Ohio
|
31-1359191
|
(State of Incorporation)
|
(I.R.S. Employer Identification No.)
|
420 Third Avenue,
Gallipolis, Ohio
|
45631
|
(Address of principal executive offices)
|
(ZIP Code)
|
Common shares, without par value
|
OVBC
|
The NASDAQ Stock Market LLC
|
(Title of each class)
|
(Trading Symbol)
|
(Name of each exchange on which registered)
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|||
Non-accelerated filer ☒
|
Smaller reporting company ☒
|
|||
Emerging growth company ☐
|
Page Number
|
||
PART I.
|
FINANCIAL INFORMATION
|
|
Item 1.
|
Financial Statements (Unaudited)
|
|
Consolidated Balance Sheets
|
3
|
|
Consolidated Statements of Income
|
4
|
|
Consolidated Statements of Comprehensive Income
|
5
|
|
Consolidated Statements of Changes in Shareholders’ Equity
|
6
|
|
Condensed Consolidated Statements of Cash Flows
|
7
|
|
Notes to Unaudited Consolidated Financial Statements
|
8
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
32
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
44
|
Item 4.
|
Controls and Procedures
|
44
|
PART II.
|
OTHER INFORMATION
|
|
Item 1.
|
Legal Proceedings
|
44
|
Item 1A.
|
Risk Factors
|
44
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
44
|
Item 3.
|
Defaults Upon Senior Securities
|
45
|
Item 4.
|
Mine Safety Disclosures
|
45
|
Item 5.
|
Other Information
|
45
|
Item 6.
|
Exhibits
|
46
|
Signatures
|
47
|
September 30,
2023
|
December 31,
2022
|
|||||||
ASSETS
|
||||||||
Cash and noninterest-bearing deposits with banks
|
$
|
15,929
|
$
|
14,330
|
||||
Interest-bearing deposits with banks
|
75,261
|
31,660
|
||||||
Total cash and cash equivalents
|
91,190
|
45,990
|
||||||
Certificates of deposit in financial institutions
|
—
|
1,862
|
||||||
Securities available for sale
|
166,842
|
184,074
|
||||||
Securities held to maturity, net of allowance for credit losses of $2 in 2023 and $0 in 2022; (estimated fair
value: 2023 - $7,929; 2022 - $8,460)
|
8,946
|
9,226
|
||||||
Restricted investments in bank stocks
|
5,062
|
5,953
|
||||||
Total loans
|
961,222
|
885,049
|
||||||
Less: Allowance for credit losses
|
(8,173
|
)
|
(5,269
|
)
|
||||
Net loans
|
953,049
|
879,780
|
||||||
Premises and equipment, net
|
21,351
|
20,436
|
||||||
Premises and equipment held for sale, net
|
578
|
593
|
||||||
Accrued interest receivable
|
3,743
|
3,112
|
||||||
Goodwill
|
7,319
|
7,319
|
||||||
Other intangible assets, net
|
11
|
29
|
||||||
Bank owned life insurance and annuity assets
|
40,478
|
39,627
|
||||||
Operating lease right-of-use asset, net
|
1,251
|
1,294
|
||||||
Deferred tax assets
|
7,050
|
6,266
|
||||||
Other assets
|
7,082
|
5,226
|
||||||
Total assets
|
$
|
1,313,952
|
$
|
1,210,787
|
||||
LIABILITIES
|
||||||||
Noninterest-bearing deposits
|
$
|
326,545
|
$
|
354,413
|
||||
Interest-bearing deposits
|
768,995
|
673,242
|
||||||
Total deposits
|
1,095,540
|
1,027,655
|
||||||
Other borrowed funds
|
45,751
|
17,945
|
||||||
Subordinated debentures
|
8,500
|
8,500
|
||||||
Operating lease liability
|
1,251
|
1,294
|
||||||
Allowance for credit losses on off-balance sheet commitments
|
643
|
—
|
||||||
Other liabilities
|
25,474
|
20,365
|
||||||
Total liabilities
|
1,177,159
|
1,075,759
|
||||||
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 5)
|
—
|
—
|
||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Common stock ($1.00 stated value per share, 10,000,000 shares authorized; 2023 - 5,470,453 shares issued; 2022 - 5,465,707 shares issued)
|
5,470
|
5,465
|
||||||
Additional paid-in capital
|
51,842
|
51,722
|
||||||
Retained earnings
|
112,699
|
109,320
|
||||||
Accumulated other comprehensive income (loss)
|
(16,470
|
)
|
(14,813
|
)
|
||||
Treasury stock, at cost (2023 - 697,321 shares; 2022 - 693,933 shares)
|
(16,748
|
)
|
(16,666
|
)
|
||||
Total shareholders’ equity
|
136,793
|
135,028
|
||||||
Total liabilities and shareholders’ equity
|
$
|
1,313,952
|
$
|
1,210,787
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Interest and dividend income:
|
||||||||||||||||
Loans, including fees
|
$
|
14,299
|
$
|
10,984
|
$
|
39,868
|
$
|
30,802
|
||||||||
Securities
|
||||||||||||||||
Taxable
|
917
|
889
|
2,809
|
2,435
|
||||||||||||
Tax exempt
|
40
|
45
|
123
|
137
|
||||||||||||
Dividends
|
71
|
95
|
236
|
222
|
||||||||||||
Interest-bearing deposits with banks
|
601
|
516
|
1,698
|
802
|
||||||||||||
Other interest
|
4
|
3
|
9
|
12
|
||||||||||||
15,932
|
12,532
|
44,743
|
34,410
|
|||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
4,058
|
504
|
8,981
|
1,530
|
||||||||||||
Other borrowed funds
|
341
|
101
|
612
|
310
|
||||||||||||
Subordinated debentures
|
157
|
82
|
438
|
182
|
||||||||||||
4,556
|
687
|
10,031
|
2,022
|
|||||||||||||
Net interest income
|
11,376
|
11,845
|
34,712
|
32,388
|
||||||||||||
Provision for (recovery of) credit losses
|
888
|
(378
|
)
|
1,401
|
(691
|
)
|
||||||||||
Net interest income after provision for (recovery of) credit losses
|
10,488
|
12,223
|
33,311
|
33,079
|
||||||||||||
Noninterest income:
|
||||||||||||||||
Service charges on deposit accounts
|
714
|
662
|
1,978
|
1,815
|
||||||||||||
Trust fees
|
79
|
80
|
247
|
247
|
||||||||||||
Income from bank owned life insurance and annuity assets
|
219
|
205
|
637
|
674
|
||||||||||||
Mortgage banking income
|
42
|
185
|
133
|
640
|
||||||||||||
Electronic refund check / deposit fees
|
—
|
—
|
675
|
675
|
||||||||||||
Debit / credit card interchange income
|
1,285
|
1,291
|
3,673
|
3,603
|
||||||||||||
Tax preparation fees
|
3
|
3
|
667
|
741
|
||||||||||||
Other
|
226
|
189
|
1,038
|
576
|
||||||||||||
2,568
|
2,615
|
9,048
|
8,971
|
|||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
5,909
|
5,867
|
17,634
|
17,120
|
||||||||||||
Occupancy
|
493
|
517
|
1,440
|
1,419
|
||||||||||||
Furniture and equipment
|
351
|
296
|
979
|
841
|
||||||||||||
Professional fees
|
430
|
418
|
1,296
|
1,405
|
||||||||||||
Marketing expense
|
241
|
260
|
723
|
718
|
||||||||||||
FDIC insurance
|
141
|
80
|
421
|
250
|
||||||||||||
Data processing
|
737
|
776
|
2,183
|
2,136
|
||||||||||||
Software
|
621
|
561
|
1,771
|
1,620
|
||||||||||||
Foreclosed assets
|
6
|
11
|
15
|
48
|
||||||||||||
Amortization of intangibles
|
5
|
8
|
18
|
28
|
||||||||||||
Other
|
1,445
|
1,553
|
4,586
|
4,573
|
||||||||||||
10,379
|
10,347
|
31,066
|
30,158
|
|||||||||||||
Income before income taxes
|
2,677
|
4,491
|
11,293
|
11,892
|
||||||||||||
Provision for income taxes
|
426
|
801
|
1,885
|
2,078
|
||||||||||||
NET INCOME
|
$
|
2,251
|
$
|
3,690
|
$
|
9,408
|
$
|
9,814
|
||||||||
Earnings per share
|
$
|
0.47
|
$
|
0.77
|
$
|
1.97
|
$
|
2.06
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net Income
|
$
|
2,251
|
$
|
3,690
|
$
|
9,408
|
$
|
9,814
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Change in unrealized gain (loss) on available for sale securities
|
(3,033
|
)
|
(8,403
|
)
|
(2,097
|
)
|
(24,567
|
)
|
||||||||
Related tax (expense) benefit
|
636
|
1,764
|
440
|
5,159
|
||||||||||||
Total other comprehensive income (loss), net of tax
|
(2,397
|
)
|
(6,639
|
)
|
(1,657
|
)
|
(19,408
|
)
|
||||||||
Total comprehensive income (loss)
|
$
|
(146
|
)
|
$
|
(2,949
|
)
|
$
|
7,751
|
$
|
(9,594
|
)
|
Quarter-to-date
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
Shareholders’
Equity
|
||||||||||||||||||
Balance at July 1, 2023
|
$
|
5,470
|
$
|
51,842
|
$
|
111,499
|
$
|
(14,073
|
)
|
$
|
(16,666
|
)
|
$
|
138,072
|
||||||||||
Net income
|
—
|
—
|
2,251
|
—
|
—
|
2,251
|
||||||||||||||||||
Other comprehensive loss, net
|
—
|
—
|
—
|
(2,397
|
)
|
—
|
(2,397
|
)
|
||||||||||||||||
Cash dividends, $0.22 per share
|
—
|
—
|
(1,051
|
)
|
—
|
—
|
(1,051
|
)
|
||||||||||||||||
Shares acquired for treasury, 3,388 shares
|
—
|
—
|
—
|
—
|
(82
|
)
|
(82
|
)
|
||||||||||||||||
Balance at September 30, 2023
|
$
|
5,470
|
$
|
51,842
|
$
|
112,699
|
$
|
(16,470
|
)
|
$
|
(16,748
|
)
|
$
|
136,793
|
||||||||||
Balance at July 1, 2022
|
$
|
5,465
|
$
|
51,722
|
$
|
104,110
|
$
|
(12,061
|
)
|
$
|
(16,666
|
)
|
$
|
132,570
|
||||||||||
Net income
|
—
|
—
|
3,690
|
—
|
—
|
3,690
|
||||||||||||||||||
Other comprehensive loss, net
|
—
|
—
|
—
|
(6,639
|
)
|
—
|
(6,639
|
)
|
||||||||||||||||
Cash dividends, $0.21 per share
|
—
|
—
|
(1,001
|
)
|
—
|
—
|
(1,001
|
)
|
||||||||||||||||
Balance at September 30, 2022
|
$
|
5,465
|
$
|
51,722
|
$
|
106,799
|
$
|
(18,700
|
)
|
$
|
(16,666
|
)
|
$
|
128,620
|
Year-to-date
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
Shareholders’
Equity
|
||||||||||||||||||
Balance at January 1, 2023
|
$
|
5,465
|
$
|
51,722
|
$
|
109,320
|
$
|
(14,813
|
)
|
$
|
(16,666
|
)
|
$
|
135,028
|
||||||||||
Cumulative change in adopting ASU 2016-13
|
—
|
—
|
(2,209
|
)
|
—
|
—
|
(2,209
|
)
|
||||||||||||||||
Balance at January 1, 2023 (as adjusted for change in adopting ASU 2016-13)
|
5,465
|
51,722
|
107,111
|
(14,813
|
)
|
(16,666
|
)
|
132,819
|
||||||||||||||||
Net income
|
—
|
—
|
9,408
|
—
|
—
|
9,408
|
||||||||||||||||||
Other comprehensive loss, net
|
—
|
—
|
—
|
(1,657
|
)
|
—
|
(1,657
|
)
|
||||||||||||||||
Cash dividends, $0.80 per share
|
—
|
—
|
(3,820
|
)
|
—
|
—
|
(3,820
|
)
|
||||||||||||||||
Common Stock issued to ESOP, 4,746 shares
|
5
|
120
|
—
|
—
|
—
|
125
|
||||||||||||||||||
Shares acquired for treasury, 3,388 shares
|
—
|
—
|
—
|
—
|
(82
|
)
|
(82
|
)
|
||||||||||||||||
Balance at September 30, 2023
|
$
|
5,470
|
$
|
51,842
|
$
|
112,699
|
$
|
(16,470
|
)
|
$
|
(16,748
|
)
|
$
|
136,793
|
||||||||||
Balance at January 1, 2022
|
$
|
5,447
|
$
|
51,165
|
$
|
100,702
|
$
|
708
|
$
|
(16,666
|
)
|
$
|
141,356
|
|||||||||||
Net income
|
—
|
—
|
9,814
|
—
|
—
|
9,814
|
||||||||||||||||||
Other comprehensive loss, net
|
—
|
—
|
—
|
(19,408
|
)
|
—
|
(19,408
|
)
|
||||||||||||||||
Cash dividends, $0.78 per share
|
—
|
—
|
(3,717
|
)
|
—
|
—
|
(3,717
|
)
|
||||||||||||||||
Common stock issued to ESOP, 18,522 shares
|
18
|
557
|
—
|
—
|
—
|
575
|
||||||||||||||||||
Balance at September 30, 2022
|
$
|
5,465
|
$
|
51,722
|
$
|
106,799
|
$
|
(18,700
|
)
|
$
|
(16,666
|
)
|
$
|
128,620
|
Nine months ended
September 30,
|
||||||||
2023
|
2022
|
|||||||
Net cash provided by operating activities:
|
$
|
14,147
|
$
|
10,236
|
||||
Investing activities:
|
||||||||
Proceeds from maturities and paydowns of securities available for sale
|
16,090
|
22,652
|
||||||
Purchases of securities available for sale
|
—
|
(54,103
|
)
|
|||||
Proceeds from calls and maturities of securities held to maturity
|
262
|
634
|
||||||
Purchase of securities held to maturity
|
(586
|
)
|
(1,071
|
)
|
||||
Proceeds from maturities of certificates of deposit in financial institutions
|
2,100
|
445
|
||||||
Purchase of certificates of deposits in financial institutions
|
(245
|
)
|
—
|
|||||
Purchase of restricted investments in bank stocks
|
(969
|
)
|
—
|
|||||
Redemptions of restricted investments in bank stocks
|
1,860
|
1,312
|
||||||
Net change in loans
|
(76,950
|
)
|
(25,695
|
)
|
||||
Purchases of premises and equipment
|
(1,984
|
)
|
(1,662
|
)
|
||||
Disposals of premises and equipment
|
—
|
420
|
||||||
Proceeds from building grant
|
—
|
200
|
||||||
Reimbursement of building grant
|
(100
|
)
|
—
|
|||||
Purchases of bank owned life insurance and annuity assets
|
(250
|
)
|
(1,462
|
)
|
||||
Withdrawals from annuity asset
|
36
|
—
|
||||||
Net cash (used in) investing activities
|
(60,736
|
)
|
(58,330
|
)
|
||||
Financing activities:
|
||||||||
Change in deposits
|
67,885
|
14,417
|
||||||
Cash dividends
|
(3,820
|
)
|
(3,718
|
)
|
||||
Purchases of treasury stock
|
(82
|
)
|
—
|
|||||
Proceeds from Federal Home Loan Bank borrowings
|
30,000
|
—
|
||||||
Repayment of Federal Home Loan Bank borrowings
|
(2,212
|
)
|
(1,528
|
)
|
||||
Change in other short-term borrowings
|
18
|
—
|
||||||
Net cash provided by financing activities
|
91,789
|
9,171
|
||||||
Change in cash and cash equivalents
|
45,200
|
(38,923
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
45,990
|
152,034
|
||||||
Cash and cash equivalents at end of period
|
$
|
91,190
|
$
|
113,111
|
||||
Supplemental disclosure:
|
||||||||
Cash paid for interest
|
$
|
5,762
|
$
|
2,137
|
||||
Cash paid for income taxes
|
2,300
|
1,350
|
||||||
Operating lease liability arising from obtaining right-of-use asset
|
187
|
108
|
|
January 1, 2023
|
|||||||||||
As Reported
Under ASC
326
|
Pre-ASC 326
Adoption
|
Impact of
ASC 326
Adoption
|
||||||||||
Assets:
|
||||||||||||
ACL - HTM debt securities
|
||||||||||||
Obligations of states and political subdivisions
|
$
|
3
|
$
|
—
|
$
|
3
|
||||||
ACL - Loans
|
||||||||||||
Residential real estate
|
2,026
|
681
|
1,345
|
|||||||||
Commercial real estate
|
2,200
|
2,038
|
162
|
|||||||||
Commercial and industrial
|
1,177
|
1,293
|
(116
|
)
|
||||||||
Consumer
|
2,028
|
1,257
|
771
|
|||||||||
Total ACL - Loans
|
$
|
7,431
|
$
|
5,269
|
$
|
2,162
|
||||||
Deferred tax assets
|
$
|
6,853
|
$
|
6,266
|
$
|
587
|
||||||
Liabilities:
|
||||||||||||
ACL - Off-balance sheet commitments
|
$
|
631
|
$
|
—
|
$
|
631
|
Portfolio Segment
|
Measurement Method
|
Loss Driver
|
||
Residential real estate
|
Cumulative Undiscounted Expected Loss
|
National Unemployment, National GDP
|
||
Commercial real estate:
|
||||
Owner-occupied
|
Cumulative Undiscounted Expected Loss
|
National Unemployment, National GDP
|
||
Nonowner-occupied
|
Cumulative Undiscounted Expected Loss
|
National Unemployment, National GDP
|
||
Construction
|
Cumulative Undiscounted Expected Loss
|
National Unemployment, National GDP
|
||
Commercial and industrial
|
Cumulative Undiscounted Expected Loss
|
National Unemployment, National GDP
|
||
Consumer:
|
||||
Automobile
|
Cumulative Undiscounted Expected Loss
|
National Unemployment
|
||
Home equity
|
Cumulative Undiscounted Expected Loss
|
National Unemployment
|
||
Other
|
Cumulative Undiscounted Expected Loss, Remaining Life Method
|
National Unemployment
|
Fair Value Measurements at September 30, 2023 Using
|
||||||||||||
Quoted Prices in Active
Markets for Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||||
Assets:
|
||||||||||||
U.S. Government securities
|
$
|
55,863
|
$
|
—
|
$
|
—
|
||||||
U.S. Government sponsored entity securities
|
—
|
5,674
|
—
|
|||||||||
Agency mortgage-backed securities, residential
|
—
|
105,305
|
—
|
|||||||||
Interest rate swap derivatives
|
—
|
1,607
|
—
|
|||||||||
Liabilities:
|
||||||||||||
Interest rate swap derivatives
|
—
|
(1,607
|
)
|
—
|
Fair Value Measurements at December 31, 2022 Using
|
||||||||||||
Quoted Prices in Active
Markets for Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||||
Assets:
|
||||||||||||
U.S. Government securities
|
$
|
54,792
|
$
|
—
|
$
|
—
|
||||||
U.S. Government sponsored entity securities
|
—
|
7,983
|
—
|
|||||||||
Agency mortgage-backed securities, residential
|
—
|
121,299
|
—
|
|||||||||
Interest rate swap derivatives
|
—
|
1,340
|
—
|
|||||||||
Liabilities:
|
||||||||||||
Interest rate swap derivatives
|
—
|
(1,340
|
)
|
—
|
Carrying
|
Fair Value Measurements at September 30, 2023 Using
|
|||||||||||||||||||
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
91,190
|
$
|
91,190
|
$
|
—
|
$
|
—
|
$
|
91,190
|
||||||||||
Certificates of deposit in financial institutions
|
-
|
—
|
-
|
—
|
-
|
|||||||||||||||
Securities available for sale
|
166,842
|
55,863
|
110,979
|
—
|
166,842
|
|||||||||||||||
Securities held to maturity
|
8,946
|
—
|
4,873
|
3,056
|
7,929
|
|||||||||||||||
Loans, net
|
953,049
|
—
|
—
|
922,791
|
922,791
|
|||||||||||||||
Interest rate swap derivatives
|
1,607
|
—
|
1,607
|
—
|
1,607
|
|||||||||||||||
Accrued interest receivable
|
3,743
|
—
|
595
|
3,148
|
3,743
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
1,095,540
|
774,344
|
319,424
|
—
|
1,093,768
|
|||||||||||||||
Other borrowed funds
|
45,751
|
—
|
43,888
|
—
|
43,888
|
|||||||||||||||
Subordinated debentures
|
8,500
|
—
|
8,500
|
—
|
8,500
|
|||||||||||||||
Interest rate swap derivatives
|
1,607
|
—
|
1,607
|
—
|
1,607
|
|||||||||||||||
Accrued interest payable
|
4,701
|
—
|
4,701
|
—
|
4,701
|
Carrying
|
Fair Value Measurements at December 31, 2022 Using
|
|||||||||||||||||||
Value
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
45,990
|
$
|
45,990
|
$
|
—
|
$
|
—
|
$
|
45,990
|
||||||||||
Certificates of deposit in financial institutions
|
1,862
|
—
|
1,862
|
—
|
1,862
|
|||||||||||||||
Securities available for sale
|
184,074
|
54,792
|
129,282
|
—
|
184,074
|
|||||||||||||||
Securities held to maturity
|
9,226
|
—
|
4,987
|
3,473
|
8,460
|
|||||||||||||||
Loans, net
|
879,780
|
—
|
—
|
846,870
|
846,870
|
|||||||||||||||
Interest rate swap derivatives
|
1,340
|
—
|
1,340
|
—
|
1,340
|
|||||||||||||||
Accrued interest receivable
|
3,112
|
—
|
485
|
2,627
|
3,112
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
1,027,655
|
875,736
|
149,974
|
—
|
1,025,710
|
|||||||||||||||
Other borrowed funds
|
17,945
|
—
|
16,364
|
—
|
16,364
|
|||||||||||||||
Subordinated debentures
|
8,500
|
—
|
8,500
|
—
|
8,500
|
|||||||||||||||
Interest rate swap derivatives
|
1,340
|
—
|
1,340
|
—
|
1,340
|
|||||||||||||||
Accrued interest payable
|
432
|
1
|
431
|
—
|
432
|
Securities Available for Sale
|
Amortized
Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
September 30, 2023
|
||||||||||||||||
U.S. Government securities
|
$
|
58,717
|
$
|
—
|
$
|
(2,854
|
)
|
$
|
55,863
|
|||||||
U.S. Government sponsored entity securities
|
6,527
|
—
|
(853
|
)
|
5,674
|
|||||||||||
Agency mortgage-backed securities, residential
|
122,446
|
—
|
(17,141
|
)
|
105,305
|
|||||||||||
Total securities
|
$
|
187,690
|
$
|
—
|
$
|
(20,848
|
)
|
$
|
166,842
|
|||||||
December 31, 2022
|
||||||||||||||||
U.S. Government securities
|
$
|
57,698
|
$
|
—
|
$
|
(2,906
|
)
|
$
|
54,792
|
|||||||
U.S. Government sponsored entity securities
|
8,845
|
—
|
(862
|
)
|
7,983
|
|||||||||||
Agency mortgage-backed securities, residential
|
136,282
|
—
|
(14,983
|
)
|
121,299
|
|||||||||||
Total securities
|
$
|
202,825
|
$
|
—
|
$
|
(18,751
|
)
|
$
|
184,074
|
Securities Held to Maturity
|
Amortized
Cost
|
Gross Unrecognized
Gains
|
Gross Unrecognized
Losses
|
Estimated
Fair Value
|
Allowance for Credit Losses
|
|||||||||||||||
September 30, 2023
|
||||||||||||||||||||
Obligations of states and political subdivisions
|
$
|
8,947
|
$
|
13
|
$
|
(1,032
|
)
|
$
|
7,928
|
$
|
(2
|
)
|
||||||||
Agency mortgage-backed securities, residential
|
1
|
—
|
—
|
1
|
—
|
|||||||||||||||
Total securities
|
$
|
8,948
|
$
|
13
|
$
|
(1,032
|
)
|
$
|
7,929
|
$
|
(2
|
)
|
||||||||
December 31, 2022
|
||||||||||||||||||||
Obligations of states and political subdivisions
|
$
|
9,225
|
$
|
32
|
$
|
(798
|
)
|
$
|
8,459
|
|||||||||||
Agency mortgage-backed securities, residential
|
1
|
—
|
—
|
1
|
||||||||||||||||
Total securities
|
$
|
9,226
|
$
|
32
|
$
|
(798
|
)
|
$
|
8,460
|
Available for Sale
|
Held to Maturity
|
|||||||||||||||
Debt Securities:
|
Amortized
Cost
|
Estimated
Fair Value
|
Amortized
Cost
|
Estimated
Fair Value
|
||||||||||||
Due in one year or less
|
$
|
18,390
|
$
|
18,203
|
$
|
585
|
$
|
584
|
||||||||
Due in over one to five years
|
46,854
|
43,334
|
3,885
|
3,658
|
||||||||||||
Due in over five to ten years
|
—
|
—
|
2,207
|
1,850
|
||||||||||||
Due after ten years
|
—
|
—
|
2,270
|
1,836
|
||||||||||||
Agency mortgage-backed securities, residential
|
122,446
|
105,305
|
1
|
1
|
||||||||||||
Total debt securities
|
$
|
187,690
|
$
|
166,842
|
$
|
8,948
|
$
|
7,929
|
September 30, 2023
|
Less Than 12 Months
|
12 Months or More
|
Total
|
|||||||||||||||||||||
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
|||||||||||||||||||
Securities Available for Sale
|
||||||||||||||||||||||||
U.S. Government securities
|
$
|
12,257
|
$
|
(232
|
)
|
$
|
43,606
|
$
|
(2,622
|
)
|
$
|
55,863
|
$
|
(2,854
|
)
|
|||||||||
U.S. Government sponsored entity securities
|
—
|
—
|
5,674
|
(853
|
)
|
5,674
|
(853
|
)
|
||||||||||||||||
Agency mortgage-backed securities,
|
||||||||||||||||||||||||
residential
|
—
|
—
|
105,305
|
(17,141
|
)
|
105,305
|
(17,141
|
)
|
||||||||||||||||
Total available for sale
|
$
|
12,257
|
$
|
(232
|
)
|
$
|
154,585
|
$
|
(20,616
|
)
|
$
|
166,842
|
$
|
(20,848
|
)
|
December 31, 2022
|
Less Than 12 Months
|
12 Months or More
|
Total
|
|||||||||||||||||||||
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
|||||||||||||||||||
Securities Available for Sale
|
||||||||||||||||||||||||
U.S. Government securities
|
$
|
36,460
|
$
|
(977
|
)
|
$
|
18,332
|
$
|
(1,929
|
)
|
$
|
54,792
|
$
|
(2,906
|
)
|
|||||||||
U.S Government sponsored entity securities
|
2,786
|
(60
|
)
|
5,197
|
(802
|
)
|
7,983
|
(862
|
)
|
|||||||||||||||
Agency mortgage-backed securities,
|
||||||||||||||||||||||||
residential
|
71,510
|
(7,178
|
)
|
49,789
|
(7,805
|
)
|
121,299
|
(14,983
|
)
|
|||||||||||||||
Total available for sale
|
$
|
110,756
|
$
|
(8,215
|
)
|
$
|
73,318
|
$
|
(10,536
|
)
|
$
|
184,074
|
$
|
(18,751
|
)
|
Held to Maturity Debt Securities
|
Nine months ended
September 30, 2023
|
|||
Allowance for credit losses:
|
||||
Beginning balance
|
$
|
—
|
||
Impact of adopting ASC 326
|
3
|
|||
Provision for (recovery of) credit loss expense
|
(1
|
)
|
||
Allowance for credit losses ending balance
|
$
|
2
|
September 30,
2023
|
December 31,
2022
|
|||||||
Residential real estate
|
$
|
321,967
|
$
|
297,036
|
||||
Commercial real estate:
|
||||||||
Owner-occupied
|
79,503
|
72,719
|
||||||
Nonowner-occupied
|
183,369
|
182,831
|
||||||
Construction
|
48,538
|
33,205
|
||||||
Commercial and industrial
|
157,275
|
151,232
|
||||||
Consumer:
|
||||||||
Automobile
|
62,216
|
54,837
|
||||||
Home equity
|
32,073
|
27,791
|
||||||
Other
|
76,281
|
65,398
|
||||||
961,222
|
885,049
|
|||||||
Less: Allowance for credit losses
|
(8,173
|
)
|
(5,269
|
)
|
||||
Loans, net
|
$
|
953,049
|
$
|
879,780
|
September 30,2023
|
Loans Past Due
90 Days And
Still Accruing
|
Nonaccrual
Loans With No
ACL
|
Nonaccrual
Loans With an
ACL
|
Total
Nonaccrual
Loans
|
||||||||||||
Residential real estate
|
$
|
17
|
$
|
—
|
$
|
1,299
|
$
|
1,299
|
||||||||
Commercial real estate:
|
||||||||||||||||
Owner-occupied
|
—
|
787
|
—
|
787
|
||||||||||||
Nonowner-occupied
|
—
|
—
|
64
|
64
|
||||||||||||
Construction
|
—
|
—
|
2
|
2
|
||||||||||||
Commercial and industrial
|
—
|
—
|
51
|
51
|
||||||||||||
Consumer:
|
||||||||||||||||
Automobile
|
55
|
—
|
188
|
188
|
||||||||||||
Home equity
|
—
|
—
|
97
|
97
|
||||||||||||
Other
|
31
|
—
|
127
|
127
|
||||||||||||
Total
|
$
|
103
|
$
|
787
|
$
|
1,828
|
$
|
2,615
|
December 31, 2022
|
Loans Past Due
90 Days And
Still Accruing
|
Nonaccrual
|
||||||
Residential real estate
|
$
|
100
|
$
|
1,708
|
||||
Commercial real estate:
|
||||||||
Owner-occupied
|
—
|
938
|
||||||
Nonowner-occupied
|
—
|
70
|
||||||
Construction
|
—
|
75
|
||||||
Commercial and industrial
|
—
|
150
|
||||||
Consumer:
|
||||||||
Automobile
|
27
|
82
|
||||||
Home equity
|
—
|
151
|
||||||
Other
|
411
|
59
|
||||||
Total
|
$
|
538
|
$
|
3,233
|
September 30, 2023
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90 Days
Or More
Past Due
|
Total
Past Due
|
Loans Not
Past Due
|
Total
|
||||||||||||||||||
Residential real estate
|
$
|
1,832
|
$
|
337
|
$
|
428
|
$
|
2,597
|
$
|
319,370
|
$
|
321,967
|
||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner-occupied
|
99
|
74
|
787
|
960
|
78,543
|
79,503
|
||||||||||||||||||
Nonowner-occupied
|
64
|
—
|
—
|
64
|
183,305
|
183,369
|
||||||||||||||||||
Construction
|
4
|
—
|
—
|
4
|
48,534
|
48,538
|
||||||||||||||||||
Commercial and industrial
|
73
|
79
|
51
|
203
|
157,072
|
157,275
|
||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Automobile
|
789
|
196
|
191
|
1,176
|
61,040
|
62,216
|
||||||||||||||||||
Home equity
|
723
|
—
|
97
|
820
|
31,253
|
32,073
|
||||||||||||||||||
Other
|
470
|
422
|
150
|
1,042
|
75,239
|
76,281
|
||||||||||||||||||
Total
|
$
|
4,054
|
$
|
1,108
|
$
|
1,704
|
$
|
6,866
|
$
|
954,356
|
$
|
961,222
|
December 31, 2022
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
90 Days
Or More
Past Due
|
Total
Past Due
|
Loans Not
Past Due
|
Total
|
||||||||||||||||||
Residential real estate
|
$
|
1,799
|
$
|
701
|
$
|
497
|
$
|
2,997
|
$
|
294,039
|
$
|
297,036
|
||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner-occupied
|
97
|
—
|
938
|
1,035
|
71,684
|
72,719
|
||||||||||||||||||
Nonowner-occupied
|
626
|
5
|
—
|
631
|
182,200
|
182,831
|
||||||||||||||||||
Construction
|
40
|
45
|
17
|
102
|
33,103
|
33,205
|
||||||||||||||||||
Commercial and industrial
|
21
|
—
|
150
|
171
|
151,061
|
151,232
|
||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Automobile
|
804
|
240
|
97
|
1,141
|
53,696
|
54,837
|
||||||||||||||||||
Home equity
|
204
|
—
|
151
|
355
|
27,436
|
27,791
|
||||||||||||||||||
Other
|
875
|
113
|
452
|
1,440
|
63,958
|
65,398
|
||||||||||||||||||
Total
|
$
|
4,466
|
$
|
1,104
|
$
|
2,302
|
$
|
7,872
|
$
|
877,177
|
$
|
885,049
|
Revolving
|
||||||||||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
Amortized
|
|||||||||||||||||||||||||||||||
September 30, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Cost Basis
|
Total
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner-occupied
|
||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
9,870
|
$
|
10,287
|
$
|
24,938
|
$
|
6,041
|
$
|
6,427
|
$
|
17,397
|
$
|
1,203
|
$
|
76,163
|
||||||||||||||||
Special Mention
|
—
|
—
|
—
|
—
|
—
|
704
|
—
|
704
|
||||||||||||||||||||||||
Substandard
|
—
|
—
|
—
|
—
|
484
|
1,853
|
299
|
2,636
|
||||||||||||||||||||||||
Doubtful
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Total
|
$
|
9,870
|
$
|
10,287
|
$
|
24,938
|
$
|
6,041
|
$
|
6,911
|
$
|
19,954
|
$
|
1,502
|
$
|
79,503
|
||||||||||||||||
Current Period gross charge-offs
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
Revolving
|
||||||||||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
Amortized
|
|||||||||||||||||||||||||||||||
September 30, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Cost Basis
|
Total
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Nonowner-occupied
|
||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
9,898
|
$
|
29,533
|
$
|
32,637
|
$
|
25,574
|
$
|
15,558
|
$
|
62,778
|
$
|
1,440
|
$
|
177,418
|
||||||||||||||||
Special Mention
|
—
|
—
|
—
|
3,251
|
—
|
1,853
|
—
|
5,104
|
||||||||||||||||||||||||
Substandard
|
—
|
—
|
847
|
—
|
—
|
—
|
—
|
847
|
||||||||||||||||||||||||
Doubtful
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Total
|
$
|
9,898
|
$
|
29,533
|
$
|
33,484
|
$
|
28,825
|
$
|
15,558
|
$
|
64,631
|
$
|
1,440
|
$
|
183,369
|
||||||||||||||||
Current Period gross charge-offs
|
$
|
—
|
$
|
—
|
$
|
132
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
132
|
Revolving
|
||||||||||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
Amortized
|
|||||||||||||||||||||||||||||||
September 30, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Cost Basis
|
Total
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Construction
|
||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
11,396
|
$
|
26,764
|
$
|
6,275
|
$
|
307
|
$
|
405
|
$
|
3,336
|
$
|
55
|
$
|
48,538
|
||||||||||||||||
Special Mention
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Substandard
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Doubtful
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Total
|
$
|
11,396
|
$
|
26,764
|
$
|
6,275
|
$
|
307
|
$
|
405
|
$
|
3,336
|
$
|
55
|
$
|
48,538
|
||||||||||||||||
Current Period gross charge-offs
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
Revolving
|
||||||||||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
Amortized
|
|||||||||||||||||||||||||||||||
September 30, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Cost Basis
|
Total
|
||||||||||||||||||||||||
Commercial and Industrial:
|
||||||||||||||||||||||||||||||||
Risk Rating
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
5,170
|
$
|
32,171
|
$
|
27,308
|
$
|
31,884
|
$
|
421
|
$
|
28,503
|
$
|
29,844
|
$
|
155,301
|
||||||||||||||||
Special Mention
|
147
|
—
|
61
|
—
|
—
|
24
|
90
|
322
|
||||||||||||||||||||||||
Substandard
|
—
|
—
|
—
|
1,454
|
—
|
198
|
—
|
1,652
|
||||||||||||||||||||||||
Doubtful
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Total
|
$
|
5,317
|
$
|
32,171
|
$
|
27,369
|
$
|
33,338
|
$
|
421
|
$
|
28,725
|
$
|
29,934
|
$
|
157,275
|
||||||||||||||||
Current Period gross charge-offs
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
29
|
$
|
29
|
December 31, 2022
|
Pass
|
Criticized
|
Classified
|
Total
|
||||||||||||
Commercial real estate:
|
||||||||||||||||
Owner-occupied
|
$
|
68,236
|
$
|
3,545
|
$
|
938
|
$
|
72,719
|
||||||||
Nonowner-occupied
|
177,479
|
5,352
|
—
|
182,831
|
||||||||||||
Construction
|
33,143
|
—
|
62
|
33,205
|
||||||||||||
Commercial and industrial
|
147,627
|
1,879
|
1,726
|
151,232
|
||||||||||||
Total
|
$
|
426,485
|
$
|
10,776
|
$
|
2,726
|
$
|
439,987
|
Revolving
|
||||||||||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
Amortized
|
|||||||||||||||||||||||||||||||
September 30, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Cost Basis
|
Total
|
||||||||||||||||||||||||
Residential Real Estate:
|
||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||
Performing
|
$
|
39,481
|
$
|
44,441
|
$
|
52,742
|
$
|
46,166
|
$
|
22,172
|
$
|
96,487
|
$
|
19,162
|
$
|
320,651
|
||||||||||||||||
Nonperforming
|
—
|
—
|
—
|
—
|
187
|
1,129
|
—
|
1,316
|
||||||||||||||||||||||||
Total
|
$
|
39,481
|
$
|
44,441
|
$
|
52,742
|
$
|
46,166
|
$
|
22,359
|
$
|
97,616
|
$
|
19,162
|
$
|
321,967
|
||||||||||||||||
Current Period gross charge-offs
|
$
|
—
|
$
|
—
|
$
|
3
|
$
|
—
|
$
|
—
|
$
|
100
|
$
|
—
|
$
|
103
|
Revolving
|
||||||||||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
Amortized
|
|||||||||||||||||||||||||||||||
September 30, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Cost Basis
|
Total
|
||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||||||
Automobile
|
||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||
Performing
|
$
|
24,641
|
$
|
22,862
|
$
|
8,264
|
$
|
3,608
|
$
|
1,508
|
$
|
1,090
|
$
|
—
|
$
|
61,973
|
||||||||||||||||
Nonperforming
|
8
|
126
|
57
|
22
|
10
|
20
|
—
|
243
|
||||||||||||||||||||||||
Total
|
$
|
24,649
|
$
|
22,988
|
$
|
8,321
|
$
|
3,630
|
$
|
1,518
|
$
|
1,110
|
$
|
—
|
$
|
62,216
|
||||||||||||||||
Current Period gross charge-offs
|
$
|
21
|
$
|
117
|
$
|
112
|
$
|
5
|
$
|
26
|
$
|
3
|
$
|
—
|
$
|
284
|
Revolving
|
||||||||||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
Amortized
|
|||||||||||||||||||||||||||||||
September 30, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Cost Basis
|
Total
|
||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||||||
Home Equity
|
||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||
Performing
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
6
|
$
|
31,970
|
$
|
31,976
|
||||||||||||||||
Nonperforming
|
—
|
—
|
—
|
—
|
—
|
—
|
97
|
97
|
||||||||||||||||||||||||
Total
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
6
|
$
|
32,067
|
$
|
32,073
|
||||||||||||||||
Current Period gross charge-offs
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
87
|
$
|
87
|
Revolving
|
||||||||||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
Amortized
|
|||||||||||||||||||||||||||||||
September 30, 2023
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Cost Basis
|
Total
|
||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||||||
Payment Performance
|
||||||||||||||||||||||||||||||||
Performing
|
$
|
15,529
|
$
|
27,250
|
$
|
12,046
|
$
|
5,017
|
$
|
1,370
|
$
|
1,084
|
$
|
13,827
|
$
|
76,123
|
||||||||||||||||
Nonperforming
|
7
|
11
|
21
|
100
|
8
|
6
|
5
|
158
|
||||||||||||||||||||||||
Total
|
$
|
15,536
|
$
|
27,261
|
$
|
12,067
|
$
|
5,117
|
$
|
1,378
|
$
|
1,090
|
$
|
13,832
|
$
|
76,281
|
||||||||||||||||
Current Period gross charge-offs
|
$
|
223
|
$
|
71
|
$
|
93
|
$
|
67
|
$
|
26
|
$
|
52
|
$
|
191
|
$
|
723
|
|
Consumer
|
|||||||||||||||||||
December 31, 2022
|
Automobile
|
Home Equity
|
Other
|
Residential
Real Estate
|
Total
|
|||||||||||||||
Performing
|
$
|
54,728
|
$
|
27,640
|
$
|
64,928
|
$
|
295,228
|
$
|
442,524
|
||||||||||
Nonperforming
|
109
|
151
|
470
|
1,808
|
2,538
|
|||||||||||||||
Total
|
$
|
54,837
|
$
|
27,791
|
$
|
65,398
|
$
|
297,036
|
$
|
445,062
|
September 30, 2023
|
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||
Beginning balance
|
$
|
2,107
|
$
|
2,252
|
$
|
1,115
|
$
|
2,097
|
$
|
7,571
|
||||||||||
Provision for credit losses
|
(44
|
)
|
238
|
68
|
550
|
812
|
||||||||||||||
Loans charged-off
|
(32
|
)
|
—
|
—
|
(453
|
)
|
(485
|
)
|
||||||||||||
Recoveries
|
25
|
73
|
7
|
170
|
275
|
|||||||||||||||
Total ending allowance balance
|
$
|
2,056
|
$
|
2,563
|
$
|
1,190
|
$
|
2,364
|
$
|
8,173
|
September 30, 2022
|
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||
Beginning balance
|
$
|
614
|
$
|
1,846
|
$
|
1,548
|
$
|
1,206
|
$
|
5,214
|
||||||||||
Provision for credit losses
|
(189
|
)
|
42
|
(308
|
)
|
77
|
(378
|
)
|
||||||||||||
Loans charged-off
|
(57
|
)
|
(20
|
)
|
—
|
(262
|
)
|
(339
|
)
|
|||||||||||
Recoveries
|
55
|
29
|
36
|
194
|
314
|
|||||||||||||||
Total ending allowance balance
|
$
|
423
|
$
|
1,897
|
$
|
1,276
|
$
|
1,215
|
$
|
4,811
|
September 30, 2023
|
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||
Beginning balance
|
$
|
681
|
$
|
2,038
|
$
|
1,293
|
$
|
1,257
|
$
|
5,269
|
||||||||||
Impact of adopting ASC 326
|
1,345
|
162
|
(116
|
)
|
771
|
2,162
|
||||||||||||||
Provision for credit losses
|
84
|
394
|
(87
|
)
|
1,000
|
1,391
|
||||||||||||||
Loans charged-off
|
(103
|
)
|
(132
|
)
|
(29
|
)
|
(1,094
|
)
|
(1,358
|
)
|
||||||||||
Recoveries
|
49
|
101
|
129
|
430
|
709
|
|||||||||||||||
Total ending allowance balance
|
$
|
2,056
|
$
|
2,563
|
$
|
1,190
|
$
|
2,364
|
$
|
8,173
|
September 30, 2022
|
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||
Beginning balance
|
$
|
980
|
$
|
2,548
|
$
|
1,571
|
$
|
1,384
|
$
|
6,483
|
||||||||||
Provision for credit losses
|
(545
|
)
|
(683
|
)
|
271
|
266
|
(691
|
)
|
||||||||||||
Loans charged-off
|
(99
|
)
|
(36
|
)
|
(618
|
)
|
(964
|
)
|
(1,717
|
)
|
||||||||||
Recoveries
|
87
|
68
|
52
|
529
|
736
|
|||||||||||||||
Total ending allowance balance
|
$
|
423
|
$
|
1,897
|
$
|
1,276
|
$
|
1,215
|
$
|
4,811
|
December 31, 2022
|
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||
Collectively evaluated for impairment
|
681
|
2,038
|
1,293
|
1,257
|
5,269
|
|||||||||||||||
Total ending allowance balance
|
$
|
681
|
$
|
2,038
|
$
|
1,293
|
$
|
1,257
|
$
|
5,269
|
||||||||||
Loans:
|
||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
—
|
$
|
1,986
|
$
|
—
|
$
|
28
|
$
|
2,014
|
||||||||||
Loans collectively evaluated for impairment
|
297,036
|
286,769
|
151,232
|
147,998
|
883,035
|
|||||||||||||||
Total ending loans balance
|
$
|
297,036
|
$
|
288,755
|
$
|
151,232
|
$
|
148,026
|
$
|
885,049
|
Collateral Type
|
||||||||||||
September 30, 2023
|
Real Estate
|
Business Assets
|
Total
|
|||||||||
Residential real estate
|
$
|
229
|
$
|
—
|
$
|
229
|
||||||
Commercial real estate:
|
||||||||||||
Owner-occupied
|
517
|
270
|
787
|
|||||||||
Consumer:
|
||||||||||||
Home equity
|
27
|
—
|
27
|
|||||||||
Total collateral dependent loans
|
$
|
773
|
$
|
270
|
$
|
1,043
|
December 31, 2022
|
Unpaid
Principal
Balance
|
Recorded
Investment
|
Allowance for
Loan Losses
Allocated
|
|||||||||
With an allowance recorded:
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
With no related allowance recorded:
|
||||||||||||
Commercial real estate:
|
||||||||||||
Owner-occupied
|
1,692
|
1,607
|
—
|
|||||||||
Nonowner-occupied
|
379
|
379
|
—
|
|||||||||
Consumer:
|
||||||||||||
Home equity
|
28
|
28
|
—
|
|||||||||
Total
|
$
|
2,099
|
$
|
2,014
|
$
|
—
|
Three months ended September 30, 2022
|
Nine months ended September 30, 2022
|
|||||||||||||||||||||||
Average Impaired
Loans
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
Average Impaired Loans
|
Interest Income Recognized
|
Interest Income Recognized
|
|||||||||||||||||||
With an allowance recorded:
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner-occupied
|
1,650
|
18
|
18
|
1,676
|
66
|
66
|
||||||||||||||||||
Nonowner-occupied
|
381
|
8
|
8
|
382
|
22
|
22
|
||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Home equity
|
14
|
1
|
1
|
22
|
1
|
1
|
||||||||||||||||||
Total
|
$
|
2,045
|
$
|
27
|
$
|
27
|
$
|
2,080
|
$
|
89
|
$
|
89
|
FHLB
Borrowings
|
Promissory
Notes
|
Totals
|
||||||||||
September 30, 2023
|
$
|
43,357
|
$
|
2,394
|
$
|
45,751
|
||||||
December 31, 2022
|
$
|
15,569
|
$
|
2,376
|
$
|
17,945
|
FHLB
Borrowings
|
Promissory
Notes
|
Totals
|
||||||||||
2023
|
$
|
1,611
|
$
|
—
|
$
|
1,611
|
||||||
2024
|
4,959
|
2,394
|
7,353
|
|||||||||
2025
|
4,983
|
—
|
4,983
|
|||||||||
2026
|
12,908
|
—
|
12,908
|
|||||||||
2027
|
11,397
|
—
|
11,397
|
|||||||||
Thereafter
|
7,499
|
—
|
7,499
|
|||||||||
$
|
43,357
|
$
|
2,394
|
$
|
45,751
|
Three Months Ended September 30,
2023
|
||||||||||||
Banking
|
Consumer
Finance
|
Total
Company
|
||||||||||
Net interest income
|
$
|
10,816
|
$
|
560
|
$
|
11,376
|
||||||
Provision for (recovery of) credit losses
|
727
|
161
|
888
|
|||||||||
Noninterest income
|
2,526
|
42
|
2,568
|
|||||||||
Noninterest expense
|
9,793
|
586
|
10,379
|
|||||||||
Provision for income taxes
|
456
|
(30
|
)
|
426
|
||||||||
Net income
|
2,366
|
(115
|
)
|
2,251
|
||||||||
Assets
|
1,299,554
|
14,398
|
1,313,952
|
Three Months Ended September 30,
2022
|
||||||||||||
Banking
|
Consumer
Finance
|
Total
Company
|
||||||||||
Net interest income
|
$
|
11,299
|
$
|
546
|
$
|
11,845
|
||||||
Provision for (recovery of) credit losses
|
(400
|
)
|
22
|
(378
|
)
|
|||||||
Noninterest income
|
2,573
|
42
|
2,615
|
|||||||||
Noninterest expense
|
9,743
|
604
|
10,347
|
|||||||||
Provision for income taxes
|
809
|
(8
|
)
|
801
|
||||||||
Net income
|
3,720
|
(30
|
)
|
3,690
|
||||||||
Assets
|
1,238,597
|
13,877
|
1,252,474
|
Nine Months Ended September 30, 2023
|
||||||||||||
Banking
|
Consumer
Finance
|
Total
Company
|
||||||||||
Net interest income
|
$
|
33,070
|
$
|
1,642
|
$
|
34,712
|
||||||
Provision for (recovery of) credit losses
|
1,351
|
50
|
1,401
|
|||||||||
Noninterest income
|
8,144
|
904
|
9,048
|
|||||||||
Noninterest expense
|
29,173
|
1,893
|
31,066
|
|||||||||
Provision for income taxes
|
1,759
|
126
|
1,885
|
|||||||||
Net income
|
8,931
|
477
|
9,408
|
|||||||||
Assets
|
1,299,554
|
14,398
|
1,313,952
|
Nine Months Ended September 30, 2022
|
||||||||||||
Banking
|
Consumer
Finance
|
Total
Company
|
||||||||||
Net interest income
|
$
|
30,791
|
$
|
1,597
|
$
|
32,388
|
||||||
Provision for (recovery of) credit losses
|
(700
|
)
|
9
|
(691
|
)
|
|||||||
Noninterest income
|
7,987
|
984
|
8,971
|
|||||||||
Noninterest expense
|
28,296
|
1,862
|
30,158
|
|||||||||
Provision for income taxes
|
1,930
|
148
|
2,078
|
|||||||||
Net income
|
9,252
|
562
|
9,814
|
|||||||||
Assets
|
1,238,597
|
13,877
|
1,252,474
|
As of
September 30, 2023
|
As of
December 31, 2022
|
|||||||
Operating leases:
|
||||||||
Operating lease right-of-use assets
|
$
|
1,251
|
$
|
1,294
|
||||
Operating lease liabilities
|
1,251
|
1,294
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Operating lease cost
|
$
|
49
|
$
|
51
|
$
|
155
|
$
|
135
|
||||||||
Short-term lease expense
|
7
|
10
|
7
|
28
|
Operating Leases
|
||||
2023
(remaining)
|
$
|
49
|
||
2024
|
195
|
|||
2025
|
195
|
|||
2026
|
140
|
|||
2027
|
108
|
|||
Thereafter
|
875
|
|||
Total lease payments
|
1,562
|
|||
Less: Imputed Interest
|
(311
|
)
|
||
Total operating leases
|
$
|
1,251
|
As of
September 30, 2023
|
As of
December 31, 2022
|
|||||||
Weighted-average remaining lease term for operating leases
|
13.2 years
|
12.1 years
|
||||||
Weighted-average discount rate for operating leases
|
2.92
|
%
|
2.70
|
%
|
September 30,
2023
|
December 31,
2022
|
|||||||
Noninterest-bearing deposits
|
$
|
326,545
|
$
|
354,413
|
||||
Interest-bearing deposits:
|
||||||||
NOW accounts
|
188,649
|
209,758
|
||||||
Savings and money market
|
259,150
|
311,565
|
||||||
Time deposits of $250,000 or less
|
254,192
|
115,049
|
||||||
Time deposits of more than $250,000
|
67,004
|
36,870
|
||||||
Total interest-bearing deposits
|
768,995
|
673,242
|
||||||
Total deposits
|
$
|
1,095,540
|
$
|
1,027,655
|
Period
|
Total number of shares purchased(1)
|
Average price paid per share
|
Total number of shares purchased as part of publicly announced plans or
programs
|
Maximum approximate dollar value of shares that may yet be purchased under the plans or programs
|
||||||||||||
July 1 - 31, 2023
|
----
|
----
|
----
|
$
|
4,046
|
|||||||||||
August 1 - 31, 2023
|
1,196
|
$
|
24.55
|
1,196
|
$
|
4,016
|
||||||||||
September 1 - 30, 2023
|
2,192
|
$
|
24.17
|
2,192
|
$
|
3,963
|
||||||||||
TOTAL
|
3,388
|
$
|
24.30
|
3,388
|
$
|
3,963
|
(1)
|
On July 23, 2021, the Company announced that its Board of Directors approved a program for the repurchase of up to $5,000 in
shares of the Company’s outstanding common stock. On August 18, 2022, the Company announced that its Board of Directors approved the extension of the expiration date of the share repurchase program from August 31, 2022 to August 31, 2023.
On August 15, 2023, the Company announced that its Board of Directors approved a further extension of the expiration date of the share repurchase program to August 31, 2024.
|
Exhibit Number
|
Exhibit Description
|
|
3.1
|
||
3.2
|
||
4.1
|
||
31.1
|
||
31.2
|
||
32
|
||
101.INS #
|
XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL
document.
|
|
101.SCH #
|
XBRL Taxonomy Extension Schema: Filed herewith. #
|
|
101.CAL #
|
XBRL Taxonomy Extension Calculation Linkbase: Filed herewith. #
|
|
101.DEF #
|
XBRL Taxonomy Extension Definition Linkbase: Filed herewith. #
|
|
101.LAB #
|
XBRL Taxonomy Extension Label Linkbase: Filed herewith. #
|
|
101.PRE #
|
XBRL Taxonomy Extension Presentation Linkbase: Filed herewith. #
|
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) Filed herewith #
|
# Attached as Exhibit 101 are the following documents formatted in Inline XBRL (eXtensive Business Reporting Language): (i) Unaudited Consolidated
Balance Sheets; (ii) Unaudited Consolidated Statements of Income; (iii) Unaudited Consolidated Statements of Comprehensive Income; (iv) Unaudited Consolidated Statements of Changes in Shareholders’ Equity; (v) Unaudited Condensed Consolidated
Statements of Cash Flows; and (vi) Notes to the Unaudited Consolidated Financial Statements.
|
OHIO VALLEY BANC CORP.
|
|||
Date:
|
November 14, 2023
|
By:
|
/s/Larry E. Miller, II |
Larry E. Miller, II
|
|||
President and Chief Executive Officer
|
|||
(Principal Executive Officer)
|
|||
Date:
|
November 14, 2023
|
By:
|
/s/Scott W. Shockey |
Scott W. Shockey
|
|||
Senior Vice President and Chief Financial Officer
|
|||
(Principal Financial Officer)
|
/s/Larry E. Miller, II
|
Larry E. Miller, II
|
President and Chief Executive Officer
|
Ohio Valley Banc Corp.
|
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 14, 2023 |
By: |
/s/Larry E. Miller, II |
Larry E. Miller, II, President and CEO |
||
(Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Ohio Valley Banc Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 14, 2023 |
By: |
/s/ Scott W. Shockey |
|
Scott W. Shockey, Senior Vice President and CFO |
|||
(Principal Financial Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation. |
*/s/ Larry E. Miller, II |
*/s/ Scott W. Shockey |
|
Larry E. Miller, II |
Scott W. Shockey |
|
President and Chief Executive Officer |
Senior Vice President and Chief Financial Officer |
|
Dated: November 14, 2023 |
Dated: November 14, 2023 |
* | This certification is being furnished as required by Rule 13a-14(b) under the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code, and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the Corporation specifically incorporates it by reference in any such filing. |