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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2023

CAPITAL RATIOS AND SHAREHOLDERS' EQUITY

Schedule of Actual and Required Capital Ratios


		June 30, 2023
								Minimum Regulatory
		Actual						Capital Requirements
(in thousands, except ratios)		Amount			Ratio			Amount			Ratio
Company (consolidated)
Total capital to risk-weighted assets		$	435,229		13.62	%		$	257,458		8.00	%
Common equity tier 1 capital to risk-weighted assets			343,470		10.67				144,819		4.50
Tier 1 capital to risk-weighted assets			364,090		11.31				193,093		6.00
Tier 1 capital to average assets (leverage ratio)			364,090		9.40				154,881		4.00

Bank
Total capital to risk-weighted assets		$	427,327		13.29	%		$	257,232		8.00	%
Common equity tier 1 capital to risk-weighted assets			396,188		12.33				144,594		4.50
Tier 1 capital to risk-weighted assets			396,188		12.33				192,792		6.00
Tier 1 capital to average assets (leverage ratio)			396,188		10.24				154,761		4.00


		December 31, 2022
								Minimum Regulatory
		Actual						Capital Requirements
(in thousands, except ratios)		Amount			Ratio			Amount			Ratio
Company (consolidated)
Total capital to risk-weighted assets		$	416,900		13.50	%		$	247,041		8.00	%
Common equity tier 1 capital to risk-weighted assets			326,513		10.57				138,960		4.50
Tier 1 capital to risk-weighted assets			347,133		11.24				185,281		6.00
Tier 1 capital to average assets (leverage ratio)			347,133		9.21				150,772		4.00

Bank
Total capital to risk-weighted assets		$	410,053		13.29	%		$	246,812		8.00	%
Common equity tier 1 capital to risk-weighted assets			380,286		12.33				138,832		4.50
Tier 1 capital to risk-weighted assets			380,286		12.33				185,110		6.00
Tier 1 capital to average assets (leverage ratio)			380,286		10.10				150,655		4.00

Schedule of Components of Accumulated Other Comprehensive Loss


(in thousands)		June 30, 2023			December 31, 2022
Accumulated other comprehensive income, before tax:
Net unrealized loss on AFS securities		$	(71,883)		$	(71,832)
Net unrealized loss on hedging derivatives			(1,245)			(2,333)
Net unrealized loss on post-retirement plans			(1,675)			(1,691)

Income taxes related to items of accumulated other comprehensive income:
Net unrealized loss on AFS securities			16,576			16,586
Net unrealized loss on hedging derivatives			288			539
Net unrealized loss on post-retirement plans			375			391
Accumulated other comprehensive loss		$	(57,564)		$	(58,340)

Schedule of Components of Other Comprehensive Income (Loss)

The following table presents the components of other comprehensive income (loss) for the three and six months ended June 30, 2023 and 2022:


(in thousands)		Before Tax			Tax Effect			Net of Tax
Three Months Ended June 30, 2023
Net unrealized loss on AFS securities:
Net unrealized loss arising during the period		$	(6,057)		$	1,396		$	(4,661)
Less: reclassification adjustment for gains (losses) realized in net income			—			—			—
Net unrealized loss on AFS securities			(6,057)			1,396			(4,661)

Net unrealized gain on hedging derivatives:
Net unrealized gain arising during the period			321			(73)			248
Less: reclassification adjustment for gains (losses) realized in net income			—			—			—
Net unrealized gain on cash flow hedging derivatives			321			(73)			248

Other comprehensive (loss) income		$	(5,736)		$	1,323		$	(4,413)

Three Months Ended June 30, 2022
Net unrealized loss on AFS securities:
Net unrealized loss arising during the period		$	(23,409)		$	5,330		$	(18,079)
Less: reclassification adjustment for gains (losses) realized in net income			—			—			—
Net unrealized loss on AFS securities			(23,409)			5,330			(18,079)

Net unrealized loss on hedging derivatives:
Net unrealized loss arising during the period			(1,997)			460			(1,537)
Less: reclassification adjustment for gains (losses) realized in net income			—			—			—
Net unrealized loss on cash flow hedging derivatives			(1,997)			460			(1,537)

Other comprehensive (loss) income		$	(25,406)		$	5,790		$	(19,616)



(in thousands)		Before Tax			Tax Effect			Net of Tax
Six Months Ended June 30, 2023
Net unrealized loss on AFS securities:
Net unrealized loss arising during the period		$	(17)		$	(18)		$	(35)
Less: reclassification adjustment for gains realized in net income			34			(8)			26
Net unrealized loss on AFS securities			(51)			(10)			(61)

Net unrealized gain on hedging derivatives:
Net unrealized gain arising during the period			1,088			(251)			837
Less: reclassification adjustment for gains (losses) realized in net income			—			—			—
Net unrealized gain on hedging derivatives			1,088			(251)			837

Other comprehensive income		$	1,037		$	(261)		$	776

Six Months Ended June 30, 2022
Net unrealized loss on AFS securities:
Net unrealized loss arising during the period		$	(52,244)		$	11,962		$	(40,282)
Less: reclassification adjustment for gains realized in net income			9			(2)			7
Net unrealized loss on AFS securities			(52,253)			11,964			(40,289)

Net unrealized loss on hedging derivatives:
Net unrealized loss arising during the period			(3,878)			893			(2,985)
Less: reclassification adjustment for gains (losses) realized in net income			—			—			—
Net unrealized loss on cash flow hedging derivatives			(3,878)			893			(2,985)

Other comprehensive loss		$	(56,131)		$	12,857		$	(43,274)

Schedule of Changes in Components of Accumulated Other Comprehensive Income (Loss)



		Net unrealized			Net gain (loss) on			Net unrealized
		gain (loss)			effective cash			loss
		on AFS			flow hedging			on pension
(in thousands)		Securities			derivatives			plans			Total
Three Months Ended June 30, 2023
Balance at beginning of period		$	(50,646)		$	(1,205)		$	(1,300)		$	(53,151)
Other comprehensive loss before reclassifications			(4,661)			248			—			(4,413)
Less: amounts reclassified from accumulated other comprehensive income			—			—			—			—
Total other comprehensive income			(4,661)			248			—			(4,413)
Balance at end of period		$	(55,307)		$	(957)		$	(1,300)		$	(57,564)

Three Months Ended June 30, 2022
Balance at beginning of period		$	(20,225)		$	(578)		$	(552)		$	(21,355)
Other comprehensive gain before reclassifications			(18,079)			(1,537)			—			(19,616)
Less: amounts reclassified from accumulated other comprehensive income			—			—			—			—
Total other comprehensive income			(18,079)			(1,537)			—			(19,616)
Balance at end of period		$	(38,304)		$	(2,115)		$	(552)		$	(40,971)

Six Months Ended June 30, 2023
Balance at beginning of period		$	(55,246)		$	(1,794)		$	(1,300)		$	(58,340)
Other comprehensive loss before reclassifications			(35)			837			—			802
Less: amounts reclassified from accumulated other comprehensive income			26			—			—			26
Total other comprehensive loss			(61)			837			—			776
Balance at end of period		$	(55,307)		$	(957)		$	(1,300)		$	(57,564)

Six Months Ended June 30, 2022
Balance at beginning of period		$	1,985		$	870		$	(552)		$	2,303
Other comprehensive loss before reclassifications			(40,282)			(2,985)			—			(43,267)
Less: amounts reclassified from accumulated other comprehensive income			7			—			—			7
Total other comprehensive loss			(40,289)			(2,985)			—			(43,274)
Balance at end of period		$	(38,304)		$	(2,115)		$	(552)		$	(40,971)

Reclassification out of Accumulated Other Comprehensive Income (Loss)


		Three Months Ended June 30,						Six Months Ended June 30,							Affected Line Item where
(in thousands)		2023			2022			2023			2022				Net Income is Presented
Net realized gains on AFS securities:
Before tax		$	—		$	—		$	34		$	9			Non-interest income
Tax effect			—			—			(8)			(2)			Tax expense
Total reclassifications for the period		$	—		$	—		$	26		$	7

		Three Months Ended June 30,						Six Months Ended June 30,							Affected Line Item where
(in thousands)		2023			2022			2023			2022				Net Income is Presented
Net realized loss on hedging derivatives:
Before tax		$	—		$	—		$	—		$	4,852			Non-interest income
Tax effect			—			—			—			(917)			Tax expense
Total reclassifications for the period		$	—		$	—		$	—		$	3,935