XML 24 R14.htm IDEA: XBRL DOCUMENT
v3.23.2

SECURITIES | 6 Months Ended
--- | ---
Jun. 30, 2023
SECURITIES |
SECURITIES | 5. SECURITIES Amortized cost and fair value of available-for-sale debt securities at June 30, 2023 and December 31, 2022 are summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(In Thousands) |  | June 30, 2023
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Unrealized | ​ | Unrealized | ​ | ​ | ​
​ |  | Amortized |  | Holding |  | Holding |  | Fair
​ |  | Cost |  | Gains |  | Losses |  | Value
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Obligations of the U.S. Treasury | ​ | $ | 33,931 | ​ | $ | 0 | ​ | $ | (3,188) | ​ | $ | 30,743
Obligations of U.S. Government agencies | ​ | ​ | 22,899 | ​ | ​ | 0 | ​ | ​ | (2,347) | ​ | ​ | 20,552
Bank holding company debt securities | ​ | ​ | 28,948 | ​ | ​ | 0 | ​ | ​ | (5,623) | ​ | ​ | 23,325
Obligations of states and political subdivisions: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  |
Tax-exempt | ​ |  | 125,247 | ​ |  | 245 | ​ |  | (12,322) | ​ |  | 113,170
Taxable | ​ |  | 65,715 | ​ |  | 0 | ​ |  | (10,013) | ​ |  | 55,702
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | ​ |  |  | ​ |  |  | ​ |  | ​ | ​ |  |
Residential pass-through securities | ​ |  | 105,027 | ​ |  | 0 | ​ |  | (12,232) | ​ |  | 92,795
Residential collateralized mortgage obligations | ​ |  | 40,444 | ​ |  | 0 | ​ |  | (4,547) | ​ |  | 35,897
Commercial mortgage-backed securities | ​ |  | 76,780 | ​ |  | 0 | ​ |  | (11,263) | ​ |  | 65,517
Private label commercial mortgage-backed securities | ​ | ​ | 8,141 | ​ | ​ | 0 | ​ | ​ | (147) | ​ | ​ | 7,994
Total available-for-sale debt securities | ​ | $ | 507,132 | ​ | $ | 245 | ​ | $ | (61,682) | ​ | $ | 445,695
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(In Thousands) |  | December 31, 2022
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ |  | ​ |  | Unrealized | ​ | Unrealized | ​ | ​ | ​
​ |  | Amortized |  | Holding |  | Holding |  | Fair
​ |  | Cost |  | Gains |  | Losses |  | Value
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Obligations of the U.S. Treasury | ​ | $ | 35,166 | ​ | $ | 0 | ​ | $ | (3,330) | ​ | $ | 31,836
Obligations of U.S. Government agencies | ​ | ​ | 25,938 | ​ | ​ | 0 | ​ | ​ | (2,508) | ​ | ​ | 23,430
Bank holding company debt securities | ​ | ​ | 28,945 | ​ | ​ | 0 | ​ | ​ | (3,559) | ​ | ​ | 25,386
Obligations of states and political subdivisions: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  |
Tax-exempt | ​ |  | 146,149 | ​ |  | 319 | ​ |  | (13,845) | ​ |  | 132,623
Taxable | ​ |  | 68,488 | ​ |  | 0 | ​ |  | (11,676) | ​ |  | 56,812
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Residential pass-through securities | ​ |  | 112,782 | ​ |  | 0 | ​ |  | (12,841) | ​ |  | 99,941
Residential collateralized mortgage obligations | ​ |  | 44,868 | ​ |  | 0 | ​ |  | (4,572) | ​ |  | 40,296
Commercial mortgage-backed securities | ​ |  | 91,388 | ​ |  | 0 | ​ |  | (11,702) | ​ |  | 79,686
Private label commercial mortgage-backed securities | ​ | ​ | 8,070 | ​ | ​ | 2 | ​ | ​ | (49) | ​ | ​ | 8,023
Total available-for-sale debt securities | ​ | $ | 561,794 | ​ | $ | 321 | ​ | $ | (64,082) | ​ | $ | 498,033
​ The following table presents gross unrealized losses and fair value of available-for-sale debt securities with unrealized loss positions aggregated by length of time that individual securities have been in a continuous unrealized loss position at June 30, 2023 and December 31, 2022: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
June 30, 2023 |  | Less Than 12 Months |  | 12 Months or More |  | Total
(In Thousands) | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized
​ |  | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
Obligations of the U.S. Treasury | ​ | $ | 0 | ​ | $ | 0 | ​ | $ | 30,743 | ​ | $ | (3,188) | ​ | $ | 30,743 | ​ | $ | (3,188)
Obligations of U.S. Government agencies | ​ | ​ | 6,315 | ​ | ​ | (334) | ​ | ​ | 14,237 | ​ | ​ | (2,013) | ​ | ​ | 20,552 | ​ | ​ | (2,347)
Bank holding company debt securities | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 23,325 | ​ | ​ | (5,623) | ​ | ​ | 23,325 | ​ | ​ | (5,623)
Obligations of states and political subdivisions: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tax-exempt | ​ | ​ | 11,923 | ​ | ​ | (306) | ​ | ​ | 97,304 | ​ | ​ | (12,016) | ​ | ​ | 109,227 | ​ | ​ | (12,322)
Taxable | ​ |  | 2,657 | ​ |  | (93) | ​ |  | 53,045 | ​ |  | (9,920) | ​ |  | 55,702 | ​ |  | (10,013)
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | ​ |  |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  |  | ​ |  |
Residential pass-through securities | ​ | ​ | 14,150 | ​ | ​ | (667) | ​ | ​ | 78,645 | ​ | ​ | (11,565) | ​ | ​ | 92,795 | ​ | ​ | (12,232)
Residential collateralized mortgage obligations | ​ |  | 2,780 | ​ |  | (101) | ​ |  | 33,117 | ​ |  | (4,446) | ​ |  | 35,897 | ​ |  | (4,547)
Commercial mortgage-backed securities | ​ |  | 10,755 | ​ |  | (519) | ​ |  | 54,762 | ​ |  | (10,744) | ​ |  | 65,517 | ​ |  | (11,263)
Private label commercial mortgage-backed securities | ​ | ​ | 7,994 | ​ | ​ | (147) | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 7,994 | ​ | ​ | (147)
Total temporarily impaired available-for-sale debt securities | ​ | $ | 56,574 | ​ | $ | (2,167) | ​ | $ | 385,178 | ​ | $ | (59,515) | ​ | $ | 441,752 | ​ | $ | (61,682)
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2022 |  | Less Than 12 Months |  | 12 Months or More |  | Total
(In Thousands) | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized
​ |  | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
Obligations of the U.S. Treasury | ​ | $ | 20,192 | ​ | $ | (1,939) | ​ | $ | 11,644 | ​ | $ | (1,391) | ​ | $ | 31,836 | ​ | $ | (3,330)
Obligations of U.S. Government agencies | ​ | ​ | 8,509 | ​ | ​ | (430) | ​ | ​ | 12,921 | ​ | ​ | (2,078) | ​ | ​ | 21,430 | ​ | ​ | (2,508)
Bank holding company debt securities | ​ | ​ | 14,248 | ​ | ​ | (1,697) | ​ | ​ | 11,138 | ​ | ​ | (1,862) | ​ | ​ | 25,386 | ​ | ​ | (3,559)
Obligations of states and political subdivisions: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tax-exempt | ​ | ​ | 106,204 | ​ | ​ | (11,023) | ​ | ​ | 15,153 | ​ | ​ | (2,822) | ​ | ​ | 121,357 | ​ | ​ | (13,845)
Taxable | ​ |  | 28,901 | ​ |  | (4,739) | ​ |  | 27,761 | ​ |  | (6,937) | ​ |  | 56,662 | ​ |  | (11,676)
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | ​ |  |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  |  | ​ |  |
Residential pass-through securities | ​ | ​ | 45,410 | ​ | ​ | (4,226) | ​ | ​ | 54,531 | ​ | ​ | (8,615) | ​ | ​ | 99,941 | ​ | ​ | (12,841)
Residential collateralized mortgage obligations | ​ |  | 28,670 | ​ |  | (2,042) | ​ |  | 11,626 | ​ |  | (2,530) | ​ |  | 40,296 | ​ |  | (4,572)
Commercial mortgage-backed securities | ​ |  | 40,408 | ​ |  | (2,585) | ​ |  | 39,278 | ​ |  | (9,117) | ​ |  | 79,686 | ​ |  | (11,702)
Private label commercial mortgage-backed securities | ​ | ​ | 4,762 | ​ | ​ | (49) | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 4,762 | ​ | ​ | (49)
Total temporarily impaired available-for-sale debt securities | ​ | $ | 297,304 | ​ | $ | (28,730) | ​ | $ | 184,052 | ​ | $ | (35,352) | ​ | $ | 481,356 | ​ | $ | (64,082)
​ Gross realized gains and losses from available-for-sale debt securities were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(In Thousands) | ​ | Three Months Ended | ​ | Six Months Ended
​ | ​ | June 30, | ​ | June 30, | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022 |  | 2023 |  | 2022
Gross realized gains from sales | ​ | $ | 9 | ​ | $ | 2 | ​ | $ | 89 | ​ | $ | 4
Gross realized losses from sales | ​ |  | (10) | ​ |  | (3) | ​ |  | (83) | ​ |  | (3)
Net realized (losses) gains | ​ | $ | (1) | ​ | $ | (1) | ​ | $ | 6 | ​ | $ | 1
​ The amortized cost and fair value of available-for-sale debt securities by contractual maturity are shown in the following table as of June 30, 2023. Actual maturities may differ from contractual maturities because counterparties may have the right to call or prepay obligations with or without call or prepayment penalties. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
(In Thousands) | ​ | June 30, 2023
​ | ​ | Amortized | ​ | Fair
​ |  | Cost |  | Value
Due in one year or less | ​ | $ | 10,074 | ​ | $ | 9,912
Due from one year through five years | ​ |  | 71,016 | ​ |  | 65,803
Due from five years through ten years | ​ |  | 78,731 | ​ |  | 67,990
Due after ten years | ​ |  | 116,919 | ​ |  | 99,787
Sub-total | ​ |  | 276,740 | ​ |  | 243,492
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | ​ |  |  | ​ |  |
Residential pass-through securities | ​ |  | 105,027 | ​ |  | 92,795
Residential collateralized mortgage obligations | ​ |  | 40,444 | ​ |  | 35,897
Commercial mortgage-backed securities | ​ |  | 76,780 | ​ |  | 65,517
Private label commercial mortgage-backed securities | ​ | ​ | 8,141 | ​ | ​ | 7,994
Total | ​ | $ | 507,132 | ​ | $ | 445,695
​ The Corporation’s mortgage-backed securities and collateralized mortgage obligations have stated maturities that may differ from actual maturities due to borrowers’ ability to prepay obligations. Cash flows from such investments are dependent upon the performance of the underlying mortgage loans and are generally influenced by the level of interest rates. In the table above, mortgage-backed securities and collateralized mortgage obligations are shown in one period. Investment securities carried at $213,954,000 at June 30, 2023 and $277,302,000 at December 31, 2022 were pledged as collateral for public deposits, trusts and certain other deposits as provided by law. See Note 8 for information concerning securities pledged to secure borrowing arrangements and Note 11 for information related to securities pledged against interest rate swap obligations. A summary of information management considered in evaluating debt and equity securities for credit losses at June 30, 2023 and December 31, 2022 is provided below. Debt Securities As reflected in the table above, gross unrealized holding losses on available-for-sale debt securities totaled $61,682,000 at June 30, 2023 and $64,082,000 at December 31, 2022. At June 30, 2023, the Corporation does not have the intent to sell, nor is it more likely than not it will be required to sell, these securities before it is able to recover the amortized cost basis. The unrealized holding losses were consistent with significant increases in market interest rates that occurred in 2022 and 2023. At June 30, 2023 and December 31, 2022, management performed an assessment for possible credit losses of the Corporation’s debt securities on an issue-by-issue basis, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. At June 30, 2023 and December 31, 2022, all of the Corporation’s holdings of bank holding company debt securities, obligations of states and political subdivisions and private label commercial mortgage-backed securities were investment grade and there have been no payment defaults. Based on the results of the assessment, there was no ACL required on available-for-sale debt securities in an unrealized loss position at June 30, 2023 and December 31, 2022. Equity Securities C&N Bank is a member of the Federal Home Loan Bank of Pittsburgh (FHLB-Pittsburgh), which is one of 11 regional Federal Home Loan Banks. As a member, C&N Bank is required to purchase and maintain stock in FHLB-Pittsburgh. There is no active market for FHLB-Pittsburgh stock, and it must ordinarily be redeemed by FHLB-Pittsburgh in order to be liquidated. C&N Bank’s investment in FHLB-Pittsburgh stock, included in other assets in the consolidated balance sheets, was $14,770,000 at June 30, 2023 and $14,168,000 at December 31, 2022. The Corporation evaluated its holding of FHLB-Pittsburgh stock for impairment and deemed the stock to not be impaired at June 30, 2023 and December 31, 2022. In making this determination, management concluded that recovery of total outstanding par value, which equals the carrying value, is expected. The decision was based on review of financial information that FHLB-Pittsburgh has made publicly available. The Corporation has a marketable equity security included in other assets in the consolidated balance sheets with a carrying value of $859,000 at June 30, 2023 and December 31, 2022, consisting exclusively of one mutual fund. There was an unrealized loss on the mutual fund of $141,000 at June 30, 2023 and December 31, 2022. Changes in the unrealized gains or losses on this security, which are included in other noninterest income in the consolidated statements of income, were a loss of $14,000 in the second quarter 2023 and no net gain or loss in the six-month period ended June 30, 2023, and a loss of $31,000 in the second quarter 2022 and a loss of $76,000 in the six-month period ended June 30, 2022.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration