		20,081		278		(148)		20,211
Obligations of states and political subdivisions		92,545		2,149		(246)		94,448
Total debt securities	$	466,153	$	4,152	$	(5,508)	$	464,797


			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:


	2021		2020
Proceeds	$	—	$	23,238
Gross gains		—		954
Gross losses		—		150

The tax (provision) benefit related to these net realized gains and losses were $0 and $(169) for 2021 and 2020, respectively.

The amortized cost and fair value of debt securities as of December 31, 2021 are shown 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	$	5,152	$	5,199
Due after one through five years		9,236		9,441
Due after five through ten years		57,548		57,141
Due after ten years		121,286		122,584
		193,222		194,365
Mortgage-backed securities		272,931		270,432
Total debt securities	$	466,153	$	464,797

Securities pledged at year-end 2021 and 20 had a carrying amount of $233,907 and $121,233 and were pledged to secure public deposits.

Mortgage-backed securities are issued by FNMA, FHLMC, or GNMA. Obligations of states and political subdivisions consist of general obligations of municipalities in the state of New York.

At year-end 2021 and 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 shareholders’ equity.

The following table summarizes securities with unrealized and unrecognized losses at December 31, 2021 and 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 December 31, 2021
U.S. government agencies	$	10,337	$	(121)	$	32,210	$	(1,209)	$	42,547	$	(1,330)
Mortgage-backed securities		177,506		(3,273)		14,134		(511)		191,640		(3,784)
Corporate Securities		9,354		(148)		—		—		9,354		(148)
Obligations of states and political subdivisions		13,349		(138)		3,298		(108)		16,647		(246)
Total debt securities	$	210,546	$	(3,680)	$	49,642	$	(1,828)	$	260,188	$	(5,508)


	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 December 31, 2021 or 2020.

As of December 31, 2021, the Company’s security portfolio consisted of 252 securities, 78 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 related to the Company’s mortgage backed and U.S. government agency securities as discussed below.

At December 31, 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 December 31, 2021.

The Company’s unrealized losses on U.S. government agency securities relate primarily to its investment in 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 December 31, 2021.

Loans

12 Months Ended

Dec. 31, 2021

Loans

Loans

Note 3 — Loans

Loans at year-end were as follows:


		2021		2020
Commercial and industrial	$	268,508	$	299,049
Commercial real estate		852,707		698,130
Commercial real estate construction		72,250		63,544
Residential real estate		65,248		57,941
Home equity		13,638		13,960
Consumer		19,077		20,114
Total	$	1,291,428	$	1,152,738

Included in commercial and industrial loans as of December 31, 2021 and 2020 were PPP loans of $38.1 million and $69.0 million.

The following table presents the activity in the allowance for loan losses by portfolio segment for each of the years ending December 31, 2021 and 2020:


	Year Ended December 31, 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		828		1,326		163		(98)		3		206		2,428
Charge-offs		(942)		—		—		(11)		—		(314)		(1,267)
Recoveries		220		75		—				—		33		328
Ending balance	$	4,901	$	11,183	$	964	$	272	$	80	$	261	$	17,661


	Year Ended December 31, 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		917		4,046		88		48		34		280		5,413
Charge-offs		(1,239)		(219)		—		(51)		—		(28)		(1,537)
Recoveries		10		4		—		—		—		7		21
Ending balance	$	4,795	$	9,782	$	801	$	381	$	77	$	336	$	16,172

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 December 31, 2021 and 2020:


	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
December 31, 2021
Allowance for loan losses:
Ending balance:
individually evaluated for impairment	$	137	$	1,272	$	—	$	—	$	—	$	24	$	1,433
collectively evaluated for impairment		4,764		9,911		964		272		80		237		16,228
Total ending allowance balance	$	4,901	$	11,183	$	964	$	272	$	80	$	261	$	17,661
Loans:
Ending balance:
individually evaluated for impairment	$	952	$	23,523	$	—	$	1,227	$	50	$	114	$	25,866
collectively evaluated for impairment		267,556		829,184		72,250		64,021		13,588		18,963		1,265,562
Total ending loans balance	$	268,508	$	852,707	$	72,250	$	65,248	$	13,638	$	19,077	$	1,291,428


	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 $38.1 million and $69.0 million as of December 31, 2021 and 2020. PPP loans receivable are guaranteed by the SBA and have no allocation of the allowance for loan losses.

The following table presents information related to impaired loans by class of loans as of and for the year ended December 31, 2021 and 2020:


	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized
December 31, 2021
With no related allowance recorded
Commercial and industrial	$	1	$	1	$	—	$	187	$	11	$	11
Commercial real estate		14,291		13,953		—		12,053		555		555
Commercial real estate construction		—		—		—		578		—		—
Residential real estate		1,155		1,155		—		639		33		33
Home equity		50		50		—		25		—		—
Consumer		—		—		—		—		—		—
Total	$	15,497	$	15,159	$	—	$	13,482	$	599	$	599
With an allowance recorded:
Commercial and industrial	$	951	$	951	$	137	$	1,420	$	82	$	82
Commercial real estate		9,593		9,570		1,272		9,587		357		357
Commercial real estate construction		—		—		—		—		—		—
Residential real estate		84		72		—		76		3		3
Home equity		—		—		—		—		—		—
Consumer		114		114		24		119		6		6
Total	$	10,742	$	10,707	$	1,433	$	11,202	$	448	$	448


	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized
December 31, 2020
With no related allowance recorded
Commercial and industrial	$	331	$	331	$	—	$	169	$	23	$	23
Commercial real estate		10,621		9,248		—		4,937		296		296
Commercial real estate construction		—		—		—		—		—		—
Residential real estate		1,148		1,148		—		574		44		44
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total	$	12,100	$	10,727	$	—	$	5,680	$	363	$	363
With an allowance recorded:
Commercial and industrial	$	2,079	$	2,079	$	206	$	1,287	$	147	$	147
Commercial real estate		11,001		10,511		1,084		11,005		466		466
Commercial real estate construction		—		—		—		—		—		—
Residential real estate		219		210		15		217		5		5
Home equity		—		—		—		—		—		—
Consumer		124		124		27		128		7		7
Total	$	13,423	$	12,924	$	1,332	$	12,637	$	625	$	625

The cash basis income received on the impaired loans is approximately equal to interest income recognized on these loans.

The following tables present the recorded investment in non-accrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2021 and December 31, 2020.


					Loans Past Due Over 90 Days
	Non-accrual				Still Accruing
	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Commercial and industrial	$	—	$	—	$	720	$	457
Commercial real estate		3,928		1,345		465		—
Commercial real estate construction		—		—		—		—
Residential real estate		578		657		—		2
Home equity		50		—		—		—
Consumer		4		—		208		61
Total	$	4,560	$	2,002	$	1,393	$	520

The following table presents the aging of the recorded investment in past-due loans as of December 31, 2021 and 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
December 31, 2021
Commercial and industrial	$	541	$	1,519	$	720	$	2,780	$	265,728
Commercial real estate		—		2,873		1,161		4,034		848,673
Commercial real estate construction		—		—		—		—		72,250
Residential real estate		26		—		578		604		64,644
Home equity		—		58		50		108		13,530
Consumer		1,134		292		212		1,638		17,439
Total	$	1,701	$	4,742	$	2,721	$	9,164	$	1,282,264


	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 December 31, 2021, loans in the process of foreclosure were $2,024 of which $578 were secured by residential real estate. As of December 31, 2020, loans in the process of foreclosure were $1,925 of which $578 were secured by residential real estate.

Troubled Debt Restructuring:

As of December 31, 2021 and 2020, the Company has a recorded investment in TDRs of $14,500 and $15,951 respectively. The Company has allocated $687 and $918 of specific allowance for these loans at December 31, 2021 and

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 twelve months of restructure during 2021 or 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 year ending December 31, 2021 and 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 Company had no COVID-19 modifications as of December 31, 2021.

The following table sets forth the composition of COVID-19 related modified loans by loan segments as of December 31, 2021:


	December 31, 2021			December 31, 2020
		Unpaid			Unpaid
	Number of	Principal		Number of	Principal
	Loans	Balance		Loans	Balance
Commercial and industrial	—	$	—	9	$	3,390
Commercial real estate	—		—	19	$	44,782
Consumer	—		—	1		596
Total	—	$	—	29	$	48,768

Credit Quality Indicators: 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 most recent analysis performed, the risk category of loans by class of loans is as follows:


			Special
	Pass		Mention		Substandard		Doubtful		Loss		Total
December 31, 2021
Commercial and industrial	$	252,268	$	4,156	$	12,084	$	—	$	—	$	268,508
Commercial real estate		835,787		679		16,241		—		—		852,707
Commercial real estate construction		72,250		—		—		—		—		72,250
Residential real estate		64,094		—		1,154		—		—		65,248
Home equity		13,588		50		—		—		—		13,638
Consumer		18,963		—		114		—		—		19,077
Total	$	1,256,950	$	4,885	$	29,593	$	—	$	—	$	1,291,428


			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, had the following activity for the years ended December 31, 2021 and 2020 are as follows:


	2021		2020
Balance, beginning of year	$	5,392	$	5,443
Additions		—		—
Repayments		(316)		(51)
Balance, end of year	$	5,076	$	5,392

Fair Value

12 Months Ended

Dec. 31, 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
	December 31,		Assets		Inputs		Inputs
	2021		(Level 1)		(Level 2)		(Level 3)
U.S. government agencies	$	79,706	$	—	$	79,706	$	—
Mortgage-backed securities		270,432		—		270,432		—
Corporate securities		20,211		—		20,211		—
Obligations of states and political subdivisions		94,448		—		94,448		—
Total securities available-for-sale	$	464,797	$	—	$	464,797	$	—


			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 2021 or 2020.

Assets measured at fair value on a non-recurring basis as of December 31, 2021 are summarized below:

Fair Value Measurements Using:

Quoted Prices in

Active Markets

Significant Other

Significant

Total at

for Identical

Observable

Unobservable

December 31,

Assets

Inputs

2021

(Level 1)

(Level 2)

(Level 3)

Impaired loans

6,689

—

6,689

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 $409 for December 31, 2021. There were no material collateral dependent impaired loans as of December 31, 2020

The following table presents additional quantitative information about level 3 fair value measured at fair value on a non-recurring basis at December31, 2021:


	Fair Value				Range
December 31, 2021	Value		Valuation Technique	Unobservable Input	(Average)
Impaired loans - Primarily Commercial Real Estate	$	6,689	Appraisal of collateral⁽¹⁾	Appraisal and liquidation	20-56	%
				adjustments⁽²⁾	(39)	%

(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.

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


	December 31, 2021
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	306,179	$	306,179	$	306,179	$	—	$	—
Loans, net		1,273,767		1,277,807		—		—		1,277,807
Accrued interest receivable		6,643		6,643		—		1,603		5,040
Restricted investment in bank stocks		2,217		NA		—		—		—
Financial liabilities:
Deposits		1,914,384		1,914,271		1,831,944		82,327		—
Note payable		3,000		3,030		—		3,030		—
Subordinated notes, net of issuance costs		19,376		18,867		—		18,867		—
Accrued interest payable		250		250		—		250		—


	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

Premises and Equipment

12 Months Ended

Dec. 31, 2021

Premises and Equipment

Premises and Equipment

Note 5 — Premises and Equipment

Year-end premises and equipment were as follows:


	2021		2020
Land	$	3,152	$	3,152
Buildings and improvements		12,714		12,727
Furniture and equipment		7,053		6,514
Leasehold improvements		6,737		5,332
		29,656		27,725
Accumulated depreciation and amortization		(15,055)		(13,708)
Premises and equipment, net	$	14,601	$	14,017

Depreciation included in occupancy expense on the Consolidated Statements of Income amounted to $1,375 in 2021 and $1,274 in 2020.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Note 6 — Goodwill and Intangible Assets

Goodwill: The changes in goodwill during the years are as follows:


	2021		2020
Beginning of year	$	5,359	$	5,359
Acquired goodwill impairment		—		—
End of year	$	5,359	$	5,359

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2021, the Company’s reporting unit had positive equity and the Company elected to perform a Step 0 qualitative analysis and concluded that there was no goodwill impairment.

Acquired Intangible Assets: Acquired intangible assets were as follows at year-end:


	Gross
	Intangible		Accumulated
	Asset		Amortization
December 31, 2021
Customer lists and intangible assets	$	4,284	(2,606)
	$	4,284	(2,606)
December 31, 2020
Customer lists and intangible assets	$	4,284	(2,321)
	$	4,284	(2,321)

Aggregate amortization expense was $285 for 2021 and $286 for 2020. Estimated amortization expense for each of the next five years is $286 per year.

Deposits

12 Months Ended

Dec. 31, 2021

Deposits

Deposits

Note 7 — Deposits

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


	December 31, 2021		December 31, 2020
Non-interest bearing demand accounts	$	701,645	$	521,093
Interest-bearing demand accounts		301,596		236,951
Money market accounts		615,111		483,044
Savings accounts		213,592		157,007
Certificates of Deposit		82,440		91,199
Total deposits	$	1,914,384	$	1,489,294

Time deposits that meet or exceed the FDIC insurance limit of $250 at year-end 2021 and 2020 were $23,859 and $23,747, respectively.

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


2021 (matured not renewed)	$	612
2022	$	71,780
2023		6,213
2024		3,835
	$	82,440

Deposits of executive officers, directors and principal officers of the Company, including their immediate families and companies in which they are affiliated, amounted to $6,109 and $6,910 at December 31, 2021 and 2020, respectively.

FHLB Advances

12 Months Ended

Dec. 31, 2021

FHLB Advances

FHLB Advances

Note 8 — FHLB Advances

There were no FHLB advances at December 31, 2021 and 2020.

Additionally, the Company has outstanding municipal letters of credit (“MULOC”) outstanding with FHLB for purposes of securing public funds held by the Company. MULOC outstanding were $135,000 and $119,000 as of December 31, 2021 and 2020, respectively.

At December 31, 2021 the Bank has no securities and $657,788 of loans pledged to FHLB under a blanket lien arrangement. At December 31, 2020 the Bank had no securities and $537,274 of loans pledged to FHLB under a blanket agreement.

Based on the collateral and the Company’s holding of FHLB stock, the Company was eligible to borrow up to an additional total of $358,759 at year-end 2021 and $273,668 at year-end 2020.

Borrowings

12 Months Ended

Dec. 31, 2021

Borrowings

Borrowings

Note 9 — Borrowings

At year-end, the Note Payable was as follows:


	2021				2020
	Amount		Rate		Amount		Rate
Note payable	$	3,000	5.60	%	$	3,000	5.60	%

As part of the acquisition of HVIA, the Company maintains a note payable, with a remaining balance of $3,000 to an interest only term loan. The loan interest is payable in monthly installments of $14 thousand, is unsecured and matures with a scheduled balloon payment on November 16, 2022.

On September 24, 2020, the Company completed a private placement of $20 million in aggregate principal amount of fixed-to-floating rate subordinated notes (“Subordinated Notes”) to certain qualified institutional buyers and accredited institutional investors. In conjunction with the issuance, the Company incurred costs of $694, which are amortized over the life of the borrowings on a level yield basis and are included in interest on subordinated notes on the Consolidated Statements of Income. At December 31, 2021, there were $19.4 million of Subordinated Notes outstanding, which is net of the unamortized issuance costs. The Subordinated Notes have a maturity date of September 30, 2030 and bear interest, payable semi- annually, at the rate of 4.25% per annum, until September 30, 2025. Commencing on that date, the interest rate applicable to the outstanding principal amount due will reset quarterly to an interest rate per annum equal to the then current three-month secured overnight financing rate plus 413 basis points, payable quarterly until maturity. The Company may, at its option, beginning on September 30, 2025, but not prior thereto except upon the occurrence of certain events specified in the Subordinated Notes agreements, redeem the Subordinated Notes, in whole or in part, subject to obtaining any required regulatory approvals.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Pension and other Post Retirement Plans

12 Months Ended

Dec. 31, 2021

Pension and other Post Retirement Plans

Pension and other Post Retirement Plans

Note 10 — Pension and other Post Retirement Plans

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 Company uses December 31 as the measurement date for its pension plans.

Information about changes in obligations and plan assets of the defined benefit pension plan follows:


	2021		2020
Change in projected benefit obligation:
Beginning of year	$	29,428	$	26,665
Service cost		189		141
Interest cost		760		920
Benefits paid		(1,556)		(1,407)
Actuarial loss		(600)		3,109
End of year	$	28,221	$	29,428

Change in fair value of assets:
Beginning of year	$	39,963	$	31,738
Contributions		2,000		3,000
Actual return on plan assets		2,501		6,680
Benefits paid and expenses		(1,597)		(1,455)
End of year	$	42,867	$	39,963


	2021		2020
Funded status at end of year (plan assets less benefit obligation)	$	14,646	$	10,535

Amounts recognized in accumulated other comprehensive income (loss) at December 31 consist of:


	2021		2020
Total net actuarial loss	$	(3,521)	$	(4,544)
Transition asset		28		76
	$	(3,493)	$	(4,468)

The accumulated benefit obligation was $28,221 and $29,428 at year-end 2021 and 2020.

Components of net periodic benefit cost and other amounts recognized in other comprehensive income:


	Year Ended December 31,
	2021		2020
Service cost	$	189	$	141
Interest cost		760		920
Expected return on plan assets		(2,058)		(1,860)
Amortization of transition cost		(48)		(48)
Amortization of net loss		21		113
Net periodic benefit cost/(income)	$	(1,136)	$	(734)
Net gain	$	(1,002)	$	(1,664)
Amortization of transition asset		48		48
Amortization of prior service cost		(21)		(113)
Total recognized in other comprehensive income	$	(975)		(1,729)
Total recognized in net periodic benefit cost and other comprehensive income	$	(2,111)	$	(2,463)

The components of net periodic benefit cost other than the service cost component are included in employee benefits in the Consolidated Statements of Income.

Assumptions

Weighted-average assumptions used to determine the benefit obligations at year-end:


	2021		2020
Discount rate	2.94	%	2.65	%
Rate of compensation increase	—	%	—	%

Weighted-average assumptions used to determine net periodic pension cost:


	2021		2020
Discount rate	2.65	%	3.55	%
Expected long-term rate of return on plan assets	5.25	%	6.00	%
Rate of compensation increase	—	%	—	%

Investment Strategy and Allocation

The Company is a participant in the New York State Bankers Retirement System (the “System”). The System’s overall investment strategy is to achieve a mix of approximately 97% of investments for long-term growth and 3% for near-term benefit payments with a wide diversification of asset types, fund strategies, and fund managers. The target allocations for the System assets are shown in the table below. Cash equivalents consist primarily of government issues (maturing in less than three months) and short term investment funds. Equity securities primarily include investments in common stock, depository receipts, preferred stock, commingled pension trust funds, exchange traded funds and real estate investment trusts. Fixed income securities include corporate bonds, government issues, credit card receivables, mortgage backed securities, municipals, commingled pension trust funds and other asset backed securities. Other investments are real estate interests and related investments held within a commingled pension trust fund.

The weighted average expected long-term rate of return is estimated based on current trends in the System’s assets as well as projected future rates of return on those assets and reasonable actuarial assumptions based on the guidance provided by Actuarial Standard of Practice (“ASOP”) No. 27 “Selection of Economic Assumptions for Measuring Pension Obligations” for long term inflation, and the real and nominal rate of investment return for a specific mix of asset classes.

The following assumptions were used in determining the long-term rate of return:

Equity securities	Dividend discount model, the smoothed earnings yield model and the equity risk premium model
Fixed income securities	Current yield-to-maturity and forecasts of future yields
Other financial instruments	Comparison of the specific investment’s risk to that of fixed income and equity instruments and other judgments

The long-term rate of return considers historical returns. Adjustments were made to historical returns in order to reflect expectations of future returns. These adjustments were due to factor forecasts by economists and long-term U.S. Treasury yields to forecast long-term inflation. In addition, forecasts by economists and others for long-term GDP growth were factored into the development of assumptions for earnings growth and per capita income.

The System currently prohibits its investment managers from purchasing any security greater than 5% of the portfolio at the time of purchase or greater than 8% at market value in any one issuer. Effective June 25, 2013, the issuer of any security purchased must be located in a country in the MSCI (Morgan Stanley Capital International) World Index. In addition, the following are prohibited: short sales, unregistered stocks and margin purchases of equity securities, mortgage backed derivatives that have an inverse floating rate coupon or that are interest only securities, any asset backed security that is not issued by the U.S. Government or its agencies or its instrumentalities, securities of less than

Baa2/BBB quality may not be purchased, securities of less than A-quality may not in the aggregate exceed 13% of the investment manager’s portfolio. An investment manager’s portfolio of commercial mortgage- backed securities and asset backed securities shall not exceed 10% of the portfolio at the time of purchase. In addition, unhedged currency exposure in countries not defined as “high income economies” by the World Bank is prohibited.

The Company’s pension plan asset allocation at year-end 2021 and 2020, target allocation and expected long-term rate of return by asset class are as follows:


	2021				2020
	Target		Actual		Target		Actual
	Allocation		Allocation		Allocation		Allocation
Asset category:
Cash equivalents	—	%	—	%	—	%	—	%
Equity securities	30.00	%	35.65	%	28.25	%	31.56	%
Fixed income securities	15.00	%	34.98	%	59.75	%	62.60	%
Other financial instruments	55.00	%	29.37	%	12.00	%	5.84	%
Total			100.00	%			100.00	%

Fair Value of Plan Assets

The Company used the following valuation methods and assumptions to estimate the fair value of assets held by the plan:

Commingled Pension Trust Funds (CPTF): The fair values of CPTF are based upon the net asset values of the funds reported by the fund managers as of the System’s financial statement dates and recent transaction prices (Level 2 inputs).

The fair value of the plan assets at December 31, 2021, by asset class, is as follows:


	Fair Value Measurements at
	December 31, 2021 Using:
			Quoted Prices
			in Active		Significant Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Commingled pension trust funds-realty		42,867		—		42,867		—
		42,867		—		42,867		—
Total plan assets	$	42,867	$	—	$	42,867	$	—

The fair value of the plan assets at December 31, 2020, by asset class, is as follows:


	Fair Value Measurements at
	December 31, 2020 Using:
			Quoted Prices
			in Active		Significant Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Foreign currencies	$	2	$	2	$	—	$	—
		2		2		—		—
Fixed income securities:
Corporate Bonds		2		—		2		—
		2		—		2		—
Other Investments
Commingled pension trust funds-realty		39,959		—		39,959		—
		39,959		—		39,959		—
Total plan assets	$	39,963	$	2	$	39,961	$	—

Contributions: The Company contributed $2,000 to its pension plan during 2021.

Estimated Future Payments: The following benefit payments which reflect future service, are expected:


	Pension
	Benefits
2022	$	1,539
2023		1,535
2024		1,568
2025		1,554
2026		1,588
Following 5 years	$	7,626

Supplemental Executive Retirement Plans

The Bank maintains a Supplemental Executive Retirement Plan for two former Chief Executive Officers to restore pension benefits that are limited due to Internal Revenue Service regulations. The benefits accrued under this plan, which are included in accrued expenses and other liabilities in the Consolidated Statements of Condition, were $687 and $709 as of December 31, 2021 and 2020, respectively.

The Bank recorded expense of $58 in both 2021 and 2020 in relation to this plan. Supplemental benefits for this plan expected to be paid in each year from 2022 to 2025 are $79 each year. The aggregate supplemental benefits expected to be paid in the five years from 2026 to 2030 are $396.

The Bank also maintains a performance based Supplemental Executive Retirement Plan for the Chief Executive Officer and two Executive Vice Presidents. Contributions to this plan are based on achieving certain growth and profitability targets. The Bank recorded expense of $9 and $159 for the years ended December 31, 2021 and 2020, respectively.

Deferred Directors’ Fee Plan

The Bank and the Company maintain unfunded Deferred Director’s Fee Plans within which each director may defer the receipt of meeting fees. The benefits accrued under these plans totaled $6,955 and $6,703 at December 31, 2021 and

2020, respectively, which are included in accrued expenses and other liabilities in the Consolidated Statements of Condition. The Bank and the Company recorded an expense of $541 and $817 in 2021 and 2020 in relation to these plans.

Deferred Compensation Plan

The Bank and HVIA maintain unfunded Deferred Compensation Plans for certain officers. The benefits accrued under these plans totaled $75 and $209 at December 31, 2021 and 2020, respectively, which are included in accrued expenses and other liabilities in the Consolidated Statements of Condition. The Bank and HVIA recorded an expense of $6 and $19 in 2021 and 2020, respectively.

Deferred Incentive Retirement Plan

The Bank maintains an unfunded Deferred Incentive Retirement Plan for certain executive officers. The benefits accrued under this plan totaled $567 and $636 at December 31, 2021 and 2020, respectively, which are included in accrued expenses and other liabilities in the Consolidated Statements of Condition. The Bank recorded an expense of $26 and $32 in 2021 and 2020, respectively.

401(k) Savings Plan

The Company has a 401(k) Plan (Plan) to provide retirement and incidental benefits for its employees.

Employees may contribute up to 100% of their annual compensation to the Plan, limited to a maximum annual amount as set periodically by the Internal Revenue Service. Effective for Plan Years beginning January 1, 2016, the Company makes a safe harbor non-elective contribution equal to 3% of annual compensation for each eligible employee whether or not the employee elects to defer compensation to the plan. All safe harbor non-elective contributions vest immediately. In addition, effective for Plan Years beginning January 1, 2016, for those employees hired before April 1, 2016, the Plan provides for discretionary contributions according to the following schedule:


Percentage of		Participant Age Range
Compensation
1.0	%	Under age 35
2.0	%	35 years of age, but less than 45
5.0	%	45 years of age, but less than 55
8.5	%	55 years of age or older

Employees are eligible for the discretionary contribution after completing one year of service. All discretionary contributions vest immediately.

Discretionary contributions were $457 and $501 for 2021 and 2020, respectively.

Restricted Stock Grants

The Company has a time based restricted stock plan. For the years ended December 31, 2021 and 2020 the Company recognized stock-based compensation costs of $475 and $413, respectively. The Company uses the fair value of the common stock on the date of award to measure compensation cost for restricted stock unit 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 units granted for the years ended December 31, 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 December 31, 2021 was $223.

A summary of the status of the Company’s non-vested restricted stock awards as of December 31, 2021, and changes during the year ended December 31, 2020 are presented below:


		Weighted
		Average Fair
	Shares	Value
Non-vested at beginning of period	25,369	$	28.78
Granted	15,162	$	28.75
Vested	(15,573)	$	28.54
Forfeited	(2,036)	$	28.99
Non-vested at end of period	22,922	$	28.92

On September 22, 2021 restricted stock units (RSUs) were granted in the amount of 48,004 from the Company’s 2019 Equity Incentive Plan to directors of the Company and officers of Orange Bank & Trust Company (“Bank”) and Hudson Valley Investment Advisors (“HVIA”) in connection with the successful completion of the Company’s initial public stock offering and listing on the NASDAQ Capital Market. Non-employee directors received 16,500 restricted stock units while officers received 31,504 restricted stock units. The restricted stock units granted to officers will vest over three years in approximately 33% increments on the first, second and third anniversary of the date of grant. The restricted stock units granted to nonemployee directors are 100% vested as of the date of grant and are settled in shares of Company common stock upon separation from service. In addition, the Company intends to make a discretionary contribution of up to $200 thousand to the Company’s KSOP Trust to purchase shares of Company common stock in the open market for the benefit of all eligible non-highly compensated employees who remain employed by the Company, Bank or HVIA as of December 31, 2021.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Taxes

Income Taxes

Note 11 — Income Taxes

Income tax expense was as follows:


	2021		2020
Current expense
Federal	$	5,353	$	3,007
State		440		92
Total		5,793		3,099
Deferred expense (benefit)
Federal		(326)		(140)
State		(630)		(393)
Total		(956)		(533)
Change in valuation allowance		553		273
Total provision for income taxes	$	5,390	$	2,839

Effective tax rates differ from the federal statutory rate of 21% for 2021 and 2020 applied to income before taxes due to the following:


	2021		2020
Tax expense at statutory rate	$	5,602	$	3,049
(Decrease) increase in taxes resulting from:
Net earnings on bank-owned life insurance		(167)		(147)
Tax-exempt municipal bond income, net of disallowed interest expense		(329)		(198)
State income tax, net of federal tax benefit		209		(349)
Valuation allowance		553		273
Other		(478)		211
Total provision for income tax	$	5,390	$	2,839

Year-end deferred tax assets and liabilities were due to the following:


	2021		2020
Deferred tax assets:
Allowance for loan losses	$	4,824	$	4,181
Reserve for unfunded commitments		55		52
Deferred loan fees, net of costs		962		292
Deferred compensation		2,431		2,319
Available for sale securities		293
Non accrual interest		336		355
State NOL		2,284		1,977
Pension/deferred compensation OCI		894		1,098
		12,079		10,274


	2021		2020
Deferred tax liabilities:
Intangible assets		(902)		(761)
Organization costs – holding company		(22)		(18)
Organization costs – HVIA		(23)		(20)
Pension		(2,717)		(2,349)
Available for sale securities		—		(1,279)
Accumulated depreciation		(681)		(353)
Accretion		(16)		(54)
		(4,361)		(4,834)
Net deferred tax asset before valuation allowance		7,718		5,440
Valuation allowance		(3,629)		(2,780)
Net deferred tax asset	$	4,089	$	2,660

The Company has recorded a federal deferred tax asset that based upon an analysis of the evidence, it expects such federal deferred tax asset to be recoverable. The federal deferred tax asset is included in other assets on the balance sheet. However, due to the change in New York State tax legislation passed in March 2014, management has determined that a full valuation allowance, totaling $3,629, against the New York State portion of the deferred tax asset, which includes state net operating losses, at December 31, 2021 and 2020 is appropriate. At December 31, 2021, the Company has net operating loss carryforwards available for state income tax purposes of approximately $34.0 million, with expiration dates through 2031.

The Company did not have any uncertain tax positions at December 31, 2021 and 2020. The Company’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Consolidated Statements of Income.

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the state of New York. The Company is no longer subject to examination by taxing authorities for years before 2016.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2021

Accumulated Other Comprehensive Income (Loss).

Accumulated Other Comprehensive Income (Loss)

Note 12 — Accumulated Other Comprehensive Income (Loss)

The following is changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2021 and 2020.


	Year Ended December 31, 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		(6,021)		792		(12)		(5,241)
Less amounts reclassified from accumulated other comprehensive income		—		21		—		21
Net current period other comprehensive income/(loss)		(6,021)		771		(12)		(5,262)
Ending balance	$	(1,072)	$	(2,506)	$	135	$	(3,443)


	Year Ended December 31, 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		5,145		1,314		(12)		6,447
Less amounts reclassified from accumulated other comprehensive income		(635)		51		—		(584)
Net current period other comprehensive income/(loss)		4,510		1,365		(12)		5,863
Ending balance	$	4,949	$	(3,277)	$	147	$	1,819

The following is significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ending December 31, 2021 and 2020.


	Amount Reclassified from
Details about Accumulated Other	Accumulated Other Comprehensive				Affected Line Item in the Statement
Comprehensive Income Components	Income				where Net Income is Presented
	2021		2020
Unrealized gains and losses on available-for-sale securities
Realized gains on securities available-for-sale	$	—	$	804	Investment security gains (losses)
Total before tax		—		804
Tax effect		—		169	Provision for income taxes
Net of tax	$	—	$	635
Amortization of defined benefit pension items
Transition asset		(48)		(48)	Employee benefits
Actuarial gains	$	21	$	113	Employee benefits
Total before tax		(27)		65
Tax effect		(6)		14	Provision for income taxes
Net of tax	$	(21)	$	51
Total reclassifications for the period, net of tax	$	(21)	$	584

Regulatory Capital Matters

12 Months Ended

Dec. 31, 2021

Regulatory Capital Matters

Regulatory Capital Matters

Note 13 — 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. 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 was phased in at a rate of 0.625% per year from 0.0% in 2015 to 2.5% for 2019. The net unrealized gain or loss on available for sale securities is included in computing regulatory capital. Management believes as of December 31, 2021, the Bank meets all capital adequacy requirements to which it is subject.

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. At year-end 2021 and 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes changed that category.

Actual and required capital amounts and ratios are presented below at year-end.


													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
December 31, 2021
Total capital to risk weighted assets	$	192,359	14.12	%	$	109,000	8.00	%	$	134,546	9.875	%	$	136,250	10.00	%
Tier 1 (Core) capital to risk weighted assets		175,318	12.87	%		81,750	6.00	%		107,296	7.875	%		109,000	8.00	%
Common Tier 1 (CET1) to risk weighted assets		175,318	12.87	%		61,312	4.50	%		86,859	6.375	%		88,562	6.50	%
Tier 1 (Core) Capital to average assets		175,318	8.15	%		86,093	4.00	%		N/A	N/A			107,616	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

Leases

12 Months Ended

Dec. 31, 2021

Leases

Leases

Note 14 — Leases

The Company enters into leases in the normal course of business primarily for financial centers, back office operations locations, business development offices, and information technology equipment. The Company’s leases have remaining terms from one to ten years, some of which include renewal or termination options to extend the lease for up to five years and some include options to terminate the lease upon notification. The Company has no leases that are subject to sub-lease agreements. The Company’s leases do not include residual value guarantees or covenants.

The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease components in its real estate leases as part of the associated lease component. The Company has also elected to not recognize leases with original lease terms of twelve months or less (short-term leases) on the Company’s balance sheet.

Leases are classified as operating or financing leases at the lease commencement date. Currently, the Company does not have any leases classified as financing leases. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term.

The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company’s incremental borrowing rate is based on the FHLB advance rates, adjusted for the lease term and other factors.

Right-of-use assets and lease liabilities are included in other assets and accrued expenses and other liabilities, respectively, in the Consolidated Statements of Condition. The right-of-use assets as of December 31, 2021 and 2020 were $3,038 and $1,930, respectively. Lease liabilities as of December 31, 2021 and 2020 were $3,038 and $1,930, respectively.

Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2021 are as follows:


Years Ending December 31,
2022	$	746
2023		695
2024		537
2025		466
2026		381
Thereafter		376
Total undiscounted lease payments	$	3,201
Discount	$	163
Total discounted lease payments	$	3,038
Operating lease weighted average remaining lease term (years)		5.22	years
Operating lease weighted average discount rate		2.79	%

Rent expense for all operating leases was $792 in 2021 and $719 in 2020.

Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2021

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Note 15 — 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 twelve months ended December 31, 2021 and 2020.


	Year Ended December 31,
	2021		2020
Noninterest Income
Service charges on deposit accounts
Overdraft fees	$	279	$	326
Other		359		356
Trust income		4,788		4,074
Investment advisory income		4,853		4,105
Investment securities gains (losses)^(a)		—		804
Earnings on bank owned life insurance^(a)		793		702
Other^(b)		1,030		1,056
Total Noninterest Income	$	12,102	$	11,423

(a)	Not within the scope of ASC 606.

(b)

The Other category includes safe deposit income, checkbook fees, and debit card fee income, totaling $805 and $657 for 2021 and 2020, respectively, that are within the scope of ASC 606 and loan related fee income and miscellaneous income, totaling $225 and $399 for 2021 and 2020, respectively, which are outside the scope of ASC 606.

A description of the Company’s revenue streams accounted for under ASC 606 follows:

Service Charges on Deposit Accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

Wealth Management Fees (Gross): 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=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Financial Instruments with Off-Balance Sheet Risk

12 Months Ended

Dec. 31, 2021

Financial Instruments with Off-Balance Sheet Risk

Financial Instruments with Off-Balance Sheet Risk

Note 16 — Financial Instruments with Off-Balance Sheet Risk

The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing need of its customers. These financial instruments consist primarily of commitments to extend credit (typically mortgages and commercial loans) and, to a lesser extent, standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the Consolidated Statements of Condition.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligation as it does for on balance sheet instruments. The Bank does not anticipate any material losses from these commitments.

Commitments to extend credit, including commitments to grant loans and unfunded commitments under lines of credit, are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extensions of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property and equipment and income-producing commercial properties. On loans secured by real estate, the Bank generally requires loan to value ratios of no greater than 80%.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and similar transactions. The terms of the letters of credit vary and may have renewal features. The credit risk involved in using letters of credit is essentially the same as that involved in extending loans to customers. The Bank holds collateral supporting those commitments for which collateral is deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees.

The Bank has not been required to perform on any financial guarantees, and has not incurred any losses on its commitments, during the past two years.

A summary of the Bank’s Commitments at December 31, 2021 and 2020 were as follows:


	2021		2020
Commitments to extend credit	$	373,628	$	230,200
Standby letters of credit		11,501		6,510

Contingencies

12 Months Ended

Dec. 31, 2021

Contingencies

Contingencies

Note 17 — Contingencies

The Company is subject to claims and lawsuits which arise primarily in the ordinary course of business. Based on information presently available and advice received from legal counsel representing the Company in connection with any such claims and lawsuits, it is the opinion of management that the disposition or ultimate determination of any such claims and lawsuits will not have a material effect on the consolidated financial position, consolidated results or liquidity of the Company.

Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events

Subsequent Events

Note 18 — Subsequent Events

On February 18, 2022 the Company’s board of director’s declared a quarterly cash dividend of $0.20 per share on the Company’s common stock. The dividend was paid on March 14, 2022 to shareholders of record as of March 2, 2022.

Parent Company Information

12 Months Ended

Dec. 31, 2021

Parent Company Information

Parent Company Information

Note 19 — Parent Company Information

Financial Information for the Company only is presented in the following tables:

Condensed Statements of Condition


	December 31,
	2021		2020
Assets
Cash and due from banks	$	24,441	$	10,929
Investment in subsidiaries		179,487		145,497
Goodwill and intangible assets		1,850		2,136
Other assets		211		26
Total assets	$	205,989	$	158,588


	December 31,
	2021		2020
Liabilities and stockholders’ equity
Subordinated notes, net of issuance costs	$	19,376	$	19,323
Note payable		3,000		3,000
Other liabilities		777		842
Total liabilities		23,153		23,165
Total stockholders’ equity		182,836		135,423
Total liabilities and stockholders’ equity	$	205,989	$	158,588

Condensed Statements of Income and Comprehensive Income


	Years ended December 31,
	2021		2020
Operating Income
Dividend income from operating subsidiaries	$	5,329	$	4,511
Servicing Fee		372		—
Total operating income		5,701		4,511
Operating Expenses
Interest on borrowings		1,087		407
Salaries and employee benefits		372		514
Professional fees		172		142
Directors’ fees and expenses		189		164
Intangible amortization		286		286
Other expenses and income taxes		59		450
Total operating expenses		2,165		1,963
Equity in undistributed earnings of subsidiary		17,751		9,131
Net income	$	21,287	$	11,679
Comprehensive income	$	16,025	$	17,542

Condensed Statements of Cash Flows


	Years ended December 31,
	2021		2020
Cash flows from operating activities
Net income after equity in undistributed earnings of subsidiary	$	21,287	$	11,679
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed earnings of subsidiary companies		(17,751)		(9,131)
Stock-based compensation		69		154
Amortization of intangibles		286		286
Restricted stock expense		475		413
Other, net		(198)		595
Net cash provided by (used in) operating activities		4,168		3,996
Cash flows from investing activities
Investment in operating subsidiary		(21,500)		(10,000)
Net cash used in investing activities		(21,500)		(10,000)
Cash flows from financing activities
Proceeds from the issuance of common stock (net of costs)		35,252		—
Issuance of subordinated notes, net of issuance costs		—		19,323
Dividends paid, common stock		(4,029)		(3,585)
Purchases of treasury stock		(379)		(1,164)
Net cash (used in) provided by financing activities		30,844		14,574
Net increase in cash and cash equivalents		13,512		8,570
Cash and cash equivalents at beginning of year		10,929		2,359
Cash and cash equivalents at end of year	$	24,441	$	10,929

Segment Information

12 Months Ended

Dec. 31, 2021

Segment Information

Segment Information

Note 20 — 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:


	For the Twelve months ended December 31, 2021
	Banking		Wealth Management		Total Segments
Net interest income	$	60,461	$	—	$	60,461
Noninterest income		2,461		9,641		12,102
Provision for loan loss		(2,428)		—		(2,428)
Noninterest expenses		(36,736)		(6,722)		(43,458)
Income tax expense		(4,777)		(613)		(5,390)
Net income	$	18,981	$	2,306	$	21,287
Total assets	$	2,133,440	$	9,143	$	2,142,583


	For the Twelve months ended December 31, 2020
	Banking		Wealth Management		Total Segments
Net interest income	$	48,739	$	—	$	48,739
Noninterest income		3,365		8,058		11,423
Provision for loan loss		(5,413)		—		(5,413)
Noninterest expenses		(33,838)		(6,393)		(40,231)
Income tax expense		(2,510)		(329)		(2,839)
Net income	$	10,343	$	1,336	$	11,679
Total assets	$	1,656,517	$	8,419	$	1,664,936

- 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
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations and Principles of Consolidation

Concentration of Credit Risk

Allowance for Loan Losses

considered troubled debt restructurings (“TDRs”) and classified as impaired. Refer to Note 3 for discussion on loan modifications made under the guidelines of the CARES Act.

The loan portfolio is segmented into commercial and industrial, commercial real estate, commercial real estate construction, residential real estate, home equity, and consumer loans.

Commercial and Industrial Lending

Commercial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions.

(b)

a two-year loan term (or five-year loan term for loans made after June 5, 2020) to maturity; and

(c)

Commercial Real Estate Lending

Commercial real estate loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions.

Commercial Real Estate Construction Lending

The Bank’s commercial real estate construction loans are generally secured with the subject property.

Terms of construction loans depend on the specifics of the project such as estimated absorption rates, estimated time to complete, etc.

Appraisals on properties securing commercial real estate construction loans originated by the Bank are performed by independent appraisers.

Residential Real Estate Lending

Residential real estate loans generally present a lower level of risk than other types of loans because they are secured by the borrower’s primary residence.

Home Equity Lending

Home Equity Lending: The Bank originates home equity lines of credit and closed-end loans primarily within the Bank’s market area or with customers primarily from the market area.

Home equity lines and loans generally present a lower level of risk than other types of consumer loans because they are secured by the borrower’s primary residence.

The subordinate nature of some home equity lines and loans may make these loans of higher risk than other residential real estate loans.

Consumer Lending

Consumer Lending: The Bank offers a variety of secured and unsecured consumer loans, including vehicle, loans secured by savings deposits as well as other types of consumer loans.

Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans.

Transfers of Financial Assets

Foreclosed Assets

Premises and Equipment

Trust and Investment Advisory Income

Included in other assets on the balance sheet is a receivable for trust fees and advisory fees that have been earned but not yet collected.

Federal Home Loan Bank (FHLB) Stock

Federal Reserve Bank (FRB) Stock

Bank Owned Life Insurance

Bank Owned Life Insurance: The Bank has purchased life insurance policies on certain key executives.

Goodwill and Other Intangible Assets

Loan Commitments and Related Financial Instruments

Stock-Based Compensation

Income Taxes

The Company recognizes interest and/or penalties related to income tax matters in miscellaneous expense.

Retirement Plans

Earnings per Common Share

Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders.

Fair Value of Financial Instruments

absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Segment Disclosure

Segment Disclosure: The reportable segments are determined by the chief operating decision makers of the Company, and are primarily distinguished between banking and wealth management.

Reclassifications

Recent Accounting Pronouncements

Investment Securities (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2021
U.S. government agencies	$	80,596	$	440	$	(1,330)	$	79,706
Mortgage-backed securities		272,931		1,285		(3,784)		270,432
Corporate Securities		20,081		278		(148)		20,211
Obligations of states and political subdivisions		92,545		2,149		(246)		94,448
Total debt securities	$	466,153	$	4,152	$	(5,508)	$	464,797


			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


	2021		2020
Proceeds	$	—	$	23,238
Gross gains		—		954
Gross losses		—		150

Schedule of contractual maturities of debt securities


	Available-for-sale
	Amortized		Fair
	Cost		Value
Due in one year or less	$	5,152	$	5,199
Due after one through five years		9,236		9,441
Due after five through ten years		57,548		57,141
Due after ten years		121,286		122,584
		193,222		194,365
Mortgage-backed securities		272,931		270,432
Total debt securities	$	466,153	$	464,797

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 December 31, 2021
U.S. government agencies	$	10,337	$	(121)	$	32,210	$	(1,209)	$	42,547	$	(1,330)
Mortgage-backed securities		177,506		(3,273)		14,134		(511)		191,640		(3,784)
Corporate Securities		9,354		(148)		—		—		9,354		(148)
Obligations of states and political subdivisions		13,349		(138)		3,298		(108)		16,647		(246)
Total debt securities	$	210,546	$	(3,680)	$	49,642	$	(1,828)	$	260,188	$	(5,508)


	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)

12 Months Ended

Dec. 31, 2021

Loans

Schedule of loans


		2021		2020
Commercial and industrial	$	268,508	$	299,049
Commercial real estate		852,707		698,130
Commercial real estate construction		72,250		63,544
Residential real estate		65,248		57,941
Home equity		13,638		13,960
Consumer		19,077		20,114
Total	$	1,291,428	$	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 years ending December 31, 2021 and 2020:


	Year Ended December 31, 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		828		1,326		163		(98)		3		206		2,428
Charge-offs		(942)		—		—		(11)		—		(314)		(1,267)
Recoveries		220		75		—				—		33		328
Ending balance	$	4,901	$	11,183	$	964	$	272	$	80	$	261	$	17,661


	Year Ended December 31, 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		917		4,046		88		48		34		280		5,413
Charge-offs		(1,239)		(219)		—		(51)		—		(28)		(1,537)
Recoveries		10		4		—		—		—		7		21
Ending balance	$	4,795	$	9,782	$	801	$	381	$	77	$	336	$	16,172

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 December 31, 2021 and 2020:


	Commercial				Commercial
	and		Commercial		Real Estate		Residential		Home
	Industrial		Real Estate		Construction		Real Estate		Equity		Consumer		Total
December 31, 2021
Allowance for loan losses:
Ending balance:
individually evaluated for impairment	$	137	$	1,272	$	—	$	—	$	—	$	24	$	1,433
collectively evaluated for impairment		4,764		9,911		964		272		80		237		16,228
Total ending allowance balance	$	4,901	$	11,183	$	964	$	272	$	80	$	261	$	17,661
Loans:
Ending balance:
individually evaluated for impairment	$	952	$	23,523	$	—	$	1,227	$	50	$	114	$	25,866
collectively evaluated for impairment		267,556		829,184		72,250		64,021		13,588		18,963		1,265,562
Total ending loans balance	$	268,508	$	852,707	$	72,250	$	65,248	$	13,638	$	19,077	$	1,291,428


	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


	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized
December 31, 2021
With no related allowance recorded
Commercial and industrial	$	1	$	1	$	—	$	187	$	11	$	11
Commercial real estate		14,291		13,953		—		12,053		555		555
Commercial real estate construction		—		—		—		578		—		—
Residential real estate		1,155		1,155		—		639		33		33
Home equity		50		50		—		25		—		—
Consumer		—		—		—		—		—		—
Total	$	15,497	$	15,159	$	—	$	13,482	$	599	$	599
With an allowance recorded:
Commercial and industrial	$	951	$	951	$	137	$	1,420	$	82	$	82
Commercial real estate		9,593		9,570		1,272		9,587		357		357
Commercial real estate construction		—		—		—		—		—		—
Residential real estate		84		72		—		76		3		3
Home equity		—		—		—		—		—		—
Consumer		114		114		24		119		6		6
Total	$	10,742	$	10,707	$	1,433	$	11,202	$	448	$	448


	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized
December 31, 2020
With no related allowance recorded
Commercial and industrial	$	331	$	331	$	—	$	169	$	23	$	23
Commercial real estate		10,621		9,248		—		4,937		296		296
Commercial real estate construction		—		—		—		—		—		—
Residential real estate		1,148		1,148		—		574		44		44
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total	$	12,100	$	10,727	$	—	$	5,680	$	363	$	363
With an allowance recorded:
Commercial and industrial	$	2,079	$	2,079	$	206	$	1,287	$	147	$	147
Commercial real estate		11,001		10,511		1,084		11,005		466		466
Commercial real estate construction		—		—		—		—		—		—
Residential real estate		219		210		15		217		5		5
Home equity		—		—		—		—		—		—
Consumer		124		124		27		128		7		7
Total	$	13,423	$	12,924	$	1,332	$	12,637	$	625	$	625

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
	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Commercial and industrial	$	—	$	—	$	720	$	457
Commercial real estate		3,928		1,345		465		—
Commercial real estate construction		—		—		—		—
Residential real estate		578		657		—		2
Home equity		50		—		—		—
Consumer		4		—		208		61
Total	$	4,560	$	2,002	$	1,393	$	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
December 31, 2021
Commercial and industrial	$	541	$	1,519	$	720	$	2,780	$	265,728
Commercial real estate		—		2,873		1,161		4,034		848,673
Commercial real estate construction		—		—		—		—		72,250
Residential real estate		26		—		578		604		64,644
Home equity		—		58		50		108		13,530
Consumer		1,134		292		212		1,638		17,439
Total	$	1,701	$	4,742	$	2,721	$	9,164	$	1,282,264


	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


	December 31, 2021			December 31, 2020
		Unpaid			Unpaid
	Number of	Principal		Number of	Principal
	Loans	Balance		Loans	Balance
Commercial and industrial	—	$	—	9	$	3,390
Commercial real estate	—		—	19	$	44,782
Consumer	—		—	1		596
Total	—	$	—	29	$	48,768

Schedule of risk category of loans by class of loans


			Special
	Pass		Mention		Substandard		Doubtful		Loss		Total
December 31, 2021
Commercial and industrial	$	252,268	$	4,156	$	12,084	$	—	$	—	$	268,508
Commercial real estate		835,787		679		16,241		—		—		852,707
Commercial real estate construction		72,250		—		—		—		—		72,250
Residential real estate		64,094		—		1,154		—		—		65,248
Home equity		13,588		50		—		—		—		13,638
Consumer		18,963		—		114		—		—		19,077
Total	$	1,256,950	$	4,885	$	29,593	$	—	$	—	$	1,291,428


			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

Schedule of loans to certain directors and principal officers


	2021		2020
Balance, beginning of year	$	5,392	$	5,443
Additions		—		—
Repayments		(316)		(51)
Balance, end of year	$	5,076	$	5,392

Fair Value (Tables)

12 Months Ended

Dec. 31, 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
	December 31,		Assets		Inputs		Inputs
	2021		(Level 1)		(Level 2)		(Level 3)
U.S. government agencies	$	79,706	$	—	$	79,706	$	—
Mortgage-backed securities		270,432		—		270,432		—
Corporate securities		20,211		—		20,211		—
Obligations of states and political subdivisions		94,448		—		94,448		—
Total securities available-for-sale	$	464,797	$	—	$	464,797	$	—


			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 in

Active Markets

Significant Other

Significant

Total at

for Identical

Observable

Unobservable

December 31,

Assets

Inputs

2021

(Level 1)

(Level 2)

(Level 3)

Impaired loans

6,689

—

6,689

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


	Fair Value				Range
December 31, 2021	Value		Valuation Technique	Unobservable Input	(Average)
Impaired loans - Primarily Commercial Real Estate	$	6,689	Appraisal of collateral⁽¹⁾	Appraisal and liquidation	20-56	%
				adjustments⁽²⁾	(39)	%

(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.

Summary of carrying amounts and estimated fair values of financial instruments


	December 31, 2021
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	306,179	$	306,179	$	306,179	$	—	$	—
Loans, net		1,273,767		1,277,807		—		—		1,277,807
Accrued interest receivable		6,643		6,643		—		1,603		5,040
Restricted investment in bank stocks		2,217		NA		—		—		—
Financial liabilities:
Deposits		1,914,384		1,914,271		1,831,944		82,327		—
Note payable		3,000		3,030		—		3,030		—
Subordinated notes, net of issuance costs		19,376		18,867		—		18,867		—
Accrued interest payable		250		250		—		250		—


	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		—

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Premises and Equipment

Schedule of premises and equipment


	2021		2020
Land	$	3,152	$	3,152
Buildings and improvements		12,714		12,727
Furniture and equipment		7,053		6,514
Leasehold improvements		6,737		5,332
		29,656		27,725
Accumulated depreciation and amortization		(15,055)		(13,708)
Premises and equipment, net	$	14,601	$	14,017

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets

Schedule of changes in Goodwill


	2021		2020
Beginning of year	$	5,359	$	5,359
Acquired goodwill impairment		—		—
End of year	$	5,359	$	5,359

Schedule of acquired intangible assets


	Gross
	Intangible		Accumulated
	Asset		Amortization
December 31, 2021
Customer lists and intangible assets	$	4,284	(2,606)
	$	4,284	(2,606)
December 31, 2020
Customer lists and intangible assets	$	4,284	(2,321)
	$	4,284	(2,321)

Deposits (Tables)

12 Months Ended

Dec. 31, 2021

Deposits

Summary of analysis of deposits


	December 31, 2021		December 31, 2020
Non-interest bearing demand accounts	$	701,645	$	521,093
Interest-bearing demand accounts		301,596		236,951
Money market accounts		615,111		483,044
Savings accounts		213,592		157,007
Certificates of Deposit		82,440		91,199
Total deposits	$	1,914,384	$	1,489,294

Schedule of maturities of time deposits


2021 (matured not renewed)	$	612
2022	$	71,780
2023		6,213
2024		3,835
	$	82,440

- Definition

Tabular disclosure of type of deposit liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (e)

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(ii)

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (1)

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (d)

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (5)

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iii)

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (4)

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (c)

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (2)

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (3)

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)

+ Details

Borrowings (Tables)

12 Months Ended

Dec. 31, 2021

Borrowings

Schedule of notes payable


	2021				2020
	Amount		Rate		Amount		Rate
Note payable	$	3,000	5.60	%	$	3,000	5.60	%

Pension and other Post Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2021

Pension and other Post Retirement Plans

Schedule of discretionary contributions


Percentage of		Participant Age Range
Compensation
1.0	%	Under age 35
2.0	%	35 years of age, but less than 45
5.0	%	45 years of age, but less than 55
8.5	%	55 years of age or older

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	(15,573)	$	28.54
Forfeited	(2,036)	$	28.99
Non-vested at end of period	22,922	$	28.92

Defined benefit pension plan

Pension and other Post Retirement Plans

Schedule of changes in obligations and plan assets


	2021		2020
Change in projected benefit obligation:
Beginning of year	$	29,428	$	26,665
Service cost		189		141
Interest cost		760		920
Benefits paid		(1,556)		(1,407)
Actuarial loss		(600)		3,109
End of year	$	28,221	$	29,428

Change in fair value of assets:
Beginning of year	$	39,963	$	31,738
Contributions		2,000		3,000
Actual return on plan assets		2,501		6,680
Benefits paid and expenses		(1,597)		(1,455)
End of year	$	42,867	$	39,963


	2021		2020
Funded status at end of year (plan assets less benefit obligation)	$	14,646	$	10,535

Schedule of amounts recognized in accumulated other comprehensive income (loss)


	2021		2020
Total net actuarial loss	$	(3,521)	$	(4,544)
Transition asset		28		76
	$	(3,493)	$	(4,468)

Schedule of components of net periodic benefit cost and other amounts recognized in other comprehensive income


	Year Ended December 31,
	2021		2020
Service cost	$	189	$	141
Interest cost		760		920
Expected return on plan assets		(2,058)		(1,860)
Amortization of transition cost		(48)		(48)
Amortization of net loss		21		113
Net periodic benefit cost/(income)	$	(1,136)	$	(734)
Net gain	$	(1,002)	$	(1,664)
Amortization of transition asset		48		48
Amortization of prior service cost		(21)		(113)
Total recognized in other comprehensive income	$	(975)		(1,729)
Total recognized in net periodic benefit cost and other comprehensive income	$	(2,111)	$	(2,463)

Schedule of assumptions


	2021		2020
Discount rate	2.94	%	2.65	%
Rate of compensation increase	—	%	—	%


	2021		2020
Discount rate	2.65	%	3.55	%
Expected long-term rate of return on plan assets	5.25	%	6.00	%
Rate of compensation increase	—	%	—	%

Schedule of plan asset allocation


	2021				2020
	Target		Actual		Target		Actual
	Allocation		Allocation		Allocation		Allocation
Asset category:
Cash equivalents	—	%	—	%	—	%	—	%
Equity securities	30.00	%	35.65	%	28.25	%	31.56	%
Fixed income securities	15.00	%	34.98	%	59.75	%	62.60	%
Other financial instruments	55.00	%	29.37	%	12.00	%	5.84	%
Total			100.00	%			100.00	%

Schedule of fair value of plan assets


	Fair Value Measurements at
	December 31, 2021 Using:
			Quoted Prices
			in Active		Significant Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Commingled pension trust funds-realty		42,867		—		42,867		—
		42,867		—		42,867		—
Total plan assets	$	42,867	$	—	$	42,867	$	—


	Fair Value Measurements at
	December 31, 2020 Using:
			Quoted Prices
			in Active		Significant Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Foreign currencies	$	2	$	2	$	—	$	—
		2		2		—		—
Fixed income securities:
Corporate Bonds		2		—		2		—
		2		—		2		—
Other Investments
Commingled pension trust funds-realty		39,959		—		39,959		—
		39,959		—		39,959		—
Total plan assets	$	39,963	$	2	$	39,961	$	—

Schedule of future benefit payments


	Pension
	Benefits
2022	$	1,539
2023		1,535
2024		1,568
2025		1,554
2026		1,588
Following 5 years	$	7,626

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes

Schedule of income tax expense


	2021		2020
Current expense
Federal	$	5,353	$	3,007
State		440		92
Total		5,793		3,099
Deferred expense (benefit)
Federal		(326)		(140)
State		(630)		(393)
Total		(956)		(533)
Change in valuation allowance		553		273
Total provision for income taxes	$	5,390	$	2,839

Schedule of income tax reconciliation


	2021		2020
Tax expense at statutory rate	$	5,602	$	3,049
(Decrease) increase in taxes resulting from:
Net earnings on bank-owned life insurance		(167)		(147)
Tax-exempt municipal bond income, net of disallowed interest expense		(329)		(198)
State income tax, net of federal tax benefit		209		(349)
Valuation allowance		553		273
Other		(478)		211
Total provision for income tax	$	5,390	$	2,839

Schedule of deferred tax assets and liabilities


	2021		2020
Deferred tax assets:
Allowance for loan losses	$	4,824	$	4,181
Reserve for unfunded commitments		55		52
Deferred loan fees, net of costs		962		292
Deferred compensation		2,431		2,319
Available for sale securities		293
Non accrual interest		336		355
State NOL		2,284		1,977
Pension/deferred compensation OCI		894		1,098
		12,079		10,274


	2021		2020
Deferred tax liabilities:
Intangible assets		(902)		(761)
Organization costs – holding company		(22)		(18)
Organization costs – HVIA		(23)		(20)
Pension		(2,717)		(2,349)
Available for sale securities		—		(1,279)
Accumulated depreciation		(681)		(353)
Accretion		(16)		(54)
		(4,361)		(4,834)
Net deferred tax asset before valuation allowance		7,718		5,440
Valuation allowance		(3,629)		(2,780)
Net deferred tax asset	$	4,089	$	2,660

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2021

Accumulated Other Comprehensive Income (Loss).

Summary of changes in accumulated other comprehensive income (loss)


	Year Ended December 31, 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		(6,021)		792		(12)		(5,241)
Less amounts reclassified from accumulated other comprehensive income		—		21		—		21
Net current period other comprehensive income/(loss)		(6,021)		771		(12)		(5,262)
Ending balance	$	(1,072)	$	(2,506)	$	135	$	(3,443)


	Year Ended December 31, 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		5,145		1,314		(12)		6,447
Less amounts reclassified from accumulated other comprehensive income		(635)		51		—		(584)
Net current period other comprehensive income/(loss)		4,510		1,365		(12)		5,863
Ending balance	$	4,949	$	(3,277)	$	147	$	1,819

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


	Amount Reclassified from
Details about Accumulated Other	Accumulated Other Comprehensive				Affected Line Item in the Statement
Comprehensive Income Components	Income				where Net Income is Presented
	2021		2020
Unrealized gains and losses on available-for-sale securities
Realized gains on securities available-for-sale	$	—	$	804	Investment security gains (losses)
Total before tax		—		804
Tax effect		—		169	Provision for income taxes
Net of tax	$	—	$	635
Amortization of defined benefit pension items
Transition asset		(48)		(48)	Employee benefits
Actuarial gains	$	21	$	113	Employee benefits
Total before tax		(27)		65
Tax effect		(6)		14	Provision for income taxes
Net of tax	$	(21)	$	51
Total reclassifications for the period, net of tax	$	(21)	$	584

Regulatory Capital Matters (Tables)

12 Months Ended

Dec. 31, 2021

Regulatory Capital Matters

Schedule of actual and required capital amounts and ratios

Actual and required capital amounts and ratios are presented below at year-end.


													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
December 31, 2021
Total capital to risk weighted assets	$	192,359	14.12	%	$	109,000	8.00	%	$	134,546	9.875	%	$	136,250	10.00	%
Tier 1 (Core) capital to risk weighted assets		175,318	12.87	%		81,750	6.00	%		107,296	7.875	%		109,000	8.00	%
Common Tier 1 (CET1) to risk weighted assets		175,318	12.87	%		61,312	4.50	%		86,859	6.375	%		88,562	6.50	%
Tier 1 (Core) Capital to average assets		175,318	8.15	%		86,093	4.00	%		N/A	N/A			107,616	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	%

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases

Schedule of future minimum lease payments under lease agreements

Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2021 are as follows:


Years Ending December 31,
2022	$	746
2023		695
2024		537
2025		466
2026		381
Thereafter		376
Total undiscounted lease payments	$	3,201
Discount	$	163
Total discounted lease payments	$	3,038
Operating lease weighted average remaining lease term (years)		5.22	years
Operating lease weighted average discount rate		2.79	%

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contracts with Customers

Schedule of noninterest income


	Year Ended December 31,
	2021		2020
Noninterest Income
Service charges on deposit accounts
Overdraft fees	$	279	$	326
Other		359		356
Trust income		4,788		4,074
Investment advisory income		4,853		4,105
Investment securities gains (losses)^(a)		—		804
Earnings on bank owned life insurance^(a)		793		702
Other^(b)		1,030		1,056
Total Noninterest Income	$	12,102	$	11,423

(a)	Not within the scope of ASC 606.

(b)

Financial Instruments with Off-Balance Sheet Risk (Tables)

12 Months Ended

Dec. 31, 2021

Financial Instruments with Off-Balance Sheet Risk

Summary of Bank's Commitments


	2021		2020
Commitments to extend credit	$	373,628	$	230,200
Standby letters of credit		11,501		6,510

Parent Company Information (Tables)

12 Months Ended

Dec. 31, 2021

Parent Company Information

Schedule of Condensed Statements of Condition


	December 31,
	2021		2020
Assets
Cash and due from banks	$	24,441	$	10,929
Investment in subsidiaries		179,487		145,497
Goodwill and intangible assets		1,850		2,136
Other assets		211		26
Total assets	$	205,989	$	158,588


	December 31,
	2021		2020
Liabilities and stockholders’ equity
Subordinated notes, net of issuance costs	$	19,376	$	19,323
Note payable		3,000		3,000
Other liabilities		777		842
Total liabilities		23,153		23,165
Total stockholders’ equity		182,836		135,423
Total liabilities and stockholders’ equity	$	205,989	$	158,588

Schedule of Condensed Statements of Income and Comprehensive Income


	Years ended December 31,
	2021		2020
Operating Income
Dividend income from operating subsidiaries	$	5,329	$	4,511
Servicing Fee		372		—
Total operating income		5,701		4,511
Operating Expenses
Interest on borrowings		1,087		407
Salaries and employee benefits		372		514
Professional fees		172		142
Directors’ fees and expenses		189		164
Intangible amortization		286		286
Other expenses and income taxes		59		450
Total operating expenses		2,165		1,963
Equity in undistributed earnings of subsidiary		17,751		9,131
Net income	$	21,287	$	11,679
Comprehensive income	$	16,025	$	17,542

Schedule of Condensed Statements of Cash Flows


	Years ended December 31,
	2021		2020
Cash flows from operating activities
Net income after equity in undistributed earnings of subsidiary	$	21,287	$	11,679
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed earnings of subsidiary companies		(17,751)		(9,131)
Stock-based compensation		69		154
Amortization of intangibles		286		286
Restricted stock expense		475		413
Other, net		(198)		595
Net cash provided by (used in) operating activities		4,168		3,996
Cash flows from investing activities
Investment in operating subsidiary		(21,500)		(10,000)
Net cash used in investing activities		(21,500)		(10,000)
Cash flows from financing activities
Proceeds from the issuance of common stock (net of costs)		35,252		—
Issuance of subordinated notes, net of issuance costs		—		19,323
Dividends paid, common stock		(4,029)		(3,585)
Purchases of treasury stock		(379)		(1,164)
Net cash (used in) provided by financing activities		30,844		14,574
Net increase in cash and cash equivalents		13,512		8,570
Cash and cash equivalents at beginning of year		10,929		2,359
Cash and cash equivalents at end of year	$	24,441	$	10,929

Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

Segment Information

Schedule of segment information


	For the Twelve months ended December 31, 2021
	Banking		Wealth Management		Total Segments
Net interest income	$	60,461	$	—	$	60,461
Noninterest income		2,461		9,641		12,102
Provision for loan loss		(2,428)		—		(2,428)
Noninterest expenses		(36,736)		(6,722)		(43,458)
Income tax expense		(4,777)		(613)		(5,390)
Net income	$	18,981	$	2,306	$	21,287
Total assets	$	2,133,440	$	9,143	$	2,142,583


	For the Twelve months ended December 31, 2020
	Banking		Wealth Management		Total Segments
Net interest income	$	48,739	$	—	$	48,739
Noninterest income		3,365		8,058		11,423
Provision for loan loss		(5,413)		—		(5,413)
Noninterest expenses		(33,838)		(6,393)		(40,231)
Income tax expense		(2,510)		(329)		(2,839)
Net income	$	10,343	$	1,336	$	11,679
Total assets	$	1,656,517	$	8,419	$	1,664,936

Summary of Significant Accounting Policies - Nature of Operations and Principles of Consolidation (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) location	Dec. 31, 2020 USD ($)
Loans
Assets held in an agency or fiduciary capacity \| $	$ 1,325,894	$ 1,189,119
Orange County
Loans
Number of offices in New York	8
Westchester County
Loans
Number of offices in New York	7
Rockland County
Loans
Number of offices in New York	2
Bronx County
Loans
Number of offices in New York	1

Summary of Significant Accounting Policies - Lending (Details)	12 Months Ended
	Dec. 31, 2021
Commercial real estate. \| Commercial real estate \| Maximum
Loans
Maturity period	15 years
Amortization period	30 years
Loan To Value ratio	75.00%
Residential real estate. \| Residential real estate
Loans
Threshold percentage for private mortgage insurance	80.00%
Residential real estate. \| Residential real estate \| Maximum
Loans
Maturity period	20 years
Loan To Value ratio	80.00%
Residential real estate. \| Home equity
Loans
Draw period	10 years
Repayment period	15 years
Residential real estate. \| Home equity \| Maximum
Loans
Maturity period	15 years
Loan To Value ratio	85.00%

Summary of Significant Accounting Policies - Premises and Equipment (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based payments
Unvested shares	22,922	25,369
Buildings and improvements \| Minimum
Premises and Equipment
Useful life	5 years
Buildings and improvements \| Maximum
Premises and Equipment
Useful life	50 years
Furniture and equipment \| Minimum
Premises and Equipment
Useful life	3 years
Furniture and equipment \| Maximum
Premises and Equipment
Useful life	8 years

Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Nature of Operations and Summary of Significant Accounting Policies
Operating lease right-of-use assets	$ 3,038	$ 1,930
Operating lease liability	$ 3,038	$ 1,930

Summary of Significant Accounting Policies - Correction of Prior Period Error (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Nature of Operations and Summary of Significant Accounting Policies
Total loans	$ 1,291,428	$ 1,152,738
Total stockholders' equity	182,836	135,423	$ 122,063
Interest and fees on loans	57,524	47,522
Salaries and employee benefits	19,710	17,788
Income tax expense	5,390	2,839
Net Income	$ 21,287	$ 11,679
Basic earnings per share	$ 4.28	$ 2.59
Diluted earnings per share	$ 4.28	$ 2.59

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

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+ 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

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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+ Details

Investment Securities (Details) - USD ($) $ in Thousands	12 Months Ended
Investment Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2021
Investment securities
Amortized Cost	$ 323,841	$ 466,153
Unrealized Gains	6,967	4,152
Unrealized Losses	(703)	(5,508)
Fair Value	330,105	464,797
Proceeds	23,238
U.S. government agencies
Investment securities
Amortized Cost	82,409	80,596
Unrealized Gains	1,394	440
Unrealized Losses	(382)	(1,330)
Fair Value	83,421	79,706
Mortgage-backed securities
Investment securities
Amortized Cost	157,408	272,931
Unrealized Gains	3,633	1,285
Unrealized Losses	(257)	(3,784)
Fair Value	160,784	270,432
Corporate Bonds
Investment securities
Amortized Cost	10,603	20,081
Unrealized Gains	57	278
Unrealized Losses	(33)	(148)
Fair Value	10,627	20,211
Obligations of states and political subdivisions
Investment securities
Amortized Cost	73,421	92,545
Unrealized Gains	1,883	2,149
Unrealized Losses	(31)	(246)
Fair Value	$ 75,273	$ 94,448

Investment Securities - Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Investment Securities
Proceeds		$ 23,238
Gross gains		954
Gross losses		150
Net gain on sales of securities		804
Tax provision on realized net gains and loss	$ 0	$ (169)

Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Amortized Cost
Due in one year or less, Amortized Cost	$ 5,152
Due after one through five years, Amortized Cost	9,236
Due after five through ten years, Amortized Cost	57,548
Due after ten years, Amortized Cost	121,286
Total, Amortized Cost	193,222
Amortized Cost	466,153	$ 323,841
Fair Value
Due in one year or less, Fair Value	5,199
Due after one through five years, Fair Value	9,441
Due after five through ten years, Fair Value	57,141
Due after ten years, Fair Value	122,584
Total, Fair Value	194,365
Total debt securities, Fair Value	464,797	330,105
Mortgage-backed securities
Amortized Cost
Amortized Cost	272,931	157,408
Fair Value
Total debt securities, Fair Value	270,432	160,784
Debt securities pledged as collateral	$ 233,907	$ 121,233

Investment Securities - Securities with unrealized and unrecognized losses (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Investment securities
Fair Value, Less than 12 Months	$ 210,546	$ 70,452
Fair Value, 12 Months or More	49,642	22,666
Fair Value, Total	260,188	93,118
Unrealized Losses, Less than 12 Months	(3,680)	(324)
Unrealized Losses, 12 Months or More	(1,828)	(379)
Unrealized Losses, Total	(5,508)	(703)
U.S. government agencies
Investment securities
Fair Value, Less than 12 Months	10,337	17,948
Fair Value, 12 Months or More	32,210	20,779
Fair Value, Total	42,547	38,727
Unrealized Losses, Less than 12 Months	(121)	(52)
Unrealized Losses, 12 Months or More	(1,209)	(330)
Unrealized Losses, Total	(1,330)	(382)
Mortgage-backed securities
Investment securities
Fair Value, Less than 12 Months	177,506	35,580
Fair Value, 12 Months or More	14,134	1,887
Fair Value, Total	191,640	37,467
Unrealized Losses, Less than 12 Months	(3,273)	(208)
Unrealized Losses, 12 Months or More	(511)	(49)
Unrealized Losses, Total	(3,784)	(257)
Corporate Bonds
Investment securities
Fair Value, Less than 12 Months	9,354	1,551
Fair Value, Total	9,354	1,551
Unrealized Losses, Less than 12 Months	(148)	(33)
Unrealized Losses, Total	(148)	(33)
Obligations of states and political subdivisions
Investment securities
Fair Value, Less than 12 Months	13,349	15,373
Fair Value, 12 Months or More	3,298
Fair Value, Total	16,647	15,373
Unrealized Losses, Less than 12 Months	(138)	(31)
Unrealized Losses, 12 Months or More	(108)
Unrealized Losses, Total	$ (246)	$ (31)

Investment Securities - Narrative (Details) $ in Thousands	12 Months Ended
Investment Securities - Narrative (Details) $ in Thousands	Dec. 31, 2021 USD ($) security	Dec. 31, 2020 USD ($) security
Investment Securities
Other than temporary impairment loss recognized \| $	$ 0	$ 0
Number of securities in portfolio	252	196
Number of unrealized loss positions	78	36

Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Loans
Total loans	$ 1,291,428	$ 1,152,738
Commercial and industrial. \| Commercial and industrial
Loans
Total loans	268,508	299,049
Commercial and industrial. \| Paycheck Protection Program
Loans
Total loans	38,100	69,000
Commercial real estate. \| Commercial real estate
Loans
Total loans	852,707	698,130
Commercial real estate. \| Commercial real estate construction
Loans
Total loans	72,250	63,544
Residential real estate. \| Residential real estate
Loans
Total loans	65,248	57,941
Residential real estate. \| Home equity
Loans
Total loans	13,638	13,960
Consumer
Loans
Total loans	$ 19,077	$ 20,114

Loans - Allowance for loan losses by portfolio segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Allowance for loan losses:
Beginning balance	$ 16,172	$ 12,275
Provision for loan losses	2,428	5,413
Charge-offs	(1,267)	(1,537)
Recoveries	328	21
Ending balance	17,661	16,172
Allowance for loan losses:
individually evaluated for impairment	1,433	1,332
collectively evaluated for impairment	16,228	14,840
Total ending allowance balance	17,661	16,172
Loans:
individually evaluated for impairment	25,866	23,651
collectively evaluated for impairment	1,265,562	1,129,087
Total ending loans balance	1,291,428	1,152,738
Commercial and industrial. \| Commercial and industrial
Allowance for loan losses:
Beginning balance	4,795	5,107
Provision for loan losses	828	917
Charge-offs	(942)	(1,239)
Recoveries	220	10
Ending balance	4,901	4,795
Allowance for loan losses:
individually evaluated for impairment	137	206
collectively evaluated for impairment	4,764	4,589
Total ending allowance balance	4,901	4,795
Loans:
individually evaluated for impairment	952	2,410
collectively evaluated for impairment	267,556	296,639
Total ending loans balance	268,508	299,049
Commercial and industrial. \| Paycheck Protection Program
Loans:
Total ending loans balance	38,100	69,000
Commercial real estate. \| Commercial real estate
Allowance for loan losses:
Beginning balance	9,782	5,951
Provision for loan losses	1,326	4,046
Charge-offs		(219)
Recoveries	75	4
Ending balance	11,183	9,782
Allowance for loan losses:
individually evaluated for impairment	1,272	1,084
collectively evaluated for impairment	9,911	8,698
Total ending allowance balance	11,183	9,782
Loans:
individually evaluated for impairment	23,523	19,759
collectively evaluated for impairment	829,184	678,371
Total ending loans balance	852,707	698,130
Commercial real estate. \| Commercial real estate construction
Allowance for loan losses:
Beginning balance	801	713
Provision for loan losses	163	88
Ending balance	964	801
Allowance for loan losses:
collectively evaluated for impairment	964	801
Total ending allowance balance	964	801
Loans:
collectively evaluated for impairment	72,250	63,544
Total ending loans balance	72,250	63,544
Residential real estate. \| Residential real estate
Allowance for loan losses:
Beginning balance	381	384
Provision for loan losses	(98)	48
Charge-offs	(11)	(51)
Ending balance	272	381
Allowance for loan losses:
individually evaluated for impairment		15
collectively evaluated for impairment	272	366
Total ending allowance balance	272	381
Loans:
individually evaluated for impairment	1,227	1,358
collectively evaluated for impairment	64,021	56,583
Total ending loans balance	65,248	57,941
Residential real estate. \| Home equity
Allowance for loan losses:
Beginning balance	77	43
Provision for loan losses	3	34
Ending balance	80	77
Allowance for loan losses:
collectively evaluated for impairment	80	77
Total ending allowance balance	80	77
Loans:
individually evaluated for impairment	50
collectively evaluated for impairment	13,588	13,960
Total ending loans balance	13,638	13,960
Consumer
Allowance for loan losses:
Beginning balance	336	77
Provision for loan losses	206	280
Charge-offs	(314)	(28)
Recoveries	33	7
Ending balance	261	336
Allowance for loan losses:
individually evaluated for impairment	24	27
collectively evaluated for impairment	237	309
Total ending allowance balance	261	336
Loans:
individually evaluated for impairment	114	124
collectively evaluated for impairment	18,963	19,990
Total ending loans balance	$ 19,077	$ 20,114

Loans - Loans individually evaluated (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Unpaid Principal Balance
With no related allowance recorded	$ 15,497	$ 12,100
With an allowance recorded	10,742	13,423
Recorded Investment
With no related allowance recorded	15,159	10,727
With an allowance recorded	10,707	12,924
Allowance for Loan Losses Allocated	1,433	1,332
Average Recorded Investment
With no related allowance recorded	13,482	5,680
With an allowance recorded	11,202	12,637
Interest Income Recognized
With no related allowance recorded	599	363
With an allowance recorded	448	625
Cash Basis Interest Recognized
With no related allowance recorded	599	363
With an allowance recorded	448	625
Commercial and industrial. \| Commercial and industrial
Unpaid Principal Balance
With no related allowance recorded	1	331
With an allowance recorded	951	2,079
Recorded Investment
With no related allowance recorded	1	331
With an allowance recorded	951	2,079
Allowance for Loan Losses Allocated	137	206
Average Recorded Investment
With no related allowance recorded	187	169
With an allowance recorded	1,420	1,287
Interest Income Recognized
With no related allowance recorded	11	23
With an allowance recorded	82	147
Cash Basis Interest Recognized
With no related allowance recorded	11	23
With an allowance recorded	82	147
Commercial real estate. \| Commercial real estate
Unpaid Principal Balance
With no related allowance recorded	14,291	10,621
With an allowance recorded	9,593	11,001
Recorded Investment
With no related allowance recorded	13,953	9,248
With an allowance recorded	9,570	10,511
Allowance for Loan Losses Allocated	1,272	1,084
Average Recorded Investment
With no related allowance recorded	12,053	4,937
With an allowance recorded	9,587	11,005
Interest Income Recognized
With no related allowance recorded	555	296
With an allowance recorded	357	466
Cash Basis Interest Recognized
With no related allowance recorded	555	296
With an allowance recorded	357	466
Commercial real estate. \| Commercial real estate construction
Average Recorded Investment
With no related allowance recorded	578
Residential real estate. \| Residential real estate
Unpaid Principal Balance
With no related allowance recorded	1,155	1,148
With an allowance recorded	84	219
Recorded Investment
With no related allowance recorded	1,155	1,148
With an allowance recorded	72	210
Allowance for Loan Losses Allocated		15
Average Recorded Investment
With no related allowance recorded	639	574
With an allowance recorded	76	217
Interest Income Recognized
With no related allowance recorded	33	44
With an allowance recorded	3	5
Cash Basis Interest Recognized
With no related allowance recorded	33	44
With an allowance recorded	3	5
Residential real estate. \| Home equity
Unpaid Principal Balance
With no related allowance recorded	50
Recorded Investment
With no related allowance recorded	50
Average Recorded Investment
With no related allowance recorded	25
Consumer
Unpaid Principal Balance
With an allowance recorded	114	124
Recorded Investment
With an allowance recorded	114	124
Allowance for Loan Losses Allocated	24	27
Average Recorded Investment
With an allowance recorded	119	128
Interest Income Recognized
With an allowance recorded	6	7
Cash Basis Interest Recognized
With an allowance recorded	$ 6	$ 7

Loans - Recorded investment in non-accrual and loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Loans
Non-accrual	$ 4,560	$ 2,002
Loans Past Due Over 90 Days Non-accrual Still Accruing	1,393	520
Commercial and industrial. \| Commercial and industrial
Loans
Loans Past Due Over 90 Days Non-accrual Still Accruing	720	457
Commercial real estate. \| Commercial real estate
Loans
Non-accrual	3,928	1,345
Loans Past Due Over 90 Days Non-accrual Still Accruing	465
Residential real estate. \| Residential real estate
Loans
Non-accrual	578	657
Loans Past Due Over 90 Days Non-accrual Still Accruing		2
Residential real estate. \| Home equity
Loans
Non-accrual	50
Consumer
Loans
Non-accrual	4
Loans Past Due Over 90 Days Non-accrual Still Accruing	$ 208	$ 61

Loans - Aging of the recorded investment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
30 - 59 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	$ 1,701	$ 825
60 - 89 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	4,742	473
Greater Than 90 Days
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	2,721	2,443
Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	9,164	3,741
Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	1,282,264	1,148,997
Commercial and industrial. \| Commercial and industrial \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	541	123
Commercial and industrial. \| Commercial and industrial \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	1,519	201
Commercial and industrial. \| Commercial and industrial \| Greater Than 90 Days
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	720	457
Commercial and industrial. \| Commercial and industrial \| Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	2,780	781
Commercial and industrial. \| Commercial and industrial \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	265,728	298,268
Commercial real estate. \| Commercial real estate \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	2,873
Commercial real estate. \| Commercial real estate \| Greater Than 90 Days
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	1,161	1,345
Commercial real estate. \| Commercial real estate \| Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	4,034	1,345
Commercial real estate. \| Commercial real estate \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	848,673	696,785
Commercial real estate. \| Commercial real estate construction \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	72,250	63,544
Residential real estate. \| Residential real estate \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	26	570
Residential real estate. \| Residential real estate \| Greater Than 90 Days
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	578	580
Residential real estate. \| Residential real estate \| Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	604	1,150
Residential real estate. \| Residential real estate \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	64,644	56,791
Residential real estate. \| Home equity \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	58
Residential real estate. \| Home equity \| Greater Than 90 Days
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	50
Residential real estate. \| Home equity \| Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	108
Residential real estate. \| Home equity \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	13,530	13,960
Consumer \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	1,134	132
Consumer \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	292	272
Consumer \| Greater Than 90 Days
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	212	61
Consumer \| Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	1,638	465
Consumer \| Not Past Due
Financing Receivable, Recorded Investments, Aging [Abstract]
Loans	$ 17,439	$ 19,649

Loans - Troubled debt restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan
Loans
Loans in process of foreclosure	$ 2,024	$ 1,925
Recorded investment in troubled debt restructurings	14,500	15,951
Allocated specific allowance	687	918
Commitments to lend additional funds	0	0
Loans restructured loans that defaulted	$ 0	$ 0
Loans modified resulting in TDRs \| loan	0	0
Period of time loans are not past due in which TDR loans are performing	30 days
Residential real estate. \| Residential real estate
Loans
Loans in process of foreclosure	$ 578	$ 578

Loans - Composition of loans by loan segments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan
Loans
Number of Loans \| loan	0	0
Unpaid Principal Balance \| $	$ 14,500	$ 15,951
Covid 19 related modifications
Loans
Number of Loans \| loan		29
Unpaid Principal Balance \| $		$ 48,768
Commercial and industrial. \| Commercial and industrial \| Covid 19 related modifications
Loans
Number of Loans \| loan		9
Unpaid Principal Balance \| $		$ 3,390
Commercial real estate. \| Commercial real estate \| Covid 19 related modifications
Loans
Number of Loans \| loan		19
Unpaid Principal Balance \| $		$ 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	Dec. 31, 2021	Dec. 31, 2020
Loans
Loans	$ 1,291,428	$ 1,152,738
Pass
Loans
Loans	1,256,950	1,133,858
Special Mention
Loans
Loans	4,885	7,187
Substandard
Loans
Loans	29,593	11,693
Commercial and industrial. \| Commercial and industrial
Loans
Loans	268,508	299,049
Commercial and industrial. \| Commercial and industrial \| Pass
Loans
Loans	252,268	293,763
Commercial and industrial. \| Commercial and industrial \| Special Mention
Loans
Loans	4,156	3,023
Commercial and industrial. \| Commercial and industrial \| Substandard
Loans
Loans	12,084	2,263
Commercial real estate. \| Commercial real estate
Loans
Loans	852,707	698,130
Commercial real estate. \| Commercial real estate \| Pass
Loans
Loans	835,787	685,808
Commercial real estate. \| Commercial real estate \| Special Mention
Loans
Loans	679	4,164
Commercial real estate. \| Commercial real estate \| Substandard
Loans
Loans	16,241	8,158
Commercial real estate. \| Commercial real estate construction
Loans
Loans	72,250	63,544
Commercial real estate. \| Commercial real estate construction \| Pass
Loans
Loans	72,250	63,544
Residential real estate. \| Residential real estate
Loans
Loans	65,248	57,941
Residential real estate. \| Residential real estate \| Pass
Loans
Loans	64,094	56,793
Residential real estate. \| Residential real estate \| Substandard
Loans
Loans	1,154	1,148
Residential real estate. \| Home equity
Loans
Loans	13,638	13,960
Residential real estate. \| Home equity \| Pass
Loans
Loans	13,588	13,960
Residential real estate. \| Home equity \| Special Mention
Loans
Loans	50
Consumer
Loans
Loans	19,077	20,114
Consumer \| Pass
Loans
Loans	18,963	19,990
Consumer \| Substandard
Loans
Loans	$ 114	$ 124

Loans - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Loans
Loans	$ 1,291,428	$ 1,152,738

Loans - Loans to certain directors and principal officers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Loans
Balance, beginning of year	$ 5,392	$ 5,443
Repayments	(316)	(51)
Balance, end of year	$ 5,076	$ 5,392

Fair Value - Assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value
Transfer of assets, Level 1 to level 2	$ 0	$ 0
Transfer of assets, Level 2 to level 1	0	0
Transfer of liabilities, Level 1 to level 2	0	0
Transfer of liabilities, Level 2 to level 1	0	0
Recurring
Fair Value
Total securities available for sale	464,797	330,105
Recurring \| U.S. government agencies
Fair Value
Total securities available for sale	79,706	83,421
Recurring \| Mortgage-backed securities
Fair Value
Total securities available for sale	270,432	160,784
Recurring \| Corporate Bonds
Fair Value
Total securities available for sale	20,211	10,627
Recurring \| Obligations of states and political subdivisions
Fair Value
Total securities available for sale	94,448	75,273
Recurring \| Level 2
Fair Value
Total securities available for sale	464,797	330,105
Recurring \| Level 2 \| U.S. government agencies
Fair Value
Total securities available for sale	79,706	83,421
Recurring \| Level 2 \| Mortgage-backed securities
Fair Value
Total securities available for sale	270,432	160,784
Recurring \| Level 2 \| Corporate Bonds
Fair Value
Total securities available for sale	20,211	10,627
Recurring \| Level 2 \| Obligations of states and political subdivisions
Fair Value
Total securities available for sale	$ 94,448	$ 75,273

Fair Value - Non-recurring (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value
Reserves allocated to impaired loans	$ 1,433	$ 1,332
Level 1 \| Nonrecurring
Fair Value
Impaired loans		6,689
Level 3 \| Nonrecurring
Fair Value
Impaired loans		6,689
Reserves allocated to impaired loans		$ 409

Fair Value - Level 3 (Details) - Nonrecurring - Level 3 $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value
Impaired loans		$ 6,689
Appraisal of collateral \| Appraisal and liquidation adjustment \| Minimum
Fair Value
Impaired loans, Measurement input	0.20
Appraisal of collateral \| Appraisal and liquidation adjustment \| Maximum
Fair Value
Impaired loans, Measurement input	0.56
Appraisal of collateral \| Appraisal and liquidation adjustment \| Weighted average
Fair Value
Impaired loans, Measurement input	(0.39)
Commercial real estate. \| Appraisal of collateral \| Appraisal and liquidation adjustment
Fair Value
Impaired loans	$ 6,689

Fair Value - Carrying amounts and estimated fair values (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Carrying Amount
Financial assets:
Cash and due from banks	$ 306,179	$ 121,232
Loans, net	1,273,767	1,136,566
Accrued interest receivable	6,643	6,295
Restricted investment in bank stocks	2,217	1,449
Financial liabilities:
Deposits	1,914,384	1,489,294
FHLB advances		3,000
Note payable	3,000	19,323
Subordinated notes, net of issuance costs	19,376
Accrued interest payable	250	307
Fair Value.
Financial assets:
Cash and due from banks	306,179	121,232
Loans, net	1,277,807	1,139,472
Accrued interest receivable	6,643	6,295
Financial liabilities:
Deposits	1,914,271	1,489,615
FHLB advances		3,087
Note payable	3,030	19,758
Subordinated notes, net of issuance costs	18,867
Accrued interest payable	250	307
Fair Value. \| Level 1
Financial assets:
Cash and due from banks	306,179	121,232
Financial liabilities:
Deposits	1,831,944	1,398,095
Fair Value. \| Level 2
Financial assets:
Accrued interest receivable	1,603	1,389
Financial liabilities:
Deposits	82,327	91,520
FHLB advances		3,087
Note payable	3,030	19,758
Subordinated notes, net of issuance costs	18,867
Accrued interest payable	250	307
Fair Value. \| Level 3
Financial assets:
Loans, net	1,277,807	1,139,472
Accrued interest receivable	$ 5,040	$ 4,906

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Premises and Equipment
Premises and equipment, gross	$ 29,656	$ 27,725
Accumulated depreciation and amortization	(15,055)	(13,708)
Premises and equipment, net	14,601	14,017
Depreciation	1,375	1,274
Land
Premises and Equipment
Premises and equipment, gross	3,152	3,152
Buildings and improvements
Premises and Equipment
Premises and equipment, gross	12,714	12,727
Furniture and equipment
Premises and Equipment
Premises and equipment, gross	7,053	6,514
Leasehold improvements
Premises and Equipment
Premises and equipment, gross	$ 6,737	$ 5,332

Goodwill and Intangible Assets - Changes in goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Changes in goodwill
Goodwill, Beginning of year	$ 5,359
Acquired goodwill impairment	0
Goodwill, End of year	$ 5,359

Goodwill and Intangible Assets - Acquired intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Acquired intangible assets
Gross intangible asset	$ 4,284	$ 4,284
Accumulated Amortization	(2,606)	(2,321)
Intangible amortization	285	286
Customer lists and intangible assets
Acquired intangible assets
Gross intangible asset	4,284	4,284
Accumulated Amortization	$ (2,606)	$ (2,321)

Goodwill and Intangible Assets - Estimated amortization expense (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Estimated amortization expense
2022	$ 286
2023	286
2024	286
2025	286
2026	$ 286

Deposits - Analysis of deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deposits
Non-interest bearing demand accounts	$ 701,645	$ 521,093
Interest-bearing demand accounts	301,596	236,951
Money market accounts	615,111	483,044
Savings accounts	213,592	157,007
Certificates of Deposit	82,440	91,199
Total deposits	1,914,384	1,489,294
Time deposits exceeding FDIC insurance limit of $250	$ 23,859	$ 23,747

Deposits - Scheduled maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deposits
2021 (matured not renewed)	$ 612
2022	71,780
2023	6,213
2024	3,835
Total	82,440
Deposits of executive officers, directors and principal officers	$ 6,109	$ 6,910

FHLB Advances (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
FHLB Advances
Federal Home Loan Bank (FHLB) advances	$ 0	$ 0
Additional amount available for advance	358,759	273,668
Municipal letters of credit
FHLB Advances
Line of credit outstanding	135,000	119,000
Securities
FHLB Advances
Pledge to FHLB	0	0
Loans.
FHLB Advances
Pledge to FHLB	$ 657,788	$ 537,274

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Borrowings - Notes Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Borrowings
Note payable	$ 3,000	$ 3,000
Interest rate	5.60%	5.60%

Borrowings (Details) - USD ($) $ in Thousands		12 Months Ended
Borrowings (Details) - USD ($) $ in Thousands	Nov. 16, 2019	Dec. 31, 2021	Dec. 31, 2020	Sep. 24, 2020
Borrowings
Note payable		$ 3,000	$ 3,000
Subordinated notes, net of issuance costs		$ 19,376	$ 19,323
Interest rate		5.60%	5.60%
Term loan
Borrowings
Note payable	$ 3,000
Periodic interest payment	$ 14
Subordinated notes
Borrowings
Principal amount				$ 20,000
Debt issuance costs				$ 694
Subordinated notes, net of issuance costs		$ 19,400
Interest rate		4.25%
Basis points		4.13%

Pension and other Post Retirement Plans - Changes in obligations and plan assets (Details) - Defined benefit pension plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Change in projected benefit obligation:
Beginning of year	$ 29,428	$ 26,665
Service cost	189	141
Interest cost	760	920
Benefits paid	(1,556)	(1,407)
Actuarial loss	(600)	3,109
End of year	28,221	29,428
Change in fair value of assets:
Beginning of year	39,963	31,738
Contributions	2,000	3,000
Actual return on plan assets	2,501	6,680
Benefits paid and expenses	(1,597)	(1,455)
End of year	42,867	39,963
Funded status at end of year (plan assets less benefit obligation)	$ 14,646	$ 10,535

Pension and other Post Retirement Plans - Amounts recognized in accumulated other comprehensive income (loss) (Details) - Defined benefit pension plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Amounts recognized in accumulated other comprehensive income (loss)
Total net actuarial loss	$ (3,521)	$ (4,544)
Transition asset	28	76
Amounts recognized in accumulated other comprehensive income (loss)	(3,493)	(4,468)
Accumulated benefit obligation	$ 28,221	$ 29,428

Pension and other Post Retirement Plans - Components of net periodic benefit cost and other amounts recognized in other comprehensive income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Pension and other Post Retirement Plans
Net gain	$ (1,002)	$ (1,664)
Defined benefit pension plan
Pension and other Post Retirement Plans
Service cost	189	141
Interest cost	760	920
Expected return on plan assets	(2,058)	(1,860)
Amortization of transition cost	(48)	(48)
Amortization of net loss	21	113
Net periodic benefit cost/(income)	(1,136)	(734)
Net gain	(1,002)	(1,664)
Amortization of transition asset	48	48
Amortization of prior service cost	(21)	(113)
Total recognized in other comprehensive income	(975)	(1,729)
Total recognized in net periodic benefit cost and other comprehensive income	$ (2,111)	$ (2,463)

Pension and other Post Retirement Plans - Assumptions (Details) - Defined benefit pension plan	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Pension and other Post Retirement Plans
Benefit obligation, Discount rate	2.94%	2.65%
Net Periodic Benefit Cost, Discount rate	2.65%	3.55%
Net Periodic Benefit Cost, Expected long-term rate of return on plan assets	5.25%	6.00%

Pension and other Post Retirement Plans - Investment Strategy and Allocation (Details) - Defined benefit pension plan	12 Months Ended
	Dec. 31, 2021
Defined Benefit Plan, Plan Assets, Category [Line Items]
Investments for long-term growth (as a percent)	97.00%
Investments for near term benefit payments (as a percent)	3.00%
Maximum
Defined Benefit Plan, Plan Assets, Category [Line Items]
Securities purchased in a portfolio (as a percent)	5.00%
Market value of issuer (as a percent)	8.00%
Securities less than A quality (as a percent)	13.00%
Mortgage and asset backed securities (as a percent)	10.00%

Pension and other Post Retirement Plans - Fair value of the plan assets (Details) - Defined benefit pension plan - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Pension and other Post Retirement Plans
Total plan assets	$ 42,867	$ 39,963	$ 31,738
Level 1
Pension and other Post Retirement Plans
Total plan assets		2
Level 2
Pension and other Post Retirement Plans
Total plan assets	42,867	39,961
Cash equivalents
Pension and other Post Retirement Plans
Total plan assets		2
Cash equivalents \| Level 1
Pension and other Post Retirement Plans
Total plan assets		2
Foreign currencies
Pension and other Post Retirement Plans
Total plan assets		2
Foreign currencies \| Level 1
Pension and other Post Retirement Plans
Total plan assets		2
Fixed income securities
Pension and other Post Retirement Plans
Total plan assets		2
Fixed income securities \| Level 2
Pension and other Post Retirement Plans
Total plan assets		2
Corporate Bonds
Pension and other Post Retirement Plans
Total plan assets		2
Corporate Bonds \| Level 2
Pension and other Post Retirement Plans
Total plan assets		2
Other financial instruments
Pension and other Post Retirement Plans
Total plan assets	42,867	39,959
Other financial instruments \| Level 2
Pension and other Post Retirement Plans
Total plan assets	42,867	39,959
Commingled pension trust funds-realty
Pension and other Post Retirement Plans
Total plan assets	42,867	39,959
Commingled pension trust funds-realty \| Level 2
Pension and other Post Retirement Plans
Total plan assets	$ 42,867	$ 39,959

Pension and other Post Retirement Plans - Contributions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Defined benefit pension plan
Defined Benefit Plan Disclosure [Line Items]
Contributions	$ 2,000	$ 3,000

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Pension and other Post Retirement Plans - Pension plan asset allocation (Details) - Defined benefit pension plan	Dec. 31, 2021	Dec. 31, 2020
Pension and other Post Retirement Plans
Actual allocation	100.00%	100.00%
Equity securities
Pension and other Post Retirement Plans
Target allocation	30.00%	28.25%
Actual allocation	35.65%	31.56%
Fixed income securities
Pension and other Post Retirement Plans
Target allocation	15.00%	59.75%
Actual allocation	34.98%	62.60%
Other financial instruments
Pension and other Post Retirement Plans
Target allocation	55.00%	12.00%
Actual allocation	29.37%	5.84%

Pension and other Post Retirement Plans - Estimated Future Payments (Details) - Defined benefit pension plan $ in Thousands	Dec. 31, 2021 USD ($)
Estimated Future Payments
2022	$ 1,539
2023	1,535
2024	1,568
2025	1,554
2026	1,588
Following 5 years	$ 7,626

Pension and other Post Retirement Plans - Other Postretirement Plans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) item	Dec. 31, 2020 USD ($)
Supplemental Executive Retirement Plan
Defined Benefit Plan Disclosure [Line Items]
Number of Chief Executive Officers \| item	2
Benefit plan expense	$ 58	$ 58
Estimated Future Payments
2022	79
2023	79
2024	79
2025	79
Following 5 years	396
Supplemental Executive Retirement Plan \| Accrued expenses and other liabilities
Defined Benefit Plan Disclosure [Line Items]
Benefits accrued	687	709
Performance based Supplemental Employee Retirement Plan
Defined Benefit Plan Disclosure [Line Items]
Benefit plan expense	$ 9	159
Number of vice presidents \| item	2
Deferred Directors Fee Plan
Defined Benefit Plan Disclosure [Line Items]
Benefit plan expense	$ 541	817
Deferred Directors Fee Plan \| Accrued expenses and other liabilities
Defined Benefit Plan Disclosure [Line Items]
Benefits accrued	6,955	6,703
Deferred Compensation Plan
Defined Benefit Plan Disclosure [Line Items]
Benefit plan expense	6	19
Deferred Compensation Plan \| Accrued expenses and other liabilities
Defined Benefit Plan Disclosure [Line Items]
Benefits accrued	75	209
Deferred Incentive Retirement Plan
Defined Benefit Plan Disclosure [Line Items]
Benefit plan expense	26	32
Deferred Incentive Retirement Plan \| Accrued expenses and other liabilities
Defined Benefit Plan Disclosure [Line Items]
Benefits accrued	$ 567	$ 636

Pension and other Post Retirement Plans - 401(k) Savings Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Pension and other Post Retirement Plans
Maximum annual contribution per employee (in percent)	100.00%
Employer safe harbor annual contribution (in percent)	3.00%
Minimum service eligibility for employee discretionary contribution (in years)	1 year
Discretionary contributions	$ 457	$ 501

Pension and other Post Retirement Plans - Employee discretionary contribution (Details)	12 Months Ended
	Dec. 31, 2021 item
Under age 35
Pension and other Post Retirement Plans
Employee discretionary contribution, Compensation (as a percent)	1.00%
Under age 35 \| Maximum
Pension and other Post Retirement Plans
Age of employees	35
35 years of age, but less than 45
Pension and other Post Retirement Plans
Employee discretionary contribution, Compensation (as a percent)	2.00%
35 years of age, but less than 45 \| Maximum
Pension and other Post Retirement Plans
Age of employees	45
35 years of age, but less than 45 \| Minimum
Pension and other Post Retirement Plans
Age of employees	35
45 years of age, but less than 55
Pension and other Post Retirement Plans
Employee discretionary contribution, Compensation (as a percent)	5.00%
45 years of age, but less than 55 \| Maximum
Pension and other Post Retirement Plans
Age of employees	55
45 years of age, but less than 55 \| Minimum
Pension and other Post Retirement Plans
Age of employees	45
55 years of age or older
Pension and other Post Retirement Plans
Employee discretionary contribution, Compensation (as a percent)	8.50%
55 years of age or older \| Minimum
Pension and other Post Retirement Plans
Age of employees	55

Pension and other Post Retirement Plans - Restricted stock awards (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Sep. 22, 2021	Dec. 31, 2021	Dec. 31, 2020
Pension Plan and Stock Compensation
Stock-based compensation costs		$ 69	$ 154
Shares
Non-vested at beginning of period (in shares)		25,369
Non-vested at end of period (in shares)		22,922	25,369
Restricted Stock Awards
Pension Plan and Stock Compensation
Stock-based compensation costs		$ 475	$ 413
Granted		15,162,000	14,532,000
Vesting percentage		33.00%
Unamortized expense		$ 223
Shares
Non-vested at beginning of period (in shares)		25,369
Granted (in shares)	48,004	15,162
Vested (in shares)		(15,573)
Forfeited (in shares)		(2,036)
Non-vested at end of period (in shares)		22,922	25,369
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)		28.54
Forfeited (in dollars per share)		28.99
Non-vested at end of period (in dollars per share)		$ 28.92	$ 28.78

Pension Plan and Stock Compensation - Restricted Stock Units (Details) $ in Thousands	Sep. 22, 2021 USD ($) shares
Pension Plan and Stock Compensation
Maximum discretionary contributions to a KSOP trust \| $	$ 200
Restricted Stock Units (RSUs) \| Officers
Pension Plan and Stock Compensation
Granted (in shares)	31,504
Vesting period	3 years
Restricted Stock Units (RSUs) \| Officers \| First anniversary
Pension Plan and Stock Compensation
Vesting percentage	33.00%
Restricted Stock Units (RSUs) \| Officers \| Second anniversary
Pension Plan and Stock Compensation
Vesting percentage	33.00%
Restricted Stock Units (RSUs) \| Officers \| Third anniversary
Pension Plan and Stock Compensation
Vesting percentage	33.00%
Restricted Stock Units (RSUs) \| Non-employee directors
Pension Plan and Stock Compensation
Granted (in shares)	16,500
Vesting percentage	100.00%

Income Taxes - Provision for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Current expense
Federal	$ 5,353	$ 3,007
State	440	92
Total	5,793	3,099
Deferred expense (benefit)
Federal	(326)	(140)
State	(630)	(393)
Total	(956)	(533)
Change in valuation allowance	553	273
Total provision for income taxes	$ 5,390	$ 2,839

Income Taxes - Effective income tax reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Taxes
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	$ 5,602	$ 3,049
(Decrease) increase in taxes resulting from:
Net earnings on bank-owned life insurance	(167)	(147)
Tax-exempt municipal bond income, net of disallowed interest expense	(329)	(198)
State income tax, net of federal tax benefit	209	(349)
Valuation allowance	553	273
Other	(478)	211
Total provision for income taxes	$ 5,390	$ 2,839

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Allowance for loan losses	$ 4,824	$ 4,181
Reserve for unfunded commitments	55	52
Deferred loan fees, net of costs	962	292
Deferred compensation	2,431	2,319
Available for sale securities	293
Non accrual interest	336	355
State NOL	2,284	1,977
Pension/deferred compensation OCI	894	1,098
Total deferred tax assets	12,079	10,274
Deferred tax liabilities:
Intangible assets	(902)	(761)
Organization costs-holding company	(22)	(18)
Organization costs-HVIA	(23)	(20)
Pension	(2,717)	(2,349)
Available for sale securities		(1,279)
Accumulated depreciation	(681)	(353)
Accretion	(16)	(54)
Total deferred tax liabilities	(4,361)	(4,834)
Net deferred tax asset before valuation allowance	7,718	5,440
Valuation allowance	(3,629)	(2,780)
Net deferred tax asset	$ 4,089	$ 2,660

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Income Taxes
Federal statutory rate	21.00%	21.00%
Valuation allowance	$ 3,629	$ 2,780
State
Income Taxes
Operating loss carry forwards	$ 34,000

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 135,423	$ 122,063
Net current period other comprehensive income/(loss)	(5,262)	5,863
Ending balance	182,836	135,423
Unrealized gains and losses on available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	4,949	439
Other comprehensive income/(loss) before reclassification	(6,021)	5,145
Less amounts reclassified from accumulated other comprehensive income		(635)
Net current period other comprehensive income/(loss)	(6,021)	4,510
Ending balance	(1,072)	4,949
Amortization of defined benefit pension
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(3,277)	(4,642)
Other comprehensive income/(loss) before reclassification	792	1,314
Less amounts reclassified from accumulated other comprehensive income	21	51
Net current period other comprehensive income/(loss)	771	1,365
Ending balance	(2,506)	(3,277)
Deferred Compensation Liability
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	147	159
Other comprehensive income/(loss) before reclassification	(12)	(12)
Net current period other comprehensive income/(loss)	(12)	(12)
Ending balance	135	147
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	1,819	(4,044)
Other comprehensive income/(loss) before reclassification	(5,241)	6,447
Less amounts reclassified from accumulated other comprehensive income	21	(584)
Net current period other comprehensive income/(loss)	(5,262)	5,863
Ending balance	$ (3,443)	$ 1,819

- Definition

+ References

+ Details

Accumulated Other Comprehensive Income (Loss) - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss)
Investment securities gains		$ 804
Employee benefits transition asset	$ 2,783	2,698
Employee benefits actuarial gains	1,030	1,056
Total before tax	26,677	14,518
Provision for income taxes	5,390	2,839
Net of tax	21,287	11,679
Reclassifications out of accumulated other comprehensive income (loss) \| Unrealized gains and losses on available-for-sale securities
Accumulated Other Comprehensive Income (Loss)
Investment securities gains		804
Total before tax		804
Provision for income taxes		169
Net of tax		635
Reclassifications out of accumulated other comprehensive income (loss) \| Amortization of defined benefit pension
Accumulated Other Comprehensive Income (Loss)
Employee benefits transition asset	(48)	(48)
Employee benefits actuarial gains	21	113
Total before tax	(27)	65
Provision for income taxes	(6)	14
Net of tax	(21)	51
Reclassifications out of accumulated other comprehensive income (loss) \| Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Net of tax	$ (21)	$ 584

Regulatory Capital Matters (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019	Dec. 31, 2015
Regulatory Capital Matters
Capital conservation buffer ratio	0.625		2.5	0.0
Total capital to risk weighted assets
Total capital to risk weighted assets, Actual amount	$ 192,359	$ 150,397
Total capital to risk weighted assets, Actual ratio	14.12	13.49
Total capital to risk weighted assets, For Capital Adequacy Purposes	$ 109,000	$ 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	$ 134,546	$ 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	$ 136,250	$ 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	$ 175,318	$ 136,446
Tier 1 (Core) capital to risk weighted assets, Actual ratio	12.87	12.24
Tier 1 (Core) capital to risk weighted assets, For Capital Adequacy Purposes	$ 81,750	$ 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	$ 107,296	$ 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	$ 109,000	$ 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	$ 175,318	$ 136,446
Common Tier 1 (CET1) to risk weighted assets, Actual ratio	12.87	12.24
Common Tier 1 (CET1) to risk weighted assets, For Capital Adequacy Purposes	$ 61,312	$ 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	$ 86,859	$ 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	$ 88,562	$ 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	$ 175,318	$ 136,446
Tier 1 (Core) Capital to average assets, Actual ratio	8.15	8.16
Tier 1 (Core) Capital to average assets, For Capital Adequacy Purposes	$ 86,093	$ 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	$ 107,616	$ 83,613
Tier 1 (Core) Capital to average assets, To be Well Capitalized under Prompt Corrective Action Provisions Ratio	5.00	5.00

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Renewal term	5 years
Option to extend	true
Option to terminate	true
Operating lease right-of-use assets	$ 3,038	$ 1,930
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Operating lease liability	$ 3,038	$ 1,930
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities and Other Liabilities	Accrued Liabilities and Other Liabilities
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	10 years
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year

Leases - Future undiscounted lease payments for operating leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Years Ending December 31,
2022	$ 746
2023	695
2024	537
2025	466
2026	381
Thereafter	376
Total undiscounted lease payments	3,201
Discount	163
Total discounted lease payments	$ 3,038	$ 1,930
Operating lease weighted average remaining lease term (years)	5 years 2 months 19 days
Operating lease weighted average discount rate	2.79%
Operating Lease, Expense	$ 792	$ 719

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Noninterest Income
Service charges on deposit accounts	$ 638	$ 682
Overdraft fees	279	326
Other	359	356
Trust income	4,788	4,074
Investment advisory income	4,853	4,105
Investment securities gains		804
Earnings on bank owned life insurance	793	702
Other	1,030	1,056
TOTAL NONINTEREST INCOME	12,102	11,423
Other noninterest income within the scope of ASC 606	805	657
Other noninterest income outside the scope of ASC 606	$ 225	$ 399

Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Commitments to extend credit
Financial Instruments with Off-Balance Sheet Risk
Off-balance sheet liability	$ 373,628	$ 230,200
Standby letters of credit
Financial Instruments with Off-Balance Sheet Risk
Off-balance sheet liability	$ 11,501	$ 6,510

Subsequent Events (Details) - $ / shares			12 Months Ended
Subsequent Events (Details) - $ / shares	Mar. 14, 2022	Feb. 18, 2022	Dec. 31, 2021	Dec. 31, 2020
Subsequent Event [Line Items]
Cash dividend paid			$ 0.80	$ 0.80
Subsequent Events.
Subsequent Event [Line Items]
Dividend declared		$ 0.20
Cash dividend paid	$ 0.20

Parent Company Information - Condensed Statements of Condition - (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 306,179	$ 121,232
Other assets	27,829	19,430
Total assets	2,142,583	1,664,936
Liabilities and stockholders' equity
Subordinated notes, net of issuance costs	19,376	19,323
Note payable	3,000	3,000
Total liabilities	1,959,747	1,529,513
Total stockholders' equity	182,836	135,423	$ 122,063
Total liabilities and stockholders' equity	2,142,583	1,664,936
Parent company
Assets
Cash and due from banks	24,441	10,929
Investment in subsidiaries	179,487	145,497
Goodwill and intangible assets	1,850	2,136
Other assets	211	26
Total assets	205,989	158,588
Liabilities and stockholders' equity
Subordinated notes, net of issuance costs	19,376	19,323
Note payable	3,000	3,000
Other liabilities	777	842
Total liabilities	23,153	23,165
Total stockholders' equity	182,836	135,423
Total liabilities and stockholders' equity	$ 205,989	$ 158,588

Parent Company Information - Condensed Statements of Income and Comprehensive Income - (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating Income
Total operating income	$ 64,429	$ 53,461
Operating Expenses
Salaries and employee benefits	19,710	17,788
Professional fees	3,649	3,318
Directors' fees and expenses	1,041	1,088
Intangible amortization	285	286
NET INCOME	21,287	11,679
Comprehensive income	16,025	17,542
Parent company
Operating Income
Dividend income from operating subsidiaries	5,329	4,511
Servicing Fee	372
Total operating income	5,701	4,511
Operating Expenses
Interest on borrowings	1,087	407
Salaries and employee benefits	372	514
Professional fees	172	142
Directors' fees and expenses	189	164
Intangible amortization	286	286
Other expenses and income taxes	59	450
Total operating expenses	2,165	1,963
Equity in undistributed earnings of subsidiary	17,751	9,131
NET INCOME	21,287	11,679
Comprehensive income	$ 16,025	$ 17,542

Parent Company Information - Condensed Statements of Cash Flows - (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Net income after equity in undistributed earnings of subsidiary	$ 21,287	$ 11,679
Adjustments to reconcile net income to net cash provided by operating activities
Stock-based compensation costs	69	154
Amortization of intangibles	285	286
Restricted stock expense	475	413
Net cash provided by (used in) operating activities	20,320	11,344
Cash flows from investing activities
Net cash used in investing activities	(291,307)	(330,960)
Cash flows from financing activities
Proceeds of issuance of stock offering , net of costs	35,252
Issuance of subordinated notes, net of issuance costs		19,323
Purchases of treasury stock	(379)	(1,164)
Net cash (used in) provided by financing activities	455,934	415,736
Net increase in cash and cash equivalents	184,947	96,120
Beginning cash and cash equivalents	121,232	25,112
Ending cash and cash equivalents	306,179	121,232
Parent company
Cash flows from operating activities
Net income after equity in undistributed earnings of subsidiary	21,287	11,679
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed earnings of subsidiary companies	(17,751)	(9,131)
Stock-based compensation costs	69	154
Amortization of intangibles	286	286
Restricted stock expense	475	413
Other, net	(198)	595
Net cash provided by (used in) operating activities	4,168	3,996
Cash flows from investing activities
Investment in operating subsidiary	(21,500)	(10,000)
Net cash used in investing activities	(21,500)	(10,000)
Cash flows from financing activities
Proceeds of issuance of stock offering , net of costs	35,252
Issuance of subordinated notes, net of issuance costs		19,323
Dividends paid, common stock	(4,029)	(3,585)
Purchases of treasury stock	(379)	(1,164)
Net cash (used in) provided by financing activities	30,844	14,574
Net increase in cash and cash equivalents	13,512	8,570
Beginning cash and cash equivalents	10,929	2,359
Ending cash and cash equivalents	$ 24,441	$ 10,929

Segment Information (Details) - USD ($) $ in Thousands	12 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Segment Information
Net interest income	$ 60,461	$ 48,739
Noninterest income	12,102	11,423
Provision for loan loss	(2,428)	(5,413)
Noninterest expenses	(43,458)	(40,231)
Income tax expense	(5,390)	(2,839)
NET INCOME	21,287	11,679
Total assets	2,142,583	1,664,936
Banking
Segment Information
Net interest income	60,461	48,739
Noninterest income	2,461	3,365
Provision for loan loss	(2,428)	(5,413)
Noninterest expenses	(36,736)	(33,838)
Income tax expense	(4,777)	(2,510)
NET INCOME	18,981	10,343
Total assets	2,133,440	1,656,517
Wealth Management
Segment Information
Noninterest income	9,641	8,058
Noninterest expenses	(6,722)	(6,393)
Income tax expense	(613)	(329)
NET INCOME	2,306	1,336
Total assets	$ 9,143	$ 8,419