Capital Adequacy - As of June 30, 2024, the Company reported total capital of 148,840thousand,representingaratioof12.77107,551 thousand, with a ratio of 9.23% to risk-weighted assets, above the minimum requirement of 4.50%[132] - The tier 1 capital was also reported at 107,551thousand,witharatioof9.2370 million as of June 30, 2024, to hedge interest rate risk associated with floating-rate time deposit accounts[144] - During the three months ended June 30, 2024, the Company recognized 199,000ingainsfromcashflowhedges,resultinginadecreaseininterestexpense[147]−Themaximumremaininglengthoftimeoverwhichforecastedtransactionsarehedgedisapproximatelytwoandahalfyears,withallhedgetransactionsterminatingbyDecember2026[147]−TheCompanyhad399,000 in gains from cash flow hedges during the six months ended June 30, 2024, leading to a decrease in interest expense[147] - The Company’s hedging policy permits a total maximum notional amount outstanding of 500millionforinterestrateswaps,caps,andswaptions[150]RevenueGrowth−CommunitybankingsegmentrevenueforthethreemonthsendedJune30,2024,was14,269,000, an increase from 13,671,000inthesameperiodof2023,representingagrowthof4.43,056,000, up from 2,792,000inthesameperiodof2023,indicatingagrowthof9.51,529,000, compared to 1,328,000forthesameperiodin2023,reflectinganincreaseof15.128,917,000, compared to 27,029,000forthesameperiodin2023,representingagrowthof7.0248.0 million as of June 30, 2024, compared to 236.6millionasofDecember31,2023,showinganincreaseof4.8939,000 at June 30, 2024, slightly down from 940,000atDecember31,2023[156]−Thecompanyrecordedaprovisionforcreditlossesrecoveryonunfundedcommitmentsof3,000 for the three months ended June 30, 2024, compared to 17,000forthesameperiodin2023[156]PensionandBenefits−Thecompanyrecognizedasettlementchargeof376,000 in connection with its defined benefit pension plan for the three months ended June 30, 2024, while no such charge was recognized in the same period of 2023[159] - The net periodic pension benefit for the three months ended June 30, 2024, was (118,000),comparedto(341,000) for the same period in 2023, indicating an improvement in pension costs[162] - The company implemented a soft freeze of its defined benefit pension plan, affecting non-union employees hired on or after January 1, 2013, and union employees hired on or after January 1, 2014, to reduce future pension costs[160] Fair Value Measurements - As of June 30, 2024, individually evaluated loans using the collateral method had a carrying value of 3.6million,reducedbyaspecificvaluationallowanceof1.6 million, resulting in a net fair value of 2.0million[170]−Thefairvalueofotherrealestateownedandrepossessedassetswasreportedat1.8 million as of June 30, 2024, with a total of 1.8millionmeasuredatLevel3[171]−Theestimatedfairvalueofinvestmentsecuritiesheldtomaturitywas60.763 million as of June 30, 2024, compared to a carrying value of 66.446million[177]−Loans,netofallowanceforcreditlossesandunearnedincome,hadafairvalueof952.143 million as of June 30, 2024, with a carrying value of 1,024.422million[177]−Depositswithstatedmaturitieshadacarryingvalueof327.566 million and a fair value of 326.983millionasofJune30,2024[177]−Thefairvalueofloansheldforsalewas241,000 as of June 30, 2024, with a carrying value of 225,000[177]−Thefairvalueofallotherborrowingswas76.200 million as of June 30, 2024, compared to a carrying value of $77.618 million[177] - Fair values for financial instruments are primarily determined using independent third-party valuations, with approximately 90% of the company's assets and liabilities considered financial instruments[175] - Changes in assumptions or estimation methodologies may significantly affect the estimated fair values of the company's financial instruments[179] - The company had no individually evaluated loans using the collateral method carried at fair value as of December 31, 2023[170]
